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MAY 1986 Lobby Theater A ids H igh-Tech M arketing CONVENTION PROGRAMS • Illinois if® • M in n esota • North D akota • C olorado • The Case of the Defendant Director—Part II • Gain Customer Confidence with Conveniences https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Meet Dick Retz, MNB Correspondent Banker. Meet Dick Retz, farmer. As an MNB Correspondent Banker, Dick brings over 13 years' experience in agricultural finance counseling, ag lending and farm management to his work. As a farmer he understands, first hand, what your agricultural customers are up against and the kind of financing they need to achieve their goals. MNB and its respondent banks are located in some of the country's most productive farmland. And because agriculture plays such a vital role in the economy, we've developed a special commitment toward agricultural financing. So when you have farm customers who need to restructure short term debt into long term, need cash-flow financing, machinery loans or cash to purchase additional land, talk to someone who knows about banking and finance. Call Dick Retz at MNB. Dial 319/398-4320 or tollfree, 1-800-332-5991. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Merchants National Bank isi C e d ar Rapids, Iow a 52401 Member F.D.I C. A BANKS OF IOWA BANK Plus System' convenience. It does make a difference. >A '« P lu s ^ System There’s a world of difference. https://fraser.stlouisfed.org 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. 4 NOttfflWESTERN MAY 1986 • 93rd Year • No. 1472 MEMBER OF AUDIT BUREAU OF CIRCULATION MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES ON THE COVER 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. FEATURES 19 Case of defendant director— Part II Attorneys relate “ Legal Defenses Available to Director” 22 Lobby theater Bank of Norfolk, Nebr., features high-tech marketing 26 Gain customer confidence Ross Schoonover says customer convenience is important CONVENTIONS 29 Illinois Program 34 Minnesota Program 44 North Dakota Program 47 Colorado Program DEPARTMENTS 6 32 33 40 Convention Calendar Wisconsin South Dakota Twin Cities 43 45 51 54 57 66 70 Montana Wyoming Nebraska Omaha Iowa Des Moines Index of Advertisers NORTHWESTERN BANKER 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. https://fraser.stlouisfed.org 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 bank. Other board approved promotions include: 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 division. Mark Borserine to assistant in vestment operations officer. Jerry W. Harper to assistant cashier, installment loan division, primarily responsible for loan ap proval. Joins BarclaysAmerican Allan Wolfmeyer has been pro moted to region vice president and managing appraiser in the central group of BarclaysAmerican/Business Credit, Inc. t % 5 BOND SERVICE vs. BANK SERVICE ' 9 9 9 9 i Chances are, your bank has been exposed more than once to “bond service.” It’s transaction-oriented service from people who know bonds, not banks. So the advice you get too often goes no further than offerings and oc casional bids. Bond service is not what L. F. Rothschild, Unterberg, Towbin provides. Our specialty is BANK SERVICE.® Over 25 years of service that combines intimate knowledge of bonds with in-depth understanding of banks. BANK SERVICE views your portfolio in the same light as you do: As a crucial com ponent of your bank’s overall position. Not as an independent entity. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis That’s why before we make a recommendation we conduct a thorough study of your bank. Then our BANK SERVICE committee meets to discuss the Bank Report we’ve prepared specifically for you. The recommendations from the committee are tailored to your bank’s present position and future objectives in a chang ing marketplace. Our PMS system can help you monitor and manage your portfolio. We’ll introduce you to our Fixed Income Com puter Service, our investment banking group, our fixed income research, send you our news letter and invite you to appro priate seminars that we host in your area. All these services are de signed for one goal: To help you achieve your bank’s overall aims in a way no mere bond service can. So, while you may be get ting bond service, what you real ly need is BANK SERVICE. Call Stephen H. Kovacs, Managing Director, at (212) 412-2600. IEI L. F. ROTHSCHILD, UNTERBERG,TOWBIN, INC. BANK SERVICE® Northwestern Banker, May, 1986 6 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 T 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 Rochester. 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 Malarkey. Northwestern Banker, May, 1986 https://fraser.stlouisfed.org 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 software.” 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 (404)438-3800 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 ■S3] QJ fUj] THE GNOM ES 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ©1986, FHLMC Freddie Mac Owned by A merica’s Savings Institutions 8 Convention Calendar J 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 1986 May 18-21 — BAI Bank Tax Conference, New Orleans, La. May 25-30—BMA Essentials of Bank Mar keting School, University of Colorado, Boulder. May 25-June 6—BMA School of Trust and Personal Financial Services Sales and Marketing, University of Colorado, Boul der. 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, Newark. June 16-20—BAI Asset/LiabiIity and Finan cial Management, Chicago. June 22-27—BMA School of Bank Market ing Colloquium, University of Colorado, Boulder. 