Full text of The Northwestern Banker : November 1984, 91st Year, No. 1454

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Federal Reserve Bank of St. Louis

Dick, Lynn or Doug could help make 1984
a better year for your bank.
Merchants National Bank would like to introduce you to
three of its newest correspondent bankers. Any one of them
could help your bank prosper in '84 by helping you offer
your customers a wider range of services.
Dick Retz has broad experience in agricultural
financing. A graduate of Iowa State University with a degree
in Farm Operation, he's been a dairy farmer, raised hogs and
crops and has several year's experience in ag lending, farm
management and decision counseling.
Operational services is Lynn Whiteman's specialty. She is
ready to assist you with federal fund investments, cash
management techniques, check-clearing services and
operational innovations. Lynn, a capable commercial credit
analyst, w ill be happy to explain how our computerized

analysis programs can increase your bank's profitability.
Doug Keiper was born and raised on his family's dairy
farm in Atkins, Iowa. And, although he's been in banking f])>
for the past 15 years, he's still got one foot on the farm. In
addition to being an MNB correspondent banker, he also
farms 160 acres in Benton County which gives him a keener
understanding of your customers' needs in the area of
agricultural financing.
0)
At MNB, we're dedicated to bringing together the
personnel, resources and services you want in a
correspondent bank. That's MNB's commitment to
productivity. And we're ready to put it to work for you. To
discover how MNB can help your bank grow in 1984, call®
319/398-4320 or toll-free, 1-800-332-5991.

Merchants National Bank


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Federal Reserve Bank of St. Louis

Cedar Rapids, Iowa 52401

Member F.D.I.C.

is i

A BANKS OF IOWA BANK

3

Loan officers: Follow this logic
to the only loan origination
& document printing micro software
you would have w ritten yourself.
Wouldn’t you design software that
insisted that your loan policies be
enforced? A software program that
is so effective that it’s like having
your loan committee watch over
every loan as it’s being prepared.
Naturally you’d want a Loan Origination
and Document Printing program that
made all the computations you need to
m ake... and made them quickly One
that prints out all of your loan process­
ing forms and allows you to keep track
of each loan at every stage during the
loan process.
You’d also want a Loan Origination program
that followed the systems that your loan
departm ent uses. One that uses your term s,
your terminology, lets you define your loans
the way you do right now. That way your
operators would feel comfortable with what
they do and see. They’d feel at hom e...
because they would be at home.
You’d w rite a software system that not only
enforces your loan policies and enforces your
loan printing guidelines, but also guides the
operator through the process. Actually tells
the operator when something is incomplete
or not done correctly.
You’d need a system that also “sets up” the
correct screens that need to be worked on
depending on the loan type chosen.
You’d want a Loan Origination system that
works with y ou... not you with it. One that
fits you, your departm ent, your bank.

N aturally y o u ’d a lso build in th e ability
to c h a n g e ... without the need for expensive
programming. You’d like to be able to change
your system quickly and easily... in your
office... to ht changes that you might w a n tin procedures, terminology in marketing
directions, or because of regulations or com­
petitive situations.
Naturally, your Loan Origination program
would be that flexible. In fact, it would be so
flexible, so changeable, so creative that you
could create your own screens... easily,
quickly and completely.
Wouldn’t you in sist on flexib ility that
allows your people to be able to create your
own screens?
And of course, you’d want to have all the
newest ideas, the newest innovations, the
latest improvements all automatically deliv­
ered to you—all the latest enhancem ents to
m eet changes in the banking regulations...
even before you knew they were available or
even needed.
Now, if all that seem s like a logical series of
thoughts, your good thinking will lead you to
one logical conclusion.

Logical Conclusion:
The Origin Loan Origination & Docu­
ment Printing Micro Computer Soft­
ware systems (installment/commercial
loans and mortgage lending) are the
only such programs that do all of the
things you want them to do... just as
they would if you had written them.

Logical Next Step:
Call Darien MicroSystems Inc. Exclusive Distributors of Origin Software
at: 203/655-6830 or write us at: 397 Post Road, P.O. Box 1106, Darien, CT 06820

Darien MicroSystems, Inc
Your single source of financial microcomputer software

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Federal Reserve Bank of St. Louis

N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

4

Continental Stockholders
OK Financial Aid Plan

NOBIfflWESTERN
iS e vM C W
NOVEMBER 1984 • 91st Year • No. 1454
MEMBER OF AUDIT BUREAU OF CIRCULATION
MEMBER BANK MARKETING ASSOCIATION
OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES

ON T H E C O VE R
In top photo, new officers of the American Bankers Association for 1983-84 are
pictured by the N o r t h w e s t e r n B a n k e r camera atop the New York Hilton Hotel with
the New York City midtown Manhattan skyline behind them. From left are: Immed. Past Pres.—C. Robert Brenton; Pres —James G. Cairns, Jr.; Treas.— Harry R.
Mitiguy; Pres.-Elect— Donald T. Senterfitt, and Exec. V.P.—Willis W. Alexander.
Convention report with pictures begins on page 21. Center photo shows Alan R.
Tubbs (left), pres., First Central State Bank, DeWitt, la., with Frank Naylor, Under
Secretary of Agriculture, when Mr. Naylor came to Des Moines for a special meet­
ing with Iowa farm bankers that was not open to the press. Mr. Naylor reviewed
the Administration’s new farm assistance program, announced and reviewed in
earlier issues, giving much greater detail than was available before. He was join­
ed in the day-long conference by Federal Land Bank and other government and
regulatory officials for the closed meeting.
In lower photo are 1984-85 officers of the Nebraska Independent Bankers Asso­
ciation. Left to right, they are: Treas.—Tom Grove; Immed. Past Pres. — Bonnie
Peterson; V.P.— Fred Often; Pres. — Mark Buckley; Secy.— Phil Giltner; 2nd V.P.—
Roy Yaley, and Exec. Dir. — Kurt Yost. Exclusive story and photos are on page 60.
FEA TU R ES

21

C airns nam ed ABA p resident

Willis Alexander announces his retirement

26

A s s e t/lia b ility m an a g em e n t

Part III of a 5-part series for community bankers

30

W h a t’s new

Banks, manufacturers announce services and products

31

C o m m un ity bank survey

CPA firm identifies the challenges ahead

DEPARTMENTS
8
12
18
32
33
35

Calendar
Bank Promotions
Corporate
Illinois
Wisconsin
Minnesota

36
45
46
48
48
49

Twin Cities
South Dakota
North Dakota
Montana
Wyoming
Colorado

53
54
65
72

Nebraska
Omaha
Iowa
Des Moines

NORTHWESTERN BANKER
306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor

Consultant

Ben Haller, Jr.

Steve Burch

Becky McBurney

Malcolm K. Freeland

No. 1454 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. POSTMASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, Iowa 50309.
o r th
w e s te r n B a n k e r, N o v e m b e r, 19 84
Digitized Nfor
FRASER
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Federal Reserve Bank of St. Louis

m

Stockholders of Continental Illi­
nois Corporation, Chicago, approved
on September 26 the financial assis­
tance and restructuring plan ai#
nounced in July by Continental, the
Federal Deposit Insurance Corpora­
tion and other bank regulators, with
71 per cent of the shares outstand­
ing being voted in favor of the pla^P
Of the shares voted at the meeting,
98 per cent were voted in favor of
the plan and 2 per cent against.
More than 30,978,000 shares, m:
76 percent of the 40.3 million ouP
standing shares of common stock,
were voted at the special meeting of
stockholders. A favorable vote of a
majority of all shares of outstanding
Continental Illinois Corporation
common stock was required for
adoption.
John E. Swearingen, chairman of
Continental Illinois Corporation
told stockholders that the plan win
provide additional permanent capi­
tal and other financial assistance to
Continental Illinois National Bank
and Trust Company of Chicago, tlm
principal subsidiary of the corpora­
tion.
“Our challenge going forward is
to reestablish a strong, viable and
credible financial institution th<^
can make a significant contribution
to the growth and well-being of Chi­
cago, our home state of Illinois, the
Midwest and the nation,” said Wil­
liam S. Ogden, chairman of Cont^
nental Bank. “Our first task is to re­
establish and strengthen our credi­
bility in the marketplace. I believe
that process has already started, but
it will take time.”
#
Mr. Ogden said that Continental
must withdraw from activities “that
do not appear to be essential to our
long-range objectives.” He said that
this may mean closing some add#
tional domestic and international of­
fices and reducing non-interest ex­
penses, including reduction of staff.
In commenting on the third quar­
ter, Mr. Ogden said that after the $ •
billion injection of new capital, the
corporation’s equity to total assets
ratio will be about 5.5 per cent and
the primary capital ratio will be
about 6.5 per cent.
#
“After the sale of approximately
$3 billion of loans to the FDIC, our
total loans will be about $26 billion
— about 17 per cent less than 1983
year-end,” he said.
®

We m ake house calls.
The gnomes of Freddie Mac are not only well-versed but also
well-traveled. ■ Indeed, we are always eager to meet
with our customers. And each of our regional offices is
tailored to suit local needs. ■ Whether you want to sell
your mortgages for cash or swap them for PCs, we’re
ready to structure the deal that’s right for you. Just say
when— our bags are packed.
This is not an offer to sell or a solicitation of an offer to buy PCs. PCs are sold only by means of an offering circular. PCs are not guaranteed by the
United States or by any Federal Home Loan Bank and do not constitute debts or obligations of the United States or any Federal Home Loan Bank.
Freddie Mac ■ Marketing Communications ■ 1776 G Street, N. W. ■ P.O. Box 37248 ■ Washington, D.C. 20013-7248
© 1984, FHLMC


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Federal Reserve Bank of St. Louis

THE GNO M ES

Freddie
Mac
________ Federal
________ Home Loan
________ Mortgage
Corporation
O wned by A merica’s Savings Institutions

Deluxe
explains
the difference
between
a printer and
a partner.

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O'

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Federal Reserve Bank of St. Louis

•

Printers may come and go, buta partner can be an asset for years
to come. Deluxe shows you how.
Mostqualified check printers can helpyou solve your printing
«. problems.Deluxehelpsyousolveyourmarketingandoperationsproblems as well, a skill we’ve developed during 67 years of paying persistent,
long-term attention towhatis importanttoourcustomers.
•
Likea real partnerwe know howto helpfinancial institutions
reduce their costs and price their checking programs profitably.
Case in point: Deluxe has developed a data management capa• bility that offers financial institutions several unexpected advantages
and benefits. For example, simplified pricing administration and un­
precedented documentation of profitability for yourchecking program.
• Just as important, we can tailor
a reporting system to fit your
• specific needs,
We know how important
it is to make the most of every
• opportunity to cross-sell your
services, m at’s why we’re dedi­
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knowledge and people skills
they need.
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With a national network of 61 strategically located plants across
America, we can provide consistent, uninterrupted service, whatever
• the need,
Deluxe’s well-qualified sales representatives are paid a salary to
• helpyou. Not a commission to sell you. Isn’t that the kina of commitment
you wantfrom a partner?
To find out more about the Deluxe difference, call toll free: 1-800• 328-9584 and ask for Wayne Hansen, Senior Vice President.

D € L U X € Check Printers, Inc.
The difference between a printer and a partner.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

8
Nebraska:

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. 27-30—BAI Money Transfer Confer­
ence, Hyatt Regency, Chicago, III.
Dec. 9-12—BAI ATM/7 + Conference, Sher­
aton, New Orleans, La.
1985

Feb. 3-6—BAI Productivity Conference,
Westin Bonaventure, Los Angeles.
Feb. 24-27—BAI Bank Security Conference,
Adam’s Mark, Houston, Tex.
Mar. 10-14—ABA Community Bank CEO Ex­
ecutive Development Program, Amfac
Hotel, Minneapolis.
Mar. 26-29—BAI Check Processing Confer­
ence, Dearborn, Mich.
Apr. 14-18—BAI Bank Audit Conference,
Sheraton, Washington, D.C.
Apr. 30-May 3—BAI Accounting & Finance
Conference, Hyatt Regency, San Fran­
cisco.
May 13-17—BAI Bank Tax Conference,
Hyatt Regency, Washington, D.C.
May 26-31 —BMA Essentials of Bank Mar­
keting School, University of Colorado,
Boulder.
May 26-31 —BMA School of Trust and Per­
sonal Financial Services Sales & Mar­
keting, University of Colorado, Boulder.
May 26-June 7—BMA School of Bank Mar­
keting, University of Colorado, Boulder.
June 2-5—BAI Trust/Financia! Products
Conference, Inter-Continental, Boston.
June 23-28—BMA School of Banking Mar­
keting Colloquium, University of Colo­
rado, Boulder.
July 17-12—ABA National Agricultural
Bank Management School, Iowa State
University, Ames.
Oct. 19-23—ABA Annual Convention, New
Orleans.
Nov. 10-13—BMA 70th Annual Convention,
Sheraton-Waikiki, Honolulu, Hawaii.

Deluxe Reports Gains
Deluxe Check Printers, Incorpo­
rated, St. Paul, Minn., reports that
sales for the first nine months of
1984 reached $504,984,525, up 9.1%
from $462,928,042 a year ago. Net
earnings for the period were
$63,620,773 or $2.89 per share, up
14.2% from last year’s $55,694,910
or $2.44 per share.
Sales for the third quarter were
$174,764,787, up 13.1% from
$154,534,626 last year, while net
earnings were $23,656,296 or $1.08
per share, up 18.3% compared to
$20,003,145 or 88<t per share a year
N ofor
r th FRASER
w e s te r n B a n k e r, N o v e m b e r, 1984
Digitized
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Federal Reserve Bank of St. Louis

State Conventions & Schools

J

Colorado:
1985

June 5-8—CBA Annual Convention, Broad­
moor Hotel, Colorado Springs.
Illinois:

Nov. 28-29—IBA Annual Meeting and Bank
Management Conference, St. Louis Mar­
riott.
1985

Feb. 6—IBA Asset/Liability Management
Conference, Holiday Inn East, Springfield.
Feb. 7—IBA Asset/Liability Management
Conference, Drake Hotel, Oakbrook.
Feb. 20-21 —IBA Commercial Credit Confer­
ence, Holiday Inn East, Springfield.
Iowa:
1985

Feb. 12-14—EFT Conference, Des Moines.
Feb. 24-Mar. 2—IBA Commercial Lending
School, Iowa State University, Ames.
Feb. 27-Mar. 1— IBA Mid-Winter Manage­
ment Conference, Keystone, Colorado.
Mar. 3-5—IBA Marketing Conference, Des
Moines.
Mar. 20—IBA Ag Credit Conference, Ames.
Apr. 13-17—IBA Washington D.C. Trip.
May 20-21 —Iowa Young Bankers Con­
ference, Des Moines.
Sept. 22-24—IBA 99th Annual Convention,
Des Moines.
Minnesota:

Dec. 5-6—MBA Advanced Security Workshop,
Sheraton Midway, St. Paul.
1985

Mar. 10-14—MBA/ABA Community Bank Ex­
ecutive Development Program, Hyatt Re­
gency, Minneapolis.
May 7-10—MBA Washington Legislative
Conference, Washington, D.C.
June 10-12—MBA Annual Convention, Am­
fac Hotel, Minneapolis.

Nov. 20-21 —NBA Bank Management C onfer#
enee, Kearney Holiday Inn.
Nov. 20—NBA Legislative Dinner, Kearney
Holiday Inn.
1985

Jan. 15-16—NBA Lending Conference, Kear­
ney Holiday Inn.
0
Feb. 12-13—NBA Personnel Conference,
Kearney Ramada Inn.
Feb. 20-24—NBA Bank President’s Confer­
ence, Rancho Bernardo Resort, San Diego,
Calif.
Mar. 20-21 —NBA Ag Outlook Conference#
Kearney Holiday Inn.
May 8-10—NBA 80th Annual Convention,
Lincoln Cornhusker.
North Dakota:
1985

#

Jan. 28-29—NDBA Chief Executive Officer
Conference, Kirkwood Motor Inn, Bis­
marck.
Jan. 29-30—NDBA Bank Management Conference/Legislative Reception-Dinner,
Kirkwood Motor Inn, Bismarck.
0
Feb. 20-22—Bank of North Dakota MidWinter Break, Bismarck.
Apr. 8-10—NDBA Washington Legislative
Visit, Hyatt, Regency on Capitol Hill.
Apr. 24-26—NABW State Convention, Minot.
May 19-24—NDBA North Dakota School o #
Banking, University of North Dakota,
Grand Forks.
June 10-11 — NDBA Annual Convention,
Holiday Inn, Bismarck.
South Dakota:

^

1985

Jan. 30—SDBA Legislative Reception and
Dinner, Kings Inn, Pierre.
Apr. 3-4—SDBA Ag Credit Conference,
Kings Inn, Pierre.
Apr. 8-11—SDBA/NDBA Annual W ashing#
ton D.C. Legislative Trip.
May 12-14 —SDBA Annual Convention,
Rushmore Plaza Civic Center, Rapid City.
Wisconsin:
1985

fl

June 16-19—WBA Annual Convention, Hyatt
Regency, Milwaukee.
Wyoming:

Dec. 4—WBA Loan Documentation Semi­
nar, Casper.
A

Montana:
1985

1985

June 25-28—MBA Annual Convention, Sun
Valley, Idaho.

June 16-19—WBA Annual Convention, Jackson Lake Lodge, Moran.

ago, according to Eugene R. Olson,
chairman and chief executive officer.

president in the correspondent bank­
ing division at LaSalle National#
Bank in Chicago, has 25 years exper­
ience in such specialized areas as
direct lending, holding company for­
mation and operation, merger and
acquisition financing and financial#
marketing.
Douglas Austin & Associates,
Inc., with offices also in Toledo,
Lansing and Washington, is a con­
sulting corporation for financial in^#
stitutions. Through its 17 years of
consulting experience, the firm has
assisted numerous financial institu­
tions of all types and sizes with un­
usual problems and opportunities. •

John E. MacArthur Joins
Douglas Austin Firm
John E. MacArthur has joined
Douglas Austin & Associates, Inc.
of Toledo, Ohio as consultant and
will be affiliated with its Chicago of­
fice located at Forty East Delaware
Place, Suite 702, Chicago, IL 60611,
Tel: (312) 664-5946. He will primari­
ly be responsible for business devel­
opment and client services in Illi­
nois, Indiana and Kentucky.
Mr. MacArthur, formerly a vice

THE NEW LANDMARK IN
FINANCIAL INSURANCE SERVICES.
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Today, financial institutions can look
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Transamerica Financial Systems and
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We've brought Crown Valley Insurance
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exciting new division. The services of
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round out the capabilities of this group.
Through these acquisitions, Transamerica
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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

Think of us as your Wall Street connection.
MGIC has always been in the forefront
of finding nontraditional sources of capital
for mortgage lenders.
We pioneered the first conventional
mortgage-backed pass-through security
in the 1970’s. Since then, our conduit
subsidiary, Maggie Mae, has issued about
$1 billion in private placements for
major pension funds. Today, we continue
to be the leader in custom-designed
mortgage securities.
Innovation is a key strength of our Capital
Markets Group. Our more than 30 specialists
work closely with lenders and investors
to develop creative approaches to the
structuring of new national loan purchase
programs as well as individual deals.

We
can
help
you
find
m oney
on the Street
Their primary objective is to bring the
right people together, to match needs
and products. They keep informed
through our nationwide secondary market
trading network and continually cultivate
new investor sources. In the last five
years, MGIC has participated in secondary
market loan sales totaling more than
$30 billion.
In addition to our work with non­
traditional investors, we are, of course,
continuing our efforts to help lenders sell
their loans easily and profitably to FNMA,
FHLMC, Residential Funding, and other
traditional investors.

Raising capital for mortgage lending
will continue to be a challenge and a key
to profitability in the years ahead. As a
partner in that process, MGIC pledges the
strength of our people and financial assets
to help you meet that challenge.

MGIC


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Federal Reserve Bank of St. Louis

Working hard to earn your business

12

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Bank Promotions

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ROMOTIONS and other an­
P
nouncements have been made
by the following banks and banking

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Capron, IL
Custom designed to
match architecture.

firms:
Centerre Bancorporation, St.
Louis, Mo.: Daniel L. Huffer has
joined as executive vice president
and chief financial officer, respon­
sible for the control and audit func­
tions of the bank holding company.
Mr. Huffer formerly was executive
vice president of the finance group
of BancOhio National Bank and se­
nior vice president and treasurer of
BancOhio Corporation.

Thornton, IA
Attached display.

D.L. HUFFER

Dresser, Wl
SunSpot™ reflective

Jefferson, IA
Custom market report
display

R.J. TRACY

D

DAKTRONIC S
INC.

N o r th w e s te r n B a n k e r, N o v e m b e r, 1984


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

added to the bank’s staff. They a r ^
Jerry Ingle, vice president; Rodney
D. Craft and Naomi Nightingale, as­
sistant vice presidents, and Phillip
Oliver, facility manager.
Mr. Ingle joined First National a ^
vice president in the agriculture/correspondent banking department.
For the past 15 years he has worked
for Farmers Home Administration,
USD A, in several locations through^
out Missouri.
Mr. Craft will be working in the
loan review department. He joins
the bank from Citizens Commercial
and Savings Bank in Flint, Mich.0
where he served as senior credit
analyst.
Ms. Nightingale who will be serv­
ing in the retail department, pre­
viously served as vice president anc^
manager of the instalment lending
department at United Missouri
Bank. She has worked in the bank­
ing industry since 1964.
Mr. Oliver, who will manage th #
bank’s East Facility on Frederick,
has been in the banking field for sev­
eral years, serving at Commerce
Bank, N. A. and Laurel Bank of Kan­
sas City, both in Kansas City, M o.#

At Centerre Bank in St. Louis,
Robert J. Tracy has been elected
vice president. Mr. Tracy holds a
bachelors degree in accounting and
finance from Saint Louis University
and joined Centerre in 1983 as assis­
National Boulevard Bank of Chi­
tant auditor and manager of the loan cago: Michael C. Keeling was elected
audit division.
senior vice president, operations^
First National Bank, St. Joseph, and Carl A. Jansen, vice president™
Mo.: Four people have recently been commercial lending, announced
bank president and CEO Richard T.
Schroeder.
Prior to joining the bank in 19 8 ^
as vice president, information ser­
vices, Mr. Keeling served as vice
president, American National Bank,
Chicago, where he was responsible
for Tel-A-Data, a wholly owned sufc^
sidiary of American National. He
began his career at American in
1971.
J. INGLE
R.D. CRAFT

Our engineers will custom
design a display to
enhance the architecture
of your building. Color
drawing and quote at no
cost. Call collect or write
today —

DAKTRONICS, INC. Box 128
Brookings, SD 57006
Ph. 605/692-6145
TOLL FREE 800/843-9879
(exc. AK. HI and SD)
TELEX 29-5013 DAKTRONCS BKNG

J

N. NIGHTINGALE

P. OLIVER

United Missouri Bank of Kansa#
City, N.A., Mo.: Rick Boxx has
joined the bank as a commercial
lending and calling officer.
Mr. Boxx is a certified public ac­
countant and was affiliated with tw #
area public accounting firms prior to
joining the bank’s holding company,
United Missouri Bancshares, Inc.,
as an auditor in 1982. He will be
working at the State Line facility. •

•
.
•

_
“

(ty

#

We turn on a dime
so you can turn a larger
profit.

When money is expensive, so is the
time funds are idle. T h a t’s why so
many banks rely on Northern
TVust Bank for profit-enhancing,
correspondent services. Our expertise 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 N orthern TVust
consistently ranks among the top
three cash m anagement providers
in the industry.
The latest in computer tech­
nology assures check collection
and safekeeping th a t’s accurate
and fast. Our Cashline Balance
Reporting System gives you elec-


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Federal Reserve Bank of St. Louis

tronic access to your account for
maximum flexibility. You can get
a fresh update every 15 minutes
if necessary —and move money
within hours rather than days.
Add to our sophisticated
equipment the best in personal
attention and responsiveness, and
you get N orthern TVust’s ideal
combination 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.
And our experienced Bond
D epartm 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.

And a better bottom line for your
bank. For more information,
contact John V. N. McClure,
Vice President, Northern TFust
Bank, 50 South LaSalle Street,
Chicago, Illinois 60675. Telephone
(312) 630-6000. Member F.D.I.C.

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14

Leslie Bains Heads NABW in 1984-85
ESLIE E. Bains, vice president
and division executive at Chase
L
Manhattan Bank, New York, was
elected president of the National As­
sociation of Bank Women at the As­
sociation’s 62nd annual convention
that concluded October 3 in Hono­
lulu, Hawaii. She succeeds Karen
Thomson, senior vice president of
the Midwest Commerce Banking
Company, Elkhart, Ind.
Marybeth Fidler Bernhardt, vice
president and manager of commer­
cial lending for D.C. National Bank,

Digitized
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Federal Reserve Bank of St. Louis

Washington, D.C., was elected vice
president. Phyllis Tyson, vice presi­
dent, National Bank of Georgia Cobb Bank, Mariette, Ga., was
named treasurer, and Karen S. Coldiron, vice president and cashier at
Irwin Union Bank and Trust Com­
pany, Columbus, Ind., was installed
as secretary.
Among the nine elected national
directors were these three respon­
sible for upper midwest and moun­
tain states: Kay Landen, Central
Bank of Denver, Denver, Colo.

(southwestern region); Gail J. Mad- £
son, First National Bank of Sioux
Falls, S.D. (north central region),
and Marilyn K. Wulf, Greenfield
Banking Company, Greenfield, Ind.
(Lake region).
q
Retiring President Thomson an­
nounced that NABW is launching a
national membership recruitment
campaign to increase membership
by 10% in 15 months. Membership, 0
she said, has been opened to women
in all sectors of the financial services
industry as part of the effort to in­
crease membership.
Ruth I. Smith, chairperson of 0
NABW’s Capital Campaign said
more than $1.3 million has been
raised toward a goal of $2.5 million
to support programs of the NABW
Educational Foundation. She said #
160 banks to date had contributed
$512,383 to help fund scholarships
and management training pro­
grams, as well as research on work
force issues in the financial services #
industry. Of that amount, Chase
Bank, Citicorp and Manufacturers
Hanover, all of New York, and Se­
curity Pacific National of Los Ange­
les have contributed $25,000 each. #
NABW members have contri­
buted $757,450 to date, with 40 indi­
viduals who are officers and leaders
of the organization accounting for
$116,825, and the rem ain in g 1
$640,825 coming from local groups
and 5,200 contributing members.
Winners of the 1984 Jean Arnot
Reid Scholarship Program received
a total of $18,000, with the first-1
place, $5,000 scholarship going to
Lois Schaeneman, assistant treasur­
er, Connecticut Bank & Trust Com­
pany, Hartford. Included in fourth
place scholarships of $2,000 each
were Christine A. Neuman, assis­
tant vice president and auditor,
First Wisconsin Bank, Green Bay,
Wis., and Nina E. Woodard, vice
president, First Interstate BankCasper, Casper, Wyo.
Members of NABW also were told
about a new self-marketing tool de­
signed to assist executives seeking (
career advancement or heightened
visibility. Faith Schonfeld, vice
president, Bankers Trust Company,
Chicago, said the kit, “Marketing
Youself...On Paper and in Person,’’,
contains three separate portions:
1. A 96-page handbook on resume
preparation to help an executive
most effectively assemble this cru­
cial self-marketing document.
,
2. A collection of sample resumes

15

highlighted for their special fea- bankers; and the new “energystic”
refinements to all of Florida Soft­
® tures.
ware Services’ banking systems.
3.
A guide to self-presentation
Aside from new system develop­
that includes practical exercises to
develop necessary skills for inter­ ments, the Kirchman Corporate Re­
views, personal interaction and search and Development Institute
® group meetings.
□ monitors the multitude of economic
trends and social issues that con­
stantly impact upon all phases of
Patrick L. Flinn Named to
the
banking industry. Thus, a major
Fill RMA Presidency
concentration of the institute’s re­
# Patrick L. Flinn, executive vice search analysis activities are di­
president, The Citizens & Southern rected at the industry’s future needs
National Bank, Atlanta, was named and the projected demands of both
last month by the Robert Morris As­ consumer and commercial custo­
sociates’ national board to fill the
%>ost of president of the association
for the remainder of the 1984-85 fis­
cal year.
Mr. Flinn was RMA’s first vice
president. He succeeds Glenhall E.
V aylor, Jr., who recently resigned
from the post following his an­
nouncement earlier in October to
leave the banking industry for a po­
sition in his family’s business. Mr.
V a y lo r had been vice chairman and
chief credit officer, Seafirst Corpora­
tion and Seafirst Bank, Seattle.
The RMA board also named RMA
second vice president Edward J.
Vvilliams to the post of first vice
president. He is treasurer, Brown
Brothers Harriman & Co., New York
City. In addition, Malcolm T. Mur­
r a y , Jr., chairman of RMA’s Policy
^Division Council since 1983, was
named second vice president. Mr.
Murray is executive vice president,
First Union National Bank, Char­
l o t t e , N.C.

mers.
Located outside of Orlando in
Maitland, Fla. — near The Kirch­
man Corporation’s international
headquarters — the Corporate Re­
search and Development Institute
will work to identify and create new
systems and products to benefit the
business of banking. In addition, it
will seek to support and advance the
technological needs of all existing
Kirchman Companies, including
Florida Software Services, Inc., Om­
ni Resources, Inc., Infoserve, Inc.,
Kencom, Inc., and Link X, Inc.

