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• ABA Ag B ankers Will M eet in Nashville
• M innesota’s M ark O lson Is New ABA P resident
• RMA P resid en t U rges Risk M anagem ent A w areness
Federal Reserve Bank of St. Louis

Dick Retz (right) with neighbor Phillip Buelow getting the job done through teamwork.

Great Accomplishments
Great accomplishments require determination.
Hard work.
And sometimes a little assistance.
Assistance from someone you can trust. Someone
experienced. Someone who can work together with
you, and safely get the job done.
Dick Retz is a key member of the correspondent
banking team at Merchants National Bank. With
professionals like Dick and assets of over $660 million,
MNB can provide the financial assistance and teamwork
to support your hard work and determination.
Together we can accomplish great things.
Call Dick Retz at 319/398-4806 or toll-free
1-800-332-5991, ext. 806.

Strength of \
Iowa f Merchants National Bank m
Federal Reserve Bank of St. Louis

N j

Cedar Rapids. Iowa 52401

Member F D IC


each for your phone and call Central
Capital Markets Group Limited. You’ll
get first-rate personal service and a team
of experts who will expand your ability to
invest in taxable and tax-free instruments.
Contact Central Capital Markets Group


today. We’re a natural extension of your
potential. Call 1-800-331-9250.

Markets Group Ltd.
of the Investment Banking Division of Central Bank of the South

( Extend your bank’s
investment resources.
Federal Reserve Bank of St. Louis


NOVEMBER 1986 • 93rd Year • No. 1478

This typical harvesting scene is being repeated on thousands of midwest farms
as farm operators race the clock to harvest their corn, beans, wheat and other
crops before further rain or frost and snow descend on them. Extended rainfall
held up harvesting in many areas, but beautiful weather starting in mid-October
accelerated the schedule. As usual, farmers worked from sunup and beyond, with
tractors guided across darkened fields by eery headlights and a bright harvest
moon. The productive crop year was met with mixed emotions as farmers looked
at corn hovering above and below $1.00 per bushel and soybean prices holding in
the $4.00 plus range. The biggest problem in October was finding storage space
for corns and beans. Photo and color printing materials courtesy of Pioneer
Hybrid International, Inc., Des Moines.



ABA ag bankers conference

Opryland Hotel is headquarters, November 16-19


Risk management awareness

RMA President Malcolm Murray learns risk is real!


Bankers respond to Banclnsure

Truman Jeffers details multi-state insurance program


“Interesting Reading"
“After reading your article on the 100th
Anniversary of the Iowa Bankers A ssocia-^
tion, I would be remiss if I did not drop you a
note to compliment you on your coverage of
this most important topic. The history pro­
vided interesting reading and certainly
brings back many memories.
“Congratulations, Ben, and continued bestQ
George Shepley
First National Bank of Muscatine

“Very Compelling Reading"
“I read with great interest your history of
the Iowa Bankers Association and the his­
tory of banking in Iowa over the last 1 0 0 ^
years. Once I started, it was very compelling
reading and I enjoyed it thoroughly. You ob­
viously went to a lot of work and it certainly
reflected your scholarly research.”
O. Jay Tomson
Chairman and Chief Executive Officer
Citizens National Bank
Charles City, Iowa

Mark Olson heads ABA

New president has extensive legislative credentials



Dear Editor
Twin Cities


South Dakota
North Dakota


Des Moines
Index of Advertisers

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

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

Associate Editors
Melinda Sauers

Diane Nelson

No. 1478 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$2.00 per copy. $24 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.

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

Dawson Insurance
Names V.P.
Debra A. Dawson has joined
Dawson Hail Insurance, Fargo,
N.D., as vice
president and a
member of the
board. She will
be involved in
m anagem ent
and supervision.
A 1975 graduate
of University of
North Dakota,
ta u g h t
school and was
employed in sales and management
with Pitney Bowes in Denver, Colo.
The Dawson firm was organized
by Ms. Dawson’s grandfather, Char-*
les A. Dawson, in 1917. Her father,
Jim, and Uncle Bob have been active
in the firm since 1946. Her cousin,
Tom, has been active in the com­
pany since 1973, and her sister , 1
Judy, since 1979.
The firm writes insurance on
growing crops in four states and all
lines of commercial and personal in­
surance in Fargo-Moorhead.



Chances are, your bank has
been exposed m ore than once to
“bond service.”
I t’s transaction-oriented
service from people who know
bonds, not banks. So the advice
you g e t too often goes no
fu rth er th an offerings and oc­
casional bids.
Bond service is not w hat
L. F. Rothschild, U nterberg,
Towbin provides. O ur specialty
is BANK SERVICE.® O ver 25
years of service th a t combines
intim ate knowledge of bonds
w ith in-depth understanding of
your portfolio in th e sam e light
as you do: As a crucial com­
ponent of your bank’s overall
position. N ot as an independent
Federal Reserve Bank of St. Louis

T hat’s why before we make
a recom m endation we conduct a
thorough study of your bank.
com m ittee m eets to discuss the
Bank R eport w e’ve p rep ared
specifically for you.
The recom m endations
from th e com m ittee are tailored
to your bank’s p resen t position
and future objectives in a chang­
ing m arketplace.
O ur PMS system can help
you m onitor and m anage
your portfolio. W e’ll introduce
you to our Fixed Income Com­

p u te r Service, our investm ent
banking group, our fixed income
research, send you our new s­
le tte r and invite you to appro­
priate sem inars th a t we host in
your area.
All these services are de­
signed for one goal: To help you
achieve your bank’s overall
aims in a way no m ere bond
service can.
So, while you m ay be g e t­
ting bond service, w hat you
really need is BANK SERVICE.
Call M ark Rosen, Principal, a t
(212) 412-2600.


Northwestern Banker, November, 1986


Ruempler Returns to ABA
Henry C. Ruempler has returned
to the American Bankers Associa­
tion as director of taxation.
From 1972 to 1976, he had served
as an assistant tax counsel for the
ABA. He most recently was a vice
president in Citibank’s Washington
office, responsible for tax legislation
and regulatory issues. Before join­
ing Citibank in 1983, he was legisla­
tive director and appropriations
counsel to Sen. Thad Cochran,
(R-Miss.), and minority counsel on a
House Government Affairs subcom­

O u r experts are at your beck and call.
Through our system of regional offices, Freddie Mac makes it easy
to do business locally. And, because our people live in your area of
the country, they’re never far away when you call.
Our North Central Region covers Illinois, Indiana, Iowa,
Michigan, Minnesota, North Dakota, Ohio, South Dakota and
Wisconsin. If that’s where you call home, one of these
representatives is standing by to serve you.

(Required by 39 U.S.C. 3685)
(also DMM 448.31)
1. Title of publication — Northwestern Banker
2. Date of filing — September 30, 1986
3. Frequency of issue — Monthly.
3b. Annual Subscription Price — $16.00
4. Location of known office of publication — 1535
Linden St. #201, Des Moines, Iowa 50309.
5. Location of the headquarters or general business of­
fices of the publishers (Not printers) — 1535 Linden St.
#201, Des Moines, Iowa 50309.
7. Owner (If owned by a corporation, its name and ad­
dress must be stated and also immediately thereunder the
names and addresses of stockholders owning or holding 1
percent or more of total amount of stock. If not owned by a
corporation, the names and addresses of individual
owners must be given. If owned by a partnership or other
unincorporated firm, its name and address, as well as that
of each individual must be given). Ben Haller, Jr., Presi­
dent, 1535 Linden St. #201, Des Moines, Iowa 50309. North­
western Banker Company, 1535 Linden St. #201, Des
Moines, Iowa 50309.
8. Known bondholders, mortgages and other security
holders owning or holding 1 percent or more of total
amount of bonds, mortgages or other securities: Ben
Haller, Jr., President, 1535 Linden St. #201, Des Moines,
Iowa 50309.
10. Extent and nature of circulation:
Average No.
Actual No.
copies each of copies of
issue during single issue
nearest to
12 months
filing date
A. Total No. copies printed
(Net Press Run)
B. Paid Circulation
1. Sales through dealers
and carriers, street ven­
dors and counter sales
2. Mail Subscriptions
C. To ta l paid c irc u la tio n
D. Free distribution by mail,
carrier or other means—
sample, com plim entary,
and other free copies
E. Total distribution
(Sum of C and D)
F. Copies not d istrib u te d
1. O ffice use, leftover,
unaccounted, spoiled
after printing
2. R eturn s fro m news
G. Total (Sum of E, F1 and
2—should equal net press
run shown in A)
11.1certify that the statements made by me above are correct and complete.
Editor and Publisher
12. For completion by publishers mailing at the regular
rates (Section 132.121, Postal Service Manual). 39 U.S.C.
3626 provides in pertinent part: “ No person who would
have been entitled to mail matter under former section
4359 of this title shall mail such matter at the rates pro­
vided under this subsection unless he files annually with
the Postal Service a written request for permission to mail
matter at such rates.”
In accordance with the provisions of this statute, I here­
by request permission to mail the publication named in
Item 1 at the phased postage rates presently authorized by
39 U.S.C. 3626.
Ben Haller, Jr., Editor and Publisher

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

Judi Benshoof

Dick Hammond

Lou Mailers

Jeanne Redfern

Everett Howard

It’s simple to beckon a gnome.
Just contact our North Central office at:
333 West Wacker Drive
Suite 3100
Chicago, Illinois 60606-1287
(312) 407-7474


Owned by America’s Savings Institutions

®1986, FHLMC



The gnom es o f Freddie M ac go far and w ide to please
*» custom ers. W hether you sell your m ortgages for cash or
sw ap them for PC s, our regional account executives know
w hat w orks best in your local m arket. B efore you m ake your
next deal, call the experts in the field. Y ou’ll find them as near
as your telephone.
Freddie Mac ■ Marketing Communications ■ 1776 G Street, N.W. ■ P.O. Box 37248 ■ Washington, D.C. 20013-7248
Federal Reserve Bank of St. Louis

©1986, FHLMC

Owned by A merica’s Savings Institutions


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

National Conventions & Schools
Nov. 16-19—BAI ATM9 Electronic Delivery
Systems Conference, Los Angeles, Cal.
Nov. 16-19—BMA Trust & Personal Finan­
cial Services Marketing Conference, New
Orleans Sheraton.
Nov. 16-19—ABA National Ag Bankers Con­
ference, Opryland Hotel, Nashville.
Nov. 16-19—BAI ATM 9, The Electronic
Delivery Systems Conference, Los
Angeles, Calif.
Nov. 17-21 —BMA Southwestern Essentials
of Bank Marketing School, University of
Houston, Houston, Tex.
Nov. 20—BAI Tax Update & 1099 Reporting,
Hyperion Field Club, Des Moines.
Dec. 9-12—BAI Money Transfer/Corporate
Operations Conference, New York, N.Y.

Jan. 14—BAI Outlook for ’87, Airport Hilton
Inn, Des Moines.

State Conventions & Schools
Nov. 19-20—IBA Bank Management Confer­
ence (Exhibits), Rosemont.
Dec. 9—IBA Bank Directors Seminar, Deca­
Dec. 10—IBA Bank Directors Seminar, Oak
Dec. 4—IBA Bank Directors Seminar, Holi­
day Inn, Ames.
Nov. 20—Community Bank Marketing Stra­
tegies, Holiday Inn International, Bloom­
Nov. 25—Bankruptcy Workshop, Holiday
Inn International, Bloomington.
Dec. 1—Security Management Seminar,
Holiday Inn International, Bloomington.
Dec. 10—Real Estate Finance Workshop,
Radisson Metrodome, Minneapolis.
Jan. 29—MBA Compliance Teleconference,
Hilton Inn, Minneapolis.

Have you ju st receivad an unsolicited tender
offer or bid for your bank? A re you contemplat­
ing sale of your bank? If you are, Douglas
Austin & Associates is specialized to assist you
in obtaining the "best"price and the appropriate
terms for you and your shareholders. Call us.

(419) 841-8521



m/ \


/ \


Suite 2, 3178 Republic Blvd. North • Toledo, Ohio 43615
Chicago • Lansing

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

Jan. 13—NBA Bank Directors Forum, North
Platte Stockman Inn.
Jan. 14—NBA Bank Directors Forum,
Columbus Holiday Inn.
Jan. 27-28—NBA Lending Conference,
Kearney Holiday Inn.
South Dakota:
Nov. 11 —IRA (Advanced) Seminar, Sioux
Nov. 12—IRA (Advanced) Seminar, H oliday^
Haus, Pierre.

Union Pacific Corporation
Appoints Officers
Michael H. Walsh has been elected
chairman and chief executive officer
of Union Pacific
Omaha, Neb.,
and Drew Lewis
has been named
p re sid e n t and
chief operating
officer of Union
Pacific Corpora­
tion, New York,
N.Y. The an ­
n o u n c e m e n ts
were made by William S. Cook,
chairman and CEO of Union Pacific
Corporation, and became effective
November 1.
Mr. Walsh had served as execu- (
tive vice president and general man­
ager, Worldwide Engine and Compo­
nents Businesses, and as a member
of the board of Cummins Engine
Company, Inc., Columbus, Ind.
Prior to joining Cummins in 1980,
he was the United States attorney
for the southern district of Califor­
nia. Before being named U.S. attor­
ney in 1977, he practiced law in<
various public and private capaci­
Mr. Lewis had been chairman and
CEO of Union Pacific Railroad since
he joined the organization in April, i
He had previously been chairman
and CEO of Warner Amex Cable
Communications and had served as
secretary of transportation from
1981 until 1983. Prior to that, he
had pursued a successful business
career for more than 20 years.
Mr. Lewis, as well as the corpo­
rate staff, will report to Mr. Cook,
who will continue to serve as the cor­
poration’s chairman and CEO.
Mr. Lewis is due to become chair­
man and CEO of Union Pacific Cor­
poration when Mr. Cook retires at
age 65 on October 1, 1987.

We help your team get in shape to be strong
Financial Advisers. IAC gives you the help of a

National Training Department that schedules a
series of educational and sales support training
programs for you. These ongoing in-bank
seminars help the people in your loan depart­
ment feel comfortable in the role of Financial
Adviser while protecting your bank's assets,
providing financial security for your customers
and adding to your profits.
In addition, our Field Representatives contact
your bank on a regular basis to stay in tune with
your bank's particular needs. Along with the IAC
Group's personal service and personalized in­
volvement, you get another important advantage:
Simplicity. We've shortened the forms and
computerized quotations to save you valuable
For more information on how we can help
build a strong team of Financial Advisers for
your bank, give us a call.
A Full Service Company for The Full Service Bank

Ç9 -

Individual Assurance Company
1600 O ak St. • Kansas City, M O 64108
Phone toll free in Missouri (800) 892-5890,
other states (800) 821-5434.
Federal Reserve Bank of St. Louis


Mosler Inc. Names
Lisa Weber Director
A.M. Marzano, senior vice president/sales, installation and service
for Mosler Inc.,
Hamilton, Oh.,
has announced
the promotion of
Lisa B. Weber to
director, market­
ing communica­
tions. In this as­
signment, Ms.
Weber is respon­
sible for all Mos­
ler trade show
participation, advertising, publicity
and related activities in support of
the company’s comprehensive line
of physical and electronic security
products and services. Also report­
ing to Ms. Weber are the national
display center, facilities planning,
distribution and printing services,
and graphic services groups.
Ms. Weber joined Mosler in Janu­
ary, 1985 as manager, marketing
communications. Prior to that she
was administrator, business promo­
tions for Hilton-Davis Chemical Co.,
a subsidiary of Sterling Drug Inc.
A 1977 graduate of Miami Uni­

versity with a BFA in advertising stock of Cheque Enquiries, Inc., a
design, Ms. Weber resides in Cincin­ privately-held new account verifica- %
tion service based in Chicago, 111.
nati, Oh.
Cheque Enquiries has been in
business since 1974 and serves 6,500
I BAA Bancard Program Grows financial institution offices, primari­
The Independent Bankers Asso­ ly in the Midwest and in the South- #
ciation of America has announced eastern states. Its 1985 revenue was
that over 100 banks in 40 states approximately $1 million.
have enrolled in its Bancard credit
New account verification services
card issuance program in six months enable financial institutions to share
of operation.
information on involuntarily closed #
To date, 32 issuers are opera­ accounts. Most involuntary account
tional, with 16,000 Visa and Master­ closings result from persons writing
card cardholders and over 1,000 checks without sufficient funds on
merchants. Another 125 banks have deposit. If a financial institution
submitted charter enrollments and knows in advance that a new ac- •
are awaiting contracts.
count has had a checking account in­
Each issuing bank sets it own voluntarily closed at another insti­
pricing, credit criteria and market­ tution, it is better able to decide
ing goals. In addition to the credit whether to open an account for the
cards, Bancard, working in conjunc­ applicant.
tion with its processor, Telecredit,
Harold V. Haverty, president and
offers participating banks merchant CEO of Deluxe, said that Cheque
support, credit card enhancement Enquiries will supplement the new
and marketing assistance.
account verification services offered
by Chex Systems, a subsidiary of ^
Deluxe, which presently serves
Deluxe Acquires
26,000 financial institution offices.
Cheque Enquiries, Inc.
With the addition of Cheque En­
Deluxe Check Printers, Inc., St. quiries, and its data base and its parPaul, Minn., has announced that it tic ip a tin g in s titu tio n s , Chex ®
has purchased all of the capital Systems will be able to offer en-

Federal Reserve Bank of St. Louis



PERMIT NO. 30949



Drovers Bank of Chicago
Federal Reserve Bank of St. Louis

I want to know more about Drovers’ services.



