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ABA Elects New Officers in Honolulu

m • ABA Convention Report with Pictures
• Where Funds Go, Float Will Follow

• MABSCO— Two Years of Hard W ork.. .and Success
Federal Reserve Bank of St. Louis

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“ Doing the right thing at the right
time is basic to success in business.
When an investor sells a stock too
early, he loses profit potential. When a
farmer plants a crop too late, he loses
yield potential.
Proper timing is also important in
banking. In our Correspondent De­
partment we use current data process­
ing reports to maximize Fed Fund
potential. Detail check collection
schedules and sophisticated analysis
techniques enable us to pass availa­

bility on to banks for full utilization of
their investment potential.
Now is the right time to take ad­
vantage of M NB’s experience in cash
collection, Fed Funds Investments,
and over line assistance. Learn more
about our correspondent services and
improve your profitability.”
Call 319-398-4217 or dial toll free,
1-800-332-5991 and ask for Stan R.
Farmer, Jerry N. Trudo, Terry M.
Martin or John E. Mangold. Call now!
The time is right!

Merchants National Bank i : i

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

Member F.D.I.C.


^ ®


“When you are a correspondent of First
Chicago, it means having access to the vast
resources of a money-center bank. It means
having teams of specialists working together
to deliver the kind of products your bank
needs. And it means a partnership that
supports instead of supplants.
“You w on’t find a bank in the Midwest
that’s organized to deliver its resources
more effectively than First Chicago. You’ll
w ork with a relationship manager from our
highly trained specialty teams— the Com­
munity Banking Team, the Illinois Team and
the Midwest Team— according to your
specific needs.

“When you’re a correspondent with
First Chicago, we won’t just be working with
you— we’ll be working fo r you.
“ See how First Teamwork can w ork
fo r you. Call me, Neal Trogdon, at

312) 732-7780.“
First Chicago

Atlanta— Baltimore— Boston— Chicago—
Cleveland— Dallas— Denver — Houston— Los
Angeles— Miami — New York— San Francisco—
Washington, D.C.

The First National Bankof Chicago

© 1 9 8 3 The First National Bank o f Chicago. M em ber F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1983


IBM Will Market
New Instruction Package

NOVEMBER 1983 • 90th Year • No. 1442


International Business Machines
Corporation will market the IBM
Personal Coputer Instructional Sys­
tem developed by Computer Sys-*
terns Research, Inc. of Avon, Conn.
The IBM PCIS by CSR, Inc., which
consists of three products, allows
even those with no programming
skills or previous authoring ex- 1
perience to create, present and
administer Computer Aided In­
struction courses on the IBM Per­
sonal Computer.

OFFICERS and executive staff of the American Bankers Association for 1983-84
were pictured by the N orthwestern Banker camera following their election during
the 109th annual convention in Honolulu, Hawaii, last month. From left to right,
they are: Exec. V. P.— Willis W. Alexander, Washington, D.C.; Chmn. ABA Coun­
cil-W illia m H. Kennedy, Jr., chmn. Natl. Bank of Commerce in Pine Bluff, Ark.;
Pres.— C. Robert Brenton, pres., Brenton Banks, Inc., Des Moines, la.;
Pres.-Elect— James G. Cairns, Jr., pres., Peoples National Bank of Washington,
Seattle, and Treas. — Harry R. Mitiguy, pres., Howard Bank, Burlington, Vt. A
report and pictures of the ABA convention starts on page 13.



Bob Brenton heads ABA

On-the-spot report of 109th convention in Honolulu

17 Where funds go, float will follow
Jeanne M. Voigt tells approach at First Bank Minneapolis


MABSCO—an update

Robert E. Harris relates success of first two years


Bank Promotions
Twin Cities
South Dakota
North Dakota


Des Moines
Index of Advertisers

306 15th Street, Des M oines, Iowa 50309

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor


Ben H aller, Jr.

Steve Burch

Becky M cBurney

M alcolm K. Freeland

No. 1442 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per
copy. $18 per year. Second Class postage paid at Des Moines, Iowa and at additional
mailing office. POSTM ASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, Iowa 50309.

for FRASER Banker, November, 1983
Federal Reserve Bank of St. Louis

The market for computerized
training, known in the industry as
Computer Aided Instruction, is
expected to grow at a rate of 60%, *
per year and reach more than $3
billion by 1986, according to a study
by Dataquest, Inc. cited in Training
magazine, February 1983.
The IBM PCIS by CSR, Inc. pro-(
vides software and other training
materials required to create, present
and administer a complete, coordi­
nated, interactive instructional
training program on the IBM Per so-(
nal Computer, cutting course devel­
opment time by up to 50%.
The IBM PCIS by CSR, Inc. pro­
vides an easy growth path for distri­
buted training. Therefore, it can
dramatically reduce the use of
valuable mainframe computer time
for the creation and presentation of
courses, thus cutting user costs.
Since IBM PCIS by CSR, Inc. requires no programming skills, IBM
and CSR, Inc. have introduced a tool
which meets two nationally-recog­
nized needs: industry’s need for low- (
cost, fast training and retraining of
the workforce to compete in a rapid­
ly expanding business environment;
and education’s need for delivering
high quality instruction.
The IBM PCIS by CSR, Inc. is of­
fered as three distinct products.
Costs for the products are: Author­
ing system - $525; Presentation
system - $85; and Administrative
system - $400.



M ountains of information. O rders. Invoices.
Payrolls. Inventories. Proposals. Advertising. Sales
reports. All those papers th a t separate you from
the top of your desk.
We’re N orthw estern Bell. And we’re p art of
the biggest inform ation network in the world.
A network th a t moves at least 90% of all
the business inform ation th a t moves anywhere.
A network th a t moves not only voices, but
com puter data, graphics and video signals.
A network th a t’s right a t your fingertips. As
near as your phone.

[Q) Northwestern Bell
Federal Reserve Bank of St. Louis

These days, a company has to generate a
lot of information. And get it to a lot of people who
need it to do their jobs.
Com puters generate information.
N orthw estern Bell moves it. And we move
more of it, to m ore places, more quickly, more
reliably than anyone else in the world.
Even if your company has a mountain of
information to move, you can move it with just one
finger.The finger you use to call us at
1- 800- 328-4535 Ext. 2 6 0 7 O r in Minnesota,
1- 800 - 752-4225 Ext. 2 6 0 7



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

National Conventions & Schools
Nov. 13-16— ABA National Agricultural
Bankers Conference, Bonaventure, Los
Angeles, Calif.
Nov. 13-17— BMA Trust Marketing Con­
ference, Fairmont Hotel, Dallas, Tex.

State Conventions & Schools
Nov. 16-17— IBA Bank Management Con­
ference, Holiday Inn, O’Hara Kennedy.
Nov. 17— IBA Annual Meeting, Holiday Inn
O’Hare Kennedy.


June 13-15— IBA Annual Convention,
Peoria Convention Center, Peoria.

Nov. 14-15— IBA Consumer Lending/Retail
Banking Conference, Cedar Rapids.
Dec. 2— IBA Borrower Bankruptcy Seminar,
Des Moines.


Feb. 5-7— IBA Marketing Conference, Des
Nov. 16-17— NBA Bank Management Con­
ference, Holiday Inn, Kearney.


Jan. 11-12— NBA Instalment Lending Con­
ference, Kearney Holiday Inn.
Feb. 10-15— NBA Bank Presidents Con­
ference, Red Lion La Posada, Scottsdale,
Feb. 28-29— Personnel Conference, Kearney
Ramada Inn.
North Dakota:

Jan. 24-25— NDBA Chief Executive Officers
Conference, Doublewood Inn, Fargo.
Jan. 25-26— NDBA Bank Management Con­
ference. Doublewood Inn, Fargo.

Sixty Years and Still Going Strong
LTHOUGH customers of Peoples State Bank in Fairmount,
North Dakota, have seen many changes over the past 60 years,
one aspect of their banking has remained the same
— the presence of Stella Whitehead.
Ms. Whitehead joined Peoples State Bank in
1923 as a teller-bookkeeper. She was 19 then. To­
day, at the age of 79, she serves as vice president
and cashier in addition to being a director and
stockholder of the bank. She continues to work on
a full-time basis but is trying to cut down some on
her hours.
Stella Whitehead was born in Chicago in Janu­
ary of 1904, and is the oldest of ten children. Her
interest in banking dates back to her high school
days and an inspirational bookkeeping teacher. She started with the
bank in 1923, was appointed cashier in 1953 and in 1968 was promoted
to her current position.
At the North Dakota Bankers Association 98th Annual Convention
held this year at Grand Folks, Ms. Whitehead received an award for
her years in banking. This was only the second convention she had at­
tended, the first being ten years ago when she recieved an award for 50
years in the industry.
Some of the highlights of her banking career include: 1926 — when
the bank moved into its present building; 1933 — during the depres­
sion there was the bank holiday which lasted about 2 weeks; 1953 —
the bank became state chartered, and 1979 — an in-house computer
was purchased.
When asked what she felt has been some of the most important or
distressing changes in banking, Ms. Whitehead commented, “ All the
interest rates and so many kinds of savings and checking accounts.
Changes are happening so fast.”
Ms. Whitehead plans to continue with the bank but slowly cut back.
“ If I stayed home I ’d lose contact with the people and a lot of
customers are third generation.”


Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

Feb. 15-17— Bank of North Dakota M id -^
Winter Break, Bismarck.
Apr. 2-4— NDBA Washington Visit, L-Enfant
Plaza, Washington.
Apr. 9-11 — NDBA Head Teller Workshop.
May. 8-9— NDBA Agricultural and Consumer
Credit Conferences, Sheraton Inn, Minot, a
June 3-8— NDBA School of Banking, Univer­
sity of North Dakota, Grand Forks.
July 5-7— Dakota Bankers Centennial Con­
vention, The Broadmoor, Colorado

Apr. 22-25— WBA Biennial Washington, D.C.
June 13-15— WBA 75th Annual Convention,
Jackson Lake Lodge.

Reinsurance Agreement
MGIC Indemnity Corporation
and the CNA Insurance Companies^
have jointly announced that CNAW
has acquired a majority of MGIC In­
demnity’s casualty insurance busi­
Under terms of the agreement,^
CNA, presently the nation’s third
largest professional liability in­
surance carrier, assumes the basic
reinsurance risk for all of MGIC In­
demnity’s professional liability in-0
surance—financial institutions, as
well as related programs.
The book of business, valued at
approximately $25 million in annual
premium, includes such financial^
liability coverages as directors and
officers liability, trust errors and
om ission s, m ortga ge in terest,
IRA/Keogh Plan E & O, pension
trust liability, non-profit organiza-^
tion professional liability insurance,
and form 22 and 24 blanket bond
MGIC Indemnity, based in Mil­
waukee, remains a wholly-owned^
subsidiary of MGIC Investment

G. Dixon Named Member
Of Conference Board


George H. Dixon, chairman, presi­
dent and chief executive officer of
First Bank System, Inc., Min­
neapolis, was elected recently to a ^
two-year term as a member of The
Conference Board.
The Conference Board is a non­
profit, international business re­
search organization based in N ew ^
York City. Founded in 1916, the
Board studies and provides informa­
tion on management, economic and
public issues to the public and to
more than 4,000 s u b s crib in g ^
organizations in over 50 nations.

We turn on a dime
so you can turn a larger
W hen m oney is expensive, so is the
time funds are idle. T h at’s why so
many banks rely on Northern
Thist Bank for profit-enhancing
correspondent services. Our exper­
tise in getting funds to work
quickly and profitably has earned
us the reputation of being a pre­
miere processor for correspondent
banks. In fact, in independent
surveys, The Northern Trust
consistently ranks am ong the top
three cash management providers
in the industry.
The latest in com puter tech­
n ology assures check collection
and safekeeping th at’s accurate
and fast. Our Cashline Balance
Reporting System gives you elec­
Federal Reserve Bank of St. Louis

tronic access to your account for
maxim um flexibility. You can get
a fresh update every 15 minutes
if necessary —and m ove m oney
within hours rather than days.
A d d to our sophisticated
equipment the best in personal
attention and responsiveness, and
you get Northern T hist’s ideal
com bination of quality and effi­
ciency. A dedicated staff of profes­
sionals assures you personal
attention in all transactions.
We’re also ready to assist you
in handling your investments.
A nd our experienced Bond
Departm ent representatives
are always on hand to provide
knowledgeable advice.
W ith Northern Thist Bank
behind you, you can count on
better service for your customers.

A nd a better bottom line for your
bank. For more information,
contact Curtis E. Skinner, Senior
Vice President, Northern Thist
Bank, 50 South LaSalle Street,
Chicago, Illinois 60675. Telephone
(312) 630-6000. M em ber F.D.I.C.

The more you w ant
your bank to do,
the more you need
The Northern.


I f your prim ary correspondent
doesn’t look com m itted
to your business, take a look at
First B an k M inneapolis«

ft* ft

fHJT *
Federal Reserve Bank of St. Louis



Com m itm ent.
T h e kind that says we’ll be
responsive to your needs, no matter
what the changing environment
That’s what we’re all about at
First Bank Minneapolis, and maybe
that’s why more banks in the Upper
Midwest use us as their primary
correspondent than any other bank.
As other banks edge slowly
out o f the correspondent banking
business, we move ahead with:

♦ the largest staff o f professional
calling officers in the region so that
our primary respondents will see
their calling officer as often as
they’d like.
♦ a 30% increase in our data proc­
essing staff so that we can handle
your needs more rapidly and
♦ the kind of lending philosophy
that has allowed us to double our
correspondent bank loan portfolio
in the last four years.

So if you’re getting the idea
that we are the most committed
correspondent bank around, you’re
getting the right idea.

First Bank
Correspondent Banking
First Bank Place
Minneapolis, M N 55480

We are w hat you w ant a correspondent bank to be.
Federal Reserve Bank of St. Louis



Bank Prom otions



ROMOTIONS and other an­
nouncements have been made
by the following banks:
Continental Bank, Chicago:
Stephen D. Balsamo, vice president
of the parent company, Continental
Illinois Corporation, has been ap­
pointed general manager of the sub­
sidiary Continental Illinois Corpora­
tion Financial Futures and manager
of the portfolio services and finan­
cial futures division of Continental
Bank. Mr. Balsamo, 34, has respon­
sibility for worldwide financial
futures brokerage activities for Con­
The following have been elected
vice presidents within the bank:
Gwendolyn L. Hatten, credit risk
evaluation; J. David Smith and
Albert W. Spranger, corporate per­
sonnel services-corporate affairs
department, and Fidel L. Lopez,
director of area development.
N ew ly e lected secon d v ice
presidents are:
Joan D. Schneider, economic
research; Stephanie B. Hansen,
John J. Matusiak and John I.
Moore, Jr., personal banking ser­
vices, and Joan F. Neal, corporate
Commerce Bank, Kansas City:
These promotions were announced
recently by Commerce Bank offi­

To vice president: Jon R. Bakalar,
correspondent bank department,
and James A. Deberry, trust ad­
To assistant vice president:
Elliott J. Passman, manager of
foreign exchange, and Margaret M.
Caldwell, both in the international
To commercial banking officer in
the U.S. banking department:
Calvin R. Kleinmann, for the
southern Missouri region. To con­
sumer banking officer: Sarah E.
Mr. Bakalar has joined Commerce
Bank after 10 years at First Na­
tional of Topeka, where he had been
vice president of operations since
1978. He holds a BBA in Accoun­
ting from Washburn University.
Mr. Deberry joined Commerce as a
trainee in 1959. From 1970 to 1978
he worked in the trust areas of three
midwestern banks.
First National CharterBank of
Kansas City: Two newly elected di­
rectors are W.D. Grant, chairman of
Business Men’s Assurance Com­
pany of America, and John T. Lundegard, chairman and CEO of West­
ern Auto Supply Company.
Within the bank, Edward M.
Hughes was elected vice president.
He serves as commercial loan officer

Insureco, Now It’s
Twice A s G ood
If one is good, two is better. That’s what Insureco is now
offering its banking friends across the country — TWO pro­
duction centers that can quickly and efficiently input their
insurance data into an exclusive national computer track­
ing system. What does it mean to the lender? It means he
now has at his disposal simply the best, most effective in­
surance tracking operation designed exclusively for len­
ding institutions. As you probably know, Insureco does all
the work while you reap the benefits. If you need
assistance or want to know more about Insureco’s in­
surance programs, call the nearest branch office.

OFFICES: DETROIT— (313) 961-9690 ATLANTA— (404) 458-2141
D A LLA S — (214)
661 -83 00 LAS
VE G A S — (702)
385-8224 PHOEN IX — (602) 264-0250 PO RTLAN D — (503)
SAN DIEGO— (619) 560-0061
SEATTLE— (206)
232-4880 KANSAS CITY— (913) 268-6123

for FRASERBanker, November, 1983
Federal Reserve Bank of St. Louis

for the agri-business ¡group. Mr. ^
Hughes who joined First National in
1979, was graduated from Central
Missouri State University, Warrensburg, with a BS in Business Admini­
stration and from the University of £
Missouri at Columbia with an M A in
Business Administration.
United Missouri Bank of Kansas
City, N.A.: Phillip D. Straight has
been promoted to executive vice pres- 4 >
ident and manager of the correspon­
dent bank division. Mr. Straight
received his degree from Kansas
Wesleyan University and has com­
pleted studies at the Graduate ®
School of Banking at the University
of Wisconsin. He joined United Mis­
souri in 1973. Before that he was in
sales and was a teacher and coach
for Central Missouri State and the ®
Independence, Mo., school system.



Richard W. Brooks also has been
promoted to executive vice presi­
dent. He is the senior officer in
charge of the national division in
commercial business development.
Mr. Brooks joined United Missouri
as an assistant vice president in
March, 1978. He has an associate
degree and is a graduate of the Uni­
versity of Nebraska Advanced
School of Advanced Banking and
the Missouri Banker School of Agri­
Elected vice presidents at United
Missouri Bank were: William A.
Faust, trust department; Kent
Workman, business development
department; James J. Waterman,
operations department, and Ray
Boyer, employee benefits depart­
Others promoted were: James C.
Jackson, assistant vice president at
State Line facility; Mark A.
Schmidtlein, commercial loan divi­
sion, and Ruben Perez, collection
manager in the installment loan de­
partment, both to assistant cashier;
Robert W. Brickson to bond invest­
ment officer, and Susan I. Schaal to
assistant operations officer in the
check processing department.


You get the profits without the
problems when you get MasterCard
and Visar programs from Marine.
That’s w hy m ore than 300 financial institutions in 35
states have com e to Marine Midland for their MasterCard
and Visa programs. And w hy you should, too. Just look at
all we offer you.
□ The w orld’s best-used credit cards for your custom ­
ers. □ Your organi­
zation’s name prom i­
nently displayed on
the cards. □ No prod­
uct developm ent
problem s and m ini­
mal start-up costs.
□ Trouble-free service in
such critical areas as credit,
processing, custom er service,
and marketing. □ Guaranteed
incom e from 7 different sources as
soon as you affiliate. □ Use o f the cu s­
tom er file. □ A ccess to new products and
services. □ A nationwide network o f account
officers and service representatives. □ Over 29
years’ experience in the developm ent o f credit card programs.
So whether you will be issuing credit cards for the first
tim e or are just ready to give up the headaches o f processing
them yourself, do what so m any financial institutions have
done. Get your MasterCard and Visa program s from Marine.
And get the profits without the problems. Call Jim Willman,
Sales Manager, (716) 843-5179. m arine m idland b a n k ,n.a

Make it happen with Marine.
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1983


Three CD's and a pastrami to go?
Sounds good. The point is that dereg­
ulation and competition from non­
banking sources have greatly changed
the way the banking industry does
business. InnerLine, the computerbased management support system,
J ft
W *W I
helps you manage change more efficiently, more
l l f e l I
profitably in this complex and competitive banking
environment. It caters exclusively to the financial
community, delivering essential need-to-know information
that will help you buy and sell funds more profitably and
set competitive deposit rates. Facts, figures, timely trends,
commentary, analytical data and more are supplied by the
industry's foremost economists, journalists, researchers and consultants. It's all part of the
InnerLine menu of over 40 financial services served up in less than a minute over any desk-top
computer. And InnerLine comes to you for a per/day cost of less than you'd spend on lunch
at your favorite deli.
For more information call toll-free 1-800-323-1321. (In Illinois call 1-800-942-8861.) Or write
InnerLine, 60 Gould Center, Rolling Meadows, Illinois 60008.


Banker, November, 1983
Federal Reserve Bank of St. Louis


PICTURED at the Iowa reception honoring C. Robert Brenton (left) and his wife, Babette, on his election as president of ABA for 1983-84
were Al Maser (center), pres., Iowa Bkrs. Assn, and chmn. & pres., 1st Natl., Le Mars, and Delores, with J.C. and Neil Milner, exec, v.p., Iowa
Bkrs. Assn., Des Moines. RIGHT— Also on hand from the IBA staff to honor Mr. Brenton and greet guests were (seated): Terry Carr; Millie
Uding, v.p., Iowa Bankers Insurance & Services, Des Moines; Marge Dooley, and Sue Tinder. Standing: Bill Carr, v.p., Iowa Bankers In­
surance & Services, Des Moines; Glenn Uding; Dale Dooley, pres., ITS, Inc., Des Moines, and Al Tinder, pres., Iowa Bankers Insurance &
Services, Des Moines.