The Kirchman Corp. Forms
Corporate R&D Institute
After nearly two decades of crea­
t i v e technological advances, The
Kirchman Corporation, Orlando,
Fla., has intensified its objectives
with the establishment of a new na­
tional Corporate Research and De­
v elo p m ent Institute, according to
Bonnie Mclntire Smith, president
and chief executive officer of The
Kirchman Corportion.
Recent developments from The
^Kirchman Corporation’s new R&D
facility include Service Link and
Omni Executive, two unique mainframe-to-microcomputer products
«designed for Florida Software Ser­
v ic e s and Omni Resources respec­
tively; PERC PAKs, an advanced
series of management-sensitive per­
sonal computer software; Kencom,
«an all-in-one softw are system
^created for America’s mid-range

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Federal Reserve Bank of St. Louis

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InnerLine Offers Performance Comparison with Competitor^
ANKS, bank holding companies
and savings and loans will soon
B
be able to anonymously compare
their performance to that of compet­
ing institutions through a joint ser­
vice developed by Bank Earnings
International and InnerLine, an on­
line financial information network.
The micro-based system, the first of
its kind according to Walter Rapawy, chief executive officer of InnerLine, located in Arlington Heights,
111., will be available in January,
1985.
One element of the package, Peer
Group, provides nationwide analysis
capabilities based on asset size,
branching, location, and in-house
data processing versus non-data
processing institutions. Data will be
available on-line within 48 hours of
receipt. Comparisons can be made
with three asset sizes of the same
type of institution, as well as with
other institutions of the same size.
Another element of the package,
Executive Manager, provides the in­
stitution with a detailed look at in­
ternal operations from a top man­
agement perspective.
The ability to understand how one


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Federal Reserve Bank of St. Louis

institution is performing, compared
to others of the same size, or one size
larger or smaller, can help an institu­
tion develop competitive strategies,
according to Mr. Rapawy.
“The timeliness of this informa­
tion is also a key feature,” he said.
“Participants in the Peer Group and
Executive Manager will receive a
complete overview of how their in­
stitutions compare to others, nation­
wide, on a monthly basis.”
Reports generated from the total
package cover all areas of the insti­
tution’s operations, including trend
data. All calculations are handled by
the package and only raw data,
which is kept confidential and
anonymous, is entered into the
micro-based system. Subjects cov­
ered by the report include: loan qual­
ity, fee income, financial data, staff
control, staff productivity, and new
business generation.
“This information is not available
elsewhere, because institutions are
not required to provide it to the gov­
ernment through quarterly call re­
ports,” Mr. Rapawy said.
A further application of the Peer
Group, according to Mr. Rapawy, is

the ability of an institution, holding
company, state association or na­
tionwide group to establish th e i^
own peer group which would b ^
available only to authorized mem­
bers.
“A homogeneous group can be ar­
ranged that will work within the p a r^
ameters it has defined,” Mr. Rap­
awy said. “This can be an excellent
means for any organization to re­
ceive monthly information on per­
formance of all the members of t h ^
group to ensure that performance re­
mains consistent with the plan. It
will provide an excellent tool for de­
cision-making that depends on time­
ly information. ’’
£
Financial reports and statistics
available 24 hours a day, seven days
a week through InnerLine are com­
piled by economists, researchers,
analysts, accountants, journalists^
consultants and commentators.
They include American Banker; Fi­
nancial Products Group; Arthur
Young; Bond Buyer; Disclosure,
Inc.; Powers Research, Inc.; M cFad^
den Business Publications, and the
Bank Marketing Association.

LeaseAmerica is a subsidiary of Life
Investors Inc., a diversified finan­
cial services holding company orga­
Directors of LeaseAmerica Corpo­ nized in 1959.
ration, a general equipment lessor in
Cedar Rapids, la., announced at an Mercantile, Metropolitan
^October 4th board meeting that the
company has surpassed $100 million Plan Joint Insurance Move
Mercantile Bancorporation Inc., a
in lease receivables.
With the addition of a new Ven­ major regional bank holding com­
dor Service Division and expanding pany headquartered in St. Louis,
^business volume, the company also and Metropolitan Life Insurance
has hired 23 additional employees Company, New York, have agreed to
since March, 1984. This brings the develop a program for the distribu­
tion of Metropolitan products and
total number of employees to 68.
The company’s portfolio of leases services to customers of Mercantile
•n o w includes major investments in banks and other consumers in the
office, medical, dental, manufactur­ bank’s market areas. The announce­
ing, agricultural, accounting, data ment was made by Donald E. Lasaprocessing, food service, and auto- ter, Mercantile’s chairman and chief
_mative equipment. The portfolio is executive officer, and Pierre Maurer,
^sp read throughout the United Metropolitan executive vice presi­
dent in charge of personal insurance.
States.
Metropolitan currently operates
Headquartered in Cedar Rapids,
LeaseAmerica has 13 regional sales 25 sales offices and insures more
^offices. These are in Atlanta, Cedar than one million residents in the
wRapids, Colorado Springs, Dallas, state of Missouri.
Mr. Maurer stated that Metropol­
Davenport, Des Moines, Houston,
Kansas City, Louisville, Milwaukee, itan will concentrate on two major
Minneapolis, Omaha, and a recently marketing opportunities: the testing
and implementation of a direct re^opened Peoria office.
LeaseAmerica, established in sponse/telemarketing program offer­
1958, ranks among the oldest leas­ ing automobile and homeowners
ing companies in the United States. coverage to portions of Mercantile’s

LeaseAmerica Receivables
*Top the $100 Million Mark

17
customer base and the development
of insurance centers manned by
salaried Metropolitan representa­
tives. The program, which has been
divided into a number of phases, will
be initially implemented in metro­
politan St. Louis and expanded to
other locations in the state through
1987.
The first phase of the program,
which Metropolitan will begin this
fall, will include the direct market­
ing effort, the organization of the in­
surance centers and the recruiting of
staff. Sales people will be recruited
and trained to work in the specific
Mercantile banks in which Metro­
politan will lease space.
The second phase of the program
includes the actual start-up of the in­
surance centers in early 1985. It will
also include an expansion of the
direct response/telemarketing pro­
grams.
In the third phase of the program,
the insurance centers will be ex­
panded to all Mercantile bank loca­
tions tht can support this type of
presence.
According to Mr. Maurer, “These
programs will be expanded and re­
fined over time. As the relationship
develops, other marketing programs
may be added.’’

Continuity of people. Continuity of policy.
Continuity of commitment. That’s what corre­
spondent banking means at Drovers. With some
banks, it’s a sideline. With others, only the large
metropolitan relationships are sought and
serviced. Not so at Drovers. We seek strong, long­
term relationships with banks in towns like
Sandwich. Or Watseka. Or Varna. (You know who
we mean.) So call John Crotty. Or Kathy Hardy.
Or Max Roy. Or Andy Ruments. Or Frank Bauder.
Or Jim Carmody. Professionals sensitive to over­
line situations. Professionals sensitive to the
agricultural sector. Professionals sensitive to you.
Toll-free 1-800-621-8991.
Illinois, 1-800-527-2498.

D ro v e rs B a n k« « »
47th & Ashland Ave., Chicago, IL 60609 • 1-312-927-7000.

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Federal Reserve Bank of St. Louis

MEMBER FEDERAL RESERVE SYSTEM AND FDIC.

18

Corporate
\
ROMOTIONS and other an­
P
nouncements have been made
by the following firms:

Bank Building Corporation, St.
Louis: William G. Sgarlata has been
named president
of the mid-conti­
nent region of
Associates Corporation of North BBC, it was an­
America, New York, N.Y.: Terrell L. nounced recently
Potts has been elected vice presi­ by Rex H. Dun­
dent and assistant treasurer and lap, senior vice
Daniel P. Slowinske has been elected president. Mr.
vice president.
Sgarlata former­
Mr. Potts, who will continue to ly was vice presi­
maintain responsibility for the As­ dent and general w G SGARLATA
sociates bank relations program, manager of facil­
joined in 1978. He has served in var­ ities services at Mercantile Trust
ious positions within the company’s Company, St. Louis.
financial department and as senior
Bank Building’s mid-continent re­
vice president of AFC Securities, gion, headquartered in St. Louis,
Inc. the company’s broker/dealer.
covers a 16-state area from Idaho in
Mr. Slowinske will continue to be the west to Michigan in the east,
responsible for managing the finan­ and southwest to New Mexico. Mr.
cial department office in Chicago, Sgarlata, who will supervise a staff
111. He joined the company in 1982 of 56 persons, will have overall re­
as assistant treasurer in the finan­ sponsibility for marketing the ser­
cial department, following extensive vices of BBC in this region of the
experience in the Chicago banking United States.
industry.
Mr. Dunlap said Bank Building

was pleased to have an executive
like Mr. Sgarlata join the company#
because his record and talents in the
field of banking will be invaluable to
BBC in the planning, design and
construction needs of financial insti­
tutions.
#
Brandt, Inc., Watertown, Wis.:
Kenneth R. Shellabarger and Todd
Randinelli were recently appointed
branch managers for Brandt.
#
In his new position, Mr. Shella­
barger takes responsibility for sales
management in the Chicago area.
Prior to joining Brandt, he was a
ten-year employee for Xerox Corpo#
ration, Chicago, where his last posi­
tion was that of sales manager of the
information systems division.

K.R. SHELLABARGER

T. RANDINELLI

Mr. Randinelli, who has been ap­
pointed branch manger of Northern
Florida, joins Brandt from Victor
Business Products where he was
manager-central region directing th ^
ECR, office products and microcom­
puter sales for 18 states.
Collateral Control Corporation,
St. Paul, Minn.: Robert M. Kuenrfl>
has been promoted to vice
p resid en t and
divisional marketing manager
for the St. Paul/
Chicago Region
with offices at
1699 Wall Street,
Mt. Prospect in
Illinois.
R.M. KUENN
Mr. Kuenn has
been with Collateral Control since
March, 1982, most recently as a
marketing representative in the Mil#
waukee area office. Prior to that he
was employed by Roth Young Per­
sonnel as manager of financial and
EDP placements.
It was announced recently thai
GLR, Inc. of Madison, Wis., ha;
been appointed as a new sales ageni
for Daktronics products. The com

r thFRASER
w e s te r n B a n k e r, N o v e m b e r, 1984
DigitizedN ofor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

^

19

pany is an internationally known
0 manufacturer and supplier of elec­

tronic information display systems.
Peter Serena, president of GLR,
said his company’s offices in Chica­
go, Detroit, Indianapolis and MadiO son will market Daktronics informa­
tion systems including time and
temperature displays, and compu­
ter-controlled message and anima­
tion centers in Illinois, Indiana and
• Michigan.

9

ti

#

•

Heller International Corporation,
Chicago, 111.: Edwin J. Reidy has
been named senior vice president of
executive manpower and organiza­
tion development, and John M. Hart
has been named senior vice presi­
dent of human resources.
Mr. Reidy, formerly vice presi­
dent of personnel and organization
development, has been with the
company since 1975. He holds a
masters degree from Loyola Univer­
sity.
Mr. Hart has more than 15 years
of experience in human resource
management. His most recent posi­
tion prior to joining Heller Interna­
tional was vice president of human
resources for Impeli Corporation, a
San Francisco based engineering
consulting firm.
InnerLine, Arlington Heights, 111.:

caste is responsible for product line
development of counter systems; re­
cord, money and data safes, bulletresistive equipment, walk-up and
drive-up windows, and insulated
vault doors.
Prior to his promotion, Mr. Nucaste was manager, engineering pro­
posal group for the Mosler Counter
Systems Division in Buffalo, N.Y.
He has been with Mosler eight years
and will now live in Hamilton.
Travelers Express Company, Inc.,
Minneapolis: Glenn Bozon has been
appointed national sales trainer,
with responsibility for sales and
managerial training of region and
national employees.
Before this appointment, he was
director of marketing for Bethel Col­
lege, and prior to that he was direc­
tor of a national training institute
and director of the management de­
velopment center at the University
of Wisconsin.
Visa U.S.A. Inc., San Francisco,
Calif.: John H. Bennett, 51, has been
named director of marketing and
product development, and will be re­
sponsible for Visa’s marketing and
advertising functions as well as de­
velopment of its card and paper-

based payment products.
Mr. Bennett joins Visa following
three years as vice president of mar­
keting for Merrill Lynch, Pierce,
Fenner & Smith, Inc., where he di­
rected the development of the com­
pany’s cash management account.
He also served four years as vice
president in the card division of Citi­
bank, and was associated for almost
20 years with the American Express
Company.
Verex Assurance, Inc., Madison,
Wis.: Kevin L. Schultz has been
nam ed secon­
dary marketing
account execu­
tive of Verex, a
p riv a te m o rt­
gage insurer.
Prior to join­
ing Verex, Mr.
Schultz served
as vice president
and secretary to
K.L. SCHULTZ
a federal savings
association in downstate Illinois,
where he gained several years’ ex­
perience in the secondary market.
Mr. Schultz will be working out of
Verex’s Chicago customer service
office.

Chicago bound business travelers.

0 John W. Lenz, 37, has been ap­

pointed director of systems and op­
erations for InnerLine, according to
Walter Rapawy, chief executive offi­
cer.
a
Mr. Lenz joins InnerLine from
Peat, Marwick, Mitchell & Co., Chi­
cago, where he served as manage­
ment consultant for major commer­
cial banking, manufacturing, insur0 ance and health care industries. Pre­
viously, he directed computer hard­
ware conversion projects and imple­
mented manufacturing and financial
software systems for Gould, Inc.,
0 Rolling Meadows, 111.
Mosler, Hamilton, Ohio: Russell
S. Nucaste has been named product
manager of coun­
ter systems and
commercial pro­
ducts, according
to an announce­
ment made last
month by Joseph
C. Abbott, vice
president-M osler Physical Se­
c u rity O pera­
R.S. NUCASTE
tions. Mr. Nu
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20

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It’spartnertopartner”

Jam es K S u h r
U.S. ñ tia n c ia l Institutions

When you are a correspondent of First Chicago, it
means having access to the
vast resources of a moneycenter bank. It means working
w ith a relationship manager
who guides teams of specialists to deliver the 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. Our

Midwest Financial Institutions
Team offers a full range of
traditional correspondent
services plus specialized credit
and investment banking capabilities. Our Community
Banking Team delivers the full
line of credit and non-credit
services along w ith a strategic
planning model designed fo r
community banks.
Whether you’re a regional bank
holding com­
pany a
regional

bank or a community bank,
when you’re a correspondent
w ith First Chicago, we w on’t
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we’ll be working fo r you.
See how First Teamwork
can w ork fo r you. Call Jim
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ATLANTA— BO S TO N -C H IC A G O - C LE V ELAN D -D A LLASHO USTO N- LOS AN G E LE S - MIAMI - NEW Y O R K SAN FRANCISCO-WASHINGTON. DC.

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FIRST TEAM W ORK WORKS
© 19 8 4 The First National Bank o f Chicago, Member RD.I.C.

N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

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Federal Reserve Bank of St. Louis

21
ABA OFFICERS for 1984-85 pictured atop
the New York Hilton Hotel with skyline of
the Chrysler, Pan Am and other midtown
Manhattan buildings. From left: Immed.
Past Pres.—C. Robert Brenton; Treas.—
Harry R. Mitiguy; Pres.—James G. Cairns,
Jr.; Pres.-Elect— Donald T. Senterfitt, and
Exec. V.P.—Willis W. Alexander.

By BEN HALLER, JR.
Publisher

James G. Cairns Named ABA President
Willis Alexander to Retire as E.V.P. Jan. 31, 1985
N THE DAY of his installation
as president of the American
O
Bankers Association at the 1984
# convention in New York City on Oc­
tober 23, James G. Cairns, Jr., was
given the first major challenge of his
coming year in office—find a replace­
ment for ABA Executive Vice Presi• dent Willis W. Alexander.
Mr. Cairns announced at the con­
cluding general session on Wednes­
day, October 24, that on the preced­
ing evening at a private dinner meet­
i n g for ABA officers and executive
staff, Mr. Alexander had submitted
his resignation, effective January
31, 1985. Mr. Cairns said, “ I will
1984-85

ABA Officers
and
Board of Directors
The following five officers and 18
directors comprise the new 23member ABA Board of Directors:
OFFICERS:
Pres.: James G. Cairns, Jr., pres.,

Peoples Natl. Bank of Washington,
Seattle.
Pres.-Elect: Donald T. Senterfitt, vice
chmn., Sun Banks, Inc., Orlando,
Fla.
Immed. Past Pres.: C. Robert Bren­
ton, pres., Brenton Banks, Inc., Des
Moines, la.
Treas.: Harry R. Mitiguy, pres.,
Howard Bank, Burlington, Vt.
Exec. V.P.: Willis W. Alexander,
Washington, D.C.


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Federal Reserve Bank of St. Louis

shortly appoint a selection commit­
tee that will consist of a former
ABA officer and three members of
the ABA board to recommend a can­
didate to succeed Willis.’'
Mr. Cairns’ task is one that hasn’t
been undertaken for 15 years. Mr.
Alexander assumed the duties of ex­
ecutive vice president on October 1 ,
1969, after he had served as ABA
president in 1968-69. He had served
previously as president of the Mis­
souri Bankers Association. Mr.
Alexander was president for many
years of his family’s bank, the $50
million Trenton Trust Co. of Tren­
ton, Mo., and continued as chairman
DIRECTORS:

• Jon S. Armstrong, chmn., Midwest
Commerce Banking Company, Elk­
hart, Ind.
• Charles A. Bruning, pres., Edgewood Bank, Countryside, III.
• William H. Crawford, pres., First
National Bank and Trust Company,
Frederick, Okla.
• E. Reese Davis, chmn., County Bank
of Santa Cruz, Cal.
• Milton L. Drewer, Jr., pres., First
American Bank of Virginia, McLean
Va.
• Glen Y. Forney, pres., Security Bank
and Trust Company, Stroudsburg,
Pa.
• Jordan L. Haines, chmn., Fourth Na­
tional Bank and Trust Company,
Wichita, Kan.
• Joe S. Hiatt, chmn., American State
Bank, Charleston, Ark.
• Dan H. McLeroy, chmn. & pres., Bar­

of the board there since his move to
Washington, a post he still holds.
Mr. Alexander gave no indication
of his immediate future plans, but
did say he will continue in all proba­
bility to hve in the Washington area.
Announcement of the search for a
new senior executive to head the
professional staff of what is rated
one of the most prestigious associa­
tion posts in the nation led to im­
mediate speculation by conventiongoers on potential successors. The
one most frequently mentioned was
Gerald Lowrie, ABA’s experienced
director of government relations.
Mr. Cairns follows C. Robert
nett Bank of Southwest Florida,
Englewood, Fla.
• John G. Medlin, Jr., pres., Wachovia
Bank and Trust Company, N.A.,
Winston-Salem, NC.
• James J. O’Dell, chmn. & pres.,
Platte National Bank, Brighton,
Colo.
• Mark W. Olson, pres., Security State
Bank, Fergus Falls, Minn.
• Charles Pistor, chmn., RepublicBank, Dallas, Tex.
• Leland S. Prussia, chmn., Bank of
America, N.T. & S.A., San Francis­
co. Cal.
• Walter V. Shipley, chmn., Chemical
Bank, New York, NY.
• James P. Simmons, chmn., United
Bank of Arizona, Phoenix, Ariz.
• H. Lee Swanson, exec, v.p., State
Bank of Cross Plains, Wis.
• Edward L. Tubbs, chmn., Maquoketa
State Bank, la.

N o r th w e s te r n B a n k e r, N o v e m b e r, 1984

22

Brenton as ABA president. Mr.
Brenton is president of Brenton
Banks, Inc., Des Moines la.
Succeeding Mr. Cairns as presi­
dent-elect for 1984-85 and in line for
the 1985-86 ABA presidency is Don­
ald T. Senterfitt, vice chairman of
Sun Banks, Inc., Orlando, Fla. Con­
tinuing as treasurer for the second
year of his two-year term is Harry R.
Mitiguy, president and chief execu­
tive officer of Howard Bank, Bur­
lington, Vt.
In addition to working with a new
CEO of the headquarters staff in the
coming year, Mr. Cairns also will be
working with a completely new
ABA board of directors, which was
approved as part of an amendment
voted unanimously by the delegates.
The old 26-member board structure,
consisting of the chairmen of the
various ABA councils, immediate
past president and the ABA officers
and executive vice president, has
been set aside.
The new board of directors will
consist of 18 bankers elected from
the membership, plus the five-mem­
ber executive committee. The latter,
for 1984-85, will be Mr. Cairns, Mr.
Senterfitt, Mr. Mitiguy, Mr. Bren­
ton and Mr. Alexander (and his suc­

cessor). The new board will consist
of three groups: A - community
banks; B - mid-size banks; C - large
banks. Asset or deposit size measur­
ing each size group was not speci­
fied. Each group will have six mem­
bers each, elected two per year for
three year terms. Thus, they will all
be elected eventually on a rotating
basis. They will be nominated in the
spring by the same committee that
nominates the ABA officers for elec­
tion at the national convention.
Delegates at the 1984 convention
also approved the nominating com­
mittee’s selection of the 18 members
for the 1984-85 board. They are
listed in a separate box with the of­
ficers.
The chairmen of the various ABA
councils (banking professions, com­
munications, community bankers,
government relations, etc.) now will
form a new Operating Committee
chaired by the President-Elect.
This will further structure ABA
more along the lines of management
of banks themselves by having a
separately elected board of directors
that includes managing officers of
the association, and an operating
committee made up of members
under a chief operating officer.

The ABA president will appoint a
vice president for each state. Indiivi-(
dual states will continue to elect two
of their members as they have in the
past for the ABA Council. General­
ly, these posts have been filled by
the two immediate past presidents*
of each state association. This body,
however, instead of functioning as
the ABA Council, will be elected to
represent their states to the ABA
Leadership Conference, which for­
mulates ABA policy on legislation
by consensus.
Registration at the 1984 conven­
tion exceeded 10,000 and was the.
first time that ABA has met in New
York since 1975. The convention,
which started with a round of recep­
tions, committee meetings and ABAsponsored sessions on Saturday, Oc-^
tober 20, ran through the final gen­
eral session Wednesday noon, Octo­
ber 24. In addition to three general
sessions, registrants could attend an
assortment of more than 50 forums, <
seminars, public policy discussions,
rap sessions and spouse discovery
sessions. ABA also hosted its two
traditional, elegant receptions for
members. A total of 319 booths were^
divided into two exhibit areas—-one
at the New York Hilton, the other

SOME of Iowa registrants included, from left: Bob Millen, pres., United Central Bank, Des Moines, and Happy; J.C. and Neil Milner, exec,
v.p., Iowa Bankers Assn., Des Moines; John Sagers, pres., Peoples B&T, Cedar Rapids^ and Birgit, and Joann and Scott Fetner, pres., Natl.
Bank of Waterloo.

LEFT— Bud Pike, pres., Hawkeye B&T, Grundy Center, la., and Evelyn, with Mona and Herb Lund, pres., Security State, Albert Lea, Minn^p
RIGHT—Sales personnel at Monroe Systems for Business exhibit included Kathy Wetzel, Jim Ruth, Robert Cohen and AI Bartello.
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across the street at the Sheraton
# Centre.
A major report called “The Retail
Force: Consumer Delivery Decisions
for Financial Institutions,” was un­
veiled at a Saturday press confer® ence by Clifford M. Hames, chair­
man of the ABA Consumer Finan­
cial Services Group and vice-chair­
man of Sun Bank, Orlando, Fla. He
said it will enable the nation’s com® mercial banks to reconceptualize
their role in the financial retail mar­
ketplace while providing the strong­
est identification of today’s con­
sumers.
® “This study,” he said, “tells
banks how to determine what con­
sumers want and what banks must
do to attract new retail customers.
Retail bankers continue to be at a
® disadvantage to our competitors
because of restrictive regulations.
And now, a consumer financial ser­
vices industry has emerged with a
m myriad of new competitors vying for
w positions. Today, retail banking is
an industry more marketing-ori­
ented than product driven. Custo­
mers will demand that their retail
^ bank respond to their needs, and
w they will use the new leverage that
alternative financial service pro­

viders give them.”
“The Retail Force” report offers
suggested approaches for banks and
the report has been made available
to all member banks. Randall Killebrew, president of First National
Bank of Petersburg, 111., and incom­
ing chairman of the ABA Commu­
nity Bankers Council, stated,
“Smaller community banks will find
The Retail Force to be a practical
roadmap to guide them on how to go
about improving the delivery of
their products and services.”
In his address to the Monday gen­
eral session titled, “Reflections,”
FDIC Chairman William M. Isaac
said, “Since this may well be my last
appearance before this group as
Chairman of the FDIC, there are
many thoughts I would like to share
with you.” Mr. Isaac gave no fur­
ther indication of whether he plans
to resign, believes he will be re­
placed, or was merely referring to
the fact that the presidential elec­
tion would be held within two weeks
following his address.
He said “we often hear about
what is wrong in banking today...I
prefer to focus on what is right with
banking...85 percent of all banks are
in good condition. Earnings are

23
under pressure but are up slightly
from 1982...aggregate capital ratio
has increased for four consecutive
years, and its loan loss reserve ratio
has increased for six successive
years. The failure rate is high, but,
at less than one-half of one percent
per year, it remains well below any
other industry with which I am fa­
miliar and far lower than was typical
even in banking prior to the 1930s.
“Moreover, banking has estab­
lished and borne the cost of the most
effective safety net in the world.
After absorbing record losses during
the past four years, and without re­
lying on one nickel of taxpayer
money, the FDIC insurance fund is
stronger and more liquid than ever.”
Mr. Isaac reviewed the additional
powers of insurance, real estate and
securities that banks are seeking
and said that acting in any of these
capacities poses no more risk to
banks than their present authorized
risk taking activities. He said denial
of these new activities involves a dif­
ferent kind of power: “political
power.”
Mr. Isaac closed by pleading his
case again for a reform of the depos­
it insurance program and warned of
potential “nationalization” of bank-

HOSTING the FirsTier of Nebraska reception were: John Woods, chmn. FirsTier and Omaha Natl., and Marian; Bill Smith, pres. FirsTier
and pres., 1st Natl. Lincoln, and Linda; Mary Jo and Mike Dahir, v.p. Omaha Natl.; John Martin, sr. v.p., Omaha Natl., and Linda; Gary
Thrasher, Omaha Natl. exec, v.p., and Carole, and Orrin Wilson, 1st Natl. Lincoln exec, v.p., and Jan.

