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A B A priority:

I*, ***


A Banker’s
Guide to

Market Day
a Success

New Officers of Iowa Bankers Association
Federal Reserve Bank of St. Louis

"P roviding our customers w ith quality
service demands more from us than
simply a surface response. W e go
deeper. Take overline and liq u idity
loans, for example.
"A t MNB, we act decisively on all
overline loan requests. But first, our
qualified experienced loan specialists
study the situation and apply fresh,
innovative thinking in tailoring a loan
package to your bank and your bor­
rower's individual needs."
An opportunity to serve.
"W e believe a loan request is an op­
portunity to serve — not only the bor­

rower but the respondent bank and
the com m unity it serves. So, the close
w orking relationship we create and
maintain w ith each of our respondent
banks and their overline customers
assures continued growth, stability
and quality in their loan portfolios
and ours."
If quality service is im portant to
you, too, call 319/ 398- 4320, or call,
toll free, 1- 800- 332-5991 and talk to
Jerry or M NB Correspondent Banker
John E. Mangold, Stan R. Farmer or
Terry M. Martin.

Merchants National Bank 1:1
Cedar Rapids, Iowa 52401

Member F.D.I.C.


Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309.
for 1441
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.
Federal Reserve Bank of St. Louis


We're blow ing our
cover on w ire transfers



All banks transfer m oney.
B u t n ob od y talks about it. It’s one of
those quiet, ignored sort of services.
W e think it’s time wire transfer got
the lim elight it deserves.
E a ch year w e transfer u p ­
w ards of 10 trillion dollars. So wire
transfer is certainly important to us.
A n d it’s important to you, too.
D elayed transfers m ean delays in
your investm ents.
Fast is w hat you want. A n d
w ith u s,y o u ’ll get it. W e can m ake
transfers at supersonic speed.You
m ay call it m agic. W e ju st call it
progress. B u t actually it’s called
electronic transfers.
N ot only are they faster,
th ey’re m ore conven ient. Instead of
spending hours on the p h on e each
day, y ou can authorize transfers in
a d v a n ce.T h ey ’ll be handled auto­
matically. E lectron ic transfers can
m inim ize your aggravation
w hile m axim izin g your
W hether you ch oose
the electronic m ode of trans­
fer or the traditional ph on e
or m ail,you can be sure w e ’re
over-cautiou s about errors,
absolute sticklers about
"" * n Call R obert C .V a sk o at
(312) 828-4046. A n d ask about w ire
transfer. W e m ay not w ear trenchcoats or carry cryptic decoders, but
w e e xcel at this secret service.

Continental Illinois National Bank and Trust Com pany of
Chicago, 231 South La Salle Street, Chicago, Illinois 60693
Atlanta •Boston •Chicago •Cleveland •Dallas •Denver
Detroit •Houston •Los Angeles •Minneapolis •N ew York
St. Louis •San Francisco •Seattle •White Plains
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983

I f your prim ary correspondent
doesn’t look com m itted
to your business, take a lo o k at
First B an k M inneapolis*


Federal Reserve Bank of St. Louis

C om m itm ent.
T h e kind that says we’ll be
responsive to your needs, no matter
what the changing environment
That’s what we’re all about at
First Bank Minneapolis, and maybe
that’s why m ore banks in the Upper
Midwest use us as their primary
correspondent than any other bank.
As other banks edge slowly
out o f the correspondent banking
business, we move ahead with;

♦ the largest staff o f professional
calling officers in the region so that
our primary respondents will see
their calling officer as often as
they’d like.
♦ a 30 % increase in our data proc­
essing staff so that we can handle
your needs more rapidly and
♦ the kind o f lending philosophy
that has allowed us to double our
correspondent bank loan portfolio
in the last four years.

So if you’re getting the idea
that we are the most committed
correspondent bank around, you’re
getting the right idea.

First Bank
Correspondent Banking
First Bank Place
Minneapolis, M N 55480

We are w hat you w ant a correspondent bank to be*

* •*»

Federal Reserve Bank of St. Louis




Associates Scholarship

OCTOBER 1983 • 90th Year • No. 1441




Serving the Iowa Bankers Association during the 1983-84 year will be the officers
pictured on the front cover, from left: Immed. Past Pres.—L.C. Bud Pike, pres.,
Farmers Savings Bank, Grundy Center; Pres.-Elect—William Logan, pres., The
State Central Bank, Keokuk; Pres—Al Maser, pres. & chmn., First National Bank
in Le Mars; Exec. V.P.—Neil Milner, Des Moines, and Treas.—Richard Randall,
pres., Dunlap Savings Bank. Convention report and pictures start on page 65.



Meeting bankers’ needs

Larry Johns outlines ABA’s first priority


Banker’s guide to depositions

Attorney Jon Pearce gives some advice to bankers


The marketing matrix

Robert Larranaga describes new, competitive tool


David B. Reinke has been award­
ed a National Merit Corporate
Scholarship from G ulf+'Western In­
dustries, Inc. The announcement
was made by Harold D. Marshall,
president of Associates Commercial
Corporation, a Chicago-based sub­
sidiary of Associates Corporation of
North America, a G ulf+ Western
David is the son of Ronald
Reinke, regional sales manager of
Associates Leasing, Inc., based in
Rolling Meadows 111.

27th “ Market Day”

St. Joseph, Mo., draws from four-state area

10 Calendar


12 Bank Promotions
31 Illinois
35 Minnesota
38 Twin Cities
47 South Dakota
47 North Dakota
48 Colorado


Iowa Convention
Report & Photos
Des Moines
Index of Advertisers

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. 1441 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.

(Required by 39 U.S.C. 3685)
(also DMM 448.31)
1. Title of publication — Northwestern Banker
2. Date of filing — September 26, 1983.
3. Frequency of issue — Monthly.
4. Location of known office of publication — 306 - 15th
Street, Des Moines, Iowa 50309.
5. Location of the headquarters or general business of­
fices of the publishers (Not printers) — 306 - 15th Street,
Des Moines, Iowa 50309.
7. Owner (If owned by a corporation, its name and ad­
dress must be stated and also immediately thereunder the
names and addresses of stockholders owning or holding 1
percent or more of total amount of stock. If not owned by a
corporation, the names and addresses of the individual
owners must be given. If owned by a partnership or other
unincorporated firm, its name and address, as well as that
of each individual must be given). Ben Haller, Jr., Presi­
dent, 306 - 15th Street, Des Moines, Iowa 50309. North­
western Banker Company, 306 - 15th Street, Des Moines,
Iowa 50309.
8. Known bondholders, mortgagees, and other security
holders owning or holding 1 percent or more of total
amount of bonds, mortgages or other securities: Ben
Haller, Jr., President, 306 - 15th Street, Des Moines, Iowa
10. Extent and nature of circulation:
Average No
Actual No.
copies each of copies of
issue during single issue
nearest to
12 months
filing date
A. Total No. copies printed
(Net Press Run)
B. Paid Circulation
1. Sales through dealers
and carriers, street vendors and counter sales
2. Mail Subscriptions
C. Total paid circulation
D. Free distribution by mail,
carrier or other m eanssample, complimentary,
and other free copies
E. Total distribution
(Sum of C and D)
F. Copies not distributed
1. Office use, leftover,
unaccounted, spoiled
after printing
2. Returns from news
G. Total (Sum of E, F1 and
2—should equal net press
run shown in A)
11.1 certify that the statements made by me above are cor­
rect and complete.
Editor and Publisher
12. For completion by publishers mailing at the regular
rates (Section 132.121, Postal Service Manual). 39 U.S.C.
3626 provides in pertinent part: “ No person who would
have been entitled to mail matter under former section
4359 of this title shall mail such matter at the rates provid­
ed under this subsection unless he files annually with the
Postal Service a written request for permission to mall
matter at such rates.”
In accordance with the provisions of this statute, I here­
by request permission to mail the publication named in
Item 1 at the phased postage rates presently authorized by
39 U.S.C. 3626.
Ben Haller, Jr., Editor and Publisher

Banker, October, 1983
Federal Reserve Bank of St. Louis


200 bankers have installed MBS banking systems
Today and tomorrow the standard
in bank automation

Both hardware and software
from MBS

All personnel in your organization
are trained in your bank

Multiple methods of proof for entry
or extraction of information.

Human engineering factors aid use
and understanding of the system.

MBS written and supported from
proof thru asset and liability mgmt.

MBS using world renowned
Computer System from Texas Instruments

Complete six month moneyback guarantee
on both hardware and software

When you “think”, think




Featured on hardware from

Texas Instruments
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983
Federal Reserve Bank of St. Louis

your Direct Linetothe Ulorldof
Business...and the WorldtoCome.
Centron™ Com m unications System
If you’re about to make a major investment in
a new communications system for your business
of profession, one thing is certain.
You’re going to demand more than just “talk”.
You’ll expect a system that delivers tomorrow’s
technology, today. You’ll insist on complete reliabil­
ity. Maximum flexibility at minimum cost. Added
value, across the board, for your communications
Now, Northwestern Bell offers a communica­
tions system that meets ali those expectations,
and more. It’s called Centron communications
system, and it can open up a multitude of new
possibilities for your organization.

Growth Without the Growing P ains
Centron system’s total flexibility, combined
with its ability to grow as you grow, makes it
unique in the communications industry.
No matter what size your company is today,
Centron offers virtually unlimited capacity for the
future — 20,000 phone lines, and beyond.
With the Centron system, there's no need to
purchase costly extra capacity in anticipation of
future growth. You pay only for what you need,
adding or subtracting capacity and desired
features along the way.
What makes the Centron system so flexible
and responsive to the changing needs of
The answer is simple. Centron’s state-of-theart electronic switching systems are located on
Northwestern Bell’s premises — not your own.
So we can modify your system quickly and
efficiently. Update it whenever necessary. That
saves you money, downtime, and a whole lot
of trouble — like installation delays.
And since your Centron systems “hardware”

is located in our central offices, you save*valuable
equipment space, and you’re spared the expense
of special environmental controls.
* What’s more, Centron’s*centralized location
means that branch or satellite locations of your
business can be integrated into your main system
easily and economically.
Finally, and this is important... your Centron
system is professionally maintained aroundthe-clock, seven days a week. We solve most
problems before you even know they exist.
That’s bottom line reliability, pure and simple.

Centron, Today and Tomorrow*
As a Centron system customer, you’ll have the
benefit of Information Age technology without the
burden of an enormous capital investment.
Northwestern Bell is constantly modernizing
and upgrading Centron’s capabilities. Making new
features available. Updating maintenance proce­
dures. And improving call-handling performance.
Your Centron system will never become
obsolete, because Northwestern Bell will keep it
evolving to meet the needs of the future.
In fact, Centron just might be the only com *
miunications system your company will ever need.
Can you think of a better reason to choose
For more information on the'Centron commun­
ications system, call toll-free.

1-800-328-4535 Ext. 5901 .
(within Minnesota)

1-800-752-4225 Ext. 5901
Or, contact your Northwestern Bell Account
Executive to discover exactly how Centron’s wide
range o f standard features and options can be
tailored to meet the specific needs o f your

( 2 ) Northwestern Bell
The Information network
Federal Reserve Bank of St. Louis


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

National Conventions & Schools
Oct. 23-25—ABA International Banking
Conference, Grand Hyatt New York.
Oct. 23-26—BMA 68th Annual Convention,
Atlanta Hilton, Atlanta, Ga.
Oct. 30-Nov. 2—RMA 69th Annual Fall Con­
ference, Fairmont Hotel, San Francisco.
Nov. 2-4—ABA Chief Financial Officer
Seminar, Hyatt on Hilton Head, Hilton
Head Island, S.C.
Nov. 2-5—IBAA 23rd Seminar on the OneBank Holding Company, Marriott’s Hilton
Head Resort, Hilton Head Island, S.C.
Nov. 13-16—ABA National Agricultural
Bankers Conference, Bonaventure, Los
Angeles, Calif.
Nov. 13-17—BMA Trust Marketing Con­
ference, Fairmont Hotel, Dallas, Tex.

State Conventions & Schools
Nov. 16-17—IBA Bank Management Con­
ference, Holiday Inn, O’Hara Kennedy.
Nov. 17—IBA Annual Meeting, Holiday Inn
O’Hare Kennedy.
June 13-15—IBA Annual Convention,
Peoria Convention Center, Peoria.
Nov. 14-15—IBA Consumer Lending/Retail
Banking Conference, Cedar Rapids.

Dec. 2—IBA Borrower Bankruptcy Seminar,
Des Moines.
Feb. 5-7—IBA Marketing Conference, Des
Nov. 3-4—Bank Directors Conference,
Heritage Inn, Great Falls.
Oct. 16-20—Schools of Banking Advanced
School, Regency West, Omaha.
Nov. 3-4—NIBA Annual Convention, Mid­
town Holiday Inn, Grand Island.
Nov. 16-17—NBA Bank Management Con­
ference, Holiday Inn, Kearney.
Jan. 11-12—NBA Instalment Lending Con­
ference, Kearney Holiday Inn.
Feb. 10-15—NBA Bank Presidents Con­
ference, Red Lion La Posada, Scottsdale,
Feb. 28-29—Personnel Conference, Kearney
Ramada Inn.
North Dakota:
Oct. 25-26—NDBA Bank Women’s Confer­
ence, Holiday Inn, Fargo.
Jan. 24-25—NDBA Chief Executive Officers
Conference, Doublewood Inn, Fargo.
Jan. 25-26—NDBA Bank Management Con­
ference, Doublewood Inn, Fargo.
Feb. 15-17—Bank of North Dakota MidWinter Break, Bismarck.
Apr. 2-4—NDBA Washington Visit, L-Enfant
Plaza, Washington.
Apr. 9-11 —NDBA Head Teller Workshop.
May. 8-9—NDBA Agricultural and Consumer
Credit Conferences, Sheraton Inn, Minot.
June 3-8—NDBA School of Banking, Univer­
sity of North Dakota, Grand Forks.

Federated Investors, Inc., a large Pittsburgh based Financial Services Firm has current
openings for Marketing Representatives in various regions throughout the United
States. These individuals will introduce and service Cash Management Systems to
Financial Institutions, in two different capacities.

Asset Management Representatives
Candidates for these positions will have 3-5 years in Bank Portfolio Management.

Trust Representatives
Trust candidates will have 3-5 years Asset Management experience in a Trust Department.
We are looking for experienced banking professionals with excellent communication
skills, professionalism and a willingness to travel. NASD Series 7 and Blue Sky registra­
tion helpful.
These are salaried positions and we offer compensation commensurate with your ex­
perience. Please send resume and salary requirements in complete confidence to:

Diana L. Fraser

An Equal Opportunity Employer

for FRASERBanker, October, 1983
Federal Reserve Bank of St. Louis

July 5-7—Dakota Bankers Centennial Con-^
vention, The Broadmoor, Colorado™
Apr. 22-25—WBA Biennial Washington, D.C._
June 13-15—WBA 75th Annual Convention,
Jackson Lake Lodge.

HBE Bank Facilities
Awarded Ohio Contract


Farmers & Merchants Bank in
Miamisburg, Ohio, has awarded a
contract for $603,000 to HBE Bank
Facilities. The announcement of th e ^
contract signing was made today by
Fred S. Kummer, president of the
St. Louis-based design/build firm.
The project includes alterations
and additions to the bank’s home of- 0
fice. HBE will enclose the existing
drive-up area and convert it to
finished space for administrative of­
fices and the loan department.
A new one-story additon will 0
house the drive-up tellers and serve
three new drive-up lanes.
Farmers & Merchants’ existing
lobby will be remodeled to include
custom walnut-framed lighting and0
a new waiting area. The entire pro­
ject should be completed in July

IBAA, Innerline Hook Up


T he In d e p e n d e n t B a n k e rs
Association of America and In­
nerline have signed an agreement
which makes the computer-based ^
fin a n cia l in fo r m a tio n s e r v i c e ^
available to IB A A ’s 7000 communi­
ty bank members. Innerline, jointly
owned by the Bank Administration
Institute and the American Banker ^
newspaper, is the first management ^
support service designed exclusively
for the financial services industry.
IBAA, the national trade associa­
tion for community banks, is the 0
first national trade group to put its
members on-line.
“ By allowing IB A A members dai­
ly access to breaking news, financial
sta tistics and regu latory and 0
legislative information related to
their industry, Innerline will assist
co m m u n ity ban k ers in th eir
strategic planning and forecasting,’ ’
IB A A Executive Director Kenneth 0
Guenther said at signing ceremonies
at Innerline headquarters in subur­
ban Chicago. “ We are pleased to be
able to put this information network
within the reach of our small and <£
medium-size banks,’ ’ he noted.

We turn on a dime
so you can turn a larger
W hen m oney is expensive, so is the
time funds are idle. T h at’s why so
many banks rely on Northern
Trust Bank for profit-enhancing
correspondent services. Our exper­
tise in getting funds to work
quickly and profitably has earned
us the reputation of being a pre­
miere processor for correspondent
banks. In fact, in independent
surveys, The Northern Trust
consistently ranks am ong the top
three cash management providers
in the industry.
The latest in com puter tech­
n ology assures check collection
and safekeeping that’s accurate
and fast. Our Cashline Balance
Reporting System gives you elec­
Federal Reserve Bank of St. Louis

tronic access to your account for
maxim um flexibility. You can get
a fresh update every 15 minutes
if necessary—and m ove m oney
within hours rather than days.
A d d to our sophisticated
equipment the best in personal
attention and responsiveness, and
you get Northern Trust’s ideal
com bination of quality and effi­
ciency. A dedicated staff of profes­
sionals assures you personal
attention in all transactions.
We’re also ready to assist you
in handling your investments.
A nd our experienced Bond
Departm ent representatives
are always on hand to provide
knowledgeable advice.
W ith Northern Trust Bank
behind you, you can count on
better service for your customers.

A nd a better bottom line for your
bank. For more information,
contact Curtis E. Skinner, Senior
Vice President, Northern Thist
Bank, 50 South LaSalle Street,
Chicago, Illinois 60675. Iblephone:
(312) 630-6000. M em ber F.D.I.C.

The more you want
your bank to do,
the more you need
The Northern.




Bank Prom otions

ROMOTIONS and other an­
nouncements have been made
by the following banks:
American N ational Bank,
Chicago: Alberta I. Wuerfele was
named a senior vice president and
continues as comptroller. She has
spent her entire career with the bank
and in 1970 was the first woman
banker to be named comptroller of a
major American bank.
Robert L. Riter, who joined the
bank in 1979, has been named vice
president and head of the loan
review department.
Centerre Bank, St. Louis: Thomas
E. O ’Meara, vice president, has been
promoted to manager of the cor­
respondent division, it was announc­
ed by Clarence C. Barsdale, chair­
man and CEO. Mr. O ’Meara suc­
ceeds William J. Barnett, Jr., who
recently was elected president and
CEO of Centerre Bank of Chester­
field. Mr. O’Meara joined Centerre
Bank in 1973.


Commerce Bank also announced
the election of these three new of­
ficers: Ronald C. Gerdel to vice
president in the trust investment
department; James P. Mitchell to
operations officer in the securities
services department and Janet E.
Tyler to consumer banking officer at
the 89th & State Line branch.
Continental Bank, Chicago: Roger
E. Anderson, chairman and CEO of
Continental Illinois Corporation and
Continental Bank, recently an­
nounced the election of David G.
Taylor as a vice chairman and direc­
tor and Edward S. Bottum as a
director of Continental. The election
of both men, who were executive
vice presidents, took place at the
August board meeting.
Mr. Taylor, 54, heads the bond
and treasury services department
and is treasurer of the holding com­
pany. He will report to Mr. Ander-

Commerce Bank, Kansas City:
Eugene L. Mahaffey has been
elected senior vice president and will
be responsible for retail banking and
planning for the bank and its
regional affiliates. He had been vice
president of the parent Commerce
Bancshares, Inc. in the same capaci­




Cardpro Services, Inc.

Magnetic Striped Card Services

129 W.61st St.
Westmont, III. 60559



Banker, October, 1983
Federal Reserve Bank of St. Louis

son. Mr. Bottum, 50, heads trust
and investment services. He will
join general banking services and
will assume responsibility for that
area at the end of the year upon the
retirement of Edward M. Cumm­
ings, executive vice president, who
currently heads general banking ser­
Succeeding Mr. Bottom as head
of trust and in­
vestment servic­
es is Roger H.
S herm an, 49,
senior vice presi­
dent, who most
recently headed
w e ste rn
states group of
the U.S. banking
Gail M. MelR.H. s h e r m a n
Melick, 55, a 31-year veteran with
Continental, has taken a leave of
absence for medical reasons and
plans to retire by the end of the year.
Mr. Melick was executive vice presi­
dent of the holding company and
bank, where he headed operations
and management services and in
1980 assumed additional respon­
sibility for personal banking and the
commercial finance corporation. A
year later he became responsible for
the community banks division.
Among the 30 new vice presidents
named by Continental Bank was W.
Kent Velde of U.S. Banking Ser­
vices, who was formerly assigned to
the midwest division where he was
well-known by many Iowa bankers.
Also, promotions were announced
for Mary K. Nihlean and Albert J.
Young, Jr., to banking officers in the
U.S. banking services department.
Mary Nihlean calls on correspon­
dent banks in Iowa from Chicago
headquarters. Mr. Young serves the
southern Missouri market from Con­
tinental’s St. Louis regional office.
Drovers Bank of Chicago: C.
Hugh Albers has joined the bank as
a vice president
in the correspon­
dent bank divi­
sion, it was an­
n ou n ced
James J. Carmody, president.
Mr. Albers is a
native of Chica­
go and u n til
recently was an
a ssista n t vice
president of the First National Bank


of Chicago. He is a graduate of the
University of Colorado. In civic ac­
tivities, Mr. Albers currently is vicechairman of the Mid-American
Chapter of the American Red Cross.
Northern Trust Company,
Chicago: Robert G. Dederick, Under
S e c r e t a r y o f C o m m e rce fo r
Economic Affairs, will join the bank
in mid-October as executive vice
president and chief economist. His
resignation from his federal post
was effective September 23. He was
chief economic advisor to the
Secretary of Commerce.
Mr. Dederick, 53, had held the
position of senior vice president and
chief economist at The Northern
Trust before joining the Department
of Commerce in May, 1981. Prior to
joining the bank in 1964, his career
in economics included duties as
research m anager and as an
economics professor at Harvard,
Cornell and Boston universities.
Northern Trust directors also pro­
moted Donald L. Raiff to senior vice
president in the treasury depart­
ment, which he has headed since last
J anuary.
Promoted to vice presidents were:
Robert W. Wiarda, international
department, Latin America division;
Edward A. Caponigro and Glenn W.
Proud, Jr., operating department,
cash management, and Barry L.
Kaufman, treasury department’s
foreign exchange division.
Norwest Corporation, M in­
neapolis: Three new vice presidents
have been named within Norwest
Venture Capital
M a n a g em en t,
Inc.: Leonard J.
Brandt, T im o­
thy A. Stepanek
and Dr. Mark
A t N orw est
L easin g, In c.,
a n o th e r
su b­
s id ia r y ,
th e
op en in g o f a
Federal Reserve Bank of St. Louis

regional office in Portland, Ore., was
announced to serve customers in
Oregon, W ashington, northern
California and Nevada.
United Missouri Bank of Kansas
City, N.A.: Thomas D. Cochran has
been promoted to vice president and
manager of bank brokerage and
Rebecca D. Herman was elected in­
vestment accounting officer.
New officers elected at United
Missouri include these:
Nancy Jane Byers to vice presi­
dent and pension services officer in
trust and employee benefits.
J. Robert Hardin to vice president
in the correspondent division. He
will be responsible for developing
and maintaining accounts in nor­
thern Missouri.
Robert B. Chamberlain to vice
president in the bond department,
responsible for portfolio manage­
ment for correspondent banks.
John G. Phillips, Jr., to vice presi­
dent and municipal credit analyst in
the bond department.
Dan Cunningham to assistant
vice president in the bankcard divi­
Robert E. Mickey, Jr., commer­
cial loans, and Reginald J. Smith,
real estate division, to assistant
David A. Junge to trust invest­
ment officer.
Tess Anderson-Magill to assis­
tant trust operations officer.
Melissa Smith, Joyce E. Chaney,
David A. Dickens, Jr., and Greg
Bernard to bond investment officer.

w c />

Où c


Milbank, SD
Triangular free-standing

Apple Valley, MN
Free standing
two-faced display.

Continental to Issue
$75 Million Preferred
Continental Illinois Corporation
early last month announced a pro­
posed offering of 1.5 million shares
of adjustable rate preferred stock
with an aggregate stated value of
$75 million, or $50 per share. The
preferred shares are part of a threemillion-share shelf registration filed
with the Securities and Exchange
Commission that became effective
August 24.
The managing underwriters of the
offering are Goldman, Sachs & Co.,
The First Boston Corporation,
Lehman Brothers Kuhn Loeb Inc.,
and Morgan Stanley Inc.
Continental said that the pro­
ceeds it receives from the issue will
be used to fund the corporation’s
general capital needs.



Brookings, SD 57006
Ph. 605/692-6145
TOLL FREE 800/843-9879
(exc. AK, HI and SD)
Northwestern Banker, October, 1983


Venus 4000 installation in Franklin Square, Long Island, N.Y.

Daktronics Designs Animated System
HE VENUS 4000 message/animation system, an advanced
microprocessor controlled system, is
designed and manufactured by
Daktronics, Inc. The South Dakota
firm is an internationally known
manufacturer of standard and
custom scoreboards, time and
temperature units and animated


message centers.
Daktronics has announced the up­
dating of this computerized system
which combines graphics, animation
and word messages for arenas,
stadiums, shopping malls and even
expressway locations. Financial in­
stitutions in many states are now
using the Daktronics message/

Fo r n o t m u c h m o r e t h a n

$34.50 single occupancy. $34.50 double occupancy.
Children under 17 free in same room with adults.
Any day week or weekend.
That one low price puts you at the front door of
one of America’s great downtowns. Walking distance to the
Dome, Nicollet Mall, Orchestra Hall, great restaurants
and theatres.
That’s not all. $34.50 includes free parking,
complimentary cocktail for each adult guest, sauna and two
swimming pools.
Pick up the phone right now and call toll free
800-328-4551. In Minnesota call 800-752-4264.
Local 340-5300.

C urtis hoteL
T he Fr o n t D o o r TO M

in n e a po lis .
327 South 10th Street

Rate subject to state and local taxes.

Banker, October, 1983
Federal Reserve Bank of St. Louis

animation systems to advertise to
the local community.
Dr. Aelred Kurtenbach, president
of Daktronics in Brookings, S.D.,
has announced that the Venus 4000
software has been updated to in­
clude many new features. The major ®
ones are:
1. Telephone interface for control
of the display from a remote loca­
2. Repeat function, which allows ®
the repeating of frames without us­
ing additional memory for disk
3. Include function which allows ^
sequences to be included in a master ^
4. Additional display modes, two
hold modes and 17 exit modes.
5. Single step display feature, 0
which allows the operator to display
a sequence frame by frame simply
by pressing a key each time the next
frame is desired.
6. Instant display feature.
7. Automatic scheduling function
has been enhanced.
8. Combine Frames - gives four
ways to combine two frames into
9. Video image reader for easy
entering of graphic characters.
The Venus 4000 gives businesses,
shopping malls, civic centers and
educational institutions a popular 0
new communication system.

San Francisco Hosts RMA
Conference Oct. 30-Nov. 2


Robert Morris Associates will
hold its 69th annual Fall Conference
October 30-November 2 at the Fair­
mont Hotel in San Francisco.
More than 1,800 bank commercial ^
lending and credit officers and
spouses are expected to attend the
Conference. The program will focus
on a wide range of topics of interest ^
to domestic and international com- ^
mercial lending officers.
The keynote address will be
delivered by Stephen T. McLin,
senior vice president and director of 0
Strategic Planning for Bank of
America, N.T. & S.A., San Fran­
cisco. Major addresses also will be
given to RM A President Jack R.
Crigger and Olaf Isachsen, Ph.D. 0
Mr. Crigger is executive vice presi­
dent, American National Bank &
Trust Com pany, Chattanooga,
Tenn.; Dr. Isachsen is president, In­
stitute for Management Develop- 0
ment, Oakland, Calif.