Bob Brenton Assum es ABA Presidency








i i Q EGAININ G of their fair market share is the
■ » major challenge for bankers today," the more
than 12,000 bankers attending the American Bankers
Association annual convention in Honolulu last month
were told by new A B A President C. Robert Brenton.
"T o meet that challenge, we must widen our competitive territory, must step outside the traditional
stretch to which we have been limited for so many
years. And this means that the years ahead will be a
time of trial, a period of testing."
Mr. Brenton is president of Brenton Banks, Inc.,
Des Moines, la., a 16 bank holding company with
assets nearing $1 billion. He was installed in office just
31 years after his father, W. Harold Brenton, assumed
the same A B A position, making them the first fatherson combination in the A B A ’s more than a century of
service. W. Harold Brenton died in 1968.
Mr. Brenton succeeds William H. Kennedy, Jr., who
now becomes chairman of the A B A Council, a position
held this past year by the 1981-82 A B A president,
Lewellyn Jenkins. Mr. Jenkins is retiring soon as vice
chairman of Manufacturers Hanover Trust Company
to head a committee for the Restoration of the Statue
of Liberty.
In his president’s address, Mr. Kennedy noted the
gains made by bankers of the nation once they became
united—reversing the trend of the Money Market
Mutual Funds, and defeat of the 10% Withholding Tax
Bill that was passed—and called on bankers of all sizes
and philosophies to unite for further benefit to banking
and their customers.
Sen. Inouye Is Keynoter
The opening session before a packed house at the
Neal Blaisdell Convention Center featured a keynote
welcome address by Hawaii’s Democrat Senator
Daniel K. Inouye that set the serious tone of both
general and special session discussions. Sen Inouye
Federal Reserve Bank of St. Louis

paid high tribute to the three men who shared the plat­
form that first session after him—Mr. Kennedy, Fed
Chairman Paul Volcker and Citicorp Chairman CEO
Walter B. Wriston. He said they "are, without doubt,
the three most influential men in America on the sub­
ject of banking. And, because of the role American
banking plays on the international stage, they may
well be among the most influential men in the world of
world banking." He paid tribute to the aggressive
style of leadership exhibited by Mr. Wriston.
About Paul Volcker, Sen. Inouye stated, "I wish to
say at this time, ‘Thank God we have Paul Volcker at
the Federal Reserve.’ This does not mean that I agree
with everything he has said or decided, but he has been
tough when the Fed had to be tough and easy when it
should relax . . . I would also like to salute his out­
standing achievement in devising the debt refinancing
plan when the international liquidity crisis hit last
year. Alone, of the major policymakers in Washington,
he had both the experience and the imagination to con­
ceive of the bridging plan that gave us breathing room
to devise a more permanent solution to the interna­
tional debt problem."
Continuing, Sen. Inouye said, “ I would also like to
welcome to Hawaii the distinguished president of the
American Bankers Association, William H. Kennedy
. . . Mr. Kennedy has presided over one of the most
tumultuous years in the history of the banking in­
Sen. Inouye gave strong support to United States’
participation in IMF and the need for increased finan­
cial contribution to IMF.
Chairman Volcker Supports IMF
Chairman Volcker also supported the IMF and call­
ed it imperative to increase U.S. financial support of
the fund. His lucid analysis of the international situa­
tion in many foreign nations and their financial pro­
blems was sobering and educational. He also strongly
defended the concept of the Fed continuing as both
Northwestern Banker, November, 1983

regulator and maker of monetary policy. “ The idea
that something called monetary policy can be sepa­
rated from concerns about the strength and nature of
the institutions that actually supply and manage the
money supply and of the payments system itself
strikes me on its face as illogical,” he stressed. He
chastised those bankers who support strong monetary
policy and stability in the international system, “ Yet,
I then learn of banking lobbyists scurrying around
Washington promoting the notion that somehow these
concerns—monetary and regulatory policy—should be

administratively divided. That naive and narrow notion, I fear, seems to underly a recent pronouncement
by the A B A itself. I hope I have misinterpreted it.”


Walter Wriston Speaks
Citicorp’s Walter Wriston made an extensive case
for judging the capital adequacy of each institution on
its own merits instead of by a generalized rule. “ None
of this means that prudence should ever be forgotten,”
he noted, “ or that the time-tested rules of credit and
management no longer apply. What it does mean is <H

LEFT— Northern Trust Co. of Chicago guests were welcomed to that bank's reception by Dave Fox, vice chmn., and Mike, and Patricia and
Charles Barrow, pres. RIGHT— Bob Sizemore, pres., Montana Bkrs. Assn, and pres., Western Bank of Chinook, and Marje; Bob Sipple, sr.
v.p., American Natl. B&T, St. Paul, and Brownie, and Bruce Erickson, pres., First Security, Livingston, Mont., and Carolyn, at American

LEFT— Tom Allen, pres., Omaha Natl., Omaha, and Millie, as senior host couple for ONB’s reception at The Aquarium, greeted two old
friends from Idaho— Evelyne and Berne Jensen, exec, dir., Idaho Bkrs. Assn., Boise. RIGHT— also greeting guests at ONB party were John
Martin, v.p., and Linda, pictured with Janet and Sherrod France, pres., Rawlins Natl., Rawlins, Wyo.

SEVERAL Nebraska bankers were among the guests at First Natl. Bank of St. Joseph, Mo., reception. Left to right in the two photos are:
Benton O’Neal, vice chmn., 1st Natl., St. Joseph, and Evelyn; Charles R. Leffler, chmn., Sioux Natl., Harrison, Nebr., and Hermine; Roger
Hegarty, chmn., First Natl., St. Joseph, and Jessamine; Tom Bass, pres., Bank of Swanton; Denny Bell, loan off., Crawford State, Crawford, #
Nebr., and Alice and Dan Fisher, Northwestern Natl, of Grand Island, Nebr.

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

^ that we have now movpd into a new era in which mar® ket discipline is substituted, in part, for Reg Q and
other artificial supports.” He likened the problems ex­
perienced by banks in trying to compete in recent
years with cave people coming out into the sunlight,
^ which strips away the shadows they previously feared.
In closing he said, “ Perhaps it is time for us all to
stand together and demand the right to compete to
hold our customers . . . I believe that if we all stand
together, we can not only share in this dream, but that
^ we can play an important role in making it all happen.”

Another first session speaker who staunchly sup­
ported the IMF was The Hon. Andre de Lattre, special
representative, IDA, The World Bank. He threw his
support behind the increased funding needed to make
IMF continue as a viable response to the needs ex­
pressed by developing nations.
Former President Gerald R. Ford was the opening
speaker at the Tuesday general session and his re­
marks were reported in detail in the October 17 N orth ­
western B anker Weekly Newsletter.
The Hon. Thomas P. O’Neill (D., Mass.), Speaker of

GREETING guests at Manufacturers Hanover B&T of New York reception were Don McCree (left), exec, v.p., and John McGillicuddy, chmn.
& ceo. RIGHT— Heading the reception line for First Natl. Chicago were Richard Thomas (left), pres., and Amy and Neal Trogdon, sr. v.p.

GUESTS were welcomed to the United Missouri Bank of Kansas City breakfast by Anne and Lyle Wells (left), vice chmn., and Judy and Dick
King, pres. RIGHT— Aloha greetings were extended at Chase Manhattan Bank’s brunch by (from left) George Woodnorth, v.p., and Dot;
Bob Meyer (rear), v.p.; Libby Glazer, special events off., and Ed Allinson, exec. v.p.


ILLINOIS bankers were received by William Hocter, IBA exec, v.p., and June; Kath and Chuz Wilson, IBA treasurer, chmn., 1st Natl, of the
Quad Cities, Rock Island; Carolyn and T.R. McDowell, IBA secy., pres., 1st Natl., Westville, and Carol and Don Lovett, IBA pres., chmn. &
pres., Dixon Natl. RIGHT— Illinois bankers also were welcomed by LaSalle Natl, of Chicago at that bank’s reception by Nancy and Emil
Schubert, v.p., and Cheryl and Hill Hammock, exec. v.p.
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1983

the House, was scheduled to appear but sent his re­
grets and was represented on the stage with a several
minute television tape he recorded at his Washington
House office. He blasted Fed Chairman Paul Volcker
for “ a disastrous experiment in monetarism,” he
blamed President Reagan for disastrous deficits, poohpoohed the business recovery, blasted President
Reagan further for military defense expenditures, and
said “ fiscal policy in this nation is in a shambles.”

None of the blame for any of these actions apparently ^
lies with the United States House, according to Mr.
O ’Neill’s brief remarks.
Dr. Milton Friedman was the windup general ses­
sion speaker and took issue with just about everything
and everybody who had appeared before him. He q
(Turn to page 66, please)

First Bank Minneapolis hosted a luncheon for Minnesota and upper midwest bankers. From left to right in both photos are: Sandy and
Dick Schoenke, pres., and Mary Jayne and Dennis Evans, chmn. & ceo., both men with the host bank; Roy Terwilliger, pres., Suburban
Natl., Eden Prairie, Minn., and Mary Lou; Ken Wales, sr. v.p., First Bank Minneapolis, and Patti; Mary Lou Campbell; Mike Boncher, v.p.,
First Bank Minneapolis, and Marv Campbell, chmn., First American Bank, Brainerd, Minn.

LEFT— Herb Lund, pres., Minn. Bkrs. Assn, and pres., Security State, Albert Lea, Minn., and Mona; Dell and Darold Petersen, pres., N.D. ^
Bkrs. Assn, and pres., Lakeside State, New Town N.D., and Nancy and Charles Ekstrum, pres., S.D. Bkrs. Assn, and pres., 1st Nati., Philip. ^
RIGHT— Gretchen Tea (far left), adm. mgr. of Montana Bkrs. Assn., Helena; Shirley and John Cadby, exec, v.p., Montana Bkrs. Assn.; Pen­
ny and Wayne Berthiaume, adm. v.p., Minn. Bkrs. Assn., Minneapolis; Linda and Harry Argue, exec, dir., N.D. Bkrs. Assn., Bismarck, and
Leila and Truman Jeffers, exec, v.p., Minn. Bkrs. Assn.

LEFT— Enjoying the Iowa reception were Dudley Moore (left), pres., Citizens Bank, Byhalia, Miss., and Frances, with their old friends Ollie
Hansen, chmn. & pres., Liberty T&S, Durant, la., and Chrystol. RIGHT— Hosting the luncheon for Merchants Natl, of Cedar Rapids, la., #
were Mary and John Mangold, sr. v.p., and Betty and Jim Coquillette, chmn.
Banker, November, 1983
Federal Reserve Bank of St. Louis


Where funds go,
float will follow!
Written especially for
T he N orthwestern B anker

Float Manager, Finance and Planning Department
First Bank Minneapolis

Recommendations from Study
ANKERS today are looking for new ways to re_
duce float—that non-earning asset that haunts The study’s recommendations, and our efforts since
then, have contributed to the development of a bank­
managers and hurts bank performance. Say “ float” to
wide float control program. Our first step is to identify
a group of bankers and most respond with “ check­
areas where float reduction would have the highest
clearing.” But limiting float control programs to this
dollar impact. This helps us in choosing among the
operations mainstay is to limit opportunities for makmany possible projects we could be working on. With
# ing significant gains in reducing the costs of float.
only so much time, money and people to work on solu­
There are many other areas of banks that offer those
tions, it pays to be working on the right problems.
same kinds of opportunities.
After that, it becomes a lot like detective work. We
Float Study Initiated
gather the facts and try to discover what’s causing
Two years ago, First Bank Minneapolis hired the acfloat to be so high in that area. A t this point, it’s im­
^ counting firm of Peat, Marwick, Mitchell and Com­
to not jump to conclusions too quickly; in­
pany to conduct a comprehensive float study inside
stead, we try to look at and understand how the whole
our bank. The scope of their study was to look at float
system works—how things fit together in particular
in all areas of the bank, not simply in the operations
subsystems, what procedures are used to handle and
area where most studies traditionally focus.
pass on funds, how different subsystems mesh with
This bank-wide perspective was helpful then and is
others, and so on. Then we break down the costs and
critical today. It is the key float control at our bank.
define what costs the bank is absorbing by processing
More of our non-operations managers now understand
funds in the way it does.
that opportunities for reducing float can occur in their
^ areas, too—in fact, wherever there are funds moving
Solutions Require Thought
^ through the organization.
Just as important as avoiding jumping to conclu­
The six-month study was prompted primarily by
sions on the nature of the problem is to avoid jumping
two factors. With rising interest rates the cost of fun­
to conclusions about solutions. As we get more ex­
ding this non-earning asset was getting expensive. But
perience in this systems approach, we realize that no
^ while high interest rates got people’s attention, a
change is made in isolation. It’s essential to study the
w longer-lasting and more significant factor came into
possible effects of the changes on customers and other
play—the Monetary Control Act of 1980. It was impor­
bank systems, and to balance the risks and benefits.
tant for us to anticipate the Fed’s legally mandated ef­
A good example of this is when making decisions
forts to reduce or eliminate float by full-cost pricing its
about cut-off times. On the surface, the decision looks
^ check-clearing service. We needed new float control
pretty easy: move back the cut-off time and float can
and pricing strategies to minimize the cost/price
be reduced. But by how much? What effect will these
squeeze caused by the Fed’s dual role as supplier and
changes have on customers? Which customers will be
competitor—they were increasing the costs of services
most affected? Which areas of the bank will be af­
they supplied to us while maintaining low prices in
fected? What opportunities become possible? What im­
^ areas where we compete directly with them.
pact will our various alternatives have on other pro­
ducts? Only with the answers to these and a host of
□ ABOUT THE AUTHOR— Jeanne M. Voight is float manager in
the Finance and Planning Department of First Bank Minneapolis.
other questions can we look at the alternatives, the



She joined the bank in 1981 as a planner in the Strategic Planning
Department and was named to her current position in January,
1983. Ms. Voight holds an M.B.A. in finance from the University of
Federal Reserve Bank of St. Louis

(Turn to page 64, please)
Northwestern Banker, November, 1983


Two years of
hard work . . .


. . . and success! •

Executive Vice President
Oklahoma Bankers Association
Oklahoma City, Okla.
. . . designated press
spokesman for MABSCO


UR PURPOSE is to serve banks—of whatever
V y size and whatever structure—in the states
involved through the development and provision of
services the banks indicate they want and need.”
It was with those words that Richard Gandrud, a
Minnesota banker, introduced the MABSCO concept
to bankers across the twelve states in the Midwest and
Southwest early in 1981. The vision which he and other
bankers and state association executives had at that
time has become a reality.
MABSCO Bankers Service, Inc., was incorporated
in September of 1981. It was established as an effort to
pool research and development activities on possible
services which could enable banks to compete more ef­
fectively, or to operate at a lower cost.
R & D Follows Two Steps
The research and development activities are divisi­
ble into two segments. The first is a determination of
the kinds of programs to be developed for banks which
will allow them to increase their ability to serve custo­
mers, and at the same time contribute to their long­
term profitability. The second is a study of those pro­
grams to determine what is permissible under the laws
and regulations of the traditional bank regulators and
the myriad laws and regulations of other agencies in
what has become the financial services industry.
□ T he N orthwestern Banker salutes MABSCO on its second an­
niversary, as well as all those dedicated bankers and association
executives who worked so hard to bring this idea to fruition. This
exclusive article gives the highlights of MABSCO’s formation,
development, and current programs.

Banker, November, 1983
Federal Reserve Bank of St. Louis

The first of these steps was accomplished in each in­
stance by the input of bankers and bank association
executives. The second combined the efforts of those •
persons with the work of counsel for MABSCO.
M ABSCO’s research and development efforts have
produced a banker’s money market fund and discount
brokerage service, a unique agricultural credit corpora­
tion, a videotape-based training series which can be ®
rented and, most recently, the first of an expected
series of group insurance programs.
Skeptics Now See Success
There were many skeptics when the MABSCO con- ||
cept was revealed in 1981. It seemed almost impossible
to coordinate an effort involving twelve state bankers
associations which represent almost half the banks in
the United States. Yet, those working on the project
saw this diversity and great number of banks as highly
beneficial. They contended, and rightly so, that the
presence of large numbers of small banks made the
MABSCO concept highly feasible and desirable. The
concept, as envisioned by those working on the project
from inception, was to combine the resources of many 0
smaller units into a large unit to gain a significant
marketplace presence—be it as a buyer or developer of
products and services.
Funding for the MABSCO effort came initially from
purchase of $5,000 in stock by each of the participât- #
ing states, along with a term loan commitment. Loan
commitments from the 12 state associations, which
were based on the size of the industry in each state,
total about $200,000.
First Financial Management Account
M ABSCO’s first market entry was its Financial
Management Account, a combination money market
fund and discount brokerage service. MABSCO Finan­
cial Services, Inc., was organized in February of 1982, 0
and agreement was reached with the Fidelity Group of
Boston to structure this service package. The first
bank enrolled in the program in April of 1982.
The money market fund/discount brokerage service
entered the marketplace at about the same time Con- #
gress began to seriously discuss offering commercial

_ banks direct authority to offer market rate transac* tion accounts. The result was minimal usage of the ser­
vice package and ultimately a decision by most par­
ticipating banks to offer thier own money market de­
mand accounts of super NOW accounts and discon^ tinue offering the Financial Management Account.
Many feel the presence of M ABSCO’s Financial
Management Account had significant influence on
Congress and its ultimate granting of direct authority
for banks to offer market rate accounts.
The board of directors of MABSCO acknowledged
the change which had taken place with Congressional
passage of the Garn-St Germain Act and concluded
that continued offering of this service was counter-pro­
ductive to commercial banking. Thus, the money
0 market project was terminated early in 1983. The dis­
count brokerge service also was terminated due to its
availability directly from Fidelity and numerous other
purveyors of that service.







Second—A g Credit Corporation
Even while the money market mutual fund/discount
brokerage service was being developed, a task force
was at work developing M AB SCO’s second venture.
From that effort emerged MABSCO Agricultural Services, Inc., (MASI), an agricultural credit corporation
which features a low cost of entry for participating
banks and can be used to compete effectively with the
Farm Credit System. Early discussions with the Farm
Credit System, insurance companies, and a number of
large domestic banks led the MABSCO task force into
discussions with a foreign bank.
M ASI has emerged as a viable farm credit entity
which is already being used by banks in nine states. It
is available to support participating banks with
overline or liquidity loan assistance through the sale of
qualifying loans to Rabobank Nederland of the
Netherlands through MASI.
Banks enroll in the M ASI program through the pur­
chase of a capital note and acceptance of terms and
conditions set forth in agreements with M ASI and
Rabobank. The program has been approved by state
and federal regulators and is functioning smoothly ac­
cording to banks using the program. The maximum
capital note purchase required for participating banks
is $14,750, while smaller banks may enter for as low as
A key attraction of M ASI is the opportunity for
banks in this traditionally capital short region to have
a reasonable priced and reliable source of funds to
assist agriculture.
Third—Videotape Education
Bankers across the 12-state region received initial
word in August of the offering of a selection of
videotape education programs which can be rented
from another MABSCO corporation, MABSCO Video
Services, Inc., which was formed in March of 1983.
Marketing the tape rental program under the name of
Video Bank Education Service, or “ V IB E S,” a library
of 31 training tapes has been assembled. The tapes
cover such topics as teller training, customer service
skills, security training, and professional officer calls.
Member banks of the sponsoring 12-state bankers
associations can enroll in the “ V IB E S ” program for a
minimal amount, then rent any tapes contained in the
tape library for $35 per week. The program is seen as a
Federal Reserve Bank of St. Louis

low-cost way for banks to train employees without in­
curring significant time loss and travel expense, and
without accumulation of large, expensive inventories
of out-of-date tapes. It’s expected the tape library will
be substantially expanded in the future.
Fourth—Insurance Subsidiary
MAB SCO’s most recent undertaking is formation of
an insurance subsidiary—MABSCO Insurance Ser­
vices, Inc. That company is in the final stages of
negotiation to launch a worker’s compensation in­
surance program for member banks. Through the cap­
tive company approach, it’s anticipated MISI can
return significant portions of premium back to par­
ticipating banks through dividend programs. It’s an­
ticipated the workmen’s compensation program will be
the first of several bank coverage insurance programs
to be offered by MISI.
Not all ideas investigated by the banker committees
and task forces of MABSCO have resulted in decisions
to proceed. One of the early programs designated for
examination by the corporation was a mortgage bank­
ing company. The task force studying feasibility of
that program returned to the board reporting such a
service would duplicate what was readily available in
the private sector and that it would not be a proper
business activity for MABSCO.
Ownership—Management Structure
The MABSCO organizational structure utilizes a
parent company (MABSCO Bankers Services, Inc.) to
own all stock in various subsidiary corporations. Each
service project is organized under a separate sub­
sidiary in order to allow states the option to par­
ticipate in each individual project. The holding com­
pany is governed by a 36-member board of directors,
three from each of the 12 participating states, while
subsidiary company boards are composed of bankers
and state association executives of states which are ac­
tive in the respective programs.
The parent company serves as the research and
development organization, and the vehicle for concen­
trating both research work and “ seed” money for new
projects selected by the parent board. Projects are exMABSCO . . .
(Turn to page 74, please)

The MABSCO 12state region extends
from Arkansas and
Oklahoma on the
south to the Cana­
dian border on the
north and everything
in between. Nebras­
ka, one of the original
participating states,
withdrew from the
program early in 1983.

Northwestern Banker, November, 1983


Manufacturers Hanover Announces
Senior Management Promotions
a n u f a c t u r e r s Hanover
Trust Company New York, has
announced a series of senior man­
agement promotions in connection
with the realignment of major opera­
ting units and formation of a new in­
vestment management subsidiary.
In making the announcement,
John F. McGillicuddy, chairman
and chief executive officer said:
“ This is part of an ongoing effort to
better align management and
resources with priority market seg­
ments. This new organizational
structure will sharpen manage­
ment’s focus on markets and will
enhance service to the different
customer groups.”




John J. Evans and Edward A.
Farley were elected vice chairman,
Mr. Evans with continuing responsi­
bility in the operational area and
Mr. Farley with special responsibili­
ty for domestic credit matters. They
had been executive vice presidents
in charge of the Operations and Met­
ropolitan Corporate Banking Divi­
sions respectively.

Organizational changes include
• A North American Banking Di­
vision, combining units of the
Metropolitan and National Divi­
sions, with Donald H. McCree, Jr.,
executive vice president, as division
head. The new division will have
responsibility for corporate and cor­
respondent banking in the U.S. and
• An Energy Division, headed by
Conrad P. Albert, who was elected
executive vice president, with conti­
nuing work-wide responsibility for
energy-related financing.
• A separate Institutional Trust
and Agency Division, with Joseph
L. McElroy, executive vice presi­
dent, as division head. The division
will be the banking industry’s
largest to specialize in the synergis­
tic aspects of master and corporated
trusts, stock transfer and other in­
stitutional agencies.
• An investment management
subsidiary, Manufacturers Hanover
Investment Corporation, headed by
Victor J. Melone, who was elected
president of the new subsidiary. He
had been senior vice president and
deputy general manager of the trust
division and served as chief invest­
ment officer. The new subsidiary
will have investment responsibility
for $22 billion of assets.
• A Private Banking and Securi­
ties Industry Division, headed by
Albert R. Gamper, who was elected
executive vice president. Mr.

Gamper had been senior vice presi­
dent, Corporate Planning.
• Manufacturers Hanover Mer­
chant Banking Group, headed by
S.A. Constance, who was elected ex­
ecutive vice president, with continu- ^
ing responsibility for merchant *
banking activities worldwide. He
had been senior vice president and
deputy general manager in charge of
Manufacturers Hanover Ltd., the ^
London-based merchant bank.
• A Special Financing Group,
headed by Frank C. Wright, Jr., who
was elected executive vice president.
He had been senior vice president g)
and deputy general manager in the
former Metropolitan Division.
Other senior management chang­
es include the promotion to ex­
ecutive vice president of: Robert W. ^
Keith, personnel; David W. Larson,
operations, and William C. Langley,
credit administration.
In addition, Michael Hegarty was
elected senior vice president and ||
deputy general manager, energy
division. He had been senior vice
president, energy group.
New senior vice presidents in­
Edward G. Beach, North Ameri­
can banking division; Michael R.
Brundage, energy; Joseph S. Jasionow ski, in stitu tion al trust;
Donald H. Layton, portfolio and in- #
vestment banking, and Martin H.
Zuckerman, personnel.
In addition, Robert T. Colleran
and Robert Schwartz were elected
deputy general counsel, legal.
J. Kevin McMahon, senior vice
president, will succeed Mr. Gamper
as officer-in-charge of corporate

Stephen Verdier Named
IBAA Legislative Counsel





Banker, November, 1983
Federal Reserve Bank of St. Louis





T he In d e p e n d e n t B a n k e rs
Association of America has announced that Stephen J. Verdier,
counsel to the House Committee on
Banking, Finance and Urban A f­
fairs, has joined the Washington
staff of the Association as legislative counsel.
Prior to joining the House Bank­
ing Committee staff in 1976, Mr.
Verdier, 33, was a law clerk in the
antitrust division of the Department
of justice. He received his law
degree from Catholic University in
Washington, D.C.; his undergradu­
ate degree from American University.