SOUTH DAKOTA officers attending included: Mike Broderick, pres., First American Bank, Canton, SDBA v.p.; John Haerter, pres., Farmers
State, Hosmer, SDBA pres., and Milt Schwartz, SDBA exec, v.p., Pierre. RIGHT—North Dakota officers included: Darold Petersen, pres.,
Lakeside State, New Town, NDBA immed. past pres.; Bill Sanger, pres., First Bank of N.D., Wahpeton, NDBA pres-elect; Harry Argue,
'NDBA exec, v.p., and Les Nesvig, pres., First State, Lamoure, NDBA pres.

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N o r th w e s te r n B a n k e r , N o v e m b e r, 19 84

24
ing. He said, “My purpose today is
not to explain in detail or attempt to
sell any specific reform measures.
My goal is simply to convince you
that there are serious problems in
the way our deposit insurance sys­
tem operates which require your ur­
gent attention. The current system
is grossly unfair to smaller banks
and well-run banks and poses a sub­
stantial threat to our free-enterprise
system of banking. The hour is
growing late, but there is still time
to return to a safer course.”
Comptroller of the Currency C.
Todd Conover spoke at the final gen­
eral session and confirmed that his
office was going to proceed aggres­
sively in issuing charters to non­

banks, since Congress failed to act 1983 would be placed in the next bill
on the matter, and his self-imposed discussed and this would void any®
moratorium had expired. He said he charters after that date, Mr. Con­
had 332 applications from 47 appli­ over stated, “ I have no concern
cants for charters in 41 states. He about that. If the applicants do,
said he “will take into account: 1 . they can withdraw their applica­
The quality, integrity and condition tions. Right now they are perfectly®
of the applicants. 2. Adequacy of legal. We’ll tell them of the July,
capital. 3. Does the operating plan 1983, threat. It is likely that the fact
submitted indicate the applicants that banks obtain charters will have
understand what they are getting an impact on Congress. The fact _
into so far as running a business?
that they announced the July, 1983,®
“What will not be considered is date doesn’t make it so. That needs
whether there are too many banking approval of all in Congress.”
facilities. We will not be in the ra­
The 1985 ABA convention will be
tioning business.”
held in New Orleans October 19-23.^
In response to a question regard­ The 1986 convention is scheduled^
ing the Garn/St. Germain statement for October 24-29 in San Francisco.
that a grandfather date of July 1,
□

WELCOMING guests at First Banks of Minneapolis and St. Paul luncheon were: Dick Schoenke, pres., First Minneapolis, and Sandy, and
Dale Hanson, pres., First St. Paul, and Joan. RIGHT— Henry Royer, pres., Merchants Natl., Cedar Rapids, la., and Ann, were greeted by Pat­
ti and Ken Wales, sr. v.p., First Minneapolis.

MINNESOTA attendees included, from left in above photos: Jodi and Mike Pieschel, pres., Farmers & Merchants State, Springfield; Nancy
and Roland Nordlund, chmn., Town and Country Bank, St. Paul; Kathie and Mike Lillehaugen, pres., Community State, Alexandria, and
Marlys and Paul Lindholm, pres., Bank of Maple Plain. In photos below: Leila and Truman Jeffers, exec, v.p., Minnesota Bankers Assn.,®
Minneapolis; Pat and Clint Kurtz, pres., Citizens State, Norwood; Gene Beito, pres., Northern State, Thief River Falls, and Gretchen, and
Jan Nelson, whose husband, Art, is pres., Burnsville State, Burnsville.

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Federal Reserve Bank of St. Louis

25

WORLD headquarters building of Manufacturers Hanover Trust Company at 270 Park Ave. was the setting for the MH traditional ABA
reception. Greeting guests were Don McCree, exec, v.p., and John McGillicuddy, chmn. & ceo. RIGHT—At annual breakfast hosted by
United Missouri Bank of Kansas City, hosts included Crosby Kemper, chmn. & ceo, and Bebe, along with Judy and Dick King, pres.

a CHASE Manhattan Bank of New York’s exhibition of various financial services was discussed with bankers by Anthony P. Temraciano,
w exec. v.p. & chief fin. off., and Susan Schoon, v.p. & exec, in charge of community banking division. RIGHT—Chase Bank also hosted con­
vention-goers at an elegant reception in the Metropolitan Opera House at Lincoln Center. Pictured are Royce Clark, chmn. & ceo of IntraWest Bank of Greely, Colo., and Alma; Jay Starr, Chase 2nd v.p.; Pat and Jack Guthrie, chmn., First Wyoming Bank, N.A., of Laramie, Wyo.

LA SALLE Natl, of Chicago reception was hosted by Emil Schubert, v.p.; Homer Livingston, Jr., pres.; Nancy Schubert; Cheryl and Hill
Hammock, exec. v.p. RIGHT—At First Natl, of St. Joseph, Mo. reception were: Bill Manring, v.p. of host bank; Luther Thompson, pres.,
Bank of Atchison Co., Rock Port, Mo., and Jane; Wells Hill, pres., Wells Bank at Platte City, Mo., and Sue, and Ken Gilpin, exec, v.p., 1st St.

Joe.

LEFT— LeFebure Corporation of Cedar Rapids, la., personnel included Harold Elchlepp, adv. & sales prom, mgr.; Jim Burritt and Bob Kapp^m eyer, product mgrs. RIGHT— Ron Bolton, natl. sales mgr., and Bob Millar, product line mgr.—fin. systems, at their booth for Sharp Elec­

t r o n i c s Corp., Paramus, N.J.

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26

A Plain
English
Guide to
Asset/Liability
Management

A Plain English
Guide to
Asset/Liability
Management

Written b\ Bankers for Bankers

ABOUT THE AUTHORS
Paul Lindsey is president and CEO of Farmers National Bank of

Geneseo, III., an agricultural-oriented financial institution. Mr.
Lindsey has over 15 years experience in the banking industry and
has been instrumental in helping Farmers National to nearly dou­
ble in size in only seven years from $60 million in total assets in
1977 to its present size of $115 million. He is also a member of the
bank’s Asset/Liability Management Committee (ALCO) and a
member of the bank’s board of directors. Farmers National has
had a formal asset/liability management program in effect since
1978.
Bill Goedken is president and CEO of F.N.Bankware, Inc., a fi­
nancial institution consulting and microcomputer software firm
in Omaha, Nebr. Mr. Goedken holds CPA and CMA certifications,
and is an MBA graduate of the University of Iowa. Before joining
F.N.Bankware, Mr. Goedken was a senior consultant with Touche
Ross & Co., an international CPA firm. He has over 10 years exper­
ience in the banking and savings and loan industries, asset/liabili­
ty management, and financial institution operations.
Jim Riha is senior vice president and controller of Packers Na­
tional Bank of Omaha, Neb. Packers is an urban retail bank in a
highly competitve metropolitan market and has assets of $120
million. Mr. Riha is a graduate of the Colorado School of Banking
and the Stonier Graduate School of Rutgers. As both CFO and
chief administrative officer of Packers, Mr. Riha is responsible for
all financial operations of the bank, including asset/liability man­
agement. He is also a member of the bank’s Asset/Liability Man­
agement Committee (ALCO).

of similar maturity lengths and/or risk classes. For ex­
ample, 30-month CD’s would be matched with loans
and securities of similar maturity (see Figure 4 for an •
illustration). If any mismatching occurs on the balance
sheet as a whole (the asset/liability structure), a “gap”
results. Since gap management is probably the most
predominant practice today, we will examine it step b3'
step.
#
Let’s take a simple example to learn the “gap” con­
cept. Suppose your current balance sheet resembles
the one shown in Figure 3. Note the balances and rates
of the various asset and liability categories. These are
the current balances and weighted-average rates for •
each account. This balance sheet presents only part of
the information needed for gap managemnt. We must
further identify these asset and liability categories ac­
cording to maturity as shown in Figure 5. This is the
same balance sheet as shown in Figure 3 but with the •
total balance broken out by maturity for each of the
next three months and the total amount maturing
beyond three months. Note that total assets are
$50,736,000 and total deposits are $44,446,000.
Now let’s analyze a single account. Look at U.S. ®
FIGURE 4

GAP Management Approaeh

Part III

Uses of Funds as Allocated
by Liquidity - Profitability Center

Ed. Note: This is the third in a five-part series presen­
ting to our readers the entire booklet titled, “A Plain
English Guide to Asset/Liability Management. ” Part
I I last month began a presentation o f the Four A p ­
proaches to Practicing A L M and discussed the first of
three—Pool-of-Funds Approach, Management Science
Approach and Duration Approach. The fourth, Gap
Management Approach, is presented here in a separate
discussion as Part III. (As noted at the outset o f this
series, a free copy of the entire booklet may be obtained
by writing the Editor.)
Gap Management Position
The gap management approach (also called assetallocation approach) is rapidly gaining popularity
within the banking industry and is probably the most
predominant practice today. This approach matches
various categories of liabilities to categories of assets
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Matching by
Maturity/Repricing
Time Frames

Sources of Funds From
Liquidity - Profitability Center

<§>

FIGURE 3
POOL OF FUNDS APPROACH
SAMPLE BANK U.S.A.
FIGURES ARE IN THOUSANDS
ASSET DESCRIPTION
CASH l DUE FROM BANK

LIABILITY & EQUITY DESCRIPTION
amount:

RATE:

2,418

DDA’S

o .o o i
NOW ACCOUNTS

U.S. GOVERNMENT’S
•
AGENCY ISSUES
MUNICIPAL’S
FED FUNDS SOLD
#
SUBTOTAL INVESTMENTS

AMOUNT:
RATE:
AMOUNT:
RATE:
amount:
RATE:
amount:
rate:

5,714
10.751
4,932
11.121
5,131
4.571
2,745
9.551

AMOUNT:
rate:

18,524
9.511

AMOUNT:
RATE:
amount:
rate:
amount:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
rate:
AMOUNT:
RATE:

7,533
14.251
2,513
13.BOI
5,241
14.351
7,232
14.501
2,540
12.251
2,340
13.331
(300)
0.001

AMOUNT:
RATE:

27,119
14.181

AMOUNT:
rate:
AMOUNT:
rate:

1,350
0.001
1,325
0.001

AMOUNT:
RATE:

2,475
0.001

amount:

50,734
11.051

SAVINGS
MONEY MARKET ACCOUNTS
—

life COMM. LOANS-FIXED
AGRI LOANS
INSTALLMENT LOANS
REAL ESTATE LOANS
II

OTHER LOANS
ALLOW FOR LOAN LOSS

SUBTOTAL LOANS
•

OTHER ASSETS

#

SUBTOTAL OTHER ASSETS

TOTAL ASSETS

RATE:

®

AMOUNT:
RATE:
amount:
rate:
AMOUNT:
rate:
—

MONEY MARKET CD’S

30 MONTH CD’S
C D ’S > »100,000
OTHER C D ’S
—

—

—

FED FUNDS PURCHASED

5,450
10.001
5,435
10.251
4,278
12.451
2,895
11.001
1,378
B.90I
—

AMOUNT:
RATE:
—

TOTAL DEPOSITS

25,010
4.231

AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
rate:
AMOUNT:
RATE:
AMOUNT:
rate:
—

SUBTOTAL CD’S

19,434
10.481
—

AMOUNT:
rate:

44,444
7.051

amount:

0
9.551
2,450
0.001

rate:

OTHER LIABILITIES
FIXED ASSETS

8,250
0.001
7,340
5.251
5,435
5.501
3,785
9.551

SUBTOT. DDA’S AND SAV. AMOUNT:
rate:

4 MONTH C D ’S
COMM. LOANS-VARIABLE

AMOUNT:
rate:

—

AMOUNT:
rate:
—

—

AMOUNT:
RATE:

2,450
0.001

CAP. STOCK t RET. EARN. a m o u n t :
rate:

3,840
0.001

SUBTOTAL OTHER LIAB.

TOTAL LIAB. 1 EQUITY

AMOUNT:
RATE:

50,734
4.171

WEIGHTED AVS. RETURN ON ASSETS
11.051
WEIGHTED AVS. COST ON FUNDS (HURDLE RATE) 4.171
DIFFERENCE (SPREAD)

4.081

government securities. Notice that $500,000 is coming
due (maturing) within 30 days (the first month on our
three-month planning horizon). No securities are due in
30-60 days (the second month), but $800,000 is due in
• the third month. The remaining $4,416,000 of U.S.
government securities mature beyond the third month.
This totals $5,716,000. The $500,000 of U.S. govern­
ment securities maturing within 30 days may be com­
posed of 91-day T-bills, treasury bonds and other gov• ernments. Thus, the total of all of the individual U.S.
government securities coming due within 30 days
equals $500,000. Also, each individual security coming
due has its own individual rate. When we average all of
the individual rates together on the $500,000 balance,
• we get 9.45%.
In Figure 5, looking down the column, we see that
$6,656,000 in total assets mature within 30 days. Total
liabilities maturing within 30 days is $6,839,000.
Figure 6 shows that the difference between the total
® assets and the total liabilities maturing in 30 days is a

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27
negative $183,000. This difference is called the 30-day
M aturity Gap. Thus, Figure 6 shows the maturity gap
position for each month up to three months. Also
shown in this figure is the cumulative maturity gap
position, that is, the month-to-month “running total”
of the gap positions.
The maturity gap is the simplest form or measure of
gap. However, variable-rate securities and financial in­
struments add another dimension to measuring gap.
When fixed-rate assets and liabilities mature, their
rates may potentially change if they are replaced.
However, variable-rate assets and liabilities may
potentially have their rates change before they mature.
This potential rate change is called repricing. Repric­
ing on variable-rate instruments may occur on a
monthly, quarterly, or on a more or less frequent basis.
Thus, all variable-rate accounts are subject to repric­
ing before they mature. Since repricing does have a ma­
jor impact on a bank’s strategies and performance, we
must examine a more comprehensive form of gap
called Repricing Gap.
In Figure 5, we had two commercial loan categories,
variable-rate and fixed-rate. We see that a similar
maturity pattern exists between the variable-rate com­
mercial loan and the fixed-rate commercial loans. As
we mentioned, interest rates on variable-rate loans
have the potential to be changed monthly, quarterly,
etc., even though the loan may mature 6-12 months
from now. Thus the bank may have the option to re­
price the variable-rate commercial loans within 30
days. Repricing may also occur for variable-rate CD’s
and all other variable-rate instruments. Figures 7 and
8 illustrate a repricing gap pattern. Note how the mea­
sured gap position has changed, i.e., the repricing gap
is different from the maturity gap.
This leads us to an important new concept. Assets
repricing within a short time frame (usually one year)
are called “Rate Sensitive Assets,” (RSA), while liabil­
ities repricing within one year are called “Rate Sensi­
tive Liabilities,” (RSL). The difference between RSA
and RSL is the repricing gap. Other rate-bearing assets
and liabilities, such as NOW accounts, are “non-rate
sensitive” because the rates on these accounts general­
ly do not change. Other accounts which have no rate,
such as cash, DDA’s, and fixed assets are called “zerorate” accounts.
Distinguishing between maturity gaps and repric­
ing gaps is important. Maturity gaps measure potenFIGURE 6
BAP AND CUMULATIVE GAP MEASUREMENTS
SAMPLE BANK U .S .A .
END OF THE CURRENT MONTH
FIGURES ARE IN THOUSANDS
MONTH
1

MONTH
2

MONTH
3

AFTER
MONTH 3

TOTAL

1) ASSETS COMING DUE:

6,456

3,154

4,153

36,773

N/A

2) L IA B IL IT IE S CONING DUE:

6,839

2,746

2,954

38,197

N/A

DESCRIPTION

3) MATURITY GAP POSITION (1 - 2 ) :

(183)

408

1,199

(1 ,4 2 4 )

N/A

4) CUMULATIVE GAP POSITION

(183)

225

1,424

0

N/A

N o r th w e s te r n B a n k e r, N o v e m b e r, 1 9 84

28
FIGURE 7

•

BALANCE SHEET ISOXEN OUT BY REPRICING
SAMPLE BANK U .S.A.
END OF THE CURRENT MONTH
FIGURES ARE IN THOUSANDS
MONTH
I

ASSFT DESCRIPTION
CASH 6 DUE FROM BANK

AMOUNT:
RATE:

U.S. GOVERNMENT’ S

AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:

500
7.431
373
12.551
200
5.901
2,745
9.531

AMOUNT:
RATE:

3,B20
9.641

AMOUNT:
RATE:
amount :
RATE:
AMOUNT:
r at e :
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
rate :
AMOUNT:
r a t i:

7,533
14.251
366
13.651
300
14.251
645
14.001
50
10.551
230
13.001

AMOUNT:
RATI:

9,124
14.161

MONTH
2

MONTH
3

TOTAL

AFTER
MONTH 3
2,418
0.001

2,418
0.001

4,416
10.761
4,239
10.931
4,931
6.591

5,716
10.751
4,932
11.121
5,131
6.571
2,745
9.551

DDA’ S

AMOUNT:
RATE:
amount :
rate :
amount:
rate :
amount:
rate :

3,785
9.551

SUBTOT. DDA’ S AND SAV. amount:
rate :

3,785
9.551

NON ACCOUNTS

AGENCY ISSUES
MUNICIPAL’ S
FED FUNDS SOLD

SUBTOTAL INVESTtfXTS

100
12.241

100
12.241

800
11.501
21B
11.751

1,018
11.551

13,586
9.301

18,524
9.511

1,322
13.891
4,111
14.371
5,287
14.641
2,410
12.191
1,650
13.461
(300)
0.001

7,533
14.251
2,513
13.801
5,241
14.351
7,232
14.501
2,560
12.091
2,340
13.331
(300)
0.001

SAVINGS
HONEY MARKET ACCOUNTS

HONEY MARKET CD’ S

COMM. LOANS-FIXa
AGRI LOAMS
INSTALLMENT LOANS
REAL ESTATE LOANS
OT1® LOANS
ALION FOR LOAN LOSS

SUBTOTAL LOANS

375
13.721
375
14.351
650
14.101
50
10.551
230
13.001

1,680
13.811

450
13.751
455
14.251
650
14.251
50
10.551
230
13.001

1,835
13.871

14,480
27,119
14.261
14.171

o n ® ASSETS

SUBTOTAL OTHER ASSETS

TOTAL ASSETS

AMOUNT:
RATE:
AMOUNT:
RATE:

1,350
0.001
1,323
0.001

1,330
0.001
1,325
0.001

AMOUNT:
RATE:

2,673
0.001

2,675
0.001

33,159
10.041

50,736
11.051

AMOUNT:
RATE:

12,944
12.821

1,780
13.731

2,833
13.041

MONTH
Î

AFTER
MONTH 3

TOTAL

amount:

21,223
3.281

8,250 •
0.001
7,340
5.231
5,633
5.501
3,785 •
9.551
25,010
4.231

5,450
10.001
1,835
10.271
1,379
12.401
400
11.751
1,378
8.901

900
10.201
221
14.201
450
11.501

900
10.201
196
14.001
550
11.451

1,800
10.281
2,482
12.201
1,495
10.491

5,450 •
10.001
5,435
10.251
4,278
12.451
2,895, •
11.001
1,378
8.901

rate :

10,442
10.291

1,571
11.141

1,646
11.071

5,777
11.161

19,436 m
1 0 .6 8 1 ®

AMOUNT:
RATE:

14,227
10.091

1,571
11.141

1,646
11.071

27,002
4.961

44,446
7.051

AMOUNT:
RATE!
AMOUNT:
RATE:

0
9.531
2,450
0.001

9.551
2,450
0.001

AMOUNT:
RATE:

2,450
0.001

2,450 m
0.001W

CAP. STOCK 6 RET. EARN. amount:
rate :

3,840
0.001

3,840
0.001

30 MONTH CD’ S
CD’ S > $100,000
OTHER CD’ S

SUBTOTAL CD’ S

TOTAL DEPOSITS

F Q FUNDS PURCHASED
OTHER LIABILITIE S

FI I D ASSETS

MONTH
2

8,250
0.001
7,340
5.231
5,633
5.501

rate :

6 MONTH CD’ S
COMM. LQANS-VARIABLE

MONTH
I

LIA B ILITY l EBUITY DESCRIPTION

SUBTOTAL OTHER LIAB.

TOTAL L1A1. 6 EBUITY

AMOUNT:
RATE:
amount:
RATE:
AMOUNT:
rate :
amount:
RATE:
amount:

amount:

14,227
10.091

rate :

I,
II.

571
1«

1,646
11.071

30,736
33,292 ^
4.021
6 .1 7 1 ®

FIGURE 9

FIGURE 8

EFFECT OF 11 RISE IN INTEREST RATES W

REPRICINS GAP AND CUMULATIVE GAP MEASUREMENTS
DESCRIPTION

SAMPLE BANK U .S .A .
END OF THE CURRENT MONTH

II

MONTH 1

ASSETS COMING DUE:

$ 1 2 ,7 4 4 ,0 0 0

2) L IA B IL IT IE S COMING DUE:

1 4 ,2 2 7 ,0 0 0

3) REFRICING GAP POSITION 11 - 2 ) :

(1 ,2 8 3 ,0 0 0 )

FIGURES ARE IN THOUSANDS
MONTH
1

MONTH
2

MONTH
3

AFTER
MONTH 3

TOTAL

1) ASSETS COMING DUE:

12,944

1,780

2,853

33,159

N/A

2) LIA B ILIT IE S COMING DUE:

14,227

1,571

1,646

33,292

N/A

3) REPRICING GAP POSITION (1 - 2)

(1 ,2 8 3 )

209

1,207

(133)

N/A

4) CUMULATIVE GAP POSITION

(1 ,2 8 3 )

133

0

N/A

DESCRIPTION

N o r th
e s te r n B a n k e r, N o v e m b e r, 19 84
Digitized
forw FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(1 ,0 74)

4) RISE IN INTEREST RATES:
5) ANNUAL INTEREST INCOME INCREASE
6) ANNUAL INTEREST EXFENSE INCREASE

1.00 1
(1X4)
(2 X 4)

7) RISE IN NET INTEREST INCOME (EXPENSE)

$1 29,440
142,270
(1 2 ,8 3 0 )

FIGURE 5
»ALANCE SHEET BROKEN CUT BY M TUflITIES
SAMPLE BANK U .S .A .
END OF THE CURRENT TONTI
FISURES ARE IN THOUSANDS

ASSET DESCRIPTION
CASH l DUE FRQH BANK

month

MONTH

1

2

MONTH
3

AMOUNT:
RATE:

AFTER
MONTH 3

TOTAL
LIA B ILITY 6 EBUITY DESCRIPTION

2,418
0.001

2,418
0.001

AGENCY ISSUES
MUNICIPAL'S
FEB FUNDS S01B

SUBTOTAL INVESTMENTS

•0 0
11.501
218
11.731

4,416
10.761
4,239
10.931
4,931
6.591

5,716
10.731
4,932
11.121
3,131
6.571
2,74 5
9.531

AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:

500
9.431
173
12.551
200
5.901
2,745
9.531

AMOUNT:
RATE:

3,820
9.641

100
12.241

1,018
11.551

13,586
9.301

18,524
9.511

AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
RATE:
AMOUNT:
rate :
AMOUNT:
rate :
AMOUNT:
rate :

1,245
14.201
366
13.651
300
14.231
645
14.001
50
10.531
230
13.001

1,374
14.201
373
13.721
373
14.331
650
14.101
50
10.531
230
13.001

1,300
14.231
450
13.751
433
14.231
650
14.251
50
10.551
230
13.001

3,614
14.291
1,322
13.B91
4,111
14.371
5,287
14.641
2,410
12.191
1,650
13.461
(300)
0.001

7,333
14.231
2,513
13.801
5,241
14.331
7,232
14.501
2,560
12.091
2,340
13.331
(300)
0.001

AMOUNT:
rate :

2,836
13.931

100
12.241

SUBTOT. DDA’ S AND SAV. amount:
rate :

3,785
9.551

amount:

AMOUNT:
rate :
amount:
RATE:
AMOUNT:
RATE.’
AMOUNT:
RATE:

1,250
9.601
900
10.201
379
14.451
400
11.751
IS
9.251

1,000
9.601
900
10.201
221
14.201
450
11.501
IS
9.001

AMOUNT:
RATE:

3,054
10.651

AMOUNT:
RATE:

6, B39
10.041

HOMEY MARKET ACCOUNTS

HONEY MARKET CD’ S

rate :

c a m . LQANS-FIIE5
AGS I LOANS

INSTALLMENT LOANS
REAL ESTATE LOANS
OTTO LOANS
ALUM F ® LOAN LOSS

SUBTOTAL LOANS

3,054
13.991

3,133
14.031

IB ,094
27,119
14.171
14.261

30 MONTH CD’ S
CD’ S > *100,000
OTHER CD’ S

SUBTOTAL CD’ S

TOTAL DEPOSITS

FED FUNDS PURCHASED

amount :
rate :

O T T O ASSETS

amount :
rate :

SUBTOTAL OTHER ASSETS

amount :
rate :

TOTAL ASSETS

AMOUNT:
r at e :

6,656
11.471

3,154
13.931

4,133
13.421

1,330
0.001
1,323
0.001

1,350
0.001
1,323
0.001

2,673
0.001

2,673
0.001

36,773
10.461

50,736
11.051

tial cash flows. The assets maturing over time are your
potential cash inflows, i.e., investments coming due,
payment of principal/interest on your loans, etc.; while
the liabilities maturing over time are your potential
cash outflows, i.e., customer CD’s coming due, repur­
chase agreements which will mature, etc. The net cash
flow, of course, is the maturity gap. The maturity gap
is a preliminary indicator of potential liquidity risk,
that is, the risk that a bank may or may not have
enough funds to meet its maturities. We emphasize
that the maturity gap is based on potential inflows and
outflows of assets and liabilities. For example, when a
CD comes due, it may be rolled over, in whole or in
part, or a new type of CD may be issued in its place.
Likewise in the case of a loan. New loans may be issued
to replace those that are paid off while other loans may
be paid off early. So as time goes on, the maturity gaps

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

986
9.851
900
10.201
196
14.001
550
11.451
322
B .6 5 I

2,21«
10.471
2,735
10.301
3,482
12.031
1,493
10.491
S6
8.921

5,450
10.001
5,433
10.251
4,278
12.451
2,895
11.001
1,378
8.901

2,746
10.441

2,934
10.401

10,682
10.831

19,436
10.681

2,746
10.441

2,954
10.401

31,907
3.801

—
44,446
7.031

amount:

0

amount:

AMOUNT:

CAP. STOCK 6 RET. EARN. AMOUNT:
rate :
AMOUNT:
rate :

8,250
0.001
7,340
5.231
5,633
5.501
3,785
9.551
25,010
4.231

rate :

TOTAL L IA I. t EBUITY

TOTAL

21,225
3.281

rate :

SUBTOTAL OTHER L IA I.

