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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis


S ystem



MAY 1987


94th year


No. 1484


GIVING direction to the Independent Bankers Association of America during the
1987-88 association year will be these five officers, left to right: Chmn.—Charles
T. Doyle, CEO, Gulf National Bank, Texas City, Tex.; Pres.—Thomas H. Olson,
pres., Lisco State Bank, Lisco, Nebr.; Pres.-Elect—J.R. Nunn, pres., Citizens
Bank, Tucumcari, N.M.; Vice Pres.—0 . Jay Tomson, chmn., Citizens National
Bank, Charles City, la., and Exec. Vice Pres.— Kenneth A. Guenther, head of the
Washington, D.C., headquarters staff. Not pictured is Merle L. Graser, chairman/CEO, First National Bank, Venice, Fla., now serving a second year as IBAA
treasurer. Story starts on page 16.



Strategic planning

Dr. Douglas V. Austin starts his new, monthly column


Pioneer ethic is alive

A visit with the new president of the IBAA


Community bankers interview

Part II of exclusive interview with community bank leaders


Minnesota pilot project

Minnesota Bankers Assn, backs development in Atwater


Named Senior Vice President#
At Mosler Inc., Hamilton
R.F. Murphy, president, Mosler,
Inc., Hamilton, Ohio, has announced
the promotion of
A .M . (S te v e )
Marzano to se­
nior vice presi­
dent. In this as­
signment, Mr.
Marzano is re­
s p o n s ib le fo r
sales of Mosler
products to do­
mestic financial
institutions as
well as installation and service for
d om estic financial in stitu tio n
systems and products, commercial
systems and products and third q
party ventures including currency
handling. In addition, during
periods when Mr. Murphy is not
available, Mr. Marzano will carry
out all functions and responsibilities £
of the president’s office. Prior to this
promotion, Mr. Marzano was vice
president, sales, installation and ser­
vice for Mosler.
A 21-year Mosler veteran, M r .#
Marzano has also served as vice
president and general manager of
the Mosler electronic systems divi­
sion in Wayne, New Jersey and the
vice president, business planning,#
marketing and international posi­

Nebraska president looks back

Kelly Holthus reviews his year as state president


Illinois Program
You Will See Them at
Illinois Convention
Minnesota Program

40 You Will See Them at 53 Nebraska Program
Minnesota Convention 54 You Will See Them
49 Colorado Program
Nebraska Convent
50 You Will See Them at 59 Executive Council
Colorado Convention
Report Upswing


Twin Cities
South Dakota


Des Moines
Index of Advertisers

1535 Linden S treet, S uite 201, Des M oines, Iow a 50309

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor

Ben Haller, Jr.

Robert Cronin

Diane Nelson

No. 1484 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$2.00 per copy. $24 per year. Second Class postage paid at Des Moines, Iowa. POST­
M A STER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.

Banker, May, 1987
Federal Reserve Bank of St. Louis

Chicago Fed Booklet
Explains Currency Values
Consumers can learn more about
what determines the value of t h e #
dollar in foreign exchange markets
and, in today’s more global eco­
nomy, how the dollar’s value affects
their pocketbooks in a new publica­
tion from the Federal Reserve B a n k #
of Chicago, titled “ Strong Dollar,
Weak Dollar.’ ’
The Chicago Fed booklet exam­
ines how the dollar’s value relates to
other countries’ currencies, and h o w #
changes in the dollar’s value affects
foreign trade and the U.S. economy.
The publication also elaborates on
the positive and negative aspects of
both a stronger and a weaker dollar. #
The 12-page booklet is available
at no charge. To obtain a copy, call
or write the Federal Reserve Bank of
Chicago, Public Information Center,
230 S. LaSalle St., Chicago, I L ^
60690, (312) 322-5111.


First Bankers Securities
Federal Reserve Bank of St. Louis

200 Brick & Tile Building • Mason City, Iowa 50401
Toll Free - (800) 952-7899 • In Iowa - (800) 325-3030

keeps us first
Allen Flitcraft
President and C.E.O.
Trans Union
Credit Information Co.
Federal Reserve Bank of St. Louis

The stakes are too high
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Ask C.E.O. Allen Flitcraft how Trans Union
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"By talking to our customers . . . and
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"Credit grantors tell us the importance they
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most sophisticated computer system in the
They expressed concern about the threat of
credit card fraud. So we developed an
exclusive one-two fraud detection system,
TRANS ALERT and HAWK, to keep
potential frauds off the books.
When credit grantors, collection
agencies and other customers
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access system.
Now our customers are telling us they would
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And we're not just building an ordinary file.
We're building a state-of-the-art, quality
national file. A file that's more complete, less
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Ask why and again Al Flitcraft comes straight
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"Trust is the reason why."
For all your credit information
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TRANS UNION Credit Information Co.
Trust is the reason why.
Federal Reserve Bank of St. Louis



Convention Calendar

ABA—American Bankers Association
AIB—American Institute of Banking
BAI — Bank Administration Institute
BMA—Bank Marketing Association
CFP—College for Financial Planning
IBAA— Independent Bankers Association
of America
NABW— National A ssociation of Bank
Women, Inc.
RMA—Robert Morris Associates

June 27-July 1— National AIB Conference,
Westin Hotel, Seattle.
June 28-July 3—ABA National School on
Human Resources and Human Re­
sources Graduate School, U. of Colorado,
July 8-10— Upper Midwest A gricultural
Credit Council Conference, Big Sky Re­
sort, Big Sky, Mont.

June 8-9— MBA 97th Annual Convention,
Marriott City Center, Minneapolis.
June 21-26— Minnesota School of Banking,
St. Olaf College, Northfield.
July 19-24— MBA Midwest Banking Insti­
tute, University of Minnesota, Morris.
Aug. 6— Marquette Bank Minneapolis Cor­
re s p o n d e n t/! n vest m ent C onference,
Northstar Hotel, Minneapolis.
Aug. 9-14— MBA Commercial Lending
School, St. Olaf College, Northfield.
June 1-2— MBA Commercial Bankers Confer­
ence, Grouse Mountain Lodge, Whitefish.
June 11-12— MBA Real Estate Bankers Con­
ference, Sheraton Hotel, Missoula.
June 23-26— MBA 84th Annual Convention,
Sun Valley, Idaho.

State Conventions & Schools
National Conventions & Schools
May 13-16— IBAA Seminar/Workshop on
the One-Bank Holding Company, Opryland Hotel, Nashville, Tenn.
May 21-22— IBAA Agricultural Lender I
Workshop, Holiday Inn, Billings, Mon­
May 24-29— BMA Advanced School of Bank
Marketing, University of Colorado, Boul­
May 24-29— BMA School of Trust & Per­
sonal Financial Service Sales & Market­
ing, University of Colorado, Boulder.
May 24-29— BMA Boulder Essentials of
Bank Marketing School, University of
Colorado, Boulder.
May 24-June 5—BMA School of Bank Mar­
keting, University of Colorado, Boulder.
May 28-29— IBAA Bank Internal Auditing I
Seminar, Hyatt at Chatham Center, Pitts­
burgh, Pa.
May 31-June 3—ABA National Operations
and Automation Conference, San Fran­
June 1-3— BAI Current Issues in Commer­
cial Loan Operations, San Antonio.
June 2-3— BAI Keys to Consumer Lending,
June 3-4—BAI Loan Review/Real Estate,
June 4-5— IBAA Agricultural Lender II Work­
shop, Westin-Tabor Center, Denver.
June 5— RMA Loan Review Workshop, Cop­
ley Plaza Hotel, Boston.
June 6-12—ABA School for Bank Investors
and School for Financial & Funds Man­
agement, U. of Colorado, Boulder.
June 7-11—ABA National Corporate Trust
Workshop, Hyatt Regency Crystal City,
Arlington, Va.
June 8-10— BAI The Making of a Commer­
cial Loan Officer, Milwaukee.
June 9-10— IBAA Long Range Planning
Seminar, Hospitality Center, W illiam s­
burg, Va.
June 11-12— IBAA Asset/LiabiIity Manage­
ment Workshop, H ospitality House, W il­
liamsburg, Va.
June 14-26—Stonier Graduate School of
Banking, U. of Delaware, Newark.
June 15-16— IBAA Bank Internal Auditing
II Workshop, Drake Oakbrook, Chicago.
June 21-26— KBA/NBA Schools of Banking
— PDP Intermediate School—Session II,
Holiday Inn, Manhattan, Kan.
June 23-24— BAI Commercial Loan Docu­
mentation, Indianapolis.

Banker, May, 1987
Federal Reserve Bank of St. Louis

June 3-6—CBA Annual Convention, Colorado
Sept. 16-20—Independent Bankers of Colo­
rado Annual Convention, Beaver Creek,
May 31-June 5— Illinois Bankers School, Carbondale.
June 10-12—IBA Annual Convention, Pere
Marquette, Peoria.
June 14-16—IBA Ag Lending School, Normal.
June 21-26—IBA Trust School, Normal.
July 6-10— IBA Bank Marketing School, Oak
July 14-16—IBA Loss Prevention School, Nor­
July 19-24—IBA Consumer Lending School,
July 26-31—IBA Commercial Lending School,
Aug. 9-14—IBA Internal Auditing School,
Aug. 9-14—IBA Intermediate Internal Auditing
School, Chicago.
Aug. 16-21—IBA Bank Compliance School,
Aug. 24-28—Independent Community Banks
of Illinois School for Bankers, Illinois Wes­
leyan University, Bloomington.
Sept. 25-28—Independent Community Banks
of Illinois Annual Convention Exposition,
The Hamilton Hotel, Itasca.

May 18—IBA Group 5 Meeting, Council
May 19—IBA Group 2 Meeting, Ft. Dodge.
May 20— IBA Group 12 Meeting, Okoboji.
May 20-22—Analyzing Financial Statements
Workshop, Airport Hilton, Des Moines.
May 21— IBA Group 3 Meeting, Clear Lake.
June 5-6—Northwest Iowa Group NABW
Convention, Village West, Okoboji.
June 8-19— IBA Ag Credit School, Scheman
Center, Ames.
June 21-26—IBA Iowa School of Banking,
University of Iowa, Iowa City.
July 23-25— Iowa Independent Bankers An­
nual Convention, The New Inn, Lake Oko­
Sept. 20-22— IBA 101st Annual Convention,
Convention Center, Des Moines.
Oct. 13-14— IBA Consumer Services Confer­
ence, University Park Holiday Inn, Des

May 14-17— NBA 90th Annual Convention,
Lincoln Cornhusker Hotel.
June 7-9— NBA Washington Legislative
Visit, Washington, D.C.
June 11 — NBA Bank President’s Golf Tour­
nament, Lochland Country Club, Has­
North Dakota:
May 31-June 5— NDBA School of Banking,
University of North Dakota, Grand Forks.
June 14-16— NDBA Annual Convention, In­
ternational Inn, Minot.
Aug. 10-21—Graduate School of B a n kin g ,#
Sept. 21 — NDBA Northeast Group Meeting,
Park River.
Sept. 22— NDBA Northwest Group Meeting.
Sept. 23— NDBA Southwest Group Meeting,
Elks Lodge, Dickinson.
Sept. 24— NDBA Southeast Group Meeting.
South Dakota:
Sept. 14—SDBA Group V Meeting, Howard
Johnsons, Rapid City.
Sept. 15—SDBA Group IV Meeting, Wrangler
Motor Inn, Mobridge.
Sept. 16—SDBA Group II Meeting, Guest
House, Watertown.
Sept. 17—SDBA Group III Meeting, Holiday
Inn, Mitchell.
Sept. 18—SDBA Group I Meeting, Airport
Holiday Inn, Sioux Falls.
Oct. 8-9—SDBA Installment/Retail/Mortgage
Loan Conference, Ramkota Inn, Rapid
Oct. 21-22—SDBA Economics Seminar for
Young Adults, Holiday Inn, Mitchell.
May 17-19—WBA Legislative/Regulatory
Conference, L’Enfant Plaza, Washington,
May 31-June 5—WBA General Banking #
School, St. Norbert College, De Pere.
June 7-13—WBA Commercial Lending
School, St. Norbert College, De Pere.
June 15-17—WBA Annual Convention, Em­
bassy Suites Hotel Regency Conference
Center, Green Bay.
Aug. 2-8—WBA Consumer Credit School,
St. Norbert College, De Pere.
Aug. 9-14— Basic Banking School, St. Nor­
bert College, De Pere.
June 14-16—WBA Annual Convention, Jackson Lake Lodge, Moran.


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Northwestern Banker, May, 1987
Federal Reserve Bank of St. Louis


S p e c ia l R e a d in g fo r
D ire c to rs , M a n a g e m e n t

Written especially for
T he N o r t h w e s t e r n B a n k e r

President and CEO
Douglas Austin &
Associates, Inc.
Toledo, Ohio

HIS is the first in a series of monthly columns
which both the N o r t h w e s t e r n B a n k e r and I
# hope will be educational, informative and entertaining
to you as bank directors and senior management of
commercial banking organizations throughout the ter­
ritory served by the N orthwestern B a n k e r .
As president of a consulting firm for over 20 years, a
# regular faculty member in the accredited College of
Business Administration (The University of Toledo),
an attorney, and a student of the banking industry,
hopefully some ideas that I will expose over the next
months will be of interest to you in your capacities as
® management and directors of commercial banks
throughout the United States.
These columns are not going to have a legal or aca­
demic orientation but will strive to inform you in
“ bankereze” on subjects of pertinent interest to you in
• your capacities at your organizations. If legal issues
are raised and you have questions, please consult your
bank’s legal counsel for the pertinent statutes, regula­
tions or results of litigation. Keep in mind that the
focus on these columns will be to assist you in per• forming your managerial and/or directorial functions
more efficiently, effectively, and prudently - all of
which should definitely limit your potential liabilities
in your capacity as a director or officer.
I can start these columns by reiterating director’s
• a n d officer’s liabilities and believe me, over the next
year, I will certainly talk about that issue. On the other
hand, I believe there is a more fundamental issue that
you should be concerned with and I am spending the
^ space in this initial column to cover the area of strate• g i c planning. You may have been told that strategic
planning is simply a “ buzz word,’ ’ that it does not real­

Federal Reserve Bank of St. Louis

. . . your key to survival
ly mean much, and that you can really just continue to
operate or direct your bank and/or bank holding com­
pany in the same fashion you have for the past 10 to 20
years. Nothing could be more wrong. Today, you must
know where your banking organization is going, and
what you must do in order for it to achieve the success
you desire the bank to achieve.
Determine Corporate Mission
Initially, as directors and officers of your banking
organization, it is paramount that you determine your
corporate mission. If you have a corporate mission in
written form, congratulations. If you do not, develop
one so you and your fellow directors and officers have a
game plan covering your customer base, the products
and services you plan to have, all geographical terri­
tories you plan to serve, and the types of customers
you plan to cultivate.
A corporate mission allows you to tell your share­
holders what type of institution you are, what type of
institution you plan to evolve into and, more impor­
tantly, whether you plan to remain independent, pack­
age yourself for sale or, as a holding company opera­
tion, how you plan to operate - decentralized or centra­
lized, and how you plan to relate to your own share­
holders. Furthermore, it is impossible for you to
operate as a banking organization without a corporate
mission, just as it is impossible for a sailboat to steer a
straight course without a rudder.
Without sounding like a commercial, if you are inter­
ested in establishing a corporate mission and a strate­
gic plan for your banking organization, you might be
interested in a book published by Bankers Publishing
Company, Boston, Mass., entitled A Bankers Hand­
book for Strategic Planning, which is aimed at the com­
munity bank banking organization, and was co-au­
thored in October 1985 by Dr. Douglas V. Austin and
Mark S. Mandula. This book outlines how to develop a
corporate mission, a strategic plan, and how to imple­
ment same, review and modify such plans, and hold the
management accountable for the implementation of
the planning and operational functions.
Strategic Plan Is Next Step
Assuming that you have now determined what your
corporate mission is to be, at least for the next 5 to 10
years, you must develop a strategic plan, which is
Northwestern Banker, May, 1987

nothing other than a series of stops along the road
map to the goals and objectives that you have set. If
you do not have a written strategic plan at this point in
time, you had better start one, not only because you
absolutely need it - which you do - but also because the
regulatory authorities, whether state or federal in
nature, are going to demand a strategic plan from you
within one or two years.
Strategic planning is nothing other than the process
of determining how to get to the goals and objectives
that you have set within the corporate mission. Strate­
gic plans are not monumental tasks. A commercial
banking organization under $100 million does not need
a 100 page strategic plan. Your strategic plan should
address the elements that you desire to cover explicity
in order to reach your goals and objectives.
Furthermore, if you are a director of your banking
organization, you are not the every day manager of
your organization, and you should not meddle in the
everyday operations. On the other hand, you, as a di­
rector, are responsible to the shareholders, creditors,
depositors, employees and the community in general,
for the safe and solvent operation of your banking in­
stitution as well as its long-term survivability - if that
is your goal. Therefore, it is necessary for you, as a
director, to develop and implement a strategic plan
that will permit the management and staff of your or­
ganization to meet the goals and objectives that you
and your fellow directors have set forth.
In addition, this strategic plan then permits you to
make decisions as to whether to use internal compu­
ters, outside data services, merger and acquisitions op­
portunities, branching and nonbanking subsidiary affi­
liate locations, management succession and staffing
questions, and all other pertinent decisions that you
have to make as directors. These choices are almost im­
possible to make without a framework upon which to
hang all important decisions that are faced by the
board of directors.

Developing the Strategic Plan
How do you develop a strategic plan? There are two
simple ways to accomplish a strategic plan:
1. Have it developed internally by the management
of your institution and present it to the board of direc­
tors for their review, modification, and approval.
2. Retain outside professional consultation assis­
tance to help in the drafting of the initial strategic plan
on behalf of the management and then have it re­
viewed, modified and approved by the board of direc­

■ ABOUT THE AUTHOR — In addition to heading his own finan­
cial management consulting firm for the past 20 years, Dr.
Douglas V. Austin is chairman and professor of the Department of
Finance at The University of Toledo. Dr. Austin received a joint
Ph.D. in Economics and Business in June, 1964, from the Indiana
University Department of Economics Graduate School, and his
law degree In June, 1978, from the University of Toledo College of
Law. He is a widely known author and speaker on directors’ duties
and responsibilities, asset and liability management, capital for­
mation programs, strategic planning, stock valuations, regulatory
liaison, bank holding company formation, mergers and acquisi­
tions and problem bank consulting. His topics in this series will
deal primarily with directors’ duties, responsibilities and opportu­
nities, as well as key management concerns.

Northwestern Banker, May, 1987
Federal Reserve Bank of St. Louis

You, as directors of your institution, have to know ®
how much time is available for the management to
develop a strategic plan and, in most cases, it has been
my experience that the management is so busy today,
since you have the organization understaffed, that you _
had probably better retain outside assistance. On the 9
other hand, there are probably even better reasons for
utilizing someone from outside - the objectivity and
the lack of political and livelihood justification that an
outside financial consulting firm, management service ^
division of a C.P.A. firm, or other professional group
can bring to the strategic planning process. Further­
more, if you retain outside strategic planning assis­
tance, the group you retain will have done a countless
number of strategic plans, and can deliver the p la n ^
faster, more efficiently and, believe it or not, less costly
in terms of total time and resources than your internal
management could do.
Let’s face it, if your internal management could pro­
vide you with an outstanding strategic plan, then the £
real question is why they have not done so thus far,
and why you have not asked them to do so! Shop
around and find an outside professional firm that can
assist you in the strategic planning process, and don’t
believe that the strategic planning process is going t o ^
cost you an arm and a leg - it will only cost you a hand
and a finger.
What Strategic Plan Encompasses
What should your strategic plan encompass? Realis-^
tically, your strategic plan should cover whatever is
important to you as directors and officers of your
banking organization. No two strategic plans should
be the same since they reflect differing goals and objec­
tives of each of the 14,0004- commercial banking org a -#
nizations. Your strategic plan, based on the past per­
formance, and the future forecasted performance of
your commercial banking organization should be
adopted to reflect your local market area, your wishes
and desires, your constraints and restraints, and your%
ability to survive in the banking marketplace.
However, certain elements are consistent through­
out strategic plans, whether your bank be $20 million
in size with only one office, or $250 million with 10 of­
fices, or $5 billion operating over several states, a n d #
whether you are a commercial bank without a holding
company or a multi-bank holding company. These ele­
ments generally are as follows:
1. Projected and desired rates of return on assets,
net worth, and other financial performance standards.#
2. Capital adequacy levels reflecting safety and sol­
vency of your banking institution.
3. Desired levels of past-due loans, nonaccrual loans,
other real estate loans, and other loan portfolio stan­
4. Management succession plans - keep in mind that
your president will not live forever, and if you don’t
pay him enough, he won’t last another year.
5. Staffing requirements of your officers and staff.
6. Educational requirements for the upgrading of the
talent of your banking institution.
7. Future products and services to be offered by your
banking institutions, whether in bank or holding com­
pany form, in order to meet the changing and increas- >
ing demands of the marketplace within your local mar­


“ If you do not review the strategic plan, all the planning you
have done will be meaningless.”





8. Analysis of the current strengths and weaknesses
of your own organization in order to improve your
ability to survive over the next 5 to 10 years, and then
specific action programs to direct the deficiencies and
meet the goals and objectives that you have set.
9. Branch locations, if applicable, or new merger and
acquisition opportunities available to your orga­
nization throughout your state or interstate region.
10. Whatever else is important to your organization
which will permit it to meet its goals and objectives,
whether sales or survivability.
Your strategic plan should be considered as a fluid
guide to your performance over the next 5 to 10 years.
Five years is about the maximum time frame you will
be able to cover without missing the ballpark. If you
just reflect back to 1978, look how far the industry has
changed in just 10 years. If you had to try to anticipate
how much more the industry would change in the next
10 years, they would probably lock you up in your local
funny farm. On the other hand, you can certainly fore­
cast 3 to 5 years into the future and you can determine
your goals and objectives for the next 3 to 5 years
without too much strain, and then implement your










Timing Is Crucial
One thing that is absolutely crucial in the strategic plan­
ning process for your organization is the timing neces­
sary to achieve such a strategic plan. Too often, commercial banking organizations take years to develop a
strategic plan. Set a timing schedule which is no longer
than six months in duration (I recommend three
months) and accomplish the task within the time schedule you have set. Your banking organization is a corporation run for profit and should be run as efficiently
as possible. While you are determining your goals and
objectives, your corporate mission, and then attempt­
ing to draft a strategic plan to meet such goals and objectives, you will have a tendency to lose momentum
and lie wallowing in the waters of indecision. There­
fore, it is important for you to be able to eliminate the
wallowing as much as possible. This can be done only
through setting a specific timetable for the drafting,
review, modification and approval of your strategic
Do not be scared that the strategic plan may be
incorrect. As planners, you have to learn to crawl
before you can walk and then run a marathon. Your
first strategic plan will be general, probably incorrect
in certain areas, and extremely naive after you have
had a chance to reflect upon it for several years. On the
other hand, the strategic planning process for your
banking organization is not a one-time planning process. It is an ongoing planning process which should be
reviewed on at least a six-month to one-year timeframe, modified for the conditions within your mar­
ketplace and that of the national economy and then
changed to reflect the necessary modifications. The
board of directors of your organization should review,
modify, and then reapprove the strategic plan for your
organization once a year.
Federal Reserve Bank of St. Louis

As you review and modify your strategic plan, it will
become more specific, more comprehensive, and less
naive. The first year you review your initial strategic
plan, you will determine that you have to make it more
specific and, as you make it more specific, you will
make it better, more detailed and more appropriate to
your organization. Thus, even though the first year
strategic plan may not be the ideal strategic plan for
your banking organization, your shareholders and
your community, as you develop strategic plans and
modify them over the years to come you will be able to
implement the strategic plan in light of a more specific
goal-oriented planning process and thus achieve more
meaningful results.
Hold Management, Staff Accountable
Finally, I cannot leave this first month’s column
without stating the fact that the planning process
never quits and as it is noted above, if you do not
review the strategic plan, all the planning that you
have done will be meaningless. In this light, you must
hold the management and staff of your organization
accountable for meeting the goals of the strategic plan
that you have set. Short-term strategic planning
(which can be re-termed as one year financial budgets),
compensation schedules, and other short-term busi­
ness plans, are simply yearly means by which to reach
the goals and objectives that you have set in your stra­
tegic planning process.
As a last note, consider carefully whether the sum­
mary of your strategic plan should be disseminated to
your shareholders. I believe firmly that the more your
shareholders know about your corporate mission and
your goals and objectives as a financial institution, the
more they can value and judge your performance in
light of the goals and objectives you have set. Further­
more, it often keeps the shareholders quieter since they
perceive you are doing the job that you have set forth
to do. It also keeps the remaining shareholders more
solid and loyal to your strategy than if they are kept in
the dark as to what your organization is planning to
It is obvious that most commercial banking organi­
zations do not give to their shareholders the same kind
of long-term investment return that other types of in­
vestments might be able to do. It is quite possible that
your organization’s rate of return over the last 10
years was less than your shareholders could have got­
ten in a passbook savings account and, therefore, the
more they know where you are headed, how you plan to
get there and how you have done in achieving your
goals and objectives, the more loyal they may be to
your organization, even if their rate of return is not as
great as they could get elsewhere. You have to make
that decision as to whether you desire to let your share­
holders know where you are going, but it may be the
best decision you have ever made, and only second to
the decision of forming a strategic plan in the first
(As noted earlier, Dr. Austin's articles will appear
monthly in this magazine.)
Northwestern Banker, May, 1987



Federal Reserve Bank of St. Louis

•How Deluxe is pressing forward
with its service commitment.

In their recent book,
Service America! Doing Busi­
n e s s in the New Economy
Karl Albrecht and Ron Zemke
point out how customer service
has become something of
• a buzzword in industry today
As one of the companies
profiled in the book, Deluxe
Check Printers appears at the
•vanguard of the service revolu­
tion—by doing exactly what
we’ve been doing for 72 years:
serving you.
Some people were
surprised when Deluxe Chair­
man, Eugene Olson, was
quoted: “We aren’t in a com•m odities business, we’re in a
service business.” But it isn’t a
surprise to our customers.
Because while we work hard to
#make our product the finest
in the nation, it’s the way we
deliver the product, and how we
work in partnership with our
custo m ers, that sets us apart.

left to do: go it one better.That’s
why Deluxe recently surveyed
customers about customer
service. The notices were
good—but they also helped us
identify areas for improvement.
So we’ve spent the last few
months fine-tuning our custom­
er service capability.The result

affords our customers even
faster access to the help they
sometimes need.
Looking around it
seems that service is today’s
business buzzword. It certainly
is here at Deluxe—just as it
has been for the last 72 years.
And always will be.

Now, the best
#is getting better.
Once you’ve set the
standard for yourself and your
industry, there’s only one thing

»Check Printers, Inc.
Federal Reserve Bank of St. Louis

The difference
between a printer
and a partner.