W hen America’s
com m unity banks
on Chase,
havea team
of conm iunity bank

We’ve put together a special Chase team
o f bankers, thoroughly knowledgeable about your
community bank opportunities and needs, who
are prepared to help.
So when you call on our money market
investment resources, trust or other services,
you have a personal contact at Chase.
Call George Woodnorth, (212) 552-6679.
Let’s talk more about it.

>1983 The Chase Manhattan Bank. N. A ./M e m b e r FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1983


BMA Members Approve ABA Affiliation
Y AN overwhelming margin,
members of the Bank Market­
ing Association have approved a plan
to affiliate with the American Bank­
ers Association.
The merger plan, first announced
last July by the BM A board of direc­
tors, was adopted in balloting by
BM A members on a vote of 2,103 to
To win approval, the A B A affilia­
tion plan required two-thirds of
those voting in person or by proxy
at a special meeting of the BM A
membership held in B M A ’s Chicago
headquarters. More than 55% of the
4,177 eligible members in BM A took
part in the balloting on a proposal to
merge BM A into a new non-profit
Delaware corporation established by
the ABA.
The affiliation, which makes
BM A the marketing arm of the
A B A became effective Nov. 1.
In Washington, then president of
the ABA, William H. Kennedy, Jr.,
called the “ enthusiastic vote” by
BM A members “ an encouraging
sign of a strong, successful future
for both groups.” Mr. Kennedy is



Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

chairman of the National Bank of
Commerce, Pine Bluff, Ark.
The new BM A leadership team
will be headed by Barry I. Deutsch,
senior vice president and head of
marketing and communications at
Mellon Bank, Pittsburgh, who will
serve as president for 1983-84. He
succeeds Richard M. Rosenberg,
vice chairman of Wells Fargo Bank
NA, San Francisco.
It was also announced that 23
savings & loan associations and 11
credit unions have joined the BM A
since last July following adoption of
a new policy by the Association
opening membership to other finan­
cial institutions. Under B M A ’s new
membership rules, financial institu­
tions regulated by agencies repre­
sented on the federal Depository In­
stitutions Deregulation Committee
are eligible for membership in the

Insider Loan Rules Set
The Office of the Comptroller of
the Currency has issued a final rule

on insider lending limits and a proposed rule on insider loan disclosure
and reporting requirements.
The final rule raises the dollar
limit on loans national banks may
make to their executive officers from
$10,000 to $25,000, or 2.5 percent of
bank capital—whichever is higher,
up to $100,000. The limit does not
apply to loans for residential mort­
gage or education purposes.
The final rule also raises the ag­
gregate dollar limit to $25,000 on all
extensions of credit to individual in­
siders, or 5 percent of bank capital—
whichever is higher, up to $500.000.
Insiders include executive officers,
directors, principal shareholders,
and any of their related interests. A
loan exceeding the aggregate limit
must receive advance approval from
the bank’s board of directors.
The proposed rule would require
national banks to report substantial
insider loans on a quarterly, rather
than yearly, basis. Substantial loans
are ones that equal or exceed 5 per­
cent of the bank’s capital and unim­
paired surplus, or $500,000—which­
ever is less.
Banks would report inside loans
in their quarterly reports of condi-







tion, rather than on the separate
year-end forms used now. The names
of insiders with substantial loans
would be available to the public
upon request to the banks. The pub­
lic would have access to information
on the most recent quarter, rather
than only the year-end information
available now.
The proposal retains the require­
ment that insiders make an annual
report to their boards of directors on
the amounts and terms of loans
granted to them by correspondent
banks. The public would have access
to a list of insiders with substantial
loans from correspondent banks
based on the most recently filed an­
nual reports.

RFC Now Offers Greater
Secondary Market Access
Residential Funding Corporation,
Minneapolis, a subsidiary of Norwest Mortgage, Inc., has announced
new loan delivery and funding pro­
grams to help lenders meet their
secondary market objectives in a ris­
ing, falling or stable interest rate en­
The company also announced it

has doubled to $500,000 the max­
imum loan amount on most of the
mortgages it purchases, greatly ex­
panding the secondary market for
loans too large for purchase by
Federal National Mortgage Associa­
tion and Federal Home Mortgage
Two Convertible Three-Year A d­
justable Rate Mortgage (ARM) pro­
grams have been introduced, replac­
ing existing Three-Year ARM s on
owner and non-owner occupied prop­
erties. The new Convertible ARM s
give borrowers the option to convert
to a fixed-rate instrument at the end
of three years.
To simplify participation in its
programs, the company also has
dropped its requirem ent that
lenders provide a letter of credit.
Rebecca L. Walker, president,
said, “ The new loan-delivery system
will allow lenders to participate easi­
ly and profitable in the secondary
market under a variety of mortgage
market conditions.”
Residential Funding, which began
doing business in November 1982,
has to date approved the participa­
tion of more than 1,700 mortgage
lenders in its programs. In the third

quarter of 1983 alone the company
funded $752 million in mortgage
loans, for an annualized rate of $3
billion in funds for housing, Walker
Residential Funding provides a
built-in secondary market for an ar­
ray of mortgage programs on a wide
range of property types in loan
amounts from $30,000 to $500,000.
The company offers 10 mortgage
program s including fixed and
adjustable-rate mortgages, early
ownership mortgages, graduated
payment mortgages and investor

Appointed to BMA Council
Jeanne Czarnecki-Baird, second
vice president in the advisory ser­
vices division of Continental Bank’s
U.S. banking services, has been ap­
pointed to the training and profes­
sional development council of the
Bank Marketing Association.
As manager of advisory services,
Ms. Czarnecki-Baird is responsible
for Continental’s Financial Skills
Development programs for cor­
respondent bankers. She is also a
member of the American Society of
Training and Development.

F rank Bauder. Jim Carm ody. K ath y H ardy.
A ndy R um ents. M ax Roy. John Crotty.

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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1983


Bank of Montreal to Buy Harris Bank


HE BOARDS of directors of
Bank of Montreal and Harris
Bankcorp, Inc. have unanimously
approved a definitive merger agree­
ment. Under the agreement, holders
of the common stock of Harris
Bankcorp will receive $82 cash per
share. Harris Bankcorp has approxi­
mately 6,666,000 common shares
outstanding, assuming full conver­
sion, making this a $547 million
In addition, trustees of Harris
family trusts, voting unanimously,
and individual members of the Har­
ris family, representing in excess of
25% of Harris’ common shares, have
agreed to sell their shares to Bank of
Montreal at $82 per share. They
have also agreed to vote their shares
in favor of the proposal at a special
meeting of shareholders.
The Bank of Montreal - Harris
Bankcorp, Inc. merger agreement is
subject to approval by Harris Bank­
corp shareholders as well as appro­
priate regulatory authorities.
Harris Bankcorp, with assets of
$7.6 billion, is the parent of Harris
Trust and Savings Bank, the third

largest bank in Chicago and the 33rd
largest in the United States.
Bank of Montreal, Canada’s third
largest bank, has 1,200 branches
coast-to-coast and assets of $51.6
billion (CAN $63.7 billion). Its oper­
ations extend around the world, it
has offices in 20 countries and it is a
recognized leader in banking auto­
William D. Mulholland, chairman
and chief executive officer of the
Bank of Montreal, said “ Harris
Bank has a substantial operation in
the area of trust services, where it
manages trust assets of $12.6
billion. In trust assets under
management, the Bank ranks first
in Chicago and seventh in the U.S.
“ We are committed to continuing
Harris’ operation as an independent
U.S. bank holding company, and to
maintaining its reputation among
customers and communities. Our in­
tent is that Harris continue to have
a strong board, composed largely of
outside directors, and that the Har­
ris Bank be managed as a self-suffi­
cient organization. We do not con­
template any significant changes in

Business Credit
An affiliate of

the Harris management structure or ^
personnel. The Harris Bank bears a
distinguished name in U.S. banking
and we intend that, if this transac­
tion is onsummated, it shall con­
tinue to operate under the Harris ^
“ Harris’ newly acquired Chicago
suburban banks will likewise con­
tinue undisturbed as an important
part of Harris’ ongoing commitment ^
to smaller and mid-size corporate
customers,” Mr. Mulholland said.
Charles M. Bliss, chairman and
chief executive officer of Harris
Bankcorp, Inc., said “ We have for
some time at Harris been consider­
ing the prospects for a bank of our
size and customer base. Deregula­
tion, technological advances and
rapid changes in the financial ser- <[|
vices industry lead us to realize that
a sound course of action for us would
be to align with a major interna­
tional bank. We believe this would
ensure that we will be able to serve
the expanding banking needs of our
present and future customers. Also,
and most importantly, we would be
able to offer our employees the op­
portunities to grow to their full pro- 4)
fessional capabilities as part of a
banking organization at the fore­
front of industry advancement.
“ The Bank of Montreal is a good,
close neighbor, and we are pleased to •
join the ranks of those Chicago
banks which offer the full range of
banking services on a global basis.”
Bank of Montreal has had a long
history of banking in the United ®
States, and Chicago in particular.
The connection with Chicago dates
back more than 120 years to the
time when it opened an office in
1861 and provided support to local ®
businessmen seeking to expand the
embryonic grain trade. The Bank
was favorably noted for its financial
support following the Great Chicago
Fire in 1871.

Joins Assn, of Bank H.C.s
expect us to
provide financing from a
different perspective. We put lendable
resources to work quickly by establishing the
value o f a customer’s assets (tangible and intangible) and
structuring a flexible loan package. W e’ll lend alone or
in participation with you. Remember our name.

Dial 1-800-BARCLAY.

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

James C. Sivon, who has headed
the Republican staff of the House
Banking Committee for the past
three years, has left that post to
assume new duties as senior vice
president of the Association of Bank
Holding Companies in Washington.
Mr. Sivon has served on the House
Banking Committee staff for nine
years—the last three as chief coun­
sel and staff director for the Republican members of the panel.





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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1983


Northern Trust Buys Brokerage Firm
ORTHERN Trust Corporation,
Chicago, parent company of
The Northern Trust Company, has
signed a definitive agreement to pur­
chase all of the shares of stock of
Jerome Hickey Associates, Inc., a
Chicago-based discount brokerage
firm. The firm, which is headed by
Jerome E. Hickey, president, will
become a holding company subsid­
iary following regulatory approval.
Phillip W.K. Sweet, Jr., chairman
and chief executive officer of Nor­
thern Trust Corporation, comment­
ed: “ We are pleased with the pur­
chase of Jerome Hickey Associates
because of its fine reputation as a
provider of brokerage services. We
look forward to sharing its excellent
service with present and future cus­
tomers of all of our Illinois, Florida,
and Arizona subsidiaries, as well as
with our correspondent banks.” He
also stated that Mr. Hickey will con­
tinue as president of the brokerage
operation, which will be managed as
an independent unit.
Jerome Hickey Associates was
founded in 1979 by Mr. Hickey to


handle securities transactions for
knowledgeable investors and vari­
ous types of institutions. The firm is
headquartered at 115 South LaSalle
Street in Chicago and also has an of­
fice in Scottsdale, Ariz. Pending ap­
proval of the acquisition by the Fed­
eral Reserve, it will provide broker­
age services for Northern Trust cus­
Northern Trust is the first Chica­
go bank holding company to enter
the discount business by purchasing
an already-established firm rather
than forming a de nova subsidiary.

Manufacturers Hanover
Buys C.l.T. Financial
Manufacturers Hanover Corpora­
tion and RCA Corporation announc­
ed recently that their boards of
directors have approved an agree­
ment in principle for Manufacturers
Hanover to acquire R C A ’s whollyowned subsidiary, C.l.T. Financial
Corporation, for $1.51 billion.
The purchase would be the largest

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Banker, November, 1983
Federal Reserve Bank of St. Louis

ever for a bank-holding company.
The transaction will not include the
insurance subsidiaries of C.l.T.
C.l.T. is one the the nations’s
largest finance companies, with over
350 offices. Its equipment and leas­
ing, commercial and consumer
receivables were approximately $7.3
billion at mid-year. Earnings from
these operations were approximate­
ly $58.6 million in the first half of
1983, up 14 per cent from the same
period a year ago.
Under terms of the agreement in
principle, MHC will pay RCA:
• $460 million of cash.
• $150 million of MHC adjustable
rate perpetual preferred stock.
• $100 million of MHC convertible-and adjustable rate perpetual
preferred stock.
• $800 million of eight-year senior
installment notes of MHC.

The Associates Reports
Record Earnings in 1983
Associates Corporation of North
America reported record net income
of $113.1 million for the fiscal year
ended July 31, 1983, Reece A. Over­
cash, Jr., chairman and chief ex­
ecutive officer, announced recently.
Earnings for fiscal 1983 showed a
27% increase over the previous year,
and were The Associates’ highest in
its 65-year history. The company
reported net earnings of $89.3
million in fiscal 1982.
Mr. Overcash said that the
Company’s performance was the
result of its balanced finance
receivables portfolio, a well-matched
capital and liability structure, and
continued cost control. In addition,
Mr. Overcash said, The Associates
benefitted from reduced interest
costs as the nation’s economic reces­
sion eased. Mr. Overcash said the
company used the recessionary
period to strengthen and solidify its
competitive position.
Mr. Overcash also is president of
G ulf+W estern Industries, Inc.’s
Financial Services Group, of which
The Associates is a part.



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Sallie Mae and the National Lender

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Matt Lynett,Vice President
United Bank of Denver
Denver, Colorado
Lending institutions large and
small share the common desire
to offer student loans as a ser­
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secondary market source like
Sallie Mae, even national
lenders like Matt Lynett might
have to turn students away.
Lynett discusses his bank's relation­
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"Three years ago, when I first be­
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student loan portfolio, I consulted
Sallie Mae about our participation
in the Guaranteed Student Loan
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everything we needed to know
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helped us develop a management
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loans. Now, as the GSLP changes
from year to year, Sallie Mae helps
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They have helped us achieve our
growth goals, and even helped in­
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And although Colorado is a unit
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Federal Reserve Bank of St. Louis

That gives us the edge
for graduating seniors'
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move to Denver."

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have used these capabilities to

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Northwestern Banker, November, 1983

econom ist noted, although no
significant recovery in spending for
new commercial and industrial
structures is foreseen soon.
Export business “ remains mired
in its own recession” and will be
sluggish until 1984 because the dol­
recover, reaching 1.9 million in the lar has been strong and overseas re­
second half of 1984.
coveries have been lagging, he said.
Applying his forecasting exper­ Outside the United States, the ma­
tise to the political arena, he noted jor industrial countries will see the
that history suggests that an incum­ strongest growth since 1979.
bent president who reduces inflation
will be re-elected if unemployment is Delavan Bank is Solid
declining. “ Inflation averaged 10
C on trollin g in terest o f the
percent in 1980 and will be 6 percent
State Bank in Delavan
in 1984. Unemployment peaked at
10.8 percent last winter. It will be 8
percent and falling in late 1984. The cently by John
benchmark forecast favors the in­ V u c u r e v i c h ,
S io u x
F a lls,
S.D., who has
several other up­
m id w e st
bank holdings.
The controlling
interest was sold ffYi'
by Carmen Dohw G BECK
erty, executive
vice president and cashier; Arland
R. Mesmer, executive vice presi­
dent, and the estate of Donald D.
Doherty. Mr. Doherty was chairman
and president of the bank until his
death September 6, 1983.
Elected as the new president of
Clare Zempel projects a vibrant 1984 economy Wisconsin State Bank was William
during a recent presentation to Wisconsin’s
G. Beck, a veteran of 28 years in the
leading corporate executives.
banking field. He formerly was ex­
Economic conditions do not look ecutive vice president of the former
as bright when the forecast extends Schaumburg State Bank (now First
beyond 1984. “ Unfortunately, the Bank) in Schaumburg, 111., for six
risk that a recession will occur in years and prior to that was ex­
1985-1986 has been increasing,” he ecutive vice president of the Park
predicts. “ The reason is that the National Bank of Chicago. Mr. Beck
federal deficit threatens crowding also spent three years before that
out in 1985.” That is when high with the American National Bank &
private sector credit demands will Trust Company of Chicago.
collide with a large federal govern­
Expansion of the banking facility
ment borowing requirement. He urg­ in the present location is planned for
ed that the deficit must be decreased the near future. Mr. Beck said driveif recession risk in 1985-1986 is to be up facilities would be added and the
size of the bank quarters will be
In the coming year, the Federal tripled.
Reserve Board will try to support
economic expansion “ without com­ Fed OKs Holding Company
pletely abandoning its concerns
about inflation,” Mr. Zempel said. For Maiden Rock Bank
The Federal Reserve Bank of Min­
“ G iven the election and the
weakness in the international econo­ neapolis recently announced its ap­
mic and financial systems, the Fede­ proval of the application by Bay
ral Reserve will not pursue a highly Rock Bancshares, Inc., Maiden
restrictive course. At the same time, Rock, Wis., to become a bank hold­
the financial markets will continue ing company through the acquisi­
tion of The First National Bank of
to discipline monetary policy.”
Capital spending on equipment is M aiden Rock. The bank has
recovering faster than expected, the $7,070,000 in deposits.

Wisconsin News

First Wisconsin Sees A Strong 1984
Associate Publisher
PEAKING before some 250 cor­
porate executives attending the
ninth annual Economic and Finan­
cial Outlook Conference, Clare
Zempel, chief economist for First
Wisconsin National Bank of Mil­
waukee, forecasted a vibrant econ­
omy for 1984. “ Next year will be
good in nearly all respects,” he said.
“ The recovery will be relatively
strong. More and more industries
and workers will share in it.
Unemployment will decline sharply.
Inflation and interest rates will rise
but not much. The risk that a reces­
sion will occur in 1984 is negligible.”
Many industries that will ex­
perience above average production
increases in 1983 and ‘84 are heavily
represented in Wisconsin, he said.
“ This means that our state will ex­
perience a vigorous recovery next
year. It is likely that our employ­
ment and personal income growth
will exceed the national averages.”
However, he cautioned, the risk of
a recession in 1985-86 is increasing.
“ The reason is that the federal defi­
cit threatens ‘crowding out’ in 1985.
That is when high private sector
credit demands will collide with a
large federal government borrowing
Some of Mr. Zempel’s specific
forecasts included:
• Private sector credit demands
will grow with the economic expan­
sion and become strong in two
• Federal, state and local govern­
ment credit demands will peak this
year but not decline rapidly.
• The federal deficit will remain
unprecedently high relative to gross
national product.
• Interest rates will decline 1
percentage point by next spring and
then begin to rise.
• The unemployment rate will
decline to 8 percent late next year,
with a moderate increase in infla­
• Auto sales will rise, from about
9.3 million vehicles in 1983 to 10.5
million next year.
• Housing starts will continue to

Banker, November, 1983
Federal Reserve Bank of St. Louis



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Northwestern Banker, November, 1983






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Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

Art Hippie

Dorothy Newlin



Peoria Executive Elected

Illinois Bankers to Meet Nov. 16-17


HE ILLINOIS Bankers Asso­
ciation Annual Meeting and
Bank Management Conference will
be held November 16-17 at the Holi­
day Inn, O ’Hare/Kennedy. Registra­
tion will begin at 8:00 a.m. on the
16th and the program schedule fol­
Wednesday, November 16
9:00 First general session, O ’Hare
Ballroom II.
Presiding: Harry E. Cruncleton, president, Bank of Belle­
Keynote Address: “ Monetary
Policy and Bank Manage­
ment’ ’—Theodore H. Rob­
erts, president, Federal Re­
serve Bank of St. Louis.
9:45 “ M a n a g in g S tr e s s and
Minimizing D istress” —Dr.
Ronald Barnes, Transitions,
Inc., Phoenix.
10:45 Coffee break.
11:00 “ Banking and the Economy
in 1984” —Dr. Robert T. Par­
ry, executive vice president
and chief economist, Security
Pacific National Bank, Los
Angeles, and chairman of
A B A econ om ic a d v isory
11:45 Reception, exhibit area.
12:15 Luncheon and IB A annual
meeting, O ’Hare Ballroom
2:30 Concurrent breakout ses­
sions, locations to be an­
Breakout Session #1:
“ The Psychological Impact of
Mergers” —Dr. Harold Faeth,
senior consultant, Rohrer,
Hibler, & Replogle, Inc.,
Breakout Session #2:
“ Perspectives on Incentive
Com pensation“ —James R.
Lancaster, president, Bank of
Elk Grove, Elk Grove Village;
Federal Reserve Bank of St. Louis

Donald K. Gnuse, president,
First National Bank & Trust
Co., Quincy, and Jack Chmiel,
vice president, First Wiscon­
sin National Bank, Milwau­
Breakout Session #3:
“ Developing the High Net
Worth Market” —Donald W.
Neuenscwander, chairman,
Med Center Bank, Houston.
Breakout Session #4:
“ The Effect of TEFRA on
Employee Benefit Plans” —
Donald Mohr, partner, Coop­
ers & Lybrand, Chicago.
3:30 Coffee and beverage break.
3:45 Breakout sessions repeated.
5:30 Complimentary reception ex­
hibit area. Dinner on your
Thursday, November 17
8:00 Early-bird roundtables, conti­
nental breakfast.
9:00 S econ d general session ,
O ’Hare Ballroom II.
Presiding: Ray hill J. Hagist,
president Farmers & Merch­
ants Bank, Highland.
“ Measuring and Enhancing
Employee and Facility Pro­
d u c tiv ity ” —W es Sargent,
vice president, IntraWest
Financial Corporation, Den­
ver, Colo.
9:45 “ Profiting From Deregula­
tion” —Charles O. Hinely,
president, Bank Management
Resources, Inc., Decatur Ga.
10:30 Coffee break.
10:45 “ W h a t Y o u A r e I s n ’ t
Necessarily What You Will
B e” —Kim W oods, consul­
tant, Morris Massey Asso­
ciates, Boulder, Colo.
12:15 Conference wrap-up and ad­
John Cooley, chairman, IB A
bank management commit­

Robert T. Stevenson, Jr., has been
elected executive vice president of
Commercial National Bank of
Peoria, effective December 31. He
succeeds Warren M. Webber, who
has been serving in that position
since 1975 and is retiring at the end
of the year after 36 years with the
Mr. Stevenson joined the bank in
1968 after seven years with Con­
tinental Illinois National Bank,
Chicago. He has been in charge of
the bank’s lending function since
1975 and has been a senior vice
president of the bank for the past
five years.