AFTER
MONTH 3

0.001
7,340
5. S I
5,633
3.501

rate :

OTHER LIABILITIE S
FIXES ASSETS

MONTH
3

8 , SO

3,783
9.551

SAVINS

6 MONTH CD’ S
CDMM. LOANS-VARIABIE

MONTH
2

AMOUNT:
rate :
AHOtarr:
rate :
AMOUNT:
rate :
amount:
rate :

DDA’ S
MOM ACCOSTS

IL S . BOVERNTONT’ S

MONTH
1

6,839
10.041

2,746
10.441

2,934
10.401

1

9.351
2,450
0.001

9.531
2,450
0.001

2,450
0.001

2,430
0.001

3,840
0.001

3,B40
0.001

38,197
4.BS1

30,736
6 .1 7 1

may change according to the actual transactions occur­
ring. We will discuss maturity gaps later, but for now,
let’s examine repricing gaps in more detail.
Why are repricing gaps important? Repricing gaps
are generally more meaningful than maturity gaps be­
cause repricing gaps are an indicator of interest-rate
risk. Figure 8 shows a negative repricing gap in the
next 30 days meaning that, potentially, more liabilities
will have their rates changed than assets. For example,
let’s assume a 1 % rise in rates will occur on every
financial instrument within 30 days. Figure 9 illus­
trates that if all of the 30-day assets and liabilities
reprice at 1 % over their current rates, more liabilities
will reprice at the new higher rate than assets meaning
interest expense will rise faster than interest income.
The net additional annualized expense incurred if these
instruments rolled over would be $12,830. One quickly
N o r th w e s te r n B a n k e r, N o v e m b e r, 19 8 4

30
sees the importance of repricing gaps; in a volatile in­
terest rate environment, the larger the repricing gap
position, the higher the interest-rate risk.
We can now make the following statements:
Repricing gap equals rate-sensitive assets
minus rate-sensitive liabilities. A bank with
positive “gaps” will benefit from rising inter­
est rates, while being penalized by falling
rates. The reverse holds true for negative
“gaps.” In addition, the larger the “gap” posi­
tion for a given time period, the more vulnera­
ble a bank’s profits are to changes in interest
rates. Thus interest-rate risk is potentially
higher for larger “gap” positions.
Getting back to gap management, banks who want
to minimize interest-rate risk will try to maintain a re­
pricing gap as close to zero as possible by matching
assets and liabilities of similar repricing intervals.
As you can see, gap management can be a very use­
ful and important tool to reduce interest-rate risk and/
or liquidity risk. Morever, with the various microcom­
puter models available today, both maturity and re­
pricing gaps can be quickly measured making gap
management relatively easy to implement.
The main disadvantage of gap management is that
strict matching of asset/liability structures may be
detrimental to overall bank profitability. It may be ad­
vantageous for a bank to “sink” long-term funds into
short-term assets or vice versa, depending on various
movements of interest rates.
Another disadvantage to gap management is the
possible reduction of one type of risk at the expense of
increasing another. For example, let’s assume you are
in a “negative repricing gap” position, and interest
rates are expected to rise. To reduce interest-rate risk,
let’s assume you adopt a policy to issue variable-inter­

est rate loans only. Provided your loan customers
don’t leave your bank for another institution because #
of this policy change, you may be successful in reduc­
ing your negative gap position and, consequently, re­
duce your interest-rate risk. This results because more
assets have the potential to be repriced than liabilities.
But there is a “double-edged sword” to your policy •
change. You may have increased credit risk because a
variable-rate loan policy assumes your customers have
the ability to meet the increased interest payments if
rates rise. If rates rise rapidly (as they did in 1980-81),
your customers may be caught in a cash flow bind and •
unable to meet the increased payments.
Which Approach is Best?
As mentioned earlier, although the Pool-of-Funds
approach was the one most often used in the past, the ^
Gap Management approach is the predominant ap­
proach used today. Not only is it the most popular ap­
proach, but there are many microcomputer models
available to help financial institutions measure their
gap positions.
^
We believe that the goal-seeking capability of man­
agement science, the risk measurement of gap manage­
ment, and the hurdle rate aspect of the pool-of-funds
approach are all important. Our banks use a microcom­
puter ALM model which combines all of the advan- £
tages of these various approaches while eliminating
most of the disadvantages. The approach your bank
chooses depends on what you feel most comfortable
with and what makes the most economic sense from
the standpoint of implementation and use. Later in ^
this series, we will discuss microcomputer ALM
models and their application in financial institutions.
N ext M onth
Beyond Gap Management and Getting to the
“H eart” of Asset/Liability Management.
□ •

can expand the services we offer to
our customers by providing the
latest in cash management technol­
ogy,” said Stephen C. Holahan, vice
president of Cash Management for
Norwest Banks.
ORWEST Corporation, Min­
The FORTE system allows a cus­
neapolis, announced last month tomer to increase their investment
that it will install FORTE Financial opportunities as a result of more
Services System electronic banking timely and complete balance infor­
software for its cash management mation. Also, the system enables
customers.
commercial customers to access one
Norwest is the first financial orga­ source for all of their cash manage­
nization in the Upper Midwest to in­ ment information. Because FORTE
stall this system. The FORTE sys­ operates within the bank’s data pro­
tem provides a wide range of global cessing center, the need for clients
electronic banking and cash man­ to deal with third party vendors in
agement services to Norwest com­ obtaining cash management infor­
mercial customers. Initially, Nor­ mation is eliminated.
west will offer customer balance and
FORTE software, developed by
transaction reporting and wire Advantage Systems, Inc. of Wal­
transfer initiation through the tham, Mass., is designed to provide
FORTE system.
continuous normal processing opera­
“The new FORTE system pro­ tions, regardless of potential failure
vides us with a secure ‘electronic of hardware components. The sys­
window’ that allows our customers tem operates on the Stratus/32 com­
direct access to Norwest’s back of­ puter.
fice systems. With this system, we
Mr. Holahan said the FORTE

f

What’s New

N

N o rfor
th wFRASER
e s te r n B a n k e r, N o v e m b e r, 19 84
Digitized
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

system is expected to become opera­
tional by the middle of 1985.
*

*

*

#

EWLY available from Brandt,
N
Inc., Watertown, Wis., is the
Model 2751 Currency Scale. The •
Currency Scale is a compact, highly
reliable unit capable of verifying
strapped currency. The unit verifies
strapped, pre-counted money with
speed and accuracy without remov- ®
ing the strap from the pre-sorted
notes.
The Model 2751 Scale combines
the reliability of a mechanical scale
with the sophistication and control
of microprocessor technology. Sus­
pect straps are immediately identi­
fied by “over” and “under” signals.
The Currency Scale, which weighs
only 9 pounds, is 10 inches wide, 11
inches deep and 4 inches high, is
ideal for small work areas.
In 1982, Brandt announced the
addition of its vault and cash room
supply line. Because of huge de-

• Community bankers
identify major
• challenges ahead
• • spread management
• strategic planning
• non-interest income

©

Written especially for
T he N o rthw estern B anker

^

By JIM KOLTVEIT
Banking Industry Coordinator
McGladrey Hendrickson & Pullen
Rock Island, 111.
HAT are the major challenges facing community
W
bank management today?
According to our recent survey of 227 community

bank executives in 43 states, the three top concerns are
spread management, strategic planning and genera­
tion on non-interest income. These concerns are fol­
lowed closely by meeting increased competition, con0 trolling expenses and new product/service development.
What makes these findings even more significant is
the fact that the same first three issues also were given
top priority by the CEOs of the nation’s 2,000 largest
banks in a 1983 survey conducted by our international
# consulting firm, which is the nation’s largest regional
certified public accounting firm.
Community banks in this survey are defined as hav­
ing assets of $200 million or less, but a bank’s size and
the volume of its assets don’t seem to change the chal­
l e n g e s its executives face in the 1980s.
This is the third of our firm’s Community Banker
mands, the firm has expanded the
supply line to include the Security
• and Specialty Bag Line and Paper
Products for financial institutions.

Model 2751 Currency Scale from Brandt

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

31
Series studies, begun in 1980 to provide useful infor­
mation about the accounting and reporting practices
of community banks. The survey was last conducted in
1982.
Among the current survey’s other findings:
• More than 95 percent of the respondents (96.28%)
believe interstate banking will be a reality within five
years. Two years ago, only 77 percent of community
bankers held that belief.
• Nearly 75 percent of the respondents (74.79%)
believe, however, that interstate banking will not be
beneficial to the banking industry.
• Slightly more than half responded that deregula­
tion of interest rates has had a negative impact on
their banks. And virtually the same percentage expect
the long-term effects of interest rate deregulation will
also be negative.
To follow-up on findings from the 1982 study, this
survey also probed community bankers’ views on bank
regulators. Regulators received slightly better marks
in this year’s survey than they did two years ago.
Complete survey results have been published in a
brochure titled Community Bankers' View on Bank
Regulation, 1984. Copies are available through any
McGladrey Hendrickson & Pullen office.
□
□ McGladrey Hendrickson & Pullen serves more than 500 banks
across the U.S. from more than 75 offices located from coast-tocoast. The firm offers a full range of financial and management
consulting services.
MAJOR CHALLENGES IDENTIFIED BY BANKERS WERE:
Number of
Times
Mentioned

Percent

Spread Management.....................

106

21.03%

Strategic Planning.........................

8l

16.07%

Generation of non-interest income

77

15.28%

Meeting increased competition . . .

72

14.29%

Controlling expenses.....................

67

13.29%

New product/service development

60

11.91%

Marketing.......................................

37

7.34%

Other..............................................
T o tals.....................................

4
504

.79%
100.00%

HE 1984 fall and winter edition
T
of the Deluxe Computer Forms
catalog and reference guide is now

Companion business envelopes
matched with the appropriate De­
luxe forms are available through the
catalog.
The Deluxe Computer Forms cat­
alog includes an exclusive eightpage, pull-out, software/forms com­
patibility guide. The guide makes it
easy for businesses to identify the
Deluxe forms guaranteed to be com­
patible with their software.
Any person interested in receiv­
ing the free Deluxe Computer Forms
catalog and software compatibility
guide can call Deluxe toll-free at

available from Deluxe Computer
Forms, a division of Deluxe Check
Printers, Inc., St. Paul, Minn.
The 32-page, free, full-color cata­
log features checks, invoices, state­
ments, computer stationery and
other forms that businesses can cus­
tom design with special formats, col­
ors, logos, typefaces and other fea­
tures. The catalog also shows sam­
ples of Deluxe’s standard-format
forms. Deluxe makes 100 standardformat forms, which are compatible
with more than 400 bookkeeping WHAT’S NEW . . .
and accounting software packages. (Turn to page 51, please)

N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

32

St. Louis to Host I BA Conference

bility, American Express
O
Company, New York.
10:15 “ Future M arkets: From
Families to Households”—
Roger B. Seibert, vice presi­
dent, Security Pacific Na­
tional Bank, Los Angeles.
11:00 “ Increasing Bottom Line
Results’’—James L. Greene,
chairman, Bank Manage­
ment Resources, Inc., Chi­
cago.
11:45 Conference wrap-up and ad­
journment.
□

HE ILLINOIS Bankers Asso­
T
ciation Annual Meeting and
Bank Management Conference will

Aurora National Joins
hi
Lender Commitment Program

C.C. Wilson, chmn. & c.e.o.,
Rock Island
W.J. Hocter, exec, v.p., Chicago

be held November 28-29 at Marriott’s
Pavilion Hotel in St. Louis. Over
400 CEOs and senior bank man­
agers are expected to attend the con­
ference and hear presentations on a
wide range of topics, including dere­
gulation, the economy, the multi­
bank holding company environment
and the future of independent com­
munity banks. The IBA annual
meeting will feature an address by
IBA President Charles C. Wilson,
plus election of association officers
for 1985 and the introduction of
next year’s board of directors. The
program schedule follows:
Wednesday, November 28
A.M.
8:00 Registration.
9:00 First general session.
Presiding: Bank Manage­
ment Committee Chairman
Harry E. Cruncleton, presi­
dent, Bank of Belleville.
Keynote Address— “The
Economics of Reality’’— Dr.
Barry Asmus, Boise State
University, Ida.
9:45 “Tax Reform Bill 1984: The
Price of Having Withhold­
ing on Interest Repealed?”—
Alan Alport, tax partner,
Arthur Anderson, Chicago.
11:00 “Regulatory Update”—Bill
Bosies, senior federal admin­
istrative counsel & director
of federal agency relations,
ABA.
P.M.
12:15 Luncheon and IBA annual
meeting.
Presiding: Charles C. Wil­
son, chairman & CEO, First
National Bank of the Quad
Cities, Rock Island, and
IBA president.
Digitized
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Federal Reserve Bank of St. Louis

2:30 Concurrent breakout ses­
sions.
“Community Bank Viabili­
ty ”—Panel: Lyle P. Camp­
bell, chairm an, Peotone
Bank & Trust Company;
James L. Winningham, pres­
ident & CEO, State Bank of
Arthur, and Gordon D.
Honegger, president, Mor­
ton Community Bank.
“ Pricing Bank Stock’’—
Jerry Swords, president,
Swords & Associates, Kan­
sas City, Mo.
“Operating as and Existing
Under a Multi-Bank Hold­
ing Company”—Panel: Gil­
bert E. Coleman, president
& CEO, Security Bank &
Trust Company, Mt. Ver­
non; James B. Watt, presi­
dent, chairman & CEO, Mid
America Bank Systems,
Inc., Fairview Heights; Den­
nis Hackett, president, Com­
munity State Bank of Sene­
ca, and Gregory Lykins,
president, First Busey Cor­
poration, Urbana.
3:45 Breakout sessions repeated.
Thursday, November 29
A.M.
7:30 Continental breakfast.
8:00 Early Bird Sessions.
“Pricing Bank Services”—
Mike Chy, president, Per­
sonal Motivation Institute,
Flossmoor.
“ Asset/Liability Manage­
ment”—^Wayne Grove, chair­
man, State Bank of Cuba.
“ Microcomputers” —David
Kuhl, president, City Bank
of Champaign.
9:00 Second general session.
“ Consumerism: Im plica­
tions and Opportunities for
Financial Services”— Mere­
dith Fernstrom, senior vice
president/Public Responsi-

Aurora National Bank has allo­
cated $2.5 million for economic de­
velopment as part of the Illinois
Lending Commitment Program.
As part of the national Small Bus­
iness Revitalization effort, Illinois
has received commitments totaling
more than $1 billion from nearly 300 f
lending institutions. Administered
through the Illinois Department of
Commerce and Community Affairs,
these funds will provide long-term fi­
nancing to healthy small- and medi- f
um-sized firms seeking to expand or
locate in Illinois.

For Radio Commercial
W.N. Lane Inter financial, repre­
senting the Lane Bank group of
Northwest National Bank of Chica­
go, Northbrook Trust & Savings #
Bank, Lake View Trust & Savings
Bank of Chicago and Pioneer Bank
& Trust Co. of Chicago, received top
honors in the international Bank
Marketing Association’s Best o f#
Radio Competition.
The 60-second radio commercial
entitled, “Business Banking Double
Talk” was produced in 1983 by Mandabach & Simms, the bank’s agency, #
and continues to air on a number of
Chicago radio stations. The adver­
tisement stresses the banks’ con­
tinuing commitment and ability to
serve the financial needs of Chicago •
area businesses.

Elected to Board
At UnibancTrust, Chicago

•

John W. Puth, chief executive of­
ficer and chairman, Imperial Clevite,
Inc., has been elected a director of
UnibancTrust Company and Uni- ^
bancorp, Inc., Chicago.

33

Valley Acquisitions Told

Marine Corp to Buy
Independence Bank Group
George R. Slater, chairman, CEO
®and president of The Marine Corpo­
ration, and W.J. Morrissey, chair­
man and CEO of Independence
Bank Group Inc., Waukesha, have
—announced that an agreement in
^principle has been reached for Ma­
rine Corp to purchase the Indepen­
dence Bank Group. If completed,
the deal will be the largest combina­
t i o n of bank holding companies in
Wisconsin’s history.
The transaction, valued at $52
million, has been approved by the
board of directors of both compa­
gnies. Specific terms of the transac­
tion have not been made final. How­
ever, the proposal suggests that In­
dependence shareholders would re­
ceive $33 in cash per share or 1.188
^shares of Marine’s $3 cumulative
preferred stock.
The Marine Corporation is a Wis­
consin bank holding company with
43 Wisconsin offices and additional
^offices in Chicago, Mexico City and
Nassau. The Corporation has six
bank-related subsidiaries engaged in
trust related services, data process­
ing, venture capital, leasing, credit
•c a rd operations and mortgage bank­
ing. Based on deposits, the Corpora­
tion’s lead bank, Marine Bank, N.A.,
is the second largest bank in the
state of Wisconsin.
•
Independence Bank Group, Inc. is
a Waukesha based bank holding
company with 17 banking offices in
southeastern Wisconsin engaged in
retail, mortgage and commercial
•banking, as well as trust manage­
ment activities.
The acquisition is pending state
and federal regulatory approval.

Gus A. Zuehlke, chairman of Val­
ley Bancorporation, Appleton, has
announced that approval has been
received from the Federal Reserve
Board for affiliation of The First Na­
tional Bank of Rhinelander and
Bank of Oregon with Valley. The
Rhinelander affiliation was to be
consummated on October 31 and the
Oregon affiliation, which calls for an
tions, of First Interstate Manage­ exchange of Valley stock for Oregon
ment Services of Wisconsin, Inc., stock, will be completed in late No­
Sheboygan, a subsidiary of First In­ vember.
As of mid-year, The First Na­
terstate Corporation of Wisconsin.
tional Bank of Rhinelander, with a
branch in Lake Tomahawk, had as­
sets of $52.4 million. Bank of Ore­
gon, located in Dane County, had as­
sets of $34.3 million on that same
date.
In a joint announcement by Mr.
Zuehlke and Rowland J. McClellan
president and CEO of BANCWIS
Corporation, Janesville, the board of
BANCWIS has accepted Valley’s
R. HAENDEL
C. MARVIN
proposal to acquire all of the out­
Mr. Haendel formerly was a finan­ standing shares of BANCWIS Cor­
cial services representative with the poration. Under the proposal, hold­
Marine National Exchange Bank of ers of BANCWIS Corporation com­
mon stock would receive at their
Milwaukee.
Mr. Marvin has served as sys­
tems and programming manager WISCONSIN NEWS . . .
(Turn to page 44, please)
since 1980.

Wisconsin Bankers Contribute to
Barneveld Tornado Disaster Fund

Two Promoted in Sheboygan

THE Barneveld Tornado Disaster Relief Fund got help from Wisconsin bankers attending a
Bank Security Conference in Green Bay in September. Ted Arneson (center), pres., Barne­
veld State Bank, accepts the $1,530 check from Curtis Schwerin (right), chmn., WBA Bank

Rick Haendel has been promoted
to vice president, marketing, and
Craig Marvin has been promoted to
®vice president, systems and opera-

Security Committee and ass’t. v.p. and sec. off., Commercial and Savings Bank, Monroe.
Mr. Arneson and Gary S. Harrup, pres, and sec. off., The Peoples State Bank, Mazomanie,
shared their experience in putting the Barneveld Bank back in business following near total
destruction by the June 8 tornado. The contribution represented $10 from each paid regis­
trant at the meeting. Michael Lomperski, assoc, dir. of WBA is at left.


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Federal Reserve Bank of St. Louis

N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

34

We extend more than credit.
We extend ourselves.
We believe it’s the long-term
relationship that counts. The kind
of relationship that develops
because we keep in touch with
you, and travel to your part of
the country. Learning about your
community —its Main Street

business, seasonal fluctuation,
and economic foundation —is
important to us. In this way, we
can better help you meet tne
needs of your community with
overline or liquidity loans, and
other services. Extending

ourselves for you is our way of
life. Wherever you are, whenever
you need us. Call us anytime for
loan assistance and all Corre­
spondent Banking services at
612/341-6561.

Marquette N a i M M

M em ber FDIC

Correspondent Banking

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Federal Reserve Bank of St. Louis

Three Elected in Elbow Lake
^
w

^

^

Betty Lou Cravens has been
elected vice president and cashier;
Ginger Ricks has been elected vice
president, and Janice Ellingson has
been elected assistant vice president
of the First National Bank of Elbow
Lake.
Ms. Cravens’ responsibilities will
include funds management, person­
nel, auditing and security.
Ms. Ricks responsibilities will in­
clude lending, loan analysis and documentation, and compliance.
Ms. Ellingson will directly super­
vise the electronic data processing,
and the teller & bookkeeping func­
tions of the bank.

Elected in Hopkins
^

^

0

•

The board of directors of First
Bank Hopkins has elected Mark
M agness com­
mercial lending
officer at the
bank’s St. Louis
Park Office.
Mr. Magness
began his bank­
ing career with
First Bank Hop­
kins as a First
B ank S y stem
M. MAGNESS
professional de­
velopment trainee in April of 1982.
In that position, he has worked in
the commercial, sales finance, personal banking, and real estate de­
partments of the bank.

One Joins Chaska Bank
•

James T. Gowan, president of the
First National Bank of Chaska, has
announced the addition of Ronald G.
Brieher to its staff as assistant vice
president and manager of the mort® gage and real estate department. In
the past 13 years, Mr. Brieher has
held a managerial position in the in­
stallment loan department of Valley
Bank & Trust in Grand Forks,
® North Dakota, as well as having


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Federal Reserve Bank of St. Louis

been assistant vice president of the
real estate department for First
Bank Bismarck.

35
Roger M. Janikowski to vice pres­
ident and manager of the commer­
cial lending area. He began his bank­
ing career in 1978 with First Bank
Plymouth as manager of personal
banking and is a graduate of Winona
State University.
Richard R. Nelson to vice presi­
dent and business development
manager. He began his banking ca­
reer with First Bank Duluth in 1971
in the installment lending area, and
recently was the manager of First
Bank Produce, St. Louis Park Of­
fice. He is a 1971 graduate of the
University of Minnesota.

Appointed in Richfield
Barbara Zvorak has been ap­
pointed cashier of Richfield Bank &
Trust Co. In her
new p o sitio n ,
she will be re­
sponsible for re­
tail operations,
as well as serv­
ing on several
managem ent
co m m ittees
within the bank.
Ms. Zvorak
B. ZVORAK
has been with
the bank the past 19 years and she
has served as an officer the past five
years.

New Name for Dorset Bank
Mark Hewitt, president of Farm­
ers State Bank of Dorset, announced
last month that the bank has offici­
ally changed its name to Northwoods Bank of Minnesota, with of­
fices in Dorset, Park Rapids and
Nevis.
According to Mr. Hewitt, only the
bank’s name will be changed. There
will be no change in ownership.

Five Advanced in Plymouth
The board of directors of First
Bank Plymouth have announced the
following man­
agement changes:
James Cory to
senior vice presi­
dent and cashier.
He began his
banking career
in 1970 w ith
First Blooming­
ton Lake Na­
tional Bank as a
J. CORY
m anagem ent
trainee. He also is currently senior
vice president and cashier at First
Bank Hopkins.

IÄ ,
S.M. HASTAD

L.M. PETERSEN

Sarah M. Hastad to assistant vice
president and manager of retail
banking. She began her banking ca­
reer in 1966 at First Bank Minne­
apolis, and most recently was the as­
sistant manager and personal bank­
ing officer for First Bank Hopkins,
Minnetonka Office.
Lynn M. Petersen to operations
officer. She began her banking ca­
reer with First Bank Edina in 1978
and has been in the operations area
at First Bank Plymouth since 1980.

Approval Received For
Crookston/Shelly Merger
The Comptroller of the Currency
recently approved the proposed mer­
ger of First American Bank of
Crookston and State Bank of Shelly
with The First National Bank of
Crookston. The merger will be under
the charter of The First National
Bank of Crookston and the new title
of the bank will be The First Ameri­
can National Bank of Crookston.
N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

36

Twin Cities*^
David A. Baumgarten has been
promoted to senior vice president at
First Bank Saint
Paul and will as­
sume responsi­
bility for the spe­
cial industries
group. Also at
F ir s t
Bank,
Pamela L. Clay­
ton has been pro­
moted to vice
president for hu- D A BAUMGARTEN
man resources

P.L. CLAYTON

A.J. SMITH

the appointment by the bank’s
board of Kathy R. Welle to vice
president, retail division.
Ms. Welle held the title of vice
president and cashier at Marquette
State Bank of Columbia Heights
prior to joining Marquette National
Bank at University.
* * *
Ernest C. Pierson has been elected
chairman and continues as chief ex­
ecutive officer while John R. Silseth
has been elected president, chief op­
erating officer and a director of Norwest Bank Midland, N.A. These
management changes became effec­
tive October 1 .
Mr. Silseth began his Norwest ca­
reer in 1952 at the Lake Street office
of Norwest Bank as an assistant
vice president for commercial len­
ding and business development. He
was transferred to the main office in
1969 as assistant vice president of
commercial lending. Mr. Silseth ad-

and Arthur J. Smith has joined the
bank as vice president of capital
markets and treasury.
Before moving to First Bank
Saint Paul, Mr. Baumgarten held
several management positions at
First Bank Minneapolis, most re­
cently as vice president and division
head of the manufacturing group.
Ms. Clayton has been with First
E.C. PIERSON
J.R. SILSETH
Bank Saint Paul for 15 years, most
recently as assistant vice president
for human resources.
vanced to vice president and man­
Prior to his current position, Mr. ager of their North American office
Smith served as assistant treasurer in 1971 and was named executive
for the Dayton Hudson Corporation vice president and a director of the
and as director of corporate finance Norwest Bank Rochester in 1976.
and assistant treasurer for the Pills- He was named president and chair­
bury Company.
man of Norwest Bank Old St. An­
* * *
thony in 1979 where he currently
serves as president and chief execu­
Larry Anderson, president of tive officer.
Marquette National Bank at Univer­
Mr. Pierson began his Norwest ca­
sity, Minneapolis, has announced reer in 1965 at Norwest Bank Mid­
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Federal Reserve Bank of St. Louis

land as assistant vice president for ^
commercial lending and advanced to
vice president, business develop­
ment, in 1967 and head of commer­
cial lending in 1970. He was pro­
moted to executive vice president ^
and elected a director in 1975. Mr.
Pierson was elected president and
chief executive officer on October 1 ,
1982.
* * *
illlt
James A. Russell, vice president of
American National Bank of St. Paul,
has been ap ­
pointed manager
of the correspon­
dent banking de­
partment.
Mr. R ussel
joined American
earlier this year
w ith over 20
years of corres­
m
pondent banking
J.A. RUSSELL
experience.
In addition, Terry Hoffman,
member of the Minnesota Public
Utilities Commission and life-long
resident of St. Paul, has been elected
to the bank’s board.
* * *
Richard L. Kuxhausen has been
named assistant vice president, re- £
sponsible for business development at
the Federal Reserve Bank of Minne­
apolis.
Mr. Kuxhausen, 41, joined the
bank in 1982 as an account manager jd
and was named marketing develop­
ment manager in 1983.

* * *
First Bank System Inc. recently
announced several advancements
and additions. Duane E. White has
been elected senior vice president of
corporate development and strate-

FIRST.
THE GOOD NEW S
Two F irsts m ake
a force in correspondent banking.
First Bank Minneapolis and First Bank Saint
Paul Correspondent Banking Departments have joined
forces to become First Bank Correspondent Banking.
We combined all the resources of two of the largest
correspondent banks in the region to create the newest,
biggest and most customer-driven correspondent
in the Upper Midwest.
What does that mean to you? It means you
can draw on the largest credit resources of any corres­
pondent in the Upper Midwest. It means you can build
a solid banking relationship with the largest staff of
professional calling
officers in the area. And it
means you can rely on
the resources of our
banking officers to solve
your specialized, multi­
bank, agricultural and
non-credit needs.
We reorganized to
fit the changing banking
world. You still need
regular contact with our
calling officers for bank
stock financing, standard
overlines and other credit
services, so we left that side of our organization
unchanged. But, you also needed more and more advice
about the rapidly changing world of deregulated
banking. And so we’re giving it to you.
We created three new specialty divisions within

our expanded correspondent department: A MultiBank Ownership Division, a Non-Credit Products
Division and an Agriculture Production Credits Division.
All of our specialty banking officers are experts in their
own area a n d in correspondent banking. And that
means that they, too, can operate directly with you on a
regular basis, when you need them.
Also, First Bank Correspondent Banking officers
have instant access to all of the resources and expertise
of First Bank Minneapolis and First Bank Saint Paul.
So you can get the expert banking advice you need
whether it’s in inter­
national banking, consult­
ing services, security
sales and safekeeping, SBA
loans, leasing, and much
more. We even have an
entire division that
specializes in financial
services for the new highgrowth, high-technology
and service industries.
So, when you need
correspondent banking
services, talk to us. At
First Bank Correspondent
Banking you don’t have to go around in circles to
get to the experts. We have the credit you need and the
technical advice you have to have to stay profitable
in today’s ever changing world of banking.
At First, good news is all you get.

First Bank

Cor^pondmt
First Bank Minneapolis

First Bank Place
Minneapolis, MN 55480
(612)370-5474


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Federal Reserve Bank of St. Louis

First Bank Saint Paul

332 Minnesota Street
St. Paul, MN 55101
(612) 291-5585

Members FDIC

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Federal Reserve Bank of St. Louis

1

Agriculture has changed
through the years,
and so has Om aha National.

I

But we haven’t forgotten our roots.
The territory we call home is the center
of America’s agricultural economy. And
our advanced technology and innovation
make America’s ag production capacity
the highest in the world.
Omaha National has kept pace with the
growing needs and innovation in agricul­
ture, making us one of the nation’s top
lenders in the field. We assist correspon­
dent banks in furnishing capital for all
kinds of operations — from row crops to
large feed lots — from corn and hogs
in Iowa, to potatoes in Idaho, to cattle­
feeding in Kansas and Nebraska.
Our officers know as much about live­
I

stock and crops as they do about
banking. They were raised on farms
and ranches themselves. Their formal
education stressed agriculture as much
as finance. Their understanding of both
fields enables them to work with you in
providing farmers the resources they
need to be fully productive.
Learn how Omaha National can help
your bank serve the interests of
agriculture in your area. Call your
correspondent bank representative at
402-348-6565 or toll free in Nebraska
1-800-642-9305; outside Nebraska
1-800-228-9175.

We’re your natural resource for agricultural lending.

Omaha National
A FirsTier Company
Omaha National Bank
17th & Farnam Streets
Omaha, Nebraska 68102

EQUAL OPPORTUNEY

Member FDIC

r i f c t -,

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Federal Reserve Bank of St. Louis

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40
M in n e s o ta N e w s
gic planning. Promoted to vice presi­
dent were Cynthia N. Armstrong, fi­
nancial reporting and accounting,
and Laurel J. Hillier, financial sys­
tems. Catherine Whitaker Van Velzen has joined the staff as vice presi­
dent and manager of human re­
sources for the financial services di­
vision.

staff as vice president of mass mar­
keting and life insurance.
Mr. Medo previously was with
CIGNA, where he has been since
1976. Mr. Schweiger joins FBS from
ITT Life where he has been the insti­
tutional sales director since 1981.
* * *
St. Anthony Park State Bank has
announced the election of Charles A.
Hannema as vice
president.
Mr. Hannema
received a bache­
lors degree in
economics from
Wheaton College
in Wheaton, Illi­
nois, and an
MBA in finance
from the Univer­
sity of Minneso­
C.A. HANNEMA
ta in 1984.
Most recently, Mr. Hannema held
the position of commercial banking
officer and branch manager of First
Bank St. Paul’s Shoreview office.
* * *

L.J. HILLIER

C.W. VAN VELZEN

Mr. White most recently was with
the Chicago office of McKinsey &
Company, where he was an engage­
ment manager in the financial ser­
vices area. He also was associated
with Braxton Associates, Inc. in
Boston, and the Comptroller of the
Currency, Chicago.
Ms. Armstrong will continue as
assistant controller and manager of
reporting, a position she has held
since 1982. Prior to joining FBS, she
was with the Minneapolis/St. Paul
office of Ernst & Whinney.
Ms. Hillier joined FBS in 1982 as
an assistant controller and previous­
ly was with Wil-Rich, Inc., Wahpeton, North Dakota, as vice president
and controller.
Ms. Van Velzen most recently
served as an area m arketing
manager for Burger King Corpora­
tion. She joined the human re­
sources division of Burger King in
1980 and prior to that time held po­
sitions in human resources for Tar­
get Stores and Soo Line Railroad.
* * *
FBS Insurance, Minneapolis re­
cently announced that Dennis J.
Medo has been named vice president,
personal lines mass marketing, and
Kenneth Schweiger has joined the
N o r th w e s te r n B a n k e r, N o v e m b e r, 19 8 4


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Federal Reserve Bank of St. Louis

First Bank Minneapolis recently
announced several additions to the
b a n k ’s s taf f.
Michael
C.
S n a v e ly
has
joined as vice
president in the
international
banking group;
John M. Murphy,
Jr. has joined as
a managing di­
rector of first as­
se t
manage-

J.M. MURPHY, JR.

ary of Dain Bosworth, for eight
years, most recently as senior vic^
president. Mr. Knowlton is chief e ^
ecutive officer at George A. Hormel
& Co. as well as chairman of the
board.
First Federal Savings, Minneapo­
lis, has announced that J. Bruce
Jacobson has joined the association
as a senior vice president in chargé
of commercial banking. He will be
responsible for implementing and di­
recting the commercial banking acti­
vities at First Federal.
Before joining First Federal, M®
Jacobson spent nearly 20 years in
the commercial banking field, most
recently as vice president-loan ad­
ministration at Norwest Corpora­
tion. In this position, he was respor#
sible for developing all commercial
banking policies and procedures for
the 86 member banks of the Norwest
system. Prior to that he spent over a
dozen years directing the commeif
cial, real estate and consumer bank­
ing departments at Norwest Bank
Central, in Minneapolis, and Nor­
west Bank Fargo. As a senior vice
president at both banks he was r ^
sponsible for directing all functions
of these departments.
* * *
Three were recently promoted to
officer status at First Bank Robbinsdale: Irene
Keske, personal
banking; KenI
neth J. Peulen,
commercial bank­
ing, and Marlene
J. Berg, retail
banking, teller
I
manager.
Ms.
Keske
began her career
|I. KESK
e
KESKE
with First Bank

R.L. KNOWLTON

ment, and Richard L. Knowlton has
been named to the board.
Most recently with Continental Il­
linois National Bank, Chicago, for
18 years, Mr. Snavely will manage
K.J. PEULEN
M.J. BERG
the Latin America and Asia/Pacific
division of First Bank Minneapolis. Minneapolis and joined First Bank
Mr. Murphy had been with In­ Robbinsdale in 1961. Mr. Peulen
vestment Advisors, Inc., a subsidi­ started his career in 1974 at Bank o ^

M in n e s o ta N e w s

41

Minneapolis and Trust Company and
•m ost recently was commercial lender
at the First Bank Minneapolis, Ply­
mouth Office. Ms. Berg’s career in
banking started in 1959 at the Ogilvie
State Bank. She joined the Robbins• ia le bank in 1980.
* * *
At American State Bank of Bloom­
ington, Robert J. Facente, Jr. has
#been elected exec­
utive vice presi­
dent; Joyce C.
Lambrecht was
named assistant
Ovdce president
and cashier, and
Joseph Rubbelke
was named assis­
tant loan officer.
I . .Mr.
Facente R.J.
_ . FACENTE, JR.
m
. .
joined American

First Bank Place, Duluth.

First Bank Place Grand Opening Held

A

RIBBON cutting ceremony was
held October 15 to mark the
grand opening of Duluth’s First
Bank Place. Participating in the
brief program was Larry Gilb, presi­
dent and CEO, First Bank, Duluth,
Mayor John Fedo, and Darrell
Knudson, vice chairman, First Bank
System. October 15 also marked the
J.C. LAMBRECHT
J. RUBBELKE
75th anniversary of First Bank Du­
#State Bank in 1976 as a vice presi­ luth’s national bank charter.
Construction of First Bank Place,
dent. He is a 1971 business adminis­
tration graduate of the University of located on the corner of 2nd Avenue
Minnesota. Ms. Lambrecht joined the and West Superior Street, began
bank in 1973 and last December was late in 1982. It was built almost
•hamed assistant vice president and completely by local contractors and
manager of the newly opened Coun­
tryside Office. Formerly an instal­
United Financial, headquartered
ment loan collector, Mr. Rubbelke in Rochester, has been in business
joined the bank in 1983.
since 1910 and will be celebrating its
9
* * *
75th anniversary next year. It has
an asset size of $430 million and has
James R. Spicola has been elected 16 offices located throughout south­
to the board of directors of Norwest eastern Minnesota.
Bank Minneapolis.
Mr. Barry has been in commercial
® Mr. Spicola is president and chief banking for the past 25 years. He is
operating officer of Cargill, Inc., a graduate of St. Thomas College
where he has been since 1954.
and the Graduate School of Bank­
* * *
ing, University of Wisconsin.
® William H. Sipple, president and
chief executive officer of the United
Financial Savings Bank, St. Paul,
announced the opening of an office
in the Minnesota Mutual Life Cen­
t e r , St. Paul. John E. Barry has been
elected senior vice president;
Thomas J. Resch, vice president;
Dale J. Beastrom, commercial bank­
ing officer, and Gerrie Higgins, of­
f i c e manager.
J.E. BARRY
T.J. RESCH

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with local labor, and uses Minnesota
granite and energy efficient tinted
glass. Highlighting the building is a
three-story glass-enclosed atrium.
The bank also houses a permanent
art collection, featuring works of re­
gional artists that include weaving,
crafts, the traditional, representa­
tive, contemporary and modern.
First Bank Duluth occupies six
floors of the complex, which will be
connected to the skywalk system,
including passage to Town Park
parking facility. Entrances to First
Bank Place are on Superior Street,
Second Avenue West and Michigan
Mr. Resch has been in commercial
banking for 13 years and is a gradu­
ate of the University of Minnesota
and Stonier Graduate School of
Banking. Mr. Barry and Mr. Resch
both were previously associated
with American National Bank, St.
Paul.
Mr. Beastrom is a graduate of St.
John’s University, and Mrs. Hig­
gins has been associated with the
banking industry for 10 years.

D.J. BEASTROM

G. HIGGINS

N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

42

M in n e s o ta N e w s

LEFT— Enjoying the conference reception were: Charles Burke, pres., BankWest, Pierre, S.D., and Mary; Carl Pohlad, pres., F&M Mar­
quette, and Eloise, and Bill Kirchner, chmn., Richfield Bk. & Tr., Richfield, Minn. RIGHT—Welcoming guests to the reception were: Lance
Green, mktg. dir.; Don Pederson, v.p., and Joan; and Jack Campion, v.p.

F&M Marquette Hosts Conference
By STEVE BURCH
Associate Publisher

and then lowering to 12 % by yearend 1986.
Kevin Costley outlined the advan­
&M MARQUETTE National tages of owning 100% of a bank
Bank President Carl Pohlad wel­ holding company in a very technical
comed over 150 bankers from a six presentation entitled, “How to Uti­
state area to the bank’s annual Cor- lize Your Bank Holding Company.”
respondent/Investment Conference A partner in the Lindquist & Venheld in Minneapolis last month. Mr. num Law Firm, Mr. Costley is recog­
Pohlad explained the conference nized as an expert in the fields of
theme—Perspectives ’84—Banking
on Performance and Profitabilityin his greeting. “ In this complicated
time for banks and bankers, perspec­
tive may be the foundation of our fu­
ture success. A broad perspective in­
creases our understanding of the
present regulatory situation and im­
proves our ability to deal with the
nuances of today’s economic reali­
ty.”
Noted economist David Jones, se­
nior vice president of Aubrey G.
Lanston & Co., got the conference
off to an optimistic beginning with
his economic forecast. He admitted David Jones, author of the Lanston Finan­
that he remains “amazed” at the cial Letter and senior vice president with
strength of the current recovery. He Aubrey G. Lanston & Co., presented some
also feels that the momentum of the very optimistic forecasts.
record breaking real growth will
carry the recovery through 1985 and mergers, acquisitions and bank reor­
well into 1986. He credits the mone­ ganization. He offered several
tary policies of Federal Reserve “squeeze out” techniques that could
Board Chairman Paul Volcker for be used in gaining control of a hold­
the reduction of the U.S. inflation ing company from minority stock
rate from 13% to the current 3.8%. holders, such as reverse stock splits
He added that the favorable en­ and the creation of phantom bank
vironment of dropping oil prices, mergers. However, he warned the
lowered raw material costs, and sig­ bankers that regulators may not
nificant accomplishments in wage always approve of plans designed to
concessions and increased produc­ eliminate a minority stock holder.
tivity combine to pave the way for
Switching to a completely differ­
the inflation rate to remain below ent subject matter, Dr. James Rein5% for the next few years. He closed ersten addressed wellness, health
by forecasting an 113A% prime by promotion and the employee health/
year-end, rising to 13% in mid 1986 performance equation. A critic of

F

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rising health care costs without an<
improvement in actual health bene­
fit, Dr. Reinersten pointed out that
51% of the causes of death in the
“Top Ten Causes of Death” cate­
gory can be controlled by improved {
life style and health habits. “Statis­
tics show that 98% of all men 45
years of age with good health habits
will live to age 55. However, this
number drops to 80% for those with!
poor health habits.” He added that
more people under the age of 45 die
from automobile accidents than
from all other causes combined.
“Buckle Up! The use of seat belts (
provides an instantaneous result in
the improvement of your health
care.” He closed by urging the
bankers to promote good health
habits among their employees J
“Health promotion leads to a pro­
cess of cultural change through
which individuals become increas­
ingly likely to choose healthy life
style options.”
*
Concurrent workshop sessions
were conducted during the confer­
ence and the scheduling permitted
attendance at three of the four ses­
sions. The topics covered were: 1)*
New Approaches to Bond Manage­
ment; 2) IRAs/Profit Sharing Pro­
grams; 3) Asset/Liability Manage­
ment; An Action Orientation, and 4)
Emerging Trends in the Agricul­
tural Economy.
The bankers also enjoyed a dinner
dance which featured Mr. Pohlad
changing hats from his position of
bank president to owner of the Min­
nesota Twins. He then took on the
role of forecaster and predicted a
very favorable year for the Twins in
1986 and invited all the bankers to
buy season tickets.

M in n e s o ta N e w s

43

LEFT— 1984-85 MBA District officers include: Dist. 3 Pres.—Arvid Evensvold, pres., First Natl. Bk., Hastings; Dist. 3 Past Pres.—Jim
Graham, pres., Norwest Bk., Stillwater; Dist. 4 Pres.— Bob Torvik, pres., First Bloomington Lake Natl. Bk.; Dist 4 Past Pres.— Donavon
Fisher, pres., The Roseville Bk.; Dist. 5 Past Pres.—Jim Hearon, pres., Natl. City Bk., Minneapolis, and MBA Exec. V.P. Truman Jeffers.
^R IG H T — MBA Treas. Scott Jones, pres., Goodhue Natl. Bk., Red Wing; MBA Pres. Galen Pate, pres., Signal Hill St. Bk., St. Paul; Dist. 1
w Pres. Don Meiners, pres., Eitzen St. Bk.; Dist. 1 Past Pres. Dennis Cleveland, pres., Town & Country St. Bk., Winona, and MBA Vice Pres.
Clint Kurtz, pres., Citizens St. Bk., Norwood.

MBA Holds District Meetings
By STEVE BURCH
Associate Publisher

throughout
the state recently attended the
B
annual series of district meetings
ankers

from

sponsored by the Minnesota Bank­
ers Association. The half-day ses­
sions included a review of state and
^federal legislative issues, an exami­
nation of the 1984 Bankruptcy
Amendments, general business
meetings and the election of 1984-85
district presidents.
^ MBA General Counsel John Jackson identified specific issues which
the MBA Legislative Committee ex­
pects to review in preparation for
the 1985 legislative session. He en0 couraged the bankers attending the
meetings to contact committee
members or district presidents with
any comments or suggestions they
might have.
# Perhaps the most controversial
piece of legislation expected to sur­
face lies in the anticipated return of
an interstate banking bill. This re­
mains a priority with Minnesota
♦ Governor Perpich and it is expected
that he will once again push for
some form of regional reciprocal in­
terstate banking.
The number of recent bank acqu­
is itio n s by merger paves the way for
a proposal to expand the state’s de­
tached facility law. It is expected
that new legislation might call for
an expansion from two to five in the
•n u m b e r of detached facilities and an
increase from 25 miles to 50 miles in
the distance limitation.
The MBA Legislative Committee
will also consider introducing a pro^p o sal calling for the titling of water­

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craft. The proposed legislation sets
up a system under which the owner
of watercraft must apply to the De­
partment of Natural Resources for a
certificate of title under a system
similar to that for motor vehicles.
Mr. Jackson cautioned that the
section of the Uniform Commercial
Code in Minnesota which provides
special protection for agricultural
lenders whose loans are secured by
farm products may come under at­
tack during the upcoming session.
This could potentially further erode
the protection of agri-lenders. He
also called attention to a bill spon­
sored by the Minnesota Funeral Di­

rectors Association. This bill seeks
the authority to use a master trust in
which funds donated in connection
with prearranged funeral plans can
be placed. He cautions that this rep­
resents a draw on deposits from
local banks and noted that a similar
fund in Pennsylvania has grown to
$7 million.
MBA Executive Vice President
Truman Jeffers followed by offering
the bankers an update on the status
of the Garn Bill in the U.S. Senate.
That proposed legislation has since
been thwarted by House Banking
Committee Chairman St Germain.
(See N o r t h w e s t e r n B a n k e r Week­
ly Newsletter Octoberl.)
MBA President Galen Pate, presi-

M in n eso ta Bankers A sso ciatio n
1984-85 D istrict O fficers
District 1

Pres. —Donald Meiners, Eitzen State
Bank; Vice Pres.—Michael Halvorson,
First National Bank, Waseca; Seer./
Treas.—Harvey Fossum, Goodhue State
Bank.
District 2

Pres.—Charles Greentree, Citizens
State Bank, Silver Lake; Vice Pres.—
Robert Barsness, Prior Lake State Bank;
Seer./Treas. — Kermit Mahlum, First Na­
tional Bank, St. Peter.
District 3

Pres.—Arvid Evensvold, First National
Bank, Hastings; Vice Pres. —Kenneth
Nelson, Drovers First American Bank,
South St. Paul; Seer./Treas.— Martin
Chorzempa, Richfield Bank & Trust Co.
District 4

Pres.—Robert Torvik, First Bank Lake,
Minneapolis; Vice Pres.—Lawrence An­
derson, Marquette National Bank at Uni­
versity, Minneapolis; Seer./Treas. — E.
Roger Cunningham, North Star State
Bank, Roseville.
District 5

Pres. —Richard

Klingen,

Norwest

Bank St. Paul, N.A.; Vice Pres. —Ernest
Pierson, Norwest Bank Midland, Min­
neapolis; Seer./Treas. — Dale Hanson,
First Bank St. Paul.
District 6

Pres.—Wallace Young, First State
Bank, Onamia; Vice Pres.—Wesley
Geurkink, Princeton State Bank; Seer./
Treas. — Dale Emmel, First Bank Sauk
Centre.
District 7

Pres. —Donovan Olson, State Bank of
Wendell; Vice Pres.—Harley Aamoth,
Belview State Bank; Seer./Treas. — Paul
Gandrud, Jr., Swift County Bank, Ben­
son.
District 8

Pres.—Robert Alexander, Merchants
& Miners State Bank, Hibbing; Vice
Pres.—Jon Carlson, First Bank Cloquet;
Seer./Treas.—Steven Wilcox, Grand
Rapids State Bank.
District 9

Pres.—Jerry Wendorff, First American
Bank, Breckenridge; Vice Pres. —Rodney
Nelson, First National Bank, Crookston;
Seer./Treas. — David Aaberg, Pelican Val­
ley State Bank, Pelican Rapids.
N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

44

M in n e s o ta N e w s

LEFT— Attending the MBA Dist 1 meeting in Rochester were: Gary Hoehn, sr. v.p., and Ken Trom, exec, v.p., First Natl. Bk., Blooming
Prairie; Joe Finley, pres., Janesville St. Bk.; Bob Schneider, pres., Farmers St. Bk., Elkton, and Ralph Nelson, v.p., F & M Marquette Natl.
Bk., Mpls. RIGHT—Tom Mork, v.p., First Burnsville St. Bk., Jim Russell, v.p., American Natl. Bk. St. Paul, and Donavon Fisher, pres., Rose-

—
LEFT— Pictured at the combined District 3-4-5 meeting were: Greg Benson, v.p., First St. Bk., Bayport; Bev Kieffer, corr. bkg. off., First Bk.
Mpls.; Keith Clements, pres., First St. Bk., Bayport; Sally Laux, v.p., First Bk., Mpls; Chuck Peterson, v.p., and Rick Traut, v.p., Norwest Bk.
Maple Grove. RIGHT— Dewey Sennesth, v.p., and Wayne Prendegrast, exec, v.p., FBS Information Serv., with Dick Flesvig, a.v.p., First Bk.
St. Paul.

dent of the Signal Hills Bank in
West St. Paul, presided at the even­
ing banquet at each of the meetings.
Following the dinner, the bankers
were treated to a motivational pre­
sentation by Chris Christianson en­
titled, “Would You Like Working
For You?“
□
WISCONSIN NEWS . . .
(Continued from page 33)
election and within some limita­
tions, either $29 per share or 1.3
shares of Valley common stock for
each BANCWIS common stock. The
acquisition is subject to negotiation
of definitive agreements and all re­
quisite corporate and regulatory ap­
provals.
BANCWIS Corporation owns the
Bank of Wisconsin, Bank of Evans­
ville and BANCWIS Leasing Com­
pany, Inc.

First Interstate Center
Opens in Kohler
A brief ribbon cutting ceremony
held September 17 marked the open­
ing of First Interstate Center in
Kohler. Its opening established a
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new corporate office for First Inter­
state Corporation of Wisconsin, the
Sheboygan-based bank holding com­
pany formerly called Citizens Bancorporation. The two-story contem­
porary structure, which was built as
part of Kohler’s Village Center de­
velopment, also houses a First Inter­
state personal banking center and
several office suites which will be
leased by other tenants.
Kay L. Magnus has been named
personal banking manager of the
First Interstate banking office in
Kohler. Formerly personal banking
officer at First Interstate Bank in
Sheboygan Falls, Ms. Magnus has
12 years of experience with the com­
pany.
Also named to the staff of the
Kohler banking office were Teri
Strub as personal banking represen­
tative and Lisa Schleicher as teller.
Both have transferred from the She­
boygan Falls bank.

nancial needs of commercial custo-<
mers in southeastern Wisconsin,
was scheduled to open early in No­
vember, according to officials of
First Interstate Corporation of Wis­
consin. First Interstate is the first 1
bank holding company to establish
such an office in Milwaukee.
The office will be staffed by Owen
De Villers, regional senior vice presi­
dent of the holding company. Mr. D e 1
Villers previously spent 25 years
with Marine Bank.
Also staffing the Milwaukee of­
fice will be two vice presidents from
First Interstate’s Sheboygan office'
— Ellen Burzynski who has exten­
sive experience in commercial and
industrial real estate financing, and
business banker Frederick M.
Bowes II who worked for the com- 1
pany’s affiliated bank in Green Bay
before coming to Sheboygan two
years ago.
An employee benefits representa­
tive of First Interstate Trust Com­
pany as well as an international
First Interstate Opens
banker, a credit analyst and support
Downtown Milwaukee Office staff were also expected to be named
A downtown Milwaukee office de­ to the Milwaukee office before its
voted solely to coordinating the fi­ opening in early November.

45
appointment of Denny Erickson as
insurance agent. Mr. Erickson has
seven years experience in the insur­
ance field and previously was with
Wausau Insurance Companies.

Mitchell Election Told
Leonard C. Koetter has been
elected senior vice president of Com­
mercial Trust & Savings Bank, Mit­
bank features new carpet, wall cov­ chell. He will
First Bank Aberdeen CEO
ering and lighting. A new night serve as head of
To Retire in December
the lending func­
deposit box was installed and the
Jack M. Thompson, chairman and front of the bank received an entire­ tion, a newly cre­
ated position at
# CEO of First Bank Aberdeen, will ly new facade.
the bank as well
retire December 31, 1984. He began
as supervising
his banking career at First Bank
the commercial
Minneapolis in 1955 and has held a Elected in Sioux Falls
real estate and
variety of positions with First Bank
Mark A. Zweep was recently
# System and its affiliate banks, most elected agricultural loan officer of instalm ent de­
partments.
recently as deputy chief executive W estern Bank
L.C. KOETTER
Mr. Koetter
officer of First Bank of South Dako­ N or th , Sioux
has been involved in banking since
ta and head of its northeastern divi­
1955 and has served as an officer of
sion. He held that position until Falls.
M
r.
Zweep
Continental
Illinois National Bank
# being named to the Aberdeen post
jo in e d
the
of Chicago and Valley National
earlier this year.
bank’s ag loan
Bank of Phoenix, and as president of
departm ent in
the Exchange National Bank of At­
1983 with over
chison, Kan. Most recently he was
four years exper­
self-employed as a banking consul­
ience in rural
tant.
lending. He is a
1979 graduate of
South Dakota State.

Corsica and Platte
Advancements Announced

J. THOMPSON

R. KLEIN

Also at the bank, Richard Klein
® has been elected vice president and
manager of the instalment loan de­
partment. Mr. Klein started his ca­
reer with First Bank system in 1958
in Aberdeen, serving most recently
™ as vice president and manager of the
retail banking center at First Bank
Bismarck, North Dakota.

Herreid Bank Remodeled,
Celebrates 40th Anniversary
Campbell County Bank, Herreid,
celebrated its 40th Anniversary and
completion of the remodeling of its
facility with a grand opening and
open house last month.
The remodeling was started last
spring and included utilizing more
space to provide for four new offices,
a kitchen, board room, storage area
and computer room. In addition,
provision was made for a drive-up
window for future use. Inside, the

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Arlington President to
Retire December 31
Robert Gunderson, president of
Citizens State Bank, Arlington, will
retire December 31 of this year.
Wayne Fischer has been elected to
suceed him as president. Mr. Fischer,
currently vice president and senior
loan officer, has been with the bank
since May, 1983.
Mr. Gunderson has been with the
bank the past 31 years and has
served as president the past 14. He
also has served as a director for 26
years.

Appointed at SunBank
E.K. Wagner, chairman of SunBank of South Dakota, Sioux Falls,
has announced the appointment of
Ed Collins as vice president in
charge of operations. Previously Mr.
Collins was with Norwest Bank,
Sioux City, Iowa, and has been in
banking for 21 years.
Mr. Wagner also announced the

First Bank of South Dakota re­
cently announced that Donna L.
Sprecher has been elected opera­
tions officer for First Bank Platte
and First Bank Corsica and Dan
Pranger has been advanced to assis­
tant vice president, First Bank Cor­
sica.

