Full text of The Northwestern Banker : November 1987, 94th Year, No. 1490

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NOVEMBER
1987

ABA Officers
Elected at
Dallas Convention

Minnesota
Bankers Plan
Centennial
• Your Senior Market: An (Jnmined Diamond Field
• Mergers and Acquisitions—Dr. Douglas Austin

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

Doug Bass (left) with neighbor Lester Sendecki building a new deck through teanuvork.

Great Accomplishments
Great Accomplishments require hard work.
Determination.
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.
Doug Bass is a key member of the
correspondent banking team at Merchants
National Bank. With professionals like Doug . . .
and assets of over $665 million, MNB can
provide the financial assistance and teamwork
to support your hard work and determination.
Together we can accomplish great things.
Call Doug Bass at 319/398-4314 or toll-free
1-800-332-5991 ext. 314.

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

Merchants National Bank i :i

C edar Rapids. Iowa 52401

Member F D I C

A BANKS OF IOWA BANK

The Strength o f Eastern Iowa

*GSB... A Growth Opportunity
The Graduate School of Banking will help you
turn today’s challenges into opportunities for future
growth and profitability.
The Graduate School of Banking’s curriculum
centers around the teaching of applied concepts,
theories and techniques that will prepare a bank
manager to perform more effectively in a changing
financial services industry. The course of study is con
tinuously evaluated by senior banking and academic
advisors to assure relevance and to achieve a desired
balance between theory and practice.

Graduate School
of Banking
August 7-19, 1988
The Graduate School of Banking's
objectives—
•T o broaden knowledge and im
prove skills necessary for effective
leadership in banking
•T o develop management
capabilities and sharpen analytical
skills
•To create a better understanding
of the economic, regulatory and
political environment in which
the banking system operates
•T o stimulate an exchange of
ideas among students and faculty
concerning issues affecting banks
and the industry

The Graduate School of Banking is a rigorous
educational experience that demands a serious per
sonal commitment. The program requires residence at
three annual two-week summer sessions, completion
of a series of between-session assignments, satisfactory
performance on written examinations, and active par
ticipation in a variety of classroom and laboratory
exercises.
The Graduate School of Banking's 130 member
faculty is made up of distinguished academicians and
nationally recognized bankers who possess the ability
to both practice and teach the skills and techniques
required in banking today.
The Graduate School of Banking’s admission re
quirements are designed to select those bank officers
and regulatory officials who are prepared by ex
perience and prior education to derive greatest benefit
from this advanced bank management program.
For more information and an application for 1988,
please complete and return this coupon, or call (608)
256-7021.

S e n d me a brochure and application for the
Graduate School of Banking August 1988 Session.
Name ___________________________________________
Title

___________________________________________

Bank

___________________________________________

Address

____________ ____________________________

C ity ________________________State_________Z ip ____

Presented by the Central States

Digitized
for ofFRASER
Conference
Bankers Associations
ndhttps://fraser.stlouisfed.org
the University of Wisconsin-Madison
Federal Reserve Bank of St. Louis

Graduate School of Banking
122 West Washington Avenue
Madison, Wisconsin 53703
(608) 256-7021

Telephone

(________) ___________________________

Send to: Graduate School of Banking
122 West Washington Ave., Madison, W l 53703

Norwest Buys Arizona Bank ^

NOM W ESTERN
NOVEMBER 1987 • 94th year * No. 1490
MEMBER OF AUDIT BUREAU OF CIRCULATIONS
MEMBER BANK MARKETING ASSOCIATION
OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES

STATENIENT OF OWNERSHIP
MANAGEMENT AND CIRCULATION
(Required by 39 U.S.C. 3685)
(also DMM 448.31)

ON THE COVER
OFFICERS of the American Bankers Association for 1987-88 are pictured outside
the spacious, impressive Dallas, Tex., convention center, site of ABA’s 113th an
nual convention last month. See page 14 for identification of officers, exclusive
convention story and photos.
The Minnesota Bankers Association has begun plans to observe its Centennial
at the June, 1989 convention. Members of the Centennial Planning Committee are
pictured on the front cover. Left to right are: George A. Beito, pres., The Northern
State Bank of Thief River Falls and Gonvick; Kenneth D. Wales, sr. v.p., First Bank
Minneapolis; William G. Kirchner, chmn., Richfield B&T, Richfield; B.P. (Pete)
Allen, Jr., pres., First Natl., Milaca; Leslie W. Peterson, pres., Farmers State, Trimont, and Thomas E. Olson, pres., First Natl., Starbuck. For details of kickoff
celebration, see page 24.

FEATURES

Mergers and Acquisitions

How to design, structure, negotiate a plan—Part I—Dr. Douglas Austin

PlatformPlus™

James Stafford describes versatility of new system

ABA convention report

“ Kill the Moratorium” slogan voiced by speakers

Your senior market

An unmined diamond field says Minneapolis firm

Avoid pigeon-holing officers

Merchants National training effort is paying off

Mortgage tips

Insured Credit Services offers business selling ideas

DEPARTMENTS
22

23
24
25

Illinois
Minnesota
MBA Plans
Centennial
Twin Cities

Ranch Bankshares, Inc. and Nor
west Corporation announced today
they have signed an agreement for
Norwest to acquire the Ranch Na
tional Bank of Scottsdale, Ariz.
%
The proposed transaction is sub
ject to regulatory approval. Terms
were not disclosed.
Ranch Bankshares, Inc., an Ari
zona bank holding company, was #
founded in 1984. As of September
30, 1987, the assets of Ranch Na
tional Bank, Scottsdale, the com
pany’s only bank, totaled $18 mil-

27
27
28
29

Wisconsin
Colorado
South Dakota
North Dakota

31
32
34
37
40

Nebraska
Omaha
Lincoln
Iowa
Des Moines

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

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor

Ben Haller, Jr.

Robert Cronin

Diane Nelson

No. 1490 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.

1.Title of publication — Northwestern Banker
2. Date of filing — October 6, 1987
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 o f
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:
Actual No.
Average No
copies each of copies of
issue during single issue
preceding
nearest to
filing date
12 months
4,800
4,919
A. Total No. copies printed
(Net Press Run)
B. Paid Circulation
1. Sales through dealers
and carriers, street ven
NONE
NONE
dors and counter sales
2. Mail Subscriptions
3.569
2.959
3.569
2.959
C. Tota l paid c irc u la tio n
D. Free distribution by mail,
carrier or other means—
sample, com plim entary,
1,117
1,666
and other free copies
E. Total distribution
4,686
(Sum of C and D)
4,625
F. C opies not d is trib u te d
1. O ffic e use, leftover,
unaccounted, spoiled
after printing
233
175
2. R eturn s fro m news
NONE
NONE
agents
G. Total (Sum of E, F1 and
2—should equal net press
4,919
run shown in A)
4,800
11. I certify that the statements made by me above are cor
rect and complete.
BEN HALLER, JR.
Editor and Publisher
12. For com pletion 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 m atter under former section
4359 of this title shall mail such matter at the rates provided 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

Northwestern Banker, November, 1987

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

^
™

First Bankers
Securities
Corporation
Brings the
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Federal Reserve Bank of St. Louis

Center Program • Bank Trust Asset Management • Asset Management Consulting

through insurance brokers of th e #
bank’s choice.
NAS is located at 1800 Avenue of
Gary Teagno, director of services the Stars, Suite 410, Los Angeles,
HE Independent Bankers Asso
ciation of America has intro for the 7,000-member IBAA, be California 90067. Telephone (213)
duced a new, expanded insurance lieves that the new GALEXI PLUS 277-2112.
•
program — Legal Expense Reim program can be helpful to banks in
bursement Insurance for Directors enhancing their ability to attract
and retain qualified individuals to Chase Makes Available
and Officers (GALEXI PLUS) which is being offered to IBAA- act as bank directors.
Eight Vista Mutual Funds
^
NAS President Maurice H. Sidy,
member banks through facilities ser
The Chase Manhattan Corpora
CPCU, ARM, notes that the GALE
viced by NAS Insurance Services.
A key feature of the new program XI programs provide coverage for tion, New York, is making available
permits banks to qualify for as much the gap created by the now common to consumers nationwide a family of
as $500,000 in reimbursement limits regulatory exclusion in D&O liabili eight new mutual funds called Vista.
Chase, through The Chase M an-^
as compared to the previous maxi ty insurance. It also helps overcome
the scarcity of Directors and Offi hattan Bank and Chase Lincoln
mum of $250,000.
All three GALEXI PLANS avail cers liability insurance at economi- First Bank, is investment advisor
and shareholder servicing agent for
able to IBAA-member banks pro no| ro to c
the
funds. The Massachusetts Fi
The
IB
A
A
-N
A
S
G
A
L
E
X
I
vide legal expense reimbursement
for directors and officers when they PLANS all feature an annual non- nancial Services organization, which q
are sued by any governmental entity cancellable policy. In addition, in is unaffiliated with Chase, is spon
such as the FDIC, 1RS, Treasury sured banks receive a 10% premium sor, administrator and distributor.
Customers can purchase the eight
discount bonus on renewal if there
Department, etc.
Banks also can qualify for GALE are no claims during the policy year. Vista Mutual Funds by opening a
The insurance is underwritten by Chase Investment Account. A mini- £
XI PLUS, which in addition to gov
ernmental entity coverage, extends certain underwriters, Lloyd’s, Lon mum initial investment of $2,500
additional legal expense protection don and is offered by NAS Insur per fund is required. They can use
to outside directors when they are ance Services, an excess/surplus the telephone to make additional
sued by borrowers, shareholders, lines insurance firm and Lloyd’s cor purchases or redemptions or trans
respondent. Coverage is available fer balances among funds. Chase #
depositors, employees, etc.
provides a consolidated monthly
statement of fund activities and
balances. Checkwriting is available
with the money market funds.
The Vista funds are no-load, so #
that investors do not pay commis
sions for the purchase or sale of
shares. Like other mutual funds,
Vista Fund shares are not bank obli
gations and are not FDIC-insured. #
How safe are secured loans? Only as safe as tomorrow’s property
Chase President Thomas G.
values. That’s why successful lenders across the country
Labrecque
said at the ABA conven
have looked to Insured Credit
____
tion in Dallas last month, “These
Services for default insurance
mutual funds are another example of
protection. Since 1954 nearly
Chase’s commitment to make the #
2,000 lenders have elected to
broadest
range of financial service
guarantee the safety of home
products available to our customers.
equity and property improve
We will continue to provide every
ment loans and secured revolving
appropriate product and service the
lines of credit with ICS default
law allows — while pressing for a €1
insurance protection. They’ve
revision of Glass-Steagall that will
found ICS to be the only security
permit all financial service institu
they could depend on.
tions to compete on an equal basis.”

IBAA O ffers New Legal Expense Plan

Have you ever wondered why
some secured loans are worthless?

Find out how ICS can provide
you with The Lender’s Edge.
Contact William F. Schumann,
President at 312/621-9400 today.
'

.....

...

Write or call to receive
your copy today!

INSURED CREDIT
SERVICES
-IN C .-

307 N. Michigan Ave., Chicago, IL 60601 • 312/621-9400

Northwestern
Banker, November, 1987

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

Mosler Selects President
A.M. (Steve) Marzano has been
elected president and chief operat
ing officer of Mosler Inc. Mr. Mar- #
zano, former Mosler senior vice
president assumes those responsi
bilities from R.F. Murphy who will
continue as the firm’s chairman and
chief executive officer in the Hamil- #
ton, Ohio headquarters.

NO MATTER
HOW YOU
LQOKAT IT..

No company, anywhere in the
United States, can do as much to
make your credit insurance
operations more profitable
and problem free
than North Central Life.
“America’s Number One Credit Insurance Service Organization’’

North Central Life Insurance Company
NORTH CENTRAL LIFE TOWER, 445 MINNESOTA STREET, BOX 64139, ST. PAUL, MN 55164

In Minnesota call 800-792-1030.
All other states 800-328-9117.
Protection all ways

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

Northwestern Banker, November, 1987

LaSalle National Announces
Officer Appointments
LaSalle National Bank of Chicago
recently announced several officer
a p p o in tm e n ts,
including the ap
p o in tm e n t of
Terence P. Bren
nan as head of
the bank’s muni
cipal bond de
partment.
Jo in in g L a
Salle’s treasury
group as senior
vice president,
Mr. Brennan, 58, has an extensive
investment banking background.
Most recently, Mr. Brennan was
with Prudential-Bache Securities in
Chicago for nine years, where he was
head of their Fixed Income Depart
ment. Mr. Brennan was also with
Bear Stearns & Co., Inc. for five
years.
Mr. Brennan was the head foot
ball coach at the University of Notre
Dame in the late 1950s. He was an
All-American player on Notre
Dame’s football team.
In addition, LaSalle also has an
nounced the following appoint
ments:
Deborah Grudzien, 37, to vice
president of metropolitan banking,
where she was previously an assis
tant vice president.
Jan Friedhofer Kohl, 29, to vice
president of international institu
tional marketing in the institutional

services division of the trust depart
ment. She joined LaSalle from The
Northern Trust Company.
Jose Santillan, 30, to vice presi
dent of the investment strategy and
research group, where he was pre
viously an assistant vice president.
LaSalle National Bank is a subsi
diary of Algemene Bank Nederland
N.V. and a member of its North
American banking network, the
ABN/LASALLE group.

Farm Progress Companies
Appoint a Tax Columnist
Trenna Grabowski has been ap
pointed publications tax columnist
by Farm Progress Companies. In ad
dition, she is editor of the firm’s
Farm Tax Saver monthly newslet
ter. This newsletter is widely read in
the farming community and pro
vides space for the logo imprint of
banks that mail it to their farm cus
tomers.
Trenna Grabowski was a natural
choice as tax editor, according to
Christopher Lynch, marketing man
ager for Farm Progress Companies,
headquartered in Lombard, 111. “She
is recognized as a top-notch ag con
sultant,” Mr. Lynch stated. She has
a successful CPA and ag consulting
firm in Mt. Vernon, 111., and she also
operates a 3,000 acre cash grain
operation with her husband.
Ms. Grabowski has translated her
skills and experience into extensive
writing and public speaking. She

Superior Performance Banking

was formerly a business editor for#
Farm Wife News and Agri-View
publications. Her most recent speak
ing engagement was at the Illinois
Bankers Association Ag Credit Con
ference.
#
The Farm Tax Saver four-page
monthly newsletter is mailed by a
number of banks to their farm
clients. It features concise updates
on a number of items of current in-#
terest to farm owners and managers,
with explanations of various impor
tant topical matters such as hedging
and options. Each issue also fea
tures “The Letter Box” in which a #
legal or technical question is ad
dressed by Ms. Grabowski as editor,
citing the needed references for re
solving the problem posed by the
letter writer.
•
Farm Progress Companies and
the Farm Tax Saver are located at
580 Waters Edge, Lombard, 111.
60148 (312) 953-1100.