0 Collin Fritz Schedules
IRA-Keogh Seminars
A series of IRA-Keogh seminars
has been scheduled by Collin Fritz, a
0 widely-known banking consultant
and attorney, during October,
November and December. Three
seminars were held in Nebraska last
0 i> Mr. Fritz said the seminars will
offer a review of IRA procedures
and rollovers, changes in Tefra, the
Technical Correction Act and new
forms and reporting forms in a mor0 ning program. After lunch he will
discuss marketing and investment
o p p o r t u n it ie s th a t can aid
customers. This will be followed by
an update on Keogh and SEP Plans
0 before adjournment.
Further meeting dates and loca­
tions are being arranged by Fritz in
addition to the following confirmed
0 Oct. 4—Billings, Mont., Northern
Oct. 5—Missoula, Mont., Red
Lion Village Inn.
O ct. 19 —R apid C ity, S.D .,
• Howard Johnson’s Motor Lodge.
O ct. 20 —S io u x F a lls, S .D .,
Howard Johnson’s Motor Lodge.
Nov. 8—Storm Lake, la., Harbor
Nov. 9—Waterloo, la., Holiday
Civic Center.
N o v . 22 — Io w a C ity , la .,
Dec. 6—Des Moines, la., Hotel
® Savery.

of Minneapolis was received on
September 16.
Norwest Financial, Inc. is a finan­
cial services concern headquartered
in Des Moines, Iowa. The company’s
business activities include consumer
and commercial loans, retail sales
financing and equipment leasing. In
additon, the company is the leading
purveyor of computer services to the
consumer finance industry. Norwest
Financial, Inc., formerly Dial Finan­
cial Corporation, was acquired by
Norwest Corporation in September,

MGIC Simplifies Loan
Structuring for Lenders
To help lenders manage the often
complicated and time-consuming
process involved with structuring a
variety of loan programs, Mortgage
Guaranty Insurance Corporation
has introduced a new service, the
M G IC M o rtg a g e In form a tion
The MMIS consists of a series of
computer programs that provide
loan data and analysis information
required to structure loan programs.
The pre-programmed menu of mor­
tgage loan types, offering certain op­

tional features, allows lenders to
design loans to meet the particular
lending needs of the institution.
“ The computerized system is not
only easy to access, but the lender
can customize loan origination and
structuring to meet marketplace
needs,” said William H. Lacy, presi­
dent of MGIC. “ The program
calculates loan information accor­
ding to desired loan characteristics
and optional features, such as
buydowns, negative amortization
and graduated payments.”
To further reduce lender time and
costs in structuring special loan pro­
grams, MGIC has developed the
Master Mortgage Preset System.
This new feature allows lenders to
preset certain loan characteristics
consistent for all loans of a par­
ticular type.
Buydown information and under­
writing ratios, for example, can be
programmed in advance, thereby
saving valuable computer access
time. Once the customized loan
characteristics are on the computer,
the lender need only enter variable
information, such as home price and
loan am ou n t, for each loan

Norwest Financial Gets
OK to Buy USLIFE Credit
^ Norwest Financial, Inc. issued
$50 millon of 12% senior notes,
series 1989 through Salom on
Brothers, Inc., on September 20.
Maturing July 1, 1989, the notes
q were priced at 100 percent.
The notes were issued pursuant to
a shelf registration statement filed
by the company in December, 1982,
covering up to $200 million of debt
0 securities, $150 million of which
have now been issued. The notes are
non-callable prior to July 1, 1988.
Thereafter, they are redeemable at
par plus accrued interest.
Net proceeds of the current offer­
ing will be applied to help fund the
purchase of approximately $184
m illio n o f co n su m er fin a n ce
receivables from USLIFE Credit
0 Corporation. Approval for the pur­
chase by the Federal Reserve Bank
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983

Now ! The system yo
raise, lower, mi

The new IBM 4700 Finance C om ­
munications System.
Small, attractive and modular, it fully
acknowledges that people are human.
Now, it doesn’t matter whether they’re
short, tall, medium, right-handed, or lefthanded individuals. Individual tellers and
platform officers can adjust the displays
and keyboards for optimum efficiency and
viewing from almost any angle.
They can choose to tilt the displays,
the displays, suspend the displays,
Federal Reserve Bank of St. Louis

raise the keyboards, angle the keyboards
or move the keyboards.
In short, the system adjusts to people.
Not vice versa.
Custom-tailor your workstations.
There are two new displays (with 5 V2" *
and 9" screens) and three new keyboards.
Choose any combination to give every
individual a custom-tailored workstation
for the job. And more space to do it in.
Choose receipt/validation printers,

pan tilt, swivel, suspend,
m atch, and grow with.

passbook/document printers, a PIN key­
pad and more.
The end result? The system helps peo­
ple work more comfortably so, in turn,
they work more productively.
Custom-tailor your entire system.
The heart of the system is the powerful
new 4701 controller. It’s programmable in
COBOL and compact enough to fit on a
with the IBM 3600, E j r
Federal Reserve Bank of St. Louis

the IBM 4700 provides enhanced
performance and expanded capabilities.
Whether you’re a bank, thrift or servi­
cer, large or small, you’ll find the 4700
system is a perfect fit. Try it on for size. It’s
an attractive, easy-to-use, easy-to-install,
evolutionary system for teller, administra­
tive and ATM applications.
For more information, write IBM Fi­
nance Industry, Department 762 C, Post
~ = Office Box 10, Princeton, New
.JEErE^ Jersey 08540.


BMA Will Meet at Atlanta Hilton
marketers—to manage for pro­
fitability and develop strategies to
meet the threat of non-bank com­
petition -w ill be among the leading
issues addressed at the Bank
Marketing Association’s 68th an­
nual convention slated for Oct. 23-26
at the Atlanta Hilton.
A n e s tim a te d 2 ,0 0 0 bank
marketing professionals are ex­
pected in Atlanta for the four-day
conference, highlighted by such
featured speakers as futurist author
John Naisbitt, Archie J. McGill, Jr.,
former president of AT& T’s A d­
vanced Information Systems Divi­
sion, and R.A. McKinnon, vice presi­
dent of marketing for Delta Air
Lines, Inc.
Also joining the list of notables in
government, business and banking
addressing the BM A conference is
U.S. Rep. Doug Barnard, Jr., D-Ga.,
a member of the Banking, Finance,
and Urban Affairs Committee and
chairman of the Subcommittee on
Commerce, Consumer, and Mone­
tary Affairs of the Government Op­
erations Committee. Rep. Barnard,


Banker, October, 1983
Federal Reserve Bank of St. Louis

services for South Carolina National
Bank, Columbia, noted that many of
the sessions focus “ on the tactics
and issues involved in moving to the
new marketing role required of
financial institutions.’’
Among speakers for a special
break-out session on electronic
banking and ATM networks are D.
Dale Browning, president, Plus
System, Inc., Denver; Bruce A. Burchfield, president, Cirrus System,
Inc., Oakbrook, 111.; George J.
Fesus, executive vice president,
MasterCard International, New
York, and John O. Smith, director,
ATM Network, Visa USA, Inc., San
In another convention session, a
panel of presidents of Federal
Reserve banks will discuss “ Trends
in Bank Regulation and Competi­
t io n .” The p an elists include:
R.A. MC KINNON REP. D. BARNARD, JR William F. Ford, president of the
a veteran bank marketer, formerly Federal Reserve Bank of Atlanta; E.
served as executive vice president Gerald Corrigan, president of the
for marketing and public relations Federal Reserve Bank of Min­
for Georgia Railroad Bank & Trust, neapolis; and Anthony M. Solomon,
president of the Federal Reserve
Convention Chairman Robert T. Bank of New York.
Perdue, who also is vice president
Another panel of prominent bank
and manager of wholesale support stock analysts will predict the









outlook for commercial bank pro­
fitability in the ’80s. They include:
David C. Cates, president, Cates
Consulting Analysts, Inc.; Donald
C. Waite, III, director, McKinsey &
|| Company, Inc.; and William M.
Weiant, managing director, First
Boston Corporation.
The convention’s keynote speech
will be presented by Mr. McGill.
M r. N a is b itt, w h ose b ook
“ Megatrends” for weeks has been
on the New York Times best-seller
list, will address the audience at
Wednesday’s closing luncheon.
Mr. McKinnon, Delta’s vice presi­
dent of marketing, will present
“ Marketing in a Deregulated En­
vironment—It’s a New Ballgame.”
A n oth er speaker, M iles A.
# Nelson, director of marketing infor­
mation and communication for the
3M Company, Minneapolis, will
highlight marketing’s responsibility
at 3M, which is considered to be one
• of the top ten well-managed com­
panies in the country.
Break-out sessions are scheduled
on all phases of bank marketing, in­
cluding product development, pric• ing, sales development/management, positioning, and distribution.

RMA Slates Credit Analysis Seminars
e g in n in g
in O c to b e r ,
Robert Morris Associates will
again offer its highly-acclaimed
Uniform Credit Analysis seminars
to members and nonmembers of the
A total of four open-enrollment
seminars have been scheduled for
the 1983-84 fiscal year. The dates
are October 16-21; November 13-18;
February 5-10, 1984; and April
29-May 4, 1984. Each UCA seminar
will be held at the Xerox Interna­
tional Center for Training and
Development in Leesburg, Va.
The Uniform Credit Analysis
seminar is one of the most intensive
educational events that RM A has
ever offered. When participants suc­
cessfully complete the five day,
52-hour seminar, they return to their
banks with a practical working
knowledge of this unique cash flow
analysis system. In addition, with
the aid of a UCA instructor’s
package, participants are prepared
to teach Uniform Credit Analysis to
others in their banks.
Program participants will work
manually and then with the aid of


microcomputers. In addition to
developing historical and projected
cash flow, they will learn to under-s
tand and use the UCA format and
structure; learn how cash flow is
linked to traditional analysis; learn
to use microcomputer-generated
“ what if” analysis in structuring
loans; analyze a borrower’s earnings
and determine future cash flows;
assess and evaluate the skill and ef­
fectiveness of a borrower’s manage­
ment; and examine the impact of in­
dustry trends, the economy, and
competition on a borrower.
UCA is structured for experienc­
ed lenders who already are proficient
in credit and who are actively mak­
ing loans. It also is for senior
analysts who need to expand their
capabilities so they can understand,
support, and objectively view the
lender’s decision.
The UCA faculty are experienced,
skilled teachers with excellent bank
For more information, or to
register, contact the RM A Registrar
in the RM A National Office in
Philadelphia, (215) 665-2850.

Drovers Bank of Chicago is actively seeking
correspondent banks. Seeking and earning them.
Fact: Drovers is one of the oldest correspondent
banks in the midwest. Fact: Drovers now has over
250 correspondent banks across the midwest.
relationships last year. Old-fashioned
36 36
words like service, responsiveness,
personal attention, expertise and
professionalism. And new-fash­
ioned words like discount brokerage
for your customers and recycling
Market Funds. Call John Crotty, Kathy
Money Mark«
Hardy, Max Roy or Andy Ruments... people who
reflect a continuity in policy and commitment.
Call toll-free 1-800-621-8991,
in Illinois call 1-800-572-2498.




it> / Drovers Bank

o f Chicago
47th & Ashland Ave., Chicago, IL 60609 • 1-312-927-7000
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983


“When you are a correspondent of First
Chicago, it means having access to the vast
resources of a money-center bank. It means
having teams of specialists working together
to deliver the kind of products your bank
needs. And it means a partnership that
supports instead of supplants.
“You w on’t find a bank in the Midwest
that’s organized to deliver its resources
m ore effectively than First Chicago. You’ll
w o rk w ith a relationship manager from our
highly trained specialty team s—the Com­
munity Banking Team, the Illinois Team and
the Midwest Team — according to your
specific needs.

“When you’re a correspondent with
First Chicago, w e w on’t ju st be w orking with
yo u —w e ’ll be w orking fo r you.
“See how First Team work can w o rk
fo r you. Call me, Neal Trogdon, at

(312) 732-7780.’’
F irst Chicago
Atlanta—Ba Iti more—Boston—Ch icago—
Cleveland— Dallas—Denver— Houston—Los
Angeles— Miami — New York—San Francisco—
Washington, D.C.


The First National Bankof Chicago


o l/.

ThomasM. King
Cmimunity Banking


© 1 9 8 3 The First National Bank o f Chicago. M em ber RD.I.C.

Banker, October, 1983
Federal Reserve Bank of St. Louis


ABA’s first priority:

Written Especially for
The N o r th w e ste r n B a n k e r

A B A Community
Bankers Council

Isabella Bank & Trust
Mount Pleasant, Mich.

Q . Faced with the deregulation o f interest rates and the creation o f
m oney market accounts and Super NOWs, bankers asked, “How
do we profitably price our deposit instruments?”
Q . Knowing that Apples (computers) are different from oranges but
not how to use them, bankers guestioned, “Can microcomputers
perform needed functions in our institutions?“

Q . Aware that Congress had passed the Depository Institutions Act o f
1982, bankers inguired, “How that we have the law, what steps
should we take to benefit from it?“



Editor's N ote: Since the majority o f American Bankers A s s o ­
ciation members are Community Banks, we invited the au­
thor, Larry Johns, to tell our readers in this exclusive article
how A B A is reponding to the needs o f Community Banks in
today's highly com petitive marketplace. Bankers who at­
tended the extrem ely well-received micro-computer sessions
presented by the Community Bankers Council at the 1982
A B A convention in Atlanta last October will be interested in
the continued advances noted in the following article, and the
special Community Bank sessions planned for this year's
A B A convention program in Honolulu.
Federal Reserve Bank of St. Louis

ND TH EIR questions were heard and answered in
one place — the American Bankers Association
Community Bankers Council.
•To meet bankers’ needs for assistance in analyzing
the potential profitability of offering new deposit in­
struments, the Community Bankers Council published
“ The Earnings Impact of New and Repriced Deposit
Instruments,’ ’ a publication prepared in cooperation
with A B A ’s Economic and Policy Research Division.
•To meet bankers’ need for an understanding of mi-


Northwestern Banker, October, 1983


“ Meeting needs, then, is what ABA’s
Community Bankers Council is all
crocomputers and their applications within the bank,
the Community Bankers Council, in cooperation with
A B A ’s Education Policy and Development Group, de­
veloped a comprehensive series of workshops on the
subject for A B A ’s 1982 and 1983 Annual Conventions
and for the 1982 and 1983 A B A National Assembly for
Community Banking. For the banker already familiar
with micros, A B A developed a financial analysis soft­
ware package entitled “ Micro-computer Modeling to
Improve Community Bank Financial Performance.’ ’
Using this package, a banker can learn, in a few hours,
how to use a personal computer to develop a five-year
strategic planning forecast, prepare an annual profit
plan and much more.
•To meet bankers’ need for practical knowledge
about the implications of the 1982 Garn/St. Germain
banking law, the Community Bankers Council published
“ The Manager’s Guide to the Banking Bill of 1982”
within a month of the signing of the law.
Meeting Needs
Meeting needs, then, is what A B A ’s Community
Bankers Council is all about, and how it’s being done is
a story that began a little more than two years ago.
At that time, concern began to develop within A B A
that as banking is deregulated it would become more
challenging and complex and so would the needs of the
association’s members. What A B A should have, said a
group of bankers, was an assembly of members that
would meet regularly to provide grass roots input to
the association.
The result was the Community Bankers Advisory
Board — composed of 183 members selected so that
each represents roughly 100 other community bankers
within his or her state. For this board, a “ community
bank” was defined as a bank with deposits of $150 mil­
lion or less.
The Advisory Board meets twice a year to identify
the short- and intermediate term requisites of the
banking community — in terms of both legislation and
regulation and products and services. The list that
results is then priortized, so that A B A can put first
things first.
The Council at Work
The responsibility for seeing that the work gets done
lies with the 16 members of the Community Bankers
Council*, which designs, develops, and delivers the
products and services. This Council is one of six that
form A B A policy. In addition, the council chairman
has a permanent seat on the A B A Board, and the vice
chairman has a seat on the administrative committee
of the Government Relations Council, assuring the opFour of the 16 Community Bankers Council members are from the area
served by the NORTHWESTERN BANKER. They are:
Randy Killebrew, president, First National Bank, Petersburg, III.
Ed J. Leahy, president, Northwestern State Bank, Orange City, ia.
John Lillibridge, chairman, First Fidelity Bank, Burke, S.D.
George Mcllvaine, president, Saratoga State Bank, Saratoga, Wyo.

Northwestern Banker, October, 1983
Federal Reserve Bank of St. Louis

portunity for input in the deliberations of those impor­
tant A B A bodies.
Knowing a banker’s needs is only one part of the
process. Just as important is delivering the desired in­
formation in a useful format.
One Response - Competitech
With this in mind, A B A developed Competitech, a
monthly subscription series providing techniques and
technology that bankers can easily implement within
their institutions. Each volume is a comprehensive,
clear, one-stop instruction and reference manual on
such key banking topics as improving teller perfor­
mance or controlling bankruptcy losses.
Subjects covered in Competitech are derived from
the Advisory Board’s list of areas in which operational
know-how is most desired. With annual subscriptions
now exceeding 1,400 and sales of back issues having
topped the 3,500 mark, Competitech appears to be on
target. Recent issues have examined repricing bank
services, buying and using a microcomputer and parti­
cipating in the secondary mortgage market — the sub­
jects the Advisory Board listed as top priorities.
Another Response - Banctraining
Bankers also told A B A they urgently needed assis­
tance in staff training. They were unhappy about the
lack of selection and quality of video programs on the
The response has been A B A ’s Banctraining pro­
gram, a series of instructional videotapes designed to
develop skills that enhance the marketing ability and
overall productivity of bank employees. Subjects cov­
ered have included: “ Selling Bank Services,” “ Improv­
ing Productivity on the Front Line,” “ Telephone Com­
munication Skills,” “ Listening for Results” and
“ Working Together as a Team.” Again, these are not
topics chosen at random but those identified as most
important by bankers.
Annual subscribers to the program receive not only
10 videotapes, but also discussion guides and work­
sheet masters, four issues of a quarterly staff training
newsletter and the opportunity to participate in an an­
nual seminar on video training techniques.
Other Needs and Responses
Other examples of banker needs and Community
Banker Council responses have included:
ABA Response
News of new, successful A “ Quick Alert” column
banking ideas and tech­ in A B A ’s Bankers News
Weekly newspaper
Opportunity to share
Increased emphasis on
ideas with peers on a
special interest sessions
national basis but on a and roundtable discussmaller scale than at the sion sessions at the 1983
A B A Convention
A B A National Assembly
for Community Banking
in New Orleans
Training in market and 1-1/2 day workshop prior
product development
to the A B A National
Assembly for Community
By now it is apparent that A B A uses a variety of
(Turn to page 27, please)


A banker’s guide to
Written especially for
T he N o r t h w e s t e r n B a n k e r

Stanley, Lande, Coulter
& Pearce, Attorneys
Muscatine, la.









| F YOUR BAN K is involved in a lawsuit, the opposI ing party’s lawyer may take your deposition. A
deposition is the oral testimony of a party or a witness,
taken befor trial.
This article provides the information you need to
prepare for your deposition. It is not a substitute for
the specific advice you will need from your bank’s
lawyer, but it will serve as an aid to help you work
more effectively with the lawyer.
Depositions and the Discovery Process
The person whose deposition is taken is the “ depo­
nent.” The deponent is sworn to tell the truth, and the
attorney who takes the deposition (the “ examining at­
torney” ) asks the deponent questions to learn what
relevant facts the deponent knows about the lawsuit.
A court reporter records the testimony, usually with
a stenographic machine. Later, a typed transcript of
the questions and answers will be prepared.
Depositions serve several purposes:
1. Discovery. Both sides can discover relevant facts,
thus avoiding the “ trial by ambush” practice of years
gone by. If the court of jury has all the relevant facts,
it is better able to make an informed decision.
2. Evidence. If a witness is unavailable at the time
of trial, the transcript of his or her deposition
testimony can be used as evidence.
3. Impeachment. A deposition “ nails down” the
testimony of a witness and provides a tool for impeach­
ment if the trial testimony of the witness varies from
the deposition testimony.
Depositions are part of the discovery process that
takes place before the actual trial. This process enables
each party to “ discover” relevant facts, both favorable
and unfavorable. In addition to depositions, the parties may use some or all of the following discovery pro­
Federal Reserve Bank of St. Louis

1. Interrogatories—written questions that must be
answered in writing, under oath, by the responding
party. Interrogatories are generally used to identify
witnesses and relevant documents.
2. Requests for Admissions—written requests that
the responding party admit the truth of a particular
statement or the genuiness of a particular document.
This procedure is used to establish matters about
which there is, or should be, no real dispute. After trial,
if the Court determines that a party unreasonably
refused to make a requested admission, the Court may
order that party to reimburse the other party for the
reasonable cost of proving the matter in question.
3. Requests for Production—written requests that
require another party to produce relevant documents
or things for inspection and copying.
What to do Before Your Deposition
You should meet with your bank’s lawyer well
before your deposition. Depending on the nature of the
case, there may be several matters that should be
1. Documents to Review. Ask what documents you
should review before your deposition. For example, the
bank’s lawyer may want you to become familiar with
depositions of other witnesses, answers to inter­
rogatories, certain pleadings on file in the lawsuit, or
documents produced for inspection by the other side,
as well as any documents the bank has concerning the
case. However, do not bring any documents with you
to the deposition without advance approval from the
bank’s lawyer.
2. Embarrassing or Damaging Facts. If you believe
there are potentially damaging facts that might come
out at your deposition, discuss them in advance with
the bank’s lawyer. It may be that a particular fact is
not actually a problem from a legal standpoint, or
Northwestern Banker, October, 1983


“ The point is, don’t guess. If you don’t know or can’t
remember, then that should be your answer.”
there may be some legal reason why it need not be
If there is anything in your personal background
you believe might be a source of embarrassment, do
not hesitate to discuss it with the bank’s lawyer. For
example, if you have had domestic problems, been fired
from a previous job, or received medical treatment for
an illness that you may not wish to reveal, those facts
may be completely irrelevant to the particular lawsuit.
If you are asked about them, the bank’s lawyer may
simply instruct you not to answer the question.
However, you need to bring such matters to the
lawyer’s attention before the deposition so he or she
can determine whether disclosure is required. The
lawyer can also help you develop an approach to
answering difficult questions.
3. Possible Areas o f Privilege. Discuss any potential
areas of privilege with the bank’s lawyer. These would
include attorney-client communications, proprietary
information on bank operations, and information on
bank customers who are not involved in the lawsuit.
For example, the bank’s lawyer may well conclude that
the bank should not disclose information about
another customer without the customer’s permission
or a court order directing the bank to disclose the infor­
mation, issued upon adequate notice to the customer.
Voluntary disclosure of information about a bank
customer not involved in the lawsuit may expose the
bank to liability.
4. Handling Objections. Questions may be asked in a
deposition even though the answers might not be ad­
missible at trial. For example, a deponent can be asked
to tell what someone else said, even though at trial
such testimony might be inadmissible hearsay.
While most objections need not be made until the
particular deposition testimony is offered into
evidence at trial, the bank’s lawyer may make some ob­
jections during the deposition. If that happens, the
usual procedure is that the deponent will be allowed to
answer the question after the objection is made, unless
the bank’s lawyer specifically instructs the deponent
not to answer as part of the objection.
How to Answer the Questions at the Deposition
If you understand the follow three basic rules, you
will handle your deposition without difficulty:
1. Listen to the Question. Listen very carefully to
each question asked by the examining attorney. Force
yourself to hesitate a second or two before you begin
your answer, to make certain you have heard and
understood the whole question. This also gives the
bank’s lawyer a chance to make any objection he or she
might have to the question before you begin your
Lawyers sometimes use technical jargon. If the ex­
amining attorney uses a word or phrase you do not
understand, simply say that you do not understand it
and ask the examining attorney to explain it or to ask
the question in a different way. Do not be the least bit
embarrassed to say you do not understand a particular
word or phrase or the entire question.
2. Answer Only the Question A sked—And Nothing

Northwestern Banker, October, 1983
Federal Reserve Bank of St. Louis

More. As a deponent, you are obligated to give com­
plete, honest, and responsive answers to the question.
Do that as succinctly as you can, and then STOP!
Never volunteer any information beyond what is re­
quired to answer the specific question.
Resist any temptation to be overly helpful. The ex­
amining attorney may seem friendly, but his or her on­
ly mission is to prevent your bank from prevailing in
the lawsuit. Helping the opposing party prove its case
against your bank is not part of your job.
Tell the Absolute Truth. It is a rare deponent who
tells blatant lies. Instead, problems arise when an
otherwise truthful deponent gives an answer but is
really uncertain whether the answer is entirely correct.
For example, assume you witnessed an automobile ac­
cident and at your deposition, you are asked the color
of the car you say ran a stop sign. You are uncertain ofthe color of the car, but rather than say you can’t
remember or are uncertain, you testify that the car was
blue. Later on, photographs conclusively prove the car
was yellow. While it probably doesn’t make much dif­
ference what color the car actually was, you have
damaged your credibility. Opposing counsel will say
“ You were wrong about the color of the car, weren’t
you? It’s also possible you were wrong about whether
the car ran the stop sign, isn’t it?”
If you had told the absolute truth, which was that
you couldn’t remember what color the car was, you
wouldn’t have had any problem. Instead, an inpetuous
response to a question that didn’t mean anything in
the first palce has seriously impaired your credibility.
The point is, don’t guess. If you don’t know or can’t
remember, then that should be your answer.
Before the deposition, make certain you and your
bank’s lawyer have fully and candidly discussed all
aspects of the deposition.
Remember the three basic rules:
1. Listen to the question;
2. Answer only the queston asked--and nothing
3. Tell the absolute truth.
Keep these additional tips in mind:
1. DO NOT join in the lawyers’ conversational
banter. Lawyers tend to be friendly adversaries, since
they deal with each other on a recurring basis.
However, you should not be deceived by this air of cor­
diality; depositions and lawsuits are serious business.
Answer the questions during your deposition, but do
not volunteer information at any other time. If you
don’t say anything, you can’t create a problem.
2. DO NOT let opposing counsel make you angry.
An angry person cannot be an effective witness.
When people think about lawsuits, they often im­
agine flamboyant trial lawyers winning big cases with
smooth talk and brilliant strategies. The truth is that
good witnesses win more lawsuits than smart lawyers.
A good witness is one who has credibility. Being well
prepared for your deposition will significantly enhance
your credibility.


a r k e t in g
a t r ix


A new tool for analyzing your bank’s
competitive strengths and weaknesses
□ M r. Larranaga is president o f A s ­
sociates and Larranaga, Minne­
tonka, Minn., advertising agency
that serves 21 banks nationwide.
The agency also publishes a series o f
money management newsletters for
bank customers, called Priority Pub­
N CREASED competition has
forced many banks to re-examine
the strengths and weaknesses of their
image. But defining your image, and
capitalizing on it, is no simple task
because it entails an analysis of
many separate, but interrellated fac­


“ The Marketing Matrix”
To aid our clients in the process of
image identification, we have cre­
ated a management tool called “ The
Marketing Matrix.” This simple
technique uses a grid to break down
the process into a series of steps de­
signed to identify critical factors
that shape a bank’s image. Once the

factors have been identified, we de­
termine their relative importance in
the consumers’ mind, and ask cus­
tomers to rate our client versus its
competitors on each of the image
factors. The rating each bank re­
ceives for each factor is then weight­
ed according to the overall impor­
tance of that factor. And the results
are entered on the marketing ma­
Once the weighted scores have
been entered on the marketing ma­
trix, we can tell in a glance where
our client is at a competitive advan­
tage or disadvantage on any given
factors, and, overall. Equally impor­
tant, we can tell where any single
improvement would have the great­
est positive impact because we know
how critical each factor is in shaping
a bank’s image.
How the Process Works
In practical terms, here is how the
process works...