D.L. SPRECHER

D. PRANGER

Ms. Sprecher started with First
Bank of South Dakota in 1973 and
for the past four years has worked as
an administrative assistant in the
operations area.
Mr. Pranger comes to Corsica
from First Bank Vermillion, where
he has served as instalment loan
manager since 1980.
N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

46

Les Nesvig Addresses Group Meetings
ORE THAN 350 bankers at­
M
tended the 1984 North Dakota
Bankers Association Group Meet­
ings held in September. Highlight­
ing the meetings was a presentation
by NDBA President Les Nesvig,
president of the First State Bank of
LaMoure, in addition to the election
of new group officers.
In his president’s speech, Mr.
Nesvig focused on two general areas
of importance to the association at
this time: banking education and
federal and state legislation.
In regard to education, Mr. Nes­
vig explained that an in-depth
education needs assessment survey
of member bank CEOs conducted
last year, showed that there is a
need for additional educational pro­
grams, besides the traditional pro­
grams currently being offered. Steps
already taken to meet these needs
include: the addition of specialized
seminars in certain areas, and the
hiring of a full-time professional
education director. According to Mr.
Nesvig, the NDBA also will be im­
plementing the Professional Devel­
opment Program, as developed by
the ABA. The goals of PDP are to
make banker education accessible to
bankers across the nation, to pro­
vide that education in a more costeffective manner and to enhance the
overall quality of banker education
on a coordinated basis from coast to
coast. The NDBA education com­
mittee will begin implementing this
program in 1985 at the NDBA
School of Banking in Grand Forks.
In regard to legislation, Mr. Nes­
vig touched on several areas. “As
you are well aware, the NDBA has
traditionally not taken a posture on
branching or other structure change
legislation at the state-level. We
have remained neutral on this issue
in order to not damage the other
vital lobbying efforts that we con­
duct at the State Capitol.
As far as interstate banking is
N o r th
e s te r n B a n k e r, N o v e m b e r, 1984
Digitized
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Federal Reserve Bank of St. Louis

concerned, Mr. Nesvig stated that
once a proposed bill on interstate
banking is forthcoming, the ex­
ecutive council will open discussion
immediately on the issue and deter­
mine NDBA’s stance. Until such a
bill is drawn, however, there ap­
peared to be little need to get into a
theoretical discussion and adoption
of posture based on many “what
ifs.’’
“What we are saying is that when
and if such a bill is drafted, it will
immediately be addressed by your
elected executive council,’’ con­
tinued Mr. Nesvig. “ I find it very
unfortunate that certain individuals
have stated for publication that by
taking this preliminary stance of ‘no
position’ that NDBA is encouraging
the promotion of interstate banking.
Nothing could be farther from the
truth . . . ”
In addition to legislative matters
relating directly to banking, Mr.
Nesvig told the membership that
both ABA and NDBA have been ac­
tive in stressing the need for defini­
tive action in addressing the stag­
gering federal deficits, and that the
association had been involved in
promoting a constitutional amend­
ment that would require a balanced
federal budget except under emer­
gency circumstances.
During the meetings, the mem­
bers present elected officers for the
coming year. They are:
Northeast Group: President—
Peter Nielsen, executive vice presi­
dent, First National Bank in Grand
Forks; Vice President—Terry Zeltinger, president, Towner County
State Bank, Cando, and Secretary/
Treasurer—Wally Martz, president,
The Goose River Bank, Mayville.
Northwest Group P resid en tJerry Melby, president, First Na­
tional Bank, Bowbells; Vice Presi­
dent—Gerais Long, president, State
Bank of Bottineau, and Secretary/
Treasurer—Gaylen Melgaard, vice

president, Farmers State Bank,
Crosby.
*
Southwest Group President—Ron
Keeley, vice president, United Bank
of Bismarck; Vice President—Gary
Flaa, president, Norwest Bank Mandan; and Secretary/Treasurer— Ger-*
trude Buscher, executive vice presi­
dent, Bank of Beulah.
Southeast Group President—Dick
Solberg, president, State Bank of.
Fargo, Vice President—Lowell An­
derson, vice president, First Na­
tional Bank, Fessenden, and Secre­
tary/T reasurer—Charles Feeney,
president, Citizens State Bank,|
Enderline.
The four individuals elected as
group presidents and the Southeast
vice president will continue their
service on the NDBA Executive^
Council until June, 1985. The other
new vice presidents and the South­
east secretary/treasurer will begin
two-year terms on the Association’s
Executive Council next June.
□t

Grand Forks President Named
Dennis D. Douville, executive 0
vice president of Community Na­
tional Bank of Grand Forks, has
been named president. He succeeds
Donald C. Miller, who has been ad­
vanced to chairman.
^
Both Mr. Douville and Mr. Miller
have been with the bank since its
founding in 1963.

Nominees for 1985-86
NDBA Officers Announced
Nominees for officer positions in
1985-86 for the North Dakota Bank­
ers Association have been announced ®
by the nominating committee, ac­
cording to committee chairman Darold Peterson, president of the Lake­
side State Bank, New Town. During
the NDBA Annual Meeting at Bis- ®
marck on June 11 , 1985, the commit­
tee will propose the following candi­
dates for the election by the general
membership:
_
For president elect—Harvey ™
Huber, Union State Bank, Hazen;
For vice president/treasurer—
John Pierson, Norwest Bank Minot.
Additional nominations may be ^
made from the floor for either of ^
these positions. The office of NDBA
president for 1985-86 will automati­
cally be assumed next summer by
current president-elect, Bill Sanger, q
First Bank, Wahpeton.

47
of the conference which included ses­
sions on employment at will, flexible
benefits, training for new technol­
Dynamics of Color (and how it moti­ ogy, comparable worth, employee
vates you). Congressman Byron assistance programs and an update
Dorgan talked about what’s on the on affirmative action.
horizon for independent banking in
the halls of Congress and what dere­ Mandan Announcements Told
gulation means for the independent
Jay C. Feil has been promoted to
community bank. Two panel discus­ assistant vice president, commercial
sions highlighted the convention loan department, of Norwest Bank
program - “Farm Finance and Poli­ Mandan, N.A. In addition, Gary A.
cy,” featuring Dr. Robert J. Hoots has joined the bank’s staff as
Tosterud, senior economist, Joint agri-business loan officer.
Economic Committee of Congress,
Mr. Feil has been with the bank
Washington, D.C. and the Asset/ since 1983 in the commercial loan
Liability & Financial Management department. Mr. Hoots has been as­
Panel.
sociated with Production Credit As­
Elected to serve as directors were: sociation of Grafton since 1980.
Northeast—Terry McNea, presi­
dent, Farmers & Merchants Bank,
Hatton, and Kelley E. Dakken, Lidgerwood Director Elected
William M. Sanger has been
president, Drayton State Bank.
N orthw est —Tom Lavik, vice elected to the board of directors of
president, Williston Basin State First Bank Lidgerwood. Mr. Sanger
Bank, and C.W. Folkert, executive currently serves as president of
vice president, Peoples State Bank, First Bank Wahpeton and as chair­
man and CEO of First Bank Whea­
Velva.
Southeast—Rick Pederson, presi­ ton, Minn. The First Banks of
dent, Page State Bank, and Gary Wahpeton, Wheaton and Lidgewood
Justesen, executive vice president, are member banks of First Bank
System, Inc.
Litchville State Bank.
Southwest—Kurt F. Zerr, presi­
dent, Bank of Hazelton, and Gene First Bank Fargo
Hamilton, vice president, Farmers & Names New Senior V.P.
Merchants Bank, Beach.
Gary Gibson has been named se­
Executive director for the associa­
nior
vice president of First Bank
tion is Arlene Melarvie and general
Fargo.
Previously vice president/
counsel is Albert A. Wolf.
□
cashier and chief operations officer
of First Bank Helena, Mont., Mr.
First Bank System
Gibson will also assume responsibil­
Acquires Wahpeton Agency ities in the Southern North Dakota
The M etropolitan Insurance Region, including Fargo, Bismarck,
Agency, Wahpeton, Inc., has been Jamestown, Valley City, Wahpeton
acquired by First Bank System, and Lidgerwood.
Inc., Minneapolis. The agency will
Mr. Gibbs had been with First
become part of the company’s exist­ Bank Helena since 1977.
ing local agency, First Insurance
Wahpeton.
A.L. Garnaas Honored
Monte Hanson, former owner of For 50 Years in Banking
the Metropolitan Insurance Agency,
A.L. (Alf) Garnass was recently
will join First Insurance Wahpeton
as an agent. First Insurance Wahpe­ honored by the North Dakota Bank­
ton is managed locally by Arlo Kil- ers Association for his 50 years of
service in North Dakota banking.
ber.
Mr. Garnaas joined the Farmers
and Merchants Bank of Sheyenne in
Office Automation Thrust
1934 and has been with that bank
Of ABA National Conference ever since. In 1959 he was elected
Sharon Wehner, assistant vice president of the North Dakota
president of Bank of North Dakota, Bankers Association.
Bismarck, recently attended the
In honor of his 50 years of work,
ABA N ational Conference on Mr. Garnaas received a plaque from
Human Resources held in New Or­ the association at the NDBA South­
leans September 16-19.
east Group Meeting held recently in
Office automation was the thrust Valley City.
N o rth D a k o ta N e w s

^Independents Hold Convention
VER 200 members, spouses, as­
O
sociate members and guests at­
tended the 17th annual convention
0 of the North Dakota Independent

Bankers held in September in Bis­
marck. Theme for the convention
was “ ICBND—The Single Voice for
Independent Banking.”
<ID Highlighting the convention was
the election of new officers. John
Brown, executive vice president,
Farmers & Merchants Bank, Wim­
bledon, was elected ICBND presi# d en t. He succeeds James Walth,
president and CEO, The Union
Bank, Halliday. New vice president
is Gary S. Nelson, vice president,
Scandia American Bank, Stanley.

ICBND President John Brown

0

Dr. Barry Asmus, professor of
economics, gave the keynote talk at
the opening session Thursday morn­
ing and received a standing ovation
from the ICBND membership.
^ B.F. (Chip) Backlund, first vice
president of the Independent Bank­
ers Association of America, deliv­
ered the “inspirational” message
that, “Community bankers CAN
0 survive, but they have been brain­
washed into thinking they cannot.”
Mr. Backlund stressed the import­
ance for bankers to take a more as­
sertive role in changing, and the
# need to concentrate on more person­
alizing of services. Also the impor­
tance of lobbying efforts, education,
new technology, pooling resources,
commitment to PACs, and the ad# vantages of a one-bank holding com­
pany.
The convention program included
other speakers on the subjects of
Self-Esteem, Stress/The Silent KilO ler and Tools to Manage Stress,

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48
analysis of Article 9 of the Uniform
Commercial Code.
®

New Commissioner Named

First Bank Havre V.P. Named

Two MBA Seminars Announced

James A. Borszich has been
named second officer and vice presi­
dent of F irst
Bank Havre, ac­
cording to an an­
nouncement by
James
Mirehouse, president
and managing
officer.
Until recent­
ly, Mr. Borszich
was president
j A BORSZICH
and m anaging
officer of First Bank Corsica, South
Dakota. He also has served as assis­
tant vice president and assistant
manager of First Bank Presho and
First Bank Gettysburg, South
Dakota.

The Montana Bankers Associa­
tion and American Bankers Associa­
tion are co-sponsoring a Security
Management Seminar to be held De­
cember 3 at the Colonial Inn, Helena.
Jerry Kenna, president of Profit
Protection, Inc. of Miami, Fla., will
conduct the seminar. Each partici­
pant will receive a comprehensive re­
ference manual to assist them in im­
plementing the policies and proce­
dures taught during the session.
The MBA Education Committee
has also announced the sponsorship
of a Loan Documentation Seminar
to be held December 7 at the Holi­
day Inn Billings.
This program is designed for all
bank personnel involved in docu­
menting loans and will include an

Fred Napier, formerly president^
of First State Bank of Stevensville*
has been named to succeed Les Alke
as Montana’s commissioner of finan­
cial institutions.
Mr. Napier has served as presi-^
dent in Stevensville since 1982 ancr
prior to that time was vice president
at First Security Bank in Havre. He
also served as a bank examiner
under Mr. Alke at the Department^
of Business Regulation (now the De­
partment of Commerce).
Mr. Alke, who retired September
1 , has been in the bank examining
business 31 years.
m

Elected in Great Falls
Steve L. Feurt has been elected
assistant vice president and com®
mercial loan officer of Central Bank
of Montana, Great Falls, according
to James D. Hopkins, president.
Mr. Feurt started his banking ca­
reer at Security Bank, N.A., B illin g ^
in 1977. He transferred to First Citi­
zen’s Bank, Billings, in 1977.

remodeled building located on East
Main Street.

Laramie Election Announced*

Riverton President Named

New Lovell Bank Opens

John R. Benesch, formerly presi­
dent of American National Bank of
Riverton, has accepted appointment
as senior vice president for market­
ing and public relations at Ameri­
can. He is succeeded as president by
Dan Lewis.
Mr. Benesch, who first indicated
his desire to step down as president
of American four years ago, ac­
cepted the new appointment in Oc­
tober.
Mr. Lewis, 38, previously was
president of Dubois National Bank
for four years.

The new Lovell National Bank
opened its doors the middle of Oc­
tober with a three-day grand open­
ing celebration.
Gary Jinks has been named presi­
dent. Other bank staff members in­
clude: K.C. Petersen, cashier; Tami
Baxendale, secretary to the presi­
dent; Bobi Jo Leonhardt and Keela
Mangus, new accounts representa­
tives; Annie Mickelson, vault teller;
Cindy Rael, teller, and Becky Korell,
bookkeeper and proof operator. The
open house also gave the people of
Lovell a chance to tour the newly

N o for
r th wFRASER
e s te r n B a n k e r, N o v e m b e r, 19 84
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Federal Reserve Bank of St. Louis

American National Bank, Lara­
mie, recently announced the election
of Kelly Cowper to instalment loan
officer. He has been with the ban k ^
since July of this year and will serve
in the consumer lending division.
Mr. Cowper graduated from the
University of Wyoming in 1982.
•

Wheatland Director Elected

Larry G. Lebsack, Wheatland
farmer and livestock feeder, has
been elected to the board of direc­
tors of First National Bank in®
Wheatland.

Named in Rock Springs
John Allan has been promoted to
assistant vice president of First Se­
curity Bank of Rock Springs.
Mr. Allan, who has been in bank­
ing and finance for eight years, is a
mortgage loan officer in charge oL
real estate at the bank.

49
portfolio management department
after more than 17 years with Hanifen, Imhoff, Inc., of Denver.

Promotions Announced at
Colorado National, Denver

President Appointed at New
Central Bank of Westminster
^ Kirk L. Maze has been appointed
v as president of the new Central Bank
of Westminster
N.A., soon to be
located at West
IH^Sth and Harlan.
M r.
Maze
m ost recently
was vice presi­
dent and com0 mercial
loan
manager
of
United Bank of
K.L. MAZE
Ch erry Creek
N.A. and has also served as manager
©of loan analysis at United Bank of
Skyline N.A., vice president of First
Bank of Westland N.A. and man­
ager of Capital Financial Services,
Inc.
0 The initial facility for the new
Central Bank of Westminster was
scheduled to open October 5 inside
the W estminster Mall. Ground
breaking for the permanent bank
©building will occur in October with
completion expected early in 1985.

been associated with Colorado Na­
tional Bank - Northeast.

Longmont President Named
United Banks of Colorado, Inc.
has announced the promotion of
Amos C. Lawrence to president of
United Bank of Longmont.
Mr. Lawrence joined United
Banks in May of 1969 and most re­
cently served as executive vice presi­
dent of United Bank of Fort Collins.

Denver Officer Promoted
The board of Colorado National
^Bank - Boulevard, Denver, recently
promoted Vadene Mitchell to the po­
sition of banking officer.
Mrs. Mitchell has six years bank­
ing experience. She joined the bank
un January, 1982, having previously

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Federal Reserve Bank of St. Louis

C.W. SMEDLEY, JR.

L.D. BOWEN

Promoted to officer status were
Sandra D. Villarreal, systems coor­
James R. Cowgill, Patrick B. dinator in the financial and retail
Ruckh and William F. Scott were re­ services area; Jack C. Wyman, Jr.,
project manager on the implementa­
cently elected
tion and conversion to the Hogan
vice presidents
System in the management informa­
of First Inter­
tion
systems area, and R. Gary Lanstate Bank of
tis,
collections
unit supervisor for
Denver.
rocky mountain bankcard system.
Mr. Cowgill,
Mr. Smedly, with 31 years bank­
named vice pres­
ing
experience, manages the corpor­
ident, trust offi­
ate
trust administration division.
cer and manager
Mr. Bowen has been with the bank
of c o r p o r a t e
seven years. Mr. Brown, with ten
trust, returned
J.R. COWGILL
years
banking experience, joined the
to First Interbank in July of this year.

Three Elected in Denver

Central Bancorp. Approves
AmeriTrust Investment

United Banks of Skyline
®Names Senior Vice President
United Bank of Skyline, Denver,
recently announced the promotion
of Janice L. Campbell to senior vice
©president and manager of commer­
cial lending, responsible for the daily
commercial lending activities of the
bank. Ms. Campbell previously was
with United Bank of Denver, serv©ing as vice president and manager of
correspondent banking.

At Colorado National Bank of
Denver, Charles W. Smedly, Jr. and
Lee D. Bowen have been promoted
to vice president and Kenneth D.
Brown was promoted to assistant
vice president.

P.B. RUCKH

W.F. SCOTT

state of Denver in August from
Langer Mortgage Co. in Oakland,
Calif., where he has served the past
year.
Mr. Ruckh joined the bank in
May, 1974, in the data processing
department and presently serves as
manager of the newly formed bank
systems department.
Mr. Scott recently joined the
bank as vice president, trust officer
and manager of the personal trust

George B. McKinley, president
and chief executive officer of Central
Bancorporation, Inc., Denver, an­
nounced last month that the pro­
posed investment in their organiza­
tion by AmeriTrust has been ap­
proved by the Board of Governors of
the Federal Reserve System. Ameri­
Trust will purchase a non-managing,
limited partnership interest in a
partnership which owns 95 percent
of CBI.
Mr. McKinley stated, “ This
transaction will give Central Bancorporation additional capital for
the planned expansion of our bank­
ing network across the state. This
will mean greater banking services
for our customers.”
There will be a continuation of the
N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

50
C o lo ra d o N e w s
current directors and management
of CBI and of the 22 CBI member
banks.
AmeriTrust Corporation is an
Ohio-based bank holding company
with total assets of $5.8 billion at
December 31, 1983. CBI is a state­
wide Colorado banking network
with assets of $1.7 billion at Decem­
ber 31, 1983.

Arvada President Named
James F. Marsico was recently
named president and chief executive
officer of the First National Bank of
Arvada. He succeeds J.W. Randall,
who has been promoted to chairman.
Mr. Marsico was president of
Colorado National Bank - Aurora for
two years and was formerly execu­
tive vice president of Colorado Na­
L. HENDRICKSON
D. MC MEEKIN
tional Bank - Arvada, where he was
employed for sixteen years.
Randall joined the First National
Bank of Arvada in 1957 as cashier ager of new product development
and director of retail planning and
and was named president in 1970.
product development since joining
Central in 1982. She has also worked
Central Bank of Denver
for
ComBanks Corp. of Orlando,
Advancements Announced
Fla., Gunstream Industries, Denver
Central Bank of Denver recently and Southeast Bank of Miami.
named three new vice presidents,
Promoted to assistant vice presi­
four new assis­
dent were Gwendolyn A. Reker,
tant vice presi­
Darlene A. Evans, Lynn Hendrick­
dents and three
son and Diane McMeekin.
new officers.
Promoted to officer status were:
Named vice
Mary Margarete Walker, corporate
presidents were
trust officer; Sally R. Steiner, per­
James L. Poole,
sonal trust officer; Mark D. Ryan,
William
O.
retail banking officer.
Schurr and Kim­
berly Willard.
Executive V.P. Named At
Mr.
Poole
J.L. POOLE
joins C ent ral
Colorado Bank & Trust
E. Clay Speas has joined First
Colorado Bank & Trust, Denver, as
its e x ec u ti v e
v ic e-pr esi de nt
and number two
man.
M r. Speas,
who has more
than 15 years ex­
perience in bank­
ing, previously
W.O. SCHURR
K. WILLARD
was with First
Interstate Bank
E.C. SPEAS
Bank after almost five years of of Denver, where
banking experience in Illinois and he served as senior vice president
and corporate group manager in
Oklahoma.
Mr. Schurr joined Central in 1982 charge of correspondent banking,
and previously was vice president agri-business, affiliated banks and
for 13 years at Mountain States national accounts. He was with the
Bank and consumer credit manager bank for approximately three years.
He also was with United Bank of
at Columbia Savings for four years.
Ms. Willard has served as man­ Denver for more than 11 years.
N ofor
r th w
e s te r n B a n k e r, N o v e m b e r, 19 84
Digitized
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Federal Reserve Bank of St. Louis

Officers Elected at
United Bank of Denver

*

United Bank of Denver recently
announced several officer elections.
Named executive vice president
were Jed J. Burnham, manager 0%
the energy & minerals and real es­
tate banking groups; Robert H.
Dressel, manager of the regional and
corporate banking groups; Michael
J. Fowles, chairman of the bank loan©
committee and manager of the mettropolitan banking group, and
Thomas W. Swanson, manager of
the Denver Metropolitan Region
United Banks.
#

M.J. FOWLES

T.W. SWANSON

In addition, Thomas W. Honig,
manager of the real estate banking©
group, Peter E. Hosokawa, manager
of corporate business development
and cash management, and Malcolm
O. Ruxton, manager of consumer
banking group sales and services,!
were named senior vice president.
John E. Backlund and James C.
Colegate were named vice presi­
dents. Promoted to office positions
were: Catherine M. Hewins, man!
ager in the bank’s operations area;
Leroy Payne, commercial banking in
the metropolitan banking group’s
construction and transportation
market, and Robert A. Stumbaugh,!
commercial banker in metropolitan
banking’s construction and trans­
portation market.
Mr. Burnham has been with the
bank 14 years. Mr. Dessel has been a^
member of the bank’s staff more
than 17 years. Mr. Fowles joined
United Bank of Denver in 1968. Mr.
Swanson has been with United Bank
for almost 20 years.
“

51

latest additions to their line of re­
cord and money safes for modern
business applications.
1-800-328-0304. In Minnesota, call
Mosler data safes are rated to pro­
1-612-483-7300.
tect floppy discs - the most sensitive
m r \ AKTRONICS, INC., Brook- of all computer media. They have
^ 1J ings, South Dakota, has intro­ passed the German Braunschweig
duced several new products to the Fire and Impact Test - one of the
toughest in the world. During this
advertising world.
The Starburst™ Animated Color test, the safe, with all computer
^M essage System, at an affordable materials inside and under simu­
price, uses a quad pattern of red, lated fire conditions, is subjected to
blue, green and clear incandescent an outside temperature of 1832°F. It
lamps for both outdoor and indoor is then dropped 30 feet (equivalent
applications. The pattern of four col- to a four-story building) and re­
^o red lamps combine to blend into 16 heated to 1832°F. During this proce­
different shades at a distance. The dure, monitors assure that the inside
color system is controlled by a pro­ humidity does not exceed 85% and
ven reliable Venus 4000 color sys­ the temperature 125°F. Contents of
tem and is capable of graphics and the safe are then tested for perfor­
^anim ation advertising cartoons. The mance.
Starburst™ system is presently
available in a variety of sizes up to
128 points high by 128 points wide
to be controlled by either the Venus
j|4000 color or by the new Venus
5000.
Daktronic’s first Starburst™
four-color message and animation
system was recently designed and
^manufactured for the Edge water
Hotel and Casino in Laughlin, Neva­
da. It is 20 feet high, 60 feet long
and is mounted 80 feet above
ground. A total of 6,144 lamps are
0 used in the display and it is designed Mosler Data Safes
so that all servicing, including lamp
Mosler data safes are available in
replacement, can be performed from four sizes - the outer dimensions of
the internal catwalk system in the the smallest are 41.2”H x 33.6”W x
mounting structure.
35.2”D; the largest 79.2”H x 46”W
0 Daktronics has also introduced a x 35.2”D. A full line of interior ar­
new product for information display rangements is available to meet vir­
systems. The Venus 4000 Video Im­ tually any user storage requirement.
age Reader is now offered as an op­ All accessories can be installed in
tion for the Venus 4000 message/ani- the field and can be easily adjusted
#m ation controller. The Venus 4000 as storage requirements change.
controller is a computer system used
In addition to a complete line of
for creating and storing sequences physical security protection, Mosler
on floppy disc that are to be dis­ offers proprietary security commu­
played on Daktronics message/ani- nications, access control, alarm,
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Video Image Reader. The system is
For further information about
ideal for converting complex images Mosler Data Safes, write Mosler,
♦ in to a dot matrix format so it can be Department PR-324, 1561 Grand
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as small as one inch squre into dot
* * *
♦im ages.
* * *
NEW microcomputer software
package from ETS Systems,
OSLER data safes for the pro­ Inc., Chicago, allows banks and sav­
tection of information process­ ings and loans to track sales mea­
i n g and computer media are the surement information with an easily
WHAT’S NEW . . .
♦ (Continued from page 31)

M


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Federal Reserve Bank of St. Louis

A

managed in-house program.
The ETS “Star-Trak” program is
designed to run on IBM or similar
fixed-drive microcomputers. The
program combines current monthly
sales activity with previous month’s
records for comprehensive readouts
including sales analysis and com­
pensation; cross-sales ratios by em­
ployee, branch, region and institu­
tion; lead product and source-offunds; rankings by employee and
branch, and referral summaries.
Ellen Scherr, president of ETS
Systems, said Star-Trak was de­
signed for the operations, marketing
and training departments of banks
as an alternative to costly time-shar­
ing arrangements on large main­
frame computers.
“There are two main drawbacks
to time-sharing, which until now has
been the industry standard,’’ Ms.
Scherr said. “One is the cost, which
can run from $2,000 to $4,000 a
year. And for each new account —
checking, savings, certificates of de­
posits, or whatever — this means an
additional fee of 45 cents for each
transaction.
“The other problem is turn-around
time. With Star-Trak, banks have
the capability of managing their
own in-house system, so reports can
be generated immediately.’’
Star-Trak is priced at $6,000,
which includes software and operat­
ing manuals. Customized reports are
available. ETS Systems is market­
ing services and management con­
sulting firm specializing in sales
management, sales measuring and
incentive compensation programs
for the financial services industry.
* * *
CTRON, INC., Elk Grove Vil­
lage, Illinois, has introduced a
new AutoGuide Drive-in Traffic
Control System. An advanced mi­
croprocessor system, the AutoGuide
directs waiting customers at the
drive-in to available teller lanes.
Customers are served on a firstcome, first-served basis and the
work load is spread evenly among all
of the tellers.
The AutoGuide System is easily
installed in new or existing driveins. It provides customers with a
smooth-running, efficient, and con­
gestion-free drive-up. For detailed
information on ACTRON’S Auto­
Guide System, please contact: Actron Inc., 1351 Jarvis Avenue , Elk
Grove Village, 111., 60007. Phone
(312) 364-4810.

A

N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

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53
Trust Company of Fremont has re­
ceived approval from the Comptrol­
ler of the Currency, the FDIC and
the State of Nebraska to merge with
First Savings Company of Fremont.
Effective September 22, First Sav­
ings Company, located at 23rd and
Clarkson, became First National
North, a full-service office of First
National Bank.