Deluxe Check Net Rises
Deluxe Check Printers, Incor
porated, St. Paul, reports that sales
for the third quarter were $236,546,1
354, up 8.4% from $218,161,765 last
year, while net earnings were $42,
698,378 or 50 cents per share, up
42.8% compared to $29,895,357 o r(
35 cents per share a year ago. N et 1
earnings for the third quarter in
clude a gain of $7,650,605 or 9 cents
per share from the company’s sale of
its Data Card stock, according to
Harold V. Haverty, president and
CEO.
Sales for the first nine months of
1987 reached $702,517,072, up 9.3%
from $642,531,091 a year ago. Net ^
earnings for the period were $105,
873,957 or $1.24 per share up 21.7%
from last year’s $86,996,118, or
$ 1.02 per share. Earnings for the
nine-month period include a nonre- ^
curring gain of 9 cents per share w
from the sale of the Data Card in
vestment.

T hrough P r o fe ssio n a l C on su ltin g
-Ronald L. George, President
-David C. Melena, Executive V.P.
-R obert E. Neville, V.P.

________ ^ Midwest Management Consultants
9140 West Dodge Road, Suite 270
Northwestern
Banker, November, 1987

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

Omaha, Nebraska 68114 (402) 391-1344

Baker Joins Atlanta Bank
L.
Edward Baker has been ap
pointed senior vice president, net
work strategies, by First Nation
wide Network, Atlanta, Ga., a subsi- #
diary of First Nationwide Bank. Pre
viously, Mr. Baker headed the fran
chise and networking programs for
Norwest Corporation, Minneapolis,
through the financial institutions #
group.

Now Plus System* ATMs
. Will Be Among The Most Popular
Attractions In New Orleans.

New Orleans’ renowned French Quarter offers a unique experience for millions of tourists each year. Amidst this
old world charm and throughout New Orleans, visitors will soon be able to access PLUS SYSTEM Automated
Teller Machines (ATMs). Mr. Joseph V. Wilson III, executive vice president of First National Bank of Com
merce, was instrumental in bringing First NBC into the internationally shared PLUS SYSTEM ATM network.
“Our decision was driven by the exceptional leadership we saw within the PLUS
SYSTEM organization,” cited Mr. Wilson. “Other factors included the recent Visa
affiliation and the PLUS SYSTEM network’s strong geographic coverage. We wanted
to give our customers the high level of service and convenience they now have through
our tie with the GulfNet regional network, but on an international basis. The PLUS
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^ S ystem
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Isn’t it time your financial institution joined the leading ATM network as a
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PLUS SYSTEM member? For complete details on all the options available, call
ATM NETWORK
Ron Reed at Plus System, Inc., (303) 620-7318.

^■Plus

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Federal Reserve Bank of St. Louis

“I chose the bics Banking System
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if you w ant the best you w ant
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Address____________________________
C ity________________________________
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/ THE
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Federal Reserve Bank of St. Louis

•

Mergers and
Acquisitions
m

Management
Consulting
<»

Special Reading for
Directors, Management

Written especially for
T he N o r th w ester n B an k er

By DR. DOUGLAS V. AUSTIN
President and CEO
Douglas Austin &
Associates, Inc.
Toledo, Ohio
and
Professor
Department of Finance
College of Business Administration
The University of Toledo
Toledo, Ohio

How to Design the Plan
EFORE designing the merger/acquisition plan, it
B
is necessary to consider the financial services in® dustry environmental issues:

• Deregulation; • Customer sophistication; • Finan
cial performance under a new environment; • Techno
logical changes; and, • Regulatory uncertainties.
The issues facing commercial banks include:
• Ownership transfers; • Changed interests of share
holders; • Liquidity of investments; • Management
succession; and • Profitability problems.
Four Alternatives
There are four alternatives available to financial in
stitutions:
1. Do nothing;
2. Do something (maintain status quo);
3.
Do something (become an acquiree); and
4. Do something (be an acquiror).
The goal, regardless of choice, should be to maxi
mize returns to stockholders; but, be aware that there
are possible problems that could prevent this goal.
Of the four possible strategic planning approaches,
the “do nothing” approach and the “do something”
approaches all involve some type of action. The neces
sary actions include:
• A situation analysis, and
• Strategic planning (the strategic plan is the end
result of the situation analysis).
The situation analysis must include:

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

• how to design the plan
• how to structure it
• how to negotiate it
Editor's Note: Dr. Austin has prepared a special presenta
tion for our readers outlining the many components that go
into generating and executing a well-designed Merger and
Acquisition Plan. The process applies equally to community
banks that decide to join forces as it does to larger banks
making an acquisition. This presentation will benefit owner
ship and management of the bank being sold, as well as the
acquiring bank, for both sides need to be keenly aware of the
intricacies that make up a fair and ideal Merger and Acquisi
tion Plan.
Dr. Austin has segmented his presentation for our readers
into three parts for easier reading: How to Design the Plan,
Structuring the Transaction, and Negotiating the Deal. Part
I begins on this page. Parts II and III will be published in
the following two issues.

• An identification of your strengths, weaknesses,
opportunities, and threats; and,
• A solution of other “non-financial” questions.
“Maintain Status Quo”
Under the “do something” approach, it is necessary
to identify each of the three alternatives and the com
ponents in each alternative. The “maintain status
quo” approach includes the following steps:
1. Status quo balanced vs. shareholder interests;
2. Careful planning;
3. Consolidation of control;
4. Holding company formation; and
5. Adoption of anti-takeover provisions.
“Become an Acquiree”
The “become an acquisition candidate” approach in
cludes these steps:
1. Undertake a complete situation analysis;
2. Perform a valuation of bank holding company or
common stock;
3. Resolution of all management (control, issues
prior to starting “marketing” process.)
“Be an Acquiror”
In becoming an acquiror, it is necessary to have a de
fined plan of action which includes:
1. Written goals and objectives; and
2. A written acquisition policy.
Understand Phases of Acquisition
The interests of shareholders/management members
MERGERS AND ACQUISITIONS. . .
(Turn to page 42, please)
Northwestern Banker, November, 1987

Microcomputers and
Automation Issue

MJsrroRmmm
.....

By JAMES STAFFORD
Director Marketing Communications
Applied Communications, Inc.
Omaha, Nebr.

INANCIAL institutions are improving their plat
form profitability, productivity and customer ser
vice with PlatformPlus™, a new PC-based platform
automation software package recently introduced by
Applied Communications, Inc. (ACI) of Omaha, Nebr.
Developed by a former bank systems manager, Plat
formPlus is designed to help financial institutions
meet the sales challenges of today’s competitive mar
ketplace by improving the efficiency of their customer
service personnel in setting up new accounts, making
loans, and cross-selling other financial services.
Installed by Davenport Bank and Trust
Multitasking capabilities, efficient transaction pro
cessing and ease of use were key factors in Davenport
Bank and Trust Company’s recent purchase of 70 Plat
formPlus units. According to Richard Horst, senior
vice president and cashier of Davenport Bank and
Trust, PlatformPlus “was more adaptable to our cur
rent situation than the competition. We could build so
much of our existing files into the PlatformPlus sys
tem without customizing.”
CIF and Artificial Intelligence Capability
Platform Plus eliminates repetitive information
gathering and keystroking. With PlatformPlus, bank
personnel create a file by entering information while
talking to the prospective client. Because the system
uses a tightly integrated data base, the user is able to
call-up previously entered data from the system wher
ever it is required.
For example, all the information needed to create a
checking account, loan application or retirement ac
count is in the system and is automatically brought
forward and input into the correct fields on the new ac
count screen. Forms and applications are then automa
tically created, eliminating the tedious and error-prone
method of copying and recopying the same basic infor
mation. As a result of this new efficiency, customer
service personnel can concentrate on selling the bank’s
full line of financial services.
PlatformPlus utilizes artificial intelligence to assist
Northwestern Banker, November, 1987

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

•
•
•
•
•

Complete Customer Information File
Artificial Intelligence
Three Management Reports
Flexibility in Applications
Account Cross-Selling

the user in selecting the optimal product or service for
the customer. This feature provides the user with a
powerful selling tool and a means of providing expert
financial counselling. In addition, PlatformPlus en
sures consistency and accuracy of product presenta
tions among customer service personnel and between
multiple branch operations.
Three Management Reports
Unlike many less functional systems, PlatformPlus
allows user institutions to track platform performance
and productivity by generating three important man
agement reports:
1. Activity Report, a complete listing of all platform
activity by date, time and station;
2. Warehouse Report, a complete list of all customer
records saved for recall; and
3. Profile Report, a complete list of all customer re
cords stored by PlatformPlus.
Flexibility Throughout System
Another attractive feature of PlatformPlus is its
flexibility. The PlatformPlus host interface module
allows user institutions to link their platform automa
tion system to their host, with literally no modification
required of the host application software. In fact, Plat
formPlus can be interfaced to multiple host applications simultaneously . . . placing information contained
in multiple host computers or multiple host applica
tions on a single platform screen.
Innovative programming allows a bank to design
and tailor PlatformPlus screens around their particular products and services and quickly add new pro
ducts as they become available.
In addition, PlatformPlus allows financial institu
tions to use all existing forms and documents. Reformatting and production of new forms is eliminated,
savings hours of document set-up time and significant
production cost.
In addition to its flexibility and wide applicability,
PlatformPlus is extremely user-friendly. Window
menus allow the user to view menu options without ex
iting the information already on screen. Software
bridges permit the user to access up to five third-party
PLATFORM-PLUS. . .
(Turn to page 35, please)

•

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■

LEADERS of the ABA for 1987-88 are, left to right: Treas.—L.W. (Bill) Stolzer, chmn. & CEO,
Union Natl. B&T, Manhattan, Kan.; Chmn. Nom. Comm.—Mark W. Olson, pres. & CEO,
Security State, Fergus Falls, Minn.; Pres.—Charles H. Pistor, Jr., pres. & CEO, First RepublicBank, Dallas; Pres.-Elect—Thomas P. Rideout, vice chmn., First Union Natl, of North
Carolina, Charlotte, and Exec. V.P.—Donald G. Ogilvie, Washington, D.C.

“Kill the Moratorium’’ Voiced Often and
Loud at ABA’s 113th Annual Convention
By BEN HALLER, JR.
Publisher
LTHOUGH the official theme
A
for the 113th Annual Conven
tion of the American Bankers Asso
ciation in Dallas October 17-21 was
“America’s Bankers: Banking on
the Future,” ABA’s leaders and
members narrowed the focus to a
sh o rter-ran g e tim e fram e by
hammering away during the conven
tion at the slogan, “Kill the Mora
torium — Let Banks Compete!”
Banners proclaimed the message at
every turn, and special buttons bear
ing the message were pinned to the
6,500 members and spouses in atten
dance, urging that the moratorium
on bank powers not be allowed to be
extended by Congress next March 1.
Those members of Congress who
addressed the convention assured
bankers that the moratorium, voted
this year as part of the 1987 Bank
ing Act, would be lifted and that
Congress would definitely take a
stand on expanded powers to allow
commercial banks to compete with
newcomer non-banks in the financial
marketplace.
Leading the charge was newlyelected ABA President Charles H.
Pistor, Jr., chairman and CEO of
Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

First RepublicBank, Dallas, and the
man he succeeded as ABA presi
dent, Mark W. Olson, president and
CEO, Security State Bank of Fergus
Falls, Minn. They are pictured
above with the other officers who
will serve ABA members during the
1987-88 year.
The impact of the “Black Mon
day” stock market precipitous
plunge of 500 points hit the conven
tion during the opening general ses
sion on Monday, October 19, like a
ton of bricks. President Pistor had
prepared his acceptance address
well in advance and was prophetic
when he stated, “Those of us who at
tended the International Monetary
Conference in Hamburg last June
were gripped by the comments of
Dennis Weather stone of Morgan
Guaranty. He discussed the 24-hour
nature of global trading, the fact
that capital now moves around the
globe at electronic speed and the
concern for developing safeguards
over the risks inherent in such a sys
tem.” His words were aimed pri
marily at the safety of such trading,
apparently, but they also proved
how the volatility of the New York
Stock Exchange incites panic
around the globe. (Mr. Pistor’s re
marks dealing with ABA’s efforts to

“Kill the Moratorium” and its efforts to expand banking powers
were summarized in the October 26
issue of our companion Weekly
Newsletter.)
In his President’s Address to the
convention, Mr. Olson referred to
“the limitation of the ability of U.S.
banks to compete as broadly as can
banks in other parts of the world. At
the opposite end of the bank-size
spectrum, it is increasingly clear
that no bank in this country is small
enough to be immune to the compe
titive challenges from outside the
banking industry — most notably
the securities industry.” He said
bankers and bank customers alike
are aware of this competition and its
inequity. “The most important shift
in perception, however, has been
within our industry. Suddenly, you
and I, and our colleagues across the
country, have become willing to
throw ourselves into the political
process — and to bring our employees, directors and stockholders
along with us. This has never hap
pened before.”
Mr. Olson referred to the more
than 10,000 individual calls, letters
and contacts generated with Con
gress last spring and said the cur
rent effort to “Kill the Moratorium”
has been made possible through the
joint efforts of the ABA, Independent Bankers Association of Ameri
ca, Consumer Bankers Association
of America, the Bank Capital Mar
kets Association, the Reserve City
Bankers Association and the Association of Bank Holding Companies.
These six groups, he pointed out,
have mounted an all-out attack by a
unified response with Congress that
is already producing results.
Mr. Olson also reviewed the great
success met by ABA’s Blanket
Bond and D&O insurance coverage
initiated this past year as an ABA
service to members. He said it has
produced more than $23 million in
premium dollars to date for cover
age to more than 800 banks.
Thomas P. Rideout, who served
the past two years as ABA trea
surer, gave a brief address as the
ABA president-elect for 1987-88.
Mr. Rideout is vice chairman of
First Union National Bank at Charlotte, N.C. His move up to the ABA
presidency will create another
unique footnote in ABA history.
When Mr. Rideout assumes the
presidency at the 1988 convention in
Honolulu, it will be the first time

•

^
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Northwestern Banker, November, 1987

16
LASALLE Natl, of Chicago hosted more than 300 bankers and spouses at
South Fork ranch, site for filming TV’s hit show Dallas. In photo at left,
greeting guests in front of the famous ranch home are these LaSalle hosts
(I. to r.): John Lynch, sr. v.p.; Peter McGuire, v.p. & head of corr. bk. dept.,
and Ellen and Bob Wilmouth, chmn. RIGHT—The reception spread around
the mansion’s expansive grounds. Pictured from across swimming pool at
back of house are: Ed Arseneault, pres., Soy Capital B&T, Decatur, III., and
his wife, Dorothy; Evon and Del Rogers, v.p., LaSalle Natl., and Joanne and
Scott Fetner, pres. & CEO, Natl. Bank of Waterloo, la.