Marketing Matrix

Convenient Location
Convenient Hours
‘ Innovative
‘ Community Oriented
‘ Full Service
‘ Friendly
‘ Expertise
Drive-up bank
Automatic Teller
Fast Service

Im portance


Bank A
unwtd wtd



‘ All these factors would be enhanced by a newsletter.
Federal Reserve Bank of St. Louis

1. The first step in the process is to
define your market geographically
and demographically; and, also, to
determine who your three major
competitors are.
2. The second step is to interview
100 prospects and ask them what
factors influence their choice of a
bank. For example, they might
mention location, size, friendly
service, etc. Enter the 10 most fre­
quently mentioned factors in col­
umn one of the marketing matrix.
Next, ask the prospects to tell you
how important each factor is by
having them distribute 100 points
across the list of 10 critical fac­
tors. For example, if “ location” is
very important prospects give it
30 points; if “ size” is not impor­
tant it might not get any points;
and so on. Enter these ratings in
column two of the matrix.
3. Then, ask each prospect to rate
each bank on every factor by us­
ing a scale of 1 to 10, where 5
equals “ average” and 10 equals
“ superb.” Enter the score in col­
umns three, four, five and six. You
now know the importance of each
factor influencing the choice of
bank and how your bank compares
4. The final step in the process calls
for weighting the scores for your
bank by the importance of each
factor. The result is your relative
strength point-by-point, and over­
Generally speaking, a difference
(Turn to page 27, please)

-Quality Comparison
Bank B





Bank C




Bank D




Northwestern Banker, October, 1983


LEFT—Speaker Jim Layton, (center) pres., Clayton Brokerage, discusses ag trends with Bob Holt, ag. rep., First Natl. Bk., St. Joseph, and
Chuck Leffler, pres., Leffler Investment Co., Lincoln, Neb. Right—Bill Manring, v.p., First Natl. Bk., St. Joseph; Jim Reynolds, pres. & gen.
mgr., St. Joseph Stock Yards; H.H “ Beanie” Broadhead, dir., and John Karns, chmn. & c.e.o., First Stockyards Bk., St. Joseph.

27th Market Day Held in Stock Yards
ANKERS from a four-state
area attended the 27 th Annual
St. Joseph Stock Yards Market Day
held last month. Co-sponsored by
First Stock Yards Bank and First
National Bank, the event functions
to acquaint the visiting bankers
with the varied business and in­
dustry located within St. Joseph.
This year’s industry tour was of
the Stetson hat factory which is
owned by a third generation St.
Joseph manufacturer—Stevens Hat
Company. With the tour ending in
the facilities showroom outlet, the
bankers resembled a convention of
country western singers as they
boarded the bus for the return to the
stock yards. The afternoon ac­
tivities were adjourned to the St.
Joseph Country Club following cur­
rent day livestock market reports
and lunch at the Hoof and Horn
Steak House.
Featured speaker Jim Layton,
president of Clayton Brokerage
Company, was quick to establish the
tone for the agri-business related
afternoon session. He reported that


grain yields in the drought stricken
midwest will be much more severe
than earlier forecast with current
corn yields ranging from 0-105
bushels per acre. The average yield
is now expected to be near 44
bushels per acre and combined with
land idled by the Payment In Kind
program this represents a 50%
reduction in the 1983 crop year com­
pared to 1982.
And the soybean crop won’t fare
much better. Also effected by the
drought plus an onslaught of spider
mites, current estimates point to a
30-35% soybean crop loss in 1983.
The resulting low crop carry-over
combined with the increasing global­
wide food supply demand have
forecasters projecting record high
grain prices.
Due to the “ politically un­
palatable’ ’ cost of the PIK program,
Mr. Layton does not foresee any
type of a government sponsored
crop set-aside program for 1984. To
keep prices at a profitable level he
advised the bankers to encourage
sophisticated approaches to produc­

tion. He examples a 10% idle land
requirement for lower loan costs in
Following Mr. Layton’s presentation, an agri-business panel assembl­
ed to offer brief remarks pertaining
to their area of experti se and to field
questions from the bankers. The
members were: Moderator Jim
Reynolds, president and general
manager of St. Joseph Stock Yards;
Bill Ames, cattle representative,
John Clay-Heady Fannen Livestock
Company; Bob Waddell, Producers
Livestock Marketing Association,
Maurice Heitman, director, Holt
County Missouri ASCS, and Bob
Batte, manager, Bunge Corporation.
The men representing the grain industry echoed the earlier forecasts
on the disasterous yields for the
1983 crops. With the yields varying
greatly from one geographic area to
another, they cautioned that there
will be a wide disparity in farm in­
come among farmers in the midwest.
The panel members involved in
livestock production had some
rather dismal reports also. An-







(Turn to page 84, please)

PANEL discussion members during afternoon session were: Bill Ames, cattle rep., John Clay-Heady Fannen Livestock Co.; Robert Wad­
dell, Producers Livestock Marketing Association; Maurice Heitman, Holt County Missouri ASCS office, and Robert IBatte, Bunge Corp.,
Kansas City, Mo. Right—J.R. Liljedahl, pres., and John D. Lind, v.p., & cash., First Natl. Bk., Essex, la. visit with Roger Hegarty, chmn., #
First Midwest Bancorp.

Banker, October, 1983
Federal Reserve Bank of St. Louis


Meeting bankers’ needs...
(Continued from page 22)
delivery systems to get its product to its members.
Most of these fall under one of four categories: paper,
video, meeting and seminar, and organization.
Meetings and Seminars
Already described have been the primary paper de­
livery system, Competitech, and the major video one,
Banctraining video systems. Also important, however,
is the Council’s efforts with meetings and seminars.
1. First and foremost is the A B A National Assem­
bly for Community Banking, at which senior execu­
tives have the opportunity not only to hear leading
bankers, consultants and government officials but also
to debate vital topics with their peers in dozens of
workshops and roundtable discussion sessions. The
1984 A B A National Assembly for Community Bank­
ing will be held February 26-29 in Phoenix.
2. At the regional level is the new A B A Community
Bank Executive Development Program, held for the
first time in May in Williamsburg, Va. Designed by
CEOs for CEOs, the program provided attendees with
tools and knowledge to increase their bank’s produc­
tivity and profitability.
Because of rave reviews, the A B A Community Bank
Executive Program will be offered three times in 1984
— in Williamsburg in March and at two other locations
in the Midwest or West later in the year. Local state
associations are providing support.
In addition to the Assembly and Development Pro­
gram, the Council will continue to monitor community
(Continued from page 25)
in total matrix scores of less than 20
points is not significant. The greater
a bank’s quality advantage the
greater the opportunity for pricing
differentials (interest rates and ser­
vice charges) while still offering a
competitive value.
In the marketing matrix, accom­
panying this article, we see a hypo­
thetical example in which Bank A
has an overall advantage on banks C
and D, but it trails bank B by 25
points. It could improve its image
by adding automatic tellers, but
each improvement in that area is on­
ly worth 5 points and it could be
quite costly. On the other hand, if
the bank could do something to
strengthen its image as an in­
novative, friendly, community-ori­
ented bank with expertise, it would
pick up 40 points.
Let’s say the bank decides on the
latter approach and starts sending
its customers a money management
newsletter that cross-sells existing
services, features local community
events and highlights bank person­
Federal Reserve Bank of St. Louis

bankers’ needs and meet them with appropriate
schools, seminars or teleconferences.
Organizational Cooperation
The use of the fourth delivery system, organiza­
tional cooperation, began right at the time of the reor­
ganization of A B A ’s community banker activities,
when the association recognized the value of develop­
ing a closer relationship with A B A ’s State Association
Division. After all, both serve essentially the same con­
Thus, a community banker-state association alliance
was formed within ABA. This has led to a closer coor­
dination of program development and a highly efficient
delivery system. State associations may, if they desire,
co-sponsor Community Banker Council programs, like
the Community Bank Development Program described
previously. In fact, more than 40 state associations are
A B A partners for Competitech.
Still evolving is the role of Community Banker
Council state coordinators, the second organizational
delivery system. A banker in each state, the District of
Columbia and Puerto Rico has the two-way communi­
cations mission of keeping his colleagues informed of
the Council’s efforts and serving as a conduit for his
peers to transmit their needs and concerns back to
Thus, A B A ’s delivery systems are many — Compet­
itech, Banctraining, the state association alliance, the
state coordinators and meetings and seminars — but
the message is one: that A B A is dedicated to meeting
the needs of all of its members, from the largest to the

nel. Over a period of time, the bank Pelli, New Haven, Conn., as the ar­
should develop an overall image chitect for their proposed develop­
rating of 67.5 and a competitive ment of a full city block in
downtown Minneapolis. This in­
In fact, many banks are now tak­ cludes new quarters for Norwest’s
ing the newsletter approach to turn lead bank. The block is bounded by
their customers into clients, with a Sixth and Seventh Streets, Nicollet
constellation of banking services Mall and Marquette Avenue. (Sept.
which makes the account more loyal N o r th w e ste r n B a n k e r ).
and profitable. For example, Priori­
Prof. Pelli is dean of the school of
ty Publications of Minnetonka, Min­ architecture at Yale University. He
nesota, is producing a customized has designed numerous worldmoney management newsletter for renowned structures in the United
banks around the country.
States, Canada and Asia.
The matrix approach to market­
Subject to the execution and
ing simply recognizes that the delivery of definitive agreements
perceived quality of a financial ser­ and required permits relating to the
vice transcends the features and p r o p o s e d new b u ild in g , the
benefits of any one product. It in­ timetable for the project will be ap­
cludes other quality factors, such as proximately as follows:
location, hours, and personnel. The
September 1983: Design work
matrix technique provides you with begins.
a tool for determining the interplay
Late 1983: Old bank building
of all these factors in your market­ demolished.
ing approach.
Spring 1984: Rendering of new
building unveiled.
Fall 1984: Work on foundation
Norwest/Oxford Select
Cesar Pelli As Architect
Fall 1986: Retail mall opens.
Norwest Corporation and Oxford
Summer 1987: Office tower com­
Properties, Inc. have selected Cesar pleted. Tenant occupancy begins.
Northwestern Banker, October, 1983


Wisconsin Survey Studies Journalists
N IM P R O V E D fin a n c ia l
services marketplace for con­
sumers has resulted from deregula­
tion of products and services, accor­
ding to consumer journalists writing
for the nation’s daily newspapers.
Wisconsin researchers, Mary-Beth
Kuester, a consulting firm ex­
ecutive, and Professor Michael
Houston of the University of
Wisconsin-Madison, surveyed the
consumer writers in an update of a
1977 study to detect key changes in
consumer issues and attitudes in the


past six years and to examine
emerging issues and opinions that
have emerged.
The journalists were polled on
specific consumer issues, the effec­
tiveness of federal agencies, the con­
sumer movement and the consumer
information environment. The study
also looked at the prevalence of the
consumer journalist position on dai­
ly newspapers and the extent to
which these journalists considered
themselves advocates. New to the
1983 study were questions about in­


flation, unemployment, interest
rates and financial services.
The Wisconsin Bankers Associa­
tion cooperated in the research pro­
ject. W BA represents approximate­
ly 636 commercial banks in the state
and is head-quartered in Madison.
According to Bryan Koontz, ex­
ecutive director of W BA, the bank­
ing industry recognizes that under­
standing the major issues and con­
cerns confronting consumers is
essential in corporate decision mak­
In the six years since the original
study was conducted by Ms.
K u ester and oth er g ra d u a te
students in Professor Houston’s
marketing research class, financial
news has moved from business
pages to front page news.
A c c o r d in g to M r. K oon tz,
deregulation of products and ser­
vices is the biggest news for the in­
dustry in the past months. This
deregulation is viewed as a con­
sumer benefit, the study reported.
However, the changing marketplace
for financial services, both with new
products an services and new of­
ferors of those services, is confusing
to customers. Bankers will continue
to emphasize consumer education,
as well as education of employees to
better serve customers, Mr. Koontz
Copies of the report are available
from Consumer Communications
Resources, Inc., P.O. Box 232,
Madison, Wisconsin 53701.

Wisconsin Bankers Assn.
Add Educator to Staff
For over 90 years, Brandt has been
known for top quality coin and currency processing equipment. Now
we’re introducing a new line of
document shredders and balers
for added security and efficiency,
Choose from 10 models ranging
from compact units for desk-side
use, to high-volume machines ca­
pable of handling five tons of paper
per hour. For computer printouts.
Microfilm/fiche. Credit cards. You’ll
get the security you need, the
versatility you want! All models
feature easy, quiet operation.
Service is available through a net­
work of Brandt factory-trained
service specialists.

Keep your sensitive and confidential documents from falling into the
wrong hands. Call or write for
complete information on Brandt
document shredders and balers

Banker, October, 1983
Federal Reserve Bank of St. Louis

(414) 261-1780

Kim Kindschi, Madison, has joined
the staff of the Wisconsin Bankers
Association as associate director,
Bryan Koontz, W BA executive di­
rector, announced.
Mr. Kindschi, who had been a
teacher at LaFollette High School,
Madison, brings over 14 years of ex­
perience and expertise in education
and curriculum development to the
Association staff.
Mr. Koontz also announced the
promotions of Barbara Croucher
and Deanne Esser recently.
Ms. Croucher has been named
Ms. Esser, who has been on the
W BA staff for the past 15 years, has
been promoted to the new position
of office manager. She had been ad­
ministrative assistant.


Give Us a Couple of Minutes.. .We’ll
. Give You Years o f Great Service.
At G.D.vanWagenen
Company, we offer
Blanket Single
Interest insurance
and our Automated
Insurance Monitoring
System. Prompt, fair
claims handling is
our #1 priority and
has been for over
thirty years.

So talk to Don Miller or
Les Lukken about
our collateral protection
Spend a few moments
n o w . . . and relax for
years to come.

G.D. van Wagenen
524 Plymouth Building
12 South Sixth Street
Minneapolis, Minnesota 55402
In Minnesota call: 1-612-333-2261
Out-of-State: 1-800-328-2052

Les Lukken
Marketing Representative
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983


Americas high performance
bankers have made
a first year success.
One year ago, IN N E R LIN E
—the electronic management support service —
was introduced to exclusively serve
the financial community.
InnerLine, a co-venture o f Bank
Administration Institute and
American Banker, opened its
doors a year ago with a promise:
To provide financial industry
executives and professionals
with instant access to up-to-theminute rates, analyses, trends,
news and first-rate electronic
consulting— on-line advice and
counsel from the industry's top
economists, analysts, journalists
and consultants.
Today that promise has been
realized by over 1,000 banking
and financial institutions world­
wide. Thanks to your foresight
and confidence, InnerLine— a
service born o f an idea— has
grown to becom e a respected
and reliable industry partner.
Our core o f services has grown
and expanded to include more
than 40 products— each designed
and delivered in the most effi­
cient, cost-effective, convenient

manner available. For the finan­
cial services decision-maker,
the manager, the strategist and
the person accountable for
growth and profits, it's a decision
support tool o f unparalleled effi­
ciency and value.
With growth has come industry
recognition. InnerLine has won
the endorsement o f the Inde­
pendent Bankers Association o f
America and has been named
"product o f the year" by the
Associated Information Managers.

We would like to pay special
tribute to those prestigious
InnerLine associates whose
services and support have added
greatly to our success: Whittle
Raddon Motley & Hanks; Powers
Research, Inc.; Long, Inc.;
Littlewood Shane & Company,Citibank, N.A.; Manufacturers
Hanover Trust Company,Disclosure, Inc.,- Ernst &
Whinney,- Arthur Young,Independent Bankers Assn, o f
Georgia,- Illinois Bankers Assn.
We invite you to join a rapidly
growing roster o f America's
high performance bankers by
becoming an InnerLine sub­
scriber. Find out how you can
gain instant access to over 40
services designed exclusively
for you. Call toll-free:
1-800/323-1321. (In Illinois
call 1-800/942-8861.) O r write
InnerLine, 60 Gould Center,
Rolling Meadows, Illinois 60008.


Banker, October, 1983
Federal Reserve Bank of St. Louis

at the IB A annual meeting, which
will be held in conjunction with the
Bank Management Conference,
scheduled for November 16-17 at the
Holiday Inn O ’Hare Kennedy.


Officer Appointments Told
D.R. Lovett, chmn. & pres., Dixon
W. J. Hooter, exec. v . p . , Chicago

At The Bank & Trust Company of
Arlington Heights, Bette B. Perna
has joined as senior vice president
and cashier, community banking
department. Mrs. Perna previously
was associated with American Na­
tional Bank & Trust Company of
Chicago as vice president.
Capitol Bank & Trust Co. of Spr­
Cynthia B. Hagedorn has been ap­
pointed assistant vice president and
Region V
personnel director. She brings 17
Large: Thomas Andes, First Na­ years of banking experience to her
tional Bank of Belleville, and George new position.
M. Ryrie, First National Bank &
Mary Kay Phillips has been nam­
Trust Co., Alton.
ed personal banking officer and
Small: Walter E. Moehle, Old E x­ Terry B. Bischoff, instalment loan
change Bank, Okaw ville, and officer. Mr. Phillips will also serve as
Harlan Yates, Cisne State Bank.
manager of the main office’s per­
Undesignated: Gerald K. Feezor, sonal banking department. Mr.
Peoples Bank of Marion.
Bischoff has had 15 years of
Large Bank Category
previous experience.
Jay K. Buck, The Northern Trust
Also at the bank, Robert T. Lin­
Co., Chicago; Willard Bunn III, coln, vice president, has assumed
Springfield Marine Bank; Martin responsibilities as department head
Farmer, The First National Bank of in the commercial banking area. He
Chicago; William D. Plechaty, Con­ joined the bank in 1976.
tinental Illinois National Bank &
Trust Co. of Chicago, and David L.
Webber, Harris Trust & Savings Skokie Promotions Told
Bank, Chicago.
Skokie Trust & Savings Bank has
Election ballots will be mailed to announced the promotions of Phyllis
members on October 17 and will be Cramer and Jo Ann Arnswald to
due back in the IBA Chicago office assistant cashier and Marlene Cohen
by November 7.
to internal auditor.
Election results will be announced
Mrs. Cramer, formerly operations

Candidates Slated for 1984 IBA Board
HE SIX Illinois Bankers Associ­
ation committees on nomina­
tions, one for each region and one for
the large bank category, have sub­
mitted the following slate of can­
didates for the IB A board of direc­
tors for 1984:
Region I
Large: David E. Albertson, State
National Bank, Evanston, and Ken­
neth A. Skopec, The Mid-City Na­
tional Bank of Chicago.
Small: Herbert A. Dolowy, Lin­
coln National Bank, Chicago, and
James B. Lund, Matteson-Richton
Undesignated: Charles E. Water­
man, South Holland Trust & Sav­
ings Bank.
Region II
Large: John A. Andersen, The
First National Bank of Lake Forest,
and Kevin T. Reardon, First Na­
tional Bank of Joliet.
Small: William C. Gooch, Jr.,
York State Bank & Trust Co.,
Elmhurst, and Alan M. Meyer, First
National Bank of Deerfield.
Undesignated: Thomas F. Bolger,
McHenry State Bank.
Region III
Large: Donald R. Lovett, Dixon
National Bank, and Charles C.
Wilson, First National Bank of The
Quad Cities, Rock Island.
Small: James A. Forster, The
DeKalb Bank, and T.R. McDowell,
First National Bank of Westville.
Undesignated: Howard E. Bell,
First National Bank & Trust Co. of
Region IV
Large: James C. Coultas, Elliott
State Bank, Jacksonville, and John
W. Luttrell, First National Bank of
Small: Sam Scott, Scott State
Bank, Bethany, and James L. Winningham, State Bank of Arthur.
Undesignated: Warren Martin,

Federal Reserve Bank of St. Louis

Bank of Northfield Opens Facility

PICTURED above is C. Andrew Lawrence, president, Bank of Northfield, at the ribbon
cutting for the bank’s new Willow Hill Facility. The new office is located in the Willow
Hill Executive Center at 550 Frontage Road in Northfield. Also pictured in the
foreground is Karen Holway, manager of the new facility.

Northwestern Banker, October, 1983


Illinois News

officer, has been with Skokie Trust
since 1977.
Ms. Arnswald joined the bank in
1976 and has served in a variety of
administrative and operational posi­
tions during that time.
Ms. Cohen joined in 1974 and has
also served in several administrative
and operation positions including,
most recently, assistant cashier.


Lombard Election Told
Josephine May has been elected
senior vice president of the Bank of
Yorktown, Lom­
She joined the
bank in 1971 as
vice president
and cashier and
has held posi­
tions at Security
National Bank,
Visalia, Califor­
nia; the Bank of
Clarendon Hills
and Pullman Bank, Chicago. Ms.
May holds a BA degree in business
management from George Williams
College in Downers Grove.

Merger Agreement Announced
First Freeport Corporation and
First City Bancshares, Inc., bank
holding company owning City Bank
and Trust Company in Dixon, have
agreed in principal to a merger tran­
saction involving total considera­
tion of approximately $3.5 million in
common stock, convertible deben­
tures and cash.
The transaction is subject to
regulatory approval and is expected
to be completed in the second or
third quarter of 1984.

IBA Appoints Two
At its most recent meeting, the Il­
linois Bankers Association board of
directors appointed Thomas J. Dammrich senior vice president and Jack
Seymour vice president. These ap­
pointments were made upon the
recommendation and with the con­
currence of executive vice president
William J. Hocter.
Mr. Dammrich’s new title will
carry with it the overall managerial
responsibility for all of the non­
legislative functions and programs
of the Association. In this capacity,
he will function as Mr. Hocter’s
principal assistant.
Mr. Dammrich received a BA in
economics and an M BA with con
Banker, October, 1983
Federal Reserve Bank of St. Louis

centration in finance from DePaul
University of Chicago. He joined the
IBA as director of education in
February of 1978 and was promoted
to vice president in July of 1980.
Jack S eym our w ill assum e
responsibility for researching and
developing broad policy issues in all
areas in which the association is in­
volved. He will also be monitoring
the legal affairs of the IBA, par­
ticularly as they relate to involve­
ment with external legal con­
Mr. Seymour attended Illinois
Wesleyan University and Sangamon
State University and holds a BA
degree in political science. Prior to
joining the IBA in January of 1982,
Mr. Seymour served as Director of
the Department of Financial In­
stitutions of the State of Illinois.

Burton J. Field was recently
named president of Manufacturers
B an k and a
director of its
p a re n t
C om ­
pany, Manufac­
turers National
Corporation. He
replaces Fred O.
Sack, 70, who is
retiring as presi­
dent but remain­
ing as a director.
M r.
F ie ld
joined the bank in 1970 and has
served for the past five years as ex­
ecutive vice president in charge of
commercial loans and lease financ­
ing. Previously he was a lending of­
ficer at LaSalle National Bank.
Mr. Sack, a retired senior vice
president of the Harrris Bank, was
named president and a director of
Manufacturers in 1978. His banking
experience spans 50 years
* * *
Scott Heitmann has been named
president and chief executive officer
of W.N. Lane
In terfin a n cia l,
known as the
L ane
b a n k s.
Previously Mr.
Heitmann had
served as ex­
e c u t iv e
v ic e
p resid en t and
chief operating
officer of North­
west National Bank of Chicago, the
largest of the four Lane banks.
Mr. Heitmann succeeds Rausey
W. Mason, Jr., who has been elected
executive vice president and chief
operating officer of Fortune Federal
Savings & Loan Association, Clear­
water, Fla.



The Cole-Taylor Financial Group
has signed a contract with Ford City
Corporation to acquire 92.3 percent
ownership of the Ford City Bank
and Trust Co., with assets of more
than $200 million, according to a
Shirley A. Buckner has been joint announcement by Sidney J.
elected personal banking officer at Taylor, chairman of Cole-Taylor,
Drovers Bank of Chicago, according and Bradley M. Stevens, president
and chief executive officer of the
to James J. Carmody, president.
Ms. Buckner, who attended bank.
This acquisition would add a fifth
DePaul University, joined Drovers
Bank in 1979 after several years at member bank to Cole-Taylor Finan­
Central National Bank in the per­ cial Group, pending regulatory ap­
sonal banking department.


Robb B. Kelley
Chairman, Employers Mutual Companies

is our business.
And we
intend to stay


That’s our commitment to businesses throughout the
midwest; a commitment we began in 1911 when the ^
first workers’ compensation law was passed in Iowa
Today, in addition to workers’ compensation,
Em ployers Mutual Companies offers a full
range of insurance services tailored to your in­
dividual business needs.
Our slogan says it best— We’ve Got What It
W e’ve got the products. From general to
specific coverages, including commercial auto,



workers’ compensation, all forms of property and
liability coverage and special package policies.
We’ve got the service, too. Personalized local
service through our branch and service offices
throughout the midwest, and the professional
independent agents who represent us in your
Simply stated, w e’ve got the commitment
to the business of business insurance-, a comiillfj m itm ent that has helped us to grow, and
will help your business grow.

Em ployers M utual Com panies
Des Moines, Iowa
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983

Start offering bigger services.
By adding our leasing and asset-based
financing programs to your current financing
plans you can give your customers the equip­
ment or operating capital they need to prosper.
In addition to helping your customers with
these progressive financing services, you open
up highly profitable avenues for investment.
Leasing, for example, is often one of the most
profitable investments in a bank’s portfolio.
And includes substantial tax benefits.
By participating in our asset-based lending
programs, you gain a healthy return and add an
important service that provides your clients
with additional working capital.
So when conventional financing won’t
meet your customer’s demands, contact any
one of our representatives listed.

We’ll work with you to give your customers
the flexible financing they need. And you’ll
discover that it’s not the size of your services
that counts, it’s the size of those standing
behind you.
For full details on Norwest Business Credit call:
Bob Olson in Minneapolis (612) 372-7988,
Don Park in Denver (303) 298-0515,
Gary Hermann in Des Moines (515) 245-8406,
or Barry Krause in Dallas (214) 2394555.
For information on Norwest Leasing contact:
John MacLeod in Minneapolis (612) 372-7416,
Bennie Gates in Omaha (402) 536-2310,
John Bailey in Des Moines (515) 245-3392,
Chris Hoss in Fargo (701) 293-4273,
or Steven Cozzens in Billings (406) 657-3581.

Norwest Business Credit, Inc.
Norwest Leasing, Inc.

H k H


m m m am
Federal Reserve Bank of St. Louis


H.A. Lund, pres., Albert Lea
T.L. Jeffers, exec, v.p., Minneapolis

Officers Recommended for MBA Posts
Association nominating commit­
tee met recently and recommended
Galen T. Pate, Clinton D. Kurtz,
Roy W. Terwilliger and R. Scott
Jones for endorsement for the top
||) elected officers in the association for
1984-1985, according to William C.
Rosacker, F&M Marquette National
Bank, Minneapolis, and chairman of
the 1983 nominating committee.
Recommendations were to be
acted upon at each of the nine M BA
district meetings held in September.
Galen T. Pate, president, Signal
Hills State Bank, West St. Paul, is
|| the proposed candidate for M BA
president for 1984-1985, to succeed
Herbert A. Lund, president, Securi­
ty State Bank, Albert Lea. Mr. Pate
is currently serving as first vice
III president of the association.
Clinton D. Kurtz, president,







Redwood Falls Bank
Elects New President
Thomas A. Hollatz has been
elected president and a director of
th e
F a rm e rs
State Bank of
Redwood Falls,
succeeding Carl
L. Lokker, Jr.
who has resign­
ed to enter private business.
Mr. H ollatz
stepped into his
new p o s it io n
S ep tem ber 12
following seven years at the First
State Bank of Webster City, Iowa,
where he served as cashier and a
director. Prior to joining the First
State Bank, Mr. Hollatz was
employed at the Merchants Na­
tional Bank in Winona.
Mr. Lokker had served as the
bank’s president for the past ten
years. He will remain as an officer at
the bank for a period of time while
Federal Reserve Bank of St. Louis

Citizens State Bank, Norwood, is
proposed for M BA first vice presi­
dent for 1984-1985, to succeed Mr.
Roy W. Terwilliger, president,
Suburban National Bank, Eden
P rairie, is the recom m en ded
1984-1985 candidate for second vice
R. S co tt J on es, p resid en t,
Goodhue County National Bank,
Red Wing, is the recommended
1984-1985 candidate for treasurer,
to succeed James R. Jorstad, presi­
dent, Citizens State Bank, Hayfield.
The nominating committee in­
cludes the nine M B A district
presidents. The recommendations
were to be presented at the M BA
district meetings and elections will
take place at the June, 1984, Min­
nesota Bankers Association Annual
Convention to he held in St. Paul.
preparing to establish his business
in the Redwood Falls area.
Farmers State Bank relocated its
main office from Morton to Red­
wood Falls August 8 of this year and
continues to operate its Morton of­
fice as a full-service banking facility.

Ellsworth State Observes 90
The Ellsworth State Bank ob­
serv ed its 9 0th a n n iv ersa ry
September 16 with a luncheon and a
drawing for prizes during an “ Ap­
preciation D ay’ ’ held for customers
and friends.
The bank began operations in
1893 and has served the Ellsworth
community continously since that

Rochester Promotions Told
Edgar M. Morsman, Jr., presi­
dent of Norwest Bank Rochester,
recently announced the promotion
of four officers and the election of
one new officer.
David G. Wittenberg has been

promoted to vice president and
manager of the commercial real
estate loan department. Mr. Wit­
tenberg has been with Norwest Cor­
poration since 1971 and joined
Norwest Bank Rochester in 1978.
Since December, 1980, Mr. Wit­
tenberg has served the bank as
assistant vice president/commercial
lending officer.
Robert Clowes, assistant vice
president-agricultural lending of­
ficer, has been promoted to vice
president-agricultural lending of­
ficer. Mr. Clowes joined the bank in
John Novotny has been promoted
to assistant vice president and com­
mercial lending officer. Mr. Novotny
join ed the bank in 1982 as
commercial-agricultural lending of­
Conrad Schneider, credit analyst,
has been promoted to credit depart­
ment manager. Mr. Schneider joined
the bank in 1981 and before that had
worked as a national bank examiner.
Therese Satern was elected credit
review officer. Ms. Satern started
with the bank in 1977 as a parttime

Montevideo V.P. Named
Jim Bakken has joined First Na­
tional Bank in Montevideo as a vice
Mr. Bakken
has extensive ex­
perience in agri­
cultural lending,
having served as
th e
C anby
branch manager,
Credit Associa­
tion of Madison;
a credit specialJ- BAKKEN
ist with Federal Intermediate Credit
Bank in St. Paul, and as a loan of­
ficer at the PCA office in Morris.

First State-Chartered
Savings Association Opens
C om m issioner o f Com m erce
Michael A. Hatch announced last
month the opening of Minnesota
Valley Savings and Loan Associa­
tion, Mankato, the first statechartered capital stock savings
association to operate in Minnesota.
The new association will be located
at 915 South Front Street, Mankato.
Robert L. Dammen, incorporator
of the association from Mankato,
will serve as president and chief
operating officer.
Northwestern Banker, October, 1983

Upper Midwestern banks get the
total support they need with the
comprehensive correspondent services
offered by First Bank Saint Paul

The services we provide to
correspondent banks take many forms
to help you stay in top form.
Improving productivity and increasing profits.
That's the bottom line of any correspondent banking
Unfortunately, all too often, correspondents
get only a partial commitment from their
correspondent bank in regard to available services
and personal attention.
At First Bank Saint Paul, we provide a full array
of services, including:
Check Clearing Using the latest technology
helps us to process more items, reduce your float,
and speed up funds availability to optimize your
investment potential.
Bank Stock Financing We not only provide the
funds you need, but also the technical experience of
trained correspondent bankers.
Loan Participation Overline loan participation
reguires a fast response and strong capital backing.
You'll find them both at First Bank Saint Paul.
Data Processing Up-to-the-minute data

processing eguipment allows us to apply current
computer technology to help increase correspondent
productivity and profits.
Investment Services We provide a full range of
investment options, such as government and agency
securities, municipal bonds and money market
Our correspondents know that our size affords
them the financial resources they need; our flexibility
assures them that we can adapt our services to their
specific needs; and our professionals— from
correspondent bankers to support staff— are always
responsive and concerned about providing the best
service available.
Maybe this is the kind of performance you've
been looking for from your correspondent bank.
If you're not getting it, give us a call at (612)
291-5585. Like we said, "the services we provide to
correspondent banks take many forms— to help you
stay in top form."

First Bank Saint Paul

Banker, October, 1983
Federal Reserve Bank of St. Louis

Member First Bank System

Correspondent Banking Division
332 Minnesota Street
Saint Paul, Minnesota 55101
Federal Reserve Bank of St. Louis


Twin Cities

First Bank System, Inc. has
elected Joel A. Bleeke executive vice
president of cor­
porate develop­
ment and plann­
ing and Susan
M. Lund vice
p r e s id e n t
M r. B le e k e
previously was
associated with
the Chicago of­
fice of McKinsey
& Com pany, an international
management consulting firm head­
quarter in New York. While there he
served as senior engagem ent
manager in the financial services
Ms. Lund succeeds Lyle C. Sorum
who was elected president of First
Bank Grand Forks, N.D. She
previously was manager of business
and medical courseware in the
courseware operations division at
Control Data Corporation.



Michael Pint, senior vice presi­
dent and chief financial officer at the
Federal Reserve
Bank, has left
that position to
become chief ex­
ecutive officer of
Corporate Bank
Services of St.
Mr. Pint serv­
ed as M inne­
sota’ s banking
commissioner from 1979-83, then re­
joined the Federal Reserve when his
term of office was up.
Corporate Bank Services provides
management and advisory services
to seven banks an several financerelated companies, insurance agen­
cies and real estate and property
management concerns, all of which

Banker, October, 1983
Federal Reserve Bank of St. Louis

are owned by St. Paul businessman
Robert Keyes. Mr. Keyes owns
banks in Minnesota, Wisconsin, Col­
orado and New Mexico.


Bank of Minneapolis, which she
joined in 1970 as assistant to




Sandra M. Pesheck has been
elected assistant operations mana­
ger of First Bank Security, St. Paul.
Ms. Pesheck previously has
served at First Bank Duluth and
First Bank Edina, where she has
been in the operations department
since 1981.
* * *
William J. Engels has been named
president of the Metropolitan Bank
Group Inc., an
a ssocia tion of
five community
banks in the
Twin Cities area.
M r.
E n g e ls
sive banking ex­
perience to his
new position. He
has served as
president of Met­
ropolitan Bank of Minneapolis since
* * *
Ruth A. Reister has been elected
president of FBS Agricultural
Credit Corpora­
tion, the agricul­
tu ra l fin a n ce
s u b s id ia r y o f
F ir s t
B an k
System, Inc.
M s. R eister
has most recent­
ly been associat­
ed with the U.S.
Department of
where she served as deputy
undersecretary for small community
and rural development. Prior to that
she was with the Federal Reserve

First Bank Minneapolis recently
announced the addition of four new
L. Lindsay Mann has joined as
assistant vice president in the cor­
porate C division. Ms. Mann had
been with Mark Twain Bancshares,
Inc., Kansas City, Mo., for two
years, most recently as vice presi­





New officers include: Kimberly B.
Montgomery, credit officer in the
commercial banking training division; Sharon F. Rhode, retail
m a r k e tin g
o f f ic e r
retail/metropolitan banking group,
and Gary L. McDowell, professional
banking officer in the professional
banking I division.
* * *
Minnie B. Schroeder has joined
the security dealer department of




Minnesota News

F&M Marquette National Bank as
assistant vice president.
Before joining F&M Marquette,
Ms. Schroeder was associated with
First Bank Minneapolis where she
was assistant vice president,
regional bond sales.
* * *

and Kenneth R. Rossow, investment
services; Richard K. Flesvig and
Thomas L. Mork, correspondent
banking; Alan J. Holz and Ronald S.
Tollefson, personnel and Ronald R.
Stroschein and James K. Thomas,
* * *

First Bank Saint Paul recently an­
nounced the election of Joseph O.
Weissenbom to senior vice presi­
dent-controller and member of the
management committee and Ter­
rence J. Quinn to senior vice presi­
dent and head of group I-commercial

First Bank Southdale recently
held an open house in honor of Jan
Anderson, personal banking officer,
who retired recently after 24 years.
Ms. Anderson joined the bank in
1959 as a bookkeeper and most
recently served in the retail division.
* * *



Mr. Weissenbom, who had been
vice president-controller, previously
was responsible for the general ac­
counting section of the controller’s
office of Seattle - First National
Bank. He is a CPA and holds a BS
degree from the University of Min­
Mr. Quinn served in various
capacities at First Bank Saint Paul
from 1974-78. He returned to the
bank last year as a vice president
after having been associated with
Eastern Heights State Bank and
3M. He holds BA and M BA degrees
from the University of Minnesota.
First Bank Saint Paul also an­
nounced the promotion to vice presi­
dent of Marcia S. Hanson, manager
Shoreview facility; Richard E.
Lloyd, commercial banking; Bruce
A. Soma, consumer/corporate ser­
vices, and Leo L. Stadnik, opera­
tions. In addition, Filmore G. Enger,
vice president, was named to head
division B, commercial banking, and
William R. Easton to vice president
and head of international banking.
Promoted to assistant vice presi­
dent were: Laird Anderson, Jr.,
Augustine P. Briguet, James N.
Schimelpfenig and James D. Wannigman, consumer banking; Sophie
H. Bell, Jeffy A. Sherman, Jerome
A. Tabolich and Michael E. Traeger,
commercial banking; Robert T.
Charpentier, audit; Richard A. Diehl
Federal Reserve Bank of St. Louis

David W. Gustafson has been
elected executive vice president and
a d ire cto r o f
West St. Paul
State Bank.
Mr. G u staf­
son previously
spent two years
at the U nion
State Bank as
senior lending
officer and six
y ea rs at the
First National
Bank of Waconia as vice president
and cashier.

New Name: “ MetroBanks”


First American ■ Brainerd
Offers Low Cost Home Loans
First American Bank of Brainerd
secured 46% of the Minnesota Hous­
in g F in a n ce A g e n c y m o n e y
available in Region Five for home
buyers of the Brainerd community.
Of the $937,500.00 available dur­
ing the recent low cost loan program
in the five county region (Crow
W ing, Cass, T odd, M orrison,
Wadena), First American obtained
$431,250.00 for 15 home buyers.
“ The funds for Region Five were
pooled, and were reserved for first
time home buyers on a first-comefirst-served basis,” stated Warren
Williams, First American president.
“ In other words, the sooner the
customer could fill out the applica­
tion, the sooner we could reserve
funds, hence the more loans we
could obtain for our area.”
To be eligible for the 1014%,
30-year, fixed rate loans applicants
had to be first time home buyers,
have a reasonable credit worthiness
and have an adjusted household in­
come of less than $22,000 if purchas­
ing an existing home, or $27,000 if
purchasing a new home. The max­
imum purchase price for an existing
home was $50,000 and $63,000 for
new construction.
Special features of the program
even allowed the applicants to ob­
tain money for the down payment
and a monthly payment assistance
program was available to help lower
the monthly payments in the early
years of the loan.

MBA Commercial Lending
School Elects Officers

TWIN Cities’ Metropolitan Banks has
shortened its name to “ MetroBanks” and
selected the MetroBank robot as a
representative of its new slogan: “ A little
ahead of our time.” Shown above are the
MetroBank robot and Metrobank senior of­
ficers (I to r): Richard Conlin, pres.,
Plymouth; John A. Price, Sr., pres., Bloom­
ington; William Engels, pres., Metropolitan
Bank Group; Jerry Hentges, exec, v.p.,
Bloomington; Michael Morrison, pres., St.
Paul, and Rollie Holt, exec, v.p., Min­

During the August 7-12 session of
the Minnesota Bankers Association
Commercial Lending School, the
following students were elected as
class officers:
President—Clark Connell, The
Minnetonka Bank, Excelsior;
Vice President—Mark Winter,
First National Bank of the Lakes,
Navarre, and
Secretary-Treasurer—Todd A n­
derson, National City Bank, Min­
The class officers will represent
the class of 78 students in atten­
dance for the first year session of the
school. The students will return
August, 1984, to complete their se­
cond year of the two week, two year
course of study on commercial len­
Northwestern Banker, October, 1983

Federal Reserve Bank of St. Louis


When Dick Holmes
isn’t on the road calling on bankers,
he’s on the phone talking to them.
Whether he’s on the road or in the office, Dick
Holmes keeps in close contact with his respondent
bankers. Dick knows that responding quickly to a
question or problem is his most important responsibility;
one he takes very seriously. That’s w hy he travels so often
. . . uses the phone so m uch. . . and gets back to his
bankers so fast.


Correspondent services you’d expect from a
bank our size.
When you work with Dick Holmes, you not only
benefit from his thirteen years of experience, you also
gain access to a wide range of Correspondent Banking
services. Check clearings, collections, wire transfers, Fed
Funds, investment services, bond portfolio analysis, ag
and commercial overlines, bank stock loans, leasing, lock
box service, and CashLine for efficient, up-to-the-minute
cash management are examples of the many services
Dick can offer you.



See how responsive we are. Call us today.

If you think it’s time your Correspondent Banker
paid a little more attention to you, call Dick Holmes or
any of our experienced bankers at F&M Marquette’s
Correspondent Banking Department. At F&M Marquette,
we stay on top of your needs by staying in touch with you.

A F&M Marquette National Bank
6th & Marquette

Dick Holmes


Bill Klein

Federal Reserve Bank of St. Louis

Bill Addington




Sandy Sickles

Joan McCarthy

Mark Schabert




Phil Gallivan,
Vice President

Northwestern Banker, October, 1983


Minnesota News

MBA Committee Chairmen Named
ERBERT Lund, president of
th e M in n e s o ta B a n k ers
Association, has named the follow­
ing 1983-84 M B A com m ittee
chairmen for the following commit­
Agricultural and Rural Develop­
ment Committee —C h a irm a n
-Phillip Lee, Valley National Bank,
Le Sueur, and Vice Chairman - Gary
Knutson, American Bank & Trust
Co., Moorhead.
Bank Management CommitteeChairman - Newton Fuller, First
Bank Burnsville; M anagem ent
Education Subcommittee Chairman
- Ernest Pierson, Norwest Bank
Midland, Minneapolis, and Person­
nel S u b c o m m itte e C hairm an
-Joseph Finley, Janesville State
Communications Committee—
Chairman - Roy Terwilliger, Subur­
ban National Bank, Eden Prairie,
and Vice Chairman - David Shumway, First National Bank, Northfield.
Education Policy & Development
Committee—Chairman - Rodger
Bense, State Bank of Long Lake,
and Vice Chairman - Robert Ander­
son, First Bank Minneapolis.
Group Insurance Committee—


Appointed to Board
Maurice R. Asselin has been ap­
pointed to the board of Norwest
Bank Sauk Rapids.
Mr. Asselin most recently served
as general paper mill superintendent
for St. Regis Paper Company in
Bucksport. He joined the Sartell
group in 1980 as resident manager.

Chairman - Don Welander, First
State Bank, Wykoff, and Vice Chair­
man - D on a von Fisher, The
Roseville Bank.
Investments & Funds Manage­
ment Committee—Chairman - Nor­
man Sampson, Norwest Bank Red
Wing, N.A., and Vice Chairman
-William Landford, American Na­
tional Bank & Trust Co., St. Paul.
Legislative Committee— Chair­
man - Leslie Peterson, Farmers
State Bank, Trimont, and Vice
Chairman - A.D. Didier, First
American National Bank, St. Cloud.
Lending Committee—Chairman
-William Bohnhoff, Golden Valley
Bank, and Vice Chairman - Michael
Duepner, First National Bank, In­
ternational Falls.
Operations Committee—Chair­
man - Michael Halvorson, First Na­
tional Bank, Waseca, and Vice
Chairman - Richard Franzmeier,
First Bank St. Paul.
Pension Committee—Chairman
-D.L. Stalboerger, Melrose State
Bank, and Vice Chairman - William
Endres, Pope County State Bank,
Security Committee—Chairman
-Charles Nuernberg, State Bank of
Young America.

Winner Named in Bremer
Name Change Promotion

Bank Sale Announced
J. Robert Stassen, president of
West St. Paul State Bank, has an­
nounced that controlling interest in
the bank has been sold to Anchor
Bancorp, Inc. of Wayzata. Anchor
Bancorp, Inc. also has a controlling
interest in the First National Bank
of Wayzata, and is affiliated with
the First National Bank of Glencoe
and the Exchange Bank of St. Paul.
No policy changes are expected as a
result of the sale
A t the bank’s most recent board
meeting, Lowell Wakefield was
elected chairman; David W. Gustaf­
son, executive vice president and a
director, and Winton Jones, vice
president and a director.
Banker, October, 1983
Federal Reserve Bank of St. Louis

Five Elected in Hopkins
First Bank Hopkins has announc­
ed the following officer elections:
Karen Guenther,
retail banking;
Dianne Hoover,
rea l
e s ta te ;
R ic h a r d
Huckle, Jr., com­
mercial banking;
M ary K irsch ,
sales fin an ce,
P aul
T esa rek , p e r ­
sonal banking.





Ms. Guenther joined the bank in
1976 in the safe deposit department.
Ms. Hoover joined in 1978 and has
been with First Bank System since 4)
1974. Mr. Huckle, who had been ser­
ving as personal banking officer,
joined in 1980. With the bank since
1969, Ms. Kirsch has served as ad­
ministrative assistant and clerical O
supervisor. Mr. Tesarek joined in
1981 and had been an instalment
loan adjustor.

RMA Forms Southeastern
Minnesota Group
Robert Reardon, pres., Bremer Finan­
cial Corp., draws a winning name in
the grand prize drawing of the First
Amer. Bank puzzle contest. The con­
test was part of the promotion an­
nouncing the corporate name change
of Bremer Financial Corp. and its 29
First Amer. Banks. The contest was
held at each bank during the week of
Aug. 15-19, and attracted over 37,000
players. Winners in the grand prize
drawing are: Wilbur Brandon of Glen­
wood, Hawaiian cruise for two;
LeRoy Fisk of Frederic, 1983 Ford
Tempo, and A.I. Besserud of Minot,
25” color television.



A Southeastern Minnesota Group
of The Robert Morris Associates has
been formed to serve Rochester and
environs. It will operate under the •
Minnesota Chapter.
Officers for the new group are:
Chairman Charles E. Glarner, senior
vice president, Norwest BankRochester; Vice Chairman August ^
A. Williams, vice president, First
National Bank, and SecretaryTreasurer W.J. Nigbur vice presi­
dent, Marquette Bank & Trust Co.,
all of Rochester.


We’ve Changed
Our Name.

Bremer Financial Corporation
Our previous name —the Otto
Bremer C om pany—suited us
perfectly for more than 40 years.
But today it no longer accurately
reflects what we do. That’s why
we changed our name.
Now we are BREMER
name which better describes our
activities in banking and
agricultural credit.


Even our new name doesn’t tell
you that w e’re one of the largest
bankholding companies in the
Upper Midwest, or that 29 First
American Banks in Minnesota,
North Dakota and Wisconsin
belong to our system, or that our
assets exceed $1.3 billion.
But well tell you more about that
another time.

Bremer Financial Corporation
Suite 700
55 East Fifth Street
St. Paul, MN 55101
(612) 227-7621
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis


Minnesota News

Highlights of 1983 Midwest Banking Institute

AT the 1983 Midwest Banking Institute, students worked in groups on the Bank Management Simulation Game (left); take a break between
classes (center), and check their progress charts in the Bank Management Simulation Game (right).

ACH YEAR, nearly 200 bank­
ers from Minnesota, Montana,
North Dakota, South Dakota and
Wisconsin exchange their business
suits for more casual attire, their
briefcases for books, and head back
to the classroom for one week.
The quiet, relaxed campus of the
University of Minnesota, Morris,
sets the stage for the annual
Midwest Banking Institute.
The Institute is a program for
m anagem ent level agricultural
bankers sponsored by the Banker’s
Associations of Minnesota, Mon­
tana, North Dakota, South Dakota
and Wisconsin. This year’s program
ran from July 24-29, and includes 99
first-year students and 88 secondyear students.
This year’s Institute offered some
20 course offerings during the fiveday program for first and secondyear students. The offerings ranged
from hands-on learning experiences
to in-depth study of agricultural
policy and technology.
The first day opened with com­
ments by Mark Olson, president,
Security State Bank, Fergus Falls,
and chairman of the A B A Govern­
ment Relations Council. He ad­
dressed students on “ Banking Leg­
Issues,’ ’ and pointed to
several different areas of concern to
the agricultural bankers.
In keeping with the experts, Dr.
Otto C. Doering, III, from the
D e p a rtm e n t o f A g r ic u ltu r a l
Economics at Purdue University,
spoke on Agricultural Policy and
Issues.” A second general session on
Monday provided students a chance
to hear Michael Boehlje, Iowa State
University Economics Professor. He
gave students the opportunity to
discover the “ new rules of the
game” in which agricultural bankers


Banker, October, 1983
Federal Reserve Bank of St. Louis

Monday afternoon, the sessions
broke into first and second year cur­
riculum a ctivities. F irst year
students met with Mr. Boehlje and
second year students, under the
guidance of John E. Moye, an at­
torney with the Head, Moye, Giles
and O’Keefe law firm in Denver,
Colo., were advised on “ Loan
Documentation and Analysis of Ar­
ticle Nine of the Uniform Commer­
cial Code.”
First year curriculum included a
second afternoon discussion on
“ Risk Rating Systems.” James E.
Hausauer, vice president, First
American Bank and Trust Com­
pany, Marshall, addressed the
students on how management of the
agricultural loan portfolio can be im­
proved by using systems of checks
and balances.
First year students completed the
day with the “ Analyzing and Finan­
cing Crop Enterprises” session in­
structed by Curtis Nelson, presi­
dent, Blue Earth State Bank, and
Paul Hasbargen, professor and ex­
tension economist in farm manage­
ment at the University of Min­
nesota. Second year students had a
new twist put into their curriculum
when they were introduced to the
Bank M anagem ent Sim ulation
Game. Students are divided into 18
teams who must make management
decisions within the hypothetical
bank and its market. The bankers
must set objectives and formulate
strategies for their bank to be able
to function competitively against
two other banks. Each bank’s pro­
gress is charted and posted so that
each student can see how their bank
is functioning against its com­
petitors in the areas of total assets,
demand deposits, time deposits,
loans, net income and cash position.
During the course of the week,

students ran the simulation for a
hypothetical two-year period. In­
structors for the simulation game
were Dale H. Mehrkens, vice presi­
dent, Goodhue County National
Bank, Red Wing; Robert Craven,
assistant extension economist in
farm management, University of
Minnesota, and Roger Bense, presi­
dent, State Bank of Long Lake.
Second year students attended
sessions on “ Estate Planning and
Farm Business Arrangements,” in­
structed by Michael Boehlje, and
Gerald Campbell’s, extension and
agricultural economist, University
of Wisconsin, session on Future’s
T rading and Crop M arketing
Groups of first year students
focused their attention on credit
analysis case studies for several
days while second year students at­
tended an all-day session on
“ Building Economic Activities in
the Rural Community.” They also
heard Leslie W. Peterson, president,
Farmer’s State Bank in Trimont,
speak on “ Sources of Funds.”
Other talks included “ Marketing
of Bank services” by Ann White,
A n n W h ite A s s o c ia t e s , L in ­
colnshire, 111.; “ Microcomputer Ap­
plications to Agricultural Banking”
by D avid W aldren, Financial
Design, Kearney, Neb.; “ Banking in
a Deregulated Environment” by
Ms. White, Mr. Peterson, and Charles
Bruning, president of Edgewood
Bank in Countryside, 111., and “ Sur­
vival in the Workplace” by Gary
Donovan, director of career planning
and placement services at the
University of Minnesota, Morris.
Mr. Bruning gave the closing ad­
dress to all students on “ Meeting
the Challenges of Banking... Today
and Beyond.”

Dakota State College with majors in
agri-business and animal science.

Sioux Falls Election Told

Convention Preview


The North and South Dakota
Banking Associations have released
a preview program for “ Banking’s
100 ... The Dakota Bankers Centen­
nial Convention,’ ’ to be held July
5-7, 1984, at The Broadmoor, Col­
orado Springs, Colo.
Keynote speakers secured for the
convention include Frank Cappiello,
one of the nation’s leading financial
analysts, and Malcolm Forbes, Jr.,
president and chief executive officer
of Forbes, Inc. and senior editor of

“ Forbes.”
F eatured enterta in m en t for
Saturday night, July 7, will be
Roger Williams, nationally-known

Named in Salem
Gary Williams has been named
assistant vice president of the Mc­
Cook County National Bank at
Mr. Williams served ten years
with the PCA office, six of them in
Salem. He is a graduate of South

North Dakota

D. Petersen, pres., New Town
H.J. Argue, exec, dir., Bismarck

NDBA O fficer Nominees Are Selected
A M E S o f persons recom ­
mended by the nominating
committee for election as officers of
the North Dakota Bankers Associa­
tion for 1984-85 were revealed by the
NDBA nominating committee Sep­
tember 21.
Bob Westbee, chairman of First
Bank, Bismarck, is slated to ad­
vance from the office of president­
elect to the presidency. He would
succeed Darold Petersen, president
of Lakeside State Bank in Newton,
who is the 1983-84 president.
The other new nominees selected
are: F or P re sid en t-elect —Les
Nesvig, president, The First State
Bank of La Moure, and for Vice
President-Treasurer—H arvey H.
Huber, president, Union State Bank
of Hazen.
The election will take place during
the 1984 100th anniversary conven­
tion next July at The Broadmoor in
Colorado Springs, to be held in con­

Federal Reserve Bank of St. Louis

junction with the South Dakota
Bankers Association annual conven­
The NDBA also announced last
month the following list of officers
for the four NDBA groups, who
were to be elected officially at the
group meetings slated September
26-29 in Devils Lake, Rugby,
Dickinson and Ellendale:
Northeast Group:
President— Jack Hansen, vice
president, Norwest Bank Hillsboro;
Vice President—Peter W. Nielsen,
executive vice president and trust of­
ficer, First National Bank in Grand
Forks, and Secretary/ Treasur­
e r - T e r r y Zeltinger, president,
Towner County State Bank, Cando.
Northwest Group:
P resident—Curtis Zimbelman,
assistant vice president, First
W e ste r n B an k , M in o t; V ice
President—Jerry Melby, president,

Rob Brink has been elected assis­
tant vice president-mortgage servic­
ing, at Western
S io u x
M r.
B rin k
joined the bank
in 1981 and has
been mortgage
servicing officer
for the past two
years, working
out of WesternDowntown, morR- BRINK
tgage banking division.

Acquisition Approved
Randall Bancshares, Inc., Lake
Andes, recently received approval
from the Federal Reserve Bank of
Minneapolis to acquire the Andes
State Bank, Lake Andes.
First National Bank, Bowbells, and
Secretary/Treasurer—Gerald Long,
president, State Bank of Bottineau.
Southwest Group:
P residen t—Joseph Zilkow ski,
president, First National Bank,
Belfield; Vice President—Ronald
Keeley, vice president, United Bank
o f B ism a rck , and S ecreta ry /
Treasurer—(to be announced).
Southeast Group:
President—P.B. (Blaise) Johnson,
vice president, N orwest Bank
J a m estow n ; V ice P r e s i d e n t Richard Solberg, president, State
Bank of Fargo, and Secretary/
Treasurer—Lowell Anderson, vice
president, First National Bank,

Jamestown Addition Told
Ronald A. Arndt, president of
Norwest Bank Jamestown, has an­
nounced the ad­
dition of Paul H.
Olson as assis­
tant vice presi­
d e n t,
a g r i­
business depart­
Prior to join­
in g
N o rw e s t
Bank J a m es­
town, Mr. OlsonP.H. OLSON
was with Nor­
west Bank Moorhead, where he has
served as ag loan officer since 1982.
Northwestern Banker, October, 1983


New Division Opens
Officer Appointed



MM. Dean, pres., Greeley
D.A. Childears, exec, mgr., Denver

Denver Executive Named
Ron B. Robinson has been named
a senior vice president of United
Bank of Denver,
responsible for
the overall stra­
te g ic m anage­
ment of the 11
United Banks in
the Denver Met­
ropolitan area.
In addition, he
will retain his
current position
as president and
chief executive officer at United
Bank of Lakewood, which he has
held since 1977.
Mr. Robinson joined United Bank
of Denver in 1963. In late 1975 he
moved to United Banks Service
Company where he remained until
early 1977.