Swanton Bank Purchased

Verdigre Bank Fails;
Sutherland, where he served as pres­ Reopens as Neligh Branch

Controlling interest in the Bank
of Swanton has been purchased by
^Thomas D. Bass, 27, president of
the bank, and his father, Dean Bass,
from James D. Krantz, president,
First National Bank in Bayard. In
addition, the balance of the stock
®was purchased by Dee Ann Schwisow, vice president an cashier.
Mr. Bass began his banking ca­
reer at the Bank of Chadron in 1978
-while he was a student at Chadron
TState College. After his graduation
in 1979 he joined the First National
Bank of Chadron, then moved in Oc­
tober, 1979, to Sioux National Bank
^ n Harrison. On August 1, 1981, he
^transferred to the Bank of Swanton
as executive vice president, then
became president in December of
that year.
^ Dee Ann Schwisow joined Bank
of Swanton in 1971. She was elected
assistant cashier in 1975, advanced
to cashier in 1979, and was also
elected vice president in 1982.
Bank of Swanton, located in Sa­
me County in southeastern Nebras­
ka, has approximately $5 million in
assets.

The Bank of Verdigre & Trust Co.
was declared insolvent by Director of
Banking Roger Beverage September
19 and was turned over to the FDIC
for liquidation. The FDIC immedi­
ately announced that The National
Hallam Bank Promotes One Bank of Neligh (33 miles south) had
agreed to purchase selected assets
The board of directors of the Hal­ and assume all the approximately
lam Bank has announced the promo­ $ 12.6 million in deposits so that all
tion of Shirley J. Aksamit to assis­ depositors were fully protected.
tant cashier.
The lone office of the failed bank
reopened September 20 as a branch
Rejoins Geneva Bank
of The National Bank of Neligh.
Dennis A. Devine, president of the Kirk C. Cisler, vice president of Ne­
Fillmore County
ligh, has been named manager of the
Bank of Geneva,
new branch.
has announced
the return of
Norfolk Banker Elected
James W. Geor­
ing, vice presi­
To Nebraska Diplomats
dent, after one
Marlene Ahrenholtz, senior vice
year and four
president and cashier of the Bank of
months with The
Norfolk, recently was elected to
State of Alexan­
serve as a member of the Nebraska
dria.
Diplomats. The Diplomats is a vol­
unteer organization of civic and bus­
Fremont Approval Received iness leaders interested in promot­
After making application in June ing Nebraska’s industrial and eco­
of this year, First National Bank & nomic development.

^Bellevue Addition Announced

Hastings Bank Featured for Design

ident prior to leaving the bank to
pursue personal business interests.
In addition, Douglas M. Barnell
has been promoted to agricultural
loan officer.

Tri-County Bank and Trust, Bel­
levue, has announced the return of
Linda S. Balash as assistant vice
^president. Ms. Balash has spent the
last year-and-a-half with Bank of
Bellevue.

20-Year Banking Veteran
•Joins Ogallala Bank
Gordon Larson, a Nebraska bank­
er for the past 20 years, has joined
the First National Bank in Ogallala
as vice president in the bank’s loan
^d e p a rt m e n t, announced Larry
Callen, chairman.
Mr. Larson’s past experience in­
cludes nine years with the North
Platte State Bank and nine years
•w ith the First Security Bank in

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Federal Reserve Bank of St. Louis

HASTINGS State Bank’s new facility opened in 1981 and designed by The Clark Enerson

Partners of Lincoln, was featured in the summer 1984 edition of Mallet & Froe. The bank’s
architecture and design were recognized for having an image of responsible progressive­
ness and for the manner in which the building complemented its environment. Features
noted in the article include the bank’s roof line and the way it mirrors the sloped roofs of
neighboring churches and residences; the large greenhouse waiting area, and its trelliscovered and brick-paved walks.
N o r th w e s te r n B a n k e r, N o v e m b e r, 19 8 4

54

Following its monthly meeting,
the board of directors of American
National Bank announced the elec­
tion of Allan G. Lozier as new board
chairman and of John J. Cavanaugh
as a new member of the board. In ad­
dition, John M. Shonsey retired
from the board.
Mr. Lozier, who is chairman of the
Lozier Corporation, has been serv­
ing on the bank’s board of directors
since 1983. He replaces Board Chair­
man John M. Shonsey wh had been
active on the board since 1964. Mr.
Shonsey announced his retirement
from the board, which follows the
sale of his interest in the bank in
September, 1983.
A graduate of the Creighton Uni­
versity Law School, Mr. Cavanaugh
is associated with the law firm of
Kutak Rock & Huie. A member of
the Nebraska Legislature from 1972
until 1976, he served in the House of
Representatives from 1976 until
1980.
* * *

joined Norwest Bank Omaha im
1978 as a credit trainee and was pro"
moted to correspondent banking
officer in 1979. In 1981, he became
credit officer and in 1982 was pro­
moted to second vice president.
Ms. Lutton joined Norwest Banl^
in July of 1974, was named opera­
tions officer in November of 1979
and was promoted to credit officer in
1983.
m
Mr. Weber started with t h ^
Comptroller of the Currency as an
assistant national bank examiner in
September, 1977, and was promoted
to a national bank examiner in O cto^
ber, 1982. He joined Norwest Bank
Omaha in November, 1983.
Ms. Connelly joined Norwest
Bank Omaha in 1966 in the install­
ment loan department. She was p ro ^
ier in 1974, consumer lending officer moted to commercial installment
in 1977, assistant cashier/manager counselor in 1975.
of the commercial installment de­
Ms. DeBuse, manager of the loan
partment in 1980 and second vice product servicing area, started her
president in 1982. Mr. Patton is in career with Norwest Bank in March^
the business banking department of 1969. She most recently was
and will be located in the Regency named loan accounting supervisor in
office.
February of 1981.
Mr. Peterson, manager of the
* * *
credit department, began working at
the North Dakota State University
The following promotions were
in 1976 as a research assistant. He
announced by Norwest Capital Man­
agement & Trust Company Nebras­
ka: Ronald G. Weber to executive
vice president and Stephen Stroud#
to vice president.

R.G. WEBER

The following promotions were
announced by Norwest Bank
Omaha, N.A.: Thomas L. Patton
and Myron H. Peterson to vice presi­
dents; Debra Kraft Lutton to busi­
ness banking officer; Donald W.
Weber to second vice president;
Janet S. Connelly to sales finance of­
ficer, and Irene DeBuse to opera­
tions officer.
After completing four years in the
U.S. Airforce, Mr. Patton worked
for a finance company as a manger
for seven years. He began working
at Norwest Omaha in December,
1972, in the installment loan depart­
ment. He was named assistant cash­
Digitized
FRASER
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e s te r n B a n k e r, N o v e m b e r, 19 8 4
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Federal Reserve Bank of St. Louis

J.S. CONNELLY

I. DEBUSE

S. STROUD

Mr. Weber graduated from the.
Univeristy of South Dakota in 1967*
with a BSBA and completed the Na­
tional Graduate Trust School in
1977. He joined Norwest Corpora­
tion in 1967 as a management,
trainee.
Mr. Stroud graduated from the
University of Iowa with a BS in
1975 and obtained his JD from
Creighton University in 1979. Froim
1979 to 1980 he worked for attor­
neys in Spencer, Iowa, and in 1980,
he moved to the Norwest Bank of
Sioux City as vice president and
managing trust officer. He joined^
the Omaha staff August 1 , 1984.

55

I
Don Ostrand

Ralph Peterson

Jim Flodine

Fred Kuehl

Gerry Tomka

Tom Jensen

THE
ANSW ER
MEN
CORRESPONDENT banking can be confusing, frustrating,
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N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

56
N e b ra s k a N e w s
F. Phillips Giltner, president of
First National Bank of Omaha, has
has been elected
a member of the
International
board of direc­
tors of VISA.
Mr. Giltner re­
ceived this ap­
pointment dur­
ing the 1984
summer meeting
of VISA Inter­
F.P. GILTNER
national held in
Venice, Italy. He presently is a
board member of VISA, U.S.A.

Talk To The Municipal
Bond Professionals

William March
President

Robert E. Roh
Executive Vice President

Patrick H. Rensch
Senior Vice President

C. W. (Chuck) Poore, Jr.
Senior Vice President

A. William (Bill) Abts, Jr.
Vice President

Wayne A. Rasmuss
Secretary-Treasurer

Micky Krupinsky
Representative

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208 South 19th Street, Omaha, Nebraska 68102
(402) 341-1144
In Nebraska Call Toll Free (800) 642-4413
Member of the Securities Investor Protection Corporation

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Silk

Nebraska Share Group Joins ITS, Inc. •
HE Nebraska Share Group, com­
T
prised of 17 savings and loans
with combined assets exceeding $5
billion and 300,000 cardholders from
more than 150 branches, has agreed
to join ITS, Inc., the Des Moines,
Iowa, based regional switch that
provides electronic funds transfer
services to savings and loans, banks
and credit unions in Nebraska,
Iowa, Illinois, Missouri and South
Dakota.
The Nebraska Share Group mem­
ber financial institutions are: Com­
mercial Federal Savings and Loan
Association, Conservative Savings,
First Federal of Omaha and Occi­
dental Savings, Omaha; American
Charter, Provident Federal and Lin­
coln Federal, Lincoln; Equitable of
Columbus, Columbus; Equitable of
Fremont and Nebraska Savings,
Fremont; Midwest Federal, Nebras­
ka City; Pioneer Federal, Plattsmouth; Home Federal Lexington,
Lexington; Custer Federal, Broken
Bow; Home Federal of Grand Island
and Equitable of Grand Island,
Grand Island; and First Federal of
York, York.
Among the reasons cited by Ne­
braska Share Group spokesmen for
selecting ITS, Inc. over other EFT
service providers were ITS’ financial
stability, years of experience in oper­
ating one of the most successful
EFT systems in the nation, total
commitment to sharing of terminals

and cost effectiveness. The Group
referenced ITS, Inc.’s reductions in
switch transaction fees and recent
$297,000 rebate to participating fi-^
nancial institutions.
The Nebraska Share Group en­
dorsed ITS, Inc.’s philosophy of
total EFT sharing and its efforts to
broaden terminal access for card-®
holders of participating financial in­
stitutions in the Midwest. The
Group’s participation in the ITS,
Inc. network automatically includes
access to national linkups such as®
Nationet and CIRRUS.
With the addition of the Nebraska
Share Group, the ITS, Inc. network
will consist of 268 participating fi­
nancial institutions with 748 ter-®
minais in Nebraska, Iowa, Illinois,
Missouri and South Dakota. During
the month of August, nearly four
million transactions were processed
by ITS, Inc. and its participating fi-®
nancial institutions.
ITS, Inc. President Dale A.
Dooley said, “I am very pleased that
the Nebraska Share Group selected
ITS as its EFT switch.” He added#
that the agreement with the Group
reflects ITS’ policy to continue ex­
panding its operation beyond the
state of Iowa and said that partici­
pating in the ITS, Inc. network is #
available to all financial institutions
in Nebraska, South Dakota, Minne­
sota, Illinois, Missouri and Iowa.

Omaha, N.A., Omaha, for the ex­
press purpose of issuing enhanced
credit card products to the mid-’
Esther Haas, a teller with First western region.
State Bank, Scottsbluff, celebrated
The proposed bank would be lo­
her 40th anniversary with the bank cated within three miles of the vicin­
on September 25. The bank honored ity of Pacific and 72nd Streets and.
her with a surprise party that even­ have a total capital of $2.5 million.
ing.
The bank would be the first bank
Unbelievable as it sounds, Ms. chartered in Nebraska by an out-ofHaas has never called in sick in her state holding company as a credit
40 years at the bank. She plans to re­ card bank, recently authorized,
tire December 31.
under Nebraska statutes.

Scottsbluff Teller
Celebrates 40th Year

Missouri H.C. Files For
Credit Card Bank

Norwest Bank Omaha
Files Merger Application

Commerce Bancshares, Inc., a
Missouri based multi-bank holding
company, has filed an application
with the Comptroller of the Curren­
cy to establish Commerce Bank of

Application has also been filed
with the comptroller by Norwest
Bank Omaha to merge with Norwest
Bank Omaha South, with N orw est^
Bank Omaha as the survivor.

•

57

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Federal Reserve Bank of St. Louis

N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

58

™■ ■

N e b ra s k a N e w s

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FISI, Nashville, and Steve Barger, v.p., Hawkeye Bancorp., Des Moines. RIGHT—John Miller, NETS, Lincoln; Randy Shelden, a.v.p., First
Natl. Bk., York; Jayne Schack, oper. off., First Natl. Bk., Albion, and Marlene Ahrenholtz, v.p., Bank of Norfolk, participate in panel discus­
sion on marketing ATMs.

NBA Sponsors Marketing Conference
By STEVE BURCH
Associate Publisher

OLLIS SUMMERLIN, Nebras­
V
ka Bankers Association market­
ing committee chairman, welcomed
nearly 100 bank marketers to the an­
nual NBA marketing conference
held in Kearney recently. The twoday session included roundtable dis­
cussions, hands-on workshop ses­
sions, and presentations from mar­
keting and advertising professionals.
“How to Create the Successful
Marketing Environment” was the
topic addressed by Steve Barger,
vice president and director of sales/
marketing, Hawkeye Bancorporation. Headquartered in Des Moines,
Hawkeye is a $1 billion multi-bank
holding company with 37 member
banks located throughout Iowa.
Mr. Barger began by establishing
that, as management has historical­
ly been the key to success within the
banking industry, professional sales
management is the key element re­
quired when implementing a sales
organization in the bank. He out­
lined several personality traits most
often associated with successful
sales managers and sales people. He
cautioned that even though an em­
ployee may possess these profile
traits, it is not guaranteed that the
person will necessarily be successful
in a sales career. However, if the out­
lined characteristics are lacking in
the employee’s profile, it is doubtful
that he or she would succeed in a
sales environment. The sales ability
and “comfort zone” level of each
bank employee could be determined
through personal conferences with
the employees, he suggests. Sales
training techniques and the develop­
ment of a marketing plan were also
included in his presentation.
Jim Prange, director of marketo r th w e s te r n B a n k e r, N o v e m b e r, 1 9 84
Digitized Nfor
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Federal Reserve Bank of St. Louis

ing, Adams Banks, Ogallala, Gor­
don Thiessen, assistant director of
marketing, Gateway Bank & Trust,
Lincoln, and Chris Peterson, senior
partner, Evaluation and Training
Consultants, Lincoln, comprised a
workshop panel which focused on
the importance of tracking and mon­
itoring marketing efforts. “People
do what is inspected rather than
what is expected” was the sub­
theme of this segment.
The panel suggested that the fol­
lowing benefits will result from sales
tracking: 1 ) Sales standards and
goals will be established; 2) Track­
ing enables objective appraisal of

Murray Raphel, pres., Murray Raphel Adv.,
Atlantic City, N.J., discusses advertising
layout and direct marketing concepts.

sales performances; 3) Individual ac­
countability is established; 4) Imme­
diate feedback is provided; and 5) It
motiviates employees to sell. The
panel summarized that sales track­
ing can precisely calculate the re­
turn on marketing and training in­
vestments. Key elements in a suc­
cessful tracking or monitoring sys­
tem include support of top manage­
ment, employee involvement, training
and followup, and frequent feedback.
Noting that direct marketing is

currently the fastest growing advej^
tising medium, Murray Raphm
shared with the bankers various
techniques which he feels will im­
prove an advertisement’s effective­
ness. Mr. Raphel is president ^
Murray Raphel Advertising, Atlam
tic City, and is well known through
his articles which appear regularly
in bank marketing publications. He
has also published several books
advertising layout and design.
“Direct marketing is a ‘why’ not a
‘what’ medium which requries your
heart, mind and soul. You first put
your heart into an ad by believing m
your bank or product. You must put
your mind into the ad by making it
intelligent. And finally, in your soul
you must believe that through the
ad you have established a relation
ship with your customer.”
Mr. Raphel emphasized that 75%
of the time spent on ad design
should be spent on developing the
headline and consequently spei#
much of his presentation focusing on
the elements of effective headlines.
His suggestions included the seven
rules for headlines first offered by
David Ogilvy, founder of Ogilvy an#
Mather advertising agency. Head­
lines should: 1 ) promise a benefit; 2)
inject a maximum amount of news;
3) include the brand name; 4) induce
the reader to read the subhead; #
sell; 6) be comprehensive, and 7)
headlines should never be tricky or
irrelevant. He then reviewed a
number of bank ads which had been
sent to him in advance by banke#
attending the conference. He offered
alternative layouts using the same
amount of space, showing how the
headline techniques discussed ear­
lier improve an ad’s visibility o n #
newspaper or magazine page.
Mr. Raphel was also the featured
speaker at the NBA Area Bankers
Dinner which was included as a seg­
ment of the marketing conference. #

N e b ra s k a N e w s

59

• Lincoln News
The board of directors for the
Commerce Group Companies ap­
p ro v e d the following officer promo­
tions at their September board meet­
ing: Joan Cromwell to assistant
audit manager and Cathy Morrissey
to loan review and general audit offiP e r.

J. CROMWELL

C. MORRISSEY

Ms. Cromwell joined Commerce
Group in June, 1980. She was pre•viously employed by Peat, Marwick,
Mitchell & Co. and holds a Certified
Public Accountant’s certificate is­
sued by the State of Nebraska.
Ms. Morrissey joined Commerce
•G ro u p in August, 1983. Before join­
ing Commerce Group, Ms. Morris­
sey spent three years as an examiner
for the Comptroller of the Currency,
Tenth National Bank Region.

Bruce Lemon Resigns
At Norwest Bank Norfolk
Bruce Lemon resigned his posi­
t i o n as senior vice president at Nor­
west Bank Norfolk, N.A., Norfolk,
to accept appointment as president
of Farmers & Merchants Bank in
Colby, Kan. The Kansas bank has
•$75 million in assets.
Mr. Lemon began his banking ca­
reer in 1969 with Norwest Bank
Sioux Falls, serving in various offi­
cer positions in marketing corres­
p o n d e n t banking and commercial
lending. He was graduated from
South Dakota State University at
Brookings with a BA degree in eco­
nomics and received his MBA from
• th e University of South Dakota in
Vermillion. He also completed
studies at the Bank Marketing
School in Boulder, Colo., and the
ABA Commercial Lending School at
P io rm an , Okla.
After serving 12 years with Nor­
west in Sioux Falls, Mr. Lemon was
transferred early in 1981 to Norwest
Bank Norfolk as senior vice presi
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Federal Reserve Bank of St. Louis

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BANKSCAN
OFFER
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Affiliate of First Midwest Bancorp., Inc.
Member FDIC

N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

60

N e b ra s k a N e w s

NEWLY-ELECTED NIBA officers for 1984-85 are: Sec’y—Tom Grove, sr. v.p., Packers Natl.
Bk., Omaha; Immed. Past Pres.— Bonnie Peterson, pres., Campbell St. Bk.; 2nd Vice Pres.—
Ron Yaley, pres., Nebraska St. Bk., South Sioux City; Pres.— Mark Buckley, pres., First Natl.
Bk., Wilcox, and 1st Vice Pres. — Fred Otten, pres., Commercial St. Bk., Hoskins.

Mark Buckley to Head NIBA
By STEVE BURCH
Associate Publisher

NDEPENDENT BANKERS
IGrand
from around the state met in
Island last month for the 3rd
annual Nebraska Independent Bank­
ers Association convention. High­
lighting the convention activities
was the election of Mark Buckley to
serve as NIBA president for the
1984-85 year. Mr. Buckley is presi­
dent and chief executive officer of
the First National Bank in Wilcox.
Other officers elected to serve are:
First Vice President—Fred Otten,
president, Commercial State Bank,
Hoskins; Second Vice President—
Roy Yarley, president, Nebraska
State Bank, South Sioux City; Sec­
retary —Phil Giltner, president,
First National Bank of Omaha, and
Treasurer—Tom Grove, senior vice
president, Packers National Bank,
Omaha.
Director of Banking Roger Bever­
age reviewed his first nine months in
office with the bankers. “Actually it

seems more like nine years rather
than just nine months,” he stated
referring to the unresolved circum­
stances surrounding the failed Com­
monwealth Savings industrial
thrift. Mr. Beverage revealed that
prior to assuming his duties, the de­
partment of banking had operated in
a reactive mode. “ Historically,
bankers have had very little say in
the direction taken by the depart­
ment of banking.” As a result, one of
the first steps taken by the former
executive director of the Nebraska
Bankers Association was the forma­
tion of a “kitchen cabinet.” Made up
of 12 bankers representing a crosssection of the commercial banking
industry within the state, Mr. Bev­
erage hopes the newly formed group
will provide continuity and im­
proved structure to the banking de­
partment.
Noting that he must wear the two
hats of both regulator and receiver
in the Commonwealth fiasco, Mr.
Beverage extended a plea to the
bankers for their assistance in deal­

ing with the matter in the upcoming
legislative session. “ I believe that^
Commonwealth has become a cancer
to the financial services industry
and must be cut-out.” He also noted
that despite his continuing efforts
with the media, the public rem ain ^
confused on the distinctions be­
tween a commercial bank and the
failed industrial thrift.
The director of banking looks to
the next legislative session as an op"
portunity to update existing 50-yearold banking laws with a comprehen­
sive bill dealing with commercial
banks, savings and loan associa-^
tions and credit unions. He added*
that he expects nothing to happen
on interstate banking in the session.
“The governor lost last time and he
knows it.” He does expect a reviewof branching, however.
During the question and answer
period following his prepared re­
marks, Mr. Beverage was chal­
lenged by a number of the b a n k e r^
present on statements that ap­
peared in local newspapers following
the recent closings of the David City
Bank and the Bank of Verdigre &
Trust Company. In both cases he^
pointed out that he was quoted out
of context and in one instance was
even credited for comments which,
in fact, came from the president of
one of the failed institutions.
|
FDIC Associate Director Charles
Thacker directed much of his presen­
tation to the considerable response
generated by the interim and permanet assistance given by FDIC to the#
troubled Continental Illinois Na­
tional Bank. He pointed to Conti­
nental’s necessity to rely upon vola­
tile funding sources as a key contri­
butor to its problems and, following#
the Penn Square failure, funding
sources became even more volatile.
The FDIC was critical of Continen-

LEFT— Convention speakers included Director of Banking Roger Beverage, FDIC Associate Director Charles Thacker, and FDIC Regional
Director Paul Rooney. RIGHT—The Leffler family was well represented by Chuck, Jr., pres., Security St. Bk., Holbrook, and wife Sheila and
Hermine and Chuck, Sr., pres., Sioux Natl. Bk., Harrison.
N ofor
r th wFRASER
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61

Mic B ro siu s
B an k o f S ta p leto n

R u ss R abeler
F a rm ers State B a n k , D od ge

C huck L effler, Jr.
S e cu rity State B an k o f H olb rook

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C rofton S tate B an k

W illard B eh ren d s
State B a n k o f E lk C reek

R an d y B u r n s
H om e S tate B an k , H um boldt

M eredith W illiam s
F irst S tate B an k , B eaver City

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F irst N a tio n a l, W isner

C raw ford State B a n k

M arsh a W ilh elm
The D a w so n B an k , D a w so n

W ayne H o sk in so n
T he S io u x N a tio n a l B an k , H arrison

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T ru st & S a v in g s A sso c ia tio n
NBC C enter, 13th & O S tre e ts,
P.O. B ox 8 2 4 0 8 , L in coln , N eb ra sk a 6 8 5 0 1
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N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

62
N e b ra s k a N e w s
tal’s delay in responding to the Penn
Square failure and notes that when
top level management changes were
eventually made, they were all made
from within the bank.
Mr. Thacker stated that basically
the FDIC had four options that
could be exercised: 1) The bank
could be allowed to fail; 2) A merger
could be arranged; 3) A plan of
permanent direct assistance could
be implemented, or 4) Temporary as­
sistance could be provided until cir­
cumstances stabilized. He was quick
to note that if the bank had been
allowed to fail, hundreds of small
banks would have been particularly
hard hit. “Approximately 2,300
small banks had almost $6 billion at
risk in Continental. Sixty-six banks
had in excess of 100% of their equity
capital at stake while another 113
banks had between 50% to 100% of
their total equity capital at risk.”
He added that the temporary assis­
tance rescue plan paves the way for
a smaller, strongly capitalized bank,
comparatively free of problem loans,
and less dependent on volatile fund­
ing. “As a result, the bank will be
positioned to continue to serve the
full range of banking needs of its
customers.”
Switching to another topic, Mr.
Thacker reinforced the FDIC’s cam­

paign calling for increased market
discipline on the part of the public.
“Market discipline calls for the pub­
lic, specifically the prospective de­
positors and general creditors of
banks to receive and analyze finan­
cial information concerning financial
institutions and base their decision
to deposit or invest funds in a parti­
cular institution on the soundness of
that institution instead of relying
solely on interest rates.”

IMMEDIATE Past President Bonnie Peter­
son receives a recognition plaque from new­
ly installed NIBA President Mark Buckley.

In closing he assertd that the.
FDIC will continue to emphasize its*
role as insurer of all banks and deemphasize its role as a general pur­
pose regulator of the state bank.
“We are currently cutting back o r^
examinations of small, well-managed, nonmember banks, allowing
the states to pick up the load.”
“Tax Considerations in Debt Re­
structuring” was the title of the talk^
given by John Cederberg, CPA,
Touche Ross & Co., Lincoln. He pre­
faced his prepared remarks, how­
ever, by addressing earlier questions
relating to inaccurate and mislead-^
ing reports in local media. He ad­
vised that, in a technical sense, jour­
nalists tend to be out of their ele­
ment in business situations. He urged
all of the bankers to spend some^p
quality time with the local media to
prevent misunderstanding. “Often,
we do not read what they thought
they wrote.”
In turning to his subject matter |
he warned the bankers to consider
the “true debt” when restructuring
a credit. He noted that if a debt is
cancelled it could present a disad­
vantage to the borrower in the form^
of taxable income. He gave many ex­
amples of restructed debts where in­
correctly valued collateral had
caused additional problems with the

LEFT— IBAA President Jack King and his wife Almeda visit with Tom Grove, sr. v.p., Packers Natl. Bk., Omaha, and Andy Svengard, pres.,
Arlington St. Bk. RIGHT—Greeting guests to the reception sponsored by First National Bank of Omaha are: Jim Flodine, 2nd v.p.; Ralph
Peterson, v.p.; Don Ostrand, v.p.; Gerry Tomka, corr. bkg. rep., and Fred Kuehl, 2nd v.p.
#

LEFT—Luncheon speaker Jim Riley, v.p., Natl. Cattlemen’s Assn., Denver, visits with John Green, pres., Wauneta Falls Bk., Jim Bohart,
pres., Harvard St. Bk., and Vic Michel, pres., Henderson St. Bk. RIGHT— Pat Conway, a.v.p., Packers Natl. Bk., Omaha, with Elaine and Bob|ft
Duden, exec, v.p., Washington County Bk., Blair.
Digitized
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Federal Reserve Bank of St. Louis

N e b ra s k a N e w s

63

LEFT— Winners of the Texas Scramble golf tournament were: Jeff Okrina, acct. exec., Travelers Express Co.; Sandi Peterson, asst, cash.,
Western St. Bk., Waterloo; Bob Conrad, pres., Sidney Natl. Bk., and Chuck Leffler, Jr., pres., Security St. Bk., Holbrook. RIGHT—Enjoying
the reception prior to the Western Steak Fry were: Kurt Yost, NIBA Exec. Dir.; John Green, pres., Wauneta Falls Bk.; NBA President Skip
(tyove, chmn., Minden Exchange Bk. & Tr.; Stan Matzke, NBA Exec. Dir., and Art Fritson, v.p. State Bk. of Hildreth.