I’d like information on:
□ Overline Participations
□ Liquidity Loan Participations
□ Bank Stock Loans to Individuals
□ Direct Loans to
Bank Holding Companies
□ Investment/Safekeeping Services
□ Leasing Services


Trust Services
Pension and Profit Sharing Plans
Purchase & Sale of Federal Funds
Bond Portfolio Analysis
Assistance in Raising Capital...
Meeting Capital Adequacy Standards
Cash Letters

(Please Print or Type)



Federal Reserve Bank of St. Louis




hanced account verification services
to financial institutions throughout
the United States. It is anticipated
that the operations and data bases
of Chex Systems will be available to
participating institutions within a
few months.
Terms of the acquisition were not



New Consulting Firm
Formed in Kansas City
Earl R. Fell, senior vice president
for personnel of Boatmen’s Bancshares, Inc., has
resigned from
the staff of the
St. Louis-based
b a n k h o ld in g
company to es­
tablish a new
consulting firm
in the Kansas
City area.
Mr. Fell has
formed Earl R.
Fell & Associates, which will offer
officer recruitment and human re­
sources consulting services to the
financial industry. Offices will be in
Fairway, Kansas.
Mr. Fell has been active as a per-

sonnel executive in the banking in­
dustry for more than 25 years. In ad­
dition to his service with Boatmen’s
Bancshares, he served as senior vice
president of CharterCorp in Kansas
City, a bank holding company, and
as vice president of First National
Bank of Lincoln, Neb. Earlier in his
career he served in personnel capaci­
ties with Marshall, Field & Com­
pany, Chicago and Bell Savings and
Loan Association, Chicago.
First Wisconsin Plans
New Trust Subsidiary
First Wisconsin Corporation, Mil­
waukee, has announced plans to es­
tablish a new subsidiary, First Wis­
consin Asset Management, Inc., to
provide active portfolio manage­
ment for First Wisconsin trust offi­
The new subsidiary will manage
all of the investments now managed
by the trust department of First
Wisconsin National Bank of Madi­
son. These include both individual
trust accounts and employee benefit
trust accounts. It will also manage
some of the funds—most notably,
employee benefit funds—now man­
aged by First Wisconsin Trust Com­

pany. The firm will have offices in
Madison and Milwaukee. Also benefitting from the services of the new
subsidiary wall be First Wisconsin
trust offices throughout the rest of
the state.
Scott Harkness, chief investment
officer of First Wisconsin National
Bank of Madison, wall serve as presi­
dent and chief investment officer of
First Wisconsin Asset Manage­
Following regulatory approval,
the new subsidiary is expected to
begin during the fourth quarter.

United Missouri Bancshares,
Inc. Acquires Bank
United Missouri Bancshares, Inc.
announced the acquisition of the
Missouri Farmers Bank in Mound
City, Mo. The acquisition of the
northwestern Missouri bank fol­
lowed a closing by the Missouri
Commissioner of Finance and the
Federal Deposit Insurance Corpora­
The company reopened the bank
and its facility in Maitland, Mo., in
its existing bank buildings as a facil­
ity of United Missouri Bank of St.


Bankers w ith ambition. Those are bankers
Drovers values as correspondents. If you
want to acquire one or more banks but lack
LLLC funds to do it, Drovers can help. We’re
specialists in financing bank acquisitions.
As a member of the Cole-Taylor
Financial Group, we can offer a
wealth of practical advice about
holding companies. And our large
lending limit allows us to offer substantial
bank stock carry loans. Hungry for more? Call
Drovers toll-free at 1-800-621-8991. In Illinois,
phone 1-800-572-2498. Or simply complete
the attached card.




Drovers Bank
Federal Reserve Bank of St. Louis

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

A C ole-T avlor B a n k


ABA National
Agricultural Banker
HE American Bankers Association will hold its
1986 National Agricultural Bankers Conference
November 16-19 at the Opryland Hotel in Nashville,
Chairman of the 1986-87 agricultural bankers divi­
sion executive committee is Robert W. Ranger, senior
vice president, Norstar Bank of Upstate New York,
Utica, N.Y. Vice chairman of the committee is Paul E.
Lindholm, president and chairman, Farmers and Mer­
chants State Bank, Clarksfield, Minn.
Several Midwestern bankers serve as members of
this committee. They include: James W. McBride,
director, First National Bank & Trust Co., Aurora,
Neb.; Robert C. Pearson, president, chairman and
CEO, First National Bank of Hugo, Hugo, Colo.;
Gerald E. Long, president and CEO, State Bank of
Bottineau, Bottineau, N.D.; Douglas G. McDermott,
president and CEO, Home State Bank, Jefferson, la.,
and a member of the state bankers association liaison,
Harry J. Argue, executive director, North Dakota
Bankers Association, Bismarck.
Mr. Ranger also serves as chairman of the ABA Na­
tional Agricultural Bankers conference planning com­
mittee. Bankers from the Midwest helping Mr. Ranger
are: David Breeze, vice president, First Trust and Sav­
ings Bank, Taylorville, 111.; Paul Quam, vice president,
Hayesville Savings Bank, Hayesville, la., and Greg
Stine, president and CEO, Nebraska State Bank, Ord,
Sunday, November 16
9:00 Registration until 7:30 p.m.
10:00 Musical Fellowship.
2:00 Exhibits open.
6:30 Opening Reception.
Monday, November 17
7:00 Registration until 5 p.m.
7:50 Opening General Session.
Welcoming Address—Robert W. Ranger, conf.
“The International Trade Outlook“—Dennis
T. Avery, sr. ag advisor, U.S. Department of
State, Washington, D.C.
9:00 Concurrent Sessions.
A. Identifying and Managing Risk in the
Farming Operation; B. Restructuring Agricul­
ture; C. Strategies for Financing Agriculture in
the 1990s; D. Credit and Commodities Out­
look; E. FmHA Guaranteed Loan Programs; F.
Congressional Dialogue.
10:30 Concurrent Sessions.
Sessions A-D repeated; G. Asset/Liability
Management for the Agricultural Bank, and

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

H. Preparing for Changes in the Uniform Com­
mercial Code.
11:45 Conference Luncheon.
Special Guest Speaker—The Honorable Jesse
Helms (R-NC) U.S. Senate, Washington, D.C.
1:30 Policy Forums.
• Long-term Credit for Agriculture • Transi­
tion in Agriculture: A Strategic Assessment of
Agriculture and Banking • Strategic Planning:
Preparing for a Successful Future • Managing
Your Bank’s Most Important Resource •
Managing Transition to the Future • Market­
ing the New Agricultural Bank.
3:30 Roundtable Discussion Session.
Tuesday, November 18
7:00 Registration until 5.
7:30 Concurrent Sessions.
I. Loan Review—Essential to Maintaining
Loan Quality; J. Government’s Role in Credit
for Agriculture; K. Opportunities in Feedlot
Financing; L. Dealing with the Farm Lending
Crisis: The Regulatory Perspective; M. Chap­
ter 12 of the Bankruptcy Code—Dealing with
New Farmer Protections.
8:45 General Session.
“Marketing Warfare’’—Al Ries, chmn., Trout
& Ries Advertising, Inc., New York, NY.
10:00 Policy Forums—Monday’s sessions repeated.
2:00 Commodities Marketing Seminar.
Guest speaker from the Chicago Board of
Trade, and John Gaines of Chicago Mercantile
8:30 The 75th Anniversary Celebration.
Special Guest Speaker—Mark W. Olson, ABA
pres, and pres. Security State Bank, Fergus
Falls, MN.
Wednesday, November 19
7:00 Registration until noon.
8:00 Concurrent Sessions.
N. Credit for Tomorrow: The Farmer’s Per­
spective; O. Negotiating to Win; P. Tactics for
Financing Agriculture; Q. Better Farm Finan­
cial Management: The Banker’s Role in Train­
ing; R. Saudi Arabian Cultural Exchange.
9:15 Concurrent Sessions.
Above sessions repeated.
10:30 General Session.
“Peak Performers in Business’’—Dr. Charles
A. Garfield, pres./founder, Performance
Sciences, Inc., Palo Alto, Cal.
11:30 Conference Adjournment.


If we're noi your
bank, you're
w riting off
the best service
in the region.
Frankly, you're short-changing your­
self and your custom ers by not using First
Interstate Bank of Denver as a correspon­
dent bank.
That's because no other bank in the
Rocky M ountain region approaches our
experience, resources, and breadth of
You're missing the business know­
how of the region's oldest bank, one that
understands your m arket and has helped
large and small financial institutions suc­
ceed for over 100 years.
You're missing the strength and flex­
ibility of the m ultistate First Interstate
Bank system, w ith m ore than $49 billion
in assets.
And you’re missing a range of com­
prehensive and technically advanced
products that can be tailored to your
needs today and tomorrow.
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Northwestern Banker, November, 1986

Warm wishes from your friends at First Banks Correspondent Banking.
Federal Reserve Bank of St. Louis


First Banks
Members First Bank System

Members FDIC


Meet ABA President Mark Olson

. .key programs for coming ABA year


A N orthwestern B anker interview with
MARK W. OLSON, President
American Bankers Association
President, Security State Bank
Fergus Falls, Minn.

URSUING broadened product opportunities with
Congress, and expanding educational programs to
® assist bankers in marketing those products will be two







goals of Mark W. Olson, who became president of the
American Bankers Association at the annual ABA
convention October 28 in San Francisco.
Mr. Olson has solid experience in ABA work as a
foundation on which to build his own personal objec­
tives for his ABA presidency this year. He has served
on the ABA board of directors since 1982 and had in­
valuable service as vice chairman and then chairman of
the vital and prestigious Government Relations Coun­
cil. Following that service, he was elected by his peers
in 1985 as president-elect to succeed Don G. Senterfitt,
who served as ABA leader this past year with great
distinction. Mr. Senterfitt is vice chairman of SunTrust
Banks, Inc., a $9 billion asset multi-bank holding com­
pany headquartered in Orlando, Fla.
Legislative Area Is Number One
Responding to the inquiry about his objectives for
the year, Mr. Olson stated, “My number one interest,
of course, is in the legislative area, trying to achieve
legislation to allow banking to broaden its product op­
portunities. I think, first of all, that the competitive in­
equity which has always been apparent to large banks
is now becoming more and more apparent to smaller
banks as well. I think there is a growing sentiment
among bankers about the urgency for legislation.
There also is some sentiment in the Congress that
there are some inequities that need to be corrected and
that the consumer has something at stake. So, it will
be my number one objective to try to invigorate the
Federal Reserve Bank of St. Louis

grass roots banker-to-Congressman effort to make
some progress in this area.
Educational Programs Also Important
“A companion route, I think, will be an effort in the
educational and professional development programs
that are every bit as important. We’ll start the year by
getting a group of bankers together to look at, for lack
of a better term right now, the emerging issues in the
banking industry, then try to have a thorough review
to assure that what we’re doing in the area of educa­
tion and professional development ‘fits’ what’s hap­
pening in the banking industry and where it’s going.
We want to make sure that what we’re doing in educa­
tion and professional development is consistent.
“Those two broad areas are important to us.”
In discussing the current structure of ABA, Mr.
Olson said, “With respect specifically to the role of the
ABA we’re also going to look carefully, of course, at
how the ABA is relating to its membership, trying to
make sure we’re doing our job capably. That structure
is working well now.”
Mr. Olson was asked specifically how he regards the
pilot program that includes his state, Iowa and several
others, by having active and retired bankers calling on
ABA members and potential members. “Our initial
reading on that is that it’s a very positive effort,
especially by comparison between the several states
where we do have the program and the states where we
do not have the program. Membership retention, for
example, is much stronger in states where the program
exists. We feel bankers are responding to having their
fellow bankers call on them and share what’s happen­
ing in the ABA. In unit banking states with their large
numbers of banks it’s been very good. We will certain­
ly look to see how we can expand this program.”
The Strengths of ABA
Mr. Olson will be taking over the helm of ABA at
the time it observes the second anniversary of the new
governing structure that was designed to represent the
Northwestern Banker, November, 1986

broad membership, with the emphasis being on an
even distribution among the three size categories, and
with one-third turnover of the members each year. “ I
think it takes a few years to try out and get used to a
new system,” Mr. Olson commented. He added,
“We’re going to expand the board activities and make
the board members initiators to adopt a more pro­
active stance and not just be re-active.”
Reflecting on the many strengths of ABA, Mr.
Olson added, “ I am a strong believer in the Govern­
ment Relations Council and the Banking Leadership
Conference. The Conference, which meets two or three
times a year, has helped generate a lot of interest and
legislation. It has helped get bankers very informed
because of substance in the meetings and it also gets
them involved in the process of changing the laws by
doing private lobbying.”
Mr. Olson has more than usual interest in following
legislation through the halls of Congress and in the lob­
bying process, for he has worked both sides of the leg­
islative desk. A native of Fergus Falls, where he was
born March 17, 1943, Mr. Olson was graduated from
St. Olaf College in Northfield, Minn, in 1965 with a
B.A. degree in Economics. Following a stint of active
Army duty, he began his banking career with the First
National Bank of St. Paul in 1966.
He left that bank in 1971 to serve two years as legis­
lative director in Washington, D.C., for Minnesota
Congressman Bill Frenzel, and later serving as district
director for the Congressman in Minneapolis until
It was in 1976 that he joined the Security State
Bank, which had been chartered in 1956. One of the
organizers was Mark Olson’s father, who served in an
inactive capacity as president and then chairman until
his death in 1974. Mark’s mother died in 1981. He has
one brother and three sisters. Although the senior Mr.
Olson was not the major stockholder, the Olson family
has since increased its ownership of the holding com­
pany to a majority position. Mark Olson is married to
Renee Korda, who recently completed her M aster’s
Degree in Business Administration. They have a son,
Benjamin, age 14, and one daughter, Stephanie, age 4.
His years with Congressman Bill Frenzel, Mark
Olson notes, served as good training for his work the
past several years with ABA. He recalls, “ I spent
many, many hours watching the committee functions.
I remember listening to ABA presidents testify, never
even thinking I ’d be in that same seat someday. I was
fortunate that when Bill Frenzel got to Washington he
was appointed to the Banking and Currency Commit­
tee, because I had a banking background coming into
the job and I was able to make a contribution at that
With that background, and with his past several
years’ experience of testifying before Congressional
and regulatory committees in Washington, Mr. Olson
is in a unique position to lead any legislative efforts ex­
erted by ABA.
Big Banks vs Small Banks
When he was asked if the interests of major banks
and community banks alike can be served equally well
by the legislation that needs to be pursued, Mr. Olson
stated, “Let me come at that from a little different
point of view, and then I ’ll come at it directly.
“The things that have divided banks are, to a great

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

Bankers Association affairs concurrently with his ABA work. He
is pictured here at the 1985 MBA convention with the late Willis
Alexander (center), who had retired as ABA exec, v.p., and Truman
Jeffers, long-time exec. v.p. of the MBA.

extent, behind us. The most obvious of them was the
interstate banking question. When interstate banking
was part of the legislation we were considering at the
federal level, we had great difficulty reaching an ac­
cord. That’s been the most emotioned issue in the in­
dustry in this century. It shouldn’t surprise anybody
that we had difficulty coming to an agreement on it.
But now, 39 states have passed or advanced interstate
banking and I find as I move around, with some not­
able exceptions, that we’re free of acrimony anymore
on that question. I feel there’s been a moderation of
views on both sides.
“Also, our fight with the s&ls continued for a long
time; now, we have more in common.
“All in all, bankers now have more accord, although
differences, but I feel the climate is less divisive.
“Now, coming in the other way, I think that clearly
banks in the most competitive areas of the country feel
the need for expanded products and authority. I ’ll give
you a couple of examples.
“Community bankers used to hold a pretty good
market in automobile loans but now, with securitiza­
tion of auto loans taking place, bankers can no longer
compete. So, effectively, the market has been taken
away from us. Another example is where people come
in, shopping for added opportunities other them what
deposit funds return banks will offer. Now, we can’t of­
fer mutual funds, yet the securities industry can offer
mutual funds, plus they can take care of our custo­
mers’ personal funds in a different environment and
wind up providing both services.”
Mr. Olson went on to relate, “We have been told by
Charlie Breuere that community banks often have a
higher average cost of funds than do the money center
banks. So, we have to look for opportunities for all
banks to be competitive and look for opportunities to
generate new income that is not capital intensive; for
example, real estate and insurance brokerage.”
Trade Association Relationships
One important area of responsibility for each ABA
president is maintaining good working relations with
other trade associations, especially those within the fi­
nancial industry. The Banking Leadership Conference
is an excellent example of this cooperation, for repre­
sentatives of other financial associations are invited to












Mark and Renee are pictured at home with Benjamin, 14, and
Stephanie, 4.

