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=r O CTO B ER 1982 Iowa Bankers A ssociation Elects New Officers How to figure deposit benefit in bank sale • What is status of repos today — Survey •Low interest loans boost midwest economy https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ilfpllpil ¡»1118» f lM M W iN iN r tH H M li s a i l i a wwi M M IM I ¡ m s im ^0 M m m ^ mmm ^ J M ”~ ‘m & l siim m m M M a K i wmmtmmm n H M M H t Itjjiililt I^ P P iii M p M M m ¥m i g P |n n » ^ M M j | ^ «# M l i SMs ii s t i i | | i ^ 8 f c « ...W t f i s m m m i ^ H | !K W ^ i^ iW w w fP ® ® l M M M M n M fe mmmkmmmm " n « « W0M0M$$* SSSliS r*7•V , ' A » \ f » M iM i iM p H I § 8§ § i l S M iillfP « ¡ i SaaSMffl^ygr P i M M M N tfN M l is lw p if i a s s s s w ip iffll? # li# f^ l >oiairi?*o5r,'^v«v^: w m iM ^iM m m i i M ifit09^S M M MB figM M H MmH m mM m Bi ggB M ''P roviding our customers w ith quality service demands more from us than simply a surface response. W e go deeper. Take overline and liq u idity loans, for example. " A t MNB, we act decisively on all overline loan requests. But first, our qualified experienced loan specialists study the situation and apply fresh, innovative thinking in tailoring a loan package to your bank and your bor rower's individual needs." An opportunity to serve. "W e believe a loan request is an op portunity to serve — not only the bor rower but the respondent bank and the com m unity it serves. So, the close w orking relationship we create and maintain w ith each of our respondent banks and their overline customers assures continued growth, stability and quality in their loan portfolios and ours." If quality service is im portant to you, too, call 319 / 398 - 4320 , or call, toll free, 1- 800 - 332-5991 and talk to Jerry or M NB Correspondent Banker John E. Mangold, Stan R. Farmer or Terry M. Martin. Merchants National Bank Cedar Rapids, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member F.D.I.C. isi A BANKS OF IOWA BANK Give Us a Couple of M inutes.. .We’ll • Give You Years o f Great Service. At G. D. vanW agenen Company, w e offer ^Blanket Single Interest insurance and our Autom ated ^Insurance Monitoring System. Prompt, fair claims handling is |Our #1 priority and has been for over thirty years. So talk to Don Miller or Les Lukken about our collateral protection programs. Spend a few m om ents n o w . . . and relax for years to come. Don Miller Director of Marketing w £ .D . van W ag enen com pany 524 Plymouth Building 12 South Sixth Street Minneapolis, Minnesota 55402 ^ o n e : 612/333-2261 Les Lukken Field Representative fl MM !-------------------------------------------------------- - Contact Us for More Information. Mail to: G. D. vanWagenen Company 5 2 4 P ly m o u th B u ild in g 12 S o u th S ix th S tr e e t M in n e a p o lis , M in n e s o ta 5 5 4 0 2 Name Bank Address State__ Telephone https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 4 CIRRUS Selects Directors NORDWESTERN cmcw OCTOBER 1982 • 89th Year • No. 1429 MEMBER OF AUDIT BUREAU OF CIRCULATION MEMBER BANK MARKETING ASSOCIATION OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES ON THE COVER OFFICERS who will serve the Iowa Bankers Association during 1982-83, pictured on the front cover, were installed during the 96th annual convention in Des Moines last month. From left, they are: Immed. Past Pres.—Tom Dunlap, chmn. & pres., South Story Bank & Trust, Slater; Pres.—L.C. “ Bud” Pike, pres., Farmers Savings Bank, Grundy Center; Pres.-Elect.—Al Maser, chmn. & pres., First Natl., Le Mars, and pres., Lakes Natl., Arnolds Park; Russell W. Spearman, pres., Citizens Savings Bank, Sac City, and Neil Milner, exec, v.p., Des Moines. The con vention report and pictures starts on page 65. FEATURES 17 The deposit benefit CPAs tell how to consider this element in bank sale 23 Repos! Survey asks superintendents, bankers to define them 27 Over 300 attend Market Day Annual event in St. Joseph, Mo., features ag panel CONVENTION REPORTS 44 Montana Convention Report 65 Iowa Convention Report 86 Des Moines News DEPARTMENTS 6 8 13 29 33 34 42 Calendar Bank Promotions Corporate News Illinois Minnesota Twin Cities South Dakota 43 51 52 55 58 60 90 North Dakota Colorado Wyoming Nebraska Omaha Lincoln Advertisers Index NORTHWESTERN BANKER 306 15th Street, Des Moines, Iowa 50309 Phone (515) 244-8163 Publisher & Editor Associate Publisher Associate Editor Consultant Ben Haller, Jr. Steve Burch Becky McBurney Malcolm K. Freeland No. 1429 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa and at additional mailing office. POSTMASTER: Send all address changes to Northwestern Banker, 306 Fifteenth Street, Des Moines, Iowa 50309. Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Bruce A. Burchfield, a Chicago banker, has been appointed execu tive director of CIRRUS System, Inc., which was organized in June tew create a nationwide network of auto mated teller machines for a group of major regional banking organiza tions. CIRRUS will allow customers o ^ any of the participating banks to ac cess an ATM anywhere on the net work to make cash withdrawals from checking accounts. M r. B u rc h field was vice p re sid en t and manager of the electronic bank ing division of F irst N ational Bank of Chi cago. D u rin g nine years at First Chicago he was responsible for the development and manage ment of new electronic-based con sumer services, including electronic funds transfer equipment and the# bank's network of 90 ATMs, called Cash Station. Walter R. Miller, Jr., president of CIRRUS and senior vice president, consumer banking at N orthw es# Bancorporation, one of the founding members of the new corporation, said Mr. Burchfield will be chief operating officer for the network. His immediate responsibilities, M r# Miller said, will be to organize and staff an office, with headquarters in the Chicago area, direct implementa tion of the network system, which is expected to begin operating in A pri# of next year, and organize and direct a marketing program for CIRRUS services. Mr. Miller also announced that two additional regional banking# organizations have joined the original 10 as principal members. They are: United Virginia Bank, Richmonds Va., which has 171 branche™ throughout the state and operates an ATM network, called Self-Service Banking, in 10 metropolitan areas. Wachovia Bank & Trust Com^ pany, N.A., Winston Salem, N.C., which has 198 offices in 83 North Carolina cities and has a network of 109 ATMs, called Teller II. en it comes to customer preference; ther travelers cheques don’t stack up. In fact, they don’t even me close. In a recent national rvey, a majority of travelers ue users said they want ITO £rican Express® the next e they buy travelers cheques. W hich isn’t surprising en you consider that only American Express offers five spe cial services to help protect your customers’ vacation if their trav elers cheques are lost or stolen. We can help cancel lost credit cards, issue a temporary ID, and cash a personal check for up to $200. We even have a 24-Hour Travel Service Hotline if your customer needs help changing travel plans. And an Emergency Message Service if they want to send a message home. Combine all that with our 60,000 refund locations and nearly 1000 worldwide Travel Service Offices and you’ll see why most travelers cheque users feel American Express is the best brand. So don’t settle for less. A majority of travelers cheque users want American Express. And if you don’t have them, they may start asking around. American Express Travelers Cheques * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A M E R IC ftM l (exr r ess A recent study shows that 64% of travelers cheque users want to buy American Express the next time they buy travelers cheques. American Express Company 1982 6 r L Apr. 24-27, 1983—IBA Washington, D.C® Trip. June 19-24, 1983—Iowa School of Banking, University of Iowa, Iowa City. Convention Calendar ABA—American Bankers Association AIB—American Institute of Banking BAI —Bank Adminstration Institute BMA—Bank Marketing Association IBAA—Independent Bankers Association of America NABW—National Association of Bank Women, Inc. RMA—Robert Morris Associates National Conventions & S ch o o ls Oct. 16-20—ABA Annual Convention, At lanta. Oct. 24-27—BMA 67th Annual Convention, Phoenix Civic Plaza, Phoenix, Ariz. Oct. 31-Nov. 3—RMA 68th Annual Fall Con ference, Sheraton, Bal Harbour, Fla. Oct. 31-Nov. 3—IBAA Seminar Workshop on the One-Bank Holding Company, New Orleans, La. Nov. 7-10—ABA National Agricultural Bankers Conference, Marriott Hotel, Chicago. Nov. 14-17—BAI 58th National Convention, Hyatt Regency, Houston, Tex. Nov. 15-16—IBAA Spread Analysis and Asset/Liability Management Workshop, Dallas, Tex. Nov. 15-19—BMA Essentials of Bank Marketing School, Univ. of New Hamp shire, Durham. Jan. 23-26, 1983—ABA National Trust Con ference, Atlanta Hilton, Atlanta, Ga. Feb. 6-9, 1983—ABA National Compliance Conference, Omni International, Atlanta, Ga. Feb. 6-9, 1983—ABA Telecommunications and Financial Networks Workshop, Hyatt Orlando, Kissimmee, Fla. Feb. 6-18, 1983—ABA National Instalment Credit School, University of Oklahoma, Norman, Okla. Feb. 8-11, 1983—ABA National Insurance and Protection Conference of Financial Institutions, Sheraton Twin Towers, Orlando, Fla. Feb. 13-16, 1983—ABA Conference for Branch Administrators, Fairmont Hotel, Denver, Colo. Feb. 20-23, 1983—BAI Annual Conference on Bank Security, New Orleans, La. Feb. 22-25, 1983—ABA Bank Investments Conference, Hyatt Regency, Dallas, Tex. Mar. 23-27, 1983—IBAA 53rd Annual Con vention, Town and Country Hotel, San Diego, Calif. Apr. 17-27, 1983—ABA National Commer cial Lending School, University of Oklahoma, Norman, Okla. Apr. 24-27, 1983—IBAA 21st Seminar, Work shop on the One-Bank Holding Company, Camelback Inn, Phoenix, Ariz. May 8-10, 1983—Conference of State Bank Supervisors, Annual Convention, The Broadmoor, Colorado Springs, Colo. May 8-11, 1983—Association of Reserve City Bankers, Annual Meeting, Boca Raton Hotel, Boca Raton, Fla. May 8-13, 1983—ABA National Commercial Lending Graduate School, University of Oklahoma, Norman, Okla. May 28-June 2, 1983—ABA National AIB Leaders Conference, Sheraton Washing ton, Washington, D.C. Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 13-16, 1983—Central States Con ference, Jackson Lake Lodge, Wyo. Sept. 11-14, 1983—ABA National Personnel Conference, Hyatt Regency, Phoenix, Ariz. Sept. 18-21, 1983—NABW Annual Conven tion, Hyatt Regency, Dallas, Tex. Sept. 18-30, 1983—ABA National Instal ment Credit School, University of Okla homa, Norman, Okla. Sept. 20-23,1983—ABA National Bank Card Convention, Bonaventure, Los Angeles, Calif. State Conventions & S ch o o ls Illinois Nov. 14-18—AMBI Commercial Lending In stitute, Univ. of Illinois, Champaign. Jan. 24-27, 1983—AMBI Washington Trip, Washington, D.C. Feb. 23-24, 1983—IBA Marketing Confer ence, Marriott Pavillion Hotel, St. Louis. April 5-6, 1983—IBA Commercial Credit Conference, Ramada Inn, Champaign. Apr. 19-21, 1983—IBA Estate Planning Sem inars, Mount Vernon, III. May 4-5, 1983—IBA Consumer Credit Con ference, Holiday Inn, Decatur. May 23-31, 1983—IBA Bankers School, Southern Illinois University, Carbondale. June 9-11, 1983—IBA Annual Convention, Chicago Marriott Hotel. June 12-18, 1983—IBA Agricultural Lending School, Illinois State University, Normal. June 15-18, 1983—IBA Advanced Ag Lend ing Clinic, Illinois State University, Nor mal. June 19-25,1983—IBA Commercial Lending School, Illinois State University, Normal. July 10-22, 1983—AMBI Executive Graduate School of Banking, University of Illinois, Champaign, III. Iowa: Nov. 3-4—IBA Consumer Lending Con ference, Des Moines Hyatt. Nov. 30-Dec.1—IBA Strategic Planning Con ference, Des Moines. Jan. 17-18, 1983—IBA Electronic Funds Transfer Seminar, Des Moines Marriott. Feb. 7-9, 1983—IBA Marketing Conference, Des Moines Marriott. Feb. 11-12, 1983—IBA Group 1 Meeting, Marina Inn, Sioux City. Feb. 16-18, 1983—IBA State Legislature Trip/Leadership Conference, Des Moines Hyatt. Feb. 20-21, 1983—IBA Group 11 Meeting, Holiday Inn, Burlington. Feb. 23-25, 1983—IBA Midwinter Manage ment Conference, Colo. Mar. 14-16, 1983—IBA Ag Credit Confer ence, Scheman Center, Ames. Mar. 29-30, 1983—IBA Chief Executive Of ficer Conference, Des Moines. ACORN Registers "Accepted Sale Registers by Bank Clerks Everywhere" ror in lo r m a tio n w r i te THE ACORN PRINTING CO. Oakland, Iowa Minnesota: Jan. 12-13, 1983—MBA Personnel Confe® enee. Feb. 8-9, 1983—MBA Senior Bank Manage ment Conference. Mar. 1-3, 1983—MBA Marketing Work shops. Mar. 15-17, 1983—MBA Agricultural W o r® shops. Apr. 12-14,1983—MBA Lending Workshops. May 2-5, 1983—MBA Washington Legisla tive Conference, Washington, D.C. May 9-11, 1983—MBA Investment Work shops. ® June 20-21,1983—MBA Annual Convention, Hyatt Regency, Minneapolis. June 26-July 1, 1983—Minnesota School of Banking, St. Olaf, Northfield. July 24-29, 1983—Midwest Banking In stitute, University of Minnesota, Morris.® Nebraska: Nov. 4-5—Nebraska Independent Bankers Association Fall Round-up, Midtown Holiday Inn, Grand Island. Nov. 17-18—NBA Bank Management C o r^ ference, Holiday Inn, Kearney. Jan. 12-13, 1983—NBA General Lending Conference, Holiday Inn, Kearney. Feb. 5-10,1983—NBA Bank Presidents Con ference, Marco Island, Fla. Feb. 16-17, 1983—NBA Personnel Cogj| ference, Kearney. Feb. 27-Mar. 4, 1983—NBA Basic School of Banking, Regency West, Omaha. Mar. 13-18,1983—NBA Intermediate School of Banking, Regency West, Omaha. Mar. 30-31, 1983—NBA Ag Outlook C o r^ ference, Kearney. Apr. 10-16, 1983—ABA Leadership Con ference, Greenbriar. Apr. 24-29, 1983—ABA Commercial Lend ing, Omaha Regency West. May 5-7, 1983—NBA Annual C on ven tion Holiday Inn, Omaha. June 11-14, 1983—NBA Washington Visit. July 10-15, 1983—NBA Trust School, Regen cy West, Omaha. North Dakota: Oct. 26-27—NDBA Bank Women’s C on^ ference, Jamestown. Nov. 17-18—NDBA Consumer Credit Con ference, Mandan. Jan. 26-27, 1983—NDBA Bank Management Conference, Kirkwood Motor Inn, B i ^ marck. ^ Feb. 16-18, 1983—Bank of North Dakota Mid-Winter Break, Bismarck. Mar. 16-17, 1983—NDBA Agricultural Credit Conference, Fargo. Apr. 26-28, 1983—NDBA Washington L e g i^ lative and Administrative Conference, Hyatt Regency on Capitol Hill. May 23-24, 1983—NDBA 98th Annual Con vention, Civic Auditorium, Grand Forks. June 5-10, 1983—NDBA North Dakota School of Banking, Grand Forks. ^ South Dakota: Oct. 27-28—SDBA Economics Seminar for Young Adults, Holiday Inn, Mitchell. Wyoming: Nov. 12-13—WBA Chief Executive Officer? Conference, Ramada Inn, Casper. ' Surefire wire. Money management. It’s a m atter of transferring the right amount to the right account at the right time. It’s one of the things we do best at Commerce Bank. The money management specialists at Commerce deal _________________________ in a large volume of transfers averaging about one bMon dollars a day. We have handled as many as one thousand li p iiiii transfers in a single day. ■■■■■■■■■■■■■■■■■■■■■■■■■ ■iffl l ■■■■■■■ SS38S8SS(¡Sb! í .««. In a business where mil 888888888888888888888 í lions of dollars change hands ■■■if each hour, you can’t afford a ¡ ¡ ¡ ¡ j ìiiiif " " f fill bank that makes mistakes. In some cases we’ll follow a wire transfer up with a phone call to make sure that funds have been deposited to the proper account. And, if there is a problem, it is resolved quickly, usually within the same business day. Fast, accurate service from friendly professionals. .■ ■ ■ n ÍÉ ..É U B U .Ill.u 8 .n .Í.S .Í8 Í...Ííu Ín B B B É M Í w e th in k it’ s th e # Commerce Bank surefire way to keep our correspondents happy. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of Kansas CityN A “ (816) 234-2000 • 10th & Walnut • Kansas City, MO 64141 Northwestern Banker, October, 1982 8 r Bank Promotions ROMOTIONS and other announ P cements have been made by the following banks and holding com DAKTRONICS panies: Centerre Bank, St. Louis: Barbara Williamson, vice president-cash management, has been elected chair man of BankLink’s management ad visory group. BankLink is a compu terized corporate cash management system designed to facilitate infor mation flow to and from bank cus tomers. It is comprised of 56 re gional banks and is the largest com puterized cash management net work of its kind, according to Ms. Williamson. Also at Centerre, the promotions of two officers and appointments of two new officers were announced by Clarence C. Barksdale, chairman and chief executive officer. Michael B. Atkin, formerly bond investment officer, and Pamela R. Boggeman, formerly commercial banking of ficer, were named assistant vice presidents. Gail Fleming was ap pointed word processing officer and Norman Mueller was named com mercial banking officer. Commerce Bank of Kansas City, N.A., Kansas City: Kenneth A. Niel sen, executive vice president of Farmland Industries, Inc., has been elected to the board of directors of the bank. Richard C. Green, Jr., executive vice president and director of the Missouri Public Service Company, and J. Eric Helsing, senior vice president and chief operating officer of the western home office of Mutual Benefit Life, have been elected to the bank’s board as advisory direc tors. The election of three new officers at Commerce Bank also have been announced. They are: Merna M. Sol- TIME & TEMPERATURE Our engineers will custom design a display to enhance the architec ture of your building. Color draw ing and quote at no cost. Call or write today - Hull, Iowa Custom designed Elmhurst, Illinois Attached display Warrensburg, Missouri Attached display Eagle Grove, Iowa Custom market report D DAKTRONICS, INC. DAKTRONICS, INC. P.O. Box 128 Brookings, SD 57006 (605)692-6145 Toll Free 800/843-9879 (exc. AK, HI & SD) Telex 29-5013 DAKTRONCS BKNG Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J omon to trust officer and continuing to serve as trust administrator in the personal tru st department; Deborah A. Morris to international banking officer in the international department and continuing to serv® as a foreign exchange trader, and Dean Valentine to consumer bank ing officer and continuing to serve as assistant manager of the instah ment loan department. ® Ms. Solomon holds BA and MBA in finance degrees from the Univer sity of Missouri at Kansas City. She joined the trust department in 1 9 7 ^ Ms. Morris is completing her de gree in business administration at the University of Missouri at Kan sas City. She joined Commerce’s in ternational department in 1973. ® Mr. Valentine earned an associate degree in business from Fairbury College in Fairbury, Nebr., and has completed banking courses at th ^ Advanced School of Banking an® Commercial Lending School at the University of Nebraska-Lincoln. He joined Commercial earlier this year. C o n tin en ta l I llin o is Corp4|i Chicago: Changes in executive man agement, officer-level staff, as well as new personnel assignments fol lowing the completion by manage ment of the first phase of a revie\# process centered on the Penn Square Bank of Oklahoma City failure have been announced. Roger M. Ander son, chairman and chief executive officer, said that after an “ex€> haustive review of the conduct of personnel relating to the Penn Square Bank situation...our inves tigation has shown that strong mea sures must be taken to reinforc® both the discipline and the manage ment structure of Continental and our actions are responsive to this re quirement.” The board approved these recommendations: ® John R. Lytle, vice president, who headed the mid-continent division of the oil and gas group, the unit prin cipally involved in the Penn Square Bank relationship, has been te i^ minated. John E. Porta, executive vice president, has been named head of the special industries departm ent succeeding Gerald K. Bergman, e ^ ecutive vice president, who has re signed. Mr. Porta will continue to head the multinational banking de partment. _ Garry J. Scheuring, senior vie® president, has been named head of 9 The check who cam e in from the cold k-'Y '' W hen people ask how good our check processing is, w e tell them the story of the check w ho cam e in from the cold: T h e check arrived at 6 a.m. Continental B an k couriers m et his flight. H e h a d n ’t expected that. He w as still half-frozen from his ride in the plane’s cargo hold. H e th ought h e’d have tim e to relax, w arm up. B u t no. T h ey w hisked him by heli copter to the processing center. Funny, he h a d n ’t expected to be cleared till late morning. No one had time for small talk. T h e pace they w orked at w as dizzying. In the space of an hour, he and over one hu n d red thousand other checks had been captured, microfilmed, endorsed, sorted and sent on their way. A nd the kicker? T h e whole thing happened so fast he never had tim e to thaw out. It w as as buttoned-up an organization as h e ’d ever come across. A nd h e ’d come across plenty. H e’d come in cold and skeptiS cal. H e left m ighty imv-'Opressed. ^ If your cash letter’s tu rn around tim e is less th an impressive, call R obert C. Vasko at (312) 828-4046. G et the heartw arm ing facts about how good our tu rn around is. H ow good yours could be. © CONTINENTAL BANK 125th ANNIVERSARY C o n tin e n ta l Illinois N atio n a l B a n k an d T ru s t C o m p a n y of C h ic ag o , 231 S o u th L aS alle S tre e t, C h ic ag o , Illinois 60693 A tla n ta • C h ic ag o • C le v elan d • D allas • D e n v e r • D etroit H o u sto n • Los A n g e le s • M in n eap o lis • N e w York S an F ra n c is c o • S eattle • W h ite P la in s. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 10 the oil and gas group of special in dustries. He succeeds John A. Red ding, senior vice president, who is retiring. Mr. Scheuring previously was head of the Chicago and Toron to division of multinational banking, which will be headed now by George L. Schueppert, senior vice president, who is returning to Chicago from the bank’s Paris office. Thomas J. O’Bryant, vice presi dent, will head the mid-continent division of the oil and gas group, which was headed by Mr. Lytle. Continental also has accepted the resignation of Patrick M. Goy, vice president of the mid-continent divi sion of the oil and gas group. William D. Plechaty, executive vice president and head of personal banking services, who was the bank’s auditor from 1969 to 1973, has been named auditor, succeeding Edwin J. Hlavka, senior vice presi dent, who will move to a new assign ment within the bank. Joel J. Crab tree, senior vice president, will serve as acting head of personal banking services. Richard C. Rastetter, senior vice president and head of the loan administration division, will retire and loan administration will report to Mr. Plechaty. The domestic operating units of general banking services, which are headed by Joseph P. Coriaci, senior vice president, have been reassigned from George R. Baker, executive vice president, to Gail M. Melick, ex ecutive vice president in charge of operations and management ser vices. Mr. Anderson said the first phase review revealed the desirability of improving certain control mechan isms. “The second phase of our review,’’ he said, “will concentrate on an analysis of our lending pol icies, practices and procedures.” First National Bank of Chicago: To meet continued strong demand for insured student loans, First Na tional recently obtained $5.2 million in funds for making additional stu dent loans by selling existing loans from its portfolio to the Student Loan Marketing Association (Sallie Mae) of Washington, D.C. Bob Zagozdon, manager of stu dent loans for the bank, said “First National has provided more than $50 million in student loans to area students since entering the Guar anteed Student Loan Program in 1968.” The loans made by First Na Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tional are insured by the Illinois Guaranteed Student Loan Program, the fourth largest insurer of student loans in the country. First National Bank of Kansas Ci ty: Ten officer promotions and the election of one new officer in the trust and investment division have been announced. Promoted to senior vice pres idents are Clark C. Bradshaw, pro bate estates staff; Anita B. Butler, who coordinates trust new business development; Thomas A. Foster, coordinator of trust new business development for First National and 23 other CharterCorp affiliate banks, and Steven N. Palmer, trust officer. sistant trust officer. National Boulevard Bank, Chi cago: Three promotions were an nounced in the commercial banking departm ent. Brendan Heintz was advanced to vice president of Division B, Alan Fine became vice p re s id e n t of Division C, and Tom Panos was named assistant vice president in b . HEINTZ i Division B. A.B. FINE T.A. FOSTER S.N. PALMER Named vice president are Lyle W. Brizendine, manager of the pension and profit sharing section, and Gary G. Stewart, currently in charge of overall coordination and mainten ance of trust operations functions and the administration of trust per sonnel responsibilities. L.W. BRIZENDINE G.G. STEWART New trust officers are James H. Conley, James. D. Cullen, Jr., Mi chael H. Gerhold and John E. Pihlblad. Kathryn Bingham was elected as T.D. PANOS Mr. Heintz received his BA from Loras College in Dubuque, la., an d ^ has attended various b an k in g ^ schools, joining the bank after graduation from Loras. After train ing in various departments he has been assistant vice president in ^ Division B since 1979. Mr. Pine received his BS degree from Northern Illinois University in 1971 and attended various banking schools. He began his banking car-^ eer at Capitol Bank in Chicago, later was an assistant vice president in lending at Amalgamated Trust & Savings Bank in Chicago, and most recently was vice president of lend- 0 ing at the Bank of Addison before joining National Boulevard last July. Mr. Panos received his BSC de gree from DePaul University and his MBA degree from DePaul’s G rad-|| uate School of Business. Prior to joining National Boulevard Bank he was assistant vice president at Ford City Bank and Trust Company. Pri or to that he worked at State Bank 0 of Countryside and Continental Bank of Chicago. Valley National Bank, Phoenix, Ariz.: Gilbert F. Bradley, 62, retired September 1 as chairman of the bank after serving that institution 45 years. He will continue as a mem ber of the bank board. Mr. Bradley announced the fol lowing management changes: Roger A. Lyon, 55, president of ABA COMMUNITY BANKER 1 A series of techniques and technologies for the competitive community banker Stay Com petitive Limited Offer— Good Through November 15, 1982 W it h ... Subscribe by November 15, 1982, and take advantage of special introductory sixmonth charter subscription. Competitech®— a totally new subscription information series to help small-tomedium sized banks imple ment effective decisions in all areas of banking. Regular Subscription Member $195.00 Non-member $275.00 -Month Charter Subscription Member $ 99.00 Non-member $140.00 Why Competitech®— Competitech® was de veloped by ABA at the re quest of member community bank CEOs as an aid to help you take quick action regard ing areas that affect overall bank profitability. Regular subscription includes 12 monthly issues, plus free bonus issues. Charter subscription includes six monthly issues. Payment must accompany your Charter Subscription order. The first edition of Competitech® will be available in October. Your subscription to Competitech® comes complete with a separate binder to help you keep your monthly issues together under one cover as an easily referenced management re source. Why You Need Competi tech®— Each monthly issue of Competitech® will take you directly to the core of a key management area to give you new decision-making in sight. Plus, a regular subscription to Competitech® includes special bonus issues covering timely items such as new DIDC instruments, new regula tions, and fast-breaking issues. A joint product of ABA & the State Bankers Associations. COMPEÏITiCH Date_______________________ AMERICAN BANKERS ASSOCIATION ORDER FORM Mail To: Accounting Department • American Bankers Association • 1120 Connecticut Ave., N.W. • Washington, DC 20036 Q U A N T IT Y CATALOG N U M B E R One 021099 T ITLE OF PUB LIC A TIO N TOTAL U N IT CO ST Yes! Please enter my subscription to ABA’s Competitech® magazine for one year (12 issues) Member $195.00 Non-member $275.00 $ Yes! Please enter my 6-month charter subscription to ABA’s Competitech® (6 issues). My payment is enclosed. $ 99.00* $140.00* $ *To qualify for the six-month charter subscription, payment must accompany this order form and your order must be postmarked by November 15, 1982. GRAND TOTAL $ Name. Title____________________________________________ Bank/firm_______________________________________ Street Address___________________________________ City___________________________State_________ Zip. I_________________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis □ Check enclosed— nonmembers must prepay. □ Payment enclosed fo r____6 month subscription;____ one year subscription. (Check one) □ Bill me. Order forms not accompanied by payment will be billed for a one-year subscription. NB 12 Valley Bank since April, 1976, and president of the parent Valley Na tional Corporation since its forma tion in July, 1981, was elected chair man and chief executive officer of the bank and the holding company, succeeding Mr. Bradley. Howard C. McCrady, 50, who has been executive vice president of the bank and VNC, has been elected president of VNC and vice chairman of Valley Bank. He continues as the bank’s chief financial officer. Leonard W. Huck, 59, a 25-year veteran with Valley, who has been executive vice president in charge of administration for the bank’s more than 200 offices, has been elected president of Valley National Bank. Both Mr. McCrady and Mr. Huck will become VNC directors. Wells Fargo Bank, San Francisco: Michael D. Jonas has been elected a vice president and appointed direc tor of marketing resources in the marketing, communications and public relations group. Previously, he served as an assistant vice presi dent in the bank’s consumer credit division, where he managed the au tomotive portfolio. His professional experience includes a variety of posi tions in both marketing and law. Glenn P. Davis, midwestern reg ional manager of Wells Fargo Leas ing Corporation, Chicago, has been named a vice president. Before join ing the company in June this year he was vice president and western reg ional manager at Continental Il linois Leasing Corporation. Zions First National Bank, Salt Lake City: William W. Hall has been appointed vice p re sid en t and manager of the c o rre sp o n d e n t services depart ment in the head office, according to Roy W. Sim mons, chairman. Prior to his ap pointment, Mr. W.W. HALL Hall was the financial services officer with the Federal Reserve Bank of San Fran cisco Salt Lake branch. He began his banking career with First National Bank of Logan in 1968 and was vice president and marketing officer at the same time the bank merged with Zions First National. Banker, October, 1982 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Competitechs’s Goal is Productivity HAT do controlling bankruptcy W losses, repricing bank services, measuring staff productivity and us ing financial futures as an asset/ liability management tool all have in common? They can each contribute to a bank’s bottom line, and they will each be explained in detail in Competitech, a new monthly American Bankers Association subscription series providing information and techniques on key banking activ ities. “Competitech is designed to pro vide the management of small-to medium-sized banks with a wealth of operational know-how to improve the productivity of their institu tions,” stated Charles Bruning, chairman of the ABA Community Banking Leaders Council and presi dent of the Edgewood Bank, Coun tryside, 111. “Each volume will be a comprehensive and clear one-stop in struction and reference piece, packed with useful, implementable ideas.” As many as 33 state bankers asso ciations already have agreed to co sponsor Competitech. “What bank ers are telling us they want are new techniques and technology, and th a t’s what the focus of Compet itech will be,” explained Frank E. Brawner, chairman of ABA’s State Association Division and executive vice president of the Oregon Bank ers Association. Initially Competitech is offered on either a six-month or 12 -month basis. Subscribers will receive their first issue, on measuring staff pro ductivity, in October. The cost of the six-month charter subscription if $99 for ABA members and $140 for nonmembers, and orders must be pre-paid. The regular, 12 -month sub scription costs $195 for members and $275 for nonmembers. Orders, accompanied by the cata log number 021099, should be mailed to Order Processing, American Bankers Association, 1120 Connec ticut Ave., NW, Washington, D.C. 20036. Additional information is available from Tom Schrank, ABA, (202) 467-6657. • Post Office Square, with 10,000 square feet of space on the 38th floor. Marketing Tip of the Month Giveaways are often confined to items that are used up or thrown out or tucked in a pocket or purse to be forgotten until cleaning day. How about something a ban can offer that will provide a useful service, generate goodwill, and get free publicity for a bank to boot? As part of its “ Customer Appreciation Day” promotion, an Ohio bank in a mid-size city offered holders of its ATM card “ Free# bus rides on the bank.” In lieu of payment, all the card holder had to do was show the card to the bus driver, who used a paper ticket to keep tabs on the number of passengers taking advantage of the offer. 4) Granted, the bus company had to keep track of the number of free riders and bill the bank; but in return, the public transpor tation system had nearly 3,000 additional passengers that day, who potentially could become regular riders. # The bank promoted the event by creating a full-page, two-color ad stressing that public transportation could play an impor tant role in cutting fuel consumption. One result was that the bank got generous free press coverage of the event. # The program cost the bank less than $3,000 for the bus fares, plus expense for the newspaper ads...but provided a memor able freebie for many of its customers. For more information, contact Sandra Carcione, Division of Communications, Bank Marketing Association, 309 West Washington Street, Chicago, Illinois 60606. Phone: 312/782-1442. Future Convention Dates For ABA and IBAA Listed m Dates for future annual conven tions of the American Bankers Association and the Independent Bankers Association of America # have been confirmed for the follow ing years: ABA 1983— October 8 -1 2 , Honolulu. ^ 1984— October 20-24, New York ® City. 1985— October 19-23, New Orleans. IBAA 1983— March 23-27, Town & Country Hotel, San Diego. 1984— March 25-29, Marriott, New Orleans. 1985— M arch 6-10, Convention Center, San Antonio. # 1986— March 9-13, Hilton, Las Boston Regional Office Vegas. Continental Illinois National 1987— March 15-19, Hilton, San Francisco. Bank and Trust Company of Chi cago last month opened a New Eng 1988— M arch 13-17, S h e r a to n # land regional office in Boston at One Waikiki, Honolulu. 