New V.P. Named
Pamela M. Caddick has been
named vice president of marketing
development at
the M attesonRichton Bank,
R ichton Park,
J a m e s L und,
Mrs. Caddick
joined the First
National Bank
of Chicago in
1975 and has served as a bond sales
representative, community office
manager, and most recently as sales
rep for First Computer Services, a
division of the First National Bank.

Three Join Elmhurst Bank
Elmhurst National Bank recently
announced that three officers have
joined the bank’s staff: Lee L. Rodri­
guez, assistant vice president in cor­
porate banking; Donald G. Adams,
trust officer in trust and invest­
ment, and Dennis J. Cahill, real es­
tate officer in consumer lending.
Mr. Rodriguez started in banking
with Continental Bank of Chicago in
1974. Mr. Adams brings to the bank
12 years of professional trust ex­
perience in portfolio management.
Mr. Cahill began his financial bank­
ing career in 1979 with First Federal
Savings of Ottawa.
Also at the bank, John J. Mickevice, auditor, recently graduated
from the School of Bank Adminis­
tration. He was among 500 bankers
who completed the three-year pro­
gram of advanced banking study
sponsored by BAI and held at the
University of Wisconsin, Madison.
Northwestern Banker, November, 1983


Illinois News

Jack Lemmerman Retires
Following 36-Year Career
Jack D. Lemmerman, chairman
and chief executive officer of The
National Bank
o f M onm outh,
retired Septem­
ber 30. Howard
E. G ladfelter,
president, will
duties of chief
executive officer
and David D.
Fleming, chair­
m an
th e
bank’s executive committee, was
elected to succeed Mr. Lemmerman
as chairman.
Mr. Lemmerman, whose career
with The National Bank spans 36
years, will remain a member of the
board until the next annual stock­
holders’ meeting in March of 1984.
Originally employed as a book­
keeper in October, 1947, Mr. Lem­
merman was elected cashier in 1956,
following brief periods as instalment
loans m anager and assistan t
cashier. The following year he was
named to the board. He was pro­
moted to vice president in 1962 and
to the bank presidency in 1966. In
1979 Mr. Lemmerman was named to
the newly created position of chief
executive officer, and at the same
time was appointed chairman.
In addition, Mr. Lemmerman was
elected president of the Illinois
Bankers Association in 1980.
Since Mr. Lemmerman joined the
bank, assets have risen from $8.2
million to the current $56.4 million.
Under his supervision, the Colonial
Drive-In was constructed in 1972,
the bank’s lobby was extensively
remodeled in 1975 and the Village
Banking Center in Kirkwood was
opened last year. Other accomplish­
ments of his administration include
the development in 1969 of a bank
computer system, and the installa­
tion in 1978 of the first automatic
teller machine in Warren County.

Loans at Facilities Bill
Signed by Governor
The IBA-initiated bill, HB1313,
which permits banks to make com­
mercial and consumer loans at all
facilities, was signed by Governor
Thompson late in September.
The concept of loans at facilities
enjoyed overwhelming support by

Banker, November, 1983
Federal Reserve Bank of St. Louis

association members and generated
the greatest degree of positive
response in a survey that was con­
ducted last spring by the Illinois
Bankers Association.
IB A President Donald R. Lovett
expressed pleasure at the signing,
commenting, “ It is good to see this
measure go into effect, because it
had strong across-the-board sup­
port. In addition, this will go a long
way to justify the cost of operating
facilities, and will certainly repre­
sent increased service to our

Legislative and Special
Committees Named
The Illinois Bankers Association
President Donald R. Lovett has an­
nounced the appointment of the
association’s Committee on State
Legislation and Regulation.
This group will serve through the
remainder of 1983 and consists of
Chairman John Anderson, The First
National Bank of Lake Forest, who
will be assisted by:
Eldon H. Greenwood, Illinois Na­
tional Bank, Springfield; Jack L.
Sutherland, United Bank of Illinois,
N.A., Rockford; James R. Lan­
caster, Bank of Elk Grove, Elk
Grove Village; William O ’Leary,
Des Plaines National Bank; Lonnie
G. Doan, Olney Trust Bank; John
Brubaker, First National Bank of
Springfield; Alvin J. Blasco, Union
National Bank, Streator; Robert W.
Jackson, Exchange National Bank,
Chicago, and Robert G. Cady, Bank
of Belleville.
Also approved were five special
committees which will report to the
board. They are as follows:
Special Committee on Bank
S t r u c t u r e —Chai rman He rber t
Dolowy, Lincoln National Bank,
Special Committee on Bank Ser­
vices—Chairman John Luttrell,
First National Bank of Decatur;
Special Committee on the Bush
Task Force—Chairman William
Plechaty, Continental Illinois Na­
tional Bank & Trust Company of
Special Committee on Associa­
tion Membership—Chairman James
Winningham, State Bank of Arthur,
Special Committee on Electronic
Funds Transfer System—Chairman
Charles Waterman, South Holland
Trust & Savings Bank.

Rodney K. Miller has been elected
vice president
and senior lend­
ing officer of Co­
lonial Bank and
Trust Company.
M r.
Mi l l e r
previously was
with Exchange
National Bank
where he served
as senior vice
president of the
bank’s correspondent division. He
started his banking career with
LaSalle National Bank in 1973.
* * *

Marcos Murrillo has been elected
assistant vice president of Drovers
Mr. Murillo,
who joined Dro­
vers Bank in
1978 as a perso­
nal banking of­
ficer, attended
University and
holds two gradu­
ate degrees from
the American InM- MURRILLO
stitute of Banking



The stockholders of First Security
Bank recently approved the forma­
tion of a one-bank holding company
to be known as Security Chicago
The holding company received ap­
proval from the Federal Reserve
Board in August and is awaiting ap­
proval by the FDIC and the Com­
missioner of Banks and Trust Com- £

There are some things
our credit insurance specialists
don’t know about.


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But not many.
H ieroglyphics are foreign to
them. But ask our specialists any­
thing about credit insurance and
you ’ll get an expert answer. Fast.
You see, our people have to be
experts. Because credit insurance
is th eir only b u sin ess. W hich
means the concerns o f their credit
in su ra n ce cu stom ers are their
only interest.
The result: you get better, more
personalized service. And more

helpful advice. Whether you want
to know the local laws or how
credit insurance can help your
loan business.
And since you’re dealing with
the USLIFE C redit In su ran ce
Group, you also get the most com ­
plete coverage that you can find—
everything from disability cover­
age to line-of-credit insurance.
What’s more, our people have
another advantage w orking for

them: the expertise o f USLIFE
Corporation—the insurance-based
financial services organization
with over $3 billion in assets.
So why depend on someone
who thinks o f credit insurance as
gravy when you can do business
with specialists who consider it
their bread-and-butter? Talk to
one o f our experts and see the
difference. Just call us toll-free
at 1-800-323-4747. -

USLIFE Credit Life Insurance Company • Sooner Life Insurance Company • Security of America Life Insurance Company
Federal Reserve Bank of St. Louis

1-800-323-4747 ‘ (within Illinois, call 312-490-6000)

Start offering bigger services.
By adding our leasing and asset-based
financing programs to your current financing
plans you can give your customers the equip­
ment or operating capital they need to prosper.
In addition to helping your customers with
these progressive financing services, you open
up highly profitable avenues for investment.
Leasing, for example, is often one of the most
profitable investments in a bank’s portfolio.
And includes substantial tax benefits.
By participating in our asset-based lending
programs, you gain a healthy return and add an
important service that provides your clients
with additional working capital.
So when conventional financing won’t
meet your customer’s demands, contact any
one of our representatives listed.

We’ll work with you to give your customers
the flexible financing they need. And you’ll
discover that it’s not the size of your services
that counts, it’s the size of those standing
behind you.
For full details on Norwest Business Credit call:
Bob Olson in Minneapolis (612) 372-7988,
Don Park in Denver (303) 298-0515,
Gary Hermann in Des Moines (515) 245-8406,
or Barry Krause in Dallas (214) 239-1555.
For information on Norwest Leasing contact:
John MacLeod in Minneapolis (612) 372-7416,
Bennie Gates in Om aha (402) 536-2310,
John Bailey in Des Moines (515) 245-3392,
Chris Hoss in Fargo (701) 293-4273,
or Steven Cozzens in Billings (406) 657-3581.

Norwest Business Credit, Inc.
Norwest Leasing, Inc.


Federal Reserve Bank of St. Louis



H.A. Lund, pres., Albert Lea
T.L. Jeffers, exec, v.p., Minneapolis

Slayton V.P. Named

Owatonna Elects One

Jerald Tiggelaar has been elected
vice president of Norwest Bank
Slayton, accor­
ding to Palmer
Hoffland, presi­
Mr. Tiggelaar
m ost recen tly
was vice presi­
dent at Norwest
Bank Worthing­
ton, where he
started his bank­
ing career ten
years ago. He is a graduate of South
Dakota State University in Brook­
ings and has had extensive agricul­
tural lending experience.

Norwest Bank Owatonna, N.A.,
has announced the election of
Timothy M. McManimon as com­
mercial loan officer, located in the
main bank facility.
Mr. M cM anim on’ s past ex ­
perience includes two years at the
Norwest affiliate in Winona; three
years at Winvan, Inc. of Winona, an
equipment leasing company, and
most recently at the Deutsche
Credit Corporation, a company of
the Deutsche Bank of Germany, as a
marketing representative in the area
of loan customer development.

Elections Announced
James Heig, president, Norwest
Bank Maple Grove, has announced
the election of Keith Bentley and
Mark Montag as vice presidents,
and Marlene Schaller, Valerie
Milbrandt, Jean Larson and Charles
Peterson as assistant vice presi­
Mr. Bentley, a graduate of
Mankato State University, joined
Norwest Batik Maple Grove in 1980.
His prior experience includes opera­
tion officer with Norwest Bank
Calhoun Isles and an auditor with
Norwest Audit Services.
Mr. Montag, prior to joining the
bank in 1981 as controller, was with
Norwest Bank Denison, Iowa;
Norwest Corporation, Minneapolis,
in operations, and Norwest Bank
Old St. Anthony, Minneapolis,
where he completed a Norwest
operations training program.
Ms. Schaller joined Norwest Bank
Mapel Grove in 1977. Ms. Mil­
brandt joined the bank in 1981 as
marketing officer. Ms. Larson joined
the bank in 1970, holding various
positions in personal banking and
operations. Mr. Peterson joined the
bank through the Norwest training
program in 1979.
Federal Reserve Bank of St. Louis

Joins Rochester Bank
Mark A. Kirchhoff has joined
Norwest Bank Rochester as commercial/agricultural lending officer
in the commercial loan department.
Mr. Kirchhoff joined Norwest
Corporation in November of 1981 as
a management trainee, and most
recently served as agricultural len­
ding officer at Norwest Bank Tracy.

Elected in Robbinsdale
Gregory L. Nilson has been
elected assistant vice president of
First Bank Rob­
binsdale, accor­ p|| ¿mm
i I
ding to Kenneth
C. Sheehan, pres­
M r. N ilso n
joined the bank
in February of
this year as a
commercial bank­
ing officer and
holds a BS de­
gree from the University of Min­
nesota in business administration.




's i *

Norwest Owatonna
Acquires Medford Bank
The acquisition of First State
Bank of Medford by Norwest Bank
Owatonna, N.A., announced late
last year, has been approved by

regulatory authorities and became
effective October 1, Kenneth E.
Wilcox, president of the Owatonna
bank, has announced.
As of June 30, 1983, First State
Bank of Medford had assets of $4.8
million. Norwest Bank Owatonna
had assets of $106 million, with
deposits of approximately $85 mil­
According to Mr. Wilcox, Nor­
west Bank Owatonna will operate
the Medford facility as a branch.
The two Minnesota towns are ap­
proximately six miles apart.

Fergus Falls Addition Told
Charles L. Kretchman, president
of Norwest Bank, Fergus Falls, has
announced the
employment of
John Blume as
agricultural loan
A graduate of
N orth D akota
State Universi­
ty, Fargo, N.D.,
Mr. Blume has
been employed
by Bonanza Val­
ley State Bank, Brooten since 1982.
Prior to that he was with First Na­
tional Bank of Herman as assistant

MBA Kicks Off 4-H Junior
Leadership Campaign
Thomas Olson, president of First
National Bank, Starbuck, and chair­
man of the Minnesota Bankers
Association 4-H Campaign Commit­
tee, has kicked off a campaign to
support the Minnesota 4-H Junior
Leadership Program. In a letter
which was sent to 750 M BA member
Minnesota banks, Mr. Olson stated
that this year's bank campaign goal
is $18,000 to assist more than 9,000
youths who are involved in 4-H
leadership programs annually.
The M BA 4-H Campaign Com­
mittee consists of former M BA of­
ficers who work with the Minnesota
4-H Foundation by sponsoring an
annual bank campaign.

Appointed in Blaine
First Bank of Northtown of
Blaine has announced the appoint­
ment of Sandra Ross to operations
officer. She has been with First
Bank Northtown since 1975, most
recently as administrative assistant
in operations.
Northwestern Banker, November, 1983


Norwest Bank Midland has elect­
ed John E. Toler, Jr., president and
chief executive
officer of Powers
Dry Goods Com­
p a n y, to the
bank’s board of
In p rev iou s
years, Mr. Toler
was senior vice
president of L.S.
Ayres & Compa­
ny, vice presi­
dent of Robinson’
general manager
ton, Ohio.
* * *
Norwest Bank Minneapolis re­
cently announced the election of
three senior vice presidents and four
vice presidents.
New senior vice presidents in­
clude Michael L. Lucas, A Rodney
Boren, Jr., and Jerry W. Hayes.
Elected as vice presidents were Su­
san D. Kinder, Elizabeth C. Helsel,
Joseph W. Kapolka and Paul G.
Mr. Lucas joined the bank in Aug­
ust of this year and is also manager
of the institutional trust group.
Prior to joining Norwest Bank Min­
neapolis, Mr. Lucas was vice presi­
dent of Employee Benefits and In­
stitutional Services at National City
Bank of Cleveland in Ohio.
Mr. Boren is in the bank’s securi­
ty sales department of the funds
management group. He joined the
bank in 1974 and was named vice
president in 1980.
Mr. Hayes serves in the trust op­
erating systems and financial con­
trols area. Prior to joining the bank
in the trust operations area, he was
responsible for Norwest Bank Min­
neapolis’ consumer operations.
Ms. Kinder was also named vice
president and director of compensa­
tion and organizational planning for

Banker, November, 1983
Federal Reserve Bank of St. Louis

the bank’s human resources - admin­
istration group. She joined the bank
in 1975.
Ms. Helsel joined in August as
vice president and senior national
accounts representative for the
bank’s national accounts office in
New York.
Mr. Kapolka joined in 1977 and
will serve in the corporate planning
area of the finance group.
Serving in the energy and natural
resources area of the domestic bank­
ing group, Mr. Sedio joined in 1975.
* * *
First Bank Southdale has named
Gene Cross assistant vice president
of its commercial
banking division.
m FM m :
Prior to joining
the bank, Mr.
Cross was credit
review officer at
■ Jr
First Bank Sys­
Mr. Cross be­
gan his banking
4 W m
career in 1977 as
a management
trainee at First Bank Fargo, North
Dakota. He joined First Bank Sys­
tem in 1980.
* * *


la ►

bank in 1980 as a real estate lender.
She previously was with F&M Sav­
ings Bank of Minneapolis.
Ms. Ascheman began her career
with the bank in 1981 as human re­
source representative. She previous­
ly spent two years at First Bank
Benson in Benson.



Walter D. Tomaszek has been
elected assistant vice president and
manager of the new business devel­
opment department and Jeffrey M.
DeMar has been named account rep­
resentative with lending respon­
sibilities at FBS Business Finance
Mr. Tomaszek will be responsible
for the marketing of asset-based
loans and loan participations for the
company. He started with the com­
pany in 1982 as a loan officer.
Mr. DeMar started in 1982 as an
* * *

First Bank System, Inc. has elect­
ed Norbert J. Conzemius managing
director of the
company’s nine
southeast Min­
nesota banks.
Previously pres­
ident of First
First Bank Minnehaha recently Bank Rochester,
announced the promotion of Lorrie Mr. Conzemius
J. Heimkes as personal banking of­ stepped into his
ficer and Sonia L. Ascheman as new position Oc­
human resource officer.
tober 1.
Ms. Heimkes started with the
Mr. Conzemius
began his banking careeer in 1966 at
First Bank Saint Paul. He was elect­
ed vice president and division head
in the commercial lending area in
1974 and in 1978 became vice presi­
dent of the consumer group. In 1979
Mr. Conzemius was elected senior
vice president and group executive
for First Bank System’s southern
Minnesota affiliates and in 1980
was elected to a similar position for


At Norwest Bank Midland
you deal with the same persons.

Perhaps it’s happened to you.
Just when you had built up a
working relationship with your
correspondent banker, the bank
moved him up the corporate
ladder and off your business.
All too often, a large bank can be
insensitive to the needs of small
respondent banks. Yet smaller
banks that can give you plenty of
personal attention can’t always
give you the expertise and the
clout you need. And you’re
caught in the middle.
You do, however, have an
alternative: Norwest Bank
Midland. We’re big enough to
handle any of your corres­
pondent banking needs. But
we’re still small enough to
Federal Reserve Bank of St. Louis

respond to your individual

correspondent bankers. Not one
after another.

We’ve deliberately kept our
Correspondent Division small, so
that you can deal directly with a
decision maker. Each of our
correspondent bankers has from
12 to 25 years of experience in
the business, so they thoroughly
understand the needs of
respondent banks. They take the
time to personally call on both
the respondent bank and the
respondent’s customers.

We’re big enough to know how
and small enough to know you.
Norwest Bank Midland, N.A.
401 Second Avenue South
Minneapolis, Minnesota 55480
(800) 752-4200
Member FDIC

If you’re tired of banks that are
too large or too small, come to
Norwest Bank Midland.
You’ll develop a close working
relationship with one of our



It’s helping a bank in Appleton, Wisconsin, to comply
with the New York Stock Exchange Rule 387 by
bridging the gap from physical securities to electronic

It’s providing bridge loan financing to enable a
New England bank to expand through acquisition.

It’s supplying needed capital through our Merchant
Banking Group. Between December, 1982, and July, 1983,
we arranged m ore private placement financing in dollar
volum e for U.S. banking institutions than any other
investm ent bank agent/advisor.
Federal Reserve Bank of St. Louis


It combines talent and
technology in answering the sophisticated
# needs of Am erica’s bankers for credit
and operations services.






C orrespon den t ban kin g has com e a lon g
w a y sin ce transaction s b y telegraph and
d ocu m en t transfers by railroad.
Today, com pu ters have spaw ned a new era.
A n d few have done m ore than M anufacturers
H an over to advance the con tem p orary w orld
o f bank-to-bank services, w ith a com p reh en ­
siv e m ix o f credit and operations serv ices
and instantaneous g lob a l com m u n ication s.
O ur corresp on d en t netw ork num bers over
2,700 banks a cross the U.S. and another 1,700
ban ks around the w orld.
Statistics aside, what m akes M anufacturers
H a n over a p rem ier “ ban ker’s bank” are the
quality, lo y a lty and con sisten cy w e brin g to
corresp on d en t relationships.
But o n ly a com m itm en t can produ ce
cap abilities.
Our com m itm en t to correspondent bank­
in g is total. It can be seen in the substantial
investm ent w e have m ade ov er the years in
telecom m unications, com pu ter hardw are and
softw are. The payoff: a new degree o f speed
and a ccu ra cy in our “ back o ffic e ” w h ich

a llow s corresp on d en ts to act q u ick ly and
Our com m itm en t is apparent as w ell in
our staff o f p rofession a ls w h o devote all
their talents and energies to serv in g co rre ­
spondents. N ever do the hum an resou rces of
M anufacturers H an over take a backseat to
m ain fram es and m em ory banks.
D iscover The Financial Source. Contact any
one o f the B an kin g G rou p officers below at
M anufacturers H anover, 270 Park A venue,
N ew York, N Y 10017. Telephone: (212) 286-4940.

Left to right: R. Bruce Brougham, S e n io r V ice P resident;
Donald H. McCree, Jr., E x e c u tiv e V ice P resident;
Merrill O. Burns, S e n io r V ice P resid en t and D e p u ty G eneral
M a n a ger; and Richard H. McCarthy, S e n io r V ice President.

Federal Reserve Bank of St. Louis

The financial source. Worldwide.

Member FDIC


Minnesota News

the company’s North Dakota and
South Dakota banks. He has served
as president of First Bank Roch­
ester since 1982 and upon his leav­
ing that bank in October was named
In addition, John L. Erickson has
been appointed vice president and
controller, effective October 15. He
previously was senior vice president
of the finance and planning depart­
ment of First Bank Minneapolis, a
position he has held since 1981.
* * *
Norwest Bank Minneapolis, N.A.,
has announced the appointment of
John H. Olson,
m ost recen tly
president of Nor­
west Business
Credit, Inc., to
the position of
senior vice presi­
dent and deputy
chief credit offi­
cer of the bank.
In this capaci­
ty he will serve
as a member of the bank’s manage­
ment policy committee and the se­
nior loan committee and have re­
sponsibility for the loan administra­
tion and the special loan division of
the bank.
Vice Chairman and Chief Credit
Officer Willis F. Rich, Jr. said that
the purpose of the move is to
prepare Mr. Olson to assume the full
duties of chief credit officer when
Mr. Rich retires on August 1, 1984.
Mr. Olson’s successor at Norwest
Business Credit has not as yet been
Mr. Olson began his banking ca­
reer at Norwest Minneapolis in 1954
and has served in a variety of com­
mercial banking assignments since
that time. After advancing to senior
vice president with responsibility
for four lending divisions, he was
transferred to Norwest Corporation,
the parent company, where he be­
came head of the loan administra­
tion department with responsibility
for credit quality throughout the
In 1980 he became president of
Norwest Business Credit, an assetbased lending affiliate, and was
named chief executive officer in
A graduate of the University of
Oregon, Mr. Olson has attended the
executive program at the Amos
Tuck School of Business A d ­

Banker, November, 1983
Federal Reserve Bank of St. Louis

ministration at Dartmouth College.
He is a past president of the Min­
nesota Chapter of Robert Morris
Associates, a national association of
commercial lending personnel.
* * *
Seven new officers have recently
joined First Bank Minneapolis.
S e r v in g
vice presidents
are George Budzynski and Judy
Bradford. Mr.
Budzynski will
serve in the fi­
nance and plann­
ing department.
He had been
with the Bank of
the C o m m o n ­ G.J. BUDZYNSKI
wealth, Detroit, for the past six
years. Ms. Bradford had been a
senior account executive at Dancer
Fitzgerald Sample, Inc., New York
for three years. She is in the natural
resources division.
Carleton Olmanson has joined as
assistant vice president in the
manufacturers division. He had
been with Norwest Bank St. Paul for
four years.
New officers include: Michael






Taets, correspondent banking in the
east/west correspondent banking di­
vision: Thomas Korsman, corporate
trust; Galen Cadle, commercial
banking at the Ridgedale office, and
Scott Kemper, commercial banking,
manufacturers division.
Mr. Taets had been vice president
at Brenton Bank and Trust Co.,
Clarion, Iowa for the past four
years. Mr. Korsman had been with
Peter Salk, attorney at law in St.
Cloud. Mr. Cadle had been with
Norwest Bank Midland since 1979.
Mr. Kemper served for the past two
years at Norwest Bank Central.
* * *
First Bank Saint Paul recently an­
nounced the following promotions to
officer status: Carter G. Dreblow
and Lynn G. Lindsay, international
banking; Jeffrey L. dePuis, David G.
Rickman and Rebecca Tibbetts,
systems; and Charles A. Hannema,
Laura J. Nemcek, Amy B. Sadoff,
Steven F. Sullivan and Pamela J.
Zagaria, commercial banking.
Also named as officers were: M.
Stephanie Ibhe, Gerald L. Lindeman
and Roger J. Seaborg, operations;
Joan M. Joseph, investm ent;
Michael R. Kerns, accounting;
Kathleen Krause, real estate;
Eugene R. Lamm, Muriel D. Linde­
man, Bernice A. Longsdorf and Ann
M. Melendez, personal banking;
Kathleen A. Mauer, private bank­
ing, and Marvin J. Raway, security
* * *
First Bank System, Inc. has an­
nounced that it has filed application
with the Comptroller of the Curren­
cy to consolidate its First Bank
Bloomington Lake and First Bank
Minnehaha affiliates into one bank
to be called First Bank Lake.
First Bank Minnehaha will be­
come the main office of the new bank
and First Bank Bloomington Lake
will be the Bloomington Lake office.
Ownership of the Bloomington Lake
detached facility in Bloomington
will be transferred to First Bank
Upon approval, G. William Jude,
president Minnehaha will become
chief executive officer and president
of the new bank and Robert W. Torvik, president of First Bank Bloom­
ington Lake, will become executive
vice president and chief operating

Minnesota News


PICTURED during the recent Minnesota Bankers Association district meetings were these bankers, left to right: LEFT— MBA Pres. Herb
Lund, pres., Security State of Albert Lea; Galen Pate, pres., Signal Hills State, who was endorsed for MBA president for 1984-85; Roy Terwilliger, pres., Suburban Natl, of Eden Prairie, endorsed for MBA 2nd v.p. for 1984-85, and banquet speaker Dick Semaan. RIGHT— Wm.
Rosacker, sr. v.p., F&M Marquette Natl., retiring Dist. 5 pres.; Gerald Kanne, v.p., Norwest Bank St. Paul, serving his first year of a 3-year
term on the MBA board, and David Shern, Dep. Comm, of Commerce for Fin. Inst., St. Paul.

2,000 Attend MBA District Meetings
ANKING laws, deregulation
and new regulations, new financil services and association services
for members were important topics
that made up the business portion of
the nine district meetings conducted
recently by the Minnesota Bankers
Association. More than 2,000 per­
sons attended the nine meetings
held throughout the state.
M BA General Counsel John Jackson discussed “ New Laws and Regu­
latory Developments,” using a 13page handout that he went through
quickly in order to familiarize
bankers with key elements of recent
developments. The handout docu­
ment forms a vital part of any port­
folio maintained by banks on laws
and regulations.
A t each district meeting, the local
member of the M BA board reported
on “ M B A Educational Activities.”
This was followed by “ An Update
on M B A Services,” delivered by
Galen T. Pate, first vice president of
M B A and president of Signal Hills
State Bank in West St. Paul. Some
highlights of his report were as
• Long-term disability policy is in
its 11th year, covering 150 banks
and 2,000 Minnesota bank employ­
• Under the Executive and NonOfficer Life Plan, senior officers can
ob tain $240,000 o f coverage,
$120,000 for junior officers, and a
lesser amount for non-officer staff.
A 55% dividend was declared this
year. There are 3,900 persons cov­
ered at 465 banks.

Federal Reserve Bank of St. Louis

• The im portan ce o f M a jor
Medical was emphasized by pay­
ment this year of a $200,000 claim to
one bank employee.
• There are 2,000 bank employees
in the Delta Dental Plan, and onehalf of that number have dependen­
cy coverage.
“ The Role of A B A in the Evolv­
ing Financial Services Community”
was covered by William Addington,
A B A membership chairman for
Minnesota and vice president at
F&M Marquette National Bank,
Minneapolis. Roy Terwilliger, presi­
dent of Suburban National Bank in
Eden Prairie, filled in for him at the
District 3, 4, 5 joint meeting in
M BA Executive Vice President
Truman Jeffers reviewed “ Bank­
ing’s Direction in a Deregulated
Financial W orld.” He pointed out
how much outside forces have to say
about how banking is conducted
today—the will and demand of con­
sum ers; d eregu lation and re­
regulation occuring sometimes with
and often without input or agree­
ment from commercial banks; the
continuing advent of new com­
petitors, often encouraged by regu­
lators and legislators; the uncertain
times that are bringing change; new
technology that banks must use
whether they want to or not, and an
economy that is difficult to predict
and work in.
Mr. Jeffers then reviewed a num­
ber of state legislative issues in
which Minnesota bankers have a
stake, and several federal issues. He
closed by stressing the need again
for a unified voice among bankers,
instead of division over issues.

The final speaker was David
Shern, deputy Commissioner of
Commerce for Financial Institu­
tions, St. Paul. He said the three
most frequently asked questions di­
rected to him are: 1. How is the
reorganization of the Commerce De­
partment working out? 2. How will
deregulation affect banks? 3. What
is your top priority as the bank
regulator in Minnesota? He res­
ponded briefly to each question.
1. The reorganization bill, effec­
tive last July 1, created alot of anx­
ieties and more changes are coming.
The reorganization is working well,
and is cost effective through stan­
dardization of forms and purchas­
2. Deregulation is difficult to
predict. In Minnesota, Governor
Perpich’s bill will come up again—
either as a total bill, or as separate
bills. Usury limitations should be
completely eliminated and will be if
we can get legislators to understand
our position on it. This situation is
intolerable, and is a top priority.
3. My top priority is to cut down
on the number of problem banks.
Failed banks in Minnesota or other
states all reflect badly on the image
of our banks. We must return to the
cardinal virtues of running a safe
and sound bank. How do we prevent
banks from failing? First, through
better identification of problem
banks. The list I first saw when I
joined the department were problem
banks 20 years ago. Now we can
identify them better through the
CAM EL procedure. We hope to
gather them behind one fence, so to
speak, and look at them closely all at
one time. I prefer that the board be
present so the rating steps to be
taken can be explained. Problem
Northwestern Banker, November, 1983

First Bank Saint Paul is the largest bank-managing
underwriter in the Twin Cities. As such, we can give your
bank access to the widest variety o f municipals in this area.
And among banks, we’re the 16th largest managing
underwriter in the nation, which enables us to find the best
investment options from around the country and pass them
on to you.

But municipals isn’t all we do. We also offer:
U .S. Government and Agency Securities; Secondary Loan
Participations; Negotiable C D ’s, Repurchase Agreements, and
other money market instruments.
And we don’t stop there. Our Investment Services Group
can also provide: Bond analyses and computerized bond
accounting programs; Tax swaps; Asset liability management
assistance; Safekeeping and security clearance services.

tC D l




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Federal Reserve Bank of St. Louis

Federal Reserve Bank of St. Louis


Minnesota News

LEFT (all Dist. 3)— John Berg, MBA dir., and pres., Wayzata B&T; James Heig, retiring pres. Dist. 3 and pres., Norwest Bank Maple Grove;
James Graham, pres., Norwest Bank Stillwater; Arvid Evensvold, chmn. & pres., 1st Natl., Hastings, and Herbert Wogsland, chmn., First
Bank Edina. The latter three are pres., v.p. and secy.-treas. respectively of Dist 3. RIGHT (all Dist. 4)— Donald Dick, retiring pres. Dist 4 and
pres., First Bank Grand, St. Paul; William Solberg, dist. v.p., and pres., Norwest Bank Central, Minneapolis; Robert Torvik, dist. secy-treas.,
and pres., First Bank Bloomington Lake, and the MBA dist. dir. R. James Gesell, pres., Cherokee State, St. Paul. New Dist. 4 pres. Donavon
Fisher, pres., The Roseville Bank, was unable to be present.

banks are spread all over and are not
necessarily contingent on being in a
bad economic part of the state.
Each of the districts held its own
business meeting. At the time they
endorsed the following state officer
candidates for 1984-85:
For president—Galen T. Pate,

MBA District Officers
District 1: Pres.—Dennis Cleveland, pres.,
Town & Country State Bank, Winona;
V.P .—Donald Meiners, pres., Eitzen State
Bank, and Secy.—M .H . Halvorson, e.v.p.,
First Natl. Bank, Waseca.
District 2: Pres.—Charles Traxler, pres.,
First Natl. Bank, Le Center; V .P .—Charles
Greentree, e.v.p., Citizens State Bank, Silver
Lake, and Secy.—Robert Barsness, e.v.p.,
Prior Lake State Bank.
District 3: Pres.—James Graham, pres.,
Norwest Bank Stillwater; V .P .—Arvid
E v en sv old , pres., F irst N a tl. Bank,
Hastings, and Secy.—Herbert Wogsland,
pres., First Bank Edina.
District 4: Pres.—Donavon Fisher, pres.,
The Roseville Bank; V.P .—William Solberg,
pres., Norwest Bank Central, N .A., Min­
neapolis, and Secy.—Robert Torvik, pres.,
First Bank Bloomington Lake, Minneapolis.
District 5: Pres.—James Hearon, pres., Na­
tional City Bank, Minneapolis; V .P .—
Richard Klingen, pres., Norwest Bank St.
Paul, N .A., and Secy.—Andrew Sail, pres.,
First Bank St. Paul.
District 6: Pres.—Mrs. Arlene Michael,
v.p. & cash., Citizens State Bank of Milaca;
V .P .—Wallace Young, v.p. & cash., First
State Bank, Onamia, and Secy.—Wesley
Geurkink, pres., Princeton State Bank.
District 7: Pres.—W . Bradley Jorgens,
pres., Security State Bank, Beardsley:
V .P .—Donavon Olson, pres. & cash., State
Bank of Wendell, and Secy. — Harley
Aamoth, pres., Belview State Bank.
District 8: Pres.—R.R. Nelson, pres.,
Itasca State Bank, Grand Rapids; V.P .—Ed
Thornberg, pres., Norwest Bank Two Har­
bors, N .A., and Secy.—Robert Alexander,
v.p., Merchants & Miners State Bank, Hibbing.
District 9: Pres.—Paul Tellefson, pres.,
State Bank of Hawley; V.P .—Jerry Wendorff, v.p. & cash., First American Bank,
Breckenridge, and Secy.—Rodney Nelson,
v.p. & cash., First Natl. Bank, Vrookston.

Banker, November, 1983
Federal Reserve Bank of St. Louis

president, Signal Hills State Bank,
West St. Paul, and presently first
vice president.
For first vice president—Clinton
D. Kurtz, president, Citizens State
Bank, Norwood, presently second
vice president.
For second vice president—Roy

W. Terwilliger, president, Suburban ^
National Bank, Eden Prairie.
For treasurer—R. Scott Jones,
president, Goodhue County Na­
tional Bank, Red Wing.
Newly-elected officers for the nine £
districts are shown in the accompa­
nying table.

Mankato Addition Told

to instalment loan manager. In addi­
tion Kurt Klosterman has joined as
instalment loan trainee. Mr. Kloster­
man is a 1983 graduate of Moorhead #
State University.

Michael J. Buzzell has joined Nor­
west Bank Mankato, N.A., as vice
president of loan administration in
the commercial banking depart­
Mr. Buzzell began his banking ca­
reer in 1978 with Norwest Corpora­
tion as a bank examiner.

Manager Promotion Told
Northern State Bank of Thief
River Falls has announced the pro­
motion of Delilah Schmidtgall to
manager of the Northern State In­
surance Agency and Tim Erickson

Promoted in Grand Rapids
Norwest Bank Grand Rapids,
N.A. has promoted Don Skinner to
assistant vice.
Mr. Skinner, who joined the bank
in 1980, also recently was named
branch manager of Southside Norwest Bank Grand Rapids, N.A. He
will promote and administer all
types of deposit and loan services at
the Southside Bank.




Stewart Bank Opens Hutchinson Office

APPROXIMATELY 5000 people toured The First Bank of Minnesota’s new extended facility
in Hutchinson during its grand opening held In September. The 8,520 sq. ft. facility, located
on a two-acre location at 700 South Grade Raod, features three drive-up lanes, a spacious
lobby with clerestory lighting and an upper level mezzanine. Six teller lanes are available
and an ATM is scheduled to be installed early next year. First Bank of Minnesota has its
main office in Stewart.


South Dakota
C.W. Ekstrum, pres., Philip
J.M. Schwartz, exec, mgr., Pierre

Two Elected, Three
Advanced at First Bank
First Bank of South Dakota,
Sioux Falls, recently announced
that Gary Junck
was named vice
p re sid e n t and
senior lending
officer at Vermil­
lion; Sally LaBau was advanc­
ed to vice presi­
dent and Byron
Bennes was pro­
moted to assist­
ant vice presi-





in Sturgis at First Bank in August
of this year. He previously was with
PCA in Rapid City.

Acquisition Approved
The Federal Reserve Bank of Min­
neapolis has approved the applica­
tion by Tri County Investment Com­
pany, Chamberlain, to acquire the
Tri County State Bank Holding
Company, Inc. Chamberlain, which
controls Tri County State Bank.

First National Volga, Sold
Controlling interest in the First
National Bank of Volga has been
sold to North Central Financial Ser­
vices, Inc., a one bank holding com­
pany specifically formed for the pur­
chase of the controlling interest in
the bank.
Michael A. Lyons has been
elected chairman and David A.
Callies, vice chairman. Allan L.
Kostboth will serve as president,
succeeding Howard B. Lee, who
resigned as president and chairman
but will continue to serve as special
advisor to the board.
Mr. Lyons is senior partner in the
law firm of Doyle, Mahoney, Lyons
& Palmer of Sioux Falls. Mr. Callies
presently is president and chief
operating officer of the Security
State Bank in Madison, as well as

manager of the Security State Bank
branch in Conova.
Mr. Kostboth is president and
owner of Kostboth Motors, Inc., a
Chrysler, Plymouth, Dodge dealer­
ship in Madison. He previously
served as president of the Chan­
cellor State Bank and the Security
State Bank in Madison and present­
ly is a director of Security State and
of North Central Financial Services.
New directors include Eugene
Reinholt, president and 50% owner
of Nettleton College, Sioux Falls,
and Wesley J. Tschetter, plant
manager of Rapid Air Corporation
in Madison.
Also announced was the hiring of
Duane R. Schlomer as vice presi­
dent, who will be primarily working
in the loan department. He previous­
ly was assistant vice president with
the Federal Land Bank Association
in Yankton.

Farmers and Merchants
Expands South Motor Bank
Farmers and Merchants Bank,
Huron, was scheduled to begin con­
struction on a $250,000 expansion
and remodeling project at its South
Motor Bank facilities, according to
Bruce Odson, president and chief ex­
ecutive officer.
The bank building will be expand­
ed north and include a new 24-hour
Advantage Teller, a new inside
walk-up and customer service area.
This area will be highlighted with a
plexiglass canopy extending from
the building over the 24-hour teller.
The auto bank will also be expanded
to the south with three lanes of
remote drive-up units plus one com­
mercial lane, with skylights over
each lane.

Bridgewater Celebrates New Building
dent, both at Miller; Barbara Nelson
was elected operations officer in
Rapid City and Casey Hunter was
elected agricultural loan officer at
Mr. Junck began his banking ca­
reer with the Sioux Falls main office
in 1974 as agriculture rep. Ms. LaBau joined First Bank Miller in
1971 as a loan secretary. Mr. Bennes
began his employment with First
Bank Miller in 1978 as an agricultur­
al loan trainee. Ms. Nelson started
as a teller in 1978 at First Bank
Rapid City. Mr. Hunter just started
Federal Reserve Bank of St. Louis


FIRST State Bank, Bridgewater, recently held an open house to celebrate the com­
pletion of its new 3,100 sq. ft. building. The open house was held in conjunction with
the bank’s observing 80 years of service to the community.
Northwestern Banker, November, 1983


Mason City
Federal Reserve Bank of St. Louis


W hen Dick Holmes
isn’t on the road calling on bankers,
he’s on the phone talking to them.
Whether he’s on the road or in the office, Dick
Holmes keeps in close contact with his respondent
bankers. Dick knows that responding quickly to a
question or problem is his most important responsibility;
one he takes very seriously. That’s why he travels so often
. . . uses the phone so much. . . and gets back to his
bankers so fast.

Correspondent services you’d expect from a
bank our size.
When you work with Dick Holmes, you not only
benefit from his thirteen years of experience, you also
gain access to a wide range of Correspondent Banking
services. Check clearings, collections, wire transfers, Fed
Funds, investment services, bond portfolio analysis, ag
and commercial overlines, bank stock loans, leasing, lock
box service, and CashLine for efficient, up-to-the-minute
cash management are examples of the many services
Dick can offer you.

See how responsive we are. Call us today.
If you think it’s time your Correspondent Banker
paid a little more attention to you, call Dick Holmes or
any of our experienced bankers at F&M Marquette’s
Correspondent Banking Department. At F&M Marquette,
we stay on top of your needs by staying in touch with you.

A F&M Marquene National Bank
6th & M arquette
M inneap olis

Dick Holmes

Bill Klein
Federal Reserve Bank of St. Louis

Bill Addington


Sandy Sickles

Joan McCarthy

Mark Schabert

Phil Gallivan,
Vice President

Northwestern Banker, November, 1983


University of North Dakota Law
School and graduated with distinc­
tion in 1978. Ms. Foss then worked
one year at the Bank of North
Dakota and two years at MontanaDakota Utilities Co. at Bismarck

Three Promoted at
First National, Williston
Bismarck President Elected
The board of First Bank Bis­
marck, has elected Robert E.
Westbee chairman and Donald W.
Green president and managing of­



Mr. Green has been associated
with First Bank system since 1967
when he joined First Bank Fargo as
an assistant vice president in the
commercial lending department. He
joined First Bank Bismarck in 1982
as executive vice president and trust
officer also in the commercial len­
ding department.
Mr. Westbee joined First Bank
System in 1959 and has served as
president of First Bank Bismarck
since 1975.

ulatory approval. Comsummation of
the merger is not expected before
late February, 1984.

Fargo Changes Told
Paul F. Gentzkow has been ap­
pointed vice president in commercial
loans, and Keith Elliot has joined as
vice president and manager in real
estate at Norwest Bank Fargo, N.A.
Mr. Gentzkow began his banking
career in 1975 with Norwest Bank
Fargo. In 1980 he transferred to the
loan administration department of
Norwest Corporation in Minneapolis
as a credit analyst. In December of
that year he transferred back to
Fargo in the commercial loan
Mr. Elliott joins the bank from
Gate City Federal Savings and Loan
Association in Fargo, where he was
statewide manager for the mortgage
loan production department.



Marilyn Foss Named
To Commissioner Post

A ssista n t A ttorn ey General
Marilyn Foss has been appointed
Commissioner of the Department of
Banking and Financial Institutions
by Governor Allen I. Olson, effec­
tive October 15.
Grand Forks Merger Planned
Ms. Foss, 32, succeeds Lee M.
First National Bank in Grand Stenehjem, Jr., who this summer
Forks has announced that First Na­ was appointed Director of the Office
tional Corporation, a newly-formed of Management and Budget.
North Dakota business corporation,
A native of Minot, Ms. Foss was
plans to file with the Securities and selected from four candidates as be­
Exchange Commission a Registra­ ing the most qualified to help keep
tion Statement relating to shares of North Dakota’s financial institu­
its common stock of First National tions viable in today’s environment.
Bank in Grand Forks. The proposed She has been with the Attorney
exchange is part of a plan of cor­ General’s office since January, 1982,
porate reorganization pursuant to and has served as legal counsel for
which First National Bank will be­ the Banking Department.
come the sole subsidiary of a bank
Ms. Foss received her bachelor’s
holding company through its merger degree with honors from the Univer­
into a newly-formed, wholly-owned sity of North Dakota in 1973.
subsidiary bank of First National Following her graduation, she was
employed as a trust administrator
The merger and formation of the by the First Bank of North Dakotaholding company are subject to reg­ Grand Forks. She attended the

Banker, November, 1983
Federal Reserve Bank of St. Louis

Duane W. Sorensen, president of
the First National Bank & Trust Co.
of Williston, has
announced the
p r o m o t io n o f
R ic h a r d
Brudvik to trust
officer; Cindy L.
W illiam son to
trust operations
o ff ic e r ,
Leanne C. Barr­
ett to human re­
sources officer.



In addition, Douglas P. Goetz and
Philip D. Papineau have become
licensed attorneys and members of
the N orth Dakota State Bar
Mr. Brudvik has been serving as
assistant trust officer and recently
graduated from the National Trust
School in Evanston, Illinois. Ms.
Williamson, previously was with
Hawkeye-Capital Bank & Trust of
Des Moines, Iowa. Ms. Barrett, who
has been serving in personnel/advertising, previously was with Twin
City Die Castings in Minneapolis.
Mr. Goetz and Mr. Papineau have
both served as trust administrators
since June.


Casper Election Told

W yom ing
D.H. Babbitt, pres., Worland
M.C. Mundell, exec. dir., Laramie




Appointed in Sheridan

New V.P. Named

Bank of Comerce, Sheridan, has
announced the appointment of
James D. Sparks as administrative
officer in the bank’s trust depart­
ment, and Charles N. Ridings as
credit administration officer.
In addition Dan S. Scoot, general
manager of the Padlock Ranch Co.
near Dayton, has been appointed to
the board of directors.

C.W. Derby, vice president of
operations for The Wyoming Na­
tional Bank of Casper, has transfer­
red from the bank to assume a newly
created position of vice president in
charge of operations for the Affiliat­
ed Bank Corporation.
Mr. Derby joined the bank in
1977 following a long-time banking
career centered in Colorado.

Lee E. Berger has been elected
senior vice president and credit ad­
m inistrator o f
W y om in g N a­
tional Bank of
M r. B e r g e r
fo r m e r ly w as
vice president of
commercial lend­
ing at the Norwest Bank of
H elena, M o n ­
tana. H is 17
years with Norwest Bank included
all types of lending as well as opera­
tional and adm inistrative e x ­
A native of Helena, Mr. Berger
received his degree in business ad­
ministration from Montana State
University in 1965.

Two Anaconda Bankers
Receive Diplomas

David Servies Elected
To Head Billings Bank
First Trust Montana, Billings,
has announced the election of David
L. Servies as
p resid en t and
Timothy J. Heal­
ey as chairman.
Mr. H ealey,
who will retire
D ecem b er 31,
has served as
p r e s id e n t
First Trust Mon­
tana since 1979.
He joined First
Bank System in 1963 as vice presi­
dent and manager of the trust
department of First Bank Billings
and was elected senior vice presi­
dent in 1977.
Mr. Servies joined First Trust
Montana in 1979 as vice president
and manager of the Billings divi­
sion. Prior to that time he was
associated with Seattle-First Na­
tional Bank, Washington, where he
Federal Reserve Bank of St. Louis

served as vice president of the Trust

First Security Bank, Anaconda,
recently announced that two of its
employees recently have graduated
from bank graduate schools.
Don Clark was awarded a diploma
at the 39th annual commencement
exercises of the Hurbert V. Prochnow Graduate School of Banking at
the U niversity o f W isconsin,
Madison. He joined the bank in

Billings Addition Told
Phillip G. Blank has joined
Norwest Bank Billings, N.A., as an
assistant vice president and assis­
tant manager agriculture lender, ac­
cording to Tom Farris, president.
Mr. Blank has spent the last 12
years with the PCA in Missoula,
Dillion and Helena. He also served
as an ag lender with First National
Bank in Lemmon, South Dakota.

Applications Approved
The Federal Reserve Bank of Min­
neapolis has approved the following
applications: Montana Bancsystem,
Inc., Billings, to acquire shares of
Bank of Montana System, Great
Falls; and Valley Bank of Ronan for
membership in the Federal Reserve
System. Valley Bank of Ronan is a
new state chartered bank.



William P. Finnegan recently
graduated from the Pacific Coast
School of Banking at the University
of Washington, Seattle. He started
at First Security Bank in 1970.

Acquisition Approved
First United Bancorporation, Sid­
ney, has received approval from the
Federal Reserve Bank of Minneapo­
lis to become a bank holding compa­
ny through the acquisition of the 1st
United Bank of Sidney.
Northwestern Banker, November, 1983


Whatwe can do
behind the scenes
will help you
in front of
your customers.
The most efficient use of time,
the best possible day-to-day
clearing of items, and the least
costly methods of operation are
what distinguishes the excep­
tional bank from the ordinary.
The first step toward becoming
an exceptional bank is to know
an exceptional correspondent
processor. One who can help you
behind the scenes.
Norwest Bank O m aha has the
operational talent and processing
experience to help make a
difference in your bank.

For a better idea of how we
can help you behind the
scenes, call Tom Jackson,

Norwest Bank Omaha
(formerly U.S. National Bank of Omaha)
Member FDIC Affiliate of Norwest Corporation



m m ym m

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis


Omaha National, First National Lincoln
Sign Agreement in Principle to Merge
FTER a whirlwind, on-again, merged and the surviving corpora­
off-again 100-day courtship, tion will be renamed Firstier, Inc. In
First National Lincoln Corp. and the merger, each outstanding share
Omaha National Corporation ex- of common stock of First National
^ ecuted an agreement in principle on Lincoln not purchased for $42.50 in
October 28 to merge the two hold­
ing companies into a new company
to be named “ Firstier, Inc.” The
agreement had received the unanif mous approval of all directors.
John D. Woods, chairman of the
board of Omaha National and
William C. Smith, president of First
National Lincoln stated: We believe
• that the combination should make
Firstier the leading banking organi­
zation in the State of Nebraska with
significant operational cost advan­ Omaha National’s cash offer will be
tages stemming from its size. This converted into 0.875 of a share of
# size will mean expanded lending ca­ common stock of Firstier, Inc.,
pabilities to better serve the eco­ rather than 0.850 of a share as
nomic growth of Nebraska, includ­ originally proposed by Omaha Na­
ing the agricultural, business and tional. Each outstanding share of
consumer segments. Firstier, Ne- common stock of Omaha National
• braska owned and controlled, will become one share of Firstier.
should be better able to compete in
The purchase of shares by Omaha
the deregulated financial service in­ National under its offer and the pro­
dustry with out-of-state bank hold­ posed merger will be subject to re­
ing companies and non-bank finan- ceiving necessary regulatory ap­
provals. The merger also will be sub­
® cial institutions.
F ollow in g execu tion o f the ject to approval by shareholders of
November 22 merger agreement, both Omaha National and First Na­
Omaha National will amend its pen­ tional Lincoln. The merger agree­
ding, previously announced offer to ment will provide for Omaha Na­
® purchase 775,000 shares of common tional to amend its offer to make the
stock of First National Lincoln to purchase of shares conditional upon
raise the price in the offer to 42.50 at least 775,000 shares being tender­
per share from the $40.00 previously ed prior to its expiration of such
offered. Omaha National has also fewer number of shares as Omaha
™ separately announced today that it National may determine prior to the
will extend its offer until January 6, execution of the merger agreement.
The proposed merger is to be
1984, and that it is its present inten­
tion to further extend its offer from structured to qualify as a tax-free re­
_ time to time until the receipt of regu- organization under federal income
9 latory approvals necessary before it tax law.
The Agreement in Principle pro­
may purchase shares in its offer.
The merger agreement will pro­ vides that after consummation of
vide that following the purchase of the proposed merger, Firstier will
^ shares in the offer First National maintain corporate offices in both
Lincoln and Omaha National will be Lincoln and Omaha, with the regis­

Federal Reserve Bank of St. Louis

tered and principal office of the new
bank holding company located in
Lincoln. The senior executives of
Firstier will maintain offices in both
cities. The Agreement in Principle
further provides that Omaha Na­
tional Bank and First National
Bank & Trust Company of Lincoln
will remain wholly-owned subsid­
iaries of Firstier after the proposed
merger and each will continue to be
operated under its existing name
and with its present board of direc­
tors and officers.
The merger agreement will pro­
vide that Firstier’s board of direc­
tors after the proposed merger will
consist of equal representation of
First National Lincoln and of
Omaha National. The agreement
will provide for similar representa­
tion on Firstier’s board of directors
for at least five years after the pro­
posed merger.
John D. Woods, chairman of the
board of Omaha National and Wil­
liam C. Smith, president of First Na­
tional Lincoln, will be the chairman
of the board and president of Firs­
tier, respectively.
As part of the Agreement in Prin­
ciple, First National Lincoln has
agreed, subject to certain limita­
tions, not to solicit offers for, or
enter into discussions or agreements
relating to, an acquisition of the
The original announcement of the
merger plan was made July 19. A
short time later, Duane W. Acklie,
largest stockholder in First National
Lincoln, objected and offered $40
per share to other stockholders. On
August 31, Mr. Acklie agreed with
fellow directors to cancel his offer
and First National cancelled any
merger plans for a year. However,
on October 6 Omaha National Cor­
poration initiated its own offer
again, this time for $40 per share, in­
cluding cash payment in response to
Mr. Acklie’s call for an alternative
to a stock trade. The First National
Lincoln board formally rejected that
offer October 21, stating the price
was too low. The Omaha National’s
$42.50 offer followed on October 24
and both boards then agreed in prin­
ciple to the merger agreement
described above.
On September 30, Omaha Nation­
al Corporation had assets of $1,004
billion and deposits of $645 million.
First National Lincoln Corp. on the
same date had assets of $801.5
million and deposits of $577 million.
Northwestern Banker, November, 1983

Bank Marketing Association, and £
Robert Morris Associates.
* * *

John M. Shonsey, board chairman
of American National Bank, has an­
nounced the elec­
tion of Harold G.
“ Hal” Haver as
p resid en t and
chief executive
officer of the
bank. Mr. Haver
and Allan G. Lo­
zier, chairman of
the board of the
Lozier CorporaH.G. HAVER
tio n
O m aha,
have been elected to the bank’s

board of directors. Robert L.
Zabawa, former president, has been
named to the newly-created post of
assistant to the president.
A 27-year veteran of the banking
industry, Mr. Haver was president
of a major bank in Mason City,
Iowa, before moving to Omaha. In
the past, he had held executive posi­
tions with banks in Minneapolis,
Des Moines and Detroit. A graduate
of the University of Iowa and the
Stonier Graduate School of Bank­
ing, he is active in the American and
Iowa Bankers Associations, the

Norwest Bank Omaha South,
N.A., has announced the election of
Kent R. Helm as
agricultural loan
Prior to join­
ing the bank,
Mr. Helm was a
loan officer at
O’Neill Produc­
tion Credit Asso­
ciation in O’Neill.
He has a BS
degree in animal
science from the University of
Nebraska at Lincoln

Joins Wausa Bank
Lyle Rorvik has joined Commer­
cial State Bank, Wausa, as of
August 15. He previously served as
industrial arts instructor in the ®
public school system in South
Dakota and managed a restaurant in
Iowa for three years.
Roger Claussen, who had served
as loan officer at Commercial State, ®
resigned earlier this year to accept a
position at Ute State Bank in Iowa.

Greeley Bank Sold



Tom Grove

Karen Lee

Mike Drahota

Senior Vice

Bond Investment

Investment Banking

Controlling interest in the City
National Bank of Greeley has been
purchased by William McQuillan
and James M. McQuillan. In addi­
tion, Bill McQuillan has joined the
bank’s staff as executive vice presi­
dent, cashier and director. He has
been in banking since 1968 with the
Omaha National Bank and the
Nebraska State Bank & Trust in
Broken Bow.
Most recently he was senior vice
president and director of the Pali­
sades National Bank in Palisade,

New Sidney Bank Proposed

Terry Reiff

Jim Kay

Darla Sorenson

Bond Investment

Bond Investment

Bond Investment

packers national bank

Nebraska W A T S . . . 8 0 0 -6 4 2 -9 9 8 0

4710 South 23rd Street

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

Iow a W A T S . . . 800-2 2 8 -5 3 9 8

Omaha, Nebraska 68107

An application has been filed with
the Comptroller of the Currency for £
the proposed First National Bank of
Sidney to be located at 841 Illinois
Street in Sidney.
Agent for the new bank is Larry
A. Holle. Other organizers include ^
Thomas H. Olson, Charles L.
Ferguson, William S. Olson, Larry
Rasmussen and Gene C. Eaton.
Proposed capital structure is:
capital - 525,000; surplus - 525,000, £
totalling 1,050,000.


Don Ostrand

Ralph Peterson

Jim Flodine

Fred Kuehl

Gerry Tomka

Mark Sorensen

CORRESPONDENT banking can be confusing, frustrating,
time-consuming. Not so at First National Bank of Omaha.
Just call to get the answers from one of our six experienced
correspondent bankers. Six men with the very latest
financial technology at their fingertips dispensing profession­
al, dependable, confidential service.
So call us for the answers to your correspondent
banking questions — on electronic data
processing, cash letter processing, overlines,
fed-fund transactions and more.
In Nebraska, call 1-800-642-9907. Outside
Nebraska, call 1-800-228-9533. You'll getthe
for FRASERfrom us, the answer men.

first n a tio n a l b a n k
of omaha
Federal Reserve Bank of St. Louis

Member FDIC

Northwestern Banker, November, 1983


Nebraska News

LEFT_Conference speakers included Barb Stoldt, acct. exec., Leo Burnett Adv. Agcy., Chicago; Marketing Committee Chairman Jerry®
Hunke, chmn. & c.e.o., First Natl. Bk., West Point; Steve Barger, v.p., Hawkeye Bancorp., Des Moines, and Alan Paro, adv. mgr., American
Bankers Ass’n., Washington D.C. Right— Ann Bartolomei, mktg. coord., and Elaine Weldon, mktg. asst., First Natl. Bk., Omaha; Speakers
Pat Thompson and Chris Petersen, and Ellen Junge, dir. ed. and Marilyn Sladky, conf. coord., NBA.

NBA Sponsors Marketing Conference
Associate Publisher




S the title given to the Nebraska
Bankers Association Marketing con­
ference held in Kearney last month.
Over 120 bankers were welcomed to
the two-day session by Marketing
Committee Chairman Gerald Hunke,
chairman and chief executive officer
of the First National Bank of West
Alan Paro, advertising manager of
the American Bankers Association,
used the conference for the “ world
premier’ ’ screening of the A B A
television spots which will air beginn­
ing in mid-October on network news
programs. The new commercials use
a split-screen technique and em­
phasize the advantages of doing
business with a commercial bank ver­
sus a non-bank company. Featured in
the spots is a new tagline, “ Security
With No Ifs,” which appears in the
familiar Full Service Bank logo.
Assisted by Barbara Stoldt of the
Leo Burnett Advertising Agency,
Mr. Paro presented a review of the
Financial Services Usage and A t­
titude Study which was prepared for
the AB A by the Burnett agency. The
study describes financial consumer
groups and then examines the
relative importance of various bank
attribute dimensions to the in­
dividual groups. He also focused on
the importance of identifying the
non-bank financial competitors and
along that line, he showed a series of
non-bank television spots which are
targeted directly towards the com­
mercial bank customer. Mr. Paro
concluded his presentation with an
for FRASER Banker, November, 1983
Federal Reserve Bank of St. Louis

examination of the effects of the re­
cent merger between the Bank
Marketing Association and the
Steve Barger, director of mar­
keting and sales for the Des Moines
based Hawkeye Bancorporation, of­
fered the Nebraska bankers a behind
the scenes look into the development
of Hawkeye’s Investor Centers.
Now in place in 26 Hawkeye banks,
the Investor Centers function as a
market driven delivery system for
financial products. The attractively
designed centers are located in high
traffic areas within the bank and
manned by well trained sales repre­
sentatives. The sales people are
given specific sales goals and quotas
for various products and are paid on
a salary plus incentive basis. The
products are designed to meet the fi­
nancial needs of up-scale consumers
in the areas of tax savings, invest­
ments, retirement and asset manage
John Miller, NETS coordinator
for the Nebraska Bankers Associa­
tion, gave an up-date on the Nebras­
ka Electronic Transfer System
which he projects will handle over
one million transactions in 1984. He
gives much of the credit for the
system ’s growth to the bank
marketers for creating a consumer
awareness of the 316 bank member,
state-wide ATM network. The next
major project for NETS will be the
coordination of POS terminals at
gasoline pumps, which Mr. Miller
feels will happen in the very near
Jack Hubbard, vice president of
marketing for Larkin Bank of Elgin,

Illinois, shared his expertise in
financial advertising and m arket#
research in a presentation which
focused on the basics of advertising
design. Before establishing the
advertising budget he recommends
reviewing the Bank M arketing#
Association publication “Analysis
o f 1982 Bank Marketing Expen­
d itures" which compares bank
marketing expenditures based on
deposit size, market population a n d #
type of market. He went on to ex­
amine the various approaches to be
budget approval and management®
involvement in the marketing plan.
Using an effective classroom
style, Mr. Hubbard compared the
advantages and disadvantages o f ^
the various advertising mediums ®
available in most markets. He also
included pointers on the do’s and
don’t ’s of newspaper layout, direct
mail design and on the creation o f ^
radio and television spots. The 11
underlying theme throughout his
presentation, however, related to
the value and use of accurate market
research in all phases of bank adver- q
Red Pope, Sun Banks of Florida
senior vice president, emphasized
the importance of market position­
ing in today’s competitive financial 0
services industry. Labeling the in­
dustry as one driven by product
d evelop m en t and p ricin g , he
asserted that banks need to deter­
mine what they want to be before 0
they can begin to think of designing
an effective marketing plan. To
define the bank’s market position,
(Turn to page 58, please)

“I need a correspondent banker
who’ll work as hard for my bank
as he does for his own.”
That’s just what a working relationship with NBC offers.
If you judge them by their ads, co rrespondent banks look
quite a bit alike. But the banks w e serve are looking for
m ore than a friendly smile and a passing know ledge o f
their special problem s. They’re looking for a professional
partnership they can count on.
O ur w orkin g relationship involves all the traditional
co rrespondent services plus program s that are uniquely
ours: from custom ized bank cash m anagem ent services, to
a clearinghouse for banking forms, to financial planning
software packages for banks and their custom ers. Vital
contact includes our “ News 8. Views” executive letter
citing industry trends and changing regulations.
In to d a y’s co m p etitive financial market, you need that kind
o f su p p o rt from yo u r correspondent. Call us to hear m ore
about w hat our clients mean w hen they say, “ NBC w orks
for m e.”


The Correspondent Banking; Division of National Bank of Commerce
NBC Center, 13th & O St.. Lincoln, Nebraska 68508, Telephone (402) 472-4321 / M em ber FDIC
Federal Reserve Bank of St. Louis




First National Lincoln President
William C. Smith has announced
two recent officer appointments.
Kathryn A. McCall has been
named cost accounting officer, ad­
ministrative services division, and
Steven L. Schmidt, commercial loan
officer, commercial lending division.
Ms. McCall began her First Na­
tional Lincoln career in 1981 as a
credit analyst. She was named cost
accountant earlier this year. A
native of Omaha, she is a graduate
of Nebraska Wesleyan University.
A native of Ravenna, Mr. Schmidt
is a graduate of the University of
Nebraska - Lincoln. He was employ­
ed at First National while attending
the university, joining the bank full­
time in 1981 as a member of the cus­
tomer services division.

FSI Names Two Sales Reps
Financial Systems, Inc., head­
quartered in Kearney, has announc­
ed that Paul Lehmkuhler and Deb
Roberts have been named sales rep­
Mr. Lehmkuhler will be a repre­
sentative for North and South
Dakota. His background includes
credit analysis and computer opera­
tion with several midwestern banks.
Ms. Johnson, who will be working
in Nebraska, comes from Harris



for FRASERBanker, November, 1983
Federal Reserve Bank of St. Louis

Laboratories, F SI’s parent com­
pany, where she spent nine years in
the data processing department in­
cluding five as manager.

New Senior V.P. at
North Platte Bank
Dean Kugler, former part-owner
of Springfield State Bank, has ac­
cepted a position
as senior vice
president of len­
ding with American
S e c u r ity
N o rth
Platte, announc­
D ean
Niedan, chair­
man in North
M r. K u g ler
had been affiliated with a bank at
Gothenberg prior to his purchase in

Two Appointed in Norfolk
Raymond Tiedje, president of
Bank of Norfolk, has announced the
appointment of Terry Jensen as
senior vice president and Sherri
Small as account executive.
Having acquired six years of
banking experience, Mr. Jensen most
recently was vice president of the
NorWest Agriculture Credit, Inc., in
Sioux Falls. In his new position, he
will expand the agricultural and
commercial loan portfolios and
establish an auctioneering service in
northeast Nebraska in conjunction
with the Norfolk Financial Center
concept recently adopted by the
Ms. Small will serve as account
executive of Bank of Norfolk’s


Financial Center. Having previously
been employed at Century 21 as a
real estate sales-person, Ms. Small
will specialize in investment related
products: time certificates, money
market funds, stock trades, precious
metals and retirement funds.


Honored in West Point
Ivalo White, assistant vice presi­
dent at First National Bank in West
Point, was honored for her 30 years ®
of service to the bank at a reception
held September 11.

Trenton President Advanced •
D.D. Wahley has been elected
president of the State Bank of Tren­
ton. He succeeds D. Roger Thuman
who will serve as chairman. Mr. _
Thuman has served as president of 1
the State Bank of Trenton since
Mr. Wahley joined the bank in
1971 and has served as executive (||>
vice president since that time. Prior
to joining the Trenton bank, he
served as vice president and cashier
at Peoples-Webster County Bank in
Red Cloud for five years. He also #
served three years as a State Bank

Two Appointed, One
Retires in Tekamah


Norman Kassmeier has been ap­
pointed assistant vice president of
Burt County State Bank, Tekamah.
Prior to joining the bank, Mr.
Kassmeier was an instructor in the
Tekamah-Herman Public School as
a business education instructor.
Also at the bank, Adelaide Bovee, ®
assistant cashier and employee of
the bank for 42 years, has retired.
Donna Mock has been appointed
assistant cashier. She previously ^
was operations officer secretary.


The Experienced Professionals
of First National Lincoln.

Ready to meet your correspondent needs.
Put your trust in the correspondent specialists of The First
Team. Fast. Knowledgeable. Backed by more than 112 years
of strength and experience as Lincoln’s largest bank.

The F irs t Team.

13th and M Streets • P.O. Box 81008
Lincoln, NE 68501 • Phone (800) 742-7462
Member, F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker. November. 1983


Nebraska News

NBA Bank Management Conf. Nov. 16-17
sociation 1983 Bank Manage­
ment Conference is scheduled to be
held at the Kearney Holiday Inn No­
vember 16-17. Jack Holmquist,
chairman of the committee on bank
management and president of York
State Bank & Trust Co. has an­
nounced the following program
A.M. Wednesday, November 16
8:30 Registration and continental
9:00 Processes for Strategic Posi­
tioning—Gene Morton, orga­
nizational consultant, Morton
& Associates, Lincoln.
12:00 Lunch.
Three Ways to Motivate Your
Employees—Mike Chy, Per­
sonal Motivation Institute,
Flossmoor, 111.
1:30 How to Sue Your Local Bank­
er—Don Towle, president,
Kansas Bankers Surety Com­
pany, Topeka Kansas.
2:00 Analyzing Bank Performance
—Dr. George Hempel, profes­
sor of finance, Southern
Methodist University, Dallas.
4:00 Regulatory Panel.
6:00 Area bankers reception and
A.M. Thursday, November 17
8:00 Relationship Banking . . . Key
to Banking P rofita b ilityCarl Nielsen, Carl Neilsen &
Associates, Wichita, Kansas.
11:15 What’s ahead for the micro­
com puter?—Dave Waldron,
m icrocom puter consultant,
Kearney, Neb.
12:00 Lunch and adjournment.
1:00 Optional session—Microcom­
puter demonstration by Dave


Vice Chairman Barbara Muhr,
marketing and instalment loan of­
ficer, G ering N ational Bank;
Secretary Carol Findlay, assistant
cashier, Bank of Gering, and
Treasurer Gwenn Greeley, motor
bank manager, Western National

Northeast Group of NABW
Receives Excellence Award
The Northeast Nebraska NABW
Group recently received the Group
Excellence Award from the national
NABW office in Chicago. This is the
highest award attainable through
the national association and is given
to groups who have demonstrated
outstanding performance.
The Northeast Nebraska group
excelled in the membership growth
area, gaining the highest number of
points in that category.
Joyce Gott led the group as chair­
man in receiving the award and
Gladys Freiberg was appointed to
attend the national NABW meeting
in Dallas, Texas, and accept the
(Continued from page 54)
he suggests the review of the entire
financial needs o f the retail
customer. For the needs that the
bank is unable to provide he sug­
gests networking with local non­
bank companies. He offered the ex­
ample of working with local accoun­
tants to provide tax preparation ser­
vices of a fee basis in the bank lobby.
“ Use research to determined the

NlBA Board Elected


The N ebraska In d epen den t
Bankers Association recently an­
nounced the names of the in­
dividuals elected to three-year terms
as members of the association’s •
board of directors.
District 1: L. Mort Novak, Lan­
caster County Bank, Waverly;
D istrict 2 : Thom as G rove,
Packers National Bank, Omaha;
District 3: Fred Otten, Commer­
cial State Bank, Hoskins;
District 4: J.F. England, Farmers
& Merchants Bank, Axtell;
District 5: William W. Marshall ®
III, Five Points Bank, Grand
Island, and
District 6: Joel Wiens, First State
Bank, Kimball.

Joins Scottsbluff Staff
Craig K. Madson has joined the
staff of Scottsbluff National Bank &
Trust Company in commercial len- ||
Mr. Madson brings with him a
strong background of banking pro­
fessionalism and expertise in len­
ding and will administer the newly #
established leasing program.
product or service need and then
market the service” he advised.
The marketing conference was #
brought to a close by Pat Thompson
and Chris Petersen, both behaviorial
science P.H.D’s and partners in a
Lincoln based training and con­
sulting firm. They presented various #
techniques to be considered when a
banker wants to “ shop” either his
own bank or a competitors institu­
tion. Their presentation also includ­
ed a review of sales tracking and in- ®
centive based pay systems.

New Officers Named for
Western NABW Group
Jo Van Schuyver, marketing of­
ficer at Scottsbluff National Bank,
was recently installed as chairman
of the Western Nebraska Group of
the National Association of Bank
Women, Inc.
Ms. Van Schuyver succeeds Jacque Neu, administrative assistant,
Western National Bank, Scotts­
bluff, as chairman.
Elected to serve with Ms. Van
Schuyver for the coming year are:

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

LEFT— Donned in a “ Go Big Red” University of Nebraska cap, Jack Hubbard, v.p., Larkin
Bk., Elgin, III., had an attentive audience for his presentation on advertising basics.
Right— Red Pope, sr. v.p., Sun Banks of Florida, Orlando, answers questions following
his talk entitled “ Mickey Mouse Marketing.. The Disney Way!”


look into


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of omaha
Federal Reserve Bank of St. Louis

In Nebraska call us toll free at 800-642-9907. Outside Nebraska call us toll free at
800-228-9533. Member FDIC.

Northwestern Banker, November, 1983


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Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

farm representative.
Mr. Raney formerly was an
agriculture loan officer at Perry
State Bank, Perry.

Main Office to Move

State Chairman Named
Kay Storerau, assistant vice
president in customer service for
Norwest Bank,
Sioux City, has
b een
n am ed
chairman of the
Io w a
S ta te
Council for the
National A sso­
ciation of Bank
As Chairman,
M rs. Stoterau
serves as the
link between the group’s Iowa
members and its national and
regional officers.
Mrs. Stoterau has been a member
of N ABW since 1978, and has
served in several elective and ap­
pointive positions, as well as par­
ticipating in various local civic ac­

“ Asset Leasing” Division
Opens at Peoples Bank

and an expanded opportunity to ac­
quire needed equipment. Leases will
be available for all types of commer­
cial, industrial, construction and
agricultural machinery and equip­
ment to the local business communi­
ty and surrounding midwest areas.

Cedar National Bank, currently
located at Main Street in Carpenter,
recently filed application with the
Comptroller of the Currency to
relocate its head office to 345 West
Fourth Street in St. Ansgar. An ap­
plication was also filed to establish a
branch office at its present location
in Carpenter.
Cedar National Bank, previously
known as Carpenter Savings Bank,
received its national charter effec­
tive Oct. 1.

IYB 1983-84 Officers

Joins UCB of Spencer

The Iowa Young Bankers have
elected officers for the 1983-84 year.
They are:
President Charles Schrup, III,
vice president, American Trust &
Savings Bank, Dubuque; Vice Presi­
dent Paul Chevalier, assistant cash­
ier, Exchange State Bank, Collins;
Secretary Barb Marcus, Maquoketa
State Bank, Maquoketa, and Past
President Jerry Burke, vice presi­
dent, Farmers & Merchants Savings
Bank, Manchester.

Tom Maertens has joined United
Central Bank of Spencer, N.A., as
assistant vice president.
Mr. Maertens
r e c e iv e d
b a ch e lo r’ s de­
gree in agri-busi­
ness from South­
west State Uni­
versity in Mar­
shall, Minneso­
ta. He recently
York, Nebraska,
where he served
as the assistant vice president for
the First National Bank and also
served as the assistant vice presi­
dent for the First York Agriculture
Credit Corporation.

Joins Hubbard Staff
D.W. Heineking, president of
Security State Bank, Hubbard, has
announced that Ron Raney has been
hired as assistant vice president and

R.K. Sverdahl, president of the
Peoples Bank and Trust Company,
Waterloo, has announced the forma­
tion of a new leasing division within
the bank to be called “ Asset Leas­
At the same time, Mr. Sverdahl
announced the hiring of William J.
Taylor as vice
p re sid e n t and
head of the new
d iv is io n . M r.
Taylor received
his degree in
b u s in e s s
administation from
the Northwest­
ern University,
RUBIO Savings Bank of Brighton announced last month that construction has begun on a
E v a n s to n , I l ­
new 5,376 sq. ft. banking facility to be located in the center of the community on
linois, and has
Washington and Van Buren Streets. Kirk Gross Company of Waterloo is in charge of the
several years experience in capital project, which will utilize local subcontractors where possible. Beige, burgundy and oak
will be the predominant colors used in the interior design, with a bold accent facia follow­
A ccord in g to Mr. Sverdahl, ing the unique, curved oak teller counter. On the main banking level will be the safety
“ Asset Leasing’ ’ will provide an deposit box and cash vault, three offices and conference rooms, three stand-up and two
sit-down teller stations, private coupon booth for inventory and bookkeeping area. The
alternative source of financing, addi­ lower level will only be partially used, with half the area being left unfinished for future ex*
tional economy in financing costs pansion.

Construction Begins in Brighton
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1983


Iowa News

NEW BUILDING for Citizens Natl., Charles City, viewed from Cedar Mall shows Main Street to left of building, main entrance at center, and a
four drive-up units at right. Extensive parking adjacent to the building and in the Mall is available.

Citizens National in Charles City
Doubles Space with New Building


HE Citizens National Bank oc­
cupied its new building recently
in the Cedar Mall at 300 North
Main, just a short distance from the
previous building site. The new
quarters provide the bank staff with
double the floor space in the old
quarters, according to O. Jay Tomson, president. The new 93 x 64 feet
building offers 12,000 square feet of
space on two levels, and provides
customers with a roof-covered drive
up area that has four units. The en­
tire building is brick.
Customers entering by the main
entrance are greeted with a reminder
of the old building and the bank’s
beginnings—-the cornerstone dated
1892 when the bank opened for busi­
ness in Charles City. Immediately
inside the front entrance is a large
glassed-in outer lobby that leads
directly ahead to the main bank

floor, or down one flight to the ex­
tensive offices on the lower level.
The main lobby provides custom­
ers with a pleasnt waiting area and
five teller stations. Several work sta­
tions in the main bank area are com­
plemented with private offices along
each wall facing the main area.
The customer service area on the
lower level contains all bookkeeping
and the extensive computer equip­
ment operated by Citizens National.
Other rooms on the lower level in­
clude a board room, a lounge for the
24 employees, and the Heritage
Room which features an extensive
picture collection of Charles City
and the area. The room will be used
as an educational center for
Agricultural, trust, business and in­
vestment seminars, Mr. Tomson
said. A kitchen adjacent to the
Heritage Room will make it conve­

nient for serving meals.
The lower level retains an outdoor
atmosphere through a landscaping
design providing a stair-stepped
open area outside each window fac­
ing the front of the building, thus
giving employees a pleasant view of
flowering plants and a full daylight
Tom Schaefer of Winnebago Con­
tractor Co, Mason City, was the con­
tractor. Wubbens Electric, Charles
City, furnished all electrical equip­
ment and service. Schmidt Plumb­
ing of Charles City installed the
plumbing and heating.

West Liberty Bank
Names Vice President
Dennis R. Batty has been named ^
vice president at West Liberty State
Bank, West Liberty.
Mr. Batty previously served as
vice president and cashier with
LaPorte City National Bank.

MAIN LOBBY shows receptionist desk (left photo) and other work stations with private offices at left and right of this area. Photo faces
front of building toward Main Street. Photo at right shows other end of main floor area, which features five teller stations, vault area, safe ®
deposit boxes and adjoining private rooms for customer use.

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

M anaging by the seat o f your pants
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In the past, banking was simple — buy low
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Federal Reserve Bank of St. Louis

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A BICS system means you, and all your peo­
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A "Banks o f Iow a" subsidiary.


Iowa News

Grand Opening at Sheldon Bank

SECURITY State Bank, Sheldon, held grand opening ceremonies for its new 22,160 sq. ft. building September 24. The building consists of a
drive-up level and plaza level linked together by an elevator and glass-railed open stairway. Five drive-up lanes of banking are located
under the second level at the west end of the complex. When plans were originally being made for the new building, Richard Schneider,
president, decided to use the building project as a threshold for revitalization of the business district in Sheldon. This presented the pro­
blem of how to stay on the same site, proceed with construction and yet keep the bank operating efficiently with minimum inconvenience 0
to customers and staff. The solution was a two-phase plan. Having started in November, 1981, phase one was completed in December,
1982, at which time banking operations moved in. Phase two was completed following demolition of the existing bank structure. Security
State has grown from deposits of $284,597 in 1928 to $49,390,292 in 1983.

Iowa Banks Will Again Market the
Popular ‘Iowa’s Natural Heritage’ Book


OW A banks again are supporting
a statewide marketing effort on
behalf of the Iowa's Natural Heri­
tage book which was widely ac­
claimed this past year. Iowa bank ef­
forts made the book a best seller in
the state, far exceeding the sale of
any similar type book in any other
state. Many banks sold copies di­
rectly, while other banks utilized it
as an opportunity to increase
deposits through a premium con­
A s announced at the Iowa
Bankers Association group meet­
ings last spring by Gerald Schnepf,

executive director of the Iowa
Natural Heritage Foundation, pub­
lisher of the book, there also will be
available a 1985 Heritage Calendar
featuring some of the best photos
from the book, and identifying on
the calendar Iowa’s annual events
and festivals.
When the Iowa Bankers Associa­
tion agreed last year as a public ser­
vice to be the marketing agent for
Iowa's Natural Heritage, the result
was the sale of more than 20,000
books, in the last four months of
1982, approximately four times
more than similar type books sold in

(Continued from page 17)
risks and benefits attached to each, and made a fairly
well informed decision.
I don’t mean to suggest, however, that each and
every float control decision must be backed up by a
mountain of computer printouts, consultant studies
and endlesss meetings. For example, we were able to
redeuce fairly significant float costs in our trust area
with a straightforward operational change. Instead of
waiting until the end of each business day to transmit
checks for processing, we now send the checks several
times in the morning and early afternoon as well as at
the end of the day. All that change took was a testing
of the “ we’ve always done it that way” outlook on
routine procedures.
Non-Operations Float Important
Float, especially when you get outside the opera­
tions area, is a difficult concept to explain to people.
One of the best ways I ’ve found is to talk with mana­

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

several other states. The new agreement signed recently will make the
books available to banks in advance
of the Christmas season again.
W orking with Iowa Natural
Heritage Foundation in preparation
and promotion of the book is The
Graphic Corporation, Des Moines.
Representing that firm to Iowa
banks is Robert Cox, who will assist
banks in developing their marketing
plans for the book. His father was
the late Luin B. Cox, president of
the First State Bank in Belmond.
Information concerning Iowa's
Natural Heritage may be obtained
from Alda Post at the Iowa Bankers
Association, The Graphic Corpora­
t i o n ( 5 1 5 / 2 4 7 - 8 5 0 0 ) , or Mr.
Schnepf’s offfice (515/288-1846).





gers when their profit center reports show thier float
going up and hurting their performance. You probably
have their attention.
With a lending area manager, for example, we can ^
then sit down, one-on-one, and discuss such factors as
the volume and dollar range of paper and electronic
items coming through their area, how long those items
stay in particular accounts, how long it typically takes
to collect funds in their market, and how their custo- q
mers tend to behave in that market.
One of the constraints in all of this—whether it’s a
check-clearing decision or an evaluation of a pricing
change—is the quality of the information available.
Some of the newer software packages, however, are #
helping to improve the quality and can provide the in­
formation needed. They range from very high-powered,
sophisticated (and expensive) packages for the larger
money center banks to (relatively inexpensive) micro­
computer models appropriate for smaller community f)

“Iowa’sNatural Heritage”continues to
break records and has become an Iowa
best seller. The Iowa Natural Heritage
Foundation, with the assistance of
the Iowa Bankers Associ­
ation, is inviting member
banks to make this beau­
tifully illustrated vo l­
ume available to their
l-jlfc A
Sunrise over beautiful Pine Lake State
Park from page 74, “Iowa’s Natural

For further information about this book, or its
companion calendar for 1985 please contact
the Iowa Natural Heritage Foundation, Insur­
ance Exchange Building, Des Moines,
Iowa 50309.
Federal Reserve Bank of St. Louis


Iowa News

Dr. Sung Won Sohn Looks at 1984
T A T IN G th at he is “ bullish for
the lon g term , bu t I see p ro b ­
lem s for the short term ,” n oted
econ om ist Dr. S ung W on Sohn told
a gath erin g o f bu sin ess execu tives
last m on th th at “ h ow w e get
th rou gh our short-term p roblem s to
the lon g-term gains is w hat will
separate the m en from the b oy s. Dr.
Su n g is senior v ice president and
ch ief econ om ist o f N orw est B ank
M inneapolis, N .A . D u rin g his visit
to D es M oin es he addressed sta ff
m em bers o f N orw est B ank D es
M oines, N .A ., a jo in t luncheon
m eetin g o f the D es M oin es rota ry
Club and C ham ber o f C om m erce,
tw o oth er bu sin ess m eetin gs and
had tw o local television interview s.
H e said any econ om ic foreca st for
the n ext year depends on interest
rates and k n ow in g w hat th ey will
do. “ W h a t w ill happen to them
th rou gh 1984 and 1 9 8 5 ?“ he asked,
and answ ered the rh etorical qu es­
tion b y sta tin g flatly, “ T h e y ’re g o ­
in g higher. U ncle Sam will be b o r ­
row in g huge sum s o f m oney. B u t, in
the short-term , I ex p ect rates to
drop from their present 11% to 10% ,
then head b a ck u p .”
H e likened the present period g o ­
in g in to 1984 to 1976-77. “ W e g o t in
trou ble later,” he recalled, “ bu t n ot
then. I feel 1984, thou gh , will be like
1976-77.“ H e then listed four m a jor
1. International d eb t o f $600
billion. 2. The oil situation. 3. The
dollar situation. 4. The national debt
and current deficits.
H e recou n ted his v isit o f a year
a g o to S ou th A m erica, recalling that
u n em ploym en t there w as then 30%
and high inflation. “ N o w ” he stated,
“ the u n em ploym en t rate is 35%
and in flation in A rg en tin a alone is
4 0 0 % ! It co s ts th em $300 m illion a
year additional in interest alone. If
South A m erica goes b a n k ru p t,” he
warned, “ tw o-th irds o f the capital o f
m ajor center banks in the U nited
S tates and other parts o f the w orld
w ou ld be w iped o u t—it w ou ld cause
a w orld-w ide depression. Som e p e o ­
ple tell th ose cou n tries to tell the
U .S. and other nation s to g et lost.
B u t th a t’ s n ot a g o o d answ er
becau se it cu ts them off. S o w h a t’s
rea listic?”
Dr. Su n g resp on ded w ith these
points: 1. W e m u st su p port them in­
to recovery. T h e y ’re all interested in


Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

w h a t’s g o in g on in the U n ited States
—th ey look to u s— so our ow n e co ­
n om ic recovery is vital. 2. These
cou n tries m u st have their exp orts
su p ported so th ey can have m oney.
3. T h ey m u st g o th rou gh au sterity
and th a t’s hard.
“ T h rou gh all o f this, we m ust
recogn ize their p ligh t and that our
assistan ce to th em will take tim e—
p rob a b ly the rest o f this d eca d e.”

Dr. Sung Won Sohn, sr. v.p. and chief econ.
for Norwest Bank Minneapolis, N.A., visits
with E.G. Bud Precht, chmn. & ceo of
Norwest Bank Des Moines, N.A., during his
visit to Des Moines last month to address
staff members at the bank and several local
business groups.
S peaking o f the oil situation, Dr.
S ung said a “ C atch 2 2 ” situation
prevails. The differen ce betw een
glu t and sh ortage in oil, he stated, is
on ly 5% , and w ith oil con su m p tion
in the free w orld at 40 m illion barrels
a day that 5% is o n ly 2 m illion bar­
rels a day. A sh u td ow n o f the strate­
g ic Strait betw een Iraq and Iran
w ou ld cu t o ff 8 m illion barrels a
d a y — “ d a m a g in g ,” D r. Su n g stated.
“ W h a t w e need to d a y in oil is
stab ility, n ot glu t or sh o rta g e .”
“ T he dollar has appreciated 40%
since 1 980,” he observed , “ and has
risen 75% again st the Franc alone.
G erm ans b u y in g A m erican corn
m u st p a y 27% m ore, and w ith the
higher price o f corn, it really co sts
the G erm ans 50% to 6 0 % m o re .” H e
n oted th at one-third o f Iow a jo b s are
tied to exp orts, w hich accou n t for
20% o f U .S. econ om y. F oreigners
w an tin g to b u y A m erica n prod u cts,
stock s and b on d s m ake the dollar
even stronger. H e hopes the dollar
w ill depreciate som e this year to

stim ulate exports, since our balance
o f trade d eficien cy this year will be
$60 m illion. H e added that Fed
Chairm an Pual V o lck e r’ s anti-infla­
tion steps have been good .
Dr. Su n g listed the national debt
portion per fam ily at $24,000 each,
plus interest per year o f $2,600. H e
feels the prim e will stay at 11% or
higher in the lo n g term due to this
huge deficit financing.
Dr. S u n g said these were his co n ­
cerns and th ey cou ld lim it or abort
an econ om ic recovery, alth ou gh he
d ou b ts the latter as a result. H e also
stated we w o n ’t g o back to double
digit in flation “ becau se o f ch an ges
in our stru ctu res.”
“ W e will n ot have a robu st
econ om ic g ro w th in the n ext several
years, bu t slow g ro w th ,” he stated.
“ F or busin essm en it m eans you
ca n ’t rely on e x p o rt m arkets to give
y o u m ore, so y ou need a larger
m arket share, bu t y o u m u st look
b e y o n d you r m arkets to e x p o rts ,”
and he esp ou sed the value o f sm all
busin esses bein g in volv ed in e x p or­
Dr. Su n g stated further “ it was
n ot lon g a g o w hen it w as popu lar to
leverage g ro w th —n ow it will not
p a y .” H is last recom m en dation to
busin essm en w as to raise m on ey
now in eq u ity m arkets and sh ort­
term bon ds, bu t n ot long-term
bon ds.


A B A C O N V E N T IO N . . .
(C ontinued from page 16)


believes the F ed is a ctin g w rong, he
feels the IM F should be closed out
and allow ed to disappear, foreign nation s should no lon ger be su p ported
th rou gh an IM F or oth er w orld
bank, and the econ om ic reco v e ry is
doom ed.
A n y banker w ish in g to g et the
com p lete flavor o f the general ses­
sion speakers and to ben efit from
the dozen s o f ou tsta n d in g special
session s th at w ere held in several
con v en tion h otels th rou gh ou t the
five d a ys o f the con ven tion , should
co n ta ct A B A at W a sh in gton , D.C.,
headquarters and requ est tapes o f
sp ecific even ts, or order a com p lete
set o f con v en tion tapes. T he broad
range o f really im p ortan t and ben efi­
cial sem inars w as fa n ta stic and
co u ld n ’t be a b sorb ed b y one bank
represen tative alone.
N ext y e a r’s con v en tion will be in
N ew Y o rk C ity in O ctober, 1984. □




















:( lì;


k )



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P.O. Box 2097
Waterloo, Iowa 50704


Iowa News

LEFT—Frederick Dawn, (center) reg. sr. v.p., La Jolla Bk. & Tr. Co., La Jolla, Calif., conducts the first Nationet point-of-sale purchase at the ®
West Des Moines Hy-Vee Food Store. Looking on (from left to right) are: Dwight Vredenburg, chmn., pres. & c.e.o., Hy-Vee Food Stores,
Inc., James Martin, chmn. of Nationet & exec. dir. of TYME Corp.; Kenneth Myers, pres. & c.e.o., United Central Bancshares, Inc., Des
Moines, la., and Dale Dooley, pres., ITS, Inc. RIGHT— Participating in the first Nationet cash-withdrawal transaction at the City National
Bank, Beverly Hills, Calif., were: Bram Goldsmith, chmn. & c.e.o., City Natl. Bk.; ABA President C. Robert Brenton, pres., Brenton Bks. Inc.,
Des Moines, la.; Paul Kramme, pres., Nationet, and Hal Wolfe, Sr., pres. & chmn., Capital Savings Bk., Olympia, Wash.

Transactions Launch EFT Network
T 11:00 A .M . (CST) on O ctob er
13, C. R ob ert B renton, presi­
dent o f Iow a-ba sed B ren ton B anks,
Inc., m ade a cash-w ithdraw al tran s­
action from an on prem ise au tom a t­
ed teller m achine (A T M ) loca ted at
C ity N ational B an k in B ev erly H ills,
California. Sim ultaneously, F rede­
rick H . D aw n, region al senior v ice
presiden t o f La Jolla B an k and
T ru st C om pa n y o f La Jolla, C alifor­
nia, w as u sin g a poin t-of-sale (POS)
term inal in a D es M oines, Iow a, H yV ee g rocery store to m ake his p u rch ­
ase. W h a t m ade b oth tran saction s
unique is th at the bankers were u s­
in g electron ic fu n ds transfer (E FT)
cards from their resp ective hom e­
tow n banks, and thus were co n d u ct­
in g the first live E F T tran saction s
to launch N ationet, a n ationw ide
E F T netw ork.
N a tionet is cu rren tly com p rised
o f 12 shared m u ltistate E F T “ sw it­
ch e s ” or n etw ork s and will exten d
certain E F T p rivileges such as a u to­
m ated cash w ithdraw al at m ore than
4,600 term inals in 26 states to the
com b in ed 20 m illion cu stom ers o f
abou t 3,300 financial in stitu tion s.
A m o n g the ex istin g or p rop osed
national E F T n etw orks, N ation et is
the on ly one to su p port b oth A T M s
and P O S term inals. T he latter is a
direct-debit p a ym en t delivery s y s­
tem th at w as recen tly d escribed in a
F o rb es m agazine article on N ationet
m em ber IT S , Inc. as “ the ban k in g
sy stem o f to m o rro w .”
N a tionet P residen t Paul K ram m e
poin ts ou t that the sharing o f E F T
sy stem s differs n ota b ly from other


Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

e x istin g or p ro p o se d national n et­
w orks. S ign ifican tly, m em bership in
N ation et is lim ited to region al funds
transfer netw orks, ow n ed or co n ­
trolled b y an insured financial de­
p o s ito ry in stitu tion , th at are shar­
in g or intend to share the term inals
o f their on-line sy stem s w ith other fi­
nancial in stitu tio n s. “ N a tio n e t’ s
great strength, w e feel, is that its
m em bersh ip has alw ays been co m ­
m itted to the sharing o f E F T facili­
tie s ,” M r. K ram m e stated.
The n etw ork s th at com p rise N a­
tion et m ay decide for th em selves the
ex ten t o f E F T services to be ex ten d ­
ed to each o th e r’s cu stom ers. The
services that m ay be offered include
A T M cash-w ithdraw al from ch eck ­
in g and savin gs a ccou n ts; transfers
a m on g ch eck in g and savin gs a c­
cou n ts; credit card cash advances,
and balance inquiries.
N a tio n e t’ s current m em ber n et­
w orks, and the states in w hich there
are financial in stitu tio n s/E F T term i­
nals th at th ey represent, are: E le c­
tron ic Funds 111., Inc. (Illinois); The
E x ch a n g e (W a sh in gton , O regon ,
Idaho and B ritish C olum bia); F irst
F in a n c ia l M a n a g e m e n t C o rp .
(G eorgia, Florida, A labam a); In ­
stan t Teller (California, A rizona,
N evada, O regon, W a sh in gton and
A laska); IT S (Iow a, S ou th D ak ota,
N ebraska); M a g ic Line (M ichigan);
M etroT eller S ystem s, Inc. (New
Y ork , M arylan d , R h o d e Island,
W e st V irginia, Florida, T exas, M ich ­
igan); The Treasurer, (N ew Jersey,
P en n sylvan ia, D elaw are); T Y M E
(W is c o n s in , M ic h ig a n ); E u re k a

Federal S avin gs & L oan (California);
M on eycard o f Kansas, Inc. (Kansas),
and N E T S , Inc. (Nebraska).

ITS, Inc. Rebates $85,000
IT S , Inc. has an nounced a tran s­
action fee rebate tota llin g $85,000
for all IT S pa rticip a tin g financial in- ^
stitu tion s.
T his rebate is p ossib le du rin g a
tim e w hen IT S , Inc. is exp a n d in g its
services as well as m ak in g sizable
capital im provem en ts, a ccord in g to £
D ale D o o le y IT S president. D u ring
the p a st year, IT S , Inc. has under­
taken studies o f several E F T p ro ­
je c ts and has w itn essed increased
tran saction volum e, term inal loca- g ,
tions, and p articipan ts. IT S , Inc. is
m o v in g in a direction to m eet the
rapidly g ro w in g needs o f the E F T
com m u n ity n ow and for the future.
This rebate, w hich w as first es- 0
crow ed in February, 1983, repre­
sents an e ffe ctiv e price red u ction o f
tw o cen ts per tran saction . Earlier, in
N ovem b er 1982, IT S , Inc. in stitu ted
a price redu ction o f tw o cen ts per 0
t r a n s a c tio n . W ith in th e s e few
m o n th s, IT S , In c. p a rticip a n ts
received a tota l price redu ction o f
fou r cen ts per transaction.

New Officer at Hills Bank
Jana R. W essels has jo in e d the
H ills B ank and T ru st C om pany,
H ills, as an assistan t tru st officer. 0
M s. W essels received her under­
gradu ate and law degrees from the
U n iversity o f Iow a. She is an at­
torn ey and has been the ch ief trust
exam iner w ith the Iow a D epartm en t 0
o f B anking.


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Northwestern Banker, November, 1983

declared on the co m p a n y ’ s $9.50 £
series a cum u lative preferred stock ,
payable O ctob er 15, 1983, on the
60,000 o u tsta n d in g shares to stock
o f record at the close o f business on
O ctob er 7, 1983.
* * *
V alley N ational B ank recen tly an­
n ou n ced the election o f Watson
Powell, III and George C. Carpen­
ter, III to the b a n k ’ s board o f direc- ®

B ankers T ru st C om pa n y recen tly
an nounced the follow in g prom otion s
and additions:
Mike L. Feen­
ey has jo in e d the
s t a f f a s v ic e
p r e s id e n t , a s ­
s ig n e d to th e
com m ercial b u si­
n ess d e v e lo p ­
m ent group. H e
w ill be rep ortin g
d irectly to Larry
Frowick, senior
v ic e p resid en t, and his repon sibilities include agriculture loan
p o rtfolio m anagem ent and d ev elop ­
m ent o f com m ercial ban k in g ac­
Richard H. McGuire has been p ro­
m oted to assistan t v ice president.
H e cam e to B ankers T ru st in O c­
tober, 1982, as a funds m anagem ent
officer. P reviou s experience includes
three years at S oo Line R ailroad
w here he served as assistan t to the
execu tive v ice president.
Paul A . Erickson has been nam ed
o p e r a tio n s o ffic e r . H e jo in e d
B ankers T ru st in O ctober, 1978, in
the au tom ated cu stom er service
area. Since A pril, 1982, he has
served as research supervisor.
John B. Willmore has been p ro­
m oted to a ccou n tin g officer. H a v in g
jo in e d B ankers T ru st in M arch,
1982, M r. W illm ore is currently
h oldin g the p osition o f a ccou n tin g
m anager. H e also has served as an
officer w ith F irst State B ank in
R o ck fo rd and as a bank exam iner for
the State o f Iow a.

Deanne Winkey has been ap­
poin ted con troller and internal con ­

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

tro l o ffic e r at
P la z a
S ta te
Bank, an nounc­
ed John R. Harmeyer, p r e s i­
dent. M s. W in k ­
ey is a m em ber
b oth
th e
A m erican In sti­
tu te and Iow a
S ociety o f C P A s.
In a d d it io n ,
Joseph S. Brick, a ttorn ey and senior
partner w ith B rick, Seck in gton ,
B ow ers, Sw artz and G en try, P.C.;
David A . Hoak, d ivision general
m anager o f St. R egis Paper C om ­
pany, and Steven R. Prewitt, presi­
dent o f R .S. P rew itt Co., B rokerage,
were elected to the board o f d irec­
B ren ton B anks, Inc. recen tly an­
n ou n ced th at its board o f d irectors
has declared a 3-for-2 sto ck split ef­
fected in the form o f a sto ck d iv i­
dend to shareholders o f record as o f
N ovem b er 9, 1983, p ayable on
N ovem b er 30, 1983. In m ak ing the
announcem ent, Chairm an W illiam
H. B ren ton said tota l shares o u t­
stan d in g will increase from 1,599,
255 to a p p roxim a tely 2,398,882,
w ith cash bein g paid for fraction al
shares. T he shares will be held b y
abou t 1,150 shareholders.
A regular qu arterly cash divid en d
o f $0,235 (231/2<t) per share w as also
declared, payable on O ctob er 28,
1983, to sto ck o f record at the close
o f bu sin ess on O ctob er 18, 1983
prior to the sto ck split. T his m ost
recen tly declared divid en d will b rin g
1983 tota l p a ym en ts to $0.94 (94<t).
A regular qu arterly d ivid en d w as



M r. Pow ell is presiden t and a —
m em ber o f the b oa rd o f A m erican ^
R epu blic In surance C om pany. M r.
C arpenter is v ice president and
General M anager o f W H O B ro a d ­
ca stin g C om pany.



Ronald G. Andersen has been
elected ex ecu tiv e v ice presiden t and
a director o f H aw k eye B ank & T rust
and Ronald C. Cibolski has been •
nam ed v ice president, com m ercial



P reviou sly senior v ice president ^
in com m ercia l lo a n ’s, M r. A n dersen
jo in e d the b a n k ’ s instalm ent loan
departm ent in 1968 and in 1978 w as
nam ed v ice president. H e is a
graduate o f the Iow a S ch ool o f ^
B an k in g as well as the N ational
C om m ercial L en din g School.
M r. C ibolski brin gs eigh t years as
a senior loan o ffice r w ith the Sm all
B u sin ess A d m in istra tion to his new ^
position . P rior to th at he w ork ed for
the K an sas State B an k in g D epart­
m ent as a bank exam iner.



Richard J. Noyce and Robert H.



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Federal Reserve Bank of St. Louis

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If you ’d like more
information about how
Personalized Discount
Brokerage Services can
work for you, contact a
UCB Correspondent
Banker at




Northwestern Banker, November, 1983


Iowa News
su ltin g in a 5% increase in the cash
dividend. T his is in add ition to a 9%
increase in the cash divid en d in Ja n ­
uary o f this year.
* * *



Clark, Jr., have been elected to the
b oa rd o f F irst N ational B ank o f
W e st D es M oines.
M r. N oy ce is senior v ice president
and secretary o f H olm es, M u rp h y &
A sso cia tes, Inc. M r. Clark serves as
director o f Planned G iv in g for
D rake U niversity.
* * *
D irectors o f H aw k eye B ancorp ora tion declared a 5% com m on
stock d ivid en d at their regular
quarterly m eeting. The stock d iv id ­
end will be paid D ecem ber 10, 1983,
to stock h old ers o f record N ovem b er
1. A t the sam e tim e directors v o te d
to increase the y early cash divid en d
p a y o u t b y m aintaining the quarterly
cash d ivid en d rate o f 25<t per share
on the addition al shares issued, re­

David N . Walthall, president o f
H aw keye-C apital B an k & T rust, has
announced tw o im portan t changes
in the b a n k ’ s officer staff. Phyllis
Baur has been a pp ointed com m er­
cial loan o ffice r and Patricia H ut­
chins has been nam ed corp orate


the b a n k ’s personnel o fficer in addi- f
tion to her new duties.

* *

Terrence J. Montgomery has been
a pp oin ted presiden t o f H aw k eye In- ^
su ran ce
S erw
vices, a su bsid­
iary o f H aw k eye
B an corporation .
A 1967 gradu ­
ate o f the U ni­
v e rsity o f Iow a,
M r. M o n t g o m ­
ery m o st recen t­
ly w as president
o f K ir k e -V a n
O r s d e l I n s u r - T.J. MONTGOMERY
ance Services. H e has had 16 years
o f ou tsta n d in g insurance sales and
m anagem ent experience first w ith ^
Joh n H a n cock Insurance and later
w ith A m erican R ep u blic Insurance
where he w as v ice president in na­
tional sales.


M s. B aur has had exten sive loan
departm ent experience du rin g the
six yea rs she has w ork ed for
H aw keye-C apital.
M s. H u tch in s has been w ith the
bank 24 years and will continue as

Committed to
making your
bank stand
apart from the

NABW North Central
Group Elects Officers
T he N orth Central Iow a G roup
N a tio n a l A s s o c ia t i o n o f B a n k
W om en m et in Septem ber at the
R ed F o x Inn in W averly. M arie C.
W ilson , d irector o f edu cation and
hum an resou rces fo r the Iow a
B ankers A sso cia tio n , m oderated a
panel p rogra m en titled “ Im p a ctin g
P u blic P o lic y .” P anelists included:
R. S co tt Fetner, president, The N a­
tional B ank o f W a terloo; Joh n E.
M cln te e , Iow a State R epresen tative
D istrict #26, and W es E hrecke,
g overn m en t relations and m arket­
in g d irector for the I B A .
N ew o fficers for the year are:
President C arol J. Pierce, tru st o f­
ficer, T he N ational B ank o f W a ter­
loo; V ice P resident D iane K upfers c h m id t, p e r s o n n e l d ir e c to r ,
W a terloo S avin gs Bank; Secretary
R u th A n n U etz, assistan t v ice presi­
dent, S ecu rity B ank & T ru st o f
Charles C ity, and T reasurer C arolyn
W eber, in stalm en t loan officer, First
N ational B ank o f W e st U nion.

Elected in Stanton
S ecu rity State Bank, Stanton,
recen tly annou n ced the election o f ^
D ale F. Lindner, a farm owneroperator, to the b a n k ’ s b oa rd o f
In addition, A lv in F. Peterson,
b a n k v ic e p re sid e n t, has been q
elected to serve as chairm an.

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

Iowa News


^ Named in Hampton and Elma
H elen S aylor has been nam ed
chairm an o f F irst N ational B ank in
H am pton . She su cceeds her late hus­
ban d A l M . Saylor, w h o died in Sep0 tem ber.
R o g er V . D ou gh an con tin ues as
presid en t and ch ief ex ecu tiv e officer.
In addition, M r. D ou gh an has been
nam ed chairm an o f P eoples S avin gs
• B an k in E lm a, to su cceed M r. S a y ­
lor. H elen Saylor w as elected v ice
chairm an in E lm a and H ow ard L.
P oitevin con tin ues as presid en t and
ch ief ex ecu tiv e officer o f th at bank.

Sumner Bank Completes
Remodeling Project
T h e F irst N a tion a l B an k o f
Sum ner recen tly com p leted rem odel­
in g on the b a n k ’s facilities, an n ou n c­
ed B o b A rth au d, president.
In k eepin g w ith local heritage,
tradition al d ecor w as used th rou g h ­
out. A 20x54 add ition p rov id ed
n eeded o ffice space w ith a m eetin g
ro o m finished in the low er level.
O ther interior chan ges allow ed for
a five-station teller counter, three
sem i-private person al ban k in g desks
and eigh t p riva te offices.
O ffice con cep ts, L td., o f W a ter­
loo, w as in ch arge o f the turnkey
p ro je ct. L oca l con tra ctors and m er­
ch an ts w ere utilized.

Chris Pappas Offers
0 Bank Consulting Services
C hris P a p p a s a n n ou n ced last
m on th the form ation o f P appas &
A ss o cia te s for financial and m an­
agem ent con su lt­
ing. M r. P appas
has 26 years o f
experien ce in the
fin a n c ia l b u s i­
M r. P a p p a s
said his firm will
specialize in a g ­
r ic u l t u r a l a n d
com m ercia l cred ­
it w ith em phasis
on p rob lem loans, such as classified,
w ork -ou t and b a n k ru p tcy loans;

For Correspondent Bank
services, there’s a big
advantage to working with
Valley Bank’s Professional
In fact, there
are two.
These two professionals make up our Correspondent Bank and
Money Desk Departments. We’re not the biggest in Iowa but we
think you’ll agree our service is the best.

Mark Christen
Vice President and Head
of our Correspondent
Bank Division
Mark Christen is Vice Presi­
dent in charge of the Corre­
spondent Bank Division. He’s
responsible for helping you
with Overlines, Transit Ser­
vices, and Investments.

Dennis Hagedorn
Vice President and
Money Desk Manager
Dennis Hagedorn manages
Valley Bank’s Money Desk.
He’s the one to count on to
help with Federal Funds, Cer­
tificates of Deposit, Safekeep­
ing, Securities, and Wire

Mark and Dennis make a good team. Both are dedicated bankers
They’re always ready to give you their undivided attention, regard­
less of how small or large your request. And what’s more, they
consider it a privilege to work with you.

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The Valley Bank

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Discover the Valley advantages.
Call TOLL FREE (800) 622-7262 (Iowa, only).
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1983


Iowa News

M ABSCO . . .
(C ontinued from page 19)
am ined for desirability and feasibility b y specially
selected task grou p s w hich then b ecom e the initial
board o f a new su bsid ia ry if a p ro je ct is a p p roved and
im plem ented.
The M A B S C O com pan ies have operated for the
m ost part w ith volu n teer or con su ltin g assistance. The
com pan ies have on ly three fulltim e em ployees.

Special VIBES Report
A R L Y enrollm ents in V id eo B ank E d u cation
Service (V IB E S ), the rental v id eota p e p ro ­
gram bein g offered b y M A B S C O , is an indication
that the service is bein g view ed as an affordable
effective supplem ent to b a n k s’ train in g needs, a c­
cord in g to R ow lan d M cC lellan, president o f
M A B S C O V id eo Services (M V S).
O ver 100 banks in the 12-state M A B S C O re­
g ion had signed up for V I B E S in the first seven
weeks since m ark etin g e fforts g o t u nderw ay in
m id -A u gu st. T h at figure w as ahead o f M V S p ro ­
jection s, said M r. M cC lellan, w h o is also presi­
dent o f The B an k o f W iscon sin in Janesville.
B anks in the M A B S C O region can enroll in
V I B E S for $200, p erm ittin g them a ccess to over
30 v id eota p e train in g p rogram s cu rren tly avail­
able for rental. E n rolled banks then rent tapes at
their con ven ien ce for in-house training, retu rn in g


asset/liability m anagem ent, and c o l­
lection problem s.
F ollow in g his gradu ation from
Coe C ollege in 1957, M r. P appas
began w ork in g for the Federal
R eserve S ystem , risin g to senior
bank exam iner and tru st exam iner.
A fte r 12 years o f service w ith the
Fed, he jo in e d B ankers T ru st Com -

Ottumwa Banker Retires
After 46-Year Career
L eonard A . D avid son , senior v ice
president in the com m ercial loan dep a rtm en t
U nion B ank &
T ru st Co., O t­
tu m w a, retired
O ctob er 11, fo l­
low in g a 46-year
career w ith U n­
ion Bank. M r.
D a v id son start­
ed N ovem b er 17,
1937, and has
been in volv ed in
alm ost every departm ent, in clu d in g
book k eepin g, tru st, safe deposit,
com m ercial teller, savin gs teller and
alm ost 38 years in the instalm ent
loan departm ent.

Northwestern Banker, November, 1983
Federal Reserve Bank of St. Louis

The M A B S C O con cep t rem ains in its infan cy, bu t it ^
has already firm ly establish ed the a b ility o f num erous
and diverse state bankers a ssociation s to w ork collec­
tively for the ben efit o f the ban k in g industry. The in­
itial su ccess o f M A B S C O has p rom p ted state associa ­
tion s in other parts o f the n ation to in vestiga te the £
feasibility o f organ izin g sim ilar regional grou ps. In ad­
dition, num erous states have expressed an interest in
p aticip a tin g in M A B S C O and its su bsidiary enter­
th em to M V S after th ey are show n. R en tal fees
for m o st o f the V IB E S tapes are $35 for one
w eek ’s use.
M r. M cC lellan said enrolled banks have al­
ready begu n to rent tapes from the V I B E S d istri­
b u tion center in A m es, la. R ental a ctiv ity began
in Septem ber, and orders already have been b o o k ­
ed b y M V S for m ore than 75 future rentals.
“ W e ’re v ery pleased w ith the respon se so fa r,’ ’
M r. M cC lellan said. “ Our o b je ctiv e in offerin g
V I B E S w as to p rov id e a low -cost, high -qu ality al­
ternative to supplem ent the train in g capabilities
o f our m em ber banks, and the respon se w e ’ve
been g e ttin g w ou ld seem to in dicate th at it is
fulfillin g th at o b je c tiv e .’ ’
H e explained that n egotia tion s are bein g co m ­
pleted n ow to add m ore v id eota p e titles to the
M V S in ven tory, in order to m eet the training
needs o f banks in several new areas. Tapes cu r­
rently address cu stom er relations, basic teller
skills, o fficer calls and secu rity training.

pan y o f D es M oin es in 1969 as a vice
president, a d va n cin g to senior vice
president in 1975 and servin g the
bank as senior len din g officer. H e
resign ed from B ankers T ru st in
1981 to jo in Farrar & A sso cia te s,
then a year later jo in e d The State
Central B ank in K eok u k in O ctober,
1982, as ex ecu tiv e v ice president.
H e resign ed that p o sitio n in June o f
this year to return to D es M oin es to
initiate form ation o f his ow n co n ­
su ltin g firm.
M r. P appas has atten d ed the ex-

Acorn Printing ................................................................26
Banclease, Inc., Omaha ................................................. 59
Bankers Trust Company, Des Moines.............................60
Banks of Iowa Computer Services, Inc.............................63
Barclays American/Business C re d it.............................. 24
Central States of Omaha................................................. 25
Chase Manhattan Bank...................................................21
Commercial National Bank, Peoria................................ 30
Curtis Hotel, Minneapolis............................................... 26
Drovers Bank of Chicago........................................... 22-23
F & M Marquette National Bank, Minneapolis............46-47
First National Bank, Chicago......................................... 3
First National Bank, Lincoln........................................... 57
First National Bank, Minneapolis.................................. 8-9
First National Bank, Omaha........................................... 53
First National Bank, Saint Paul.................................. 42-43
Gross, Kirk Co., W aterloo............................................... 67

am ining and tru st sch ools co n ­
d u cted b y the B oa rd o f G overn ors, H
and later w as a graduate from the
Io w a B a n k e rs A s s o c ia t io n A g
C redit S ch ool at Iow a State U n iver­
sity in A m es. H e w as one o f the
founders o f the R ob ert M orris ( I
A ss o cia te s M issou ri V alley Chapter,
servin g the C hapter as a director for
10 years and as presiden t one term.
P appas & A ss o cia te s will be head­
quartered at 2521 P leasant in W e st ®
D e s M o in e s , la . 5 0 2 6 5 (5 1 5 225-1625).
Innerline— B A I................................................................12
Insureco Insurance Agen cy...................................................10(|£
Iowa Bankers Insurance & Services, Inc.......................... 69
Iowa Natural Heritage Foundation ................................ 65
Kooker, E.F. & Associates............................................... 74
Manufacturers HanoverTrust....................................38-39
Marine Midland Bank of New York.................................. 11
Merchants National Bank, Cedar R apids...................... 2

National Bank of Commerce, Linco ln....................................55
Northern Trust Company, Chicago ............................... 7
Northwestern Bell Telephone Co.................................... 5
Norwest Bank Midland, Minneapolis.............................. 37
Norwest Bank Omaha.....................................................50
Norwest Business Credit/Leasing.................................. 34
Norwest Leasing............................................................ 76
Office Concepts, W aterloo............................................. 72
Packers National Bank, Omaha......................................52
Rocky Mountain Bank Note ........................................... 75
Student Loan Marketing Assn......................................... 27
United Central Bank, Des Moines, N.A.............................71
U.S. Life Credit L ife ........................................................ 33
Valley National Bank, Des Moines......................................... 73^
Van Wagenen, G.D. Co., Minneapolis ............................ 29


H ow m uch rejection can you take?
Everytime your scanner rejects
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And most MICR rejects are the
result of not enough iron oxide con­
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broken type face, or the check is
cut incorrectly.
Any of these things can and do
cause rejections.

IBM is a registered trademark of International Business Machines.
e 1983 Rocky Mountain Bank Note
Federal Reserve Bank of St. Louis

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mm ^flv
Federal Reserve Bank of St. Louis