attend and participate in the consensus process of
those meetings. The most notable differences of opi­
nion between associations, when they do arise, are gen­
erally between ABA and the Independent Bankers As­
sociation of America. Mark Olson was asked for his
comments on how he will try to work with other
associations and this was his response:
“I think this past year we’ve had some very positive
things result from working together with IBAA. One
area in particular, where we had a joint committee, was
looking at the crisis in agriculture and what we could
recommend to Washington to achieve a solution. This
was our ABA-IBAA Ag Task Force.
“I think th a t’s a good example of the kind of credi­
bility the community banks of the nation have in
Washington when we speak with one tongue. In both
ABA and IBAA we had bankers who understood the
problems and were genuinely interested in working for
a solution. Personally, I enjoyed that effort and think
it benefitted banking.”
When asked if he would try to keep that Ag Task
Force going, Mr. Olson replied, “ I think that was a
Task Force with a purpose, an objective that was ac­
complished. If we had some reason to do something
like this again we could reconstitute that Task Force,
or put together one just like it. I like the idea of a Task
Force as opposed to an ongoing committee.
“I would have no hesitation to work with the IBAA
or any of the other trade associations. I t ’s been my ex­
perience working with Chuck Doyle, the current head
of IBAA, that after getting together on a couple of oc­
casions we have many reasons to be working together.
The next president of the IBAA will be Tom Olson,
The ABA convention in San Francisco was
in progress, October 25-29, when this issue
of the magazine was on the press. An on-thespot report with pictures will be published
in the December issue.
Federal Reserve Bank of St. Louis

president of the Lisco State Bank out in Lisco, Neb.,
and I think Tom is obviously a very dedicated banker.
He’s personally very interested in the best interests of
banking and I would feel very comfortable working
with Tom on anything right now.”
Those sincere comments brought up another point
that is often tossed around by many community bank­
ers, as well as major city bankers, and that is whether
the president of a small ($35 million asset) bank in a
rural community like Fergus Falls, Minn. (pop.
12,500), can lead and speak for a national trade associa­
tion just as effectively as a senior officer of a $9 billion
multi-bank holding company and vice versa. That is
the comparison of size between Mark Olson’s commu­
nity bank and Mr. Senterfitt’s holding company in
Florida. The most vital, telling sign of success for the
democratic process that allows executives from small
banks as well as large banks to lead ABA is the fact
that it has been working so well for many years. Mark
Olson observed, “If each type of banker genuinely has
the interests of the American public and all in banking
at heart, then that person can follow in the same posi­
tion held by an executive from the opposite size organi­
zation if he accepts and performs the duties called for
by his office. As ABA president, one is looking at do­
ing what can be done for the good of the entire banking
fraternity, not at just what will benefit his particular
size institution.”
The glue that helps hold ABA and any other good
trade association together is the quality of the head­
quarters staff and the policies in place to guide their
daily activities. ABA has high respect among other
trade associations, regulators, and all branches of the
federal government. Heading that key staff at Wash­
ington, D.C., headquarters is Donald G. Ogilvie, execu­
tive vice president. Mr. Ogilvie is in his second year of
following in the footsteps of the late Willis Alexander,
who held that post for 15 years before retiring. The
zeal and exceptional talents Don Ogilvie brings to his
job are described by Mark Olson when he says:
“Don has been very widely and warmly accepted by
the bankers he works with. First of all, he is extremely
bright. He is extremely dedicated and he’s an easy per­
son to work with. Considering that he was following
Willis, he has done and been everything ABA has ex­
pected. Don has traveled extensively around the coun­
try meeting with everybody in those places he visited.
I would expect that you will see Don Ogilvie at any of
those meetings where he can make a contribution.
He’ll be wherever the need is.”
The same is true of Mark Olson. He will be where
he’s needed, just as it traditionally has been true for
each of his predecessors, whether from a large bank in
Orlando, New York, Chicago, San Francisco, or
whether from a smaller bank in Fergus Falls, Des
Moines, Osceola (Wis.), Owatonna (Minn.), which was
home for a fellow Minnesota banker, Cliff Sommer,
who served as ABA president in 1970-71. Mark Olson
represented all ABA banks capably and forcefully
when he testified many times before Congressional
committees as chairman of ABA’s Government Rela­
tions Council and in the past year as president-elect.
The nation’s bankers will find this 43-year-old ABA
president to be an articulate spokesman who truly be­
lieves in “doing what can be done for the good of the
entire banking fraternity. ’’
Northwestern Banker, November, 1986




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With pursuit of opportunity must come:

“Risk Management Awareness”
First Union National Bank, Charlotte, N.C.
President, Robert Morris Associates

...delivered at RMA's 72nd Annual Fall Conference recently at the
Hyatt Regency, Houston, Tex.


REMEMBER when I first learned about credit risk.
It wasn’t in the credit department or the training
program. It wasn’t during my time as an apprentice or
calling officer; it wasn’t at Stonier or at lending school.
It was about 2:00 in the morning 15 years ago when
I really, finally, understood what risk was. I had been
in the bank about four years at that time and was fair­
ly new in a credit administration job in Greensboro —a
job for which I was far too green. I had been working
on a problem loan for the previous couple of weeks, try­
ing to get it restructured so we could get our money
I was actually investing more time and energy in
that loan than I realized. At 2:00 in the morning I
threw back the covers and leapt from the bed, waking
and scaring my wife in the process. As she woke me up,
I was braced against the window frame holding up the
bedroom wall yelling, “They’re taking all my col­
lateral.” Lynn said she thought it might be about time
for a vacation! It had finally sunk in that we might not
get all of our money back on this loan — M Y loan.
Risk Became Real
Risk had been an academic concept up to that point.
It was something to be spread and analyzed, plotted
and graphed. But that night it became real — not
scary, just real. It was something to be expected and
managed for — a tangible force affecting our portfolio.
I think in part it’s deciding to take problem loans and
potential losses personally — at least to a degree —
and understanding that they can happen to you.
I don’t really expect that most of you have joined
me on the lunatic fringe by having nightmares about
your loans. However, I would wager that most of you
do take them personally. You would rather win than
lose and, if you think back, you might be able to iden­
tify the learning experience that made credit risk real
to you.
Those kinds of experiences come a lot less often in
good times then they do in troubled times. Many of us
may have a whole generation of lenders in our banks
who, despite much training, haven’t really gone
through this “rite of passage” into the understanding
of risk.
Comments from Texas
In some parts of the country, though, they’re grow­
Federal Reserve Bank of St. Louis

ing up pretty fast. I had the occasion about a month
ago to travel in Texas, calling on the major back hold­
ing companies with Clarence Reed and Orman Taylor.
Unlike a trip to Texas several years ago, we did not
have trouble getting room reservations. We found
many of our Texas friends in a “contemplative” mood.
They talked about what was going on in Texas and
what might have led them into the situation in which
they now find themselves. You would be interested in
some of their comments:
• “We didn’t believe it could happen to us. No one
forecast the possibility of significantly lower oil
• “We didn’t understand how much of a one-indus­
try town Houston really was — how many things
were tied to oil one way or another.”
• “The rapid growth of an upward spiral can become
a re-enforcing spiral down with problems com­
pounding problems.”
• “ It was like the Arabs came in and took half the
money out of Texas.”
• “Most of our officers had never had to ask a custo­
mer to pay his loan, and we are paying a high price
now for educating our people.”
• “Murphy’s law is alive and well. Everything that
could go wrong did go wrong — we haven’t seen
the swarms of locusts yet, but we keep looking
over our shoulders.”
• “We didn’t exercise much control within our hold­
ing company. We weren’t all lending money as
smart as we collectively knew how. Some of our
banks would continue to make a particular kind of
loan after another office had determined it wasn’t
• “Our banks were driven by size and volume, and
we simply took our eye off the ball.”
• “We were great on maximizing the opportunities
but not so hot on managing the risks.”
Learning Opportunity!
At any rate, not all was gloom and doom in Texas.
In the face of their problems, the Texans were looking
for light sides of the issues and identified that, when
you are overwhelmed with opportunities, there is less
remaining that can go wrong. Some also have con­
cluded that it sounds better to say that 95% of one’s
portfolio is accruing than to say that 5% is not accru­
ing. They were also quick to point out how valuable
Northwestern Banker, November, 1986

this learning opportunity was for the portion of their
account officers who had not really come to grips with
what risk is: expensive but valuable!
Come to think of it, there may have been a few night­
mares in Texas in the last year or two. Welcome to the
Please know that I offer these observations for what
they are: comments by banker friends of ours who
want us to learn from them as they dig out — as they
surely will. I ’m not putting them down or pointing a
finger. They are a vitally important part of RMA and
the banking industry in this country. They have been
very successful for a very long time. But, neither they
nor we want us to leave Texas without taking some
benefit from the traumas they’re undergoing.
I ’m reminded of a bank stock analyst who was re­
ported to have taken all southeastern banks off his
“Buy List.” When asked by his incredulous co-workers
why he had taken this action on the very group of
banks that all other firms had on the top of their lists,
he simply said, “ I t’s their turn next. Nothing stays
good forever.” Our economies are cyclical, and we each
take our turn in the barrel.
Opportunity and Risk
There are two very real elements to managing a
bank or any other business in these times: the identifi­
cation and pursuit of opportunity on one hand, and the
management and mitigation of risk on the other. The
opportunity side of the equation is common to all busi­
nesses. The criticality of the risk management side is a
function of the leverage and, thereby, the volatility, of
the business. Leverage is where banks really excel!
Go back to the Texans’ comments for a minute.
Wherever any of us went to school, a 95 was an A or
A+. A 95% was pretty good for effort and outstanding
for efficiency. But when it comes to problem loans and
nonaccruals, it’s not an A or a B or even a C. We have
to be almost perfect to be given a good grade by an­
alysts or regulators or shareholders. And we have to
repeat that performance over and over throughout the
cycle or we run the risk of being a dropout statistic.
But banking is not just a risk business. If we all
focus only on the risks inherent in what we do, in the
things that might go wrong, then the economy will dry
up and blow away and the banks right along with it.
The pursuit of opportunity is at least as important in
banking as the management of risk. How well we
pursue those opportunities will set the heights to
which our organization may rise in the good times of a
business cycle. How well we manage the risks, how
proactive and prescient we are, how dilligent we may
be in ensuring that the disciplines are maintained even
in the good times . . . all of these things will set the
floor under our performance during the bad times in
the cycle.
RMA Focuses on Risk Management
RMA’s role is to focus on the risk management side
of the equation, the maintenance of professionalism
within our industry. This focus is not to the exclusion
of opportunity management. But if RMA, as an orga­
nization, doesn’t speak consistently to risk manage­
ment and if we as RMA members within our banks
don’t focus on risk, then perhaps no one will. All of our
banks have lots of people pursuing opportunities.
In some cases those people are the only ones watch­

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

ing the risks as well. In other organizations a control
group is established and specifically charged with
focusing on the risk management side of the equation.
This kind of charge gives the clarity of mission that
enhances the prospects of good performance.
Clear Policies and Procedures
Part of the process of managing the awareness of
risk within an organization is to have clearly drawn
policies and procedures to be followed during good
times and bad. It was not too very long ago that, as an
industry, most of our credit risk was in the loan port­
folio. A written, well-thought-out loan policy really
was a risk management policy.
We have broadened our product line dramatically to
the point that while our capacity for risk continues to
be one of our major products, it isn’t all represented in
the loan portfolio anymore. Especially in the larger
banks, a significant part of the risk has moved off the
balance sheet. This prompts the need on the part of our
banks to move to a formal risk management policy.
This policy would identify and, to the extent possible,
quantify the types of risks an organization was taking,
the magnitude of those risks, and management’s de­
sired allocation of those risks to various line units or
products within the organization.
I fully expect that the regulators, as they move
toward their risk-based capital guideline, will be en­
couraging us to both develop and document this kind
of risk awareness within all of our banks.
RMA is dedicated to increasing the competence and
professionalism of bankers in the commercial arena.
All of us are engaged in both the pursuit of opportuni­
ties and the awareness and management of risk,
whether at the credit department level, the loan officer
level, as a line manager, credit administrator or CEO.
That’s the business that RMA is in — the development
of skills and techniques and systems that will make us
as individuals in our respective institutions the very
best we can be in the long haul.
Challenges Are Unprecedented
The challenges we face today in driving our institu­
tions safely through the opportunities that surround
us are unprecedented. Continued profitability will take
a keen alertness to our environment, both economically
and competitively. Safety will require of us a sharp
analysis and management of the many different types
of risk we face. To get through this with our collective
spirit intact will call for a deep appreciation of our peo­
ple resources and the guidance and leadership that
they need to help us get the job done. Robert Morris
Associates has put together this Fall Conference pro­
gram to address these focused areas of Environment,
Risk, and People in the hope that it will help us all be
better bankers.
You will all be relieved to know that I haven’t had
any more nightmares about my loan portfolio. That
loan 15 years ago worked out without a loss, but I had
a very different appreciation after that for the conse­
quences of risk and the level of awareness and the sys­
tematic approach to risk management that would be
required to successfully run a portfolio.
RMA really does stand for risk management aware­
ness. With a more consistent application of that
awareness and an eye on our vulnerability, maybe we’ll
all sleep better when times get tough.

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

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

Marquette Bank

M em ber FDIC

Correspondent Services Division
Federal Reserve Bank of St. Louis


Bankers Attend MBA District Meetings
OMINEES for 1987-88 Minne­
sota Bankers Association offi­
cers were endorsed at the MBA Dis­
trict Meetings held September 9-11
and 22-25 in seven locations. Offi­
cers endorsed were: James R. Jorstad, president, Citizens State
Bank, Hayfield, for MBA president;
A. William Sands, chairman, West­
ern Bank, St. Paul, for MBA first
vice president; James A. Hearon,
III, chairman, National City Bank,
Minneapolis, for MBA second vice
president, and R. James Gesell,

president, Cherokee State Bank, St.
Paul, for MBA treasurer.
Over 1,000 bankers attended the
meetings. Topics discussed during
the afternoon program included
state and federal legislative issues,
what regulatory agencies expect
from banks, the economic environ­
ment including the agricultural
situation, MBA programs, and ser­
vices for member banks, and plan­
ning for the future. Also during the
program, each district held its an­
nual business meeting and elected

PRESENT during the MBA District 5 Senior Officer Workshop and District Meeting were
from left: John S. Jackson, MBA, general counsel, District 5 Pres; Ernest Pierson, pres. &
chmn., Norwest Bank Midland, Mpls., and MBA Exec. Vice Pres. Truman Jeffers, Mpls.

new district officers. The 1986-87 of­
ficers elected for the nine MBA dis- £
tricts are:
D istrict 1-P resident—Harvey
Fossum, Goodhue State Bank; Vice
President—Wilmer C. Brosz, Norwest Bank Northfield; Secretary/ £
Treasurer—Gerald W. Seitz, Eastwood State Bank, Eyota.
District 2-President—F.A. Rodri­
quez, First National Bank, Elmore;
Vice President—Howard Reget, #
State Bank of Hamburg; Secretary/
Treasurer—Patricia Loonan, State
Bank of Easton.
D istric t 3-P re sid e n t—M artin
Chorzempa, Richfield Bank and #
Trust Co.; Vice President—Forrest
M. Glewwe, Southview Bank, South
St. Paul; Secretary/Treasurer—D.H.
Nicolai, First State Bank of Castle
District 4-President—Lawrence
Anderson, Marquette Bank Univer­
sity, Minneapolis; Vice President—
E. Roger Cunningham, North Star
State Bank, Roseville; Secretary/ •
Treasurer—Michael Schrantz, Norwest Bank Central, Minneapolis.
D istrict 5-President—Dale F.
Hanson, First Bank St. Paul; Vice
President—Richard Schoenke, First ®
Bank of St. Paul; Secretary/Treasurer—Gerald A. Bilski, Midway
National Bank, St. Paul.
District 6-President—Dale Emmel, First State Bank, Sauk Centre; ®
Vice President—Bernie Roscoe,
First National Bank, Long Prairie;
Secretary/Treasurer—James Simp­
son, Bank of Elk River.
District 7-President—Robert P. ®
Reiter, Farmers and Merchants
Bank of Balaton; Vice President—
Richard Setterberg, Pope County
State Bank, Glenwood; Secretary/
Treasurer—Roy R. Schoon, Peoples ®
State Bank, Slayton.
District 8-President—Steven Wil­
cox, Grand Rapids State Bank; Vice

TAKING part in the regulatory panel discussion, “ What You Should Expect From Examiners,” were from left: James Miller, deputy com­
missioner of commerce, St. Paul; Allyn Long, asst, deputy commissioner of commerce, St. Paul; David Peat of Larkin, Hoffman, Daly &
Lindgren law firm, Mpls.; Larry McDaniel, dir., OCC, Mpls.; Cary Hiner, FDIC asst. reg. dir., Kansas City, and Ralph Chewning, sr. bkg.
analyst, FDIC, Kansas City.