13 including Xerox. He attended the University of Michigan and holds a BA degree from the University of North Carolina in Chapel Hill, where he also completed a year of graduate study. ROMOTIONS and other announ Cummins-Allison Corp., Mt. Pro Swords Associates, Inc., Kansas cements have been made by the spect, 111.: Administrative offices City, Mo.: Edward V. Kerrigan has following firms: and manufacturing facilities were joined the firm as an associate con ^ Associates Corporation of North relocated recently to a newly con sultant, with primary responsibil w America, Dallas: Three vice pres structed headquarters here in mid ities in the bank sale and acquisition idents have been elected in the finan summer. The new facility includes division. He was formerly president cial department. They are Corbin E. 15,000 square feet of office space and chief executive officer of the Bolinger and I.P. Sicotte, Jr., who and 45,000 square feet of manufac- $105 million Brotherhood State ^manages the company’s financial turing/warehouse space and is de Bank in Kansas City, Kans., and ^departm ent offices in Dallas and signed to accommodate 40,000 most recently was vice chairman San Francisco, respectively, and square feet of expansion. It will in and an organizer of the First Citi crease the company’s manufactur Esther A. Lord. bank of Olathe, Kans. His 25-year Mr. Bolinger and Mr. Sicotte are ing capabilities for its document banking career includes serving as ^responsible for sales of commercial security and control and automated vice president at Commerce Bank in paper and other debt instruments, money systems product lines. Kansas City from 1966 to 1971 in as well as bank and investor rela Diebold Incorporated, Canton, charge of the retail services division. tions. Ohio: A subsidiary of NV Philips It was announced that Roland D. Ms. Lord is responsible for ad- Gloeilampenfabrieken of Eindhov Graham has joined Swords Associ ^m inistrative functions in the finan en, The Netherlands, will begin ates as an associate consultant. His cial department, including cash marketing Diebold automatic teller duties will be in regulatory and leg management, systems development, machines worldwide. Philips Data islative services for the company. planning, reporting and analysis for Systems, which has been successful He is a former senior vice president the finance department. ly marketing Diebold TABS ATMs with the Federal Reserve Bank of 4I| Michael H. Garton was elected in Canada, The United Kingdom, Minneapolis where he served as assistant vice president. He is New Zealand, and Asia under indi legal counsel and administrative of manager of the insurance invest vidual country-by-country agree ficer over the bank’s lending and ment portfolio. Appointed assistant ments, now will market and support personnel departments, as well as treasurers are Sandra S. Holmes, the 9000 Series ATMs in all coun bank and bank holding company ex ^responsible for banking relations, tries and territories outside the amination and supervision in the and Daniel P. Slowinske, Chicago United States except Puerto Rico Ninth District. Since 1979 he has financial office. and Mexico, where Diebold has es been vice president and general BarclaysAmerican/Business Cred tablished marketing and support counsel for the 19-bank, $3.4 billion deposit First Wisconsin Corporation it, Inc., Chicago: Matthew J. Sop- organizations. in Milwaukee. He will continue to *chyk has been appointed business The Mosler Safe Company, Ham live in Milwaukee while representing development officer in the midwest Ohio: Joe McDonald, senior Swords Associates in the upper marketing center here. He will struc ilton, vice president/sales, installation and midwest. ture financial programs for prospec service, announ tiv e clients throughout the com ces American of Chicago the recent p a n y ’s midwest region, with special p ro m o tio n of Purchases Two Banks responsibilities in Illinois and Mis Robert (Chris) American National Bank and souri. He has a BA degree in finance Jenkins to vice Trust Company of Chicago has an from Western Illinois University. president/genernounced the completion of its pur ^Before joining Barclays American he al manager for chase of a substantial interest in two Wwas a sales representative for West the company’s Chicago suburban banks. inghouse Credit Corporation indus eastern zone. He The banks, First Arlington Na trial equipment group. will relocate in tional Bank, Arlington Heights, Collateral Control Corporation, the Boston area. (previously announced) and First R. JENKINS •S t. Paul: Gerard (Jerry) Paez has Mr. Jenkins will American Bank of Bensenville were joined the company as a marketing be responsible for the administra purchased from a group of investors representative in the Chicago re tion of all activities related to sales, headed by Howard McKee. gional office in Mt. Prospect, 111. service and installation of Mosler The two banks have a combined Previously, he was a senior account products to financial institutions asset total of over $200 million. Mr. •ixecutive for Lanier Corporation, and commercial businesses in the Addington also said that no change serving major accounts in the Chi eastern zone. in the management structure or the cago area. Prior to that he founded Prior to this promotion, he was personnel at the banks is antici and operated his own construction Mosler’s Gulf States regional sales pated. company. Mr. Paez holds a BS de manager in Tampa, Fla. He has held Details of the purchase were un c r e e from Northern Illinois Univer sales and account management posi disclosed and regulatory approval is sity. tions with several other companies, pending. •r L Corporate P https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 14 Banco Reveals Proposed Name Change ORTHWEST Bancorporation and N all of its banks and financial services companies will adopt a com mon identity in 1983 if a plan out lined last month at a management conference in Minneapolis receives the expected necessary approvals. Managing of ficers of the com panies that com prise Northwest Bancorporation, a $16 billion di versified bank ing and financial services organi zation, were giv en details of the plan for chang J.W. MORRISON ing the name of the parent and all associated companies. If the action is approved by share holders and state and federal gov ernment regulatory agencies, North west Bancorporation will change its name to Norwest Corporation, and the more than 120 corporate entities associated with it will change their names to Norwest, with various de scriptive terminology (e.g. Norwest Banks). John W. Morrison, Northwest Bancorporation chairman and chief executive officer, said the new cor porate identity will go into effect following the annual meeting of shareholders in April, 1983, if the proposal receives shareholders aprpoval. The current New York Stock Ex change ticker symbol (NOB) is not expected to be changed. Northwest Bancorporation owns 86 banks, five trust companies, six financial services companies, in cluding Dial Corporation, a con sumer finance company acquired ef fective August 31 this year, and several other companies that pro vide support services to the corpora tion. Some of the banks and some of the financial services companies in turn have subsidiaries whose names also will change. Northwest Bancorporation and its associated companies have opera tions in more than 40 states and in Mexico, England and Luxembourg. Mr. Morrison explained that a new corporate identity “will enable us to reposition our organization in the financial marketplace as a strong national force.” Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Morrison said that the old and the new names are similar but sufficiently different to enable the company to convey that it is preser ving past strengths while at the same time adjusting to a more com petitive marketplace. He said a change in identification also will facilitate a change in the a t titude of employees. “More and more they will view themselves as working for one large financial ser vices organization and a company that is moving toward synergism be tween our banks and our financial services companies.” Mr. Morrison said the new iden tity —with one name and one system of graphic identification—“ will enable us to significantly escalate the level of awareness, recognition and understanding of our organiza tion and its capabilities, and to assert a much stronger presence in the marketplace. It also will sim plify the organization’s internal practices and procedures, resulting in significant cost savings.” Northwest Bancorporation was founded in 1929 as a bank holding company, initially with three banks — in Minneapolis, Mason City, la., and Fargo, N.D. The company adopted the word Banco as a unifying symbol in 1972 but most of the affiliated organiza tions are best known by their in dividual corporate names. The affiliate banks today include 34 Northwestern banks, 18 First Northwestern banks, 18 First Na tional banks, nine in which North western is preceded by another number or the name of a geographic location, e.g. Fifth Northwestern, Camden Northwestern, Dakota North western, and eight with such other names as Atlantic State Bank, Betten dorf Bank and Trust Company, Center Bank, Iowa-Des Moines National Bank, Midland National Bank, Securi ty State Bank, State Bank of Worth ington and United States National Bank. Northwest Bancorporation’s best known financial services companies, besides Dial, are: Banco Mortgage Company, the se cond largest mortgage banking com pany in the nation; Northwest Growth Fund, one of the largest, oldest and most successful small business invest ment companies (SBICs) in the coun- try; Banco Financial Corporation, a i# asset-based lending subsidiary, and Lease Northwest, a leasing finance company with marketing emphasis in agriculture, construction, printing and transportation. ® Another subsidiary, Northwest Computer Services, Inc., provides in formation and check processing func tions for 128 company-related facilities and for more than 500 corresponden* bank customers. Northwest Bancorporation’s asso ciated banks and financial services companies operate out of a total oL more than 800 locations. * Signs at all of those locations will be replaced, as will all other graphic forms that display current names. Affected by the name changes wilL be the combination sign and weather information weatherballs that have become familiar fixtures on many Northwestern banks in the Twin Cities and Omaha areas. The weatherball^ are expected to be deactivated when new signs are installed. □ Heads Strategic Planning At AMBI Graduate School <9 Lawrence R. Chapman, Centerre Bank senior vice president for stra tegic planning and external affairs, has been named curriculum director^ strategic planning for the Executiv * Graduate School of Banking, spon sored by the Associates of Modern Banking in Illinois and held at the University of Illinois, Champaign^ Urbana. Mr. Chapman will develop and conduct a program of study in stra tegic planning for bankers from the bi-state area who are interested iijp advancing to senior bank manage ment positions. Launch Gold Card Program The B ank of Ire la n d an (9 American Express Company have announced an agreement to launch the first Irish Pound Gold Card in September. The Gold Card is designed to m ee* the needs of higher income earners, by offering a variety of specially tailored financial services in addi tion to those available to Americam Express Green Cardmembers. * This agreement brings to three the total number of European coun tries where the American Express Gold Card is available. It is a ls ^ available in the United Kingdonr and Italy. •Nebraska Firm to Spend $1,750,000 on Microcomputer Software for Banks is believed to be the lar IeverNgestWHAT limited partnership funding for vertical market microcom puter software products, HTS Part ners, Ltd, Lincoln, has announced completion of a $1,750,000 offering ^ to develop 16 additional AgDisk and BankDisk microcomputer software products. First Mid America, Inc. of Lin coln was the sponsoring dealer for ® the offering, which sold-out. Harris Laboratories, Inc. will serve as the general partner. AgDisk products will be developed and marketed by HTS (Harris Technical Systems - an •affiliate of Harris Laboratories, Inc.) while BankDisk will be the respon sibility of FSI (Financial Systems, Inc. - a subsidiary of Harris Labor_atories, Inc.) • “AgDisk is already the leading microcomputer software name in the huge agricultural marketplace and BankDisk occupies the same leader s h i p position in financial institu t i o n s , ” commented Mike Edwards, senior vice president and general counsel for First Mid America. The specific AgDisk products to ^ b e developed by the partnership in clude: Swine Recordkeeping, Crop Recordkeeping, Planning Calendar, Dairy Recordkeeping, and Cattle Recordkeeping. Four additional ^A gD isk products developed for the partnership will be “ extension modules” for the AgDisk Farm Ac counting Package which is already on the market. The extension mod^u les include: Budget Projections, Cash Flow, Grain/Livestock Inven tory, and Payroll. The extensive number of AgDisk products already on the market to - d a y will be joined by the first of these new products in February, 1983. The final AgDisk partnership product is scheduled for completion in July, 1984. # The specific BankDisk products to be developed by the partnership include: Asset/Liability Manage ment, Safety Deposit Accounting, Installment Lending, Credit AnalIfysis, Repo Contracts, Fixed Asset Accounting, and General Financial Analysis. BankDisk products already on the market will be joined by the first Oof these new products during No vember of 1982. The final BankDisk https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis partnership product is scheduled for completion in December, 1983. Introduce New Credit Card Authorization System Venture Stores and Mercantile Trust Company, N.A., St. Louis, have reached agreement for the in troduction of a new credit card au thorization system. The new service began in September. The 44 Venture Stores are located in Illinois, Missouri, Indiana, Iowa and Kan sas. “This new system allows us to provide our customers additional convenience and faster service by eliminating the time consuming tele phone calls for credit authorization and the physical search of the list of lost or stolen MasterCard or Visa bank credit cards,” said Philip Otto, Executive Vice President, Venture Stores. Microcomputer Conference Is Slated for Dallas The first major technical con ference addressing the use of micro computers by financial institutions is scheduled to be conducted by Bank Administration Institute No vember 2-5 in Dallas. More than 500 bankers are ex pected to attend the three-day meeting, MicroScape ’82, which will 15 feature 50 concurrent sessions and an extensive exhibit area. “Microcomputers will be one of the key factors contributing to bank profitability,” said L. Robert Connely, program co-chairman, and senior vice president and cashier, Union Bank, Los Angeles. “This confer ence will provide a comprehensive basis for evaluating rapidly chang ing microcomputer technology.” Robert Long, editor of Micro banker and president of Long, Inc., Schaumburg, 111., also serves as cochairman. Concurrent program tracks will focus on the use of microcomputers in the areas of asset/liability plan ning; internal accounting and con trol; education, training and com munications; financial services and counseling; and operational and management decision aids. Other sessions will analyze mi crocomputer software and hard ware, a national information inter change and information sharing. Registration fees for Bank Ad ministration Institute’s microcom puter conference, November 2-5, at Loew’s Anatole Hotel, Dallas, are $445 for Institute members and $565 for non-member banks. Special dis counts are available for multiple registrations from the same finan cial institution. For further information, contact Jim Perkins or Debra Martin, Bank Administration Institute, 60 Gould Center, Rolling Meadows, 111. 60008, 312/228-6200. 44SUREWE'RE IN DEKE BUT WE’REGROWING LIKE CRAZYW If your bank is hearing comments like this, give FBS Business Credit a call. We can help. ♦ FBS Business Credit Member First Bank System FBS Business Credit, Inc./200 Soo Line Building, P.O. Box 522 Minneapolis, MN 55480/(612) 370-4990 © 1982 First Bank System, Inc. Northwestern Banker, October, 1982 16 HowTheFirstTkm makesFirstCMccm yourpartnerinKankakee,KansasCity andKalamazoo. When you need the support of a money-center bank, think first of First Chicago. Why? Because we’ll provide widmranging services and fast decisive responses. Because we offer you a true partnership that supports instead of supplants. And because we give you the services of The First Team to deliver all our resources when and where you need them. Tom King, Vice President, explains: “ Even/ member of The First Team, from your relationship manager to the specialist in key financial areas, respects your position in the marketplace. We make it our business to back up your relation ships w ith strong, state-of-the-art products and services.” Jack Clark, Vice President: “ First Chicago has created a new area called Credit Marketing Services which helps our relationship managers provide a streamlined credit process and fast response. Anytime.” Adds Don Boreman, Assistant Vice President: “ Our relationship managers know your region thoroughly. Being based in Chicago, they provide the vital link that brings the expertise of all other members of The First Team directly to you and your customers!’ Get The First Team working with you in Kankakee, Kansas City, Kalamazoo, wherever you are. Call Tom, Jack, or Don at (312) 732-4100. FIRST CHICAGO The First National Bank of Chicago THE FIRST TEAM © 1982 The First National Bank of Chicago • Member FD.I.C. Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17 How to consider... DEP OS IT TICKET CURRENCY COIN DATE..... ... .......................... ............... 19_....— Checks and other items are received for deposit subject to the provisions of the Uniform Commercial Code or any applicable collection agreement. CHECKS .33-22 ust S IN G L Y SE S UR E EACH I T E M IS ENDORSED The «SE O T H E R SIDE F O R A D D I T I O N A L L I STI NG «:o?aooQ Eeai: lühoohs»9 ...in acquiring a bank Written Exclusively for T he N orthwestern B anker by # RANDALL A. HAMILTON and ROBERT V. McMAHON Partner, Des Moines Manager, Chicago Peat, Marwick, Mitchell & Co. HE ECONOMIC BENEFIT of deposits acquired T in the purchase of a bank can be so substantial that it is a significant factor in determining the purchase given to certain major expected changes in the bank ing industry, such as elimination of Regulation Q by 1986. price. As a result, purchasers are now giving closer at tention than in the past to deposits, as well as other liabilities, by contrast with a previous tendency to focus primarily on assets, particularly loans. Traditionally, the key questions were: Are loans high yielding? Is the loan loss allowance adequate? Are the securities held readily marketable? Has the value of fixed assets increased, and will they aid in growth? The question of deposit mix was of secondary con cern, but the approach now is more balanced, with as sets and liabilities both being scrutinized carefully. Frequently, the economic benefit of acquired deposits arises because they have rates of interest that are below market rates and can be invested at or above market rates to return a profitable spread. Other economic benefits can accrue to the purchaser, in cluding the relationship established with the base of customers from whom these deposits are generated. The benefit often can be measured and its useful life determined, but in doing so, consideration should be Examining the Deposit Benefit This article examines why deposits are a substantial economic benefit to a purchaser and how to measure the benefit. It then focuses on the tax and accounting treatment of the benefit, which is often complex. In es sence, the acquisition of deposits can provide substan tial benefits in today’s high interest rate environment. Although the word “liabilities” has a negative con notation for some, the fact is that deposits — while they are, of course, liabilities — often are bankers’ life blood. They allow banks to invest in assets at a profit able spread, and the lower the cost of deposits the greater the spread. They provide so important a bene fit that banks are willing to pay to obtain them (for ex ample, through advertising, providing convenient bran ches, and offering premiums.) Deposits are of particular benefit when market inter est rates are high, as at present, because the costs of many deposits are fixed at a low rate by Regulation Q. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 18 The deposit benefit... Consequently, by acquiring deposits, a bank (or a pur chaser) obtains certain funds that have relatively low interest rates: 0 percent for demand deposits; slightly over 5% for NOW accounts and regular savings ac counts; and less than 9% for time certificates of de posit. While money market certificates of deposit are gaining in importance, these other, lower cost, funds, still are of significant benefit. To determine its total cost, of course, a bank must add to these interest costs its costs of processing, FDIC insurance, and of meeting reserve requirements. Today, nonetheless, the total cost to a bank for its de posits is significantly less than the cost it would incur in acquiring alternative sources of funds at volatile market rates. Exhibit I Value of Acquired Deposit Base Interest Costs Percent How Is This Benefit Measured? The benefit derived from assuming deposits in the purchase of a bank can be represented by the after-tax difference between the cost of the deposits and the cost of alternative funds. (See Exhibit I.) This difference is determined by year over the life of the deposit base, and its present value is then determined. In calculating the benefit, three major components should be consid ered: 1. The life of the deposit. 2. The cost of the deposit. 3. The cost of alternative funds. 1. Life of Deposits—Peat Marwick’s experience in assisting purchasers of banks would indicate that the life of deposits is correlated closely to interest rates and that when the rates have risen, deposit life has shortened — primarily because of the ceiling rates im posed by Regulation Q. As market rates have moved above these ceiling rates, depositors have withdrawn their funds. Witness the growth rate of money market funds. Provisions of the Monetary Control Act of 1980 that Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mandate elimination of Regulation Q by 1986 were de-^ signed to assist banks and other financial intermedi aries in retaining deposits during periods of high in terest rates. Thus, in the future, the life of deposits should be longer than would be indicated by the exper-# ience of the last few years. It will usually be necessary to modify the historical life to reflect changes in in terest rates and the gradual elimination of Regulation Q, or else the deposit life may be materially under stated — as will the benefit of obtaining deposits to t h ^ purchaser of a bank. Historical life can be modified through the use of statistical analysis utilized by Peat Marwick to com pare deposit life with market interest rates. (Exhibit II attached indicates how deposit life or attrition v a rie ^ with interest rates and how Peat Marwick determines attrition based upon factors other than interest rates such as out-migration and death.) The modified deposit life should then be used for the years during which Regulation Q is to be progressively eliminated. # 2. Cost of Deposits—The cost of deposits is com posed of interest costs and maintenance costs. The lat ter can be determined by using projections based on historical experience and any expected economies of scale. When Regulation Q is eliminated, interest costs# will be more difficult to project and will be based on projections of future market interest rates, prepared on the basis of experience in the futures and bond mar kets. With the phased elimination of Regulation Q to 1986, interest costs should rise gradually from present# levels to near market rates in 1986. Cost of Alternative Funds—The cost of alternative funds is the price a bank would expect to pay to obtain the same amount of funds as the deposits, with similar terms (unsecured and with the same maturity). Includ-# ed in this price would be acquisition costs, such as in vestment bankers’ fees. What Are the Tax Ramifications? # When a corporation purchases a bank, the transac tion can be structured in many ways, and the structure selected determines whether the transaction is taxable to the exchanging shareholders and whether it may af fect the future federal income tax liability of the pur-# chaser. Moreover, it determines whether the intangible asset which represents the deposit benefit may be claimed as a deduction for Federal income tax pur poses. In general, a transaction may be structured as a tax-# free reorganization or a taxable purchase. Each type of transaction is discussed below. •Tax-Free Reorganization. To be a tax-free reor-# ganization for federal income tax purposes, a transac tion must meet several criteria. In general, the transac tion must have business purpose. A substantial pro portion of shareholders must continue ownership in the remaining firm and the purchase must be consum-# mated primarily through the use or an equity interest of the acquiring corporation. Non-equity interests (re ferred to as “Boot”) used as consideration in a tax-free reorganization are taxable to the recipient. For tax purposes, assets of the acquired corporation# are not revalued in a tax-free reorganization. The tax basis of individual assets and liabilities carries over, 19 and no new asset representing the value of the deposit base is created. •Taxable Transactions. A taxable purchase can be structured as either a purchase of stock or a purchase of assets. ' »Purchase of Stock. Under the purchase of stock method, the excess of the purchase price over the ac quired bank’s book value is considered goodwill. The cost of the stock becomes its tax basis to the acquiring corporation, and this cost cannot be amortized for Federal income tax purposes. Assets of the acquired bank are not revalued in this type of transaction. However, the deposit benefit is not considered an asset and is not amortized. If the requirements of the Internal Revenue Code 'are met, a purchase of stock can be treated as a pur chase of assets. The acquired bank must be liquidated into the acquiring corporation within a period defined in the Internal Revenue Code. Under the Tax Equity and Fiscal Responsibility Act of 1982, a purchaser 1may delay the liquidation up to 75 days after purchase of stock and still treat the stock purchase as a pur chase of assets .1 Essentially, the effect is to allow the purchaser to treat the stock purchase as a purchase of the underlying assets. 1 »Purchase of Assets. Under the purchase of assets method, all assets — tangible — are revalued to fair market values. An amortization deduction may be taken for Federal income tax purposes for certain ac quired indentifiable intangible assets. The guidelines ' for deducting amortization are relatively straight forward, but the application of these guidelines has given rise to extensive litigation in purchase transac tions where substantial amounts of intangible assets have been acquired. In fact, the IRS maintains not on1ly that the tax-payer has a heavy burder of proof, but also that a case providing sufficient factual evidence to support such deductions would be unusual. Revenue Ruling 74-156, 1974-2 CB 65, states in part: The depreciability of assets of this nature is a fac tual question, the determination of which rests on whether the taxpayer establishes that the assets (1) have an ascertainable value separate and distinct from goodwill, and (2) have a limited useful life, the duration of which can be determin ed with reasonable accuracy. No deduction is al lowable merely because a basis has been esti mated and the asset has a limited useful life in the unsupported view of the taxpayer. £ 'This provision is effective for transactions after August 31, 1982. Special rules apply for transactions between September 1, 1980 and August 31, 1982. The new tax act modified the prior law which allowed liquidation as much as three years after purchase. The IRS and the Courts have not ruled specifically # whether the deposit benefit may be considered an iden tifiable intangible asset having a limited useful life. A few purchasers have claimed the amortization expense as a tax deduction. IRS has reviewed and made partial settlements on a limited number of these claims and • has disallowed others. Because these partial settle ments came about through the negotiation process at the administrative IRS level, they do not constitute precedent binding on IRS or a court of law. Thus, there is, at present, no final resolution regarding the tax de® ductibility of acquired deposits. Recently, a case in volving the question was docketed for trial, so we can https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Exhibit II Relationship Between Attrition Rates and Market Interest Rates A ttrition Rate (%) (1) expect IRS to litigate the issue. How long it will take for the courts to ultimately resolve the deductibility of deposit benefit is problematical. In a taxable purchase of assets transaction, purchas ers revalue all assets, including intangible assets, to fair market value. Providing for amortization of the ac quired deposits for tax purpose may constitute a sub stantial tax risk where an acquired bank’s bond port folio or mortgage loans have a fair market value sub stantially less than their tax basis. This is common place in today’s high interest rate environment. These assets would be written down to fair market value, thereby creating additional taxable income as the bonds mature or mortgages are paid with no tax bene fit for the depreciation. Example Consider a bank with stockholders’ equity of $6 million that is to be purchased for $ 11 million (in cash, debt securities, or market value of stock). The purchaser, a bank holding company, is faced with a number of options. It may elect to structure a non-taxable transaction. In today’s environment, the market value of this holding company’s stock is pro bably less than its book value; the dilution in earnings and book value share per share may be unacceptable to the purchaser. Alternatively, the purchaser may con sider using some preferred stock, but the cost of these Northwestern Banker, October, 1982 20 non-deductible dividends may make this alternative less attractive. The purchaser may decide on a taxable transaction and elect for a purchase of stock. The $5 million good will ($11 million purchase price less $6 million book value), however, is not amortizable. Consequently, the purchaser may consider treating the transaction as a purchase of assets. This approach entails revaluation of the assets, both tangible and in tangible. Assume that book values and fair market values are as follows: HYPOTHETICAL BANK (in millions) Assets Cash & due from banks Long-Term Investment Securities Loans Fixed & other assets (cost $5) Benefit of deposits Goodwill Prepurchase Book Value $ 6 20 70 4 - $100 Fair Market Value $ 6 15 60 6 17.5 .5 $105 As shown, the amount of goodwill has been reduced from $5 million to $.5 million, with the benefit attri butable to the deposits valued at $17.5 million. Even with the fixed asset depreciation recapture of $1 mil lion, it appears that this revaluation has reduced the purchaser’s Federal income tax liability. The reduction, however, is not certain. If, in the opi nion of the IRS and the Courts, the taxpayer has not adequately established that the benefit of the deposits has (1 ) an ascertainable value separate and distinct from goodwill or (2 ) a limited useful life determinable with reasonable accuracy, the amortization will be dis allowed. The benefits of deposits would then be non-de ductible for tax purposes. For the hypothetical bank, non-deductible costs would increase from $5 million (if purchase of stock were chosen) to $18 million. The risk of a larger, unamortizable premium is much less for some banks. Those banks have fixed assets with a market value substantially in excess of book, and less depreciation in their securities and loans. In addition, this risk may be mitigated, and possibly eliminated, in many cases by careful planning. For ex ample, delaying liquidation after purchasing stock can provide additional (although limited) time to dispose of depreciated bonds and mortgages and to enjoy the benefits of the depreciation in the form of a tax loss. There are potentially high rewards of successfully converting what would otherwise be non-deductible goodwill into tax deductible intangible assets, and also high risks of litigating the question with IRS. Thus, it becomes particularly important to a bank purchaser who plans to claim a deduction for the deposit benefit to take several precautions: First, the purchaser should make a careful evalua tion of the value of the acquired deposits and a deter mination of the useful life using a method which stands a reasonable chance of success in court. Second, if substantial amounts of depreciated bonds and mortgages are being acquired, the purchaser should consider purchasing stock and delaying liqui Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis dation long enough to permit disposition of these de-# preciated assets. Finally, a careful review of all of the tax risks and rewards — not simply focusing on the po tential deposit benefit — should be made prior to con summation. What Are the Accounting Ramifications? In the acquisition of a bank, one of two accounting methods must be used. Which method will depend on how the transaction itself is structured. Under the p ro # visions of relevant requirements of the Financial Ac counting Standards Board (FASB), a method called “pooling of interests” (1 ) must be used if the substance of the transaction is to combine the interests of the shareholders of the combining corporations; otherwise,# the alternative called the purchase method (2 ) must be used. 1. Pooling of Interest Method. The pooling of in terest method should be used if all of the following con-^ ditions are met. • Independent ownership interests are fully com bined, and operations that previously were separate are continued. • The merger is to be completed within one year in# accordance with a plan. • Existing issue of voting common stock are com bined through the exchange of stock. Common stock is issued for at least 90% of the acquiree’s common stock. # • Once a combination has been initiated, certain transactions will not be allowed if they are incon sistent with the objective of combining the entire interests of common stockholders. m Using the pooling of interest method, the recorded W assets and liabilities of the separate companies gen erally become the recorded assets and liabilities of the combined corporation. Because the existing basis of accounting of the separate companies continues, th e ^ combined corporation records the assets and liabilities of the separate companies at their historical costs. Thus, under this method the direct benefit realized through acquisition of the deposit base would not be recognized in the combined corporation’s financial^ statements. 2. Purchase Method. Business combinations not meeting the criteria for the pooling of interest method must be accounted for by the purchase method, under which assets and liabilities of the acquired bank m u st# be revalued and recorded at fair value in the acquirer’s financial statements. The difference between the cost of an acquired bank and the sum of the fair values of tangible and identifiable intangible assets less liabil ities is recorded as goodwill. # Fair values should be assigned to all identifiable in tangible assets such as the deposit benefit; costs of identifiable assets should not be included in goodwill except where the fair value of such assets are not reasonably determinable. Generally, the fair value of in -^ tangible assets, such as the deposit benefit, should be amortized over the estimated life of that specific asset, not to exceed forty years, and should not be written off in the period of acquisition. In actual practice, accounting and financial repor ting for the deposit benefit, using the purchase 21 TH E HARRIS ORGANIZATION C r q 1 8 8 2 -1 9 8 2 “We must make our reputation for honesty and fair dealing. Our opinions and recommendations must be based upon facts. No one’s judgement is any good unless it is based upon facts and this is to be a fact-finding organization!’ —N. W. Harris, 1882 Harris Trust and Savings Bank, 111 W. Monroe St., Chicago, IL 60603. Member F.D.I.C., Federal Reserve System. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 22 “Bank holding companies are not required in their financial statements to write off goodwill and, thus, can prepare financial statements in conformity with FASB standards.” method, has been varied. Some purchasers have sep arately determined the fair value of the deposit benefit and amortized it over its expected useful life. Many others have not segregated the deposit benefit from goodwill. One reason purchasers may be hesitant to segregate the benefit of the deposit base from goodwill is because the deposit benefit is amortized over its useful life, which is typically significantly less than goodwill, thus adversely affecting current earnings to be reported to shareholders. While the issue has not been tested, some observers believe that the likelihood of receiving IRS or Court approval for the tax deduc tibility of the deposit benefit will be enhanced when the accounting and tax treatments are the same. Regulatory Accounting Requirements. Bank or bank holding companies considering acquiring other banks and using the purchase method of accounting should also consider the requirements and positions of the various bank regulatory authorities and, if ap plicable, the Securities and Exchange Commission, on accounting for identified intangible assets. Bank regulatory authorities generally require that goodwill which is recorded using the purchase method of accounting be written off immediately in bank finan cial statements. This requirement is not in conformity with generally accepted accounting principles, as pro mulgated by FASB. Further, the requirement has gen erally been interpreted as being equally applicable to identifiable intangible assets, such as deposit benefits. In contrast, bank holding companies are not re quired in their financial statements to write-off im mediately such goodwill and, thus, can prepare finan cial statements in conformity with FASB standards. The Comptroller of the Currency recently issued a banking circular which states that the Comptroller is currently reviewing his policy with repect to goodwill and other related intangible assets acquired in a bus iness combination but, as an interim measure, will now accept the practice of bank’s recording deposit benefits as an asset in a business combination. This newly ap proved practice appears to indicate a welcome change in thinking by the Comptroller and is broadly consis tent with the views of FASB outlined above. The bank ing circular generally requires: • a detail study to support the value of the deposit benefits • approval by the Comptroller based on a review of the procedures and results of the detail study • amortization of the deposit benefit, using straight line or accelerated methods appropriate, over a period not to exceed 10 years • annual evaluation of the remaining balance of the Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis deposit benefit to determine that such balance has not been permanently impaired. ^ Other bank regulatory authorities have not recently addressed this specific matter but are believed to be studying it. In all likelihood, they will be providing guidance in this regard in the near future. Very recently, the staff of the Securities and E x -^ change Commission (SEC) expressed concern for the practical impact on acquiring companies’ financial statements, using the purchase method of accounting, for acquisition of troubled thrift insitutions. Such thrift institutions’ low yielding assets are, in certain# instances, being fair valued “down” to their current market value with the resultant difference between the fair and book values becoming goodwill which would than be amortized over periods up to forty years. The practical result of this process is to significantly im -# prove the near term reported earnings from the assets and liabilities of the acquired thrift while recording substantial amounts of goodwill amortization over the longer term earnings (up to forty years). Because of this concern, the staff of the SEC recent-0 ly issued guidance on applying the purchase method of accounting to acquisition of financial institutions, in cluding banks. Effectively, they are requiring that more attention be paid by purchasers to the proper identification and valuation of intangible assets (such# as deposit benefits) which often have much shorter use ful lives and amortization periods than does goodwill. Additionally, when such intangible assets cannot be properly valued, they are looking for much shorter goodwill amortization periods than forty years or u se # of accelerated amortization methods (e.g., sum of the years digits). What To Do? Deposit benefits are, of course, only one of the many important factors which must be considered in struc turing the acquisition of a bank. If, after considering all relevant factors, it appears likely that a proposed# acquisition may be taxable and/or require the use of the purchase method of accounting, then it may be ap propriate before finalizing the purchase to: • perform a detail study to determine the accoun ting and tax values of the deposit benefits • • identify the tax and accounting strategies which will maximize cash flow and earnings As there are many uncertainties and unresolved is sues presently, you may well find it beneficial to call on an experienced team of accounting, tax and consulting# personnel to assist in this process. □ 23 By BEN HALLER, JR. Editor and Publisher NE consequence of the forced closing by regula tors of an Iowa bank on August 6 was the need to determine the standing of investors in that bank who held $353,500 in retail repurchase agreements. Appar ently, this was the first time the FDIC was called upon to determine whether Repos, as they are commonly known, have a perfected security interest and, there fore, take precedence over general creditors of the bank. The FDIC had stated when it took receivership of Mt. Pleasant Bank and Trust Co. in Mt. Pleasant, la., from the superintendent of banking on August 6 that it planned to have a decision on the status of the Repos the following week. That time frame extended until FDIC’s announcement September 13 that it considers now that Repo holders do not have a preferred claim to the government securities in which the Repo investor ostensibly was buying an interest for a period of days. Earlier, FDIC appeared to be taking the approach that Repo holders were, in fact, protected and stood in line ahead of general creditors of a closed bank. At the same time, the Federal Reserve Board of Governors was asking a New York court to rule oppositely to pro tect the viability of the estimated $55 billion interna tional Repo market. In that case, the failed Drysdale government securities firm in New York, holders of the securities were being told by Drysdale they could not sell the securities because the Repo purchasers had a protected, secured claim to them. If the firms holding the securities could not sell them, international mar kets would have been disrupted considerably FDIC attorneys, after studying the Mt. Pleasant Bank contracts and Iowa law, concluded the holders’ interests were not perfected. FDIC Senior Attorney Carroll Shifflett did point out, however, that the even tual recovery in previous liquidations has averaged about 90%. After the Mt. Pleasant Bank failure, and FDIC’s an nounced intention to study the standing of Repos in that liquidation, the N orthwestern B anker asked Thomas H. Hustom, Iowa superintendent of banks, for his interpretation of the legal status of Repos in Iowa. Following that, we surveyed superintendents in nine other upper midwest and mountain states, and also asked one experienced banker in each of nine states for their opinions on Repos. The superintendents were asked three questions: 1. Do you consider Repos to be Loans or Deposits? 2. Do you consider Repos to provide bank customers with a perfected security interest? 3. What is your personal opinion about the use of Repos by banks? The bankers were asked the same questions, as well as whether they sell Repos in their banks. Presented first are the comments of Mr. Huston when he was in terviewed, prior to the FDIC’s September 13 decision that it doesn’t consider Repo holders at Mt. Pleasant Bank to have a preferred standing. Following Mr. Hus ton’s remarks are summaries and comments from the superintendents and from the participating bankers. O Tom Huston Interview Mr. Huston: “When this whole subject of retail re purchase agreements came up some time ago, this de https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Repos! Loans? Deposits? Other Liabilities? Perfected Interest? Unsecured? A N orthwestern B anker S urvey partment didn’t make any ruling on them for two reasons. “First, we deferred judgment because the Fed, the Comptroller and the FDIC were all coming out with conflicting opinions about repos and we didn’t see how we could come out with something that could possibly overlay what those three federal agencies were doing in conflict with each other. “Second, we felt that guidelines would legitimize them and we didn’t want to do that. I dislike repos; we think they’re wrong. I t’s hard to keep track of them and they are hazardous to the bank and its customers. All we said was that they were legal and we wouldn’t stand in the way of them. We consider them to be loans, but unsecured. I don’t know if anyone knows how to perfect a secured interest in them. “Here we are in 1982 with people using them nation wide and no one knows the answer! This problem doesn’t necessarily stop at the regulatory level. It goes back to Congress and to the Administration. It would never have happened if the DIDC had done its job. No one figured this out, so financial institutions were forced into this by customers who needed a vehicle to get a fair return, or be forced to take their money out of their com munity. “I t ’s my honest opinion, and my opinion only, that Northwestern Banker, October, 1982 24 instead of ratcheting Reg Q off, you will see Money Market Mutual Funds regulated. “The opinions by the Fed and FDIC to allow auto matic renewal of repos will encourage financial institu tions to use them more. Thus, the regulators are fan ning a fire they don’t know how to control, and that is unfortunate. “You know, if you don’t spend enough time consid ering and worrying about the problem that can develop with a new idea or product, then you’re liable to wake up in the middle of some night and ask yourself how to get out of the mess—when it’s too late!’’ Survey of Superintendents Of the nine other superintendents surveyed by mail, these eight replied: Illinois—William C. Harris, commissioner of banks and trust companies. Wisconsin—Thomas E. Pederson, commissioner of banking. M innesota —Michael J. Pint, commissioner of banks. Nebraska—Paul J. Amen, director of banking. South Dakota—Glen Ritterbusch, director of bank ing and finance. Wyoming—Dwight Bonhan, state examiner. Colorado—Richard Doby, state banking commis sioner. Montana—L.W. Alke, commissioner of financial insitutions. To the first two questions, they replied as follows: Q. 1. Do you consider Repos to the Loans or Depos its? Six consider them to be loans. Mr. Pederson of Wisconsin said “Neither. Whether purchased or sold under agreements to resell or repurchase, they are con tracts, and they are then reflected on state banks’ books as separate assets or other liabilities. ” Mr. Alke of Montana said, “Neither. They should be a valid sale of a specified security.” These comments were also received about Question 1 : suance of a security by the bank and subject to s ta te # and federal securities law.” Mr. Ritterbusch of South Dakota: “The customer is loaning the bank money. This is not a deposit in a tra ditional sense because it is not insured.” Mr. Bonham of Wyoming: “Being unwilling to p er-# jure myself by calling loans as deposits, I chose to au thorize excess lending within certain restrictive guide lines. It also permits the ledging of assets, which would be prohibited by Wyoming statutes if defined as deposits.” ® Q. 2. Do you consider Repos to provide bank cus tomers with a perfected security interest? Two said yes, four said no, two said it is possible to do so. Here are their comments: Mr. Harris of Illinois: “In most instances, the securities sold under repurchase agreements do not provide the bank customer with a perfected security in terest.” Mr. Pint of Minnesota: “Questionable. I have found< this to be a very troubling question and our attorneys have concluded that if there is appropriate third-party pledging, then perhaps there is a perfected security in terest. The fact that this is such an unsettled question, plus the practical problems of assuring that the neces-< sary paperwork is accomplished, make us uncertain about a perfected security interest. In order for the se curity interest to provide safety to the investors in the event of insolvency, the security interest must be per fected. If the security interest is unperfected, retail* repo investors have no priority over unsecured cred itors.” Mr. Amen of Nebraska: “ In order for a bank cus tomer to have a perfected security interest in the un derlying government securities, a bank must perfect* these security interests under the Uniform Commer cial Code; otherwise, the bank customer is a general creditor of the bank.” Mr. Ritterbusch of South Dakota: “They are re quired to be a perfected agreement if they are being* handled correctly, and underlying securities should be held by a third party. ’’ Mr. Bonham of Wyoming: “Yes, if collateral is pro vided. Has precedence over stockholders.” Mr. Alke of Montana: “The bank has acknowledged* ownership by the purchasing bank customer; reliance must be placed on the bank’s integrity to honor the customer’s ownership.” Q. 3. What is your personal opinion about the use of Repos by banks? * Mr. Pint of Minnesota: “The issue from a legal per spective is whether a retail repo is a loan or a sale of se curities. From a practical standpoint, customers may consider repos as deposits due the manner in which many institutions advertise and promote these instru ments. Furthermore, funds invested in this manner could be construed to meet the traditional definition of a deposit. Because of the definition and the manner in which they are promoted, I believe customers do not distinguish in their own minds between funds depos ited as a NOW, checking, jumbo, mini-jumbo, savings, or certificate from those deposited in a ‘repo’ (which, in effect, are not a deposit).” Mr. Amen of Nebraska: “The department considers a repo to be an obligation of the bank involving the is Mr. Harris of Illinois: “A repurchase agreement, if properly serviced, can be a useful bank tool. It offers an instrument to the banking public which provides a more competitive yield with that offered by non-bank 1 competitors. “I would caution all banks to make certain that the employment of repurchase agreements does not undu ly strain earnings, liquidity or capital.” Mr. Pint of Minnesota: “ I have found the legal rela-{ tionships surrounding retail repurchase agreements to be very troubling. First of all, it is unsettled whether there is a ‘sale’ of a security or an obligation of a bank secured by a pledge of securities; if it is the latter, then it is unclear whether a customer has a validly perfected 1 security interest. In a liquidation, the rights of the var- “The issu e from a legal perspective is whether a retail repo is a loan or a sale of secu rities.’’ Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 4| i • O • • ^ £ 4) ^ ® 0 It ® ious parties would rest on the resolution of these ques tions. “My personal opinion is that customers of financial institutions have been educated, if you will, to rely on the fact that funds deposited in a bank, saving and loan, or credit union are insured by the FDIC, FSLIC, or NCUA and, consequently, many have a false sense of security regarding the status of claims against these in stitutions. While federal regulatory authorities placed very strict rules on deposits and on advertising and full disclosure of deposit relationships, the advertising and disclosure of retail repos has been inadequate and may be very misleading. Many institutions falsely ad vertise that retail repos are backed by all of the assets of the institutions, whereas clearly they are limited to U.S. Government and agency securities. Furthermore, institutions advertise that retail repos are virtually riskless since they are secured by U.S. Government and agency securities. In fact, there is a real risk from the standpoint of (1 ) the market risk of the pledged securities; and (2 ) whether there has been a perfected security interest in the pledged securities. Originally, I believed retail repos would truly be in terim instruments because the scheduled phase-out of Regulation Q would eliminate advantages. However, the DIDC is not moving as scheduled; neither has Con gress taken action to allow competition with money market mutual funds. Therefore, we are seeing more repos and more hybrid accounts than ever. “Finally, I am troubled that the federal regulators have allowed these instruments as a way of accom plishing indirectly what their own rules do not permit directly. I have some philosophical differences with such a ‘backdoor’ method of deregulation, and I think the artificial distinctions as to the true nature of the obligations have created needless and unjustified un certainty.’’ Mr. Amen of Nebraska: “Although the Department has no policy encouraging or discouraging the use of repos by banks, the Department has allowed and noti fied banks of their authority to issue retail repurchase agreements according to FDIC guidelines. The Depart ment has also authorized banks to offer sweep ac counts in connection with repos. “The Department considers the offering of repos by banks as simply a method to compete with non-depos itory institutions who can offer instruments which banks cannot under Regulation Q and DIDC restric tions on depository instruments. When, and if, banks are allowed to offer deposits without restrictions as to interest and other terms, the retail repo may become obsolete. “The Department considers a retail repo to involve the issuance of a security by the banks which is subject to both federal and state securities laws. Accordingly, we have advised banks to give proper disclosure to bank customers in connection with the issuance of repos.” Mr. Pederson of Wisconsin: “ Retail repos of $ 100,000 or less, executed to bank customers, appear to be one alternative for a bank to compete with the in terest rate/yield offered by money market mutual funds. However, unless accurate and complete (computerized, preferably) records are maintained, severe problems may arise. Notable also is the ‘booked’ value https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of underlying securities—if they’re purchased at a dis count, is the par value or cost value reflected? “Perfection of a ‘security interest’ in book entry is sues seems improbable and would pose serious ques tions on the contract being ‘secured.’ ” “The term ‘Repo’ has been too distorted in application to money market transactions, som e of which are actually unsecured loans.’’ Mr. Ritterbusch of South Dakota: “This division looks upon them favorably for two primary reasons: 1 . They allow the bank to compete with the money mar ket mutual funds by providing a market rate and keep ing the money in the community for 2 . providing addi tional funds for loan demand. They can create liquidity problems. For the most part, South Dakota banks are not not experiencing a strong loan demand. In a few banks with strong loan demand, repos are helping ma terially to provide the needed funds.” Mr. Bonham of Wyoming: “At this time, repos re present an execellent vehicle for reducing deposit run off to money market certificates. I do, however, have serious reservations concerning the liberal policies of the Comptroller and will not join the parade toward en couraging more bank failures.” Mr. Doby of Colorado: “It provides another service by banks to their customers.” Mr. Alke of Montana: “Too many banks have sloppy procedures, and some consider ‘Repos’ as loans se cured by pledged securities. This cannot be considered a valid sale under agreement to repurchase, which is the real description of a ‘Repo.’ The term ‘Repo’ has been too distorted in application to money market transactions, some of which are actually unsecured loans.” Survey of Bankers Of the nine bankers surveyed by mail these eight replied: Iowa—W.P. Ronan, president, Decorah State Bank. Minnesota—B.P. (Pete) Allen, Jr., president, The First National Bank of Milaca. Nebraska—Jerry E. Rose, president, Bank of Ben nington. South Dakota—Nels E. Turnquist, Chairman, First Bank of South Dakota, N.A., Sioux Falls. North Dakota—T.A. Roney, president, Foster Coun ty Bank & Trust Co., Carrington. Colorado—Royce B. Clark, chairman and president, First of Greeley. Montana—Richard A. Kjoss, president, Security Bank, N.A., Billings. Wyoming—Henry A. Hitch, president, First Inter state Bank of Casper, N.A. They responded to the survey questions as follows: Northwestern Banker, October, 1982 26 Q. 1. Does your bank sell Repos? Five said yes, Mr. Roney and Mr. Allen said no. Q. 2. If answer above is “Yes,” do you consider your customers to have a perfected security interest? Mr. Ronan and Mr. Hitch said no to this question. Mr. Roe, Mr. Clark and Mr. Kjoss said yes. Mr. Turnquist said “We consider the transaction to be a sale subject to our agreement to repurchase. We believe our customers would have a preferred position in event of liquidation. Mr. Clark said “ In the State of Colorado we con sider the customer to have a perfected security interest if the maturity is less than 21 days. To the extent the pledged securities are issued in book entry form, the bank cannot obtain or hold physical possession and the bank is unable to state whether or not purchaser has a perfected security interest. This is outlined on our Repurchase Agreement.” Q. 3. Whether you sell Repos or not, do you consider them to be loans or deposits? Mr. Ronan, Mr. Allen and Mr. Turnquist consider them neither loans nor deposits, but other liabilities. Mr. Roe, Mr. Roney, Mr. Hitch and Mr. Kjoss consider them deposits. Mr. Clark considers them to be loans. Q. 4. Whether you sell Repos or not, what is your opinion of them? Mr. Allen: “They are a legitimate investment option for bank customers; but, whether we like regulation or not, this is an area that cries out for strict criteria and procedures to assure the customer of either a perfected security interest or perfected transfer. It has been un fair for some responsible and technically particular fi nancial institutions to have to compete with others which did not bother with the details of proper perfec tion and/or transfer.” Mr. Roe: “They have provided us a means of keeping deposits that we might otherwise have lost. Once these deposits leave, it is difficult to get them back.” Mr. Turnquist: “Retail Repos are a vehicle to pro vide services to our customers and generate funds for the bank which in the past may not have been permis sible under Reg Q, and for us to better compete on a limited basis at least with money market funds. Retail Repos will continue to be useful until the liability side of the balance sheet is deregulated.” Mr. Kjoss: “They are awkward to handle, but do pro vide a way of taking short-term money without reserve BAI Convention Is in Houston, November 14-17 Bank Administration Institute has scheduled its national conven tion November 14-17 in Houston, Tex. All general sessions will be held in the Music Hall of the Albert Thomas Convention and Exhibit Center. Five general sessions and lun cheon speakers will combine with five concurrent sessions, which offer a variety of 18 topics, aimed at help ing bankers respond to change in stead of resisting such change. Harry V. Keefe, chairman and Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “They would not be a viable item if the DIDC would allow the banks an instrument of deposit that would effectively com pete with m oney market instrum ents.” requirements—a service which is good for the cus- A tomer.” * Mr. Clark: “In calculation for discount privileges at the Fed window, Repos are considered as borrowed money; therefore, I think we would have to consider them also as loans. q “My opinion of Repos is that they merely are a de fensive measure in trying to stem the flow of funds out of the bank into money market instruments. They would not be a viable item if the DIDC would allow the banks an instrument of deposit that would effectively £ compete with the money market instruments. They do not put money into the bank for lending purposes in as much as you have to have a security to offset the amount of the Repos. A deposit instrument would pro vide additional monies for the banks to lend and would 0 also be covered by FDIC which would give the banks the flexibility necessary to meet the demands of their market place.” Mr. Hitch: “In our present regulated environment, Repurchase Agreements allow financial institutions to ® meet short-term investment needs of customers. However, because of their inherent complexity, it is some times difficult to fully educate a customer concerning the type of investment entered into even though full disclosure must be made at the time the Repo is issued. “Due to the characteristics of Repurchase Agree ments, consideration must be given to a bank’s liqui dity position. In addition, excessive maturity and rate gaps between the Repo and underlying security should be avoided. “Although remote, there also exists the possibility that the underlying securities may decline in value leading to possible loss should a bank fail. The ques tion as to whether a customer would have a preferred claim to the government securities underlying the Repo Agreement is, in fact, presently before the courts.” chief executive officer of Keefe, Bruyette & Woods, Inc., New York, will open the convention with his general session address on “Capital Adequacy in the Financial Services Industry.” Another general session that day features Paul M. Horvitz, professor, department of finance, University of Houston, whose sub ject will be “ Transition to a Deregulated Environment.” The Tuesday general session topic will be “New Competition and Its Implicatons for the Banking In dustry.” The speaker is to be an nounced. Addressing the noon lun cheon that day will be Louis Rukey- ser, moderator of Public Broadcasting’s “Wall Street Week.” The Wednesday general session speaker will be Terry Heineman, concluding the convention at noon w ith his talk on “ M anaging Change.” Concurrent sessions will follow each of the principal speakers talks on Monday and Tuesday, and on Wednesday will precede the final talk. Inquiries for convention registra tion should be addressed to BAI at P.O. Box 93879, Chicago 60670 or 800-323-0146 (in Ill inois, 800-942-2181, ext., 562). • • ^ ® Over 300 Attend Market Day By STEVE BURCH Associate Publisher HE FIRST Stock Yards Bank and First National Bank co hosted their 26th Market Day, Sep tember 8 in the St. Joseph stock • yards. Over 300 bankers attended the annual event which originated as a means of familiarizing bank cus tomers with the workings of the stock yards complex. Traditionally • each Market Day includes a tour of a stock yards based business or in dustry followed by an afternoon agri-business oriented program. The Missouri Valley Walnut Company, a • saw mill and veneer products fac tory, was the selected tour industry this year. Founded in the stock yards in 1938, the company has grown to become a leading producer • o f quality wood veneer with an an nual sales volume in excess of $10 million. During the luncheon program Ly^ man Frick, senior vice president and * senior trust officer at First National, presented a review of an estate plan ning seminar developed by his department. With the many changes ^ in tax laws during recent years, he w urged the bankers to contact and counsel their customers in relation to existing estate plans. This is of particular importance to estate ^ plans designed prior to the enact ment of the 1981 Tax Bill which con tains many changes in joint proper ty, tax-free transfers and trust pro visions. 0 Ken Gilpin, also a senior vice president with First National, fol lowed with an up-date on the influx 0 T of new companies entering the finan cial services industry. His talk en titled “Are You Ready for Sears?” emphasized that even though a com munity bank may consider itself remote from the influence of regional financial centers, communi ty banking customers are being ex posed to financial marketing by such vehicles as cable television pro grams sponsored by financial in stitutions in markets like Chicago and Atlanta. In a continuing effort to provide their correspondent customers with services and products to be used in competing for local investment dol lars, Mr. Gilpin announced the re cent formation of the Cash Manage ment Department headed by John Ford. A new on-line feature now be ing managed by the department of fers remote bank processing. Con sidered unique to their area, Mr. Ford added that this remote lock box function will significantly ac celerate cash flows for their larger correspondent customers. The session adjourned from the stock yards to the St. Joseph Coun try Club for the afternoon program which was headlined by Frank Hough, professor of economics at Graceland College. Mr. Hough ad vised the bankers against making major policy changes relating to business decisions as a result of the current recessionary climate. He told them to “keep moving but make no sudden moves...as though you were walking in a snake pit.” In encouraging the agri-bankers pre sent to consider a persons self worth 27 when reviewing financial state ments, he feels that a banker has more control over a persons dignity during “hardtimes” than any other member of the community. On that note, he urged the bankers to treat loan denials and foreclosures with a great deal of discretion adding that the loss of self respect and self esteem suffered by the borrower is difficult to restore when economic conditions improve. He concluded his “Self-Worth vs. Net W orth” comparison on a positive note refer ring to the durable qualities of human nature and he predicted that these traits would be instrumental in the nation’s economic recovery. James Reynolds, president of St. Joseph Stock Yards, chaired a panel of agri-business leaders who offerd reports and forecasts on grain and livestock prices. Other panel mem bers were Joe Treu, cattle manager, Swift & Henry Livestock Co.; Bill Sonner, cattle manager, MissouriBurlington Livestock Co.; Merrill Karr, hog manager, John ClayHeady Fannen Livestock Co., and Tom Kuehl, grain marketing direc tor, Far-Mar Co. All of the panel members agreed that the ag outlook for 1983 remains bleak with the only possible bright spot being increased hog prices. Following the individual presentations, the panel answered questions from the bankers and ag producers in the audience. John Kara, chairman, First Stock Yards Bank, and Benton O’Neal, presi dent, First Midwest Bancorp., brought the formal portion of the program to an end by thanking the bankers for their continued par ticipation in Market Day and in vited them to a steak fry served on the club house patio. Those attending Market Day 1982 included: LEFT—Robert Henstorf, pres., 1st Natl., Farragut, la.; Hugh Loudon, pres., Citizens State, 0 Clarinda, la.; John Liljedahl, pres., 1st Natl., Essex, la.; Boyd Nuckolls, pres., Bk. of Craig, Craig, Mo.; John Karn, chmn., 1st Stock Yards w Bk., St. Joseph, and Dale Fulk, ag bkg. rep., Citizens State, Clarinda, la. RIGHT—Jay Harper, pres. & chmn., Bucklin State; Bill Manring, v.p., 1st Natl., St. Joseph; John Rogers, Comptroller of Currency, Kansas City, and Roger Hegarty, chmn., 1st Midwest Bancorp., St. Joseph. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 28 The effortless, painless, “Fedless” way to process cash letters. the ^Fedless Connection M aybe y o u ’ve been processing all your checks through the Fed to save operating costs. You m ay be able to save more money by processing those checks through us. We have the advantages th a t can make it well w orth your while: professional sta ff — over 77 years of accum ulated banking experience to assure you of com petent, efficient service, proxim ity — w e’re probably closer th an the Fed. And our m essenger will visit your bank daily . .. accom m odating your work schedule . . . and ours. price — our pricing schedule is competitive with the F ed ’s. And we give you som ething ex tra of real value: someone you know — on a personal basis — on the other end of the phone whenever th e re ’s a problem or question. Call and ask for our brochure. A nd ask us to make a free evaluation of your operation. L et us show you how we can deliver service th a t’s as good as (or b e tte r than) the F e d ’s. Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Needless to say, the Fedless Connection is the peerless way to process your cash letters. the Human Interest bank Commercial National Bank of Peoria MEMBER F.D.I.C. COMMERCIAL BANKING DIVISION 301 S. W. ADAMS • PEORIA, ILLINOIS 61631 PHONE: (309) 655-5225 WATS LINE 1-800-322-2212 29 administration foes by charging the bankers, as community and bus iness leaders, with the responsibility of demanding that their elected of ficials get the economy under con trol. He further urged the banker s to become active in promoting produc tive spending within their com munities and in this area he feels that some improvement can be seen. He reported that regulatory pro gress is being made in Washington that, coupled with a continued grow Illinois Bankers Association ing lowering of inflation and interest rates, should lead to productive • Holds 36th Ag Conference reinvestment in business capital. By STEVE BURCH Addressing the immediate credit pean ag industry all contribute to an outlook of continued low prices and needs of Illinois farmers, Mr. Naylor Associate Publisher suggested that all of the ag lenders i i 1 1 f ELL, no one ever said that decreases in demand. Keynote speaker Frank Naylor, within a particular area would have ^ VV it was going to be easy!" could very well have been the theme Under Secretary of Agriculture for to share the loan responsibilities and for the 36th Annual Illinois Bankers Small Communities and Rural De demands for that area. In considera Association A gricultural Credit velopment, opened the conference tion of the “gloom and doom’’ fore Conference held in Champaign Sep- by leveling a blast against all foes of casts, he closed by stating that a ^ tember 14-15. The nearly 400 agri President Reagan’s economic policy. break-even farm operation is about bankers in attendance did not re A veteran of four administrations, all that could be hoped for during ceive a very bright financial forecast he emphasized that the ag economy the coming year. Howard Beerman, an ag lender for the grain and livestock indus could not be divorced from the na tries in the midwest. Combined fac- tion’s general economy and in this with 20 years experience and now ^ tors of a record ’82 grain crop, a light pointed to a “nearly uncon director of Hedging Services, Heinshrinking share in the export mar trollable’’ budget deficit. Reminding old Commodities, Inc., followed with kets, a slow 3rd world economy with the bankers that 48% of the current some guarded optimism for 1983. little buying power and growing budget is spent on social programs, He presented an example using cur competition from a subsidized Euro Mr. Naylor continued his attack on rent grain prices and the 12 month Those attending the IBA Ag Credit Conference included: LEFT—John Crotty, sr. v.p., Drovers Bk., Chicago; Gary Edwards, v.p., Golden St. Bk., Golden, and Andy Ruments, v.p., Drovers. RIGHT—IBA Pres. Don Lovett, chmn. & pres., Dixon Natl. Bk.; Kim Kleinschmidt, v.p., # Farmers St. Bk. of Minier; Bob Maierhofer, v.p., Community St. Bk., Seneca, and Bill Hooter, IBA exec. v.p. 0 LEFT—Mike Carey, program mgr., Bank Administration Inst., demonstrates features of INNERLINE computer software. RIGHT—Conference speakers included Wink Schairer, sr. v.p., Woodford County Bk., El Paso; Lyle Campbell, chmn., Mount Greenwood Bk., Chicago, and Howard Beermann, dir., Hedging Services Div., Heinold Commodities, Inc., Chicago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 30 Illin o is N ew s hog hedge which would result in the producer realizing a $5 per bushel selling price for his corn. He said that this type of example drama tizes that producers can no longer rely on inflation and growth to pay their finance bills. Profitable farm operation clearly is in an era dom inated by marketing he said, and warned that marketing decisions can no longer be made on “whims and gut feelings” but require the counsel of experts. In today’s en vironment of market specialization and growing risk factors, Mr. Beerman warned the bankers on the dangers that can be encountered when counseling a borrower in the futures market. He feels that the agri-banker needs to keep abreast of the markets in general, but portfolio strategies should be left to a qual ified broker. He also feels that it is important for the banker to main tain communications with both the producer and broker in reference to the commodities account. “The Not-So-Peaceful Country side” was the title selected by Paul Barbick for his topic on stress man agement. An associate with Vopatek & Associates, Inc., Mr. Barbick reviewed the relationship between stress, tension and production. With fewer farmers doing cartwheels on the way to the elevator, he gave the bankers pointers on recognizing stress in others and what can be done in helping someone suffering from severe stress related pressures. During the afternoon the confer ence was segmented into three work shop sessions which were designed so that a person could attend each of the sessions. The workshops focused on in-house microcomputers, ag lending to elevators and accounts re ceivable financing. Highlighting the evening activi ties was the presentation of scholar ships to two college students. This years scholarships, worth $ 1,000 each, were awarded to Steve Phil lips, Southern University of Illinois and Rex Clark, University of Illi nois. Midwest Financial Group Selects Founding Board Midwest Financial Group, Inc., recently completed selection of its founding board of directors. Commercial National Corpora tion, which owns Commercial Na tional Bank, University National Bank, and Prospect National Bank, Peoria, is in process of merging with banks in Springfield, Kankakee and Champaign to create the $1.1 billion holding company. Peoria founding directors include: David E. Connor, chairman, Com mercial National Corporation; Ted Flora, president, Hagerty Brothers Company; Harry D. Feltenstein, Jr., president, Central Illinois Light Company; Harry M. Goldstein, pres ident, Cohen Furniture Company; Chris R. Hoerr III, president, Chris Hoerr and Son; Lee L. Morgan, chairman, Caterpillar Tractor Co.; James M. Unland, president, James Unland and Company, and Murray M. Yoemans, president, Yoemans Distributing Company. Springfield founders include: A.D. Van Meter, Jr. president, Il linois National Bancorp, Inc.; Robert B. Oxtoby, attorney, Van Meter, Oxtoby and Funk, and Wil liam S. Gingold, a prominent Springfield businessman. Champaign founders include: Wil liam C. Fox, chairman, Champaign Bancorp, Inc.; Donald D. Dodds, Jr., president, Doddson Travel Agency,’ Inc.; and John E. Corbally, Jr., president, John D. and Catherine T. McArthur Foundation. Kankakee founders include: Wal ter J. Charlton, chairman, First* Trust and Savings Bank of Kan kakee; Richard B. Gibbs, president, Bert L. Fitzgerald and Son, Inc.; Leslie Small, senior vice president,. Mid-America Video, Inc., and Rob ert L. Moyer, vice president, Small Newspapers. In addition to the three Peoria banks, Midwest Financial Group is^ scheduled to include Illinois Bank of Springfield, First National Bank in Champaign, and First Trust and Savings Bank of Kankakee. The merger is expected to be consum-^ mated by the end of the year. Acquisition Completed Continental Illinois Corporation, parent company of Continental Il linois National Bank and Trust Com pany of Chicago, has completed the acquisition of the Bank of Oakbrook Terrace. According to the agreement,^ the Oakbrook Terrace bank’s stockw was sold to Continental at the price of $68 per share. John B. Tingleff, senior vice presi dent in charge of Continental’s ac-^ quisition and management program for subsidiary banks in Illinois, has been named chairman of the Bank of Oakbrook Terrace. Buffalo Grove Bank Breaks Ground Merger Talks Terminated Elm Bancshares, Inc., the parent company of Elmhurst National Bank, and First Lake County Corp., the parent company of First National Bank of Libertyville, have mutually agreed to terminated merger discus sions due to prevailing general market conditions. https://fraser.stlouisfed.org Northwestern Banker, October, 1982 Federal Reserve Bank of St. Louis BREAKING ground for a two-story, 12,000 sq. ft. addition to Buffalo Grove Natl. Bk., 555 W. Dundee Rd., are (from left) Francis W. Morley, chmn. of the bank’s bd. of dir. and pres, of the Employer Plan Administrators and Consultant Co.; John B. Tingleff, sr. v.p. in charge of Continental Bank’s acquisition and management program for subsidiary banks in Illinois; Michael A. Speziale, bk. pres., and William Balling, Buffalo Grove village mgr. Buffalc# Grove Natl. Bk. is a subsidiary of Continental Illinois Corp., parent of Continental Bk. The estimated cost of the addition is $2 million. 31 • L oss con trol ex p ertise, sta te-o f-th e-a rt testin g d ev ices, and “A BUCKETFUL OF COMMON SENSE” 01 ^ # One of our policyholders sensed a potential carbon monoxide problem. An EMC on-site test confirmed the danger. W e recommended some simple corrective steps to m eet health/safety standards. Said the policyholder: “It wasn’t intricate or involved; it wasn’t expensive. . . he just mixed his education w ith a bucketful of common sense.” A bucketful of common sense is one of the traits that makes Employers M utual’s insurance programs attractive to business owners seeking improved profitability. Employers Mutual makes a lot of sense to independent agents, too. O ur loss control experience and equipm ent and our common sense approach to improving hazardous conditions in the workplace can help you sell. . . and k eep . . . profit-minded commercial clients. ms Employers Mutual Companies Des Moines, Iowa https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 Q W hen the bank guaranteed that you would only deal with one person, 0 you didn’t know they meant one after another. 1 .1 1 ¡1 1 . 1 | O Perhaps it’s happened to you. Just when you had built up a working relationship with your correspondent banker, the bank moved him up the corporate ladder and off your business. All too often, a large bank can be insensitive to the needs of small respondent banks. Yet smaller banks that can give you plenty of personal attention can’t always give you the expertise and the clout you need. And you’re caught in the middle. You do, however, have an alternative: Midland National Bank. We’re big enough to handle any of your correspondent banking needs. But we’re still small enough to respond to your individual concerns. We’ve deliberately kept our Correspondent Division small, so that you can deal M idland National BANK Of Minneapolis g ^ |Q g M a in B a n k * 4 0 1 2 n d A v e . S . G o v ’t C e n t e r O f f ic e - 3 r d A v e . S . a t 6 t h S t. S t . L o u is P a r k B r a n c h - 3 6 0 1 P a r k C e n t e r B iv d . Member Federal Deposit Insurance Corporation directly with a decision maker. Each of our correspondent bankers has from 12 to 25 years of experience in the business, so they thoroughly understand the needs of respondent banks. They take the time to personally call on both the respondent bank and the respondent’s customers. If you’re tired of banks that are too large or too small, come to Midland Bank. You’ll develop a close working relationship with one of our correspondent bankers. Not one after another. We’re big enough to know how and small enough to know you. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 33 Auditor Named in Mankato Named President At First Bank Rochester election as president a t Lidgerwood in 1977. F irst B ank Rochester has elected N orbert J. Conzemius president and m anaging officer. H e succeeds Paul W. Olander, who has resigned to establish a bank counseling firm. M r. C o n z e m ius was serv ing as senior vice p re s id e n t an d group executive, N o rth D a k o ta and South D ako t a G ro u p , of F irst B ank Sys tem , Inc. He be gan his banking N.J. CONZEMIUS career in 1966 a t F irst B ank St. Paul, where he was prom oted to commercial loan officer in 1968. He was elected vice presi dent and division head in the com m ercial lending area in 1974 and in 1978 became vice president in the consumer banking group, the posi tion he held until his election in 1979 as senior vice president and group ex ecutive of F irst Bank System ’s M innesota South Group. He has held his m ost recent position since 1980. Joins Rochester Bank W illiam A. Brown has joined N orthw estern B ank of Rochester as a ssista n t vice president, financial services officer. He will fill a new ly created posi tion which will offer an indepen d e n t, p e rso n a l financial counsel ing service. He previously was employed as in-house counsel b y M in n e s o ta M utual Life Insurance Company in St. Paul and has com pleted training a t N orthw estern N ational B ank of M inneapolis in the tru s t departm ent and the financial counseling divi sion. Worthington Bank Names Two Shirl L. Held has been nam ed vice president and Paul Kleinw achter has joined the bank staff as an agri culture loan officer trainee, a t S tate B ank of W orthington. Windom President Elected The board of directors of F irst B ank W indom has elected Virgil Eckhoff president and m anaging of ficer. He su c ceeds Douglas L. D avidson, who has resigned. M r. E ck h o ff has been serving as president and m anaging officer of F irs t B ank L id g e rw o o d , N.D. He began v eckhoff his banking car eer in 1953 a t F irst B ank Clark, S.D., and eventually moved to Blue E arth , where he was elected vice president a t F irst B ank Blue E a rth in 1970, a position he held until his https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S ta rr J. Kirklin, president of F irst B ank M ankato, recently announced the election of Kevin D. Miller as auditor. M r. M ille r jo in e d F irs t B ank M ankato in 1977 as a teller and m ost recently held the position of oper ations assistan t. K.D. MILLER H e p re v io u s ly was employed a t F irst B ank A ustin. Citizens State, Brainerd Elects Williams President The board of directors of Citizens S tate Bank, Brainerd, has announced the election of W a rre n W il liams as presi dent and chief o p e ra tin g o f ficer. H e su c c e e d s M a rv in Cam pbell, who began his bank in g c a re e r in 1940 an d has W. WILLIAMS served as presi dent since 1941. He will rem ain as chairm an and chief executive officer until his retirem ent in June. Prior to Citizens, Mr. Campbell was president of F irst N ational B ank of Crookston for I 6 V2 years. Mr. W illiams previously was w ith F irst Am erican N ational B ank of St. Cloud for six years, serving m ost recently as senior vice president. Prior to th a t he was w ith F irst N a tional B ank of M inneapolis for 11 years, where he attain ed the position of a ssista n t vice president. Acquisitions Approved P. KLEINWACHTER S.L. HELD Mr. Held recently retired as su perintendent of schools, a post he had held for 20 years, is president of W orthington Industries and is a m em ber of the board of directors of W orthington A rea Cham ber of Com merce. Mr. Kleinw achter attended Bem idji S ta te U niversity and has a BS degree from the U niversity of M in nesota. The following applications were approved by the Federal Reserve B ank of M inneapolis for bank hold ing companies to acquire the respec tive banks: Noble B ank Holding Company, Inc., Red W ing, to acquire F irst S tate B ank of Red Wing; A shby B ancshares, Inc., Ashby, to acquire the F irst S ta te B ank of Ashby; Finlayson B ancshares, Inc., Finlayson, to acquire Farm ers S tate B ank of Russell, and N ortheast Bancorporation, Inc., M inneapolis, to acquire F irst Am erican S tate B ank of Sargeant. Northwestern Banker, October, 1982 34 Twin Cities J OSEPH R. KINGMAN III was president and personal banking n am ed p re s id e n t a n d chief m anager; Sandra K. Johnson was operating office of American N ation prom oted to tru s t officer, and Patri a l B a n k , S t. cia J. Cullen, Laura C. Swain and P au l, effe c tiv e Beth R. Taylor were nam ed invest October 1. m ent officers in the bond dep art Mr. Kingman, m ent. m o s t r e c e n tly Mr. Jensen joined Am erican in vice chairman of 1978 as chief auditor, was elected F irs t B ank — credit review officer in 1980 and M in n e a p o lis , assum ed credit adm inistration for brings w ith him the commercial banking division to the bank over earlier this year. Ms. Dodge previ %4 30 years of sen ously served seven years w ith F&M J.R. KINGMAN ior m anagem ent M arquette. Ms. Johnson has been a t and b road com m ercial ban k in g the bank since 1969 in the tru s t divi knowledge and experience. sion. Ms. Cullen began as adm ini James W. Reagan will continue as stra tiv e a ssista n t in the bond de chairm an and chief executive officer p artm en t in 1975. Ms. Swain joined of Am erican N ational B ank and in 1978 as a ssista n t trader. Ms. president and chief executive officer Taylor joined in 1981 as a money of Am erican B ancorporation, Inc. m arket trader. Mr. K ingm an was graduated from * * * A m herst College w ith a BA degree. He also attended the M innesota E x N orthw estern N ational B ank of ecutive Program a t the U niversity M inneapolis has announced the elec of M innesota. While serving w ith tion of two vice presidents, ten assis F irst B ank M inneapolis, Mr. King- ta n t vice presidents and 12 other of m an held vice chairm an positions in ficers. the retail/m etropolitan tru s t group James S. Carlock was elected vice and the national/international bank president in the loan adm inistration ing group, and senior vice president positions of the corporate staff ser vices and retail groups. In 1979 he was elected vice chairm an and a director of F irst B ank M inneapolis. Also a t the bank Ernest W. Jen sen has been prom oted to vice president-credit review; Jane K. Dodge has joined the consum er banking division as a ssista n t vice J.S. CARLOCK E.W. JENSEN J.K. DODGE Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Prom oted to a ssista n t vice pres ident were: Gary Gapinski, loan ad- • m inistration departm ent; Lynn F. Hebei, James R. Horn, Jr., and Gor don M. Gilbertson, m idw est depart m ent I; Theodore R. Novak, con sum er banking; David J. Peterson ® and Kenneth O. Beckwith, central operations departm ent; Maureen M. Dunn, consum er operations, and Martin V. Olson and Warren G. Herreid, system s departm ent. ^ Prom oted to officer sta tu s were: Harold Brandel, commercial loan collateral; Keith A. Isaacson, cor respondent agricultural; Dennis W. ^ Fischer, Anthony R. Michog, James W K. Francis and Sue Ann Stredelman, commercial banking, and Scott A. Faris and Thomas A. Swan, corre spondent banking. ^ * * * Mary Kay Arndt has been elected a ssista n t vice president and Marcia L. Friesen and Kathleen Niki Rogers have been named o p e ra tio n s o f ficers a t F irst B a n k M in n e haha. Ms. A rndt be gan her career w ith the bank in 1980 as hum an resources officer. M s. F r ie s e n M.K. ARNDT sta rte d in 1977 D.L. SODMAN departm ent. He joined N orthw est ern in 1979 and holds an accounting degree from the U niversity of Il linois. In the tru s t and investm ent group, Donald L. Sodman was elec ted vice president in the individual m arketing, individual services de partm ent. He joined the bank in 1977. M.L. FRIESEN K.N. ROGERS in the account services departm ent. Ms. Rogers joined the bank in 1981 ® in operations. 35 Look for us in Atlanta Jim Reagan Bob Sipple Jack Barry We look forward to seeing our banker friends at the American Bankers Association Convention. • We hope to see you there and to talk with you about how American’s full line of correspondent services can benefit your bank. A M E R I C A N N A T I O N A L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B A N K • S A I N T P A U L Northwestern Banker, October, 1982 36 M in n e s o ta N ew s The board of directors of the N orth w estern N ational B ank of St. Paul recently announced the election of two vice presidents, one a ssista n t vice president and three new of ficers. K eith J. Vigors was elected vice president and division m anager of the secured lending division in the commercial banking group. He re cently joined the bank from F irst J.M. BOWES Robert E. Dahl has joined N orth w est Bancorporation in its loan adm in is tra tio n division as vice p resid en t, loan pool m anager, a new position. Mr. Dahl has been serving as e x e c u tiv e vice p re s id e n t of F irs t N o rth w estern N ation R.E. DAHL al B ank of Bill ings, M ont., a Banco affiliate bank. Mr. Dahl joined Banco in 1959 as an auditor in the commercial loan departm ent of N orthw estern N a tional B ank of M inneapolis. He was vice president in charge of the credit departm ent a t Banco from 1973 to 1977. He later served as senior vice president, com m ercial loans, a t N orthw estern N ational B ank of Omaha. He had been w ith the Bill ings bank since 1978. * * * M ark Sheffert has been elected president of F irst System Agencies, Inc., the insurance services sub sidiary of F irst B ank System , Inc. Mr. Sheffert suc c e e d s L ee R. Mielke, who was recently elected p re s id e n t and m anaging officer of F irs t B ank Brainerd. M r. Sheffert began his insur ance career in M. SHEFFERT 1968, a t which tim e he joined P rudential Life In surance Com pany in their M inneap olis agency. He was appointed assis ta n t agency m anager in 1969 and be A t F irst B ank M inneapolis Jam es tween 1973 and 1976 served as agen S. Doak has joined as a vice presi cy m anager in D etroit and St. Paul. In 1977, Mr. Sheffert joined The dent and senior equity officer in the asset m anagem ent departm ent, and N orth Central Companies, Inc., St. Sally W ebber-Centner has joined Paul, as a senior vice president. He the bank as a commercial banking was elected executive vice president officer in the m anufacturers division and chief m arketing officer in 1979, of the m idw est banking I dep art and to his current position as senior executive vice president and chief m ent. operating officer in 1980. * * * V/.D. VORTERS N ational Bank of Rochester, where he was vice president in the commer cial departm ent. Jon R. Campbell was prom oted to vice president of the special tech nologies division in the commercial banking group. He joined the bank in 1979 from the U.S. N ational Bank of Omaha, where he was a regional credit trainee. K athleen A. H yduke has been elected a ssista n t vice president of the m etropolitan commercial bank ing division of the commercial bank ing group. Prom oted to officer sta tu s were: Naomi L. Am iot and Jacqueline M. Bowes, operations, and W anda D. Vorters, commercial banking. Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis chael J. P in t to relocate two blocks 0 from 441 W abasha S treet to the Town Square B uilding a t the inter section of Sixth and Cedar Streets. The new location will have street and skyw ay access. 0 * * * J.S. DOAK S. CENTNER Mr. Doak, who is head of the equi ty research division w ith responsi bility for m anagem ent of the pooled equity funds, sta rte d his investm ent career as a m unicipal bond trad er for K idder Peabody, Inc., Philadelphia, in 1967. Ms. Centner previously was a cor porate banking officer w ith Union T ru st Com pany of M aryland. * * * Gam bles C ontinental S ta te Bank, St. Paul, (now M etropolitan B ank St. Paul) recently received approval from Com m issioner of B anks Mi- Lawrence R. Commers, p artn er of M acintosh and Commers, P.A., has been appointed to the advisory com m ittee of the N orth W ashington Branch of F irst B ank M inneapolis, 0 and Ju d ith L. Koch, president of “ A -Plus” D em onstrations, has been appointed to the advisory com m it tee of the St. A nthony Falls Branch. * * * m Commissioner of B anks Michael J. P in t has announced his approval of the m erger betw een Citizens S tate B ank of St. Louis P ark and 0 G uaranty S ta te B ank of Robbinsdale. In approving the application, the Commissioner noted th a t Citizens S tate B ank was chartered in 1949 0 and had assets of $44,300,000 and two offices as of Ju n e 30. G uaranty S tate B ank was chartered in 1964 and had assets of $23,455,000 as of Ju n e 30. 0 Citizens S ta te B ank will be the : | & Mm 1 i g ■1 s“N O BANKER CAN FLY BY THE SEAT OF H IS PANTS ANYM ORE” „: " P ip e sto n e , M in n e so ta , is a to w n o f f iv e th o u s a n d w h e re th e n a tiv e s w a v e & sm ile & s a y h o w d y to p erfe ct & im p e rfec t s tr a n g e r s . T h e f i r s t tim e it h a p p e n s y o u ch eck to see w h o ’s b eh in d y o u . In a n a g e w h e n fr ie n d lin e s s h a s becom e a d im in is h in g n a tio n a l resou rce, P ip e sto n e s ta n d s o u t a s a m in im o th erlo d e o f a m ic a b ility . A n a m ia b le a tti tu d e to w a r d o th e rs c e r ta in ly a n im a te s th e F irst N a tio n a l B a n k o f P ip e s to n e , fo u n d e d in 1889. Its p r e s id e n t is B ob M o rg a n , 4 4 , w h o la u g h s e a s ily & w e ll a n d w h o lo o k s m u ch y o u n g e r th a n h is y e a r s . H e a n d h is b ro th e r S te v e o w n th e b a n k , w h ic h h a s a s s e ts o f $ 5 2 m illio n a n d a c u s to m e r b a se o f 4 0 0 0 . M o rg a n th in k s a d o u b lin g o f h is b a n k ’s a s s e ts in 1 0 y e a r s is n o t a n u n re a so n a b le e x p e c ta tio n . B u t th is is p o ssib le, he s a y s , o n ly i f th e b a n k k ee p s ta b s o n a s s e ts a n d lia b ilitie s. E a r ly th is y e a r M o rg a n ca lled N o r th w e s te r n N a tio n a l B a n k o f M in n e a p o lis to a s k i f i t h a d a se rv ic e to f a c ilita te v th is. T h e a n s w e r w a s y e s. T h e se rv ic e w a s called ^ C B M —C o m m u n ity B a n k M odel. R e c e n tly jfm fitM organ sp o k e o f h is to w n , h is b a n k a n d CBM. Ours is a community bank. It’s successful. As is the town. It has a work force of 5700 and an unemployment rate of 4.7%. We want to keep both bank & town humming. This is where this service from Northwestern of Minneapolis comes in. The Community Bank Model gives an exact fix every month on our assets & liabilities. It tells us how our loans are doing. Tells us how our portfolio is doing. Tells us where we are in relation to the month’s goals. . I t tells us how good our margin is in relation to other community banks. It allows us to p ro je c t. It allows us to look back. And because it’s a computerized service, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis it allows us to a s k q u e s tio n s . What if^i?f|7 we did this? How would it affect our margin for the year, for five years? CBM figures in all variables. It’s a tool. ' We avoid trouble. We seize opportunities. Even the incidental effects are good. We’ve been successful because we’re efficient. We have a staff of only 21. This service from Northwestern National allows us to be even more efficient. Every officer knows every month precisely where we are. Between us, too many community banks don’t know f o r su re where they stand until their tax men | tell them. This is wrong. No banker can fly by the seat of his pants anymore. Interest rates are too volatile. Could I duplicate the Community f§¡‘ fr Bank Model on my own? Sure. Only it would cost me five times what it’s costing now. We went to Northwestern National of Minneapolis once decided we needed something like CBM because it’s been a correspondent bank of ours for 60 years. We know them. We like them. We trust them Heck, they’ve helped keep us in d e p e n d e n t. d CALL SCOTT ULBRICH (612) 372-5967 CORRESPONDENT BANKING DEPARTMENT NORTHWESTERN NATIONAL BANK Changing economic conditions require the ability to anticipate change, instead ol reacting to it First Bank Saint P a u ls financial model helps you forecast current and future trends for effective bank m anagem ent. In today's competitive market place, high performance depends on effective management of both assets and liabilities. At First Bank Saint Paul we have a tool to make this job easier. It is a financial model that allows you to forecast changing profit levels under varying circumstances. In other words, what will happen to net income if interest rates go up or down? How will a change in the mix of assets and liabilities affect # https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis income? O ur model not only forecasts a complete balance sheet and income statement, but also provides a detailed summary of rate sensitivity and gap. It is a planning tool that helps you prepare for changing conditions. To find out how our financial model can help you manage your bank, call our Investment Services G roup at (612) 291-5659. First Bank Saint Paul Member First Bank System Investment Services Group 332 Minnesota Street Saint Paul, Minnesota 55101 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40 M in n eso ta N ew s successor bank and the m ain office will rem ain a t 5050 Excelsior Boul evard in St. Louis Park. I t will operate two full-service branches, one a t 3700 W est Broadw ay (the site of the m ain office of G uaranty S tate B ank of Robbinsdale), and the other a t 4201 M innetonka Boulevard, St. Louis Park. The board of directors for the m erged institu tio n s will include Constance L. Bakken, Roger L. Hauge, Marion Brummer, and Bernhard Loewen. The b an k ’s chief ex ecutive officer will be President Roger L. Hauge. * * * F irst B ank System , Inc., has an nounced th a t the annual interest ra te on its V ISA and M asterC ards has been reduced from 22% to 19.8% (1.65% per month), effective on custom ers’ Septem ber, 1982, s ta te m ent dates. The new rate, which will be reflected on October statem ents, will apply to existing balances as well as to future charges. * * * Gayle M. Fiddle has been ap pointed financial audit officer in the audit division of F irst B ank System , Inc. Mr. Fiddle had been serving as senior financial auditor a t The St. Paul Fire and M arine Insurance Company. St. Cloud National Obtains Student Loan Funds In response to rapidly growing stu d en t loan demand, the St. Cloud N ational B ank and T ru st Co. of St. Cloud recently obtained additional funds for stu d en t loan financing by selling existing stu d en t loans from its portfolio to the S tudent Loan M arketing A ssociation (Sallie Mae) of W ashington, D.C. The G uranteed S tudent Loan Pro gram is the n atio n ’s largest single source of stu d en t credit for educa tional financing. U nder the GSLP, undergraduate stu d en ts can borrow up to a m axim um of $2,500 a year, and graduate stu d en ts can borrow up to a m axim um of $5,000 a year a t an annual rate of 9 percent interest. S tudents are required to begin re paying the loans on a m onthly basis after they graduate from or leave school. “ St. Cloud N ational B ank and Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T ru st Co. has been a strong sup porter of the G SLP in the St. Cloud com m unity since 1962,’’ said Karen Lunderby, installm ent loan officer of the bank. “ We have decided to sell loans from our portfolio to Sallie Mae in order to assure th a t funding will continue to be available for pro viding this vital form of educational credit to area stu d e n ts.’’ Sallie Mae is a governm ent-char tered, stockholder-ow ned corpor a tio n g ra n te d b o a rd s ta tu to r y au th o rity by Congress to provide a national secondary m arket for guar anteed stu d en t loans to a ssist the credit needs of stu d en ts generally. U niversity. Mr. Rusin m ost recently ® com pleted his MA in economics, fi nancial m anagem ent and interna tional finance a t the U niversity of Colorado. Mr. H oltm eyer has 20 ^ years experience working for the w Small B usiness A dm inistration. Two Promoted in Slayton Palm er Hoffland, president of the N orthw estern B ank of Slayton, has ® announced the prom otion of F.V. “ P inky’’ F itzpatrick to vice presi dent and J a n W illiams to cashier. St. Cloud Promotions Told Several prom otions have been an nounced a t the F irst Am erican N a tional B ank of St. Cloud, according to A.D. Didier, president. In the commercial loans dep art m ent, Jo h n H erges has been nam ed vice president and m anager, Mike Cleland has been nam ed vice presi dent, Jim Langer, a ssista n t vice president, and Jeb b Willis, comm er cial loan officer. Tom Rusin joined the bank Oc tober 1 as a ssista n t vice president in commercial loans and Gene Holtm eyer has joined as SB A loan spe cialist. Mr. H erges joined the bank in 1973 and takes the place of W arren W illiams who recently accepted an other position. Mr. Cleland, a grad uate of M ankato S tate U niversity, coordinates the b an k ’s leasing and SBA loan program s. Mr. Langer graduated w ith a degree in econom ics from South D akota S tate U niver sity. Mr. Willis graduated w ith a de gree in finance from St. Cloud S tate These changes are in preparation for the retirem ent of Mr. F itzpatrick in M arch, 1983. Mr. F itzpatrick joined the bank in 1948 and has been serving as cashier since 1963. Ms. W illiams m ost re cently was nam ed m arketing officer in 1978. Security Pacific Buys Postal Financial Corp. ^ Security Pacific Corporation, Los Angeles, recently was granted ap proval by the Federal Reserve Board o of Governors to acquire P ostal Fi nancial Corporation of Sioux City, la. P ostal engages through various subsidiaries in consum er lending, in dustrial banking, and acting as O agent for the sale of credit life, acci dent and health, and property and casualty insurance. Independent Bankers Elect Officers F IN E team of new officers were dependent B anker’s bank study elected a t the annual convention com m ittee this p a st year. ^ Filling the second vice presidency of the Independent B ankers of M in nesota A ugust 19-22 a t Arrowwood spot will be Jim Clark, president of in Alexandria. the Lake C rystal N ational Bank. In Lowell W akefield, president of view of the fast m oving scene a t the F irst N ational B ank of W ayzata, W ashington level, the executive ^ was elected president, succeeding council moved to reappoint Tom P eter A. Carlson, chairm an and Grinnel as treasurer and N orbert A. president of Argyle S ta te Bank. M cCrady as executive vice presi Succeeding Mr. W akefield as first dent. Mr. Grinnell took the post of vice president is L arry Lindeberg, treasurer a year ago. Mr. M cCrady £ president of the Forest Lake S tate has been executive officer going on Bank. Mr. Lindeberg chaired the In- seven years. A M in n e s o ta N ew s 41 1982 Midwest Banking Institute Highlights/Graduates N EA RLY 200 bankers sharpened their agricultural banking skills a t the 16th annual M idw est B ank ing In stitu te held a t the U niversity of M innesota, M orris, from Ju ly 25-30. Jo in tly sponsored by the M in nesota, M ontana, N orth D akota, South D akota, and W isconsin B ank ers A ssociations, the In stitu te is an intensive program covering current farm m anagem ent practices and key agricultural issues, said W ayne F. Berthiaum e, in stitu te adm inistrator and adm inistrative vice president of the M innesota Bankers Association. “ Farm ing today is a high-tech nology business,” sayd Mr. B er thiaum e. “ B ankers’ continued sup p ort of the In stitu te shows their com m itm ent to understanding chan ges in agriculture and to m aintain ing their p artn er relationship w ith the farm ing in d u stry .” H ighlights of the week-long pro gram included presentations by Iowa S ta te U niversity ag-econo- m ist, Mike Boehlje, on “ survival tip s ” for farm ers; Purdue U niversi ty ag-economist, O tto Doering, on the hidden costs of grain production; U niversity of M innesota ag-econo m ist, E dw ard Schuh, on how the value of the U.S. dollar affects farm er profitability, and a com puter sim ulated credit analysis case study program . Mr. Boehlje warned the bankers th a t 1982 was going to be the th ird stra ig h t year of low farm profits. He estim ated a qu arter of the M idw est farm ers will operate a t a loss for 1982 — prim arily because of low grain prices. He also presented several “ tip s ” bankers can suggest to farm ers to get them through the next couple years. Mr. Doering presented his m ost recent research on farm er and ta x payer grain production costs. His controversial findings suggest th a t expansion of U.S. grain trade is both counter productive and an im proper use of ta x dollars. ROW 1 (bottom — left to right): From Minnesota, Dean Bloemke, First Natl., Waseca; Tom Gross, Citizens St. Bk., Waterville; Tim Nelson, Princeton St. Bk.; Bernie Anderson, State Bk. of New Richland; Russell Blaschko, Arl ington St. Bk.; Al Larson, Northwestern St. Bk., Tracy; Bruce Meyer, First Natl., Fergus Falls; Robert Ahles, State Bkng. Dept., St. Paul; Myron Erstad, Northwestern Natl., Litchfield; Les Trangsrud, Greenbush St. Bk.; Shlrlene Zylstra, First Natl., Pipestone; Marlene Iverson, Westbrook St. Bk.; Gary Vanderwerf, Windom St. Bk.; David Radford, Univ. of Minn., Cloquet. Row 2: Jerry Julius, First Natl., St. Peter; Rich Peterson, First Natl., Glencoe; Bar rett deCathelineau, Pope County St. Bk., Villard; Loren Beste, First St. Bk., Sauk Centre; Jon Bautain, Morris St. Bk.; Bob Zvanovec, State Bk. of Belle Plain; Jack Quitmeyer, First Bank, Mpls.; Richard Johnson, FBS Financial, Mpls.; Mark Dokken, Calendonia St. Bk.; Tom Lindquist, Farmers & Mer chants St. Bk., Paynesville; Donn Haugen, Farmers & Merchants St. Bk., Hinckley; George Saska, Univ. of Minn., St. Paul; David Marchwick, Security St. Bk., Lewistown. Row 3: Arlene Michael, Citizens St. Bk. of MilacaOgilvie, Milaca; Michael Palmer, Americana Bk., Danube; Steve Lawrence, Citizens St. Bk., Norwood; Jim Espeland, First Bk., Alexandria; Roger Houselog, Security St. Bk., Deer Creek; Kevin Boynton, Wright County St. Bk., Monticello; Jim Linn, Univ. of Minn., St. Paul; Jim Biddle, State Bk. of Vernon Center; Don Melby, American St. Bk., Erskine; Mike Loken, TriCounty St. Bk., Ortonville; Bob Nelsen, First Natl., Plainview; Jane Kirkeby, American Natl. Bk. & Tr. Co., St. Paul; Jim Nichols, First Natl., Mabel; Logan Stamp, Klein Natl., Madison; Ken Olson, Univ. of Minn., Little Falls. Row 4: John Campbell, Citizens St. Bk., Big Lake. From Montana, Rod Bidwell, Powder River County Bk., Broadus; Tom Atkins, Montana Bk. of Circle; Tim https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Schuh, head of the U niversity of M innesota A griculture and A p plied Economics D epartm ent, took th a t opposite position saying fore ign grain trad in g m akes farm ing far more profitable and benefits con sum ers both by lower food cost and a more favorable balance of pay m ents outlook. M oving from a m acro to micro level of discussion, several ag-extension officers and bankers walked the stu d en ts through a com puter sim ulated loan process. B ankers were shown how to b etter analyze farm loan requests, using a software package developed by the U niversi ty of M innesota in conjunction w ith 19 M innesota banks in an on-going three-year pilot project. The In stitu te program includes two one-week sessions over a two year period. B ankers who completed the 1982 program received cer tificates of completion a t a gradua tion ceremony Ju ly 30. Alzheimer, First Security, Malta; Clay Landry, First Natl., Glendive. From North Dakota, Jacalyn Hansen, Federal Deposit Ins. Corp., Bismarck; Mark Beaton, First Natl., Fargo; Dave Hardie, First Natl., Wahpeton; Jerry Rask, First Northwestern Natl., Mandan; Bill Klein, North Dakota St. Univ., Ashley; Doug Thompson, Bk. of Steele, Medina; George Wald, First Natl. Bk. 8k Tr., Dickinson; Dave Canton, Federal Deposit Ins. Corp., West Fargo; Tom Sien nes, Harwood St. Bk.; Robert Lindseth, Citizens St. Bk., Ray. Row 5: Larry Eaton, First Natl., Fessenden; Rod Anheluk, Bk. of North Dakota, Bismarck; Jim Helgeson, Farmers St. Bk., Minnewauken; Darwin Engel, First Natl., McClusky; Robert Sorensen, Scandia American Bk., Stanley; Leslie Korgel, Garrson St. Bk.; Jerry Altenburg, First St. Bk., Armour. From South Dakota, John Rasmussen, Roberts County Natl. Bk., Slsseton; Jeff Eitreim, First Natl., Sioux Falls; Gerry Wenzel, First St. Bk., Delmont; Gene Holsing, First St. Bk., Warner; Dan Maher, Farmers &. Merchants Bk. 8k Tr., Morristown; Ken Karels, Dakota St. Bk., Milbank; Ken Loken, First Natl. Bk. of Aberdeen, Groton; Colgan Huber, First Natl. Bk. of Black Hills, Newell. Row 6: From Wisconsin, Larry Comstock, Jackson County Bk., Black River Falls; Jim Faust, Univ. of Wis., Menomonle; Eldon Berg, State Bk. of Arcadia; Don Huebner, Federal Deposit Ins. Corp., Madison; Thomas Parslow, Univ. of Wis., Mauston; Joe Dillie, Farmers St. Bk., Markesan; Joe Ploessl, Badger St. Bk., Cassville; Thomas Friar, Lancaster St. Bk.; Dale Maki, First Natl., Blanchardville; Chuck Thiel, The Commercial Bk., Chilton; Keith Von Seggern, First Wisconsin Natl., Milwaukee; Daniel Schwantes, Spencer St. Bk.; Arden Alexander, Bk. of Menomonie. Not pictured: Jim Taylor, Michigan Natl. Bk. of Detroit, Mich. Northwestern Banker, October, 1982 42 r Mr. Hopkins, Jr., joined the bank • in 1972 a t the A rtesian office and has been executive vice president since th a t time. South Dakota Five Named in Sioux Falls D.O. Mehlhaff, pres., Eureka J. M. Schwartz, exec. mgr., Pierre V Named to Advisory Board J. Tom Nelson III has been named as a director on the advisory board of directors a t S o u th B ranch, S io u x F a lls , F irst B ank of S o u th D akota, N.A., according to Neis E. Turnquist, chairm an a n d ch ief e x ecutive officer. Mr. Nelson is th e p r e s i d e n t and general m anager of the CocaCola and 7-Up B ottling Companies. N.W. National, Sioux Falls Elects Severson President Allan M. Severson was recently elected president, chief executive of ficer and director of the N orthw est ern N ational B ank of Sioux Falls in action taken by the board of direc tors during a special m eeting held the end of A ugust. Mr. Severson, c u rre n tly se rv ing as president and chief execu tive officer of the F ir s t N a tio n a l B ank of A ber deen, fills the position vacated by C.P. “ B uck” Moore, who re cently was ap pointed region 6 president of the N o rth w e st B a n c o rp o ra tio n . M r. Moore will rem ain as chairm an a t the bank in Sioux Falls. Mr. Sever son will begin his new duties as president October 1. H aving begun his career w ith Banco in 1959 a t M oorhead, Minn., Mr. Severson served in various posi tions and became vice president for operations, agricultural and com mercial lending. In 1965 he was elec ted president and chief executive of Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ficer a t F irst N ational Bank, G raf ton, N.D. He served as senior vice president a t F irst N ational B ank of Fargo, N.D. from 1968-1971; presi dent of N orthw estern National Bank of Owatonna, Minn., from 1971-1976, and president a t F irst National Bank of Aberdeen, S.D. from 1976 to pre sent. Three Officers Join Pierre BankWest Staff Three new officers, Joe Zolnowsky, Charles H. Burke I II and L arry Collamer, have joined BankW est in Pierre, according to Charles H. Burke, president. Mr. Zolnowsky joined the b a n k ’s internal audit departm ent after be ing graduated from the U niversity of South D akota w ith a degree in business. Mr. Burke was elected a custom er service officer of the Pierre Branch. He previously was w ith Am erican S tate B ank in Yankton. Mr. Collamer will serve as a pro gram m er in the d a ta processing de partm ent. He m ost recently served as a program m er/program m er ana ly st a t A lton B ank and T ru st Co., Alton, 111. Joins Mitchell Bank Doug M orstad has joined the staff of F irst M itchell N ational B ank as a ssista n t vice president in the commercial loan departm ent. Mr. M orstad has been employed the p a st five years by W estern B ank & T rust, M arshall, Minn. Prior to th a t he was associated w ith banks in Sioux Falls and C arthage. Ms. Vollmer started in 1977 as a credit analyst and was elected a com mercial lending officer in 1979. Mr. Burchill joined in 1977 as a manage- ® m ent associate, was named credit analyst in 1979 and was elected a commercial loan officer in July of th a t year. Mitchell President Elected Boyd D. Hopkins, Jr., has been elected president and chief executive officer of Live Stock S ta te Bank, M itchell. He succeeds Boyd B. H op kins, Sr., who has been elected chair man. He has served as president since 1961. • A t N ational B ank of South D akota, Sioux Falls, five officers were advanced, according to Nels E. T urnquist, chairm an and chief ex ecutive officer. T e rry Seiersta d has been nam ed assistan t vice p resid e n t; C arol R y sa v y , tru s t operations officer, and Den nis H olzw arth, in v e s tm e n t of ficer, all in the tr u s t d e p a rt T. SEIERSTAD ment. In Rapid City, Sandra Vollmer and P a t Burchill have been advanced to assistan t vice president. Mr. Seierstad began his career w ith the bank in 1980 as a tru s t in vestm ent officer. Ms. Rysavy started w ith the bank in 1969, serving m ost recently as tru s t adm instrative of ficer. Mr. Holzwarth has been with the bank since 1974, m ost recently as assistan t tru s t investm ent officer. S. VOLLMER P. BURCHILL 43 r tem ber would be completed by the end of October or near the beginning of November. Also she sta te d th a t next y e a r’s applications should be processed in three to five weeks. North Dakota ABA Launches National School of Retail Banking J.M. McGmIey, pres., Williston H. J. Argue, exec. dir., Bismarck N.D. Bankers Elect Group Officers H E N orth D akota B ankers A s T sociation Group M eetings were being held while this m agazine was going to press. Following are the candidates th a t were scheduled to be elected into group officer posi• tions. Northeast Group: P re sid e n t— M .I. Hoffman, executive vice presi dent, F irst S tate Bank, Munich; Vice P resident—Ja ck H anson, vice ® p r e s id e n t, N o rth w e s te rn S ta te Bank, Hillsboro, and Secretary/ T reasurer—P eter W. Nielsen, ex ecutive vice president and tru s t officer, F irst N ational B ank in G rand ® Forks. Northwest Group: P r e s id e n tR ichard A. Johnson, vice president, Citizens S tate Bank, Rugby; Vice _ P resident—C urtis Zimbelman, assis9 ta n t cashier, F irst W estern Bank, M inot, and Secretary/T reasurer— Je rry Melby, president, F irst Na- • Mid-Year Figures Reported A recent report from the D epart m ent of B anking and Financial In stitu tio n s in N orth D akota showed ^ figures for the 141 financial in stitu tions in N orth D akota as of Ju n e 30, 1981. This represents 136 sta te banks, four tru s t companies and The B ank of N orth D akota, (all figures are in thousands of dollars) N et loans for the combined group were $1,883,280. Total deposits for the group were $3,109,871. Total equity capital was $318,102. • Applications Approved The Federal Reserve B ank of M in neapolis has approved the following • applications to become bank holding com panies: Belfield B ancshares, Inc., Belfield, to acquire F irst N a tional B ank of Belfield; Citizens B ank Holding Company, Finley, to ® acquire Citizens S tate B ank of Fin ley, and Security Bancshares, Inc., https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tional Bank, Bowbells. Southwest Group: P re sid e n t— H arvey H uber, president, Union State Bank, Hazen; Vice President— Joseph Zilkowski, president, F irst N ational Bank, Belfield, and Secre tary/T reasurer—Ronald Keeley, vice president, S tate B ank of Burleigh County, Bismarck. Southeast Group: P re sid e n t— H arley D. Ju n d t, president, F irst N ational Bank, Ellendale; Vice Pres id en t—W ayne C. Leiner, executive vice president, D akota Bank, Fargo, a n d S e c r e ta r y /T r e a s u r e r —P .B . (Blaise) Johnson, vice president, F irst N ational Bank, Jam estow n. The new vice presidents elected to the N ortheast, N orthw est and South w est G roups and the new secretary/ treasurer elected in the Southeast Group will begin two-year term s on the NDBA Executive Council fol lowing the 1983 convention. D unseith, to acquire Security S tate B ank of D unseith. Federal Guideline Changes Cause Student Loan Delay S tudents who have applied for education loans through the B ank of N orth D akota stu d en t loan dep art m ent, Bism arck, should not be dis couraged if they have not received their loan monies, reported Jeannine Christy, vice president. Over 6,300 loan applications are being processed this year and delays in federal in volvem ent in the program have caused delays in processing pro cedures. She stateed, “ Before changes in federal guidelines and requirem ents, processing a loan used to take about four to six weeks. Because of the backlog we are now experiencing, the processing is taking about eight to ten weeks. Ms. C hristy was hopeful th a t the applications being processed in Sep Two 1983 sessions of the ABA N ational School of Retail B anking have been announced by the A m er ican B ankers Association. The new school is the successor to the A B A ’s N ational In stalm en t Credit School and will continue to emphasize con sum er credit offerings — b u t w ith an expanded curriculum including cour ses on asset-liability m anagem ent and d eposit generation, am ong others. B oth sessions, February 6-18 and Septem ber 18-30, will be held a t the Oklahoma Center for Continuing E ducation a t the U niversity of Okla homa, Norm an. The Oklahoma Cen ter is an excellent educational facili ty equipped w ith the late st in audio visual aids and other innovations. The expanded retail banking cur riculum includes the following cour ses, as well as a range of specific con sum er c re d it and m an ag em en t topics: •autom obile and small equipm ent leasing •cross-selling of consum er finan cial services •electronic delivery system s •introduction to m icrocom puters •m arketing strategies •personal tru s t and agency ser vices •real e state finance: first and se cond m ortgages •retail banking’s place in the b a n k ’s structure The class sessions consist of lec tures by o u tstanding bankers and educators, along w ith case studies which involve stu d en ts in decision m aking. Small discussion groups give each stu d en t a chance to p a r ticipate actively. All ABA m em ber bank officers and employees are eligible for adm is sion to the new retail banking school, w ith non-member applicants accepted on a space available basis. The cost is $1095 for ABA m em bers, $1350 for non-members for the two week session and includes room and board and all classroom m ater ials. To register, call Vicky E sser Barr, registrar, (202) 467-4941. Northwestern Banker, October, 1982 s 44 ' iy. » tourism participate in jo in t prom o tions, shared data and cooperative program m ing. The 1988 W inter Olympics will be hosted by Calgary w ith a projected revenue of $450$500 billion being generated by the games. I t is anticipated th a t m any of the people visiting the Olympics will also schedule travel into Mon tana. The m ost dram atic philosophical difference betw een the Canadians and M BA m em bers relates to the adm inistration of tru s t funds com m on to both governm ents. M ontana has the Coal Tax T ru st F und and the northern counterpart is the H eritage Fund. B oth funds are de NEWLY elected MBA officers are: Immed. Past Pres.—Robert Reiquam; MBA Exec. Vice signated for future generations and Pres.—John Cadby; Pres.—Erie Gross; Vice Pres.—Robert Sizemore, and Treas.—Chuck each enjoys a sizeable surplus. Pedersen. H eritage F und monies are, on occa sion, used to m ake below m arket rate loans to small business ven tures unable to obtain conventional By STEVE BURCH B ank Billings. The economic and cultural simi financing. The M ontana Bankers A ssociate Publisher larities and differences betw een A ssociation disagrees w ith th is H E picturesque Canadian Rock A lberta and M ontana were reflected practice and opposes a sim ilar pro ies provided the backdrop for in the convention them e “ B ridging posal in M ontana known as In itia the 79th annual M ontana Bankers B orders,” and this topic was dis tive 95. A ssociation Convention held A u cussed by panelists A.F. “ Chip” D anny Wall, staff director of the g u st 24-27 in Banff, Canada. H igh Collins, A lberta deputy provincial S enate Com m ittee on Banking, lighting the convention activities treasurer; A1 M cDonald, deputy H ousing and U rban Affairs, gave was the election of M BA officers for m inister, A lberta D epartm ent of the convention a progress report on the 1982-83 year. Elected to the of Tourism and Small Business, and the Senator G arn sponsored bank fice of president was Erie Gross, Don Peacock, public affairs m an ing bill, S. 1720. The bankers were president, L ittle H orn S tate Bank, ager, B ank of M ontreal. The panel informed th a t the bill in its present H ardin. A native of M ontana, Erie pointed out th a t both areas are rich form does not contain m any favor holds a degree in A gricultural Eco in m ineral wealth, geographically able provisions for the commercial nomics from M ontana S tate U niver rem ote from their respective na banking industry. In fact, Mr. Wall sity and has taken graduate banking tional bureaucracies and each relies suggested th a t “ dam age control” courses a t Colorado S tate and the on agriculture and livestock produc type tactics would have to be em U niversity of Colorado. He was tion as m ajor elem ents in their ployed when the bill goes on the associated w ith the F irst N ational economies. Their natu ral beauties floor to “ shore it u p ” from further B ank of Miles City from 1960-1968 draw m any to u rists to both areas a tta ck by industries p en etrating the where he served as vice president each year and the departm ents of financial services field. He did not and senior agriculture loan officer. He joined the L ittle H orn S tate B ank in H ardin in 1969 and was elected president of th a t bank in 1978. Erie is a p a st president of the Upper M idw est A g Credit Council and served as M BA Group 7 presi dent in 1977. O thers elected were Vice President-R obert Sizemore, president, W estern B ank of Chinook; Trea s u re r-C h u c k Pedersen, president, F irst In te rsta te B ank of G reat Falls, and Im m ediate P a st Presi d en t—Robert Reiquam, president, F irst B ank Miles City. Elected to represent M ontana on the ABA Council were Don Olsson, executive CONVENTION speakers included this panel of Canadians: “ Chip” Collins, Deputy Provin vice president, Roan S tate Bank, cial Treas. of Alberta; Al McDonald, Deputy Minister, Dept, of Tourism & Small Business, and R obert Waller, president, F irst and Don Peacock, Mgr. of Public Affairs, Bank of Montreal, Calgary. Erie Gross Elected Montana President T Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M o n ta n a N ew s # hesitate in charging the bankers a t large w ith not becoming more direct ly involved in the legislative process while Senator G arn was drafting the original legislation. The success of # others, such as the securities in dustry, in dealing w ith the bill was credited to their personal g rass roots lobbying efforts. He also credited the ABA w ith having one of # the m ost well organized professional lobby organizations in W ashington. However, in his close, he echoed Senator G arn ’s charge to the ABA to quit its “ H atfield and McCoy # sibling riv alry ” w ith the th rift in d u stry and concentrate on the real th re a t being offered by the “ new kids on the block.” A BA Im m ediate P a st President ® Lee G underson, president, B ank of Osceola, Osceola, Wis., followed by expressing his personal disappoint m ent in the banking bill. He chal lenged th a t w ithout the expanded ^ real e sta te and insurance services, broker investm ent powers and com petitive instrum ent provisions of 45 the original bill, commercial bankers lowering of interest rates, reduced will continue to be denied the oppor inflation and the recently passed tax tu n ity to compete in offering cus bill as positive indications of policy tom ers complete financial services. success. However, in relation to Mr. G underson also told the bankers overall recessionary trends, Mr. th a t the general public’s confidence S tern cautioned against m isplaced in the banking system can often be a optim ism and offered sta tistic s on very fine line. He feels th a t it would housing sta rts, unem ploym ent and be a good practice for bankers to em m anufacturing capacity to support phasize the security of bank depos his view. D uring the m em bership m eeting its and to explain to custom ers the protection offered by FD IC. He add the MBA, by unanimous vote, passed ed th a t unfounded generalizations of a resolution endorsing the Federal circum stances leading to a Penn B a la n c e d B u d g e t A m e n d m e n t Square type of situation can filter S.J.R. 58. They also approved a re down and affect banking a t all levels. solution calling for the repeal of the G ary Stern, senior vice president, recently passed Tax Bill H.R. 4961, Federal Reserve B ank of M inneap which includes a withholding-atolis, presented the M BA w ith his in source ta x provision on interest in terp retatio n of the effect of the come savings. A th ird resolution F ed ’s public policy. Referring to Oc voices M BA opposition to Initiative tober, 1979, as the date of policy 95, which the association m em bers change, he feels th a t new Fed policy feel would establish the base for a has resulted in b etter control over state-ow ned bank by providing be the money supply during crucial per low m arket rate loans to small bus iods, more volatile in terest rates and iness ventures in M ontana using the has been a contributing factor in the surplus monies from the Coal Tax □ slow down of inflation. He cited the T ru st Fund. ENJOYING the Security Bank of Billings Bar-B-Que are: LEFT—Pennie and Gene Coombs, v.p., Security Bk., Billings, with Sandy Erickson, daughter of Claude Erickson, chmn., 1st Security Bk., Livingston, and Bernie. RIGHT—Linda and Jim Laird, sr. v.p., United Natl. Bk., Sioux Falls; Byron Kluth, pres., 1st St. Bk., Shelby, and his wife Rose, with Sarah and Dick Kjoss, pres., Security Bk., Billings. W mlÊËm Bob Reiquam, pres., 1st Bk., Miles City; Jim Beaton, pres., Western St. Bk., Billings; Bob Dressel, sr. v.p., United Bk., Denver, and Bill Tait, pres., 1st Natl. Bk., Anaconda & Butte. RIGHT—Bob Sipple, sr. v.p., American Natl. Bk. & Tr., St. Paul, and his wife Brownie visit with Joan and Bruce Miller, pres., 1st Citizens Bk., Butte, and Lorie and Bob Jacobson, v.p., American Natl. Bk. & Tr., St. Paul. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis We bring experience, innovation to ag financing. Meeting the rapidly increasing capital demands of agriculture is a chief concern not only of our region's farmers and ranchers but also the banks who serve them. That is why we formed AgCo — to modernize agricultural lending by tapping new sources of funds to help you meet the growing needs of your finest agricultural customers. Large, Short-term Loans AgCo specializes in large, short-term agricultural loans — $250,000 to $6 million.— which you can provide to your customers on a correspondent basis. These loans are financed through the sale of insured, A-l rated commercial paper, drawing funds from our nation’s money centers to the agricultural heartland. This unique financing method offers a ready source of funds, often at rates lower than that of competitive lenders. A Century of Experience AgCo is one of many financing tools available from Omaha National. We have been lending to agri culture for more than a century and continue to provide the expertise required to help you and your customers determine the best financing package. To discover how AgCo and Omaha National can help you serve your customers better, contact your Omaha National representative, or call AgCo at (402) 348-6565. AgCo /O m aha National BanX Subsidiary of Omaha National Corporation 17th & Farnam — Omaha, Nebraska 68102 Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 48 M o n ta n a N ew s More Convention Photos LEFT—Joyce and Phil Sandquist, pres., 1st Security Bk., Bozeman, with Beth and Bob Dressel, sr. v.p., United Bk., Denver. RIGHT—Pat McGarraugh, exec, v.p., NW Natl. Bk., Gt. 0 Falls, and his wife Joanne visit with Debbie and Harry Devereaux, v.p., 1st Natl. Bk., Denver. LEFT—Steve Olson, pres., 1st NW Natl. Bk., Kalispell, and his wife Elaine join Joan and Don Pederson, sr. v.p., NW Natl. Bk., Mpls. RIGHT—Edna and Steve McSweeney, pres., 1st Bk., Ft. Benton, with Nancy and Lenny Kiskis, corr. bkg. off., 1st Bk., Mpls. LEFT—Jerry Woods, exec, v.p., Security Bk., Billings; Bob Sipple, sr. v.p., American Natl. Bk. & Tr., St. Paul; Chuck Pedersen, pres., 1st In terstate Bk., Gt. Falls, and Rod Smith, pres., U.S. Natl. Bk., Red Lodge. RIGHT—Dick Carey, corr. bkg. off., 1st Bk., St. Paul and his wife Jean with Peggy and David Anderson, pres., Village Bk., Gt. Falls. LEFT—Carol Addington; Marjorie Tucker, pres., Security St. Bk., Plentywood; Keith and Velma McDonald, p.r. off., Security St. Bk., Plentywood, and Bill Addington, v.p., F & M Marquette Natl. Bk., Mpls. RIGHT—Harry Lattin, pres., 1st Interstate Bk., Kalispell; Randy Jacobs, pres., Mont. Bk. of Billings; Les Alke, Comm, of Financial Institutions, Helena, and Stan Klimas, pres., Valier Bk. of Mont. Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M o n ta n a N ew s • Elected in Great Falls Two Appointed in Billings Jam es D. Hopkins has been nam ed president of Central B ank of M ontana, G reat Falls. He joins Cen^ tra l B ank from U nited N ational B ank for South D akota, Sioux Falls, where he was vice president and regional m anager for its Rapid City area branches. ^ Mr. Hopkins began his banking career in 1964 a t the N ational B ank of the N orth E a s t in N orth E ast, Penn. In 1970 he moved to the F irst N ational B ank of Mobile, Ala., ^ where he began as a ssista n t branch m anager and was ultim ately prom o ted to a ssista n t vice president and branch m anager. He joined the U ni ted N ational in Sioux Falls in 1978. # First Bank Billings has announced the appointm ent of Suzanne Red inger as real estate loan officer and Ken K aiser as consum er finance of ficer. Elected President of Computer Corporation • • • Jam es A. Nym an, former vice president of the Com puter Corpora tion of M ontana, G reat Falls, has been elected president of the cor poration, and Dennis Sugden has been nam ed vice president. He had been serving as system s officer. Mr. N ym an joined the corpora tion in 1967 as a com puter operator and was nam ed vice president in 1970. Mr. Sugden transferred to com p u ter corporation in 1975 from F irst Security B ank in Glasgow. ^ Elected to Board in Billings W illiam A. Thom pson has been elected to the board of F irst N orth w estern B ank of Billings. He is vice president and general m anager of 0 the Billings Region of B urlington N orthern. Acquistion Approved ^ The application by Glendive Bancorporation, Inc., to acquire Fidelity Bank, Glendive, was recently ap proved by the Federal Reserve Board. • Big Sandy Election Told S tanly H. Klim as has been elected president and director of N orthern B ank of M ontana, Big Sandy. ® Mr. Klimas began his banking career as a m anagem ent trainee a t C entral B ank of M ontana in G reat Falls in 1971. In 1974 he moved to Valier B ank of M ontana as vice • president and m anager and was elec ted president and director in 1976. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 49 Plans for 20-Story Security Bank Building Announced Plans to construct a m ajor office building in downtown Billings, w ith Security B ank as principal occu pant, were jointly announced a t a news conference a t Security B ank by Robert Dahlin, president of Opus, Tom Scott of Security B ank and Joel Long of U nited Industry. An agreem ent in principle has been reached to build a 20-story of fice tower, projected to range in size from 200,000 to 250,000 square feet of floor space and cost an estim ated $20 to $25 million. S. REDINGER K. KAISER In conjunction w ith the develop Ms. Redinger began her career m ent, plans are being discussed w ith w ith F irst B ank Billings in 1976 and city officials for construction of a was prom oted in 1980 to her m ost city-financed parking ram p on Uni recent position as real estate loan ted In d u stry property across the street. Presently on the site of the representative. future office tower is the Security Mr. K aiser joined the bank in drive-in and several bank-owned 1978 and was prom oted to u n it m an ager in the b a n k ’s consum er finance single story commercial buildings. The bank plans to occupy the first departm ent later th a t year. nine floors, w ith to ta l space of 90,000 square feet, and the rem ain Two Named in Missoula Joseph J. Friend has been elected der of the building is to be leased to acting president of M issoula B ank business and professional tenants. The new building is to be owned in of M ontana, and E d Campbell was a jo in t venture by Security and elected vice president and chief cred Opus, w ith U nited In d u stry partici it officer. M r. F riend replaces Ronald F. Bloom quist, who recently p atin g in the developm ent of the resigned after serving as president ram p. Mr. Dahlin said the project is being reviewed w ith the city and since 1974. Mr. Friend began his banking car th a t the developm ent is contingent eer in 1961 w ith Rock County B ank upon approval of the city parking a t Luverne, Minn. In 1965 he joined ram p. Plans call for breaking ground International S tate Bank, In te rn a by year-end and com pleting the tional Falls, Minn., as vice president building in the sum m er of 1984. The independent Security B ank and served in th a t capacity until currently is located a t 3rd Avenue 1970 when he became executive vice N orth and N orth 29th Street. No president and m anaging officer of the U nited N ational B ank in Libby. plans were announced for use of the In 1971, he was elected vice presi existing building upon completion of dent of W estern B ank & T ru st Co. of the new tower. M arshall, M inn., and moved up to vice president and senior loan officer President Elected at Valier Alan L. Pearson has been elected in 1976. Mr. Friend joined M idstate B ank of M ontana, a B ank of M on president of Valier B ank of M on tan a System affiliate a t Lewistown, tana, Valier. The announcem ent was as president in 1978, where he served m ade by Samuel R. Noel, executive until his election as vice president vice president of B ank of M ontana and senior credit officer of B ank of System . Mr. Pearson entered the banking M ontana System , headquartered in G reat Falls. He will continue to hold ind u stry in 1975 as a m anagem ent th a t position as well as the M issoula trainee a t Citizens B ank of M ontana in H avre. L ater th a t year, he was B ank m anagem ent. M r. Cam pbell joins M issoula elected a ssista n t cashier and served B ank of M ontana from Seattle F irst in th a t capacity until 1977 when he N ational B ank in Seattle, W ashing was prom oted to a ssista n t vice pres ton, where he was for nine years, ident. In 1980 he was elected vice m ost recently in the correspondent president and agriculture d ep art m ent m anager. banking division. Northwestern Banker, October, 1982 50 BMA Convention Looks at ‘New Marketing’ ^ gi cted by a panel of BMA IT H banks locked in an inten W sive com petitive b attle w ith nonbanks for financial services, the n atio n ’s top executives in bank m ar keting get a chance to compare notes and gauge the success of their strategies a t the 67 th annual con vention of the B ank M arketing A s sociation convening here Oct. 24-27 a t the Phoenix Civic Plaza. An estim ated 2,000 bank execu tives and their spouses are expected for the four day conference whose them e is “ Com peting in the Finan cial Services Industry: S trategies and Tactics for the ‘New M ar keting. ’ ’’ Am ong speakers lined up for the convention are senior officers from four of the n atio n ’s largest banks: B arry F. Sullivan, chairm an and CEO of the F irst N ational B ank of Chicago; J .J . Pinola, chairm an and CEO of the F irst In te rsta te Corp., Los Angeles; Ben F. Love, chairm an and CEO of Texas Commerce Bancshares, H ouston, and E dw ard A. Jesser, Jr., chairm an of U nited Je rse y B an k /N o rth and form er chairm an of U nited Jersey Bank, Hackensack, N .J. Also on tap as speakers are repre sentatives from leading nonbanks: Robert P. R ittereiser, executive vice president - strategic developm ent of M errill Lynch & Co., New York; Wil liam McCormick, executive vice president of Am erican Express; Finn M.W. Casperm an, chairm an of Beneficial Corp., W ilmington, Del.; and A nthony M. Frank, chairm an and president, F irst Nationw ide Savings, San Francisco. The banker group representing senior m anagem ent will take p a rt in a convention panel W ednesday, Oc tober 27, dealing w ith the “ get to u g h “ a ttitu d e of m anagem ent in responding to nonbank com petition. Also joining th a t panel are two p a st presidents of the Am erican Bankers Association: Lee E. G un derson, im m ediate p a st ABA pres ident and president of the B ank of Osceola, Wis., and C.C. Hope, Jr., 1979-80 ABA president and vice chairm an of F irst Union N ational Bank, Charlotte, N.C. D iscussing the “ New M arketing’’ on the opening day of the conven tion in a luncheon address will be Leonard L. Berry, professor of m ar keting a t the College of Business Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A dm inistration, Texas A&M Uni versity, College Station. A nother convention speaker lead ing a session entitled “ M arketing W arfare’’ will be Sig Front, senior vice president and director of m ar keting for the Sheraton Corp. In his presentation, Mr. F ront will de scribe how banks should “ analyze, a tta ck and overpow er’’ the com peti tion. The keynote speaker on M onday will be F.G. Rodgers, vice president of m arketing, IBM Corp. On the convention program is a series of workshops and sem inars covering a range of topics im portant to bank m arketers. Among them are sessions on relationship banking, cor porate EFTS, nationwide ATM net works, financial counseling and un derstanding money m arket checking and Cash M anagem ent Accounts. One additional feature during the convention will be a special sym posium for com m unity bank m ar keters and a session on m arketing m anagem ent issues. T aking p a rt in the m arketing m anagem ent session will be Convention Chairm an Mi chael P. Sullivan, vice president of corporate com m unications of F irst Union N ational Bank, Charlotte, N.C. joined by a group of colum nists w riting for the A m e r i c a n B a n k e r newspaper. They include: A rth u r C. Lucey, senior vice president, F irst N ational B ank of Denver; Norwood W. “ R ed’’ Pope, senior vice president-m ar keting, Sun B anks of Florida, Inc.; Paul A. Willax, president of Em pire Savings Bank, and consultant Jack W. W hittle, chairm an of W hittle, M otley & H anks of Chicago. W il liam Zimmerman, editor of A m e r ic a n B a n k e r , will be m oderator. W ith an eye to current world hap penings, the economy and the offyear elections in November, a spe cial convention event on Tuesday, October 26, will be a panel presenta tion by four NBC TV correspon dents: Edw in Newman, Irving R. Levine, Don Oliver and m oderator D avid Burrington. A highlight of the convention will be an announcem ent on W ednesday, October 27, of the winners of the an nual Golden Coin Com petition hon oring o u tstanding m arketing and com m unity affairs program s of banks during 1981-82. The winners Farm Managers, Appraisers Select Executive Officers • T. J a n W isem an of Shabbona, 111., is the new executive vice president of the Am erican Society of Farm M anagers and Rural A ppraisers, ^ headquartered in Denver, Colo. ™ The agricultural organization has a m em bership of 3,200 professional farm /ranch m anagers, rural apprai sers and agricultural consultants £ throughout the U nited S tates and Canada. Mr. W iseman, form erly staff vice president of the F arm and Land In stitu te of the N ational A ssociation # of R ealtors in Chicago, has had more th an 14 years of adm inistrative, m arketing and professional educa tional experience. He holds m em ber ship in a num ber of professional # organizations, including the Jo u r nalism E ducation Association, DeKalb County Farm Bureau, the Am erican Society of A ssociation Executives, the F arm and Land In- • stitu te and the Am erican Society for Training and Development. RMA Plans Fall Convention Robert M orris A ssociates will hold its 68th annual Fall Conference (convention) October 31-November 3 a t the Sheraton Bal H arbour, Flor ida. RM A is expecting more th an 2,000 bank commercial lending and credit officers and their spouses to a tten d the Conference. The program will examine closely their m ajor pro blems and opportunities. The keynote address will be deliv ered by B ennett A. Brown, chair man, Citizens and Southern Georgia Corporation and The Citizens and Southern N ational Bank, A tlanta. M ajor addresses also will be given by econom ist D avid M. Jones; RMA President Douglas W. Dodge, ex ecutive vice president, MercantileSafe D eposit and T ru st Company, B a ltim o re ; b a n k a n a ly s t A lex S h esh u n o ff; A t l a n t a ’s F e d e ra l Reserve B ank President Dr. W illiam F. Ford; and com m unications con su lta n t Dr. Lym an Steil. A num ber of panels and concur rent sessions, featuring experienced bankers and other experts in com mercial lending and areas related to commercial lending, also will be of fered. 