HELPING guide the IBAA during the 1987-88
will be these five officers, left to right:
Charles T. Doyle, Texas City, Tex., immed.
past pres, and now chmn. of the IBAA
board; Thomas H. Olson, Lisco Nebr., the
new pres.; J.R. Nunn, Tucumcari, N.M., now
pres.-elect; O. Jay Tomson, Charles City,
la., the new vice pres., and Kenneth A.
Guenther, exec. v.p. and head of the Wash­
ington headquarters staff. Not pictured is
Merle L. Graser, Venice, Fla., treas.

Tom Olson Named IBAA President
E B R A S K A ’S Thomas H. Olson, president of the
Lisco State Bank in western Nebraska, was ad­
vanced to the presidency of the Independent Bankers
Association of America on April 3 during IB A A ’s 57th
annual convention in Orlando, Fla. Lisco is believed to
be the smallest town yet to produce an IB A A presi­
Mr. Olson succeeds Charles T. Doyle, CEO of Gulf
National Bank in Texas City, Tex., who now becomes
chairman of the association board. J.R. Nunn, presi­
dent of Citizens Bank, Tucumcari, N.M., moved up to
become president-elect and replacing him as vice presi­
dent is O. Jay Tomson, chairman of Citizens National
Bank in Charles City, la. Merle L. Graser, chairman/
CEO, First National Bank, Venice, Fla., continues in
his second year as IB A A treasurer. Kenneth A. Guen­
ther is executive vice president and heads IB A A ’s
Washington staff.
In their official deliberations, delegates reconfirmed
their strong effort to close the non-bank bank loophole
and to achieve relief for the agricultural sector of the
economy. President Olson said, in outlining IB A A ’s
commitment to closing the loophole, “ To us, there is no
higher priority. (It) undermines our existing deposi­
tory institutions, their insurance fund, and our regula­
tory process.”
The association strongly supported Title I of S.F.
790, recently passed by the Senate, which closes the
non-bank loophole but grandfathers all current char­
ters and permits them unlimited growth for the
balance of this year. IB A A officials said they prefer to
see the loophole closing even with this permissive cap
and singled it out above all other banking legislation
objectives since they believe this will be the last oppor­
tunity to bring the loophole to a head in Congress.
IB A A said it will pursue the loophole closing above the
legislative effort seeking added bank powers, as other
segments of the industry prefer.


Banker, May, 1987
Federal Reserve Bank of St. Louis

Comptroller of the Currency Robert L. Clarke took
direct issue with that position in his convention ad­
dress. He said, “ Bankers should be doing everything
they can to find new ways to make money. I am puz­
zled, perplexed and confounded that many bankers are
“ And I am bewildered that so many bankers—and
the IB A A as an organization—would overlook this
urgent need and, devote so much time, energy and at­
tention to what I believe is a far less compelling problem: the future of the so-called ‘non-bank bank.’
“ Or, more appropriately, the ‘limited-service bank’. ”
Mr. Clarke referred to IB A A ’s 1984 Florida lawsuit
which forestalled the CofC from issuing such national
charters. “ There is no doubt in my mind,” he stated,
“ that independent banks—and all other commercial
banks—are at a competitive disadvantage to some of
the organizations that own or have applied to own lim­
ited-service banks. That competitive disadvantage,
however, is not that these organizations can use the
limited-service bank as a tool in their business.
“ Rather, the competitive disadvantage arises from
the fact that these organizations can offer a far wider
range of financial services to their customers than you
are allowed to offer.” Mr. Clarke said he is convinced
that even if non-bank banks were outlawed, these other
financial service organizations would merely find other
means to pursue their range of products that are far
wider than banks presently can offer. Because of this,
he stated, banks should be seeking instead to have expanded powers on a unified banking front.
Interstate banking, he stated, is at the heart of
IB A A ’s basic concern but “ that matter is of far less
import to independent bankers today than just three
years ago.” His staff estimates one-third of non-bank
applications might not be pursued even if all con­
straints on his chartering authority were lifted because
the end result could instead be achieved in many states
just by acquiring existing institutions.
“ I believe you have cause for concern,” Mr. Clarke
stated, “ and I believe that cause is not the limited ser-
















WHEN Tom Olson, pres., Lisco State Bank, Lisco, Nebr., was advanced to the IBAA presidency at the 57th annual convention in Orlando
last month, he was honored at a reception hosted jointly by the Nebraska Independent Bankers Association and the Nebraska Bankers
Association. Pictured at that reception, left to right, are: Kelly Holthus, pres, of NBA and pres., 1st Natl., York, and Virginia; Tom and Cyn­
thia Olson; Roy Yaley, pres., of NIBA and pres, of Nebraska State, South Sioux City, and Cathy; Georgianne and Bud Gerhart, pres., 1st
Natl., Newman Grove, and a past pres, of IBAA; Jeanie Matzke Flaska of Irvine, Cal., who was visiting with her parents (center) Stan Matzke, NBA exec, v.p., and Dorothy; Kurt Yost, NIBA exec, v.p., and Dennis Brewster, pres., Butte State, Butte.

vice bank. Why not invest your political capital in leg­
islation with a greater dividend, legislation that would
allow you to meet the real and present competition on
more equal terms? If IB A A succeeds in closing the
loophole by sacrificing legislation urgently needed by
many independent banks to survive, what kind of vic­
tory will this organization achieve?’ ’
FDIC Chairman William L. Seidman also addressed
the convention delegates, recalling that some people
“ tell us that unbridled competition will create a heal­
thier environment—a kind of financial survival of the
fittest. I must admit to being more in that school
although I think...while we must move forward we
should do so at a well-reasoned and cautious pace.
Nonetheless, I am convinced banking will become in­
creasingly competitive...adaptation is the key to sur­
vival.’ ’
Mr. Seidman cited the community bank’s comparative advantage of knowing intimately the local market
and having the confidence of local customers, although
“ large competitors would appear to have the advan­
tage with some of their high tech and innovative new
products. You have an organization in the IB A A that
recognizes that together you can not only be competi-

tive, but superior. Joint ventures and franchising ar­
rangements can prove to be a market equalizer.’’
Mr. Seidman supported the concept of a nationwide
secondary market for ag loans. He recognized that
some banks will not adapt, some ag banks TTdll not
recover from the economic distress of recent years, but
added, “ We, at the FDIC, want to help these troubled
banks survive.”
He announced an amendment to the capital forbear­
ance program (N orthwestern B anker Weekly News­
letter of 3/30) that will allow district directors to base
such a program on the viability of a plan submitted, in­
stead of making it conform to the 4% minimum capital
previously required. He concluded by saying, “ We at
the FDIC will support your efforts to ‘get going.’ After
all, as your insurer, we want you all to live forever!’ ’
Other nationally noted speakers included E. Gerald
Corrigan, president of the influential New York Fed­
eral Reserve Bank, who detailed the points covered in
his recent discussion paper designed to stimulate fur­
ther discussion among all elements in the financial in­
dustry on the future course this nation should take in
its system of financial institutions, its payment sys­
tem and its credit system. Mr. Corrigan was well-

LEFT— Pictured in the American Natl. B&T of St. Paul, Minn., hospitality room were, from left: Almeda and Jack King, former IBAA pres,
and chmn., Valley Bank Kalispell, Mont.; Kathy and Joe Kingman, pres., American Natl. B&T; Mark W. Olson, pres, of the ABA and pres.,
Security State, Fergus Falls, Minn., and Bob Jacobson, v.p. of the host bank, and Lori. RIGHT—The Iowa reception honored O. Jay Tomson, chmn., Citizens Natl., Charles City, la., and his wife, Pat, on his election as v.p. of the IBAA. From left to right are: John Dean, pres.,
Glenwood State, Glenwood, and Carol; Jay and Pat Tomson, and John Spies, pres., Iowa T&S, Emmetsburg, and Jeanine.
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1987


ALSO pictured at the Iowa reception were, left to right: llene and Phil Berg, pres., Midway B&T, Cedar Falls; Marilyn and Bill Beohm, pres., •
Tama State; Jane and Jerry Gross, pres., Kirk Gross Co., Waterloo; Stan Barber, chmn., Wellman Savings; Jay Tomson, and Ken Benda,
chmn., Hartwick State. Mr. Barber and Mr. Benda are past pres, of IBAA.

known to many in the audience from his several years
as head of the Minneapolis Fed before being appointed
to the prestigious New York Fed post. Mr. Corrigan
warned against a “ wholesale regulation” approach to
restructuring the banking industry...“ it is not in the
best interest of our Nation.”
The two general sessions were conducted Friday and
Saturday mornings. The entire day of Thursday was
devoted to a series of 14 outstanding special interest
sessions for delegates, as well as four spouse seminars
and separate programs for children. The special inter­
est sessions covered a true cross-section of interests—
regulators panel, internal auditing, agriculture in tran­
sition, insurance, asset/liability management, market­
ing, LBHC, Chapter 12 and ESOPs.

Bank Women to Honor 3
Industry Leaders at Dinner
The National Association of Bank
Women, Chicago, 111., has an­
nounced the names of three noted
financial industry leaders who will
be given top honors at the Associa­
tion’s third annual “ Salute to Senior
Financial Women” testimonial din­
ner, to be held Wednesday, June 10,
1987 at the Grand Hyatt in New
York City.
According to N ABW President
Kay Landen, N A B W ’s Pacesetter
Award winner is George F. Moody,
president and chief operating officer
of Security Pacific Corporation and
president and chief executive officer
of Security Pacific National Bank,
Los Angeles. The Pacesetter Award
is presented each year to that man
or woman who has increased oppor­
tunities or accelerated the pace of
advancement for women in the fi­
nancial services industry.
Receiving N A B W ’ s Industry
Achievement Award are Dr. Juanita
Kreps, former U.S. Secretary of
Commerce (1977-79) under Presi­

Banker, May, 1987
Federal Reserve Bank of St. Louis

Special entertainers had their time on the schedule
as well., Tom Sullivan the noted blind speaker, pianist, #
composer and humorist, kicked off a special session for
younger bankers. Cathy Rigby McCoy, former Olym­
pic gymnast, starred with her energetic program of
singing and dancing, and was accompanied by come­
dian Freddie Roman. Country western singer Lee #
Greenwood entertained on Friday night following the
state banker receptions. Featured after the Saturday
annual banquet was The New Virginians college road­
show group.
It was announced that the 1988 IB A A convention •
will be March 13-17 in Honolulu, with the SheratonWaikiki Hotel as headquarters. The 1989 convention
will be in Anaheim, Cal., on February 26-March 2 at
the Anaheim Hilton Towers.

dent Carter, and former vice presi­
dent at Duke University; and Patri­
cia Carry Stewart, vice president of
finance and administration at The
Edna McConnell Clark Foundation,
New York City. Industry Achieve­
ment Awards recognize women who
have a record of superior accom­
plishment in the industry and who
have assisted other women in ad­
vancing their careers.
Chairing the dinner will be
Thomas C. Theobald, vice chairman
of Citicorp. Honorary chair is Leslie
E. Bains, vice president and group
executive, Chase Manhattan Bank,
N.A. and past N ABW president.

Brandt Honors Top Managers
Brandt Inc., the leading manufac­
turer of currency and coin handling
and management systems, honored
the leading district managers in its
network of independent representa­
tives during the company’s recent
national sales meeting at Captiva
Island, Fla.
John Thompson, Brandt vice
president, explained that Brandt

categorizes its sales districts by
size. The winner in Group A —the
largest districts—was Roger L.
Weinheimer, president of Money
Handling Systems Inc. The Charlottes­
ville, Va.-based distributor was
honored for achieving 122% of quota,
and its vice president of sales, Norm
Williams, was named Brandt Salesman of the Year.
In Group B —medium sized dis­
tricts—the highest percentage of
quota was achieved by Roger A.
Wittenbach, president of Wittenbach Business Systems, Inc., of
Hunt Valley, Md. The company not
only reached 126% of projected
sales, but also began its own coin
wrapping division that was the in­
dustry leader within its region by
year’s end.
Group C ’s winner was Clifford D.
Malone, president of Money Processing Systems, Inc. The Albuquer­
que, N.M., representative was over­
all national leader in percentage of
quota with 139%. 1986 marked the
sixth year that Mr. Malone surpassed 120% quota.








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D u rin g that time, many other insurance com­
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P.O. Box 1820, Fargo, ND 58107
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1987

NEW I BAA President Tom Olson (seated
center) is pictured by the N orthwestern
Banker camera during a reception held in
his honor by fellow Nebraska bankers dur­
ing the IBAA convention. From left to right
in back row: Joyce and Bill Olson (his
brother), pres., Nebraska State, Oshkosh;
Charles Ferguson (standing, a brother-inlaw); Gene C. Eaton, pres., First National Fi­
nancial Corp., Lincoln and Marjorie Eaton (a
sister); Barbara Ferguson (Tom’s other sis­
ter); his mother, Mrs. Harold Olson of Lisco;
Tom; his wife, Cynthia, and her parents,
Alice and Oril A. Barber. Tom and Cynthia’s
son and two daughters are seated on the
floor directly in front of them and include
Tom, Jr., Kerstin Ekstrom (center) and
Lynne. At left is Kerstin’s husband, Bill, and
at far right is Lynne’s fiance, Richard Keller.
Tom ’s father, Harold Olson, who was
honored last year by the Nebraska Bankers
Association with a 60-year service award,
died last June.





Pioneer ethic guides jet-age Tom Olson
A N orthwestern B anker interview with
THOMAS H. OLSON, President
Independent Bankers Association of America
President, Lisco State Bank
Lisco, Nebr.
HE ACCEPTED ETHIC of integrity, trust, shar­
ing, neighborliness, strong faith and hard work
forms the legacy handed down to Tom Olson who, in
turn, has incorporated this taken-for-granted “ pio­
neer” ethic into a jet-age career that has propelled him
from tiny Lisco in western Nebraska to the presidency
of the 7,000 member Independent Bankers Association
of America.
Moving from the daily routine and needs of a ranch­
ing country town of 200 population to the committee
hearing rooms of the nation’s capitol, or the speaker’s
platform at meetings in New York, San Francisco and
many points in between was not foreseen by Tom
Olson when he started working full-time in his father’s
Lisco State Bank in 1960. But, the polishing touches of
a good family background, a solid education at the
University of Nebraska, 27 years of working with cus­
tomers at the bank, and 15 years of association com­
mittee and officer work have prepared him well for the
top IB A A job that will keep him on the road in the
next year more often than he will be at home.
Add to that a ready smile and total openness for all
he meets, and an intensity of purpose for the aims of
IB A A based on his naturally-inherited reliance on
being independent, and you find a man who was mag­
netized to the IB A A presidency like a faithful homing
pigeon. Independent, in Tom ’s case, means being selfreliant in any game where equality for all is the rule,
but also means being genuinely empathetic and under­
standing of others’ needs, while giving complete
cooperation to achieve those goals that require work­
ing together for the common good.


Northwestern Banker, May, 1987
Federal Reserve Bank of St. Louis

A Family Tradition
If this sounds like the hero “ Tom Playfair” of the
old-time novels written to inspire boys to be exemplary 0
leaders, it’s because the simple truth is that Harold
and Helen Olson believed thoroughly in all those “ oldfashioned” virtues that were an accepted way of life in
their earlier years and passed them on to their two sons
and two daughters.
A grasp of this background is needed to throughly
understand how Tom Olson thinks and works on
behalf of fellow independent bankers and their custo­
mers as he devotes boundless energy to his new duties.
Because he and others like him have always been an •
integral part of their communities, he speaks of the
needs and rights of small town and rural customers
and their bankers interchangeably because he sees
them as one.
A Banking Family
Banking has been Tom ’s life since he was born in
Lisco on August 31, 1935. His father, Harold, bought
Lisco State Bank in 1934, having worked for Reuben
Lisco since 1924. Tom worked in the bank during vacation periods while attending high school and the uni­
versity during the early 1950s. After graduating from
the University of Nebraska in 1957 with a B.S. degree
in Business Administration, he served a two-year stint
in the Air Force, and continues in the Air Force Reserve as a Colonel. He then returned to Lisco to join
the full-time bank staff in 1960. “ That training as a
teller, keeping books, working all types of jobs gave me
one thing in common with so many other bankers in
rural America—learning all the jobs in the bank and
getting to know all the customers. Hopefully, that pro­
vided an adequate background that will help me and
other rural bankers learn the changes in our industry
and respond to them.”
Tom ’s older brother, Bill, also is a banker “ but,
believe it or not, we’ve never had the chance to work







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

That’s why before we make
a recommendation we conduct a
thorough study of your bank.
committee meets to discuss the
Bank Report we’ve prepared
specifically for you.
The recommendations
from the committee are tailored
to your bank’s present position
and future objectives in a chang­
ing marketplace.
Our PMS system can help
you monitor and manage
your portfolio. W e’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
really need is BANK SERVICE.
Call Mark Rosen, Principal, at
(212) 412-2600.


Northwestern Banker, May, 1987


“Through all of this we
have learned to keep the
needs of our customers
paramount. We need to
serve their needs to
keep them .’’
together in the same bank. Bill worked at National
Bank of Commerce in Lincoln after getting out of
school, then moved to the First National Bank of Ogallala. Then, he had the opportunity to buy Nebraska
State Bank in Oshkosh just 16 miles away so, in a
sense, we’re competitors!” Both Lisco (pop. 200) and
Oshkosh (pop. 1,000) are in Garden County along the
North Platte River. Forty miles southwest in Sidney
(pop. 6,000), is First National Bank, of which Tom
Olson is chairman. The smallest of three banks in that
community, it has $7 million assets. Tom and Bill,
along with their brother-in-law, Gene C. Eaton of Lin­
coln, married to their sister, Marjorie, have ownership
in First National Bank in Estes Park, Colo. Another
brother-in-law, Charles Ferguson, married to their
other sister, Barbara, is chairman and CEO of First
Colorado Bank & Trust in Denver.
IBAA Interest Begins
Tom did not become active in IB A A affairs until 15
years ago. ‘ ‘Our bank belonged to the independent
bankers association,” he recalls, “ but we had never
been active. Then, 15 years ago, Bud Gerhart, who had
been a fraternity brother at Nebraska, asked me to
serve on the IB A A ag committee—that was about
1972—and from that point on I just became more in­
volved.” H.L. “ Bud” Gerhart, Jr., is president of First
National Bank in Newman Grove, Nebr., and a past
president of IBAA.
Tom soon found himself working with hundreds of
other rural bankers who had daily experiences identi­
cal with his. “ So many of our banks, of course, are con­
sidered ag banks,” he said, “ with their strong ag loan
portfolios, especially through the farm belt here.
Through all of this, we have learned to keep the needs
of our customers paramount. These people are not only
our friends and neighbors; they form the very back­
bone of our customer base and we need to serve their
needs to keep them.
Top Priorities
“ That’s why we have two top priorities in IB A A
today. The first is developing a secondary market for
placement of real estate ag loans. The other, equally
important, is closing the non-bank bank loophole
which is allowing other types of financial enterprises to
bleed off the lifeblood of our small banks—their depos­
its and cutomers’ investment money—without having
to abide by the regulatory rules we play by, and with
no regard for the communities from which they extract
this money.
“ In turn, this makes it highly important for us to
have expanded powers from the Congress. Closing the
loophole and expanded powers are addressed as Titles
I and II in S. 790 which the Senate has passed and sent
to the House, and we want both of those Titles. How­

Northwestern Banker, May, 1987
Federal Reserve Bank of St. Louis

ever, I would have to say our No. 1 priority right now
is to get the loophole closed, then vigorously pursue
the expanded powers course, if we have to make such a
Need for Secondary Market
Expanding on the secondary market need, Tom
stated, “ There is no good source right now for such
real estate ag loans, given the horrendous problems of
the Federal Land Bank, so we are seeking a way for our
members to have such a market to serve our customers, keep them as our customers, and we feel we can
do so at a more competitive rate and build our custo­
mer base for the future. We see the Farm Credit Sys­
tem as wanting a total relationship with farm custo­
mers, but we feel that as community bankers that no
one can serve these ag producing farm and ranch custo­
mers in our area as well as the local community, inde­
pendently owned bank.
“ In many of our communities, we are the only finan­
cial institution, so Main Street USA depends on us for
financing all aspects of the community because agri­
culture is at the core of our lives. If we can’t serve our
farm and ranch customers, then there is no need for our
communities because they will dry up.”
Loan Loss Amortization
Tom also points to another area of IB A A interest at
this time when he discusses the association’s effort to
obtain 10-year amortization of loan losses. “ This idea
is not well received by the regulators, and I can understand their concerns,” he says, “ because they feel the
capital forbearance program is a better approach. But,
our ag banks seem much more responsive to the amor­
tization program than the capital forbearance pro­
gram. They can look to spreading out losses on O.R.E.
over 10 years and they can understand that better.
The guidelines for this must be strict and must be
adhered to. I should add that the new capital forbear­
ance rules just announced are welcomed by our asso­
“ We need to work with our regulators and we do ad­
mire the way they have responded in efforts to address
our problems.”
Returning to the secondary market topic again, Tom
said, “ After all the hard work that we, along with the
A B A and the life insurance companies put in, and feel­
ing that we had a mutually suitable agreement worked
out with FCS on this, whereby we handled our own
loan procedures and the FCS would be the vehicle
through which to market such loan packages, it was a
great disappointment to learn of the latest FCS pro­
posal this week, which none of our negotiating parties
can accept.”
Expanded Powers Needed
Legislation occupies a great share of the time of any
association and its top officials, and IB A A is no excep­
tion. Recapping, Tom said, “ As a rural banker I am
very interested in expanded powers so I can better
serve and keep my customers and build more profit
centers with mutual funds, real estate, insurance and
so forth. I have to look for more profit centers; more
importantly, to be able to serve my customers totally.
“ But we must close that loophole to build up our
equity. It’s our highest priority. W e’ll be supportive of
aid for the FSLIC and Title II aspects of the bill. One
thing we’d find not acceptable is just a plain FSLIC















.Our Correspondent Commitment
Knows No Boundaries.
o us, the best thing about state
— — bankers association conventions is
that they give us the opportunity to continue
our commitment to regular personal
contact. The more we participate, the more
we can discover about your bank’s needs
and concerns.

Naturally, it takes a heavy commitment
of personnel and man hours. But, you’re
worth it. That’s why even members of
United Missouri’s top management will
be attending various conventions.
See you there!


Peter Genovese

Larry Russell

Chairman of the Board
United Missouri Bank
of St. Louis

Phil Straight

Vice Chairman
Investment Banking Division

Matt Grzybinski

Executive Vice President
Correspondent Bank Department

Senior Vice President
Correspondent Bank Department
United Missouri Bank of St. Louis


Jack Beets
Rahn Tieman
George Crews
Maxine Hahs
Hal Hollister
Kirk Vaughan

George Crews
Bob Hardin
Matt Grzybinski
Jack Kuebel
Maxine Hahs
Hal Hollister
tyce Nelson

Bob Chamberlain
Randy Klein
Ralph Lampton
Dan Spencer
Joe Smith
Joyce Nelson

Kirk Vaughan
Bob Chamberlain
Randy Klein
Ralph Lampton
Dan Spencer
Joe Smith
Dan Ray



Dick Muir
Jeff Coble
Alan Sack
Mark Bailey

Dick Muir
Jeff Goble
Mark Bailey



Dick Muir
Jeff Goble
Mark Bailey

Matt Grzybinski
Jack Kuebel
Dan Ray



Steve Loveless
Joe James
Kirk Vaughan
Matt Grzybinski
Dan Ray

Joe James
Kirk Vaughan
Sean Doherty
Greg Bernard

of Kansas City, n.a.
M em ber FDIC

1010 Grand • P.O. Box 419226 • Kansas City, Missouri 64141-6226 • (816) 556-7000
Federal Reserve Bank of St. Louis

bill. I ’ll consider that type of legislation a defeat. All
banking associations have declared for closing of the
loophole—not to do so threatens the safety and sound­
ness of our system. The key to this right now is the
House chairman and we’ll be working closely with him.
I hope Title I can be preserved; Title II is cloudy.”
On the more local scene at home, Tom says produ­
cers are well aware that the industry cannot continue
and does not want to continue being subsidized by
government grants. Banks also understand thorough­
ly, he says, the need for balancing the budget. “ The
question then becomes one of how quickly the ag sec­
tor support is reduced,” he stated. “ It looks like land
prices are stabilizing right now. All lenders need to ab­
sorb their losses over time. Given that, agriculture will
be looked at differently in the future. The best of man­
agers will be survivors. But, all this will take time.
There will be a lot of land, for example, that should
never have been touched that now needs to be returned
to reserve. But, we’ll work out of it and we will have
more sophisticated lenders and borrowers.
“ If you scratch the surface of banks you will find
that all of them, large or small, are greatly affected by
agriculture, both here at home and abroad, especially
in the area of exports. As we work ourselves through
this, things will improve, but not to where we were
before. W e’ll be looking more at performance—profit—
and not to collateral.”

means we must become smarter, more well-versed 0
bankers so we will know how to help customers in for­
ward contracting with packers, for example, how to
know their costs, how to protect with a locked-in pro­
fit. But each customer must make his or her own deci­
sion. In our bank we plan some seminars on these #
topics and if other area banks want to participate,
they’re welcome to do so. Good managers want this in­
formation and we feel it’s important that they obtain it
from their local bank.”
Reduced loan demand has put pressure on banks of #
all sizes to develop income alternatives, he says, and
that’s one reason for pursuing the secondary market.
Through it all, he hopes bankers will caution borrowers
about expanding debt too much.
Alternative Sources of Income
With the permanently changing face of agriculture,
other alternative sources of income always lead to dis­
cussion of economic development. “ This is terribly im­
portant in ag states,” Tom notes. “ We have to stay ®
within the agriculture framework fairly well because
we are so oriented to ag production, but I hope our
bankers will keep closely in touch with this; hopefully,
in a leadership role. For example, in the livestock sec­
tor, we see the importance of packing plants fitting ®
into our production areas and the whole broad range of
economic development.”

“ We’ve been going through liquidation of herds for •
five years and we’re now in a rebuilding phase so we
must be careful, be good marketers.”
Agriculture Is a Business
In the same vein, Tom reflected, “ A g loans absolute­
ly have to be treated as any other good commercial
loan. It’s not fair to treat them otherwise, even given
the condition of our current ag economy. The three C’s
of lending are still highly important. So far as family
farms are concerned, I can’t find anyone who can
define that term in a way acceptable to everyone. It’s
hard to accept that total philosophy because farming
is a business. It takes a certain size to be totally selfsupportive in any area of agriculture, but practically
all of our ag customers operate truly “ family” enter­
He feels many farmers are using the heavier cash
flow of the past few months to reduce debt fairly well.
“ The $50,000 limit sometimes assists those who per­
haps should not be in business, while the big, efficient
operators have had to pare back because of that dollar
limitation. Through all of this, it is my firm observa­
tion that banks have practiced far more forbearance
than other lenders, and Congress is looking now at the
FCS and telling them they should be doing the same.”
The increase in livestock prices and stabilization of
land values have helped improve cash flow considerab­
ly, Tom observed. “ W e’ve been going through liquida­
tion of herds for five years and we’re now in a rebuild­
ing phase so we must be careful. We haven’t been very
good marketers in agriculture but we now must be. We
as bankers must help our producers look for price pro­
tection down the road—for example, options. This

Banker, May, 1987
Federal Reserve Bank of St. Louis

He added, “ I ’m really very concerned about the
economy of our entire country. The bright spots are
both coasts, but look at so many questionable spots in
between—the auto industry, for example. General
Motors and other auto makers and their 3.9% financ­
ing—it’s not fair to other players in the lending area.
Even though we’ve had our problems in agriculture,
we must look at the broader picture and the long-range
effect on all of us. In view of all this, if our government
can’t or won’t balance our budget—well, it’s just scary.
How do our senior citizens look at all this and feel
about their future? How about the future our younger
people face? I feel very responsible to the bankers of
my state and the people in my community, and feel it is
an obligation of my job to reflect credit on them this
year as we try to do something to resolve these issues,
and to share my experiences with them.”
One last thought from Tom shows the direction he is
seeking in trying to achieve the aims of IB A A and for
the banking industry and its customers. “ W e’re very
anxious to work as harmoniously as we can with other
banking groups. Any time we have interests and con­
cerns of mutual interest I believe in working together
to retain the quality and rights of all bankers.
Tom Olson’s friends are certain that after his term
as IB A A president is completed and then two years
from now when he finishes his official duties as chair­
man of IB AA, that Tom will be unchanged, but IB A A
will be changed for the better because it has had a
leader who stood tall in the saddle with all comers.