IRS following foreclosure proceed­
ings. He also cautioned that the IRS
is taking a renewed interest in below
•la rk e t interest rate loans and intra­
family gift loans. He urged the lend­
ers to consider professional advice
during restructuring to avoid unfav­
orable surprises after the fact.
• The wrap-up of the 98th Congress
prevented Congressman Doug Bar­
nard from attending the convention
as scheduled, however, Dick Peter­
son, legal counsel to the House Fi­
nance Committee, was on hand to of­
fer a review of the action taken (or
not taken, as the case may be) dur­
ing the session. He reminded the
bankers that the defeat of the with­
holding at source legislation was ac­
complished in the 98th Congress.
“Bankers did a big service to this
country by not allowing withholding
at source to become law,” he praised,
h ie also reminded the bankers that
the 1984 Bankruptcy Amendment
Act was a product of this session.
In looking ahead to the 99th Con-

LEGAL counsel to the House Sub-committee on Finance Dick Peterson offered the
bankers an update on the 98th Congress
0 nd did some speculating on things to look
for in the next session.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

of the year were: the hiring of Kurt
Yost as full-time executive director;
the formation of investment, legisla­
tive and strategic planning commit­
tees, and establishing office facili­
ties in Lincoln.
□

Display Sign Designed
By Grand Island Company
“ I t’s as if we’ve moved into the
21st century,” is the way Robert
Harth, Los Angeles Philharmonic
Association general manager, de­
IBAA President Jack King traveled from
Kalispell, Mont, to address the convention.
scribes the new electronic display
sign the association installed to pro­
gress, he echoed the comments of mote activities at the world-famous
earlier speakers by suggesting that Hollywood Bowl.
the problems surrounding the FDIC
The display features a 1500 Mes­
rescue of the Continental Illinois senger Full Matrix Display System
tend to make lawmakers “skittish” designed and built by Electronic
toward further deregulation of the Display Systems (EDS), a division
banking industry. Nonetheless, Mr. of Chief Industries of Grand Island.
Peterson does expect a major bank­ It is supported by a 20 foot high, 30
ing reform bill to be passed during foot wide, monument-like pedestal
the next session. He warns that the of sierra white granite.
lawmakers may also consider a re­
The EDS 1500’s more than six by
duction in the current FDIC 15 foot message board contains
$100,000 limit.
7,680 bulbs and over 30 miles of wir­
IBAA President Jack King, presi­ ing to display up to five lines of dou­
dent, Valley Bank of Kalispell, Kal­ ble stroke characters. The board is
ispell, Montana, urged the Nebraska linked to its 512 kilobyte computer
bankers to participate in the IBAA by telephone line.
backed “hot wire” blitz designed to
The message center’s graphics are
encourage President Reagan to ex­ what impress most, however. The
tend the moratorium on non-bank 1500 uses a graphics tablet to repro­
charters. The IBAA used the joint duce everything from animated car­
statement issued by Senator Garn toons and photographs to cursive
and Congressman St Germain which writing, according to Dan Johnson,
specifies that a July 1, 1983 grand­ EDS president.
father date for non-bank charters
will be used in any future legislation
as a springboard for the blitz.
Immediate Past President Bonnie Crestón Branch Opens
The Crestón Branch of Farmers
Peterson was recognized a number
of times during the convention for National Bank of Madison officially
her leadership of the past year. opened last month. It is located at
Highlighting the accomplishments 238 Pine Street in Crestón.
N o r th w e s te r n B a n k e r , N o v e m b e r, 19 84

64

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65
fered at the present location in addi­
tion to regular full service banking.
Plaza State officials expect the new
facility to open in January of 1985.
M a q u o k e ta S ta te S e n io r V.P.
K illed in A c c id e n t

Mary Ann Trevathan, senior vice
president and trust officer, Maquo­
keta State Bank, was killed Septem­
ber 29 in an automobile accident. In
dent and cashier of the Brenton Na­ addition to being senior vice presi­
P ro m o ted in C e d a r R apid s
dent, she was head of operations and
Merchants National Bank. Cedar tional Bank of Perry and prior to in charge of the bank’s investment
that
time
served
at
Brenton
banks
Rapids, recently announced several
in Urbandale, Dallas Center and portfolio.
prom otions.
Well known in banking circles,
Vinton.
w Promoted to
Ms. Trevathan was currently serv­
vice president
ing as president of the Northeast
C o lfa x E xecu tiv es E lected
were: Jerry D.
The First National Bank of Colfax Iowa Chapter of the BAI and had
Strait, trust di­
has announced the election of John been a state officer of NABW. She
v isio n , financial
Goodenow as president and Jerry also was an instructor for banking
se rv ic e s p ro ­
Piper as executive vice president courses offered through the commu­
ducts; Thomas
and chief operation officer, to take nity college and others.
J. Watson, per­
place immediately with the resigna­
sonal banking
tion of Dean Schantz, the bank’s A B A /IB A C o-sponsor S e m in ar
^ d iv is io n , and
J.D. STRAIT
president. Mr. Schantz will continue
Jimmie D. HenApproximately 70 bankers from
to live in Colfax, but intends to pur­
around the state attended The Se­
sue other interests.
Mr. Goodenow, of Wall Lake, is curity Management Seminar held in
presently a director of the First Na­ October at two locations: Des
tional Bank. Mr. Goodenow was for­ Moines and Iowa City. Co-sponsored
merly with the FDIC and is present­ by the Iowa Bankers Association
ly serving as the chief executive offi­ and the American Bankers Associa­
tion, the one-day seminar dealt with
cer of several Iowa banks.
Mr. Piper moved to Colfax from various aspects of security manage­
Grand Island, Neb., where he was a ment including: drug money laun­
vice president of the Omaha Na­ dering, robberies and burglaries,
T.J. WATSON
J.D. HENLEY
kidnap and extortion and frauds and
ley, systems and procedures group. tional Bank.
embezzlements.
Jerry Kenna, Profit Protection,
• J o in s C lin to n B ank
P eo p les B a n ksh a res
Inc., Miami, Fla., presented the sem­
Raymond E. Meister has joined P u rc h ases B ritt B ank
inars. Profit Protection is a firm
Clinton National Bank as assistant
R.K. Sverdahl, president of Peo­ which analyzes approximately 6,000
vice president in charge of the agri­
ples Bankshares, Ltd., Waterloo, crimes and loss incidents each year
c u ltu r a l loan department.
in search of better procedures to
Mr. Meister joins the bank after has announced that Bankshares has deter, detect and prevent future
serving seven years with the Pro­ purchased controlling interest of the losses in financial institutions.
duction Credit Association in Perry. First State Bank, Britt. The pur­
chase was effective September 27.
Mr. Sverdahl and Britt Bank
R o nald Larson E le c te d
President
Gary Northrup stated
^ P re s id e n t in K n o xville
that no additional changes in offi­
Ronald D. Larson has been elected cers or staff are planned. The First
president, CEO and Trust officer for State Bank of Britt has total assets
the Community
of $36,691,000.
•N ational Bank &
Trust Company
C o n s tru c tio n B egin s On
of Knoxville. He
P laza S ta te B ank F a c ility
succeeds Dean
Hicks, who has
Construction has begun on the
• n ot yet an­
new Hickman Road office of Plaza
nounced his fu­
State Bank in Des Moines.
ture plans.
The new 3,000 square foot office
M r. L arso n
will offer four drive-in lanes, easy in Jerry Kenna visits with Grundy Center
previously was
and out access, ample parking, safe banker Sara Lee Yoder, v.p. and cash.,
R. LARSON
•senior vice presi­
deposit boxes and the same hours of­ Grundy National Bk.

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Federal Reserve Bank of St. Louis

N o r th w e s te r n B a n k e r, N o v e m b e r, 19C

66

Io w a N ew s

◄ BEFORE AND AFTER ►

Centerville Open House Held
IOWA Trust and Savings Bank recently celebrated the completion of

its newly-remodeled and expanded facilities with an open house, at­
tended by nearly 1,500 people over the two-day period. Office C ori^
cepts Limited of Waterloo was in charge of the project which in­
cluded adding to the existing structure to create 1,850 sq. ft. of addi­
tional work area. The remainder of the building was totally remodeled;
the first change the bank has seen since it was originally con­
structed in 1965. J. Bradley Young, chmn. of the bank, was recently
joined by his two sons, Brad Jr. and Jeff, who now represent the fiftfQ
generation of the banking family.

A p p o in tm e n t A n n o u n c e d at
A m e ric a n T ru st, D u buque
^

Committed to
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FRASER
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Federal Reserve Bank of St. Louis

William D. McGeehan, president
of American Trust and Savings
Bank, Dubuque,
announced last
month the ap­
p o in tm e n t of
Donald A. Rim­
mel to executive
vice president
and senior loan
officer of the
bank. Mr. Rim­
mel has almost
D.A. KIMMEL
30 years lending
and management experience with®
banks in Iowa and Minnesota, most
recently serving as executive vice
president and a director of United
Central Bank in Mason City.
Mr. Rimmel is a University of®
Minnesota graduate with a degree in
economics and agricultural indus­
try.
As executive vice president, se­
nior loan officer, Mr. Rimmel will b*P
responsible for American Trust’s
commercial and consumer lending
programs, as well as the bank’s con­
sortium and correspondent lendings
services.

67

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N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

68

Io w a N ew s

LEFT— Dennis McCuistion (far right), McCuistion & Associates, poses with consumer lending committee members: Stacy Ware, v.p. and
cash., Oelwein State Bk.; Carol Burress, a.v.p., Manufacturers Bk. & Tr., Forest City, and 1984-85 chmn., and Richard Waller, s.v.p., Security
Natl. Bk., Sioux City, and 1983-84 chmn. RIGHT— Dr. Tahira Hira, Iowa State University assoc, prof., gave her presentation on the seconc^
day along with IBA’s Wes Ehrecke, govt, rel./ag. dir., and Kathy Giles, compliance coord.

Changing Needs Stressed at Conference
By BECKY McBURNEY
Associate Editor
HE NEEDS of the customers
T
are changing and consumer lend­
ers must take the necessary steps to
meet the demands of future retail
customers, was the theme brought
out by Rich Waller, chairman of the
consumer lending committee and se­
nior vice president, Security Na­
tional Bank, Sioux City, and carried
through by various speakers at this
year’s Consumer Lending/Retail
Banking Conference, sponsored by
the Iowa Bankers Association and
held in Des Moines last month.
Because of the positive comments
following last year’s conference,
Dennis McCuistion, McCuistion &
Associates, Irving, Texas, was
asked back to address this year’s
group. His opening presentation on
“The Lender as Financial Consul­
tant,’’ addressed the question, “Can
we, as lenders, remain ju s t a lender
or do we need to become a financial
consultant?’’ As a financial consul­
tant, one fills two major rolls: that of
personal money management coun­
selor, and financial planner for more
fluid customers.
He stressed that consumer bank­
ing is still a personal business and
we as lenders need to convince our
customers that they are not going to
receive the same kind of personal
service from someone like Citicorp
as we can offer them as their home
town banker.
Mr. McCuistion’s presentation in­
cluded round table discussions on
consumer lending and retail banking
case studies. Before breaking for
lunch, he had everyone get up and
look at the bottom of their chairs.
N ofor
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Digitized
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Federal Reserve Bank of St. Louis

Under one chair at each table was
taped a dollar bill. The scenario was:
“You have to get off your butt to
earn a buck.’’
Luncheon speaker Jack Jackson,
chairman of LDI, Inc., Oklahoma Ci­
ty, and 23-year veteran of American
Airlines, had little trouble keeping
his audience’s attention. He used
many humorous illustrations in his
comparison of the changes the air­
line industry went through the last
six years as a result of deregulation,
and the changes the banking indus­
try is going through right now. As
he kept reminding the audience,
“Humpty Dumpty didn’t fall, he
was pushed.’’ The airline industry
didn’t change because they wanted
to, they were pushed, just as bank­
ers are being pushed today by dere­
gulation and increased competition.
Mr. Jackson warned bankers that,
“You can be on the right track, sit­
ting still, and still get run over.” The
technology is there, the knowledge
is there, but the downfall is not go­
ing out and meeting the customer
needs. Bankers need to take a fresh

Sharon Ward, Younkers, and Steve Barger,

Hawkeye Bancorporation, presented work­
shops the first afternoon.

look, and do what has to be done to
meet customer needs.
The afternoon session consisted^
of three well-received workshops put
on by Steve Barger, vice president
in marketing, Hawkeye Bancorpora­
tion, Des Moines, on “Credit Analy­
sis: A Sales Tool”; Sharon Ward^
director of human resources, Youn­
kers, Des Moines, on “Serving the
Customer of the 80s,” and Marva
McCarty, education manager/AIB
coordinator, IBA, Des Moines, on0
‘4Telemarketing. ’’
The second morning of the confer­
ence was devoted to a session on
“Financial Counseling” led by Dr.
Tahira Hira, associate professor, De-|
partment of Family Environment,
Iowa State University, Ames. She
explained that financial counseling
and planning is a process, not a pro­
duct, that is time consuming and ref
quires background and skills. She
said there is a need and the people
have the money, they just don’t
have the time to plan their finances.
Through round table discussions on#
four case studies, the group was able
to get an idea of the steps involved
in financial counseling and come up
with alternatives to the problems of
each case study.
I
IBA Compliance Coordinator
Kathy Giles gave a brief but infor­
mative update on IRAs and Quali­
fied Plans (previously Keoghs), and
the changes that have had to be®
made in them as a result of TEFRA,
passed in 1982, and the Tax and Re­
form Act and Retirement Equity
Act, both passed in 1984. Jim
Struve, vice president, Merchants®
National Bank, Cedar Rapids, con­
cluded the morning session with a
brief ABA report, in which he put in
a plug for ABA’s all new regional
consumer lending workshops plan"

I

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Io w a N ew s
ned for 1985 and held in addition to
the main conference scheduled for
March in San Francisco. The work­
shop Iowa bankers will be interested
in is for the western region and will
be held in Seattle, April 28.
Following lunch at Guido’s Wes
Ehrecke, IBA government relations/
agriculture director, described a lit­
tle about his role as a lobbyist in the
banking industry. He stressed the
importance of getting to know the
candidates, actively participating in
the election process, and establish­
ing rapport with our legislators. □

of First National Bank, Ames, Bar­
bara Werner was promoted to
cashier.
Ms. Werner joined the bank in
1972 in the bookkeeping depart­
ment, and most recently served as
assistant vice president, operations.
UCB S y s te m s In tro d u ces
“ T he M e d ia M a n a g e r”

UCB Systems, Inc., Des Moines,
recently introduced “The Media
Manager,’’ a high technology media
converter for use by customers ex­
periencing computer communica­
A m es P ro m o tio n A n n o u n c ed tions problems.
At the October 10 board meeting
According to William F. Dawdy,
president, “This new system solves
most computer information conver­
sion problems such as converting
non-compatible formats, and con­
verting magnetic tape to floppy disk
and floppy disk to magnetic tape.
Multiple copies, phone line conver­
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Clark Houghton, president of
First National Bank, Iowa City, has
announced that Ronald E. Matthews
has joined the bank as second vice
president and Theodore L. Kron ha&
joined as trust officer.
Mr. Matthews, previously with
the bank from 1960 to 1976, will be
in customer service downtown. Mr.
Kron, an Iowa City native and 1 9 7 ^
graduate of the University of Iowa
College of Law, has been a partner in
the law firm of Honohan, Epley,
Kron and Haymond.

y o u o n a m ic ro c o m p u te r p u rc h a s e .
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C o m m e rc ia l L o a n C re d it A n a ly s is

■

S a fe D e p o s it S y s te m

■

Fixe d A s s e t M a n a g e m e n t S y s te m

■

G e n e ra l L e d g e r S y s te m

■

A s s e t/L ia b ility M a n a g e m e n t

■

P la n n in g an d C o n tro l

Y o u r m ic ro c o m p u te r

can

h e lp y o u in c re a s e y o u r e ffe c tiv e n e s s as a

m a n a g e r an d d e c is io n m a k e r. It

can

w o r k f o r y o u fu ll- tim e . A t M IC R O -

COM w e ’ d like to s h o w y o u h o w .

For more information call Bob Duff or Joe Phernetton now at
319/378-1378, 1221 Park Place N.E., Cedar Rapids, Iowa 52402.

YOUR

o r thFRASER
w e s te r n B a n k e r, N o v e m b e r, 19 84
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Federal Reserve Bank of St. Louis

MICRO
COMPUTER
RESOURCE

Joins F red ericks b u rg Bank

Northeast Iowa National Bank,
Fredericksburg, has announced th¿®
addition of Mel
Martin as vice
president. Cur­
ren tly in the
Fredericksburg
office, Mr. Mar­
tin will be re­
sponsible for op­
erations of the
new Sumner fa­
cility. He joins
M. MARTIN
the bank with
eight years experience at PCA and
experience in farm operations ancL
insurance.
^

Io w a N ew s

Iow a R anked N in th In
% a l e of O ly m p ic C o ins

Iowa banks and S&Ls are ranked
number nine in the country in the
sale of U.S. Olympic coins. In 414 lo­
c a tio n s, the state of Iowa has raised
over $58,090 to aid America’s ama­
teur athletes. Of this Olympic con­
tribution, 4,024 silver coins and 357
gold coins have been sold. Overall,
C h e U.S. Olympic coin program has
raised more than $52.6 million from
gross sales of $250 million without
using any tax dollars.
Coins will be available through
•banks, S&Ls and other outlets until
the end of the year. At that time re­
maining Olympic coins and dies
used to strike the coins will be de­
stroyed.
• Dean Mitchell, director of the
Olympic coin program, reported
that weekly sales in banks and
S&L’s actually doubled during the
last two weeks in August after the
•Olympic games and that new banks
are still signing up to participate in
the program.

71

For Correspondent Bank
services, there’s a big
advantage to working with
Valley Bank’s Professional
Bankers.
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.

• IB IS A n n o u n c e s Tw o
U p co m in g S c h o o ls

Iowa bankers Insurance & Ser­
vices, Inc. has announced two
^schools to be offered in upcoming
months.
Credit Life Licensing School will
be offered December 3-4 and Perma­
nent Life Licensing School is being
^offered January 28-29. Held in Des
Moines, both schools will offer ex­
aminations on the day following the
school.
Registration for the December
^school must be made by November
19 and for the school in January,
registration must be made by Janu­
ary 21. For more information and
registration contact Jeanette Elling­
t o n at 1-800-532-1423 or (515)
286-4371, IBIS, 104 East Locust
Street, Des Moines, IA 50308.
• Fort D o dge P re s id e n t N a m e d

J.P. Mansfield III has been
elected president, chief executive of­
ficer and a director of United Cen­
tral Bank in Fort Dodge. He suc•ceed s Jim Hughes, who resigned.
Prior to joining the bank in April
of this year, Mr. Mansfield was with
First Bank Minneapolis, Minn., and
has been affiliated with First Bank
® System for 12 years.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

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
Transfers.

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.

There’s Nothing Like M oney in the Bank...
The Valley Bank

Valley National Bank ili
DES MOINES. IOWA 50304

Member FD 1C

A BANKS OF IOWA BANK

Discover the Valley advantages.
Call TO LL FREE (800) 622-7262 (Iowa, only).

N o r th w e s te r n B a n k e r, N o v e m b e r, 19 84

72
E.F. Hutton in 1981. AID Securities
is a subsidiary of AID Insurance
Companies of Des Moines.
* * *
Robert G. Millen, president and
CEO, United Central Bank of D e^
Moines, N.A., has announced the ap­
pointment of Eric Paul as manager,
investments, and Marlin G. Johnson
as operations officer, research and
analysis.
£

Des Moines^
George F. Milligan, president and
chief operating officer of Norwest
Bank Des Moines, N.A. announced
these promotions following the Sep­
tember board meeting:
Jeanne Baker has been named
trust investment
officer. She joined
the trust divi­
sion of the bank
in June, 1982, as
a portfolio man­
ager. She was
previously em­
ployed by Mer­
rill Lynch as a
retail account
J. BAKER
executive.

David L. Miller, president and
chairman of West Des Moines State
Bank has an­
nounced the elec­
tion of Raymond
G. Johnston as
senior vice presi­
dent - commer­
cial lending.
Mr. Johnston
was formerly as­
so ciated w ith
United Central
R.G. JOHNSTON
B ank of Des
Moines serving in various capacities
including trust officer, senior vice
president - commercial lending, and
president and CEO until November,
1981. Most recently Mr. Johnston
was with R.G. Dickinson & Co.
* * *

E. PAUL

M.G. JOHNSON

Mr. Paul joined the bank from
First Interstate Bank of Casper,
Wyo., where he held the position o ||
vice president and investment offi­
cer. He is a graduate of Mankato
State University with a bachelor of
science degree in education.
Mr. Johnson joined United Cer®
tral Bancshares in May of 1981 as a
staff auditor in the auditing depart­
ment. In October of 1982 he trans­
ferred to operations administration
as an operations analyst. Prior t #
joining UCBI, Mr. Johnson was em­
ployed by Kansas-Nebraska Natural
Gas Co.
A p p o in te d in P a ckw o o d

n

At Farmers Savings Bank, Packwood, James K. Kramer has been
Robert J. Beh has been named appointed lending officer. He pre­
director of institutional sales and viously was with United Federal
Savings Bank.
ID1
product strategy
In addition, Connie Snakenberg
for AID Securi­
has been promoted to assistant
ties Corp. of Des
cashier. She has been with the bank
Moines.
since 1974.
P
r
e
v
i
o
u
s
l
y
R. MEINERS
L. WOOD
vice president
A p p lic a tio n s A p proved
Randall Meiners has been named and re g io n a l
trust agricultural officer. He started manager of the
The Comptroller of the Currency
with the bank in October of 1982 as municipal bond
recently approved the following ap­
plications to convert from a state to
a trust agricultural administrator. departm ent of
a national charter:
•
He was employed by Newell Farm E.F. Hutton &
R.J. BEH
Norwest State Bank Atlantic,
Management as a farm manager Co.’s Des Moines
prior to joining the bank.
office, Mr. Beh will be responsible under the new title of Norwest Bank
Lisa Wood has been named trust for proprietary tax shelter offerings Atlantic, N.A.; Bettendorf Bank
officer. She joined the trust division as well as developing insurance and and Trust Company, under the new
in July of 1982 as a trust adminis­ annuity products to be sold by AID title of Bettendorf Bank, N.A.; Noi^
west State Bank Keokuk, under the
trator. Ms. Wood received her un­ Securities.
Mr. Beh formerly was president new title of Norwest Bank Keokuk,
dergraduate degree from University
of Wisconsin, Whitewrater, and is and chief operating officer of Carle- N.A.; and Cambridge State Bank,
also a graduate of the Drake Univer­ ton D. Beh and Co., an investment under the new title of First NationaL
®
banking firm that was acquired by Bank, Cambridge.
sity Law School
o r thFRASER
w e s te r n B a n k e r, N o v e m b e r, 19 84
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Federal Reserve Bank of St. Louis

Investments

Manager, Investment Dept.

Investments
Joan Thompson
Investment Officer

Operations
Yern Hoskinson
Vice President

Eric’s background includes seven years
in operations and investment management. His knowledge in securities, asset/
liability management, and investment
planning make him a valuable addition
to the UCB Investment Department.

Joan’s previous experience with a securi­
ties brokerage firm and as a banker is
valuable to your bank’s investment area.
Call on her expertise in government and
municipal bonds and money market
investments.

Cal (515) 245-7029

Call (515) 245-7069

Vem’s 26 years with bank operations in­
cludes 23 years experience in operations
at the Federal Reserve. His background
provides UCB’s staff with the knowledge
of data processing equipment, methods
and handling necessary to effectively
assist you in your correspondent needs.
His involvement in the accounting and
check collection functions of the bank
complements his operations background

o Erie Paul

Call (515) 245-7290

The combination of efficient operations and timely investments is the answer to cutting
expenses and increasing income. At UCB we work to help you achieve both.

OF DES MOINES, N.A.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

AFFILIATED WITH UNITED CENTRAL BANCSHARES, INC.

MEMBER FDIC

No Company,
Anywhere In The
United States,
Can Give
Your Bank
As Much Help
In Running
A Smooth,
Profitable Credit
Insurance
Operation As
North Central
Life.

Protection all ways

North Central Life Insurance Company
NORTH CENTRAL LIFE TOWER, 445 MINNESOTA STREET, BOX 43139, ST PAUL, MN 55164

In Minnesota call 800-792-1030.
In Iowa, Wise., North and South Dakota 800-328-1612.
All other states 800-328-9117.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

,

Compare For Yourself.

How Does Your Current Credit Insurance
• Company Measure Up lb North Central Life?
What
N orth Central
Life Offers

0

t

*w
■J

What Your
C om pany
Offers

What
N orth Central
Life Offers

Fast, Computerized Claim
Settlements

£T

What Your
Company
Offers

Home Office Customer Service
Department

Insurance Plans That Fit Virtually
Every Loan Situation

Simple, Automated Premium
Reporting System

Special Programs for the Large
Borrower

Computer-based Measurement and
Control System to Help You Manage
Your Business

Nation-wide Toll-free WATS Service

Personalized Training For Your
Support Personnel

Instant, Over-the-phone Rate
Calculations For Difficult Loans

Simplified Procedures Manuals For
Administrative People

Instant, Over-the-phone
underwriting approval for over-limit
coverages

Complimentary Sales Aids,
Brochures and Point-Of-Purchase
Materials

Sales and Insurance Training
Programs Designed for Bankers

Free Analysis of Your Current
Insurance Operations

Incentive Plans to Help Increase
your Productivity

“Captive Company” Capability

Professional, Experienced Account
Field Representatives

If You’re Not Getting All Of These Services From Your Current Credit
Insurance Carrier, Maybe You Should Call North Central Life...

America’s Number One Credit Insurance
Service Organization

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

— —

■I

H

“Were committed
to agriculture.
From the
ground up.”
Arlan Tengwall,
Senior Vice President, Agriculture,
Member Financial Institutions Team

“A griculture.

It’s changed dramatically
over the past 50 years.
“And Norwest correspondent banking has
changed right along with it.
“Changed by responding year after year to
the growing credit needs of farmers, ranchers,
and agri-business. Something that has made
Norwest Banks the largest bank lender to
agriculture in this part of the country.
“What that means in specific terms is we
can supply you with a reliable source of ag
overlines, so you can meet those needs directly.
And we can also provide a wide base of
financial back-up services that can help your ag
customers in every facet of their operations.
“What’s more, our new Hub System places
a knowledgeable Financial Institutions Client
Executive in your area. That way, he and a
Norwest ag expert can work with you as a
team. So we understand—firsthand—the
problems and concerns facing all aspects of
agriculture.
“It’s from these Hub locations that we can
better maintain our deep involvement with ag
producers, processors, suppliers, and exporters.
And in that way, respond more fully to you and
your ag customers.
“That’s our promise; our commitment to
agriculture. And to you.
“If you’re interested in finding out more,
contact your nearest Norwest Financial
Institutions Client Executive.”
H ub B a n k Locations:
N o rw e st B a n k A b e rd e e n , N.A.
N o rw e st B a nk B ism arck, N.A.
N o rw e st B a nk B la ck H ills, N.A.
N o rw e st B a nk D es M oines, N.A.
N o rw e st B a n k D uluth, N.A.
N o rw e st B a n k Fargo, N.A.
N o rw e st B a n k La C rosse, N.A.
N o rw e st B a n k M ankato, N.A.

N o rw e st B a n k
N o rw e st B a nk
N o rw e st B a n k
N o rw e st B a nk
N o rw e st B a nk
N o rw e st B a nk
N o rw e st B a nk

Members FDIC

Financial Institutions Group

NORWEST CORPORATION

mmmmm
mmy mm

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Federal Reserve Bank of St. Louis

M arshall, N.A.
M ason C ity*N .A .
M idland, N.A.
M inneapolis, N.A.
O m aha, N.A.
Rochester, N.A.
S io u x Falls, N.A.