that two officers from the same
bank have been elected to the high
est post in ABA in less than a de
cade—perhaps the first time ever
that two from the same bank have
served in that capacity. Earlier, C.C.
Hope, Jr., now a director of FDIC,
was elected president of the ABA
for 1979-80 while he was still active
as vice chairman of the First Union
National. When Mr. Rideout began
his work on ABA committees he
was with another banking organiza
tion in Atlanta. When it was pur
chased a couple of years ago by First
Union he was eventually moved to
Charlotte headquarters to become a
vice chairman.
Mr. Rideout gave a brief report on
his chairmanship of the Future Is
sues Task Force. A report on the
issues developed has been sent to
each member bank.
ABA Executive Donald G. Ogilvie also centered his remarks on the
“Kill the M oratorium” slogan.
“Your ABA leadership has set two
urgent goals,” he stated. “First,
make certain Congress ends the
moratorium on March 1. Second, get
Congress moving on new products
and services legislation before the
Presidential elections.” He said a
three-part strategy developed at
ABA includes having the staff work
nights and weekends until March 1;
activate alliance between the ABA
Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

and the state associations, and “The
most important leg of that threepart strategy is you — the bankers
of America. We’ve got to mobilize
every banker, every bank employee,
every bank director, every share
holder, and even bank customers, to
stop this moratorium. The effort
must be your effort.”
To aid the process, ABA made
sample paragraphs for letters avail
able to convention attendees so they
could have the letter typed at a spe
cial location, then sign it and have it
mailed that day.
In addition to electing the officers
pictured with this article, delegates
also elected six members to threeyear terms on the ABA board of di
rectors.
The newly-elected board members
are David A. Funk, executive vice
president of Pioneer Citizens Bank
of Nevada, Reno; Patrick J. Shana
han Jr., president and chief execu
tive officer of First Bank and Trust
Co., Providence, R.I.; Thomas L.
Perko, president and chief operating
officer of Washington Trust Bank,
Spokane, Wash.; William W. Quigg,
president of The Central Trust Bank
of Jefferson City, Mo.; George F.
Moody, president and chief operat
ing officer of Security Pacific Corp.,
Los Angeles; and Richard L.
Thomas, president of The First Na
tional Bank of Chicago.

The 23-member board has primary responsibility for administering the affairs of the association.
Also serving on the board will be
ABA’s five-member executive com
mittee (pictured on the cover).
Comptroller of the Currency
Robert L. Clarke also urged bankers
to leave complacency behind and
seek every expanded power they can
get, whether their bank is large or
small. He said banks, due to unfet
tered competition from abroad and
from domestic non-chartered finan
cial institutions, are seeing much of
banking’s basic business drained
away. “To me,” he stressed, “these
factors argue in favor of doing all
that we can to assure a strong and
vigorous banking system, not be
cause banks are unique, but because
banks are important.” Later, he
added, “Bankers simply cannot
create or maintain a strong market
presence with the regulatory restric
tions you operate under today. Rarely have there been conditions more
favorable for action.” He then cited
that the chairman of the Fed and
FDIC, as well as himself, “are all
strongly in favor of greater competitive opportunities for banks. The
Administration has been working in
that direction for years. Senate
Banking Committee Chairman
Proxmire is talking about repeal of
the Glass-Steagall A ct...It’s up to

_
^

^
9

Piper Jaffray and
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Common Stock

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Federal Reserve Bank of St. Louis

9/87-0997

Northwestern Banker, November, 1987

FIRST Wisconsin Natl., Milwaukee hosted one of many receptions. From left are: Don Kramp, sr. v.p. & head of corr. bk. div. at First Wis
consin, and his wife, Phyllis; Harv Keller, v.p. at host bank, and Bev; Richard Klug, chmn., F&M Bank, Menomonee Falls, Wis., his daughter,
Jennifer, and his wife, Arleen; Jess Levin, pres., Bank of Elmwood, and Ellen; Tom Schiefelbein, pres., Security Natl., Durand, and Mary
Jean; Roger Fitzsimonds, pres., First Wisconsin Corp., and Lee, and Bonny and John Becker, pres., host bank.

you, working together, to make the
case for yourselves, to take advan
tage of these conditions in Washing
ton, if you expect to avoid the kind

of side trip the railroads took — a
trip to nowhere. No one else is going
to do it for you. You must do it
yourselves.”

In concluding, Mr. Clarke said,
ABA REPORT.. .
(Turn to page 35, please)

LEFT—Greeting guests at the Illinois Bankers Assn, reception were Bill Hocter (left), exec, v.p., and June, with Sandy and Jack Emmons,
pres. IBA and pres. & CEO, Security B&T, Mt. Carmel. RIGHT—Some of the lowans who attended the convention are pictured in Exhibit
Hall (I. to r.): IBA Pres. Clair Lensing, pres. & CEO, Farmers State, Marion, and Mary; Neil Milner, IBA exec, v.p., and J.C.; Alan Tubbs, exec,
v.p., Maquoketa State, and pres. & CEO, First Central State, DeWitt, his son, Abe, and Myrna.
O

PICTURED at United Bank of Missouri, Kansas City breakfast are I. to r.: Clare Genovese, United Missouri; Bebe and Crosby Kemper,
chmn., United Missouri, and Mary and Jim Dierberg, pres., First Banks, Inc., Manchester, Mo. RIGHT—Greeting guests at traditional
reception hosted by Manufacturers B&T, New York, were John McGillicuddy, chmn. & CEO, and Donald G. McCouch, sector exec. v.p.
Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

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Senior Spirit Kick-off

Your senior market:
An unmined
diamond field

by Peggy Shea

TP he Senior Spirit Program got off to
a big start with a kick-off
at the Hyatt Regency Hotel in down
town Minneapolis on March 26,1987.
Over 500 seniors spent the morning
enjoying coffee, rolls, and an inspira
tional talk by Janie Jasin.
The morning started o ff with a
welcome by Charlyne Hovi, Assistant
Vice President, and Marcia Hanson,
Vice President o f Consumer Services.
Pam Gudmastad, Senior Market Team
Manager, introduced the Senior Team
Consumer Bankers to familiarize the
program members with the bankers who
will work with them regularly. Pam also
introduced the Senior Spirit Advisory
Council, which will assist in the further
continued on page 3

Over 500 seniors enjoyed the Senior Spirit Program k ic k -o ff March 26 at the
H yatt Regency Hotel, Minneapolis.

New “Senior Spirit” program offers savings,
excitement for bank customers
Individuals 60 years or older can now
take advantage o f a wide range of
benefits through Marquette Bank Min
neapolis’ new “ Senior Spirit” program.
Senior Spirit, which was named by
Mary Oliverius, receptionist in the Main
Bank lobby, provides its members with
free or discounted products and services
from Marquette Bank Minneapolis.
Senior Spirit also includes entertainment
and travel opportunities, free informa
tional seminars and a newsletter offering
a wide range of valuable financial infor-

mation. Annual membership fee for the
program, available exlusively at Mar
quette Bank Minneapolis’ three
downtown locations, is just $5.
The benefits of Senior Spirit are
many. They include free, interestearning checking, no-fee Citicorp
traveler’s checks, free money orders and
cashier’s checks, interest rate discounts
on installment loans, free Pay-by-Phone
service, guaranteed direct deposit of
Social Security checks and 50 percent
Mary Oliverius

group of persons over age 50, $7 trillion dollars, or
nearly 70% of the net worth of U.S. households, is con
trolled. This financial market, your senior market, is
definitely an unmined diamond field ready to be ex
plored.
At first glance, your senior market may appear easy
to reach. But consider what a diverse group it really is:
rich or not-so-rich, over 50 or over 65, retired or still
working, or perhaps even pursuing a second career.
Your marketing efforts need to reach the expanse of
this market. The average age for retirement has
dropped to 62, but many in your senior market are still
working and at the height of their earning power.
“Senior Banking Clubs” are beginning to rise in
popularity as one vehicle for reaching that senior mar
ket. Through these clubs, a variety of membership
benefits are offered, including a number of free bank
ing services combined with club activities such as
travel opportunities, informational seminars and social
functions. The primary idea behind the clubs is to show
your senior market that their business is important to
you and that your bank wants to assist them in this
stage of their lives.
“Since the start of our senior club, one and a half
years ago, we’ve received in excess of $2 million dollars
in initial new deposits,” comments Monroe Stenerson
of Richfield Bank & Trust Company, Minneapolis,
Minn. “The emphasis of our ‘Golden Opportunity
Northwestern Banker, November, 1987

By JENNY E. GRILL
Priority Publications
Minnetonka, Minn.

continued on page 2

NE-THIRD of the United States’ population be
longs to “mature” households, representing ap
O
proximately 82 million consumers. And within this

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Federal Reserve Bank of St. Louis

Written especially for
T he N o rthw estern B ank er

Club’ is to give recognition to our 55 and better customers. We want them to know that they are very impor
tant to us and that we want to assist them in the pre
retirement and retirement stages of life.”
Zapp National Bank of St. Cloud, Minn., recently
started a senior group. Its ‘Golden Circle Account’
membership is growing at the rate of 100 signups a
week. According to Marcia Puls, marketing officer,
“We researched the idea of a senior club first. Our
bank has been offering free movies to the seniors of St.
Cloud for years, complete with refreshments served by
bank personnel. We discovered that an active social
life is very important to this age group. They want to
be involved, active and learning.”
Both of these banks offer their senior club free bank
ing services, seminars and discount travel opportunities. Some banking services you may consider offering
to a senior club membership could include: free check
ing, free cash card, free safe deposit box, free traveler’s
checks, free cashier’s checks, free notary service, free
money orders, special travel benefits, free member
newsletter, free financial planning, free tax consulta
tion, and a yearly seminar schedule.
Offering seminars to seniors throughout the year
serves two purposes—providing valuable financial inFor more inform ation on P riority Publications
new sletters, call 1-800-328-8322, ext. 332, or
write P riority Publications, 10601 Red Circle
Drive, M innetonka, MN 55343.

•

^ formation and furnishing a social setting for members
of the group to meet each other. Seminar topics range
from estate planning, investment advice, retirement
goals, banking services such as your trust department
and savings vehicles available, all the way to health
^ concerns, Medicare, nutrition and even fashion. Con
sulting your members on topics that are important to
them is an excellent way to set up your schedule.
Seminars can be offered quarterly, bi-monthly or
monthly, whatever your needs deem necessary.
(|
Travel opportunities may range from major trips to
Europe or the Orient, to local or regional day outings
of interest to your group. Some clubs offer Christmas
parties, summer barbecues, ice cream socials and even
contests. One bank recently sponsored a “toy and
0 doll” contest where toys and dolls were made available
through the bank for senior members to dress or paint.
Prizes were awarded and all dolls and toys were do
nated to local children for Christmas. The possibilities
for group activities are limitless.
f ) For membership in a banking senior club there are
generally two requirements: a minimum account
balance and a minimum age requirement. Age limits
can vary from “over 50” years to 55 to 60. Minimum
account balances have an even greater spread. Here’s
• an idea of what some banks are doing: minimum
ranges from $5,000 to $7,500 to $10,000. Monies may
be spread between checking, savings, savings certifi
cates, and money market accounts. One bank even of
fers its club to any senior who simply opens a regular
• passbook savings account, no specific minimum re
quired.
Once the limits of your club have been set, benefits
offered, and programs implemented, there is a major
need to keep the momentum going, primarily through
• communication with the group. A senior newsletter is
an ideal communication tool for keeping your group in
formed and functioning. It can serve as a calendar list
ing upcoming events and details. It can be an informa
tion provider bringing your seniors valuable tips on
• estate planning, investments, health, etc. A newsletter
can be an excellent sales tool for the bank, too—cross
selling bank services and products.
Initially, a custom financial newsletter can be used
to obtain new business and senior accounts. Mailing
• newsletter samples to non-customers, such as target
ing a senior high-rise development near your bank, will
generate new business. Or, use the newsletter for “min
ing” your current customer files. Research shows that
most people have 2.5 bank accounts. By keeping in

m ethod of reaching your seniors in the early stages of
your club, perhaps before you are ready to comm it to a

full senior newsletter.
Although not specifically labeled a “senior club,” at
least 90% of the membership in Republic Bank Grand
Prairie’s Roadrunner Club is over 50. Republic Bank of
Grand Prairie, Tex., uses the last page of its Priority
Publications’ newsletter for club news. “There is no
doubt that our club has increased bank business,” says
Joan Longorio, coordinator of the club. “We’ve even
had some new customers deposit our $ 10,000 mini
mum ju s t to join the club and get our new sletter, The
Roadrunner News. ”

So, if you’re ready to break new marketing ground
for your bank, check out your senior market first.
You’ll be looking at a “mature” diamond field, ready
to be mined.
□

that evaluates the banks’ policies
and operational and accounting pro
cedures. Examples of items that are
Banks participating in the Ameri reviewed are internal auditing, loan
can Bankers Association-sponsored review policies and security devices
insurance program now have a new and procedures.
Banks that meet SAFE’S stan
way to save money on their
premiums and reduce risk in their dards will receive a 5 percent dis
count on their D&O and blanket
bank.
Progressive Companies, the pri bond insurance premiums.
In addition, the ABA insurance
mary carrier for the program, has in
troduced SAFE (self assessment of program will soon add trust errors
financial institution loss exposure), and omissions coverage to the list of
a program which calls for the banks insurance products available to
to complete a self-assessment form member banks.

Banks May Cut Premiums in
ABA’s Insurance Program

touch with your customers, you have the chance to in
crease your account base, position your bank as a
leader in the financial field, and maintain positive
name recognition among your clients.
According to Todd Jones of First National Bank,
Conway, Ark., “A newsletter is a valuable took for
bringing our senior club members useful and timely in
formation on subjects that are important to them. Ar
ticles on financial matters, health and Medicare are
well-received, plus our newsletter allows us to custo
mize for updating members on club activities and semi
nars.”
Our Priority Publications newsletter service has pio
neered the use of a custom newsletter for banking
senior clubs. Our financial writing staff researches
topics of interest to seniors in a wide variety of sub
jects. Articles range from retirement, (“ Is early re
tirement for you?” and “ How to retire in style”), to
estate planning, (“Estate planning and your life insur
ance,” “Gift and estate tax notes,” and “Choosing an
executor for your estate”). A regular health watch
column features such topics as: “Monitoring sodium
intake,” “Pay less for prescription drugs,” and “Aging
myths and facts.” A recent article, “Filling in the
Medigaps,” analyzed the holes in medicare coverage.
Not only does Priority offer its banker customers a
chance to customize their senior letters, but we’ve also
originated the idea of a “combination” newsletter.
Ideally suited for banks just beginning a senior club, a
combination newsletter gives you the flexibility of
combining articles aimed at your regular checking ac
count customer base, together with a page strictly
written for the senior club members. It is an excellent

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Federal Reserve Bank of St. Louis

Banks that purchase D&O cover
age and bankers blanket bond cover
age through the ABA-sponsored
program will be able to obtain up to
$1 million of the trust E&O cover
age. The insurance is designed to
protect banks from losses resulting
from “wrongful acts” committed in
the operation of a trust department.
Policies will be issued by the Pro
gressive Companies, Beechwood,
Ohio. Progressive will also under
write the coverage and service the
policies.
Northwestern Banker, November, 1987

financial services banker for Aetna ^
Bank.
*

IBA Board Supports HR 3030, The board urges IBA member banks
Opposes Moratorium
to contact their representatives and
At its September 30 meeting, the
Illinois Bankers Association Board
of Directors voted unanimously that
ending the moratorium on new
powers for banks and obtaining fed
eral and state authority to provide
new products and services should be
the IBA’s top goals for the year.
The vote was also unanimous in
support of Title III of H.R. 3030
regarding an ag secondary market.

voice support of the legislation.
Discussion at the meeting empha
sized the need for bankers to push
for broadening of bank powers, re
gardless of the specific plans of their
banks to expand their services. Fu
ture opportunities for expansion of
products and services are crucial if
banks are to remain competitive in
the financial services industry, the
IBA Board felt.
change are: Lynda Vieha, vice presi
dent, 122 Private Banking Center;
Carole Ecob, assistant vice presi
dent, real estate; Mary Overton, as
sistant vice president, drive-in facili
ty; Anito Torreon, assistant vice
president, asset based lending, and
Michelle Uhler, assistant vice presi
dent, real estate.
* * *

David M. Wattenberg has been
named president of Affiliated Bank/
DuPage. He has
been with the
Affiliated Group
since 1984, most
recently as se
nior vice presi
dent of Affili
ated Bank/MorKathleen T. Hardy has joined The ton Grove. He
Exchange National Bank as vice succeeds Leslie
president in the financial institu J. Gomora, who
tions division. She previously served has left the bank D. WATTENBERG
as vice president at Cole Taylor to pursue other business interests.
Bank/Drovers, and prior to that was
with the LaSalle National Bank.
At Michigan Avenue National
E. Joan Allegretti has joined the
bank as operations officer in the Bank, Robert R. Lopardo has been
item processing department. Prior appointed vice president and senior
to coming to The Exchange, she trust officer. He joins the bank from
served as manager of clearing opera First United Trust Company (for
tions at The Chicago Clearing House merly Oak Park Trust), where he
Association, and previous to that, as served as vice president and senior
personnel/project adm inistrator administrator.
Cheri L. Pearcy has been ap
with Marsh & McLennan Group
pointed personal banking officer at
Associates.
Other promotions at The Ex the bank. She previously served as a
Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

The Chicago Chapter of Robert
Morris Associates has recently an
nounced the election of chapter officers for the 1987-88 year. They are:
President—John T. Gerlits, Jr., vice
president, American National Bank
of Chicago; First Vice President—
Rob Lincoln, senior vice president,
The Bank and Trust Company of Ar
lington Heights; Second Vice Presi
dent—Dennis Jones, senior vice
president, USAmeribanc/Chicago;
Treasurer—James R. Flahaven, vice
president, Northern Trust/Naperville; Secretary—Dome M. Furco,
assistant vice president, First Na
tional Bank of Highland Park.
* *

•

Two affiliate banks of Financial
Shares Corporation have announced
the appointment of new directors.
Joseph E. Valenti, Jr. and Law- #
rence B. Aaron have been appointed
to the board at Northbrook Trust
and Savings Bank. Mr. Valenti is
president of Valenti Builders, Inc. in
Northfield. Mr. Aaron is president •
of Great American Finance, a Chi
cago-based consumer finance com
pany.
John K. Prescott has been ap
pointed a director at Bank of West- •
mont. He is a co-owner of Advance
Business Corp. in Westmont.
* * *
Cole Taylor Bank/Drovers and
Cole Taylor Bank/Skokie have an
nounced a new type of CD account.
CD Plus is FDIC-insured and fea
tures an adjustable interest rate, a
minimum return on investment of
6%, compounded daily, and an addi
tional deposit option. Rates on the
account can change once a month
and pay 1% more than the average
monthly 91-day Treasury Bill index.
Minimum investment on the 12month account is $5000.
* * *
Several Cole Taylor Banks have
reached a cooperative agreement
with the State of Illinois to provide
financial relief for victims of recent
floods in Chicago.
Qualified home owners can borrow money for repairs at 8.9% inter
est, with at least five years to pay.
The state has initially placed $2 mil
lion in each bank—Skokie, Main in
Wheeling and Yorktown in Lornbard—to fund the loans.

James Gowan to Retire
James T. Gowan, president of the
First National Bank of Chaska, will
retire on December 31, according to
an announcement by Daniel G.
Klein, president of Klein Bancorporation, Inc., of which the Chaska
bank is a member.

J.T. GOWAN

J. BURZINSKI

Mr. Gowan will be succeeded by
Jeffrey F. Burzinski, who has been
serving as senior vice president at
the Norwest Bank of LaCrosse/
Winona. Mr. Burzinski joined the
bank on September 21.
“Jim Gowan has headed our
Chaska bank for over six years and
has done an excellent jo b /’ said Mr.
Klein. “Now, he has indicated he
wishes to pursue certain personal
goals and we respect that; however,
we will miss him. For the next three
months, he will remain an officer of
the bank to provide a smooth transtion.”
Mr. Burzinski has a strong educa
tional background in business ad
ministration, according to Mr.
Klein, and 11 years of experience in
various capacities of banking. He
has completed a number of profes
sional courses in credit analysis,
commercial lending and corporate fi
nance. From February, 1984, to the
present, he has been responsible for
all middle market commercial bank
ing for the LaCrosse, Wis., and
Winona, Minn., affiliates of the Nor
west Bancorporation, Minneapolis.
Mr. Gowan is a 1949 graduate of
the College of St. Thomas in his
native St. Paul. After several years

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Federal Reserve Bank of St. Louis

of work with two prominent busi
ness firms in St. Paul, he joined
First State Bank there in 1955. He
transferred in 1963 to FBS’ largest
bank in the city, The First National
Bank of Saint Paul. He worked in
the correspondent bank division and
later was its vice president and man
ager until retiring from the bank in
1981, at which time he joined First
National Bank of Chaska as presi
dent.
Mr. Gowan was president of the
Minnesota Bankers Association in
1979-80. He served on the ABA
Council from 1980-82 and was on the
ABA board of directors in 1982-83
as the representative of Region V.

Named in Bloomington
George E. Ruth has been named
senior vice president of MetroBank
Financial Ser
vices,
In c .,
B lo o m in g to n .
He will have re
sponsibility for
credit adminis
tration for all of
the MetroBanks
and affiliates.
Mr. Ruth spent
four years as
G.RUTH
vice president in
charge of commercial lending at Sig
nal Bank. He began his banking
career with First Banks and served
18 years at several First Bank loca
tions.

Greenwald Bank Fails
The FDIC has approved the
transfer of insured deposits and ful
ly secured or preferred deposits of
the State Bank of Greenwald to
Rural American Bank of Greenwald,
a new, state-chartered bank. The
failed bank’s two offices reopened on
October 5 as Rural American Bank
of Greenwald.
The transfer was arranged be
cause of an undeterminable amount
of contingent liabilities in the failed

bank.
State Bank of Greenwald, with
total assets of $18.7 million, was
closed on October 2 and the FDIC
was named receiver. Administration
of the insured deposits transferred
to the new bank will be funded by an
equivalent cash payment from the
FDIC. The new bank is paying the
FDIC a premium of $103,000 for the
right to receive the deposits, and
will purchase other assets of the
failed bank for $11.7 million.

Dilworth Bank Fails
The FDIC has approved the as
sumption of the deposit liabilities of
Clay County State Bank, Dilworth
by Northwestern State Bank, Ulen.
Clay County State Bank, with total
assets of about $10.5 million, was
closed on October 1 and the FDIC
was named receiver. The bank’s two
offices reopened October 2 as
branches of Northwestern State
Bank.
Northwestern State Bank will
assume about $ 10.2 million in de
posits and will purchase $10.4 mil
lion of the failed bank’s assets at a
discount of $980,000. The FDIC will
retain assets of the failed bank with
a book value about approximately
$94,000.
The two branches will be man
aged by James Anderson, president
of Northwestern State Bank.

Elected in Stillwater
Ronald G. Wenzel has resigned as
president of Oak Park Bank, Still
water. David A. Shern was elected
president and chief executive officer.
He has nearly 40 years of banking
experience and from 1983 to 1985
was Minnesota Deputy Commis
sioner of Commerce in charge of Fi
nancial Institutions.

Named in St. Cloud
Mark S. Altringer has been
named an assistant vice president of
commercial lend
ing and business
development at
the St. Cloud
National Bank &
Trust Company.
He previously
served as a com
mercial lending
officer for the
Norwest Bank in
Fargo, N. Dak.,
where he has been employed since
1984.
Northwestern Banker, November, 1987

A Very Shrewd,
Conservative B od y...”
Minnesota Bankers Association
Kicks Off Its Centennial

MBA OFFICERS arrive by horse and buggy at the site of the
former Merchants Hotel, St. Paul, to kick off the centennial of the
Association.

u A VERY shrewd, conservative body of men assembled in parlor No. 2 at the Merchants Hotel
this morning...The principal topic of discussion was
the law passed by the last legislature, prohibiting
private banks from using any corporate name so long
as such bank remained unincorporated.” So noted the
September 30, 1887 St. Paul Dispatch. And, in fact,
this body did more than assemble; the next day’s paper
bore the headline: “The Bankers Form a Permanent
Organization.”
Thus began the hundred year history of the Minne
sota Bankers Association, formally organized into a
statewide trade association on January 10, 1889. The
Merchants Hotel is gone now, but the MBA chose its
site at the northeast corner of Kellogg and Jackson
Street in St. Paul as the spot to kick off the centennial
celebrations.
Five men in appropriately conservative garb of the
1880s rode a horse-drawn carriage down Jackson
Street to the site. Donning cutaway suits, vests, top
hats and spats were MBA President James R. Jorstad
of the Citizens State Bank, Hayfield; First Vice Presi
dent A. William Sands of the Western Bank, St. Paul;
Second Vice President James H. Hearon, III of Na
tional City Bank, Minneapolis; Treasurer R. James
Gesell of the Cherokee State Bank, St. Paul and the
MBA’s Executive Vice President Truman L. Jeffers.
St. Paul Mayor George Latimer welcomed the five
MBA officers as they stepped off the carriage in front
of a photo mural of the Merchants Hotel. After a brief
re-enactment of the discussion during the original
bankers’ meeting on Sept. 30, 1887, Mr. Jorstad anNorthwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

nounced the appointment of a special MBA Centennial
Committee. The committee will be co-chaired by Gene
Beito, president of the Northern State Bank of Thief
River Falls, and Pete Allen, president of the First Na
tional Bank of Milaca.
The Minnesota Bankers Association will be organiz
ing a Centennial Celebration Year of events, which will
conclude at their state convention to be held in St. Paul
on June 5 and 6, 1989.
Mr. Jorstad commented, “During the past one hun
dred years, the world has witnessed more advance
ments in technology, industry, communications, trans
portation and medical science than what has collective
ly occurred since the beginning of time. And yet, one
hundred years later, banking still survives. More than
just surviving, banking in Minnesota and across
America has provided much of the ‘financial fuel’ to
make these dramatic achievements possible.”
Reflecting on the significance of the centennial ob
servation, he concluded, “While Minnesota bankers
work daily to compete in today’s marketplace, it is im
portant for all of us to remember and interpret our
past—the history of the Minnesota Bankers Associa
tion and that of our great industry. The events and
people of our past may help us better understand our
present and provide clues to our future.”
Apt words for the leader of this “very shrewd, con
servative body,” the Minnesota Bankers Association.

□

POSED next to old photo and on the original site of the former
Merchants Hotel in downtown St. Paul, MN are (left to right): MBA
Second Vice President James H. Hearon, III of National City Bank,
Minneapolis; MBA First Vice President A. William Sands of West
ern Bank, St. Paul; MBA Treasurer R. James Gesell of Cherokee
State Bank, St. Paul; St. Paul Mayor George Latimer; MBA Execu
tive Vice President Truman L. Jeffers and MBA President James
R. Jorstad of the Citizens State Bank, Hayfield.

manager, and Barbara Novak, man visory Service will be offered at no
extra charge to companies that hire
ager of administrative services.
Marquette as trustee for their em
* * *
ployee benefit plans.
Frederick P. Phillips has been
named market manager of the Norwest Center Holds
southeast consumer market for Topping Out Ceremony
metropolitan area First Banks. He
The raising of the topmost steel
will be responsible for consumer
beam
to the 57th floor of the Nor
banking activities at First Bank
west
Center
was celebrated on Octo
Grand, First Bank Lake and First
#
* * *
Bank Security. He succeeds David ber 22 in Minneapolis. The whitepainted beam was displayed for
Robert H. Weisman has been A. Zelinsky, who has been named in three days on Nicollet Mall, and the
named senior managing director and vestment product manager, product public was invited to autograph the
management and marketing sup
head of mergers
port. Mr. Phillips has been with FBS beam in connection with the 20th an
and acquisitions
niversary of the Mall.
since 1982.
for the FBS mer
At noon on the 22nd, the beam
* * *
chant banking
was raised in view of several video
group. He pre
Marquette-Holm Insurance Agen cameras, which relayed the action to
viously was se
cies has changed its name to Mar a six by seven foot videowall on
nior vice presi
q u e tte I n s u r
Marquette Avenue in front of the
d en t for cor
ance Group. The
building. When the beam was bolted
porate finance at
name change re
into position, thousands of balloons
Dain Bosworth
flects the recent
were released.
In c o rp o ra te d .
merger of Mar
The building is scheduled to be
R.H. WEISMAN
Before joining
q u e tte -H o lm
completed in July, 1988.
Dain Bosworth, he was executive with the Nevin
vice president and director of Inter Group, Inc., a
continental Energy Corporation in local provider of
Denver.
life insurance
* * *
and related pro
J. NEVIN
ducts.
Norwest Corporation, Minneapo
Jeffrey R. Nevin has been named
lis, has announced that it is expand president and CEO of the company,
ing its stock transfer services, add- and William Fee, CPCU, has been
® ing mutual fund servicing, and mov named executive vice president. Mr.
ing the operations from Minneapolis Nevin is former president of the
to South St. Paul. An open house to Nevin Group, Inc. Mr. Fee most re
celebrate the expansion was held at cently was president of Risk Plan
the new facilities, in the Norwest ners, Inc.
® Bank South St. Paul building, on
* * *
October 1.
M arquette Bank Minneapolis,
Virginia M. Terry, vice president
and manager of Norwest Corporate N.A., has introduced “ Investment
Agency, said several professionals Manager Advisory Service,” a new
® from outside organizations and from service designed to help employee
within Norwest have been assigned benefit plan sponsors receive better
key positions in the expanded agen management for their employees’ re THIS FRESHLY painted steel beam, weigh
ing 2,850 pounds, is ready to be signed by
cy. They include Beatrice L. Huston, tirement funds.
the public in preparation for ceremonies
Under the direction of Andrew celebrating the completion of the frame
_ stock transfer manager; Rodney
® Johnson, mutual fund servicing Freeman, trust sales officer, the Ad- work of the Norwest Center.
O

Norwest Corporation has re
ported net income of $48.6 million
for the third quarter ended Septem
ber 30, 1987, the highest quarterly
earning in Norwest’s history. In# come was up 50.4% over the $32.3
million earned in the third quarter of
1986. Net income per common share
was $1.51, compared with $.97 in
1986.

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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1987

Minnesota News
26
Donna M. DeMatteo has joined
Norwest Corporation has named
John E. Thomas vice president and the staff of National City Bank of
Minneapolis as
a ssista n t gen
executive and
eral counsel in
p ro fe s s io n a l
charge of legal
banking officer.
affairs for its
She has seven
banking group, a
years experience
new position. He
with the Connec
was senior vice
ticut Bank and
president, gen
Trust Co., Green
eral counsel and
w ich, C onn.,
secretary of ITT
most recently as
C onsum er F i
J.E. THOMAS
branch manager D.M. DeMATTEO
nancial Corp.,
Minneapolis. He was with ITT since and assistant treasurer.
* * *
1975, and prior to that served for
seven years on the legal staff of the
The Twin Cities Chapter of the
Ford Motor Company in Dearborn, Bank Administration Institute has
Mich.
elected officers for the 1987-88 year.
* * *
They are: Thomas Freed, National
First Trust has announced that City Bank of Minneapolis, presi
Joseph G. Yadrick has been named dent; Kathy Welle, Marquette Bank
University, vice president; Susan
senior vice presi
Scheerer, First Bank System, trea
dent and head of
surer,
and Christopher Knips, Com
the institutional
mercial State Bank, secretary.
trust group. He
previously served
Two Added in Newport
as vice president
At Town & Country Bank, New
and d iv isio n
port,
Jeff A. Hawkins has joined the
manager of insti
staff
as vice president and senior
tu tio n a l tru s t
loan
officer.
He is responsible for
services at Texas
overall credit administration and
Commerce Bank
business development at the bank.
J.G. YADRICK
in Huston. Prior
to that he was at United California Prior to joining Town & Country
Bank, Mr. Hawkins served as vice
Bank for 13 years.
president for First Bank.
* * *

American National Bank has an
nounced that Barbara W. Schneider
has joined the bank as vice presi
dent-commercial banking. She is a
former American employee with ex
perience in the commercial depart
ment and in credit administration.
She spent the last three years with
Barnett Banks of Florida.

Richfield Bank & Trust Co. She was
with the Comptroller of the Curren
cy for three years prior to joining
Richfield in 1982. She has served the
bank as credit manager, loan review
officer and commercial loan officer.

Elected in Sargeant
At First American State Bank of
Sargeant, Joseph M. Collins has
been e le c te d
p re sid en t. He
had been execu
tive vice presi
dent and cashier
of the bank, and
will retain the ti
tle of cashier.
Before joining
th e S a rg e a n t
bank in 1985,
J.M. COLLINS
Mr. Collins was
an officer of the Norwest Bank in
Austin. He has over 25 years bank
ing experience.

Added in Brainerd
R. Alan Lichty recently joined
First American Bank in Brainerd as
senior vice presi
dent for loan ser
vices. He pre
viously served
as senior vice
president—com
mercial lending
at First Bank,
St. Cloud. He
was with First
Banks for 19
y e a rs.
M r.
lich ty began his banking career
with First American National Bank
in Wausau, Wis.

MetroBank Director Named

Michael J. Pint, chairman of the
MetroBanks, Bloomington, has an
J. HAWKINS
M. BOIKE
nounced the appointment of George
Michael J. Boike has been named M. Wilson as a director of Metrothe bank’s senior operations officer. Bank Bloomington/M inneapolis/
He is responsible for all operations Nokomis/Airport. Mr. Wilson pre
management, including personnel, viously served as chairman for the
accounting, data processing and Bank of Minneapolis and Trust
supervision of the bank’s two facili Company, which was recently ac
ties in Newport and Woodbury. quired by MetroBank Bloomington.
Prior to joining Town & Country,
Mr. Wilson retired as executive
Mr. Boike spent 13 years at the vice president of the Billy Graham
Bank of Commerce in Mankato, Evangelistic Association on June 1.
B. SCHNEIDER
T.H. FARNHAM
where he served as vice president He is founder and chairman of the
Evangelical Council for Financial
Thomas H. Farnham has been and cashier.
A ccountability in W ashington,
promoted to vice president and man
D.C., managing editor of Decision
ager-private banking at American. Promoted in Richfield
Dawn L. Gast was recently pro magazine, president of World Wide
He joined the bank in 1973 and most
recently was vice president, com moted to assistant vice president of Publications and consultant to Billy
the commercial loan department at Graham Evangelistic Association.
mercial.
Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

27
Michael R. Vaughan, Wisconsin
Bankers Association legislative
counsel; Rusty L. Jesser, federal leg
islative representative, American
Bankers Association; Roger Extell,
advisor to Governor Tommy
Thompson, and Richard P. Klug,
WBA president and chairman of the
board and CEO of FM Bank, Meno
monee Falls.

M&l Corp. Elects Pres., EVP
®

_
®

Dennis J. Kuester has been
elected president and Gordon H.
Gunnlaugsson has been elected ex
ecutive vice president of Marshall &
Ilsley Corporation. John A. Puelicher had been both chairman and
president of the corporation.
Mr. Kuester has been vice presi
dent of M&I Corp. since 1984. In ad
dition, he is president and director of
M&I Data Services, Inc., and a di
rector of M&I Insurance, Inc.
Mr. Gunnlaugsson joined M&I
Marshall & Ilsley Bank in 1970 in
the controllers division. In 1971 he
moved to the investment division
and was elected a vice president in
1976. He became a vice president
and chief financial officer of Mar
shall & Ilsley Corporation in 1985.

9 Brown Deer Bank,
First Bank to Merge
On September 30, in a joint an
nouncement, James L. Roberts,
president of First Bank Milwaukee,
• and Dean A. Treptow, president and
a principal owner of The Brown Deer
Bank, Brown Deer, said they have
agreed to merge the two banks. The

combination, which is subject to Elected in Eau Claire
Michael R. Hyzer has been elected
regulatory and shareholder ap
proval, would be effective in early vice president and trust officer of
1988. As part of the transaction, the First Wisconsin
two parties have executed a stock National Bank,
and asset lock-up agreement. Other Eau Claire. He
will head the
terms were not disclosed.
The Brown Deer Bank has assets trust and invest
of over $85 million. Mr. Treptow will ment m anage
continue as president, and the m en t d e p a r t
bank’s name will be changed to First ment. He suc
ceeds Douglas
Bank Brown Deer.
A. Rahn, Jr.,
who re c e n tly
Ag Forum Held in Madison
HYZER
A g ric u ltu ra l b a n k e rs from transferred to
First
Wisconsin—Madison.
throughout Wisconsin met in Madi
Mr. Hyzer has worked at Valley
son on October 1 in a special agri
cultural forum to focus on farm pro National Bank of Des Moines since
fitability as a long term solution to 1981, most recently as corporate
the agricultural debt situation. The counsel.
meeting was held at the Holiday Inn
Southeast in Madison, in conjunc
Named in Madison
tion with the World Dairy Expo.
Douglas R. Coerper, Jr. has been
The forum included an outlook on
current PIC certificate markets as named marketing representative at
well as up-to-date information on Valley Banklease Corp., Madison.
legislative issues. Speakers included He will be responsible for sales and
John Rosenow, president of Rural business development in central and
Management Services, Inc.; Dr. southern Wisconsin. He has been as
Richard Vilstrup, professor of agri sociated with Valley for ten years,
business and marketing at the Uni most recently as assistant vice
versity of Wisconsin, Madison; president at Valley Bank, Madison.

division manager and is currently
manager of the human resources de
Colorado National Bank—Ex partm ent, management develop
change, Colorado Springs, has an ment program and food service facil
nounced several staff changes.
ity.
Joel Scott Chambers has been
Brenda B. Balzer has been elected
a vice president. She joined the bank promoted to assistant vice president
in 1984 as a personnel and training responsible for marketing fiduciary

Changes Told in Colo. Springs

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Federal Reserve Bank of St. Louis

services. He joined the bank in 1984
as a new business rep for the trust
department.
Jean Hunt has been elected an as
sistant vice president in mortgage
loans. She joined the bank in 1983 as
a loan representative and later
supervised that division.
David Steele, who joined the bank
in 1978, has been elected an assis
tant vice president in trust opera
tions.
Joy A. Maynard has been elected
a trust officer. She joined the bank
in 1985 as a trust secretary and is
responsible for administration of its
personal trust program.
Robin L. DeWitt has been elected
an operations officer/processing ser
vices supervisor. She joined CNB in
Northwestern Banker, November, 1987

28
Denver in 1981 and later transferred
to Colorado Springs.
Maura Dougherty has joined the
bank as a commercial loan officer.
She most recently was a portfolio
asset manager with Silverado Capi
tal Corporation in Denver.

President Elected at
Central Bank—Centennial
Rodney L. Brethower has been
elected president of Central Bank of
Centennial, N.A. He has 24 years of
banking experience, and will retain
his current position as president of
Central Bank of Chatfield. Prior to
joining the bank in 1982, Mr.
Brethower was employed by Chatfield Bank, Mid-States Bank and
First National Bank in Evergreen.

Named in Denver
At First Interstate Bank of
Denver, J. Claudette Hamilton has
been named senior vice president,
real estate banking. She succeeds
John L. Gray, who has been named
senior vice president, real estate, at
First Interstate Bank of California.

She joined First Interstate in 1976
as an assistant account administra
tor in corporate trust. She joined the
real estate group in 1980 as a loan
assistant, and was named corporate
banking officer in 1981, assistant
vice president in 1983, and vice
president in 1985.

Banks Finance BetaWest
United Bank of Denver, acting as
agent for ten other regional, national
and international banks, has ex
tended a $300 million line of credit
for project financing to Denverbased BetaWest Properties, Inc.
BetaWest Properties, a subsidi
ary of U S WEST, Inc., develops and
acquires commercial real estate na
tionwide. It has 24 operating proper
ties representing $716 million in
assets and seven projects under de
velopment with a cost of $532 mil
lion when completed.
Other domestic banks involved
Eire The First National Bank of Chi
cago; Norwest Bank Minneapolis,
N.A.; Old National Bank; SeattleFirst National Bank; United States

National Bank of Oregon, and the ^
Valley National Bank of Arizona.
Foreign lenders include The Mit
subishi Bank, Ltd., Los Angeles
Agency; The Nippon Credit Bank,
Ltd., Los Angeles Agency; The San- £
wa Bank, Limited, Chicago Branch,
and Swiss Bank Corporation, New
York Branch.

Englewood Banks to Merge
The Comptroller of the Currency
has approved the merger of United
Bank of A rapahoe—E ast into
United Bank of Arapahoe, both in
Englewood. The merger is expected q
to be completed in late November.

United Banks Name Directors
Gerald M. Berenstein, senior vice
president and head of check services 0
at United Bank of Denver, has been
elected to the board of directors of
United Bank of Monaco, Denver. He
joined United Banks in 1973.
Meanwhile, Roger L. Odgen has •
been elected to the board of United
Bank of Denver. He is president and
general manager of KCNC-TV.
Mr. Slade returns to the bank to
be responsible for loan review and
compliance. He was employed by
Commercial Bank from 1974 to 1983
and has been an officer of the Fulton
State Bank since that time.
Mr. Robbins will join the bank’s
consumer loan department. He has
many years experience in consumer
financing.

Retired in Onida
Norwest Promotes Two
At Norwest Bank South Dakota,
N.A., Robert C. Oliver has been pro
moted to senior vice president, busi
ness banking in Sioux Falls, and
Pete Cappa has been promoted to
senior vice president, business bank
ing in Rapid City.
Mr. Oliver joined Norwest in
Sioux Falls in 1977. In 1978 he was
promoted to personal banking offi
cer and in 1980 was named commer
cial loan officer. In 1984, he was pro
moted to vice president, business
banking.
Mr. Cappa joined the Rapid City
Norwest staff in 1974. In 1977 he
was named manager of the credit de
partment and in 1979 was named as
sistant manager of the Robbinsdale
branch. He was promoted to assis
tant vice president, manager of the
Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

Cecil H. Richter, president of the
Onida branch of BankWest, has an
North branch in 1980 and in 1983 to nounced he will retire from the bank
vice president, commercial mid-mar- on December 31.
®
ket/financial institutions.
Mr. Richter came to Onida in
1968 when he was named executive
Added in Mitchell
vice president of The Scully County
Commercial Trust & Savings Bank. He later became president ^
Bank, Mitchell, has added two new and an owner. In 1982 the bank was ^
officers to its staff. Gary Slade and sold to BankWest in Pierre. Mr.
Craig Robbins have joined the bank Richter has a total of 36 years of
as assistant vice president and con lending experience, 19 in ag lending.
sumer loan officer, respectively.

Elected in Rapid City

C. ROBBINS

G. SLADE

Robert M. Harris, Gary P. Reidmann and Lowell E. Christensen
have been elected to First Bank
Rapid City’s Community Board.
Mr. Harris is president of Custer
Lumber Corporation. Mr. Reidmann
is president and CEO of Rushmore
Health System. Mr. Christensen is
plant manager of the Aberdeen 3M
Plant.

•

29
m anagement officer; Craig A.
Weiss, finance and accounting man
ager; Karen J. Kelly, compensation
and benefits administrator and
Trade Gefroh, finance and account
ing assistant. All their previous
positions were with First Banks,
with the exception of Mr. Anderson,
who was employed by Norwest
Corp. of Minneapolis.
□

21 FBS O ffices Purchased
N SEPT. 30, Donald R. Mengedoth of Fargo announced the
completion of the purchase of 21
community banking locations in
three states from First Bank Sys
tem, Inc. of Minneapolis. Mr. Men4) gedoth is the largest shareholder
and serves as president and chief ex
ecutive officer of three newly-formed
bank holding companies: Communi
ty First Minnesota Bankshares,
•
Inc., Community F irst N orth
Dakota Bankshares, Inc. and Com
munity First South Dakota Bankshares, Inc., which have purchased
the banks.