Two Directors Elected
Colorado National Bank -Southwest Littleton, recently elected
Newell M. Grant and Fitzroy
Newsum to the bank’s board.
Mr. Grant is managing partner of
Grant Management Company, a
firm engaged in real estate holdings.
Mr. Newsum is manager - civic
liaison for Martin Marietta Denver

assistant vice president and loan
service manager.

Promoted in Denver
At Denver National Bank, Gloria
S. Schofield has been promoted to
vice president
and trust officer.
Ms. Schofield
joined the bank
in 1980 as an
employee bene­
fits trust officer
and p resen tly
oversees the ad­
ministration of
employee bene­
fits plans. She
previously was with Lincoln Trust
Company in charge of retirement
Also at the bank, Louis E.
Thompson, president and general
manager of Lou Thompson Cadillac,
Inc., was elected to the board.

Intrawest Bank of Denver
Sponsors Paint-A-Thon

United Banks of Colorado, Inc.,
Denver, has announced the appoint­
ment of Harry Pforzheimer, III, to
manager of media relations.
Prior to joining United Banks,
Mr. Pforzheimer worked in the
Denver office of Hill and Knowlton
and spent a number of years with
corporate and public affairs for
Paraho Development Corporation.
Beverly A. Haney has joined Col­
orado National Mortgage Company,
Denver, as assistant vice president
and loan service manager. She
previously was associated with Col­
orado Federal Savings and Loan as
Banker, October, 1983
Federal Reserve Bank of St. Louis

Promoted in Denver

New President Elected

Industrial Banks Sold
EMPLOYEES of IntraWest Bank of Denver,
including President John M. Eggemeyer (at
left of ladder) applied 15 gallons of paint to
the home of senior citizen Jeannette
Johnson, one of 100 senior citizens whose
homes were painted in the fourth annual In­
traWest Paint-A-Thon. Over 1200 volunteers
from organizations throughout the city par­
ticipated in the August event.


Doug Kelsall has been promoted
to vice president, energy division,
and Erik S. Taylor, vice president,
has been named manager of the
financial services group at Colorado
National Bank of Denver.
Mr. Kelsall joined the bank in
1978 and was promoted to assistant
vice president in 1981.
Mr. Taylor joined the bank in
1957 and during his tenure has held
key management positions in the
trust department.

C olora d o N a tion a l B ank Arapahoe’s board of directors has
elected Robert L. Mitton, Jr., president. He replaces John Diedrich,
who is retiring.
Mr. Mitton joined the bank in
May, 1983, as vice president, loan
division manager. He previously
was associated with IntraWest
Bank of Aurora, where he was vice
president-senior loan officer.

Media Manager Named

Recent Addition Told

Denver National Bank has formed
a residential real estate division,
o ff e r in g
FHA and con­
ventional home
mortgage loans,
a n n ou n ced C.
G ale S e lle n s ,
chairm an and
chief executive
Also announc­
ed was the app o in tm e n t o f
Katherine H. Kaley as assistant vice
president of that division.
Ms. Kaley most recently was with
Manufacturers Hanover Mortgage
Corporation as residential under­
writer. She is originally from
Lewisburg, Pennsylvania.

Colorado National Bankshares,
Inc. recently announced it is discon­
tinuing it’s industrial bank opera­
tions. The company owns three in­
dustrial banks, all located in the
state of Colorado. Will F. Nicholson,
Jr., president of Colorado National
Bankshares, said, “ The rapid
deregulation of the financial services



Until now,youcouldn’t do
business banking likethis
Advanced cash management.

T h e First is first again.
Because First o f Denver
(also know n as IntraWest
Bank o f Den^
ver) has m en
ged w ith First
Interstate Bank
to form the new
First Interstate
Bank o f Denver.
A n d because o f
it, business banking
in C olorado
has changed
D enver has
som ething it
never had before.
A bank w ith m ore than
120 years o f C olorado experb
ence, along w ith the strength
and multi-state banking
capabilities o f the First Inter­
state Bank system. A n d that
com bination can make a big differ­
ence in h ow you d o business from
now on .

Imagine the efficiency o f having cash m an­
agem ent for both your local and
interstate operations handled
through on e bank
and on e system.
First Inter­
state Banks
cash manage­
m ent system is
on e o f the m ost
advanced you’ll
find anywhere. It
can guarantee
faster collections,
faster concentra­
tion and faster,
m ore accurate
balance reporting.

Multi-state banking
for multi-state business.

Money for business growth.
T h e new First Interstate Bank o f Denver
can offer you access to the lending resources o f
our entire $42 billion banking system—all
through a single account officer. A n d that very
same account officer has the kind o f first-hand
know ledge o f local industry that can only
com e from being a part o f the pioneer bank
o f C olorado.


W e can make doing business
across state lines as easy as doing it
across the street. W e’re on e o f the
largest multi-state banking systems
in the W est—including branches in
every m ajor dom estic business center.
A n d w e’re ready to put that vast system to
work to make your interstate expansion and
operations m ore efficient and profitable.
A n d with our international banking net­
work, you can d o business m ore effectively—
anywhere in the world.
U ntil now, you couldn’t d o business banking
like this in C olorado, because the new First
Interstate Bank o f D enver didn’t exist. U ntil now.
T h e First is first again. A n d w e’re proud o f it.

) First


633 S ev en teen th S treet, D enver, C o lo ra d o 80270* (303) 293-2211
Federal Reserve Bank of St. Louis

Member FDIC

Northwestern Banker, October, 1983

industry and most major categories
of deposit accounts were the
primary factors in reaching this
decision. The advent of deregulation
has opened up greater opportunities
to gather funds from other sources.”
Two of the industrial banks are
under contract to be sold. Mellon
Financial Services’ Commercial and
Consumer Finance Group, head­
quartered in Oak Brook, Illinois, will

purchase Northglenn Industrial sold for cash at their book value to
Bank. East Industrial Bank will be another susidiary of Colorado Na­
sold to Integrated Resources, Inc., a tional Bankshares. Aspen Industrial
New York Stock Exchange company Bank has on hand cash funds well in
based in New York City. Aspen In­ excess of the amount required to pay
dustrial Bank ceased operations on all deposits in full, including in­
September 15 and is now under a terest. No depositor is at risk to a
voluntary plan of liquidation. Mr. single penny.” The three industrial
Nicholson stated, “ Aspen Industrial banks have total assets of approx­
Bank is entirely solvent, and its imately $12 million and a total book
loans and other assets have been value of approximately $950,000.

in a new publication from the
American Bankers Association.
A B A ’s
M a rk etin g
Research: A Practical Guide pro­
vides a range of techniques, sample
tools and professional advice to
senior bank m anagem ent and
research practitioners.
R. Sizemore, pres., Chinook
“ Increased competition among
J.T . Cadby, exec, v.p., Helena
in stitu tion s
marketing decisions more critical
Holding Company, Bozeman, to ac­ than ever,” said Paul Diesel, vice
Reiquam Elected
quire The Bank of Baker.
president, retail banking, Multibank
To Additional Post
Financial Corp., Quincy Mass.
First Bank West Great Falls has
“ With banks developing more and
elected Robert L. Reiquam chair­ MBA Office Moves
more market-oriented products, this
man, chief ex­
To New Location
new marketing research guide
ecutive officer
should p rove
an invalu able
and m anaging
resource,” he added.
officer. He suc­
This resou rce can p rovid e
Number One North Last Chance
ceeds Robert M.
answers, Mr. Diesel says, to
Pancich who has
only a block south of the previous of­ marketing research challenges such
resig n ed . Mr.
fice space and is also on the east side as analyzing current customer base
R eiq u am w ill
of the walking mall of downtown in order to target new products,
also continue in
assessing the potential of new pro­
p re s e n t
duct and service offerings, and
capacity as pres­
determining pricing and promotion
ident of First
Bank Great Falls. A president at space available to M BA staff.
Specifically, the A B A Bank
First Bank West Great Falls will be
Marketing Research Guide contains
named at a later date.
two major sections—a management
Mr. Reiquam began his banking 443-4121 and 59601.
overview of the strategic issues
career in 1965 and was elected presi­
governing research and a section
dent of First Bank Miles City in New Bank in Town—
detailing the technical procedures
1974, the position he held until his
used. Topics included in the guide
election in 1982 as president of First
Montana Bank of Forsyth opened are data collection, research design,
Bank Great Falls.
its doors for business August 1. It is sampling techniques, data analysis,
the 13th bank owned by the Mon­ interpretation and application, and
Acquisitions Approved
tana Bancsystem and will be the se­ advertising research.
The Federal Reserve Bank of Min­
Sample questionnaires, guides for
cond bank to serve the community
neapolis has announced its approval
focus group discussions, sample
of Forsyth, population 2,500.
of the following applications:
President is Verland Thomas, a telephone surveys and recommend­
Flathead Lake Bancorporation,
Billings banker for 24 years. John ed interview techniques are included
Inc., Poison, to acquire First
Hopp is vice president of commer­ in the Guide, along with a list of
Citizens Bank of Poison; Central
cial loans and Danny Larson is the marketing research supplier firms
Montana Bancorporation, Roundup,
and other relevant sources.
to acquire First Security Bank of
To order ABA's Bank Marketing
Roundup and to acquire Central
Research: A Practical Guide, re­
Montana Agency, Inc., a general in­ ABA Offers Guide On
quest order number 249300 from
surance agency operating in a com­
P rocessin g,
A m erican
Marketing Research
munity with a population not ex­
Bankers Association, 1120 Connec­
ceeding 5,000; Burke Securities
Banks of all sizes will find infor­ ticut Ave., NW, Washington, DC
Company, Missoula, to acquire mation and guidance on how to con­ 20036. The cost is $40 for ABA
Bank of Sheridan, and Baker duct and apply marketing research members, $60 for nonmembers.


Banker, October, 1983
Federal Reserve Bank of St. Louis


D.H. Babbitt, pres., Worland
M.C. Mundell, exec, dir., Laramie


r 11 .4 iftAh
k t


• ,< /f

Wyoming National to Charge Off Loans
FFILIATED Bank Corporation of the last day of the month
of Wyoming, a bank holding
preceding closing. The transaction is
company based in Casper and which subject to certain conditions, among
owns eight banks, announced which are the purchaser’s comple­
recently that its principal bank, The tion of arrangements for appropriate
Wyoming National Bank of Casper, debt and equity financing of the
has taken action to charge off loans transaction, approval by Affiliated
in an amount which will result in an shareholders, and approval by the
estimated loss by Affiliated of ap­ Federal Reserve Board. Either party
proximately $1.50 per share in the can terminate the agreement if the
quarter ending September 30, 1983, merger is not completed by July 31,
and a reduction of its estimated ear­ 1984.
nings for the nine months ending
The acquiring corporation, Finan­
September 30 to approximately 50 cial Resources of Wyoming, Inc.,
cents per share.
will be headed by F. O ’Neil Griffin,
Robert W. Miracle, president of who was formerly the chairman of
Affiliated, said that the need to Mountain Banks, Ltd., a bank
charge off loans arose primarily holding company based in Denver,
from the special difficulties of the oil Colorado. Mr. Griffin has also serv­
and gas industry.
ed as vice chairman of First City
Mr. Miracle also announced the Bancorporation of Texas, which has
approval by Affiliated’s board of an its headquarters in Houston.
offer for the acquisition by merger of
all of its outstanding capital stock
for a cash price of $42.00 per share, Mid-Year Figures Released
with an adjustment if the merger
The abstract report of state and
has not occurred by March 31, 1984, national banks in Wyoming for June
equal to the per share earnings or 30, 1983, has been released by the
losses of Affiliated accumulated Office of the State Examiner.
after March 31, 1984, calculated as Following are totals for deposits,







assets and net loans. All figures are
in thousands.
Total deposits for the 61 state
banks were $1,337,937; for the 50
national banks, deposits were
$2,331,615; for the combined state
and national banks, deposits were
$3,669,552, compared with 1982’s
total of $3,322,621.
Total assets for state banks were
$1,525,582; for national banks,
$2,661,549; for the combined group,
$4,187,131, compared with 1982’s
total of $3,878,547.
Net Loans for state banks were
$815,973; for national banks,
$1,382,724; for the combined group
it was $2,198,697, compared with
1982’s total of $2,100,211.

Elected in Casper
W yom ing N ational Bank of
Casper recently announced the elec­
tion of veteran
banker Richard
C. Maves to the
position of assis­
tant vice presi­
dent of the real
estate loan de­
partment. Mr.
Maves will un­
derwrite loans
and orig in a te
long-term and
construction loans.
Mr. Maves, who most recently
served as an assistant vice president
at Utah Mortgage Loan Corporation
in Casper, brings seven years of
varied lending experience to his new
position at W yom ing National

American National Bank of Rock Springs Breaks Ground

American National Bank of Rock Springs recently held a groundbreaking ceremony for its new 30,000, sq. ft., full service facility to be
located at 2515 Foothill Blvd. Scheduled to open in May, 1984, the new building will feature four drive-up teller lanes, safe deposit boxes
and the ATM Action Bank Center. Pictured at the groundbreaking (I to r) are: Leonard R. Scoleri, v.p. and cash.; Charles R. Jones, John S.
Kauchich, Bruce K. Lockhart, Richard L. DeBernardi, Dick L. Blankenship, and Ronald E. Bailey, pres.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983


It’s a shame to
stop m ortgage
business a t the
front door.
No one likes to say “I ca n ’t handle
the business.” Especially when a
good customer comes calling.
But a lot of bankers simply don’t
have the resources to take on the
complicated task of w riting FHA
or VA loans. Or putting 30-year
mortgage paper on the books.

Norwest Bank Omaha can help.
We buy residential m ortgage
loans. But more than that, w e’ll
give you as much help as
you need in processing your
FHA/VA loans.
Talk to Norwest. Then when you
greet customers at the door, you
can ask them to come on in.



To learn more, call Bob Culver,
our home mortgage specialist,

Norwest Bank Omaha

(formerly U.S. National Bank)

Member FDIC Affiliate of Norwest Corporation



H ilf



Northwestern Banker, October, 1983
Federal Reserve Bank of St. Louis


5. Perfection of the Security In­
6. Priorities and Purchase Money
Security Interest.
7. Enforcement of the Security In­
terest-Rem edies of the Secured

NBA Ag Conference Is a Winner

O sborne’ s humor and football
statistics on his team were well
balanced with thoughtful comments
reflecting his concern for all univer­
sity students on every campus over
the problems of drugs and alcohol
that are being thrust on them.
The first speaker was Philip E.
Schmidt, vice president, Federal
Reserve Bank of Kansas City. A
review of his talk, “ A g Lending - A
R e g u la to r ’ s V ie w p o in t,” was
reviewed in depth in the September
19 issue of the N o r t h w e s t e r n
B a n k e r Weekly Newsletter.
That talk set the stage well for
follow in g presen ta tion s. G ary
Thrasher, senior vice president of
The Omaha National Bank, discuss­
ed “ The Importance of Loan
Documentation, ’ ’ using an excellent­
ly prepared 11-page summary that
was part of a thick book of materials
presented to each banker upon ar­
rival at the conference. Mr.
Thrasher, who is in charge of loan
workout teams at his bank, covered
“ The General Theory of Secured
Lending’ ’ made up of seven sections:

F THERE were any lingering
doubts about the deep concern of
bankers for their ag customers and
their banks, it was dispelled quickly
at the 1983 A g Credit Conference
conducted by the Nebraska Bankers
Association at the Lincoln Hilton
Hotel in Lincoln last month.
For those who did attend it was a
value-packed, working conference
that went to the heart of many ag
banker concerns today—classified
loans, loan documentation, com­
pliance, impact of PIK on lending,
farm bankruptcies and new ventures
in ag lending. The conference truly
carried out its theme, “ Changing
P e r s p e c t iv e ,” thanks to the
dedicated work of the N BA A g Com­
mittee, chaired by John Martin, vice
president of The Omaha National
Bank, and the NBA staff.
At the opening noon luncheon on
Thursday, Chairman Martin in­
troduced Nebraska Head Football
Coach Tom Osborne, whose #1 rated
Cornhuskers were fresh from an
1. Secured L en d in g —General
opening game trouncing of Penn Theory and Purpose—the Lien Con­
State and were to face the Universi­ cept.
ty of Wyoming two days later at
2. Scope of Article 9 of the UCC.
Memorial Stadium a few blocks
3. Security Interest Under the
away (which the Huskers won by UCC.
another lop-sided score). Coach
4. Types of Collateral.


Mr. Thrasher told his audience,
“ We need to do a better job of train­
ing staff in secured lending. The
rules constrantly change. We spend
lots of money on bonds and in­
surance. In our bank we have an
allocation for training. You should
have som eone responsible for
reviewing every document to see if
it’s correct. We review all loans and
documents with teams once a year.
This does two things: 1. It helps
senior management evaluate new
people and it helps the new ones.
2. It provides an additional check on
our loans and documentation.’ ’
B ill B ra n d t, N B A gen eral
counsel, also had his talk on “ Com­
pliance Issues’ ’ well outlined in the
presentation folder. He spent con­
siderable time reviewing the central
filing issue, which will continue to be
an important item in the state
The last item on the Thursday
aternoon program was “ Impact of
PIK on A g Lending,’ ’ reviewed by
R oy
F r e d e r ic k ,
e x t e n s io n
econom ist/public policy at the
University of Nebraska-Lincoln. He
reviewed past farm programs and
the effect on farming, as well as na­
tional budgets, and pointed out that
PIK likewise has brought some ine­
quities. “ It has aided the highly
leveraged farmer,’ ’ he observed,
“ and not the small, family farm
owner with little debt. It also has
aided the farmer in areas where
there were high production cost. Too
often, big people got big loans and
low interest rates when they didn’t

LEFT— Six of the eight members of the NBA Committee on Agriculture are pictured (from left): Duane Philippi, v.p., Lexington State; Dean
Henn, v.p., Bank of Elgin; Rusty Eisenhart, v.p., Culbertson Bank; Tom Henning, pres., Overland Natl., Grand Island; Dennis Devine, pres.,
Fillmore County Bank, Geneva, and John Martin (comm, chmn.) v.p., Omaha Natl. RIGHT— Tim Haight and Jerry Strasheim, Omaha at­
torneys and panelists, with Bill Brandt, NBA genl. counsel.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983


Nebraska News

LEFT—Dr. Roger Mandigo (second from left) was presented a plaque for his accomplishments in the area of “ restructured meat process­
ing.” Dr. Mandigo is an ag college staff member at the University of Nebraska. Presenting the award were NBA Pres. Don Johnson (left),
pres., Farmers Natl., Pilger, and Mr. Martin. At far right is Dr. Roy Arnold, vice chancellor of the U of N, who presented Dr. Mandigo’s im­
pressive credentials to those at the noon luncheon. RIGHT—A special guest at the NBA Ag Conference was Nebraska Congresswoman
Virginia Smith (3rd District), pictured here with her husband, Haven Smith (left); A.C. Skip Hove, chmn., Minden Exchange B&T, Minden,
who is NBA pres.-elect, and Gene Schwarz, a.c., 1st Natl., Elm Creek.

need them, and they invested in high session. The insights o f Mr.
Strasheim and Mr. Haight into so
return equities.”
Among options for the future he many aspects of bankruptcy law
listed: 1. If we have a return to nor­ was worth the conference registamal production and acreage, we will tion fee alone.
The final portion of the morning
probably be looking at a way again
to restructure production. 2. Get­ program was devoted to the state’s
ting some acres out of production role in ag finance and how those
state corporations fit into a bank’s
that shouldn’t be used. He added
ag credit strategy. Speakers includ­
that Iowa State Unversity reports
that PIK will put $900 million into ed Don Dworak, director of the
the hands of Iowa farmers; it will Department of Economic Develop­
cause a $300 million loss to service ment, speaking on the Nebraska In­
people, so the significant gain to v e s tm e n t F in a n ce A u t h o r it y
(NIFA); Morris Reynolds, deputy
Iowa will be $600 million.”
He sees low participation in any director of the A g Development Cor­
PIK program next year, if there is poration, and Gordon Kissel, ex­
one. He pointed out that the federal ecutive director of the Nebraska
government’s support of the 15% of Conservation Corporation (taxour people in the poverty class is exempt bonds for conservation
less than that earmaked for farm work).
A t the closing noon luncheon on
support, which represents 2% of the
people. “ On cost alone, I feel any Friday, the NBA awarded a special
farm program will have a tough plaque to Dr. Roger Mandigo, pro­
fessor of animal science at the
time,” he concluded.
University of Nebraska-Lincoln. He
One of the real plus values for
each registrant was receiving a was cited for his leadership in the
106-page gold mine of information area of “ restructure engineering’
that brought pork to the fast-food
on “ Dealing with Bankruptcy,”
prepared by two noted attorneys
skilled in the intricacies of bankrupt­
cy law—Jerrold L. Strasheim and
Timothy V. Haight of the Baird,
H o lm , M c E a c h e n , P e d e rse n ,
Hamann & Strasheim law firm in
Omaha. The two men conducted a
two and one-half hour program
without a break. Testimony to the
importance and timeliness of the
subject was a full house in the con­
ference room, and the fact that no
one left until they concluded at
11:00 a.m. Considerable audience
Tom Osborne, Nebraska head football
participation in the form of ques­ coach, chats with Conference Chmn. John
tions and individual bank ex­ Martin after addressing the Thursday noon
periences added to the value of this luncheon.

Banker, October, 1983
Federal Reserve Bank of St. Louis

marketplace, such as the McRib
Sandwich. Dr. M a n d ig o’ s im ­
pressive record as a teacher and
research scientist was presented by
Dr. Roy G. Arnold, vice chancellor
for agriculture and natural resources
at the U of N.
Closing speaker at the luncheon
was Jim Roberts, owner of J.F.
Roberts Company, Lincoln, who
gave a summary of some of the
discussions presented to date to the
“ 2001 Comittee” set up by the
Governor to help chart Nebraska’s
future course.
A highlight of the conference on
Thursday was the western barbecue
dinner served at The Lincoln Hilton,
followed by the excellent entertain­
ment of noted singer Anne Murray
at the Bob Devaney Sports Com­

Blair President Named
Howard C. Hanson, Jr., chairman
of the Blair Bank, has announced
the election of John E. Queen as
president. Mr. Queen has been with
the bank since February of this year.
Prior to his affiliation in Blair,
Mr. Queen served as vice president
and senior loan officer of the First
National Bank in Council Bluffs.
Previous banking experience in­
cludes seven years with the Omaha
National Bank in the commercial
lending division. Mr. Queen also
serves as a director of Blair Bank.
Also at the bank, Harold Matney,
executive vice president, has an­
nounced his resignation effective
November 11. He plans to pursue
personal business interests as well
as having continuing respon ­
sibilities with Blair Banco, Inc., the
bank holding company.

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John M. Shonsey, chairman of the
American National Corporation, has
announced the election of Dennis J.
Hanneman to the position of vice
president - com­
m ercial loans,
and Claude W.
Sears as assis­
ta n t ca s h ie rconsumer loans
for the American
National Bank.
A th irte e n year veteran of
the banking in­
dustry, Mr. Han­
neman came to American National
Bank from Billings, Montana, where
he was a bank commercial loan of­
ficer for three years. Prior to that, he
was associated with the Bank of
America in Los Angeles and involv­
ed in commercial loans.
An Omaha native, Mr. Sears has
been active in the consumer loan
field since 1979. He is a graduate of
the University of Nebraska at
* * *
First National Bank of Omaha
recently announced the appoint­
ment of Charles R. Walker as second
vice president, retail banking divi­
sion, and the addition of Steven K.
Norris as a marketing represen­
tative of Banclease, Inc., an affiliate
of First National.

sw mm» m ssm mmmmmm /

Banker, October, 1983
Federal Reserve Bank of St. Louis

Mr. Walker is a graduate of
Creighton University’s School of
Law. Formerly with the Bank of
Bellevue, he has been in banking for
seven years.
Mr. Norris has a BS degree in
bu sin ess a d m in istra tion from
Wesleyan University. Prior to join­
ing Banclease, Inc., Mr. Norris was
employed as a loan officer with the
Federal Land Bank in Columbus.
* * *
Lawrence Comine, Jr., vice presi­
O m aha
N a tio n a l
Bank’s commer­
cia l
le n d in g
department, has
b een
e le c te d
chairman of the
Midlands Group
of Robert Morris
Schainost, vice
president of the
First N ational
Bank of Lincoln, was elected vice
chairman. James A. Kruger, ex­
ecutive vice president of Gateway
Bank & Trust of Lincoln, was named
Elected directors of the Midlands
Group were: Patrick J. Brady, senior
vice president of Norwest-South,
Omaha; William F. Kabourek, presi­
dent of State Bank & Trust, Council
Bluffs; David C. Koenigsman, senior
vice president of Norwest-West,
Omaha; Brad Korell, vice president
of National Bank of Commerce, Lin­
coln; Gordon V. Kuhn, president of
Havelock Bank & Trust, Lincoln;
Steve Ritzman, assistant vice presi­
dent of First National Bank,
Omaha, and Roger V. Voorhees, vice
president of North Side Bank,

Kenneth M. Parrish has been ap­
pointed manager of Golden Eagle
S e r v ic e s
Omaha National
Golden Eagle
Services is the
brand name for
the array of data
processing pro­
d u c ts O m aha
National’s infor­
mation systems
and payment ser
vices department provides to finan­
cial institutions and other cus­
Mr. Parrish joined Omaha Na­
tional in 1972. He served as a pro­
grammer and date processing pro­
ject manager before being named a
systems officer and manager of
systems and programming in 1982.

Aurora First National
Celebrates 100th Year
Around 2,000 area residents par­
ticipated in the First National Bank
of A urora’ s 100th anniversary
celebration held in July. A free
barbecue was served at the drive-in
facility from 5:00-7:00 and the bank
held an open house throughout the
A ribbon cutting ceremony mark­
ing the start of the second 100 years
of service was held in the bank lob­

Kearney O fficer Elected
Illene Drake has joined the
Kearney State Bank and Trust Com­
pany as a loan officer.
The past five
M s.
Drake has been
e m p lo y e d
P la tte V a lle y
Bank, Brighton,
Colorado, as a
real estate and
commercial loan
officer. Her pre­
vious banking
experience also
included associations with the
Federal Land Bank in the Kearney
and Broken Bow areas for 12 years.

Joins Mitchell Bank
Collyn Florendo has joined The
First National Bank in Mitchell as
instalment loan officer. He previous­
ly has been with The Fort Lupton
State Bank in Fort Lupton, Col­


Fred Kuehl

Gerry Tomka

Mark Sorensen



CORRESPONDENT banking can be confusing, frustrating,


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Just call to get the answers from one of our six experienced
correspondent bankers. Six men with the very latest
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So call us for the answers to your correspondent
banking questions — on electronic data
processing, cash letter processing, overlines,
fed-fund transactions and more.
I llo l I
In Nebraska, call i-800-642-9907. Outside
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answers from us, the answer men.
Federal Reserve Bank of St. Louis

IvJI i\ j\ lU I U U l llx

of omaha
Member FDIC

Northwestern Banker, October, 1983


ILLIAM C. Smith, president
of First National Lincoln
Corp., and Duane W. Acklie, a direc­
tor and the largest stockholder of
FNLC, issued separate statements
on August 31 indicating a resolution
of differences over the proposed con­
solidation of FNLC, the holding
company which controls First Na­
tional Bank & Trust Company of
Lincoln, with Omaha National Cor­
poration. The preceding Friday, Mr.
Acklie and his wife had published a
tender offer to purchase up to
736,000 shares of the FNLC stock at
$40 a share in opposition to the pro­
posed consolidation.
Mr. Smith stated, “ We have ad­
vised officials of Omaha National
Corporation, with whom we have
been exploring consolidation, that
all discussions will be terminated


im m e d ia te ly . W e h a ve a lso
represented to Mr. Acklie that the
management of FNLC will not
engage in any similar discussions for
at least the next year. Mr. Acklie
determined to withdraw his tender
offer and has stated he does not in­
tend to appreciably increase his
stockholdings during the next
Mr. Smith noted that, “ Our
discussions with Omaha National
arose from our desire to create a
Nebraska-based banking organiza­
tion large and strong enough to
withstand any takeover attempt
from outside the state. While
management still views such a tran­
saction as a legitimate long-term
goal, neither management nor Mr.
Acklie wants to see the bank and our
community disrupted by an internal

struggle. The announcements being ^
made today certainly represent a m
preferable alternative.”
Mr. Acklie stated that the offer
was withdrawn in accordance with
the terms of the offer which permit q
termination based upon threatened
litigation and based upon changes
which occur or are threatened which
would have a material adverse effect
upon the business or financial condi- ^
tion of the company or the sub­
sidiary bank. “ It has become in­
creasingly evident since last Friday
that for us to pursue the offer would
result in protracted litigation, uncer- q
tainty among bank employees, and
damage to the bank and the Lincoln
community, and that even if we were
to be successful in our offer, the
bank which we would purchase 0
would not be the same bank we
sought to purchase on August 26,”
Mr. Acklie stated.
* * *
First National Lincoln President
William C. Smith has announced
several staff additions and promo­
Sally A. Greenwait has joined
First National Lincoln as managing
officer, brokerage services. The new
brokerage services department will
be part of the customer services divi­
sion. Mrs. Greenwalt has many
years of experience in the brokerage
field and was formerly associated
with First Mid America.
New members of the trust divi­
sion are Jeff Edwards and Daniel A.
Kinder, both trust investment of­
ficers. Mr. Rinder earned an M BA
degree from the University of South
Florida. He was also an associate of
First Mid America before joining
First National.
Mr. Edwards holds an M B A from
the University of Nebraska, Lincoln,
and formerly was with Edward D.
Jones & Co.
Two promotions were also an­
nounced. Larry McPhillips has been
named assistant vice president in
the installment lending division. He
was formerly direct loan officer, and
is a graduate of Wayne State Col­
Beth Morgan, formerly credit of­
ficer, has been named manager of
the central credit department. Mrs.
Morgan is a graduate of the Univer­
sity of Nebraska, Omaha.
* * *









Roger M. Beverage, 38, former ex- ^
ecutive vice president o f the

Banker, October, 1983
Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis

Member, F.D.I.C.

Northwestern Banker, October, 1983


Nebraska News

Nebraska Bank­
ers Association,
has joined the
Lincoln law firm
K n u d se n ,
B erkheimer,
R ich a rd son &
Endacott as an
associate. Mr.
B ev erag e w ill
concentrate his
practice in the
areas of banking law and litigation.
Mr. Beverage is well known
among Nebraska bankers since he
served them for three years in the
senior NBA staff position, starting
in July, 1979. He resigned that posi­
tion a year ago following the NBA
convention in order to purchase and
manage the insurance agency of his
late father-in-law, who had just died,
and to open his law practice in Ber­
trand, Nebr.
Before joining the NBA, Mr.
Beverage had been a partner in the
law firm of Baylor, Evnen, Baylor,
Curtiss and Grimit. A native of Plattsmouth, he earned his bachelor
degree from the University of
N eb ra sk a in 1967 and w as
graduated from the U of N Law Col­
lege in 1970. He is a past chairman
of the Young Lawyers Section of the
Nebraska Bar Association.
He and his wife, Paula, have four

Northeast Group of NABW
Elects New Officers
The Northeast Nebraska Group of
The National Association of Bank
W om en held their Septem ber

NBC Opens Havelock Area Facility


\ l' 1

NATIONAL Bank of Commerce, Lincoln, was sheduled to open a new full-service facility in
the Havelock area of Lincoln at Touzalin and Colfax, the first part of October, according to
Tom Potter, pres. The new facility, which will also offer loan services, is in compliance with
a change in Nebraska banking legislation, which permits Nebraska banks to add a third
facility in 1983 plus one additional facility in 1984 and 1985 for a total of five. The Havelock
facility will have a staff of five and includes drive-up teller services.

meeting at the Norfolk Country
Club September 8. New officers in­
stalled for the ensuing year are:
Chairman Deloreis Blunck, assis­
tant vice president, American Na­
tional Bank, Creighton; Secretary
Barbara C. Hughes, trust officer,
The National Bank of Neligh, and
Treasurer Ruth Lehman, operations
officer, Norwest Bank of Norfolk,

Loss Prevention Workshops
Scheduled for October
A series of regional Loss Preven­
tion Workshops have been schedul­
ed for October by the Nebraska
Bankers Association. Dates for the
workshops are:
October 24—Norfolk, Villa Inn;
October 25—Lincoln, Villager;
October 26—Kearney, Ramada

Bankshares to Merge With Norwest
ORWEST Corporation, Min­
neapolis, and Bankshares of
Nebraska, Inc., Grand Island, an­
nounced last month the signing of a
p r e lim in a r y
a g re e m e n t
fo r
Bankshares to merge with Norwest.
Bankshares owns First National




for FRASERBanker, October, 1983
Federal Reserve Bank of St. Louis

Bank of Grand Island, First Savings
Company of Grand Island, First
Savings Company of Kearney, and
Bankshares of Nebraska Life In­
surance Company of Phoenix.
At June 30,1983, Bankshares had
assets to ta lin g $140 m illion;
Norwest assets were $19 billion.
The agreement is subject to ap­
proval by Bankshares stockholders
and state and federal regulatory
agencies. U pon approval, all
Bankshares facilities would adopt
the Norwest name.
James R. Campbell of Omaha,
Norwest’s regional president for
Nebraska and western Iowa, said
the purchase will be made through

Inn, and
October 27—Ogallala, Holiday
The workshops, which will begin ^
with registration at 8:30 a.m. and
adjourn at 3:30 p.m., won’t get you
bogged down in legal requirements
for bank security and they won’t be
simply a rehash of security equip- £
ment. What they will be is a realistic
approach to policies which can save
the bank money without requiring
any additional investment by the

Dalton Celebrates 75 Years
Dalton State Bank recently
celebrated its 75th anniversary at O
the Legion Park in Dalton. A buffet
luncheon was served to nearly 500
an exchange of stock. Terms of the
transaction were not disclosed.
This transaction is permitted
under a state law which allows bank
holding companies to own as many
an nine banks in the state. That law
became effective August 26, 1983.
Norwest presently owns 86 commer­
cial banks, including three in Omaha
and one each in Hastings and Norfolk.
S.N. (Bud) Wolback, chairman of
First National of Grand Island, said
the decision to merge with Norwest
was based on a careful assessment
of several merger opportunities that
a ro se fo llo w in g p a s s a g e o f
Nebraska’s new Multi-Bank legisla­
tion. R.E. Spelts, Jr. serves as presi­
dent and chief executive officer of
First National.






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Nebraska News

AG PANELISTS and banker guests were welcomed to First National Lincoln’s Correspondent Bank Conference by Gary Bieck (at
microphone), v.p. and head of the host bank’s correspondent bank division. Panelists, from left, are: Dale C. Tinstman, Carson Rogers,
Robert Cartmill and Jack Maddux. RIGHT—Robert Hamilton (left), v.p. in charge of the Omaha branch, Fed of Kansas City, poses with %
First Natl, hosts Bill Smith, pres.: Orrin Wilson, exec, v.p., and W.C. Bud Johnson, genl. counsel and dir.

A t First National Lincoln Conference:

Ag Panelists Are O ptim istic
ANKERS attending the First
National Bank of Lincoln’s 23rd
Correspondent Bank Conference
received a double helping of op­
timism. Members of the four-man
Livestock, Grain and Feed Outlook
Panel said they sense a positive turn­
around in agriculture; then, a few
hours later, the University of
Nebraska football team showed why
it is still rated 0 1 nationally by han­
dily defeating the University of
Wyoming by a wide margin.
More than 700 persons attended
the Conference. Advance registra­
tions alone showed 380 bankers
from 193 banks, accompanied by
298 spouses, and other registrants
showed up at conference time.
Gary Bieck, vice president in
charge of the First National’s cor­
respondent bank division, and his
staff of correspondent bankers
hosted a cocktail-buffet reception
Friday evening at the Lincoln
Hilton Hotel. The entire officer staff
of First National was on hand to
greet the guests, headed by Presi­
dent William C. Smith and E x­
ecutive Vice President Orrin Wilson.
After a 7:30 a.m. breakfast on
Saturday, the ag panelists were in­
troduced by Dr. Roy Arnold, vice
chancellor of the Institute of A g and
Natural Resources at the University
of Nebraska-Lincoln. All four par­
ticipants were on the 1982 panel as
well. They were: Robert Cartmill,
president, Lincoln Grain, Inc., Lin­
coln; Jack M addux, rancherlivestock producer, Wauneta; Carson Rogers, swine producer, Ord,
and Dale C. Tinstman, consultant,
Iowa Beef Processors, Dakota City.


Banker, October, 1983
Federal Reserve Bank of St. Louis

Mr. Cartmill set the stage for the
two-hour discussion by reviewing a
“ C orn B a la n c e T a b l e s ’ ’ he
distributed to each banker in the au­
dience. It traced exact figures from
1971 through 1982, plus 1983
estimates, for total supply for crop
year (including carry-over stocks),
minus total usage (fed, exports,
other), with a resulting carryout, for
the year hence. The chart then sub­
tracted the Government Isolation ProProgram (net under loan, reseal, re­
serve, CCC), to show a final “ free carry­
over” figure as of Septmeber 30 for
the year hence. Total corn supplies
ranged from 6,313 million bushels in
1971 to 10,429 million bushels in
1982. The amount totally controlled
by the government in 1982 was
3,548 million bushels due to 3,080
million bushels in government
reserve. The estimate for 1983, in­
cluding the September 30, 1982 car­
ryout of 3,423 was 8,323 million
bushels total supply for the crop
year. However, Mr. Cartmill cau­
tioned that the new USD A corn crop
estimate would be out the following
Monday and when it was published
it was ju s t a bove 4 b illion
bushels—20% less than the estimate
M r.
C a rtm ill
fig u r e d
earlier—and he had downgraded to
that point already from the 8,319
million bushels of 1982.
Later, Mr. Cartmill cautioned
that long-term corn in storage of two
years or more may not be up to
grade and could suffer “ substantial
Jack Maddux stated, “ Be wary of
an optimistic cattleman, but never­
theless I am, despite a lot of hogs

coming to market and the dairy herd
liquidation taking place. My reason?
It is darkest before dawn and we are
looking at a dark cattle and hog
market. I see a more volatile market
next year...I think we’re coming full
circle from seven to eight years ago.
It’s the slaughter rates that effect
the change. To decrease numbers by
1% requires a two to three percent
slaughter increase. W e’re going
through a heavy slaughter system
now. In the cattle business we get
the message right now and adjust
when we get market reports and
prices. The ability to adjust quickly
makes me optimistic.”
Carson Rogers echoed those sentiments by saying, “ Sow slaughter
has been up the past couple of
months; also gilt slaughter is up.
Weights dropped in two weeks from
242 to 229 pounds. W e’re heading to
a turnaround in the red meat in­
dustry for the better. The first
quarter of 1984 will see pork in the
mid $40s; the second and third
quarters in the low $50s—all if the
current reduction through slaughter
Dale Tinstman observed, “ I ’m op­
timistic about the meat industry
spending a lot of money on plant and
equipment. The cattle feeding future
area is western Nebraska and Kan­
sas. We bought a couple of plants in
Colorado recently. On pork, we’re
excited and we have a new plant in
western Iowa. We need to get pro­
ducers and feeders profitable, both
in cattle and hogs.”
Mr. Rogers also said, “ We see
larger, fewer producers on family
farms. We see producers getting
together and listening to each other.
Every operator must know his cost
of production. It is easier to know
the price you get, but knowing the











Nebraska News







cost is just as important."
Mr. Maddux added later, "There
is little doubt that feeder cattle
prices this fall will be lower, due to
the higher corn price. About 30% of
the ranchers will keep their feeders
until spring; that is, those financial­
ly able to do so. But, if wheat
pastures don’t develop, we could see
an increase in placements."
The last question to the panel
stated that Nebraska ranges from
number two to seven nationally in
key ag measurements, so "whats the
future for Nebraska?" The answers
were brief, but pertinent:
Jack Maddux: “ Nebraska will
become the top beef producer in the
next 10 years." Robert Cartmill
said, “ The merger of railroads puts
Nebraska closer to markets than
ever before." Carson Rogers noted,
“ W e’re blessed with water, and our
prime position on this point will
keep Nebraska on to p ." Dale
Tinstman concurred with that posi­
Following the panel presentation,
a pre-game warmup and luncheon
was offered in the offices of the First
National Bank, after which guests
adjourned to the nearby Memorial
Stadium for the Nebraska-Wyoming

Application Filed For
New Bank Charter
A new charter application has
been filed with the Comptroller of
^ the Currency by First Continental
National Bank to be located at
138th and S Plaza in Omaha.
Agent for the new charter is
Cheron B. Beran. Other organizers
^ include: Harold Cooperman, E.
Robert Newman, A. Dan Gordman,
Phillip Dale Beggs, Robert Jensen,
Philip Cohn and David Kats.

# Henry Wagner Dies
Henry Kermit Wagner, 67, died
September 20 of an apparent heart
attack. Mr. Wagner was director of
the Schuyler Security Federal Sav9
ings and Loan and had interests and
d ire cto rs h ip in 14 banks in
Nebraska, Iowa and South Dakota.
After graduation in 1937 from
Kansas State, Mr. Wagner joined
his fathers’s firm, the Schuyler Mill­
ing Company, later changed to
Wagner Mills Inc. He served as vice
president and general manager until
_ he assumed the presidency after his
9 father’s death in 1973. Under his
Federal Reserve Bank of St. Louis


Independents to Meet in Grand Island
HE SECOND Annual Conven­
tion of the Nebraska Indepen­
dent Bankers Association will be
held November 3 & 4 at the Mid­
town Holiday Inn, Grand Island.




Serving as president of the
association this past year was Den­
nis Brewster, president of Butte
State Bank. He was assisted by
First Vice President E. Dean
Kugler, who was president of
Springfield State Bank; Second Vice
President John M. Green, president,
Wauneta Falls Bank, Wauneta;
Secretary F. Phillips Giltner, presi­
dent, First National Bank, Omaha,
and Treasurer Thomas Grove, senior
vice president, Packers National
Bank, Omaha.
Election of new officers will be
held during the convention. The pro­
gram schedule follows:
A.M. Thursday, November 3
10:00 -5:00 p.m. Registration, main
1:00 M icro-Com puter U pdate—
Dave Waldron, president,
F inancial D esign s, Inc.,
4:00 Y ou n g B ankers P a n el—
“ Challenges for the Future
G eneration." Panel m od­
erator - Robert C. Fricke,
Farmers & Merchants Na­
tional Bank, Ashland.
guidance, Wagner Mills engaged in
trucking, liquid fertilizer and grain
merchandising and storage with
elevators in Rogers, Edholm, Col­
umbus and Bruno.

Named in Coleridge
Coleridge National Bank recently
announced the promotion of Diane
Frerichs to cashier and the naming
of Stan Carlson as operations of­
Ms. Frerichs has been with the
bank 14 years. Mr. Carlson

6:30 Reception, sponsored by First
National Bank of Omaha.
Friday, November 4
7:30 Registration.
9:00 General sessions.
Welcome - Dennis Brewster,
N IBA president.
" R e g u la t io n s and C om ­
pliances’ ’—Mary Curtin, Min­
neapolis Attorney.
“ Maintaining High Balance
Customers through Commis­
sion Selling’’—John Laslie,
president, J&L Consultants.
"S te e r in g
Y our
B an k
Through the 80s—What it
W ill T ake’ ’—Gary Scott,
senior consultant, banking
practice section, D eloitte
Haskins & Sells.
“ Travelers Cheque Presenta­
tion’ ’—Jean Vincel, Barclays
12:00 Luncheon with guest speaker
Sidney Bailey, Financial In­
stitutions Commissioner from
Commonwealth of Virginia
and president of CSBS.
2:00 General sessions.
"D ereg u la tion and Com ­
p a rison s’ ’ —Duane A cklie,
Lincoln attorney.
James Herrington, president,
Independent Bankers Asso­
ciation of America.
Paul Amen, dirctor, Nebraska
Department of Banking and
“ Discount Brokerage -Legali­
ties from a Bankers View’’—
speaker to be announced.
6:00 Cocktail reception sponsored
by Packers National Bank,
7:00 Banquet with entertainment
by University of NebraskaLincoln Jazz E nsemble # 1. □
previously worked as an assistant
national bank examiner and most
recently with Security National
Bank of Sioux City.
Also at the bank, Paul Havekost,
cashier, has retired after 36 years of

Joins Bartley Bank
Craig Brewster has joined the
State Bank of Bartley as assistant
vice president. He is a May graduate
of the University of Nebraska at
Northwestern Banker, October, 1983


with service!
You a n d your custom ers
have a w ide ran ge of invest­
m ent opportunities a v a ila b le
from Bankers Trust.
You ca n buy or sell through
us with con fid en ce that your
transactions will b e h a n d led
prom ptly a n d sm oothly W e’re
a registered d ealer in a ll b an k eligib le securities including
h igh -grad e m u n icip al b on d s
a n d notes, U.S. Governm ent
a n d Governm ent A gen cy
securities, bankers a c c e p ­
tances, repurchase a g re e ­
ments, CD’s, a n d overnight
a n d term Fed Funds.
You ca n also count on us
for w ell-ground ed investment
counsel. W e’ll work closely with

you a n d your custom er to
determ ine the best direction
for m eeting specific goa ls.
A nd b ec a u se w e serve as
trustee, transfer agen t, p a y in g
agen t a n d registrar for m any
bond-issuing entities, you ’ll
find us a n excellent source
for inform ation on p en d in g
new issues.
For a single investm ent
vehicle or assistance in struc­
turing an entire portfolio,
ca ll a Bankers Trust Invest­
m ent Banker toll-free in Iow a:
800-362-1688. Out of state,
p lea se c a ll 516-245-2424.



Des Moines, Iowa 50304
Member FDIC, Federal Reserve System



Banker, October, 1983
Federal Reserve Bank of St. Louis




Delores and AI Maser

Joan and Bill Logan

AI Maser Assumes IBA Presidency

Convention report by
Associate Publisher


Associate Editor
CLARION call for establishing
a World Food Center in Iowa
was issued by three prominent, in­
fluential businessmen who spoke
during the A g Panel the first morn­
ing of the 97th annual convention of
the Iowa Bankers Association in
Des Moines last month. Speaking as
part of the first morning’s program
dedicated to “ Excellence in A g
Banking,” the panelists gave a
blueprint for positive action in the
state that would serve notice to the
rest of the nation and the entire
world that the center of ag activity
is indeed in Iowa.
Their novel, well-received presen­
tation was part of five business ses­
sions for the convention that at­
tracted more than 2,250 persons.
The convention concluded with the
installation of officers during the in­
augural dinner and floor show the
last evening.
Taking over as 1983-84 president
of the IBA was A1 Maser, president
of First National Bank in Le Mars.
He succeeds L.C. Bud Pike, presi­
dent of Farmers Savings Bank in
Grundy Center, who was president
the past year. Following Mr. Maser
as president-elect is William Logan,
president The State Central Bank in
Keokuk. Richard Randall, president
of Dunlap Savings Bank in Dunlap,
was elected to a two-year term as
treasurer, succeeding Russell W.








Federal Reserve Bank of St. Louis

Spearman, president of the Citizens
Savings Bank in Sac City.
During the meeting of Iowa
members of ABA, Mr. Pike was
elected to a two-year term on the
A B A Council, commencing with the
conclusion of the A B A convention in
Honolulu this month. Iowa’s other
A B A Council member is IBA Past
President (1981-82) Tom C. Dunlap,
chairman of South Story Bank &
Trust, Slater, and of Andrew Sav­
ings Bank, Bellevue, who will be
A B A vice president for Iowa in his
second year on the Council.

Evelyn and Bud Pike
Immediate Past President

Presidential Address
In his acceptance speech, new
IBA President A1 Maser referred to
the challenges resulting from the in­
cursion into banking by outside
financial forces and the impact of
deregulation on every bank. He said
“ the customer will determine what
banks are going to be, and we’d bet­
ter pay attention...It is not only im­
portant to listen to our customers,
but to listen to each other as well.
With this in mind, I will recommend
the establishment of a Task Force of
Iowa bankers. (Its) mission is to find
a politically viable consensus on the
major issues of our industry... a con­

Richard Randall

sensus we can take to our political
leadership in state and federal
governments. A consensus which
demonstrates that Iowa banks
stand united about the concerns for
our industry, profession and our
“ This Task Force must and will
represent banks of every size, and be
representative of the major bank
holding companies and Iowa In­
dependent Bankers Association.”
He concluded by calling on each
Iowa banker, “ to be actively involv­
ed in the political and legislative
Ag Panel
An excellent choice as moderator
of the ag panel was Alan Tubbs,
president of the First Central State
Bank in DeWitt and one of the eight
members of Secretary of Agriculture
John Block’s banker advisory coun­
“ Were going to talk about how
we Iowans might be able to
capitalize on many of those things
which Iowa has going for it - which
stem in large part from Iowa’s
natural blessings,” Mr. Tubbs
“ So much of our nation’s in­
dustry, manufacturing and wealth is
dependent upon someone else to
supply the raw material. Some raw
wealth is exhaustible, notably fossil
fuels and minerals; others are
renewable, notably feed, foodstuffs
and lumber. All other wealth is
value added wealth and is created by
a multiplier effect depending upon
what happens to that raw product.
“ N ew raw w e a lth o c c u r s
miraculously in Iowa every year. It
occurs because we have a natural
resource of the world’s most produc­
tive soil and climate - over onefourth of our nation’s grade A soil is
Northwestern Banker, October, 1983


Iowa News

Some of the Business and General Session Speakers

.. -..I'.;:>■■T* :







in our state. Each year it produces
$ 6-10 billion worth of new wealth to
be shared and multiplied. And as
long as we take care of that resource,
this wealth will continue year after
“ Indeed, Iowa has much more.
We have universities who lead the
world in research, crop production,
bio technology and other areas. We
have one of the most famous
agricultural universities in the world
only 30 miles away and we have peo­
ple, the salt of the earth people who
know what it is to produce and who
still live by a strong work ethic. And
these people’s children go to these
universities and too many bright
minds leave the state because there
are not enough exciting oppor­
tunities at home. Is there something
we can do about this? Even if it
takes some dreams, even if it can’t
happen tomorrow, there are people
on this panel who think there is
something we can do - who have
some ideas, some realistic dreams.
“ These panelists and others in the
Des Moines and Iowa business com­
munity have met and discussed
some of these ideas over the past
several years. The conclusion is we
haven’t done enough to capitalize on
our strengths. There is much more
which might be done to attract
world attention that we are the
for FRASER Banker, October, 1983
Federal Reserve Bank of St. Louis


’0m '


bread basket of the world and in­
dustries, organizations and in­
dividuals who deal with agriculture
should look to the heartland of Iowa.
“ We already have the largest and
most innovative meat packer in the
world here. We have the largest seed
company, we have a huge network of
cooperative elevators, we have a
transportation network including
the Mississippi River.
“ While we have so much - so
much to work with, more might be
done. Iowa needs promotion, it
needs more markets - possibly sell­
ing more of this raw wealth with
value added to it - with more
manufacturing or processing com­
pleted, she needs more quantity and
reliability of markets around the
w orld, p o s s ib ly m ore m arket
development by private initiative as
opposed to strictly government deal­
“ Agriculture has been Iowa’s
basic support, the development of
Iowa as an agri-business center
w ou ld do m uch to su p p o r t
agriculture,” he concluded, then in­
troduced the panel.
He introduced the three panelists:
G ary G erlach, presiden t and
publisher The Des Moines Register,
and executive vice president, Des
Moines Register and Tribune Co.;
John Chrystal, president, Iowa Sav­


ings Bank, Coon Rapids, and John
Ruan, president, Ruan Transporta­
tion and Ruan Financial Corp., and
chairman, Bankers Trust Company,
Des Moines.
Mr. Gerlach said, “ Four years ago
Pope John Paul II came here to
Iowa to see its land and its people.
In his homily he reminded us of the
incredible wealth that we stand on
every day. The Pope told us, ‘You
are stewards of some of the most im­
portant resources God has given the
earth.’ ”
Mr. Gerlach recited a number of
the other values of Iowa—its high
rate of literate people, top writers on
agriculture, its high standing in ex­
ports in relation to its ranking in
population, its high level of leading
research. “ Iowa has been a thought
leader in agriculture for years,” Mr.
Gerlach reminded his audience.
“ That has been true for this century.
We have had four Secretaries of A g­
riculture from Iowa.” He pointed to
other factors such as Iowa’s Winter
Beef Expo in Des Moines, now an in­
ternational show attended by 25,000
persons at the State Fair Grounds
last year; gasohol development, in­
cluding the new plant now under
construction; the People’s Republic
of China buying a packing plant
here; Living History Farms.
“ It’s time,” he said, “ that we

Iowa News


At Bankers Trust reception, from left: Herman Kilpper, pres., Bankers Trust; Joan Houghton; John Ruan, chmn., Bankers Trust, and Bud
Houghton, pres., 1st Natl., Iowa City. RIGHT—Don Jordahf, v.p., Bankers Trust; Jack Campbell, pres., Humboldt T&S, and Verdell, and Ben
(pEilders, sr. v.p., Bankers Trust.

Pictured at Norwest Bank in Des Moines’ breakfast were George Milligan, pres, of the host bank; Jerry Lapke, pres., State Bank of Port^ smouth, and Jo Ann; Lynn Horak, exec. v.p. of Norwest; Bob Buenneke, v.p., Norwest; Jack Rigler, pres., Central State, Muscatine, and
June, and Voldy Vanags, sr. v.p. of the host bank.

Greeting guests at Northern Trust of Chicago reception were Steve White, sr. v.p., and Kitten, and Sally and Curtis Skinner, sr. v.p.
RIGHT—Jim Monhart, comm. bkg. rep., Northern Trust; Lee and Russ Howard, pres., Mahaska State, Oskaloosa, and Bob Grant, comm,
bkg. rep., Northern Trust.

Greeting guests at 1st Natl, of Omaha reception were Fred Kuehl, mktg. off., and Janet; Don Ostrand, v.p., corr. bk. div., and Ginny, and
Bob Meisinger, 2nd v.p., BankCard div. RIGHT—Jim Flodine, 2nd v.p., 1st Natl., Omaha; Ron Schmeits, exec, v.p., Landmands Natl.,
4|i Audubon; Mark Sorensen, ag rep., 1st of Omaha; Roger Underwood, pres., Guthrie County State Guthrie Center; Harris Kruse, a.v.p.,
Sibley State, and Corinne, and Chuck Fries, Jr., v.p.-div. head, corp. & fin. inst. div., 1st of Omaha.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983


Iowa News

LEFT Ag panelists: Moderator Alan Tubbs, pres., First Central State BAnk, DeWitt; John Chrystal, pres., Iowa Savings Bank, Coon
Rapids; John Ruan, pres., Ruan Transportation and chmn., Bankers Trust Co., Des Moines, and Gary Gerlach, pres, and publisher, Des
Moines Register. RIGHT—Three of the bank structure panelists: Muriel Siebert, chmn., Muriel Siebert & Co., New York; Paul Dunlap, pres.,
Hawkeye Bancorporation, Des Moines, and John Evans, pres., AID Insurance Services, Des Moines.

declare Iowa as The World Food
Capital. There is ignorance of this
fact among most Americans because
an old-fashioned picture persists.
The modern, dynamic image is a
long way from that of a muddy hog
house and the back 40. We need
coordination and communications.
Coordination is needed to pull
together our business people,
government people and academi­
cians. There is great power in the
downtown business community and
throughout Iowa. There is great
power in our state government.
There is great power in Iowa State’s
presence, in Drake University’s new
study in A g Law and at the Univer­
sity of Iowa in A g Medicine.”
Mr. G erla ch su g g e ste d an
agricultural skyscraper in Des
Moines, the state capital city, to be
designated as the World Center of
Agriculture. “ I ’ll toss this to John
Ruan,” Mr. Gerlach said with a
smile, in reference to Mr. Ruan’s
leadership in constructing the new
Ruan Tower and Bankers Trust
building, and the new Marriott
Hotel directly across the street,
where the convention was held.
Mr. Chrystal noted that in a re­
cent population report publicized in
the papers, 97 of Iowa’s 99 counties
have lost population. “ Every state
has a Development Commission
that is proud of its schools, its peo­
ple, its churches, its businesses,” he
stated, “ but Iowa does have pre­
eminence in agriculture and we can
establish a goal as designating
ourselves as the center of world
agriculture. But, we need to define
that goal before we can seek it. We
must appreciate fully what a capital
in agriculture is. Accomplishing a

Northwestern Banker, October, 1983
Federal Reserve Bank of St. Louis

goal is difficult and takes a long
time. There are several capitals in
agriculture now—milling, for ex­
ample, in Minneapolis. Our success
will require goals, money, coopera­
tion of the federal and state govern­
ments, the business community and
so forth. The build-up of ITS is an
example of what can be done for
achieving a goal. With the coopera­
tion of various competitive entities
and the government, we achieved
this. The first fruits of what we envi­
sion are valuable to Des Moines and
our larger cities, but Coon Rapids
will ultimately benefit. Everyone
cannot eat at the first table.
“ What we are about will benefit
all of us to differing degrees, but will
keep our young people employed
here. What are our goals? We need
national agricultural offices of
associations here. We need some
federal government and USD A of­
fices here. We must make it attrac­
tive for headquarters of ag corporate
offices to locate here. I think an in­
dustry like Agri-Industries has enor­
mous opportunity to assist in this.
“ We must find ways to convert
basic crops to value added products
in our state and this will mean more
employment. I firmly believe that
western Europe cannot go on spen­
ding more for its food in the long run
than it would spend if bought in the
open market. And, I think we will
get back those markets. We must
develop new technology for this
market, new research in growing,
manufacturing, processing, packag­
ing and shipping. As producers we
can truly become leaders in world
agriculture by becom ing value
Mr. Ruan stressed “ the need for

expanded export-import markets.1
Export activity meets the need to
keep money in Iowa and keep people
employed.” He related a few details
of the formation last March of an
export-import company with s ix 1
companies, and noted that at
Bankers Trust they have formulated
an in te rn a tio n a l d e p a rtm en t.
“ W e’re committed at Ruan,” he
stated, “ what about you?
“ How can you do this? First, re­
view how well you know Iowa. Se­
cond become knowledgable about in­
ternational trade and finance. Third,
when you work with your customer 1
companies, consider urging them to
develop value added business in­
stead of shipping our raw materials
out of state. You bankers are in the
best position to further our cause.
You have the money, you know your
customers, and you finance the peo­
ple in agriculture. To be the World
Center of Agriculture we must earn
it; we can't get it be talking. We
must work to outdo any neighboring
states seeking the same goal.”
Io w a ’ s F irst D is tr ic t C on ­
gressman Jim Leach was unable to
be present as a part of the panel, due
to weather. However, IB A officials
established telephone contact with
him at a W ashington airport
telephone and his remarks were then
tra n s m itte d to the cro w d e d
ballroom. After commenting in
general term s a bou t current
economic and ag conditions, both
here and abroad, Mr. Leach address­
ed specifically the difficult problems
faced in Iowa due to drought and a
poor economy. “ Although many
farmers are eligible for loans,” he
noted, “ most can’t really qualify.
This is a time for Iowa bankers to

Iowa News


Steve Hatz (far left), v.p., and Gene Hagen, (far right), pres., Securi­
ty Natl. Bk., Sioux City, visit with Lewis Lowe, sr. v.p., Hawkeye
Bancorp., and his wife Jean.

Manning the Banks of la. Computer Services exhibit booth were:
John Meehan, terr. mgr.; Mark Budensiek, mktg. dir.; Terri Ketter­
ing, mgmt. sys. anal., and Steve Boes, terr. mgr.

Team Banks of Iowa gathers for the running of the 3 mile and 10
mile event which was co-sponsored by the Iowa Bankers Associa­
tion and Des Moines Register.

Hosting the American Natl. Bk., Chicago, breakfast were: Mike
Jump, v.p., and wife Lauren; Mike Harper, corr. bkg. off., and Mary
Ann and Dennis Reher, 2nd v.p.

Bob Buckley, sales rep., and Jerry Gross, pres., Kirk Gross Co.
visit with Mark Arneson, clhmn., Clear Lake Bk. & Tr., and Don
Curry, pres., Farmers Sav. Bk., Massena.

HBE Bank Facilities representatives John Bodnar and Gerald
Sano visit with Bob Erickson, cash., Farmers & Merchants Sav.
Bk., Waukon.

John Liljedahl, pres., First Natl. Bk., Essex, and Dan Boatman,
pres., Iowa St. Bk., Hamburg, visit with Omaha Natl, executives
Del Olson, v.p., Dan Boehle, v.p., and John Martin, v.p.

Representatives for Marquette Lease Serv., Inc., Mpls. included:
Mike Hay, tr. oper. superv.; Michele LeCuyer, tr. admin., and Mike
Weinberger, lease, rep.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983


Iowa News

South Dakota Gov. William Janklow (second from left) was welcomed by Randy Steig, IBA exec, dir.; J.C. Milner, a South Dakota native and
long-time friend of the Governor, and Neil Milner, IBA exec. v.p. At right, Frank Farrar of Britton, S.D., who has a number of banks in Iowa ®
and surrounding states, and who is a former South Dakota Governor, chats with Gov. Janklow.

make a serious effort to work with
their federal government agencies to
seek a way to help.”

tional hook-up, which will link 4,700
terminals in 27 states, is scheduled
to start soon. Also, he reported that
ITS is discussing a plan with
IBA Business Meetings
IB A President Pike opened the Norwest Corporation for the sharing
convention officially Sunday after­ of that holding companies terminals
noon when the IB A conducted its in Wisconsin, Iowa, Minnesota,
formal business for the association Nebraska, South Dakota, North
and its subsidiaries—Iowa Bankers Dakota and Montana with Iowa
In su ra n ce & S e rv ice s, Iow a bank customers through their ITS
Transfer System, Iowa Bankers cards. Such a linkup, Mr. Millen
Mortgage Corporation and Iowa noted, opens the possibility of great
Automated Clearing House Associa­ expansion because Norwest also is a
tion, as well as for the A B A meeting founding member of CIRRUS, a na­
tionwide network of major banks.
of Iowa members.

D on S n y d e r, p r e s id e n t o f
Manufacturers Bank and Trust in
Forest City, who was elected presi­
dent of IBMC in August, gave a
brief status report on that sub­
Richard G oos, president of
Citizens State Bank, Oakland,
presided at the IBIS meeting. An
excellent in-depth report was given
by A1 Tinder, IBIS president. He
said IBIS is serving a record
number of Iowa banks. He reported
high participation in the health plan
begun last January 1 for retired
bank employees. IBIS, he stated,
also has received an IRS private let­
ter confirming the tax preference
treatment accorded the American
Republic Insurance Co. program
marketed by IBIS as ID EA Annui­
ty. He also said IBIS intends to of­
fer insurance brokerage service to
banks to counter the abandonment
of smaller agencies by some of the
nation’s insurors who don’t want to
deal with smaller agencies anymore.
Bob Millen, president of United
Central Bank of Des Moines, N.A.,
presided at the Iowa Transfer
System meeting. He said the Na­

Northwestern Banker, October, 1983
Federal Reserve Bank of St. Louis

Dale Dooley, president of ITS,
Inc., also gave an optimistic report.
Hy-Vee Food Stores, he announced,
plans to expand its POS pilot pro­
ject into routine use at each store in
the midwest. He gave this report on
ITS volumes: switched volume for
the year ending August 31, 1983,
was 6,800,000 transactions an 84%
increase over the 3,700,000 of a year
earlier, and that one year ago figure
was 91% higher than the increase of
the preceding year. Total transac­
tions this past year were about 23
m illio n , n e a rly d o u b le the
12,500,000 of a year ago. He forecast
a 30% growth rate for 1983-84, but
based on historical factors that
could turn out to be a 65 to 70%
growth, based exclusively on Iowa
consumers. Two outlets in Missouri
have been added—1st National
Bank in Kirksville and Bank of Lan­
caster. There is an ITS outlet in Il­
linois through an East Dubuque
bank, as well as three small banks in
northeast Nebraska, and the billion
dollar Omaha National Bank and its
dozens of terminals in that market.
John Sikkink, executive vice
president, N orw est Bank Des

Moines N.A., in his report for £
IACHA, said private payments
th rou gh IA C H A now ex ceed
government payments. IA CH A has
grown 40% in volume in each of the
past two years.
Other Ag Speakers
Opening speaker for the E x­
cellence in A g Banking morning pro­
gram was Richard Kautz, chairman, q
Grain Processing Crop./Kent Feeds,
Inc., Muscatine. He said present
fa rm p r o g r a m s d o n ’ t se rv e
agriculture and new ones are needed.
He said “ we must send signals o
abroad that we’ve overcome the pro­
blems of overproduction.”
Sen Fritz Hollings (D.,S.C.) an an­
nounced presidential candidate,
criticized the present administration #
for all of its policies—economic, ag
Congressional and foreign. He said
“ our government should guarantee
our farmers the price of their pro­
Capital Pursuit
The “ Capital Pursuit” event, co­
sponsored by IB A with The Des
Moines Register, got the convention
off to an early start—at 7:30 a.m.
Sunday morning. More than 900
persons took part in either the three
or 10-mile runs. Dr. Art Mollen,
M.D., a columnist in The Register, 4)
was fogged in at another airport and
was unable to lead the run as plann­
ed; however, he completed his daily
10-mile run shortly after arriving in
Des Moines. He was the concluding
speaker for the convention Tuesday
Structure Discussed

Iowa News


Welcoming guests to the First National Bank of St. Paul dinner
were: Sis and Mike Mishou, v.p.; Susan and Dick Flesvig, a.v.p.,
and Judy and Clay Johnson, v.p.

Representing Financial Systems, Inc. of Kearney, Neb., were Ken
Meredith, sales & support coord., Jon Cole, exec, v.p., and Dave
Stochl, la. sales rep.

Bill Graeves, v.p., Ken Danilson, v.p., and Cyrus Kirk, v.p. all with
UCB Des Moines visit with Ann Doyle, v.p., and Dan Doyle, pres.,
Wellman Sav. Bk.

Hosts for the First Bank Minneapolis luncheon Included: Tony
Crea, a.v.p.; Mike LaVIgne, a.v.p. and his wife Kathy and Dave
Williams, v.p.

Neil Milner, exec, v.p., la. Bkrs. Assn, and wife J.C.; Evelyn and
Bud Pike, I BA pres, and pres., Farmers Sav. Bk., Grundy Center;
Jackaline and Paul Dunlap, pres., and Linda and Steve Jones, sr.
v.p., Hawkeye Bancorp, enjoy the setting of the Des Moines
Botanical Center during the Hawkeye reception.

Mike Tramontina (far left) and Steve Miller (far right), deputy
treasurers, State of Iowa, visit with Elyce and Dave Walthall,
pres., Hawkeye-Capital Bk. & Tr., Des Moines.

Gerald Swan, dir., First Natl. Bk., Creston. and John Juergens,
pres., Farmers Sav. Bk., Colesburg enjoy a shine at the Hawkeye
Bancorp, booth.
Federal Reserve Bank of St. Louis

Art Joura, pres., (center) and Don Jones, v.p., (second from right)
Data Business Equip., Des Moines, visit with Dave Hill, pres., Gary
Hested, exec. v.p. and Lou Luiken, off. mgr., Farmers St. Bk.,
Northwestern Banker, October, 1983


Iowa News

LEFT—Convention Speakers Anat Yalif (left) v.p.-corp. planning, Marine Midland Bank, New York, and Dr. Art Mollen, M.D., with Peg Vial,
office mgr. trng. dir., Brenton Natl., Des Moines, official hostess for Anat Yalif. RIGHT—Dr. Mollen with three IBA staff members (from ®
left): Alda Post, Sharon Glass and Sherri Parke.

Challenging & Changing Industry
were two guest speakers and a panel
of five persons.
A B A President William Kennedy,
chairman of the National Bank of
Commerce in Pine Bluffs, Ark.,
reviewed various bills up for grabs
in the Congress and announced that
the A B A Leadership Conference
recently voted to support the A d­
ministration Bill, which give banks
the power “ to get the things we
need.” He said a moratorium was
voted down at the Conference. He
stressed the importance of having a
unified banking voice in coming ses­
sions to achieve the maximum
benefit for all banks in the face of
continuing unfettered competition.
South Dakota Governor William
Janklow proved himself just as
direct as Iowa bankers anticipated
he would be. Referring to Citicorp’s
move of its credit card business to
South Dakota, he said: “ they now
have 1,000 to 1,200 employees and
soon will have 1,500—doing what
would have needed 2,000 to 2,400 in
New York. The work ethic of the
midwest has proved itself. With
New York costs, due to the limita­
tion on what Citicorp could charge,
they were losing $124,000 a day.’ ’
He indicated the credit card opera­
tion now is operating in highly pro­
fitable black ink, with a projection of
“ $100 million in credit card opera­
tions this year.’ ’
Governor Janklow recounted,
without reference to any notes,
details of what all the non-bank
financial business firms have been
doing to take away the banking
business. “ Y o u ’ d have to be
stupid,’ ’ he said, “ not to recognize
that this is what your competition

Banker, October, 1983
Federal Reserve Bank of St. Louis

is—not the First Bank Systems, not
the Hawkeye Bancorporations, not
the other types of large banking con­
cerns...There is a special kind of rela­
tionship in community institutions
like banks and insurance agen­
cies—a special kind of trust. I don’t
advocate relinquishing all banking
The panel was moderated by
Hank Koehn, vice president, futures
research division, Security Pacific
National Bank, Los Angeles. The
panelists were: Paul Dunlap, presi­
dent, Hawkeye Bancorporation, Des
Moines; John Evans, president,
A ID Insurance S ervices, Des
Moines; Dr. Allen Lipis, president,
Electronic Banking Inc., Atlanta,
and Muriel Siebert, chairman,
Muriel Siebert & Co., New York.
The thought-provoking, keynote
speech for the panel was given by
Mr. Dunlap. He spoke bluntly and
directly to the inroads into Iowa
banking turf by giant financial en­
tities from major money centers—
banks and non-banks alike, and to
the continuing steps by Iowa bank­
ers to protect their business from
outside competition. He then stated:
“ For we 643 small banks in Iowa,
the walls we have built so high have
accomplished one thing—we have
imprisoned ourselves, unable to
cross our own borders and compete
in a larger environment. We can’t
isolate Iowa banking from the rest
of the world, no matter how high we
build the walls. However, we can
cause our own demise by being
afraid to allow ourselves the right to
go outside of Iowa and slug it out on
the turfs of Minnesota, Illinois,
Missouri and Nebraska.”
Mr. Dunlap added, “ If we look

out to the year 1990, most of us in
this room will readily admit our
world will be quite different from
what it is today. Change doesn’t
mean tomorrow will be better or
worse. All it means is it will be dif­
ferent. How we react to change will
determine if tomorrow is better or
worse...If you stop and think about
the scenario and ask yourself the
question—‘What is the greatest
danger to my bank here in Iowa?’—I
would submit the answer has to be
that we sit and watch what is occurr­
ing and we ourselves don’t cause our
own institution to do anything dif­
ferently... You know, the dinosaurs
waited and hoped the weather would
Iowa Governor Terry Branstad
opened the Tuesday morning ses­
sion with a brief update on what is
being done to improve the employ­
ment situation in industry and
what’s being done for development
of the state. He thanked IBA Presi­
dent Bud Pike for responding im­
mediately and affirmatively when
the Governor called Mr. Pike several
weeks ago at the last hour and asked
him to be one of five members of the
new Racing Commission authorized
by the state legislature (after one of
the original five had to decline at the
last minute). Governor Branstad
also thanked the IB A for its conti­
nuing attitude of cooperation.
The bulk of the morning program
was given over to Dr. Spencer
Johnson, co-author of The One
Minute Manager. His extended
presentation relied heavily on au­
dience p articipation , stressing
behavioral patterns.
U.S. Secretary of Transportation
Elizabeth Dole was the final speaker

Iowa News




Arlys and Bud Precht, chmn. & c.e.o., Norwest Bank Des Moines,

John Benz, pres., Melvin Savings; Marie and Stan Smith, chmn..
Rock Rapids State; Lee Bachand, sr. v.p., and Sam O’Keefe, exec,
v.p., Norwest Bank Omaha; Judy Bachand and Joan Benz.

Jim Figge, exec, v.p., Davenport B&T, and Sandy; Ellis Barber,
pres., DeWitt B&T, and Myrtle, with Mike Bauer, 1st v.p., Daven­
port B&T, and Judy.

Hosts at Drovers Bank of Chicago reception were: Frank Bauder,
chmn., and Vickie; Ruth and Jim Carmody, pres., and John Crotty,
sr. v.p.

Bud Cross, v.p., and Paul Gargula, corr. bk. off., 1st Natl.,
Chicago; June and Ken Burke, sr. v.p., Citizens 1st Natl., Storm
Lake; Betty and Morris Neighbor, pres., Farmers State, Marion,
and Dave Varnerin, a.v.p., 1st N a t. Chicago

Hill Hammock, exec, v.p., LaSalle Natl., Chicago; Lynn Fuller,
pres., Dubuque B&T; Wayne Bismark, a.v.p., LaSalle Natl., and
Gary Stevenson, v.p., 1st Natl., Sioux City.

41 visit with Harold Godbersen, chmn., Ida County State, Ida Grove.





John Van Dyke, chmn., Toy Natl., Sioux City; Brad Young, chmn.,
Iowa T&S, Centerville, and Bob Vasko, v.p., Continental Bank,
Federal Reserve Bank of St. Louis

Cliff Carlson, v.p., Farmers State, Merrill, visits with Nat
Rosenberg, mktg. dir., Cardpo Services, Inc., Westmont, III.
Northwestern Banker, October, 1983


Iowa News

LEFT—Elizabeth Dole (third from left), U.S. Secy, of Transportation, is pictured with IBA staff hosts, from left: Marie Wilson, dir. of
educ./ human resources; Wes Ehrecke, govt, rel./mktg. dir., and Neil Milner, exec. v.p. RIGHT—Helping staff IBIS exhibit were Millie Uding,
Bill Carr and Margie Schaefer, all v.p.s.

on Tuesday morning. She said
Iowa’s share of the 5<t increase in
gasoline taxes is $73 million. She
said the $10 billion price tag for
revising air control landing methods
will lead to a $75 billion savings at
the end of a decade, and also said
that higher user fees on inland
water-ways will be needed before de­
sired improvements can be made.
The final business speaker Tues­
day afternoon was Anat Yalif, vice
president for corporate planning at
Marine Midland Bank, New York.
Prior to joining that bank earlier
this year, she was in charge of a
research project at Arthur Young on
behalf of A B A to identify the best
markets in which banks could ex­
pand and capture a good market
share. In her Iowa presentation, she
relayed the findings of that study,
which has been widely publicized.
An aside to bankers who did not
know the speaker before she ap­
peared on the platform is that Anat
Yalif is a sparkling, happy person
with doctoral and master degrees
from leading eastern American
universities who portrays none of
her childhood experiences in Israel
where, growing up as a child, she
routinely carried guns with her to
school and work since all youngsters
had to be trained in armed defense.
Crammed into the action-packed
three days of the convention were
outstanding entertainment events.
Sunday night Johnny Cash turned
in two outstanding performances for
Iowa bankers at the Civic Center.
The Nostalgia Night on Monday
evening at the Hotel Fort Des
Moines offered traditional ballroom
dancing to music of the ‘ 30s and
‘40s, while across the hall other

Northwestern Banker, October, 1983
Federal Reserve Bank of St. Louis

generations could have a lively time
in their jeans, saddle shoes and let­
ter sweaters while rocking to the
music of the ‘ 50s and ‘60s. The con­
cluding evening’s Inaugural Dinner
and Show was a black tie, semiformal affair that drew a packed
ballroom at the Marriott.
Any report on the Iowa conven­
tion couldn’t be concluded properly
without mention of the truly
outstanding job done by the IBA
staff in preparing for the conven­
tio n —from details that made
registrants’ more at home, to the
planning for the speaking program.
Many staff hands were involved and
they deserve kudos from the

Waterloo Elections Told
Peoples Bank and Trust Com­
pany, Waterloo, recently announced
the election of Alan C. Schmeidel to
assistant vice president of the opera­
tions division, and Mary E. Winkey
as consumer loan officer-lending



Mr. Schmeidel joined the bank in
1979 as an assistant cashier and
operations officer.
Ms. Winkey joined in August of
this year from Farmers State Bank,

BMA’s lowa-Nebraska
Chapter Sponsors Program
The lowa-Nebraska Chapter of
the Bank Marketing Association in­
vites bankers to attend a program
October 18 at the Omaha Marriott,
featuring Murray Raphel’ s Ten
Golden Rules of Financial Advertis­
Bankers may obtain more infor­
OVER 900 runners helped kick-off the 1984 mation on this program by contac­
Iowa Bankers Association Convention with ting David Simmons, executive vice
their participation in “ Capital Pursuit.” Co­ president, Fremont National Bank,
sponsored by the Iowa Bankers Associa­
152 E. 6th St., Fremont, Neb. 68025.
tion and the Des Moines Register, the event
combined a three-mile fun run with a The program fee is $35 for members
and $50 for non-members.
10-mile advanced run.

Iowa News



The reception line for the United Central Bank of Des Moines
breakfast included: Jim Eiler, sr. v.p.; Oliver Hagen, exec, v.p.,
United Central Bancshares; Ken Myers, chmn., and Happy and
Bob Millen, pres. & c.e.o.

Dave Strautz, v.p , First Tr. & Sav. Bk., Remsen, and wife Kathy;
Carol and Lloyd Schultz, v.p., State Bk., Spirit Lake; Tom
Hromatka, info. sys. off., and Ron Kiel, corr. bkg. off., Security
Natl. Bk., Sioux City with guest Sylvia DeZeeuw.

Dean Schantz, pres., First Natl. Bk., Colfax, visits with Bob Atess,
dist. mgr., US Life Credit Life.

Dave Crew, sales & serv. rep.; Jim Grimes, pres., and Jerry
McPhillips, sales rep., Brandt Systems, Omaha.

Chris Hansen, dir., and Ellis Barber, pres., DeWitt Bk. & Tr., visit
with Craig Bishop, inv. counsel, F & M Marquette Natl. Bk., Mpls.

Bernie Miller, corr. bkg. off., American T&S, Dubuque, with his
wife, Dee, and Don Erusha, pres., Solon State.

Arne Lillehamer, eng. & mktg., NCR, Clemson, S.C., demonstrates
use of POS gas pump to Bob O’Meara, exec, v.p., Merchants Natl.
Bk., Cedar Rapids and Jim Schulte, dist. mgr., NCR, Des Moines.

Dick McMuilin, v.p., and John Kavalier, exec, v.p., with State Bk. of
Toledo visit with Office Concepts representatives Jim Jones and
Ross Schoonover.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983


Iowa News

Jeanette and Dick Taylor, pres., First Natl. Bk., Sioux City, and
Henry Royer, pres., Merchants Natl. Bk., Cedar Rapids, and his
wife Ann welcome guests to the Banks of Iowa reception.

Enjoying the United Missouri poolside reception were: Tom
Smith, pres., Fidelity Brenton Bk. & Tr., Marshalltown; Dick Muir,
v.p., Lyle Wells, v. chmn., and Phil Straight, exec, v.p., all with
United Missouri, and Carol and Don Kelley, pres., Early Sav. Bk.

John Tans, v.p., M & I Bk., Milwaukee, with Kathy Caveney, comp.
serv. off., and Chuck Roum, v.p., M & I Data Serv., Milwaukee.

Larry Glass, v.p., Sue Andersen, prod, mgr., and Steve Turner, EFT
off., UCB Systems, Des Moines.


Ed Herrman, pres., and Rhonda Griffiths, sales rep., Electronic Office Systems, Des Moines.

Gary Woods, pres., Manilla St. Bk., and wife Jana visit with John
Wear, 2nd v.p., and Loreene Lane, staff asst., Omaha Natl. Bk.

Northwestern Banker, October, 1983
Federal Reserve Bank of St. Louis

IAC Group field directors for the Des Moines office include Craig
Ross and Mark Havemann.

Jean Eden and Linda Heit, employment
AGRIcareers, Inc. of New Hampton.

specialists with


Tb correspondent banking
services at American
Trust and Savings
American Thast and Savings Bank has
the ingredients to make your bank more
In todays 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 TVust and Savings. Our
Correspondent Banking Team and Tfust
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
Tax shelters
Unincorporated pension plans

Bemie Miller,
Correspondent Banker

American '/Trust 0 Savings Danl^
The Danl^qf O pportunity
Town Clock Plaza, Dubuque, Iowa 52001 • 319/582-1841
Federal Reserve Bank of St. Louis

Member FDIC and FRS
Northwestern Banker, October, 1983


Iowa News

Continental Hosts Golf Outing

Continental Illinois National Bank was the host of a golf outing held at the Wakonda Club in Des Moines last month. Shown above ^
discussing the discrepancies in attested handicaps and posted scores were, from left: Bob Vasko, v.p., Continental Bk.; Woody Brenton,
v.p., Brenton Natl. Bk., Des Moines; Bob Walker, sr. v.p., Bankers Trust Co., Des Moines: Tom Dunlap, chmn., Andrew Savings Bk., and Bob
Ralston, pres., First Natl. Bk. of West Union. Bob Holland, v.p., Continental Bk.; Don Martin, v.p., Central State Bk., Muscatine; Roger
Rinderknecht, pres., Brenton State Bk. of Jefferson; Woody Brenton, and Larry Rolfstad, pres., Brenton Bank & Trust Co., Vinton.

Sac City State Bank
Names New Vice President
Gary Gilliland has joined the Sac
City State Bank as vice president,
announced George H. Pingrey,
president. Mr. Gilliland replaces
Larry Reding who resigned recently
to accept a position with Des Moines
Mr. Gilliland has been employed
by the National Bank of Monmouth,
Illinois, for the past 14 years and is a
graduate of Monmouth College with
a BA in economics and business ad­
ministration. He is also a graduate
of the National Commercial Lending
School and the National Commercial
Lending Graduate Schol, University
of Oklahoma.

Estherville V.P. Named
United Central Bank & Trust
Company, Estherville, has announc­
ed that Phil Ken­
nedy will be join­
ing the staff as
vice president
and agricultural
Mr. Kennedy
has been em ­
ployed the last
four years at
H om e
S ta te
Bank of Jeffer­
son where he was agricultural loan
officer and farm manager. Prior to
that he served as vocational ag in­
structor both in Estherville and Jef­

Joins Corning Bank
James W. Hoffman, president of
Okey Vernon First National Bank of
for FRASER Banker, October, 1983
Federal Reserve Bank of St. Louis

Corning, has annonced the addition
of Scott Nolan to the bank’s staff.
Mr. Nolan was graduated from
Iowa State U niversity in ag
business and finance. He joins
Daniel J. Ricke of Westside, who
started with the bank at an earlier

Credit Life Licensing
School ■ Oct. 24-25
A Credit Life Licensing School
will be held October 24-25 at the
Iowa Bankers Insurance and Ser­
vices, Inc., Des Moines.
The s ch o o l w ill run from
12:30-5:00 p.m. on the 24th and from
8-12:30 and 1:30-5:00 on the 25th.
Examinations will be held on
Wednesday, October 26, at various
times throughout the day.
Study materials will be handed
out at the school, however, it is
recommended you obtain an Iowa
Agent’s Study Manual to use for
study prior to attending the classes.
For information and registration
contact: Jeanette M. Ellington,
Iowa Bankers Insurance and Ser­
vices, Inc., 400 Financial Services
Bldg., 508 Tenth St., Des Moines,
Iowa 50308.

Pilot Grove H.C. Buys
Citizens State, Donnellson
A newly-formed holding com­
pany, Pilot Bancorp of Pilot Grove,
has purchased the Citizens State
Bank of Donnellson and is con­
solidating it with the Pilot Grove
Savings Bank. Present offices of
Citizens State Bank will serve as a
Donnellson office for the Pilot Grove

Daniel A. Steffensmeier, president of Pilot Grove Savings Bank
will continue as president. He said
Doug VanDyke, who has been presi­
dent and chief executive officer at
D on n ellson , w ill con tin u e as
manager of that office and will
become vice president of the Pilot
Grove bank. Louise G. Dingman is
cashier of Pilot Grove Savings
Bank. Mr. Steffensmeier stated that
all other personnel would continue in
their present duties with the merged
Pilot Grove Savings Bank has
deposits of $25 million, while Donnellson had $15 million, for a com­
bined bank total of $40 million
deposits and $45 million in assets.
Both banks are in Lee County in ex­
treme southeastern Iowa.

Named in Traer
Fred L. Lineberry has been named
senior vice president and farm repres e n s t a t iv e o f
F arm ers S a v ­
ings Bank in
Traer, announc­
ed William C.
Talen, president.
Mr. Lineberry
joined the bank
in 1968 as cash­
ier and farm rep­
resentative and
in 1973 w as
named vice president. He was
graduated from the University of
Missouri with a BS in agriculture,
the agricultural credit school, spon­
sored by the Iowa Bankers Associa­
tion at the Iowa State University, in
1970, and the Colorado School of
Banking in 1974.







Let Dwaine Stinger, Vice
President, or R om a Kroll,
Assistant Vice President,
show you how their experi­
ence can help you get fast
action in handling Federal
funds transactions, m on ey
transfers, security purchases
and sales.

Gary Stevenson
Vice President


Choose one of our services or as many as you need:

You get an accurate, efficient system for
obtaining the best availability of your funds to
help increase the profitability of your bank.
You get a full range of loan services including
overline and liquidity loans, assistance with your
ag loans, commercial loans and others.




You get a total program for both MasterCard
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First National Bank m

MEMBER FDIC • 712-277-1500 • Sioux City, Iowa 51101 • A BANKS OF IOWA’ BANK
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983


Iowa News

ATM’s Installed at Three
Davenport Food Stores
Northwest Bank & Trust Com­
pany, Davenport, has installed
automatic teller machines at three
Geifman Food Store locations:
Kimberly & Eastern, Rockingham
Road and Kimberly & Division.

PICTURED at the recent ribbon cutting
ceremony held at the Geifman Food Store
at Kimberly & Division in Davenport are:
Richard Geifman (left) and Sam Geifman.

A ribbon cutting ceremony was
held at 10:00 a.m., August 29 at the
Kimberly & Division store to kick­
off the week-long activities planned
by Northwest Bank & Trust Com­
pany and Geifmans Food Stores.
P atrons receiv in g an A T M
demonstration were able to register
for $100 worth of groceries given
away by Northwest Bank. Also free
food samples and coupons for free
merchandise were given away
throughout the week.

Iowa Colleges Ask Banks
To Match Special Grants
Iowa College Foundation is cur­
rently beginning the second year of
a unique matching program for
banks in the state, according to
Roger Hughes, the Foundation’s ex­
ecutive director.
Five of Iowa’s largest financial in­
stitutions—Bankers Trust Com­
pany, Banks of Iowa, Hawkeye Bancorporation, Norwest Bank Des
Moines and United Central Bancshares—joined together in 1982 to
provide a fund to match new or
reinstated contributions to ICF
from Iowa banks in amounts rang­
ing from $125 to $500. The purpose
of the program is to encourage the
participation of non-contributing
banks and to increase the pool of
for FRASER Banker, October, 1983
Federal Reserve Bank of St. Louis

available annual funds for distribu­
tion to the Foundation’s 24-member
private colleges and universities.
Mr. Hughes said that in the
matching program’s first year, 24
banks were added to ICF’s donor
list, bringing the total number of
contributing banks in Iowa to 264,
or 40% of the total number of banks
in the state. The goal is to reach 400
contributing banks by June 30,
The current solicitation strategy
for the matching program calls for a
combination of mailings, phone calls
and personal visits. The effort is
under the direction of the Bankers
Advisory Comittee of ICF, which in­
cludes 20 bankers across the state,
or two in each banking group. Serv­
ing ICF in this capacity are:
Group 1 - John F. Gronstal
R.E. Hagen
Group 2 - Rodney Amlie
Earl J. Underbrink
Group 3 - M.A. Arneson
Robert R. Rigler
Group 4 - Christy F. Armstrong
Rudolph A. Leytze
Group 5 - H. Rand Petersen
Ed H. Spetman
Group 6 - G.M. Barnett
William H. Brenton
Group 7 - W. Louis Beecher
Charles Kramer
Group 8 - Dean Duben
John B. Rigler
Group 11 - Charles Eastburn
Thomas H. Huston
Group 12 - James H. Crane
Jean T. O ’Neill
Since its founding in 1952, ICF
has raised a total of $14,140,293 for
distribution to its member colleges,
and more than 500,000 students
have been the beneficiaries. Collec­
tively, these schools represent a $2
billion impact on Iowa’s economy.

Alden State Bank Sold
Leo Jorgensen, president of Alden
State Bank, Alden, has announced
the sale of the bank to Jim Coonley,
II, his brother John Coonley, and
Lyle Meyer. Jim Coonley and his
brother are attorneys officed in
Hampton and have interest in the



"Accepted Sale Registers by Bank
Clerks Everywhere”
Tor information write

Oakland, Iowa

S h e ffie ld S a v in g s B ank and
Farmers State Bank in Dows. Mr.
Meyer is executive vice president of
the Farmers State Bank in Dows.
No personnel changes are ex­
pected. The bank sale is subject to
regulatory approval.
Mr. Jorgensen will continue to
serve on the bank’s board of direc­

FBS Ag Credit Corp.
Opens Iowa Offices
FBS Agricultural Credit Corpora­
tion, the agricultural finance subsi­
diary of First
Bank System ,
Inc., has opened
new offices in
Cedar R a p id s
and S p e n ce r.
The C om pany
already has of­
fices in Mason
C ity, M in n ea­
polis, Minn., and
Billings, Mont.
Michael P. Septer, vice president
and manager of the Iowa region has
announced the following elections:

Richard L. Brown, elected assis­
tant vice president and manager of
the Cedar Rapids Office. Mr. Brown
previously was a farm mortgage
broker working primarily with Bell
Investment Company, Burlington.
He began his agricultural lending
career in 1971 in the farm mortgage
division of Metropolitan Life, Cedar
David N. Cronk, elected assistant
vice president and manager of the
Spencer Office. Mr. Cronk has most
recently been associated with
Centerre Bank, St. Louis, Mo.,
where he served as a commercial
banking officer in the agricultural
finance division.
James W. Davids, elected assis­
tant vice president and manager of
the Mason City Office. Mr. Davids
previously was manager of the
Forest City branch office of the Pro­
duction Credit Association.


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In the past, banking was simple — buy low
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Banks o f Iowa Com puter Services, Inc.
A “ Banks of low a" subsidiary.


Iowa News

New Branch Manager Named
Craig Bentrott, president of
Hawkeye Bank and Trust in Maquoketa, has announced that Pat
Hutchins has joined the bank as of­
fice manager of the Bernard branch.
Mr. Hutchins is a Bernard native
and recently graduated from Loras
College in Dubuque with a degree in
management and business ad­

Three Named in Urbandale
Lucille Johnson has been ap­
pointed as vice president and mana­
g er
th e
Johnston Office
of Brenton Bank
and Trust Com­
p a n y , U rban dale.
Mrs. Johnson
has been with
Brenton Banks
nearly 20 years.
During her ten­
ure she has serv­
ed the bank as head of nearly all of
its operating departments as well as
bank cashier. Additionally, she has
managed Brenton East, the bank’s
consumer lending department and
has served as the bank’s marketing



In addition, Barry S. Major has
been elected assistant vice president
and Stuart McKee has been elected
manager of the Uptown Office.
Mr. Major joined the bank’s staff
this year after having spent several
years as an examiner with the
FDIC. He will be involved with the
bank’s commercial and consumer
lending activities.
Mr. McKee also joined the staff
this year. He is a graduate of Grinnell College in economics.

for FRASERBanker, October, 1983
Federal Reserve Bank of St. Louis

Indianola V.P. Appointed
To Iowa Jobs Commission
Norma Harmison, vice president
of Warren County Brenton Bank &
Trust, Indianola, has been ap­
pointed for a two year term as one of
the five members of the Iowa Jobs
Commission by Governor Branstad.
The Governor had previously ap­
pointed Ms. Harmison as one of the
five people representing business
and industry, on a 15 member State
Job Trianing Council.

recently has served as first vice
president at the bank.
The dinner originally was planned
for June, his anniversary date with
the bank, however it was postponed
until late July because Mr. Tietjens
underwent open heart surgery
earlier this summer.

Peoples Bank to Create
Financial Services Division

R.K. Sverdahl, president of
Peoples Bank and Trust Co.,
Waterloo, recently announced the
Iowa Banks Accepted In SBA bank’s plan to create a new banking
division that will begin offering a
Certified Lenders Program
wide range of expanded financial
Conrad Lawlor, district director, services on an individual, personaliz­
Small Business Administration, Des ed basis to its customers.
Moines, announced that five Iowa
Although complete bank plans
banks have been accepted into were not released, the new division
S B A ’s Certified Lenders Program.
will include Peoples Bank Brokerage
Banks accepted are: Norwest Services, Business Development
Bank Fort D odge, N .A., and and Cash Management Services.
American State Bank of Fort
To begin staffing the new divi­
Dodge, Toy National Bank and sion, Robert F. Pedersen, formerly
Security National Bank of Sioux manager of the Kimball Office, has
City, and Jasper County Bank of been transferred to the new division
and Robert E. Manning has joined
Under the program, private the bank as of September 1.
lenders (almost all of whom are
Mr. Pedersen has been employed
banks) do much of the paper work at Peoples Bank since 1973 and has
and supervision of small business worked in various positions within
loan applications and subsequent the bank.
loan servicing. Eleven financial in­
Mr. Manning has been marketing
stitutions in the Des Moines district director for Young Development
have received certification. The Des Company, involved with real estate
Moines District Office serves the sales and apartment rentals.
western 70 counties of Iowa. Na­
tionally, there are now more than
500 private lenders involved in the
program which began in 1979 with Hartwick Number Changed
29 banks.
The Area Code for Hartwick State
In making the announcement that Bank has been changed to 319. q
these banks have been named as Previously it was 515. The balance
Certified Lenders, Mr. Lawlor of the phone number remains the
stated, “ This distinction is given same, so the full correct number now
only to ou tstan din g financial is 319/525-2221. The Cooperative
organizations that have earned the Telephone Co. in Victor made the q
highest respect and confidence of change recently, moving the town of
our staff and passed the most strin­ Hartwick into the eastern Iowa 319
gent requirements in quality of loan Area Code.
presentations, completeness in loan
closing, and judgment in servicing
Named in Cedar Rapids
of loan portfolios.’ ’
Merchants National Bank, Cedar
Rapids, has named Richard E. Retz
vice president. He will
Teeds Grove Banker
serve as an agricultural consultant q
Honored for 50 Years
in the correspondent bank depart­
Employees and board members of ment.
Teeds Grove Savings Bank recently
Mr. Retz joined MNB in July of
attended a dinner to honor Ben Tiet- this year. Prior to that he was vice
jens for his 50 years of service to the president and trust officer at Home £
bank and community. He most State Bank in Jefferson.


The problem with most
bank insurance is that it wasn't
conceived by bankers.
There are farmers’
insurance companies
and firemen’s insurance
Even companies
founded by travelers.
But IBIS insurance
was designed by Iowa
Bankers only for
Iowa banks. In fact,
IBIS is owned by all Iowa
A n d dollar for dollar,
you can’t do better.
W hether it’s property
and casualty insurance
or creditor protection.
Employee group health,
life, or disability.
IBIS professionals
tailor each plan to meet
your bank’s needs.
Federal Reserve Bank of St. Louis

A t rates you don’t
be a banker to appreciate.
Dividends? Last year
we paid over $475,000 to
Iowa banks.
For more information,
call T800-532T423
tolbfree. A n d find out how
much better insurance from
bankers can be.

400 Financial Services Building, 508 Tenth Street, Des Moines, Iowa 50308

Northwestern Banker, October, 1983


Richard C. Remer has been
elected vice president and head of
the retail division and Rick E.
Miller, assistant vice president in
the lending division of Valley Na­
tional Bank.

Mr. McPhillips has represented
Brandt for over 20 years in Iowa,
South Dakota and Nebraska. He is
well known to many bankers in this
area and will be responsible for sales
of the entire Brandt line of money
processing systems.



Mr. Remer had previously been a
senior vice president and director of
Northwest Brenton National Bank.
He is a graduate of the University of
Iowa, where he received an M A
degree in economics.
Mr. Miller formerly was with the
Small Business Administration in
St. Louis. He has a BS degree in
bu sin ess a d m in istra tion from
Towson State College, Baltimore,
James O. Grimes of Money Han­
dling Machines, Inc., authorized
B r a n d t S ales
S e r v ic e ,
h ea d q u a rte re d
in Omaha, Neb.,
r e c e n t ly
nounced the ap­
p o in tm e n t o f
Jerry McPhillips
as sales repre­
sentative for the
Des Moines ter­
for FRASERBanker, October, 1983
Federal Reserve Bank of St. Louis



Diane Benoit has been elected ad­
ministrative officer for Brenton Na­
tional Bank.
Ms. Benoit, who previously had
been an officer trainee, will be
responsible in the areas of ad­
ministration, coordination, research
and policy and program develop­
ment relating to specialized opera­
tional areas within the bank.
* * *
Shirley Poertner, training officer
at United Central Bancshares, Inc.,
has completed the certified leader
training program sponsored by the
N ational A ssociation of Bank
Women. The intensive two-and-ahalf day session was held August
19-22 at Lake Forest College outside
of Chicago.
The program is designed to
develop a core group of membertrainers who can both lead and teach
others to lead N ABW seminars,
workshops and other educational
Ms. Poertner is one of 46 par­
ticipants chosen on the basis of
leadership potential, involvement in
NABW and previous training ex­
* * *
United Central Bank of Des
Moines, N.A., recently announced
several elections.

Phillip S. Rowley has been named ^
senior vice president and chief finan­
cial officer in charge of the finance
and investments divisions. Mr.
Rowley joined the bank August 1 of
this year and previously served as f
senior vice president and chief finan­
cial officer of the First Interstate
Bank of Denver, Colo.
Marjean L. Peterson has been
named vice president and manager £
of the real estate and mortgage len­
ding division. She joined the bank
August 15 of this year and previous­
ly was corporate secretary in charge
of the real estate lending depart- q
ment at the Ames Savings and Loan
Association, where she had been
since 1971.
Gary C. Calvert was named
manager, consumer loans, and 0
Claudia S. Conrad, manager of the
South Des Moines Office.
Mr. Calvert joined the bank in
1970 as a management trainee. In
his new position he will supervise all #
direct consumer and commercial
loans underwritten at the various
retail locations. Ms. Conrad joined
in 1979 as a teller and most recently
served as a custom er service #
representative II.

Hills Officer Named
Carol J. Michel has been named a •
customer service officer of Hills
Bank and Trust Company, Hills.
Mrs. Michel is a 1972 graduate of
the University of Iowa and joined
the bank in 1974. She will head the ®
customer service department of the
bank’s Iowa City office.

Application Approved


The Federal Reserve Bank of
Chicago has aproved the application
of Luana Bancorporation to acquire
Luana Savings Bank, Luana.

Peoples Bank
Sponsors Seminars
Peoples Bank and Trust Com­
pany, Waterloo recently sponsored q
two seminars on personal money
management for its “ 55 & Better”
customers and for IRA and Keogh
customers, at the ConWay Civic
Fred J. Young, former vice presi­
dent and administrator of the in­
vestment service division of the
trust department at Harris Bank in
Chicago and author, was the £


United Central
Bank’s Personalized Dis­
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provides your bank with
an excellent new source
of fee-based incom e,
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maintains primary con ­
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miles away.

Your customers
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personalized discount
brokerage service will
appeal to your high net
worth, high incom e cus­
tomers, giving you a
competitive advantage,
an expanded relation­
ship, and a profit base
that you can continue
to build on.

If you ’d like more
information about how
Personalized Discount
Brokerage Services can
work for you, contact a
UCB Correspondent
Banker at


Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1983


Iowa News

IBIS Hosts Golf Outing

FORE! Over 100 Iowa bankers recently participated in one of two golf tournaments co-sponsored by Iowa Bankers Insurance and Services,
Inc. and The Credit Life Insurance Company of Springfield, Ohio. Held in Waterloo and Carroll, the golf events included the usual charges
by the losers of “ sandbagging” and less than honest play by the winners. Pictured above at the Carroll Country Club are: (left -right)—IBIS
President Al Tinder; The Credit Life Insurance Company Vice President Jack Hawkes; Guest Speaker Iowa State Basketball Coach Johnny
Orr, and IBIS Vice President Gary Livesay. Leading the list of non-trophy winners at Carroll (sans gallery) are; Bill Henderson, vice presi­
dent, and Dale Bankus, executive vice president, of National Bank & Trust Co., Chariton, and Mike Hunter, senior vice president of Brenton
State Bank of Jefferson.

Ames Bank Appoints
Corporate Heads
Union Story Trust and Savings
Bank, Ames, recently announced
the appointment of two individuals
as corporate mangement heads.
Joe D. Petra was elected presi­
dent and William R. Hurd was
named chairman and chief executive

Mr. Petra has been serving as
president of the Bank of Versailles
in Versailles, Indiana. He formerly
was president of the Lisbon Bank &
Trust in Lisbon, and executive vice
president of the Citizens National
Bank in Boone.
Mr. Hurd was a former vice presi­
dent at Union Story Bank and for
the past five years has served as ex­

ecutive vice president of Frank Far­
rar and Associates, a service cor­
poration which has monitored and
assisted over twenty Farrar owned
Gene Hawk, who has been serving
as the bank’s president and chair­
man, resigned to assume full time
presidency of Frank Farrar and

Belle Plaine Bank Converts
To National Charter

Committed to
making your
bank stand
apart from the

Citizens State Bank, Belle Plaine,
has filed application with the Comp­
troller of the Currency to convert
from a state to a national charter.
The bank’s proposed new name
would be Citizens Bank and Trust
Co., N.A.
(Continued from page 26)
ticipating continued low prices plus
increased feed costs, many cattle
and pork producers are culling their
breeding herds and this is causing a
flood on the market of green and
undesireable livestock. They are
urging the farmers to buy feeders to
put in the low yield fields to feed out
on the silage and then profit when
the stock is taken to the yards.
A t the completion of the ques­
tion and answer period, First
Midwest Bancorp Chairman Roger
Hegarty thanked the bankers for
their participation in the 1983
Market Day and closed the session
by inviting everyone to a steak fry
on the country club grounds.

for FRASER Banker, October, 1983
Federal Reserve Bank of St. Louis

Iowa News

First Trust in Aurelia
Sold to Local Investors
Mrs. H.H. Deyloff, wife of the late
H.H. Deyloff, has sold the majority
interest in The First Trust and Sav­
ings Bank of Aurelia to a group of
local investors. Details of the tran­
saction, which involved the sale of
740 shares of stock, were not reveal­
ed. The new owners took over con­
trol the latter part of August and an­
nounced there would be no change in
personnel at the bank.
Rex Whitney, who has served as
president, is retired. Duane Gaudian
served as managing officer in addi­
tion to being vice president and
cashier, and has been with the bank
since 1954. Scott Monical and Cindy
Krause are assistant cashiers.
Members of the board of directors
include: Messers. Whitney and Gau­
dian, Orlo Shank, retired; Bob
Forbes, publisher; Dr. Richard
Berge, M.D.; Doug Radke, local
farmer, and O.V. Hallquist, local
The First Trust and Savings
Bank has been a financial institution
in the Aurelia community for over a
century. The late Howard H.
Deyloff spent his entire 58-year
career at First Trust. He purchased
the bank from the late W.H. Bischel
in 1948 and served as its president
for 33 years. He was chairman of the
board at the time of his death
December 15, 1981.

W e’re not just
fair w eather funds.

Bill Manring
Vice President
Federal Reserve Bank of St. Louis

Bob Holt
A g Representative

M ark Thompson
Loan Representative

No matter what
the economic climate, We know
you can count on us
your CUSfor ag loans, tomers’ financial

needs aren’t always determin­
ed by the economy. And at
First National, we don’t think
ag loans should be either.
That’s why we often
make crop loans when grain
prices are poor.. .or livestock
loans when the livestock
market is down. Because your
farmer customers don’t need
loans just in the good times.
At First National, we
have the resources you need
to help you make ag loans
when they’re needed. In 1982,
we loaned millions of dollars
to farmers. It’s all part of our
continuing commitment to
First National. You can
count on us. Anytime.

Joins Treynor State Bank
Steven J. Chambers has joined
Treynor State Bank as manager of
insurance ser­
vices and new
product develop­
ment. He is res­
p o n s ib le
fo r
developing new
a ffilia te d ser­
vices, the first of
which will be a
full-service in­
surance agency.
Gronstal Insur­
ance Agency, owned an managed by
former Bank President Robert
Gronstal will be assumed by the
Treynor State Bank in 1984 and will
be manged by Mr. Chambers.
Mr. Cham bers received his
bachelor and masters degrees in
business education from the Univer­
sity of South Dakota in 1969 and


First National Bank
* 5 * P.O. Box 147, St. Joseph, MO 64502
(816) 279-2721
Member FDIC

Affiliate of First Midwest Bancorp., Inc.

Northwestern Banker, October, 1983


Io w a N e w s

Private Bank Fails at Bloomfield;
Chartered, Insured Bank Replaces It
OR the first time in more than liability for $1,730,000 in deposits,
50 years, a private, uninsured thus giving depositors of Exchange
Iowa bank has collapsed. The Ex­ Bank about a 10% immediate return
change Bank in Bloomfield, founded on their deposits in the failed bank.
The holdings of the Burchette
in 1871, was declared insolvent on
September 13 by Iowa Superinten­ family are so intertwined with the
dent of Banking Thomas Huston. It Exchange Bank, the department
was one of four remaining private said, that it is going to be a long pro­
banks in Iowa, none of which is in­ cess in unraveling it so that assets
can be properly identified and li­
Private banks are not subject to quidated in order to enhance further
regulatory authorities unless they the return of depositors’ money. A
request an examination or if they department spokesman said one of
collapse. Peter Burchette, president the greatest problems is the lack of
of Exchange Bank, contacted Mr. proper paper documentation on
Huston in mid-summer, concerned loans, including a lack of security
about the condition of his bank, and agreements. It is hoped this can be
was told the department would clarified with Exchange Bank bor­
come in when requested to do so. He rowers so that with proper documen­
called Mr. Huston at the latter’s tation those loans can be packaged
home in Columbus Junction on and sold off, either to Iowa Bank
Labor Day, requesting an examina­ and Trust or to other lenders, so the
tion and department examiners were receiver can pay off depositors.
Asked why the department pur­
there the following morning. By
September 13 it was determined the sued formation of another bank, the
liabilities far exceeded the assets department spokesman said it was
and the bank was declared insolvent felt another bank was needed in
and Mr. Huston was appointed Davis County and it was also felt a
premium could be obtained to add to
Deposits of approximately $17 recovery monies for depositors.
million were uninsured. A t the time, However, there were so few loans
it was hoped depositors eventually that could be absorbed by a new
would recover at least 50% of their charter initially that the premium
amounted only to $25,000. The new
There is one other bank in Bloom­ Iowa Bank and Trust capital of
field, Davis County Savings Bank, a $350,000 is 20% of its liabilities at
state-chartered bank with $35 this time, a high ratio.
Mr. Huston’s job included the
million deposits. It was the only
other bank in Davis County, which unpleasant task of trying to explain
has been devastated by drought this the actual condition of the bank to
summer and has had poor crop its customers. When the new bank
charter was granted, an additional
weather for three straight years.
After posting an invitation for problem was trying to explain to
bids for a new charter in Bloomfield, some Exchange Bank customers
the department received only one why certain depositors actually
bid. It was accepted and the Iowa would get more credit for their
Bank and Trust opened for business deposits than other depositors, due
Thursday, September 28, after pay­ to the right of offset as outlined by
ment of $2.1 million. Bidders were Iowa law.
Just as a financial institution has
A.C. “ Arnie” Benton, 53, and W.A.
“ B ill” Krause, 48, well-known the right of offset against a bor­
Hampton, la., businessmen. They rower’s deposit funds to make good
own the Renwick Savings Bank, as on a defaulted loan, a depositor also
well as several other banks in has the right of offset of his or her
Wisconsin and a wide array of suc­ deposits against his or her outstan­
ding loan to the extent of the
cessful businesses.
They purchased $1,500,000 in depositor’s deposits.
The department’ s example cited a
loans, sight unseen, from the
receiver; the bank building for about depositor with a $100 loan and $200
$150,000; put in capital of $350,000, deposit. The newly-chartered bank
and the receiver put in $130,000 gets that depositor’s loan for $100,
cash. In exchange, they assumed and the depositor in this case then


for FRASER Banker, October, 1983
Federal Reserve Bank of St. Louis

has right to 10% of his deposit—or
$20. The receiver still owes $180 to
the depositor. If the customer then
says he or she wishes to exercise set­
off, the department then would give
the new bank an additional $80 to
pay down that loan. With the $20
deposit value in the new bank, that
totals $100, to liquidate the
customer’s loan. At that point, the
customer has received value of $100
from his $200 deposit, and still has
$100 due from the receiver. At this
point, that customer then waits in
line with other depositors for
whatever recovery might be made
on the $100 balance.
For a customer with a loan larger
than the deposit, the customer gets
the full value of the original deposit
in Exchange Bank. If the customer’s
loan again was $100, and deposit
only $50, he would have $5.00 (10%)
from the new bank, plus $45 the
department would have to pay to
the bank as offset, if requested,
against the $100 loan. A t this point,
the customer has received full value
on the $50 deposit and owes the re­
maining $50 on the loan.







Acorn Printing ................................................................78 ^
American Trust & Savings Bank, Dubuque..................... 75
Banclease, Inc., Omaha ................................................ 61
Bankers Trust Company, Des Moines.............................64
Banks of Iowa Computer Services, Inc.............................79
Barclays American/Business C re d it...............................15
Brandt, Inc.........................................................................28 _
Bremer Financial Corporation, St. Paul............................ 43 9
Cardpro Services, Inc....................................................... 12
Continental Bank, Chicago............................................ 3
Curtis Hotel, Minneapolis............................................... 14
Daktronics, Inc................................................................. 13
Drovers Bank of Chicago............................................18-19
Employers Mutual Companies, Des Moines.................... 33 ^
F & M Marquette National Bank, Minneapolis............40-41
Federated Investors, Inc...................................................10
First Interstate Corporation........................................... 49
First National Bank, Chicago..........................................20
First National Bank, Lincoln............................................59
First Bank, Minneapolis.................................................4-5
First National Bank, Omaha........................................... 57
First National Bank, St. Joseph......................................85
First Bank, Saint Paul................................................. 36-37
First National Bank, Sioux City ......................................77
Gross, Kirk Co., W aterloo............................................... 87
IBM Corporation.........................................................16-17
Innerline—B A I................................................................30
Iowa Bankers Insurance & Services, Inc........................... 81 ^
Kooker, E.F. & Associates............................................... 80
Lincoln Benefit Life Company........................................58
Merchants National Bank, Cedar R apids...................... 2
Modern Banking Systems, Inc., Omaha ........................ 7
National Bank of Commerce, Linco ln.............................55
Northern Trust Company, Chicago ................................ 11 A
Northwestern Bell Telephone Co..................................... 8-9 ^
Norwest Bank Omaha.....................................................52
Norwest Business Credit/Leasing.................................. 34
Norwest Leasing............................................................ 88
Office Concepts, W aterloo............................................. 84
Omaha National Bank ............................................... 44-45
United Central Bank, N.A., Des Moines........................... 83 ^
VanWagenen, G.D. Co., Minneapolis.............................. 29

(319) 234-6641

Selected as 1983

by winning First Place
Interior Design Remodeling Contest

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis