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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
Federal Reserve Bank of St. Louis



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If quality service is im portant to
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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
Federal Reserve Bank of St. Louis

Member F.D.I.C.



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Federal Reserve Bank of St. Louis



CIRRUS Selects Directors


OCTOBER 1982 • 89th Year • No. 1429

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.


17 The deposit benefit
CPAs tell how to consider this element in bank sale



Survey asks superintendents, bankers to define them


Over 300 attend Market Day

Annual event in St. Joseph, Mo., features ag panel

44 Montana Convention Report
65 Iowa Convention Report
86 Des Moines News


Bank Promotions
Corporate News
Twin Cities
South Dakota


North Dakota
Advertisers Index

306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor


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
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
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
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
£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

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




Apr. 24-27, 1983—IBA Washington, D.C®
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
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,
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,
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
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,
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,
State Conventions & S ch o o ls
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
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.
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
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.



"Accepted Sale Registers by Bank
Clerks Everywhere"
ror in lo r m a tio n w r i te

Oakland, Iowa

Jan. 12-13, 1983—MBA Personnel Confe®
Feb. 8-9, 1983—MBA Senior Bank Manage­
ment Conference.
Mar. 1-3, 1983—MBA Marketing Work­
Mar. 15-17, 1983—MBA Agricultural W o r®
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
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.®
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 ^
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.
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
p iiiii
transfers in a single day.
■■■■■■■■■■■■■■■■■■■■■■■■■ ■iffl l
SS38S8SS(¡Sb! í .««.
In a business where mil­
lions of dollars change hands
each hour, you can’t afford a
¡ ¡ ¡ ¡ j ìiiiif " " f
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

surefire way to keep our
correspondents happy.
Federal Reserve Bank of St. Louis

of Kansas CityN
A “

(816) 234-2000 • 10th & Walnut • Kansas City, MO 64141

Northwestern Banker, October, 1982



Bank Promotions

ROMOTIONS and other announ­
cements have been made by the
following banks and holding com­


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.
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
The election of three new officers
at Commerce Bank also have been
announced. They are: Merna M. Sol-

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



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
Federal Reserve Bank of St. Louis


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^
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
Garry J. Scheuring, senior vie®
president, has been named head of


The check who
cam e in from the cold



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.

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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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
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
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
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

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
Division C, and
Tom Panos was
named assistant
vice president in
Division B.




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.



New trust officers are James H.
Conley, James. D. Cullen, Jr., Mi­
chael H. Gerhold and John E. Pihlblad.
Kathryn Bingham was elected as­


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



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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.
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
Federal Reserve Bank of St. Louis

Competitechs’s Goal is Productivity
HAT do controlling bankruptcy
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measuring staff productivity and us­
ing financial futures as an asset/
liability management tool all have in
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
“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
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.
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


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:
1983— October 8 -1 2 , Honolulu.
1984— October 20-24, New York ®
1985— October 19-23, New Orleans.
1983— March 23-27, Town &
Country Hotel, San Diego.
1984— March 25-29, Marriott, New
1985— M arch 6-10, Convention
Center, San Antonio.
1986— March 9-13, Hilton, Las
Boston Regional Office
Continental Illinois National 1987— March 15-19, Hilton, San
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.

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
ROMOTIONS and other announ­
Cummins-Allison Corp., Mt. Pro­
Swords Associates, Inc., Kansas
cements have been made by the spect, 111.: Administrative offices
Mo.: Edward V. Kerrigan has
following firms:
and manufacturing facilities were
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.
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.
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
Company of Chicago has an­
from Western Illinois University. president/genernounced
the completion of its pur­
^Before joining Barclays American he al manager for
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
•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
tions with several other companies, pending.



Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


Banco Reveals Proposed Name Change
ORTHWEST Bancorporation and
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
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
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
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
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
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


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^
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
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
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
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
BankDisk products already on
the market will be joined by the first
Oof these new products during No­
vember of 1982. The final BankDisk
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
“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

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

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,

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


HowTheFirstTkm makesFirstCMccm
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.

The First National Bank of Chicago


© 1982 The First National Bank of Chicago • Member FD.I.C.

Northwestern Banker, October, 1982
Federal Reserve Bank of St. Louis


How to consider...


DATE..... ... .......................... ............... 19_....—
Checks and other items are received for deposit
subject to the provisions of the Uniform Commercial
Code or any applicable collection agreement.




«:o?aooQ Eeai:

lühoohs»9 acquiring a bank

Written Exclusively for T he N orthwestern B anker by


Partner, Des Moines
Manager, Chicago
Peat, Marwick, Mitchell & Co.

HE ECONOMIC BENEFIT of deposits acquired
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

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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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

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
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
Provisions of the Monetary Control Act of 1980 that

Northwestern Banker, October, 1982
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
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,


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
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.
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


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
Assume that book values and fair market values are
as follows:
(in millions)
Cash & due from banks
Long-Term Investment Securities
Fixed & other assets (cost $5)
Benefit of deposits

Book Value
$ 6


Fair Market
$ 6

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
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
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
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.
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^
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


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
—N. W. Harris, 1882

Harris Trust and Savings Bank, 111 W. Monroe St., Chicago, IL 60603. Member F.D.I.C., Federal Reserve System.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


“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
• 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
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.

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
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?
Do you consider Repos to provide bank customers
with a perfected security interest?
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.


Tom Huston Interview
Mr. Huston: “When this whole subject of retail re­
purchase agreements came up some time ago, this de
Federal Reserve Bank of St. Louis

Other Liabilities?
Perfected Interest?
A N orthwestern B anker S urvey

partment didn’t make any ruling on them for two
“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
“I t ’s my honest opinion, and my opinion only, that
Northwestern Banker, October, 1982

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
“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
M innesota —Michael J. Pint, commissioner of
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
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
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
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
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
“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
Federal Reserve Bank of St. Louis

4| i













ious parties would rest on the resolution of these ques­
“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
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
“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
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
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
Survey of Bankers
Of the nine bankers surveyed by mail these eight
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
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

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
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
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
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.
“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

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
Concurrent sessions will follow
each of the principal speakers talks
on Monday and Tuesday, and on
Wednesday will precede the final
Inquiries for convention registra­
tion should be addressed to BAI at
P.O. Box 93879, Chicago 60670 or
Ill inois,
800-942-2181, ext., 562).





Over 300 Attend Market Day
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
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
Ken Gilpin, also a senior vice
president with First National, fol­
lowed with an up-date on the influx


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 though
you were walking in a snake pit.” In
encouraging the agri-bankers pre­
sent to consider a persons self worth

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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


The effortless, painless, “Fedless”
way to process cash letters.

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
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.
PHONE: (309) 655-5225
WATS LINE 1-800-322-2212

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.
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.


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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982

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

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
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.
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.



L oss con trol ex p ertise,
sta te-o f-th e-a rt testin g d ev ices, and




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
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.

Employers Mutual Companies
Des Moines, Iowa
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


W hen the bank guaranteed that you
would only deal with one person,
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.
Federal Reserve Bank of St. Louis


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

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
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.
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
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



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
Mr. Kleinw achter attended Bem idji S ta te U niversity and has a BS
degree from the U niversity of M in­

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


Twin Cities


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
this year. Ms. Dodge previ­
30 years of sen­
seven years w ith F&M
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



Banker, October, 1982
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 ­
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
sta rte d in 1977


departm ent. He joined N orthw est­
ern in 1979 and holds an accounting
degree from the U niversity of Il­
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



in the account services departm ent.
Ms. Rogers joined the bank in 1981 ®
in operations.


Look for us in

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.

Federal Reserve Bank of St. Louis


• S A I N T


Northwestern Banker, October, 1982


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
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


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
F irs t
N o rth ­
w estern N ation­
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
M r. Sheffert
began his insur­
ance career in
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.
* * *


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.
Banker, October, 1982
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.
* * *



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.
* * *
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.
Citizens S ta te B ank will be the

: | &




g ■1


„: "

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,
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.
CALL SCOTT ULBRICH (612) 372-5967


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

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)

First Bank Saint Paul
Member First Bank System

Investment Services Group
332 Minnesota Street
Saint Paul, Minnesota 55101
Federal Reserve Bank of St. Louis


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

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
“ St. Cloud N ational B ank and

Northwestern Banker, October, 1982
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
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
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.


M in n e s o ta N ew s


1982 Midwest Banking Institute Highlights/Graduates


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
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
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



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

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
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

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
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
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.





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
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.,
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
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
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
•autom obile and small equipm ent
•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
•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



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

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.
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
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


Northwestern Banker, October, 1982
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


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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982
Federal Reserve Bank of St. Louis

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Subsidiary of Omaha National Corporation

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Member FDIC
Federal Reserve Bank of St. Louis


M o n ta n a N ew s

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.

Banker, October, 1982
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

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
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

• 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.
Federal Reserve Bank of St. Louis


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.
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
office tower is the Security
Mr. K aiser joined the bank 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
jo in t venture by Security and
elected vice president and chief cred­
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
is located a t 3rd Avenue
1970 when he became executive vice
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


BMA Convention Looks at ‘New Marketing’ ^ gi cted by a panel of BMA
IT H banks locked in an inten­
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
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
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
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
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


A.R. Koeneke, chmn. & près., Rifle
D. A. Childears, exec. mgr., Denver

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
C.E. Snow, pres­
ident and chief
executive officer
of South Denver
'B a n k s h a r e s ,
For six years
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

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
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
N. Berne H art, president and
® chairm an, feels U nited B an k s’ stock
is presently undervalued and, accor­
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
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
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


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
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

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
Net loans for the combined 111

Northwestern Banker, October, 1982
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-*
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
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
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.


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


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
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


“I t’s n ot uncom m on
fo r us to handle over
S300 m illion in
investm ent
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
Regency Office
10010 Regency Circle
Central Park Plaza Office
One Central Park Plaza

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

Northwestern Banker, October, 1982
Federal Reserve Bank of St. Louis


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
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.


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
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”
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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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
“ 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


Northwestern Banker, October, 1982
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:


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.
□ #

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
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
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.
(Turn to page 63, please)
B anquet.

N e b raska N ew s


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
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
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 \
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)

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with advice on
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for more than
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Talk to the Professionals
in tax-free investments.

Investment Bankers



In Nebraska call toll free (800) 642-8438
Member of the Securities Investor Protection Corporation

Northwestern Banker, October, 1982


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,
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
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
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
division of the
Mr. 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

H E promotion of three officers
and the election of two new offi­
cers have been announced by H. Dav­

for FRASER Banker, October, 1982
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
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
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.
holds the desig­
nation of charter
fin a n c ia l a n a l­
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

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- ■
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Federal Reserve Bank of St. Louis


cash letter processing,
overlines, fed fund
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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.



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 ­
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





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
adjustm ent. He joined the employe

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

Where BENEFIT is more
than a middle name
Lincoln, Nebraska 68508

Banker, October, 1982
Federal Reserve Bank of St. Louis




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.


Specialists in
fulfilling your every
correspondent need...



Vice President & Manager
Correspondent Bank Division

Vice President



Correspondent Bank Officer

Correspondent Bank Officer

Correspondent Bank Officer

13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501
Phone: (800) 742-7462
Member, f .d .i .c .
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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.

(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

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Municipal Bond Department, 100 Continental Building
Omaha, Nebraska 68102 / (402) 444-1900
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
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
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

• 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.

(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
District 5: L. Clark Caley, B ank of
Clarks, Clarks, and T.L. Arm bruster, N ebraska S tate Bank, Broken
District 6: W illiam S. Olson,
£ N ebraska S ta te Bank, Oshkosh, and
L arry L. Callen, F irst N ational
Bank, Ogallala.
Federal Reserve Bank of St. Louis


First National
has a new
source of funds
for cattle and
grain loans.
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
St. Joseph, Missouri 64502

Call: (816) 279-2721
A ffiliate of First Midwest Bancorp., Inc.

Member F.D.I.C.

Northwestern Banker, October, 1982


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Northwestern Banker, October, 1982
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
Editor and Publisher
Associate Publisher
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
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
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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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
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
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
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
Federal Reserve Bank of St. Louis

Io w a N e w s


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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982
Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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.

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
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
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
(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.
for FRASERBanker, October, 1982
Federal Reserve Bank of St. Louis

Io w a N e w s


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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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
Federal Reserve Bank of St. Louis

Io wa N ew s


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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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
Federal Reserve Bank of St. Louis








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

Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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
Federal Reserve Bank of St. Louis

Iowa N ew s


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.



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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


Io wa N ew s


First National, Oelwein, Breaks Ground for New Building
ARRY Young, chairman of the
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
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
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
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
for Financial

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


FI NE A R T and F R A M I N G
1304 West 1st Street
Cedar Falls, Iowa 50613

Northwestern Banker, October, 1982
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
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#
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.


Tb correspondent banking
services at American
Tinst and Savings
American Ttust and Savings Bank has
the ingredients to make your bank more
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.

Over-line loan participation
Depository for excess funds
Bond investment counseling
Domestic and foreign wire
transfer of funds
Currency and silver procurement
ACH (Automatic Clearing House
Cash letters
Custom HR-10s
Keogh prototypes
Corporate profit sharing plans
Tkx shelters
Unincorporated pension plans

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
Federal Reserve Bank of St. Louis

Member FDIC and FRS

Northwestern Banker, October, 1982


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
Mr. Niemants
has been serving


joining the bank’s staff, he had been
The Iowa College Foundation
with the Citizens National Bank of
of Governors has elected Dr.
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,
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.


Midtown Manager Named

Tom Pohlman
Northwestern’s Correspondent Banker
Is On Your Side!

Of Sioux City
An Affiliate of Northwest Bancorporation
Member FDIC

Northwestern Banker, October, 1982
Federal Reserve Bank of St. Louis

B an co

Ron Will, commercial loan v ic ^
president of Toy National Bank,
Sioux City, has
nam ed
m a n ag e r
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

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.


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

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

The whole town benefits. That’s what your operation is all about. That’s what our operation is all about.

4015 Alexandra Drive
Waterloo, Iowa 50704
Phone 319-234-6641
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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
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#

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-#
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.
for FRASERBanker, October, 1982
Federal Reserve Bank of St. Louis

W hat d o y o u h ave
| to d o to g et you r

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.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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
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

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.
(Continued from page 70)

Your Security Correspondent Bankers

1. to r. Ken Roeder, Stan Carlson,
Wilma Weeks, Steve Hatz, Mike Hefner



Sioux City, Iowa 51101 (712) 277-6554

© 1982 Security National Bank

Northwestern Banker, October, 1982
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
The largest exhibit area ever for
an Iowa convention featured a num­
ber of new machines, programs ar#
services for Iowa banks.


"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
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
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


Des Moines
NDER a federal judge’s order,
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
* * *
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



Northwestern Banker, October, 1982
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
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,
Ralph Orth, executive vice presi­ p re s id e n t
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.
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.
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#
ever possible.
For further information or to con­
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



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


LOCUST AT 6TH, DES MOINES, IOWA 50304 (515) 245-7111
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1982


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
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
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

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
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 • '


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Federal Reserve Bank of St. Louis

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Des Moines, Iowa 50308

Gary Livesay or Ron Meyer

Northwestern Banker, October, 1982


Io wa N ew s

Women’s Clubs, ABA Offer New Program
ANKERS across the nation
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)

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
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
said. Before starting the program,
the club coordinator will be asked to
appoint a senior officer of a local
Full Service Bank to serve as the
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
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
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.
You should see w hat we can do for your M oney O rd er program , too!
F or m ore inform ation call T800-328-5678 and ask for G ene Lewis.
T ravelers E xpress ly working for you.

Travelers Express



5075 Wayzata Boulevard, Minneapolis, MN 55416
Federal Reserve Bank of St. Louis

The futura looks

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As beneficial as MasterCard II is for the
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the future.
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MasterCard II is a program that yo u
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Federal Reserve Bank of St. Louis


A Division of the lowa-Des Moines National Bank
Seventh & Walnut • Des Moines, Iowa 50304