•

_
9

D.R. MENGEDOTH

M.A. ANDERSON

Along with local investors, Com
munity First Minnesota Bankshares, Inc., owns six banks with
eight offices in the Minnesota communities of Benson, Little Falls,
Paynesville, Marshall, Minnesota,
Ivanhoe, Wheaton and Windom.
Total assets of the Minnesota banks
are approximately $220 million.
Community First North Dakota
Bankshares, Inc., and local inves
tors own four banks in the North
Dakota communities of Cooperstown, Dickinson, Lidgerwood and
Wahpeton. Total assets of these
banks are approximately $150 mil
lion.
The third bank holding company,
Community First South Dakota
Bankshares, Inc., has chartered six
new banks with offices in nine South
Dakota communities. Together with
local investors, they own banks with
offices in Clark, Corsica, Gettys
burg, Hot Springs, Huron, Lemmon,

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Federal Reserve Bank of St. Louis

Platte, Redfield and Vermillion. The
newly chartered banks have pur
chased assets and liabilities of the
nine branches of First Bank of
South Dakota—Sioux Falls, a First
Bank System affiliate. Total assets
of the new South Dakota banks are
approximately $260 million.
These 21 bank offices were offered
for sale by First Bank System with
25 other locations in August, 1985.
At that time, Mr. Mengedoth and
Mark A. Anderson, executive vice
president and chief financial officer
for the three new holding companies,
were executives of First Bank Sys
tem. They have worked with local
bank presidents, directors and em
ployees to form the new organiza
tion and purchase the 21 banks. The
holding companies will be head
quartered in Fargo.
Mr. Mengedoth said, “ It has
taken two years to complete the pur
chase agreements with First Bank
System, arrange the required financ
ing, and obtain regulatory approval
for the purchase.”
Although the purchase price was
not disclosed, Mr. Mengedoth indi
cated that there are nearly 200 local
investors, employees and directors
of the banks, who have purchased
stock in their local banks. The hold
ing companies own over 80% of each
bank and financing was obtained
through a private placement offer
ing of holding company securities to
institutional and private investors.
Mr. Mengedoth most recently
served as senior vice presidentmanaging director of First Bank
System. Mr. Anderson served as re
gional comptroller for FBS.
Other officers of the holding com
panies include: Thomas A. Hilt,
senior vice president of operations
and adm inistration; Elizabeth
Maltry, vice president and human
resources director; Bruce A. Heysse,
vice president and senior credit of
ficer; Thomas R. Anderson, funds

Interstate Banking Panel
to Be Assembled
As a follow-up to the North Da
kota Bankers Association’s Septem
ber 22 meeting on interstate bank
ing, the Executive Council is in the
process of assembling a special
working group of bankers to address
the issue.
The panel will serve to draft legis
lation fairly representing the diverse
points of view revealed at the meet
ing. The resulting consensus legisla
tion will be presented to the Council
at its February 2, 1988 meeting in
Fargo.
In taking the action, the Council
clarified that a decision as to
NDBA’s posture on interstate bank
ing has not yet been made.

IOLTA Program in Effect
An Interest on Lawyer Trust Ac
counts (IOLTA) program was
adopted by the North Dakota
Supreme Court recently, effective
October 1. The basic plan for the
program is for the trust accounts
that attorneys or law firms maintain
with a bank to earn interest, and the
interest be paid to a charitable orga
nization. Attorneys have until ap
proximately December 1 to comply
with the rule.
The NDBA has sent information
regarding the program to member
banks. If you have further questions
regarding its implementation, con
tact the NDBA office.

NABW Chapter
Elects Officers
The Sunrise Chapter of the Na
tional Association of Bank Women
held its installation of officers in
September. This chapter, which rep
resents eastern North Dakota, in
stalled the following officers:
President—Vicki Sieck, Norwest
Bank South Dakota; Vice Presi
dent—Mary Jo Curtin, Norwest
Bank South Dakota; Secretary—
Kathy Reed, Valley National Bank,
and Treasurer—Susan Gass, First
Dakota National Bank, Yankton.
Northwestern Banker, November, 1987

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Doll Named New President
of Wauneta Falls Bank

president is Douglas Mietzner, who
will continue as cashier.

David C. Doll has been selected to
succeed John M. Green as president
of
W a u n e ta
F a lls
B ank,
W auneta. Mr.
Green has left
th e b a n k to
become execu
tive director of
Phi Kappa Tau
fraternity in Ox
ford, Oh., and
will continue on
D. DOLL
the bank’s board.
Mr. Doll most recently spent a
year as an investment representa
tive with Edward D. Jones & Co. in
Oroville, Calif. Prior to that he
served five years as president, trust
officer and a director of Adams
Bank & Trust, Ogallala. He was also
that bank’s executive vice president
from 1975-1978 before spending
three years operating a new car fran
chise. His broad experience in the fi
nancial industry spans 25 years.

Elected in Aurora

Elected in Gothenburg
At the First State Bank of
Gothenburg, E.A. Cook III of Lex
ington has been
elected president
and chief execu
tive officer of the
bank, effective
October 1. Glenn
Bartels has re
signed from that
position. He will
continue w ith
the bank as a
E. COOK
vice president.

Elected in Hildreth
A rthur H. Fritson has been
elected president of the State Bank
of Hildreth. He succeeds Kenneth
Frerichs, who died on August 14.
Mr. Fritson previously served as
vice president and has been with the
bank for 16 years. Promoted to vice

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Federal Reserve Bank of St. Louis

The board of directors of The
Farmers State Bank & Trust Co.,
Aurora, has elected Rod Rudebusch
president and chief executive officer
and Tom Darbro senior vice presi
dent.
Mr. Rudebusch replaces Dan J.
Armbruster, who passed away in
April. He joined the bank in 1985 as
vice president and was promoted to
senior vice president in 1986. Prior
to that he worked as a loan represen
tative and branch manager for Pro
duction Credit Associations.
Mr. Darbro joined Farmers State
in 1986 as vice president. He was
also employed by the bank in 1981
and 1982 before moving to The Na
tional Bank of Newcastle, Wyo.
Prior to his association with Farm
ers State, he spent four years as a
loan officer for various s&ls.

Appointed Bankruptcy Judge
Omaha attorney John C. Minahan
Jr. has been appointed the second
federal bankruptcy judge for Neb
raska, for a 14 year term. He is a
1972 graduate of Creighton Law
School, holds a degree in business
administration from the University
of California at Berkeley, and holds
a master’s in law from Harvard Law
School. He most recently has been a
partner in the Dixon, Dixon and
Minahan law firm in Omaha, spe
cializing in commercial and bank
ruptcy law. His office will be in Lin
coln.

Named in York
The board of directors of The
First National Bank of York has an
nounced the following officer
changes:
Raymond McKenna, assistant
vice-president in the consumer loan
department, was named manager of
the consumer loan area. He started
with the bank in 1980, and was

named a consumer loan officer in
1983. He was named assistant vice
president in 1984.
Steven Hannon was named a con
sumer loan officer. He started with
the bank in 1982 in the credit admin
istration departm ent, and was
named a credit administration offi
cer in 1984.
Janice Simsic was named assis
tant branch manager of the Waco
branch. She started in banking at
the Farmers Bank of Lincoln in 1978
and served as cashier and operations
officer of that bank since 1981.

NIBA to Hold Convention
The 6th Annual Convention of the
Nebraska Independent Bankers As
sociation will be held November
19-20 at the Villager Motel & Con
vention Center in Lincoln. High
lights include a Congressional
Breakfast, FmHA Update and the
“Ask a Lawyer’’ question and an
swer session, along with the election
of officers.
The complete program follows:
Thursday, Nov. 19
P.M.
1:00 Registration opens.
2:00 Board of directors meeting.
6:00 Convention warm-up.
7:00 Welcome to Lincoln dinner.
Friday, Nov. 20
A.M.
8:00 Breakfast with Congress—
Cong. Doug Bereuter, Sen.
David Karnes (invited).
10:00 Fm H A U p d a te —V ance
Clark, national admin.,
FmHA; Kirk Jamison, state
dir.
11:15 Observations from Wash
i n g t o n —Ken G ue nth er,
e.v.p., IBAA.
P.M.
12:00 Luncheon, Cynthia Milligan,
dir. of banking.
2:00 “Ask a Lawyer’’ question
and answer session.
3:45 NIBA Annual Meeting and
election of officers.
6:00 President’s cocktail party.
6:45 President ’s dinner.

Elected in S. Sioux City
Merle Long, vice president and
senior loan officer at Nebraska State
Bank, South Sioux City, has been
elected to the bank’s board of direc
tors. Mr. Long joined Nebraska
State Bank in 1984 after serving in
the Iowa Banking Department.
Northwestern Banker, November, 1987

32
10250 Regency Circle, Suite 312. ^
The new division will underwrite^
and distribute tax-exempt securi
ties, Mr. Petersen said, with empha
sis on Nebraska Sanitary and Im
provement District (SID) securities.^
It will be headed by Joseph E.
Haller, who was named senior vice
president. Mr. Haller brings 29
years of previous investment experi
ence to KPSP.
^
Most recently, he has been serv
ing as vice president for Paine Web
ber, Inc., in Omaha. Prior to that, he
was a vice president with First Mid
America, Inc., in Omaha from ^

Talk To The Municipal
Bond Professionals

IRST National Bank of Omaha
opened a temporary facility at
114th and Dodge Streets in the
Miracle Hills Shopping Complex on
October 19.
John R. Lauritzen, chairman, an
nounced that the Comptroller of the
Currency has approved the site for
future construction and for the im
mediate placement of a modular fa
cility.
The facility will have a three-lane
drive-through and a drive-up auto
matic teller machine. In addition,
the 3000 square foot facility will be a
full service bank with retail, com
mercial, trust and discount broker
age capability.

H.F. KUEHL

G. TOMKA

The manager will be bank Vice
President H. Frederick Kuehl, with
ten years of service in retail and cor
porate banking. He previously was
responsible for correspondent bank
ing for First National Bank of
Omaha. Mr. Kuehl’s ten years at
First National have given him a
well-rounded, in-depth background
in all phases of banking—opera
tions, retail and corporate lending
and bankcards, as well as corres
pondent banking. He has extensive
acquaintances among bank execu
tives in Nebraska, Iowa, South Da
Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

kota and Wyoming.
Bank officials state his mana
gerial experience provides the
leadership needed to head this ag
gressive, new, up-scale bank that
will serve a broad range of modern
financial services for corporate and
up-scale individuals within the ser
vice range of the new facility.
Mr. Lauritzen said the opening of
this location is a continuation of the
extensive expansion that the bank
has undertaken in 1987. First Na
tional has seen a 15% increase in
staff during 1987, bringing total
employment in excess of 1200 peo
ple, he stated.
Mr. Lauritzen added that plans
are underway for a permanent facili
ty at the 114th and Dodge Street
location. It is anticipated that there
will be no interruption of service
during the permanent facility’s con
struction at the site. The new struc
ture will have 105,000 square feet,
with full commercial and retail out
lets, as well as the bank.
First National Bank of Omaha’s
century of service to correspondent
banks will continue with the team
Mr. Kuehl has put in place. Suc
ceeding him as manager of the cor
respondent banking team as part of
the corporate and financial institu
tions division is Gerald J. Tomka,
who has been promoted to vice presi
dent.
* * *
Jack Petersen, president and chief
executive officer for Kirkpatrick,
Pettis, Smith, Polian Inc., an
nounced October 14 the opening of a
new division of the company in the
Bozell & Jacobs Plaza building,

William March

President

Exec. Vice President

Patrick H. Rensch

C.W. (Chuck) Poore, Jr.

Sr Vice President

Sr. Vice President

Bill Abts, Jr.

Wayne A. Rasmuss

Vice President

Secretary-Treasurer

Micky Krup nsky

John Trecek

Representative

Counsel

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Federal Reserve Bank of St. Louis

Nebraska News

J.E. HALLER

P.A. LORENZEN

1975-1983, when it was acquired by
Paine Webber. He is a past presi
dent of the Nebraska Investment
Bankers Association (now called the
Nebraska Securities Industry Asso
ciation).
Joining Mr. Haller in the new di
vision will be three other associates
previously with First Mid America
and Paine Webber — Philip A. Lo
renzen, Raymond E. Sharpe and
John E. Kuehl.
A graduate of Wayne State Col
lege, Mr. Lorenzen was named vice
president for KPSP. He has 20 years

firm.
£
Mr. Petersen said the new west
Omaha location will provide added
convenience and service to many
KPSP clients.
“In addition to the new SID divi- £
sion, we plan to open a securities
brokerage operation at the west
Omaha office by December 1,” he
said. “ In line with this expansion,
we hope to hire five new account £
R.E. SHARPE
J.E. KUEHL
representatives for the west loca
of prior investment experience, in tion.’’
cluding 15 years with First Mid
Mr. Petersen said KPSP will con
America and Paine Webber.
tinue to operate its main offices in
Mr. Sharpe also was named vice downtown Omaha and Lincoln.
president for KPSP. He has been in
* * *
the investment business for 22 years
and joined First Mid America in
Several officer appointments have
1968.
been announced by FirsTier Bank
Mr, Kuehl was named assistant Omaha.
4)
vice president for KPSP. A graduate
Richard G. Martin was named
of Creighton University, he joined vice president. He has been with the
First Mid America in 1982.
bank since 1979. He is a trust em
An affiliate of Mutual of Omaha, ployee benefit administrator III in
KPSP is a full-service investment the estate and trust division.
O
banking and securities brokerage

R.G. MARTIN

First Commerce Bancshares, Inc.
of Lincoln has announced the forma
tion of a new investment subsidiary,
First Commerce Investors, Inc.
Pending regulatory approval, First
Commerce Investors will provide in
vestment management advice and
portfolio management services for
the National Bank of Commerce’s
trust division.
James T. Hitt has rejoined the or
ganization as president of First
Commerce Investors. His previous
experience includes insurance port
folio management and trust depart
ment examinations as well as seven
years as investment department
manager and portfolio manager for
NBC’s trust division.
Another recent addition, Keith S.
Vasey, will be director of marketing
Northwestern
Banker, November, 1987

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Federal Reserve Bank of St. Louis

for the firm. He joins the company
from Stifel, Nicolaus & Co. of Den
ver.
All current NBC trust investment
department personnel will become
employees of First Commerce Inves
tors. They include: H. Cameron
Hinds, assistant vice president;
Donald J. Hoelting, assistant vice
president; Michael J. Balters, in
vestment officer, and Barbara R.B.
Ostidiek, investment analyst.
In addition to services for the
bank and affiliates, First Commerce
Investors will market investment
advisory services to individuals, cor
porations, and other institutions.
NBC’s trust division will continue
to provide all custodial, accounting
and operational support for the new
company.

