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ABA President

New O fficers Iowa Bankers A ssociation
• The Future for Com m unity Banks
• Annual Ag O utlook Survey - Part n
Federal Reserve Bank of St. Louis

with a plus.
(The plus is in the picture)
At Merchants National Bank you'll find our
team of Correspondent Bankers offers you
both knowledge and experience...PLUS the
resources, the products, and the
professional, yet personal assistance you
need to help make your operation a
Whether you're dealing with individual,
agricultural or commercial customers, these
MNB bankers can help provide better
services that lead to increased profitability
for your bank.
For check clearing, cash management,
short term liquidity, long term investments,
safekeeping and loans, talk to someone
who knows. An MNB Correspondent
Call 319/398-4320 or toll free,
1-800-332-5991 and talk to either John
Mangold, Terry Martin, Jerry Trudo, Stan
Farmer, Doug Keiper, Dick Retz or Lynn
Federal Reserve Bank of St. Louis




Merchants National Bank 1:1
Federal Reserve Bank of St. Louis

Cedar Rapids, Iowa 52401

Member F.D.I.C.



Sallie Mae to Offer
$5 Billion in Notes

j^ e rn C W
OCTOBER 1984 • 91st Year • No. 1453


The Student Loan Marketing
Association (Sallie Mae) announced
on September 12 its intention to oT
fer approximately $5 billion p r im i
pal amount of zero coupon notes due
October 3, 2022, in an offering un­
derwritten by Goldman, Sachs & Co.
The issue will provide net prœ
ceeds of approximately $126 million
to Sallie Mae at an effective cost of
9.95 percent. The proceeds will be
used for general corporate purposes.

ABA Pres. C. Robert Brenton, pres, of Brenton Banks, Inc., Des Moines, will be
presiding at the ABA annual convention in New York City, Oct. 20-24.
Also pictured are officers of the Iowa Bankers Association for 1984-85. Left to
right, they are: Immed. Past Pres.—AI Maser, pres., 1st Natl., Le Mars; Pres.—Wil­
liam Logan, pres., The State Central Bank, Keokuk; Pres.-Elect—J. Bruce Meri­
wether, pres., 1st Natl., Dubuque; Treas.—Richard Randall, pres., Dunlap Sav­
ings, and Exec. V.P.—Neil Milner, Des Moines. Convention report on page 71.
Photo courtesy Kuhn/Garmon Productions, Inc., Des Moines.



Asset/Liability Management— Part III

A Community Banker’s “ Plain English Guide”


After the umbrella is gone . . .

Rain or Shine? Exclusive interview with Randall Killebrew


ABA convention program

New York hosts bankers October 20-24


“What should be in the farm bill?”

Part II —Exclusive survey offers banker, educator input


Market Day

Speakers at St. Joseph conference look at farm economy


MASI officials visit Rabobank

Ed Tubbs details talks on farm loan funds

6 Calendar
10 Bank Promotions
37 Minnesota
41 Twin Cities
46 Illinois
52 Wisconsin


North Dakota
South Dakota


Iowa Convention
Report, Photos
Des Moines
Index of Advertisers

(Required by 39 U.S.C. 3685)
(also DMM 448.31)
1. T itle of p u b lic a tio n — N o rthw e stern Banker
2. Date o f filin g — S eptem ber 26, 1984
3. Frequency of issue — M onthly.
4. L oca tion o f know n o ffic e o f p u b lic a tio n — 306 - 15th
Street, Des M oines, Iowa 50309.
5. L oca tion o f the hea dquarte rs or general business o f­
fic e s of the pub lis h e rs (Not printers) — 306 - 15th Street,
Des M oines, Iowa 50309.
7. O wner (If ow ned by a corp o ra tio n , its nam e and
dress m ust be s ta te d and also im m e d ia te ly thereunder M i
nam es and addresses of s to c k h o ld e rs ow ning or h oldin g 1
percent or m ore o f to ta l a m ount o f stock. If not ow ned by a
c o rp o ra tio n , the nam es and addresses of in d ivid u a l
ow ners m ust be given. If ow ned by a partn e rsh ip or o ther
unin c o rp o ra te d firm , its name and address, as w ell as th a t
o f each in d iv id u a l m ust be given). Ben H aller, Jr., Presi­
dent, 306 - 15th S treet, Des M oines, Iowa 50309. N o iA
w estern Banker Com pany, 306 - 15th Street, Des M o i n ^
Iowa 50309.
8. Known bon dhold ers, m ortgages, and oth e r se cu rity
holders ow n in g or h oldin g 1 percent or m ore of to ta l
am ount o f bonds, m ortgag es or oth e r se cu ritie s: Ben
Haller, Jr., P resident, 306 - 15th S treet, Des M oines, Iowa
10. E xtent and nature of c irc u la tio n :
Average No.
A ctual No.
copies each o f copies of
issue during sin g le issue
nearest to
12 m onths
filin g date
A. T otal No. co p ie s printed
(Net Press Run)
B. Paid C irc u la tio n
1. Sales th ro u g h dealers
and carriers, stree t ven­
dors and c o u n te r sales
2. M ail S u b s c rip tio n s
C. T o ta l p a id c ir c u la tio n
D. Free d is trib u tio n by m ail,
ca rrie r or other m eans—
s am ple , c o m p lim e n ta ry ,
and o ther free copies
E. T otal d is trib u tio n
(Sum o f C and D)
F. C o p ie s n o t d is tr ib u te d
1. O ffic e use, le fto v e r,
u n a c c o u n te d , s p o ile d
a fte r p rin tin g
2. R e tu rn s fro m n e w s
G. T otal (Sum of E, F1 and
2 — s hou ld equal net press
run show n in A)
11.1 c e rtify th a t the s ta te m e n ts made by me above are c o r­
rect and com ple te.
E ditor and Publisher

306 15th Street, Des M oines, Iowa 50309

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor


Ben Haller, Jr.

Steve Burch

Becky McBurney

Malcolm K. Freeland

No. 1453 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. POSTM ASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, Iowa 50309.

for FRASER Banker, October, 1984
Federal Reserve Bank of St. Louis

12. For c o m p le tio n by p u b lis h e rs m ailin g at the regular
rates (S ection 132.121, Postal Service Manual). 39 U.S.C.
3626 provides in p e rtin e n t part: “ No person w ho w ould
have been e n title d to m ail m a tte r under form er se ctio n
4359 o f th is title shall m ail such m a tte r at the rates p r o v i^
ed under th is s u b s e c tio n unless he file s ann ually w ith t w
Postal Service a w ritte n request fo r perm issio n to m ail
m a tte r at such rate s.”
In a c cordan ce w ith the pro v is io n s o f th is sta tu te , I here­
by request p e rm issio n to m ail the p u b lic a tio n named in
Item 1 at the phased postage rates presently authorized by
39 U.S.C. 3626.
Ben H aller, Jr., E d itor and P u b lis f^ fc


• Brandt Has The Products
• That W ill Wrap Up Your
. Money Handling Needs.

Count O n It.



Chances are when you think o f
Brandt, you think o f your money
handling equipment.
Actually, Brandt is a total supp lie r o f banking related items.
Paper products are a good example.
W e handle flat, tubular coin wrap­
pers. Crimped end wrappers. Paper
rolls for automatic packaging. All
color coded by denomination. All
produced to Brandt’s high quality

standards. And, for money coming
into your operation, we can supply
high quality bank bags. Bags de­
signed to provide the security you
and you r cu stom ers need. Bags
built to hold up for extended use.
Paper products. Bank bags. Just a
part o f the complete line o f Brandt
money handling products.
Brandt. M aking y o u r m o n e y

Brandt, Inc. P.O. Box 200, Watertown, WI 53094 (4 1 4 ) 261-1780.
Federal Reserve Bank of St. Louis




C o n ven tio n C alen d ar
\ __________ ___ __________
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. 18-19—IBAA Region A—Agricultural
Lender Workshop, Des Moines Marriott,
Des Moines, Iowa.
Oct. 20-24—ABA Annual Convention, New
Nov. 4-7—IBAA 26th Seminar/Workshop on
the One Bank Holding Company, The
Sands Hotel, Las Vegas.
Nov. 11-14—ABA National Agricultural
Bankers Conference, Hyatt Regency/
Crown Center, Kansas City, Mo.
Nov. 27-30—BAI Money Transfer Confer­
ence, Hyatt Regency, Chicago, III.
Dec. 9-12—BAI ATM/7 + Conference, Sher­
aton, New Orleans, La.

Feb. 3-6—BAI Productivity Conference,
Westin Bonaventure, Los Angeles.

Feb. 24-27—BAI Bank Security Conference,
Adam’s Mark, Houston, Tex.
Mar. 26-29—BAI Check Processing Confer­
ence, Dearborn, Mich.
Apr. 14-18—BAI Bank Audit Conference,
Sheraton, Washington, D.C.
Apr. 30-May 3—BAI Accounting & Finance
Conference, Hyatt Regency, San Fran­
May 13-17—BAI Bank Tax Conference,
Hyatt Regency, Washington, D.C.
June 2-5—BAI Trust/Financial Products
Conference, Inter-Continental, Boston.

State Conventions & Schools

Nov. 7&8—IBA Bank Directors Seminars,
Westin Hotel O’Hare, Chicago, on the 7th,
and Holiday Inn East, Springfield, on the
Nov. 28-29—IBA Annual Meeting and Bank
Management Conference, St. Louis Mar­

Feb. 6—IBA Asset/LiabiIity Management
Conference, Holiday Inn East, Springfield.
Feb. 7—IBA Asset/Liabi Iity Management
Conference, Drake Hotel, Oakbrook.
Feb. 20-21 —IBA Commercial Credit Confer­
ence, Holiday Inn East, Springfield.


Oct. 24-25—Consumer Lending/Retail B a n ^
ing Conference, Des Moines.

Feb. 12-14—EFT Conference, Des Moines.
Feb. 27-Mar. 1— IBA Mid-Winter Manage­
ment Conference, Keystone, Colorado. ^
Mar. 3-5—IBA Marketing Conference, Des
Mar. 20—IBA Ag Credit Conference, Ames.
Apr. 13-17—IBA Washington D.C. Trip.
May 20-21 —Iowa Young Bankers Con­
ference, Des Moines.
Sept. 22-24—IBA 99th Annual Convention^
Des Moines.

Nov. 15—MBA Personnel Conference, Holi­
day Inn International, Bloomington.
Dec. 5-6—MBA Advanced Security Workshop^
Sheraton Midway, St. Paul.

Mar. 10-14—MBA/ABA Community Bank Ex­
ecutive Development Program, Hyatt Re­
gency, Minneapolis.
May 7-10—MBA Washington Legislative
Conference, Washington, D.C.
June 10-12—MBA Annual Convention, Amfac Hotel, Minneapolis.

Oct. 16-20—NBA Teller/Staff Conference^
North Platte Holiday Inn, Kearney Ramada
Inn, Lincoln Cornhusker and Norfolk Villa
Nov. 20-21 —NBA Bank Management Confer­
ence, Kearney Holiday Inn.
Nov. 20—NBA Legislative Dinner, Kearne^
Holiday Inn.

Jan. 15-16—NBA Lending Conference, Kear­
ney Holiday Inn.
Feb. 12-13—NBA Personnel Conference.
Kearney Ramada Inn.
Feb. 20-24—NBA Bank President’s Confer­
ence, Rancho Bernardo Resort, San Diego,
Mar. 20-21 —NBA Ag Outlook Conference,
Kearney Holiday Inn.
North Dakota:

Oct. 17—ICBND Bank Directors Seminar,
Bismarck Sheraton Galleria.

Jan. 28-29—NDBA Chief Executive Officer
Conference, Kirkwood Motor Inn, Bis^
Jan. 29-30—NDBA Bank Management Conference/Legislative Reception-Dinner,
Kirkwood Motor Inn, Bismarck.
Feb. 20-22—Bank of North Dakota MidWinter Break, Bismarck.
Apr. 8-10—NDBA Washington Legislative
Visit, Hyatt, Regency on Capitol Hill.
Apr. 24-26—NABW State Convention, Minot.
May 19-24—NDBA North Dakota School of
Banking, University of North Dakota,
Grand Forks.
June 10-11 —NDBA Annual Convention,
Holiday Inn, Bismarck.
South Dakota:

Jan. 30—SDBA Legislative Reception aniP
Dinner, Kings Inn, Pierre.
Apr. 3-4—SDBA Ag Credit Conference,
Kings Inn, Pierre.
Apr. 8-11—SDBA/NDBA Annual Washing­
ton D.C. Legislative Trip.
May 12-14—SDBA Annual C onventiorfl
. Rushmore Plaza Civic Center, Rapid City.
for FRASERBanker, October, 1984
Federal Reserve Bank of St. Louis

InnerLine: News, Rates, Analysis
• and Information. Now.
Increase profits and productivity with the first interactive, on-line information
• network designed fo r banks, credit unions and thrifts.

• Get the Information You Need . . . at your fingertips, without any computer
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rates, regulatory updates, directories, electronic mail, marketing and hedge
0 management strategies, research and much more.
Save Time and Make Money. . . InnerLine’s Funds Marketplace,1the eco­
nomical alternative to money brokers, lists rates on instruments offered by 500
institutions. You make the deals with no “cuts” taken on any transactions. Our
Electronic Mail moves messages quickly and confidentially, and American
Banker, the industry’s only daily newspaper, arrives at your terminal at 6:00 am
(EST). Over 40 easy-to-use services give you everything you need to increase
profits and improve productivity.
Even if You Don’t Have a Computer. . .
We can help you buy or lease the right
equipment. Any dial-up terminal can
be used.
Get All the Facts . . . InnerLine is your
best source for news, rates, analysis and
Find out more with no obligation.
Call today, toll-free 1/800/323-1321
In Illinois, please call:

The Financial
©1984 InnerLine
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis

“Several firms told us
to redesign our bank,
inside and out ”
At HBE, we create environments that work.
In Lecompte, Louisiana, the bank’s problem
was not unusual—they had outgrown their
limited space. HBE worked closely with
Bank of Lecompte President Wade Jones to
plan, design and build a new facility on the
bank’s original site.
Customer service and continuity were
also maintained because HBE remodeled in
phases, allowing no loss of security or
business days.

“ Productivity, m orale and
general good feelings am ong our
employees all increased."
HBE banks are designed to be both comfort­
able and productive. Our experience has
proven that an attractive business area for
customers can also be a pleasant and pro­
ductive working environment for personnel.
That’s a dividend that continues to pay for
years and years.

“As far as value for the dollar,
HBE included everything.
We got a great price."
Wade Jones thought that the plan/design/
build system of construction would be too
expensive. HBE showed him it doesn’t have
to be. After checking similar projects in
Louisiana, Wade Jones agreed.

A building can cost as much or as little as
any budget can afford. But, unless the final
product works best for you, it’s never worth
the price. HBE designs banks from the
inside out... from the original concept to
the last desk. N o other firm works with
you so closely on every aspect of your

“ W e've enjoyed a strong deposit
increase since the construction
o f our new HBE bank."
Customer deposit growth is not one of our
guarantees, but when it happens, like it did
in Lecompte, we’re not surprised. Because
professionals from every area of planning,
design and construction work together on
the HBE team, we can solve your bank’s
problems better; on time and on budget.
You will know exactly what your project
will cost before any contract is signed. No
cost overruns. No surprises. N o allowances.
At HBE, your cost is guaranteed before we
build and the quality assured after we leave.

For information on how HBE can work
for you, contact Sally Eaton at
314/567-9000. HBE Bank Facilities,
11330 Olive Street Road, St. Louis,
Missouri 63141.

“ HUE was the only one
that could do it. Affordably.”
________________________________ Your System for Success


Bank Facilities
Federal Reserve Bank of St. Louis

ceived a master’s degree in business^
administration from the Universit®
of Missouri-Kansas City.
Mr. Malinee joined United Mis­
souri Bank in 1982. He is a 1978
graduate of Rockhurst College i ^
vice president in 1981. He is a 1961 Kansas City where he earned his
graduate of the University of Notre bachelor degree in business adminis­
Dame and received an M.B.A. de­ tration and is currently working on
gree in 1964 from the University of his master’s degree.
Charles Raplinger has been p rc^
moted to vice president in the in­
First Interstate Bancorp, Los vestment banking division. He joined
Angeles: The promotions for three the bank in 1974 after completing
officers and appointments of three his bachelor degree in accounting at
Benedictine College in A tch isory
new ones was announced recently.
Promoted were James Hook to se­ Kan.
Mark A. Schmidtlein and Melissa
nior vice president of the corporate
finance group, Lisa L. Corbett to Smith have been promoted to assis­
audit manager, and Doug Wallis to tant vice presidents in the commer­
vice president of corporate develop­ cial lending division and investm ent
division respectively.
Other appointments include the
New appointments are Sandor E.
Samuels as counsel in the office of following:
Mary Jane Margheim to interna­
the general counsel, Larry D. McCurley as vice president of loan tional banking officer; Carol Grahan®
review in auditing, and Bonnie S. to assistant operations officer in the
Downey as vice president of the tax wire transfer department; Mary H.
Browne and Leigh Peters to assis­
tant cashiers in the credit depart­
First National CharterBank of ment, and Sherry Troemel to assis®
Kansas City: Jack L. Sutherland has tant operations officer.
been elected to
LaSalle National Bank, Chicago:
the newly-created
William L. Smith, general manager
position of se­
of The Chicago
nior executive
Hilton, has been
vice president.
to the
He joined the
bank’s board of
bank August 13
d ir e c to r s , a c ­
a fte r
h a v in g
cording to an anserved as presi­
dent and CEO of
made by Homer
United Bank of
J. L ivin gston ,
Illinois, R ock ­
ford, 111. He has assumed adminis- Jr., p resid en t
tration of First’s growing commer­ and chief execu­
cial banking division and initially tive officer of
will concentrate on strategic plan­ LaSalle National Bank

Bank Prom otions


ROMOTIONS and other an­
nouncements have been made
by the following banks:
Commerce Bank of Kansas City,
N.A.: L. Duncan Miller, vice presi­
dent, has been named manager of
the metropolitan department. Prior
to joining the bank in 1979 he had
been president of Miller-Stauch Con­
struction Co. and president of Com­
mercial Surfaces, Inc.
David H. Lindsey, vice president,
has been named manager of the
regional department. He also joined
the bank in 1979, prior to which time
he was vice president at a Kansas
City suburban bank for two years.
John S. Archer, a commercial
lending officer since 1981, has been
elected a vice president and will
work with Mr. Miller in the develop­
ment of new business. He joined the
bank in 1974.
Continental Bank, Chicago: Hollis
W. Rademacher, 49, an executive
vice president of
the bank since
1981, has been
appointed to the
n e w ly
esta b ­
lished position
of chief credit of­
ficer of the bank
and its holding
company, Conti­
nental Illinois
Mr. Rademacher formerly headed
the Chicago and midwest financial
services department. He joined the
bank in 1957, progressing through
various p o s itio n s—second vice
president in 1966, vice president in
1969 and senior vice president in
1976 before his most recent promo­
tion to executive vice president in
1981. He is a 1957 graduate of the
University of Minnesota.
The bank and the corporation also
announced the appointment of Gar­
ry J. Scheuring, 45, as executive
vice president to head the organiza­
tion’s newly established loan work­
out group and will be reporting di­
rectly to the chief credit officer. Mr.
Scheuring formerly was senior vice
president and head of the special in­
dustries department. He joined Con­
tinental in 1964 and became a senior
for FRASERBanker, October, 1984
Federal Reserve Bank of St. Louis


ning and sales development. He has
been a banker since joining Com­
merce Bank of Kansas City in 1971.
Later he joined Mercantile Bank of
Kansas City, where he became exec­
utive vice president in 1973. He
joined the Rockford bank in 1979.
United Missouri Bank of Kansas
City, N.A.: Lance B. Blue and John
W. Malinee have been promoted to
vice presidents in the commercial
lending division.
Mr. Blue has been associated with
the bank since graduating from
Southwest Missouri State Universi­
ty in 1977 where he earned his bach­
elor degree in marketing. He later re-

IBAA Selects Ad Agency
The Independent Bankers Associ­
ation of America has retained t h y
Twin Cities advertising agency o r
Cohen Okerlund Smith as its agency
of record, according to Cate Smith,
COS president.
Cohen Okerlund Smith was in y
vited to make its presentation on the
strength of its work for the Indepen­
dent Bankers Association of Min­
nesota. The agency specializes in
financial, retail and high-technology

To learn what we’ve learned
about trust services
would take $4,000,000,000
Or one phone call.

If you choose the phone call, here’s what
you get.
A direct line to Mercantile Trust
Company’s professional money
managers. The same professional
money managers who make investment
decisions on managed accounts totalling
over $4,000,000,000.
With that kind of experience, you can
look to Mercantile for Trust Investment
Research that’s timely, accurate and con­
sistent. You can rely on the same Securities
Settlement Services that are offered by the
best in the industry. You can expect state of
Trust Investment Services
Mercantile Trust Company N.A.
P.O. Box 387
St. Louis, MO 63166

the art Financial Planning Software,
as well as professional consultation
on Money Market Funds, Tax Shelters
and Brokerage Services.
In fact, you won’t find a more
comprehensive selection of services
with a more experienced staff than the
Trust Services group at Mercantile. So why
not give them a call today.
It’s an easy way to get $4,000,000,000
worth of experience.

ER cnrm is
Member FDIC

Contact your Mercantile Correspondent Banker,or callTim Engelbrecht or Jim Davis direct at(314)425-2692.
Federal Reserve Bank of St. Louis


1 WithFirstTèamwork,yourrelationship
U.S. fín a n d a l Institutions

When you are a corre­
spondent of First Chicago, it
means having access to the
vast resources of a moneycenter bank. It means working
w ith a relationship manager
who guides teams of special­
ists to deliver the 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
more effectively than
/ i
First Chicago. Our

Midwest Financial Institutions
Team offers a full range of
traditional correspondent
services plus specialized credit
and investment banking capa­
bilities. Our Community
Banking Team delivers the full
line of credit and non-credit
services along w ith a strategic
planning model designed fo r
community banks.
Whether you’re a re­
gional bank
holding com­
pany a

bank or a com m unity bank,
when you’re a correspondent
w ith First Chicago, we w on’t
just be working w ith you—
we’ll be working fo r you.
See how First Teamwork
can w ork fo r you. Call Jim
Suhrat (312) 732-6482.
First Chicago


The First National Bank of Chicago

Thomas M. King
Community Banking

i )

Philip H. Britt
Midwest Financial Institutions

© 1 9 8 4 The First National Bank of Chicago. Member FD.I.C.

Banker, October, 1984
Federal Reserve Bank of St. Louis


A Plain
Guide to

A Plain English
Guide to
Asset /Liability

Written by Bankers for Bankers

Paul Lindsey is president and CEO of Farmers National Bank of

^Geneseo, III., an agricultural-oriented financial institution. Mr.
•L in d se y has over 15 years experience in the banking industry and
has been instrumental in helping Farmers National to nearly dou­
ble in size in only seven years from $60 million in total assets in
1977 to its present size of $115 million. He is also a member of the
bank’s Asset/LiabiIity Management Committee (ALCO) and a
^m em ber of the bank’s board of directors. Farmers National has
" h a d a formal asset/liability management program in effect since
Bill Goedken is president and CEO of F.N.Bankware, Inc., a fi­
nancial institution consulting and microcomputer software firm
in Omaha, Nebr. Mr. Goedken holds CPA and CMA certifications,
_and is an MBA graduate of the University of Iowa. Before joining
•F.N.Bankware, Mr. Goedken was a senior consultant with Touche
Ross & Co., an international CPA firm. He has over 10 years exper­
ience in the banking and savings and loan industries, asset/liabili­
ty management, and financial institution operations.
Jim Riha is senior vice president and controller of Packers Na­
tional Bank of Omaha, Neb. Packers is an urban retail bank in a
•h ig h ly competitve metropolitan market and has assets of $120
million. Mr. Riha is a graduate of the Colorado School of Banking
and the Stonier Graduate School of Rutgers. As both CFO and
chief administrative officer of Packers, Mr. Riha is responsible for
all financial operations of the bank, including asset/liability man­
agement. He is also a member of the bank’s Asset/Liabi Iity Man•agem ent Committee (ALCO).

Part II
® Ed. Note: Last month we published Part I o f what will
be a five-part series presenting the booklet, “A Plain
English Guide to Asset/Liability Management, ” in its
entirety. Part I gave an overview o f A/L Management
^and specifically discussed a Definition o f A/L Manage® ment, How A L M Fits into the Management Process,
and The ALCO Committee.
Part II, presented here, begins the discussion o f four
approaches to practicing ALM. Three o f those ap­
p r o a c h e s are discussed here. The fourth, Gap Manage" ment Approach, is highly important and has several
accompanying charts, so will be presented as Part I I I
next month by itself.


Four Approaches to
Asset/Liability Management

N OUR previous article, we defined asset/liability
management (ALM) and showed how the ALM func­
t i o n is an integral part of the bank management pro­

Federal Reserve Bank of St. Louis

cess. W e’ve given a brief overview of the ALCO and
some general guidelines on forming the committee. We
shall now discuss the various practices of ALM used
Part of the “ confusion” on ALM stems from the fact
that over the past few years four approaches to prac­
ticing ALM have been developed:
1) Pool-of-Funds Approach
2) Management Science Approach
3) Duration Approach
4) Gap Management Approach
Although these approaches are considered separate
and distinct, the differences between them is a matter
of refinement and sophistication. The pool-of-funds ap­
proach is the least sophisticated while the duration ap­
proach is the most sophisticated.
Each of these approaches has its advantages and
disadvantages. Nevertheless, at least one approach or
some combination of two or more is used by a large
number of banks today. Although many articles have
been written on these approaches, we shall briefly
discuss each of them.
Pool-of-Funds Approach
The pool-of-funds approach has been used most
often in the past. It is very similar to spread manage­
ment. As illustrated in Figure 2, a bank puts its liabili­
ties or funds into an overall “ pool.” These funds are
then allocated to asset groups depending on need and
profitability. To aid in this approach, the bank
calculates an overall cost of the “ pool” as shown in
Figure 3. Notice the various categories of assets and
liabilities, their balances and their weighted-average
rates. If you combine all of the balances and rates on
the liability and equity side of the balance sheet, you
attain a weighted-average cost of funds, also known as
the “ hurdle rate.” A banker knows that each interestbearing asset category must yield a rate greater than
or equal to the hurdle rate. Accordingly, and to the ex­
tent possible, the banker invests in any new assets
bearing a rate greater than the hurdle rate. The dif­
ference between the two rates is, of course, the
“ spread.” Thus, the objective of the pool-of-funds ap­
proach is to maximize this spread.
The main advantage to the pool-of-funds approach is
its simplicity. Calculations may be done by hand or by
using a simple computer or calculator routine.
The main disadvantage of this approach is that vari­
ous sources of funds become “ lost” in the overall pool.
Northwestern Banker, October, 1984

Management also has little feedback as the impact of
specific policies or decisions on overall bank strategy.
Furthermore, this approach does not match maturities
or identify the various assets and liabilities according
to risk class. This shortcoming may lead to an undesir­
able liquidity or interest-rate risk position.
Management Science Approach
This approach is more sophisticated than the pre­
vious two approaches and incorporates various man­
agement science techniques into ALM. One such tech­
nique is called Linear Programming (LP) which op­
timally allocates various funds to asset groups (see
Figure 10). Within the banking environment, there are
various accounting, legal, and management restric­
tions on bank operations. These restrictions, or con­
straints, are incorporated into a mathematical LP
model with the objective of maximizing profits, reve­
nues, or stockholders equity depending on your bank’s
goals. Various funds are optimally allocated to various
asset groups given these restrictions and objectives
(see Figure 10). For example, one of your restrictions
may be to limit the dollar volume of real estate loans.


















SUBT0T. DDA’S AND SAV. a m o u n t :












SUBTOTAL OTHER LIAB. a m o u n t :
















o f Funds:





of Funds:




P ool o f F u n d s A pp roach







CD’S > $100,000





Linear Programming has been used in banking ap­
plications since the early 1960’s. But because of the ex­
tensive and complex mathematical calculations, its use
has been limited. However, with the aid of microcom­
puters, LP calculations take much less time and are
more feasible to use in many applications.
The main advantage of LP in ALM is its goal-seek­
ing capability. You can formulate the model to “ seek
maximum earnings” or “ seek maximum growth” or to
seek some compatible level of both earnings and
There are disadvantages of using LP in ALM
models. First, very few bankers understand the math­
ematics of LP or have the time to learn it. Second,
many ALM models that use LP require complex user
formulations. They require the banker to understand
LP before the model can be used effectively. Third, LP
tends to maximize your goals at the sacrifice of other
considerations. For example, profit maximization in
for FRASERBanker, October, 1984
Federal Reserve Bank of St. Louis


the short run may be detrimental to your gap position
in the long run. Nevertheless, with the aid of micro­
computers and good programming and design of the
model, LP can be a very useful tool in ALM.
Duration Approach
Duration is a relatively new concept that, in theory,
is probably the most accurate approach. It is similar to
the gap management approach in that it m easure^
gaps, but it also takes into account present value (or
time value of money) analysis.
Duration discounts of cash flows maturing and/or
repricing over time based on the theory that a dollar re­
ceived today is worth more than a dollar received six^
months or a year from now. Thus, the gap positions
may change depending on the various discount rates
used for the asset and liability portfolios.
(Turn to page 29, please)

We make house calls.
The gnomes o f Freddie Mac are not only well-versed but also
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tailored to suit local needs. ■ Whether you want to sell
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© 1984, FH LM C
Federal Reserve Bank of St. Louis


After the
g o n e ...


6 O

HEN Randall A. Killebrew be­
comes chairman of A B A ’s
Community Bankers Council at the
conclusion of the A B A convention in
New York October 24, he will as­
sume important responsibilities as a
leading spokesman for the majority
of the nation’s banks. The 49-year
old president of the First National
Bank in Petersburg, 111. (assets $42
million) is no newcomer to working
on behalf of fellow bankers.
He has been on the Community
Bankers Council for three years,
serving the past year as vice chair­
man. He has been a speaker on a
number of A B A programs and
Assemblies, frequently on the topics
of loan pricing and asset/liability
management. In his home state of
Illinois, he served as president of
two of the federations under the
former Illinois Bankers Association
and also as president of Group 5.
Mr. Killebrew was graduated
from Illinois College, a small liberal
arts school in Jacksonville, 111. After
four years of duty as a Naval officer
his first work assignment at home
was two years with International
Harvester Credit Corp. He began his
banking career in 1962 in Winches­
ter, 111., then moved in 1968 to the
Farmers State Bank of Fulton Coun­
ty in Lewistown. He assumed his
present duties as president of The
First National Bank of Petersburg
in 1974.


Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis

Along the way, Mr. Killebrew
completed the Illinois Bankers
School at Carbondale in 1966, Ston­
ier Graduate School of Banking in
1969, the A B A National Commer­
cial Lending School at the Univer­
sity of Oklahoma at Norman, and
has served on the faculty of the
A B A Advanced Agricultural Credit
School at Iowa State University in
Mr. Killebrew agreed to the fol­
lowing exclusive interview for
N orthwestern B anker readers:

A N orthwestern B anker
interview with
President and CEO
Petersburg, 111.

h What

is the primary

Q ■ challenge facing com­
munity bankers today, and why? ®
to prosper in
■ the deregulated market
place. For over fifty years most of us
have been accustomed to operating^
under the protective umbrella of
regulations set down by the federal
government. As this umbrella be­
gins to be taken away from us, we
have to learn to compete in an openQ
marketplace with many new com­
Part of this problem and part of
this challenge is searching out new
sources of income. This involves d e ©
veloping and learning to sell new
products and services.
Unfortunately, we do not have all
of the relief that is necessary so that
we can truly be players in the dere©
gulated marketplace. We still have
government constraints which pro­
hibit us from free entry into the real
estate and insurance markets, along
with some areas of selling securities.©
We need to continue to strive to get
relief from this restrictive legisla­
tion, so that the community banker
can truly be the primary delivery
source of financial products within©
his or her community.


h Learning

H ow are the ABA and
■ the Community Bankers
Council helping bankers to meet^
these challenges?



Northwestern Banker, October, 1984


A ■ In several ways.
r \ n First, through our activi­
ties in the federal legislative arena.
Discussion on legislative issues
starts with our Advisory Board,
^which is made up of 183 members
representing every state in the
union. It goes from there to our 18
member council, two members of
which are permanent members of
^the Government Relations Council
of the ABA.

Through the communications pro­
cess which has been established
from the Advisory Board to the
•Community Bankers Council to the
Governm ent Relations Council,
community bankers have direct in­
put in helping arrive at the federal
legislative position which is estab­
l i s h e d by the American Bankers A s­
Also, last May, four other Com­
munity Bankers Council members
and I made a special trip to Wash­
in g t o n , D.C. to meet with U.S. Trea­
sury Secretary Donald Regan, lead­
ing House and Senate banking com­
mittee members and Federal Re­
sserve Board staff members. We ex­
p la in e d why it is urgent that com­
munity banks gain the authority to
offer new products and services.
The second area of major empha­
s i s is that of education. Through the
A B A National Assembly for Com­
munity Banking and the Communi­
ty Banker Executive Development
Program, the Community Bankers
^Council provides a place where the
CEOs of community banks can go
and get first hand knowledge on a
variety of subjects which are de­
signed to make them better man­
a g e r s of their financial institutions.
For those who are not able to
leave the bank to attend meetings
such as the National Assembly or
the Executive Development Pro­
g r a m , there are two excellent pro­
grams designed to provide the infor­
mation needed within the bank.
A B A ’s Competitech is a monthly
S u bscription series which focuses on
timely topics comprehensively, yet
concisely. Each Competitech pro­
vides the reader with a tremendous
amount of practical information on a
^vital banking subject such as finan­
cial counseling or low cost market
research. Another in-house training
m echanism which is available
through the Community Bankers
^pouncil is A B A ’s Banctraining
video systems — a series of video
Banker, October, 1984
Federal Reserve Bank of St. Louis

opment Program, held three times a
year around the country. Competi­
tech and Banctraining offer a com­
prehensive way for the community
bank CEO to keep abreast of what’s
going on within our industry and to
help retrain himself and his staff to
meet the challenges of the deregu­
lated marketplace.
a There have been nume■ rous predictions of fu­
ture decreases in the number of com­
munity bankers. Do you agree with


Mr. Killebrew gives his views on community
bankers offering financial planning ser­
vices, at a 1984 summer meeting of the ABA
Community Bankers Advisory Board.

b Not at all. The future of
■ community banking is
bright for those who wish to com
tapes designed as a staff training
pete. It will be challenging. New
tool to be used within the bank.
technology and better trained em­
The Community Bankers Council
ployees will be a must, for example.
spends a great deal of time and re­
But it will be rewarding for those
sources each year conducting a
bankers who are willing to change.
needs assessment process which in­
A banker will only become a casual­
volves surveys, questionnaires on
ty if he refuses to change with the
specific subjects, and evaluations of
times, and then it will be his deci­
various programs. In this way the
Community Bankers Council is able
to keep abreast of the needs of the
community bankers of this country
a What is the major prob­
and help design programs which will
le m facing community
meet those needs. Of particular con­ bank customers?
cern to bankers during our most re­
cent survey were asset/liability man­
b The customers of comagement, bank officer productivity
■ munity banks located
and strategic planning. Appropriate
around this country are faced with
programs will be developed by bank­
many problems but it seems to me
ers for bankers.
that one underlying problem has
more significance than any other
and that is exceptionally high inter­
b H ow is AB A’s Commu■ nity Bankers Council est rates. For the farmer and the
helping community bankers in­ small businessman of this country
crease their productivity and profi­ to prosper we must return to an en­
vironment where they can be profit­
able. Unfortunately, high interest
rates have taken away much of the
b The cornerstone of the
opportunity for profits for most
■ programs offered by the
farmers and small businessmen.
Community Bankers Council is the
annual National Assembly by Com­
b H ow is the banking community Banking, which will be held
■ munity responding?
in Orlando, Florida, February 10-13,
1985. Each year it receives rave re­
views from the attendees and the
b The
American Bankers
numbers keep growing. Bankers re­
■ Association, along with
turn home with ideas that save them
many other trade organizations is
time and money that more than off­
actively involved at this time in at­
set the cost of the trip. We are well
tempting to get the U.S. Congress to
under way towards planning the
pass the balanced budget amend­
program for ‘85 and feel that once
ment. The A B A is also part of the
again it will be the premier meeting
Bipartisan Budget Coalition, which
of the year.
Other activities include the al­ RAIN OR SHINE? . . .
ready mentioned Executive Devel­ (Turn to page 48, please)








Northwestern Banker, October, 1984


to put his ABA experience to
work for all of us.
In representing Iowa bankers,
Bob Brenton has exemplified
the philosophy shared by many
in the banking industry across
the state: that of helping individ­
ual Iowans become financially
successful, and improving the
quality of life in the communities
our banks serve.
From Capitol Hill to Capital

Square, Bob Brenton has gone
a long way to serve the inter­
ests of Iowa bankers and Iowa
bank customers.
Welcome back,

William H. Brenton
Chairman o f the Board

S lvL ^ ri
J.C. Brenton
Executive Vice President and Treasurer

WÊm ■

Throughout his term this past
year as president of the Ameri­
can Bankers Association, Bob
Brenton proved himself as capa­
ble of serving the interests of
the nation’s bankers as he is of
serving those of Iowa’s bankers
and his own bank customers.
Today, Brenton employees
and customers in 16 Iowa com­
munities are welcoming Bob
back to Iowa where he’s ready


Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis

BANKS \___










Cncl. Chmn.

Exec. V.P.

•New York Hosts ABA, Oct. 2 0 -2 4
HE FUTURE of America’s banks and the environ­
ment in which they will have to operate will be the
^focus of the 1984 A B A Convention, October 20-24 in
New York City.


Outlook for Banking
An in-depth analysis of the outlook for banking will
^be provided by a panel of prominent bank chairmen
and presidents from various-sized banks. The CEOs
are: Samuel H. Armacost, president and chief execu­
tive officer, Bank America Corporation and Bank of
America, NT + SA, San Francisco; John F. McGil^licuddy, chairman of the board and chief executive of­
ficer, Manufacturers Hanover Trust Company, N.A.,
New York City; John G. Medlin, Jr., president and
chief executive officer, Wachovia Bank and Trust
Company, Winston-Salem, NC; and John K. Moore,
^chairman of the board and chief executive officer,
Beach Bank of Vero Beach, FL, and chairman of
A B A ’s Community Bankers Council. Moderating the
session will be former U.S. Comptroller of the Curren­
cy John G. Heimann, who is now deputy chairman of
^the New York investment banking firm, Becker Pari­
bas, Inc.

Deficits, Taxes, Politics
The critical impact that federal deficits have on
^banking and the U.S. economy and the difficulties in
reducing deficits will be addressed by a panel moder­
ated by ABC News Anchorman Ted Koppel. Partici­
pants will include J.P. Bolduc, chief operating officer
of the President’s Private Sector Survey on Cost Con­
t r o l , Inc., also called the Grace Commission, and senior
vice president of W.R. Grace & Company.

In addition, various proposals for major changes in
U.S. tax policy will be discussed during a forum on tax
reform. Included will be U.S. Senator William V. Roth,
Jr. (R-DE), a member of the Senate Finance and Taxa­
tion Committees, and Washington, DC tax consultant
Charles E. Walker.
Election-year politics will be debated by Republican
National Committee Chairman Frank J. Fahrenkopf,
Jr. and Democratic National Committee Chairman
Charles T. Manatt. NBC News Anchorman Tom Brokaw will moderate.

Banking Regulation
Perspectives on banking regulation will be
presented during major addresses by FDIC Chairman
William M. Isaac and Comptroller of the Currency C.
Todd Conover. Also, during “ Meet the Regulators’’
sessions, attendees will have the opportunity to dis­
cuss issues and problems with senior officials of the
Federal Reserve Board, Office of the Comptroller of
the Currency and the Federal Deposit Insurance

Ag Forum, Government Relations
The search for solutions to the financial difficulties
of the nation’s farmers will be the focus of an agricul­
ture forum. U.S. Secretary of Agriculture John R.
Block will participate.
At an open meeting of the A B A Government Rela­
tions Council, bankers will learn about the prospects
for further strengthening banks’ ability to compete in
(Turn to page 59, please)

Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984


“ What should be in the ‘ 8 5 farm bill?”

Part II
HIS is the second and concluding part of The An­
nual Agricultural and Livestock Survey presented
by the N orthwestern B anker . Participants in this
year’s survey are bankers who have been involved at
the national level with ag-decision making through
their associations or as part of government advisory
bodies, respected ag college professors, and bankers
who are ag leaders in their respective areas—some as
correspondent bank ag lenders, some as leaders in their
state banker association ag committees.
As noted in Part I last month, the one question
asked of each participant was, “ If you could help write
the provisions of the 1985 Farm Bill, what one, two or
three key provisions would you include?’ ’ Following
are the balance of the replies received to this year’s


Overland National Bank
Grand Island, Nebr.
MERICAN agriculture has become a troubling
economic paradox. Last year the U.S. government
spent a record $51 billion in direct and indirect subsi­
dies to the farming sector, an average of $22,174 for
each of the nation’s 2.3 million farms. Even with this
type of expenditure, many farmers are still in perilous
financial straits.
One approach to solving the farm crisis would be to
make the system more marketing-oriented. Another


for FRASERBanker, October, 1984
Federal Reserve Bank of St. Louis

approach is look at agriculture as a “ public utility.’fc
This approach would bring even greater government
involvement in production agriculture.
Personally, I favor a more marketing-oriented farm
program. I feel the best long term answer to the farm
crisis is no government farm program at all, but to l e #
supply and demand dictate prices. A key element in
this program would be to increase demand, which is ex­
tremely difficult given our heavy dependence on export
markets. These markets are so intertwined with politi­
cal, social and major financial markets, making i #
idealistic to think that indeed a pure supply and de­
mand system could be practically implemented.
Unfortunately, with those thoughts in mind I feel
the federal government has no choice but to implement
some sort of supply-oriented program. Hopefully!®
something short of a “ public utility approach.” Im­
mediate help to the agriculture sector is paramount in
the eyes of financial institutions and I think society as
a whole. In light of this, I think the key elements of the
1985 farm program should be as follows:
1. Require a set-aside program that would cause a
greater amount of production to be idle. Personally, I
favor a sytem that restricts the number of bushels pro­
duced in deference to acres set-aside.
2. Focus on increasing export financing subsidies. ®
3. Set loan and deficiency levels that will be high
enough to induce greater participation. Perhaps the
new farm program may need to delete the provision
that limits the size of program payments to large pro­
ducers. A limit on payments encourages larger pro-®
ducers not to participate in set-aside programs. A man­
datory participation program also may be needed,
given our huge supply levels.
Stakes in the 1985 farm debate are extremely highm
That stake is not only the prosperity of farmers anc^
ranchers, but also the economic viability of related
businesses and the 22 million jobs created by those in­
dustries. The fundamental question we as a nation
need address is, “ What is the purpose of our farm pro-^
grams?” Is the purpose of our farm program, to con ®


See you in
New York C ity !
All 10 of us will participate in the ABA
convention in New York City, October 20-24.
We’re looking forward to meeting old friends
and making new ones. We want to affirm our

commitment to finding out about your bank’s
needs and concerns. Our top management will
be participating in all the convention activities
and look forward to visiting with you.

See you there!

Crosby Kemper

Dick King

Mick Aslin

Byron Thompson

Lyle Wells

of the Board,
United Missouri Bank
of Kansas City, n.a.

United Missouri Bank
of Kansas City, n.a.

United Missouri
Bancshares, Inc.

Vice Chairman
of the Board,
United Missouri Bank
of Kansas City, n.a.

Vice Chairman
of the Board,
United Missouri Bank
of Kansas City, n.a.

Pete Genovese

Wally Beck

Dick Brooks

Peter Gabrovsky

Vice Chairman
of the Board,
United Missouri
Bancshares, Inc.

Phil Straight

Vice President,
United Missouri Bank
of Kansas City, n.a.

Vice President,
United Missouri Bank
of Kansas City, n.a.

Vice President,
United Missouri Bank
of Kansas City, n.a.

Vice President,
United Missouri Bank
of Kansas City, n.a.


Members FDIC

United we grow.Together.

Kansas City
10th and Grand o P.O. Box 226
Kansas City, Missouri 64141
(816) 556-7000
Federal Reserve Bank of St. Louis

St. Louis
312 North 8th Street o P.O. Box 1126
St. Louis, Missouri 63188
(314) 621-1000
Northwestern Banker, October, 1984

trol price levels?, or to attempt to keep in business
those producers who cannot compete at market com­
modity price levels? In the short term, there is probab­
ly no choice but to let the farm program try to accom­
plish both.


# mm,

Senior Vice President
Hayesville Savings Bank
Hayesville, la.

into agricultural production, confident of an economi­
cally sound future.
• It might consider subsidizing the export of certain
commodities when favorable.
• It might consider research on the utilization of
some present farm commodities and research on pro-,
ducing more of others.
The ultimate intention of the board should be to
combine these targeted programs to produce a more
uniform, stable and consistent long-term agricultural
policy. If future programs are to be effective they must^
be consistent, because farmers are among the best ap­
plied economists; that is, when given the rules they can
figure out the game. In addition, the new program
must have the ability to address the individual needs
of particular segments of agriculture, rather than<
today’s “ broad brush” approach.


ERHAPS the potent Chinese curse applies: “ May
you live in interesting times.” Whether contri­
buting to our interesting times or not, the old farm pro­
grams are recognized as having outlived their useful­
ness. Those former programs were intended to stabilize
farm prices and enhance farm income, but in many
cases have done neither. Now it can be seen that while
agriculture has changed, the farm programs have not.
So, as we turn to constructing a new farm policy for
the future there are many possible alternatives to re­
place today’s system in which each year an intense job
of lobbying with a single bureau chief produces ex­
tremely wide program swings. Included in the alter­
natives are farm revenue insurance, outright produc­
tion controls, targeted programs for low resource farm­
ers, a free market policy and a market-oriented price
support policy. My preference, however, is for a long­
term, consistent, goal-oriented policy; yet, where flexi­
ble supports and programs would address particular
I submit that a Board of Governors, similar to that
at the head of the Federal Reserve Bank, could more
easily determine overall needs and the most appro­
priate governmental response, and still consider
targeting programs, to address the need of individual
commodity producers and regional or economic seg­
ments of agriculture.
In the broad view, overall supply and demand would
be considered. Interests of livestock producers as well
as grain farmers could be consistently addressed. Ex­
ports could be cleared. But in particular situations,
with local cooperation, the needs of individual regions
could be addressed in the areas of farm credit, rural
development, education and training, transportation,
soil erosion and commodity production control or
The Board of Governors might consider many
changes. For example:
• Tax laws such as those that now encourage the
feeding of cattle for tax loss in competition with profitoriented farmers should be changed.
• It might consider changing Federal Crop In­
surance which so inconsistently addresses the needs of
livestock farmers compared to crop farmers.
• It might consider that today the USD A is both
subsidizing the building of terraces and at the same
time penalizing people who tear up grass land.
• It might consider targeting a program for begin­
ning farmers to insure that a new generation can move

Banker, October, 1984
Federal Reserve Bank of St. Louis

Retired Sr. Vice Pres.
Bank of America
Consultant to MASI
Burlingame, Calif.


SUSPECT that the new bill will be far less tradi­
tional than previous bills have been and that commo-(
dity and farm income concerns may represent only a
modest part of the whole bill.
Lawmakers are going to have a particularly hard
time putting a bill together that can be voted upon.
There are so many concerns, diverse in nature, strong-^
ly articulated, and mixed in with emotion-charged con­
cerns, opinions (some well founded; others based on
shakey premises), biases, vested interests, etc. that
will have to be taken into account. However, I believe
that supply pressures, mainly a result of the great pro-*
duction capacity of the American farmer, the high
value of the dollar which reduces our export volume,
our dependence on off-shore sales for maintaining the
viability of our agribusinesses, the decline in the condi­
tion of the private and public infrastructure that per-*
mits the U.S. food system to operate in such an envi­
able way, the loss of soil and the drop in water tables
and water quality, the poor outlook for the rebuilding
of the liquidity of LDCs which represent the main hope
for growth in our exports, are among the concerns we
all will need to address to ensure a Farm Bill that will
promote the long term health of U.S. agriculture.
Of course, there are farm families, and some agribus­
inesses, that are experiencing inadequate income,
levels, and some are attempting to carry too mucn
medium and long term debt for which cash flows are
inadequate. There have been pleas for moratoriums on
farm debts and/or reductions in interest rate levels.
Yet, a large percentage of the commercial farmers are^
not in financial trouble, and a recent study I read in
one of the farm publications stated that it was not high
interest rates that were responsible for the farmer’s fi­
nancial troubles, it was simply Mismanagement!
Keeping in mind the failure of the government’s di-^
saster programs, similar recent experience with priceNorthwestern Banker, October, 1984

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J\.K IF K IN Co.

Established 1
Federal Reserve Bank of St. Louis


“ Over the last several years, studies have been underway to*
determine the feasibility of a farm income insurance program .”
and income-support programs, the inventory carryover
costs, the inability of the programs to really provide
help for the class(es) of farmers for whom the benefits
of the programs were initially designed to go, and the
increased number of acres in crops, acres that are “ sen­
sitive” to erosion or are located in areas that are prone
to suffer from lack of moisture, or are frequently hit by
unseasonal freezing weather, sand or windstorms, in­
sect infestations, I would have the following sugges­
The ASCS offices around the country now have good
histories of farmlands and the annual crop by crop
yields each farm enjoyed or suffered. The high risk
farming areas should be delineated; these would be the
farms having a history of highly volatile incomes due
to the effect on yields of natural disasters, and the
farms that required a disproportionate percentage of
payments made under the various disaster and emer­
gency relief programs.
Make these farms ineligible for price support or in­
come support programs, ineligible for disaster pay­
ment programs, and , if participants in the premiumsubsidized all-risk crop insurance program, make cer­
tain the premiums reflect the actual risk of providing
the coverage. In other words, with all the consistently
productive farmland that is fully capable of keeping
the supply pipelines full, why saddle the taxpayers
with these expensive programs to support highly mar­
ginal production? Also, the high costs of the federal
farm programs are poor public relations for the agricul­
tural industry. These marginal lands should be back
growing grass and/or forest. Economic pressures may
not be adequate to cause the shift. Tax concessions
may have to be made until such time as the new
ground cover is established.
W e’ve had deregulation in the banking, railroad,
trucking and airline industries. The U.S. meat business
is a mixture of the highly regulated and the relatively
unregulated. Examples of these are the red meat and
the poultry businesses, respectively.
The gains the poultry people have made in market
share is well known. The leaders in this industry are
highly integrated from growing of breeding stock
through processing and distribution. A lot of money is
committed to research and development each year.
Forecasters predict a continuing increase in the per
capita consumption of poultry with a decline or, at
best, a stabilizing at present levels of red meat con­
By contrast, the various factors that make up the
red meat business—breeder, cow/calf/stocker, feeder,
packer, jobber, distributor—are in competition with
one another. That fierce competition does not seem to
result in the same gains in animal productivity, in de­
velopment of new products, in changes in operations,
and cost/price efficiencies that have been seen in the
poultry business. Only a cooperative organization can
integrate in the red meat business to the same extent
as the poultry people have combined various opera­
tions under one ownership.
Banker, October, 1984
Federal Reserve Bank of St. Louis

Is now the time to think about deregulating the red^
meat industry? Competition from marketers of other
meats which have been produced either domestically
or in the EEC, Australia, Latin America, New Zealand,
Canada, with some producers enjoying the protection
of quotas, subsidies, and export support/promotion^
programs would almost mandate that the red meat in­
dustry be unshackled from some of its traditional con­
Over the last several years, studies have been under­
way to determine the feasibiliity of a farm income in­
surance program. It may be a concept that farmers
who are becoming much more attuned to total resource
management would endorse in as much as the forecast
is for years of price volatility and more frequent “ un-.
seasonal” weather. If income protection insurance is*
considered, premium subsidies should be minimized,
and the insured’s premiums should reflect the consis­
tency, or lack of it, of individual farm income as income
is affected by prices and yields. Farming operations in-^
volved with highly variable income-producing crops or 1
those farming marginal land, should pay high premium
rates; the low rates should be assessed on the consis­
tently high income lands. Of course, the extent of cov­
erage will also govern the premium cost of the policy.^
There are a lot of important issues that will need to
be considered in the 1985 Farm Bill. The foregoing are
just a few thoughts that may be too controversial or
too discriminating to think about in this decade. One
other thought is to extend to the private sector addi-j
tional means to finance physical storage & handling fa­
cilities and the attendant soft-ware warehousing pro­
grams to permit more LDCs to take sizeable quantities
of U.S. commodities and minimize the losses from
spoilage and gain the advantages of large quantity 4
bulk purchases.

Executive Vice President
The Citizens State Bank of
Finley, N.D.


HE Federal Farm Program is a very complex issue^
and is certainly affected by a whole host of factors,
both national and international.
An effective Farm Bill must address more factors
than just ensuring that our U.S. farmers meet their
costs of production through a mixture of higher grainy
loans, target price levels and diversion programs.
Congress must deal more efffectively with U.S.
trade deficits, the strength of the dollar and our grain
export program. However, until such time when the
U.S. can aggressively compete in the world grain trade^
and the American farmer can realize maximum effi-


Northwestern Banker, October, 1984

^ cien cy from his farm operation and produce with a free
market environment, it appears that the stop-gap mea
sures of the past will have to continue.
Therefore, the 1985 Farm Bill should contain target
price provision at least at present levels, along with ex­
i s t i n g loan rates. The bill must contain provisions for
expanding and aggressively promoting the U.S. export
_________________ program.

is needed for the long term. A high loan price really en­
courages the government being the marketplace rather
than the producer seeking out the true marketplace.
The loan rate should provide a floor price low enough
to discourage other exporting countries from undercut­
ting U.S. grain in the world markets. High support
prices usually necessitate cutting back production to
maintain artificially high local prices. We cut back but
our competitors do not. The U.S. share of world agri­
culture trade has fallen from 49% in 1980 to 38%. I
question the large reserve and why the U.S.D.A. and
the American farmer should be the residual supplier
for other countries of the world. However, I think a
small reserve may be necessary to make a program
work satisfactorily by forming a cushion between good
Vice President
and bad production years. Income deficiencies could be
Commercial National Bank
made up with target prices and deficiency payments.
Peoria, 111.
These support prices would have to be lowered gradu­
ally so as to not place too much financial stress on the
American farmer.
I l l ELPING to write the provisions of the 1985 Farm
2. Use total tillable acres for each farm and not crop
1 Bill is a mighty big task. U.S. Agriculture has had
history to determine crop acreage allotments, if needed.
several bills in past years which have all had some
With past programs the livestock farmer has found it
shortcomings mainly because of changes in world eco­
very difficult to be in compliance because of a large
nomic conditions and environmental conditions, both
grass and legume base. Many of the livestock farmers
•being nearly impossible to predict and work with.
are severely stressed financially and could possibly
The 1985 Farm Bill is being discussed under adverse
have been helped with a more compatible program.
economic conditions. Many farmers are facing very se­
3. Use soil classification and productivity rating to
vere financial times - some have already sold out their
determine production level for each farm. This pre­
farming operation and many more will be facing the de­
sents people from falsifying production records and it
c i s i o n . High interest rates have become a major farm­
also gives the livestock farmer a chance to be on an
ing expense which has greatly added to the farmers’
equal basis with the grain farmer. It is very difficult
dilemma. The Federal deficit and high interest rates
for the livestock man to prove his yields when all grain
have as much impact on agriculture’s future as any
is fed.
farm bill. The government borrows to finance the
4. Keep the voluntary, nonpaid set-aside. Adjust the
•deficit and that drives up the interest rate and it hurts
acreage to be taken out of production from year-to-year
the farmer from the production cost side as well as
to keep from building up a burdensome surplus.
from the demand side.
5. There should not be an advance deficiency pay­
The strong U.S. dollar, world recession, increases in
ment. This adds considerably to the government’s cost
subsidized export from foreign countries have caused
of administration and the payment may have to be re­
•farm exports to drop, and a strong export of American
funded should the market act differently than ex­
agricultural products is greatly needed. Along with
pected or projected. This may create a false increase in
this, demand for food domestically remains relatively
the net farm income one year and then depress it the
level and per capita demand for red meat has dropped.
following year.
^Crop production prospects at this time look good,
6. Set-aside acres should be established and cared for
Cvhich should result in more than an adequate supply
according to the rules set down by the Agricultural
of grain and dampen hopes of increased prices.
Act or Program. All acres should be seeded to a soil
Income distribution further complicates the agricul­
building crop and weeds properly controlled to prohibit
tural situation because all farmers are not affected the
seed formation.
^same by a problem, nor do they all benefit equally from
7. Recommended soil conservation measures should
a solution. A small percentage (4.6%) of our farmers
be followed on each farm in order to qualify for price
with cash receipts of $ 200,000 or more produce nearly
and income support. These practices should be estab­
one-half of the total U.S. output while more than (71%)
lished by the County Soil Conservationist along with
of the farmers with cash receipts of $40,000 or less pro­
the ASCS, and based upon soil type and permissible
d u c e about 12 Vz% of the products sold. Many of the
soil loss.
smaller farmers will receive only marginal benefit from
Although the United States has been the significant
price support and target price programs, with the
food supplier of the world since the 1970’s, most Amer­
larger farmer receiving more benefit.
icans today know almost nothing about agriculture.
However, any attempt to limit the benefit to the
This is due to social changes that have taken place
^larger farmer could reduce their program participation,
since the days when we were an agricultural nation. To­
resulting in a failure of the progam to accomplish its
day, only 3% of our people live on farms and 90% have
goals. The following suggestions may be considered.
been non-farm for 30 years. Agriculture has been un­
Lower price support loans and target prices. wisely used as a political weapon in world economic
Higher prices temporarily boost farm income. How­
struggles. Our food supply and future well-being will
e v e r , high support prices could result in further losses
continue to be at risk unless steps are taken to ensure
of export markets, and strong export business is what
careful planning and honest practice in agriculture.

Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984

Obviously, all of these objectives will be nearly im-^
possible to meet, even with a program targeted at two
tiers of production agriculture.

First Central State Bank
DeWitt, la.


OLICY to address today’s agriculture must be di­
vided into short-run and long-run considerations.
Short-run policies should deal with the current debt
problems until the overall agricultural economy finds a
new balance between profitability and the industry’s
debt structure. Policy to address the immediate debt
and cash flow problems cannot wait for the 1985 Farm
Bill to restore profitability, but must be addressed
soon to dampen further rapid deflation in asset values.
Such short-term policy should include provisions for
debt restructuring and extension, further guaranteed
credit authority, along with a non-political review pro­
cess to insure that deserving operations receive the
benefits of whatever programs become available and
do not act to keep poorly managed, inefficient opera­
tions from failing.
Options for Future Farm Policy
Long-run agricultural policy will be the subject of
the 1985 Farm Bill and should deal not only with in­
dustry profitability, but must consider how to wean
agriculture from expensive income and credit support
programs. To be debated will be whether future farm
policy will have a social orientation or a market orien­
A social orientation would imply maintaining the
current structure in agriculture by slowing or prevent­
ing future farm attrition and consolidation. Such a
policy would entail substantial and expensive subsidy
A market orientation implies allowing the market to
establish commodity prices and farm profitability, pro­
bably leading to continued consolidation and attribu­
tion of medium-sized farms.
A possibility which may receive attention is a twotiered government policy which would provide govern­
ment benefits to small and medium-sized operations
while allowing the marketplace to determine profit­
ability of larger farms.
Such a two-tiered approach may appear attractive to
politicians who will attempt to create agricultural poli­
cy which appears to meet the following criteria: 1 )
create profitable conditions for all farmers and, there­
by, maintain the viability of the “ family farm,” 2) re­
cognize the reality of supply and demand, 3) encourage
exports, 4) provide a good supply of food at reasonable
prices and 5) be at least cost or at least affordable by
the government.
* Mr. Tubbs is a member of Secretary o f Agriculture John Block's
banker advisory committee. In that capacity, he was invited to meet
with President Reagan and Secretary Block in the White House on
September 18 when President Reagan announced his short-term pro­
gram to assist debt-troubled farmers. Much o f that program is what
Mr. Tubbs and several other bankers had discussed earlier with Sec­
retary Block.

Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis

Where Should Budget Be Spent?
The question for debate is: “ Where should the avail-able budget be spent?” Budget allocations, in my opi­
nion, should be concentrated on supply control and
market development, with increased emphasis shifting
toward market development. Supply control programs
tied to target prices were supported at world market-—
clearing price levels. Support at higher levels only^
creates overproduction and encourages foreign compe­
While in the near future supply control programs
should be maintained, set-asides should be related tew
total crop acre base and not be based on a history oi
row crop production. In this way, livestock farmers
and those who participated in soil-conserving methods
such as crop rotation and forage production are not
Innovative thinking should be applied to two key
problems of agriculture — overproduction and conser­
vation. These problems have been aggravated by
marginal lands being brought into production. Is there
a way to begin to reverse the process by retiring©
marginal land back to soil-conserving uses? In this
vein, I believe new approaches to forage production in­
centives should be explored, while keeping in mind the
impact it might have on the livestock industry. Two
such programs have been suggested and should receive©
further attention. Further, whatever set-aside provi­
sions or support programs would be included in the
new program, cross-compliance with accepted conser­
vation practices should be mandated.
There should be a renewed emphasis and commit ©
ment in the new program on market development for
our agricultural commodities, both in terms of develop­
ing new uses for the primary commodities and in
developing new overseas markets. Emphasis on export
expansion should consider an expanded PL-480 Food®
for Peace Program and more extensive use of blended
credit programs to promote sales.
In the way of safety nets, the government should
not have to be in the business of providing band-aid
type safety nets for every agricultural emergency or di-®
saster. Rather, it should provide an attractive and af­
fordable insurance program so that producers can in­
sure against these events. Lenders must, in turn, pro­
mote the use of these insurance programs.
Opportunity Looms for Young Farmers
The current debt crisis presents special problems for
a number of producers and what is a problem for one
may present an opportunity for another. That is, we
may be reaching a point where entry into agriculture is©
more financially possible now than at any time in re­
cent memory. Therefore, expansion of the farm owner­
ship programs through FmHA for young and beginn­
ing farmers should be carried out in order to supprt
asset values, particularly land. A t this time, considera-©
tion should also be given to relaxing the standards for
those who qualify for such loans, so that farmers who
may be “ a cut above” the normal FmHA borrower
might qualify for these ownership funds.
Whatever program is established, it should be long-©
range in nature, designed to take the agricultural in-

2. Remove production control programs and spend
the money on export market development. As soon as
we announce “ PIK type” programs, our competition
plants more acres and we lose more of our export mar­
ket share.
3. Recognize that improved marketing is one of the
largest needs of agriculture on both the domestic and
international level, by channeling government efforts
toward improving the farmers knowledge of alterna­
tive marketing opportunities.
An overwhelming problem which must be addressed
is the upward pressure on interest rates caused by
massive government spending. If no other method can
be implemented, across-the-board spending cuts must
be mandated to reduce the growth of our federal deficit
in order to get interest rates down. Only reduced gov­
ernment spending will reduce rates over the long run.
All other methods will merely postpone our economic
problems and further disrupt our economy at a later

^dustry toward a planned goal. Long-term objectives
w would give farmers something on which to plan and
would hopefully, eliminate year-to-year changes in pro­
gram benefits and short-term crisis and band-aid type

President & CEO
First Banks Great Falls
Great Falls, Mont.
EVE RAL prominent ag economists and historians
have theorized that if we were to design an agricul­
tural program to decrease net farm income and stimu­
la te production, we would be hard pressed to improve
on the existing one, or those that have plagued us in
the past. That would seem to me to be true and, then,
the problem is compounded b y inconsistency from one
administration to the next.
^ It appears that the only solution is to lower the sup­
port price so our products can be competitive in world
markets. Wheat, in particular, needs heavy export
sales as our ability to produce far exceeds that to con­
sume domestically.
* I f the Department of Agriculture deems it necessary
to limit production and provide price support, then
limit units of production sold, not acres seeded. Acres
seeded provide a stimulus for production. Storage
should be at the expense and risk of the producer, thus
^reducing the incentive to produce.
While I question the merits of price supports and
production controls, an absolute must if they are pre­
sent is to limit participation to historical producers.
Do not provide incentives for additional marginal
'lands to be cleared, cultivated or diverted to surplus
crop production.
In summary, three key provisions in the 1985 Farm
Bill would be:
Lower support prices so our production is compe­
titiv e in world markets.
Limit units of produce marketed or supported and
do not try to use acreage controls to reduce production.
Do not allow new producers to qualify for support
.prices and thus further aggravate the supply situation.

