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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 https://fraser.stlouisfed.org 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 \ Eastern J A Iowa f Merchants National Bank m * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N j Cedar Rapids. Iowa 52401 Member F D IC A BANKS OF IOWA BANK 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 R today. We’re a natural extension of your potential. Call 1-800-331-9250. CentralCapital Markets Group Ltd. of the Investment Banking Division of Central Bank of the South ( Extend your bank’s investment resources. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 NOMWESTERN Editor... NOVEMBER 1986 • 93rd Year • No. 1478 MEMBER OF AUDIT BUREAU OF CIRCULATIONS MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES ON THE COVER 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. FEATURES 12 ABA ag bankers conference Opryland Hotel is headquarters, November 16-19 15 Risk management awareness RMA President Malcolm Murray learns risk is real! 26 Bankers respond to Banclnsure Truman Jeffers details multi-state insurance program DEPARTMENTS 4 8 22 24 31 “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 wishes.” Sincerely, George Shepley President 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 0 Citizens National Bank Charles City, Iowa Mark Olson heads ABA New president has extensive legislative credentials 19 f Dear Editor Calendar Minnesota Twin Cities Illinois 32 33 34 36 37 Wisconsin South Dakota North Dakota Colorado Montana 39 40 43 52 54 Nebraska Omaha Iowa Des Moines Index of Advertisers NORTHWESTERN BANKER 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. Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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, she ta u g h t D.A. DAWSON 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. 5 BOND SERVICE vs. BANK SERVICE 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 banks. BANK SERVICE views 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 entity. https://fraser.stlouisfed.org 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. Then our BANK SERVICE 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. ie___________ L. F. ROTHSCHILD, UNTERBERG,TOWBIN, INC. BANK SERVICE® Northwestern Banker, November, 1986 6 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 mittee. 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. STATEMENT OF OWNERSHIP MANAGEMENT AND CIRCULATION (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 preceding nearest to 12 months filing date A. Total No. copies printed 5,200 5,050 (Net Press Run) B. Paid Circulation 1. Sales through dealers and carriers, street ven dors and counter sales NONE NONE 2. Mail Subscriptions 3,778 3,652 C. To ta l paid c irc u la tio n 3,778 3,652 D. Free distribution by mail, carrier or other means— sample, com plim entary, and other free copies 1,235 1,233 E. Total distribution (Sum of C and D) 5,012 4,885 F. Copies not d istrib u te d 1. O ffice use, leftover, unaccounted, spoiled after printing 187 165 2. R eturn s fro m news agents NONE NONE G. Total (Sum of E, F1 and 2—should equal net press run shown in A) 5,200 5,050 11.1certify that the statements made by me above are correct and complete. BEN HALLER, JR. 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 Northwestern https://fraser.stlouisfed.org 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 THE GN O M ES KNOW® Freddie Mac 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ©1986, FHLMC Freddie Mac Owned by A merica’s Savings Institutions 8 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 1986 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. 1987 Jan. 14—BAI Outlook for ’87, Airport Hilton Inn, Des Moines. State Conventions & Schools Illinois: Nov. 19-20—IBA Bank Management Confer ence (Exhibits), Rosemont. Dec. 9—IBA Bank Directors Seminar, Deca tur. Dec. 10—IBA Bank Directors Seminar, Oak Brook. Iowa: Dec. 4—IBA Bank Directors Seminar, Holi day Inn, Ames. Minnesota: Nov. 20—Community Bank Marketing Stra tegies, Holiday Inn International, Bloom ington. 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. 1987 Jan. 29—MBA Compliance Teleconference, Hilton Inn, Minneapolis. EXPERTS IN BAN K NEGOTIATIONS AND SA LE S 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 I 4 m/ \ 4 / \ DOUGLAS AUSTIN AND ASSOCIATES, INC. Suite 2, 3178 Republic Blvd. North • Toledo, Ohio 43615 Chicago • Lansing Northwestern Banker, November, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska: 1987 ^ 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 Falls. 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 Railroad, 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, M N.Y. The an M.H. WALSH 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 ties. 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 time. 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 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 L.B. WEBER 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- o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES BUSINESS REPLY MAIL I FIRST CLASS PERMIT NO. 30949 CHICAGO, IL POSTAGE WILL BE PAID BY ADDRESSEE Drovers Bank of Chicago ATTN: CORRESPONDENT BANK DIVISION 47TH STREET AND ASHLAND AVENUE CHICAGO, IL 60609 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I want to know more about Drovers’ services. n • i è « r^fmi 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 Title (Please Print or Type) Phone Rank (^y □ □ □ □ □ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State Zip ............. 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 disclosed. • • 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 E.R. FELL 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 ces. 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 11 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 ment. 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 tion. 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. Joseph. D 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 the spec 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 lend 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. toyou A • I Drovers Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of Chicago 47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000 MEMBER OF THE FEDERAL RESERVE SYSTEM AND ED.I.C. A C ole-T avlor B a n k 1986 ABA National Agricultural Banker Conference HE American Bankers Association will hold its 1986 National Agricultural Bankers Conference T November 16-19 at the Opryland Hotel in Nashville, Term. 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, Neb. Sunday, November 16 A.M. 9:00 Registration until 7:30 p.m. 10:00 Musical Fellowship. P.M. 2:00 Exhibits open. 6:30 Opening Reception. Monday, November 17 A.M. 7:00 Registration until 5 p.m. 7:50 Opening General Session. Welcoming Address—Robert W. Ranger, conf. chmn. “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 https://fraser.stlouisfed.org 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. P.M. 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 A.M. 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. P.M. 2:00 Commodities Marketing Seminar. Guest speaker from the Chicago Board of Trade, and John Gaines of Chicago Mercantile Exchange. 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 A.M. 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. □ 13 If we're noi your correspondent 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 products. 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. Specifically, you're overlooking: Cash letter processing that gives you excellent availability and competitive pricing. A proven com m itm ent to extending c re d it https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Participations that offer flexibility and fast turnarounds. Investment products and expertise from the region’s leading investment departm ent. International services that offer access to First Interstate's worldwide network. The m ost advanced cash m anage m ent systems, along w ith complete consulting and support. Third-party cash m anagem ent ser vices that will m eet the needs of your customers. And you can buy federal funds at national rates in am ounts as low as $50,000 on approved credit. To learn more, call Bob Swartz now at (303) 293-5600. W hether your operation is large o r small, you have a lot to gain from the best correspondent banking services in the Rocky M ountain region. O F irst In terstate Bank First Interstate Bank of Denver 633 Seventeenth Street, Denver, Colorado 80270 Member FDIC Northwestern Banker, November, 1986 Warm wishes from your friends at First Banks Correspondent Banking. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis # First Banks Members First Bank System Members FDIC 15 Meet ABA President Mark Olson Legislation and education . .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 P ® assist bankers in marketing those products will be two ® ^ 0 • # • 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 https://fraser.stlouisfed.org 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 16 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 1976. 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 time.” 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 Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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 • ® • ® ^ 9 ^ £ q # • 17 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. https://fraser.stlouisfed.org 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 : m m fü f ü |fij] j g ] The Plus System network lets its num bers do the talking. Do 65 million Plus System® cardholders and eight million Plus System® transactions a year tell you something about national market dominance? They should. Because the Plus System® network has tens of millions more cardholders and processes hundreds of thousands more transactions every year than any other nationally shared ATM network. It’s no secret why the Plus System® network is the choice of consumers when it comes to obtaining cash https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis throughout the United States, Canada, Great Britain and Japan. At the Plus System® network, the philosophy has always been to offer customers unequaled reliability. And to offer customers uncompromis ing security that ensures the confidentiality of every transaction. So when a cardholder requests cash from a conve niently located Plus System® ATM, he or she has the con fidence of knowing that the process is fast, safe and secure. Isn’t it time your financial institution joined the Plus System® network— the premier choice for national ATM sharing? For complete information regarding membership, please contact your local Plus System member, or call Plus System, Inc. at (303) 573-7587. The premier choice. With pursuit of opportunity must come: “Risk Management Awareness” By MALCOLM T. MURRAY, JR., Exec. V.P. 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. I 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 back. 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 https://fraser.stlouisfed.org 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 prices.” • “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 prudent.” • “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 club! 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 Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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 tomorrow. Technologies and services change, but our attitude hasn’t. Because Marquette Bank Minneapolis will never put aside our oldest promise to our customers: professional service with a personal difference. Marquette Bank Minneapolis M em ber FDIC Correspondent Services Division https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22 Bankers Attend MBA District Meetings OMINEES for 1987-88 Minne N 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 Rock. • 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. Northwestern Banker, November, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 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 Bemidji. 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 president and manager of the corres H.B. (Bernie) Renander has been pondent bank department and presi elected president and chief executive dent of Security Agri-Credit Corpo officer of Norration. w e st B ank Northfield. Purchase Agreement Signed He was re First Bank System has an gional vice presi nounced it has signed a purchase dent and control agreement for the sale of First Bank ler for Norwest’s Spring Valley, which upon regula R egion III, tory approval, will merge with the based in Bloom First National Bank of Le Roy, ington. He suc owned by Robert Farrar. The bank ceeds Wilmer C. M.B. RENANDER will be known as First National Brosz, who has Bank. been elected chairman of the NorthAt year-end 1985, First Bank field bank board. Spring Valley had assets of $19.8 President of Norwest Bank million. The First National Bank of Northfield since 1970, Mr. Brosz has Le Roy has assets of $8 million. Spe been with the Norwest organization cific purchase terms have not been since joining Norwest Bank in Aus disclosed. tin in 1959. In August, First Bank System Mr. Renander has been regional had announced its plan to restruc vice president since Norwest orga ture 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 ministration. 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 https://fraser.stlouisfed.org 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 24 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. W.G. JURGENSEN A.R. BOREN, JR. 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 Northwestern Banker, November, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis expects to report net income of about $51 million for the third quar ter. 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 banks. 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 1977. * * * • 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 treasurer. * * * 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. TWIN CITIES NEWS. . . (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 https://fraser.stlouisfed.org 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, succeed. If you’re looking for a partner to help you succeed, perhaps it’s time for a change. A M E R I C A N N A T I O N A L B A N K . S A I N T PAUL 26 Bankers Respond to Banclnsure with Requests for Hard-to-Place Coverages A N orthwestern B anker interview with TRUMAN JEFFERS Executive Vice President Minnesota Bankers Association Minneapolis, Minn. HEN Banclnsure, Inc. became W 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 for 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 Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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 clients.” 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- ^ w ^ ^ q % # # • 27 * We’ve Spent 45 Years . D eveloping Our Good Name to Stand Behind Yours. ® Travelers Express has been in the mainstream of financial processing services for many years. In fact, we’re the largest volume money order provider in the commercial marketplace.. .and that didn’t happen overnight. Teamwork and state-of-the art equipment put us at the head of the class for reliable and efficient processing of money orders and official checks. Official Check and Money Order services from Travelers Express relieve your institution of paper inventory and storage costs, back office reconciliation, stop payments, photocopies and tracing. Our services also offer you an oppor tunity to earn income for your financial institution through increased balances. Best of all, we stand behind your institution as well as our products. We’re not a bank and don’t compete for your customers’ attention. For more information, contact Terry Franzen, Marketing Manager, 1- 800 - 328- 5678 . ^Travelers Express A GREYHOUND https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis COMPANY I t o m p a n y Northwestern Banker, November, 1986 : "j https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0$l§mÊÉ :ÿ CUOIWIE SUCCESS. Now’s the time to prepare for the new wave of competition in banking—with automated services from First Wisconsin. We offer flexible systems that meet your market’s demands. Backed by service professionals always there when you need them. You gain better information for better decisions. Improved employee productivity. And the tools you need to compete. The natural result is profit able banking. Discover the systems that cultivate success. Call First Wisconsin today at (414) 765-4459. WHENPERFORMANCECOUNTS.™ ill FIRST W IS C O N S IN ©FW C 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 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 reductions. 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 The 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 $300,000. “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 nies.” Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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 coverage. 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., Rockford. 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 1969. 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 https://fraser.stlouisfed.org 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 program. 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 lyst. 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 positions. 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 que. 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 dent. CHICAGO NEWS. . . (Turn to page 32, please) Northwestern Banker, November, 1986 32 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. R.T. VAN ALEN M.K. MAGYAR 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 1982. 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 Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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. £ CHICAGO NEWS. . . (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 ficer. The addition of the Avenue Bank Group will bring First Colonial Bankshares total assets to nearly $1 billion. 33 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 By 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 ROBERT CRONIN 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 w 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 president. SDBA Group Meetings Held A ^ 0 # • 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. https://fraser.stlouisfed.org 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 Springs. 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 34 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 S.D. VELK 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 in 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. He 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. C. THOMPSON 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 T Independent Banks Can Now Offer Nationwide ATM Access U Northwestern Banker, November, 1986 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis North Dakota News 35 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 By DENNIS BLANK HE IMPORTANCE of preserv T 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 cess. 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 year. 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 https://fraser.stlouisfed.org 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 den. 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 America. 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 36 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 1983. 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 https://fraser.stlouisfed.org 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 lected. 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 1987. “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 loans. 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 moved. 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 area. 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 resigned. 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 ties. 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- , K.W. BOSTROM 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/ K.P. PEDELTY 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 TWIN CITIES NEWS. . . (Continued from page 24) https://fraser.stlouisfed.org 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 15. 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 38 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 remain. 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. il Gary L. Bieck Vice President & Manager Steve Anderson Vice President Marv Hefti Vice President Mark Hahn Vice President Charles Greenway Asst. Vice President àw Kathryn Barker Ag & Financial Officer David Luckey Ag Inspector Charles Ellis Operations Manager Daniel Black Ag & Financial Representative Betsy Crowley Ag & Financial Representative Craig Engelage Ag & Financial Representative For all your Correspondent needs, remember the name - FirsTier. 3 F irsT ier B a n k Lincoln 13th & “M” Streets • Box 81008 • Lincoln, NE 68501 • Phone: (800) 742-7462 FirsTier Bank, N.A., Lincoln, Member FDIC DigitizedNorthwestern for FRASERBanker, November, 1986 https://fraser.stlouisfed.org 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 folk. Linda Peteler has been selected to manage the agency office. She has relo L. PETELER 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1972-79. 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 worth. 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 lege. 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 Ogallala. 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. 1985. NIBA Annual Convention— Nov. 20-21 HE N ebraska Independent T 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 P.M. 1:00 Registration. 2:00 Board Meeting. 6:00 Convention Warm U p hosted by Touche Ross & Co. and the Nebraska Young Bankers. 7:00 Lincoln Welcome D innerHosted by the Board of Di rectors. Friday, November 21 A.M. 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 sel. P.M. 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 & Co. 3:30 Bus Returns from The Acre age. 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 1986-87. □ Northwestern Banker, November, 1986 40 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 ment. 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 ware. 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 computers. 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 Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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. tions. # * * * 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 bankers from Kansas, Nebraska and • Omaha. He joined the bank in 1959, Missouri. working in the auditing and control The second-year session, sche ler’s departments before joining the duled 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. J. SCHUMACHER S.G. BODNER 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. • 41 A T ** Anchorm en. Change comes fast in today’s banking — so fast you need an anchor of stability and dependability. Meet the anchormen — the experienced, professional corre spondent bankers of First National Bank of Omaha. The more things change, the stronger is their commitment to 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. https://fraser.stlouisfed.org 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. W Call us for a complete range of correspondent banking services. TRUST SERVICES Investment Management Individual/Corporate Services INTERNATIONAL BANKING Full line of International Services INVESTMENTS Bonds Fed Funds CDs COMMERCIAL Loans Bank Acquisition Loans Overlines & Participations OPERATIONS Banking Systems Processing ATM & Debit Card Support Cash Letter Processing Remote Processing Support Call 1-800-362-1688 or 515-245-2424 • Seventh and Locust • Des Moines 50304 BankersTrust Member FDIC Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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 A 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 borrowers. 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: 0 % 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43 New Branch Manager Named First National Bank of Council Bluffs has opened a new branch at the Mall of the Bluffs. 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 notes. 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 K,A- STR0THER 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 44 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 ing. 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 dianola. She joined the bank in 1977 as a teller and new account repre sentative in the M o to r B ank. I. ASHMORE She had been as sistant to the senior loan officer prior to her assistant vice president position. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Appointed in Davenport Two have been appointed at Davenport Bank and Trust Com pany. 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 ments. Mr. Schricker, first vice presi dent, joined the bank in 1975 and was named first vice president in 1983. In a related move, Janice C. Foley has been promoted to assistant vice W m J.W. SCHRICKER J.C. FOLEY 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 S 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 banking. 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. a 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 show you results. Know us b y our reputation. Davenport Bank has a record of performance thaf s hard to beat. At Davenport Bank we focus on perfor m ance—not promises. When you work with us, you're working with one of the safest financial institutions around. We're able to bring stability to a correspondent relationship—an important consideration in today's changing banking environment. Our correspondent team has the talent— and the tools—to back its commitments with the results you expect. The p ro o f is in perform an ce. Let us tell you more about what we can do for you—then give us the chance to prove it. Technology te m p e re d with personal atten tion. We have the technology and the resources to provide you with a full scope of services to fill your day-to-day operational and investment needs. Call us today to set up an appointment—or write us at the address below. Phone (319) 383-3429 But we won't stop there. Well not only respond to your needs, well anticipate them. We'll work closely with you to find creative solutions to problems big and small, to help improve your profit picture. That's perfor mance. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis □AVEINPORT BAINK -----------------------AND TRUST COMPANY----------------------2 0 3 WEST THIRD STREET, DAVENPORT, IOWA 5 2 8 0 1 - 1 9 7 7 MEMBER FDIC 46 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, A 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 Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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 stage. 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. □ iO o \q. Yes, since 1971, Kirk Gross Company has designed, built or remodeled over 1 MILLION square feet of financial institutions — one million, one hundred seventy one thousand and one hundred and fifty square feet to be exact. The Kirk Gross Company [ specializes in turn-key development of I I L J I I y l | l \ J financial facilities, interior design and furnishings for complete commercial environments throughout Iowa. And no one can make each and every square foot of space work harder for you than Kirk Gross Company. No one else in Iowa has as much experience in designing, remodeling and building financial institutions. So you know when you come to Kirk Gross Company, your project w o n 't be the first we've ever done — just one of the best. We've got over a million ways to prove it — just give us a call. OVER SQUARE o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Kirk Gross Com pany 4015 Alexandra Drive • Box 2097 W aterloo, IA 50704 • (319) 234-6641 48 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. years. The building was named to the The magnificent bank lobby is the National Register of Historic Places result of hours of intricate restora R e s t o r a t io n Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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 ^ q ^ 0 || €) 49 FLEX-0 -PAY an important new profit center for 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. T: The National Bank OF WATERLOO F.D.I.C. Insured up to $100,000 Subsidiary of Iowa National Bankshares Corp https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, November, 1986 50 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, ...loans, and ... in earnings. That’s because we maintain a highly skilled staff, offer top service, and perform well financially. We welcome your inquiry ... Remember, there is a difference in banks. Valley National Bank III Main Office-Sixth and Walnut M em ber FDIC A “BANKS OF IOWA” BANK For Professional Correspondent Service call 1-800-622-7262 Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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 port. □ 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. ® 51 S E T T I N G T HE P A C E 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 IOW A CORRESPONDENT SERVICES • 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 Interstate Bank We’re setting the pace First Interstate Bank of Des Moines, N.A. Locust at Sixth Des Moines, Iowa 50309 https://fraser.stlouisfed.org 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. J.F. MACLEAN J.S. KONECNY 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, Neb. Mr. Konecny joined Valley Bank in 1983 and most recently served as senior trust officer. Bruce A. Baumgarn has joined B.A. BAUMGARN C. METSCHKE Northwestern Banker, November, 1986 https://fraser.stlouisfed.org 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 Kenneth R. Malecha as as sistant vice pres ident in the Iowa correspondent/ 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 K.R. MALECHA 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 bank 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 Montana. M. FASSE Establishment of Norwest Credit who h as a c Card Services in Sioux Falls will cepted a position in Phoenix, Ariz. • 53 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. (S 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 available. Health and dental insurance designed by Iowa bankers,only for Iowa bankers. https://fraser.stlouisfed.org 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. m IowaBankersInsurance &Services,Inc. 400 Financial Services Building, 508 Tenth Street, Des Moines, Iowa 50308 Northwestern Banker, November, 1986 54 Iowa News Financial Information Trust has named Sally Smith as senior vice president and di rector of its in dustry support group. 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 tions. 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. trainee. He is a recent Sioux City Bank Names Two ^ graduate of Des Thomas Kimmel has been ap M oines A rea pointed vice president of real estate Community Col lending at First National Bank in lege with an as Sioux City. He has been vice presi sociate of ap dent of Home/First Federal Savings £ plied science de and Loan for the past 16 years. He is gree in financial licensed in real estate and insurance services. While in the State of Iowa. attending R. LOERCH DMACC, he was employed at the West Des Moines State Bank. associated with the Anita State Bank. 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 T. KIMMEL D.D. SMITH 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 cashier. r K Index of Advertisers 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O O ft 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 O https://fraser.stlouisfed.org 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. BRANDT 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 that experience work for you. We can provide the specialized services you need in your marketplace—no matter how large or how small it may be. And whether that means ATM access, credit cards, investment alternatives, or traditional correspondent bank services, we’ll work with you to get the job done. Talk to us today about our full line of services. When it comes to correspondent banking, we know the way ■ We Know The Way. We Are Norwest. Hk mm NORWEST BANKS Members FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis