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Lobby Theater
A ids H igh-Tech
M arketing




• M in n esota

North D akota

• C olorado

• The Case of the Defendant Director—Part II
• Gain Customer Confidence with Conveniences
Federal Reserve Bank of St. Louis

Meet Dick Retz,
MNB Correspondent Banker.

Meet Dick Retz,

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

Merchants National Bank isi
C e d ar Rapids, Iow a 52401

Member F.D.I C.


Plus System'
It does
make a

'« P lu s

^ System
There’s a
world of
Federal Reserve Bank of St. Louis

Join the PLUS SYSTEM ATM network and gain a
competitive edge for your financial institution. Your
customers are traveling more for business and pleasure,
and their demand for banking convenience is increasing.
PLUS SYSTEM membership provides you with a
unique opportunity to satisfy this need by giving your
customers access to thousands of PLUS SYSTEM
ATMs located throughout the United States and
Canada. Regardless of the size of your institution,
when you become a PLUS SYSTEM member your
customers will enjoy the benefits of the most secure
and technologically advanced network in the world—
truly the premier ATM network.
PLUS SYSTEM convenience... it does make a
difference. For more information contact your local
PLUS SYSTEM member, or call Plus System, Inc.
at 303/573-7587.


MAY 1986


93rd Year


No. 1472


The ability of community banks to meet any challenge thrust on them by money
center banks, other financial institutions or non-financial institutions has been
given a total new dimension by the unique services and products offered at Bank
of Norfolk, Nebr. Ray Tiedje (cover), president, describes his bank’s approach in a
special interview starting on page 22. Bank of Norfolk’s $1.7 million building, oc­
cupied in January, 1986, is one of three modern, sparkling commercial banks in
Norfolk. The DeLay First National Bank & Trust Co., the city’s oldest and largest
bank, occupied its beautiful new quarters last September. Norwest Bank
Nebraska Norfolk office is housed in quarters built in recent years.



Case of defendant director— Part II

Attorneys relate “ Legal Defenses Available to Director”


Lobby theater

Bank of Norfolk, Nebr., features high-tech marketing


Gain customer confidence

Ross Schoonover says customer convenience is important

29 Illinois Program
34 Minnesota Program
44 North Dakota Program
47 Colorado Program

Convention Calendar
South Dakota
Twin Cities




Des Moines
Index of Advertisers

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

Publisher & E ditor

A ssociate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

A ssociate E ditors
Melinda Sauers

Diane Nelson

No. 1472 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
Northwestern Banker, May, 1986
Federal Reserve Bank of St. Louis

United Missouri Bank
Announces Promotions
Directors of United Missouri
Bank of Kansas City, N.A., have ad­
vanced Walter Beck from executive
vice president in the commercial
loan division to vice chairman, a
member of the bank’s management
committee and an advisory director
of the board. He is responsible for
managing all credit-related services
for the bank. Mr. Beck joined UMB
in 1978 from another Kansas City
Other board approved promotions
James J. Waterman from vice
president to vice president and cash­
ier in the operations department,
where he supervises the bookkeep­
ing, cash operations and cashier
functions. A B.A. graduate of the
University of Nebraska, he joined
United Missouri in 1973.
Jim Rundberg and George W.
Root, Jr., to vice presidents, Mr.
Rundberg manages the check pro­
cessing division in the operations
department. He joined the bank in
March. Mr. Root has responsibility
for the fixed income portfolio man­
agement of institutional accounts.
He holds a MBA degree from Cen­
tral Missouri State University and
joined UMB in 1978.
Suzanne E. Brady and Alex G.
M a rg io tta to a s s is ta n t vice
presidents. Mrs. Brady joined the
bank in 1977 and is at the State Line
facility, where she is primarily re­
sponsible for retail customer ac­
counts and service. Mr. Margiotta
has 25 years of investment experi­
ence, joining United Missouri Bank
in 1981.
James R. Koop to investment offi­
cer, responsible for security analysis
and economic forecasting.
Mark Bailey to bond investment
officer in the investment banking
Mark Borserine to assistant in­
vestment operations officer.
Jerry W. Harper to assistant
cashier, installment loan division,
primarily responsible for loan ap­
Joins BarclaysAmerican
Allan Wolfmeyer has been pro­
moted to region vice president and
managing appraiser in the central
group of BarclaysAmerican/Business Credit, Inc.






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

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

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


Northwestern Banker, May, 1986


Daktronics Lights Mayo Center
O ur experts
are at your
beck and call.

HE Mayo Civic Center now under construction in Rochester, Minn., will em­
ploy a double-faced, computer-controlled, electronic message/animation
display to help promote the new facility and events there.

Civic centers all over the country are now using programmable electronic
displays to promote events and to display public service information to motor­
ists and pedestrians. The display incorporates a programmable matrix of in­
candescent lamps, 16 rows high and 80 columns wide, Mayo Civic Center iden­
tification, and a sponsor panel on each side of the display. Sponsors of the
display are The Kahler Hotel and First Bank Rochester.
The Mayo Civic Center’s display was designed and manufactured by Daktro­
nics, Inc. of Brookings, S.D. and was installed by Vogel Outdoor Advertising of
The display has 1,280 individual lamps that are illuminated to form letters,
graphics, and moving animation. Daktronics Venus 4000 TM controller is the
computer that operates the display.

John Malarkey Chosen
President of CSBS
John E. Malarkey, state bank
commissioner of Delaware, was
elected president and chairman of
the board of the Conference of State
Bank Supervisors for 1986-87 dur­
ing the organization’s 85th annual
convention at Colonial Williams­
burg in Virginia last month.
The president elect and vice chair­
man of the board of CSBS for the
coming year is James L. Sexton,
banking commissioner of Texas.
The Conference’s newly elected
vice president is Eugene W. Kuthy,
commissioner of financial institu­
tions of Michigan.
Re-elected secretary-treasurer of
the Conference was E.D. “Jack”
Dunn, commissioner of banking and
finance of Georgia.
William C. Harris, commissioner
of banks and trust companies of Illi­
nois, will serve as past president.
William W. Quigg, president and
CEO of the Central Bank of Jeffer­
son City, Mo., was named to a sec­
ond term as chairman of the CSBS
Advisory Council by President

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

Red Wing Has Accounting
Software Plan for Bankers
Red Wing Business Systems, Red
Wing, Minn., a leading producer of
software for business applications,
recently introduced a new General
Ledger — an accounting software
package widely used by independent
bankers. The new General Ledger
first became available in March.
According to company officials,
the new General Ledger is a signifi­
cant upgrade of the current Red
Wing General Ledger, which has
been on the market since 1981.
“Many of the changes in this ac­
counting package were customer
driven,” says Lyle Warrington,
president of Red Wing Business
Systems. “Bankers told us they
wanted the General Ledger to pro­
duce special reports, provide better
analysis by profit center, and oper­
ate faster and more simply. The new
General Ledger has incorporated
these suggestions, and will provide
for better inventory analysis and
management as well. We anticipate
this product will come to be the new
standard of business accounting

Through our system of
regional offices, Freddie Mac
makes it easy to do business
locally And, because our
representatives live in your
area, they’re never far away
when you call.
Freddie Mac’s five
regional offices are listed
below. The gnomes of
Freddie Mac are waiting to
hear from you.
Northeast Region
2001 Jefferson Davis Highway
Suite 901, P.O. Box 2408
Arlington, Virginia 22202-1008
(703) 685-1455
North Central Region
333 West Wacker Drive, Suite 3100
Chicago, Illinois 60606-1287
(312) 407-7474
Southeast Region
2839 Paces Ferry Road, NW
Suite 700, P.O. Box 723788
Atlanta, Georgia 30339-3718
Southwest Region
12222 Merit Drive, Suite 700
Dallas, Texas 75251
(214) 702-2000
Western Region
15303 Ventura Boulevard, Suite 500
Sherman Oaks, California 91403
(818) 905-3400

1986, FHLMC





Experts in the held


The gnomes of Freddie Mac go far and wide to please
customers. Whether you sell your mortgages for cash or
swap them for PCs, our regional account executives know
what works best in your local market. Before you make your
next deal, call the experts in the field. You’ll find them as near
as your telephone.
Freddie Mac ■ Marketing Communications ■ 1776 G Street, N.W. ■ P.O. Box 37248 ■ Washington, D.C. 20013-7248
Federal Reserve Bank of St. Louis

©1986, FHLMC

Owned by A merica’s Savings Institutions


Convention Calendar


ABA—American Bankers Association
AIB—American Institute of Banking
BAI —Bank Administration Institute
BMA—Bank Marketing Association
IBAA—Independent Bankers Association
of America
NABW—National Association of Bank
Women, Inc.
RMA—Robert Morris Associates

Washington Hilton, Washington, D.C.
Sept. 21-26—KBA, NBA Professional Devel­
opment Program Intermediate School of
Banking, Holiday Inn, Manhattan, Kan.
Sept. 22-26—BAI Basic Bank Auditing Con­
ference, Minneapolis, Minn.
Sept. 28-Oct. 1—RMA Annual Fall Confer­
ence, Shamrock Hilton, Houston, Tex.
Oct. 24-29—ABA Annual Convention, San
Francisco, Calif.

National Conventions & Schools

State Conventions & Schools


May 18-21 — BAI Bank Tax Conference, New
Orleans, La.
May 25-30—BMA Essentials of Bank Mar­
keting School, University of Colorado,
May 25-June 6—BMA School of Trust and
Personal Financial Services Sales and
Marketing, University of Colorado, Boul­
May 25-June 6—BMA School of Bank Mar­
keting, University of Colorado, Boulder.
June 1-4—ABA Risk & Insurance Manage­
ment In Banking Seminar, Denver Mar­
riott Southeast.
June 1-6—BMA Advanced School of Bank
Marketing, Boulder, Colo.
June 8-12—ABA National Corporate Trust
Workshop, Hyatt Regency, Crystal City,
Arlington, Va.
June 9-10—BAI Making the Buy/Sell Deci­
sion, Colorado Springs, Colo.
June 13-19—ABA National School of Bank
Card Management, University of Okla­
homa, Norman, Okla.
June 15-27—ABA Stonier Graduate School
of Banking, University of Delaware,
June 16-20—BAI Asset/LiabiIity and Finan­
cial Management, Chicago.
June 22-27—BMA School of Bank Market­
ing Colloquium, University of Colorado,
June 24-27—BAI Cost Accounting Work­
shop, Minneapolis, Minn.
June 28-July 2—ABA National AIB Confer­
ence, Marriott-Copley Place, Boston.
July 6-11—ABA National Agricultural Bank
Management School, Iowa State Univer­
sity, Ames, Iowa.
July 14-18—KBA, NBA and Iowa Trust
Assoc. School of Trust and Financial
Planning, Holiday Inn, Manhattan, Kan.
Aug. 10-15—Central States Conference of
Bankers Associations and the University
of Wisconsin - Post Graduate Program/
Banking Executive Program, University of
Wisconsin, Madison, Wis.
Aug. 10-23—Central States Conference of
Bankers Associations and the University
of Wisconsin-Madison Graduate School
of Banking/Banking School, University of
Wisconsin, Madison, Wis.
Sept. 7-10—ABA National Bank Card Con­
ference, Loew’s Anatole, Dallas, Tex.
Sept. 14-17—NABW National Convention,
Ceasars Palace, Las Vegas, Nevada.
Sept. 21-24—ABA National Conference on
Human Resources, Fairmont Hotel, San
Francisco, Calif.
Sept. 21-24—BMA Annual Convention,

Banker, May, 1986
Federal Reserve Bank of St. Louis


May 14-15—CBA Investment & Funds Man­
agement Seminar, Denver.
May 15-17—NABW State Conference, Estes
June 4-7—CBA Annual Convention, Broad­
moor Hotel, Colorado Springs.
Aug. 3-10—Graduate School of Banking, Uni­
versity of Colorado, Boulder.

May 19-21—BAI Operational Considerations
in Mergers and Acquisitions, Chicago.
May 19-30—IBA Illinois Bankers School, SIUCarbondale.
May 20—ICBI Asset/Liability Management &
Investment Strategies Seminar, Oak Brook.
May 21—ICBI Asset/Liability Management &
Investment Strategies Seminar, Springfield.
May 22—ICBI Asset/Liability Management &
Investment Strategies Seminar, Collinsville.
June 1-6—IBA Agricultural Lending School,
June 11-13—IBA Convention, Adams Mark
Plaza, St. Louis.
June 22-27—IBA Trust School, ISU-Normal.
July 20-25—IBA Consumer Lending School,
Bradley University, Peoria.
July 27-Aug. 1—IBA Commercial Lending
School, Bardley University, Peoria.
Aug. 10-15—IBA Bank Compliance School,
DePaul University, Chicago.
Aug. 17-22—IBA Internal Auditing School,
DePaul University, Chicago.
Sept. 16-17—IBAA Commodity Marketing
Seminar, Chicago.

May 19—IBA Group 5 Meeting, Council
May 20—IBA Group 2 Meeting, Fort Dodge.
May 21—IBA Group 12 Meeting, Okoboji.
May 22—IBA Group 3 Meeting, Clear Lake.
June 5-6—IBAA Internal Auditing I Seminar,
Des Moines.
June 5-6—IYBA Annual Conference, location
June 9-20—IBA Ag Credit School, Ames.
June 22-27—IBA Iowa School of Banking,
Iowa City.
July 24-26—IIB Annual Meeting & Conven­
tion, The New Inn, Okoboji.
Sept. 14-16—IBA 100th Annual Convention,
Convention Center, Des Moines.

June 9-10—IBAA Asset/Liability Mgmt
Workshop, Minneapolis.
June 11 —IBAA In-House Computer Semi­
nar, Minneapolis.
June 12-13—IBAA Ag Lender II Workshop,
June 22-27—Minnesota School of Banking,
St. Olaf College, Northfield.
July 20-25—MBA Midwest Banking Insti­
tute, University of Minnesota, Morris.
Aug. 10-15—MBA Commercial Lending
School, St. Olaf College, Northfield.

May 15-16—MBA Commercial Bankers Con­
ference, Holiday Inn, Billings.
June 5-7—NABW State Conference, Grouse
Mountain Lodge, Whitefish.
June 12-13—MBA Real Estate Bankers Con­
ference, Heritage Inn, Great Falls.
June 24-27—MBA Convention, Outlaw Inn,

May 15-17—NBA 89th Annual Convention,
Red Lion Inn, Omaha.
May 22-23—IBAA Ag Lender I Workshop,
June 12—NBA Presidents Golf Tournament,
Lochland Country Club, Hastings.
North Dakota:

May 18-23—North Dakota School of Bank­
ing, University of North Dakota, Grand
June 9-10—NDBA Annual Convention, Holi­
day Inn, Fargo.
Aug. 19—NDBA Loan Documentation Work­
shop, Kirkwood Motor Inn, Bismarck.
Sept. 15—NDBA Northeast Group Meeting,
Veterans Club, Grafton.
Sept. 16—NDBA Northwest Group Meeting,
Turtle Mountain Lodge.
Sept. 17—NDBA Southwest Group Meeting,
Golden West, New Salem.
Sept. 18—NDBA Southeast Group Meeting,
Eagles Club, Valley City.
South Dakota:

Sept. 15—SDBA Group II Meeting, Sheraton
Inn, Aberdeen.
Sept. 16—SDBA Group IV Meeting, Wrang­
ler Motor Inn, Mobridge.
Sept. 17—SDBA Group V Meeting, Rapid
Sept. 18—SDBA Group III Meeting, Holiday
Inn, Mitchell.
Sept. 19—SDBA Group I Meeting, Holiday
Inn City Centre, Sioux Falls.

June 1-6—WBA General Banking School,
St. Norbert College, De Pere.
June 8-14—WBA Commercial Lending
School, St. Norbert College, De Pere.
June 16-18—WBA Convention, Embassy
Suites, Green Bay.
July 9-11—Upper Midwest Agricultural
Credit Council (UMACC) Conference, Hol­
iday Inn, Wisconsin Dells.
July 14-15—IBAA Internal Auditing I Semi­
nar, Madison.
Aug. 3-9—WBA Consumer Credit School,
St. Norbert College, De Pere.
Aug. 10-15—WBA Basic Banking School,
May 20—AIB Performance Reviews Semi­
St. Norbert College, De Pere.
nar, AIB Education Center, Minneapolis. Aug. 10-23—Graduate School of Banking,
May 21—AIB Customer Relations with Mo­
University of Wisconsin, Madison.
tivational Tools Seminar, AIB Education
Center, Minneapolis.
June 2-4—MBA 96th Annual Convention, June 15-17—WBA Annual Convention, Jackson Lake Lodge, Moran.
Radisson St. Paul Hotel.


A strange
Horizon Financial
switches to
■' American Express.
’ Travelers cheque
sales up 60%.
A n n M cN am ee, Senior B anking Officer o f H orizon Financial, F.A.,
in Southampton, Pennsylvania, tells w hy i t ’s no coincidence that
sw itching to Am erican Express8 Travelers Cheques increased travelers
cheque sales 6 0 % .
Question: What has happened to sales since you’ve started

selling American Express?
M cN am ee: Since we became an American Express seller,
sales have increased significantly, by about 60%.
Question: To what do you attribute your sales increase?
M cN am ee: To the name American Express. American
Express Travelers Cheques are known throughout the world
and are synonymous with travelers cheques.
Question: Do you think that selling American Express
Travelers Cheques enhances the image of your institution?
M cN am ee: I think if you want a first-class product, you go
to a first-class place. We try to sell the best to please our
customers—we don’t want anybody walking out the door
and going someplace else for something we’re not offering.

Travelers cheques sales
before switching.
Federal Reserve Bank of St. Louis

Sales after sw itching
to Am erican Express.

T o fin d out how to increase
yo u r travelers cheque sales, call
1 -8 0 0 -2 2 1 -7 2 8 2 and ask fo r
L ou Eiler.


© 1986 American Express Travel Related Services Company, Inc.

Northwestern Banker, May, 1986


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

Your C o rre sp o n d e n t B a n k in g B rid g e
c 1986 LaSalle National Bank
Federal Reserve Bank of St. Louis

LeFebure Introduces
New 3000 Series ATM
The LeFebure T o u c h , a stateof-the-art full-function ATM with a
13-inch to u c h -a ctiv ate d menu
screen, was unveiled to the banking
industry at the EFT Expo in New
Orleans last month.
Mylo Schultz, LeFebure’s vice
president of sales and marketing,
said The Touch was “created after
we took a long, hard, zero-based look
at the ATMs being offered to the
banking industry. Frankly, we were
unable to find one that met our cri­
teria for dependability, user-friendli­
ness and cost-efficiency for financial

LeFEBURE’S new through-the-wall ATMs,

Model 3020 and 3025, with 13-inch color
touch-activated screens, can be used in
walk-up or drive-up applications.

“Years of research and planning
are reflected in the building of our
own ATM,” Mr. Schultz explained.
“The result is a sophisticated elec­
tronic machine, featuring the most
up-to-date technology and a few
components we’ve developed over
the years. The LeFebure Touch is,
we are sure, a break-through in the
ATM industry.”
The Touch, or 3000 Series ATM,
is equipped with a large, color,
touch-sensitive screen which elimi­
nates several problems associated
with conventional machines, such as
frozen or jammed buttons. Also,
customers no longer have to decide
which message on the screen corres­
ponds with which button at the side;
they simply touch the screen to acti­
vate the desired process.
An optional privacy screen makes
it impossible for persons looking
from a short distance behind, or
from the side, to read a user’s trans­
action. The Touch also is equipped
with a microcomputer which allows
bankers to program special mes­
sages for customers.


Three mistakes
successful financial executives
make on the way up.
• instead of smarter.
At The Hills Institute, the working
smarter concept is applied in every
area of your life. You’ll increase
your effectiveness and

Make no mistake:
The Hills Institute
offers solutions.

productivity through
innovative problem-solving
techniques, better health, and pro­
found insight into your profession.
When you effect positive change
in all these areas simultaneously,
the combined results will be


Accepting a lower
• standard of health.


At The Hills Institute, your program
will include a comprehensive physi­
cal examination under the supervi­
sion of Dr. Ted L. Edwards, physician
to the U.S. National Cycling Team.
Federal Reserve Bank of St. Louis

Designed to
specifically address the
health problems which confront ex­
ecutives in your field, The Hills Insti­
tute’s program includes state-of-theart testing and therapeutic tech­
niques, as well as basic principles
for maintaining your good health.


Falling into
professional apathy.

You can be part of a powerful learn­
ing program at The Hills Institute— a
program which combines the bene­
fits of several professional seminars,
extensive stress management train­
ing, a health consultancy series, and
a total annual check-up, plus so
much more— in five days, at a single
location. In every sense, The Hills In­
stitute's program is the competitive
edge that will place you in a position
of greater professional advantage.
No other program available offers
such results-oriented continuing
education for the financial executive.
The first step is your call to
The Hills Institute for com plete
inform ation on the program:
Inside Texas call: 1-800/262-9008.

The Hills Institute provides oppor­
tunities to learn more about your
industry through participatory dis­
cussions with authorities in the field
while working with your professional
peers to approach major financial is­
sues from challenging new angles.
The wealth of information and ideas
available to you through this aca­
demic series is an invaluable collec­
tion assembled especially for
upper-level financial executives.

Dedicated to Executive Excellence

500 West 6th Street
Suite 302
Austin, Texas 78701

Northwestern Banker, May, 1986


NABW Honors 9 Achievers
The Chicago-based National As­
sociation of Bank Women, Inc., an­
nounced the winners of this year’s
Industry Achievement Awards and
Pacesetter Award, during its “Sa­
lute to Senior Financial Women”
dinner on April 29 in the Sheraton
Washington Hotel in the nation’s
The Honorable Katherine D.
Ortega, treasurer of the United
States, and Julia M. Walsh of Julia
M. Walsh & Sons, Inc., a division of
Tucker Anthony & R.L. Day, Inc.,

will receive Industry Achievement
Awards for their outstanding contri­
butions to the financial services in­
dustry. John G. Heimann, vice
chairman of Merrill Lynch Capital
Markets, will receive the Pacesetter
Award for his consistent support for
women in the financial services in­
In addition, NABW will honor six
W ash in g to n women fin an cial
achievers at the black-tie dinner:
Margaret Maguire Egginton, execu­
tive vice president of The Secura
Group and former deputy to the

O ne Less W orry

These are some tough times for farmers and as an agent the farm
economy is something that affects your life as well. Nowadays, you need
to go that extra step to be sure the insurance you recommend to your
customers is the right choice. Their future may depend on it.
To be sure it IS the right choice, put your trust in an established
company. . .Dawson Hail Insurance. With Hail or Multi-Peril Crop
Insurance from Dawson, you can be sure your customers will receive the
kind of service that will bring them back, year after year.
Dawson Hail Insurance has been around since 1917. We’ve built our
business around a few simple principles. First, we make buying crop
insurance easy and uncomplicated. Second, our adjusters are the very
best. . .fast and fair. Finally, we’ve developed a reputation for customer
service that is second to none.
With Dawson Hail and Multi-Peril Crop Insurance behind you, you’ve
got one less worry. We’ve been around since 1917, we’ll be there for you.

Call Toll Free
1 800 437-4680
In North Dakota
1 800 342-4848



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

m \
HAIL ° ° °

PA). Box 1820, Fargo, ND 58107

chairman, FDIC; M. Kathryn Eickhoff, associate director, Office of
Economic Policy, Office of Manage­
ment and Budget; Shannon Fair­
banks, executive staff director and
chief of staff, Federal Home Loan
Bank Board; Aulana L. Peters, com­
missioner, Securities and Exchange
Commission; Martha R. Seger, gov­
ernor, board of governors, Federal
Reserve System, and Margaret D.
Tutwiler, assistant secretary for
Public Affairs and Liaison, U.S.
Department of the Treasury.
AgDisk’s Cash Flow Product
Aids Ag Financial Analysis
Financial analysis of farming op­
erations, including projections of
cash needs for three to five years, is
now possible with the new AgDisk
Cash Flow Extension Module from
Harris Technical Systems, Inc., Lin­
coln, Nebr. This microcomputer
software product can help farmers
answer some of their most impor­
tant questions: “How much can I af­
ford to spend each month, consider­
ing current debt load?” and “Can I
afford to borrow more?”, according
to John Palmer, president.
He said the cash flow program
helps farmers maintain financial
flexibility. The program shows
sources, amounts, and timing of
monthly income and expenses. It
shows when credit will be needed,
how much will be needed, types of
loans required, and when payments
are possible or desirable. Analyzed
data can be used to help justify
capital expenditures. Easy to under­
stand graphs can be generated for
cash flow comparisons, expense per­
centages, operating loan analysis
and net cash comparisons.
“What-if” situations can be run
through the program for further an­
alysis of financial decisions. Results
can help establish a line of operating
credit with lenders, Mr. Palmer
The Cash Flow Extension Module
can be used as an independent pro­
gram or in conjunction with the
AgDisk Farm Accounting package.
Used with Farm Accounting, the
program can automatically access
stored accounting records, periodby-period, for in-depth financial
analysis. Used with the Budgeting
Extension Module, AgDisk Cash
Flow can help farmers analyze and
make decisions on investment and
borrowing alternatives.




We’ve Spent 45 Years
Developing Our Good Name
to Stand Behind Yours.

Travelers Express has been in the
mainstream of financial processing
services for many years. In fact, we’re
the largest volume money order provider
in the commercial marketplace...and
that didn’t happen overnight
Teamwork and state-of-the art
equipment put us at the head! of the class

for reliable and efficient processing of
money orders and official checks.
Official Check and Money Order
services from Travelers Express relieve
your institution of paper inventory and
storage costs, back office reconciliation,
stop payments, photocopies and tracing.
Our services also offer you an oppor­
tunity to earn income for your financial

institution through increased balances.
Best of all, we stand behind your
institution as well as our products. We’re
not a bank and don’t compete for your
customers’ attention.
For more information, contact
Terry Franzen, Marketing Manager,

^Travelers Express
Federal Reserve Bank of St. Louis


Northwestern Banker, May, 1986


BMA Announces Convention Speakers
ENIOR execs from high per­
forming companies will be
among the headliners addressing the
Bank Marketing Association’s 1986
Annual Convention in Washington,
D.C., Sept. 21-24.
They are Thomas R. Oliver, senior
vice president, Federal Express
Corp., Memphis; Edward E. Crutch­
field, Jr., chairman and CEO of First
Union Corp., Charlotte, N.C., and
F.G. “Buck” Rodgers, a Darien,
Conn, consultant and former head of
marketing at IBM Corp.
Mr. Oliver, who heads up Federal

Express’ electronic products divi­
sion, in his presentation, “From
Rags to Riches: A New Product Suc­
cess Story,” will look at how crea­
tivity, innovation, and technology
work together in the company’s in­
troduction of new products like its
billion dollar success: ZapMail.
Mr. Crutchfield will talk on “Ful­
filling the Promise of Mergers and
Acquisitions,” and will address such
questions as “How do you success­
fully market a merger with no
models to follow?” and “Should the
marketing function be centralized to

From th e Bank Bond


Fred Kroll Vice President/Bond Manager
Marge Nielsen Special Accounts Manager
Joe Sokolovsky Special Accounts Manager
Io w a 1 -8 0 0 -4 3 2 -5 8 5 9 • A ll O th er S tates 1 -8 0 0 -8 3 1 -9 2 4 8



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

A Redland Group Company
35 North Main Street
Midlands Mall
Council Bluffs, Iowa 51501

establish continuity or decentralized
to take advantage of different busi­
ness climates?”
Mr. Rodgers, in his talk, “Sales
Culture — Facts and Fiction,” will
describe how IBM’s highly touted
sales culture evolved and how it con­
tinues to gain momentum.
Another convention headliner is
Michael Vance, a Cleveland consul­
tant who promotes “creative think­
ing” and will assist delegates in
sorting through the ideas they have
gathered at the meeting so they can
apply them in their own banks.
For additional information on the
convention, contact Gayle Fink, vice
president and director, Meeting Ser­
vices Department, BMA, or to regis­
ter, contact Adrienne Rudich, meet­
ing registrar.

Bill Bolt Joins Boatmen’s
Bank in Kansas City
Directors of Boatmen’s First Na­
tional Bank of Kansas City have
elected William J. Bolt as vice chair­
man of the board. Widely known in
Kansas City and the midwest, Mr.
Bolt, 56, is a veteran of 30 years in
Kansas City banking.
C. Ted McCarter, president and
chief executive officer, said Mr. Bolt
will play a major role in manage­
ment by assuming overall responsi­
bility for four of the seven functional
divisions of the bank. He will report
directly to Mr. McCarter and be re­
sponsible for Division A (metropoli­
tan banking), Division B (regional,
correspondent, agribusiness and in­
ternational banking), Division C (re­
tail banking) and the Real Estate
A native of Tekamah, Nebr., Mr.
Bolt was graduated from the Whar­
ton School of Finance and Com­
merce at the University of Pennsyl­
vania in 1952. Following two years
service with the U.S. Air Force, he
became an executive trainee at the
Federal Reserve Bank of Philadel­
phia and enrolled in the Wharton
Graduate School. After receiving his
graduate degree in 1956, he returned
to the midwest to become a trainee
at City National Bank & Trust Com­
pany of Kansas City, the predeces­
sor of United Missouri Bank of Kan­
sas City, where he rose to vice chair­
man of the board.
For most of his 30-year career in
Kansas City, Mr. Bolt has been pri­
marily involved with lending.


I t’s impressive.
So m any services
from a regional

The edge in keeping customers and
effectively competing for new business
is having the services they need.
The Correspondent Banking Department
at Colorado National Bank o f Denver
offers more services to you. This
enables you to offer more to your
Our regional emphasis means an active
call program. You can depend on
knowledgeable, responsive service to
complement our innovative array o f
Call our Correspondent Banking
Department at 303-893-1862. See
w hy w e ’ve been the regional
correspondent since 1871.

We make big ideas happen.
17th and Champa, Denver, Colorado 80202


© 1985 Colorado National Bankshares, Inc.
Federal Reserve Bank of St. Louis

Member FDIC

Northwestern Banker, May, 1986


AIB Will Meet in Boston, June 28-July 2
ORE than 900 banking educa­
tion leaders from around the
world will gather at the 1986 Ameri­
can Institute of Banking National
Conference in Boston, Mass., to
learn about recent changes and new
developments in banker education.
“Meeting The Challenges...Mak­
ing The Changes,” the theme of the
American Bankers Association AIB
Conference, June 28 - July 2, reflects
AIB’s evolution to meet the chang­
ing educational needs of bankers.
“ 1986 is the turning point in the
evolution of education for tomor­
row’s financial leaders,” said AIB
President Herbert Cummings, and
president, Citizens Savings Bank
and Trust Co., Providence, R.I.
AIB will release new educational
developments at the conference that
include the New Education Pro­
gram, a diploma/certificate program
which features the Accelerated
Banking Certificate; current pro­
ducts and curricula; an accreditation
process, and the 1986-87 Planning
Summary, a short-term and long­
term strategic plan of action de­

veloped by the AIB Planning Com­
Conference workshops and con­
current sessions, numbering more
than 25, are arranged in five ‘tracks’
to help educators focus on individual
interests and needs. The tracks in­
clude organizational management,
education and training, communica­
tions, banking issues, and profes­
sional development.
New and updated AIB products
and curricula will be on display in
the Product Room, including such
products as “Credit Analysis for
Agricultural Lending” and “Finan­
cial Planning for Bankers.” There
will also be one-on-one and small
focus group sessions about these
products, curricula and future AIB
A special conference highlight is
the announcement of AIB Chapters
of Excellence. These awards distin­
guish those bankers and educators
who have delivered exceptionally
high-quality programs through their
AIB chapters during the preceding

Chris Jenkins Named
Mosler Vice President
R.F. Murphy, president, Mosler,
announces the appointment of Chris
Jenkins to vice president - business
& strategic planning. Mr. Jenkins
was formerly vice president and gen­
eral manager of Mosler’s eastern
Farm Accounting System
Offered Through Banks
The Agriculture Executive
, an
integrated farm management com­
puter software system consisting of
integrated accounting management
(both cash and accrual), production
management and decision manage­
ment programs, has been introduced
by AgCon, Inc., Minneapolis, Minn.
It is offered for sale or lease
through banks in Minnesota, North
and South Dakota, Iowa and Wis­
Lowell Anderson, AgCon presi­
dent, is a former Red River Valley,
Minn., farmer and banker.
“ I ’ve seen the need for this pro­
gram from both a farmer’s and a
banker’s perspective,” Mr. Ander-

Johnny* on
Federal Reserve Bank of St. Louis

Continental Settles Class Action Suit
ONTINENTAL Illinois Corpo­
ration, Chicago, announced
April 3 that it has agreed to settle a
consolidated class action that was
filed Nov. 3, 1982, on behalf of a
class of persons who purchased Con­
tinental shares from Sept. 1, 1981,
through July 5, 1982. Also, former
officers of the corporation who were
named as defendants in the consoli­
dated complaint have agreed to set­
tle with the class.
The consolidated complaint, “ In
re Continental Illinois Securities
Litigation,’’ comprises four separate
class actions that were filed between
July, 1982 and September, 1982,
and a derivative suit. The class ac­
tions alleged that the defendants
violated federal securities laws.
son says. “Consequently, I believe
that a banker is in the best position
to evaluate its capabilities and to
provide first-line support to farmerusers.’’
He said the Agriculture Execu­
tive is a double-entry system in
which the user makes only one
transaction entry and the program

In the consolidated class action
settlement, Continental will pay $25
million to the class, and in return the
suit will be dismissed. Funds for this
settlement will come from a reserve
set aside prior to 1986, and therefore
will not impact current operating re­
The individual defendants have
agreed to a lump sum settlement
payment to the class of $20 million,
which will be tendered to the insur­
ance companies that issued Conti­
nental’s directors-and-officers liabil­
ity insurance in 1981.
In a related action, the individual
defendants also agreed to settle the
derivative suit in which the Federal
Deposit Insurance Corporation
automatically enters the informa­
tion into all applicable accounts.
Mr. Anderson anticipates that
banks will operate the Agriculture
Executive program as a profit cen­
ter, providing ongoing service and
selling or leasing software and,
where desired, equipment, to their

(FDIC) is the plaintiff. This suit,
which was filed against the former
officers on Continental’s behalf, was
assigned to the FDIC by Continen­
tal on Oct. 2, 1984, as part of Conti­
nental’s restructuring.
The derivative suit charged that
the individual defendants failed to
ensure that the bank follow proper
loan, collateral, and documentation
procedures, thereby causing the cor­
poration to incur a financial loss.
Before the settlement agreements
are implemented, they will be re­
viewed in hearings before U.S. Dis­
trict Judge John F. Grady. There­
after, the class action settlements
would be consummated if Judge
Grady determines that they are fair,
reasonable and adequate.
The settlements would dispose of
the entire consolidated complaint
except for claims the class and the
FDIC have against Continental’s
former auditor, Ernst & Whinney.
The class has agreed to indemnify
Continental and each individual de­
fendant against any claim by Ernst
& Whinney for indemnity or contri­
bution with respect to any judgment
or settlement payment made to the
class by Ernst & Whinney.

He’s John Crotty, chief of Correspondent
Banking for Drovers. Quick. Experienced.
On the ball. Put him on the spot. Call tollfree and ask how Drovers can help your
bank with investments, acquisition financ­
ing, overlines, trust services,
check clearing or any other
banking service. Then
watch him take care of
business. In a hurry
You’ll get the same quick response from
Kathy Hardy and all the Drovers people.
There’s not a Johnny-come-lately in the bunch.
Call John or Kathy toll-free at 1-800-621-8991.
In Illinois, call 1-800-572-2498.

h i / Drovers Bank
Federal Reserve Bank of St. Louis

of Chicago
47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000

A Cole-Taylor Bank

Profit from

The Correspondent Bank Division at United Missouri Bank has a staff
of experienced bankers. Craftsmen. Craftsmen who know the business of
handling correspondent accounts. Craftsmen who can help your bank with
everything from investment, brokerage and data processing services to
bankcards, asset/liability management, loans, cash letters/transit and more.
So start to profit from our highly skilled people today. Call a United
Missouri Bank Account Officer today.


of Kansas City, n.a.
Member FDIC
Federal Reserve Bank of St. Louis

P.0. Box 226 Kansas City, Missouri 64141 (8l6) 556-7900


The Case of the
Defendant Director:
Part II

Legal defenses
available to
the director

Written especially for
Partners, Davis, Hockenberg, Wine, Brown & Koehn
Des Moines, IA
T he N orthw estern B an k er

HE first article in this series of five articles intro­
duced the expanding trend toward director liability
and summarized the legal sources which may provide a
basis for imposing liability against a director. This sec­
ond article summarizes the legal defenses available to
the director and provides guidelines which are in­
tended to reduce the exposure to such liability.

S NOTED in the first article in this series, liability
may be imposed against the director as a result of
a breach of standards imposed by: (1 ) contract, (2) com­

mon law, or (3) statutes. The legal defenses available to
® the director also may be summarized by reference to
these three general categories. As a general principle,
however, the best defense, which applies to all three
categories, is simply to be fully aware of such stan­
dards; it is difficult to win the game if one does not
^ know the rules.
The Three Defenses
(1) Contractual Defenses. To the extent that a direc­
tor feels any of the contractual standards which may
^ be imposed by the charter, bylaws, or other organiza­
tional or operational documents of the bank, are unrea-
Federal Reserve Bank of St. Louis

sonable or unclear, the director may wish to take tormal action to amend such primary source documents
to clarify or otherwise alter the standards which are
established. Such amendments will generally require
shareholder approval. A director should also insist on
some form of indemnification from the bank, or to re­
quire the bank to purchase insurance protection
against such liability. The fourth article in this series
will discuss these risk protection mechanisms in
greater detail.
Finally, the director may, if the particular circum­
stances warrant, request the advice of the bank’s legal
counsel as support against the imposition of liability
since, under a contractual theory, reasonable reliance
on and concurrence by a qualified representative of the
bank should entitle the director with some defense to a
contractual claim.
(2) Common Law Defenses. Under common law, lia­
bility may be imposed when a director’s breach of com­
mon law duty proximately causes harm to the plaintiff.
One of the most common defenses to a common law
negligence action has been an application of the busi­
ness judgment rule. The scope and use of the business
judgment rule as a defense is currently one of the more
litigated issues when common law claims are made
against directors. Under the business judgment rule a
director will generally not incur liability for an honest
mistake or a mere error of judgment. By accepting the
office of director, the director merely assumes the duty
and obligation to manage the affairs of the bank with
Northwestern Banker, May, 1986


“Perhaps the most important
guideline for any director to
follow is to attend all board
diligence and good faith, and does not undertake to
guarantee against any risk of loss incurred through
mere defects of judgment.
However, liability may be imposed if the error in
judgment is the result of a lack of an exercise of ordi­
nary prudence and diligence or of a reckless disregard
of duty. It should also be noted that the trend in the
courts appears to be an increase in the standards ex­
pected of a director, such that a requirement of greater
knowledge of bank laws is being imposed, especially in
such areas as loan limitation violations.
(3) Statutory Defenses. Of all the legal sources
which may provide the basis for imposition of liability
against the director, the statutory standards are the
least subject to control by the director. Therefore, the
primary defense available to the director in connection
with statutorily imposed standards is simply to follow
the old adage “to be forewarned is to be forearmed.” It
also may be prudent, if the circumstances warrant, to
request advice of the bank’s (or the director’s) legal
counsel and to obtain a written opinion that the parti­
cular statutory standard involved is not being vio­
(4) Guidelines. Based on the common charges which
have been brought against directors, it is possible to
develop a set of guidelines that, if followed, should sig­
nificantly reduce the potential exposure to liability.
Because of the broad range of circumstances which
may result in director liability the guidelines are neces­
sarily stated on a general level. Although stated simp­
ly, however, it should be recognized that is is not
always easy to follow the guidelines under any given
4.1 The golden rule. Robert M. Estes, formerly gen­
eral counsel with General Electric Company, has de­
vised a simple formula approach to a safe harbour rule:
I 3- Se = PM,
which translates into “inquiry times information times
involvement without self enrichment leads to peace of
mind.” The ten guidelines which are discussed in the
remainder of this article are simply an expansion of one
or more of the factors included in that equation. As a
short form statement, therefore, the “Estes Rule” pro­
vides a clear and precise statement of the guidelines
which every bank director should follow in order to re­
duce his or her exposure to liability.
The 10 Commandments
4.2 The ten commandments. The following guide­
lines are intended to fulfill each factor of the Estes
Rule. These guidelines are based, in part, on the excel­
lent work of Robert E. Barnett, “Responsibilities and
Liabilities of Bank and Bank Holding Company Direc­

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

(a) be informed. The director should be conversant
with all of the major regulations and rules which affect
the bank. The board may find it helpful to have experi­
enced counsel attend board meetings periodically to
provide updates on any changes in such rules and regu­
lations. The director also should be informed about the
facts which affect the bank. It is not enough simply to
ask management whether any problems exist; manage­
ment may have a vested interest in assuring the direc­
tor that everything is under control. These facts may
be external (a downward trend in farmland prices) or
internal (high employee turnover). The director should
undertake particular scrutiny of any related party
transactions (transactions between the bank and its of­
ficers, directors and controlling shareholders), possible
lending limit violations, and any large or unusual tran­
sactions, since such activities form the basis for a
significant number of director liability cases. It is also
important that the director understand the scope and
nature of the contractual, common law and statutory
standards which may be imposed on the director, to
better fulfill those standards. Such standards are summarized in the first article. Many of the guidelines
described herein are intended to insure that the direc­
tor is adequately informed.
(b) be involved. Perhaps the most important guideline for any director to follow is to attend all board
meetings. It is virtually impossible for a director to be
adequately informed or involved without attending
meetings. If a director must be absent from a meeting,
the reason for the absence should be provided to the
bank and recorded in the minutes of the meeting. In
addition, the director should review the minutes of the
meeting and, in the next succeeding meeting, clarify
his concurrence or dissent from any of the decision
made at such prior meeting.
It is also important that the director make a con­
scious commitment of time, energy and effort to pro­
perly discharge his duties. It is not enough simply to
tell management to remedy a problem which may ex­
ist; once the director becomes aware of the problem, active follow-through is necessary. The best protection
against exposure to liability is simply hard work and
active involvement in the affairs of the bank.
(c) be independent. If after becoming informed of the
facts and circumstances of a particular situation, a
director disagrees with the remainder of the board, it is
his duty to express such disagreement and to vote in
accordance with his judgment. It is extremely import­
ant to avoid classification as a “rubberstamp” director. To support such independence, a director may
wish to consider the advisability of consulting with in­
dependent counsel (other than the bank’s counsel) in
connection with any troublesome issues and, in any
event, document such dissent in the corporate minutes. Some states also may require that written affir­
mance of such dissent be provided to the bank within a
reasonable time following the dissent action.
(d) avoid self-dealing. Involvement in conflicts of in­
terest is probably the most common cause of director
liability. Insider loans to directors above legal limits,
loans to directors from correspondent banks, interlock­
ing directorships, and preferential loan and deposit
rates are among the multitude of possible statutory
violations. Consultation with the bank’s (or the direc-
















• “The most important responsibility of the director may be to
appoint competent and capable officers...then conscientious­
ly review the performance of such officers.”












tor’s) legal counsel to confirm compliance with statu­
tory and regulatory provisions in connection with any
dealings between the bank and the director is recommended.
(e) establish policies. Written policies, procedures
and checklists provide both management and the
director with a basis upon which to measure the bank’s
performance, management’s performance and the
director’s performance. The bank may wish to estab­
lish written policies in such areas as bank earnings,
credit risks, loan documentation, portfolio manage­
ment, audit and control procedures, community investments and long- and short-range goals. Faulty loan
documentation is often an early warning sign of a prob­
lem. Once a policy has been established, a regular
review of compliance with the policy should be made.
(f) select adequate management. In the context of
the bank’s financial viability, the most important re­
sponsibility of the director may be to appoint compe­
tent and capable officers. In addition to the initial se­
lection of such officers, however, it is also important
that the director regularly and conscientiously review
the performance of such officers. The responsibility of
a director does not end with the appointment of the of­
ficer. The director is more likely to fulfill his duties,
and thereby avoid exposure to liability, if he continues
to work hand in hand with bank management to insure
that adequate and full disclosure and communications
exist between management and the director.
(g) provide for adequate audit reports. Directors by
their nature and position are often not involved in the
details of the bank operation. It is very important,
therefore, that the director feels comfortable with and
can rely on the financial information being generated
by the bank. Good internal audit procedures and good
periodic outside audits significantly increase that com­
fort level. Independent consultation with and review
by accounting experts is essential. Regular audit
reports should be made to the board and should cover
all significant areas of the bank’s activities.
(h) regularly review bank reports. The director also
should carefully and completely review the examination reports and other regulatory reports. The director
should be familiar with all of the bank reports which
are available, and affirmatively request to review all
significant reports and related information produced
by the bank. In addition, if any questions are raised by
any such reviews, additional information should be re­
quested by the director. Such reports oftentimes pro1st Financial Video
FISI Video Network
1st Financial Video Network,
Inc., Schaumburg, 111., has acquired
the video division of Financial Institution Services, Inc., (FISI), based
in Nashville, Tenn.
Federal Reserve Bank of St. Louis

vide the first level of notice of potential breaches of
statutory provisions or of financial problems of the
bank. Newly appointed directors should review the ex­
amination reports for at least the prior three years to
introduce themselves to the bank and its operations,
and to provide them with a context in which to com­
pare and review current reports. In addition to finan­
cial reports, the director also should be made aware of
and carefully review any informal agreements, written
agreements, cease and desist orders and other contacts
between the bank and any regulatory agencies.
(i) obtain financial protection. Financial protection
may be available to the director in the form of indemni­
fication from the bank or insurance coverage or both.
The director should carefully review any indemnifica­
tion provisions contained in the organizational or
operational documents of the bank or provided by any
applicable statutes, and carefully review the terms and
limitations of any insurance policies which may also be
provided. Indemnification and insurance protections
currently employed for today’s bank director and of­
ficer are discussed in greater detail in the fourth article
in this series.
(j) be prepared to resign. Resignation will not ab­
solve a director from liability as a result of any actions
committed while in office. A prudent director may con­
clude, however, that it is simply impossible to fulfill
his functions prudently and diligently, and may resign
to limit exposure to further liability. For example, this
may result from an inability to influence the other
board members or top management to direct and
manage the bank the way that the director feels it
must be directed and managed. If a director finds him­
self consistently voting against management or consis­
tently voting contrary to the other directors, then the
director should seriously consider resigning.
It is incumbent upon today’s bank director to ag­
gressively inquire into the bank’s operations and pro­
cedures, to become informed of the crucial facts and
circumstances impacting on the decisions to be made,
and to use such information prudently in connection
with his active involvement in the affairs of the bank.
Such an informed and active participation by the di­
rector will go a long way towards ensuring compliance
with any contractual, common law or statutory stan­
dards which may be raised in the event circum­
stances do not proceed as planned.
Next month: Officer’s Duties and Potential Liabili­

The FISI Video Network, the first
subscription videotape education
service for financial institutions,
began operations in 1979. Since that
time, it has provided bimonthly
training programs and information
on industry changes and timely de­
velopments to more than 500 bank,

credit union, and savings and loan
The FISI Video Network provides
instructional programs in the areas
of new business development, sales
and cross selling, new accounts,
supervisory management, IRA and
Keogh accounts and security.
Northwestern Banker, May, 1986


12 0 0 *

Bank of Norfolk Financial Center

Lobby theater is
high-tech, modern
style of marketing

THE Norfolk Financial Center Theater is located at the southwest cor­
ner of the lobby in the Bank of Norfolk’s new building. Ray Tiedje, pres.,
is pictured with Susan Hendrix, who handles all scheduling and pro­
gramming for the theater. As an account executive, Susan handles
stock trades, precious metals orders, negotiable CD, IRAs and other in­
vestment orders. She handles all details of the IBM computer controlled
projection details in the theater.

A N o rthw estern B an k er interview with
Bank of Norfolk
Norfolk, Nebr.
C C I ET’S GO DOWN to the bank and see what’s on
L at the theater!”
If you hear that statement made, you’re probably in
Norfolk, Nebr., the 20,000 population city that is the
seat of Madison County in northeastern Nebraska. The
“theater” referred to is, in fact, a fully-equipped minia­
ture theater seating 12 to 15 people, tucked away in
the southwest corner of the $1.7 million new home oc­
cupied last December by Bank of Norfolk.
Unlike other theaters, this one is designed strictly
for business purposes; yet, like everything else in the
attractive new four-floor building, it is designed to
complement all other departments through cross-sell­
ing with a very modern, high tech flourish.
Total Marketing of Financial Services
Total marketing of all financial services now and in
the foreseeable future is not only possible but is an
everyday occurrence in the new building housing the
Bank of Norfolk.
It could well be the prototype of tomorrow’s commu-
Northwestern Banker, May, 1986
Federal Reserve Bank of St. Louis

nity bank, for its fast-paced, aggressive management ^
style could show the way for independently-owned
banks to compete in the increasing arena of multi-bank
holding company competition. Raymond G. Tiedje, the
42-year old president and CEO of Bank of Norfolk, sees
the bank as the core attraction for cross-selling every ^
type of financial service to traditional bank customers.
When asked what led to his bank’s aggressive mar­
keting stance exhibited today, Mr. Tiedje commented,
“The Monetary Control Act of 1980 let everyone into
the banking business. I recognized at that time we’d q
have serious problems in our business. Brokerage
houses were stripping away our core deposits. Then,
Sears’ Dean W itter brokerage business, Coldwell
Banker real estate, and Allstate insurance followed.”
How The Bank of Norfolk Developed
Before progressing too far with the story about
Bank of Norfolk’s forward-looking “Financial Center”
concept, some background about the bank and its key
personnel will paint the initial outline of the develop­
ing bank.
Bank of Norfolk is a relative newcomer in the bank­
ing business. It was started February 10,1970, by Lin­
coln businessman Duane W. Acklie, a native of Norfolk, and by the Dunlap banking family, whose inde­
pendent banks are centered primarily around the Lin­
coln area.
Mr. Acklie is a nationally-known trucking executive
in his capacity as owner-president of Crete Carrier Corporation of Lincoln, with other trucking interests in
Hershey, Pa., York, Nebr., and in Tennessee. He has
about 2,000 trucks on the nation’s highways. Mr.
Acklie continues to own farmland in Madison County
and also is an owner in other Nebraska banks—-Union
Bank & Trust in Lincoln, American State Bank in Mc-





Cook, Packers Bank & Trust in Omaha, and First Na­
tional Bank in Lyons. He also serves on the board of
directors of Hawkeye Bancorporation in Des Moines,
which is headed by Paul Dunlap, one of the Nebraska
banking family.
G.A. Dunlap and Jay Dunlap represent the Dunlap
family interests on the Bank of Norfolk board.
Mr. Tiedje is a native of Davenport, la. After gradu­
ating from the University of Iowa with a BA degree in
Economics in 1965, he started work for the Iowa de­
partment of banking under then superintendent of
banking John Chrystal, now president of Bankers
Trust Company, Des Moines. Four years later he
joined the First National Bank of Clinton, a member of
the Hawkeye Bancorporation holding company. He
left there in 1971 to move to Norfolk to become execu­
tive vice president and CEO of Bank of Norfolk. His
advancement to president followed three years later.
The rapid growth in the new bank’s footings has fol­
lowed from his concentration on marketing of bank ser­
vices to the 20,000 residents of Norfolk, as well as the
broader area served by this largest city in northeastern
Formation of Financial Center Concept
As other types of financial institutions were allowed
to make inroads into the commercial banking business,
while Congress and the regulators did little to enhance
the ability of banks to fight back for their turf, Mr.
Tiedje began formulating his Financial Center con­
“Events kept moving pretty fast in the world of fi­
nancial competition,” he recalls. “As our business ex­
panded we faced the need for larger quarters. What has
followed was a natural development of all those other
Those “other circumstances,” as Mr. Tiedje casually
referred to them, were events that set Bank of Norfolk
apart from the rest of the community bank pack in re­
cent years! When uninsured, unregulated money mar­
ket funds offered by the nation’s investment firms
were allowed to raid banks’ customer bases and Con­
gress fiddled but failed to act on proposals to permit
banks to compete, Mr. Tiedje found a way to help com­
mercial banks on his own.
Because the uninsured, unregulated brokerage
house Money Market Funds were draining billions of
dollars from the commercial banking system with the
offering of higher than passbook savings interest

BANK of Norfolk’s new building (Jan. ’86) has three stories above
ground and a lower level housing operations and the NBC Compu­
ter Center. Just to the left of the building at the southwest corner
is a satellite dish that can access more than 200 offerings from
four communications satellites.

rates, Ray Tiedje realized banks would have to com­
pete by paying interest on time deposits instruments.
After researching the options, he came up with the idea
for a demand repurchase agreement which could be a
day-to-day instrument requiring certain minimum
levels to earn varying interest levels, all with the capa­
bility of the customer drawing down funds at any time.
ICBN’s Role
This prompted Bank of Norfolk’s Independent Com­
munity Bank Network to assist other banks with the
program Mr. Tiedje and his associates had developed.
The bank board made a determination that the bank
itself should not be involved in this outside activity
and recommended spinning it off as a separate corpora­
tion, with bank stockholders having the right to buy
in. This was done and a total of 10 stockholders from
within the bank and outside the bank assumed owner­
ship of the stock.
At this point, ICBN then became the marketer of
the new repo software program to about three dozen
banks across 12 states reaching from coast to coast
and border to border. Then, by January 1,1983, regula­
tions were changed to allow banks to compete by pay­
ing interest on checking, thus eliminating the basic
need for the program.
For two months prior to that, however, Mr. Tiedje
and his associates discussed what banks would need to
compete and they determined it would be securities
brokerage, “so we anticipated the market needs.” At
this point, ICBN had a relationship with First MidAmerica of Omaha and Lincoln to handle the earlier
program, but management decided it would need to be
the place where banks came to instead of just being an
Wall Street of America Conceived
From this decision, Wall Street of America was con­
ceived. NASD approval came by May 1. “Wall Street
was set up to get banks on our network for brokerage
business. We signed up about 40 banks and wound up
with about 12 really active ones. We have turned a cou­
ple of banks into very active offices.
Wall Street of America now has offices in Arkansas

MAIN floor lobby features a horseshoe-shaped reception, custo­

mer-service desk. Teller counters are in background.
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1986

With the simplification of this A/L software pro­
gram completed, Mr. Tiedje and Mr. Olson began look­
ing earlier this year at the entire process to see what
fellow bankers needed “and what we wanted to do for
them. We looked at BancAnalysis (NWB—May, 1985;
March, 1986) and felt its ratio comparisons needed to
be sent to BancAnalysis, then BancAnalysis uses it to
spin out the ratio reports and analyses its returns to
banks on a monthly, timely basis.”
“Consequently,” Mr. Tiedje stated, “we have a
working arrangement with BancAnalysis. We provide
the A/L program software and BancAnalysis con­
tinues to market its program as a new product that in­
cludes ICBN’s A/L Management program.”
SECOND floor atrium with lighted glass tube fixture that is sus­
pended from third floor. Insurance department is on far (south)
side in this photo.

City, Kan., in a Mound City, Mo. bank, and an ex­
cellent broker in Storm Lake, la. The firm now has
withdrawn from the mass market to work specifically
with banks that are serious about getting into the
brokerage business, “those who want to make a com­
mitment to income for the future.”
One of Ray Tiedje’s younger associates at the bank
was Kevin Olson when the bank bought its first micro­
computer in 1982. The software for all bank and ICBN
programs has been developed on this and subsequent
micros. The bank now has six of them scattered
through various departments. Kevin Olson later was
assigned to work full-time with ICBN and now man­
ages it full-time. In addition, the Bank of Norfolk
stockholders owned an industrial bank in Norfolk and
they got it insured with the FDIC before the failure of
Commonwealth Savings in Lincoln in September,
1984. That institution now is called First Savings
Company of Norfolk and is owned and operated
separately from the bank. Mr. Olson is its managing
Software Program Developed
In 1984 ICBN developed an Asset/Liability Man­
agement software program “because we couldn’t find a
good one that didn’t cost an arm and leg and have
about 30 pages of reports. We felt the president of a
bank today doesn’t have time to review 30 pages of
printout, but he can put on his A/L manager’s hat for a
half-hour and review his options on rates, where he’s
going, and make his decisions.”
This A/L software model now serves 12 banks. It
was set up originally as a spread sheet but has been re­
worked to make the input easier. Mr. Olson states “the
‘what if’ options are highly valuable. We think banks
don’t need an A/L Management program as much as
they need an A/L Process; that is, some way to mea­
sure the rate sensitive liability mix and then evaluate
where they stand so they can discuss with the A/L
committee where to go from there.
“This is where you can plug in the numbers and go
through the ‘what if’ program. This simplifies every­
thing into fewer data, with a bottom-line report on in­
terest rate spread and the GAP. Then, under ‘what if’
repricing, the banker can make changes needed to
achieve the price or margin desired. Net interest
margins translate directly into profit. Budgeting is a
result of this process, it’s not a part of it.”

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

Time For Expansion
This continuing series of “other circumstances”
which contributed to the growth of Bank of Norfolk led
eventually to the need for expanding from the bank’s
original quarters in which it was housed when the bank
started business in 1970. “By this time,” notes Mr.
Tiedje, “we had our insurance department and a real
estate agency. Bringing these two departmens, all our
services obtained through ICBN, and our basic bank­
ing business together brought about the right timing
for developing our concept of a complete Financial
Center we had been heading toward for some time.
“The design of our new, four-level building was car­
ried out entirely with this Financial Center of Norfolk
concept in mind. Every department of the bank and its
related services has been carefully crafted to stand on
its own, yet cross-sell other bank services as a natural
The $1.7 million Bank of Norfolk building features
brick and glass over a three-story structure for a com­
pletely modern looking building with in excess of
25,000 square feet in the lower level and three upper
floors. It provides the bank staff with more than eight
times the space in the previous building. At this time,
the third floor will be leased for tenants offices and
allow for future bank expansion.
Customers and other visitors entering the main floor
from the spacious parking lot at the front of the
building on the east, are greeted by the receptionist at
a spacious reception—new accounts station. Private of­
fices and customer desks are at the south and north
sides of the main floor, with the teller counters along
the west wall.
Adding a touch of luxurious spaciousness and light
is a two-story atrium rising from the center of the
main floor. A mirrored ceiling at the top of the second
floor reflects tiny lights imbedded in glass rods of
varying lengths that are part of a customized cluster of
chandeliers suspended from the ceiling.
The board of directors meeting room, employee
lounge, real estate and lending areas occupy the second
Both a wide stairway and small elevator connect the
three upper floors and the lower level. This lower level is
home for the Bank of Norfolk auditing and operations
departments. Last month, one-third of the lower area
was taken over on a lease basis by the National Bank
of Commerce of Lincoln for its regional data process­
ing center.
The centerpiece of the entire Financial Center con­
cept is the “Bank of Norfolk Theater.” Located in the

southwest corner of the main floor lobby, it seats 12 to
15 persons comfortably in front of a 100-inch screen.
Over the dark blue drapes that close off the theater
from lobby sounds is a white marquee with blinking
lights that highlight the name of the “movies” being
shown that day. Visitors get free passes to enter the
theater so they can watch “ IRA Benefits” at 12 noon
and 2:30 p.m.; or the “McNeil-Lehrer” analysis pro­
gram at 10:00 a.m. and 3:30 p.m.; or “Wall Street
Week” with Louis Ruykeyser at 9:00 a.m. and 12:30
p.m., or “Market to Market” on a requested basis.
The theater is equipped with the latest high-tech
equipment. A satellite dish outside at the southwest
corner of the building can pick up signals from several
communications satellites. Inside, the theater operator
has a console with hand controls that provide access to
more than 200 programs from the dish. The market re­
ports from the New York Stock Exchange and Ameri­
can Stock Exchange parade quietly and ceaselessly
across two horizontal strips at the bottom of the
screen. If desired, they can be dropped while the pro­
grams listed above are being shown. The latter, inci­
dentally, are taped for viewing at specified times,
although many market type programs can be seen live
on request.
The “Bank of Norfolk Theater” is promoted regular­
ly by being listed in the Norfolk newspaper, as well as
with free passes handed out by different customer ser­
vice desks in the bank. Mr. Tiedje reports “a half dozen
or more people will usually be on hand for the ‘IRA’
showing, and we have regulars who come in to see the
‘MacNeil-Lehrer’ and ‘Wall Street Week’ programs.
“This is a unique concept in community banking,”
Mr. Tiedje stated, “and it will utilize aggressively and
innovatively to expose and sell our bank’s products
and services, and to train bank officers and
The 15’ x 15’ theater has the latest SONY projector
and screen, video cassette recorder, and a direct
hookup to a microcomputer. That micro, located at the
desk of the secretary seated directly outside the
theater entrance, will allow the control operator in the
theater to access any data on the micro, or enter data,
and compute programs for the benefit of customers at­
tending a session there. For example, those attending
an “ IRA” showing can give the operator their age and
amount desired to be placed in an IRA over an ex­
tended period of time. That data can be entered on the
spot and the printout completed at the secretary’s
desk right outside the theater for presentation to the
A library of video tapes is being built up and the
theater bookshelf already had two or three dozen at the
time of this interview. These come from the American
Bankers Association, the Nebraska Bankers Associa­
tion, other banking associations, and motivational
tape sources, such “ In Search of Excellence.”
“We use the theater about three to five times a week
for our staff,” Mr. Tiedje commented. “This week, for
example, we had four sessions. There was the Monday
sales meeting, at which we showed a short Leadership
film. On Wednesday there was a middle management
team meeting that included our head teller, head book­
keeper, operations chief, and the branch office man­
ager. The real estate division used it twice this week
for a Home Buyers Seminar. These were in addition to
Federal Reserve Bank of St. Louis

THE real estate division at the north side of the second floor has

space for six independent agents presently, and 10 are expected
to work from the bank by year-end.

the various public uses for the scheduled shows, and
the 12 to 20 who drop in daily to check the stock
market readings.”
Sales, Programming, and Marketing Added
Several years before the consultants and banking
leaders from major financial centers began to talk
about the need for modern “Marketing” concepts us­
ing latest technology, plus a structured sales-oriented
staff, Bank of Norfolk was already quietly putting
such a structure into place. As a result, the organiza­
tional structure of the Financial Center includes sales,
programming and marketing.
The sales division is made up of the manager of the
insurance agency, of investment sales, real estate, per­
sonnel and Mr. Tiedje. It does not include front-line of­
ficers of the bank who are not sales oriented. “We have
a weekly sales meeting,” Mr. Tiedje commented, “at
which time we look at what each person can sell from
the other areas. Our long-term objective is to have
these key sales departments all cross-selling for other
Mr. Tiedje went on to explain that “We have six
agents in the real estate division now and hope to have
10 by the end of the year. These agents are not employ­
ees of the bank but are independent. They pay for cer­
tain services and we provide certain services. They
help cross-sell services of the bank.” The insurance
agency also operates as a separate entity and is part of
the bank’s cross-selling team. Each department pays
its share of expenses. The sales people in real estate
and insurance are paid on a commission basis. “They
keep their own hours,” Mr. Tiedje noted. “We provide
the facilities, they provide their own help.”
After expenses are paid, a specified percentage of
the profit goes into an incentive compensation plan for
a total of seven people from the entire organization.
One half of the income generated from all these four deLOBBY THEATER...
(Turn to page 26, please)
Northwestern Banker, May, 1986


Gain customer confidence
with customer conveniences

T IS IMPORTANT that banks
present a professional and suc­
image. With the publicity
banks are getting these days, gain­
ing customer confidence is more im­
portant than ever before. It is a fact
that people do business with suc­
cessful people.
We are continually helping finan­
cial institutions present an image
they can be proud of. At the same
time, our firm helps to organize the
bank internally to increase person­
nel efficiencies in the bank’s every­
day operations. This is why so many

Written especially for
T he N o rth w estern B an k er

Vice President
Office Concepts, Ltd.
Waterloo, Iowa
financial institutions are calling on
Office Concepts, Ltd. to help assist
them in their new building addi­
tions, or remodeling plans.
Mahaska State Bank in Oskaloosa called on us to help assist in its
addition into the Old Legion Hall,
which was located next to the bank.

Have you just received an unsolicited tender offer or bid for
your bank? Are you contemplating sale of your bank? If you
are, Douglas Austin & Associates is specialized to assist you in
obtaining the "best"price and the appropriate terms for you and
your shareholders. Call us.
( 312 )




5105 Tollview Drive • Rolling Meadows, IL 60008 • Lansing • Toledo

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

The stone that was used on the ex­
isting bank was applied to the ex­
terior of the Legion Hall, which
brought the two buildings together
for a unified look.
Both floors of the Legion Hall
were incorporated into the bank in
the remodeling process to meet the
bank’s expanded needs in office
space and customer convenience.
The lower floor addition consists
of a waiting area with up-to-date
stock market reports shown on T.V.,
two offices for the financial consul­
tant and trust officer, and a con­
ference room.
The upper level consists of three
conference rooms, seven loan offices,
waiting area, note department, com­
puter area, library, and the presi­
dent’s office. An elevator also was
added as a convenience to the custo­
Customer confidence can be
achieved by installing customer con­
veniences and by presenting a
successful image.

(Continued from page 25)
partments goes to shareholders, the
other half is distributed to the seven
participants on a formula basis.
“ We set up an in cen tiv e
p ro g ram ’’ Mr. Tiedje stated ,
“because we didn’t think the future
of banking would allow just con­
tinual salary increases and would
have to be based on production.”
A Successful Venture
With every employee in the bank,
its subsidiaries and related busi­
nesses oriented to sales and cross­
selling, Bank of Norfolk is making
its Financial Center a successful
venture of the present, instead of
waiting for it to become a part of the
future. A catalyst for making the
public aware of all these varied
financial services is the Bank of Nor­
folk Theater right in the main lobby.
It is the “window” through which
customers and the general public see
how the bank can help them pre­
serve and enhance their personal
So, if you’re in Norfolk and you’re
invited by someone who says, “Let’s
go down to the bank and see what’s
on at the theater?” you should ac­
cept the offer. What you see might
be a brighter economic future for
your money!








Nebraska Firm Offers
High-Tech ATM Housings
Heritage Industries of Wayne,
Neb., a long time leader in modular
manufacturing has recently added a
complete line of High-Tech ATM
Duane Henneman, vice president
of Heritage Industries, stated “The
kiosks will include a state of the art
Drive-Up facility that can be set on
a narrow island, a regular Drive-Up
and a Walk-In facility. Financial institutions will be able to select from
a wide variety of sidings plus tile or
brick to enhance their ATM place­
ments. Further, our electronic turn­
table will place any ATM into the
service mode within a matter of seconds.”
Mr. Henneman went on to state
“Heritage will soon be introducing a
new line of modular teller cabinets
also and will be marketing its new
products nationwide through a dis­
tributor network.”
Kansas City Fed Reports
Net earnings of $809 million were
recorded by the Federal Reserve
Bank of Kansas City in 1985, with
the bulk going to the U.S. Treasury
as interest on Federal Reserve
notes, according to President Roger
The bank’s operating expenses
rose 4.4 percent, from $63.5 million
in 1984 to $66.3 million last year.
Payments to the U.S. Treasury
totaled $798 million, up $35 million
over 1984. The Kansas City Fed
paid dividends of $4.7 million to its
1,050 member banks in the sevenstate Tenth District, and added $6.4
million to its surplus account.





Wells Fargo Opens Ag
Financing Chicago Office
Wells Fargo Ag Credit, a national
agribusiness finance firm, has
opened an office in Chicago to provide loans to processors, producers
and distributors as well as com­
panies involved in the Midwestern
agricultural market.
Wells Fargo Ag Credit is a subsidiary of San Francisco’s Wells Far­
go & Company and an affiliate of
Wells Fargo Bank.
The new office, located at 55 West
Monroe St., is headed by vice presi­
dent and regional manager Larry
Federal Reserve Bank of St. Louis



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

Northwestern Banker, May, 1986



We’ve improved our service
and lowered our price.
Our cash letter availability is at an all time high. We now
estimate that up to 90% of your daily cash letter
will be available to you the next morning.
And this new level of service doesn’t cost you
any more. In fact, it costs you less. We’ve made
substantial price reductions for checks
deposited, wire transfers, bond coupon
envelopes, return items, food stamps,
safekeeping and transportation.

And our comparison
analysis will show
you how much
you can save.
Complete the questionnaire below and
return it to us for a no-obligation comparison
analysis. Or, give us a call at 309/655-5489
(TOLL FREE 1-800-322-2212)

Complete and mail to:
Attn: James Fassino
Commercial Banking Division
Commercial National Bank of Peoria
301 SW. Adams, Peoria, 1L 61631

The following is an estimate of
the items we process per month:
Local checks deposited

(please print)


Foreign checks deposited


Wire transfers


Return items






Average Cash Letter






. State.


Phone _L

mil shocoyou houJ
Commercial National Bank of Peoria
M em ber M id w e st F in a n c ia l G ro u p , Inc.

Member FDIC

301 S.W. Adams • Peoria, Illinois 61631
Phone: (309) 655-5489
WATS LINE 1-800-322-2212

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


"Open The Doors To New Horizons For Banking"





Exec. Vice Pres.

1986 Annual

Illinois Bankers
Association Convention
June 11-13
Adam’s Mark Hotel, St. Louis, Mo.




T. LOUIS, MO. is the site chosen for this year’s Il­
linois Bankers Association Annual Convention.
The event will be held June 11-13 at the Adam’s Mark
Hotel. This year’s convention theme is “Open The
Doors To New Horizons For Banking.’’
A wide array of speakers, workshops, panel discus­
sions, recreation and other activities have been plan­
ned for bankers and their spouses. Entertainment at
this year’s banquet will be provided by The John Polzin Orchestra, The Arbors, vocalist Lisa Michaels and
comedian Don Rice III.
Presiding at the convention will be IBA President
G. Thomas Andes, president of the First National
Bank of Belleville. Other IBA officers include: Vice
President, Charles E. Waterman, chairman and CEO,
South Holland Trust and Savings Bank; Secretary,
Harlan Yates, president, Cisne State Bank; Treasurer,
John Lutrell, president, First National Bank, Decatur,
and Executive Vice President, William J. Hoctor.
The program schedule follows:
Federal Reserve Bank of St. Louis

Wednesday, June 11


Buses depart for golf tournament.
IBA Golf Classic.
Registration/exhibits open. Cash buffet
lunch - exhibit area.
Numerous prize drawings. Buses depart for
tennis tournament.
Tennis anyone?
Riverboat cruise/brewery tour
Convention workshops
Interstate Banking—Frieder
Exceptional Performance—Turock
Anti-Takeover Devices—Brennan & Freechack
Convention workshops
Women’s Market—Nelson
Interstate Mergers & Acquisitions—Wooden
& Klein
Portfolio Management Strategies—Kubik, Ste­
phens & Thompson
Northwestern Banker, May, 1986


Illinois News

5:30- Complimentary welcoming reception
7:30 Baseball game—National League
Champ Cardinals vs Montreal Expos
Thursday, June 12
8:00 Registration opens. Complimentary regional
9:00 First general session
W hat’s Ahead for the Economy—Louis Rukeyser.
10:30- Exhibits open
11:00 Cash bar reception—Exhibit area. Cash lun­
cheon buffet—prize drawings
11:30 Special reception with Louis Rukeyser. (By in­
vitation only)
12:30 Spouses’ luncheon—Art Fleming
Noon Fifty year club luncheon
2:00 Second general session
Adventure in Creative Thinking—Mike Vance
Friday, June 13
8:00 Registration open. Continental breakfast—
Exhibit area.

8:00- Exhibits open
8:30 Third general session
View from the FDIC—C.C. Hope, Jr.
9:30 IBA/AIB State Education Committee Presen­
tation—John T. Kustes
State and Federal Legislation and Regulatory
Panel—G. Thomas Andes, William J. Hocter,
Sen. Philip Rock and William J. Bosies, Jr.
10:00 G rant’s Farm/Plaza Frontenac Tour
11:00 Cash bar reception—Exhibit area. Prize Draw­
Noon Convention luncheon
Alliance Between State Associations and the
ABA - The Benefits to Illinois Banks—Donald
Committment to Excellence—Lou Holtz
2:00 Grand prize drawing—Exhibit area.
Bankpac Fur/San Francisco Trip.
2:45 Fourth general session.
Bank Safety and Soundness—Kaufman, Kane
& Connell.
4:00 IBA Insurance Report—John Luttrell
6:00 Banquet reception
7:00 Banquet—The Arbors, Don Rice III, John Polzin Orchestra.

You Will See Them at the Annual
Illinois Bankers Convention June 11-13
HE following metropolitan bank­
ers and service and equipment
dealers have indicated that they will

J. Bowden, vice presidents; Therese
Hillgamyer and Richard D. Moline,
assistant vice presidents; Barbara
be attending the annual convention R. Winter, loan officer, and Thomas
of the Illinois Bankers Association L. Nelson, loan representative.
in St. Louis, Mo., June 11-13.
Northern Trust Company: Mr.
and Mrs. Charles H. Barrow, Mr.
and Mrs. Clyde W. Reighard, Mr.
Drovers Bank of Chicago: James and Mrs. John V.N. McClure, Mr.
Carmody, chairman; Joseph Migely, and Mrs. Charles H. Cory II and Mr.
president and CEO; John Crotty, Theodore W. Flint.
senior vice president; Kathleen Har­
dy, vice president, and Lawrence
First Wisconsin National Bank:
Nau, assistant vice president.
LaSalle National Bank: Homer J. Robert J. Vinent, vice president.
Livingston, Jr., president; John J. Bank Equipment and Other Firms
Douglas Austin & Associates,
Lynch, Jr., senior vice president;
Peter H. McGuire, Delmar Rogers, Toledo, Oh.: Dr. Douglas V. Austin,
Jr., Wayne L. Bismark, and Jeffrey president and CEO, and Robert

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

Bukowski, vice president.
HBE Bank Facilities, St. Louis,
Mo.: Patrick Kaiser.
Nortridge Software, Freeport, 111.:
Gary Osborne, sales manager.
Promoted in Galesburg
A.C. “Dick” Dickson, Jr. has
been promoted to executive vice
president of First Galesburg National Bank and Trust Company.
Mr. Dickson joined the bank in 1983
as a senior vice president and senior
loan officer. He has more than 30
years of commercial lending expertise. He was formerly senior vice
president of commercial lending at
Harter Bank and Trust Company,
Canton, Oh. He has also held senior
officer positions with the National
Bank of Detroit.





Illinois News

Two Elected in Melrose Park
Robert C. Gremley has been
elected president and CEO and
Thomas H. Roth has been elected
vice chairman of Melrose Park Na­
tional Bank.
Named in Yorktown
Bruce W. Taylor has been named
executive vice president of the Bank
of Y orktow n,
part of the ColeTaylor Financial
Group, Inc. He
was formerly se­
nior vice presi­
dent of the bank.
M r. T ay lo r
will continue to
head the com­
mercial and real
esta te lending
departments for the bank and will
assume additional responsibilities to
be announced later.
Mr. Taylor started at the bank in
1983 as a senior commercial loan of­
ficer. He began his banking career in
1977 at Main Bank of Chicago and
joined Drovers Bank in 1979.
Appointed in Galesburg
Malcolm E. Lambing, Jr., CEO of
First Illini Bancorp, Inc. has an­
nounced the appointment of Mary F.
McFadden to corporate vice presi­
dent of human resources for the cor­
She brings with her 12 years ex­
perience in all phases of human re­
sources management and employee
relations. She was most recently
manager of human resources mar­
keting for GTE in Chicago and pre­
viously served as corporate public
relations manager for DeKalb Agresearch, Inc.
Appointed in Wheeling
Carol L. Ennis has been appointed
vice president and trust officer at
Main Bank, Wheeling.
Ms. Ennis was previously em­
ployed by the Northern Trust Com­
pany, Chicago for 12 years, most re­
cently in corporate financial ser­
vices. Her experience also includes
marketing and sales of personal fi­
nancial services.
John E. Morlock has been pro­
moted to assistant vice president at
Main Bank.
Mr. Morlock was previously with
The Dunmah Bank, St. Charles, as a
Federal Reserve Bank of St. Louis


Kendon T. Birchard has been
elected president and chief operat­
ing officer of Community Bank of
Edgewater, a unit of First Colonial
Bankshares. Mr. Birchard comes to
Joins Arlington Heights Bk.
the bank from National Security
Craig J. Fahrner has joined The Bank, where he was senior vice
Bank and Trust Company of Arling­ president of marketing and retail
ton Heights as vice president/cash- services.
* * *
ier and security officer. Mr. Fahrner
has 16 years of bank operations ex­
Henry W. Tymick, vice president
perience. He was previously with Il­
administration and operations for
linois Marine Bank, Clarendon Hills.
W.N. Lane Interfinancial, has been
elected president of Money Net­
First Illinois Corp.
work, Inc., the Association for
Files For Stock Shares
Shared Electronic Funds Transfer.
First Illinois Corporation, head­
It was also announced that Joel J.
quartered in Evanston, has an­ Crabtree, senior vice president of
nounced that it has filed with the Continental Illinois National Bank,
Securities and Exchange commis­ has been elected to vice president
sion for an offering of 2,500,000 and treasurer, and Kenneth R. Keck,
shares of common stock. The offer­ senior vice president of Harris Trust
ing will be managed by Merrill and Savings Banks, to secretary for
Lynch Capital Markets. The multi­ the association’s board.
bank holding company expects to
Mr. Tymick, who has served on
use the net proceeds from the offer­ the Money Network board for five
ing to finance the acquisition of years and as its vice president in
First Burlington Corporation, to re­ 1985, succeeds Martin J. Noll, presi­
duce debt, and for possible future ac­ dent and CEO of First Security
First Illinois Corporation and
* * *
First Burlington Corporation have
Patrick J. Carmody has been
entered into a definitive agreement
vice president of Ford City
providing for the acquisition by the
company of all of the outstanding Bank and Trust
capital stock of First Burlington C om pany,
Corporation for $28.2 million in
cash. First Burlington is a multi­ Cole-Taylor Fi­
bank holding company headquar­ nancial Group,
tered in LaGrange with consolidated Inc.
Mr. Carmody
total assets at year-end of $245
million. The proposed acquisition is joined the bank
subject to regulatory approval and in 1985. Pre­
approval by First Burlington’s viously, he served
as a banking
c o n su lta n t to
United Savings of America, and di­
rector of Century Express Mortgage
services for Century 21 realtors. In
his new position, he will have a
variety of real estate lending respon­
* * *
Jeffrey L. Conner has joined Norwest National Bank of Chicago as
senior vice president and senior loan
Prior to joining the bank, Mr.
Conner was responsible for credit
and loan administration at Society
Bank of Eastern Ohio, Canton.

loan analyst. He has been with Main
Bank for four years and is located at
the Chicago office in Milwaukee and
Western Avenues.

(Turn to page 42, please)
Northwestern Banker, May, 1986

A. Zuehlke, Valley’s chairman and
CEO, pointed out that after the 3for-2 stock split, Valley would have
7.8 million common s h ar es
outstanding. Valley stockholders
currently number approximately
6 , 000 .

Valley Banc. Receives
Approval to Acquire Banks
Valley Bancorporation’s chair­
man, Gus A. Zuehlke, has announced
that approval has been received
from the Federal Reserve Board for
the affiliation of First National
Bank & Trust Co. of Beaver Dam,
Bank of Spring Green, The Commer­
cial Bank in Chilton, Peshtigo State
Bank and First National Bank of
Minocqua and W oodruff with
Valley. Shareholders of the banks
had previously voted overwhelming­
ly to approve the mergers.
Upon consummation, the share­
holders of the banks will receive
common stock of Valley Bankcorporation. In addition, approximately
20% of the shares of First National
Bank of Minocqua and Woodruff
will be exchanged for cash.
Mr. Zuehlke said that each bank
will continue to be managed by its
existing board and officers.
With the addition of these five
banks, Valley Bancorporation,
based in Appleton, will have assets
in excess of $2 billion.
WBA Elects Officers
The Wisconsin Bankers Associa­
tion (WBA) has elected new officers
and members of the WBA Executive
Council for the 1986-87 fiscal year.
Rowland J. McClellan, president
of the Valley Bank, Janesville, Wis­
consin will begin his term as presi­
dent in June following the Associa­
tion’s convention in Green Bay. Mr.
McClellan will replace Dean A. Treptow, president of the Brown Deer
Bank, Brown Deer, Wisconsin who
will continue to serve on the WBA
Executive Council.
Other officers are Richard P.
Klug, chairman of F&M Bank, Men­
omonee Falls, vice-president; and
treasurer, Thomas L. Schiefelbein,
president, Security National Bank,
Durand, Wisconsin.
Elected to serve three-year terms
as members of the 1986-87 Execu­

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

Elected at 1st Wis.
Lisa H. Sivanich has been elected
assistant vice president within the
personal services group of First Wis­
tive Council are Glen D. Johnson, consin Trust Company, Milwaukee.
president, First Wisconsin Bank of She will specialize in the administra­
Grantsburg; Jess S. Levin, presi­ tion of personal trust accounts. Ms.
dent, Bank of Elmwood, Racine; and Sivanich rejoins First Wisconsin
Jon R. Schumacher, senior vice after a two-year leave of absence.
president, The Marine Corporation,
Added in Brown Deer
Continuing as council members
Brian Casper has joined Capital
are: Harry B. Conlon, Jr., president,
Corporation/Brown Deer Bank,
Associated Banc-Corp, Green Bay;
Deer, as a
Larry J. Carson, president, Lancas­
ter State Bank, Lancaster; and Leo­ lender in its com­
nard Hoffman, vice-president, First mercial banking
National Bank, Bangor; John F. department. He
Bolles, president, Monona Grove previously held
State Bank, Madison; Richard D. several lending
Pauls, chairman of the board, First positions with
Interstate Bank of Wisconsin, She­ another major
boygan; and Ronald Isaacson, presi­ Milwaukee area
dent, State Bank of Medford.
The bank has
also named six
Elected in Menomonee Falls new directors to the board in a move
It has been announced that Law­ intended to expand its presence in
rence K. Elton has been elected as key markets. Board members are:
Charles F. Drake, president, Charles
Drake Associates, Inc.; Ronald E.
Hanbury, vice president/operations,
One Corp./Brown Deer
Falls. Richard P.
Bank; Michael R. Klemz and Rich­
Klug, who was
ard F. Laabs, senior vice president,
Capital One Corp./Brown Deer
moves to chair­
Bank; Jay H. Robertson, vice presi­
m an and r e ­
dent, partner and director of Robertmains CEO of
son-Ryan & Associates, and Dr. Ger­
the bank.
M. Rosen, D.V.M., veterinarian
M r. El to n ,
owner, Park Pet Hospital, Mil­
who was execu­
tive vice president of the bank, con­
tinues as executive vice president of
F&M Financial Services Corpora­ CPA Receives Award
tion. He joined F&M in 1984.
Sal A. Troia, CPA and vice president/treasurer of Valley Bancorpo­
ration, Appleton, was honored by
Valley Bancorporation Declares the National Association of Accoun­
3-For-2 Stock Split
tants Madison Chapter as the reci­
Directors of Valley Bancorpora­ pient of the President’s Achieve­
tion, Appleton, parent company of ment Award for 1986. He received
the Valley Banks, voted to authorize the award at a dinner held at the
a 3-for-2 stock split, thus providing Sheraton in Madison on April 16.
Prior to joining Valley Bancorpo­
a 50 percent stock dividend. On May
30, 1986, stockholders will be mailed ration, he was vice president/treaone new share of common stock for surer and chief financial officer of
each two common shares held as of United Banks of Wisconsin, Inc.,
the record date, May 23, 1986. Gus Madison for 16 years.

27 by Patricia Whiteside, who was
acting director of banking and fi­
nance for South Dakota at the time.
Immediately following that action, a
new state charter was issued to
Community State Bank of Stock­
holm, which opened for business on
March 31.
The purchasing group paid the
FDIC as receiver a total of $36,000
purchase premium and assumed
$6.3 million in 1,800 deposit ac­
State Bank in Pierre in 1977, serv­ counts. Community State also is
Richard Duncan Is Named
ing as member of the bank’s board purchasing certain of the failed
Director of Banking
bank’s loans and other assets for
of directors until two years ago.
South Dakota Gov. William Jank$4.5 million. FDIC advanced $1.8
million to facilitate the transaction
low has appointed Richard Duncan,
52, as director of
and retained assets of the failed
Three Advance in Sioux Falls bank with a book value of about $2.3
banking and fi­
nance for the
The board of First Bank South million. Stockholm State Bank had
state. Mr. Dun­
Dakota has elected Dennis Dau- $6.8 million assets when it was
can also b e ­
gaard, vice presi­
dent and trust
comes executive
The new stockholders are Norman
officer of the
Moldenhauer, who will be president
officer, trust ser­
s ta te banking
of the new bank; Maynard Linngren,
vices division,
commission. The
retired, Milbank, and his wife, ArSioux Falls.
appointment was
Mr. Daugaard
leen; Hollis Bohn, farmer, Strandeffective April 1.
burg, and Sydney Johnson. Mr. Mol­
Mr. Duncan
denhauer had joined Stockholm
in 1981 as a
fills the vacancy created by the re­ tru s t adm inis­
State Bank eight months ago as
cent retirement of Glen Ritterbusch. tra to r a t the
president, and will not head the new­
Patricia Whiteside of the depart­ bank. He was
ly-chartered bank.
ment of banking and finance staff elected a per­
was acting director during February sonal trust officer in 1982 and was
and March.
named assistant vice president in Plankinton Banker Retires
Mr. Duncan is a native of West 1984. For the past year he has been
Robert M. Burchfield, senior vice
Des Moines, la. He attended Iowa serving as personal trust manager.
president of the Farmers and Mer­
State University in Ames, as well as
Fred White has been elected vice chants State Bank of Plankinton is
Dakota Wesleyan, then received his president and manager of indirect retiring from the bank after 39 years
law degree from the University of retail lending.
of service.
South Dakota in Vermillion. Mr.
Mr. White joined the bank in 1972
Mr. Burchfield came to the bank
Duncan entered private law practice as a trainee at the main office. He in 1947 after having served in the
in Pierre and for 20 years headed his was elected an installment loan offi­ U.S. Army and also having been a
own firm of six attorneys.
cer in 1973 and was promoted to as­ teacher and coach at Woonsocket.
Mr. Duncan assisted in the orga­ sistant vice president in 1976. He was a member of the board and a
nization and chartering of American Named branch manager in 1984, he loan officer for a number of years.
has been serving at the east branch
Ronald Kristensen will take over
in Sioux Falls for the past eight Mr. Burchfield’s loan officer duties.
At the time this issue was
Mr. Kristensen has been a bank em­
being mailed, the South Da­
Cynthia Geiwitz has been elected ployee for the past five years. Prior
kota Bankers Association was
assistant vice president and trust of­ to that he worked in a finance com­
holding its Annual Convention
ficer, trust services division, Sioux pany.
in Sioux Falls at the Ramada
She joined First Bank of South
B. Michael Broderick, Jr.,
Dakota as a trust administrator in Correction!
president of First American
Rapid City in 1972, and was elected
In the list of “Largest Banks in
Bank, Canton, was scheduled
a personal trust officer in 1983. Fol­ South Dakota, the 1984 and 1985
to advance as president of the
lowing her move to Sioux Falls, she figures were inadvertently ex­
association, succeeding Bur­
has been a pension trust officer since changed for Farmers State Bank,
dette C. Solum, district presi­
Winner, ranked 14th among the
dent of Norwest Bank South
largest banks. Deposits for 1984
Dakota, N.A., Watertown.
were $71,060,000 and loans were
The complete convention re­
Stockholm Bank Fails,
$39,816,000. In 1985, deposits were
port with photos will appear in
New Bank Is Chartered
and loans were $35,
the Ju n e N o r t h w e s t e r n
The Stockholm State Bank was 612,000. The error does not change
B anker.
declared insolvent and closed March the bank’s ranking.
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1986






1st Vice President

2nd Vice President

96th Annual
Minnesota Bankers
Association Convention
June 2-4
Radisson St. Paul Hotel

Exec. Vice Pres.

HE Minnesota Bankers Association will hold its
96th Annual Convention at the Radisson St. Paul
Hotel, June 2-4, 1986.
Clinton Kurtz, MBA president and president of Citi­
zens State Bank, Norwood, will preside over the threeday convention.
During the general business sessions, new MBA of­
ficers will be elected for 1986-87. Endorsed candidates
are Roy Terwilliger, president, Suburban National
Bank, Eden Prairie, for MBA president; James R.
Jorstad, president, Citizens State Bank, Hayfield, for
MBA first vice president; A. William Sands, chairman,
Western Bank, St. Paul, for MBA second vice presi­
dent; and James Gessell, president Cherokee State
Bank, St. Paul, for MBA treasurer.
In addition, three new MBA board of directors mem­
bers, who were elected by MBA districts last Septem­
ber, will take office after the convention for a threeyear term. New board members are Charles Johnson,
president, Root River State Bank, Chatfield, MBA
Distrist 1; John F. Campe, president, Klossner State
Bank, MBA District 2, and James H. Hearon III,
chairman, National City Bank, Minneapolis, MBA
District 5.
In addition to the general sessions, special interest

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



sessions, on current banking topics will be repeated
twice daily for the convenience of convention dele­
gates. Nearly 40 exhibits on banking and related pro­
ducts will also be on review.
The MBA 96th Annual Convention will also offer a
special spouse’s program for spouses of convention
delegates, including a special hospitality center and
The convention will offer many social activities in­
cluding men’s and women’s golf tournaments. The
MBA annual banquet will be held Tuesday, June 3.
The Convention planning committee includes:
Gerald Bilski, MBA Convention Committee Chairman,
Midway National Bank, St. Paul; Richard Klingen,
Norwest Bank St. Paul; Rodell Hofland, First Bank
Security, St. Paul; Leonard Kiskis, First Bank Minneapolis/St. Paul; Gerald Thomas, Midway National
Bank, St. Paul; Mary Lou Terwilliger, Eden Prairie.
Convention speakers were not available at press
time. The program runs as follows:
Monday, June 2
8:00 Men’s golf tournament, Southview Country
Club; Mendakota Country Club.
Women’s golf tournament, Valleywood Golf






Some things have to change
A t M arquette Bank M inneapolis, w e feel
some things should endure.
Pride in a job well done. A high standard of
performance. A tradition of excellence.
These are the foundations of Marquette’s
Correspondent Services Division.
And it shows. . . in our ability to pinpoint
and analyze your problems and oppor­
tunities. Our willingness to roll up our
sleeves, to work with you, to deliver all the

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

Marquette Bank

Member FDIC

Correspondent Services Division
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis



Now’s the time to prepare for the new wave of
competition in banking—with automated services from
First Wisconsin.
We offer flexible systems that meet your market’s
demands. Backed by service professionals always there
when you need them.
You gain better information for better decisions.
Improved employee productivity. And
the tools you need to compete.
The natural result is profit­
able banking.
Discover the systems that
cultivate success. Call First
Wisconsin today at (414) 765-4z

©FWC 1986
Federal Reserve Bank of St. Louis


Minnesota News

Registration desk open
Spouse’s hospitality center open
Exhibits open.
Special Interest Sessions
Special Interest Sessions
First Night Hospitality hosted by: American
National Bank & Trust Co., St. Paul; First
Bank Minneapolis and First Bank St. Paul;
Marquette Bank Minneapolis and Norwest
Tuesday, June 3


Registration desk open
Fellowship Breakfast
Exhibits open.
Spouse’s hospitality center open.
General Session

• Delegates
• Pioneer and past officers
• Spouses
2:00- Special interest sessions-repeated from Mon­
3:30- Special interest sessions-repeated from Mon­
5:15- All convention reception-hosted by MBA
members and associates.
6:30 Annual banquet
Presiding: MBA President Clinton D. Kurtz.
Featuring: installation of 1986-87 officers and
Wednesday, June 4
8:00 Registration desk open
9:00- General session
11:30 President’s reception
12:15 President’s luncheon.
2:30 Convention adjournment.

MBA indicates that the positive
portions of the bill, including inter­
est write down and debt restructur­
ing will be rendered inoperable by
other provisions, which affect the
enforcement of loan agreements.
The burdensome, costly, and time
consuming requirements of ex­
tended mandatory mediation, ac­
cording to MBA, will only under­
mine the voluntary mediation pro­
gram already in progress. In addi­
tion, the act will decrease the value
of collateral relied on by agricultural
leaders, said MBA.
Clinton D. Kurtz, MBA president
and president of the Citizens State
Bank in Norwood said that agricul­
tural bankers say that the new legis­
lation will bring further deteriora­
tion to the current crisis situation in
agriculture. He said that lenders will
have to restrict credit as a result of
the well-intentioned but unwise
passage of the legislation.
“ U nfortunately,” Kurtz said,
MBA Calls For Change
“the sincere attempt to help farmers
In State Farm Law
will only have the effect of reducing
Key provisions of the Farm Bill credit and adding cost to many farm
recently passed by the Minnesota borrowers.”
Legislature will drastically reduce
the availability of credit in Minne­
sota agriculture, and should be re­ St. Cloud Agency Acquired
First Bank System, Inc. has re­
pealed or altered if the law is to be of
approval from the Federal
help to Minnesota farmers, accord­
ing to the Minnesota Bankers Asso­ Reserve Bank of Minneapolis to ac­

Named in Rochester
John C. Mulder has been named
president of First Bank Rochester,
succeeding Ran­
dolph S. Koppa,
who has taken a
position as a vice
p re s id e n t
First Bank Sys­
tem’s metro di­
vision corporate
banking group.
Mr. M ulder
jo in e d
F ir s t
Bank System in
1955 as vice president of regional
credit for the company’s southeast­
ern Minnesota affiliates. He had pre­
viously served as president of First
Interstate Bank in Racine, Wis. He
began his banking career in 1974 at
First Wisconsin National Bank of

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

quire Niskern Agency, Inc. in St.
The Niskern Agency, which wrote
$2.8 million in premiums and had an­
nual revenues of more than $350
thousand in 1985, will do business
as First Insurance St. Cloud-Niskern Agency. The agency will also
become the new Northern Minne­
sota regional headquarters of First
Bank System Insurance.
Elected Pres, in Albert Lea
Daniel L. Brady has been elected
president of First Bank Albert Lea.
He su cceed s
Waldon A. Jen­
sen, who has
taken a credit
management po­
sition with First
Bank System in
Bismarck, N.D.
Mr. Brady has
m ost recently
served in a credit
management po­
sition for First Bank System in
Rochester. Prior to that, he was as­
sociated with Norwest Bank in
Mason City, la., where he was vice
president and agricultural depart­
ment manager. He began his bank­
ing career in 1971, when he joined
Commercial Trust and Savings
Bank in Charles City, la.

Minnesota News

Changes Made in Brainerd
Maplewood Appoints Three
The board of First American
Maplewood State Bank has an­
nounced the following appoint­ Bank of Brainerd recently named
ments: Mark Novitzki has been Beverly Marx as assistant vice
president, human resources/security
elected as a vice
president, and
Ms. Marx joined First American
J u d ith B lack­
Bank in 1970 and has held various
burn has been
positions including: teller, loan sec­
elected as a per­
retary, executive secretary to the
sonal banking/
president, and personal banking
marketing offi­
manager prior to her duties in the
personal department.
Mr. Novitzki
In addition to this promotion, the
began a t the
Bremer Financial Services Corpora­
bank in 1983 as
tion, of which First American Bank
trainee. In 1984, he was appointed is a member, recently selected Ms.
Marx to serve as the regional human
to a loan officer.
Ms. Blackburn started at the resources officer, representing Re­
bank in 1983 as a teller. Since then, gion III in the Bremer Financial Ser­
she has held various positions vices network.
within the bank.
First American Bank of Brainerd
has announced that Debbie Jelacie
has joined the bank’s downtown of­
fice as a real estate loan representa­
tive. She has eight years of financial
institution experience.
The bank has also announced that
Dan Cymbaluk, real estate represen­
tative, will be returning to Crookston to join his family farming oper­

new bank operations school in Feb­
ruary, 1987. The school’s one-week
resident session will be held at the
Radis son Arrowwood in Alexandria
February 23-27, 1987. The compre­
hensive school curriculum is based
on the American Bankers Associa­
tion Professional Development Pro­
The school’s purpose is to prepare
present and future operations level
managers to effectively and effici­
ently manage the operations and re­
lated functions of a bank.
The school is open to present and
future operations managers who are
employees of member banks of the
MBA. Prerequisites for admission
include a minimum of one year in a
supervisory capacity or five years
banking experience; and successful
completion of various AIB courses.

Added in Thief River Falls
Northern State Bank of Thief
River Falls has announced that Kyle
Anderson has joined the staff as an
installment loan officer. He came to
the bank from Heights Finance Cor­
poration of Thief River where he
served as assistant manager.


In addition to the recent appoint­
ments, the bank has hired Bob Ken­
nedy, former principal of Oakdale
Elementary School, as director of
customer relations. His duties in­
clude maintaining close relations be­
tween the bank and its customers
and helping new and potential cus­
tomers become acquainted with the
bank’s services.
Employed in Brainerd
Lee Mielke, president of First
Bank Brainerd, has announced the
employment of
James D. Holle
as vice president
in commercial
le n d in g . Mr.
Holle has been
with First Bank
System for four
years and most \
^ ;
recently held a \
position as a re­
gional credit spe­
cialist. He was previously a commis­
sioned national bank examiner with
the OCC.

Federal Reserve Bank of St. Louis


Two Named V.P. in Rochester
Norwest Bank Rochester has an­
nounced that Beverly Simpson has
been named vice president and manager/consumer lending. She was
most recently vice president and
manager of the Green Meadows and
Northside offices. Ms. Simpson, who
joined the bank in 1956, was elected
assistant vice president in 1973 and
promoted to vice president and man­
ager of the Green Meadows office in
Ms. Simpson replaces Carla Kil­
patrick, who recently announced her
resignation and plans to move to
Betty A. Beck, retail service man­
ager, has been promoted to vice
president and manager/retail ser­
vices. She joined the bank in 1982
and was elected marketing officer
later that year. In 1984, she was pro­
moted to retail services manager.

Two Named in St. Cloud
Dan Hesterman has been named a
commercial lending officer at Zapp
National Bank, St. Cloud. He has
been with the bank for two years.
Mary Kay Pfannenstein has been
named a sales manager. She has
been with the bank for eight years.

Elected in Hastings
Norwest Bank Hastings, N,A.
has announced that Albert E. Patten
has been elected
as an agricul­
tural banking of­
ficer. Mr. Patten
joined Norwest
Bank Hastings
this year follow­
ing his associa­
tion with the
C e n tra l Iow a
Credit AssociaA.E. PATTEN
He is a graduate of the University
MBA Adds School
of Wisconsin, Platteville where he
The Minnesota Bankers Associa­ received a BS degree in Agricultural
tion has announced it will sponsor a Economics.
Northwestern Banker, May, 1986


Norwest Bank Minneapolis has
named Edgar M. Morsman, Jr. to
the new position
of senior vice
p re sid en t and
chief lending of­
ficer for corpo­
rate banking ac­
tivities in the
Twin Cities area.
Mr. Morsman
is the author of a
widely-used text­
book on loan
management. “Effective Loan Man­
agement” is the industry’s first
comprehensive reference guide for
loan managers.
President of Norwest Bank
Rochester since 1982, Mr. Morsman
was elected to the additional posts
of chairman and CEO of Norwest
Bank Dodge Center in 1984. Before
moving to Rochester from Minnea­
polis he was responsible for loan ad­
ministration policy and procedures
for Norwest Affiliate banks.
He joined Norwest Bank Omaha
in 1969 after two years as a finance
and intelligence officer with the U.S.
Army and six years with Morgan
Guaranty Trust Company as a loan
officer in Portugal, Spain, Italy and
* * *

First Bank Rochester since 1983,
was vice president and division man­
ager in the metropolitan division of
Continental Illinois National Bank
in Chicago. He held positions as
branch manager in Greece, The
Netherlands and Italy.
He started his career with Bank
of America in 1966 as an interna­
tional lender in San Francisco and
was later assigned to the Singapore



St. Anthony Park State Bank in
St. Paul has recently announced the
changes in its of­
ficial staff: Char­
les Hanneman
from vice presi­
dent to senior
vice president;
Laird Anderson
from vice president/senior lend­
ing officer to
vice president/
business development; Tamara Pe­
terson from marketing director to
marketing and training director, and
Sharia Fillhouer from teller super­
visor to consumer banking officer.
Mr. Hannema joined the bank in
1984, after working as a commercial
Randolph S. Koppa has been banking officer in the First Bank
named vice president and group System and a branch manager of
First Bank St. Paul’s Shoreview of­
head for the food
p ro d u c ts /a g rifice.
Mr. Anderson has had prior bank­
b u s in e ss and
ing experience at First Bank St.
Paul, Norwest Bank St. Paul, and
divisions of the
National City Bank.
First Bank Sys­
Miss Peterson joined the bank in
tem Metropoli­
1980 and has had the positions of
tan Division cor­
customer service, trainer, supervisor
porate banking
and marketing representative.
Ms. Fillhouer gained prior bank­
Mr. K oppa,
ing experience at First American
who has been
president and managing officer of Bank in Redwood Falls.

Banker, May, 1986
Federal Reserve Bank of St. Louis

The First Banks recently announced the promotions of Richard
L. Peterson to senior vice president,
real estate finance department, First
Bank Minneapolis and First Bank
Saint Paul; Gerald L. Reichwald to
senior vice president, special loans
real estate, First Bank Minneapolis
and First Bank Saint Paul; Harlee
E. Goldsteen to vice president,
special loans real estate, First Bank
M inneapolis, and William M.
McRostie to vice president, special
loans real estate, First Bank Saint






Mr. Peterson joined First Bank
Minneapolis in 1972 as a credit analyst and had been vice president in
the real estate finance division I
since 1982.
Mr. Reichwald, who joined First
Bank Minneapolis in 1965 in trust
real estate, had been vice president
in real estate banking, First Bank
Saint Paul since 1985.
Ms. Goldsteen, who joined First
Bank Saint Paul in 1985, had been





How ADT became
the largest processor of
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It started 20 years ago.
That’s when our parent, Amer­
ican N ational Bank of St. Paul,
pioneered data processing services
to com m unity banks throughout
the 9th Federal Reserve District.
A nd ADT h a s n ’t s to p p e d
growing since.
B a n k e rs seem to like o u r
approach to data processing.
They appreciate the fact that

becoming an ADT client requires
no heavy up-front investment. And
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with new banking technology and
They enjoy reliable reporting
and the prompt, personal attention
of their own ADT customer service
Each month, they get to tell
us what we’re doing right or how we

can make improvements.
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their total data processing costs
with ADT are lower than other DP
ADT has b een su c c e ssfu l
because we help our clients become
successful. To see what we can do
for you, call Dick Aird at 800/2373762 Extension 112. Or contact one
of our data centers listed below.

■ \ yv
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Subsidiary of
American National Bank
of St. Paul

Largest processor of
independent banks in the
9th Federal Reserve District

Federal Reserve Bank of St. Louis

ADT Minot • Jerry Lee • 701/852-1274
ADT Fargo • Doug Marquart • 701/237/5164
ADT Sioux Falls • Rich Miller • 605/336-8704

Northwestern Banker, May, 1986

Minnesota News
assistant vice president in real
Mr. McRostie, an attorney, joined
First Bank Saint Paul in 1984 as a
real estate officer. He had been
assistant vice president in real es­
tate banking/special loans since
* * *
American National Bank of Saint
Paul has announced that Sabina
Sten, vice presi­
dent, has been
p ro m o te d
manager of the
executive and
professional de­
M s.
S ten
joined the bank
in 1984 as vice
president in the
commercial loan
department, and in 1985, became a
member of the executive and profes­
sional department. Prior to joining
American, she had over 10 years of
banking experience with First Bank
Dean Cadry and Richard Goiffon
have joined the commercial banking
department as assistant vice presi­
Mr. Cadry has most recently been
employed by Richfield Bank and
Trust in the commercial lending de­
partment. Prior to that, he was with
Cargill Leasing Corporation as ac­
count manager, and with Nor west
Bank St. Paul as a lending officer.
Mr. Goiffon came to American
from First Minnesota where he most
recently served as assistant vice
president in commercial lending.
* * *

lead bank, American National Bank
The Chicago Bank of Commerce
of Saint Paul in 1982 as an account­ will open its third downtown facility ^
ing officer. In 1984, she was pro­ in June on the first floor of the 200
moted to assistant cashier.
North LaSalle Building in Chicago.
* * *
Pending regulatory approval, the
bank will be located at the main en­
David E. Zinschlag has joined trance of the 30-story office tower ®
Bremer Financial Services, Inc. as and will offer a full-service commer­
vice president-insurance education cial and retail banking center as well
and training/marketing.
as a 24-hour automatic teller.
Mr. Zinschlag had been with
George McCarthy, president and
PrideMark North Central, Inc. as CEO of the bank, said the selection ®
president and CEO. Prior to that, he places the bank in a geographically
held various positions at Anchor strategic location which will enable
Casualty, CNA Insurance Company it to maximize the North Loop mar­
and Security Insurance Group. He ketplace potential.
also owned and operated a multiThe 625,00 square foot office ®
lines independent insurance agency building has been developed by The
in Lake Elmo.
Palmer Group Ltd. for Teachers In­
surance and Annuity Association.
* * *
(Continued from page 31)

Richard M. Delaney has been
named vice president, marketing for
W.N. Lane Inte rfin a n c ia l,
which includes
the Chicago area
Lane banks. He
succeeds Paula
T. Bartholome,
who le ft th e
Lane banks to
manage the cam­
paign of Kevin
McCarthy, re­
publican congressional candidate in
the 20th district of Illinois.
Prior to joining Lane, Mr. Delaney
was manager of advertising and pro­
motional planning for Montgomery
Ward Corporation, Chicago. Pre­
viously, he was vice president of
marketing at ITT Consumer Finan­
cial Corporation, Minneapolis, and
Roger H. Scherer, president and marketing manager at Continental
CEO of Scherer Bros. Lumber Com­ Illinois National Bank.
* * *
pany, Minneapolis, has been named
to National City Bank’s board of di­
rectors. He is also president and
Gregory G. Cromwell has been
CEO of Truss Manufacturing Co.
and a general partner of Scherer promoted to vice president of per­
sonal banking, and Brenda A. RifenLtd.
to vice president and cashier at
Dr. Walter W. Heller, Regents
Bank of Edgewater.
Professor of Economics, University
Mr. Cromwell was assistant vice
of Minnesota, is retiring from the
board. He has been a director since president and assistant manager,
1964. He will remain a director of personal banking at Michigan Ave­
nue National Bank in Chicago.
National City Bancorporation.
Prior to her promotion, Ms. Rifen* * *
bery was a cashier and corporate
American Bancorporation Inc. secretary at the Community Bank of
has announced that Donna R. Eng­ Edgewater. Previously she served as
land has been promoted to director an operations officer for the Bank of
of internal audit. She joined A IB ’s Chicago.

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

Mark A. Shekerjian has been
named assistant vice president of
commercial loans, and Grant A.
Cowen has been named a commer- ®
cial loan officer at Amalgamated
Trust and Savings Bank.
Mr. Shekerjian joined the bank
from his position as assistant vice
president of commercial loans at •
Parkway Bank and Trust Company,
Harwood Heights. Mr. Cowen’s pre­
vious experience includes working
as a bank examiner for the State of
Illinois Commissioner of Banks and ®
Trust Companies.
* * *
Robert D. Sanford has joined
Drovers Bank of Chicago as an EDP
auditor. Mr. Sanford, who has 16
years of banking experience, pre­
viously worked with the First Na­
tional Bank of Chicago in both EDP
operations and more recently EDP
* * *


David L. Keller has been elected
to the North Shore National Bank’s
board. Mr. Keller is currently execu­
tive vice president of the bank and
manager of loan services and administration for Affiliated Banc Group.
* * *


Kenneth J. Douglas, chairman
and CEO of Dean Foods Company
has been elected to the board of
American National Corporation.
American National is the holding
company for American National
Bank and Trust Company of Chicago.





tural department. In 1973, he left
his position as vice president to ful­
fill a dream of becoming a full-time

MBA Makes Nominations
W.E. “Buster” Schreiber, presi­
dent of Mountain Bank of Whitefish, has been nominated by the
MBA Board of Directors for presi­
dent of the association. The board’s
other nominations include: James
Bennett, president of Citizens Bank
of Billings, for MBA vice president;
Lynn Grobel, president of First Na­
tional Bank of Glasgow, for MBA
treasurer, and Richard Timmerman,
president of First Bank Butte, for
immediate past president.
Elections for MBA officers will be
held at the 1986 convention and an­
nual meeting to be held in Kalispell,
June 25-27. Nominations may be
made from the floor.
The board also met with Governor
Ted Schwinden and proposed that
the state consider participating with
Montana bankers in the Farmers
Home Administration plan for inter­
est rate buydowns as a solution to
the ag situation.
Under the plan, Montana bankers
would offer capital to qualify ranch­
ers and farmers through the FmHA
buydown program and the state
would participate with an additional
one or two percent buydown on the
interest rate. An ag borrower could
possibly receive a four or five point
decrease in interest rates if this pro­
posal took effect.

Forsyth Bank Purchased
A purchase agreement has been
signed for the sale of First Bank
Forsyth. The bank, which had yearend assets of $60.4 million, will be
purchased by all 23 of the bank’s
employees and its six directors in­
cluding Albert A. Martens, vice
The sale is pending regulatory ap­
proval. Specific terms of the pur­
chase have not been disclosed.
Two Join Great Falls Bank
Village Bank of Great Falls has
announced that Richard R. Melone
has joined the bank as manager of
consumer loans, and Michael L.
DeMarco as cashier.
Mr. Melone has several years of
consumer lending experience, most
recently with First Interstate Bank,
Great Falls. He was also with Olym­
pic Bank, Everett, Wash., First
Bank Great Falls, and Security
Pacific Bank in Los Angeles, Cal.
Mr. DeMarco is returning to
banking after six years in the retail
business. He had last held the assis­
tant vice president/commercial lend­
ing position at First Bank Great
Falls. He was employed with First
Bank for 13 years.

Elected in Great Falls
Fred J. Hashley has been elected
as assistant vice president of Cen­
tral Bank of Montana, Great Falls.
Mr. Hasley’s banking career began
Changes Made in Cut Bank
Chris Owens has been promoted at Norwest Bank, Great Falls, in
to senior vice president at First Na­ 1976. He served as an installment
tional Bank of Cut Bank. He joined loan collector, installment loan offi­
the bank in 1969. Vince Taylor has cer and in 1984, was elected a com­
joined the bank as vice president. mercial loan officer.
He leaves the Pondera Bank of Con­
Rejoins Hamilton Bank
rad as president.
After an absence of some 13
Tom Kuka has been promoted to
assistant vice president in the com­ years, Don McGourty has rejoined
mercial loan department. He joined the staff at Citizens State Bank in
the bank in 1981. John Swanz has Hamilton as an agricultural loan
been elected to the board. He is a officer. When he came to the bank in
1962, he was in charge of the agricul­
Judith Gap area rancher.
Federal Reserve Bank of St. Louis

NABW Conf. Set for June 6-7
Focusing on “Managing for Pro­
fit,” the Montana State Conference
of the National Association of Bank
Women, Inc., will be held June 6-7 at
Grouse Mountain Lodge, Whitefish.
G. Virginia Higinbotham, vice
president of Park View Manage­
ment Services Corporation and for­
mer vice president of United Bank,
Pueblo, Colo, will speak on “Com­
peting on a Shifting Playing Field”
during the general session. Also
scheduled to speak are W.E. “Bus­
ter” Schreiber, vice president-elect
of Montana Bankers Association;
Mary Craig, owner of Mary Craig
and Associates CPA firm and for­
mer director of the Montana De­
partment of Revenue, and Claudia J.
Inman, national director of the
northwest region of NABW and as­
sistant vice president, Bank of Cali­
fornia, N.A., Portland, Ore.
Workshops will also be offered
during the conference.
Assisting Muffie Thomson, the
conference chairman and assistant
vice president, Flathead Bank of
Bigfork, in the planning are area
bankers: Patricia Birk, assistant
vice president, First Interstate
Bank, N.A., Kalispell; Marlene I.
Havens, cashier, Mountain Bank,
Whitefish; Barbara Hoyt, assistant
vice president, First Interstate
Bank, N.A., Kalispell; Pam Purcell,
assistant cashier, Flathead Bank of
Bigfork; Sharon Thomson, assistant
vice president, Bank of Columbia
Falls, and Lorine R. “Rene” Zukowski, credit operations officer, First
Interstate Bank, N.A., Kalispell.
Women Bankers in Billings
Nearly 60 women bankers gath­
ered at the Sheraton Hotel in Bill­
ings on April 4, to attend the
Women Bankers Conference spon­
sored by the Montana Bankers As­
sociation. The conference was de­
signed to address issues of manage­
ment and professionalism specific to
women in the marketplace.
The conference was put on by the
newly-created Women Bankers com­
mittee of the MBA, and had an es­
timated economic impact of $16,400.
Northwestern Banker, May, 1986


North DaKota BanKing.



We're Building
a B etter
Tom orrow



1986 Annual


Exec. Director

North Dakota Bankers
Association Convention



June 9-10
Holiday Inn, Fargo

ITH “Together...We’re Building A Better Tomor­
row’’ as the theme, this year’s annual convention
of the North Dakota Bankers Association reflects the
need for all commercial banks, regardless of size, to
work in harmony. The theme ties in with NDBA’s pre­
sent television advertising campaign.
The convention will be held June 9-10 at the Holiday
Inn, Fargo. A number of guest speakers are scheduled,
and entertainment at the convention banquet Tuesday
night will be provided by Danny Davis and the Nash­
ville Brass, winners of several Country Music Associa­
tion’s best instrumental group of the year awards.
Presiding at this year’s convention will be NDBA
President William M. Sanger, president of First Bank,
Wahpeton. He has been assisted this past year by
President-Elect Harvey Huber, president of Union
State Bank, Hazen; NDBA Vice President/Treasurer
John Pierson, president, Norwest Bank Minot, and
NDBA Executive Director Harry J. Argue, Bismarck.
The program schedule follows:
Monday, June 9
9:00 Ladies’ golf tournament (18 holes), Prairiewood Golf Course.
10:00 Men’s golf tournament (18 holes), Oxbow
Country Club.

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

12:00- 7:00 Registration desk open, Lobby.
6:00- 7:00 President’s reception — Pool Patio.
7:00 Dinner — Great Hall.
• “Gift of Laughter’’—James “Doc’’ Blakely,
Wharton, Texas.
Tuesday, June 10
7:30 Prayer breakfast — Great Hall
• Presiding: D.N. Hammerstrom, president,
West Fargo State Bank, West Fargo.
• Invocation and Memorial Service; Pastor
Thor Rykken, Faith Lutheran Church, West
• “Why You Are the Way You Are’’—Dr.
Kevin Leman, Christian Psychologist, Tucson,
9:30 General session — Harvest Hall
• Call or order—NDBA President William M.
Sanger, president, First Bank, Wahpeton.
• Recognition of NDBA executive councilmen
and 1985-86 committee chairmen.
• Presentation of 40 and 50-year banker
• Recognition of NDBA past presidents.
9:50 “The Nation’s Economy - Where Are We Go-

North Dakota News



ing?”—Irving R. Levine, NBC News economic
affairs commentator, Washington, D.C.
10:30 Break
10:50 Insurance presentation
11:20 NDBA business meeting
• President’s report.
• Nominating committee report: Les Nesvig,
chairman, NDBA nominating committee, pres­
ident, First State Bank, LaMoure.
• Election of officers.
• Vote on proposed NDBA bylaws amend­
• NoDakBankPac Progress Report—Roger
Berglund, NoDakBankPac chairman, presi­
dent, Dakota Western Bank, Bowman.
• Election of North Dakota Banking Leader­
ship Conference Delegate—Les Nesvig, ABA
state vice president for North Dakota, presi­
dent, First State Bank, Lamoure.
12:15 Delegates’ luncheon—Great Hall
• Presiding: Terry Zeltinger, president, Tow­
ner County State Bank, Cando.
• Invocation: Pastor George Buchin, Commu­
nity Presbyterian Church, West Fargo.
• News update: Charlie Johnson, KXJB-TV,





• Presentation of golf awards—Jack Holm,
Norwest Bank, Fargo.
• “Yes You Can!”—Art Linkletter.
Address: Mark Olson, ABA president-elect,
president, Security State Bank, Fergus Falls,
Address—William M. Isaac, president, The
Secura Group, Washington, D.C.
“Let’s Push the Wheelbarrow Right Side Up”
—Orion Samuelson, farm service director,
WGN Radio and TV, Chicago, IL.
Convention banquet—Great Hall
• Master of ceremonies: Jerry Woods, Manag­
ing director, North Dakota First Banks, Fargo.
• Invocation: Rev. Arthur Grimstad, associate
professor, Religion, Concordia College, Moor­
head, MN.
• Installation of 1986-87 NDBA officers
• Entertainment: Danny Davis and The Nash­
ville Brass.

(Turn to page 70, please)

to the board of the Sheridan Na­
tional Bank. Mr. Cammack is presi­
dent of Tracey Resources, Inc., a
Sheridan-based petroleum products
marketing firm.




Elected Pres, in Cheyenne
Eugene T. Haynes has been
elected president of the Western
Bank of Cheyenne. He comes to
Cheyenne from Douglas.
In addition, Terri L. Baker has
banking operations into the former been appointed cashier of the bank,
First Wyoming Affiliates
First National Bank building in and John C. Macleod has been
Purchase Banks
Green River. The banks’ combined elected vice chairman of the board.
First Wyoming Bank, N.A.— assets total $32 million.
Green River has purchased certain
Meanwhile, First National Bank
of the assets and assumed the bank- of Chugwater has sold certain of its Named in Cody
Dale Smith has been named vice
ing operations of First National assets and its banking operations to
Bank of Green River, effective First Wyoming Bank—Wheatland, president and manager of commer­
March 31. The announcement was effective March 31. Combined assets cial loans at First Wyoming BankCody. His most recent position was
made by David R. Johnson, chair­ of the banks total $25 million.
vice president and senior
man, president and CEO of First
loan officer at First Wyoming Bank
Wyoming Bancorporation. The Elected in Sheridan
Dale Cammack has been elected in Big Piney.
First Wyoming Bank has moved its
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1986


If we're not your
bank, you're
w riting off
the best service
in the region.
Frankly, you're short-changing your­
self and your customers by not using First
Interstate Bank of Denver as a correspon­
dent bank.
That's because no other bank in the
Rocky Mountain region approaches our
experience, resources, and breadth of
You're missing the business know­
how of the region’s oldest bank, one that
understands your market and has helped
large and small financial institutions suc­
ceed for over 100 years.
You're missing the strength and flex­
ibility of the multistate First Interstate
Bank system, with more than $49 billion
in assets.
And you’re missing a range of com­
prehensive and technically advanced
products that can be tailored to your
needs today and tomorrow.
Specifically, you're overlooking:
Cash letter processing that gives you
excellent availability and competitive
A proven commitment to extending

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

Participations that offer flexibility
and fast turnarounds.
Investment products and expertise
from the region’s leading investment
International services that offer
access to First Interstate's worldwide
The most advanced cash manage­
ment systems, along with complete
consulting and support.
Third-party cash management ser­
vices that will meet the needs of your
And you can buy federal funds at
national rates in amounts as low as
$50,000 on approved credit.
To learn more, call Bob Swartz now
at (303) 293-5600. Whether your operation
is large or small, you have a lot to gain
from the best correspondent banking
services in the Rocky Mountain region.


first Interstate Bank

F irst In terstate Bank of Denver
633 Seventeenth Street, Denver, Colorado 80270

M em ber FDIC




Vice President

85th AiinilSl


Exec. Manager

Colorado Bankers
Association Convention
Ju ne 4-7
Broadm oor Hotel
Colorado Springs
HE 85th annual convention of the Colorado Bank­
ers Association gets underway June 4-7 at The
Broadmoor Hotel in Colorado Springs. “Bankers:







Proud of the Difference We Make” is this year’s con­
vention theme.
This year’s convention promises a host of excellent
speakers, bigger and better exhibits, and terrific social
events. In addition to the general sessions, convention
attendees may participate in Discovery Sessions or
four workshops.
Presiding at this year’s convention is CBA Presi­
dent Royce B. Clark, chairman and president, IntraWest Bank, Greeley. He has been assisted this past
year by Vice President A.J. “Tony” Anderson, presi­
dent and CEO, The Kiowa State Bank, Kiowa, and Ex­
ecutive Manager Don A. Childears.
The convention program follows:
Friday, June 6
9:00- Noon Annual CBA President’s Address
—Royce B. Clark. Election and Installation of
1986-87 CBA Officers.
“High Performance Banking in the Colorado
Economy”—Alex Sheshunoff, founder of Sheshunoff & Company.
“Feeling Upbeat About Yourself, Your Profes­
sion & Your Future”—Heartsill Wilson,
author, consultant and professonal speaker.
Noon Luncheon—At this time, United States Space
Foundation Executive Director Richard P.
MacLeod will provide an informative review of
our nation’s space program and its future. Also
awards will be presented:
Federal Reserve Bank of St. Louis





• Departed Friends of the banking industry
• 50-Year Club
• Special Thanks for Years of Service as CBA
Legal Counsel-Bruce T. Buell and Richard M.
• Special Legislative Awards to several sup­
portive legislators
• Gift to CBA President Royce B. Clark
• Convention Tournament Winners
3:15 Two simultaneous sessions—Billy C.
Wood, deputy comptroller for the Western
District of the Comptroller of the Currency.
Richard B. Doby—Colorado’s State Bank com­
missioner and chairman of the state banking
3:15 ‘Personal Tax Planning”—Dinah L.
Lewis, a Denver tax lawyer and CPA.
This session on tax planning for individuals
focuses on tax problems that bankers and
spouses frequently encounter, along with stra­
tegies to minimize individual and estate taxes.
Also included will be a review of important re­
cent tax changes.
4:45 Two simultaneous sessions—Roger Guf­
fey, president of the Federal Reserve Bank of
Kansas City.
Sidney M. Carroll—FDIC assistant regional di­
rector based in Dallas.
4:45 “Creative Entertaining in the Home”
Emphasis is placed on fun and the creative use
of many kinds of foods and beverages (with
and without alcohol) that promise to make you
a memorable entertainer. This includes a brief
Northwestern Banker, May, 1986


Colorado News

review of your legal liability regarding alcoholrelated injuries and your guests.
4:45 Adjournment.
Saturday, June 7
7:30- 8:50 Continental Breakfast.
During a complimentary continental breakfast
from CBA, discuss any issue you choose with
your fellow bankers. You determine the agen­
da! Sit at any table with bankers of your choice
and discuss legislative issues, expense control
m ethods, p ro d u c tiv ity im provem en ts,
asset/liability management, D&O and blanket
bond, ag lending, Colorado banking’s future...
9:00- Noon General Session—A.J. “Tony” Anderson

“Banking Issues and Challenges”—Donald T.
Senterfitt, president of the American Bankers
Association and Vice Chairman of Sun Trust
Banks in Orlando, Fla.
• Election of Colorado Delegate to ABA Bank­
ing Leadership Conference.
• CBA Resolutions and Bylaws Amendments
“Risk in Banking: The Art of Managing
Events You Can’t Control”—John R. Segerstrom, chairman of Segerstrom & Co. bank
consulting firm.
An overview of risk in the deregulated banking
environment, focusing on financial and regula­
tory risk, recognizing key points of control,
establishing policy to manage exposure, and
measuring actual performance.

First Interstate Bank of Denver:
Bob Lee, chairman; Bob Malone,
president and CEO; Rod Uhrich and
president, Central Bank of Academy Bob Smith, executive vice presi­
Blvd., and Peter McQuire, executive dents; Jack Panter, senior vice presi­
vice president, Central Bank of Aca­ dent; Bob Swartz, vice president,
manager correspondent banking;
demy Blvd.
Colorado National Bank: Douglas Kirk Reed, Tom O’Hara, and Jack
H. Kelsall, vice president and re­ Bell, vice presidents, and Pat Amgional group manager; Larry G. burch and Deb Kelly, assistant vice
Matthes, vice president, and Ursula presidents.
M. James, Celeste E. McLane, and
Kansas City
Elizabeth H. Hund, assistant vice
United Missouri Bancshares: Lyle

You Will See Them at the 85th Annual
Colorado Bankers Convention June 4-7
HE following metropolitan bank­
ers and service and equipment
dealers have indicated they will be
attending the 85th annual conven­
tion of the Colorado Bankers Asso­
ciation June 4-7.
Central Bank of Denver: Mads
Anderson, president, Central Bank
of North Denver; John Stafford,

As a correspondent banker for over 12 years, I ve
helped holding companies and individual investors
finance new bank charters and acquire existing banks

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

Central Bank of Denver is a banker's bank. We under­
stand your management inform ation and accounting
needs. And we can provide our respondent customers
with bank-related software, ranging from board
reporting to loan documentation.

most recently as vice president and
manager of marketing and new ac­
The bank has also added Robert
J. Malone to its board. Mr. Malone
is president and CEO of First Inter­
state Bank of Denver.
Colorado News

Wells, vice chairman; Phil Straight,
executive vice president; Dick Muir
and Jeff Goble, vice presidents, and
Mark Bailey, bond investment offi­
Bank Equipment and Other Firms
Bank Building Corporation, St.
Louis, Mo.: Bob Owens.
Central States Health & Life,
Omaha, Neb.: Pat Keitges, regional
vice president, and Judy Straayer
and Foster Daniels, regional man­

Promoted in Denver
Scott A. Karas has been pro­
moted to senior vice president and
manager of re­
tail banking at
First Interstate
Bank of Denver.
Mr. Karas re­
places Gary J.
DeFrange, who
re c e n tly was
Five Named in Boulevard
named president
and CEO of
Mrs. Jerry Sheely, president of
First Interstate
Colorado National Bank-Boulevard
Bank of Engles.A. KARAS
has announced that Gaylene D. Ellis
Advanced in Denver
has been promoted to vice president/
After serving as senior vice presi­ loan administration, Michael H.
United Bank of Colorado, Inc.,
Denver has announced that Marga­ dent and chief financial officer of Rickard to assistant vice president/
ret A. McKechnie has been named First Interstate Bank of Idaho in operations, Jeanece Sneed to con­
director of corporate communica­ Boise, Mr. Karas joined the Denver troller, and Betty J. Dodd to person­
tions. Working with Ms. McKechnie bank in 1983. He has 15 years of nel officer. Joseph R. Wolkensdorfer
are Jay Fell, manager of financial banking experience, most recently has been named cashier at the bank.
Ms. Ellis joined the bank in 1977
communications and Linda Watson, as senior vice president of planning
as a loan clerk. She started her
manager of employee communica­ and analysis.
career in 1967 and was associated
with several banks in the Denver
United Banks has also announced
the election of Richard S. W att as Changes Made in Englewood area.
Mr. Rickard joined the bank in
chairman of United Banks Service
First Interstate Bank of Engle­
Company. He will continue to serve wood has appointed Roland Muhrer 1980, Ms. Snead in 1964, Ms. Dodd
as president of United Banks’ data as senior vice president. Mr. Muhrer in 1980, and Mr. Wolkensdorfer
processing subsidiary.
has been with the bank for 21 years came to the bank in 1974.

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a responsive andd titimely manner

When you call, ask for me, Bill Tumelty. And let’s tal
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Federal Reserve Bank of St. Louis

1515 Arapahoe Street
Denver, Colorado 80292
Member FDIC


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W e’ve been d o in g it fo r tw e n ty yea rs.
F u ll L ine of P roducts
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CSC also m anages data processing
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methods, including Micro Banking,
Remote C apture and Balanced Bank.
D ependable S e r v ice
The high level of service provided after
conversions have been made has kept
CSC a data processing
leader for banks in the
m id w e st. T e c h n ic a l
back-up and custom er
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through six com puter
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lo c a te d in L in c o ln ,
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Platte, Scottsbluff and
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in Denver, Colorado.

CSC has been in the data p rocessing
business since 1966. The com pany is the
l a r g e s t p r o v i d e r of b a n k d a ta
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active expansion policy has opened up
new m arkets in Colorado, K ansas and
B ankers W orking for B ankers
CSC understands banking. F inancial
softw are is developed by bankers for
bankers, u sin g the trad itio n al form at
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N a tio n al B ank of C om m erce

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

iilF ir s t C o m m e r c e bank.




Mo., where he was a senior opera­
tions officer.




Five Promoted in McCook
At American State Bank, Mc­
Cook, Bill J. Blough has been promoted to president, succeeding K.H.
Niedan, who will remain chairman of
the board. Mr. Blough formerly
served as the bank’s executive vice
president and cashier.
Richard E. Mustion was pro­
moted to vice president in the com­
mercial and agricultural loan depart­
ment. Other promotions went to
James A. O’Dea, cashier, Martha J.
Moore, marketing officer, and Roger
L. Taylor, vice president—agency
Elected Pres, in Ralston
S. John Bednar has been elected
president and chief executive officer
of the Ralston
Bank. He re­
places Arthur H.
Denker who died
su d d e n ly
March 15.
Mr. B ednar
was formerly a
vice president in
the commercial
loan department
and has been
with the Ralston Bank since last
year. Prior to that he was a vice
At the time this issue was
being mailed, the Nebraska
Bankers Association was hold­
ing its Annual Convention at
the Omaha Red Lion Inn.
C.G. “Kelly” Holthus, presi­
dent and CEO, First National
Bank, York, was scheduled to
advance as president of the
association, succeeding Mel
Adams, Jr., chairman and CEO
of Keith County Bank & Trust
Co., Ogallala.
The complete convention re­
port with photos will appear in
the Ju n e N o r t h w e s t e r n
B anker.
Federal Reserve Bank of St. Louis

president in commercial loans at the
Bank of Millard where he worked for
16 years.
Mr. Denker had been president of
the bank for 20 years.
Staff Changes in Curtis
R. Scott Wilkinson, president and
chairman of the Curtis State Bank,
died recently in Omaha. He had been
employed and active in the bank
since 1940 and was president/CEO
since 1947. His son, John S. Wilkin­
son, was promoted to president last
Other board hiring and promo­
tions include: Roger S. Hogeland,
vice president; Harold M. Farrar,
assistant vice president and cashier
and director; Shirley C. Jurgens, as­
sistant cashier, and Suzanne D. Hillmann, director.
Two Appointed in Stratton
At the Commercial Bank in Strat­
ton, Bill D. Zahl has been appointed
to president and CEO replacing
Robert N. Kehr who has retired.
Richard C. Bernt has joined the
bank as vice president replacing Mr.
Zahl. Mr. Bernt previously served as
a branch manager with the Produc­
tion Credit Association.
Named in Fort Calhoun
Linda Halford, cashier, has been
promoted to vice president/cashier
at the Fort Calhoun State Bank. She
has been with the bank for 10 years.
Ted Granger, Jr. has been added
to the staff as vice president of mar­
keting. He was previously with the
Platte Valley Bank of North Bend
and the Fremont National Bank and
Trust Company of Fremont.
Elected in McCook
Mike Zarzycki has been elected
senior operations officer of the First
National Bank of McCook. He
brings 23 years of banking experi­
ence with him. He comes from the
First National Bank, Kirksville,

Bank of Brady Purchases
Partial Assets
The Bank of Brady has purchased
some of the assets of the recentlyclosed Maxwell Cooperative Credit
Association and has opened a
branch office in Maxwell to serve
customers of the coop. Reportedly
the Bank of Brady will not assume
depositors’ accounts from the failed
institution, which was uninsured.
NBA Announces
Committee Chairmen
NBA President-Elect Kelly Hol­
thus has announced the following
bankers will chair the association’s
five standing committees: Jim Fox,
First National Bank of Albion,
BankPAC Committee; Jack Ayres,
Bank of Bellevue, Bank Manage­
ment Committee; Max Callen, City
National Bank, Hastings, Lending
Committee; Jim Nissen, Gateway
Bank & Trust, Lincoln, Government
Relations Committee, and Stan Ma­
ly, First National Bank of Lincoln,
Marketing Committee.
The bankers will also serve with
the 1985-86 chairmen on the Plan­
ning Committee, which will be
chaired by the President-Elect.
Elected in Norfolk
Richard Moore has been elected
as a cashier at the Bank of Norfolk.
Mr. Moore was employed with State
Federal Savings and Loan in Bea­
trice prior to joining the bank staff
in 1981. In 1984, he was promoted to
assistant cashier.
Bankers Graduate
Eighty bankers from Nebraska,
Kansas and Missouri have gradu­
ated from the 1986 School of Bank­
ing Fundamentals held March 17-21
in Manhattan, Kansas.
The program was offered by the
Schools of Banking, Inc., an organi­
zation sponsored by the Kansas and
Nebraska Bankers Associations.
The course featured a revised cur­
riculum designed to introduce the
students to basic banking concepts
as they relate to the overall opera­
tions of the bank.
The Professional Development
Program Intermediate School of
Banking is scheduled for September
Northwestern Banker, May, 1986

Firslier Correspondents

O ur N ew Nam e
Speaks For Its e lf.
So Does Our History.
Federal Reserve Bank of St. Louis



Omaha National and First National
Lincoln are now Firslier Bank Omaha and
FirsTler Bank Lincoln. New names for two of
the Midwest’s most experienced providers of
Correspondent Bank Services.
While our names may have changed, our
people and commitment remains. As always,
you can depend on the Firslier Correspon­

dents for fast, responsive, personalized ser­
vice in meeting your needs...the qualities our
reputations were built upon.
And, as our new name implies, we’re
dedicated to bringing you the “first tier” of
quality in everything we do...backed by more
than two centuries of combined experience.

For all your Correspondent needs, remember the name — Firslier.





Farnam at Seventeenth, Omaha, NE 68102
Phone: In Nebraska (800) 642-9305
Outside Nebraska (800) 228-9175

Gary L. Parker
Vice President / Manager

Richard J. Yeshnowski
Vice President

13th & M Sts., Box 81008,
Lincoln, NE 68501
Phone: (800) 742-7462

Gary L. Bieck

Steve Anderson

Vice President / Manager

Vice President

Delmar J. Olson

James L. Allen

Mark Hahn

Vice President

Vice President

Vice President
Federal Reserve Bank of St. Louis

Charles Greenway
Assistant Vice President

Firslier Bank, N.A., Omaha and Firslier Bank, N.A., Lincoln, Members FDIC


tion to the headquarters in Minnea­
polis, Norwest Investment Services
has 10 other locations including Chi­
cago, Des Moines and Omaha. The
Omaha office is located at 1919
Douglas. It was previously a depart­
ment within Norwest Banks Neb­
raska, N.A.



Chris E. Fenimore has been elected
as vice president and trust officer at
American National Bank of Omaha.
He will supervise the activities of
the bank’s trust department.
In 1983 Mr. Fenimore became as­
sistant industrial commissioner for
the state of Iowa. In 1984, he joined
the Hawkeye Bancorporation in Des
Moines as a trust officer, and in
1985, was promoted to assistant
vice president and trust officer at
the State Bank and Trust Company
in Council Bluffs.
* * *
Douglas County Bank and Trust
Company has announced that Pat­
rick M. Coyle
has joined the
organization as
a trust officer.
Mr. Coyle was
previously em­
p lo y ed
w ith
Douglas County
Bank and Trust
Company from
1976-79. He left
in 1979 to pur­
sue a private law practice and after
two years, worked as a trust officer
for Bankers Trust Company in Des
Moines, la., and Packers Bank and
Trust Company of Omaha.



First National Bank of Omaha
has announced that it has success­
fully implemented the new M&I
Marshall & Isley Loan Management
System, marketed and supported by
Software Alliance Corporation,
Berkeley, Cal., on February 14,

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

“To our knowledge, this is the on­
ly fully integrated database loan
product on the market today...” said
Jim Senter, First of Omaha vice
With a project team consisting of
eight program m ers and four
business analysts, the bank put the
system into production within five
months. During that time, it also in­
tegrated its IMS-based customer in­
formation package with the loans
product. Upon implementation,
First of Omaha converted 7,000 in­
stallment loans and 12,000 custo­
mers to the new system.
The bank plans to convert all of
its commercial loans and mortgage
loans later this year.
Because it is fully integrated, the
Loan Management System pro­
cesses all loan products - commer­
cial, installment and mortgage. Its
multi-institution, multibranch capa­
bility is designed to assist banks in
the delivery of any type of loan to
any type of customer. The on-line,
real time system is characterized by
a number of flexible, user-selected,
parameter-driven processing capa­
Mr. Senter said the system will
allow the bank to reduce the manual
effort required to service loans and
will also put “complete, accurate
and up-to-the-minute loan informa­
tion in the hands of management,
lenders, customer service staff and
the operations staff.”


The officers at the Omaha location are: Robert E. Billmeyer, senior
vice president and manager; Robert
J. Brown, vice president; Gregory D.
Lavitt, assistant vice president, and
investment officers Inez H. Basich,
Stephen F. Kuehl and Bradley J.
* * *
John E. Trecek has joined Munici­
pal Bond Underwriters, Inc. as gen­
eral counsel for
the firm. A na­
tive of Omaha,
he has been in
private law prac­
tice for the last
seven years. Mr.
Trecek g ra d u ­
ated from the
U n iv e rsity of
Omaha, with a
BA degree and received his J.D.
from the University of Nebraska,
MBU, Inc. specializes in tax-ex­
empt securities for municipal
growth and improvement.

Applies to Form Multibank
Holding Company
American Commerce Banshares,
Inc. has applied with the Federal Re­
serve Board to form a new multi­
bank holding company in Nebraska.
It would acquire ownership of Amer­
ican National Bank, Omaha; Home
* * *
State Bank & Trust Co., Humboldt;
Johnson County Bank, Elk Creek,
Norwest Investment Services is and The Dawson Bank, Dawson.
now a wholly owned subsidiary of The assets of the four banks total
Norwest Bank Minneapolis. In addi- some $125 million.







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

dependably and consistently
Call them toll-free — in
meeting all your correspondent
Nebraska 1-800-642-9907; outside
banking needs.
Nebraska, 1-800-228-9533.
And the faster things change, the
faster the anchormen respond —
with the latest financial technology
at their fingertips and the historic
financial strength of First National
of omaha
Bank of Omaha at their disposal —
one first national center, omaha, nebraska 68102
for you.
member FDIC • 341-0500

f irsl national bank

Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse.
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1986


Banking on common ground *

John Chrystal, President, Bankers Trust

t's easier to talk Iowa banking w ith people
w ho live it. People like John C hrystal and
the co rrespondent staff at Bankers Trust.
We u n d erstan d , first h an d , the needs of
your bank — an d your custom ers. Just as
w e u n d e rstan d the m any challenges facing
Iowa banking, today.
Like you, w e have a stake in Iowa, and
Iowa banking. So w h e n you n eed the services
of a co rrespondent bank, talk to the people
w ho speak y our language. Bankers Trust.




Call us for a complete range of
correspondent banking services.


Investment Management
Individual/Corporate Services

Bank Acquisition Loans
Overlines & Participations

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Fed Funds

Banking Systems Processing
ATM & Debit Card Support
Cash Letter Processing
Remote Processing Support

Call 1-800-362-1688 or 515-245-2424 • Seventh and Locust • Des Moines 50304

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

BankersTrust •
Member FDIC

consumer lending functions. He has
been associated with the bank for
the past six years and served as
Mr. Allison also announced the
appointment of Dwight Hughes, Jr.
to the banks board. Mr. Hughes is
president of Dwight Hughes Nur­








Complete Story of the
Assumption of Dyersville Bank
The board of the Federal Deposit
Insurance Corporation has approved
the assumption of the deposit liabili­
ties of The National Bank, Dyers­
ville, by American Trust and Savings Bank, Dubuque.
The failed bank’s only office re­
opened April 11 as a branch of
American Trust and Savings Bank
and its depositors automatically
became depositors of the assuming
The National Bank, which had
total assets of $42.1 million was
closed on April 10, 1986 by Dean S.
Marriott, senior deputy comptroller
of the currency, and the FDIC was
named receiver.
American Trust and Savings
Bank will assume about $38.2 million in 9,100 deposit accounts and
has agreed to pay the FDIC a pur­
chase premium of $516,500. It also
will purchase certain of the failed
bank’s loans and other assets for
$16.8 million. To facilitate the trans­
action, the FDIC will advance $21.7
million to the assuming bank and
will retain assets of the failed bank
with a book value of about $25.3 million.

marketing of First Interstate of
Iowa, Inc., Des Moines. Prior to that
he was employed by the American
Bankers Association, Washington,
D.C., and First Virginia Bank, Inc.,
Falls Church, Va.

C.W. Logan, Moville, Dies
Charles W. Logan, 95, chairman
of the First Trust & Savings Bank of
Moville, died April 4 after a short ill­
ness. Mr. Logan was actively in­
volved in the bank’s affairs as its
chairman until his death.
Mr. Logan organized First Trust
& Savings Bank in 1919, the third
bank in that town. One of the other
banks merged with Farmers Bank in
1924. Each evening after work, Mr.
Logan held a clearinghouse meeting
with a representative of the third
bank—Helen McElrath, daughter of
W.W. McElrath, who owned the
competing bank. Later, Charles
Logan and Helen McElrath were
married and continued to make their
home in Moville. Mrs. Logan, now
89, survives her husband.
Their son, Howard Logan, has
been president of the family bank
since May, 1965, at which time he
succeeded his father, who had been
president since 1928. Earlier in his
career, Charles Logan was chairman
of Iowa Bankers Association Group
I. Howard Logan served in the same
capacity for the 1979-81 term.

Staff Changes Announced
in Cedar Rapids
Stephen L. Allison, who has been
executive vice president of United
State Bank in Cedar Rapids for the
past nine years, has assumed the
position of president and chairman
of the board.
Before joining United Bank in
1977, he spent 16 years at People’s
Bank and Trust Company.
Mr. Allison has announced
changes in the lending department
of th e bank.
David W. Soren­
son has been
nam ed sen io r
vice president in
charge of all
le n d in g fu n c­
tions. Mr. Soren­
son has been af­
Sac City Pres. Retires
filiated with the
After 40 years of banking, George
b a n k and in
H. Pingrey has retired. He served as
charge of com­
mercial lending activity for over a president of the Sac City State Bank
year. He served as assistant vice for the past 24 years. He will con­
president for 10 years with Betten­ tinue as chairman.
Sioux City Pres. Elected
Succeeding Mr. Pingrey is Eldon
dorf Bank and Trust Company
Richard McGinnis of Des Moines before joining United Bank of Delta, J. Hoppenworth who has 25 years of
has been elected president and chief Colo, as manager of lending.
banking experience. He has served
executive officer
Jeffrey C. Johnston has been as president of the Parkersburg
of First Inter­
added to the bank’s lending depart­ State Bank and the Melbourne Sav­
state Bank of
ment and will be responsible for all ings Bank.
Sioux City, suc­
ceeding Bruce
Kolbe, who has
resigned to join
1986 Iowa Group Meetings
Pioneer Valley
Savings Bank in
Council Bluffs
Sergeant Bluff.
May 19
Fort Dodge
Mr. McGinnis
May 20
r . McG in n is
has over 13 years
Clear Lake
banking experience and for the past
May 22
three-and-one-half years has served
as vice president and director of
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1986


Iowa News

SPEAKING at this year’s EFT Conference in Des Moines were, from left: Jim Miller, ITS
chmn., Dale Dooley, ITS pres, and CEO, Joseph Coriaci, sr. v.p. Continental III. National
Bank & Trust Co., Chicago, and chmn. for the National Automated Clearing House Associ­
ation, who gave an “ Update on NACHA” during the conference’s concurrent sessions, and
Neil Milner, exec, v.p., Iowa Bankers Association.

Bankers Given Tips at EFT Conference
Associate Editor
HE 214 bankers who attended
this year’s EFT Conference in
Des Moines last month were given
tips on how to develop and maintain
a cost-effective EFT program in
their banks. A number of prominent
speakers shared their experiences
with EFT in nine concurrent ses­
sions held during the two-day con­
ference sponsored by ITS, Inc.
ITS Chairman Jim Miller, in his
opening remarks on the first day of
the conference, said ITS lowered its
fee structure in March and will es­
crow two cents of the fee, with one
cent held for rebate later to the ter­
minal owner and one cent to the
card-issuing bank.
Mr. Miller reported the number of
switched transactions in March was
1,599,215, with an increase antici­
pated for later this year. He said
POS is growing and continuing to
climb, with transactions in February
of 84,593.
ITS is conducting a statewide ad­
vertising campaign and will spend
$200,000 as soon as the organization
and the Captain Marvel copyright
owners work out an agreement on
the use of the “Shazam” logo, intro-


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

duced last year.
A very professionally prepared
slide show presentation, designed to
show how financial institutions are
keeping pace and leading the pack in
providing advanced electronic funds
transfer service, was shown. A spot­
light zeroed in on a live blues/jazz
saxophonist, who improvised his
theme for several minutes as the
slide film presentation, “We’re Play­
ing Your Song,” got underway.
Gradually, his music faded into the
background as other taped music
played during the rest of the film.
The theme of improvisation was
dominant throughout the film narra­
tion to emphasize how ITS has con­
tinued to innovate new and im­
proved services for financial custo­
Neil Milner, executive vice presi­
dent of the Iowa Bankers Associa­
tion, gave an overview of the Iowa
economy today that recounted the
severe decline in the ag economy of
the past two years. “ I think we’re
through the worst of it,” he said.
“We’re now getting clear indica­
tions that prices of farm land now
will cash flow.” He said many lead-

ers now are looking to a gradual rebuilding of the ag economy in
Mr. Milner also reviewed state
and federal legislation that will af­
fect midwest financial institutions,
including those that will hopefully
grant new powers to compete with
non-financial institutions. “ New
m a n ag e m e n t a p p ro a ch e s are
needed,” Mr. Milner noted, “to compete with new services by such com­
petitors as Sears and its Discovery
card...We are seeing changes and we
all must face these challenges to
stay competitive.”
Also addressing the subject of
competitors such as Sears, John F.
Fisher, senior vice president of Banc
One Corporation, Columbus, Oh.,
said bankers need to be more competitive. He said Sears should have to
provide two cards since banks have
to have Visa and MasterCard. “ I ’m
gonna petition Washington to insist
that Sears have the non-discovery
card,” he said.
On a more serious note, Mr.
Fisher urged bankers to “go home
and do something” and exercise
change in their banks. “We’re begin­
ning to see some change, but we’re
still restricted in the kinds of pro­
ducts we can buy.”
Speculating on banking in the future, he predicted many changes,
especially in the next 10 years. He
predicts ATM’s will peak at 1990
and then go downhill. He sees the
paper check and electronics coming
together in 1990. Banks, he noted,
are going to have to update their
facilities in the 1990s in order to
Becoming popular in 1990-2000
will be video banking according to
Mr. Fisher, and banks need to be
ready for this change. He said POS
also will become dominant in 2000,
with the financial center and ACH
also doing well.
Fading out of the banking picture
will be the main office, drive-in,
branching and paper checks. He said
many of the products will still grow,
but customers won’t have to go to a
bank to get them.
Mr. Fisher showed slides of his
bank before he renovated it to the
financial center it is today. He has
what he called a sales boutique, or
an expanded product offering, all
housed in the financial center. He’s
shortened customer lines to the tellers, installed ATM’s and updated
















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your bank
Federal Reserve Bank of St. Louis

The unique Flex-O-Pay» computerized billing system
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Northwestern Banker, May, 1986

Iowa News
the whole look of the building, inside
and out.
ITS President and CEO Dale A.
Dooley in his opening remarks dis­
cussed the EFT bill and urged atten­
dees to call their senators and repre­
sentatives and let them know they
support the organizations and the
bill. He said if this bill isn’t passed,
prices will go higher.
A dozen or so vendors were on
hand exhibiting some of the latest
technology. They were available to
demonstrate and explain the latest
technological advances, products
and services.
Bankers could choose from nine
different programs to attend during
the concurrent sessions. Many pro­
grams were presented twice, so all
could be attended. Topics covered
included an update on NACHA,
ACH marketing, legal considera­
tions at POS, ATM site selection,
marketing, credit cards and their
role at POS, a national network up­
date, touch-sensitive technology,
and marketing to retailers.
Those bankers who were fortu­
nate enough to attend this confer­
ence were rewarded with excellent
speakers and valuable information
on EFT systems that they can take
home and incorporate into their

Five Named in Dubuque
Lynn B. Fuller has been named
executive vice president and chief
operating officer
D u buque
Bank and Trust
Company. Mr.
Fuller has been
with the bank
since 1971 and is
responsible for
all operating di­
visions of the
K e n n eth J.
Erickson and Douglas J. Horstmann have both been named vice
presidents/senior lending officers.
Mr. Erickson joined the bank in
1975. Mr. Horstmann has been with
the bank since 1980. They are joint­
ly responsible for all lending areas.
Elsie M. Welsch, employed with
the bank since 1955, has been named
assistant vice president, marketing.
Sharyl E. Oswald has been ap­
pointed mortgage loan servicing
officer. She has been with the bank
Northwestern Banker, May, 1986
Federal Reserve Bank of St. Louis

J. Bruce Meriwether, IBA president, said “the IBA board felt that a
scholarship fund would be the best
way to commemorate our lost
Mr. Hughes was the president of
Hills Bank & Trust Company, Hills.
He was shot Dec. 9 by Lone Tree
farmer Dale Burr.
At the conclusion of the fund-rais­
ing effort, all contributing banks
will be recognized at IBA’s 100th
Annual Convention in September.
The Iowa School of Banking,
sponsored by the IBA in coopera­
tion with the University of Iowa College of Business Administration,
will be held at the University of
Iowa, Iowa City, June 22-27.





Three Named in Sioux City
First National Bank in Sioux City
has announced the appointment of
since 1968.
Patricia E. KuIn addition, Robert Kehl has been chel as the new
appointed to the bank’s board. He is marketing direc­
president of Roberts River Rides.
tor. She will be
Fellowship Program To
the bank’s mar­
Remember Hills Banker
keting and ad­
The Iowa Bankers Association v e rtisin g p ro ­
has announced the creation of a fel­ grams and the
lowship program established as a development of
memorial for Hills banker John a lo n g -ran g e
Hughes. The John Hughes Memori­ marketing stra­
al Fellowship will fund two scholar­ tegy for the bank.
ships to the association’s annual
Ms. Kuchel was previously associ­
Iowa School of Banking. These ated with Southern Hills General
scholarships will be awarded annual­ Growth Company as marketing offi­
ly to a representative of an Iowa cer for the Southern Hills Mall.
news organization to enhance his/
Two bank employees have been
her understanding of the commer­ named new officers. Jim Schafer has
cial banking industry, and to a been promoted to senior family
junior business major attending a banking officer and plaza branch
four-year Iowa college or university manager, and Sandy Volk has been
who has expressed an interest in named assistant cashier and opera­
banking as career.
tional services division manager.
Member banks have, at this print­
ing, donated $20,000 to endow the
John Hughes Memorial Fellowship.
The IB A is continuing to accept con­
tributions to the fund and plans to
use additional funds toward other
special projects of interest to the in­
Scholarship recipients will be
chosen by the Iowa School of Bank­
ing Advisory Board of which Mr.
Hughes served as both a member
and chairperson.
Mr. Schafer joined the bank in
IBA executive vice president Neil
Milner said the scholarships will 1984 as a senior family banking rep­
provide a member of the media and a resentative. Ms. Volk joined the
future banker with a better under­ bank in 1979 as a teller at the main
standing of the important role bank­ bank and became a teller supervisor q
in 1982.
ing plays in the state’s economy.


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Who Really Benefits?
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B Your Local M ason

0 Your Local Hardware Store

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The Kirk Gross Company uses local contractors and
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people who benefit.

The whole town benefits. That’s what your operation is all about. That’s what our operation is all about.

4015 Alexandra Drive
Waterloo, Iowa 50704
Phone 319-234-6641
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1986


Iowa News

IN ATTENDANCE for the “ Best of Iowa” marketing awards luncheon were, from left: Dick
Holthaus, mktg. dir., IBA; IBA Pres., Bruce Meriwether, pres., First Natl., Dubuque; Past
Mktg. Comm. Chmn., Marilyn Pohorsky, mktg. off., St. Central, Keokuk, and Mktg. Comm.
Chmn., Don Richards, v.p., Waterloo Svgs.

IBA Marketing Conference
Focuses on Opportunities
Robert Cronin
Associate Publisher


Melinda Sauers
Associate Editor

West Des Moines; Pat Thompson
and Chris Petersen, Evaluation and
Training C onsultants, Lincoln,
1986 Marketing Conference held at Neb.; Robert Miller, Bank Market­
the Hotel Savery in Des Moines ing Association, Chicago, 111., and
March 23-25. Some 130 marketing Gary Raddon, Raddon Financial
officers from across the state at­ Group, Chicago.
Mr. Uker demonstrated “How To
tended the three-day conference, en­
titled “Blueprint For Success.’’ A Get The Most Out Of Every Adver­
variety of speakers, concentrating tising Dollar,’’ with a slide show and
on new ideas rather than past perfor­ talk. He said that “real’’ advertising
mance, and the annual “Best of has to ask the prospect “to do some­
Iowa’’ marketing awards luncheon thing.’’
highlighted the conference. IBA
Marketing Committee Chairman
Don Richards and his committee
members presented 10 speakers dur­
ing the general sessions, as well as
three concurrent workshops during
the conference.
Marilyn Pohorsky, marketing of­
ficer, The State Central Bank of
Keokuk, announced the winners of
the IBA’s Best of Iowa Marketing
Awards at the noon luncheon. Pre­
ceding the awards presentation were
remarks by IBA President Bruce
Meriwether and a special audio­ THE “ Best of Iowa” entries were judged on
visual show of the 1986 award win­ the basis of creative excellence by a panel
of judges with professional background in
Conference speakers included Don banking, marketing, advertising and public
relations. Lyn Fair (left) and Jana Tanner ac­
Uker, media consultant, Denison; cepted
first place award for Joyce
Dr. Hale Starr, Starr & Associates, Chapmanthisof West
Des Moines State Bank,
West Des Moines; Dr. Charles who was awarded for the Newspaper cate­
Cleveland, Quester Corporation, gory for banks above $100 million assets.
rather than
difficulties were emphasized at
the Iowa Bankers Association’s
p p o r t u n it ie s

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

Nonverbal communication was ^
the topic of Dr. Starr’s presentation. w
Choosing various men and women
bankers out of the audience, she
asked attendees to test for a bank
image. People see bankers as conser- ^
vative dressers, she said.
“A successful banker is one who
listens,’’ according to Dr. Cleveland.
He said the bank customer is look­
ing for help in handling his money. ^
A bank is perceived as a place to
store money, but Dr. Cleveland said
a bank is actually a record keeper
and processor of funds.
Speaking on the topic of research q
and its effect on marketing pro­
grams, Mr. Petersen said, “Re­
search helps us to understand the
marketplace, understand who we
are, to set goals, to follow our set or £
achieved goals, and it helps us en­
thuse those people around us and
get them working towards the same
Mary Riche, president, Riche
Associates, Inc., Des Moines, talked
on how quickly people form impres­
sions. “The first 20 seconds are the
most important for a person to de­
cide what you’re like or if they like #
you - impression leads to image,’’
she said. “You are what you commu­
According to Cal Coquillette, pub­
lisher, Plan For Action, Cedar #
Rapids, advertising budgets by
1990 will be rechanneled to direct
mail, call programs, formal report­
ing and telemarketing. “The future
of successful bank marketing will be •
through telemarketing,’’ he con­
Richard Holthaus, IBA market­
ing director, presented the results of
a banking perceptions study con- ®
ducted by the association. The
study, according to the IBA, indi­
cated that Iowans overwhelmingly
remain confident in the state bank­
ing system and their local banks. ®
The study also showed that Iowans
continue to look to their local bank­
ers for community leadership. Mr.
Holthaus said, “ Given the financial
environment in which a bank must ®
operate today, this may have been
one of the most important confer­
ences our members will attend. ’’ □
“ Best of Iowa” Awards



Bank Size $1 — $30MM
First Place — Treynor State Bank, Treynor
Merit Award — West Chester Savings Bank,
West Chester.
Bank Size $30 — $60MM






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ä ä f e - Ä ’w ^





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So it comes with benefits
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W ant to know more?
For complete IBIS creditor pro­
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Northwestern Banker, May, 1986


Iowa News

First Place — Iowa Trust & Savings Bank,
Bank Size $60 — $100MM
Merit Award — Manufacturers Bank & Trust
Company, Forest City.
Bank Size $100MM & Above
First Place — West Des Moines State Bank,
West Des Moines.
Merit Award — Security Savings Bank, Mar­

Merit Award — Farmers & Merchants Bank
& Trust, Burlington.
Bank Size $100MM & Above
First Place-Merit Award — Peoples Trust &
Savings Bank, Indianola.
Merit Award — Council Bluffs Savings
Bank, Council Bluffs.
Merit Award — Union Bank & Trust Com­
pany, Ottumwa.

Bank Size $1 —$30MM
First Place — Security National Bank, Jef­
Merit Award — Perry State Bank, Bagley.

Newspaper Series

Bank Size $100MM & Above
First Place-Merit Award — Security Na­
tional Bank, Sioux City.

Community Relations

Outdoor Advertising

Bank Size $1 — $30MM
First Place — Peoples State Bank, Missouri
Bank Size $30 — $60MM
First Place — Peoples Trust & Savings
Bank, Indianola.

Bank Size $1 — $30MM
Merit Award — First Interstate Bank of
Kalona, Kalona.
Bank Size $30 —$60MM
Merit Award — Hampton State Bank,
Bank Size $60 — $100MM
First Place — Iowa Trust & Savings Bank,
Bank Size $100 & Above
First Place — Brenton National Bank of Des
Moines, Des Moines.
Merit Award — First Interstate Bank of Des
Moines, N.A., Des Moines.

Bank Size $1 —$30MM
Merit Award — Home Savings Bank, Persia.
Richard A. Stachon proudly shows off his
first place award for Brenton National Bank
of Des Moines. He was a winner in the liter­
ature category for banks over $100 million
in assets.

Merit Award — Security National Bank,
Sioux City.
Products & Services

Bank Size $1 — $30MM
First Place-Merit Award — Treynor State
Bank, Treynor.
Bank Size $30 — $60MM
First Place — Grundy National Bank, Grun­
dy Center.
Merit Award — Iowa State Savings Bank,
Bank Size $60 —$100MM
First Place — Mahaska State Bank, Oskaloosa.

Committed to
making your
bank stand
apart from the

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


Bank Size $60 —$100MM
Merit Award — Manufacturers Bank & Trust
Company, Forest City.
Bank Size $100MM & Above
First Place — West Des Moines State Bank,
West Des Moines.

Bank Size — $1MM & Above
First Place — Security National Bank,
Sioux City.
Merit Award — Northwest Bank & Trust
Company, Davenport.

Bank Size $100MM & Above
First Place — Council Bluffs Savings Bank,
Council Bluffs.

Changes Made in Mason City
A number of staffing changes have
been announced at Norwest Bank
Mason City.
Dennis Fryar has been named
vice president and manager of the
commercial department, replacing
Grant Barton who has resigned. Mr.
Fryar’s successor as manager of the
agricultural department is James
Morrow, vice president, who has
been promoted.
Additionally, Craig Miller has
transferred from the capital lending
group to assistant vice president,
commercial lending. Steve Flage has
been promoted from credit analyst
to commercial officer. “Al” Gemaehlich has also joined the commercial
department as commercial officer
from his previous responsibilities in
overall bank business development.
Jim Garver has taken on added
responsibilities as a capital lending
officer in that group while continu­
ing duties as financial institution
client executive.
Dennis Meek, Norwest client ex­
ecutive serving the North Iowa/
Southern Minnesota commercial
mid-market, has resigned, having
accepted a managing officer position
at Norwest Bank Olson Highway,



IBA Reorganizes Staff

The Iowa Bankers Association’s
board has approved the reorganiza­
tion of IBA’s vice president posi­
Wes Ehrecke, vice president of
government relations/agricultural
director will act
as spokesperson
for IBA in the
• absence of Exec­
utive Vice Presi­
dent, Neil Mil­
ner. Mr. E h ­
recke’s responsi® bility will be to
focus more time
on the industry’s
role in govern­
ment relations and agriculture areas
® including increased involvement
with the IBA board and manage­
ment. He supervises IBA compli­
ance, government relations and agri­
culture departments.

There Is a Difference
in Banks


John Sorensen has been hired for
the newly-created position of vice
president of administrative services.
Mr. Sorensen came to IBA from the
Iowa Corn Promotion Board and
Growers Association, West Des
Moines, where he was administra­
tive director responsible for admin­
istration and financial management
for the two related organizations.
Mr. Sorensen’s duties with IBA
include planning, directing and coor­
dinating the activities of the inter­
nal administrative services which in­
clude the job titles of controller,
human resources director, planning
and data processing.
Marva McCarty, former educa­
tion director, has been promoted to
the newly-created position of vice
president of membership services.
This position involves planning, di­
recting, and coordinating the exter­
nal activities IBA provides to its
members. She is also responsible for
the supervision of IBA’s communi­
cations, education and marketing
Federal Reserve Bank of St. Louis

Trust, confidence, loyalty ... words our customers
use to describe how they feel toward Valley
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Valley Bank is experiencing substantial growth
... in deposits,, and
... in earnings.
That’s because we maintain a highly skilled staff,
offer top service, and perform well financially.
We welcome your inquiry ...
Remember, there is a difference in banks.

Valley National Bank
Main Office-Sixth and Walnut

M em ber FDIC


For Professional Correspondent Service
call 1-800-622-7262

Northwestern Banker, May, 1986


Shijiazhuang is Des Moines’ sis­
ter-city and Hebei Province is
Iowa’s sister-state.
This relationship will allow for
transactions to take place directly
between Bankers Trust Company
and the Bank of China, thus avoid­
ing costly and time-consuming de­
lays. Both banks are members of the
international on-line communica­
tions system known as S.W.I.F.T.
(Society for Worldwide Interbank
Financial Telecommunications).
* * *

D e s M o in e s 3L
Following a meeting of the board
of First Interstate of Iowa, Inc.,
K enneth
Myers has an­
nounced that his
su c c e sso r as
chief executive
officer of the Des
M oines based
multi-bank hold­
ing company will
be Oliver H.
Hagen, p re s i­
dent and COO.
Mr. Hagen will take over the duties
of CEO on October 1, 1986, follow­
ing Mr. Myers’ retirement. Mr.
Myers will continue to serve as
chairman after that date.
Mr. Hagen joined First Interstate
in 1983 as executive vice president,
was elected president in 1984, and
became a director of the holding
company later that year.
He previously served as president
and CEO of First Bank of North Da­
kota, N.A.—Fargo, and of First Na­
tional Bank of Willmar, Minn. He
began his banking career with the
First National Bank of Austin,
* * *

Torgler to assis­
tant vice president/loan admin­
Prior to join­
in g
B re n to n
Banks, Inc., Mr.
Torgler worked
for the State of
Iow a D e p a rt­
ment of Bank­
ing. He was em­
ployed in the Emmetsburg, Daven­
port, and Cedar Rapids field offices
as a bank examiner, and most re­
cently was a bank examination an­
alyst in Des Moines.



Robert G. Millen, president and
CEO of First Interstate Bank of Des
Moines, N.A.,
has announced
the promotion of
Linda Bollenbaugh to man­
ager of the West
Des Moines Of­
fice located at
G ran d
Avenue in West
Des Moines.
Harry McCutcheon, Jr. has been baugh joined the bank in 1980 and
promoted from vice president to se­ became customer service representa­
nior vice president of East Des tive in 1983.
* * *
Moines National Bank.
president and
Mr. McCutcheon joined the staff
in 1978. Prior to this, he was associ­ CEO of Bankers Trust Company has
ated with Iowa State Bank for 16 announced that the Bank of China in
Shijiazhuang, Hebei Province of the
Peoples’ Republic of China has
* * *
agreed to establish a formal corres­
Brenton Banks, Inc. has an­ pondent relationship with Bankers
nounced the appointment of Alan Trust Company.

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

Robert G. Millen, president and
CEO, First Interstate Bank of Des
Moines, N.A.,
has announced
the promotion of
Mary Lou Baker
to trust adminis­
trative officer.
M s. B ak e r
joined First In­
terstate in 1971
and has held the
positions of pro­
bate a ssista n t
and personal trust administrator.
* * *

In keeping with Brenton Banks’
“Extra Effort” theme for 1986, the
Des Moines area Brenton Banks are
taking part in a 10-week promotion.
The promotion guarantees that all
employees will smile, greet custo­
mers by name, provide information,
answer questions, and make every
attempt to satisfy customers’ re­
quests and meet their financial
If not, customers will receive a
Susan B. Anthony silver dollar, no
questions asked as an apology for
this exception. Each customer con­
tact employee has a supply of silver
dollars. Supervisors can add to this
supply for exemplary service.
At the end of the promotion, the
employee will keep their supply of
dollars. There will also be awards for
those employees who end up with
more money than they had at the
beginning of the promotion.



It was reported in last month’s
issue that Gary Calvert had been
promoted to manager of First Inter­
state Bank of Des Moines, N.A. It
should have read that Mr. Calvert
had been promoted to manager of
the South Des Moines First Inter­
state Bank Office.


First Interstate Investment Services
When you have investm ent d ecision s to m ake, whether big or sm all, call on the professional
staff in the First Interstate Bank Investm ent Departm ent. Their expertise in governm ent and
m unicipal bonds, fed funds, repurchase agreem ents, bankers acceptances, certificates of
deposit, and discount brokerage will help you realize your m oney m anagem ent goals.

Federal Reserve Bank of St. Louis

First Interstate Bank
First Intersta te Bank o f Des Moines, N.A.
6th & Locust
Des M oines, IA 50309
Ext. 7029

Northwestern Banker, May, 1986


Iowa News

Mr. Kloss was previously trust of­
ficer at First National Bank of Chi­
Robert S. De Waay, who has been cago and senior trust administrator
president of United State Bank, at Continental Illinois National
Cedar Rapids, since 1983, has re­ Bank.
signed to become executive vice
president of the Merchants National
Elected in West Des Moines
Bank of Cedar Rapids.
William J. Duma has been elected
Mr. De Waay served as a bank ex­
aminer for the state of Iowa from as first vice president of West Bank
1970 to 1974. He later was an officer in West Des Moines. Mr. Duma’s ex­
of the Jasper County Savings Bank tensive experience includes most re­
in Newton and the Clay County Na­ cently, vice president, First Inter­
tional Bank of Spencer. He was ex­ state Bank of Des Moines and pre­
ecutive vice president of Hawkeye viously, Barclays Bank, First Na­
Bank and Trust in Des Moines tional Bank of St. Paul and National
before being named president of Bank of Minnetonka, Minn., where
he was president and chairman.
United State Bank.
Mr. Duma will be responsible for
developing commercial loans, inven­
tory and receivable financing and
operating lines of credit for metro­
politan business clients.

Two Join Cedar Rapids Bank




State Bank of Cedar Rapids.
Ms. Jewell joined the bank as
head teller in 1963, and was named
assistant cashier later that year. In #
1969, she was named assistant vice
president and became west office
manager in 1974.

Joins Sergeant Bluff Bank

Bruce M. Kolbe has joined the
Pioneer Bank of Sergeant Bluff as
Brenton First National Bank of executive vice
Davenport has named Jon E. president and a
Schmidt senior vice president, and member of the
promoted Ellen Jewell to vice presi­ board.
Mr. Kolbe has
involved in
Mr. Schmidt joined the bank in
John J. Kloss has been appointed
senior vice president and manager of 1985 as vice president and was later Sioux City bank­
the trust department of the bank. named head of the commercial bank­ ing circles for
He had been with Associated First ing division. He had worked as a th e p a s t 22
Neenah Bank in Neenah, Wis., since bank examiner for the FDIC. Prior years, 14V2 years
1979, serving most recently as vice to joining Brenton he spent several w ith S ecurity
years as a senior officer with United National Bank
president and trust officer.
and the past l lA years as president
of First Interstate Bank of Sioux
He recently completed a twoW. Des Moines Resource Center Opens year term
as chairman of Group 1 of
the Iowa Bankers Association and
as a IBA board member.

Named in Davenport

Elected in Waterloo

IOWA GOVERNOR Terry Branstad, left, and former Governor Robert D. Ray, president and
chief executive officer, Life Investors, Inc., Cedar Rapids, were present for the official
opening of Creditor Resources’ Iowa Resource Center in West Des Moines, last month.
Creditor Resources, Inc., is the credit insurance subsidiary of Life Investors, Inc., an Iowa
holding company founded in 1959. The Resource Center will be the training site for “ credit
insurance professionals,” according to Frank Shimsky, president of the center. Mr. Shimsky said, “ It will be a unique vehicle for delivering Creditor Resources’ insurance and finan­
cial services to the market place.”
According to Governor Ray, the center will train thirty to fourty people daily. “ As an edu­
cational facility for credit professional, the Iowa Resource Center has a planned annual
training curriculum of 180 days,” Governor Ray said. The facility, located in West Des
Moines, will have regional impact involving the surrounding states of South Dakota and
Nebraska. The estimated daily cost to attend the center will be approximately $90.
Northwestern Banker, May, 1986
Federal Reserve Bank of St. Louis


Steven G. Marlette, CPA, has
been elected to vice president of
Peoples Bank and Trust Company,
Waterloo. Mr. Marlette has been ^
with Peoples Bankshares, Ltd., the
holding company of which Peoples
Bank is the lead bank, since 1983,
and will continue as a holding com­
pany officer. Prior to joining Peo- £
pies, he was a cost accountant for a
Sioux City bank.

Joins Waverly Bank


Susan M. Whitson has joined the
staff of The First National Bank of
Waverly as a loan review officer. She
has been employed as a loan officer
in the Manchester and Cedar Falls •
offices of Federal Land Bank.

Iowa News

Changes Made in Postville
At Citizens State Bank, Postville,
Steven B. Werner has been pro­
moted from assistant vice president
to vice president. He succeeds R.E.
Busse who retired last fall.
Other recent promotions include
Marie Meyer to assistant vice presi­
dent, Terri Downing to assistant
cashier, and Scot O. Nelson has
joined the bank as an ag loan officer.


NABW Hosts State Capitol Day

Hired in Lincoln
Steve Alber has been hired for the
position of vice president branch
manager of the Lincoln Savings
Bank office at Lincoln. Mr. Alber
spent two years with a commercial
bank at Scales Mound, 111., and one
year with the Farm Credit System in
West Union and New Hampton.

Added in Maquoketa
Francis (Frank) Klett has joined
the Maquoketa State Bank to work
with the loan collection department.
Mr. Klett has over 20 years experi­
ence in the credit field. He was most
recently employed with Credithrift
of America, as branch manager in
their Rock Island office.

GOVERNOR Terry E. Branstad declared March 25, 1986 as National Association of Bank
Women Day. The NABW, with a national membership of 30,000, is the largest organization
of financial women in the world today providing programs in career development, manage­
ment skills, public affairs, and leadership training. As part of the day’s activities, the Cen­
tral Iowa Group of the NABW hosted a day at the State Capitol. The day was spent review­
ing the legislative process and discussing issues of importance to women and the finan­
cial community with the legislators. A reception for the legislators, NABW members and
guests, and financial community leaders was held in the evening at the Hotel Savery. Rep­
resenting the central Iowa group were, left: Vice Pres.—Colleen Monahan, v.p., Norwest
Bank; Treas.—Jo Page, cust. acct. superv., American Federal; Pres.— Pat Thompson,
a.v.p., Brenton Natl.; Public Aff. Chmn.— Brenda Hansel, asst. br. mgr., Hawkeye Capital,
and St. Public Aff. Chmn.—Christine Miller, 2nd v.p., Norwest Bank, all of Des Moines.

Promoted in Waterloo

announced the promotion of Allyn competition sponsored by the Inde­
R. Scott Fetner, president of The Jordan to a trust officer. Ms. Jordan pendent Bankers Association of
National Bank of Waterloo, has an­ joined the bank’s trust department America. The scholarship contest
nounced the pro­
in 1976.
honors the career of Howard Bell,
motion of Mary
retired executive director of the as­
B. B arnes to
commercial loan
Ms. B arnes
Farmers State Bk.
joined the bank
Promoted in Iowa City
Winners Named
in 1983 in the
Iowa State Bank and Trust Com­
Renee Meade of Central City, an pany, Iowa City, has announced the
training pro­
Anamosa High School student, has promotion of Patricia A. Harvey to
gram. She has
named winner of the $50 first the position of computer-services op­
prize in an essay competition spon­ erations officer. She has been with
completed the certified public ac­ sored by Farmers State Bank of the bank since 1975.
countant exam (CPA) and the certi­ Marion. The contest purpose is to in­
fied management accountant exam crease public awareness of locally
owned banks’ contribution to the
Second prize of $35 went to Doug­ RMA Ag Credit Analysis
Passes in Council Bluffs
las Boots of Marion and third prize Seminar, Chicago, June 2-5
Janice Peterson, auditor at First of $15 was awarded to Angie
A new Agricultural Credit Analy­
National Bank of Council Bluffs, has Bucklin of Cedar Rapids. The annual sis Seminar, sponsored by Robert
successfully passed the certified contest invites Linn County high Morris Associates, is designed to
public accountant exam. She has school seniors to submit short essays help lenders deal better with agri­
been with the bank since 1983.
on the community role of the inde­ cultural loans by developing a syste­
pendent bank.
matic process for evaluating the
Promoted in Iowa City
Entries submitted in the local loans.
Clark Houghton, president of contest are also being judged in a na­
Dates and location of the seminar
First National Bank, Iowa City, has tional $5,000 scholarship fund are June 2-5 in Chicago.
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1986


IBAA Seminars Scheduled
The Independent Bankers Asso­
ciation of America is presenting two
important seminars for IIB mem­
The Ag Lender I Workshop, a
two-day workshop conducted by
Roy Ferguson, a respected authority
on ag loan management, is designed
to cover all the basics of sound ag
lending. It will be held May 22-23 at
the Marriott Hotel in Omaha, Neb.
An advanced course for graduates of
the workshop will be held June 12-13
in Minneapolis.
A two-day workshop conducted
by Peat, Marwick and Mitchell, the
Bank Internal Auditing I Workshop
will cover the purposes, techniques
and control of internal auditing in
community banks. The workshop
will be held June 5-6 at the Marriott
Hotel in Des Moines, la., and July
21-22 at the Sheraton Inn in Madi­
son, Wis.
Other upcoming IBAA seminars
in the midwest include: June 9-10,
Asset/Liability Management Work­
shop, Radisson Metrodome, Minnea­
polis; June 11, In-House Computers
for Community Banks, Radisson
Metrodome, Minneapolis; and Sep­
tember 16-17, Commodity Mar­
keting Seminar, Holiday Inn Mart
Plaza, Chicago.

(Continued from page 45)

Purchase Agreements Signed

$49.4 million.
Specific purchases terms have not
been disclosed.

Promoted in Fairmount


Purchase agreements have been
State Bank, Fairmount,
signed for the sale of three First hasPeoples
announced the promotion of
Banks in North Dakota. The sales of Jeffrey L. Ellsworth from assistant
Cavalier, Park River and Valley City cashier to cashier. Mr. Ellsworth
banks are pending regulatory appro­ joined the bank in 1982.
Darold D. Johnson, president of
First Bank Cavalier and four other Correction!
bank directors will buy that bank.
Norwest Bank Bismarck, N.A.
Employees will be able to purchase a
inadvertently omitted from the #
percent of the ownership at later
Banks in North Dakota,”
dates. The bank had assets of $28.2
recently in North­
million at year-end.
bank should be
First Bank Park River, with
chart with
assets of $28.9 million, will be pur­
reported •
chased by bank President Gary W.
Paulson and a group composed of
eight directors and community rep­
resentatives and six employees.
Dennis H. White, president of Elected in Bismarck
First Bank Valley City, nine other
Richard “Dick” Brown has been
directors and community members elected as a director of First Bank
and 14 employees will buy that Bismarck. Mr. Brown is senior vice
bank, which had year-end assets of president/finance for Hedahl’s, Inc.

Geo-Thermal Heating Means Savings
For Peoples State Bank

MAY, 1986
ABN—LaSalle National Bank, Chicago ......................... 10
Advanced Resource Technologies, Inc............................ 27
American Data Technology, St. Paul............................. 41
American Express Travelers Cheques............................ 9
Austin, Douglas & Associates, Inc...................................26
Bankers Trust Co., Des Moines ...................................... 56
Central Bank, Denver................................................. 48-49
Colorado National B a n k................................................. 15
Commercial National Bank, P eoria................................ 28
Dawson Hail Insurance................................................... 12
Drovers Bank of Chicago............................................16-17
Federal Home Loan Mortgage Corporation................... 6-7
FirsTier Banks............................................................52-53
First Interstate Bank, Denver..........................................46
First Interstate Bank, Des Moines.................................. 67
First National Bank, Omaha........................................... 55
First Wisconsin, Milwaukee........................................36-37
Gross, Kirk Co., W aterloo............................................... 61
Hills Institute, T h e .......................................................... 11
Insurance Agents, Inc...................................................... 14
Iowa Bankers Insurance & Services................................ 63
Marquette Bank, Minneapolis ........................................35
Merchants National Bank, Cedar Rapids ...................... 2
National Bank of Commerce........................................... 50
National Bank of W aterloo............................................. 59
North Central Life Co., St. Paul........................................71
Norwest Corporation, Minneapolis................................ 72
Office Concepts, Ltd., Waterloo......................................64
Plus System, Inc., Denver.............................................. 3
Rothschild, Unterberg, Towbin, L.F................................. 5
Travelers Express Co., Minneapolis.................................13
United Missouri Bank, Kansas C ity ................................ 18
Valley National Bank, Des Moines.................................. 65

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

GEO-THERMAL heating in the new Peoples State Bank building in Fairmount, occupied

last winter, has provided a “ tremendous savings” for the bank, according to Kermit Rosendahl, Jr., bank pres. The cost of the new heating has been about one-fourth of last year’s
heating bills when the bank kept warm with an oil-fired furnace. Mr. Rosendahl said this •
new heating involves a closed loop system where heat is produced from the bank's water
which circulates through heat pumps rather than heating with cold air. The new brick struc­
ture is 60 ft. by 96 ft. and is located adjacent to the old bank building, which was built in the
early 1900s. The new bank has four teller stations, two rooms for deposit box customers, a
main vault and a storage vault, three offices and a directors room. Making up the rest of the
facility are an employee lounge, furnace room, garage space and extra storage space. A ®
drive-up teller window and night depository have also been built.

WeTake Care of the Paperwork...

So^bu Can Take Care offour Customers.



At North Central, years of experience working with
thousands of banks, have taught us the value of
simplicity. How to eliminate the hassles and
administrative red tape of most typical credit insurance
programs. And, how to free up the energies of your
bank’s loan officer for what they do best—banking.
We call our approach, “A BETTER WAT. And it
means just that.
It means generating profits—not problems.
It means installing a proven, loan-related insurance
program that can protect your e n tire k rm portfolio.
It means a computerized claims system that settles
your customers’ claims nearly 50% faster than the
industry average.

It means a “BETTER WW DESK” that puts solutions
to complicated rate calculations and approvals for
overlimit loan applications, just a quick, toll-free phone
call away.
It means training your loan officers and adminis­
trative people to make them more productive and
And it means that w e take care of the paperwork
so that y o u 're free to take care of your customers.
And that’s what banking’s all about. Right?
We don’t have the answer to headaches caused by
the common cold. But if you’re looking for a remedy
to headaches caused by the common credit insurance
program, call

“America’s #1 Credit Insurance Service Organization.”

North Central Life Insurance Company

In Minnesota Call 800-792-1030, all other states 800-328-9117.
Protection all ways
Federal Reserve Bank of St. Louis

W g

■ H


want a banking
partner who never
stops earning
your business.

) Even after we have it. That’s
w/7ai relationship banking

[ O 1 means to us. Building the kind
of closeness that earns your
A 1 1\ trust. That’s why we placed our
i 2 ’ Client Executives close to you.
To keep our ears tuned to your j
1 * " ^ needs, and give you what you
ask for. Even anticipate it
before you need it.
It may mean working a

§ ? few late nights. It definitely
means not taking your busi­
ness for granted. And, it
means using all the resources
of Norwest for your benefit.
That’s what we mean by
I relationship banking. If you
F use our financial institutions
m \
r services, you already know
what we’re talking about. If you m
don’t yet, you will definitely
want to try us. Welcome a call
m \ ' \ |A|
from your Client Executive
m \ h\ ^
very soon.
M ;

Financial Institutions Groui

Members FDIC
Federal Reserve Bank of St. Louis