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, Northwestern Banker, May, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Colorado: May 14-15—CBA Investment & Funds Man agement Seminar, Denver. May 15-17—NABW State Conference, Estes Park. June 4-7—CBA Annual Convention, Broad moor Hotel, Colorado Springs. Aug. 3-10—Graduate School of Banking, Uni versity of Colorado, Boulder. Illinois: 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, ISU-Normal. 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. Iowa: May 19—IBA Group 5 Meeting, Council Bluffs. 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 TBA. 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, Minneapolis. 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. Montana: 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, Kalispell. Nebraska: May 15-17—NBA 89th Annual Convention, Red Lion Inn, Omaha. May 22-23—IBAA Ag Lender I Workshop, Omaha. 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 Forks. 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 City. Sept. 18—SDBA Group III Meeting, Holiday Inn, Mitchell. Sept. 19—SDBA Group I Meeting, Holiday Inn City Centre, Sioux Falls. Wisconsin: 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. Minnesota: 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 Wyoming: Center, Minneapolis. June 2-4—MBA 96th Annual Convention, June 15-17—WBA Annual Convention, Jackson Lake Lodge, Moran. Radisson St. Paul Hotel. 9 A strange coincidence. 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. https://fraser.stlouisfed.org 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. Travelers Cheques © 1986 American Express Travel Related Services Company, Inc. Northwestern Banker, May, 1986 10 Unbeatable Support. 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 investigating. 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 ABN O LASALLE 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 https://fraser.stlouisfed.org 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 institutions. 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. 11 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 extraordinary. 2 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. https://fraser.stlouisfed.org 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. 3 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: 1-800/527-3194. 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 512/476-6804 Northwestern Banker, May, 1986 12 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 capital. 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 dustry. 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 - - - - https://fraser.stlouisfed.org Northwestern Banker, May, 1986 Federal Reserve Bank of St. Louis m \ HAIL ° ° ° INSURANCE _vVA 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 added. 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. t : 13 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, 1-800-328-5678. ^Travelers Express A GREYHOUND https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r oCOMPANY MPAMY ■ Northwestern Banker, May, 1986 14 BMA Announces Convention Speakers ENIOR execs from high per forming companies will be S 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 SPECIALIST! BANK PROPERTY and CASUALTY INSURANCE MARKETS FOR ALL BANKS! CALL TO LL F R E E T O D A Y 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 C\ INSURANCE AGENTS INCORPORATED A https://fraser.stlouisfed.org 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 Division. 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. 15 I t’s impressive. So m any services from a regional correspondent 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 customers. Our regional emphasis means an active call program. You can depend on knowledgeable, responsive service to complement our innovative array o f products. Call our Correspondent Banking Department at 303-893-1862. See w hy w e ’ve been the regional correspondent since 1871. f S E I COLORADO NATIONAL BANK I W | OF DENVER We make big ideas happen. 17th and Champa, Denver, Colorado 80202 303-893-1862 : © 1985 Colorado National Bankshares, Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC Northwestern Banker, May, 1986 16 AIB Will Meet in Boston, June 28-July 2 ORE than 900 banking educa M 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 mittee. 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 needs. 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 year. 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 zone. 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 consin. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Continental Settles Class Action Suit ONTINENTAL Illinois Corpo ration, Chicago, announced C 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 sults. 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 customers. 17 (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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of Chicago 47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000 MEMBER OF THE FEDERAL RESERVE SYSTEM AND ED.I.C. A Cole-Taylor Bank Profit from craftsmen. 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. lb UNITED MISSOURI BANK of Kansas City, n.a. Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P.0. Box 226 Kansas City, Missouri 64141 (8l6) 556-7900 19 The Case of the Defendant Director: Part II Legal defenses available to the director Written especially for by FRANK J. CARROLL and DAVID S. STRUTT 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 T 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. PART II LEGAL DEFENSES AVAILABLE TO THE DIRECTOR S NOTED in the first article in this series, liability A 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- https://fraser.stlouisfed.org 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 20 “Perhaps the most important guideline for any director to follow is to attend all board meetings.” 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 lated. Guidelines (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 circumstance. 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 tors”: Northwestern Banker, May, 1986 https://fraser.stlouisfed.org 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- # # • • • £ £ £ £ ^ ^ ^ £ # ® 21 • “The most important responsibility of the director may be to appoint competent and capable officers...then conscientious ly review the performance of such officers.” ® ® ^ * || || II €1 €1 ® ® ^ 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. https://fraser.stlouisfed.org 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 ties. □ 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 members. 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 22 FINANCIAL CEN TER TH EA T R E’ SHO W ING DAILY AT 12 0 0 * »■ IRA : BENEFITS TODAY 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 RAYMOND G. TIEDJE, President 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- https://fraser.stlouisfed.org 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- £ £ 0 0 23 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 Nebraska. 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 cept. “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 circumstances.” 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 intermediary. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1986 24 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 officer. 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 https://fraser.stlouisfed.org 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 function.” 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 floor. 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 25 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 employees.” 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 customer. 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 https://fraser.stlouisfed.org 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 departments.” 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 26 Gain customer confidence with customer conveniences T IS IMPORTANT that banks Icessful 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 By ROSS SCHOONOVER 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. EXPERTS NEGOTIATIONS AND SA LE S 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 ) 577-4570 DAA DOUGLAS AUSTIN AND ASSOCIATES, INC. 5105 Tollview Drive • Rolling Meadows, IL 60008 • Lansing • Toledo Northwestern Banker, May, 1986 https://fraser.stlouisfed.org 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 mer. Customer confidence can be achieved by installing customer con veniences and by presenting a successful image. □ LOBBY THEATER... (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 estates. 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! □ 27 0 ® ® ^ ^ ^ • ^ 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 KIOSKS, SURROUNDS and MINI BRANCH BANKS. 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 Guffey. 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. • £ ij|t ci 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 Lewton. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATE-OF-THE-ART HARDWARE DESERVES STATE-OF-THE-ART SOFTWARE • PLATFORM MANAGEMENT SYSTEM • TELLER MANAGEMENT SYSTEM • COMPARATIVE RATING SYSTEM • COMMUNITY BANKING SYSTEM ADVANCED RESOURCE TECHNOLOGIES, INC. 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 28 CASH LETTER PROCESSING... 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 Name. (please print) Bank _________ Foreign checks deposited _________ Wire transfers _________ Return items _________ Statements _________ Coupons _________ Average Cash Letter 5___________ aB Signed. Address. City . State. Zip. 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 COMMERCIAL BANKING DIVISION 301 S.W. Adams • Peoria, Illinois 61631 Phone: (309) 655-5489 WATS LINE 1-800-322-2212 Northwestern Banker, May, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20-234PR "Open The Doors To New Horizons For Banking" G. THOMAS ANDES President CHARLES E. WATERMAN WILLIAM J. HOCTER Vice-President Exec. Vice Pres. 1986 Annual Illinois Bankers Association Convention June 11-13 Adam’s Mark Hotel, St. Louis, Mo. HARLAN K. YATES JOHN W. LUTTRELL Secretary Treasurer T. LOUIS, MO. is the site chosen for this year’s Il S 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: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wednesday, June 11 A.M. 9:30 10:30 P.M. Noon7:00 Noon 1:00 12:45 1:30 3:15 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 30 Illinois News 5:30- Complimentary welcoming reception 7:00 7:30 Baseball game—National League Champ Cardinals vs Montreal Expos Thursday, June 12 A.M. 8:00 Registration opens. Complimentary regional breakfasts 9:00 First general session W hat’s Ahead for the Economy—Louis Rukeyser. 10:30- Exhibits open 4:00 11:00 Cash bar reception—Exhibit area. Cash lun cheon buffet—prize drawings 11:30 Special reception with Louis Rukeyser. (By in vitation only) P.M. 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 A.M. 8:00 Registration open. Continental breakfast— Exhibit area. 8:00- Exhibits open Noon 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 ing. P.M. Noon Convention luncheon Alliance Between State Associations and the ABA - The Benefits to Illinois Banks—Donald Ogilvie 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 T 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. Chicago 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 Milwaukee 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 https://fraser.stlouisfed.org 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. 