J.F. WAGNER

Judd F. Wagner was promoted to
vice president. He has been with the £
bank since 1962 and is also a trust
employee benefit administrator III
in the estate and trust division.
Michael V. Hinrichs was named
assistant vice president. He is cur- %
rently serving as lending officer II
on the corporate trust team.
Appointed as officers were Jerry
J. Syslo, Paul T. Friesen, Irene
Karklins and Ann E. Deck.
#

Callaway Bank
Celebrates 100th
This month Seven Valleys State ^
Bank of Callaway marks its 100th
year of service. An evening of enter
tainment, with drawings and a re
ception, was held in honor of the oc
casion on Oct. 10. In addition, a cof- ^
fee was held for residents of the Cal
laway Good Samaritan Home and
Grand Generation Manor.
An in-house Customer Apprecia
tion Coffee is planned for November
to conclude the celebrations.

SEVERAL Minnesota bankers gathered together at a breakfast hosted by Herb and Mona Lund. He is pres. & CEO of Security State Bank
of Albert Lea. Left to right in top row are: Herb Lund; Shirley and Jim Jorstad, pres., Minnesota Bankers Assn, and pres., Citizens State,
Hayfield; Susan Sands, whose husband, Bill, is 1st v.p. of the MBA and chmn., Western Bank, St. Paul; Jodi and Mike Pieschel, pres., Farm
ers & Merchants State, Springfield, and Mona Lund. BELOW—Patti and Ken Wales, sr. v.p., First Bank Minneapolis; Diane and John Pierson, pres., North Dakota Bankers Assn, and pres. & CEO, Norwest Bank Minot; Jan and Marty Chorzempa, pres., Richfield B&T, and Leila
and Truman Jeffers, exec. v.p. MBA, Minneapolis.

ABA REPORT. . .
# (Continued from page 18)
“ If you think the battle in which
banks are engaged in Washington is
simply a fight for new powers, you
^ need to change your minds. The bat^ tie is over the basic premise of what
banks in this country should be.”
FDIC Chairman L. William Seidman, in his address to the conven^ tion, echoed the sentiments of
Comptroller Clarke. “Let Banks
Compete,” he said, is not only the
slogan heard at the Dallas conven
tion but sums up the nine months

study and 190 pages of report com
piled by his staff. “It is said,” Mr.
Seidman reported, “that ‘there is
nothing as powerful as an idea
whose time has come.’ That state
ment, we believe, applies to a re
structuring of financial systems to
day.”
The 6,500 registrants had the op
portunity to attend several of the 27
Banking Industry Sessions (which
featured management/operations
discussions), four Public Policy Ses
sions (ABA panel on competitive
equality, and dialogues with the

PLATFORM-PLUS. . .
(Continued from page 12)
ancillary software packages (e.g., word processing,
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without entering or exiting either system. Help
screens and function keys are additional standard fea
tures of PlatformPlus that insure ease of use.
Reduces Training Time
As a result of these features, training time on Plat
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Federal Reserve Bank of St. Louis

OCC, Fed and FDIC), and 13 spouse
sessions on varied topics.
Attendance at all general sessions
was excellent and was surprisingly
high on Saturday afternoon and
Sunday morning for the Banking In
dustry Sessions when there was so
much outside competition for atten
tion of the delegates. The atten
dance at these general and special
sessions, as well as the Public Policy
Sessions continued at a high level
throughout Monday and Tuesday.
The 1988 ABA convention will be
held October 8-12 in Honolulu.

formPlus is greatly reduced. Training for customer ser
vice personnel and personal bankers averages three
days. Additional training support is provided for man
agers and system administrators. Complete documen
tation and on-site installation support are provided on
all system sales.
PlatformPlus is marketed and distributed by ACI, a
world leader in EFT and automated financial transac
tion processing. ACI is a wholly-owned subsidiary of
U S WEST Information Systems.
□
Northwestern Banker, November, 1987

Bankers Trust is Iowa's
International Bank.
If you thought you had to go to Chicago or New
York to do your overseas banking, think again.
International services aren't foreign to Bankers
Trust. O ur International Banking Division has
over two decades of experience and an exten
sive w orldwide correspondent and telecom
munications network. So we can handle your
international banking needs from right here in
Des Moines.
O ur International Banking professionals are
trained to help Iowa companies and banks do
business in global markets. Bankers Trust is your

full-service international bank. We can handle all
of your international banking needs, including
letters of credit, foreign fund transfers, collec
tions, foreign exchange and foreign drafts.
O ur telecommunications system makes Bankers
Trust the only Des Moines bank d ir e c tly linked to
m oney center banks on every continent. In addi
tion, Bankers Trust is the banking affiliate of the
Iowa Export-Import Trading Company.
Call Patricia Rourke any time for advice and
service, 245-5284. O ur staff is ready to improve
your international business horizons.

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

Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

Edward Tubbs Appointed
Banking Superintendent
On October 12, Edward L. Tubbs
was appointed as Iowa’s new super
in te n d e n t of
b a n k in g .
He
took office on
N o v em ber 1,
succeeding Wil
liam R. Bernau.
Mr. Tubbs is
c h a irm a n
of
both the Maquoketa S tate
^
Bank at MaquoCl TIIDBe
k eta and the
E L TUBBS
First Central State Bank in DeWitt.
Mr. Bernau is chairman and presi
dent of Peoples Savings Bank in
Crawfordsville, the Iowa State Bank
and Trust Co. in Center Point, and
the Walker State Bank in Walker.
Mr. Bernau had served as superin
tendent since January 10, 1986.
Mr. Tubbs was among three can
didates considered for the job by
Gov. Terry Branstad. The others
were Keokuk bankers William
Logan and Edward Johnstone.
Mr. Tubbs was president of the
Iowa B ankers A ssociation in
1980-81. He is co-founder and
former president of MABSCO
Agricultural Services Inc. (MASI),
the Des Moines-based MABSCO
subsidiary which began making a
se c o n d a ry m a rk e t for farm
operating loans in 1982.

Citizens National Bank
Completes Merger
®

The combination of two Charles
City banks was completed on Octo
ber 9. Under the terms of the agree
ment, the Citizens National Bank
^ purchased from Banks of Iowa, Inc.,
certain assets and assumed certain
liabilities of the Commercial Trust
and Savings Bank. The event was
marked by a number of meetings
£ and festivities throughout the day
at the facilities of Citizens National

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Federal Reserve Bank of St. Louis

tions. After a year with the Sears
Bank, Mr. Underbrink returned to
the Waterloo Savings Bank as a se
nior vice president and member of
the board.
During his presidency, assets of
Norwest Bank Fort Dodge increased
from $18 million to $147 million.
Mr. Underbrink has served on
numerous com m ittees for the
American Bankers Association and
the Iowa Bankers Association,
Bank at 300 North Main Street and working in the legislative and policy
making areas. He held several titled
the Cedar Mall.
The kick-off event for the day was positions including ABA vice presi
a joint staff meeting and press con dent for Iowa, member of the ABA
ference held at Citizens National Government Relations Council and
Bank. Directors, officers, and em the IBA Board of Directors. He will
ployees of both financial institutions continue to work in the banking
were in attendance to begin their arena as a member relations consul
first day together as a combined tant to the ABA.
staff. The meeting was opened with
an address from O.J. Tomson, chair Former Osceola Banker
man of Citizens National.
Mr. Tomson displayed the com Files for Bankruptcy
Donald R. Wubbena, former
bined financial statement of Citizens
National for October 9th reflecting Osceola banker, has filed for Chap
total loans of $40.3 million, total in ter 7 bankruptcy. His petition, filed
vestment securities of $54.9 million, in September, listed debts of $5.3
total deposit of $91.7 million, total million and assets of about $550,000.
capital of $7.4 million, and total Court appointed trustee Robert
Taha said it could take at least a
assets of $99.7 million.
year
to close out the case.
Citizens National will have a total
Mr.
Wubbena was the major
work force of 40 employees. Citizens
hired four officers and five em stockholder of the First State Bank
ployees of Commercial Bank. Colin of Rockford, which failed March 4.
B. Robinson is president of Citizens He was also president, chairman and
National. Dan N. Frudden is newly largest shareholder of the Osceola
appointed vice president, and former State Bank & Trust Co., which failed
vice president of Commercial Trust April 23. Then Iowa Banking Super
intendent William Bernau cited
and Savings Bank.
“bad loans, mismanagement of the
loan portfolio and other actions’’ as
Earl Underbrink Retires
causes of the failures. Assets of the
Rockford and Osceola banks were
From Norwest Ft. Dodge
Earl Under brink retired from $15 million and $8 million respec
Norwest Bank Fort Dodge on Sep tively.
tember 30. He
Appointed in Waverly
served as the
bank’s president
John Hudson has been appointed
from 1963 until
assistant vice president and man
March of this
ager of the consumer loan depart
year, when he
ment of The First National Bank of
became c h air
Waverly. He previously served as
m an of th e
assistant vice president at Norwest
board. He will
Bank, Keokuk.
continue as a
board member.
E. UNDERBRINK
IBIS Office Moved
His banking
The Iowa Bankers Association
career spans 41 years. He began as
an auditor at the Waterloo Savings has announced that effective Octo
Bank in 1946, and was promoted to ber 5, the Iowa Bankers Insurance
assistant cashier and cashier before and Services, Inc., will be housed
joining the Sears Bank and Trust under the same roof as the IBA. The
Company in Chicago in 1955. There address is: IBIS, 300 Liberty Build
he served as assistant cashier/opera ing, Des Moines, Iowa, 50309.
Northwestern Banker, November, 1987

Iowa News

Named in Waterloo
At Waterloo Savings Bank,
Frederick Koch has been named ex
ecutive vice president. He will chair
the bank’s investment committee
and continue to serve as head of the
trust department, a position he has
held since 1957. He is also president
and CEO of Metro Bancorporation,
the parent company of Waterloo
Savings Bank.
Gerald J. Curran, James R. Ger
ber and Robert L. Smith were
named senior vice presidents of the
bank.
Mr. Curran joined Waterloo Sav
ings Bank in 1952. He will continue
as cashier, a position he has held
since 1966.
Mr. Gerber started at the bank in
1973, and most recently served as
vice president in the commercial
loan area.
Mr. Smith works in retail bank
ing. He joined the bank in 1969 and
has served as manager of the Kim
ball Avenue office and as head of the
installment loan department.

Appointed in Northwood
Kary S. Paulson has been ap
pointed president of the Northwood

State Bank. Mr. Paulson was for Oliger Receives
merly vice president and cashier and Prochnow Scholarship
has served the bank since 1973. He
John Oliger, correspondent bank
fills the position vacated by Velma
ing
officer at Davenport Bank, is the
Woodin, who has retired.
recipient of the
Prochnow Edu
Appointed in Dubuque
William D. McGeehan, president cational Founda
of American Trust and Savings tion Professional
D e v e lo p m e n t
Bank, Dubuque,
Program
has announced
Scholarship.
the appointment
The scholar
of Rogene M.
ship
covers tui
F a u lk n e r
to
tio
n
,
room ,
m ortgage loan
board
and
ma
o fficer.
M s.
J. OLIGER
terials for the
F a u lk n e r has
first-year session at the Graduate
over 20 years ex
School of Banking in Madison, Wis.
perience in the fi
Mr. Oliger was selected for the
nancial industry
R.M. FAULKNER
award by the Iowa School of Bank
and for the past
16 years has been with Harvest Sav ing’s advisory board. He was chosen
from a class of 42 based on his out
ings Bank, Dubuque.
standing academic performance and
Added in Vinton
promise in the field of banking. He is
Jon M. Kremer has joined the a 1987 graduate of the Iowa School
State Bank of Vinton as assistant of Banking.
vice president and manager of the Added in Council Bluffs
bank’s Garrison office. His previous
Virginia Nelson has joined First
experience is with American Trust &
National
Bank of Council Bluffs as
Savings Bank, Dyersville and the
Farm Credit System, Manchester of trust officer. She
previously served
fice.
at
F irs T ie r
Bank, Omaha,
where she spent
17 years in the
t r u s t d e p a r t
ment. For the
past ten years
she has been sec
ond vice presiv. NELSON
dent in charge
of the trust securities section.

Committed to
making your
bank stand
apart from the

Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

Pella Bank Observes
130th Anniversary

Pella National Bank, Iowa’s sec
ond oldest banking institution, re
cently celebrated its 130th anniver
sary with a free dinner and open
house for its customers and friends. ®
The bank started on May 15,
1857, under the name “Central Ex
change and Land Office,’’ and its
name was soon changed to the
“Pella Savings Institution.’’ On ®
October 7, 1872, it took on its pre
sent name.
The $65 million asset bank has 39
employees. Howard Knutson has
been with president since 1974.
®
Also at Pella National Bank,
Marilyn De Jong has joined the staff
as real estate loan officer. She pre
viously owned her own business in
Des Moines.

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

Portrait of Achievement
Our correspondent team
will help you meet your
most important objectives.

•

Our state-of-the-art technology and experi
enced team of banking professionals give you
the expertise you need to excel in every aspect
of your operations and investments. And we do
it by giving you the personal attention you de
serve.
W atch your m on ey grow. Our Federal
Funds investments and competitive rates on
certificates enhance your profit picture. And
our service is backed by strength and safety second to none.

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Federal Reserve Bank of St. Louis

We'll show you results. Call us today to set
up an appointment or talk to one of our corres
pondent officers at the Iowa Bankers Convention
September 20-22 in Des Moines. We’ll show you
how we can help you achieve all your goals.

Phone (319) 383-3429

IDAVEIVPORT BAINK

----------------------AND TRUST COMPANY--------------------MEMBER

FDIC

203 WEST THIRD STREET, DAVENPORT, IOWA 52801-1977

40
bank, where he was employed for a
total of 45 years.

Retired in Sioux City
Eileen Meade, family banking of
ficer at First National Bank in Sioux
City, retired August 31 after 38
years of service with the bank.
Ms. Meade began her career in
banking in 1949. She has worked in
the installment loan department and
as assistant cashier. For the past 15
years, she has served as family
banking officer with a special in
terest in the student loan program.

National Bank Waterloo to
Buy Traer, Dysart Banks

Banks of Iowa, Inc., has an
nounced the appointment of Thomas
K. Grove as vice
president of in
vestm ents. He
will be respon
sible for the com
pany’s treasury
function, includ
ing coordination
of investments
and asset/liability management.
M r. G rove
was most recently vice president and
manager of the investment division
of Bankers Trust Company, Des
Moines. He has also served as vice
president and manager of Security
Pacific Investments in Arizona, as
head of the bond department at
Packers National, Omaha, and as
sales manager with R.G. Dickinson
in Omaha. In addition, he has held
positions in corporate finance with
Dow Chemical and in commercial
lending with Security Pacific Na
tional Bank.
*

First Interstate of Iowa has an
nounced that Scott Sundal has
joined the bank
as a loan review
examiner. Mr.
Sundal is a 1987
graduate of Aug
ustana College
in Sioux Falls,
South Dakota,
with a bachelor’s
degree in busi
ness administra
S. SUNDAL
tion.
Northwestern Banker, November, 1987

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Federal Reserve Bank of St. Louis

Norwest Mortgage, Inc. an
nounced Sept. 22 that it has agreed
to purchase four loan production of
fices of American First Mortgage
Corp. in Georgia, Alabama, North
Carolina and South Carolina, effec
tive Nov. 1. The purchase price was
not disclosed.
The transaction, representing
Norwest Mortgage’s first expansion
via acquisition, adds three states to
the company’s network of loan pro
duction offices. As of Nov. 1 it will
have 56 offices in 28 states.
Approximately 38 personel from
American First joined Norwest on
Nov. 1. The American First and Nor
west offices in Atlanta, Ga. will be
merged and Norwest’s Vern Lynn
will continue as branch manager
there. Gregg Armbrister, area super
visor of the four American First of
fices, will continue in that capacity
as a vice president with Norwest.
The manager of the other three of
fices will continue in their positions.
They are Donna Hayhurst, Charles
ton, S.C.; Dianne D. Purcell, Ashe
ville, N.C., and Brenda J. Clarke,
Birmingham, Ala.
*

Gerald O. Nelson, 79, of McAllen,
Tex., and formerly of Des Moines,
died of cancer on October 15. He was
born in Hopeville and lived in Des
Moines for more than 45 years
before moving to Texas and Min
nesota.
Mr. Nelson headed the correspon
dent bank department for Iowa Des
Moines National Bank (now Nor
west) for many years. He retired in
1972 as a senior vice president of the

R. Scott Fetner, president of Iowa
National Bankshares Corp and its
principal subsidiary, The National
Bank of Waterloo, has announced
the proposed acquisition of First
Community Bank & Trust in Traer
and The First National Bank of
Tama County in Dysart. Melvin M.
Kupka, president and controlling
owner of the Traer and Dysart
banks, said those two locations will
become offices of NBW if the pro
posal is approved by his boards of
directors and regulatory authorities.
Mr. Fetner said NBW will pay $3
million in cash for the two banks’ ap
proximately $36.5 million in assets.
First Community Bank has $23.5
million assets, $21 million deposits
and just over 10% capital. The
Dysart bank has more than $13 mil
lion assets, $12 million deposits and
approximately 10% capital.
Mr. Fetner said both banks are fi
nancially sound, well-managed and
located in economically stable com
munities. Both banks are served
with a number of NBW’s processing
systems, he said, which would make
any transition a smooth one.
Mr. Kupka also noted that the
proposed purchase would bring
greatly enlarged customer loan
availability to his customers, since
NBW is Iowa’s sixth largest bank
with total assets of approximately
$400 million. NBW would provide
new services to Traer and Dysart
customers with its New Horizons
Club, overdraft checking lines of
credit, trust services and ATM ser
vice.
In addition to NBW, INBC hold
ing company also owns Midway
Bank & Trust in Cedar Falls and
Peoples Trust & Savings Bank in Indianola.

W hen You Build
Or Remodel Your Bank,
W ho Really Benefits?
I fVour Local Excavator

|0n fou r Local Lumber Yard

I f^four Local Concrete Supplier IB ^ our Local Carpet Store
lA^four Local Mason

li^ fo u r Local Hardware Store

i/^Your Local Electrician

H ^four Local Motels

GS^four Local Plumber

0 ^ fo u r Local Restaurants

I f*Vour Local Heating Supplier

ii^ fo u r Local Drapery Shops

O ’Vour Local Paint Store

^ V o u r Local Appliance Store

H ^four Local Painter

[t^Your Local Landscaper

IS^Tour Local Roofer

{P^Your Local Newspaper

(S^Tour Local Air Conditioning
Company

The Kirk Gross Company uses local contractors and
suppliers whenever possible. But they’re not the only
people who benefit.

DO, TOO!
The whole town benefits. That’s what your operation is all about. That’s what our operation is all about.

4015 Alexandra Drive
Waterloo, Iowa 50704
Phone 319-234-6641

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Federal Reserve Bank of St. Louis

Iowa News

Interstate Banking for Iowa Endorsed
By Letter from Four Unit Bankers
cated either that they feel it is time
for Iowa to act, or they wish to be a
part of structuring legislation when
member of “The Committee of Unit it is passed.
“A group of bankers has dis
Banks for Interstate Banking,”
which they have formed. The letter cussed the various positions and
was signed by H. Rand Petersen, agreed that now is the time for ap
chairman, Shelby County State propriate action. You are invited to
Bank, Harlan; J. Bruce Meriwether, become a member of ‘The Commit
president, First National Bank, tee of Unit Banks for Interstate
Dubuque; C.B. (Neal) Conover, Banking.’ We do not anticipate the
chairman, First National Bank, need for a monetary contribution.
Creston, and George A. Schaller, Any lobbying effort would be in the
president, Citizens First National form of communication between
Bank, Storm Lake. Their letter fol committee members and legislators
locally.
lows:
“There is a need for the Iowa leg
“ Interstate banking continues to
evolve in other states and be subject islature to know there are many
for resolution in Iowa. Today, forty bankers across Iowa who do think it
states are committed to this new en is time for Iowa to take a position
for change to regional or interstate
vironment.
“ Iowa, along with North and banking. If you are one of those
South Dakota, Nebraska, Kansas, bankers, please sign the enclosed,
Arkansas, Montana, Colorado, New return it to the above address and
Mexico and Hawaii, are the only you will be listed as a member of
states still uncommitted. Even with ‘The Committee of Unit Banks for
out interstate banking, there is sig Interstate Banking.’”
Mr. Petersen told the N o r t h
nificant competitive pressure from
savings and loans, brokerages and w e s t e r n B a n k e r he is “pleased
nonbanks (like Sears) from outside with the response to date. It is sur
prising the number of bankers in
Iowa.
“The supporters of interstate small towns who feel as we do.”
banking are not limited to multi
bank holding companies, but indivi Jerry Eckerson Killed
Jerald A. Eckerson, 50, vice presi
duals, industries and businesses,
along with a growing number of unit dent-commercial loans, First Na
banks. The unit banks have indi tional Bank of Muscatine, was killed
OUR unit bankers in Iowa signed
a letter dated October 12 invit
F
ing fellow unit bankers to become a

MERGERS AND ACQUISITIONS. . .
(Continued from page 11)

are paramount and need to be resolved prior to making
acquisitions. You must also try to prevent any un
wanted takeover attempts by putting in place neces
sary vehicles of defense. Perhaps the most important
point is making sure that you understand the phases of
the acquisition process. These include the:
• Planning; • Screening; and • Action phases.
Under the action phase, the necessary steps include:
1. Contacting the target; and
2. Determining the receptivity of the target to the of
fer.
If the decision reflects a “go deal” then the follow
ing steps are required:
1. Draft a Letter of Intent;
2. Do a detailed investigation of the target and, if no
problems arise;
3. Analyze antitrust considerations, and, if the rul
ing is favorable;
4. Move towards consummation of the transaction.
In summation, practical considerations in the acqui

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

October 23 in a car-truck accident
while Mr. Eckerson was on his way
to Kansas City
for the gradua
tion of one of his
sons from a busi
ness college there.
Mr. Eckerson
was a native of
Pocahontas and
funeral services
were held in that
city. He began
J.A. ECKERSON
his
b a n k in g
career in May, 1960, with Central
National Bank and Trust Co., Des
Moines (now First Interstate). He
left there in January, 1963, to join
the Iowa department of banking and
served as an examiner until Janu
ary, 1968, when he joined the Ernst
& Ernst accounting firm in Des
Moines.
Mr. Eckerson resigned that posi
tion in October, 1971, to begin a
15-year career with Hawkeye Bancorporation, serving first until
March, 1974, as an auditor, then
joining Hawkeye’s Clay County Na
tional Bank in Spencer (now
Hawkeye Bank & Trust) as vice
president. Two years later he was
transferred in July, 1976, to
Hawkeye Bank in Burlington where
he worked until July, 1986 as a vice
president in the lending division.
Mr. Eckerson left the Hawkeye
organization in July, 1986, to join
First National Bank of Muscatine as
vice president-commercial loans, the
position he held at the time of his
death.

m m

sition process include these points:
1. Have a defined plan, and abide by it;
2. Does the plan fit your specific situation?
3. Do a valuation on the target organization;
4. Examine all antitrust considerations related to
the deal;
5. Have a written schedule to follow;
6. Have a “team” effort involved;
7. “Sell” yourself to the other party;
8. Guide the seller to your organization;
9. Have 3 packages ready: financial, synergy, and
people;
10. Seek assistance when needed;
11. Think like a seller when buying;
12. Acquisitions are emotional, not financial deci
sions.
Some don’ts in the acquisition planning process are:
1. Don’t start without a complete knowledge of your
organization;
2. Don’t wait for the deal to come to you;
3. Don’t hold fast to only one candidate: “prioritize”
the targets.
1
Next Month: “Structuring the Transaction.”

Two Strong
Iowa Banks To Serve
Correspondent Banks
The National Bank
of Waterloo

Peoples Trust
and Savings Bank

The National Bank put’s its financial strength
and outstanding correspondent banking
services to work for most of the banks in
Northeast Iowa.
Our state of the art computer processing
equipment is designed to meet all your
needs and is one of the largest processing
centers in the state.
Even more important, the experienced
management team can provide advice and
banking expertise for all financial questions.
We are responsive to your needs.
Put our unmatched combination of
experience and services to work for all your
correspondent banking needs.

Now the same financial strength and
services in correspondent banking are
available to banks in Southeast Iowa
through Peoples Trust and Savings Bank
of Indianola, an affiliate of Iowa National
Bankshares and the National Bank of
Waterloo.
We offer full services including purchase
of excess funds, bond advisory, data
processing services, automated accounts
receivable billing systems and other
complete correspondent bank services.
Working together, Iowa National
Bankshares can put over one half billion
dollars of financial strength behind your bank.
Put our financial strength, our financial
performance and our financial growth to
work for you — call any member of our
experienced team today.

Build On Our Strength

Bill Rickert
Sr. Vice President
Waterloo

John
Cunningham
vice President
Waterloo

Erling Schmiesing
Sr. Vice
President!Cashier
Waterloo

James Freet
Sr. Vice
President/Mgr.
Waterloo

T h e N a tio n a l b a n k
OF WATERLOO
100 East Park ■ Waterloo, IA 50703 ■(319) 291-5200

Leroy Bell
Assistant Vice
President
Waterloo

Charles E. Yagla
Data Processing
Officer
Waterloo

Everett Brown
President, Indianola

Milt Hennick
Sr. Vice President,
Indianola

P eoples IfcusT
and Savings Bank
114 N. Howard ■Box 279 ■Indianola, IA 50125-0279
(515) 961-6241

Subsidiaries of Iowa National Bankshares
-s FDIC

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Federal Reserve Bank of St. Louis

Northwestern Banker, November, 1987

How our bank avoids #
pigeon-holing
potential officers
Written exclusively for
T he N orthw estern B ank er

By CARL KANE
Merchants National Bank
Cedar Rapids, la.
MANAGEMENT trainee Peter Alworth is one of the participants in
the program at Merchants National Bank, Cedar Rapids.

pioneering management training effort launched
three years ago by the Merchants National Bank
A
in Cedar Rapids is paying off not only in development
of better-trained personnel but also in serving as a
model for other companies in the area.
Management training programs, of course, are not
unusual in larger banks and major corporations, but
bank officials found such programs are somewhat rare
in Iowa. MNB’s success in developing its program has
gained recognition among area employers. The bank’s
program has served as a model for several companies,
including one of the city’s largest employers.
“Not everybody is going to become president, of
course, but we feel it is extremely important that po
tential leaders be exposed to all phases of banking and
not be pigeon-holed in one particular job,’’ said Larry
Christy, executive vice president and chief financial of
ficer at Merchants National Bank.
Training Officer Deborah Klopp commented, “ It
would be nice if we had 20 years to develop future
leadership in the normal course of business, but you
don’t have that luxury. We have only 12 to 24
months.”
Key ingredients in the program are regular meetings
with top bank officials and a blending of individual re
search and on-the-job training in every department of
the bank.
“The trainees are exposed not only to the entire
bank but also are exposed to different management
styles,” Ms. Klopp said. “This program certainly pre
pares them for management responsibilities sooner
than the rest of us were ready.”
Each department has its own set of objectives for
the trainees and a time frame in which to achieve those
objectives. In some departments, it is hands-on train
ing. In others, it is principally observation.
“The participants go through the actual teller train
ing, for example, and they also are trained as personal
bankers so they can actually make loans,” Ms. Klopp
said. “They spend six months in the trust depart
ment.”
All trainees attend a weekly conference with Mr.

Northwestern
Banker, November, 1987
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Christy. He reviews with them decisions made by the ^
bank’s management committee the previous week and w
each trainee reports candidly about what he or she has
been doing.
The program provides a meld of practice and theory.
Trainees also are assigned readings in a variety of pro- ^
fessional periodicals and books related to banking and
management. They also are required to prepare essays
on specific subjects and to keep a journal about their
observations and experiences.
Men and women selected for the management train- ^
ing program include individuals just out of college as
well as employees of the bank.
Both Peter Alworth, a management trainee who has
been in the program for 21 months, and Ms. Klopp
agree that the key to the success of the program is its £
flexibility.
Mr. Alworth, who had been employed at two other
banks prior to entering the MNB program, has been
particularly impressed with what he terms “the global
view”—gaining understanding of the bank as a whole. £
As an example he pointed out that after his stint at
a teller, he moved into check processing. He found him
self working with checks he had cashed. He also was
working with balances.
“ I began to see why a teller’s report didn’t balance,” £
Mr. Alworth said. “ In essence, the teller didn’t under
stand the reason, but the trainee did.”
Ms. Klopp emphasized that the program is con
tinually changing and is being updated to keep pace
with the changes in banking.
#
“We call upon trainees and former trainees to help
make changes,” Ms. Klopp said. “The trainees help
design what they feel they need.”
Mr. Christy predicted the program will break the
pattern—possibly common to many banks—of vertical #
career promotions within a limited area.
“Every employee survey we have done shows that a
concern employees have is that they know their own
job but don’t know anybody else’s,” Mr. Christy said.
“The management training program is leading us •
away from such pigeon-holing. ’’
□

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Northwestern Banker, November, 1987