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

Prairie. David Landswerk, Wayzata,
was the evening speaker for Septem­
ber 9-11, and addressed “I t ’s Up to
You.” The evening speaker for Sep­
tember 22-25 was Ralph Hood,
Huntsville, Ala, who addressed
“Clear On Top.”
Meetings were held in Rochester
(District 1), Sleepy Eye (District 2),
Twin Cities (Districts 3, 4, & 5), St.
Cloud (District 6), Marshall (District
7), Duluth (District 8) and Crookston (District 9).
Minnesota News








President—Stuart E. Henrickson, serve three year terms beginning in
First National Bank, International June 1987: Donovan Fisher, The
Falls; Secretary/Treasurer—Scott Roseville Bank, to represent MBA
District 4; Bill Bunker, First Na­
Kregness, State Bank of Tower.
D is tric t 9 -P re sid e n t —D avid tional Bank, Anoka, to represent
Aaberg, Pelican Valley State Bank, District 3, and Dwayne Bruns, AnPelican Rapids; Vice President— nandale State Bank, to represent
Rick Anderson, Valley State Bank, District 6.
The afternoon program was fol­
Oslo; Secretary/Treasurer—Steve
Motzko, Northern National Bank, lowed by a social hour and dinner
presided over by MBA President
The following new MBA board of Roy W. Terwilliger, president, Su­
directors members were elected to burban N ational Bank, Eden
ton, la. Prior to that, he was a vice
Pres. Named in Northfield
and manager of the corres­
H.B. (Bernie) Renander has been
department and presi­
elected president and chief executive
dent of Security Agri-Credit Corpo­
officer of Norration.
w e st
B ank
Purchase Agreement Signed
He was re­
First Bank System has an­
gional vice presi­
it has signed a purchase
dent and control­
for the sale of First Bank
ler for Norwest’s
which upon regula­
R egion
merge with the
based in Bloom­
of Le Roy,
ington. He suc­
The bank
ceeds Wilmer C.
Brosz, who has
been elected chairman of the NorthAt year-end 1985, First Bank
field bank board.
Valley had assets of $19.8
President of Norwest Bank
The First National Bank of
Northfield since 1970, Mr. Brosz has
assets of $8 million. Spe­
been with the Norwest organization
terms have not been
since joining Norwest Bank in Aus­
tin in 1959.
In August, First Bank System
Mr. Renander has been regional
announced its plan to restruc­
vice president since Norwest orga­
its banking assets by offering
nized its banks into regions in 1982.
He previously had served in the cor­ to sell 28 of its banks with 45 offices
porate office in Minneapolis as vice first to employees, directors and
president, finance planning and ad­ community members. Agreements
have now been signed up for 38 loca­
Prior to joining the Norwest orga­ tions.
nization in 1969, he had worked in
accounting positions with Napco In­ Appointed in Bloomington
Jack W. Weber has been ap­
dustries and The Pillsbury Com­
pointed as vice president of Metropany.
Bank Bloomington/Minneapolis Air­
port. Mr. Weber was formerly vice
Changes Told in Fairmont
The Fairmont National Bank has president of First Western Bank,
announced the promotion of James and manager of the Brooklyn Center
A. Haeckel to chairman of the Branch. He will be officing in Metroboard. He has been with the bank Bank Bloomington.
since 1947, serving most recently as
its president. He will continue to be New Service Added in Edina
an active officer of the bank.
A new trust services division has
James M. Hongslo has been opened at Marquette Bank Edina.
elected president and chief executive
Headed by John R. Fox, vice
officer. He joins the bank after serv­ president of trust services, the new
ing 20 years with Security National trust sales office offers the full range
Corporation in Sioux City, la., most of trust products, including personal
recently serving as president of the trust services. Mr. Fox joins the
First National Bank of Akron, la., Edina facility from Marquette Bank
and the First State Bank of Maple- Minneapolis, where he was in charge
Federal Reserve Bank of St. Louis

of branch office trust services.
Mr. Fox said Marquette Bank
Edina is the first of the Marquette
Bank Minneapolis branches and affi­
liates to provide in-house trust ser­
vices, and that others will follow.
Joined in Mapleton
Marvin J. Kimm has joined The
First National Bank of Mapleton as
assistant vice president and ag rep­
resentative. He joins the bank from
The Rockford State Bank of Rock­
ford, la., where he served as vice
president and ag representative
since 1984.
Brainerd Bank Aids Program
The Otto Bremer Foundation, in
cooperation with First American
Bank in Brainerd, has announced an
$8,000 grant to the Women’s Center
of Mid-Minnesota in Brainerd. The
grant is to support the center’s child
advocacy program.
Aided by the Bremer Foundation
grant, the center will assign a spe­
cially-trained staff person to work
with children who have had violence
directed towards them. This staff
person will work with the children
individually and in small groups.
Since its inception, the Women’s
Center has housed 1,283 children,
averaging 140 children per year who
are either abused or who witness
severe violence in their homes.
The Women’s Center is a non-pro­
fit organization that was organized
in 1977 to serve as a shelter for bat­
tered women in the five county area
including Cass, Crow Wing, Todd,
Morrison and Wadena.
Named in Edina
Paula Wanna has been named per­
sonal banking officer, retail division,
at First Bank Southdale, Edina.
Joining the bank in 1978, she most
recently served as personal banker.
Northwestern Banker, November, 1986


Tw in C ities
Norwest Corporation has an­
nounced that W.G. (Jerry) Jurgen­
sen has been named senior vice
president and treasurer of its bank­
ing group.
Mr. Jurgensen was president of
Norwest Investment Services, Inc.
(NISI), where he was succeeded by
A. Rodney Boren, Jr., executive vice
president/sales of NISI.



Mr. Jurgensen had headed NISI
since it was organized as a subsidi­
ary of Norwest Capital Markets in
1984. Since joining the Norwest or­
ganization in 1973 at Norwest Bank
Omaha, he has served as assistant
treasurer of the corporation and
with Norwest Bank Minneapolis as
manager of its asset/liability divi­
sion and head of its fund manage­
ment and treasury group.
As the new president of NISI, Mr.
Boren heads a subsidiary that oper­
ates with a staff of 180 in 12 offices
in eight states.
Since he joined Norwest at Nor­
west Bank Minneapolis in 1974, Mr.
Boren has served in its international
and national banking departments
and, since 1981, has managed vari­
ous units within NISI.
* * *
First Bank System has annonced
that it has taken three special ac­
tions during the third quarter that
relate to the company’s investment
and loan portfolios. Including the ef­
fect of these actions, the company

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

expects to report net income of
about $51 million for the third quar­
In the third quarter, First Bank
System expects to add about $275
million to its loan loss reserve, and
to charge off about $275 million of
loans and write down about $30 mil­
lion of other real estate related
assets. These actions resulted from
a comprehensive review of its entire
loan portfolio. Particular attention
was directed toward the energy, real
estate and agricultural related loan
portfolios of all FBS affiliated
In a second action, First Bank
System recorded gains of about
$300 million from the sale of invest­
ment securities.
First Bank System has added ap­
proximately $110 million to its nonperforming assets of which the larg­
est portion was represented by real
estate. Many of these loans are cur­
rent in terms of principal and inter­
est but FBS believes that future
debt service will be difficult and,
therefore, placed them on a non-per­
forming status.
After charge-offs and write downs
of about $305 million, non-perform­
ing assets are expected to be re­
duced to about $525 million, or 1.9
percent of outstanding assets at
September 30, 1986, compared with
$718 million at June 30, 1986. The
loan loss reserve is expected to total
approximately $350 million at Sep­
tember 30, 1986, or about 2.3 per­
cent of total loans. As a percent of
non-performing assets, the Septem­
ber 30, 1986 loan loss reserve is ex­
pected to be about 67 percent.
In a third action, First Bank Sys­
tem announced its intent to sell its
property resources subsidiary. This
sale will result in a pre-tax loss of
$25 million in the third quarter. An
additional loss of $10 million related

to this transaction had been recog- •
nized in the second quarter. The pro­
perty resources subsidiary was
formed in 1983 to hold the recrea­
tional real estate loans that were
assumed at the time of the acquisi- ®
tion of First Bank Milwaukee in
* * *

The board of Piper, Jaffray &
Hopwood Inc. has announced the
election of the following officers to
vice president: Susan M. Barnes,
Minneapolis; Kenneth G. Hansen, £
Salt Lake City; Steven Jacobs, Min­
neapolis; Don J. Larkin, Salt Lake
City; Silas L. Mathies, Jr., Minnea­
polis; William Trent Ridd, Salt Lake
City; John P. Sten, Minneapolis; #
William (Rex) Thornton, Salt Lake
City, and James C. Wheeler, Salt
Lake City.
Chad A. Caywood, Salt Lake City,
has been elected to assistant vice #
president, and Charles H. Hayssen,
Minneapolis, has been elected to
* * *

American National Bank of Saint
Paul has announced that Steven
Cherrier has joined the bank as
assistant vice president bonds and ^
investments. He was previously em­
ployed by First Interstate Bank of
Billings, Mont. Prior to that he
worked at the First Bank of South
Dakota in Sioux Falls and at Piper, ^
Jaffray & Hopwood in Duluth.
In addition, Monsignor Terrence
J. Murphy has been elected to the
bank’s board. He has been associ­
ated with the College of St. Thomas q
in St. Paul, since 1954 and has
served as its president since 1966.
(Turn to page 37, please)


As President of First State Bank of Apple Valley,
Joe Nordlund’s philosophy is simple—the com­
munity you serve determines what type of bank you
have to be. In his fast growing, suburban community,
that means anticipating rapidly changing needs,
filling them, and doing so with absolutely top quality
personal service.
Recently, First State Bank moved their
correspondent business to American, because our
philosophy is the same as Joe’s, and because we
don’t compete for his customers. For Joe, top quality
personal service means professionals like Jim
Russell, Vice President and Manager of Correspon­
Federal Reserve Bank of St. Louis

dent Banking, who brings value to a correspondent
relationship that goes far beyond quality products.
That value includes a personal commitment to
exceptional service and a real desire to help
correspondents, like Joe and the First State Bank,
If you’re looking for a partner to help you
succeed, perhaps it’s time for a change.


B A N K .




Bankers Respond to Banclnsure with
Requests for Hard-to-Place Coverages

A N orthwestern B anker
interview with
Executive Vice President
Minnesota Bankers Association
Minneapolis, Minn.

HEN Banclnsure, Inc. became
operational January 1, 1986
(Feb. issue, pg. 10) that was the cul­
mination of two years of extensive
work on the part of five state banker
associations to make this new insur­
ance available for the 2,217 banks in
their states. As noted earlier, the
five organizing groups are Minne­
sota, North Dakota, South Dakota,
Wisconsin and Oklahoma, with
headquarters maintained in Okla­
homa City where C.L. Frates Gen­
eral Insurance Agency processes all
of the company’s business on behalf
of participating banks in the fivestate region.
Interviews with state association
executives last month revealed a
great deal of initial activity in place­
ment of insurance coverages that
have been difficult to obtain in re­
c en t
m o n th s
b a n k s.
Banclnsure’s stated goal is to “pro­
vide a stable, long-term source for
coverages at costs competitive or
lower than the market.” The cover­
ages provided currently are the Fi­
nancial Institutions Bond or Bank­
ers Blanket Bond, Excess Employee
Dishonesty Bond, and Comprehen­
sive General Liability coverages.
The latter is a package of property
and liability coverages such as fire,
boiler, auto and theft.
Banker Owned and Driven
Truman Jeffers, executive vice

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

president of the Minnesota Bankers
Association, Minneapolis, says
Banclnsure is “banker association
owned and driven. The company is
designed exclusively for writing cov­
erage for bank risks, as opposed to
u n d erw ritin g risk s for o ther
The need for Banclnsure arose, he
said, because traditional markets
began drying up or continued to
hand member banks sky-high pre­
miums. Those rising rates and eva­
porating markets were making it dif­
ficult, and in some cases impossible,
for banks to obtain coverages re­
quired by regulatory fiat and by
good business practice. “ Three
years ago,” Mr. Jeffers recalls, “we
began addressing this critical need
through MABSCO (a 12-state
banker association group organized
to provide commonly used services
to member banks of the 12 associa­
tion at more economical costs). Kan­
sas Surety had already been formed
to serve the insurance needs of
banks in Kansas, Nebraska and Mis­
souri. Earlier, The Iowa Bankers As­
sociation had organized Iowa Bank­
ers Insurance & Services, Inc. (IBIS)
to assist its members with various
coverages. Those were and continue
to be successful programs, but the
rest of us felt the need for our own
approach and we began seriously
two years ago to look at formation sof

a company of our own.
Initial Group Formed
“ It soon developed that the five
states now comprising Banclnsure
ownership were interested so we
formed a group with 10 board mem­
bers—made up of the 1984-85 state
association presidents and the five
association executives. Those same
10 men still comprise the startup
board of directors. Galen Pate, presi­
dent of Signal Bank in West St.
Paul, who was president of the
MBA, was named chairman of the
five-state group and continues in
that position today.
“Other Banclnsure board members include the following from their
respective state banker associa­
tions: North Dakota—Les Nesvig,
president, First State Bank, La
Moure, and Harry J. Argue, executive director, Bismarck. South Da­
kota—John H aerter, president,
Farmers State Bank, Hosmer, and
J.I. Milton Schwartz, executive di­
rector, Pierre. Oklahoma—Donald
D. Doty, president, First National
Bank Bartlesville, and Robert E.
Harris, vice president and treasurer,
Oklahoma City. Wisconsin—John
W. Johnson, president, Bank of
Spring Green, and Bryan K. Koontz,
executive director, Madison. Arkan­
sas has just joined Banclnsure and
its board members include one
banker and H.C. (Bo) Carvill, execu-










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Travelers Express has been in the
mainstream of financial processing
services for many years. In fact, we’re
the largest volume money order provider
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Teamwork and state-of-the art
equipment put us at the head of the class

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

institution through increased balances.
Best of all, we stand behind your
institution as well as our products. We’re
not a bank and don’t compete for your
customers’ attention.
For more information, contact
Terry Franzen, Marketing Manager,
1- 800 - 328- 5678 .

^Travelers Express
Federal Reserve Bank of St. Louis


t o m p a n y

Northwestern Banker, November, 1986


Federal Reserve Bank of St. Louis



Now’s the time to prepare for the new wave of
competition in banking—with automated services from
First Wisconsin.
We offer flexible systems that meet your market’s
demands. Backed by service professionals always there
when you need them.
You gain better information for better decisions.
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The natural result is profit­
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Discover the systems that
cultivate success. Call First
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©FW C 1986
Federal Reserve Bank of St. Louis


Minnesota News

EXCELLENT response has been received from banks in each of the five Banclnsure states.
In North Dakota, for example, more than 115 of the state’s 177 banks have completed appli­
cation forms. Pictured above as participants in the Banclnsure panel at the North Dakota
Bankers convention last month in Fargo were, left to right: Truman Jeffers; Diane Aim,
NDBA ins. mgr., Bismarck; George W. Lennon, v.p., Banclnsure, Oklahoma City, and Bob
Stassen, Banclnsure Minnesota, Minneapolis.

ing its member banks the benefit of
lower rates. The firm says its “rates
have already proved to be competi­
tive with, or below, the published
rates of other providers of bank in­
surance coverage. The company op­
erates on overhead expenses sub­
stantially below those of traditional
carriers.” Mr. Jeffers and Robert
Harris, executive vice president of
the Oklahoma Bankers Association,
who was very instrumental in bring­
ing Banclnsure to fruition, feel
strongly that commercial companies
will respond to Banclnsure with rate
While premiums will be quoted on
a net basis to member banks, the
coverage may be provided through a
local insurance agent if the bank
wishes. That agent’s fee or commis­
sion, is negotiable between the bank
and the agent and will be added by
Underwriters Lined Up
Getting companies to reinsure the the bank to the premium quoted by
new association-sponsored company Banclnsure. Banclnsure requests at
was difficult but the job finally was least 60 days advance notice in ad­
accomplished through extensive vance of renewal dates to allow time
connections with foreign insurance for underwriting needed coverages.
Applications Pour In
firms. Mr. Jeffers said “We are fully
need for Banclnsure is re­
reinsured for the Blanket Bond and
General Liability coverage, and are flected by the increasing number of
initially offering D&O coverage of applications received each week
through the five states. At the time
“Later, we plan to offer higher of the announcement that Bancln­
limits for D&O when reinsurance sure was already to begin operating.
Mr. Harris said 808 banks, or 36%
markets can be found.
of those in the five state area, had
signed letters of intent representing
Lower Rates
In addition to providing hard-to- approximately $15 million in pre­
place coverages, Banclnsure is giv­ miums. Mr. Jeffers said that more

tive director, Little Rock. I am also
on the board for Minnesota, in addi­
tion to Galen Pate.
“The Banclnsure board meets
monthly. We have met in many
cities, usually tying in with other
bank meetings that all were attend­
ing already. An interesting point is
that normally we’d have 100% at­
tendance. Typically, we’d also have
John Knight of Madison, Wis., who
does work for the WBA and the
Graduate School of Banking, assist­
ing us. John is a corporate attorney
who has been invaluable to us.
“We’d also meet regularly with
C.L. Frates, the managing general
agency from Oklahoma City, that
has very strong experience in man­
agement of industry captive compa­

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

than 50% of all Minnesota banks
have sent letters of intent, com­
pleted questionnaires, or have com­
pleted applications for Banclnsure
As of June 6, bond coverage had
been written for 121 banks in the
member states. For all lines of insur­
ance coverage, written premiums
totaled $1,886,000. It appeared cer­
tain that Banclnsure would top $2
million in written premiums by the
end of June and this is on target
with earlier projections.
Directors of Banclnsure have insti­
tuted two important committees to
pursue the interests of their member
banks. An underwriting committee
consists of knowledgeable bankers
and ones who are involved actively
in insurance agencies. Another is the
finance committee, which has re­
sponsibility for financial policies of
Banclnsure and for investments.
Banclnsure gained its initial op­
erating capital of $3,000,000 by ob­
taining $600,000 from each associa­
tion. Each state has 10 banks that
have loaned $60,000 each to provide
the entirely borrowed capital. Banc­
lnsure funds are carried in those
banks to help offset this debt.
Other States Interested
One positive factor for future
business, in addition to the increas­
ing number of current member
banks who are interested, is the fact
that other state banker associations
have expressed a keen interest in
joining with Banclnsure for this in­
dustry response to the bank insur­
ance crisis. In addition to Arkansas,
now a part of Banclnsure, several
other states have expressed definite
interest in the new company.
Mr. Jeffers said “Banks can now
protect themselves from these vio­
lent swings in the insurance market
by becoming a part of this industryowned company. Banclnsure can
provide a solution to the insurance
problems faced by our banks. We be­
lieve this is an answer to a very seri­
ous problem. It resolves a critical
operational problem that all banks
have experienced. Another positive
factor is that regulatory authorities
are excited by this development,
because few companies are offering
bank insurance coverage, and only
then at high rates and with extreme
restrictions or limitations. Banc­
lnsure, therefore, offers a sound al­
ternative in a difficult bank insur­
ance market.”