51 Colorado A.R. Koeneke, chmn. & près., Rifle D. A. Childears, exec. mgr., Denver •V Appointed President At South Denver National 1 G arth G. Thom as has been ap pointed president and chief execu tiv e officer of S o u th D e n v e r N ational Bank, ^ a c c o r d in g to C.E. Snow, pres ident and chief executive officer of South Denver 'B a n k s h a r e s , Ltd. For six years G.G. THOMAS M r. T hom as served as president of Boulevard 'Colorado N ational Bank, Denver, and in 1980 was designated presi dent of Colorado B ank - Tech Cen ter. Denver Officer Named Jacqueline Sneed M angrum , as sista n t vice president of public af^ fairs a t Colorado N ational Bank^ shares, Inc., has been nam ed pres ident of the Denver U rban League. Ms. M angrum has been active in the Denver U rban League for three ^ years and was vice chairm an before w being nam ed president. As a public affairs specialist, Ms. M angrum joined Colorado N ational B ank in 1977. * United Banks to Buy Stock The directors of U nited B anks of Colorado, Inc., Denver, a m ulti-bank holding company, have authorized l i t h e repurchase of up to 300,000 shares of the 9.2 million shares of the com pany’s stock currently ou t standing. The purchase of the stock m ay be # m a d e from tim e to tim e over the next two years in the open m arket and in privately negotiated tran sac tions. N. Berne H art, president and ® chairm an, feels U nited B an k s’ stock is presently undervalued and, accor https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis dingly, offers an excellent invest m ent opportunity. U nited B an k s’ stock traded a t $153A bid Tuesday, A ugust 24, in th e N a tio n a l O v e r-th e -C o u n te r m arket. Sale of Two Denver Area Banks Announced C.E. Snow, president and chief ex ecutive officer of three bank holding companies which own Cherry Creek N ational Bank, South Denver N a tional B ank and The B ank of W est m inster, has announced the pro posed acquisition of G uaranty B ank and T ru st Company, 17th and S tout S treets, Denver, and Jefferson B ank South, 1858 So. W adsw orth Boule vard, Lakewood. The combined assets of both banks to ta l nearly $170 million. Their combined assets will to tal ap proxim ately $325 million, m aking the affiliation, one of the largest in the state. The investors m aking the p u r chase include Mr. Snow and a group headed by Bill L. W alters, prom i nent Denver architect and devel oper. The acquisition is subject to bank regulatory approval, w ith clos ing expected in m id-1983. First Natl. Bancorporation Elects Lee Vice Chairman D irectors of The F irst N ational B ancorporation, Inc., Denver, re cently elected Robert E. Lee vice chairm an of the board, according to Theodore D. Brown, chairm an and chief executive officer. Mr. Lee is a m em ber of the recently-formed of fice of the chairm an, which is re sponsible for in itiating policy recom m endations and for im plem enting policy through the corporate stru c ture. O ther m em bers of the office of the chairm an in addition to Mr. Brown and Mr. Lee are A lbert D. Latham , president and chief operating officer of the B ancorporation, and Jo h n M. Eggem eyer, who recently joined the com pany as executive vice president of finance and adm inistration. Mr. Eggem eyer also has been confirmed as a m em ber of the Bancorporation board. In other action, the holding com pany board nam ed Kyle McClaugherty, president and chief executive officer of The F irst N ational B ank of Bear Valley, and Bruce A. Schriefer, p resid e n t of F oothills N ational B ank of F o rt Collins, to the Bancor poration advisory board. The ad visory board is m ade up of the top operating officer of each of the 15 Bancorporation banks and its three non-bank subsidiaries. Acquisitions Approved The Federal Reserve Board re cently announced approval of the applications of U.S. Bancorp, P o rt land, Ore., to acquire Pueblo Bene ficial In dustrial Bank, Pueblo, Col orado Springs Beneficial Ind u strial Bank, Colorado Springs, and Trini dad Beneficial In d u stria l Bank, Trinidad, and for Colorado N ational B ankshares, Inc., Denver, to acquire The Exchange N ational B ank of Col orado Springs. Boulder Executive Named Charles F. E m m er has been elected executive vice president and director a t A rapahoe N ational Bank in Boulder. Mr. Em m er previously was w ith Greeley N ational B ank where he served as len d in g officer and m anager of the commercial lending departm ent. Elected to Board in Denver J. Thom as Reagan, president, chief operating officer and director of Energetics, Inc., a Denver oil and gas exploration firm, has been named to the board of directors of Dominion National Bank of Denver. Two Appointed in Denver U nited B ank of Denver has an nounced the appointm ents of M ar vin L. Deselm and Michael F rost to a ssista n t vice president. Mr. Deselm has been p a rt of the U nited B ank System since May, 1965, when he joined the U nited B ank of Denver. Mr. F ro st joined U nited B ank of Denver in February, 1981, and was nam ed an operations officer in Septem ber, 1981. Northwestern Banker, October, 1982 52 Aurora Director Named H erbert J. Henderson, president of W estern Technology Corporation and independent m anagem ent con su lta n t for a num ber of Rocky M ountain high technology com panies, has been elected to the board of directors of Colorado N ational B ank - Aurora. Denver Officer Appointed C. Gale Sellens, chairm an of the board and chief executive officer of Denver N ational Bank, has an nounced the appointm ent of Dean M. Howell to bond investm ent of ficer. Mr. Howell was m ost recently w ith H anifen Imhoff, Inc., as vice president, bond m arketing, and prior to th a t he was executive vice Wyoming H.A. Hitch, pres., Casper M. C. Mundell, exec. dir., Laramie V.P. Elected in Casper Robert W. Miracle, president and chief executive officer of W yoming National Bank, Casper, has announced the election of Richard Tem pelman as vice president and m anager of the instalm ent lending departm ent. He replaces Tom Grove, who will be leaving to serve as president of the W yom ing B ank of Rawlins. Mr. Tem pelm an joined the bank in June, 1982, as a ssista n t vice president and m anager of direct lending. He has had 20 years of to tal bank experience before joining W yo m ing National, m ost recently w ith F irst N ational B ank of Dubuque, Iowa, where he was head of the in stalm ent lending area. Figures Released for Wyoming Banks The Office of the S ta te Exam iner recently released its a b stra c t report for the 61 sta te and 50 national banks in W yom ing for Ju n e 30, 1982. All dollar figures are listed in thousands. Net loans for the combined 111 Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis president w ith Gerwin and Com pany, an investm ent banking firm. Central Bancorp. Acquires Broomfield State Bank George B. McKinley, president and chief executive officer of C entral B ancorporation, Inc., and M arvin F. Owens, III, president of Broomfield S tate Bank, have announced th a t CBI has completed the acquisition of Broomfield B ank through the pur chase of General Bancorporation, Inc., a one-bank holding company. The name of the bank will be changed to Central B ank of Broom field. No change in the m anagem ent of the bank is anticipated. CBI also recently received ap proval from the Board of Governors of the Federal Reserve System to ac quire Chatfield Bank. Aurora Directors Named * F irst N ational B ank of A urora has elected to its board of directors Robert L. M itton, Jr., F irst of A u rora loan departm ent vice president and m anager; Michael S. M orris, president of EFM O R and Company, and Larry Pisciotta, president of Pisciotta Firestone. The announce m ent was m ade by F irst of A urora President Melvin E. Em eigh. Elected to Tech Center Board Charles H. Sanford has been elected to the board of directors of Colorado Bank-Tech Center, Den-* ver. Mr. Sanford is owner and presi dent of Sanford Homes, Inc., a firm engaged in neighborhood develop m ent and residential construction in the Denver area. New Name for Holding Company • W yom ing B an co rp o ratio n has changed its name, effective Sep tem ber 1, to F irst W yoming B a n - ^ corporation. The new symbol on the Am erican Stock Exchange will be FWO. David R. Johnson, chairman, pres ident and chief executive officer, said £ the new name allows closer iden tification w ith the com pany’s F irst W yoming B ank affiliates. to ta l banks in W yom ing were $2,100,211, with a break down of $751,185 as state and $1,349,026 as national. < Total deposits for the combined Merger Plans Announced g ro u p w ere $3,322,621; s ta te , B ank of Laram ie and F irst W yom $1,211,253, and national, $2,111,368. ing B ancorporation have agreed in The percent of loans for the com principle for B ank of Laram ie to be bined group was 63.1%; for state, come an affiliate of W ybanco, head 62%, and for national, 63.9%. Per quartered in Cheyenne. * cent of to ta l equity capital to de The announcem ent was m ade by posits for the combined group was J.A . G uthrie, Jr., chairm an of B ank 10.5%; for state, 11.1%, and for na of Laram ie, and D avid R. Johnson, tional, 10.1%. chairm an of W ybanco. Mr. Johnson noted th a t the bank* Joins Wybanco as V.P. will continue to be operated by the Floyd H. Irlbeck has joined same m anagem ent, staff and. direc W yom ing B ancorporation, Chey tors as it has in the past. Mr. enne, as vice president-operations G uthrie will rem ain as chairm an and adm inistration, announced D avid R. Dick Van Pelt will continue as presi- * Johnson, chairm an, president and dent and tru s t officer following the completion of the m erger. chief executive officer. The term s of the agreem ent call Mr. Irlbeck will report to Ralph Owen, senior vice president, w ith for the purchase of the B ank of responsibilities in operational ac Laram ie for a com bination of cash counting. Prior to joining W ybanco, and convertible subordinated deben he was w ith O m aha N ational B ank tures of W ybanco, and is subject to from 1971-1982, where his duties in the execution of a final definitive cluded controller’s division, general agreem ent betw een the two com services m anager, check processing panies and approval of the Board of Governors of the Federal Reserve. and funds analysis m anager. 53 First of Denver is now: First of Greeley is now: IntraWest Bank of Greeley Routt County National Bank is now: IntraWest Bank of Steamboat Springs First of Northglenn is now: IntraWest Bank of Northglenn First of the Southwest is now: IntraWest Bank of Southwest Plaza IntraWest Bank of Denver U.S. Bank of Grand Junction is now: National State Bank of Boulder is now: IntraWest Bank of Grand Junction IntraWest Bank of Boulder First of Montrose is now: First of Bear Valley is now: IntraWest Bank of Montrose Republic Bank of Pueblo is now: IntraWest Bank of Pueblo IntraWest Bank of Bear Valley East Bank of Colorado Springs is now: Security State Bank of Sterling is now: IntraWest Bank of Sterling First of Southglenn is now: IntraWest Bank of Southglenn First of Aurora is now: IntraWest Bank of Aurora Coming Soon, Early 1983 IntraWest Bank IntraWest Bank of Colorado Springs of Highlands Ranch IntraWest Banks Putting our new mark on the ’80s. You see a bright new symbol of American grow th... the new mark of IntraWest Banks. We’ve changed our names to reflect the strength of our affiliation of 14 IntraWest Banks all across the State. Our same Colorado-based ownership reaffirms its dedication to your financial growth and achievement. And the same skilled individuals at the bank, now under the IntraWest mark, will draw on even greater resources and vitality to help you with all your business and individual banking needs. IntraWest Banks. We’re changing for those who live for today— and for the future. IntraWest Bank of Denver 633 Seventeenth Street Denver, Colorado 80270 Phone 293-2211 Member FDIC Deposits FDIC-insured to $100,000 Member IntraWest Financial Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 54 “I t’s n ot uncom m on fo r us to handle over S300 m illion in investm ent transactions each day. ” Boh B illm eyer U.S. N a tio n a l/ In vestm en t D ivision Good investment advice— from one banker to another. Another reason to depend on us. T h e In v e s tm e n t D iv isio n o f th e U.S. N a tio n a l B ank sp e ak s th e sa m e la n g u a g e as th e c o r r e s p o n d e n t b an k er. A nd s in c e w e ’re in th e sam e b u sin e ss, w e u n d e rs ta n d th e p re s s u r e s a n d c h a lle n g e s b a n k e rs a re facin g d a y a fte r day. T h e U.S. N a tio n a l h as b e e n b y th e sid e o f c o r r e s p o n d e n t b a n k s fo r y ears, h e lp in g m a x im iz e e x c e s s fu n d s w ith a g g re ssiv e in v e s tm e n t se rv ic e s. A nd th is c o m m itm e n t w ill c o n tin u e fo r m an y y e a rs to c o m e . Main Bank 20th & Farnam 536-2000 Regency Office 10010 Regency Circle 536-2400 Central Park Plaza Office One Central Park Plaza 536-2600 By te a m in g u p w ith th e fu ll-se rv ic e c a p a b ilitie s o f th e U.S. N atio n al, a n d th e e n o rm o u s re s o u r c e s o f o u r BANCO affiliates, c o r r e s p o n d e n t b an k s can re a c h d e e p ly in to in v e s tm e n t o p p o r tu n itie s n o t availab le b y w o rk in g alo n e. A ggressive a n d p r o d u c tiv e in v e s tm e n t a d v ic e . A g o o d re a s o n fo r c o r r e s p o n d e n t b a n k s to d e p e n d o n us. For more information, call Bob Billmeyer. Toll free. Nebraska —1-800-642-8270 Bordering States-1-800-228-9225 US National Bank of Omaha Member FDIC Affiliate of Northwest Bancorporation Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55 Nebraska H.P. Stuckey, pres., Lexington S. Matzke, Jr., exec. v.p., Lincoln A t NBA Ag Credit Conference A g B a n k e rs L o o k at M ic r o c o m p u t e r s By BEN H A LLER , JR . E ditor and Publisher ^ ^ A G B A N K IN G is ju s t as importa n t as it was 30 and 40 years ago, b u t the overlay of operations technology, an inflation-fueled econ omy th a t fru strates farm owners ^ and their bankers, and thousands of pages of governm ent regulations of the p a st three decades, call for ag bankers today who m ust be con s ta n tly updated on each of these ^ phases th a t affect their continuing basic relationship as a banker try in g to be the financial p artn er of his farm custom ers. I t was this overlay of new condi£ tions unknow n to the ag banker of the 1940s and 50s th a t the N ebraska B ankers A ssociation addressed in its A nnual A g Credit Conference la st m onth in Lincoln. The importance of the topics discussed— A sset/L iability M anagem ent for Ag B anks in a D eregulated E nviron m ent, M ABSCO A g Credit Corpora tion, M icrocom puter A pplications 4) for A g Finance, Compliance Forum, E s ta te Planning for F arm Custom ers U nder the New Tax A c t—drew a crowd of 210 bankers and 95 spou ses to the two-day conference. ^ w r \ The first afternoon began w ith a luncheon addressed by Tom Os borne, U niversity of N ebraska-Lin coln football coach. Coach Osborne centered his rem arks on the image of college football today, noting th a t violations of recruiting practices are a detrim ent to the game and are con ducted by only about five percent of the schools. Two days later his Cornhuskers easily rom ped over the Uni versity of Iowa Hawkeyes, 42-7. The first talk of the form al after noon program was given by M ark D rab en sto tt of the Federal Reserve Bank of Kansas City. He was followed by Chet Randolph of Des Moines, la., a noted ag radio broadcaster, whose topic was the same as his radio program , “ M arket to M ar k e t.” The afternoon was concluded by “ E s ta te Planning for A g Cus tom ers,” a panel consisting of Jim Hewitt, moderator, and Doug Deitchler, both Lincoln attorneys; Ja n Chris tensen, tax manager, Peat, Marwick, Mitchell in Lincoln, and Velda Rob erts, tru st officer, Jones National Bank and T rust Co., Seward. Registrants and spouses attended a Round-Up Barbeque and reception be fore adjourning to the Nebraska State Fair evening concert. Two prominent Nebraska feeders took p art in a Friday morning panel, “W hat Producers Look for from Their Banker.” They were Bryce Neidig, livestock feeder, Madison, who is president of the Nebraska Farm Bur eau Federation, and Dwain Spatz, partner, S&A Feedlot, Plainview. M oderator of the panel was M arlin Jackson, president of Security B ank in Paragould, Ark., and former chair man of the ABA Community Bankers Division. The discussion am ong the three men was very open and encour aged interesting questions from the floor to round out the panel discus sion. Dr. Sidney Hix, vice president and head of the economic asset/liability m anagem ent departm ent a t InterF irst Bank, Dallas, Tex., discussed the “ A sset/L iability M anagem ent” topic. Bill Cook, president of Beatrice N a tional Bank & T rust Company, gave a brief update on the new MABSCO Ag Credit Corporation (MASI) and its af filiation w ith Rabobank of A m ster dam. Mr. Cook’s bank is one of sev eral in the 13-state MABSCO area th a t is p articipating in a pilot pro gram th a t commenced late last m onth. The m ost recent innovation in ag banking, the use of m icrocom puters, was given a thorough review by Neil Stadlm an, vice president and ag rep for Sac City S tate B ank in Sac City, la., who has had extensive experience in the fast changing scene of m icro com puters in banks and on farm s. Mr. Jackson also was the Friday luncheon speaker. After relating a few of his inimitable A rkansas stories, he spent the m ajor share of his allotted time discussing the situation in which the banking ind u stry finds itself to day. He was especially pithy in his rem arks about the role being played LEFT—Ag panel speakers included two veteran Nebraska livestock producers. From left: NBA Ag Committeeman Keith Redinbaugh, exec. v.p., The Tilden Bank; Dwain Spatz, partner, S&A Feedlot, Plainview; Bryce Neidig, livestock feeder, Madison, and pres., Nebraska Farm Bureau, and Moderator Marlin Jackson, pres., Security Bank, Paragould, Ark. RIGHT—Neil Stadlman, v.p. & ag rep., Sac City State Bank, Sac City, la., who spoke on micro-computers for ag work. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 56 N eb raska N ew s A “ hands on” demonstration of ag software computer programs was given following the Microcomputer Workshop. At left, Don Brockmeier (seated right), v.p. & cash., Farmers State, Eustis, who was one of three panelists, demonstrates a specific ag software pro gram on an Apple II computer for a group of ag bankers. At right, Max Callen (facing camera), v.p., correspondent loan div., National Bank of Commerce, joins in small group discussion following his presentation at the same workshop. by Secretary of the T reasury Donald Regan who, as the midwife to the b irth of the M oney M arket M utual Funds while he was chairm an of M er rill Lynch, now sits on the DID C as chairm an and vetoes any efforts by banks to compete w ith his former associates. “ M icrocom puter A pplications for Ag B an k s” was the topic for one of the three w orkshops presented twice Friday afternoon. T aking p a rt in the m icrocom puter workshop were Don Brockmeier, vice president and cash ier, Farm ers S tate Bank, Eustis; Don Clauson, executive vice president, Hershey State Bank, and M ax Callen, vice president, National Bank of Com merce, Lincoln. Mr. Clauson detailed the reasons for his bank installing a microcom puter, while Mr. Brockmeier reviewed the m any innovative program s his bank has found to be of great help, and Mr. Callen reviewed briefly the pro gram developed by NBC th a t can be form atted to microcomputers in small banks. A fter brief presentations by the three men, the full house of ag bankers broke into inform al groups NIBA FAII Round-Up, November 4-5 HE Nebraska Independent Bank ers A ssociation’s Fall Round-Up Convention will be held a t the M id tow n Holiday Inn, G rand Island, on Novem ber 4 & 5. A n outstan d in g array of speakers are scheduled to address the general sessions including: R obert L. Mc Cormick, Jr., president, Stillw ater N ational B ank & T ru st Co., Still w ater, Okla., and president of the IBAA; R epresentative Douglas Bereuter (R-NE), m em ber of the House B anking Committee; Paul Dunlap, president, Haw keye B ank Corpora tion, Des Moines, la.; B.F. “ Skip” Backlund, president, B artonville Bank, Bartonville, 111.; Charles M it chell, D eputy D irector, N ebraska D epartm ent of B anking and F i nance; R obert Devaney, A thletic Director, U niversity of N ebraskaLincoln; Dwain Spatz, president, S & A Feedlot, Inc., Plainview, Neb., and Thom as M. Hoenig, vice presi dent, T enth Federal Reserve D is trict. T Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A dvance reg istratio n fee of $55 per banker includes two cocktail receptions, luncheon, banquet and coffee breaks. Spouses are encour aged to a tte n d and participate in the spouses program . Spouses reg istra tion fee of $25 includes all functions. R egistration a t the door will be $65 per banker and $30 per spouse. H o tel reservations are to be m ade di rectly w ith the hotel. The program schedule follows: P.M. 2:00 3:00 6:30 A.M. 8:00 9:00 P.M. 12:00 1:30 6:00 7:00 for “ hands on” dem onstrations a t three Apple II com puters which were operational w ith working sam ples of several software program s now being used in the p a n e lists’ banks. # The second workshop was a “ Com pliance Forum ” conducted by NBA General Counsel Bill B randt to review the various current changes effective from sta te and national le g isla tio n # and new regulatory changes. The th ird workshop, covering any topic of in terest to the participating bankers, was an Open Forum led by m em bers of the ag com m ittee. □ # 9:00 A.M. 10:30 P.M. 12:00 2:00 A djournm ent. Spouses - November 5 Eyew ear style show. # Jo in t luncheon w ith spouses. Tour of S tuhr M useum. □ A t a recent m eeting of the board # of directors of the N ebraska Inde pendent B ankers Association, new officers were elected for the upcom ing year. They are as follows: P r e s i d e n t —D e n n is B re w s te r, # B u tte S ta te Bank, B utte; 1st Vice P resident—E. Dean Kugler, SpringThursday, November 4 field S tate Bank, Springfield; 2nd Vice P resident—John M. Green, - 6:00, R egistration. - 5:00, N IB A directors m eet W auneta Falls Bank, W auneta; Sec- ® re ta ry —F. Phillips Giltner, F irst ing. N ational Bank, Omaha, and Trea - 8:30, Reception. surer—Thom as Grove, Packers N a Friday, November 5 tional Bank, Omaha. R egistration. Elected to the board of directors ® General sessions. to serve a three-year term were: District 1: Stephen A. Johnson, Jo in t luncheon w ith spouses. Johnson County Bank, Tecumseh, General sessions. NIBA ROUND-UP ... • Reception. (Turn to page 63, please) B anquet. N e b raska N ew s 57 WELCOMING bankers and spouses to the 22nd annual Correspondent Bank Conference hosted by First National Lincoln was Gary L. Bieck, vice president and manager of the correspondent bank division. RIGHT—Members of the Livestock, Grain and Feed Outlook panel were, from left: Dale C. Tinstman, co-chmn., Iowa Beef Processors, Dakota City; Carson Rogers, swine producer, Ord; Moderator Dr. Irvin T. # Omtvedt, chmn., dept, of animal sciences, U of N, Lincoln; Robert Cartmill, pres., Lincoln Grain, Inc., and Jack Maddux, rancher-livestock producer, Wauneta. A t F irst N ational Lincoln Conference 0 Say Bumper Crop to Boost Cattle Feeding By BEN H A LLER , JR . E ditor and Publisher ^ A N O T H E R su ccessfu l Correspondent B ank Conference (the 22nd one) was concluded last m onth when F irst N ational Lincoln presented an excellent a g panel, an ex® cellent buffet lunch a t the bank, then sa t back w ith 800 guests and w atched the U niversity of N ebraska Cornhuskers rom p p a st the Univer^ sity of Iowa Hawkeyes, 42-7. ^ M ore th an 800 bankers and spou ses registered for the annual con ference, which commenced Friday evening w ith a cocktail-buffet recep^ tion a t the H ilton Hotel. A fter an w early S atu rd ay breakfast, the Live stock, G rain and Feed Outlook panel was introduced by G ary L. Bieck, vice president and m anager of the ^ F irst N ational’s correpondent bank division. Panel m oderator again was Dr. Ir vin T. O m tvedt, chairm an, d ep art m ent of anim al sciences, U niversity 0 of Nebraska-Lincoln. P articipants were R obert Cartm ill, president, Lincoln Grain, Inc., Lincoln; Jack M addux, rancher-livestock produ cer, W auneta, and Dale C. Tinst£ man, co-chairman, Iowa Beef Proces sors, D akota City, all three repeat panelists, and new panelist Carson Rogers, swine producer from Ord. Some of their com m ents follow: UK Mr. M addux: C attle cycles show we peaked a t 132 million head in 1975, then dropped to 111 million head by 1979, the m ost dram atic li quidation ever. We began then the # expansion of 1980-81 and are up now to 116 million. B u t in 1979-’80 and r \ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fect on m arketing and demand, thus on producers. Our 116 million head appears to be a level figure, so I see a larger beef supply through 1983. The Ja n u ary 1 to ta l inventory will be im portant to watch. If slaughter is 35%, then we will be staying even; if it is more then we will be g ettin g liquid; if it is less, then we are g et tin g an increase in num bers. I have some current observations: 1. The big feed crop of 1982 brings ’81 we were hit w ith a triple wham my: 1. E xtrem e com petition from other m eat sources. 2. Skyrocketing costs, including a dram atic increase in in terest costs, as well as a change in governm ent policies and in an A d m inistration w aging the necessary fight on inflation which was needed, b u t h u rt us. 3. The more subtle change of a m aturing of dem and in B U M PER CROP ... the m eat industry. This has its ef (Turn to page 62, please) We have been providing banks with advice on tax-free investments for more than 40 years. We are specialists in tax exempt investments and we re proud of our reputation for service. Why not give us a chance to show what the Schweser team can do for you? Talk to the Professionals in tax-free investments. Investment Bankers • Underwriters In Nebraska call toll free (800) 642-8438 Member of the Securities Investor Protection Corporation Northwestern Banker, October, 1982 58 Mr. Yosten, 33, joined the T ru st Company in June, 1978, as a tru s t adm inistrator following two years in id Neely, president of the First N orth private practice as an attorney. In western T rust Company of Nebraska. October, 1978, he was elected tru s t Ronald G. Weber has been elected officer and in 1981 was nam ed se senior vice president and Harry P. cond vice president. Mr. Sieling, 43, came to the U.S. Yosten and Richard H. Sieling have been nam ed vice presidents. Thomas N ational B ank in 1976 as a tru s t ad C. Prohaska has been elected tru s t m inistrator and was elected assis officer, and nam ed internal control ta n t tru s t officer in 1977. In 1978 he officer was Edward J. Matukewicz. was prom oted to tru s t officer and was nam ed second vice president in M r. W e b e r, 1981. 37, joined U.S. Mr. Prohaska, 33, joined the N a tio n a l B ank T ru st Com pany in May, 1982, fol (an affiliate of lowing five years in private practice N orthw est Banas a p artn er w ith the law firm of corporation) in Reedy and Prohaska of Omaha. 1967 as a m an Mr. M atukewicz, 34, came to U.S. agem ent trainee N ational B ank in 1970 in the proof and was nam ed tra n sit area and worked in various m anager of the operations areas before joining the p ro o f tr a n s it T ru st Company in January, 1982, as d e p a rtm e n t in R G- WEBER 1970. In 1973 he was elected tru s t an internal control specialist. * * * officer and was nam ed vice presi dent of the T ru st Company in 1980. The executive com m ittee of the F irst N ational B ank of Om aha re cently announced the appointm ent of Thomas J. G aughen as tru s t m arketing officer. He will be active in m ar keting tru s t ser v ic e s fo r th e tru s t and e state H.P. YOSTEN R.H. SIELING division of the bank. Mr. Gaughen T.J. GAUGHEN received his law degree from Creighton U n iversity’s Law School and a m aster of ta x law degree from W ashington U niversity in St. Louis, Mo. Prior to joining the bank, he worked in the ta x d ep art m ent of A rth u r A ndersen and Com pany. T.C. PROHASKA E.J. MATUKEWICZ H E promotion of three officers and the election of two new offi T cers have been announced by H. Dav DigitizedNorthwestern for FRASER Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L. Dale Matthews, p a st chairm an £ of the board of N orth Side Bank, died A ugust 25 after m any years of illness. He sta rte d his banking career a t the Packers N ational B ank in 1 9 2 5 ,# working there until he attain ed the position of vice president. In 1946 he became associated w ith the firm of K irkpatrick P e ttis Company, deal ers in stocks and bonds. In Ja n u a ry 0 of 1948 he was elected vice president of N orth Side B ank and played a m a jor role in reorganizing the bank and its staff. He was also elected to the b a n k ’s board. In 1957 Mr. M a t-# thew s was elevated to the presiden cy of the bank and in December, 1967, he was elected chairm an, the position he held until his retirem ent. * * * ^ Chiles, Heider & Co., Inc., an Om aha-based securities firm, has announced the appointm ent of J o h n ^ H. Conley as director of research, a new ly c re a te d position. In m aking the a n n o u n c e m e n t, com pany presi d e n t C harles Heider said Mr. Conley, who holds the desig nation of charter fin a n c ia l a n a l J.H. CONLEY yst, will special ize in research on regional com panies for the firm ’s investor-cli-| ents. He will also serve as liaison w ith Chiles, H eider’s national re search services. Mr. Conley began his investm ent career w ith a Lincoln-based invest^ m ent firm. He holds a bachelor’s degree from N ebraska W esleyan U niversity in Lincoln, m ajoring in business adm inistration and eco nomics. He is im m ediate p a st chairH m an of the Investm ent E ducation Council of the U niversity of N ebras ka-Lincoln. Doniphan President Resigns* Steve Beachler, president of the B ank of Doniphan, resigned Sep tem ber 1 to become president of a new company, C entury M a n a g e # m ent Corporation, G rand Island. Prior to his office a t the bank of Doniphan, he served a G rand Island bank for 18 years in the m arketing, correspondent banking and in v e s t# m ent fields. Jim Flodine, Fred Kuehl, Don Ostrand, Ralph Peterson, Charles Leffler. Trust your correspondent banking to our efficiency experts. • • These superb professionals are dedicated to meeting all your m individual corres- ■ pondent needs. Call us for details on electronic data processing, • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■ ( I cash letter processing, overlines, fed fund transactions; or any ■ other correspondent M service. We’ll show you how friendly efficiency can be. first n a tio n a l b a n k of omaha In Nebraska call us toll free at 800-642-9907. Outside Nebraska call us toll free at 800-228-9533. Member FDIC. 60 J. PIERCE Jo Kinsey was prom oted to assis ta n t vice president and corporate banking officer. She joined the bank officers and the election of three new in 1976, also as a m anagem ent tra in officers. ee, and has served as a com puter ser Pam Hunzeker was prom oted to vices and personal banker officer. a ssista n t vice president and m ar Ms. Kinsey joined the commercial keting officer. She joined NBC in division in 1981 to be in charge of 1978 as a m anagem ent trainee, has business developm ent. held the position of credit supervisor Elected to officer sta tu s were in the bankcard departm ent and in Dennis Heckman, employe benefit December, 1980, assum ed responsi t r u s t ; Jon i bility for the m arketing departm ent. Pierce, tru s t in v e s tm e n t, a n d H E board of directors of N a tional B ank of Commerce recéntT ly announced the prom otion of two Paul P. HUNZECKER J. KINSEY Warfield, international banking. Mr. Heckm an joined the bank in 1 9 7 5 a n d served as a vault teller and a col lector in credit D- HECKMAN adjustm ent. He joined the employe Call Steve Sutton For Complete | Credit Insurance Service . . . Call Toll Free in Nebraska 800-742-7335 or call collect 402-475-4061 Steve W. Sutton Bank Programs for Vice President GroupHndividual Life*Accident & Sickness LINCOLN Where BENEFIT is more than a middle name Lincoln, Nebraska 68508 Banker, October, 1982 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LIFE P. WARFIELD • benefit departm ent in tru s t in 1981. Ms. Pierce, who joined the bank in 1980, has worked in loan analysis, m oving to tru s t investm ent in 1981.0 Mr. W arfield worked part-tim e in bankcard a t NBC while com pleting a BS degree a t the U niversity of Nebraska-Lincoln. He joined the in ter national departm ent in M arch, 1 9 8 1 0 * * * David Calhoun and Gary L. Petersen have been elected to t h e ^ board of directors of the N a tio n a l^ B ank of Com m erce, announced Thomas D. Potter, president and chief executive officer of NBC. Mr. Calhoun is president of J a c o b y N o rth P rin tin g Co., Inc. M r. Petersen is president of Petersen M anufacturing Co., Inc., of Dew itt. * * * William C. Smith, president of First National Lincoln, has announced the prom otion of four to officer sta tus: Mary Ann Czeschin, E D P audi- q ting; Jane McVay, purchasing; Shane Zikmund, installation, and Linda Zimmerman, pension/profit sharing supervisor. Mr. Sm ith, also president of F irs t0 N ational Lincoln Corp., p arent of F irst N ational B ank & T ru st Com pany of Lincoln, recently announced the corporation has purchased the 20-story F irst N ational B ank Build- 0 ing a t 13th and M S treets, Lincoln, from the M urdock Development Company for $8,750,000. The p u r chase price included the principal balance of the original m ortgage. 0 The building, of which approx im ately 67% of the space is occupied by F irst N ational B ank & T rust Company of Lincoln, has been the headquarters of the bank under a 0 long-term lease agreem ent since its completion 12 years ago. Mr. Sm ith sta te d it is the inten tion of the bank to m aintain its headquarters in the building f o r # m any years to come. 61 Specialists in fulfilling your every correspondent need... GARY L. BIECK STEVEN L. ANDERSON Vice President & Manager Correspondent Bank Division Vice President MARK HAHN KATHY M. VOTAW Correspondent Bank Officer Correspondent Bank Officer MARVIN HEFTI Correspondent Bank Officer IIIIIIHHillllll FIRST NATIONAL LINCOLN 13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501 Phone: (800) 742-7462 Member, f .d .i .c . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 62 N eb raska N ew s ENJOYING the pre-game party at First National offices were, from left: Bill Smith, pres., First Natl. Lincoln; Fred England, pres., Farmers & Merchants Bank, Axtell; Don Stull, chmn., Guardian State B&T, Alliance; Orrin Wilson, exec, v.p., and Bud Johnson, dir., both with First Natl. Lincoln. B U M PER CROP ... (Continued from page 57) pressure to buy cattle, and we ex pect a price increase on calves and yearlings through fall to utilize corn supplies. 2. The price increase of last spring was due to less hog com peti tion. I t will be next Septem ber or the fourth quarter 1983 before we see a su b stan tial increase in pork supplies; therefore, I am optim istic about beef prices through next year. Mr. Rogers: In the near-term view / of 100 to 120 days, w ith cheap corn prices I fear we will see w eight in creases on hogs, and th is increase in tonnage will p u t pressure on prices. W ith in terest rate s as they are, I don’t see any expansion. If produ cers will sta y w ith the same num bers they now have, they will con tinue to get good prices. B ut rig h t now I see heavier hogs and a declin ing price for th is fall. Mr. T instm an: We see a steady m eat supply w ith some slight in crease in slaughter num bers and \ FIRST MID AMERICA INC. First in Service to the Midwest. . • • • • M unicipal Bonds Corporate Bonds Government Agency Bonds Listed and Unlisted Securities Fiscal Agents For complete investment service you can rely on... The Midwest’s Investment Professionals FIRST M ID AM ERICA INC. 3fPC Member New York Stock Exchange, Chicago Mercantile Exchange and other Principal Stock and Commodity Exchanges. Municipal Bond Department, 100 Continental Building Omaha, Nebraska 68102 / (402) 444-1900 STOCKS, CORPORATE, MUNICIPAL AND GOVERNMENT BONDS, OPTIONS, TAX SHELTERS AND COMMODITIES. Lincoln, Omaha, Grand Island, Hastings, Columbus, Shelby, Plainview, Nebraska. Des Moines, Atlantic, Cedar Rapids, Fort Dodge, Marshalltown, Iowa. Kansas City, Missouri • Wichita, Kansas • Chicago, Illinois • Houston, Texas. Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tonnage. Beef prices during the next two weeks will dictate w hat h a p p e n s^ in the future. If we slaughter the c at tle we s h o u l d slaughter, then prices should firm and be in the low to mid-60s for several m onths. We are current on cattle slaughter now a n d ^ we need to sta y current. Mr. Cartm ill: The Corn Balance Tables (distributed to all regis trants) for the p a st decade show a to tal supply for 1971 of 6,313 m il-^ lion bushels, m ade up of 667 million carry-in stocks on October 1 and 5,646 million bushels of new pro duction. Those figures in 1981 were 9,235 million bushels total, w ith ^ 1,034 million bushels of carry-in stock and 8,201 million bushels of production. T hat has increased in 1982 to 10,400 million bushels total; 2,085 million bushels carry-in, a n d ^ 8,315 million bushels of production. F u rth er figures in the tables show th a t in 1971 a to ta l of 1,994 million bushels of corn were counted under governm ent isolation program s in # 1981—462 million net under loan, 1,264 million bushels in reserve and 268 million bushels in CCC. T hat to ta l has swelled to 2,932 million bushels in 1982, w ith 200 net u n d e r# loan, 2,464 in reserve and 268 CCC. A gainst the Septem ber 30 carry-out of 2,871 million bushels this year, this would leave a negative 61 mil lion bushels—the first negative f ig # ure from 1971 forward. On Ja n u ary 4, 1980, President C arter imposed the grain embargo. If you were to take 500 million bu shels out of the 1979-’80-’81 c a r r y # over and add to exports, you would have a dram atically different pic ture. An interesting question and an swer period betw een panelists a n d # guest bankers followed. Panelists N e b raska N ew s agreed generally th a t the change in economy brought about by Presi dent R eagan’s policies is painful, b u t needed to whip inflation and it “ will shake out inefficiencies.’’ W hen the panel concluded, the bankers adjourned to the F irst N a tional Lincoln building for a social hour on the 9th floor and a buffet luncheon served on the 8th floor, af ter which all the faithful adjourned to the nearby M emorial Stadium gam e the Iowa Haw keyes w ant to forget. □ • Kearney Campus ATM Opened F irs t N ational B ank and T ru st Co. of Kearney has announced the opening of a bank-in-the box ter^ m inal located on the Kearney S tate College cam pus in the stu d en t un ion. This is in addition to six other locations already in Kearney. # Joins Harrison Bank M ax H asselbring has joined the Sioux N ational Bank, H arrison, as a junior loan officer. He m ost recently was w ith B ankers Life Insurance • Co. of Des Moines, Iowa. Promoted in Osceola The F irs t N ational B ank of ^ Osceola has announced the prom o tion of Royce Schaeffer to vice presi dent and J a n e t N eujahr to cashier. Ms. N eujahr takes the place of Sue Greenwood, who recently re^ signed. NIB A ROUND-UP ... (Continued from page 56) ® and F rank L. Bruning, B runing S ta te Bank. District 2: F. Phillips Giltner, F irst N ational Bank, Omaha, and R obert C. Fricke, Farm ers & Mer® chants N ational Bank, Ashland. District 3: H.L. “ B u d ’’ G erhart, Jr., F irst N ational Bank, Newman Grove, and Don G. Johnson, Far^ m ers N ational Bank, Pilger. ^ District 4: Louis G. Titus, F irst N ational Bank, Holdrege, and A r th u r Fritson, S ta te B ank of H il dreth. ^ District 5: L. Clark Caley, B ank of Clarks, Clarks, and T.L. Arm bruster, N ebraska S tate Bank, Broken Bow. District 6: W illiam S. Olson, £ N ebraska S ta te Bank, Oshkosh, and L arry L. Callen, F irst N ational Bank, Ogallala. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 63 Now, First National Bank has a new source of funds available for cattle and grain loans. FIRST AGCORP. agricultural credit corporation that is a wholly owned, non-banking sub sidiary of First M idwest Bancorp., Inc. First Agcorp is another of the many correspondent services available through the First National Bank of St. Joseph. Just call John Kam , i S e S 8 " W here your su c c e ss is a trad ition . First National Bank St. Joseph, Missouri 64502 Call: (816) 279-2721 A ffiliate of First Midwest Bancorp., Inc. Member F.D.I.C. Northwestern Banker, October, 1982 64 Faster availab ility c a n improve your profit picture. Item availability can have a come the opportunity to handle signiiicant impact on your bot all of your EDP and cash letter activities. tom line. So, it's important to choose a correspondent bank For complete information on with state-of-the-art d a ta proc Bankers Trust EDP services, call our Correspondent Banking De essing services. partment, 800-362-1688 (toll-free That's why so m any Iowa bankers rely on Bankers Trust for from anywhere in Iowa). fast, efficient d ata processing. We have the resources — both technology and people — to provide rapid availability of funds and data. We would wel Bankers St Come Crow W ith us Des M oin es, Io w a 50304 M em ber: FDIC/ F ed eral Reserve System Iow a’s la rg e st lo cally ow ned, In d ep e n d en t b a n k Use our toll-free WATS line: 800-362-1688 Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis term on the ABA Council, succeed ing Richard W. Buxton, president, Peoples Trust & Savings Bank, Indianola. Iowa’s other ABA Council member, Leslie H. Olson, president, Toy National Bank, Sioux City, will serve during the next year as ABA vice president for Iowa. OFFICERS of the Iowa Bankers Association for 1982-83 are, from left: Immed. Past Pres.—Tom Dunlap, chmn. & pres., South Story B&T, Slater; Pres.—L.C. “ Bud” Pike, pres., Farmers Savings, Grundy Center; Pres.-Elect—Al Maser, pres., First Natl, in Le Mars, and WExec. V.P.—Neil Milner, Des Moines. Not present for picture was Treasurer Russell W. WSpearman, pres., Citizens Savings, Sac City, serving a second year in that post. Bud Pike Assumes IBA Presidency By BEN HALLER, JR. Editor and Publisher STEVE BURCH Associate Publisher BECKY McBURNEY Associate Editor ^ I NCRE ASED foreign sales and more w I disciplined domestic crop produc tion are needed to achieve a muchneeded turnaround in the nation’s agricultural economy, according to ^several speakers who addressed the 96th annual convention of the Iowa Bankers Association in Des Moines last month. Nearly 3,000 persons were registered during the three ^ d a y s of convention activities. Installed as new president was L.C. “Bud” Pike, president of the Farmers Savings Bank in Grundy Center. He succeds Tom C. Dunlap, chairman and president of South Story Bank & Trust, Slater, who continues on the IBA board of direc tors as immediate past president. Named president-elect was Al Maser, president and chairman of First National Bank in Le Mars, who is scheduled to become presi dent during the 1983 convention, which will be held September 18-20, 1983, at the Marriott in downtown Des Moines, site of the past two con ventions. Russell W. Spearman, president of Citizens Savings Bank, Sac City, continues as treasurer for his second year. Neil Milner, executive vice president, heads the professional IBA staff at Des Moines headquar ters. Mr. Dunlap, at a Sunday after noon meeting of Iowa members of the ABA, was elected to a two-year Russian Offical Speaks The opening of the general session was given a solid send-off with a ma jor address by Russia’s top agricul tural official. Dr. Victor Lishchenko, food and agricultural services, The Institute of USA/Canada of the Academy of Sciences, USSR, was in troduced by John Chrystal, presi dent, Iowa Savings Bank, Coon Rapids, who has been a guest of Dr. Lishchenko for about 10 visits to Russia to give counsel to Dr. Lish chenko’s department on ways to im prove that nation’s ag production. Dr. Lishchenko proved first of all to be a very personable individual, who speaks excellent English, and spoke of ag problems and opportun ities in his country very much like the subject is faced in this country. He was forthright about their pro duction problems and limitations, especially available, tillable acreage and the weather, and addressed the need to rely on outside purchases to augment home production. Dr. Lishchenko said Russia has approximately 230 million hectares of arable land (about 500 million acres) and “it requires a lot of money and materials to make our agricul ture work” because only 10 % of the land gets at least 25" of rain or more. “This leads to a lot of irriga tion,” he said, and requires 27 mil lion people to be involved directly in agriculture. These are distributed among collective and state farms, 47 in all. Pictured backstage before a general session were Lew Jenkins, pres, of ABA and vice chmn., Manufacturers Hanover Trust, New York; W Neil Milner, IBA exec, v.p.; Capt. Gerald Coffee of U.S. Navy, Honolulu, and Wes Etirecke, IBA staff v.p. RIGHT—Capt. Coffee also was greeted by these four IBA staff members, from left: Linda McMillen, Sharyn Glass; Sherri Parke and Barb Lowe. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 66 Io w a N ew s LEFT—J°hn Chrystal, pres., Iowa Savings, Coon Rapids, with his guest, Dr. Victor Lishchenko, head of all agriculture in the USSR, w h ^ was the convention leadoff speaker, and Dean Hicks, chmn. of IBA ag division and exec, v.p., Community Natl. Knoxville RIGHT—Dave Oman, aide to Gov. Ray, and Randy Steig, IBA exec. dir. He outlined the production per hectare by various crops. The bot tom line of the crop production bal ance sheet is that Russia can pro duce a great share of its nation’s needs, but also must continue to purchase grains from other nations. He did not refer to this nation’s grain embargo of two years ago, but expressed pleasure that the one-year extension of purchase agreement had been approved. By reference to the other nations where Russia is successfully buying grains, it was interpreted by some that he was hoping with these remarks, and those of other Russian officials, to drive down the price of American grain by perhaps 2 0 per bushel before Russia finally has to make the purchases it needs so badly this year. One reason Russia prefers to buy from the United States, he empha sized, is that our grain, especially corn, is much higher in protein than Russian grain or that of any other nation; therefore, far more valuable and efficient in feeding. Dr. Lishchenko specifically men tioned the need for sunflower meal and protein due to a two-year in festation of that nation’s limited sunflower crop. Other Farm Speakers Dean McKee, director of market economics at Deere & Co., Moline, 111., also emphasized the importance of expanding foreign ag sales. He views rapid growth in export mar kets as a major force in an ag re covery. “There’s a more interna tional perspective to the whole ag scene as it affects the ag dollar,” Mr. McKee stated. With an assortment of figures by years, he showed the dramatic rise in farm exports in the past decade—wheat 133%, corn 316% and soybeans 110%. He said the strengthened dollar adversely affected the export scene, and that the United States reputation as a supplier has been damaged because others now view our agriculture as a political weapon. Russia’s only fore ign exchange is gold and oil. With lowered prices in the past two years on these commodities, that nation is wary. Frank Naylor, USD A Under Sec retary, offered no specific plan to im prove agriculture. He reviewed again the problems faced by Presi dent Reagan when he entered office, and stated that bankers should meet the needs of ag borrowers and® should get the economy turned around by contacting their legis lators. Alan R. Tubbs, president, F irst^ Central Bank, DeWitt, gave an ex cellent talk concerning his role as part of an ad hoc advisory commit tee to Agriculture Secretary John Block. His incisive remarks will b e^ presented in the next issue more ful ly as a principal feature. Iowa Governor Robert D. Ray, in vited to address the convention for the last time as Governor, since he ^ will not stand for reelection this fall W after 14 years in that office, also spoke up for increased ag exports. He related that on a recent trip to Japan, he spoke directly to the point £ of increasing Iowa meat exports to that nation and pointed out to Jap anese officials that their ability to push their car sales in this nation should be reciprocated by our ability 9 to promote meat sales in Japan above the limited exports now allowed. Other Speakers ABA President Lew Jenkins, vice # Iowa Gov. Robert D. Ray was honored by the IBA for his 14 years of service as Governor. Holding the beautiful, handcrafted stained g la ss0 art work that depicts the Great Seal of the State of Iowa are IBA Exec. V.P. Neil Milner and IBA Pres. Tom Dunlap. RIGHT—Greeting guests at Bankers Trust of Des Moines reception were Jean and Herman Kilpper, pres.; John Ruan, chmn. and Ben Eilders, v.p. Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Io w a N e w s 67 At Omaha Natl, luncheon, from left: John Woods, chmn. & c.e.o., and John Martin, v.p , of host bank; Paul Dunlap, pres., Hawkeye Bancorporation, Des Moines; Del Olson, v.p., Omaha Natl.; Dr. Paul Nadler, convention speaker; Dan Boehle and Larry Carlson, v.p.s of Omaha Natl., and Gary Woods, pres., Manilla State, and Jana. Pictured at Northern Trust of Chicago reception were, from left: Sally and Curtis E. Skinner, sr. v.p. of host bank; Terri and Gordon Mennen, ores., Le Mars Savings; Ernest P. Waud, III (standing in back), v.p., Northern Trust; Bob Grant, corr. bk. repr., Northern Trust; Jo and Larry McGrath, sr. v.p. & cash., Peoples B&T, Cedar Rapids, and Jeff Early, corr. bk. off, and John Drawer, bond inv. off., both with the host bank. #LEFT—At U.S. Natl, of Omaha dinner, Don Murphy (center), chmn., and his wife Agnes were accorded special recognition at their last of ficial appearance at the bank’s Iowa convention dinner, since Mr. Murphy plans to retire next March. At left are Judy and Lee Bachand, v.p., and at right are Carmen and Jim Campbell, pres, of the bank. RIGHT—Sam O'Keefe, exec, v.p., U.S. Natl., and Marge; John Liljedahl, pres., 1st Natl., Essex, and La Vone; Don Hart, v.p., Security T&S, Shenandoah, and Shirley, and Howard Nielsen, v.p., U.S. Natl., and Rita. ^Greeting guests at United Central Bank of Des Moines breakfast were Bob Millen, pres., Bill Greaves, v.p., and Ken Myers, chmn., in line ^fa cin g camera. RIGHT—Eddie Wolf, v.p., United Central of Des Moines; Tom Hay. pres., Security State, Casey; Dan Doyle, pres., Wellman Savings, and Cy Kirk, v.p., United Central. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 69 Know your customers. Or else. Look around. Banking has become one of today’s most competitive businesses. Your customers are being wooed by every ^financial institution in your market area. The trick to keeping your customers loyal, and to increasing your profits, is knowing as much about them as possible and keeping that information updated daily. ) Unfortunately, complete up-to-the-minute customer profiles are rare. Background in formation is often gathered randomly and stored in many different places, making it difficult to obtain for useful purposes. Until now. Until Banks of Iowa Computer ^Services Central Information File (CIF). With Banks of Iowa Computer Services’ CIF, complete information on your custom ers can be obtained in moments, either on a display terminal or as hard copy. The operative word is exhaustive. Since every possible piece of information gathered is centrally stored, you have immediate access to such things as the status and history of a given customer’s account and his account relationships. The businesses he’s in and how they’re doing. And any pertinent family information. This information is critical in making quick, knowledgeable, profitable decisions. CIF is the most economical, efficient and sensible way to gather an this information and to use it for increased profits. D o n ’t kid y o u rself. There aren’t many new customers around. What you need to do is expand the ways your existing cus tomers use your bank. Because a lot of other financial institutions would like them as customers. And are trying to get them. Can you trust your customers? Yes — if you can trust your information retrieval system. And that means CIE Contact us today for an appointment. We’ll be glad to explain our system at your convenience. For more information call BICS marketing at (319) 395-6600. BICS Banks of Iowa Computer Services. A “ BANKS OF IOWA” SUBSIDIARY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 70 Iow a N e w s At 1st Natl, of Omaha dinner were, from left: Don Ostrand, v.p., and Ginny, of host bank; Joan and Clark Houghton, pres., 1st Natl., Iowa Ci ty; Bob Miller, pres., Polk City Savings, and Mary; Fred Kuehl, oper. off., 1st Natl, of Omaha, and Janet, and Jim Flodine, 2nd v.p. 1st of. Omaha, and Mary. 0 chairman of Manufacturers Han over Trust Co., New York, also ad dressed the Monday morning ses sion, instead of as scheduled, be cause he had to fly to Washington, D.C., to testify before the House banking committee Tuesday morn ing. Mr. Jenkins stressed again the need for personal involvement by every banker in continuing contact with home state legislators in order to make sure banks and their customers get a fair shake in the constant parade of legislation that affects them. A distinct highlight of the entire convention was the simple, but forceful expression of faith present ed by Capt. Gerald Coffee, U.S.N., fleet air operations officer, Hon olulu, who was a North Korean pris oner of war for seven years and was one of those returned on the historic day in 1973 when the first POWs stepped off a plane in view of the en tire nation via television. Through his expanded remarks on four basic points: 1. Faith in one’s self, 2. Faith in family and friends, 3. Faith in country, 4. Faith in God, Capt. Cof fee developed an exciting, emotional re-creation of the development of his ability to survive through faith. His triumph, he said, came not entirely when he was able to walk away from his prison cell of seven years, but mainly on the day when he looked at his captors after years of torture and knew that someday he would be home in a free country, but they would still have to live in those con ditions they created. A contrast in styles came when Watergate figure G. Gordon Liddy, former staff assistant to President Nixon, gave his talk on “Govern m ent: Public P e rc e p tio n vs. Reality.’’ A forceful speaker, he delved into the intrigue of CIA and other branches of all governments internationally. Glen Lemon, president of First Bank & Trust Co. of Booker, Tex., gave his interesting slide film pre sentation on “Marketing for Com munity Banks.’’ His principal goals of service and image were given credibility by the fact that his ap proach has built First Bank from a few million in deposits to a bank of $95 million assets in a town of 1,300 people. Dr. Paul Nadler, professor of fi nance at Rutgers University, and an old favorite speaker on the economy among Iowa bankers, didn’t disap point his audience. His rapid-fire delivery of facts and humor sand wiched the idea that despite all the shortcomings of the current econ# omy and the politicians who try to orchestrate “ the soap in the bathtub,” this nation will survive because it’s a far better way for peo ple to live than any other method^ yet found. Frank Warner Scholarship IBA Executive Vice President Neil Milner paid special tribute tqp the late Frank Warner, who died this past summer at the age of 94. Mr. Warner had served the Iowa Bankers Association as its exec utive officer for 50 years before hif0 retirement in 1966. His widow, Dora Warner, and members of the IBA have established a Frank Warner Scholarship Fund. Mr. Milner an nounced at the convention that the# new fund had already reached the $5,000 mark and full announcement of it really had not been made until his appeal that day to Iowa bankers to support the fund. # Entertainment functions again IOWA CONVENTION ... (Turn to page 84, please) PICTURED at lowa-Des Moines Natl, reception in bank lobby were, from left: Bernie Kersey, v.p., and Mary, of host bank; Bill Bernau, p re s ^ Peoples Savings, Crawfordsville, and Kay; Eugene G. “ Bud” Precht, chmn. & c.e.o. of lowa-Des Moines, and Arlys; George Milligan, pres, of host bank, and Judy, and Aloha and Tom Dunlap, pres., South Story B&T, Slater. DigitizedNorthwestern for FRASERBanker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Io w a N e w s 71 At Harris Bank of Chicago reception were Mary and Jim Hill, v.p. of host bank; Betty and Bill Buxton, chmn., Peoples T&S, Indianola, and • Lois and Dave Cox, v.p.-mgr. fin. isnt. at Harris. RIGHT—Seated: Charles E. Walsh, v.p., Farmers & Merchants B&T, Burlington, and Linda; Steve Jacobson, exec, v.p., Iowa State, Morning Sun, and Karen. Standing: Ken Dykema, v.p., Valley Natl., Des Moines, and hosts Mike Mishou, Clayt Johnson and Bob Peroutka, a.v.p.s with 1st Natl., St. Paul. Hosts at Drovers Bank of Chicago reception were Frank E. Bauder, chmn., and Vicki, with Ruth and Jim Carmody, pres., who welcomed • Carol and Larry Arendt, pres., Gibson Savings, and Mary Ann and Doug Grinde, pres., Hawkeye B&T, Burlington, along with Max Roy, v.p., Drovers Bank, and Lillian. LEFT—At LaSalle Natl, of Chicago luncheon are Ed Grant, chmn. of host bank; Ed Tubbs, chmn., Maquoketa State; Dick Flesvig, a.v.p., LaSalle Natl., and Doug Grinde, pres., Hawkeye B&T, Burlington. RIGHT—Darlene and George Taylor, pres., Commercial State, Mar shalltown; Scott Faris, corr. bkg. rep. and Ken Vegors, a.v.p., Northwestern Natl., Minneapolis, and Bill Kabourek, pres., State B&T, Coun cil Bluffs, and Jan. LEFT—Bill Ronan, pres., Decorah State; Bud Cross, a.v.p., and Nevin Bowser, v.p., both with 1st Natl., Chicago, and Gordon Mennen, pres., w Le Mars Savings. RIGHT—Seated: Carolyn Fox; Kathy and Tom Whitson, pres., Council Bluffs Savings, and Don Fox, v.p., Council Bluffs Savings. Standing: 1st Natl, of Chicago dinner hosts Dave Varnerin, comm. bkg. off.; John M. Clark, v.p., and Paul Gargula, corr. bkg. off. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 72 Io wa N e w s LEFT—Leroy Hughes, v.p., Columbus Junction State, visits with Chuck Kraut and Robert Okerstrom, both with Life Investors, Cedar Rapids. RIGHT—Jim Sheedy, lease mktg. off., Lease Northwest, Des Moines, Scott Ulbirich, corr. bkg. off., Northwestern Natl., Mpls., and Rita Chamblin, financial ser. off., Lease Northwest, Mpls. At Davenport Bank & Trust Co. reception were: LEFT—Bob Hartman, comp. serv. off., Davenport B&T, and Margaret; Bill Logan, pres., State Central Savings, Keokuk, and his wife, Joan, and Jim Figge, exec, v.p., Davenport B&T. RIGHT—Dick Buenneke, pres., Citizens® State, Belle Plaine, and his wife, Marty, with Judy and Mike Bauer, sr. corr. bkg. off., Davenport B&T. Dick Holmes, a.v.p. and Bill Addington, v.p., both with F & M Marquette, Mpls., visit with Bill Ronan, pres & chmn., Decorah State, and Bob Brenton, pres., Brenton Banks, D.M. RIGHT—Steve Jacobson, exec, v.p., la. State, Morning Sun and wife Karen, with Jodi and Allen Luett® pres., Miles Savings. ^ Visiting during the United Missouri Bank of Kansas City dinner were: LEFT—Phil Giltner, pres., 1st Natl., Omaha; E.L. Buirclh, exec, v .p .^ United Missouri, and Dick Goos, pres., Citizens State, Oakland. RIGHT—Al Wissink, pres. & chmn., 1st State, Diagonal; Phil Straight, v.p., and Dick Muir, v.p., United Missouri; Carol and Don Kelley, pres., Early Savings, and Joyce Chaney, inv. off., United Mo. Banker, October, 1982 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Io wa N ew s 73 More Pictures from the Iowa Bankers Convention LEFT—Jerry Gross, pres., Kirk Gross Co., Waterloo; Sue and Sparky Duroe, pres., Farmers State, Jesup, and Bob Buckley, sales rep., Kirk • Gross. RIGHT—Harold Evans, dir., Citizens State, Corydon, reviews past projects with George Gerza and Martin Goldberg, acct. execs, with HBE Bk. Facilities, St. Louis. .LEFT—The Data Business Equipment, Inc. booth was well manned by Jim Kelley, Lynn Groen and Art Joura, pres. RIGHT—Robert Donhowe, chmn., Norwalk-Cumming State, and wife, Pat, watch equipment demonstration by Ed Herman, pres., Electronic Office System, D.M. ^ L E F T —Bill Behrens, sales rep., Electra Sign Co., Cedar Rapids; Jim Thomas, dist. sales mgr., Daktronics, Brookings, S.D., and Carl Dencklau, exec, v.p., Alden State. RIGHT—Marc Emerson, Stenson, Warm, Grimes & Port Arch., Waterloo; Robert Jordon, sales rep Office Con cepts, Waterloo and Geof Grimes, pres., Stenson, Warm, Grimes & Port Arch., Waterloo. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 74 Iowa N ew s Pictured at the Hawkeye Bancorp, reception held at the D.M. Botanical Center included: Steve Jones, v.p., and his wife Linda; Paul Dunlap, pres.; IBA Pres. Bud Pike, pres., Farmers Savings, Grundy Center, and his wife Evelyn; Paul’s wife Jackaline, and Tom Miller, Iowa Attorney General. RIGHT—Wayne Johnson, pres., Everly State; Ken Roeder, corr. bkg. off., Security Natl., Sioux City; Roger Platz, rep , Deloitte, Haskins & Sells, D.M., and Steve Hatz, v.p., Security Natl., Sioux City. LEFT—Bob Vasko, v.p., Continental, Chicago; Dean Duben, pres., Brenton 1st Natl., Davenport; John Koppes, loan off. and Jack Roach, pres., Key City B&T, Dubuque; Pam Windham, bkg. assoc., Continental, Chicago, and Bill Beatty, pres., Atlantic State. RIGHT—Mary Nihlean, comm, lending Continental, Chicago; Bob Donhowe, Norwaik-Cumming State; Jim Fletcher, v.p., West Bank, Des Moines; T o i^ Hunt, dir., Secur ty Savings, Scranton, and Jim McClamroch, v.p., Continental, Chicago. LEFT—Harold Fawcett, pres., State B&T, Nevada; Peter Hegel, bond off., Continental, Chicago; Cort Peterson, v.p., Independent Financial Corp., Mason City, and wife, Velva, and Herb Jacobson, dir., Brenton B&T, Adel. RIGHT—Don Janssen, br. mgr. and Joe Graziano, accjj, rep., with Burroughs Corp. in D.M. LEFT—Millie Uding (center) v.p., IBIS with Bill Weis, sr. v.p. and Dennis Dougherty, reg. v.p., both with Centerre Bank, Kansas City. RIGHT— Jack Hawkes, v.p., The Credit Life Ins. Co., Springfield, Oh., visits with Gary Livesay, v.p., and Merrit Krause, v.p., both with IBIS, Des Moines. Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 75 DO HIGHINTERESTRATES HAVEYOURCUSTOMERSDOWN? • • • ^ _ If the answer is yes, then NOW’S THE TIME to look at the competitive advantage for your bank...your own leasing company, which can offer your customers a low cost alternative for financing the equipment they need but have delayed purchasing. Today’s high interest rate environment has put a real strain on your customer’s cash flow, and has probably reduced their ability to qualify for loans. By offering your customers the ability to lease, they will improve their cash position and will be able to increase their borrowings from your bank. By operating your own leasing com pany, you will enhance your relationship with your customer and broaden the range of services you offer. UCB Leasing Corporation is familiar with and experienced in meeting the needs of banks and their customers. We have the expertise to assure that your venture into leasing gets started right. And, we will direct your full documentation in the critical areas of accounting, marketing and tax sheltering. If you are concerned about your cus tomers, your bank’s shrinking loan portfolio and loss of market share, you need to investigate the leasing alternatives. NOW’S THE TIME to call (without obligation) Bill Ranes or Tim Mercer at (515) 245-7222 to find out how UCB Leasing can help you and your customers. Bill Ranes Tim Mercer UCBLEASINGCORPORATION AFFILIATED WITH UNITED CENTRAL BANCSHARES, INC. LOCUST AT SIXTH, DES MOINES, IOWA 50309 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 76 Io wa N ew s Attending the First Bank Minneapolis luncheon were: (left)—AI Highum, a .v .p h o s t bank; Herman Oelkers, 1st State, Thornton; Tom Siskow, pres., UCB of Sigourney; Gary Younge, exec, v.p., 1st State, Thornton, and Bill Hamilton, a.v.p., 1st Bank, Mpls. RIGHT—Charliap Rooney, inv. off., 1st Bank, Mpls.; Reid Giese, consultant, 1st Natl., Sumner; Dave Williams, a.v.p., internatl. bk. off., 1st Bank, Mpls., ana Bill Rickert, sr. v.p., Natl. Bank of Waterloo. Attending the American National Bank of Chicago’s breakfast were: (left) Don Benson, v.p., host bank; Lucille Johnson, a.v.p., and Marc Johnson (not related), both of Brenton B&T, Urbandale, and Ed Jacobs, inv. rep., American Natl. RIGHT—Dennis Reher, 2nd v.p., American Natl.; Bob Farrar, Hawkeye Bancorp, with his father, Frank Farrar, Union Story T&S, Ames, and Guy Rich, corr. bkg. off, American Natl^ LEFT —Paul Gahan, pres., Farmers Savings, Danbury; Mary Nihlean, Continental Bank, Chicago; Mary and John Mangold, sr. v.p., Mer# chants Natl., Cedar Rapids and Brian Phillips, pres., BICS, Cedar Rapids. RIGHT—(Back Row) Allan Eich, v.p., 1st Natl., Woodbine; Terry Martin, v.p., Merchants Natl., Cedar Rapids, and Don Arendt, pres., Citizens Savings, Gilman; (Front Row)—Terry Collins, exec, v.p., Citizens Savings, Gilman; Stan Farmer, v.p., Merchants Natl., Cedar Rapids, and Rich McCoy, br. mgr., Cummins-Allison Corp., Des Moines. LEFT—Ken Waltman, pres., Avoca State; Doug Keiper, a.v.p., Merchants Natl., Cedar Rapids and wife Bonnie with Agnes and H e # Tangeman, chmn., Security State, Guttenberg. RIGHT—Joe Broders, corr. bkg. off., 1st Natl., Sioux City; Bernice and Tom Steele, pres., Steele State, Cherokee; Gary Stevenson, v.p., 1st Natl., Sioux City, and Dale Den Herder, pres., American State, Sioux Center. Northwestern Banker, October, t982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iowa N ew s 77 More Pictures from the Iowa Bankers Convention |LEFT— Brian Scott, v.p. and Terri Kettering, mgmt. train., BICS, demonstrate system to Jack Rigler (center) pres., Central State, Muscatine. RIGHT—Bill Dodgen (center) v.p., Hawkeye B&T, Des Moines visits with Denny Sullivan, acct. mgr. and Steve Boes, terr. mgr., both with BICS, Cedar Rapids. cä<crm vefitíi ©LEFT—Karma Cahill, pres., Karma Cahill Fine Art & Framing, Cedar Falls Kristy Ballard, Farmers Savings, Mitchellville; Marlys Wubbena, Osceola State B&T, and Dorothy Gulling, Farmers Savings, Mitchellville. RIGHT—Mike Keim, pres., Thurman State; Dave Stochl, sales rep., Financial Sys., Inc., la. City; Dan Gold, a.v.p., Thurman State, and Dave Waldron, Financial Sys., Inc., Kearney, NE. ISÄK*!«.«wwri ® l e f t —Jerry Caligiuri, IAC Group, Des Moines; Jim Johnson, pres., Security State, Sutherland, and his wife, Colleen, and Craig Ross, also with IAC Group. RIGHT—Randy King, v.p., Farmer Savings, Stratford, meets with U.C.B. Systems representatives Dave Akehurst, Margaret Noblin and Waltor Astor. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 78 Io wa N ew s 3»3¡f2: First National, Oelwein, Breaks Ground for New Building ARRY Young, chairman of the H board of The First National Bank of Oelwein announced recently that the K irk Gross Company of W aterloo has started construction of the bank’s new 22,742 square foot building. Located on the old Ward’s site, di rectly north of the existing bank building, the new facility will create a drastic change on the corner of Frederick and Charles Streets. Stra tegically situated on a diagonal so that the unusual entrance faces southeast, the building will be acces sible from three directions. Upon completion of the new building, the old structure will be demolished. Constructed of the identical brick used on the bank’s drive-up across the street, the building will be ap proximately 18' high on the south west side, with a 27' high glass, ar ched skylight in the center, and 14' high on the northeast side. The glass, arched skylight will run the entire length of the building and will dramatize the front entrance as well as the rear entrance immediately across the alley from the municipal parking lot. A large, open area with a fourlevel recirculating waterfall and pool will expose the lower level. Custom ers can cross part of it on a sus pended walkway to enter the front doors. The remaining site will be at tractively landscaped and parking for approximately eight cars will be on site. A well lighted bag and envelope night deposit system will be at the front entrance for customer conve nience. Upon entering the building, the 72' long glass, arched skylight will provide a dramatic effect and will serve as a visual separation of the six-station teller line on one side and the officers’ complex on the other side. The officers’ complex will have four private offices and conference rooms and a large open officers’ plat Art is an Asset for You! Corporate Art Contracting for Financial Institutions Complete fine art design services with custom framing for your financial institution. We can meet all your fine art needs for new facilities, remodeling or refurbishing. Helping Financial Institutions Make Art an Asset c Karma Gafiill FI NE A R T and F R A M I N G 1304 West 1st Street Cedar Falls, Iowa 50613 319-266-0201 Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis form. A centralized reception s ta ^ tion, stenographer pool area and nu merous waiting areas will be incor porated on one side of the skylight. The other side will have the teller line, complete with sit-down statior^ for the elderly, a large new accounts and customer service area, a board room and an additional private of fice. Storage, expansion space and a large cash vault are also included. Aq public elevator is located adj acent to the teller line to provide access to the lower level. Wide stairways pro vide additional access between levels. a The lowel level will have a trust department area consisting of two large offices, a large conference room, and steno and security file storage. A large safety deposit vault# with three private coupon booths, the large bookkeeping department, employee lounge, utility areas and a large storage area also are included on this level. The public coffee and# snack bar, a long-time tradition with the bank, will be adjacent to a wait ing and lounge area and will face a glass wall looking out to the area way and the four-level waterfall and# pool. The overall interior color scheme of medium oak finishes, brick, bur gundy and gray colors, combined with a horizontal oak band the same® height as the exterior band, will create a tasteful and pleasant at mosphere for customers and employ ees alike. The project is anticipated to tak ® 12 months to complete barring un usual delays. The K irk Gross Com pany of W aterloo, Iowa’s leading designers and builders of financial facilities, will utilize local subcon-® tractors wherever possible. Archi tectural work was provided by Smiley, Glotter & Assoc, of Mir neapolis, with Kirk Gross Compar also serving as consultants and ® terior designers. 79 Tb correspondent banking services at American Tinst and Savings American Ttust and Savings Bank has the ingredients to make your bank more successful. In today’s economy your customers are looking beyond passbook accounts — beyond CDs — to find better inflation-fighting programs and money-saving plans. Individuals and businessmen alike are looking more and more to their bankers for a variety of sophisticated banking services. If you feel unable to serve some of those special requests, help yourself by calling American Trust and Savings. Our Correspondent Banking Team and Trust Department makes growth and service easy as pie. And Bemie Miller has the recipe for success. Call 319/582-1841. Services: Over-line loan participation Depository for excess funds Bond investment counseling (portfolios) Collections Domestic and foreign wire transfer of funds Currency and silver procurement ACH (Automatic Clearing House Services) Cash letters Custom HR-10s Keogh prototypes Corporate profit sharing plans Tkx shelters Unincorporated pension plans IRAs Bemie Miller, Correspondent Banker 3 1 9 / 5 82 -1 8 41 American -/Trust 0 Savings Danl^ The Benk^of O p p o rtu n ity Town Clock Plaza, Dubuque, Iowa 52001 • 319/582-1841 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC and FRS Northwestern Banker, October, 1982 80 Io wa N e w s Mason City President Named as executive vice president, respon Elected Vice President at James E. Niemants was recently sible for the loan portfolio. Before Iowa College Foundation elected president, chief executive of ficer and a direc tor of American State Bank, Ma son City. Mr. Niemants suc ceeds George W. Meyer, who has resigned to pur sue other inter ests. Mr. Niemants has been serving j.s. NIEMANTS • joining the bank’s staff, he had been The Iowa College Foundation with the Citizens National Bank of Board of Governors has elected Dr. Boone. Roger A. Hughes as vice president^ of the Iowa College Foundation, Des Iowa Falls Bank Purchases Moines, according to Dr. Walter F. Building For Expansion Peterson, chairman of the board of The Iowa Falls State Bank, Iowa Governors and president of the Uni Falls, has recently purchased the versity of Dubuque. # building located next door to the Dr. Hughes, until resigning to ac bank, currently housing Harrison’s cept the vice presidency of the Foun Variety Store, for future expansion. dation, has been director of develop Harrison’s is expected to close ment at St. Norbert College in De sometime before July, 1983. Pere, Wis. He will take on his duties# of the newly created position as chief operating officer of the Iowa College Foundation on October 4, 1982. Dr. Hughes has been with S t # Norbert College since 1979 where he has served as acting director of public relations and director of development. Previously, he was director of alumni relations a t^ University of Wisconsin-LaCrosse. The Iowa College Foundation, lo cated in Des Moines, Iowa, is an association of twenty-four private Iowa colleges. ® IF YOU HAVE OVERLINE NEEDS — LARGE OR SMALL — CALL NORTHWESTERN BANK Midtown Manager Named Tom Pohlman Northwestern’s Correspondent Banker Is On Your Side! 712/252-4141 Northwestern Bank Of Sioux City An Affiliate of Northwest Bancorporation Member FDIC Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B an co Ron Will, commercial loan v ic ^ president of Toy National Bank, Sioux City, has been nam ed m a n ag e r of Toy’s Midtown Office at 17th & Pierce. Mr. Will, whose responsi bilities include both operations and loan divi sions, will ex pand the office capabilities to full-service and con tinue to serve commercial loan eus-# tomers from that location. Mr. Will replaces Devona Willms who joined Mead-Johnson on Au gust 30 as a medical sales repre sentative. # Paton Vice President Dies James H. Harris, 91, who served as vice president of Community State in Paton for 25 years, died Ju " ly 22. He was an active citizen in Paton community until the winter of 1980 when his health began to fail. Mr. Harris was with the bankfrom the time it was incorporated iir February, 1956. 81 W hen You Build Or R em odel Your Bank, W ho R eally B enefits? [0^?6ur Local Excavator [0®Your Local Lumber Yard |0*fYoar Local Concrete Supplier |0^Tour Local Carpet Store □ Your Local Mason [0^four Local Hardware Store iZ^four Local Electrician [Z^four Local Motels [0^?6ur Local Plumber [0^four Local Restaurants [0^?6ur Local Heating Supplier [B^four Local Drapery Shops IS^four Local Paint Store BH four Local Appliance Store [0^Tour Local Painter B ^ fo u r Local Landscaper [0*Vour Local Roofer B ^ fo u r Local Newspaper IZ^Vour 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. KIRK GROSS CO. 4015 Alexandra Drive Waterloo, Iowa 50704 Phone 319-234-6641 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 82 Iowa N ew s Security National Presents Unique Gift to Sioux City Libraries sources, soils, weather and climate; prairie land, forests, and plant life, wet lands, aquatic life, and wildlife. braries in Sioux City by Security Also included are chapters on native National Bank. Iowa's Natural Heri peoples and Iowa’s explorers and tage is an exciting publication that settlers. Security National Bank has con explores and commemorates Iowa’s tributed the book to the Sioux City rich and fascinating environment. The publication is the first of its kind for Iowa, and one of the first in the United States. The book was published under a cooperative effort of the Iowa Natural Heritage Foun dation and the Iowa Academy of Science. These organizations formed an agreement with the Iowa Bank ers Association to distribute the book through Security National Bank and other participating banks across the state. It is a distinctive and author itative book written by 32 of Iowa’s most respected natural scientists. The book represents an accumula tion of many years of research and R.E. Hagen (left), president of Security Na study. Fourteen chapters cover the tional, presents Fred Neighbors, director of geological history of Iowa; glaciers Sioux City Public Libraries, with a copy of and resulting land forms, water re Io w a ’s N a tu ral Heritage. UNIQUE book outlining the A complete natural history of Iowa was presented to several li Committed to making your bank stand apart from the Public Libraries, the Sioux C ity^ High Schools, Morningside and Briar Cliff Colleges and Western Iowa Tech. The book is also avail able at Security National Bank for $24.95 per copy until November 1. <|§> Mt. Pleasant Bank Elects New Board of Directors Donald F. Carmody, president ofg> Hawkeye Bank & Trust, Mt. Plea sant, has announced that a new board of directors has been elected. They are: Carl Seberg, Olds-Swedesburg# area farmer; Carl Byrum, Mt. Union area farmer; Bob Miller, admini strator of the Henry County Health Center; Bill Hassenfritz, owner of the International Dealership in M t.# Pleasant, Edd King, adminstrative manager of Metro Mail’s operation in Mt. Pleasant and mayor; Marvin Day, owner of A&D Management, and Donald F. Carmody. • Paul Dunlap, president of Hawkeye Bancorporation, had initially been president of Hawkeye Bank & Trust, Mt. Pleasant, with Mr. Car mody as executive vice president.# Mr. Carmody has assumed the posi tion of president. Mr. Dunlap had in dicated that the bank would have a completely local board and the elec tion of these individuals fulfills th a t# commitment. Joins Cedar Falls Bank Tom Hawkinson has joined th e# Cedar Falls Trust & Savings Bank as a trust officer. Mr. Hawkinson was formerly em ployed in the estate and trust divi sion in banks in Omaha and Loui-# siana. He will be responsible for estate planning in the trust department. Milford Bank Opens Banking Facility in Okoboji Dickinson County Savings Bank, Milford, recently opened a tempor-^ ary facilility in Okoboji on Hwy. 71. The bank is in the process of con structing a new 1,000 square foot, full service banking office just 100 feet north of the temporary facility# and across from Brooks Lodge. The new office, scheduled for com pletion in the middle of January, 1983, will include a drive-up and three teller windows, with offices# located on the main floor. DigitizedNorthwestern for FRASERBanker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W hat d o y o u h ave | to d o to g et you r correspondent's attention? Let's face it. The giant downtown bank you correspond with is a different place than it was ten or twenty years ago. You were important then, but they have other interests now. As a correspondent, you rarely get to deal with the top echelon —the people who could provide fast action and quick approvals for loan participations and the other services you need. It's time you started working with a bank you can bank on. At Drovers Bank of Chicago, you have direct daily access to top level banking professionals and a staff whose careers are centered on correspondent banking. We're one of the ten largest correspondents in Illinois. You and your bank's financial needs are very impor tant to us. It explains why we're so responsive and why our correspondent relationships have almost quadrupled in three years. Call John Crotty toll-free at 800-621-8991 (in Illinois, 800-572-2498). He'll fill you in on all the ways we can help —a full range of services that includes overline participations, purchase and sale of Federal Funds, bond portfolio analysis, and any other service you want or need. The Responsive Correspondent Drovers Bank of Chicago 47th & Ashland Avenue, Chicago, Illinois 60609, 312-927-7000 Member, Cole-Taylor Financial Group—Independent Banks Working Together Member Federal Reserve System and F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 84 Keokuk Executive Named # With today’s rapid changes in banking technology, data processing is becoming an even more important management tool. That’s where I come in. • • Ken Roeder Correspondent Bank Officer Security National Bank William Logan, president of The State Central Savings Bank, Keo kuk, has announced the appoint ment of Chris J. Pappas as execu tive vice presi dent and direc tor. Mr. P appas has been associa ted with Farrar and Associates for the past 11 months and prior to that he was senior lending officer at Bankers Trust Company for 12 years. He has also been employed with the Federal Reserve Bank of Chicago and w as^ senior bank examiner and trust ex aminer. Cedar Valley Elects Board W hen Ken Roeder talks about how the advances in the field of data processing can affect yo u r operations, h e ’s speaking from experience— 15 y ears’ experience as a data processing specialist. Ken know s data processing. More im portant, he know s how to put it to w ork for the individual needs of his correspondents. As a Security correspondent bank officer, Ken is also equipped to provide you w ith the best in ag lending and overline services. Today, your continued profitability is as im portant to Security National as it is to you. Through experts like Ken Roeder, w e ’re determ ined to help you protect it. The Cedar Valley Chapter of tl# Bank Administration Institute re cently elected officers for the 1982-83 year. Results of the elec tions are as follows: President—Gary Burke, vice pre^P dent and cashier, State Bank of Waverly; Vice President—David L. Kingland, senior vice president, First Na tional Bank, Mason City; Treasui^ er—David G. McQuown, vice pre* ident, First State Bank, Greene, and Secretary—Lyle E. Meyer, executive vice president, State Bank of Allison. Directors elected were Mickey EL Lewis, president & trust officer, F ir* National Bank, Sumner; Gordon Koehler, assistant vice president and farm representative, Cresco Union Savings Bank; John Hess, vice presi dent and cashier, Decorah Stare Bank, and J. Richard Herbrechtsmeyer, vice president, First Security Bank & Trust, Charles City. IOWA CONVENTION ... (Continued from page 70) Your Security Correspondent Bankers 1. to r. Ken Roeder, Stan Carlson, Wilma Weeks, Steve Hatz, Mike Hefner Western Iowa’s Largest SECURITY NATIONAL BANK Sioux City, Iowa 51101 (712) 277-6554 © 1982 Security National Bank Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis played a big part in the convention. Burl Ives presented two music# performances Sunday evening; the President’s Ball drew a good crowd to the Fort Des Moines Hotel ball room Monday night, and the Tues day Night Hoe Down played to a fi# dinner crowd at the Mariott ball room. The largest exhibit area ever for an Iowa convention featured a num ber of new machines, programs ar# services for Iowa banks. □ 85 "These tough times demand 'state of the art’ efficiency and low data processing costs. We have both with the National Bank of Waterloo Computer Center." Bill Beohm, President Tama State Bank The Tama State Bank is just one of the 70 satisfied members of the National Bank of Waterloo Computer Center family. Bill and his bank staff find our computer services: Efficient. . . with a wide variety of “state of the art” systems. Low Cost. . . we do data processing better and save you money Accessible. . . on a day to day basis . . . for a productive working relationship. Knowledgeable. . . in banking as well as data processing. Responsive. . . to the changing needs of bank management. Versatile. . . we have the system to meet your needs. Call Milt Hennick In-Iowa Phone - 1-800-772-2411 N a tio n a l B ank o f W aterloo C om puter Services PO. Box 90 ■ Waterloo, Iowa 50704 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 86 Des Moines NDER a federal judge’s order, U Hawkeye-West Bank and Trust of Des Moines will have to cut out the “West Bank’’ portion of its name. It was ruled that the bank’s name in fringes on the West Des Moines State Bank’s “West Bank’’ trade mark. Hawkeye-West must destroy all documents bearing the “West Bank” phrase and must file a plan by Sept. 13 detailing its compliance with U.S. District Judge Harold Vietor’s order. The judge also awarded the West Des Moines State Bank $18,876 in damages. Hawk eye-West, one of about 30 owned by Hawkeye Bancorporation, used to be First Federal State Bank until April, when it adopted its current name. * * * J. Locke Macomber, president of Valley National Bank, has announced the election of Mark W. Christen as vice president and head of the cor respondent bank division, and Ken neth W. Dykema as vice president in commercial lending. Mr. Christen has had extensive correspondent banking and lending experience, including many years in correspondent banking at Mer chants N ational Bank, Cedar Rapids. M.W. CHRISTEN K. DYKEMA Northwestern Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for 17 years. His education include# a bachelor’s degree in Business Ad ministration from the University of Iowa, and graduate degrees from both the University of Wisconsin and Iowa State University. M r# Mayne has served as president of the Iowa Federation of County Bankers and Southwest Iowa Bank ers Association. Mr. Norris is also a native of Re<P Oak. He has been engaged in farm ing and the real estate business. He also is currently serving on the Montgomery County Board of Health. ® First Mid America is a regional investment banking and brokerage firm headquartered in Lincoln with offices in 18 midwestern cities. Mr. Dykema, who has been with Security National to Valley Bank since February, 1981, Sponsor Retail Seminar was previously assistant vice presi Security National Bank, Sioux Ci dent in commercial lending. ty, will be sponsoring a Retail Sem ^ nar, featu rin g Wyoming Bank Expands Murray Raphel, of Ralph Orth, executive vice presi p re s id e n t Murray Raphel dent of the Citizens State Bank in Wyoming, has announced that con Advertising, to struction has begun to expand the be held Wednes bank’s present facilities. The expan day evening, No sion will include taking over the ad vember 10 , at jacent building to the east and ex the Sioux City tending the Colonial exterior design Hilton Inn. The schedule of the original bank. M. RAPHEL A large, private office directly ac for the seminar cessible from the outside will be e n title d , “ The G r e a t B rain available for attorney services to the Robbery,” includes a reception and community. An employe lounge, hors d ’oeuvres from 6-7 p.m.; Mur# large bookkeeping department and ray Raphel from 7-10 p.m., and re two fire proof storage vaults are also ception and hors d’oeuvres again at 10 p.m. included. Mr. Raphel is a retail merchant When completed in five to six months, the bank will occupy over and international speaker on mar# 6,800 square feet of banking space keting and advertising. He is an ad vertising consultant to many major to serve its customers. Kirk Gross Company of Waterloo organizations and writes a monthly is in charge of the project and will newsletter on adverstising and pro utiltize local subcontractors wher motion for the finance and retai# businesses. ever possible. For further information or to con firm your reservations for this First Mid America event, call or write: Don Acker, Opens Red Oak Office Security National Bank, Sixth áP Charles J. Burmeister, president Pierce Sts., Sioux City, IA 51101; of First Mid America Inc., Lincoln, phone (712) 277-6632. Tickets are Nebr., has announced the opening of $19.95. its Red Oak, la., office. Serving Red Oak and Southwest Iowa as FMA account executives will be Winfield Mayne and Bob Norris. Mr. Mayne is a native of Red Oak and before joining First Mid Amer ica was employed at Montgomery County National Bank in Red Oak 87 NOBANKCANSATISFYYOURNEEDS * BY MERELYOPENING ITSDOORS EACHMORNING Our goal is to meet all of your correspondent bank needs now and in the future. We know that as your bank grows and changes, you’ll need special services and counsel on how to deal with rapidly changing technology and regula tions. We can provide those services and counseling but we’re not sitting behind our desks waiting for you to come to us. In order to meet your needs — whatever they may be — Lending...Cash Management... Investments... Farm ... TVust ...Data Processing, we want to meet with you...on your own turf, and discuss what we can do for you. Today, no bank can afford to satisfy your needs by merely opening its doors each morning. If you do need some answers now, call one of our Correspondent Bankers at 1-800-362-1615. UNITEDCENTRALBANK AFFILIATED WITH UNITED CENTRAL BANCSHARES INC. MEMBER FDIC LOCUST AT 6TH, DES MOINES, IOWA 50304 (515) 245-7111 3400 WESTOWN PKWY. • 35TH & INGERSOLL • 501 E. ARMY POST RD. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, October, 1982 88 Io w a N e w s PEOPLES Bank and Trust Company’s plans for an addition to and renovation of its main bank building are shown above. rel vault skylight providing n a tu ra l light to the bank interior. The trust department will be loca ted on the first or ground floor of the expanded area. Adjacent to the trust area, will be several private of® fices which will be used for new cus tomer services that are currently becoming available. The majority of the second floor of the new addition will be used t<# house Peoples Bankshares, Ltd., a multi-bank holding company, which owns Peoples Bank and the Parkers burg State Bank. Approval has been received from the Federal R eserv# Bank of Chicago for the acquisition of the Melbourne Savings Bank and the Kellog-Sully Bank and Trust. By year end, Peoples Bankshares, Ltd., will own four banks having elevei# locations in Iowa. Peoples Bank Plans Expansion V.P. Named at Onawa IBank j EOPLES Bank and Trust Com P pany of Waterloo has announced plans for an addition to and a reno Steven V. Johnson has been a p ^ pointed vice president of the Onawa State Bank, effective Sept. 1 . Mr. Johnson was graduated from Iowa State University and has been employed by the FDIC as a bank ex^ aminer for five years, working out of the Sioux City office. Through various internal rede signs and remodeling during the past several years, the bank has vation of its main bank building at been able to accomodate its cus West Fourth Street and Washing tomers in an efficient and effective way, administering bank assets now ton. Peoples Bank moved from the cor exceeding $160 million. The new building, which will con ner of West Fourth and Commercial into its existing facility in Sep sist of 6,000 square feet on each of tember of 1960, with assets totaling the two levels, is designed to include $10 million. The bank was designed a unique, energy-conserving atrium to accomodate growth up to $100 connecting both floors vertically and will be topped with a glass bar million. Irwin Bank Expansion Completed Lage Joins Postville Bank Citizens State Bank, Postville# has announced that James P. Lage, vice president and manager, First Trust and Savings Bank, Remsen, will be joining the bank’s staff Oc tober 1 1 as executive vice president# Mr. Lage has been with First Trust & Savings, Remsen, since 1975 and previously served as vice president at the Ravenna Bank, Neb., and several Minnesota banks# Security State, Guttenberg Staff Changes Announced CONSTRUCTION was recently completed on the expansion and remodeling of the Farmers Savings Bank, Irwin. The project nearly doubled the bank’s usable space. David Moore, chairman, stated, “ not only can we now provide the customers with pri vacy for their financial dealings but also a facility that has entered the computer age.” Eugene Griffiths/Co., Architects and Engineers of Hastings, provided architectural ser vices and supervision and were in charge of the interior design and furnishings. Digitized Northwestern for FRASER Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Security State Bank, Guttenberg ® recently announced the following staff changes: H.B. Tangeman, president, has been named chairman; R.H. Tang eman, vice president and cashier# has been named president; R.F. Newbern, assistant vice president, and Mary Jo Tangeman, assistant cashier, have been made vice pres idents; Bonnie J. Vorwald, assistant# cashier, is the new cashier, and W.H. Tangeman has been named assis tant cashier. Also at the bank, Charles F. Fine has been elected to the board o • ' directors. 89 CAK (faci toUf, (foie 'n a fa ti ée/ivici Ì4 k6 (foxe don 't o^ ei LEVEL TERM LIFE is the simple, com plete solution to insurance protection on all loans where credit insurance doesn’t fit — regardless of size or term. We’ve cut the “ red tape” to give UNDERWRITTEN BY: EE/L EARLY AMERICAN LIFE INSURANCE COMPANY SINCE 7877 2706 CAN N O N ROAD ST. PAUL, MINNESOTA 56116 TELEPHONE: (612) 698-2411 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis you fast approvals with almost no delays for you or your customers. Try us and you’ll find out what personal at tention really means. Offered exclusively In Iowa by: IOWA BANKERS INSURANCE & SERVICES, INC. 400 Financial Services Building 508 Tenth Street Des Moines, Iowa 50308 CONTACT: Gary Livesay or Ron Meyer 1-800-532-1423 Northwestern Banker, October, 1982 90 Io wa N ew s Women’s Clubs, ABA Offer New Program ANKERS across the nation B soon will be asked by leading women from their communities to expert advice from their Program Banker, club members can take an active role in effectively charting their personal financial and retire ment plans - ensuring themselves eco nomic self-sufficiency and security. “Women: Controlling Your Finan cial Destiny” is a two-phase pro gram. Phase I is designed for ex clusive use within GFWC clubs. It offers resource materials and activi ty suggestions that will provide all members with a broad range of fi nancial and retirement-planning knowledge and includes suggested ways to put this knowledge to work in developing a personal financial profile and planning agenda. Phase II is designed for communi ty use. This segment of the program is structured to allow GFWC club members to take the information they gained through participation in Phase I to other members of the community through a variety of out reach programs. For more information on becom ing a Program Banker, or on ABA constituencies building efforts, call Sharon Knight, (202) 467-4281. To volunteer to be a Program Banker for your local GFWC club, call or write Mrs. Shelby Hamlett, GFWC Consumer Concerns Divi sion Chairman, 5719 Club Lane, S.W., Roanoke, VA 22418, (703) 774-5979. help carry out a new program called “Women: Controlling Your Finan cial Destiny.” The two-year program, a joint ef fort by the General Federation of Women’s Clubs (GFWC), and the American Bankers Association, is designed to help women obtain the financial self-sufficiency and securi ty they need and deserve. Under the program, women will be able to turn to their local GFWC clubs and their local banker for ex pert advice on financial planning. During the coming months, lead ers of the more than 12,000 local clubs nationwide will be deciding how their clubs will participate in the program. Those clubs have mem bership of more than 600,000 women. Juanita Bryant, International GFWC president, says local clubs will welcome the opportunity to be involved in this program. Joseph H. Riley, chairman of the board and president, National Sav ings and Trust Bank, Wasington, D.C., who is also chairman of the ABA Communications Council, which sponsored this program as part of its constituency efforts, stated: “ An alliance with the GFWC, which has a membership of more than 600,000 women, will Automated CD Exchange enable bankers to increase their ser vice to the community and provide Commences Operation An automated national exchange an opportunity for them to develop a for negotiable, federally-insured new consumer market.” ABA will provide GFWC clubs that choose to participate with a progam kit on “Women: Controlling Your Financial Destiny,” Mr. Riley INDEX OF said. Before starting the program, ADVERTISERS the club coordinator will be asked to appoint a senior officer of a local Full Service Bank to serve as the OCTOBER 1982 club’s Program Banker. This banker Acorn P rinting............................................................... 6 Bankers Association.......................................11 will help organize and coordinate American American Express, Travelers Cheques.......................... 5 many aspects of the program’s ac American National Bank & Trust, St. P aul..................... 35 tivities, lend support to community American Trust & Savings Bank, Dubuque..................... 79 Trust Co., Des M oines...................................... 64 projects and provide the club with Bankers Banks of Iowa Computer Services, Inc....................... 68-69 additional resource materials and Commerce Bank of Kansas C ity ................................... 7 Commercial National Bank, Peoria................................ 28 ideas. Continental Bank, C hicago........................................... 9 Included in the program kit are Daktronics ..................................................................... 8 planning materials for GFWC clubs Drovers Bank of Chicago............................................... 83 on community-outreach activities, Employers Mutual Co., Des M oines.............................. 31 FBS Business Credit, Minneapolis................................ 15 as well as background materials, First Mid-America.......................................................... 62 worksheets, resource materials and First National Bank, Chicago..........................................16 First National Bank, Denver........................................... 53 reference items. First National Bank, Lincoln..........................................61 Using this information and the First National Bank, O m aha..........................................59 Digitized Northwestern for FRASER Banker, October, 1982 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CDs of $100,000 began operations iJi September. The CDx exchange en ables insured depository institu tions to list by telephone in a central computer the amount of CDs they wish to sell. The exchange ii tegrates new listings with current ones and makes them available in packages of $1 million or more to money market funds, trusts, cor porations and other investors. <® Only one CD in any package is issued by any single depository in stitution; consequently, full FDIC or FSLIC coverage applies, accor ding to Oakley Hunter, chairman the CDx advisory committee. Mr. Hunter is former chairman and president of the Federal National Mortgage Association. The New York office of Stat Street Bank & Trust Co., Boston, is the issuing agent for all CDx tran sactions. CDx was designed by Har vey Baskin & Co., a financial ser^ vices firm in Washington, D.C. State Street spokesman said when a transaction is executed, that firm “immediately transmits proceeds to the issuer through the Federa Reserve System and issues the ce tificate to the purchaser.” The purchaser pays no fee. Issu ers pay a fee for each completed transaction of $47 plus one basi point per maturity month. The CDx computer can exclude CDs of any issuer or group who re quest such exclusion. The computer also excludes from any package CD from an issuer whose CDs are" already in the buyer’s portfolio, thus preserving the fully-insured aspect for the buyer. First National Bank, St. Joseph......................................63 First National Bank, St. P aul..................................... 38-39^ Gross, Kirk Co., W aterloo......................................... Harris Bank, C hicago.....................................................21 Iowa Bankers Insurance & Services, Inc......................... 89 lowa-Des Moines National B ank....................................92 Karma Cahill Fine Art & Framing....................................78 Kooker, E.F. & Associates............................................. 86 Lincoln Benefit L ife .................................................. Merchants National Bank, Cedar Rapids...................... 2 Midland National Bank, Minneapolis............................ 32 National Bank of W aterloo............................................. 85 Northwestern National Bank, Minneapolis................... 37 Northwestern National Bank, Sioux C ity .......................80 Office Concepts, W aterloo....................................... Omaha National B ank............................................... 46-47 Schweser, Robert E. Co................................................... 57 Security National Bank, Sioux C ity ................................ 84 Travelers Express Co.......................................................91 UCB Leasing Corporation............................................. 75 United Central Bank, N.A., Des M oines.................. United States National Bank, Omaha............................5 Van Wagenen, G.D. Co., Minneapolis..............................3 You e a r n in c o m e fro m o u tg o when the Paper llg er handles your O fficial Checks. Y our disbursem ents earn reim b u rsem en ts—substantial cash in co m e—w hen you have T ravelers E xpress—the P ap er T ig e r—handle your Official C hecks. Y ou’ll m ake a substantial profit while we perform all the reconciling, storing, tracing, filing and paym ent stopping. You free up expensive em ployee tim e, you d o n ’t pay for your custom ized drafts and you m aintain financial control. 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As beneficial as MasterCard II is for the consumer, it will prove to be even more so for your financial institution. The MasterCard brand is recognized worldwide and it makes you part of a controlled delivery system that is already in place. MasterCard II enhances your present ATM program and can be your link to ATM networks of the future. In addition, MasterCard H will be profitable for your institution — an excellent source of fee income and an indispensable feature of your transaction account package. MasterCard II is a program that yo u manage. Banco Card Services removes the complexity of execution through marketing, operational and systems support. For more information, contact the Banco Card Services office in your area. Des Moines Minneapolis Omaha We believe the debit card holds the same growth potential that credit cards held in the 1970’s...growth that you can tap today. BANCO CARD SERVICES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 515-245-3248 612-372-9622 402-536-2478 A Division of the lowa-Des Moines National Bank Seventh & Walnut • Des Moines, Iowa 50304