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Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1987

Community Bankers
Council Leaders
Discuss ABA’s Role
PARTICIPATING in this exclusive interview were, from left: James
V. Kuchar, pres., Western State Bank, Devils Lake, N.D.; Richard
J. Schurtz, pres., Bank of New Richmond, Wis.; C.G. Kelly Hoithus, pres., First National Bank, York, Nebr.; LaRae Orullian,
pres., The Women’s Bank, Denver, Colo., and Franklin H. Moore,
Jr., pres., Commercial and Savings Bank, St. Clair, Mich.

URING the 1987 National Conference for Com­
munity Bankers, presented in March in Phoenix,
Ariz., by the Community Bankers Council of the
American Bankers Association, the N o r t h w e s t e r n
B a n k e r conducted an interview with these five Coun­
cil leaders:
• Franklin H. Moore, Jr., chairman of the Communi­
ty Bankers Council; chairman and president, Commer­
cial and Savings Bank, St. Clair, Mich.
• C.G. Kelly Holthus, president, Nebraska Bankers
Association; president, The First National Bank of
York, York, Nebr.
• James V. Kuchar, president, Western State Bank,
Devils Lake, N.D.
• B. LaRae Orullian, president and CEO, The
Women’s Bank, N.A., Denver, Colo.
• Richard J. Schurtz, president, Bank of New Rich­
mond, New Richmond, Wis.
Mr. Holthus, Mr. Kuchar and Ms. Orullian are also
members of the A B A Community Bankers Council.
Mr. Schurtz is a former member of the Council.
The discussion centered on A B A ’s educational offer­
ings to community bankers, the amount of money
spent by banks on staff education, the Council’s most
important programs, an assessment of the Leadership
Conference, and what community banks are doing in
strategic planning.
Part I of that interview appeared in last month’s
issue. The second and concluding part of the interview


o w would you explain the value and effective■ ness of the ABA Leadership Conference for com­
munity banks?
Mr. Kuchar: May I answer that? A good situation hap­
pened a year ago last summer. The A B A had taken a
position in regard to legislation called the three-legged
stool at that time—more powers, closing the non-bank
loophole and the national “ trigger” on proposed inter­
state banking legislation. W e—and I call them the
Plains States, so to speak—took a position that we did
not want any part of the “ trigger.” We wanted to deal
with that in our own states, in our own time and, as I



Banker, May, 1987
Federal Reserve Bank of St. Louis


Part II

recall, our state associations joined together and,
through the Leadership Council, specifically and em­
phatically made the point known that we wouldn’t put
up with the A B A ’s position in regard to the “ trigger”
on interstate banking. The action of that Leadership
Conference resulted in A B A changing its position and
that was done by the community bankers in concert.
Mr. Moore: I recall that very well. The Government
Relations Council had reached its decision in July at a
session in Seattle, and the Leadership Conference in
September led to an immediate change in that posi­
Mr. Kuchar: Last November when we had our advisory
board meeting, numerous states reported at peer group
meetings emphatically that they had to have some
help from A B A in regards to D&O and Blanket Bond
coverage. Of course, the A B A at that time just about
had it in place, but it was done specifically and primarily because we as community banks couldn’t find a
market. There is another market out there with BancInsure, but that certainly isn’t covering all of the
states. The A B A captive company can give communi­
ty banks a choice and a competitive approach to the
market now. The Leadership Council was not involved
with this, but it shows A B A responsiveness to our






o w do you rate the Leadership Council’s effec■ tiveness on behalf of the viewpoints of communi­
ty bankers?
Mr. Moore: I think it’s been very responsive. I ’ve pro- •
bably been to 10 Leadership Conferences because I
was in it when I was going through the chairs of the
Michigan Bankers Association. But, I have never
come away from a Leadership Conference frustrated
with the posture that the A B A has taken. Now, some- ®
times it has taken a little bit of selling back in the state
because it wasn’t right on where your state legislative
committee was coming from on that particular issue.
But, I think when it’s explained how that position
evolved there’s been pretty much general agreement. I ®
think a lot of it is bankers that see that as not serving a




Don't miss ABA’s first ever . . .


June 7 - 9, 1987
St. Louis, Missouri

I f you ’re a commercial lender with small
business lending responsibility you owe
it to yourself—and to your bank—to be at
this conference. The focus w ill be entirely
on small business banking—how to tap its
potential and how to avoid its pitfalls.
You ’l l learn:

o f Small

■ latest techniques to increase
■ how to minimize losses
■ innovative ways to measure loan officer
■ how to meet the competition offered by

the thrift industry and other newcomers
to small business banking
how to use the latest research
methodology to determine what your
customers want and will pay for
how to make the best use of current
SBA programs, as well as which
programs you can expect in the future
the fine art o f selling bank services to
small business owners
how to adapt your operations to the
new laws and regulations your
customers are facing

Bankers, successful small business
owners, government officials, and other
industry experts will be there. You should
be there, too.
Fee: $ 3 9 5 for ABA members, $ 5 1 0 for others.
For further details and registration information,
call Lisa Rager (2 02) 6 6 3 -5 0 7 2 .

Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1987

T he B ank of Rapillion red
w ith a com puter system
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“ That was really responding to the needs. . .those benefits
just trickle down to the local level. I don’t know how
community bankers could complain that they were not
represented at the Leadership Council.”


—Kelly Holthus, Nebraska

community banker’s needs are not seeing the whole
picture, and I think we’ve had a lot of that over the last
few years. They’re not really seeing the broad brush.
They’re looking at a very narrow section and I think a
lot of us smaller banks tend to do that and say, ‘ ‘Well,
wait a minute. If you step back and look at the overall
implications...” I ’ve not been uncomfortable with the
final Leadership Council positions.
Mr. Holthus: I think it’s really a good example of
democracy in action. I don’t always get my way, and
others don’t always get their way, but you still have a
chance to express yourself around the table. There’s a
final vote, and I thought it worked very well.
I think that community bankers, and particularly
the midwestern states, have come out of the A B A very
well the last few years. We had the meeting in Omaha
last December which had to do with the ag credit prob­
lems and a couple of subcommittees were organized
out of that—the secondary market committee for farm
land loans, and another one on agriculture. That was
really responding to the needs that were being dis­
cussed at the Leadership Conference, and those bene­
fits just trickle down to the local level. I don’t know
how community bankers could complain that they
were not represented at the Leadership Council.
In light of the new Tax Law, what is the biggest
■ concern in handling your investment portfolio at
this time. Also, what is your feeling about Strategic
Planning for community banks?
Mr. Schurtz: W e’re no longer buyers of municipal
bonds. W e’ve sold off several municipal floating rate
issues under the new formula.
Mr. Moore: We were over-sheltered and it will require
some restructuring. W e’ve been very reluctant to sell
our 80% TEFRA municipals. We want to hang onto
those even though we might face some alternative
minimum tax this year. That’s a carry forward that,
hopefully, we can pick up over the next two to three
years. We did not want to sell those munys that we had
the good position on, but we definitely are not going to
be in the market for municipals for some period of
Mr. Kuchar: I think the municipal investment port­
folios are going to shrink in the future because in
regard to tightening of the spreads it’s just tough to
get your bottom line up there in any event. If your bot­
tom line isn’t real strong, what are you doing with
municipals at all?
Mr. Schurtz: Another problem for all of us is that our
investment portfolios are running off and the higher
yielding investments are running off. What do you do
with them? You go back in on an agency bond or a
T-Bill and you get out there at 5-7 years and you’re
probably picking up under 7%. In terms of the risk in
relation to the volatility of interest rates, that’s scary.


Banker, May, 1987
Federal Reserve Bank of St. Louis

So then, your other alternative is to look for good loans
and being in an ag community you’d better be real
good at that, too!
It’s interesting to note that it seems that every time
the interest rate falls, the exotic investment alterna­
tives seem to come out of the woodwork! They’re doing
that again and that’s something we have to be careful
Ms. Orullian: I think it’s interesting that the two ques­
tions you asked were about the two sessions I attended
this morning—Strategic Planning and Investment Alternatives. In terms of the whole income side of the
ledger, we need to move back to our original purpose of
being in business, and that’s lending. Under the new
Tax Law the only real source there gets back to the
Home Mortgage loan. So, that’s an area we have to
deal with and we also have to deal with re-pricing our
services so that we look at other than the spread and
the interest income. It’s a very new ballgame for us.
W e’ve been able to sit back and live with tax shelters
and have benefitted from that, but we’ve just got to
really dig in now and face the whole idea of alternate
sources of income and holding down expenses. Of
course, that’s what we’ve all tried to do but we must
take new steps.
Mr. Kuchar: Strategic planning is something so far as
I ’m concerned that you do on an on-going basis
throughout the year because, as things change, as the
economy changes, as the various types of mixes
change, then if you’ve started a new product you may
have to back out of it. You have to recognize that.








“ Strategic planning is a lot of work
but we’ve found that we involve a lot
of people in our bank in the process.’’ •
—Frank Moore, Michigan

Mr. Holthus: It appears to me that in the muny bond
business in Nebraska we’re seeing a little adjustment ^
in the rate because the biggest buyers are banks. So, in
order for them to encourage a demand for the bonds,
you’re going to see the rates move up. But, you’re go­
ing to offset a little bit of the tax consequences on that.
W e’ll just have to wait and see if that happens. It will
be a whole new ballgame for the managers of our
school districts and municipalities. Hopefully, as bank­
ers, we’ll get the same yield as we did under the old tax
Mr. Moore: Strategic planning is a lot of work but #
we’ve found that we involve a lot of people in our bank
in the process. Whether the plan will ever be worth
anything because of the changing circumstances, the
exercise itself is very valuable. W e’ve got everybody
thinking, “ Are we moving in the direction we want to #



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Federal Reserve Bank of St. Louis


Brookings Banker Donates Scoreboard


BERLIN College in Oberlin,
Ohio, will receive state-of-theart scoreboards for its baseball and
football programs from alumnus
Robert Fishback.

1960 and returned to South Dakota
where he is currently president of
First National Bank in Brookings.
He purchased the two scoring sys­
tems from Daktronics, Inc. of
B rookin gs, an internationallyknown designer and manufacturer
of scoring, timing, and visual com­
munication systems.
Mr. Fishback said that Daktro­
nics had provided scoring and infor­
mation display systems for the 1980
Winter Olympics in Lake Placid,
New York, and will again for the
1988 Winter Olympics in Calgary,
Alberta. He noted that the company
has built electronic displays for the
1986 W orld’s Fair in Vancouver,
British Columbia; Times Square in
New York City; and other profes­
sional and university athletic facili­
ties around the country.
The new Oberlin scoreboard for
baseball, 3Vi feet high and I 8V2 feet
across, has been delivered to the col­
lege. The football scoreboard, mea­
suring 8 feet high and 16 feet across
will be delivered in time for the first
game of the 1987 season. Both scoreboards are 100% solid state and will
display information with digits that
are 2 feet high.

beginning with “ Recruiting and Re- 0
taining the Right People” and con­
tinuing through “ Measuring the
Profitability of Your Small Business
Relationships.” Critical topics, from
“ Measuring Loan Officer Producti- 0
vity” to “ Effective Business Devel­
opment Tools” will be presented in
17 sessions.
The conference, to be held at Mar­
riott’s Pavilion, will conclude with a g
panel discussion of “ What Small
Business Customers Want and Ex­
pect from Their Bank.”
For additional information, con­
tact Paul Byrd at A B A at ( 202)0

New Software System
Sells for $650/Mo.

To make “ in-house” data processing/information systems available
on a cost effective basis for indepen­
dent community banks, Evergreen
Systems, Omaha, has introduced a
complete bank information software
system with a start-up cost of as (
little as $650 per month.
Called “ Solutions for Profit &
Growth,” the system fully inte­
grates all application processing of
Bob Fishback, right, and Daktronics Presi­
dent AI Kurtenbach pose in front of one of
loans and deposits via customer in- (
Oberlin College’s new scoreboards.
formation file and general ledger for
automated processing, accounting,
“ Oberlin College provided many ABA Hosts First National
management and regulatory report­
good opportunities for me,” Mr.
ing. Platform autom ation and
Fishback said. “ Among them was Small Business Conference
modeling is provided as part of base (
A new American Bankers Asso­ system. Check processing is sup­
that they let me play on the basket­
ball team for four years. I am grate­ ciation conference is aimed at help­ ported via data entry, proof equip­
ful for my years at Oberlin and this ing bankers serve one of their most ment or high speed reader/sorters
contribution is one way of showing important customer bases — small depending upon requirements.
my appreciation to the athletic de­ businesses.
“ Solutions for Profit & Growth”
The first A B A National Small is marketed to the financial industry
partment and to the College.
Mr. Fishback graduated in 1958 Business Banking Conference, June based upon asset size as follows: To
from Oberlin, received an M BA 7-9, 1987, in St. Louis, will be an in­ $20 million—$650 per month; $20from the University of Chicago in tensive “ how-to” training course $50 million—$980 per month; $50$300 million—$1,800 per month.
Price includes installation, educa­
The Carpenters Pension Fund of Illinois, covering the State of
tion, conversion and training. Regu­
latory compliance updates and pro­
Illin o is and the eastern half of Iowa, announced today a fin a n c­
duct enhancements are also pro­
ing program of new and re h ab ilita tio n co n stru ction projects.
vided in addition to disaster back-up
The Pension Fund is interested in providing financing of con­
planning. The bank must provide
struction and end loans at com petitive rates. The servicing of
the IBM System 36 computer. Ever­
these loans, ranging from $250,000 to $2,000,000, w ill be
green Systems, Inc. is a member of
IB M ’s Marketing Assistance Pro­
handled through local banks. The program is available for com ­
gram and will configurate the ap­
m ercial and residential projects.
propriate IBM System 36 for the
For further inform ation, please contact: Frederick A. Westcustomer.
mark, A dm inistrative Manager, Illin o is Employee Benefits Cor­
For more information, contact
poration, 28 North First Street, Geneva, Illinois, 60134, 312/
Evergreen Systems, Inc., 1065 N.
115th St., Omaha, Nebraska 68154
or call (402) 493-7773.

Banker, May, 1987
Federal Reserve Bank of St. Louis

Our “

free space”
reserved just for you!
Believe it or not you can get something for nothing in
today’s world.
During the month of May our associates will give an
office consultation free of charge to any banker who calls and
mentions this advertisement. This is not a gimmick! Swords Associ­
ates is very serious about service and we want to prove it to you!
So call now to arrange for your “ free space!’’

m /a


Federal Reserve Bank of St. Louis

4900 Oak, Suite 301

Kansas City, MO 64112

(816) 753-7440


New IBAA Insurance Plan


LaSalle National Bank supports you. With
more than half a century of ex p erien c e ...
innovative products... responsive serv ice...
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
• m erger and acquisition consulting
• trust, treasury and m any other services
In addition, LaSalle ensures dependable,
cost-effective check processing, collections,
loan overlines and the other standards of cor­
respondent banking.
As your Midwestern neighbor, we share
your perspective and regional loyalties. As a
Chicago bank with international resources,
LaSalle c a n share m oney-center b an k in g
opportunities as well. Through our affiliation
with ABN Bank, a leading global institution,
w e offer m a n y a d v a n ta g e s w ell w o rth
Get acquainted with LaSalle's Correspondent
Bankers. Call Wayne Bismark or Del Rogers at
312-443-2769. Wayne, Del a n d the LaSalle
Correspondent Banking team will give you
u n b e a ta b le support —with b etter service,
better products and better ideas.
LaSalle National Bank
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
Member of the ABN/LASALLE group

Your Correspondent Banking Bridge
©1986 LaSalle National Bank

Banker, May, 1987
Federal Reserve Bank of St. Louis

The Independent Bankers Asso­
ciation of America has introduced a
new endorsed insurance program — ^
Legal Expense Reimbursement In­
surance for Directors and Officers
(GALEXI PLUS) - which is being
offered to IBAA-member banks
through facilities serviced by NAS q
Insurance Services.
The G A L E X I PLUS plan reim­
burses outside directors for their
legal expenses in suits from sources
such as shareholders, depositors, £
borrowers, employees, etc.
In addition, G A L E X I PLUS pro­
vides reimbursement for all bank
directors and officers for their legal
expenses in suits from any govern- 0
mental entity, such as the FDIC,
SEC, IRS, U.S. Treasury, etc.
The new G A L E X I PLUS pro­
gram is an extension of the G ALE­
XI plan previously introduced to #
IB A A members. The G A L E X I
plan, which features reimbursement
to bank directors and officers for
legal expenses involved in suits from
governmental entities only, is still #
available to IBAA-members.
Gary Teagno, director of services
for the 7000-member IB A A believes
that the new G A L E X I PLUS pro­
gram can be helpful to banks in en- •
hancing their ability to attract and
retain qualified individuals to act as
board of directors members.
NAS President Maurice H. Sidy,
CPCU, ARM , notes that the GALE- •
X I PLUS program provides a par­
tial solution to the gaps created by
the current Director and Officer lia­
bility insurance “ hard market” en­
program offers banks a choice of two
plans, with annual reimbursement
limits ranging up to $ 100,000 per
director/officer. It features an an- ®
nual non-cancellable policy. In addi­
tion, insured banks receive a 10%
premium discount bonus on renewal
if there are no claims during the
policy year.
The insurance is underwritten by
certain Underwriters, Lloyd’s, Lon­
don and is offered by NAS Insur­
ance Services, an excess/surplus _
lines insurance firm. Coverage is ^
available only through insurance
brokers of the bank’s choice.
NAS is located at 1800 Avenue of
the Stars, Suite 410, Los Angeles, ^
California 90067. Telephone (213) W


First Wisconsin Sees More Acquisitions
ISCO N SIN ’ S largest bank
holding company has crossed
the state border to enter the Upper
Midwest’s two most dynamic mar­
kets and sees more out-of-state bank
acquisitions ahead, officials of First
Wisconsin Corporation told share­
holders last month.
“ Having reached affiliation agree­
ments with four excellent bank hold­
ing companies in Illinois and Minne­
sota, we are off to a strong start in
the new era of interstate banking.
We look forward to continuing a
selective but active acquisition pro­
gram in 1987 and beyond,’’ said
First Wisconsin Chairman Hal C.
Kuehl at the company’s annual
Meanwhile, shareholders will re­
ceive a 9.5% increase in their divi­
dend payments beginning May 15.
First Wisconsin Chairman Kuehl
said the annual dividend would be
increased to 92 cents from 84 cents
per share. This is the third time in
the past 12 months that the divi­
dend has been raised, resulting in a
41.5% increase from a year ago.
Outlining First Wisconsin’s ac­


quisition program, Vice Chairman
Gary B. Rafn said the company’s
primary objective is to build nearterm shareholder value with every
purchase. “ We are not interested in
achieving growth for growth’s sake
alone. We will acquire companies
only on a basis that they can make a
positive contribution to each in­
vestor’s share value,’’ he said.
First W isconsin has reached
agreements to acquire three Illinois
bank holding companies with total
assets exceeding $400 million:
N aper F in an cial C orp ora tion ,
Naperville; Du Page Bancshares,
Glen Ellyn; and north Shore Ban­
corp., Inc., Northbrook. They en­
compass eight offices in North­
eastern Illinois, which is the Mid­
west’s largest market with a popula­
tion of 7 million in the six counties
surrounding Chicago—Cook, Du
Page, W ill, Lake, Kane, and
In Minnesota, First Wisconsin re­
cently reached an agreement to ac­
quire the $167 million Shelard Baneshares in St. Louis Park. Much of
the Twin Cities area, where Shelard

has two banks with five offices, has
dynamic economic and demographic
characteristics similar to North­
eastern Illinois. Shelard’s market
“ includes some of the fastest grow­
ing and wealthiest areas of the
state,” Mr. Rafn noted.
First Wisconsin is actively explor­
ing additional acquisition opportuni­
ties in Illinois and Minnesota, he
First Wisconsin President Roger
L. Fitzsimonds reviewed the com­
pany’s performance in 1986, which
resulted in a 20 % increase in pershare earnings.

FDIC Agrees to Issue
Risk-Based Capital Proposal
The board of directors of the Federal Deposit Insurance Corporation
agreed on March 31 to issue for pub­
lic comment a risk-based capital pro­
posal that redefines primary capital,
assigns risk weights to on-balance
sheet assets and certain off-balance
sheet items, and lays the ground­
work for establishing a minimum
risk-based capital ratio.

How would you like to build consumer loan volume
successfully for ten years — without a single loss?
It can be done... with support from Insured Credit
Services. In fact, since 1954 ICS has helped nearly
2,000 financial institutions successfully build highly
profitable consumer credit operations. By providing
default insurance protection on property improve­
ment and home equity loans and secured revolving
lines of credit, ICS has taken all the risk out of this
lucrative lending business.
Now you can move aggressively in these con­
sumer lending fields without worrying about the
safety of a single loan — secured or unsecured!
Find out how ICS can provide you with a
competitive advantage in this exciting field.
To receive a copy of our new brochure contact
William F. Schumann, President at 312/621-9400.

IN C.-

Write or call to receive
your copy today.

307 N. Michigan Ave., Chicago, IL 60601 • 312/621-9400
Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1987


Strategies for the 90s:

Prepare for the Challenge of Tomorrow
1987 A n n ua l

Illinois Bankers
Association Convention
June 10-12
Peoria C ivic C enter




P re s id e n t

V ice P re sid e n t

Exec. V ice Pres.

HE 1987 Annual Convention of the Illinois Bank­
ers Association will be held June 10-12 at the Civic
Center in Peoria. Presiding over the gathering will be
IB A President Charles E. Waterman, chairman and
CEO, South Holland Trust & Savings Bank. Other of­
ficers of the IBA are Vice President—Jack A. Em­
mons, president and CEO, Security Bank & Trust Co.,
Mt. Carmel; Executive Vice President—William J.
Hocter, Chicago; Secretary—Wilbur D. Meadows,
president and CEO, National Bank of Canton, and
Treasurer—Richard K. Ostrum, president, Uptown
National Bank, Chicago.
Senator John Tower (R-Tex.), chairman of the Tower
Commission, will be keynote speaker. Dr. Michael L.
Mussa, member of the Council of Economic Advisers,
will comment on economic change in the financial in­
dustry. Dr. Peter G. Hanson, author of The J o y o f
Stress: H o w to L iv e W ell P a st 100 will discuss stress
as a positive force.
An exciting new feature of the convention will be the
appearance via satellite of Senator Alan J. Dixon and
FDIC Chairman L. William Seidman. The two will take
questions from the convention floor.
Six workshops will be offered, including two on new
programs from Illinois BancService Corporation. A
panel presentation, “ Banking Leadership Assembly,”
will also be conducted.
The spouses’ program features excellent tours, craft
workshops, shopping, and health programs. The high­
light will be luncheon speaker Maggie Scarf, author of


Banker, May, 1987
Federal Reserve Bank of St. Louis

In tim ate Partners: P atterns in L o v e in Marriage, a cur­

rent best-seller.
The complete program schedule follows:
Wednesday, June 10
12:00 Convention registration—cash bar & luncheon
1:30 Convention Workshops:
A —MBHC Mergers & Acquisitions
B —IBC Deferred Compensation Program
C—Changes in Customer Behavior & Technolo­
3:15 Convention Workshops:
D —Portfolio Strategies & A/L Management
E —IBC Quality of Service System
F—Interstate Banking & Deregulation
4:30 Exhibits open.
5:00 Complimentary welcoming reception.
Thursday, June 11
8:00 Complimentary continental breakfast, conven­
tion registration, exhibits open.
8:45 “ N ational S ecu rity and the R ole o f
Congress” —the Hon. John Tower, U.S. Sena­
“ Think Strategically, Plan Competitively and
Implement Intensely” —Peter Johnson.
“ Federal Legislation: The Search for Competitive Equality” —Mark Olson.











A B A Leadership Conference Election.
11:30 Special BAN KPAC Reception (byinvitation
11:45 Cash bar & luncheon buffet.
12:00 50 Year Club Luncheon.
12:30 Spouses’ Luncheon—“ Intimate Partners: Patterns in Love and Marriage’ ’—Maggie Scarf.
2:00 Second General Session
“ Banking Leadership Assem bly” —IB A Pres.
Charles E. Waterman, IB A Board Members,
Wilbur Meadows & Howard Bell, Members of
IB A Committees on Community Banks and
MBHC and Facilitators Eileen Friars and Rob­
ert Hedges of the MAC group.
6:00 Banquet reception.
7:00 Banquet—comedian David Frye, John and
Donald Mills of the Mills Bros., Moonlight
Serenade Big Band Orchestra.

Friday, June 12
7:30 Complimentary breakfast (by ticket only).
8:00 Convention registration, exhibits open, compli­
mentary continental breakfast.
8:45 Third General Session
“ The Impact of Economic Changes within the
Financial Industry— the View from Washing­
ton” —Dr. Michael L. Mussa.
9:30 “ The Washington Legislative and Regulatory
Agenda” —The Hon. Alan J. Dixon (D-Ill.),
U.S. Senator, and The Hon. L. William Seidman, chmn. of the FDIC.
10:30 “ The Joy of Stress” —Dr. Peter G. Hanson.
11:15 IB A annual meeting and election of officers.
11:30 Cash bar reception.
12:00 Convention luncheon—“ Growth and Adjust­
ment in the U.S. Econom y” —John Naisbitt.
2:00 Adjournment.

• You Will See Them at the Annual
Illinois Bankers Convention
HE follow in g m etropolitan
bankers and service and equip­
ment dealers have indicated that
they will be attending the annual
convention of the Illinois Bankers
Association in Peoria on June 10- 12 .



American National Bank: Phil
Pierchala, vice president; Dennis
Reher, second vice president; Bob
^ Regnerus, second vice president;
Scott Danahey, correspondent bank­
ing officer; Bob Wissier, correspon­
dent banking officer; Peter Hilton,
correspondent banking officer; Kurt
^ Undestad, investment officer; Marc
Nelson, correspondent banking offi­
cer; Craig Grannon, second vice
Continental Bank: Zed S. Francis,
0 III, vice president; Catherine A.
Schulze, vice president.
LaSalle National Bank: Peter
McGuire, vice president; Wayne
Bismark, vice president; Del Rogers,
# vice president; Dick Moline, vice
president; Jeff Bowden, vice presi
Federal Reserve Bank of St. Louis

dent; Therese Kammholtz, assistant
vice president; Barbara Winter, as­
sistant vice president; Tom Nelson,
loan officer.
Northern Trust Company: David
W. Fox, vice chairman; John V.N.
McClure, senior vice president;
Michael L. Kubacki, vice president;
Mark A. Short, commercial banking
Davenport Bank & Trust: Michael
Bauer, first vice president; David
Howell, correspondent banking offi­
cer; John Oliger, correspondent
banking representative; Barry Rich­
ards, vice president/correspondent
banking; James Perkins, correspon­
dent officer; Glen Piotter, first vice
president; James K. Figge, office of
the president; Thomas K. Figge, of­
fice of the president; John Schricker,
first vice president; Robert Lenertz,
James Shrader and Richard Horst,
senior vice presidents.

Kansas City
Missouri Bancshares:

Matt Grzybinski, Jack Kuebel, Phil
Bank Equipment and Other Firms
Modern Banking Systems, Inc.,
Omaha, Neb.: Mike Reynolds, re­
gional manager; Leo Stavas, senior
sales representative.
Nortridge Software, Freeport, 111.:
Tracy Davis, Kirk Nortridge, sales

EVP N am ed in Skokie
Gerald R. Hawk has been named
executive vice president of Skokie
Trust & Savings
Bank. In his new
p o s itio n , M r.
Hawk will be re­
sponsible for the
operation of the
corporate bank­
ing division. He
was previously
employed by La­
Salle National
Bank as vice
(Turn to page 47, please)
Northwestern Banker, May, 1987

Some things have to change
At Marquette Bank Minneapolis, we feel
some things should endure.
Pride in a job well done. A high standard of
performance. A tradition of excellence.
These are the foundations of Marquette’s
Correspondent Services Division.
And it s h o w s . . . in our ability to pinpoint
and analyze your problems and oppor­
tunities. Our w illingness to roll up our
sleeves, to work w ith you, to deliver all the

resources of a billion dollar bank to help
you meet the challenges of today, and
Technologies and services change, but our
attitude hasn’t. Because Marquette Bank
M inneapolis w ill never put aside our oldest
promise to our custom ers: professional
service w ith a personal difference.

Marquette Bank

Member FDIC

Correspondent Services Division
Federal Reserve Bank of St. Louis


“In Transition”
97th Annual
Minnesota Bankers
Association Convention
June 8-9
M a rrio tt C ity C enter H otel
M in n e a p o lis




P re s id e n t

1st V ice P re sid e n t

2nd V ice P re sid e n t



T re a s u re r

Exec. V ice Pres.

i t I N Transition” is the very appropriate theme of





I this year’s Minnesota Bankers Association 97 th
Annual Convention, June 8-9. Not only is banking in
transition, but the convention format has been
changed, condensed to two days and therefore requir­
ing less of a time commitmjent from busy bankers. A
new fee structure has been designed to encourage
multiple participation from each bank: $160 for the
first registrant and $120 for each additional (including
spouses). The convention will be held at the Marriott
City Center Hotel in downtown Minneapolis.
Featured speakers include Mark W. Olson, A B A
president; Tom Brokaw, NBC News anchorman; Hugh
Sidey, Washington editor for Tim e magazine; Harvey
Golub, CEO of Investors Diversified Services, Minnea­
polis, and John J. Detterick, president of Sears Con­
sumer Finance Company.
Presiding over the convention will be M B A Presi­
dent Roy Terwilliger, president, Suburban National
Bank, Eden Prairie. He has been assisted this past
year by First Vice President James R. Jorstad, presi­
Federal Reserve Bank of St. Louis

dent, Citizens State Bank, Hay field; Second Vice
President A. William Sands, chairman, Western Bank,
St. Paul; Treasurer R. James Gesell, president,
Cherokee State Bank, St. Paul, and Executive Vice
President Truman L. Jeffers.
The complete convention program follows:
Monday, June 8
7:30 Men’s Golf Tournament—Hazeltine National
Golf Club, Chaska and Dellwood Hills Golf
Club, Dellwood.
Women’s Golf Tournament—Lafayette Coun­
try Club, Minnetonka Beach.
11:00 Tennis Tournament—Interlachen Country
Club, Edina.
12:00 Spouses Hospitality Center open.
1:30 Spouses special activities—shopping at Cal­
houn Square; cooking class — The Kitchen
2:15 General Session.
Northwestern Banker, May, 1987


Minnesota News





Convention call to order—M B A Pres. Roy Terwilliger.
Opening ceremony.
Address—Mark W. Olson, pres., ABA , pres.,
Security State Bank, Fergus Falls.
Bankers response to economic development—
William Sands, chmn., M B A Rural Economic
Development Task Force; chmn., Western
Bank, St. Paul.
Legislative analysis and summary—Truman L.
Jeffers, M BA e.v.p.
4:40 Economic Development Special Interest Ses­
sions—The Banker’s Role in Economic Devel­
opment; Tools Available for Economic Devel­
opment; The M B A Pilot Economic Develop­
ment Project.
6:00 First Night Hospitality—hosted by Minnesota
correspondent banks.
Tuesday, June 9
7:30 Fellowship breakfast—John Bell Wilson and
Tom Tipton.
9:00 Spouses Hospitality Center open.
9:00 General Session.


LaSalle National Bank: Wayne
Bismark, vice president; Peter
McGuire, vice president.
Marquette Bank: Ralph Nelson,
vice president; Dick Holmes, assis­
tant vice president; Jo Ann Hinnenthal, assistant vice president; Min­
nie Schroeder.
Norwest Bank, N.A.: James
Campbell, president; John Sampson,
senior vice president; Robert Ras­
mussen, Stan Peterson and Gene

Banker, May, 1987
Federal Reserve Bank of St. Louis


Address—Tom Brokaw, anchor, NBC News.
Nominating Committee report and election of­
ficers. A B A state meeting and election.
10:45 Special Interest S essions—P rodu ctivity;
Beyond the Basics: Consumer Marketing Stra­
tegies; Negotiation To Win; Loan Review and
Risk Rating.
12:15 All convention luncheon—“ Transition in the
Presidency” —Hugh Sidey, Washington ed.,
Time Magazine.
12:15 Pioneer and past officers luncheon—Installa­
tion of 50 year bankers.
2:00 General Session
M BA Treasurer’s Report.
“ IDS and Sears — Tell It Like It Is” —Harvey
Golub, CEO, Investors Diversified Services,
Minneapolis. John J. Detterick, pres., Sears
Consumer Finance Co.
2:30 Spouses fashion show.
3:30 Special Interest Sessions (see 10:45 a.m.)
6:00 All Convention Reception.
7:00 Annual Banquet—Installation of 1987-88
M B A officers; The Paul and Linda Show.
10:30 Convention adjournment.

You Will See Them at the 97th Annual
Minnesota Bankers Convention
HE follow in g m etropolitan
bankers and service and equip­
ment dealers have indicated they
will be attending the 97th annual
convention of the Minnesota Bank­
ers Association in Minneapolis on
June 8-10.


Herold, vice presidents; Mike Bodeen, Bill Meyer, Ross Buffington,
Larry Lange, Lloyd Simms, John
Slifer, Lennie Kaufman and Edge
Jackson, assistant vice presidents;
George Evers, community banking
officer; Tony Mailhot, community
banking representative.
Norwest Corporation: Richard
Kovacevich, vice chairman; Dick
Erickson, vice president.
Norwest Investment Services,
Inc.: John McCune and Tim Skildum, senior vice presidents; Jim
Holker and Ted Taney, vice
presidents; Bill Bracken, Tom
Gormley and Dave Butterwick, as­
sistant vice presidents.
Norwest Electronic Delivery Ser­
vices: John Sikkink, president; Bill
Brewer and Phil Benson, vice

Norwest Technical Services: Mike
Ruane, vice president; Marlene
Wright and John Reynolds, sales
St. Paul
American National Bank: J.R.
Kingman, III, James W. Reagan,
Donald R. Lindeman, Julie B. Boljanovich, John P. Seidel, Debra A.
Maeurer, Robert W. Jacobson,
James A. Russell, Tom Olander,
Craig Mueller, William J. Carlson,
Bill Langford, Bob Rosenberg.
Bank Equipment and Other Firms
Modern Computer Systems,
Omaha, Neb.: Ron Ingersol, presi­
dent; Tom Harrington, sales repre­
sentative; Gene Wesely, sales repre­
sentative; Dan Kesky, sales repre­
North Central Companies, St.
Paul: Roland Allen, vice president;
Jim Allen, regional manager; Keith
Falconer, regional manager; Ron
Peterson, regional manager; Dick
Stengrim, vice president.


Marquette Bank Minneapolis has
created a new division dedicated to
the purchase of loan participations
from other local, regional and na­
tional financial institutions. James
D. LaBreche was appointed vice
president of the division.
The new unit, Business Services
Division III, was formed to provide
the bank with a new source of quali­
ty loans. It will work in concert with
the bank’s two other commercial
lending groups.
Marquette Bank has also an­
nounced the following appointments
in its newly formed Business & Con­
sumer Services Group:
Jerry Gates was named group
vice president. He will be respon­
sible for the bank’s three business
services divisions. He will also over­
see the executive financial services
division, cash management and in­
ternational banking.
Marcia Hanson was named group
vice president with responsibility
for consumer banking, consumer
lending, m arketing and IR A /
Jeri Slinger was named group vice
president with responsibility for
credit administration, loan adminis­
tration and operations.
Meanwhile, Thomas Korsman has
been appointed corporate trust offi­
cer. He will be responsible for bond
trusteeships, escrows and paying
agencies. Mr. Korsman previously
served as trust officer in the cor­
porate trust division of First Bank
* * *
Gerald H. Thole has been elected
president of First Bank Security, St.
Paul. He succeeds Rodell L. Hofland, who has been elected president
of First Bank Grand, St. Paul. Mr.
Holland’s predecessor at First Bank
Federal Reserve Bank of St. Louis

Grand, David A. Zelinsky, has as­
sumed new duties as southeast con­
sumer market manager for the
metropolitan area First Banks.



Mr. Thole most recently served as
vice president, small business divi­
sion, at First Bank St. Paul. He has
been with First Bank System since
1973. Mr. Hofland joined First
Banks in 1967, and served in many
capacities including as president of
First Bank Northfield.
* * *
American National Bank of St.
Paul has announced that Lowell S.
Gillem has joined
the bank as vice
president—com ­
pensation and
employment. He
has spent the
past five years
as an indepen­
dent human re­
source con su l­
tant. He has also
worked in a vari­
ety of human resource functions at
Pillsbury, Gould, Inc., Honeywell,
and Dow Chemical.
* * *

August 1. The new chapter will
maintain the traditions of these pre­
vious Twin Cities chapters that
trace their history back to the early
1900’s and will be among the largest
AIB chapters in the country.
Chairman of the Minnesota Metro
AIB will be Dennis Williams, president/CEO, New Hope State Bank.
President will be Timothy Macke,
president/CEO, Liberty State Bank.
* * *
Victor P. Reim, chief executive of­
ficer and chairman of the board of


m m û ï »o î o 1



State Bank in
St. Paul, has an­
nounced the ap­
p o in tm e n t o f
Dean W. Ander­
son as assistant
vice president in
the bank’s mort­
gage lending de­
partment. Mr.
A nderson was
previously senior loan officer with
Washington Federal Savings in
* * *

Norwest Corporation has an­
nounced the appointment of David
M. Ryan as di­
rector of arts
program for the
new N o rw e s t
C en ter,
under construc­
tion in down­
town Minneapo­
lis. He will be
responsible for
the acquisition
The American Institute of Bank­ and commission­
ing chapters in Minneapolis and St. ing of works of art to be installed in
Paul have announced the formation
of a new organization, to be known MINNESOTA NEWS. . .
as Minnesota Metro AIB, effective (Turn to page 48, please)
Northwestein Banker, May, 1987
Federal Reserve Bank of St. Louis


N o w ’s the tim e to p re p a re fo r the n ew w ave o f
c o m p e titio n in b a n k in g — w ith a u to m a te d se rv ice s fr o m
First W isco n sin .
W e o ffe r fle x ib le system s that m e e t y o u r m a rk et’s
d em a n d s. B a ck e d by s e rv ic e p ro fe ssio n a ls alw ays th ere
w h en y o u n e e d th em .
Y o u gain b etter in fo rm a tio n fo r b etter d e cis io n s .
Im p ro v e d e m p lo y e e p rod u ctiv ity . A n d
the to o ls y o u n e e d to c o m p e te .
T h e natural result is p r o fit­
a b le ban kin g.
D is c o v e r the system s that
cu ltiva te su cce ss. C all First
W iscon sin today at (414) 765-4459.


© F W C 1986
Federal Reserve Bank of St. Louis


PILOT PROJECT sponsored by the Minnesota
Bankers Association is assisting the town of A t­
water, Minn., to formulate its own economic develop­
ment program. The success of that test venture led
M B A leaders last month to officially form a new subsi­
diary, the Minnesota Bankers Development Corpora­
tion. Its goal will be to work with member banks in
spearheading economic development efforts in other
Minnesota communities.
The Atwater pilot project was undertaken in Janu­
ary, 1987, by the M B A ’s Rural Economic Develop­
ment Task Force, a 13-member group of bankers from
around the state. It is chaired by A. William Sands,
chairman of Western Bank, St. Paul. One of the Task
Force members is Suzanne Meyerson, president of the
$13 million assets Atwater State Bank, who is de­
scribed by Mr. Sands as “ energetic and capable.’ ’ Her
community was selected for the pilot program in late
1986 and she introduced the plan in January to the A t­
water city council.
Atwater is a town of 1,100 residents just 81 miles
due west of Minneapolis. Speaking of that community
and its banker-leader, Mr. Sands said, “ It’s a one bank
town, she’s the banker, and she cares a lot about it.’ ’
Mrs. Meyerson took her enthusiasm for the pilot
project, which she helped formulate, to the Atwater
city council in January and action developed rapidly.
She outlined the M B A ’s proposal, which was to pro­
vide at no cost to Atwater the services of a Minneapo­
lis-based consulting firm of Conner & Imsland Associ­
ates, who specialize in economic consulting.
After listening to her positive presentation, council
members accepted the offer. On January 21 and 22,
members of Atwater’s business community and
government met with consultants Don Imsland and
Dick Conner. The entire group evaluated the area’s
business climate, economic structure and plans for the


Banker, May, 1987
Federal Reserve Bank of St. Louis

Suzanne reports that “ The agenda for the meetings
was very general. The consultants wanted to meet a
variety of people from the community.’ ’ The meetings
concentrated on identifying the assets and needs of the
city. The A tw a te r H erald reported that the sessions
“ produced positive feelings for the participants.’ ’
A week later, the consultants met with 30 Atwater
residents to discuss a broad range of economic issues.
Subsequent meetings have continued on a monthly
basis and are open to the public.
During a telephone interview, Suzanne Meyerson
told the N orthwestern B anker that the pilot project
in Atwater “ is moving along well. Lots of things are in
the works. There is always a tendency to think we’re
moving too slow, so we must realize that in a small
town we must have patience. However, while making
every effort to develop a number of options, there are
five areas where we are already active:
“ 1. We were able to convince the Town Council and
the Chamber of Commerce to hire a paid, part-time
coordinator who works essentially under the Council,
but has an office and telephone provided by the Chamber. That part-time position is funded jointly by the
Council and the Chamber, and that person is in touch
constantly with all facets of the town’s life.
“ 2. The City Council is looking at a site for a Civic
Center. We have an architect in town who has volunteered his services for drawing plans.
“ 3. The Atwater Development Association, which is
incorporated, is looking at converting to a non-profit
organization or, perhaps, establishing a non-profit firm
alongside the present association. An attorney is looking into this for us at this time. In the meantime, we
are busy recruiting new members from the local com­
“ 4. Historic preservation is a big item with us. Our
downtown area has lots of turn-of-the-century buildings, including our hotel, the Atwater Inn, which is on









Minnesota News

the Historic Buildings registry. Although none of the
upstairs rooms currently are being used, it houses a
restaurant. We are exploring the idea of trying to
designate an entire block as a historical district, or
perhaps have the Council declare it to be a Preserva­
tion District.
“ Our bank very likely would offer financing for such
projects, but these efforts are so new that we’re not yet
at the stage where we can muke such decisions. We
want to develop a local chapter of the County
Historical Society.
“ The A tw a te r Herald, for instance, which is moving
its main offices to the town of Spicer by May 1, will
keep a satellite news office in its building here, but it is
leaving behind in the news building here a lot of an­
tique printing equipment and plans to restore it and
establish a museum at this location. Our interest is not
only preserving this heritage, but also in developing
“ 5. We have also established an Improvement Com­
mittee, which is concentrating on painting and freshen­
ing up buildings and private homes alike. We are tak­
ing advantage of an offcer from Valspar Paint Co. of
Minneapolis, which will supply paint to communities
for just this purpose, and we’ve applied for 200 gallons
of the paint.
“ 6 . Right now we have area farmers and main street
people working together to learn anything they can
that will help farmers be more profitable on the farm.
Our goal is to help develop some on-site farm enter­
prises that will augment income, rather than the usual
path of trying to develop off-farm jobs for farmers.”
In reflecting on these initial efforts, and the more
time-consuming long-range study being undertaken in
the Atwater pilot project, Suzanne Meyerson stated,
“ What we’re seeing in small towns is the desire to sta­
bilize the town. But most small town banks have a
high ag risk in their loan portfolio, so local develop­
ment helps diversification. The goal of our whole effort
is for bankers to become involved in their communi­
Mr. Sands commented, “ We want the community
and the local banker to feel ownership of the plan.
W e’re here as a resource. We intend that the plan be

Suzanne Meyerson, p re s id e n t o f A tw a te r S ta te B ank, he lp e d fo r ­
m u la te th e p ilo t e c o n o m ic p ro g ra m .
Federal Reserve Bank of St. Louis


directed to long-term job creation, not a quick-fix solu­
tion to economic problems.”
Encouraged by the reception of the pilot project by
Atwater leaders, and sensing the opportunity to help
Minnesota communities to project a positive image
while developing community survival and growth
plans, the M B A acknowledged the early results of the
Atwater pilot program by forming in early March its
Minnesota Bankers Development Corporation.

“ MBA is making a major, on-going
com assure the economic
strength of all of Minnesota.”
This non-profit corporation will coordinate the A t­
water program and identify other communities where
similar projects would be helpful. The MBDC charter
will provide local bankers with information and re­
sources that will enhance their role as leaders in local
economic development. It will help them and their
communities to identify strengths and weaknesses, to
discover ways to improve the local economy, assist
existing business in expansion, examine ways to at­
tract new jobs, and identify sources of capital.
Roy W. Terwilliger, president of the M B A and presi­
dent of Suburban National Bank in Eden Prairie, said,
“ M BA is making a major, ongoing commitment to the
economy throughout Minnesota. We are currently
focusing on rural Minnesota, but our long-term objec­
tive is to assure the economic strength of all of Min­
nesota. ” .
In addition to Mr. Sands and Mrs. Meyerson, the
M BA Rural Economic Development Task Force mem­
bers are:
• Jim Mirehouse, First Bank System, Minneapolis.
• Douglas F. Bultman, president and CEO, MinnWest
Bank Redwood Falls, Redwood Falls.
• Robert Burk, president and CEO, Merchants &
Miners State Bank, Hibbing.
• Arthur Espeland, president and CEO, First National
Bank, Henning.
• Robert F. Foley, president and CEO, Citizens State
Bank, Roseau.
• Richard E. Gandrud, president and CEO, Pope Coun­
ty State Bank, Glenwood.
• Ronald V. Johnson, president and CEO, First Na­
tional Bank, Jackson.
• Kenneth E. Just, president and CEO, First National
Bank, Barnesville.
• James G. Sneer, president and CEO, Farmers State
Bank, Mountain Lake.
• William H. Zabel, president and CEO, Peoples State
Bank, Plainview.
Truman L. Jeffers, M BA executive vice president,
commented, “ The development corporation will be
located with the M BA in Minneapolis. Although it’s
not official yet, we want to call it the Minnesota Bank­
ers Enterprise Network.” He emphasized that the
M BA would not duplicate efforts of other public or pri­
vate organizations involved in economic development.
A meeting to elect a board of directors was held April
23, the first step to get the corporation operational.
The new corporation will be a subsidiary of the
MBA, which has 715 member banks.
Northwestern Banker, May, 1987


Minnesota News

Elected in Dodge Center
Philip D. Johnson has been
elected president and chairman of
the b oa rd o f
N orw est Bank
D odge Center.
He previou sly
served as senior
vice president/
ad m in istration
N o rw e s t
Bank Austin.
John N ovot­
ny, vice presiP.D. JOHNSON
lending at Norwest Bank Rochester,
had been serving as interim man­
ager of the Dodge Center bank since
the first of the year. He is relocating
to Columbus, Neb.
Mr. Johnson began his banking
career at Citizens First National
Bank, Princeton, 111., in 1974.

Elected in Edina
John D. McDonald has been
elected president of First Bank Edi­
na. He succeeds H. Scott Hutton,
who has assumed new duties as
manager of the southwest consumer
market for the metropolitan First
Mr. McDonald has been associ­

ated with First Bank System since
1959. He has held various lending
positions, and served most recently
as senior vice president, small busi­
ness division, at First Bank Southdale.

Changes Told in Mt. Iron
Three officer changes have been
announced by Mountain Iron First
State Bank of Mountain Iron. Carol
E. Kangas has been elected cashier.
She has served at the bank for 16
years, most recently as assistant
vice president. Steven C. Nelson has
joined the bank as assistant vice
president. He formerly was loan offi­
cer at First Bank Minnesota in Vir­
ginia. Oliver O. Forstrom has an­
nounced his resignation from the
board, having served for 42 years as
a director. He retired as the bank’s
vice president and cashier in 1977.

Architect Visits Owatonna
Cesar Pelli, former dean of the
Yale School of Architecture and the
architect of the Norwest Center in
downtown Minneapolis, recently
visited the Norwest Bank of Owa­
tonna, which was designed by Louis
Sullivan in 1908. Mr. Sullivan is
often referred to as “ the Father of
Modern American Architecture,’ ’
and the Owatonna bank is among
his most admired buildings. Mr.
Pelli is pictured with Lloyd P.
Johnson, Norwest Corporation’ s
chairman and chief executive officer.

Added in St. Cloud
Mark Januscha and Beth Atwood
have joined Zapp National Bank, St.
Cloud. Mr. Januscha, who previous­
ly worked with Pueringer Distribut­
ing, Inc., will be commercial loan of­
ficer. Ms. Atwood will serve as
junior auditor.

Mora Bank Remodeled

Mr. Pelli praised the building,
which he has studied since he grew
up in Argentina. “ There’s a special
pleasure in re-encountering this
jewel of the prairie,” he said.
“ Everytime you see something like
this it affects what you will do after­
The building was designated a na­
tional historic landmark in 1976.

Appointed in Montevideo

PEOPLES N a tio n a l B ank o f M o ra is c u rre n tly in th e fin a l s ta g e s o f a m a jo r re m o d e lin g p ro ­
je c t w h ic h s ta rte d in S e p te m b e r o f 1986. A fe a tu re o f th e re m o d e lin g is a 42 by 6 fo o t
p a in te d m u ra l d e p ic tin g lo c a l la n d m a rk s . The m u ra l is lo c a te d b e h in d th e te lle r w in d o w s ,
and w a s p a in te d by an a rtis t fro m S a u k R a p id s, M in n . O th e r in te rio r re m o d e lin g in c lu d e d
new o ffic e s , a c u s to m e r se rvice area, new re c e p tio n a re a and in s ta lla tio n o f a new v a u lt
d o o r and sa fe . A n open h o u se is b e in g p la n n e d fo r M ay.

Banker, May, 1987
Federal Reserve Bank of St. Louis

First National Bank in Monte­
video has announced the appoint­
ment of John
Klaman as vice
president—com ­
mercial loan offi­
cer. He brings
nine years exper­
ience in commer­
cial, real estate
and installment
lending. He pre­
viously served
as senior vice
president at First Wyoming Bank in
Riverton. Prior to that he was a loan
officer at Northwest Bank in Bis­
marck, N. Dak.


IRA coordinator. Ms. LeMere has
been with Valley for the past three
years, most recently as an assistant
trust officer at the Oshkosh loca­

Central Wis. to Acquire
Bank of Plover

Elected in Menomonie
Gene A. Haberman has been
elected president and chief executive
officer of Valley Bank, Menomonie.
He has 20 years of banking experi­
ence in the Minneapolis-St. Paul
area, primarily with Norwest Corpo­
ration and most recently with Mar­
quette Bank. Mr. Haberman suc­
ceeds Calvin H. Beals, who an­
nounced his resignation in Decem­

ages the residential mortgage loan
operation. Patricia R. Coriden was
elected trust officer. She joined First

(Continued from page 37)

w Promoted in Eau Claire






A t First W isconsin National
Bank, Eau Claire, five officer promo­
tions have been
Elected vice
presidents were
Thomas E. Saffert, Jean M.
P e te rs o n and
Thomas P. Tay­
lor. Mr. Saffert
joined First Wisc o n s in — R ic e
Lake in 1976,
where he most recently served as
vice president of the business bank­
ing department. Ms. Peterson joined
First Wisconsin in 1970 and has
managed the business development
department since 1983. Her new du­
ties will also include marketing. Mr.
Taylor joined the bank in 1979 as a
trust officer and most recently
served as assistant vice president.




Denise E. Gilchrist was promoted
to assistant vice president. She
joined the bank in 1985 and man­
Federal Reserve Bank of St. Louis

Central Wisconsin Bankshares,
Inc., a multi-bank holding company
headquartered in Wausau, and the
Bank of Plover have announced that
sufficient acceptances have been re­
ceived for the holding company to
proceed with acquiring a controlling
interest in the bank.
This acquisition brings the total
banking affiliates of Central Wiscon­
sin Bankshares, Inc. to 14,with 29
bank locations and assets of approx­
imately $750 million.



Wisconsin in 1985 as a trust admin­
istrator responsible for personal
trusts and employee benefit plans.

Named in Madison
James J. Mueller and Richard J.
Walters have been named vice presi­
dents of Valley Trust Company,
Mr. Mueller will manage the em­
ployee benefits and corporate trust
services division. He has been with
Valley Trust for one year, most re­
cently as an assistant vice president.
Mr. Walters will be responsible
for sales and marketing of personal
trust services. He joined Valley
Trust in 1986. Prior to that he was
an assistant vice president with
Marine Trust, Milwaukee.
Carolyn P. Hawks has been
named trust officer and is respon­
sible for the administration of em­
ployee benefits. Prior to her associa­
tion with Valley, she was employee
benefits administrator with the
trust department of American Trust
& Savings Bank, Dubuque, la.
Cheryl Teal has been promoted to
assistant trust officer. She has been
with Valley for the past seven years,
most recently as trust administra­

Named in Oshkosh
Mary Beth LeMere has been
named trust officer at Valley Trust
Company, Oshkosh. She is also the

Cole Taylor Creates
New Image for Banks
Cole Taylor Financial Group, a
multi-bank holding company with
assets over $1 billion which is head­
quartered in Northbrook, is estab­
lishing a new identity. All eight loca­
tions of the five member banks that
comprise the group have adopted a
uniform image that will be repre­
sented on letterhead and signage.
The campaign is intended to help
the public recognize the association
of each bank with the holding com­
pany. For this purpose the banks
have been renamed. The Main Bank
in Wheeling and Chicago will now be
Cole Taylor Bank/Main; Drovers
Bank of Chicago will be Cole Taylor/
Drovers; Skokie Trust & Savings
Bank will be Cole Taylor Bank/
Skokie; Ford City Bank & Trust
Company will be Cole Taylor Bank/
Ford City, and Bank of Yorktown
will be Cole Taylor Bank/Yorktown.
An extensive advertising cam­
paign will reinforce the new corpo­
rate identity. The Cole Taylor logo
in red and black will be used consis­
tently by all banks, along with the
slogan “ The People with the Per­
sonal Touch.”
In celebration of the campaign,
Cole Taylor is sponsoring a scholar­
ship contest for young artists in
each bank’s community. Children
ages 8 to 14 may compete and win­
ners will receive a scholarship to en­
roll in the School of the Arts Insti­
tute’s Study Program.
Northwestern Banker, May, 1987


(Continued from page 41)

Promoted in Sioux Falls
Norwest Bank South Dakota,
N.A., Sioux Falls, has announced
the promotion of Leonard Dankey to
assistant vice president, business
banking. He joined Norwest in
Sioux Falls in 1978 and since has
served at the Westwood branch and
the downtown branch, where he
most recently held the title of busi­
ness banking officer.

Elected in Sioux Falls
Recently elected to the South
Dakota regional staff of First Bank
of South Dakota, Sioux Falls, were
Marshall A. MacKay, vice president

Interstate Banking
Bill Passed
On March 6 , Wyoming Governor
Sullivan signed into law HB 1 6 4 Interstate Banking, which goes into
effect May 22 . This bill is a nation­
wide, non-reciprocal interstate bank­
ing bill which would allow an out-ofstate financial institution to acquire
an in-state financial institution
which has been chartered to do busi­
ness in the State of Wyoming for at
least three years. The bill also pro­
vides that if an in-state financial in­
stitution is in danger of being
closed, the state examiner shall give
preference to any in-state financial
institution desiring to acquire that
institution. It also includes a prohi­
bition on non-bank banks.
Meanwhile, SF 257 failed in the
early part of the session. This
Wyoming Bankers Association bill

Banker, May, 1987
Federal Reserve Bank of St. Louis

and cashier, and Paul C. Livermore,
financial analyst. Mr. M acKay
joined the staff in 1984 as vice presi­
dent and regional operations admin­
istrator. Mr. Livermore joined the
bank in 1985 in the finance and con­
trol area, having previously served
as a project control analyst with
Citibank—South Dakota.

Elected in Lemmon
L. Bruce Birkeland has been
elected loan officer at First Bank
Lemmon. He joined First Bank Sys­
tem in April, 1986 as a loan special­
ist with FBS Credit Services, Inc. in
Rapid City.

would have created a central filing
system for financing statements on
farm products, to comply with Sec­
tion 1324 of the Food Security Act
of 1985.
SF 185, which would authorize
the Secretary of State to conduct a
study regarding the development of
such a filing system, did pass, how­
ever. The Secretary of State shall
provide a report to the governor and
legislature no later than January 1,
1988, with recommendations for a
The Wyoming Legislature also
passed a bill which would establish a
procedure for voluntary mediation
of disputes between farmers or
ranchers and their creditors. It
would require that the creditor noti­
fy the borrower of the availability of
mediation services when starting
any foreclosure proceedings.


Norwest office and semi-public
areas. He will also oversee rotating
art exhibitions in the lobby and ^
schedule lectures, musical presenta­
tions and other performing arts.
Mr. Ryan has 23 years museum
experience, including as director of
the Des Moines Art Center and the £
Fort Worth Art Museum, and cura­
tor of exhibitions with the Minnea­
polis Institute of Arts.
* * *
Thomas A. Hayden, a vice president and director of Allison-Williams Company,
has been elected
senior vice presi­
dent and direc­
tor. Mr. Hayden
joined AllisonWilliams Com­
pany in 1981 in
municipal sales.
Allison-W illiams
is located in the
IDS Center in
* * *


Marquette-Holm Insurance Agen­
cy, Inc. Minneapolis, has announced
the appointment
of Rollie John­
son as vice presi­
dent-sales. Mr.
Johnson has an
extensive back­
ground in the in­
su ra n ce
banking indus­
tries, and joins
the agency from
his most recent
position as president and managing
officer of American Insurance Agen­
cy of Edina.



Norwest Capital Resources has
expanded its Norwest Horizon fami­
ly of comprehensive, standardized
employee benefit plans for custo­
mers to include pension and profit £
sharing plans.
The Norwest Horizon Money Pur­
chase Pension Plan is designed for
companies who wish to contribute a
pre-determined amount toward their £
employees’ retirement. The Norwest
Horizon Profit Sharing Plan is de­
signed for companies who wish to
contribute to their employees’ re­
tirement, based on a specific percen- £
tage of the company’s profits.


86th Annual
Colorado Bankers
Association Convention

Colorado Banking:
Safe, Sound, Secure








P re s id e n t

P re s id e n t-E le c t

Exec. V ice Pres.

HE 86 th Annual Convention of the Colorado Bank­
ers Association will be held this year on June 3-6 at
the Broadmoor Hotel in Colorado Springs. The theme
“ Colorado Banking: Safe, Sound, Secure” recognizes
Colorado’s proud banking history and reaffirms the
association’s commitment to the future.
CBA President A.J. “ Tony” Anderson, president,
Kiowa State Bank, Kiowa, will preside over the con­
vention. President-Elect is Jon Coates, chairman, Cen­
tury Bank of Denver. Also speaking at the convention
will be CBA Executive Vice President Don A. Childears.
The complete program follows:
Wednesday, June 3
4:00- Registration.


Thursday, June 4
8:00 Registration.





June 3-6
Broadmoor Hotel
Colorado Springs

Fun Run
Men’s Mixer Golf
Women’s Mixer Golf
Skeet & Trap Shoot
6:00 Western night.
7:00 Dinner.
Entertainment: “ Timothy P. & Rural Route
Friday, June 5
7:00 Central Bank of Denver breakfast.
8:30 Registration.
9:00 Business session:
Federal Reserve Bank of St. Louis

Opening ceremonies.
President’s address: A.J. Anderson, CBA
pres., pres., Kiowa State Bank.
Election & installation of CBA officers.
Address: Mark W. Olson, A B A pres., pres.,
Security State Bank, Fergus Falls, Minn.
Management report: Don A. Childears, CBA
10:30 “ Think Tank” Sessions:
Loan Review and Closing, Loan Workouts,
Small Businesses, Compensating Your Sales
Force, Mountain Banks Insurance Services,
Tax Planning, Public Funds and Credit
Unions, Asset Liability Management, A g
11:45 Luncheon. Address: Bob Murphey, atty. &
counselor, Nacogdoches, Tex.
2:00 “ Think Tank” Sessions.
6:00 Cocktails.
7:00 Dinner.
Entertainment: Pianist Roger Williams.
Saturday, June 5
7:30 Continental breakfast, Peer Group Sharing
9:00 Business Session:
Jon Coates, CBA pres.-elect, chmn., Century
Bank of Denver.
Address: John Cassis, pres., SecondWind,
Wheaton, 111.
Election of Colorado delegate to A B A Banking
Leadership Conference.
CBA resolutions & bylaws amendments.
Address: Jack Whittle, Whittle & Hanks,
Chicago, 111.
12:00 Adjourn.
Northwestern Banker, May, 1987


Colorado News

You Will See Them at the 86th Annual
Colorado Bankers Convention
HE follow in g m etropolitan
bankers and service and equip­
ment dealers have indicated they
will be attending the 86 th annual
convention of the Colorado Bankers
Association in Colorado Springs on
June 3-6.


Central Bank of Denver: William
Perry, president, Central Bank,
Colorado Springs; John Bush, gen­
eral counsel, Central Bancorporation; Diane Sweeney, correspondent
banking officer; Richard McElroy,
vice president; William Tumelty,
vice president—correspondent bank-

ing; Eric Anderssen, correspondent
banking officer.
Kansas City
United Missouri Bancshares:
Dick Muir, Jeff Goble, Mark Bailey.
Bank Equipment and Other Firms
Central States Health & Life,
Omaha, Neb.: Pat Keirges, regional
vice president; Judy Straayer, Colo­
rado regional manager.
Modern Banking Systems,
Omaha: Gary Moore, president;
Frank Stearnes, senior sales repre­
sentative; Tom Lahti, vice presi­

United Banks Acquires IntraWest
On March 27 the Federal Reserve
Board approved United Banks of
Colorado, Inc.’s application to ac­
quire IntraWest Financial Corpora­
tion. Following approval by the
Comptroller, the anti-trust division
of the Justice Department has 30
days to comment on the mergers.
Per the agreement signed in July
of last year, United Banks will issue
up to 4,320 shares of its common
stock in exchange for all IntraWest
common stock, which is an exchange
rate of .7234 of a share of United
Banks’ stock for each share of IntraW est’s.
As part of its application, United
Banks agreed to sell its banks in
Montrose and Steamboat Springs
because the combined banks would
have exceeded market share maximums allowed by Justice Depart­
ment guidelines. United Bank of
Steamboat Springs will be pur­
chased by a company associated
with the Western Industrial Bank
located in Steam boat Springs.
United Bank of Montrose will be ac­
quired by a group of investors in
At year-end, United Banks had
assets of more than $4.8 billion with
32 banks and several non-banking
subsidiaries. IntraWest had assets
of $ 1.2 billion with 16 banks and
several non-banking subsidiaries.
The conversion of IntraWest
banks to United Banks’ data pro­
cessing and operational systems
began in April. Customers of Intra
Banker, May, 1987
Federal Reserve Bank of St. Louis

West are receiving information
about the schedule of bank conver­
sions and how their accounts will be
On April 10, United Banks of
Colorado, Inc. filed application with
the Comptroller of the Currency to
merge banks in three Colorado com­
munities. The banks being merged
are located in Fort Collins (south),
Greeley, and the Southwest Plaza
area of Denver.
Once the mergers have been ap­
proved, the names of the merged
banks and their senior managers will
United Bank of Fort Collins—
South: David E. Bailey, chairman
and CEO; David B. Hill, president.
United Bank of Greeley—Royce
B. Clark, chairman and CEO; Leroy
Leavitt, president.
United Bank of Southwest Plaza —
Kyle McClaugherty, chairman and
CEO; Jean Naylor, president.
United Banks intends to file ap­
plication to merge the banks in
Boulder as soon as certain opera­
tional issues are resolved, according
to N. Berne Hart, chairman and
CEO of United Banks. Until applica­
tion is filed and approved, Paul
Troyer will serve as chairman and
CEO and Larry Meyer as president
of both IntraWest Bank of Boulder
and United Bank of Boulder. After
the merger, they will continue in
their respective positions at the one

Changes Told in Denver


At United Bank of Denver, Patri­
cia P. Holmes has been named vice
president, Ronald C. Logue has been
named assistant vice president and ^
Gary B. Lutz was promoted to com­
mercial banking officer.
A cash management product
manager, Ms. Holmes has been with
the bank since 1972. Mr. Logue q
joined the bank in 1979 and is cur­
rently manager of the funds transfer
department. Mr. Lutz also works in
cash management and joined the
bank in 1984.
In addition, George S. Ansell and
Kermit L. Darkey have been elected
to the board of directors of United
Bank of Denver. Mr. Ansell has
worked in higher education most of q
his career and has been president of
the Colorado School of Mines since
1984. Mr. Darkey is president of the
Rocky Mountain Employers CounU i, JU1C.

CNB Announces Changes
Colorado National Bank has an­
nounced numerous staff changes.
Rebecca H. Cordes and Carol A.
McLaughlin have been elected assis­
tant vice presidents of Colorado Na­
tional Bankshares, Inc., Denver.
Ms. Cordes joined the organization ’
in 1982 as a senior auditor and was
then promoted to audit manager.
Ms. McLaughlin also joined Bankshares in 1982 as a staff auditor and (
is currently responsible for manag­
ing the EDP audit functions of the
corporation. Christine Denton has
been elected an accounting officer.
She joined the company in 1985 as a (
financial analyst and currently
supervises the financial reporting
At Colorado National Bank—Ex­
change, Colorado Springs, Dr. Wil- (
liam M. Stone has been elected vice
president and marketing director.
He recently retired as a lieutenant
colonel with the U.S. Air Force. His
last assignment was as chief of long ,
range planning on the air staff at the
At Colorado National B a n k Evergreen, Elizabeth (Penny) Haw­
kins has been elected a vice presi­
dent. She joined the bank in 1984 as
a loan administrator and is current-

(Turn to page 51, please)


first obtains the written consent of
the borrower. This written consent
can be obtained at the time the loan
is made, so banks may wish to revise
their loan documents, states Mon­
tana Bankers Association Executive
Vice President John T. Cadby.

First Refusal Bill Passed
Deer Lodge Bank Fails


The Federal Deposit Insurance
Corp. for the first time has handled a
bank failure without assuming the
bulk of the institution’s problem
The transaction was promoted by
the failure April 9 of Deer Lodge
Bank and Trust Co., a $13.6 milliondeposit bank in Deer Lodge. Peoples
Bank of Deer Lodge, N.A., a newlychartered subsidiary of Sandquist
Corp. of Bozeman, Mont., purchased
most of the failed bank’s assets at a
The assets, carrying a book value
of $12.7 million, were acquired for
about $10.8 million, a 15% discount.
The FDIC will retain assets of the
failed bank with a book value of
about $ 2.1 million. These assets had
“ enough legal questions surrounding them that we wouldn’t have
wanted an assuming institution to
take them,’ ’ said an FDIC spokes­
man, Alan Whitney.
“ The transaction will result in a
substantially lower cost to the


(Continued from page 50)










ly responsible for commercial loans
and marketing. Peter Neumann has
been elected a lending officer. He
began his career with the bank in
1983 as an assistant loan adminis­
trator. Debra K. Edgar has been
elected a banking officer, and is re­
sponsible for customer service, stu­
dent loans, and Visa. She joined the
bank in 1983.
Jodi Smith has been elected an
assistant vice president of Colorado
N a tio n a l B ank —A u r o ra . She
started with the bank in 1982 and is
responsible for marketing and teller,
new accounts and bankcard func­
Laura V. Fick has been elected an
assistant vice president at Colorado
N ational B ank—Arapahoe. She
joined the bank in 1976 and is re­
Federal Reserve Bank of St. Louis

FDIC than if these assets were held
and liquidated in receivership,’’ the
agency said.
Mr. Whitney added that “ there
will be other cases where we are con­
fident we will be able to convey all of
the assets of a failed bank to an
assuming institution.’ ’
This new policy is intended to cut
the agency’s liquidation costs and
keep more assets in the private sec­
tor. The FDIC is already in control
of about $12 billion in assets from

Lending Law Passed
The recent passage of HB-499
means lenders will be prohibited
from using or disclosing information
relative to a contract of insurance re­
quired by the credit transaction for
the purpose of replacing such insur­
ance without the prior written con­
sent of the borrower.
If a bank owns an insurance agen­
cy, the bank may not disclose this
information to its agency unless it

sponsible for operations.
Nathan J. Palmquist has been
elected cashier of Colorado National
Bank—South, Denver. He began his
banking career in 1982 with the
First Bank Holding Company and
joined CNB of Denver in 1983.
At Colorado National B a n k Boulevard, Denver, Christine L.
Dixon has been elected a total bank­
ing officer. She joined the bank in
1985 and is currently responsible for
customer service, account analysis
and personnel scheduling.
Donald D. Kirkwood, a Fleming
area farmer, has been elected a direc­
tor of Colorado National Bank—
Roger W. Ayan, Jr., has been
elected an assistant vice president of
Colorado National Leasing, Denver.
He joined the company in 1984 and

SB-142 has become law, and re­
quires a bank acquiring foreclosed
agricultural land to offer to sell the
land, or any portion, to the immedi­
ately preceding owner for the same
price offered by a third party. This
offer is required only the first time
the property is sold.
The Montana Bankers Associa­
tion was successful in limiting the
right of first refusal only to fore­
closures occuring between now and
June 30, 1991. The bill will automa­
tically die in four years unless ex­
tended in the 1989 or 1990 sessions.
If the bank chooses to lease the
property, the immediately preceding
owner must also be given right of
first refusal except that once the
preceding owner fails to meet the
terms of a lease offer, the right to
meet future offers is extinguished.
The right of first refusal to pur­
chase or lease applies to any fore­
closed agricultural land held by the
bank for up to five years. Therefore
it is valid until June 30, 1996.
Complete information regarding
the new law is available from the

is responsible for lease administra­

Appointed in Englewood
First Interstate Bank of Engle­
wood, N.A., has appointed Jon Han­
son as commercial loan officer. Mr.
Hanson has a B.A. in business ad­
ministration from South Methodist
University in Dallas.

Elected in Denver
Robert L. Albin and William J.
Keller have been elected to the board
of directors of Central Bancorporation, Inc., and CCB, Inc., Denver.
Mr. Albin is president of Robert L.
Albin Management Consultants.
Mr. Keller is president of Asphalt
Paving Co., and has also served on
Central Bank of Denver’s board of
directors for six years.
Northwestern Banker, May, 1987


William March


We’re the people who have been
Robert E. Roh

Exec. Vice President

presenting orchids to the ladies at the
Nebraska Bankers convention for
over 30 years. We’ll be doing it again
this year. And our tradition for profes­
sional service goes on, too. We are

Patrick H. Rensch

Sr. Vice President

Nebraska’s most experienced home-

Micky Krupinsky


owned firm dealing exclusively in taxexempt securities. Our people have
been providing you with expert finan­
cial advice for more than 40 years.
Chuck Poore

Sr. Vice President

We’re the MBU Professionals!

John Trecek


Mike Bruster

Bill Abts


Vice President

Municipal Bond Underwriters, Inc.
In v e s tm e n t B a n k e rs •

U n d e rw rite rs

2 0 8 S o u th 1 9 th S tre e t, O m a h a , N e b ra s k a 6 8 1 0 2
(4 0 2 ) 3 4 1 -1 1 4 4

In Nebraska Call Toll Free (800) 642-4413

Member of the Securities Investor Protection Corporation
Federal Reserve Bank of St. Louis


“Turning Ideas Into Action”
The 90th Annual
Nebraska Bankers
Association Convention
M ay 14-16
C o m h u s k e r H otel
L in c o ln




P re s id e n t

P re s id e n t-E le c t

Exec. V ice Pres.

HE 90th Annual Convention of the Nebraska
Bankers Association will be held May 14-16 at the
Cornhusker Hotel in Lincoln. This year’s theme is
“ Turning Ideas Into Action: Education. Motivation.
Speakers scheduled include management expert Dr.
Thomas W. Faranda; Donald G. Ogilvie, executive vice
president of the American Bankers Association; Cynthia Hardin Milligan, director of the Nebraska Depart­
ment of Banking & Finance; playfulness trainer Ritch
Davidson of Playfair, Inc.; J. Thomas Madden, senior
vice president of Federated Investors, Inc.; Judge
Samuel Van Pelt, director of Nebraska Judicial College
and president of Judicial Arbitration, Inc.; business
analyst Jack Jackson, and Michael Reagan, son of
President Reagan. Featured entertainers will be the
Osmond Brothers.
Presiding over this year’s convention will be President C.G. “ Kelly” Holthus, president and CEO, First
National Bank of York. He will be succeeded in that of­
fice by Donald E. Blaha, president, First National
Bank, Ord. N BA Executive Vice President is Stan






Federal Reserve Bank of St. Louis


Matzke, Jr.
The complete convention program follows:
Thursday, May 14
8:00 Registration opens.
NBISCO board of directors meeting.
9:00 Executive council meeting.
12:00 VIP luncheon.
1:30 Networks board of directors meeting.
3:00 Past president’s meeting.
4:30 Trade show opening hospitality reception.
6:00 NBA correspondent banks’ annual hospitality
Friday, May 15
8:00 Registration desk open.
8:15 Trade show breakfast.
9:00 Grand opening of the 90th annual conven­
tion—Mr. Kelly Holthus, NBA pres.



Northwestern Banker, May, 1987


Nebraska News

9:15 “ Ten Commitments to Excellence’ ’ —Dr.
Thomas W. Faranda, pres., Faranda & Assoc.
10:15 “ Turning Ideas Into Action A t the National
Level” —Donald G. Ogilvie, A B A e.v.p.
10:45 “ Moving Forward” —Cynthia Hardin Milli­
gan, dir., Neb. Dept, of Banking and Finance.
11:15 Trade show break.
11:45 Luncheon—“ Putting Fun To Work: The Power
of Humor in Management” —Ritch Davidson,
Playfair, Inc., s.v.p.
1:30 “ The Economy & Financial Market” —J.
Thomas Madden, Federated Investors, Inc.,
2:15 “ Conflict Resolution In A Depressed Farm
Econom y” —Judge Sam Van Pelt, dir., Neb.
Judicial College.

2:45 “ Challenge of Change in the Banking Indus­
try” —Jack Jackson, chmn., Jack Jackson &
3:30 N BA annual meeting; N etworks annual meet­
4:30 Trade show break.
Executive council meeting.
6:00 NBA President’s Reception.
6:45 NBA President’s Banquet.
8:30 The Osmond Brothers.
10:30 Larry Gomez & Brotherhood—reception &
Saturday, May 16
AM .
8:30 NBA annual awards program.
Breakfast—A Morning With Michael Reagan.
Awards ceremony—Governor Kay Orr.

You Will See Them at the 85th Annual
Nebraska Bankers Convention
HE follow in g m etropolitan
bankers and service and equip­
ment dealers have indicated that
they will be attending the annual
convention of the Nebraska Bankers
Association in Lincoln on May


Des Moines
Norwest Card Services: Darryl
Hansen, president.
Kansas City
United Missouri Bancshares:
Dick Muir, Jeff Goble, Alan Sack,
Mark Bailey.
First National Lincoln: Gary
Bieck, vice president and manager;
Steven Anderson, vice president;
Marvin Hefti, vice president; Char­
les Greenway, vice president; Mark
Hahn, vice president; Charles Ellis,
operations officer; David Luckey, ag
inspector; Kathryn Barker, assis­
tant vice president; Dan Black,
Banker, May, 1987
Federal Reserve Bank of St. Louis

Craig Engelage and Betsy Crowley,
agriculture and financial institu­
tions representatives.
Norwest Bank, N.A.: John Samp­
son, senior vice president.
Norwest Technical Services: John
Reynolds, sales representative.
FirsTier Bank Omaha: Richard
Yesnowski, vice president; Gary
Parker, vice president; James Allen,
vice president.
First National Bank of Omaha:
Bruce R. Lauritzen, president; F.
Phillips Giltner, vice chairman; Den­
nis A. O ’Neal, executive vice presi­
dent; J. William Henry, executive
vice president; H. Frederick Kuehl,
vice president; Thomas H. Jensen,
ag loan officer; James P. Bonham,
vice president; Gerald J. Tomka,
second vice president.
Norwest Bank Nebraska, N.A.:
John R. Cochran, chairman and
CEO and regional president, Nor­

west Corporation; Charles Undlin,
president; Howard Nielsen, vice
president; Wally Landon and Sam
O’Neil, financial institutions offi- 0
cers; Debbie Delgado, financial insti­
tutions operations officer; James J.
Free, client executive.
Bank Equipment and Other Firms
Central States Health & Life, Lincoin: John Benson, assistant vice
president; Margaret Donovan, re­
gional manager; Brenda Frey, re­
gional manager.
Kansas Bankers Surety Com­
pany, Topeka, Kan.: Don Towle,
president; Dave Abendroth, vice
MABSCO Agricultural Services,
Inc., Des Moines, la.: Jeffrey J. Rodman, vice president marketing and
product development.
MBU, Inc., Omaha: Robert E.
Roh, executive vice president.
Modern Banking Systems, Inc.,
Omaha: Mike Reynolds, regional
manager; Bill Pierce, regional man­
ager; Kevin McCormick, senior sales
representative; Greg Shimonek,
sales representative.
North Central Companies, St.
Paul, Minn.: Russ Eng, regional
manager; Dennis Zea, regional man­
ager; Bob Mundy, general agent;
Pat McQuillan, general agent.












Our Reputation Is
OnThe Line.

We’re known as a bank that performs. In fact, the average annual growth rate o f
the after-tax earnings o f First National Bank o f Omaha* is 15%. And 85% o f that goes
back into the bank for better services and products.
We’re proud o f our solid growth. And proud to serve you— and assure you —
with our strength, financial expertise and experience.
Few institutions offer you what we can in performance and stability. Wouldn’t
you rather trust your money to the people who have a reputation for sound financial
In 1986, we achieved $11 million plus in earnings. That’s why we’re proud o f
our name.

* First National of Nebr., inc.

No Wonder They Call Us First.

firs! n a N o n a l b a n k

of omaha
Member FDIC
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis






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•iS. •*, 'is- , ’ ,

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Here To Serve You Well
FirsTier Bank Omaha and FirsTier Bank Lincoln are a
dominant financial force throughout the heartland. We
know this area and its people. That’s why we’re the
institutions to turn to for help with your own needs, or
when serving the needs of your customers.
As a memberofthe $2 billion FirsTier Financial group,
we offer the experience, expertise and financial strength
that few can match. And we mean business for those
we serve.
Count on us to serve you well.

F irs T ie r B an ks


In Nebraska: 800-642-9305
Outside Nebraska: 800-228-9175

In Nebraska: 800-742-7462

FirsTier Bank, N.A., Omaha and FirsTier Bank, N.A., Lincoln, Members FDIC
Federal Reserve Bank of St. Louis


Named in Bellevue
Carol A. Volenec has been named
vice president of Affiliated Midwest
B an cs,
In c .,
B ellevu e. She
was also named
a s s o c ia t e
member of Affiliated’ s execu­
tive committee.
M s.
V o le n e c
joined the orga­
nization in 1974
C h a irm a n
John H. Becker’s
executive secretary

Recent Applications Filed
The American National Corpora­
tion has announced that Paul H.
A lb r e c h t has
been elected se­
nior vice presi­
dent and chief
operating officer
of b o th
th e
H om e
S ta te
Bank and Trust
Co., Humboldt,
and The Dawson
Bank, Dawson.
M r. A lb r e c h t
previously served as the president of
the Otoe County National Bank &
Trust Co., Nebraska City.

Bank of Nebraska, Omaha, has
announced that Patrick J. McPher­
son has joined
the bank as se­
nior vice presi­
d e n t.
M r.
McPherson has
twenty years of
banking experi­
ence. He is a
g ra d u a te
Creighton Uni­
versity and has
p. m c p h e r s o n
attended numer­
ous banking schools, including the
University of Colorado School of


An application has been filed with
the Office of the Comptroller of the
Currency to consolidate the Scottsbluff National Bank & Trust Co. and ^
Western National Bank of Scottsbluff.
The Bank of the Midlands, Papillion, has filed an application with
the Nebraska Department of Bank- ^
ing to relocate its main facility from
104 E. Gold Coast Road to 1402 S.
The Department of Banking has
also received an application from ^
Cornhusker Bank, Lincoln, to estab­
lish a branch facility at 1600 N. Cotner.

Seven Honored in Kearney


Kearney State Bank and Trust
Company, Kearney, recently hon- •
ored seven employees for their years
of service. They are: Carolyn Menke,
Sue McNeal, Kim Sheldon, Terri
Kitt, Cynthia Rafferty, Vickie
Hands and Ron Canfield.

MAY 14-17

United States Check Book Company
In Nebraska Call 402-345-3162 Out of State Call WATS Line 1-800-228-9246

Northwestern Banker, May, 1987
Federal Reserve Bank of St. Louis

Elected in Milford
Farmers and Merchants Bank,
Milford, has announced the election
of two new directors. They are D.D.
(Bud) Riblett, vice president and
loan guaranty officer of the bank,
and Judy Eicher, vice president of
Home State Bank, Beaver Crossing.
Mr. Riblett was formerly with the
Farmers Home A dm inistration
state office in Lincoln, where he
served for 32 years prior to joining
F&M Bank two years ago.




Nebraska News


NBA Executive Councilmen See
Economie Upswing Beginning
EM BERS of the Nebraska being put on the market. The prices
Bankers Association Execuare reduced some 40% from the high
w tive Council commented on signs of
values we witnessed about six years
improvement throughout the state ago.
economic scene over the past year.
The Calamus Dam project con­
While admitting troubled times are tinues to employ many local people.
^ not over, council members are more The dam construction itself is com­
w optimistic than ever. These bankers pleted, but canal construction will
were invited to analyze business and continue for several more years. The
farm conditions in their areas for work has begun on all camp grounds
this special report. Their comments and a fish hatchery is to be com­
¿it follow:
pleted by 1991 and located right
below the dam.
Our bank has continued a steady
growth pattern and we are now in
the process of adding on and re­
modeling our branch office in Sar­
gent. We will now have a drive-up
First National Bank
window and drive-up ATM for our
customers in the area.
Even though economic conditions
# P ROPERTY values are showing have been less than desirable, the
■ signs of stabilizing at current stabilizing effect is encouraging. We
levels, which is a
continue our optimistic outlook for
r e d u c t io n
Ord, Sargent and the surrounding
some 75% from
|| levels seen a few
years ago. There
continues to be a
lot of farm real
President and Chairman
estate on the
First Westside Bank
0 market with a
small number of
sales. We are
seeing very few
EBRASKA, not unlike other
farm sales compared to one year
agriculturally oriented states,
# ago. Most of our customers showed continues to be
profits in 1986, unless their debt
in a highly trans­
load was excessive. We expect very
itional period in
little demand for farm operational
h is to r y .
loans in 1987, because the income
state is steadily
# from government programs is stag­ m o v in g aw ay
gered throughout the year.
from one that is
Residential real estate in Ord is
dom in a ted by
selling exceptionally well. Last fall
a gricu ltu re to
there was an excessive number of
one that is more
# newer houses on the market, but
diversified. This
most of these have been sold within
is evidenced by
the past thirty days. There are sev­ the significant changes that have oc­
eral lower priced houses for sale but
curred in the state’s employment
very few, if any, newer ones for sale base over the last twenty years.
® or rent. There were several newer
Nonagricultural employment has
houses sold within thirty days or
risen 42.7 percent while employment


Federal Reserve Bank of St. Louis

in agriculture has declined 33.5 per­
cent. The composition of employ­
ment has shifted primarily toward
services with the largest increases
occurring in finance, insurance and
real estate sectors.
As a result of the above metamor­
phosis, Nebraska is at a pivotal
point in its development. Citizens of
the state, both urban and rural,
must recognize this fact and work
together to create an economic en­
vironment to attract and retain
business that will promote growth.
Evidence of this cooperation is sur­
facing in the current legislature.
Assuming the proposed tax and eco­
nomic development bills are passed,
the state has taken a giant step in
the right direction.
Provided the appropriate legisla­
tion is in place, the Omaha economy
should reflect stable to moderate
growth in the forthcoming year, and
then be positioned for a more expan­
sive growth thereafter. Without
favorable legislation, Omaha is de­
stined to have a stable, at best,
economy or even a declining one
with loss of additional m ajor
Initiative 300 continues to be an
albatross around the neck of the
state. Growth in the agricultural
product manufacturing has been
negatively impacted by this law.
Many manufacturers have deferred
locating in Nebraska due to the in­
ability to acquire land sufficient to
guarantee adequate product for
their production facilities. Until this
law is repealed or drastically modi­
fied, the manufacturing of agricul­
tural based products will be signifi­
cantly impeded.
In conclusion, given favorable leg­
islation to encourage economic
growth, the outlook for Nebraska in
general and Omaha, in particular, is
relatively optimistic. The favorable
outlook could be further enhanced
by elimination or alteration of Ini­
tiative 300.
Northwestern Banker, May, 1987


Nebraska News

York State Bank & Trust Co.
HE general ag and business con­
ditions after 1986 in our area
seem to be above
average for most
of the state of
Nebraska. 1986
was generally a
better year than
1985 for most of
our customers.
In the ag sec­
tor, we have
seen, hopefully,
the bottom of
land prices and recent sales, at least
in York County, have indicated a
firmness in their values. There are
areas to the south and southeast of
York County which still have not
seen any increase in land value, and
primarily because of being non-irrigated farmground or grassland. The
general commodity price in 1986
was not sufficient, but with the gov­
ernment programs, we have seen
farm borrowers able to have some
reductions in their outstanding
There is no question that in the ag
sector anyone with a heavy debt
load is still going to have a struggle
in being able to retain their total
farm situation for 1987. We have not
seen any great complications or in­
ability for farmers in our area to ob­
tain their 1987 operating loans. It
would be my feeling that the crises
has come to an end in our area, and
that we are still several years away
from good times, whatever that
might be described to be.
The business climate in York
County is good, but we also recog­
nize that sitting on the intersection
of Interstate 80 and Highway 81
gives us an unusual advantage over
part of the area that I serve. We
have seen good business growth and
good profitablity in our retail stores
and businesses in York County.
Some smaller towns to the south
and southeast of us have not shared
in this same increase in business in
1986 because they are totally depen­
dent upon the ag sector and spend­
ing there still is very slow, and in
some cases, non-existant. I would
assume that businesses in smaller
towns in our part of the state will
still struggle to survive in 1987,


Northwestern Banker, May, 1987
Federal Reserve Bank of St. Louis

even though they possibly have seen
a “ bottoming out” of the economy
in their area.
Probably the biggest thing that
will effect us as bankers in our area
is the ability to get good solid loans
to keep the income level of our banks
where it should be to rebuild the
capital and recoup some of the losses
of the last two to three years. We are
finding good loans difficult to find
but we have been participating in
new ag credits and financing the
ones that were on our books for
Generally, I would say that there
is some optimism showing up for
1987, but it is guarded at this time.

Senior Executive Vice President
FirsTier Bank
CONOMISTS report that real
output and employment in Neb­
raska in 1986
was up an esti­
mated 1% over
the p reced in g
year. Most of the
expansion occur­
red during the
first and second
quarters of 1986
with the last half
of the year hav­
ing closely ap­
proximated the average growth re­
ported for 1985. Forecasts indicate
that if the national economy ex­
pands throughout 1987, Nebraska
will record a gain comparable to that
experienced in 1986, and if the na­
tional economy falls into a recession
during the year, Nebraska’s econo­
my will likely record a decrease in
real output of around 1%. Certainly,
the prospects for 1987 will depend
largely on the performance of the
state’s largest single industry, agri­
From our perspective, the overall
financial condition of the agricul­
tural sector with which we are fami­
liar stabilized or possibly improved
slightly during the past year. This
was attributable to factors that in­
cluded the restructuring of debt at
more favorable terms, largely
through the Farm Credit System;
weather conditions that were condu­
cive to relatively high per acre crop


yields; reduced feed costs for cattle^
feeders and other livestock produ­
cers; subsidies that were extended
to those who participated in the Fed­
eral farm programs; and, the em­
ployment, by an increased number®
of farmers, of greatly improved man­
agement practices directed at con­
trolling costs.
It is indeed gratifying to note th a t^
more Nebraska farmers are entering®
1987 in a stronger financial position
than was the case a year ago. A t the
same time, the fact that surpluses of
agricultural commodities are m ount-^
ing not only in the United States but
also in a growing number of other
nations throughout the world can­
not be ignored as we look to the fu­
ture of agriculture and rural Am eri-^
ca in the years ahead. Contrary tow
the past when U.S. agriculture went
through cyclical changes based on
the worldwide supply and demand
for commodities, with surplus pro-^
duction growing throughout much
of the world, there is every indica­
tion that U.S. agriculture is facing
the challenge of adapting to struc­
tural change that is destined t o ^
result in the ultimate elimination of
both small and marginal operators
and an overall reduction in the
amount of land under production.
Obviously, the transition over th e#
next few years will be a painful ex­
perience but one that can’t be
avoided in view of the capacity of
the agricultural communities in our
nation and others to produce beyond#
worldwide needs.
Along with agriculture, rural com­
munities are also facing the chal­
lenge of adapting to structural
change. The number of businesses®
that have closed their doors in Neb­
raska continued to grow during
1986 thus reducing employment op­
portunities in many rural commu­
nities and shrinking the tax base#
that local governmental subdivi­
sions rely on for most of their sup­
port. Although many of the remain­
ing businesses in rural communities
reported satisfactory returns in #
1986, in many instances there is
reason to be concerned about their
future as their tax burden to support
local governmental subdivisions in­
creases further.
Where Omaha, Lincoln and some
of the other larger communities in
Nebraska are concerned, business
conditions in 1986 were somewhat
better than during the prior year#
with indications growth in 1987 will

Nebraska News

£ probably parallel that experienced
in 1986.

Cornhusker Bank
S a representative of Group 8
for the Nebraska Bankers Asso­
ciation E xecu ­
tive Council, I
1 rep resen t ten
banks in the Lin­
coln area. Lin­
coln has a popu­
lation of 185,000
' in 1985, and con­
tinues to grow at
a p p ro x im a te ly
2 % per year. It
is my impression
that the growth of the metropolitan
areas in agricultural states is in part
due to the exodus of people in
smaller communities seeking jobs.
Lincoln is fortunate in having only a
3 .6 % unemployment rate. It is inter­
esting to note in our local paper that
there are eight columns of job oppor­
tunities. The usual complaint is
that the vast majority of these job
opportunities are at the lower end of
the pay scale. In a University com­
munity such as Lincoln, often times
individuals find themselves taking
jobs for which they are over quali­
Opportunities to work in Lincoln
have provided needed assistance for
farm wives or family members in the
surrounding farming area. The off
farm income provides for basic fami­
ly needs and enhances their ability
to survive this period of high costs
and low prices for farm commodi­
ties. Perhaps some good things are
happening in retiring marginal land,
and a greater awareness of the need
for conservation practices in a sus­
tainable agricultural environment.
Lincoln has 1205 housing starts
for 1986, and there is a continued
upward trend in new construction
over the last five years. 1982, for ex­
ample, showed only 219 housing
starts and this was a very difficult
time for contractors. The banks in
Lincoln were all profitable in 1986,
and seem optimistic about the pros­
pects for 1987. We are working
together to build a strong economy
in Lincoln and if anything, the com-

plaint from local bankers is that loan
demand is not sufficiently high. An­
nouncements of expansion by Bank­
ers Life, Harris Laboratory, Good­
year, Mid America Webpress, Carol
Wright, and I SCO, provided encour­
agement that the Lincoln market
will remain strong and that mean­
ingful work opportunities will be

Federal Reserve Bank of St. Louis

Wauneta Falls Bank
HERE does seem to be a stabi­
lizing process taking place in
agriculture, at
least in this area,
but we feel that
is largely due to
the farm pro­
gram. The live­
stock situation
has helped of
course but who
knows how long
that will last.
We also don’t
know how long the farm program
will last, at least as it’s presently
constituted, and if that is dropped
we feel that the stabilizing that is
taking effect now would stop almost
The land values in the area seem
to have stabilized also and there is a
lot of activity now of local people
buying farm ground. This farm
ground doesn’t really cash flow on a
stand alone basis but in most cases
neighbors are buying this ground
and the ground does seem to fit very
well into their existing operations.
I found no one that felt it was
easy to be optimistic about much of
anything today. The business cli­
mate in these little towns is doom
and gloom by and large. Most store
owners who are approaching retire­
ment age, if they don’t have a rela­
tive or son or daughter to run their
business, have no place to go with it
in terms of selling it. I think more
and more empty store fronts will be
the eventual outcome of our current
Of course the bankruptcies are on
the increase and that has a very
negative effect not only on banks
but communities and that will con­
tinue to happen. I don’t think we’ve


really begun to feel the impact of the
Chapter 12 situation or, for that
matter, bankruptcies in general.
Although, as I said earlier, we do
see some stablization in agriculture
it’s hard to determine what’s going
to happen that will turn this whole
current economic situation around.
Most rural communities will con­
tinue to suffer and will continue to
diminish in size and economic sta­
ture and there will continue to be
fewer and fewer reasons for young
people to stay in rural communities.


Commercial State Bank
HE consensus in Northeast Neb­
raska seems to be that 1986 was
a better year
than the two or
three previous
y e a rs .
M ost
parts of the eco­
nomy seem to
have more or
less stabilized.
Land appraisals
have not dropped
significantly in
the past year
and there seems to be more people
inquiring about purchasing real es­
tate. In our area more land has
changed ownership in the last six
months than in the past two years
and I am not speaking of land ac­
quired by banks, FmHA, Federal
Land Bank, etc.
Farm sales in our area seem to be
going much better than expected. I
don’t believe farmers are spending
large sums of money to buy new
machinery. They have learned to be
more conservative and will look for
machinery that fits their needs.
With the farm program and better
cattle and hog prices, many farmers
made a profit and paid some income
tax. They have also reduced bank
debt considerably as loan volume
continues low. The net worth of
many customers increased over a
year ago despite the fact that in
many cases machinery and real
estate values were lowered.
Business on main street goes as
the farm economy goes, and in visit-


Northwestern Banker, May, 1987


Nebraska News

ing with businessmen, they indicate
sales have been good and accounts
receivable are no larger and in some
cases better than a year ago.
All in all, I would say people have
a more positive attitude and are
somewhat optimistic about the
future. People have learned to make
changes and are able to live with
these changes.
I feel we are still in a critical
period of time but also feel we are
beginning to see a little light at the
end of the tunnel.

hope and prospects for real improve­
ment in the local agricultural eco­

President & C.E.O.
Norwest Bank Nebraska, N.A.

UR belief in Omaha and the outstate communities Norwest
serves is that
the economy has
improved in the
past year. The
Omaha economy
sh ow n
Vice Chairman
strength despite
American National Bank
flat employment
statistics, and
the economies of
ii ^ ^ A U T I O U S Optimism” pro- m ost outstate
bably best describes attitude c o m m u n i t i e s
in our area of the panhandle of west­ seem to be rebounding from the
problems of recent years.
ern Nebraska.
Jobs are the priority concern in
A combination of exceptionally
good wheat and other crop yields, Omaha now. Overall employment is
c o m b in e d
w ith
g o v e r n m e n t at approximately the same level as
payments and improved livestock one year ago, but the nature of the
prices, allowed most farmers to Omaha work force has changed. Re­
ductions in staff by three of the
show some improvement in 1986.
There have been some sales of dry city’s largest employers — Enron,
and irrigated farm land since the Northwestern Bell and Union Paci­
first of the year with dry land selling fic — have been offset by growth in
about 10 % over what most observ­ the insurance, technology and tele­
ers had expected. An area auctioneer marketing industries. There is con­
states that good farm machinery is cern about the source of future new
selling for approximately 20 % more jobs, although we are optimistic
that economic development propo­
than last year.
Most retailers felt 1986 was a lit­ sals now before the Legislature, if
tle better or at least as good as 1985. approved, will foster substantial fu­
Job openings and opportunities still ture job formation.
Retail sales in Omaha continue to
seem good, and anticipated con­
struction on the east interchange of show strength. Full year figures for
1-80 should provide additional em­ 1986 indicated real growth of rough­
ly 7% over 1985. Reports from lead­
ployment for the area.
Some success in drilling for oil in ing Omaha retailers indicate similar
the deeper pay zones has resulted in sales gains so far this year. Our out­
considerable leasing activity in the state locations and correspondent
area with some bonus payments of banks report that Main Street re­
$ 20.00 per acre for a five year lease tailers’ volume is picking up after
becoming quite common. The bonus weak sales for the past few years.
payments received in 1985 and 1986 This encourages us that the worst
have resulted in substantial cash problems in Nebraska’s agriculturebeing available for many farmers dependent communities are passing.
Our belief is that the agricultural
and land owners.
The large amount of grain in stor­ economy has shown significant im­
age, limited export potential and the provement in the past year. The
expectation of reduced government average farmers’ cash flow and pro­
payments, combined with somewhat fitability have improved in 1986 due
higher feed, fertilizer and other to the federal farm program, near­
operating expenses tend to dampen record crop production, and excel­

Banker, May, 1987
Federal Reserve Bank of St. Louis


lent livestock receipts. M any#
weakened and marginal producers
are returning to financial health,
although their continued recovery
depends on sustained low input
costs and a favorable federal farm#
This recovery is having positive
effects on the economies of the out­
state Nebraska communities we
serve. On the whole, Main Street#
business activity is up, real estate
prices seem to have stabilized, and
the downtowns of some communi­
ties are experiencing revitalization
of their retail sector with new own-#
ers and tenants. Our outstate bank­
ers note that while their economies
are not as strong by historical stan­
dards, they are in better shape than
at any time in the recent past.
The entire economic picture in
Nebraska has improved over the
past year. Further gains are ex­
pected in 1987, the magnitude of
which will be determined by the Leg ™
islature’s decisions on pending eco­
nomic development bills. We are
confident that 1987 will be a good
year for Nebraska as the agricul-^
tural economy regains strength and^
metropolitan Omaha continues to
exhibit moderate growth.

Springfield State Bank
ID-March-1987—Omaha Mar­
kets—Steers-$ 66 .00 —Heifers$63.00 —Butcher
H o g s -$ 5 0 .0 0 —
Sounds good!
Is g o o d , f or
those good man­
agers in farming
who have an on­
going livestock
enterprise. Espe­
cia lly feed in g
$1.50 corn. For cash grain farmers,
the ASCS programs are the only
game in town. Between commodity
loans and deficiency payments, agi
banking is entering the 1987 crop
year with more deposits in County
Banks and lower loan/ deposit ratios
than have been seen in many years.
Farmers’ cost of operation in 1986 1
were dramatically reduced by the



. I t a Product H ia t
M ost Correspondent
Banks O ffer Is
O bvious.

TBe Level O f
Com mitm ent I s
A Little H arder
To P icture.
Yet it’s your most important consideration
in establishing a correspondent banking
Recognizing this simple fact, NBC has
made a commitment to the correspondent
banking business that can’t be topped. That
means offering the individual services and
professional capabilities you expect.
It also means providing the kind of
innovative thinking and willingness to dig in
and find solutions that you have a right to
Now, more than ever, correspondent
banking holds a high priority at National Bank
of Commerce. And so do you.


National Bank o f Commerce

a ìèFirst C ommerce
Federal Reserve Bank of St. Louis


NBC Center / 13th & O / Lincoln, NE 68508
Phone (402) 472-4115 / MEMBER FDIC


Nebraska News

drop in petroleum prices. Have had
several farmers comment this win­
ter that fertilizer prices have come
down considerably. Herbicides and
pesticides prices should be consi­
derably less; possibly 40%; for 1987,
as most are a petroleum base or deri­
vative. Just read that “ a gallon of
Roundup is $25.00 less than in
1984,” (March 1987 Successful
Farming). I wonder how much lower
these chemicals could be priced if
the manufacturers cut out 50% of
their four color ads and 80% of their
T.V. and radio time?
The economists and farm land
realtors are saying that farm land
prices have hit bottom, and may be
starting to rise soon. It would ap­
pear they may be one or two years
early, given the market price of cash
grains and fixed cost of ownership of
farmland. There is no way land will
cash flow at today’s market price
and tax load, without being in gov­
ernment programs. When consider­
ing the future of these government
program s, and the effects of
“ Gramm-Rudman” and the general
attitude of the National Congress on
further “ farm subsidies,” it may be
two to three years before the low
point in farm land prices is reached.
Soil moisture is the best in many
years, going into planting season.
However, it’s been a strange winter
after an exceptionally wet fall in
Quote from auction service on re­
cent farm equipment sales: “ Good
equipment is selling at 20% above
prices last fall!”
Farmers Home Administration
office serving our area is demanding
specific consideration of “ Guaran­
teed Farm Operators Loan” and spe­
cific reasons for declining an appli­
cant. New tougher rules and regula­
tions evidently. Appears that
FmHA and ASCS programs are still
propping up some operators that
banks moved out of in past years.
Evidently FmHA office supervisors
have a hard time telling an operator
that he needs to have a sale, as many
bankers have had to advise the past
several years.
Business enterprises in smaller
towns, dependent upon the ag eco­
nomy, are certainly nothing to shout
about. With the 10 year sign-up to
take some land out of production,
additional stress may be evident, as
there will be less services and pro­
ducts needed to sustain those opera­
tions. This fact, coupled with the

Northwestern Banker, May, 1987
Federal Reserve Bank of St. Louis

surviving ag operators being more
efficient and average unit size in­
creasing means less and less num­
bers of customers for goods and ser­
The long range effect of all this
will be disappearance of some small
communities, along with churches,
schools and a compounding of the
tax revenue problem for counties.
The flip side of this, is that those
of us in, or close to, a metro area are
seeing many small business expan­
sions on a stable business base. Gen­
eral em ploym ent opportunities
available are mostly on a part-time
basis with no fringe benefits, as
most businesses are looking closely
at “ cost o f” employees; or in trades
that historically offer little or no
fringe benefits.
To sum up, 1987 will be another
year to be cautious and careful. A
great deal of the ag economy will be
affected by what is done, or not
done, in Washington; and the wea­
ther. Both of these elements are im­
possible to predict.

Elected in Hastings
Norman Nackerud has been
elected president and chief executive
officer of City National Bank and
Trust Company of Hastings. G ary#
L. Kruse was elected executive vice
president and senior loan officer.
The two men take the positions for­
merly held by Douglas Oakeson and
Max Callen, respectively, who r e #
cently resigned to join the invest­
ment banking firm of Smith Hayes.
Mr. Nackerud served as president
of Norwest Bank Hastings for 12
years. Mr. Kruse joins the bank#
from First National Bank of Kear­
ney, where he was senior vice presi­
dent and senior loan officer.

Appointed in Kearney

Ronald H. Bielenberg has been
appointed city executive in Charge of
th e
branch of Firs­
joined FirsTier
having previous­
ly served as ex­
Fremont Bank Purchased
First State Bank of Fremont has e c u t i v e
been purchased from FirsTier Bank
of Omaha by a group 11 investors chief administra­ R.H. BIELENBERG
from Fremont. They include bank tive officer at
president James H. Moore, Jr., Ron­ Platte Valley State Bank and Trust
ald D. Kranz, Dean Erickson, Dale Company of Kearney.
E. Olson, Ronald K. Rohrs, Neil W.
Schilke and M. Charles Strasberg.

Named in Trenton
At State Bank of Trenton, Tren­
ton, Julie Cox has been named
cashier. She formerly served the
bank as assistant cashier.

Joins NBA Staff
Ron Arrigo has joined the staff of
the Nebraska Bankers Association
as conference director. He succeeds
Marilyn Denison. Mr. Arrigo will be
a member of the NBA education de­
partment and will arrange confer­
ences and meetings as well as ad­
minister the N B A ’s videotape li­
Mr. Arrigo comes from Union
Bank of Lincoln, where he had been
customer service representative for
the past two years. He also has
served as a teller/bookkeeper at
West Gate Bank, Lincoln, and as
banquet director for the Lincoln
Elks Club 1980-85.

Elected in Platte Valley
Dwight B. Stewart has been
elected executive vice president of
Platte Valley State Bank & Trust#
Company. He previously served as
president and CEO of Hawkeye
Bank & Trust Co. in Grundy Center,
la. Prior to that he was vice presi­
dent at Houghton State Bank in #
Red Oak, la.

NBA Ads Run Statewide
In March, the Nebraska Bankers
Association began running ads in all
the state’s daily newspapers point­
ing out some of the differences be­
tween mutual funds and bank CDs.
The April ad by the NBA dealt with
the FDIC and emphasized no tax­
payer money funds the corporatior^
and banks must maintain high stan­
dards to merit FDIC coverage.

N e b raska N ew s


NBA president sees
positive factors for
banks and customers

B a n k e r interview with
President, Nebraska Bankers Association
President, First National Bank
York, Nebr.

orthw estern

“AMONG th e p o s itiv e s ig n s is th e re c e n t re p o rt on 1986 a nd i t ’s
in te re s tin g to see h o w N e b ra ska b a n k s have p ro g re s s e d .”

i i I SEE a dramatic change in the attitude of our
I Nebraska bankers from two years ago. While
most bankers will tell you they still have problems,
• th e y feel they are working out, and we’re confident
they will be back in stride in a couple of years.” That is
the personal assessment of the state of banking in Neb­
raska by C.G. “ Kelly” Holthus, president of the Neb_ raska Bankers Association during the past year. Mr.
•H olthus, who is also president of the First National
Bank in York, will preside at the N BA annual conven­
tion in Lincoln in mid-May.
Expanding further on the condition of Nebraska
^ banks, Mr. Holthus stated, “ Am ong the positive signs
is the recent report on 1986 and it’s interesting to see
how Nebraska banks have progressed. For example,
loan losses and non-performing loans are down from
1985 levels. Also, the Return on Assets is now re-build^ in g . The Capital to Asset ratio of our Nebraska banks
has always been among the tops in the nation and con­
tinues to be.”
Stabilizing Factors
All of these factors, Mr. Holthus believes, parallel
• the gradual stabilization of various factors that reflect
the total agricultural picture in the midwest and, spe­
cifically, in the Cornhusker state. “ I personally think
the seriousness of our ag problems is now past,” he
states. “ We need to continue solid production and
• good farming programs. It appears from all reports
that land sales have been on the upswing the past few
months; farm machinery, especially used, seems to be
moving better, and published livestock prices for cat­
tle and hogs are just the tonic needed to encourage so
• many good folks who have taken a beating for several
He expanded on these positive factors by saying
that “ the news on increased land sales is important to
the overall picture, the way it affects the attitude of
• bankers and that is highly important to regulators
because they need a measuring stick and this certainly
Federal Reserve Bank of St. Louis

gives them a positive factor.” Mr. Holthus was refer­
ring to the increasing number of land sales to local
farm owners from Other Real Estate within banks’
own portfolios. Many of these sales have even been for
cash. “ I know several personally that have sold O.R.E.
to good viable customers. They are paying cash and
with mimimum loans. A lso,” Mr. Holthus offered,
“ farm machinery sales, sold at auction this past winter
and early spring are all better than a year ago.
Farm Payments’ Effect
“ Farm payments have directly affected the profit­
ability of banks. Total deposits have increased in our
banks, thanks to such payments, but one effect has
been to cut loan demand. However, we know that in
the long run this means less debt for farmers—-as a
result of debt repayment taking place with these farm
payments, as well as by reduced borrowing this year
for traditional spring operating money. It will remain
this way so long as the current farm program is in
place. This is another positive factor because it gets
our customer base in better shape for next year and
future years.”
Mr. Holthus reflected on the difficult and sometimes
tragic events of the past several years in his own state
of Nebraska where hundreds of farmers bid farewell to
a life of farming—some by earlier than desired retire­
ment, some by their own reluctant decision to sell out
at whatever price could be obtained and move on, and
still others who lost all they had through foreclosure
because debt repayment could not be sustained with
falling land prices and farm product prices alike.
Further, he recalled, “ we lost six banks in 1984, 13
banks in 1985, and six banks in 1986, for a total of 25
banks because their heavy involvement in financing
agriculture, in most cases, eventually eroded all their
capital base. So far in 1987, we have not had a bank
failure in Nebraska and we hope there won’t be any­
Northwestern Banker, May, 1987


N e b raska N ew s

ers will contact their Senators and Representatives t o #
tell them how a secondary market would aid their en­
tire community. “ Banks may not earn so much from
this in direct income,” he noted, “ as from our ability to
retain that customer and serve all his needs.”