Elected in Rockford
Three new members have been
elected to the board of AMCORE Fi­
nancial Inc., a Rockford-based bank
holding company. Elected were
Daniel C. Ferguson, vice chairman
and CEO of Newell Co., Beloit, Wis.;
Calvin C. Covert, chairman and
CEO of Woodward Governor Com­
pany, and Dean A. Olson, Sr., chair­
man and CEO of Rockford Acromatic Products Company.
AMCORE Promotes Seven
Seven officers have been pro­
moted at AMCORE Bank, N.A.,
Jay R. Maddox, formerly vice
president and trust officer, has been
promoted to senior vice president
and trust officer. He joined the bank
in 1975.
The following officers have been
promoted to vice president status:
Harry Anderson; Ronald E. Fox,
cash management services; William
T. Hippensteel, marketing; James
D. Metz, retail banking, and Lillie
Rude, trust officer.
Mr. Anderson joined the bank in
1969, serving most recently as data
processing manager. Formerly assis­
tant vice president, Mr. Fox joined
the bank in 1960. Mr. Hippensteel
joined the bank in 1984 and was
formerly assistant vice president,
director of marketing. Mr. Metz
joined the bank in 1983 after serving
three years in various capacities at
AMCORE Bank Carpenters ville.
Ms. Rude has served the bank since
Patrick J. Wise, banking officer in
the operations division, has been
named assistant vice president. He
joined the bank in 1983.
Public Offering of
Common Stock Announced
Lane Financial, Inc. has filed a
registration statement with the
Securities and Exchange Commis­
sion (SEC) relating to a proposed ini­
tial public offering of 1,600,000
shares of common stock. Of the
shares, 1,000,000 will be sold by the
company, and 600,000 by certain
selling stockholders. The offering
will be made by an underwriting
group managed by Smith Barney,
Harris Upham & Co., Inc. and The
Chicago Corporation.
It is anticipated that the initial
public offering price will be between
Federal Reserve Bank of St. Louis

$16 and $18 per share.
Lane Financial, Inc., a bank hold­
ing company with over $1.4 billion
in total assets, is the parent com­
pany of Northwest National Bank of
Chicago, Lake View Trust and Sav­
ings Bank and Northbrook Trust
and Savings Bank, all located in the
Chicago metropolitan area.

Skokie Trust Aids Program
Skokie Trust & Savings Bank
recently contributed funds to the
Niles Township Sheltered Work­
shop’s new training and placement
This new program is designed to
give educable clients marketable
skills and place them in competitive
Appointed in Peoria
employment. The program incorpor­
Mark W. Johann has been ap­ ates “on-the-job” training so gradu­
pointed executive vice president, ates will have the benefit of a work
lending division of Madison Park history as they enter the employ­
ment arena.
Bank, Peoria.
The Sheltered Workshop offers
He joins the bank from First
Galesburg National Bank bringing three additional programs serving
nine years experience in both com­ the elderly and handicapped of
mercial and consumer lending. He Skokie and surrounding communi­
will oversee all aspects of Madison ties.
Park’s loan portfolio with his pri­
mary focus being to provide flexible,
innovative lending to current and
prospective customers.
Elected in Roselle
Neal D. Elkin has been elected se­
nior vice president of Harris Bank
Roselle. As chief lending officer, he
has responsibility for all lending
areas of the bank, but will concen­
trate his efforts in commercial loans.
He has been with the Harris Bank
in Chicago since 1962 and was with
the Federal Reserve Bank of Chi­
cago for five years as a credit ana­
Appointed in Dubuque
The board of East Dubuque Sav­
ings Bank has appointed Daryl D.
Barklow, executive vice president
and CEO, at its October board meet­
ing. He has been with the bank since
1972, serving in various lending
Thomas Reilly has been ap­
pointed as senior vice president and
in-charge-of-loans at the bank. He
was recently employed by American
Trust and Savings Bank in Dubu­

Joseph L. Spapperi has been
named senior vice president at
Amalgamated Trust and Savings
Bank. He comes to the bank from
Metropolitan Bank and Trust Co.,
Chicago, where he served as presi­
(Turn to page 32, please)
Northwestern Banker, November, 1986

in-house printing operation. Ron
Witthuhn has been named printing £
operations manager.

F&M Announces Changes
F&M Financial Services Corpora­
tion, Menomonee Falls, has an­
nounced that Richard T. Van Alen
has been elected vice presidentdata processing and Mary K. Mag­
yar has been elected corporate secretary/treasurer and administrative
officer of the corporation.
Mr. Van Alen, who had been se­
nior vice president of F&M Bank
Menomonee Falls, an affiliate of the
corporation, has been with F&M
Bank for 25 years. The data process­
ing function of F&M is a division of
the parent holding company.



Ms. Magyar joined F&M Bank
Menomonee Falls in 1972. She was
elected administrative officer/assistant corporate secretary of F&M Fi­
nancial Services Corporation in
Valley Announces
Staff Changes
Valley Bancorporation has an­
nounced three staff changes.
Eric Lynam has been named
president of Valley Bancard, Inc. He
will direct the credit card operation
which is based in Madison. Prior to
joining Valley, he was president of
Comerica-Midwest, Toledo, Oh.
Mark L. Terreau has joined Valley
Bancorporation as financial plan­
ning manager. His primary respon­
sibility will be to develop and coordi­
nate profit planning activities for all
affiliates of VBC. He was previously

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

associated with First Wisconsin—
Oshkosh as assistant vice president.
Randall John Lange has been pro­
moted to audit supervisor for Valley
Bancorporation. He has been with
Valley for five years, most recently
as senior staff accountant. He will
be based in Madison.
Valley Officer
Named NABW Chair
Diane L. Van Boxtel, corporate
marketing officer for Valley Bancor­
poration, has been appointed Na­
tional Awards and Scholarship
Chair and a member of the national
board for the National Association
of Bank Women, Inc. She was in­
stalled during the NABW National
Convention in Las Vegas on Septem­
ber 17.
Promoted in Green Bay
Mary J. Hanzel has been pro­
moted to trust officer for Valley
Trust Company, Green Bay. She is
responsible for the administration of
employee benefit plans. Mrs. Hanzel
has been with Valley Trust for eight
years and served as assistant trust
officer since 1985.

VSI Relocates
On August 25, Valley Systems,
Inc. (VSI), an affiliate of Valley Bancorporation, became the first busi­
ness to locate their office in the TRIPark Development, Appleton. The
new 30,000 square foot building will
house the data processing operation
for the $2.1 billion Valley Bancorpo­
ration. VSI employs 106 people, 82
at the TRI-Park location and 24 at
the recently established Sun Prairie
data center.
Valley Bancorporation will use
the former VSI location on 111
South Lilas Drive to house certain
corporate staff functions and its new

Beaver Dam, Chilton Banks
Change Names
First National Bank & Trust Co.
of Beaver Dam has officially
changed its name to “Valley First
National Bank.” The Valley Bancor­
poration affiliate will also adopt the £
Valley Bank logo.
In addition, the Commercial Bank
of Chilton has changed its name to
“Valley Bank” and also adopted use
of the logo.
Valley Bancorporation currently
consists of 33 member banks with
75 service locations throughout Wis­
consin, and is the state’s fourth
largest bank holding company.

(Continued from page 31)
Several officers and directors
have been appointed at the four
Avenue Group Banks which were re­
cently acquired by First Colonial
Bankshares, Chicago.
At the $170 million asset Avenue
Bank of Oak Park, C. Paul Johnson
has been named chairman. In addi­
tion, David A. Martin, attorney, and
William R. Duquaine, president of
Colonial Bank & Trust Company,
have been named directors. Lyle E.
Crear remains with the bank as
president and CEO.
At the $20 million asset The
Northlake Bank, President Tory A.
Campanella has been appointed
chief operating officer, and both he
and James P. Trunck, vice president
of First Colonial Bankshares, have
been elected to the board.
The $18 million asset Avenue
Bank of Elk Grove has named Mr.
Johnson chairman, and Mr. Du­
quaine vice chairman and chief ex­
ecutive officer. They have also been
named to the board.
Mr. Johnson has also been named
chairman of the $35 million asset
Avenue Bank of Northwest, Niles,
and Robert F. Sherman, chairman of
All American Bank, Chicago, named
vice chairman and chief executive of­
The addition of the Avenue Bank
Group will bring First Colonial
Bankshares total assets to nearly $1

ruptcy were reviewed at the meet­
ings, as well as an update on SDBIS
and Banclnsure Products, which
was presented by Russ Hendrix,
vice president, SDBIS. Following
the meeting, a reception and dinner
were held.
B.M. Broderick, Jr., pres., Canton
J.M. Schwartz, exec, v.p., Pierre

SDBA Appoints Member
Van D. Fishback, vice president
of First National Bank, Brookings,
has been appointed to fill the unex­
pired term of Houston Haugo, presi­
dent of Valley National Bank in
newly-proposed tax law that will af­ Sioux Falls, as director of Group I of
fect bankers and their banks. He the South Dakota Bankers Associa­
told bankers to be aware of five tion. Mr. Haugo resigned his posi­
Associate Publisher
areas of change under the new tax tion, which expires April 30, 1987.
law. 1. Change in net operating loss/
S WAS reported last month, the carry back ruling. 2. Repeal of lim­
South Dakota Bankers Associa­
ited interest expense to carry tax ex­ Changes Made in Huron
Lynn Schneider has been ap­
tion held its annual group meetings empt bonds. 3. Loss of bad dept ex­
in mid-September at five locations pense deduction. 4. Change in ac­ pointed president and chief execu­
across the state. Area bankers met crual basis accounting, and 5. Pen­ tive officer of the
in Aberdeen, Mobridge, Rapid City, sion changes for bank officers and Farmers & Mer­
c h a n ts B ank,
Mitchell and Sioux Falls. SDBA of­ customers alike.
ficials said attendance for this year’s
A “South Dakota Update’’ was Huron.
Previously a
meetings was up from last year.
presented by Tom Adam, general
SDBA President B. Michael Bro­ counsel, SDBA and partner, May, senior vice presi­
derick, president, American State in Adam, Gerdes & Thompson, Pierre. dent, he has also
Canton, called the meeting to order He spoke on how the Farm Bill been elected to
b a n k ’s
and introduced the video “Main- relates to the UCC clear title sec­ th e
street,” which depicts the typical tion, also known as the “Farm Pro­ board. He re­
banker’s work day as he deals with a duction Exception.’’ Mr. Adam said, places Bruce L.
variety of customers and their “Most likely, South Dakota will not Odson, who took L-v- SCHNEIDER
needs. ABA’s personal economic de­ have a centralized filing system by a similar position with a Minneapo­
velopment program called PEP also December 26, 1986 even though the lis bank.
was discussed.
Mr. Schneider has been with the
governor is showing some support of
Doug Evanstad, CPA with the it. The name of the game will be pre­ bank since 1981 as vice president of
firm of McGladrey, Hendrickson & notification, which means upgrading ag lending and most recently, senior
Pullen, Pierre, talked about the 1986 files, mounds of paperwork and new vice president.
Federal Tax Law. Mr. Evanstad technology.’’
In addition, James Hendricks has
said there are many changes in the
Bonding and Chapter 12 bank- been elected executive vice presi­
dent. He joined the bank in 1983 and
most recently served as senior vice

SDBA Group Meetings Held






TAKING part in the recent SDBA Group Meetings were, from left: SDBA Pres. Elect Larry
Ness, pres., First Dakota Natl., Yankton; Tom Adam, partner, May, Adam, Gerdes & Thomp­
son, Pierre, and SDBA Pres. B. Michael Broderick, Jr., pres., American State, Canton.
Federal Reserve Bank of St. Louis

Two Named in Hot Springs
Jean Meadows and Richard
Petersen have been elected vice
presidents of First Bank Hot
Ms. Meadows joined the bank in
1972 and served in various positions
before entering the bank’s manage­
ment training program in 1980. She
most recently served as assistant
vice president.
Mr. Petersen joins the bank from
F ir s t S y stem S erv ices-N o rth
Dakota Region, an affiliate of First
Bank System, Inc. He was a credit
administrator for the divest bank
group in North Dakota, South Da­
kota and central Minnesota.
Northwestern Banker, November, 1986

Promoted in Minot
Steven D. Velk has been pro­
moted to vice president/senior credit
officer of First
Bank Minot.
A native of
Havre, Mont., he
began his bank­
H. Huber, pres., Hazen
ing career in
H.J. Argue, exec, dir., Bismarck
1974 as a man­
agement trainee
with the Citizens
Bank of Mon­
tana. He held
v a rio u s p o s i­
tions and in 1980 was promoted to
HE marketing committee of the success.
vice president and transferred to the
Both commercials end with a new Northern Bank of Montana. In
North Dakota Bankers Associa­
tion has initiated new direction in tag line that will be used in this cam­ 1981, he joined First Bank Havre as
the statewide advertising program paign: “North Dakota’s Bankers: assistant vice president and most
and renewed an approach that has Sharing the Work. Sharing the recently served as vice president/
become familiar to North Dakota Pride.”
manager commercial and retail
The second commercial produced banking division.
Bankers and residents.
First...the familiar. The market­ is entitled, “Coal Train.” It features
ing committee has again purchased film of a site familiar to the state’s Advanced in Grafton
Charles Thompson has been pro­
co-sponsorship of the major high citizens, an eastbound train, loaded
school sports package on the KX-TV and delivering an important “ex­ moted from vice president to vice
network. NDBA’s advertising will port” of North Dakota...coal. The p re s id e n t
be shown in the telecasts of the Boys voice-over copy addresses the long charge of agri­
and Girls High School Class A and tradition of putting the state’s re­ cultural loans of
B basketball tournaments as well as sources to work and further empha­ the First Ameri­
sizes the important role that banks can B an k &
the State Hockey Tournament.
The sports co-sponsorship is the (and bankers) have in keeping the Trust of Graf­
largest single media commitment state rolling economically...a com­ ton.
b eg an
made by the marketing committee. mitment that bankers will keep in
A majority of the remaining adver­ the future. The coal train commer­ working at the
tising funds are targeted to be spent cial was filmed in Mercer County, bank in 1985.
Prior to that, he
in two-to three-week “flights” of TV West of Stanton.
Be watching for the new NDBA was branch man­
buys. These flights include a wide
variety of programs, ranging from commercials and related initiatives ager at Production Credit Associa­
tion in Grafton for 16 years.
both early and late news to prime this fall.
time to daytime.
The overall media plan will keep
the TV advertising of the NDBA on
the air through April 1987.
New territory will be covered by
The ATM machines allow custo­
NDER a new cooperative pro­
the association’s creative messages.
gram promoted by Independent mers to withdraw $100 a day in cash
In the past, much of the actual pro­
duction of the TV commercials was Community Banks of North Dakota from participating member banks.
The Express Teller Network and
done in a studio. This year, two new (ICBND), an independent bank in
commercials are being produced and North Dakota can now offer nation­ the NCR ATMs are easy to operate
wide automated teller machine ac­ because the computer-controlled
filmed on location, outdoors.
One commercial approved for pro­ cess to its customers. ICBND custo­ unit uses graphics to explain its
duction is titled, “Combine.” Shot mers can now get cash anytime with operation rather than time-consum­
during the wheat harvest in North their new Express Teller cash card. ing printed instructions.
Myron Pfeifle, chairman of the
Over 8,400 ATM locations from
Dakota, this 30-second commercial
features a combine cutting wheat in North Dakota to Texas and from ICBND general services committee,
a Barnes County field near Rogers. California to Florida, even the said participating banks will be able
The voice-over copy from the an­ World’s Fair in Canada, will be to obtain the ATMs at a substantial
discount under the ICBND pro­
nouncer emphasizes the productivi­ available to ICBND customers.
The Express Teller network acts gram. At the same time, he said if all
ty of North Dakotans. The message
goes on to reinforce the involvement as a means for all independent banks 11,400 community banks in the na­
of North Dakota’s banks in the to be part of a unified force to suc­ tion participate in a program like
state’s productivity. Commitment cessfully compete against the large this, it would create a basis for a na­
by the bankers of North Dakota is corporate banks, and at the same tional independent bank network.
an important aspect of the team’s time maintain their own identity.

A New Direction For NDBA Advertising


Independent Banks Can Now Offer
Nationwide ATM Access


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

North Dakota News


LEFT—Outgoing ICBND Pres. Gary S. Nelson, v.p., Scandia American Bk., Stanley, with newly-elected ICBND Pres. Kelly E. Dakken, pres.,
Drayton State Bk., Drayton. RIGHT—Tom Olson, pres.-elect, IBAA, at the convention’s press conference.

Independent Banking Convention
Was a Huge Success
A Special report to
T he N orthwestern B anker

HE IMPORTANCE of preserv­
ing independent banking in
North Dakota was emphasized by a
lineup of top speakers throughout
the four days of a recent convention
and trade show held in Bismarck in
late September.
S ponsored by In d e p e n d en t
Community Banks of North Dakota,
the 19th annual convention and ex­
position, which drew a record num­
ber of exhibitors, was a huge suc­
The convention “was our best
ever,” said James V. Kuchar, con­
vention chairman. “The enthusiasm
and positive feelings that were gen­
erated uplifted us all and gave
everyone a strong mandate to con­
tinue to work to preserve the inte­
grity of independent banking in
North Dakota.”
During the four-day convention,
ICBND members elected 39-yearold Kelly Dakken of Drayton as
their new president for the 1986-87
Mr. Dakken is president and
chairman of the board of the Dray­
ton State Bank. He is a 1969 gradu­
ate from the University of North
Dakota with a degree in accounting
and active in community affairs. He
has served on the board of the ICB­
ND for the last three years and was
chairman of the association’s legis­
lative committee last year.
Elected vice president was Chet
Folkert, president of Peoples State
Federal Reserve Bank of St. Louis

Bank of Velva. Two new directors
were also elected. They are James
M. Goetz, president of the State
Bank of Oliver County in Center,
and Steve Stenejhem, president of
the First National Bank in Fessen­
One of the highlights of this
year’s convention was a press con­
ference held by Gary Nelson, out­
going president of the ICBND and
Tom Olson, president-elect of the In­
dependent Bankers Association of
Both pointed out that inflation
has not hit North Dakota as hard as
other states because land values did
not decline as much. The state has
not had any bank failures even
though there have been more than
100 in the U.S. this year.
Mr. Nelson told the news media
that the community banks are hold­
ing strong because of their guarded
lending policies and aggressive com­
munity involvement.
Questioned by reporters that the
banks might have been too consevative, Mr. Olson replied: “ I ’m glad
they were more conservative. Can
you imagine what those banks that
have failed are going through?”
Mr. Nelson pointed out to the
newsmen that the latest figures
show that North Dakota’s 133 statechartered banks are financially
sound. The capital reserves to total
assets ratio, he said, averaged 10.25
percent at the end of June. Total
assets of those banks is $3.6 billion
and loans to total deposits is at
53.29 percent.
Mr. Nelson reported that the as­

sociation had gained seven new
members for a total of 119, bringing
it up to 87 per cent of the total num­
ber of state chartered banks in the
state. The only other state to have
that high a membership percentage
was Georgia, Mr. Nelson said.
Association attorney and lobbyist
A1 Wolf outlined state and national
legislation that has a direct impact
on independent community banks.
The group honored six people by
formally installing them in the ICB­
ND 1986 Hall of Fame. Those with
40 years of service were: Albert E.
Bowman, Dakota Western Bank,
Bowman; Merlin W. Munson, State
Bank of Lakota; Marjorie Freeh,
First State Bank of Harvey, and Ed­
win C. Richter, First State Bank of
Regent. For 50 years of service,
Robert L. Barstad of the First State
Bank of Harvey, and Inez Madden
of the Farmers State Bank of Ypsilanti, were both installed in the Hall
of Fame.
The ICBND members heard from
several outstanding speakers includ­
ing Jerry Simmons, president of
Idea Management Co. of Sioux
Falls, S.D., a well-known business
consultant and entrepreneur.
He gave an inspiring talk on how
to build up the sales effort of the
banking staff and touched on dozens
of topics ranging from greeting the
customer to setting up a detailed
program for marketing and selling
bank progams.
Also on the program were Gary
D. Preszler, newly appointed North
Dakota state banking commis­
sioner; Joseph S. Lamb, president
and chief executive officer of the
Bank of North Dakota; management
professor Don Warrick of Colorado
Springs; humorist Pat Leimbach,
and evangelist Trish Leinihan.
Northwestern Banker, November, 1986

Bank of Westminster.
Mr. Harman was assistant vice •
president in commercial loans at the
bank. Mr. Myers was formerly a
marketing representative for the of­
fice products division of the Bur­
roughs Corporation.

Several Advance in Denver
United Bank of Denver has
named David W. Larsen and Gene J.
Sullivan vice presidents, Michael S.
Miller, Glenn E. Smith, and Gary L.
R o s e n tra te r a s s is ta n t vice
presidents, and Anne Leyden mar­
keting officer.
Mr. Larsen joined the bank in
1981 and is currently manager of
loan analysis. Mr. Sullivan has been
with the bank since 1981.
Mr. Miller joined the bank in
1980. Mr. Smith joined the bank in
1977 and is manager of the bank’s
Mastercard/VISA department. Mr.
Rosentrater is senior associate coun­
sel in the bank’s legal department.
Ms. Leyden joined the bank in
In addition, Solomon D. Trujillo,
Colorado vice president and CEO of
Mountain Bell, has been elected to
the bank’s board.
Retired in Pueblo
Douglas W. Caldwell has retired
as executive vice president of Colo­
rado National Bank-Pueblo. He will
continue as vice chairman and re­
main an active board member. He
has been with the bank since 1955.
Special Reserve Provided
For Fort Collins Bank
United Banks of Colorado, Inc.,
will provide a special reserve for
losses in its affiliate, United Bank of
Fort Collins, National Association,
which had total assets of $232 mil­
lion on June 30, 1986.
According to N. Berne Hart,
chairman and CEO of United Banks,
“This decision was made after re­
viewing a report prepared by our
loan review staff, which just com­
pleted a special, intensive review of
the commercial loan portfolio at the
bank. This review was initiated and
coordinated by David E. Bailey, re­
cently elected chairman and CEO of
the Fort Collins bank and regional

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

executive for our Northern region,
after changes were made in the key
management of the region.’’ The re­
view showed an increase in the level
of non-performing loans in the
bank’s portfolio, decreasing values
relating to real estate owned by the
bank through foreclosures and inter­
est receivables that may not be col­
Dennis D. Erickson, executive
vice president-finance and treasurer
of United Banks, said, “Bank man­
agement will provide a special $7.5
million reserve for potential losses in
September, reflect current real es­
tate appraisal values through a $1
million write-down to book value
and reverse interest accruals of
$500,000, which had been previously
taken into income.
“The impact on United Bank of
Fort Collins will be a loss for the
third quarter of $4.5 million, com­
pared with earnings of $925,000 for
the first six months of 1986 and $2.8
million for 1985. The bank should
return to a profitable position in
“United Banks of Colorado will
show a profit in the third quarter,’’
Mr. Erickson added, “including the
effect of the actions being taken.”
United Banks’ net income for the
first six months of both 1986 and
1985 was $15.1 million.

Promoted in Grand Junction
Three have been promoted at
Colorado N ational Bank-Grand f
Junction: R. Kelley Burford, vice
president/loan administration; Craig
A. Coburn, cashier, and Roger L.
Schow, human resources officer.
Mr. Burford has been with the 0
bank since 1984, most recently serv­
ing as assistant vice president. Mr.
Coburn joined the bank in 1983. Mr.
Schow joined the bank in 1984 as
marketing officer.
Two Promoted in Denver
Colorado National Bank South,
Denver, has announced the promo- £
tions of Cheryl McNamer to market­
ing officer and Judy A. Lange to as­
sistant vice president/consumer
Ms. McNamer joined Colorado £
National Bank-Northeast in 1979
and later transferred to Colorado
National Bank-South. Ms. Lange
joined the bank in 1975.
Named in Glenwood Springs
Tom H. Connolly has been elected
to the board of Colorado National
Bank-Glenwood. A partner in the _
law firm of Connolly & Phillips, he ^
replaces Gerald Hartert who has

Changes Told in Boulder
Pat O’Brien has joined Colorado
National Bank-Boulder as assistant
vice president/commercial loan rep­
resentative, and Stephen C. Sher­
Named in Colorado Springs
man has been promoted to assistant q
Terry Zebarth has been promoted vice president/commercial lending
to vice president and department at the bank.
Mr. O’Brien was associated with
manager of the consumer loan de­
partm ent at Colorado National Jefferson Bank & Trust and Fidelity
Bank-Exchange, Colorado Springs. Bank of Denver. Mr. Sherman has £
He has been with the bank for 14 been with the bank since 1978.
years and was most recently a vice
president in the commercial lending Elected to the Board
Colorado National Bankshares,
Inc., Denver, has elected Bruce E. ^
Two Named in W estm inster Dines to its board. Mr. Dines was as­
Thomas K. Harman has been ap­ sociated with the First National
pointed as vice president of commer­ Bank of Denver for 30 years from
cial loans, and Charles E. Myers as 1949-1979. He is now involved in a
assistant operations officer of the number of investments.

Rutgers University, he served as a
bomber pilot with the U.S. Air Force
in World War II.

Norwest Elects President
Norwest Corporation has an­
nounced that C.P. “Buck” Moore
has been elected president of its
Montana banking region. He suc­
ceeds Jackson L. Schutte, who has
Mr. Schutte served as regional
president for Montana since 1982
and was with Norwest for 17 years.
He will now be exploring other busi­
ness opportunities.
Mr. Moore, who retains his posi­
tions as Norwest’s regional presi­
dent for South Dakota and CEO of
Norwest Agricultural Credit, Inc.,
has been associated with agriculture
and banking most of his life. He

began his banking career with the
Great Falls Production Credit Asso­
ciation and Federal Land Bank in
1950 and with Norwest as an agri­
cultural lender at Norwest Bank in
Great Falls in 1952.
He moved to South Dakota in
1969 as president of Norwest Bank
Aberdeen and was elected president
of Norwest Bank Sioux Falls in
1976. In 1982, he became regional
president in South Dakota and
served as chairman and CEO of Nor­
west Bank South Dakota, with bran­
ches in 21 South Dakota communi­
A graduate of Montana State
University at Bozeman and the Sto­
nier Graduate School of Banking at

bank’s bank-office systems through
compatible personal computers.
Commercial clients of Norwest
banks have been using the system
Independent State Bank of Min­ for balance information, electronic
nesota has announced the addition mail and wire transfers.
of Kevin W. BosWith the new ACH capability,
trom as assis­
business customers may automate
tant vice presi­
many types of ACH transactions,
dent in the loan
including direct deposits of payroll,
department. His
and dividend, interest, loan and pen­
primary respon­
sion payments.
sibilities will be
* * *
in the commer­
cial and agricul­
Kevin P. Pedelty has joined City
tu r a l len d in g
Bank of Minnea­
areas- ,
polis as a com­
He has been
mercial banking
employed in the banking industry officer.
for 10 years, the last three years
He has been in
spent at Valley National Bank of the banking in­
North Mankato where he was head d u s tr y since
of the commercial loan department. 1983. A member
* * *
of the Edina Op­
Commercial customers of all Nor­ tim ists, he is
west banks will be able to initiate their secretary/
automated clearing house (ACH) treasurer.
* * *
transactions through their personal
computers under an addition to NorIn response to the declining inter­
west’s electronic banking system.
est rate environment, 14 First
Called BankTIES, N orw est’s Banks in the Metropolitan Division
business communication link was of First Bank System, Inc., have
developed last year to enable cor­ lowered interest rates on regular
porate customers to access the savings, interest checking and all
(Continued from page 24)
Federal Reserve Bank of St. Louis

Plentywood Bk. Purchased
Since 1912, Security State Bank,
Plentywood, has been locally owned.
The bank has been purchased by
N.E. Montana Bancshares, Inc., a
group of local investors. Jerry L.
Wiedebush is the president of both
the bank and the holding company.
Pres. Named in Lewistown
Robert D. Worth has been named
president and a director of Norwest
Bank Lewistown.
Since 1984, he has been president
of the Deadwood and Lead branch
offices of Norwest Bank South Da­
kota. He joined the South Dakota
bank in 1973 as an operations
trainee and was promoted to per­
sonal loan officer in 1976.
Since then he has served as assis­
tant manager of South Dakota
branches in Villa Ranchero and
Newell. He was named branch presi­
dent of Lead in 1979 and of Sturgus
in 1981.
other deposit accounts.
Although a number of major and
regional banks have dropped rates
recently, the Metro First Banks are
the first major banking group in the
local market to make a change. FBS
regional banking in Montana, North
and South Dakota, and southern
Minnesota lowered their fixed
deposit rates in August.
Since September 1984, FBS con­
sumer loan rates have declined 27
percent. There has been no drop in
FBS fixed rate deposits during that
same period of time.
The first effective date for an ac­
count rate change was October 15
when Money Market Insured Sav­
ings, went to a variable rate. The
new pricing rewards higher balances
with higher rates.
Passbook Savings rates dropped
from 5.5 to 5.0 percent November 1
and Statement Savings will drop
from 5.5 to 5.0 percent November
Checking accounts will also be af­
fected November 15. The rate for No
Minimum NOW Accounts and
$1,000 NOW Accounts will be 5.0
percent, a change from 5.5, while
Money Market Insured Checking
will move from 5.25 percent to a
variable rate.
Northwestern Banker, November, 1986


FirsTier C orrespondents

Our Nam e
Speaks For Itself
So Does Our History.
As FirsTier Bank Lincoln, we continue
to be known as one of the Midwest’s most
experienced providers of Correspondent Bank
Services. Our people and our commitment
As always, we’re the Correspondent
you can depend on for fast, responsive,

personalized service in meeting your needs...
the kind of service upon which our reputation
was built.
And, as our name now implies, we’re
dedicated to bringing you the very best in
everything we do...backed by more than a
century of hands-on banking experience.

Gary L. Bieck
Vice President &

Steve Anderson
Vice President

Marv Hefti
Vice President

Mark Hahn
Vice President

Charles Greenway
Asst. Vice President

Kathryn Barker
Ag & Financial Officer

David Luckey
Ag Inspector

Charles Ellis
Operations Manager

Daniel Black
Ag & Financial

Betsy Crowley
Ag & Financial

Craig Engelage
Ag & Financial

For all your Correspondent needs, remember the name - FirsTier.


F irsT ier B a n k

13th & “M” Streets • Box 81008 • Lincoln, NE 68501 • Phone: (800) 742-7462
FirsTier Bank, N.A., Lincoln, Member FDIC

for FRASERBanker, November, 1986
Federal Reserve Bank of St. Louis

Norwest Opens Agency Office
Norwest Corporation has opened
a new insurance office in Norfolk.
The agency is lo­
cated in the Norw e st’s B ank’s
Main Office in
downtown Nor­
Linda Peteler
has been selected
to manage the
agency office.
She has relo­
cated from Ortonville, Minn., where she managed
the Norwest insurance agency there
for two years. She has been with
Norwest for nine years.
Ms. Peteler said the agency will
sell all lines of insurance including
but not exclusive of, home, auto, life,
health, commercial and crop hail.
Announcements Made
in Malmo
Donald Cejka, president of Securi­
ty Home Bank in Malmo, has pur­
chased controlling interest in the
bank from the Kermit Wagner Es­
tate. Mr. Cejka has been with the
bank for the past 22 years.
In addition, Les Kotera, cashier,
has been elected to the bank’s board.
Kearney Bank Pres. Dies
Norman A. Schmidt, 55, presi­
dent of Platte Valley State Bank in
Kearney, passed away recently.
Mr. Schmidt was born April 5,
1931, in Grand Island. He farmed
with his father until entering the
U.S. Army. He was a veteran of the
Korean War and attended Wayne
State College from 1952-54.
He worked at the accounting of­
fice at Wards in Grand Island until
1959. He then moved to Ord where
he opened a tax accounting office. In
1968 he sold that business and
moved to Ravenna, where he served
as vice president of the Ravenna
Bank and as bank president from
Federal Reserve Bank of St. Louis

In 1979, he moved to Kearney and
served as vice president of Platte
Valley State Bank. He was named
president in 1980.
Throughout his life, he was active
in many organizations. He served on
the board of three banks and one
holding company, and taught finan­
cial statement analysis for the Inde­
pendent Bankers Association in Ar­
kansas and Indiana.

Changes Made in Cozad
Dail Vetter has been hired as se­
nior lending officer and vice presi­
dent of First Bank & Trust Com­
pany, Cozad. He was previously
with Farm Credit Services in Ains­
Craig Dewalt has been promoted
to loan officer at the bank.
In addition, Greg Maack has been
hired as loan clerk/trainee. He is a re­
cent graduate of Kearney State Col­

Three Western Nebraska
Banks Sponsor Seminar
The First National Bank of North
Platte, First National Bank of Mc­
Cook and the Adams Bank and
Trust of Ogallala sponsored a re­
gional seminar on the subject “Stra­
tegies for Survival,” held October 21
in North Platte.
Coopers & Lybrand, professional
Named in Ogallala
accountants and consultants, pre­
Chad Adams has been elected as­ sented “Maximizing Profit in Rela­
sistant vice president and trust offi­ tion to Assets.” “The Legal Morass:
cer of the Adams Bank & Trust, Bankruptcy, Regulations, Officer’s
and Director’s Liability,” was pre­
Previously, Mr. Adams worked at sented by Erickson and Sederstrom
the Department of Banking and Fi­ law firm. FirsTier Management Con­
nance, most recently at Coopers and sultants gave a presentation on
Lyband as a tax specialist.
“Expenses and Income Manage­
He was admitted to the Nebraska ment.”
Bar in 1984 and received his CPA in
Thirty-one people attended the
one-day program.

NIBA Annual Convention— Nov. 20-21
HE N ebraska Independent
Bankers’ Association’s annual
convention is scheduled for Thurs­
day and Friday, November 20 and
21 at the Villager Motel and Conven­
tion Center in Lincoln. The program
schedule follows:
Thursday, November 20
1:00 Registration.
2:00 Board Meeting.
6:00 Convention Warm U p hosted by Touche Ross &
Co. and the Nebraska Young
7:00 Lincoln Welcome D innerHosted by the Board of Di­
Friday, November 21
8:00 B reakfast M eeting—Con­
gressman Doug Bereuter.
9:30 (Spouse’s Program) Board
Bus for a visit to The Acre-

age Country Emporium.
10:15 Legal Update/Bankruptcy—
John Guthery, Legal Coun­
12:00 L u n c h e o n —C h a r l e s
Thacker, Regional Director
of the FDIC, Kansas City.
2:00 Taxation and You—John
Cederberg, Touche Ross &
3:30 Bus Returns from The Acre­
4:15 A nnual M eeting—N IBA
President Fred Otten, presi­
dent, Commercial State
Bank, Hoskins, presiding.
6:15 President’s Cocktail Party—
hosted by the First National
Bank of Omaha.
7:00 Seafood B u ffe t —Chuck
Doyle, CEO, Gulf National
Bank, Texas City, Texas,
and President of the IBAA
Northwestern Banker, November, 1986

president in 1983 and has been assis­
tant department head for trust in- •
vestments since 1977.
Stephen G. Bodner has been ap­
pointed assistant vice president of
FirsTier Bank Omaha. He joined the
bank in 1983 and most recently #
served as a lending officer.
In addition, Kenneth D. Holmes
has been appointed an officer of the
bank. He joined FirsTier in 1985 and
most recently served as an attorney #
in the consumer collections depart­

BankDisk software for personal
computers will be marketed by FirsTier Management Consultants and
FirsTier Data Services under an
agreement with Financial Systems,
Inc., the firm that developed the
BankDisk programs.
BankDisk programs are designed
to be used by small and medium­
sized banks for budgeting, planning
and analysis purposes. Currently,
the software is in use by 2,500
banks, primarily in the Midwest.
According to Bob Neville, finan­
cial systems coordinator for FirsTier
Management Consultants, Financial
Systems, Inc., had planned to dis­
continue development, marketing
and support of the BankDisk soft­
The five BankDisk packages in
the purchase are: BankDisk Com­
mercial Credit Analysis, which in­
cludes cash flow, statement spread,
and pro-forma modeling; BankDisk
Agricultural Credit Analysis, which
includes cash flow, statem ent
spread, pro-forma, and credit scor­
ing modules; BankDisk Controller,
which includes strategic planning
and budgeting modules; BankDisk
Gap Manager, which includes rate
sensitivity analysis; and BankDisk
Client Profitability Analysis, which
is used as a product pricing tool,
such as loan pricing.
The software runs on IBM, Apple
and Burroughs B-20 series personal
Richard Nelson, vice president of
FirsTier Data Services, said the two
FirsTier subsidiaries will begin look­
ing at possible ways to update and
enhance the packages. According to
Mr. Nelson, the FirsTier companies

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

Joined in Clarks
Richard A. Barnes has joined the
Bank of Clarks as executive vice
president and director.
He previously served as executive
vice president and director of the f
had been discussing developing First National Bank, Bayard, as
similar packages but decided to pur­ vice president of the First National
chase the software since proven pro­ Bank, North Platte, and as a na­
ducts were already in existence.
tional bank examiner.
Mr. Nelson indicated that Firs­
Tier Data Services is looking at
enhancing the BankDisk Controller Retired in Alliance
and Gap Manager for its customers
After 35 years of service, Dale V.
by writing an interface to the exist­ Borg, senior vice president of Guar­
ing general ledger package.
dian State Bank, Alliance, has re- #
FirsTier Management Consul­ tired.
tants, Inc. and FirsTier Data Ser­
Mr. Borg joined the bank in 1951
vices, Inc., are subsidiaries of Firs­ as a teller and has held the positions
Tier, Inc., a Nebraska-based finan­ of senior vice president since 1980.
cial institution. FirsTier Manage­
ment Consultants offers a variety of
consulting services for bank direc­ Bankers Attend School
tors and managers. FirsTier Data
Fifty-nine bankers recently com­
Services provides computer-based pleted Session I of the Professional
data processing to clients in a Development Program Intermediate #
13-state area.
School of Banking at the Holiday
Financial Systems, Inc., the origi­ Inn in Manhattan, Kan. The pro­
nator of the programs, is a subsidh gram was sponsored by the Kansas
ary of Harris Technology Group, and Nebraska Bankers Associa­
Inc., of Lincoln, Nebraska.
* * *
Students attended over 37 hours
Jerry Schumacher has been of classes covering 13 different sub­
named head of the trust investment ject areas.
The school attracted mid-level
departm ent of FirsT ier Bank
from Kansas, Nebraska and •
Omaha. He joined the bank in 1959,
working in the auditing and control­
The second-year session, sche­
ler’s departments before joining the
for June 21-26, 1987, at the
trust in 1970. He was named vice
Manhattan Holiday Inn, promises
more opportunities for practical, ®
hands-on study.



Added in McCook
Roy H. Bischoff has joined the #
staff at McCook National Bank as
senior vice president and senior loan
officer. He was previously executive
vice president of the Farmers Bank
& Trust of Atwood, Kan.



T **

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

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


firsl national bank

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

Northwestern Banker, November, 1986

An Answer Shouldn't Take 'Evo Weeks!"

John Chrystal, President, Bankers Trust

hen you get a loan request, your customer wants
a prompt answer.
So when you ask your correspondent bank about
overlines, shouldn't you be able to expect the same
quick response?
At Bankers Thist, our correspondent staff under­
stands your overline needs. Just as important, we
understand the need to respond to them without delay.
As a major independent bank, we can usually give
you an answer right away. An honest, straightfor­
ward answer.
So, talk with Bankers Trust, where your overline
requests receive the attention yo u deserve.


Call us for a complete range of correspondent
banking services.
Investment Management
Individual/Corporate Services
Full line of International Services
Fed Funds

Bank Acquisition Loans
Overlines & Participations
Banking Systems Processing
ATM & Debit Card Support
Cash Letter Processing
Remote Processing Support

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

Member FDIC

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

Iowa Buy-Down Program Draws 1,274
Applications for Total of $3 Million
TENTATIVE report on the
State of Iowa’s interest rate
buy-down program on agricultural
loans shows that at its conclusion on
^ August 30 a total of 1,274 applica­
tions had been received requesting
$3,004,579 in assistance by farm
The program was enacted into law
^ as HF 2353 last March 23, which de­
signated $5 million for the plan—$2
million by appropriation and $3 mil­
lion to come from lottery earnings.
It is titled the Iowa Agricultural
• Loan Assistance Program and is ad­
ministered by the Iowa Agricultural
Development Authority. William H.
Greiner is executive director of
IADA and the new program.
Mr. Greiner issued the following
program results:



Total Applications R eceived.............1,274
Total Assistance $s Requested . $3,004,579
Number of Banks Participating............222
Number of Loans from B a n k s............. 1,227
Number of PCAs Participating ..............12
Number of Loans from PCA s ..................47
Number of Out-of-State Banks..................3
Number of Applications Level I ............180
Number of Applications Level I I . . . . 1,094
Number of Counties A p p lyin g.................97

Under terms of the legislation, the
IADA could offer up to 3% interest
buy-down at Level I if the FmHA
and the participating bank offered
• the borrower as much as 2% rate re­
duction each, thus giving a farm bor­
rower as much as a 7 % interest rate
reduction, provided the loan then
would cash flow. Level II applied
• when there was no participation by
FmHA. The IADA matched the
local bank up to 3% for the interest
rate reduction it offered the bor­
rower. The bank could reduce the
• rate more than 3%, but the maxi­
mum the IADA would reimburse
the bank for was 3% at Level II. In
addition, the resulting loan, also
with a $ 100,000 cap, did not have to
® cash flow. It was aimed at buying
Federal Reserve Bank of St. Louis

New Branch Manager Named
First National Bank of Council
Bluffs has opened a new branch at
the Mall of the
W tr
Mary C. Croft
is manager of
the new branch.
A personal bank­
ing officer, she
has eight years
banking experi­
ence in deposi­
to ry services,
consumer lend­
ing and marketing. She also spent
six years in retail sales.

time for the customer, Mr. Greiner
Mr. Greiner said the entire
$3,004,579 of requested funds are Added in Cedar Rapids
Kenneth A. Strother has joined
not committed funds. Some may be
duplicates from the same bank or Peoples Bank and Trust Company,
from two banks. Others may possib­ Cedar Rapids, as
ly request more dollars than the loan a senior vice
actually calls for under the $ 100,000 p re sid en t. He
limit. Internal IADA cross-checking will manage the
will eliminate these discrepancies, bank’s lending
he stated, and it is believed the com­ division.
mitted funds probably will be about
He brings 15
$2.9 million, or about 60% of the $5 years of finan­
million allocated. Mr. Greiner and cial and lending
interested bankers said this was ex­ experience to the
cellent participation for the first ef­ bank, serving
fort on such a program, considering most recently as
that it took time after the March 23 executive vice president of Intraauthorizing date to get regulations West Bank of Grand Junction, Colo.
and explanations in the hands of Prior to joining IntraWest, he held
farmers and financial institutions various senior management posi­
alike, and the fact it had only five tions with banking institutions. He
months from start to finish.
was president of the Fruita State
Fayette County, with $120,474, Bank in Fruita, Colo. In addition, he
requested the greatest amount of was division vice president of Affili­
funds. Buena Vista County was sec­ ated Bankshares of Colorado, Inc.
ond with $111,287 and Keokuk holding company. Prior to that, he
County third with $103,211.
was with the Omaha National Bank,
After a slow start, Mr. Greiner Omaha, Neb., responsible for banker
stated, “applications began picking relationships in a three-state area.
up, then we received more than 600
applications in the final week, in­
cluding 325 that were postmarked in Two Join Charles City Bank
time prior to the Labor Day holi­
Greg Johnson has been appointed
day.” Mr. Greiner said that before as assistant vice president at First
the final week IADA was able to ap­ Security Bank, Charles City. Prior
prove loan applications in one day. to joining the bank, he was assistant
The banks will be paid by warrant cashier/ag loan officer at the Shelby
from the State of Iowa for IADA’s County State Bank, Harlan. He also
interest rate commitments.
has experience working at the
All counties in Iowa except Mon­ Maquoketa State Bank.
Mark Miller has also joined the
ona and Shelby had at least one
loan application in the buy-down bank as farm representative. He was
program. Banks accounted for assistan t county supervisor of
96.3% of the total applications. Farmers Home A dministration,
Three of the participating banks Charles City. He also has five years
were in Minnesota, where those farming experience while he was a
banks had Iowa customers across real estate broker for Miller & Miller
the border.
□ Real Estate near Bristow.
Northwestern Banker, November, 1986


Iowa News

Joined in Davenport
Woodward G. Brenton has joined
Brenton First National Bank of
Davenport as se­
nior vice presi­
dent, commer­
cial lending. He
joins the bank
from B renton
National Bank
of Des Moines,
where he was
vice president,
corporate lend­
His career history includes posi­
tions with the national division of
Marine Midland Banks, N.A., the in­
ternational division of Manufac­
turers Hanover Trust Company,
Peat Marwick Mitchell & Company
and Continental Illinois Bank.
Urbandale Pres. Resigns
John Harmeyer has resigned as
president and CEO of First Inter­
state Bank of Urbandale due to
health reasons. He has been elected
to the newly-created position of vice
chairman of the board. In this posi­
tion, he will be responsible for the
development of business from the
professional community for the Ur­
bandale Bank.
Mr. Harmeyer joined the bank in
1965. He has been president and
CEO since 1979.
Changes Told in Indianola
Irolene Ashmore, assistant vice
president and agricultural loan offi­
cer, has retired
from P eo p les
Trust and Sav­
ings Bank, In­
She joined the
bank in 1977 as
a teller and new
account repre­
sentative in the
M o to r B ank.
She had been as­
sistant to the senior loan officer
prior to her assistant vice president
She and her husband, Jim, will be
moving to Bella Vista, Ark.
The bank has also announced that
Mike Coppess, vice president, has
been granted his certificate as a cer­
tified public accountant. He has
been with the bank since 1985.

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

Appointed in Davenport
Two have been appointed at
Davenport Bank and Trust Com­
John W. Schricker has been
named head of the bank’s newly
formed bank card division, which
combines the bank’s credit card and
electronic funds transfer depart­
Mr. Schricker, first vice presi­
dent, joined the bank in 1975 and
was named first vice president in
In a related move, Janice C. Foley
has been promoted to assistant vice





president of the bank card division.
She heads the electronic funds trans­
fer department. Joining the bank in
1979, she has been with the EFT de­
partment since 1972.

Steve Moser Named Deputy Supt. Banking
TEVEN C. Moser, 33, was pro­
moted to deputy superintendent
of banking, effective October 10, by
Iowa Superintendent of Banking
William R. Bernau. Mr. Moser suc­
ceeds Howard K. Hall, 50, who re­
signed from that position after 28
years with the department to accept
a position in the banking business.
Mr. Moser had served as assis­
tant to the superintendent since
January, 1983, following more than
three years of consecutive service as
a bank examination analyst in de­
partm ent headquarters in Des
Moines. Prior to that, Mr. Moser
also completed approximately four
years of service as a field examiner.
Mr. Moser was graduated from Iowa
State University in May, 1975, with
a degree in Industrial Administra­
tion with a finance option. He
worked for an Iowa insurance com­

pany for several months before join - 0
ing the Iowa department of banking
in February, 1976. In addition to the
Iowa department’s examiner train­
ing program, Mr. Moser has at­
tended examiner schools conducted 0
by the FDIC and the Conference of
State Bank Supervisors.
Mr. Hall joined the Iowa banking
department following his 1958 grad­
uation from Parsons College, serv- 0
ing continuously with the depart­
ment since that year, and had been
deputy superintendent since 1971.
Mr. Hall has joined the Garst/Chrystal bank organization to assist Wil- #
liam Hess in supervision of that
group’s six banks. Mr. Hess is presi­
dent of the Iowa Savings Bank in
Coon Rapids. He and Mr. Hall
served together in earlier years as #
assistants to the superintendent of

STAFF members of the Iowa department of banking, as well as a number of Iowa bankers,
gathered In the department board room last month to extend best wishes to Howard K. Hall
at a farewell party honoring him upon his retirement as deputy superintendent. Pictured
above at the party are, from left to right: Iowa Banking Superintendent William R. Bernau
and his wife, Kay; Ursula and Howard Hall, and Steven C. Moser, the newly-appointed
deputy superintendent.


Left to right: Jim Perkins, Assistant Vice President; Dave Howell, Correspondent Banking Officer; Barry Richards, Vice President; Mike Bauer,
First Vice President; John Oliger, Correspondent Banking Representative

M eet the team that will
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The p ro o f is in perform an ce. Let us tell you
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Federal Reserve Bank of St. Louis

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


Iowa News

Centennial nostalgia!

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

By WM. P. RONAN, President
Decorah State Bank, Decorah, la.
(Entered banking in 1923)
S I SEE my scenario in banking as of today,
I compare it with the debacle of 1932 to 1940.
Prior to that, we had the same feeling of euphoria
among young and old bankers, farmers and busi­
nessmen, that the high price of land would con­
tinue to do nothing but go up and that we would
have a high priced stock market with liberal divi­
dends and so forth.
I do not admire the Russians, but I do know
that Kondrakietf, the economist, has made the as­
sertion that wherever you have an intense capi­
talistic society, you have to have a wash out
about every 50 to 55 years; that is now occurring
the same as it occurred from 1932 to 1940.
I remember very well the bank holiday of 1933.
At that time every bank in Iowa closed, and in
due time after a period of about two or three
weeks the State Banking Department would
come in and take out all of the bad paper and
start out with a completely new bank, and trustee
out 50% of slower assets. Incidentally, our bank,
if I remember correctly, paid out about 98% of
the trusteed deposits. (Iowa State File 111. Re­
viewed September N orthwestern B anker ,
1986, page 25.) Our bank chose this procedure on
a voluntary basis.
I do recall one interesting incident that oc­
curred at our bank in 1932 when things were ex­
tremely tight for all of us. Our bank was out of
cash and we had no reserves like we do today. I
put $300,000 of our bank’s negotiable farm real
estate mortgages in a suitcase and went over to
Calmar to catch the Chicago train. I arrived there
the following morning and went straight to the
City National Bank to see Bill Miller (later a
senior vice president in the correspondent bank
division at Continental Bank following a merger).
Bill asked me to leave the package with him so his
people could review them and he would give me
an answer at 3:00 p.m. as to whether they would
qualify for a loan under the RFC (Reconstruction

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

Finance Corporation) regulations for assisting
businesses with a need like ours.
I returned promptly at 3:00 p.m. Bill said, “I t ’s
all arranged. What shall I do with the $300,000?”
I told him to credit our account, went down and
got back on the train and returned to Decorah.
We rewrote all those farm mortgages to extend
their payment terms and we were proud to report
that all of them paid off within five years and our
bank paid off the entire $300,000 RFC borrowing.
All that those farm borrowers needed was more
time to work out of the hole the Depression put
them in and they proved this by a 100% payoff of
their loans.
Another point I recall is that there was more
neighborliness in those days. I knew farmers who
would cash time certificates of deposit and loan
the money to their destitute neighboring farmer
to help him out. It was a fight for survival on the
part of everyone at that time.
In the 1940s, farming was muscular; that is,
the farmer himself did a lot of muscular work in
his seeding preparation and harvesting, and also
had the use of draft horses for muscular power.
That gradually passed over, and in the ’50s agri­
culture became mechanical; by that I mean that
the farmer really started to buy the tractors.
Jumping into the ’60s, agriculture was thrown
into the chemical age, and that was my introduc­
tion to the use of Lasso and the other weed killing
chemicals that existed at that time. We then went
into the ’70s, and that is the time that good prices
existed in the sale of farm products and land, and
land went up faster than the prices the farmer re­
ceived for his goods. The farmer went into debt to
buy additional land, machinery, etc., as many of
the advisors told him he had to be big in order to
really make money and survive. As a result of the
disinflation period that entered in the early ’80s,
the spiraling cost of land and implements left
many farmers in need of professional and finan­
cial services; they were then unable or unwilling
to seek financial help or financial relief. It finally
reached the point where in the last two years it
has cost more money per bushel of anything the
farmer raises than he will receive from it.
However, I am optimistic for the long pull. It
certainly must be a lesson to any of the younger
bankers to remember that it can happen again.
Right now, I do believe that with lowered prices,
opportunity is showing its head brighter and
brighter. The future should be excellent, but we
may have to do a lot of grubbing to arrive at that
Iowa is celebrating its 100th anniversary in
banking, and it is still a great business to be in
and it’s certainly a privilege to be able to be of
service to the public and see them do well.




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Kirk Gross Com pany
4015 Alexandra Drive • Box 2097
W aterloo, IA 50704 • (319) 234-6641


Iowa News

LEFT—A Davenport landmark since 1923, the old First National Bank Building is now known as the First Bank Center. RIGHT—Many
hours were spent restoring the beautiful bank lobby.

Elegant New Home for First Bank Davenport
of the historical in 1983. A Davenport landmark
First National Bank Building in since its construction, the First Na­
Davenport, now known as the First
tional Bank Building’s Renaissance
Bank Center, is complete. In July, Revival architecture made an ele­
First Bank of Davenport moved gant new home for the First Na­
from its old home at Third and tional Bank.
Brady Streets to the newly reno­
In 1923-24, John Soller and Son,
vated historical building on Second Davenport, constructed the building
and Main.
of white Bedford stone and brought
A bank has occupied this location it by rail from Indiana. In the bank
since 1847, (The Cook and Sargent lobby, gray Tennessee marble
Bank), one of the earliest banks west wainscoting and flooring were
of the Mississippi. The old First Na­ softened and warmed by the liberal
tional Bank Building, built in 1857, use of bronze and walnut. The en­
was home to the First National trance detailing begins in the Bed­
Bank of the United States — the ford stone that arches around the
first bank to open its doors under a door, known architecturally as “re­
national charter on June 29, 1863.
veal.” Adolph A. Weinman, noted for
The bank’s original building on his design of the Mercury dime,
the same site (dating from 1857) was sculptured eight figures in the Clas­
destroyed by fire in 1923. In 1931, sical style — depicting banking,
the First National Bank ceased oper­ security, philosophy, law, com­
ation when it merged with the Union merce, industry, agriculture and
Savings Bank of Davenport. The labor.
bank premises were then leased to a
Seals of the City of Davenport, the
variety of tenants and the building State of Iowa and the United States
gradually deteriorated over the were also carved into the stone arch­
way entrance.
The building was named to the
The magnificent bank lobby is the
National Register of Historic Places result of hours of intricate restora­


e s t o r a t io n

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

tion work. Rich details of the build­
ing were hidden behind plaster walls
and dropped ceilings. Particular
features included marble wainscot­
ing, ornate vaulted ceilings and
carved bronze detailing. One of the
most significant discoveries was of a
complete, original marble staircase
leading to the vaults in the lower
level of the building. The staircase
had been sealed off by the last ten­
ants, and has now been restored to
its former beauty.
Three elegant chandeliers add the
finishing touch to the main lobby.
The chandeliers were recreated by
New Metal Crafts, Inc., based in
Chicago, from photos of the chande­
liers which used to hang in the main
lobby of the building.
The lobby’s high ceiling is one of
the most magnificent artworks of
the entire building. Artist Sven
Paulsen of Des Moines spent
months restoring the ceiling to its
original beauty.
The graceful arched design of the
huge vaulted windows is the most
dominant feature of the main bank
lobby. The 10 windows are 20 feet in








new profit
your bank

The unique Flex-O-Pay» computerized billing system
was developed to solve one of the current problems
faced by many bankers. How do you generate additional
income from your present staff and equipment? This
simple, flexible plan is easy to operate, yet it can
become one of your most important profit centers.
This is a computerized local billing/credit service that
provides a consistent source of cash flow for your local
business customers. You generate income for your bank
through the discount on receivables. And you profit by
the finance charges on accounts with balances that have
been billed over 30 days.
For complete information, call Toll FREE anywhere in
Iowa . . . 1 -800-772-2411 or call collect outside Iowa at
319-291-5415. Ask for LeRoy Bell or write The National
Bank of Waterloo, PO. Box 90, Waterloo, IA 50704.


The National Bank
F.D.I.C. Insured up to $100,000

Subsidiary of Iowa National Bankshares Corp
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1986


Iowa News

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

Valley National Bank III
Main Office-Sixth and Walnut

M em ber FDIC


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

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

height, letting in abundant natural
light and creating an airy, spacious
effect. The distinctive arched shape
of the windows is repeated through­
out the bank, most notably in the
teller windows. These windows have
been designed to look as much like
the original teller lines as possible.
Etched glass forms the arches of the
windows and old-fashioned teller
cages complete the elegant look.
In the lower level of the building,
both vaults, although badly tar­
nished, were completely intact. First
Bank returned the grillwork to its
original luster and added new time
clocks to the vaults.
In addition to uncovering and
re s to rin g m any a rc h ite c tu ra l
treasurers of the former First Na­
tional Building, First Bank moved
some significant “treasures” of its
own to the new building. The grillwork now protecting First Bank’s
cash vault previously guarded the
safety deposit department at Third
and Brady.
Other pieces that made the move
were the old board table and stately
grandfather clock. Both pieces now
grace the Bechtel Library, located
on the third floor, which will be used
as a conference room. First Bank’s
signature landmark clock was also
moved. Orignally commissioned by
Scott County Savings Bank, the
clock dates back to 1915.
General contractor of the restora­
tion was Crane Construction Co.,
Northbrook, 111. Edward N. Simon,
Jr. AIA, Chicago, was the architect.
The interior design was furnished by
Fidlar Contract Interiors, Daven­
Jojns Hampton Bank
Loren Lubben has joined the
Hampton State Bank as executive
vice president and director. He will
serve as the bank’s senior lending of- q
ficer and be responsible for overall
loan administration.
Prior to joining the bank, he
served as vice president and head of
the farm department at Hawkeye
Bank & Trust, Maquoketa.
Added in Hills
Bradford C. Zuber has joined
Hills Bank and Trust Company as a €>
trust officer. He has been a partner
in the law firm of Saylor and Zuber
in Williamsburg since 1985, having
joined the firm in 1981. He is also a
certified public accountant.





oday more than ever, Iowa banks
depend on a strong correspondent rela­
tionship to thrive in the ever-changing
world of banking.
At First Interstate Bank, our Iowa Correspondent Services Division offers the
highest level of expertise and service to
assist you in managing an efficient and
profitable community bank.
Because of our ability to anticipate and
react to the changing needs of Iowa
banks, we’re setting the pace in achiev­
ing results. Results that translate into a
strong bottom line...your bottom line.
Compare us to the correspondent you
now use, then make the right choice.
First Interstate Bank. The bank that’s

• Check Processing Services
• Computer Services
• Loan Overlines
• Investment Services
• Investment Portfolio Analysis
• Fed Funds Agency Agreements
• Personalized Discount
Brokerage Services

• Trust Services
• Direct Loans
• Agriculture
• Commercial
• Personal
• Real Estate

setting the pace.


F ir s t



We’re setting the pace
First Interstate Bank of Des Moines, N.A.
Locust at Sixth
Des Moines, Iowa 50309
Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1986

have no effect on the existing Nor­
west Card Services, Inc., the arm of ®
Norwest Bank Des Moines, N.A.,
headquartered in Des Moines, Mr.
Brinkman said. The latter unit will
remain in Des Moines and will con­
tinue to process all transactions for ®
credit cards issued by Norwest
Banks in the seven-state area.
* * *

James F. MacLean has joined
Valley National Bank in the lending
division as vice president in charge
of correspondent banking and credit
analysis, and J. Scott Konecny has
been promoted to vice president,
trust investment officer at the bank.



Mr. MacLean most recently serv­
ed as assistant vice president and
senior credit analyst for Hawkeye
B ancorporation. His previous
experience includes vice president
and senior loan officer at Onawa
State Bank, vice president of Bank
of Panama, Panama, Neb., president
and CEO at Bank of Peru, Peru,
Neb., and branch manager at Na­
tional Bank of Commerce in Lincoln,
Mr. Konecny joined Valley Bank
in 1983 and most recently served as
senior trust officer.
Bruce A. Baumgarn has joined



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

First Interstate Bank of Des
Moines, N.A. has announced the ap­
p o in tm e n t of
Malecha as as­
sistant vice pres­
ident in the Iowa
corporate ser­
vices division;
the bank as assistant vice president Margaret A.
in the commercial lending division. Hoogerheide as
He has been with the Farm Credit senior trust offi­
System for 11 years, serving most cer and manager
recently as vice president in charge in the personal trust department,
and Larry M. Peterson as senior
of special accounts.
Also, Candace Metschke has been trust administrative officer in the
promoted to office manager, East personal trust department.
Mr. Malecha joined the bank in
Euclid office, of the bank. She joined
Valley Bank in 1985 as retail bank­ 1985. Prior to this, he was an assis­
tant vice president at First Inter­
ing administrator.
state Bank of Estherville.
* * *
Ms. Hoogerheide also joined the
in 1985.
Norwest Financial, Inc., head­
quartered in Des Moines, has
formed a new subsidiary, Norwest
Financial Credit Card Services,
which has made application with
federal authorities to operate its
credit card business in Sioux Falls,
S.D. The new enterprise would
operate through Dial Bank, which
has received a state charter in Sioux
Falls from the South Dakota bank­
ing department and awaits approval M.A. HOOGERHEIDE L.M. PETERSON
from the Fed and FDIC.
Mr. Peterson has been with the
Richard Brinkman, president Of bank since 1963 in the trust divi­
Norwest Financial in Des Moines, sion.
said Dial Bank will function basical­
* * *
ly as a card-issuing entity. “We
Mark Fasse has joined Brenton
must take deposits under our char­
ter, if people wish,” he said, “but we Mortgages, Inc. as an assistant vice
will not solicit them.” He also said president. He
Norwest Credit Card Services “will will manage the
not issue credit cards to our own servicing and
customers in the seven states in residential real
which Norwest banks now operate, sstate area of
but would issue them in the other 36 the m o rtg ag e
states where Norwest does business. s u b sid ia ry of
Norwest banks presently are in Min­ Brenton Banks,
nesota, Iowa, Wisconsin, Nebraska, Inc.
He succeeds
South Dakota, North Dakota and
Jerry Hietbrink
Establishment of Norwest Credit who h as a c ­
Card Services in Sioux Falls will cepted a position in Phoenix, Ariz.



The difference between
our health plans and theirs is
enough tomakeyou sick.
W ith most insurance
plans, if you’re not sick
before you get your
final medical bill, you \
will be after.
But not with IBIS.
Our many health
care plans are as
substantial as our
premiums are minimal.
Including coverage on
prescription drugs and
physical exams.
Why, we even cover
your mouth.With dental
plans as contemporary
and complete as any
Health and dental
insurance designed
by Iowa bankers,only for
Iowa bankers.
Federal Reserve Bank of St. Louis

W hich is one more
reason why we’re the
choice of 483 out of 644
banks in Iowa.
Like to know more?
Call Millie Uding at
1'800'532'1423 toll free
today. You’ll be sick if
you don’t.


400 Financial Services Building, 508 Tenth Street, Des Moines, Iowa 50308
Northwestern Banker, November, 1986


Iowa News

Financial Information Trust has
named Sally Smith as senior vice
president and di­
rector of its in­
dustry support
In her new po­
sition, she will
manage and di­
rect the various
sections of the
in d u s try s u p ­
port group in­
cluding: b u si­
ness development, industry re­
search, marketing/product informa­
tion and the north and south re­
gional support teams.
She was formerly the vice presi­
dent of sales and marketing for
Hawkeye Banks of Des Moines.
Financial Information Trust is a
Des Moines based computer pro­
cessing center for financial institu­
Two Named in Conrad
Shane J. Tiernan has joined the
First National Bank, Conrad, as as­
sistant vice president in the lending
department. He most recently was

of additional offices, conference
rooms, loan payment convenience •
center and trust department area
has been planned to provide more
customer convenience and privacy.
First Security, currently the larg­
Joined in Manson
est financial institution in the Char- ®
Randall Loerch has joined the les City area, has assets of $88 mil­
Manson State Bank as an officer lion.
He is a recent
Sioux City Bank Names Two ^
graduate of Des
Thomas Kimmel has been ap­
M oines A rea
vice president of real estate
Community Col­
at First National Bank in
lege with an as­
He has been vice presi­
sociate of ap­
Federal Savings £
plied science de­
16 years. He is
gree in financial
licensed in real estate and insurance
services. While
in the State of Iowa.
DMACC, he was
employed at the West Des Moines
State Bank.
associated with the Anita State
In addition, Steven M. Metge has
been named assistant cashier. He
has been with the bank since 1979.

Remodeling Beings in
Charles City
An extensive remodeling project
has begun in the lobby area of First
Security Bank and Trust Com­
pany’s main office in Charles City.
According to Bill Hebrechtsmeyer, bank president, construction

Committed to
making your
bank stand
apart from the



In addition, Deborah D. Smith ®
has been promoted to manager of
the bank’s Morningside Office and
senior family banking officer. An
employee of the bank since 1980, she ^
most recently served as assistant w


Index of
November, 1986

American National Bank, St. Paul .................................... 25
Austin, Douglas & Associates, Inc..................................... 8
Bankers Trust Co., Des Moines ......................................... 42
Brandt, Inc.............................................................................. 55
Central Bank of the S o u th ................................................... 3
Davenport Bank & Trust Co................................................... 45 ^
Drovers Bank of C h ic a g o ................................................10-11
Federal Home Loan Mortgage Corp...................................6-7
First Bank System, Minneapolis ....................................... 14
First Interstate Bank, D e n ve r..............................................13
First Interstate Bank, Des M o in e s ..................................... 51
First National Bank, O m a h a ............................................... 41
FirstTier Bank, L in c o ln .........................................................38 ^
First Wisconsin, M ilwaukee.............................................28-29 ™
Gross, Kirk Co., W a te rlo o ................................................... 47
IAC Group, Kansas C ity ....................................................... 9
Iowa Bankers Insurance & Services, Inc.............................53
Marquette Bank, Minneapolis ........................................... 21
Merchants National Bank, Cedar R a p id s ........................ 2
National Bank of W a te rlo o .................................................. 49 ®
Norwest Corporation, M in n e a p o lis ................................... 56
Office Concepts, Ltd., W aterloo......................................... 54
Plus System, Inc., D en ve r....................................................18
Rothschild, Unterberg, Towbin, L.F., Inc.
Travelers Express Co., Minneapolis
Valley National Bank, Des M o in e s........

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




When it conies to currency
counters with high throughput and
dependable accuracy, companies
count on Brandt. In fact, some go
so far as to say they’re fester
than a speeding bullet.
Well, we do make currency
counters that can Count up to 1500
documents a minute. Take, for
example, our Model 8671. This
high volume wonder features

Federal Reserve Bank of St. Louis

an optional counterfeit detec­
tion aid and, it can be interfaced
with our cash settlement system.
For fast, economical currency
counters, our Models 8640 and
8641 are compact and dependable
as the day is long. And, for high
speed handling of checks aid food
stamps, our new Model 8610
offers incredible counting capability.
So, if you want to shoot

amazing speed and accuracy, load
up with Brandt. Our high cali­
ber currency counters and unbeat­
able, coast-to-coast service will
keep you right on target.
Brandt, Inc., 1750 Woodhaven
Drive, Bensalem, PA 19020.
(215) 638-3600.

Since 1890

We KnowTheWay
1o Lands Of Opportunity
In today’s economic climate, you have
to search for opportunities around every
bend. And now more than ever, it takes
a strong financial leader to help make sure
the best ones don’t get away
At Norwest Banks, we understand the
needs and opportunities facing bankers
today After all, we’ve operated banks of our
own in more than 100 different markets
over the last 50 years. And when you come
to us for correspondent banking, we make
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We can provide the specialized services
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whether that means ATM access, credit
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Talk to us today about our full line of
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banking, we know the way ■

We Know The Way. We Are Norwest.
Hk mm

Members FDIC
Federal Reserve Bank of St. Louis