0 £ 0 0 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 poration. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31 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 of 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 quisitions. Bank. First Illinois Corporation and * * * First Burlington Corporation have Patrick J. Carmody has been entered into a definitive agreement named vice president of Ford City providing for the acquisition by the company of all of the outstanding Bank and Trust a capital stock of First Burlington C om pany, member of the 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 stockholders. c o n su lta n t to P J- CARMODY 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 sibilities. * * * Jeffrey L. Conner has joined Norwest National Bank of Chicago as senior vice president and senior loan officer. 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. CHICAGO NEWS... (Turn to page 42, please) Northwestern Banker, May, 1986 32 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 https://fraser.stlouisfed.org 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, Milwaukee. Added in Brown Deer Continuing as council members Brian Casper has joined Capital are: Harry B. Conlon, Jr., president, One Corporation/Brown Deer Bank, Associated Banc-Corp, Green Bay; Brown 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 bank. dent, State Bank of Medford. The bank has B. CASPER 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 president of Drake Associates, Inc.; Ronald E. F&M Bank, Hanbury, vice president/operations, Menomonee Capital One Corp./Brown Deer Falls. Richard P. Bank; Michael R. Klemz and Rich Klug, who was ard F. Laabs, senior vice president, 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. ald M. Rosen, D.V.M., veterinarian M r. El to n , and owner, Park Pet Hospital, Mil who was execu waukee. 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 closed. 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. began his career burg, and Sydney Johnson. Mr. Mol R. DUNCAN 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. D. DAUGAARD 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 years. 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 Falls. Inn. 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 1985. 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 $74,321,000 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1986 34 CLINTON D. KURTZ President ROY W. TERWILLIGER JAMES R. JORSTAD 1st Vice President 2nd Vice President 96th Annual Minnesota Bankers Association Convention June 2-4 Radisson St. Paul Hotel TRUMAN JEFFERS Exec. Vice Pres. HE Minnesota Bankers Association will hold its T 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SCOTT JONES Treasurer 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 luncheon. 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 A.M. 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 tomorrow. Technologies and services change, but our attitude hasn’t. Because Marquette Bank Minneapolis will never put aside our oldest promise to our customers: professional service with a personal difference. Marquette Bank Minneapolis Member FDIC Correspondent Services Division https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CUU W E 1 SUCCESS. 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 WHENPERFORMANCECOUNTS™ FIRST WISCONSIN ©FWC 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 38 9:00 P.M. 1:00 1:00 2:303:45 4:005:15 6:30- Minnesota News Course. 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 Corporation. Tuesday, June 3 A.M. 7:30 8:00 9:00 9:00 9:3011:30 P.M. Noon Registration desk open Fellowship Breakfast Exhibits open. Spouse’s hospitality center open. General Session Luncheons. • Delegates • Pioneer and past officers • Spouses 2:00- Special interest sessions-repeated from Mon day. 3:15 3:30- Special interest sessions-repeated from Mon day. 4:45 5:15- All convention reception-hosted by MBA members and associates. 6:15 6:30 Annual banquet Presiding: MBA President Clinton D. Kurtz. Featuring: installation of 1986-87 officers and board. Wednesday, June 4 A.M. 8:00 Registration desk open 9:00- General session 11:30 11:30 President’s reception P.M. 12:15 President’s luncheon. 2:30 Convention adjournment. ciation. 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 ceived 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 in 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 J C- MULDER 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 Milwaukee. Northwestern Banker, May, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis quire Niskern Agency, Inc. in St. Cloud. 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 D.L. BRADY 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 officer. 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 cer. personal department. Mr. Novitzki In addition to this promotion, the began a t the Bremer Financial Services Corpora bank in 1983 as NOVITZKI tion, of which First American Bank management 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 ation. J. BLACKBURN 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 gram. 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. B. KENNEDY 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. lag Holle has been with First Bank System for four years and most \ ^ ; recently held a \ position as a re J.D. HOLLE gional credit spe cialist. He was previously a commis sioned national bank examiner with the OCC. * * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 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 1977. Ms. Simpson replaces Carla Kil patrick, who recently announced her resignation and plans to move to Florida. 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 Production Credit AssociaA.E. PATTEN tion. 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 40 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 Greece. * * * 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 office. * * * St. Anthony Park State Bank in St. Paul has recently announced the following 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 S. FILLHOUER 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. wholesale/retail 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. group. Ms. Fillhouer gained prior bank Mr. K oppa, ing experience at First American who has been R S- K0PPA president and managing officer of Bank in Redwood Falls. Northwestern Banker, May, 1986 https://fraser.stlouisfed.org 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 Paul. H.E. GOLDSTEEN £ 0 0 W. McROSTIE 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 • ® ® 41 How ADT became the largest processor of independent banks in the area 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 that we always keep them current with new banking technology and regulations. They enjoy reliable reporting and the prompt, personal attention of their own ADT customer service representative. Each month, they get to tell us what we’re doing right or how we can make improvements. And in the end, they know that their total data processing costs with ADT are lower than other DP alternatives. 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. AMERICAN ■ \ yv 1/ \ 1---- ' 1 ' «" a I / \ ' Subsidiary of American National Bank of St. Paul TECHNOLOGY Largest processor of independent banks in the 9th Federal Reserve District Y https://fraser.stlouisfed.org 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 J Northwestern Banker, May, 1986 42 Minnesota News assistant vice president in real estate. 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 1985. * * * American National Bank of Saint Paul has announced that Sabina Sten, vice presi dent, has been p ro m o te d to manager of the executive and professional de partment. M s. S ten joined the bank in 1984 as vice president in the S. STEN 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 Minneapolis. Dean Cadry and Richard Goiffon have joined the commercial banking department as assistant vice presi dents. 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. m 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. * * * ^ CHICAGO NEWS... (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 R.M. DELANEY 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. bery to vice president and cashier at Dr. Walter W. Heller, Regents the Community 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 https://fraser.stlouisfed.org 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 audit. * * * ^ 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. f ^ ^ ^ tural department. In 1973, he left his position as vice president to ful fill a dream of becoming a full-time rancher. 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 president. 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. https://fraser.stlouisfed.org 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 44 North DaKota BanKing. WILLIAM M. SANGER President Togethen. We're Building a B etter Tom orrow HARVEY HUBER Pres.—Elect 1986 Annual HARRY J. ARGUE Exec. Director North Dakota Bankers Association Convention JOHN PIERSON V.P./Treasurer June 9-10 Holiday Inn, Fargo ITH “Together...We’re Building A Better Tomor W 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 A.M. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P.M. 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 A.M. 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 Fargo. • “Why You Are the Way You Are’’—Dr. Kevin Leman, Christian Psychologist, Tucson, Arizona. 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 awards. • Recognition of NDBA past presidents. 9:50 “The Nation’s Economy - Where Are We Go- North Dakota News A. LINKLETTER DR. K. LEMAN 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 ments. • 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. P.M. 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, Fargo. 2:00 2:15 3:15 3:30 4:30 7:00 8:00 M.W. OLSON 45 I.R. LEVINE • 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, MN. Address—William M. Isaac, president, The Secura Group, Washington, D.C. Break “Let’s Push the Wheelbarrow Right Side Up” —Orion Samuelson, farm service director, WGN Radio and TV, Chicago, IL. Recess Reception—Pool/Patio. 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. □ NORTH DAKOTA NEWS... (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. ® 4|. • 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. executive 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1986 46 If we're not your correspondent 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 products. 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 pricing. A proven commitment to extending credit Northwestern Banker, May, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Participations that offer flexibility and fast turnarounds. Investment products and expertise from the region’s leading investment department. International services that offer access to First Interstate's worldwide network. 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 customers. 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. O first Interstate Bank F irst In terstate Bank of Denver 633 Seventeenth Street, Denver, Colorado 80270 M em ber FDIC ROYCE B. CLARK President A.J. “TONY” ANDERSON Vice President 85th AiinilSl DON A. CHILDEARS 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 T Broadmoor Hotel in Colorado Springs. “Bankers: • # • _ • ^ A W ^ 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 A.M. 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. P.M. 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: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2:00- 2:00- 3:30- 3:30- • 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. Koon • 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 board. 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 48 Colorado News review of your legal liability regarding alcoholrelated injuries and your guests. 4:45 Adjournment. Saturday, June 7 A.M. 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 presiding. “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. □ presidents. 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 T 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. Denver 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 https://fraser.stlouisfed.org 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. 49 most recently as vice president and manager of marketing and new ac counts. 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 cer. 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 agers. 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 wood. 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. tions. 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. We ve earned a reputation of integrity and stability. And our philosoaprhy is to deliver superior services in a responsive andd titimely manner When you call, ask for me, Bill Tumelty. And let’s tal Better Correspondent Banking. T he B e tte r Banket Central Bank Denver https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1515 Arapahoe Street Denver, Colorado 80292 303-893-3456 Member FDIC 50 K eep in g banks efficien t 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 CSC offers a com plete line of processing services for banks of all sizes. This includes on-line and ATM support, a p p lic a tio n sy stem s, and fin a n c ia l planning packages. You can rely on the know ledgeable staff of CSC to provide the kind of service and back-up th at you need in today’s fastm oving banking environm ent. E sta b lish ed C om pany CSC also m anages data processing costs w ith a v ariety of product delivery 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 support are provided through six com puter c e n te rs s tr a te g ic a lly lo c a te d in L in c o ln , G rand Island, N orth Platte, Scottsbluff and Norfolk, N ebraska; and 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 processing services in N ebraska. An active expansion policy has opened up new m arkets in Colorado, K ansas and Wyoming. 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 bankers are already fam iliar with. They are responsive to banker’s needs, and have the expertise and the back-up to keep banks efficient. ■ If you’d like a CSC r e p r e s e n t a t i v e to c o n ta c t y o u fo r a com prehensive a n al y s i s of y o u r d a ta processing needs, call 1-800-245-3103 in Colo rado. In N ebraska, call 1-800-742-7633. NBC C om puter S e r v ic e s C orporation P.O. B ox 82408 L incoln, N eb rask a 68501 N B C /C SC is a w h o lly ow ned su b sid ia ry of N a tio n al B ank of C om m erce a Northwestern Banker, May, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis iilF ir s t C o m m e r c e bank. • ® 51 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 manager. 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 on March 15. Mr. B ednar was formerly a vice president in the commercial loan department and has been SJ‘ BEDNAR 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. https://fraser.stlouisfed.org 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 month. 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 21-26. Northwestern Banker, May, 1986 Firslier Correspondents O ur N ew Nam e Speaks For Its e lf. So Does Our History. https://fraser.stlouisfed.org 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. FirsTierBank FirsTierBank Omaha Lincoln 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Charles Greenway Assistant Vice President Firslier Bank, N.A., Omaha and Firslier Bank, N.A., Lincoln, Members FDIC 54 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. maha R.E. BILLMEYER 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 P.M. COYLE 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1986. “To our knowledge, this is the on ly fully integrated database loan product on the market today...” said Jim Senter, First of Omaha vice president. 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 bilities. 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.” R.J. BROWN 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. Stockwell. * * * 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 Nebraska, J.E. TRECEK Omaha, with a BA degree and received his J.D. from the University of Nebraska, Lincoln. 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. + • 55 A The Anchormen. Change comes fast in today’s banking — so fast you need an anchor of stability and dependability. Meet the anchormen — the experienced, professional corre spondent bankers of First National Bank of Omaha. The more things change, the stronger is their commitment to dependably and consistently Call them toll-free — in meeting all your correspondent Nebraska 1-800-642-9907; outside banking needs. Nebraska, 1-800-228-9533. And the faster things change, the faster the anchormen respond — with the latest financial technology at their fingertips and the historic financial strength of First National of 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1986 56 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. I • • Call us for a complete range of correspondent banking services. TRUST SERVICES COMMERCIAL Investment Management Individual/Corporate Services Loans Bank Acquisition Loans Overlines & Participations INTERNATIONAL BANKING Full line of International Services INVESTMENTS Bonds Fed Funds CDs OPERATIONS 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BankersTrust • Member FDIC 57 consumer lending functions. He has been associated with the bank for the past six years and served as cashier. Mr. Allison also announced the appointment of Dwight Hughes, Jr. to the banks board. Mr. Hughes is president of Dwight Hughes Nur sery. 0 • • • • ® ® 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 bank. 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 Location Savings Bank in Date Group Council Bluffs Sergeant Bluff. May 19 5 Fort Dodge Mr. McGinnis May 20 2 r . McG in n is Okoboji has over 13 years May 21 12 Clear Lake banking experience and for the past May 22 3 three-and-one-half years has served as vice president and director of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1986 58 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 By MELINDA SAUERS 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- T Northwestern Banker, May, 1986 https://fraser.stlouisfed.org 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 mers. 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 1987-88. 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 compete. 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 £ # # • ® t ® ^ % • • • _ ® £ £ 59 FLEX-0-PAY an important new profit center for your bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The unique Flex-O-Pay» computerized billing system was developed to solve one of the current problems faced by many bankers. How do you generate additional income from your present staff and equipment? This simple, flexible plan is easy to operate, yet it can become one of your most important profit centers. This is a computerized local billing/credit service that provides a consistent source of cash flow for your local business customers. You generate income for your bank through the discount on receivables. And you profit by the finance charges on accounts with balances that have been billed over 30 days. For complete information, call Toll FREE anywhere in Iowa . . . 1 800 772-2411 or call collect outside Iowa at 319-291-5415. Ask for LeRoy Bell or write The National Bank of Waterloo, RO. Box 90, Waterloo, IA 50704. - - Northwestern Banker, May, 1986 60 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 banks. □ Five Named in Dubuque Lynn B. Fuller has been named executive vice president and chief operating officer at 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 bank. K.J. ERICKSON 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 https://fraser.stlouisfed.org 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 friend.” 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. q £ % % Three Named in Sioux City First National Bank in Sioux City S. OSWALD R.J. KEHL 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 responsible for 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 P.E. KUCHEL 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 dustry. Scholarship recipients will be chosen by the Iowa School of Bank ing Advisory Board of which Mr. J. SCHAFER S. VOLK 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. 61 When You Build Or Remodel Your Bank, Who Really Benefits? □ Your Local Excavator O ' Your Local Lumber Yard IPf Your Local Concrete Supplier □ Your Local Carpet Store B Your Local M ason 0 Your Local Hardware Store [PfYbur Locai Electrician O Your Local Motels 0*Y our Local Plum ber O Your Local Restaurants |P f Your Local Heating Supplier 0®Ybur Local Drapery Shops 0 * Your Local Paint Store O Your Local Appliance Store 0 Your Local Painter ¡ETYour Local Landscaper 0 Your Local Roofer [P fro u r Local Newspaper (£f Your Local Air Conditioning Company The Kirk Gross Company uses local contractors and suppliers whenever possible. But they’re not the only people who benefit. U YOU DO, TOO! 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1986 62 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 By and 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 ners. 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 O the Iowa Bankers Association’s p p o r t u n it ie s Northwestern Banker, May, 1986 https://fraser.stlouisfed.org 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 goals.’’ 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 nicate.’’ 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 cluded. 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 • Newspaper Bank Size $1 — $30MM First Place — Treynor State Bank, Treynor Merit Award — West Chester Savings Bank, West Chester. Bank Size $30 — $60MM £ 63 Whenacustomerdies, hisbiggestlegacyshouldn't bealoanbalance. % * -¡ipSÉlK ■ #?<?.;, ■fcSw&BL ä ä f e - Ä ’w ^ • •• . . :■ ' ' ili|iS*IÄ ^B ® Ä illB l the time, and his family verything. Including S a n balance, hit you can prevent that from happening to your customers. W ith IBIS creditor protection insurance. We have a full line of plans to choose from. One that offers a complete excess program, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis as well as uncomplicated coverage for the complex agri business world. It’s also insurance that, like our company, is designed by Iowa bankers to help Iowa bankers. So it comes with benefits for you, too. Like a fully com puterized claim system, sales and product seminars plus life and credit life licensing schools. W ant to know more? For complete IBIS creditor pro tection insurance details, call 1-800-532-1423 toll-free.Today. IowaBankers Insurance& Serviceable. Northwestern Banker, May, 1986 64 Iowa News First Place — Iowa Trust & Savings Bank, Emmetsburg. 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 shalltown. 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. Institutional Bank Size $1 —$30MM First Place — Security National Bank, Jef ferson. 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 Valley. Bank Size $30 — $60MM First Place — Peoples Trust & Savings Bank, Indianola. Literature Bank Size $1 — $30MM Merit Award — First Interstate Bank of Kalona, Kalona. Bank Size $30 —$60MM Merit Award — Hampton State Bank, Hampton. Bank Size $60 — $100MM First Place — Iowa Trust & Savings Bank, Centerville. 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, Clinton. Bank Size $60 —$100MM First Place — Mahaska State Bank, Oskaloosa. Committed to making your bank stand apart from the Northwestern Banker, May, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Point-of-Purchase 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. Television Bank Size — $1MM & Above First Place — Security National Bank, Sioux City. Merit Award — Northwest Bank & Trust Company, Davenport. Radio 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, Minneapolis. 65 ^ IBA Reorganizes Staff The Iowa Bankers Association’s board has approved the reorganiza tion of IBA’s vice president posi tions. # 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 W. EHRECKE 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 J. SORENSEN M.F. McCARTY 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 departments. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trust, confidence, loyalty ... words our customers use to describe how they feel toward Valley National Bank. Valley Bank is experiencing substantial growth ... in deposits, ...loans, 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 A “BANKS OF IOWA” BANK For Professional Correspondent Service call 1-800-622-7262 Northwestern Banker, May, 1986 66 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 M. 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, Minn. * * * Torgler to assis tant vice president/loan admin istration. 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 A. TORGLER 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 1990 G ran d Avenue in West Des Moines. Ms. Bollen- L. BOLLENBAUGH 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. John Chrystal, 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 years. 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 https://fraser.stlouisfed.org 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 M.L. BAKER 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 needs. 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. * * * Correction! 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. 67 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. Q https://fraser.stlouisfed.org 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 1-800-362-1615 Ext. 7029 Northwestern Banker, May, 1986 68 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 J. SCHMIDT E. JEWELL • 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. R.S. DE WAAY J.J. KLOSS Mr. Kolbe has dent. been 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 B M' K0LBE 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 City. 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. https://fraser.stlouisfed.org 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. 69 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 sociation. commercial loan officer. Ms. B arnes Farmers State Bk. joined the bank Promoted in Iowa City Award Winners Named in 1983 in the Iowa State Bank and Trust Com management 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 been named winner of the $50 first the position of computer-services op M.B. BARNES prize in an essay competition spon erations officer. She has been with successfully 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 (CMA). owned banks’ contribution to the community. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, May, 1986 70 IBAA Seminars Scheduled The Independent Bankers Asso ciation of America is presenting two important seminars for IIB mem bers. 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. NORTH DAKOTA NEWS... (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. £ val. 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 was inadvertently omitted from the # percent of the ownership at later “Largest Banks in North Dakota,” dates. The bank had assets of $28.2 chart published recently in North million at year-end. western Banker. The bank should be First Bank Park River, with listed 6th place in the chart with assets of $28.9 million, will be pur total deposits of $148,604 reported • chased by bank President Gary W. in 1985 and deposits of $140,888 in Paulson and a group composed of 1984. 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 INDEX OF ADVERTISERS 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 https://fraser.stlouisfed.org 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 professional. 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 NORTH CENTRAL LIFE TOWER, 445 MINNESOTA STREET, BOX 64139, ST. PAUL, MN 55164 In Minnesota Call 800-792-1030, all other states 800-328-9117. Protection all ways https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W g \,sw'T ■ H 11 ^ Relationship Becaus 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. f To keep our ears tuned to your j 1 * " ^ needs, and give you what you 3A ask for. Even anticipate it \i before you need it. | It may mean working a § ? few late nights. It definitely S 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 Ê Ê^Ê F use our financial institutions m \ r services, you already know m what we’re talking about. If you m don’t yet, you will definitely m want to try us. Welcome a call m \ ' \ |A| from your Client Executive m \ h\ ^ very soon. M ; Financial Institutions Groui Members FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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