“THROUGH th is (s e c o n d a ry m arke t), o u r c o m m u n ity b a n ks co u ld
o rig in a te ag real e s ta te lo a n s, se ll th e m to p o o le rs, keep th e s e r­
v ic in g fo r a fee if so d e s ire d , a nd th u s p ro vid e o u r fa rm c u s to m e rs
w ith lo n g -te rm , fix e d -ra te lo a n s at a c o m p e titiv e ra te .”

Secondary Market Needed
Because of the need to properly position all banks to
be ready to serve the full needs of their farm customers
and other customers alike from now on, Mr. Holthus is
emphatic about the need for a secondary ag real estate
market and for expanded powers for commercial
banks. “ This is the reason,” he stresses, “ why addi­
tional products and services are needed to allow us to
offer them and serve our customers totally and long­
term. Even though they may not be short-term borrow­
ers, we are looking for long-term relationships.
“ One of these services we need—that our ag custo­
mers need —is a secondary ag real estate loan market.
I ’ve been very active working on this through NBA
with the American Bankers Association, the Indepen­
dent Bankers Association of America, and life insur­
ance companies. Through this mechanism, our com­
munity banks could originate ag real estate loans, sell
them to poolers (regional and/or money center banks),
keep the servicing for a fee if desired, and thus provide
our farm customers with long-term, fixed-rate loans at
a competitive rate. W e’ve had this availability for
years in the housing market. The ag secondary market
is n ot for bad loans and there would be strict under­
writing procedures, but it would definitely help our
“ Such a secondary market would provide equal ac­
cess to all lenders, something we’ve never had before.
The current high liquidity of our banks is not really an
important factor because: First, many banks would
not make such a fixed-rate loan regardless of liquidity,
and Second, we need to look down the road a few years
when we may not have liquidity, but have loan de­
mand. The secondary market is especially needed to
fund the turnover of land from retirees and death to
new owners, especially young ones, in a constant mar­
Mr. Holthus said the importance of this secondary
market should have a high priority and he hopes bank­

Banker, May, 1987
Federal Reserve Bank of St. Louis

State Legislation
State legislation obviously occupies a great deal of
any state association’s time and in Nebraska it is no
different. “ This year,” Mr. Holthus said, “ we feel
we’ve had some success—The passage of Clear Title o r '
Central Filing, last November, for example, which was
a clear success for the grass roots. It passed with 48
votes, no votes against, and one abstention.
“ I should state here that our entire membership
owes a great deal to Stan Matzke (NBA executive v ice 1
president) and Bill Brandt (NBA general counsel).
Stan’s leadership and Bill’s well-known ability and
credibility in the legislation have been vital to the suc­
cessful involvement of our members in important mat­
ters of legislation.”
It appeared at the time of this interview that the
controversial issues of interstate banking, branch
banking and mandatory mediation might be sidelined
from this year’s final legislation agenda, but will un­
doubtedly be on next year’s agenda again. “ The legis­
lative session is not over yet, however,” Mr. Holthus
Economic Development
Banking, agriculture and the state’s economy, re- £
gardless of the hopeful resurgence in agriculture, will
also need a strong boost from economic development,
believes Mr. Holthus. “ A year ago,” he recalls, “ I sug­
gested to the NBA executive council that we appoint
an Economic Development Committee Task Force, £
which I chaired. We have been working with the De­
partment of Economic Development here in Nebraska.
In June, we will put on a road show jointly sponsored
by the N BA and the State of Nebraska that will hope­
fully reach all banks to explain the various financial #
assistance packages available for communities and in­
dividual businesses. These include block grants and
state funds for risk capital, with local banks picking up
part of this as a guaranteed loan or a direct loan. In
some cases, the state will guarantee a loan—some are #
low rate and so forth.
“ Our job is to educate the bankers so they, in turn,
can work with their local customers and communities.
Some funds are available to non-profit organizations,
as well as communities.”
Local Community Supporter
Building local Nebraska communities for future
generations has a high priority with Kelly Holthus, as
it has with many community bankers who are natives #
of rural Nebraska, as he is. Born in Bertrand in 1933,
he started working for the local Bank of Bertrand in
1953, then moved later to the American National Bank
of Kimball, and has been with the First National Bank
of York since 1965.
Kelly attended the University of Nebraska, and was
graduated from the Graduate School of Banking at the
University of Wisconsin in Madison.
Kelly became president of the First National in
1977. He is in partnership with Bob Jones in the ^
ownership of the holding company that owns First Na-

N e b ra s k a N ew s


HI tional and the First Trust Co. Mr. Jones is chairman





and president of First Trust and chairman of First Na­
tional Bank. Kelly is president and CEO of the bank
and vice president of First Trust.
In 1985, they combined their banks in Bradshaw,
McCool Junction and Waco into First National Bank
of York, retaining offices in each of the other locations.
The bank now has $120 million in assets.
Kelly and Virginia Holthus have two daughters and
two sons. Kristie Holoch, 33, is a housewife and office
manager for a CPA firm in York. Beth Godbout, 31, is
a housewife in Scottsdale, Ariz. Kendell Holthus, 30, is
a farmer in Loup City. Tom Holthus, 28, is an attorney
is Los Angeles.
Mr. Holthus finishes his year as N BA president just
as all his predecessors—tremendously impressed with
the entire NBA staff. “ Our NBA has to be among the
finest state associations in the nation,” he proclaimed,
“ and a great share of the credit belongs to Stan Matzke, Bill Brandt, and all the other fine staff people. I ’m
really impressed with them.”

Emphasis on Education
“ As I said earlier, I think the worst of our ag crisis is
behind us. We still have plenty of work to do. But I
£ also think our bankers are better managers. Many of
us have had to learn to be better loan officers; we’ve
had to learn how to sit down with our customers and
work out a realistic cash flow, and learn with them that
this is better than relying on collateral. W e’ve learned
how to reduce costs by operating with fewer personnel
and trimming costs in appropriate places.

“A g re a t sh a re o f th e c re d it (fo r N B A ’s s ta n d in g a nd s u cce ss)
b e lo n g s to Stan Matzke (p ic tu re d above), Bill Brandt and o u r en ­
tire s t a f f . ”

“ This whole process has resulted from getting bet­
ter educated. All of our NBA educational seminars
geared to these concepts have been better attended
and well received. That’s why our state convention
theme this month stresses Training, Education and
“ As I leave office soon I see a real need to continue
our focus on education. I hope we ll continue giving
NBA members the programs they can’t do on their

# Financial Services Technology Stars at
ABA’s Operations, Automation Conference
HE largest exposition of bank­
ing-related equipment and ser:{§ vices ever gathered in the United
States is the star attraction at the
American Bankers Association’s
1987 financial services technology
extravaganza, the National Opera­
te tions and Automation Conference
FDIC Chairman L. William Seidman is the keynote speaker for the
conference, to be held May 31
# through June 3 at the Moscone
Center in San Francisco.
M onday’s luncheon speaker will
be Alexander Haig, former U.S. sec­
retary of state and former White
# House chief of staff. Gen. Haig re­
cently announced that he is a candi­
date for the 1988 Republican presi­
dential nomination.
The anticipated 3,500 partici• pants will have an opportunity to
examine the wares of more than 225
equipm ent ven dors o ccu p y in g
almost 700 booths. Products include
computer hardware and software,
# check processors, automated teller
machines, point-of-sale systems,

Federal Reserve Bank of St. Louis

telecom m unications equipm ent,
data processing equipment and
much more. The NOAC program is
designed to allow participants
ample time to visit with exhibitors
and compare products.
In addition to Mr. Seidman and
Gen. Haig, featured speakers in­
clude A B A Executive Vice Presi­
dent Donald G. Ogilvie, A B A
Operations and Automation Divi­
sion Chairman Donald R. Monks,
who is executive vice president of Ir­
ving Trust Company in New York,
and Jim Valvano, head basketball
coach at North Carolina State Uni­
Twenty-five concurrent sessions
make up the core of the program.
These sessions are organized into
five specialty areas: retail opera­
tions, operations management,
wholesale operations, data process­
ing, and special sessions for mid-tier
banks — those that have particular
operations needs because of their
status in the mid-range of institu­
tions in their market areas.
Also, industry innovations will be

featured in leading-edge banking
technology updates. Topics include
telecommunications, image process­
ing, storage subsystems, artificial
intelligence, remote item processing,
and consolidating multiple operat­
ing systems on a single processor.
A special feature on the exhibit
floor is a complete collection of
A B A ’s own banking software.
Operations officers can examine
computer-based training programs
like the Judgment Exerciser for
Tellers and the Judgment Exerciser
for Platform Basics, and Funds
Transfer Training courses including
The Basics of Funds Transfer and
Fedwire Fundamentals and Mes­
sage Formatting. Among the nu­
merous other software to be fea­
tured are: PMS — the Productivity
Measurement System and A B A ’s
Laser Pro, which produces free-form
loan documents tailored to each
Registration information is avail­
able from A B A ’s Banker Education
Network, (202) 663-5430. The NOAC
host hotels are the Donatello, the
Four Season Clift Hotel, the Hyatt
on Union Square, the Ramada
Renaissance, and the Westin St.
Northwestern Banker, May, 1987




[ i i i i i i i i n i i

'n a n v B R L


^ j»

í /5 ?y • ^

■'Z '& rjX tw c'V .

Bankers Trust is Iowa's
International Bank.
If y o u th ou ght y o u had to g o to C hicago or N e w
York to d o y ou r overseas banking, think again.
International services aren't foreign to Bankers
Trust. O u r International Banking D ivision has
over tw o d eca d es o f experience and an exten­
sive w o rld w id e corresp on d en t and telecom ­
m unications n etw ork. So w e can handle you r
international banking n eed s from right here in
D es M oin es.
O u r International Banking professionals are
trained to help Iow a com p a n ies and banks d o
business in global markets. Bankers Trust is y o u r

full-service international bank. We can h andle all
o f y ou r international banking n eed s, in cluding
letters o f credit, foreign fu n d transfers, collec­
tions, foreign exch ange and foreign drafts.
O u r telecom m u n ications system m akes Bankers
Trust the on ly D es M oin es bank directly linked to
m o n e y center banks o n every continent. In ad d i­
tion, Bankers Trust is the banking affiliate o f the
Iow a E xport-Im port Trading C om pany.
Call Patricia R ourke any tim e for advice and
service, 245-5284. O u r staff is ready to im p rove
y o u r international business h orizon s.

International Banking Division
665 Locust •Des Moines, Iowa 50309
(515) 245-5284
Member FDIC, Federal Reserve System

Banker, May, 1987
Federal Reserve Bank of St. Louis


Elected in Mt. Auburn

R.S. Howard, chmn., Oskaloosa
Milner, exec, v.p., Des Moines

MNB Names Six
Larry H. Christy, who has been
^ with the Merchants National Bank
in Cedar Rapids since 1965, has been
named executive vice president and
chief financial officer. He has been a
senior vice president and chief finan^ cial officer since 1985.

assistant vice president to vice president/human resources, who has
been with the bank since 1969.
Merchants National has also pro­
moted two to assistant vice presi­
dent. Robert J. Henry previously
was senior analyst systems officer,
and Lynn M. Whiteman has been a
commercial loan officer in the corres­
pondent banking department for the
last four years.

Elected Pres, in Gilman
Terry R. Collins has been elected
president of Citizens Savings Bank,
which has offices
in Gilman and
L eG rand. M r.
Collins has been
Merchants National has named with the bank
three new vice presidents. They are: for ten years. He
0 Linda Farkas, promoted from assis­ replaces Donald
tant vice president to vice president/ Arendt, who has
JHk *
r ,yf
corporate banking, who has been opened a cons
with the bank four years; Randall L.
Kuehl, promoted from assistant vice Arendt Manage•
# president to vice president/retail-in- ment Inc., in
direct, who joined MNB in 1971, and Montezuma. Mr. Arendt will remain
Carole M. O ’Deen, promoted from active as chairman of the bank’s
Mr. Collins began his banking
career at Bethany Trust Co.,
Bethany, Mo., in 1965. From 1973 to
1977 he was senior vice president at
Decatur County State Bank, Leon.
Since 1977 he has served as execu­
tive vice president of Citizens Sav­
ings Bank.



Elected in Fort Dodge
Douglas Larson, C.P.A., has been
elected vice president, responsible
for the trust division, for First
American State Bank, Fort Dodge.
He has been employed with the
bank since 1984, serving as trust of­

Parkersburg Bank
Merges with Peoples
Thomas P. McDermott, president
and chief executive officer for Peo­
ples Bank and Trust Company,
Waterloo, has announced that the
Parkersburg State Bank, an affiliate
of Peoples Bankshares, Ltd., was
merged into Peoples Bank and Trust
Company on March 31. The merger
was previously approved by the
FDIC and the Iowa Department of

Promoted in Knoxville
The Community National Bank
and Trust Company of Knoxville
has promoted Gloria Beard from
assistant cashier to cashier/administrative officer. She succeeds David
Smith who has resigned to work for
Edward D. Jones and Company. In
addition, Randy Purdy has been pro­
moted to vice president. He former­
ly was vice president of the Brenton
State Bank of Jefferson.

1987 Iowa Group Meetings


David A. Coulter has been elected
executive vice president of the Mt.
Auburn Savings Bank in Mt.
Auburn. He joins the bank from Van
Horne where he served in a similar
capacity at the Van Horne Savings
Bank President Robert W. Had­
ley has announced he will be retiring
from active participation soon, but
will remain president and chairman
of the bank’s board.

May 4
May 5
May 6
May 7
May 18
May 19
May 20
May 21

Cedar Rapids
Des Moines
Council Bluffs
Fort Dodge
Clear Lake

Federal Reserve Bank of St. Louis

Northwestern Banker, May, 1987


Io w a N ew s

THE IBA DELEGATION p o se d on th e s te p s o f th e F ed e ra l R eserve B u ild in g b e fo re e n te rin g
to have a p e rs o n a l b rie fin g fro m G o ve rn o r W a yn e A n g e li.

65 Iowa Bankers Visit Washington
HIS Y E A R ’S visit to Washing­
ton, D.C., by a delegation of 65
Iowa bankers and spouses came at a
time when intense discussion was
underway in the nation’s capital on
bills that will directly affect the
future of commercial banking. The
Senate had just passed over to the
House its S. 790 that blocks further
chartering of non-bank banks but
grandfathers more than 150 already
in operation, and also places a mora­
torium of one-year on any banking
powers expansion. The House was
considering legislation that would
only address a restructuring of
FSLIC financial support at a limit of
$5 billion, instead of $15 billion
earlier requested, and was in no
mood to consider banking powers or
other legislation favorable to banks.


The Iowa group spent the entire
first morning of their two and onehalf days at a thorough briefing
given at American Bankers Associa­
tion headquarters. Executive Vice
President Donald G. Ogilvie and a
half dozen staff members went into
every aspect of pending legislation,
as well as A B A programs that are of
direct interest to Iowa banks. This
was one of the most valuable stops
of the trip, in the opinion of many
Before leaving the A B A offices,
the Iowa guests stayed for a buffet
lunch and then heard from Dr. Beryl
Sprinkel, chairman of the Presi­
dent’s Council of Economic Advi­
sors. He said the economy is moving
right on target based on last year’s
projections for a 2.2% to 3% growth
for 1987. “ W e’ve made progress in
pulling down the trade deficit from
$221 billion to the present $173 bil­

lion,’’ he stated, but pressure needs^
to be applied continuously to bring
it down and the Gramm-RudmanHillings A ct is the best way. He
strongly opposes a tax increase as a
deficit-cutting device, saying th a t#
would only increase the size of gov­
ernment and “ hurt our children and
grandchildren. The deficit needs to
be brought down also so that when­
ever we face the next recession w e #
don’t have a deficit that is too
high.’ ’
That first afternoop included a
visit to the Federal Reserve System
headquarters where G o v e rn o r #
Wayne Angell pointed out that
“ we’re four years behind in interna­
tional debt problems with the tim­
ing of our ag loan problems.’ ’ He
pointed out that just as ag banks#
made capital loans to customers,
then made further loans to pay inter­
est, the nation’s major banks did the
same thing on an escalated scale
with many foreign nations and n ow #
are faced with repayment problems
just as agriculture was the past four
Later that afternoon, back at
A B A headquarters, former Sen.#
Paul Laxalt, considered to be Presi­
dent Reagan’s closest confidante,
gave a number of personal insights
into his relationship with the Presi­
dent, giving strong support to all#
the President has done. He also an­
nounced his own bid for the Republi­
can nomination for President next
At the breakfast in FDIC head-®
quarters the second morning, Iowa
bankers were told the FDIC fund
stands at $17.2 billion; 55 banks
have failed to date in 1987, three of _
them in Iowa; the FD IC’s problem®
(Turn to page 76, please)

LEFT— V is itin g d u rin g A B A b rie fin g w ere, fro m le ft: Neil Milner, IB A exec, v.p.; Russ Howard, IB A pres.; Don Ogilvie, A B A exec, v.p., and Ed
Yingling, d ir. o f A B A g o vt. rel. div. R IG H T — F o rm e r Sen. Paul Laxalt a d d re sse d th e Io w a g ro u p and w a s w e lc o m e d by Clair Lensing #
(center), IB A p re s -e le c t, and Pres. Howard.
Banker, May, 1987
Federal Reserve Bank of St. Louis

Io w a N ew s


PICTURED a t th e C o n g re s s io n a l d e le g a tio n p a rty , le ft to rig h t: Joan and Bill Logan, p res., S ta te C e n tra l B ank, K e o ku k; Sen. Charles Grass' ley; Donna a nd Bill Wilson, pres., O e lw e in S ta te ; Debbie and Denny Wood, pres., B a n ke rs T ru s t, Des M o in e s; Sen. Tom Harkin; Tom Whit­
son, p res., C o u n c il B lu ffs S a vin g s, a nd Kathy.

ALSO a t C o n g re s s io n a l d in n e r, fro m le ft: Heather Johnson; Rep. Fred Grandy, S io u x C ity ; H e a th e r’s fa th e r, Wayne P. Johnson, pres., S ta te
Bank, Everly; Donna a nd Keith Roeper, exec, v.p., S e c u rity N a tl., S io u x C ity ; AI Maser, ch m n ., 1st N a tl., Le M a rs, and Delores; Rep. Grandy;
Clare and Don Snyder, p res., M a n u fa c tu re rs B&T, F o re s t C ity , and C.J. Gerzema, p res., F a rm e rs T&S, B u ffa lo C e n te r.

ALSO at C o n g re s s io n a l d in n e r, fro m le ft: Mary Lensing; F e d e ra l Reserve G o ve rn o r Martha Seger; Clair Lensing, pres., F a rm e rs S ta te ,
M a rio n ; Rep. Tom Tauke; Bill Talen, p res., F a rm e rs S a vin g s, T raer, and Caroline; F ed e ra l R eserve G o ve rn o r Wayne Angell, and Howard
Logan, pres., T&S, M o v ille .

LEFT M o n d a y lu n c h e o n sp e a k e r Dr. Beryl Sprinkel (center), ch m n ., C o u n c il o f E c o n o m ic A d v is o rs , w a s w e lc o m e d by Mr. Milner and Mr.
Howard. R IG H T — P ic tu re d at th e C o m p tro lle r o f th e C u rre n c y b rie fin g w ere, fro m le ft: Dana Cook, spec. a sst, to th e C o fC ; Bill Stolte, c h ie f
n a tl. bk. exa m .; Mr. Milner; Dick Fitzgerald, c h ie f c o u n s e l, and Mr. Howard.

Northwestern Banker, May, 1987
Federal Reserve Bank of St. Louis


Iow a N ew s

LEFT— P a rtic ip a tin g in th e D a ve n p o rt B& T C o rre s p o n d e n t S e m in a r, w e re fro m le ft: C o n g re s s m a n Jim Leach, 1st d is t., la.; James F ig g e#
o ffc . o f pres., D a v e n p o rt B&T, and Michael Bauer, 1st v.p., D a ve n p o rt B&T. R IG H T — A ls o p re se n t w ere, fro m le ft: Dean Decker, pres., C e n ­
tra l T ru s t & Sav., G e n ese o , III.; Dave Howell, co rr. bkg. o ff., D a ve n p o rt B&T, and Dr. Thomas Frey, p ro f., ag. fin ., Univ. o f III., U rbana.

A t Correspondent Seminar

Real Estate Program Announced
Associate Publisher
AVENPORT Bank & Trust re­
cently held its 1987 Correspon­
dent Banking Seminar at the Black
Hawk Hotel in Davenport. Over 150
bankers from Iowa and Illinois at­
tended the one day seminar, at
which the bank announced a new
real estate program.
The Correspondent Real Estate
Program, announced by Russell
Scott, first vice president, is de­
signed to allow bankers “ an ideal
way to offer customers long-term,
conventional mortgages without re­
stricting the bank’s portfolio.’ ’ To
participate in the program, bankers
must have a depository relationship
with Davenport Bank & Trust, com­
plete an application, and attend a
training seminar. Cost is on a fee
Providing an insightful presenta­
tion as kick-off speaker was Con­
gressman Jim Leach, 1st district of
Iowa, who shared his views on
taxes, spending and foreign policy.
“ These three items,’’ he said, “ de­
scribe the function of Washington.’ ’
Congressman Leach applauded
the tax reform bill of 1986 but called
the $170 billion federal deficit “ the
grea test peace-tim e sca n d a l.”
Touching on foreign trade policy, he
said, “ Trade problems are jeopardiz­
ing the Midwest. We have to re­
spond to unfair trade practices.’ ’
Regarding the banking outlook,
Congressman Leach addressed two
problems he sees facing the indus­


Northwestern Banker, May, 1987
Federal Reserve Bank of St. Louis

try. One is the proposed infusion of
funds into the FSLIC at the expense
of all financial institutions. “ The
larger S&Ls are experiencing record
growth and profits, but the smaller
S&Ls are having major problems,”
he said. The second issue the con­
gressman addressed was that of the
Farm Credit System. He explained
that the stronger borrowers have
gotten out of the FCS, thus leaving
behind the weak loans. Congress­
man Leach also pointed out that the
FCS can’t continue to lend money at
a rate lower than the one at which it
Congressman Leach ended his
presentation with some notes of op­
timism. He sees a definite turn­
around in the Iowa economy. “ Rural
areas are flush with capital and
banks that looked like they had ter­
minal problems are now experienc­
ing growth—the system is stronger
than many realize,” he concluded.
Providing the conclusion to the
morning presentations was Dr.
Thomas Frey, prof, of agricultural
finance, University of Illinois, Ur­
bana. Dr. Frey, who dealt with the
many challenges facing agricultural
financing, said “ Agriculture was
once a way of life and now has
become a full-fledged business.”
Some thoughts that Dr. Frey
shared on the agricultural outlook
were: Farm Debt—will the farmer
ever be able to repay the national
$188 billion debt? Loan Portfolios—
there is a need for adequate farm fi­
nancial data. Real Estate—farm
land values continue to decline in
some areas. What is the profitability

outlook for the ag sector? Legal re-®
strictions—what can a banker do to
cope with mediation and loan write­
downs? Dr. Frey called these times
“ the best ever for the positioning of
banks for the future.” He did ca u -#
tion that for this to happen, banks
must maintain a year-end accrual
balance sheet, an accrual income
statement, implement the use of a
pro-forma income statement, h a v e #
cash flow projections and give in­
creased attention to loan documen­
The afternoon program consisted
of the 1986 Tax Reform Bill b y #
Douglas M. Hultquist, senior man­
ager, Peat Marwick, Main & Co.
Also, four concurrent workshops
were held. They provided informa­
tion on the new correspondent re a l#
estate program, retirement plan ser­
vices, credit card fraud and a data
processing update.

Promoted in Charles City
At Citizens National Bank, Char­
les City, Darei Posegate has been
p r o m o te d
chief financial
officer. His du­
ties will include
buying and sell­
ing securities,
developing pro­
fit plans and
b u d g e ts , c o r ­
porate planning,
deposit pricing,
product and ser­
vice development, asset liability
management, human resource man­
agement and purchasing. He will
continue as cashier and assistant _
trust officer. Mr. Posegate join ed9
the bank in 1983.

Tama State Bank • Tama, Iowa

4015 Alexandra Drive • Box 2097
Waterloo, Iowa 50 7 04
Phone 319-234-6641
Federal Reserve Bank of St. Louis


Io w a N ew s

the summer during the tourist season.
The IB A Centennial Task Force devised three ways
for Iowa bankers to fund the $80,000 needed—$50,000
for construction and $40,000 for operation and mainte­
nance endowment. By early April the construction
phase had reached $37,800, assuring enough to pro- •
ceed with groundbreaking and construction. Those
three funding methods are: sale of stock, sale of hono­
rary board of directors seats, and sale of coins to and
through banks.
About 12 individuals, banks or families have sub- ®
scribed $1,000.00 each for a Board of Directors contri­
bution, generally honoring a long-time banker or a
banking family. Those who purchase “ gold” stock cer­
tificates contribute $500, “ silver” $300 and “ bronze”

Construction Starts on IBA’s
Living History Farms Bank
ISITORS to the nostalgic 1875 town of Walnut
Hill located at Living History Farms in Des
Moines will soon be able to visit and inspect Walnut
Hill State Bank, the newest edition to that growing,
nostalgic community. Walnut Hill State Bank was cre­
ated by the Iowa Bankers Association during its cur­
rent Centennial Year as a testimonial to all those who
helped build the solid banking business now enjoyed in
Iowa. It will be a means of preserving the heritage of
the 1875 period, displaying actual artifacts and other
furnishings of that period which are being contributed
by Iowa bankers and their families.
Groundbreaking ceremonies for Walnut Hill State
Bank were conducted at Walnut Hill on April 28. The
authentically reproduced structure should be com­
pleted by late summer, in time for it to be dedicated
during the 101st Iowa Bankers Association conven­
tion at 1:00 p.m. on Sunday, September 20. All Iowa
bankers and their families will be admitted free to Liv­
ing History Farms on that date to enjoy the dedica­
tion, other IB A functions, and to visit the farm itself.
Living History Farms is located adjacent to Inter­
states 35-80 at the intersection with Hickman Road in
northwest Des Moines. It covers 600 acres and was es­
tablished through a private foundation in 1972 as a
non-profit organization by Dr. William Murray, who
retired some years ago as head of the department of
agricultural economics at Iowa State University. He is
still honored there as Professor Emeritus of Agricul­
tural Economics. Living History Farms covers five
time periods: the year 1700 when the land was occu­
pied by the native Iowa Indians; 1850, the Pioneer
farm where all work continues to be done by hand;
1875, which is Walnut Hill, a complete agricultural
town; 1900, with farm work still performed with horse
power and some vintage steam powered equipment,
and a modern farm section. It reaches a peak employ­
ment of 80 full-time employees and 400 volunteers in


Banker, May, 1987
Federal Reserve Bank of St. Louis


In addition, commemorative coins have been minted
that show the IB A Centennial logo on one side and a
sketch of the 1875 Iowa Bank at Living History Farms
on the obverse. The 24k Gold-Plate Bronze coin sells
for $11.95, the pure silver coin is $25.95, and the 24k
pure gold coin is listed at $625, although the pure gold
coin will fluctuate in price with the world gold market.
The current price may be obtained by dialing toll-free
1-800-532-1423. Banks have these coins available for
their customers statewide. Each coin is one troy ounce.
IBA officials expect construction to proceed quickly
on the old-time, one-story small building. A firm exper­
ienced in reproduction of antique buildings is assisting
in its construction. Right now, says Russell S.
Howard, president of the IBA, the association needs
help urgently from active bankers, retired bankers, or
banking families who are willing to donate artifacts
that come from the 1875 era—teller cages, safe, desks,
stools or chairs, lighting fixtures (oil or candle), ledger
books and other bank records of the era, or any other
furnishings or art decorations pertinent to the 1875
period. Any reader wishing to discuss such a donation
may contact Richard Holthaus at the Iowa Bankers
Association, 430 Liberty Building, Des Moines, la.
50308 (515-286-4318).
Iowa Superintendent of Banking William R. Bernau
plans to issue an official charter for the Walnut Hill
State Bank, but needs help from any banker who can
furnish a photocopy of a bank charter of that y e a r 1875.
At the groundbreaking last month, IB A PresidentElect Clair J. Lensing, president of Farmers State
Bank in Marion, stated, “ This project speaks of the im­
portance of Iowa’s banks to the state’s progress. It
speaks to the long history and certain future of bank­
ing in the state. It showcases the partnership that
Iowa’s farmers and bankers have had over the years.
No wonder we say, ‘You can bank on Iowa Banks!’ ”
Mr. Howard, who is also chairman, Mahaska Investment Co., Oskaloosa, and IB A Executive Vice Presi­
dent Neil Milner, were absent from the groundbreak­
ing due to the need for their participation for the IBA
in the A B A Spring Leadership Conference. In a brief
message he asked Mr. Lensing to read in his behalf, Mr.
Howard said, “ I believe this bank at Living History
Farms will preserve our proud heritage and recognize
the people and leaders of the banking industry who
have contributed so much to the growth of our state.
With pride, I welcome the construction of this living
memorial to Iowa’s banks and bankers.”





__ _

Left to right: Jim Perkins, Assistant V ice President; Dave How ell, Correspondent Banking Officer; Barry Richards, Vice
President; M ike Bauer, First V ice President; John Oliger, Correspondent Banking Representative


Our correspondent team
will help you meet your
# most important objectives.
Our state-of-the-art technology and experi­
enced team of banking professionals give you
the expertise you need to excel in every aspect
of your operations and investments. And we do
it by giving you the personal attention you de­


Watch your money grow. Our Federal
Funds investments and competitive rates on
certificates enhance your profit picture. And
our service is backed by strength and safety sec­
ond to none.
Federal Reserve Bank of St. Louis

W e’ll show you results. Call us today to set
up an appointment or talk to one of our corres­
pondent officers at the Illinois Bankers Conven­
tion June 10-12 in Peoria. We’ll show you how
we can help you achieve all your goals.

Phone (319) 3 8 3 -3 4 2 9

-------------- AND TRUST COMPANY-------------MEMBER FDIC
2 0 3 WEST THIRD STREET, DAVENPORT, IOWA 5 2 8 0 1 -1 9 7 7


Io w a N ew s

1st Natl, of Dubuque Remodels

FIRST N a tio n a l B a n k o f D u b u q u e has c o m p le te d its th re e -p h a s e re m o d e llin g and e x p a n ­
sio n p ro je c t at th e m ain o ffic e and M a ll B u ild in g , S e ve n th at T ow n C lo c k Plaza. N ew c o m ­
p u te r e n h a n c e m e n ts e x te n d b e yo nd th e m ain o ffic e to th e b a n k ’s th re e b ra n ch e s. P ersonal
b a n kers and te lle rs w ill no w have in s ta n t a c c e s s to p e rtin e n t fin a n c ia l in fo rm a tio n , a c c o r­
d in g to C h a irm a n and CEO W illia m G. K ruse. The re b u ild in g began in S e p te m b e r, 1986.
New s p a c e w a s e s ta b lis h e d fo r c o m p u te r fa c ilitie s , se ve ra l d e p a rtm e n ts w ere re lo c a te d ,
and th e M all B u ild in g w a s re m o d e lle d to fe a tu re an in te rio r p e d e s tria n c o rrid o r w ith a cce ss
to a ll a re a s o f th e b u ild in g . The lo b b y in th e m ain o ffic e w a s c o m p le te ly re m o d e lle d .

Committed to
making your
bank stand
apart from the

Banker, May, 1987
Federal Reserve Bank of St. Louis

V IS IT W A S H IN G T O N . . .

(Continued from page 70)

list has grown to 1,530 banks but
the rate of climb has slowed, and
FDIC has $12 billion assets taken in
from failed banks it is trying to ad­
minister, liquidate or sell. “ W e’i^
trying a new negative premium ap­
proach,” it was stated. “ You take
the bank and tell us what it will cost
The second stop of the m orning
was an interesting visit with Comp­
troller of the Currency Robert
Clarke and key members of his staff.
One staff member noted that “ if the
FH LBB’s ‘exit’ fee to healthy s&l#
was lowered, I think we’d probably
see more applications for conversion
from s&ls to national banks.” He
noted, however, that this would
leave the FHLBB and FSLIC wit]#
an even higher percentage of ailing
members and an impaired insurance
A t the USDA, Iowa bankers
heard from Peter Myers, deputy sec#
retary; Eric Thor, assistant adminis­
trator of FmHA, and Frank Naylor,
Jr., chairman of the Farm Credit A d­
ministration. A continued phasing
out of direct loans, accompanied b #
a greater emphasis on guaranteed
loans through banks will be the goal
of FmHA. Mr. Thor said of direct
loan applicants, “ FmHA will hand
carry documents and conduct g o o #
borrowers to your office to become
your customers” as part of the effort
to convert to guaranteed loans.
In addition to meeting with mem­
bers of the Iowa Congressional dele#
gation at an I BA-sponsored dinner
party on Monday night, the Iowa
bankers hosted a breakfast Wednes­
day morning for Iowa Senators and
Representatives and their key s ta f#
members. On both occasion s,
bankers had an opportunity to com­
municate their views on banking
legislation. A review of all these con­
tacts was shared among the bankei®
contingent at a debriefing luncheon
held by IBA.
Besides the full two and one-half
days of meetings, bankers and
spouses had an opportunity to visit^
Annapolis on Sunday and take part
in worship services in the beautiful
church at the Naval Academy. Side
trips and evening dinners and enter-_
tainment also were scheduled eaclm

M any Of
Y our Bank
D epositors
You Could Be
B eing “Just A B ank” I sn ’t Enough
Iowa Bankers Insurance and Services,
Inc. has developed a health insurance
program for bank depositors. The
name o f this program is The
The program includes a com p re­
hensive major medical plan and a
Medicare supplement. Costs are co m ­
petitive with other individual and
supplemental insurance programs on
the market.

Iowa Bankers Insurance and Ser­
vices, Inc.’s affiliation with Iowa banks
is a long-standing, dynamic relation­
ship. You know our integrity, the qual­
ity o f our service.
The Protector health insurance
program is underwritten by Time
Insurance Company o f Milwaukee,
Wisconsin. Time Insurance is co n ­
sistently rated A + “excellent” by the
AM. Best Company, an insurance
industry analyst.

• The Protector health insurance p ro­
gram provides your bank with a
way to increase customer loyalty
and revenues.
• The Protector plans can attract
new customers.
• The Protector health insurance
program enhances your image as a
full-service bank.
Let IBIS introduce you to The Protectors
today! Call Chris Wehde at 515-286-4395 or

Your participation in this program
requires little or no investment o f your
time, personnel or capital. An IBIS
representative will visit your bank on a
regular schedule, explain The Protec­
tor plans to interested and eligible
Digitized depositors,
for FRASER and enroll them.
Federal Reserve Bank of St. Louis

W hy Participate In T he P rotector
H ealth Insurance P rogram ?
• The Protector plans provide your
customers with quality, convenient
and affordable health insurance.



Io w a N ew s

Appointed in Waterloo


Otto W. Thomas, president of The
Waterloo Savings Bank, has an­
nounced the appointment of Deon
Senchina to assistant vice president
Ms. Senchina joined the bank stafl®
in 1973. In 1978 she was promoted
to consumer loan officer and in 1985
she was named branch manager of
the Cedar Heights branch office.


There D a Difference
in Banks
Trust, confidence, loyalty . . . w ords our custom ers
use to describe how they feel toward Valley
National Bank.
Valley Bank is experiencing substantial grow th
. . . in deposits,
...lo a n s , and
. . . in earnings.
That’s because w e maintain a highly skilled staff,
offer top service, and perform well financially.
We w elcom e your inquiry . . .
Rem em ber, there is a difference in banks.

Valley National Bank @

Main Office-Sixth and Walnut

For Professional C orresponden t Service
call 1-800-622-7262

Banker, May, 1987
Federal Reserve Bank of St. Louis


Charles Laipple has also been ap­
pointed assistant vice president. He
will be a personal banker in the retail#
banking department, which current­
ly is being created. In addition, he
will be responsible for consumer
lending and branch management.
Mr. Laipple previously held the posi-#
tion of vice president in installment
lending in another Waterloo bank.

Appointed in Waterloo
Iowa National Bankshares C orp .,^
Waterloo, has announced the app o in tm e n t o f
D o u g la s
S h u ll to th e
board of direc­
tors. INBC is
the parent hold­
ing company of
The N a tio n a l
Bank of Water­
lo o ,
M id w a y
Bank & Trust of
Cedar Falls and
Peoples Trust & Savings of Indianola.
Mr. Shull has been serving as a
director of Peoples Trust & Savings
since 1983. He is a partner in Shull
& Co. CPAs of Indianola and also
commissioner for the Iowa D epart-#
ment of Transportation.

Named in Mitchellville
Farmers Savings Bank, Mitchell­
ville, has named two new directors®
to its board. They are William C.
Hamilton, formerly president of the
Exchange State Bank at Collins,
who was also named vice president
and trust officer; and Arthur L .®
Churchill, Mitchellville farmer.

Home Equity Loans
Federal Reserve Bank of St. Louis

Due to changes starting in 1987 on deductibility in consumer
interest this could become a substantial source of loan
volume and revenue for your bank.
We have developed a micro-computer based software system
to process open-end, variable rate loans and can provide
valuable assistance in setting up your in-house program.
Developed by bankers for bankers.
For more details write o r c a ll either:
The National Bank of Waterloo
315 East 5th Street
Waterloo, IA 50703


Rec-Chek, Inc.
PO. Box 239
Nevada, IA 50201

Northwestern Banker, May, 1987

president of Midland Financial S av-^
ings and Loan. He previously served
in the same capacity at First Inter­
state Bank of Des Moines, and also
as vice president of First Interstate
of Iowa.
* * *

Retired in Davenport

First Interstate Bank of Des
Moines, N.A. has announced the ap­
pointment of David D. Gordon to
senior vice president and manager of
the trust division. Mr. Gordon was
formerly the president of First In­
terstate Bank of Fargo, N.A., N.
Dak. He previously spent 16 years
managing various trust activities,
including the overall management of
the trust department at First Inter­
state of Fargo.
In addition, Greg Cole has been
appointed commercial loan officer in
the metro commercial services divi­
sion. He joined the bank in 1983 and
most recently worked in loan review
at First Interstate of Iowa.
* * *
First Interstate of Iowa, Inc. has
announced the promotion of Dennis
Kirkpatrick to
general services
officer. His re­
s p o n s ib ilit ie s
will be purchas­
in g ,
m a in te ­
nance and facili­
tie s m a n a g e ­
ment, and con­
s tru c tio n services. He w ill reKIRKPATRICK
tarn his position
as vice president of the building cor­
Mr. Kirkpatrick joined First In­
terstate in 1984. He previously
worked for the State of Iowa as a
facilities engineer.

Banks of Iowa, Inc. has an­
nounced the promotion of Jeffrey B.
Weeden to vice president of finance

Banker, May, 1987
Federal Reserve Bank of St. Louis

Davenport Bank and Trust Co.
has announced that Vice President«
J a m es
Grothusen has
retired after 37
years with the
b an k .
M r.
Grothusen joined
Davenport Bank
and T rust in
1950 as a teller
in the manage­
and treasurer, and the election of ment train in g J.F. GROTHUSEN
Karen S. Mains to assistant vice p r o g r a m .
part of his career
president of finance.
in consumer lending, retiring as a
vice president in the commercial1
loan department.

Named in Marion



Mr. Weeden joined the corporate
staff of Banks of Iowa in 1984 and
most recently was vice president of
corporate tax. Ms. Mains joined the
staff in 1983 and previously served
as senior tax and financial accoun­
* * *
Ronald C. Cibolski has joined
Valley National Bank as assistant
vice president in
the commercial
lending division.
He was formerly
lending officer at
a n o th e r
D es
M oin es bank,
and prior to that
was a loan offi­
cer for the Small
B u sin e ss A d r . CIBOLSKI
ministration. He
holds a masters degree in business
from Fort Hays State University,
Fort Hays, Kan.
* * *
Phillip S. Rowley has been named
chief financial officer and senior vice

Farmers State Bank, Marion, has*
named Lorna M. Barnes to the posi­
tion of chief fi­
nancial officer.
For the past four
y e a rs ,
M s.
Barnes was em­
ployed in the
Cedar Rapids of­
fice of McGladrey, H endrick­
son & Pullen
Cp A S. Prior to
that she was
with Arthur Young and Company
and General Growth, Inc. in D es1

Sioux City Bank Purchased
Hawkeye Bank & Trust in Sioux^
City has been sold to Papillion busi­
nessmen Beryl Johnson, Hal Young,
D.F. Snodgrass, Paul Hartnett and
Robert Schutte. The bank will be re­
named Morningside Bank & Trust.#
Prior to becoming a Hawkeye Bank,
it was known as Morningside State
The bank’s new president is Ed
Young, who previously served as e x -#
ecutive vice president at Union Na­
tional Bank, Massena. Kelly Florke,
who has been serving as the bank’s
assistant vice president, has been
promoted to executive vice presi-#

Io w a N ew s


Centennial nostalgia!

Vignettes of Banking
Editor’s Note: The Iowa Bankers Association observed the
100th Anniversary of its founding convention in September,
1986, and the IBA will complete its first 100 years of service
on July 26, 1987. A number of Iowa bankers who are mem­
bers of the IBA 50-Year Bankers Club responded to our invi­
tation to share with other readers some of their
reminiscences of earlier Iowa banking history. These vig­
nettes will be published in issues during the Centennial
Year. Veteran Iowa bankers who have special memories to
share, or others who have access to earlier banking events
and records that would be of interest to our readership, are
invited to send us their comments. This includes bankers
from other states whose stories tell of the earlier days and
growth of midwest banking.

Page County State Bank, Clarinda, la.
(Entered banking in 1936)
T was July 14, 1936, that I started to work at
the City National Bank, Shenandoah, Iowa for
$40.00 per month—enough to pay my room and
board. I was 17 years old and I remember it was
over 100°. Times were hard and much of the corn
that summer only made 15 bushels per acre. I had
graduated from Coin High school in 1935 and had
gone to Park College, Parkville, Missouri, where I
milked cows in a dairy to pay my way. While
there I had been tested and found to have an apti­
tude for banking.
After a couple of years I went back to school at
the University of Iowa and studied accounting
and finance. Jobs were still very scarce in Iowa in
1940 when I graduated. I went to Chicago, where
I worked on the Chief Accountant’s staff at Bell
Telephone Co. In 1942 I was drafted into the Sig­
nal Corps and served until March, 1946. My
father asked me to come and work with the family
farming operation until 1948.
At that time I purchased the Hedrick Savings
Bank, Hedrick, Iowa. Later in 1950 we bought
Okey Vernon First National Bank in Corning,
Iowa. In 1962, we bought Page County State
Bank, Clarinda, Iowa and in 1967 the First Na­
tional Bank, Prescott, Iowa.
Whitmore Company, Inc. was organized as a
multi-bankholding company and since the 1970’s
has been owned and operated by myself and my


David L. Hansen Joins
Hamilton Associates
David L. Hansen has joined the
i|||recruiting firm of Hamilton Associ­
ates, Des Moines, as director of the
bank recruiting/consulting division.
Mr. Hansen holds a Certified Com­
pensation Professional designation
# and, since 1985, has directed the
human resource consulting division
Federal Reserve Bank of St. Louis

two sons, James L. Whitmore and Kenneth F.
Our banks are completely modern and use the
latest in computer equipment, including 24 hour
automatic teller machines. Other modernization
is contemplated in the future.
We believe family farming has evolved over the
centuries as the best and most efficient system of
food production. Family farming may change its
type of operation, as time and scientific changes
come along, but we look forward to many years of
being country bankers to family farmers and
rural businesses.
One of the important things that has happened
in our rural county seats is the arrival of nume­
rous light industries that employ a sizable num­
ber of local residents. I expect this trend will con­
tinue in the future as industry finds out how hard­
working and reliable our rural work force is. I
have always worked with the local economies to
achieve this diversification of our local economy.
Attractive living conditions in Southwest Iowa
will be greatly recognized someday as other areas
of the country and their “ people problems’ ’ of
transportation and pollution reach the point of
diminishing returns.
Our banks and bank officers have always en­
joyed working with our customers and a all
times have remembered that banks are fiduciary
institutions. The bank depositors have a right to
hold the banks responsible for their money even
though there is now a guarantee to $100,000 from
FDIC. Irresponsible lending or investing of
depositors’ funds can cause great anguish and
suffering to the borrowers in a town and can also
wreak a great deal of havoc among the small busi­
nesses who sell to farmers. Because of the social
responsibility of a bank, I have always encour­
aged bank loan officers to be prudent in their
loans and remember all the money we use belongs
to the public and must be paid back to them
whenever they want it.
There have been many changes in banking and
farming over the last 50 years. But one of the
greatest feelings has been to work with the 50
employees in our banks. We have all cooperated
well to earn the public’s trust.

for Williams & Company, a large
Sioux City CPA firm.
Prior to his Sioux City experience,
he was vice president of the human
resource function for First Inter­
state Bank of Des Moines, served as
personnel manager at Drake Univer­
sity, and as employment manager
for Massey Ferguson’s North Amer­
ican Operations.
Mr. Hansen received both his BS

and M BA degrees from Drake Uni­

Elected in Council Bluffs
John H. Oehlertz has been elected
to the board of directors of the Coun­
cil Bluffs Savings Bank. He oper­
ates a farm in Valley Township,
seven miles from Avoca.
Northwestern Banker, May, 1987


Io w a N ew s

Branch of Iowa Savings Planned

Russell J. Perry, p re s id e n t a nd CEO o f Io w a S a v in g s B a n k o f Dike, has a n n o u n c e d p la n s fo r
a new fu ll s e rv ic e b ra n c h b a n k in g fa c ility in N ew H a rtfo rd . T he new b u ild in g w ill have th re e
te lle r s ta tio n s , a n ig h t d e p o s it, s a fe ty d e p o s it b o xe s, a p riv a te o ffic e , c o n fe re n c e roo m and
e m p lo y e e lo u n g e . The K irk G ro ss C o m p a n y o f W a te rlo o is in c h a rg e o f th e p ro je c t. C o m p le ­
tio n is e x p e c te d in fo u r to fiv e m o n th s .

Added in Waverly
Kent Schultz has joined the staff
of The First National Bank of
Waverly as as­
sistant vice pres­
ident and ag
loan representa­
tive. His most
recent position
was in a similar
c a p a c it y
W aukon State
Bank, Waukon.
He has a lso
served as agri­
business instructor at Blackhawk
Technical Institute, Janesville,
Wis., and as a loan officer for the
PCA of Southeast Wisconsin, Union
Grove branch.

Sergeant Bluff Bank
Opens New Facility
The Pioneer Bank of Sergeant
Bluff celebrated the Grand Opening
of their new 202 First Street loca­
tion on April 9-11. The new office
replaces their previous location on
4th Street.
The Pioneer Bank was founded in
1907 and has been operating con­
tinuously since that time in Ser­
geant Bluff. It also has branches in
Salix and Sioux City, the latter of
which opened recently.
Banker, May, 1987
Federal Reserve Bank of St. Louis

The new facility houses Pioneer
Bank, Pioneer Insurance and Pio­
neer Realty, Inc. It features three
drive-up lanes and an ATM.

Added in Cedar Rapids
Jeffry D. Hagen has joined Brenton Bank and Trust Company of
Cedar Rapids as vice president. He
will be involved with commercial
loans and business development.
Prior to joining the Cedar Rapids
bank, Mr. Hagen was vice president
of Brenton Bank and Trust Com­
pany of Vinton for five years. Prior
to that he was with the Farmers
Home Administration.

U. of I. Offers Accelerated
MBA Course
Starting next fall, the University
of Iowa will offer a new course of
study entitled the Program for
Emerging Managers. The course
allows students to obtain an M BA
degree in 21 months while holding
down a full-time job. Intensive
classes all day on alternate Fridays
and Saturdays combine with study
groups in home communities to
make the program work.

“ This program is designed fo r 0
promising young professionals who
are recent college graduates and
have less than five years’ experience
in their organizations,” said Eleanor
M. Birch, associate dean and direc-#
tor of M BA programs in the UI Col­
lege of Business Administration.
Likely candidates for the program
are entry-level employees who hope
to move into management rapidly#
and have the active support of their
families and employers.
The first class in the Emerging
Managers Program will be enrolled
this fall and graduate in May 1989.#
For more information, contact Prof.
Birch, College of Business Adminis­
tration, 121 Phillips Hall, Universi­
ty of Iowa, Iowa City, IA 52242,
telephone (319) 335-1037.

Added in Spencer
Peter Atkins has joined the Spen-^
cer office of Norwest A g Credit as an
ag banking officer. He most recently
served as area coordinator for the
American Polled Hereford Associa­
tion. From 1982 to 1984 he was an#
ag banking representative at Nor­
west Bank in Huron, S. Dak.

May, 1987

American Bankers Association, Washington, D.C.

. . .

Bankers Trust Co., Des Moines ............................

. .

Carpenters Pension Fund of Illinois ....................
Carroll, McEntee & McGinley, Inc...........................

. . .32
. . .25

Davenport Bank & Trust Co.....................................
Dawson Hail Insurance, Fargo, N D ......................
Deluxe Check Printers, Inc.......................................

. . .75
. . .18

Evergreen Systems, Inc., Omaha...........................

. .

First Bankers Securities Corp., Mason C it y ........
FirsTier Banks Omaha/Lincoln..............................
First National Bank, O m aha..................................
First Wisconsin National, Milwaukee....................

... 5
. . .55

Gross, Kirk Co., W aterlo o ......................................

...7 3

IAC Group, Kansas C ity..........................................
Iowa Bankers Insurance & Services, Inc................
Insured Credit Services, Inc., Chicago..................

. . .83*
. . .77
. . .35

LaSalle National Bank, Chicago ..........................

. . .34

Marquette Bank Minneapolis.................................
Merchants National Bank, Cedar R ap id s ............
Modern Banking Systems, Inc., O m aha................
Municipal Bond Underwriters, Inc..........................



. . .38
. 28-294

. ..5 2 ’

National Bank of Commerce, Lincoln..................
National Bank of W aterloo.....................................
North Central Life Co., St. Paul..............................
Norwest Corporation, Minneapolis......................

. . .63
. . .79
. . .31
. . .84

Office Concepts, Ltd., Waterloo.............................

. . .76

Plus System, Inc., Denver.......................................

. . .

Rothschild, Unterberg, Towbin, L.F., Inc...............

. . .21

Security Pacific Financial Systems......................
Swords Associates, Inc., Kansas C ity ..................

... 9
. . .33

Trans Union Credit Information Co.



United Missouri Bank, Kansas C ity .................................. 23 _
United States Check Book Co., Om aha............................ 5 8 w
Valley National Bank, Des Moines.................................... 78

W hen it comes to financial service
companies, ours stands out. In many ways.

And one of the most important is the
personalized service you get through a team of
Field Representatives who are well aware that
banking has changed, and who know the needs
of today's banks. They offer you bank-designed
programs that build profits for you and are a
valuable service for your customers—a complete
line including Credit Life tailored to fit your
loans, Commercial and Real Estate protection
for larger loans, Collateral Protection, Financial
Planning, and Executive and Director Programs.
What's more, IAC gives you important service,
training and fee income advantages. To find out
more, give us a call. And find out for yourself
why so many thousands of lending institutions
in the United States and abroad agree that the
IAC Group is outstanding, in many ways.
A Full Service Company for The Full Service Bank

Individual Assurance Company
Federal Reserve Bank of St. Louis

1600 O ak St. • Kansas City, M O 64108
Phone toll free in Missouri (800) 892-5890,
other states (800) 821-5434.

We KnowmeWay
ToW eaker The Sform

The winds of change are sweeping
through the banking industry And now
more than ever, it takes a strong financial
leader to help you stay on course.
At Norwest Banks, we know what it
takes to find smooth sailing in a sea of
deregulation. And when you come to us for
correspondent banking services, we make
our experience work for you.
We’ve strengthened our commitment
to correspondent banking. So we can offer
financial institutions of any size better
service than ever. No matter which way
the wind blows.
Talk to us today about our full line of
services. When it comes to correspondent
banking, we know the way. ■

We Know The Way We Are Norwest.
■ Ik ll

Members FDIC
Federal Reserve Bank of St. Louis