Vice President
® First National Bank
Philip, S.D.
HESE are my suggestions for a 1985 Farm Program:
Phase out of Government Price Support
grams, reducing loan rates through CCC to a “ safety
net” rather than a floor for market price. Besides being
expensive, artificial price levels send false signals to
£ producers and price our ag products above world mar­
ket levels, thereby pricing us out of the market.

Federal Reserve Bank of St. Louis

Northwestern State Bank of
Orange City, la

HE 1985 Farm Bill needs to be a comprehensive
act in which we will have to take into consideration
our nation’s attitude toward foreign trade, foreign rela­
tions, export credit availability and terms, as well as
our production capabilities.
Some twenty-five years ago it was deemed that the
United States farmers would be the provider of food
for the world. This is a myth and we, as a nation, need
to realize that we have much more food producing
capacity than can be absorbed within the present
world trade and economic structure. There are other
areas in the world that have agricultural production
capabilities that are very competitive with ours on the
world market. There are even more lands available in
such countries as Brazil, Argentina, South Africa and
India that are capable of producing huge amounts of
grain which ultimately would be turned into food. The
only thing holding that production back is the fact
that the infra-structure — the roads, grain elevators
and ports to handle the grain — have not been built.
Therefore, it would seem that the emphasis in the
1985 Farm Bill will need to be one that intertwines our
foreign relation activities, our export credit activities,
and our own production levels in order to get a strong
cash flow coming back into our agricultural sector of
the economy.
In addressing the huge production capacity of our
United States farmers we need to look at a provision in
pro­the bill for a long-term land retirement program tied to
conservation practices on land that is not suitable for in­
tensive farming. In addition to this, we will need pro­
duction controls and quotas in order to stay away from
having a huge grain inventory under the government
loan program which is very expensive.


Northwestern Banker, October, 1984

Our land grant colleges of agricultue must help to
educate and influence the people and processes affect­
ing the future of agriculture. Agricultural colleges
should contribute more actively to the development of
agricultural policy. They have the resources of staff,
research, experience and world economic relationships
to help in the decision-making process by which agri­
cultural policy is established. The policy-making pro­
cess has become more complicated and the issues more
urgent, which makes it imperative that the colleges of
agriculture become more involved.

Vice President
First Bank Aberdeen
Aberdeen, S.D.
HE CURRENT economic problems in agriculture
trace largely to internal and International econom­
ic policies - not agricultural policies. Agriculture is now
a minority group in America. Farmers and ranchers
are going to have to learn to live with the fact and com­
fort themselves accordingly. Policywise, that may
mean forming coalition with other groups to influence
non-agricultural policies, which are shaping their fu­
As for the 1985 legislation, don’t expect it to bring
about a sudden improvement in agriculture.
On the internal basis, I think the two most impor­
tant problems to be faced are the Federal budget defi­
cit and the growing dependence on our foreign mar­
The new legislation is going to have to be more sup­
portive of the middle-size, agricultural, full-time family
farm, so that this particular segment will be able to
prosper. Large farms probably have the capital struc­
ture to sustain the ups and downs of the farm econo­
my, while the middle-of-the-road are the ones that will
suffer during distress periods. The small farmer will be
supporting himself by part-time jobs and should not be
relying on legislative policy to support his part-time
The key to the middle-size farm success is the price
to be paid for its production. This cannot be artificial
government supported farm program on a long-term
basis. It is essential that Congress face up to the fact
that we must expand the foreign markets to support
the increased production we encouraged during the
years of the ‘ 60s and ‘70s. We must become a reliable
supplier to the foreign market, develop this confidence,
and see that it is never again used as a political football
to attempt to influence foreign policy.
If agriculture becomes a servant of foreign policy,
we will continue to have long-term agricultural difficul­
There is also emphasis coming to bear for building in
conservation and environmental influences on the farm
sector. I feel that if this influence becomes too much of
a consideration in the Farm Bill, that long-term effects
will be negative to a strong agricultural economy.


Banker, October, 1984
Federal Reserve Bank of St. Louis

“ The key to the middlesize farm su cce ss is
the price to be paid
for its production.”
It is important to conserve our resources, but it
must be done in a balanced fashion, along with our
needs for farm production. I am certain that budget re­
quirements for agriculture will influence a lot of the
legislation, but if a more stable, financially strong^
agriculture can support its own financial needs, gov­
ernment should gradually be able to be relieved of the
responsibility of stop-gap measures.
Any legislation that can help find the solution to our
excess production will have to be centered around th«0
development of foreign markets and trade. As the
world economy is improved, it is my thinking that U.S.
agriculture should benefit.

Executive Vice President
and Trust Officer
Havana, 111.


ERE are my thoughts pertaining to a 1985 farm
Maintain a free market system. Let supply and de­
mand work to establish our commodity pricing.
Have a FmHA program funded that would assist
the problem farmer. This should be for a guaranteed
program and also their insured program. This would
enable the farmer to restructure debt and buy time,
until the agriculture picture improves.
The Secretary of Agriculture should have the
authority to mandate production controls so that we
are not buried with a commodity. This needs to be done
in a way that all tillable acres are included across the^
board. Leaving out mud holes and sand dunes does not
help contol production. A proper cover crop should
also be required. This will contribute to better conser­
vation efforts.
Support should be given for a subsidized export^
program. Where we are competing in the world market
with countries that practice unfair trade tactics, we
need some financial assistance to remain competitive.
This could also be considered a humanitarian gesture
to help feed some of the starving people in the poorerj
There are other items that concern us, immensely.
Some of these are government deficits, high interest
rates (whereby the rich get richer and the poor get
poorer) and, please, no more embargoes!
A healthy ag community is vital to everyone.


In regard to the agricultural credit crisis that is now
taking shape for many agricultural producers, the
1985 Farm Bill needs to address a provision for giving
construction assistance to those producers so they will
be able to eventually repay their indebtedness. This
would not be a bail-out for banks or for poor operators,
but a program that would be available to farm
operators that are top producers but have been over­
extended with their credit.
In any event, the 1985 Farm Bill needs to be a long­
term agricultural program that will allow the farm pro­
ducers and the providers of farm credit something they
can count on to provide profits which they can use to
repay their indebtedness. Both the producers and the
lenders can work out of their credit problems if there is
a program in place that gives a good operator a chance
to make a profit.

Vice President
First Security Bank of
Montana, Glasgow, Mont.
^ O

OME hard choices will need to be made in determining the provisions of the 1985 farm bill. No
farm program at the same time gives farmers high in­
come and complete freedom, gives consumers plentiful
food at low prices, and gives government good reserves
H for emergencies, a low administrative cost and a low
tax burden.
The financial crisis in agriculture today cannot be
directly attributed to overall ag policies of the past.
Current financial problems stem more from drought,
% embargo s, over expansion and leveraging in the 70s,

spiraling input costs including high real interest rates,
and other fall-out from two decades of inflation. Herein
lies a real danger in formulating the 1985 farm bill.
Commodity programs may become distorted in an at­
tempt to solve the debt problem. Price support provi­
sions would need to be unrealistically high to solve the
economic problems of farmers most heavily burdened
with debt. These problems need to be dealt with
Satisfactory commodity programs need to be long­
term in nature. The principal purposes of commodity
programs are to create an orderly economic environ­
ment for agriculture and to hold a strategic reserve of
farm production capacity. It is well to recognize that
commodity programs do not raise the net income of
farmers over the long run as the benefits of higher
prices get capitalized into land values. Sudden, unpre­
dictable shifts in policy do allow for good planning on
the part of producers.
We should not price ourselves out of the market.
There appears to be little point in holding commodity
prices above the free-market equalibrium level over ex­
tended periods. Loan rates are best set to allow compe­
tition in markets, particularly the export market and
to allow substitution of wheat for feed. Agricultural
resources respond sluggishly to falling returns; how­
ever, given time, adjustments will be made.
Our nation has a vested interest in maintaining the
commercial family farm unit as a form of ownership
structure since it is known to be the most efficient in the
world. Therefore, it cannot be justified to use tax­
payers dollars through agricultural programs to pro­
vide relief to the many micro part-time farmers or sub­
sidize the large macro farm. Benefits of any commodi­
ty programs should be directed to the commercial
family farm segment. Many people would argue that
this has not been the case in the past. The sod busting
problem which is a direct result of government pro­
grams is a current prime example. Spin off effects need
to be studied thoroughly and then the programs need
to be fine tuned accordingly.

Guide to Asset/Liability Management
(Continued from page 14)
In an effort to be more precise, duration usually re­
quires you to look at every bank transaction, because
every transaction, not just balances, must be dis­
The advantage of the duration approach is that it is,
theoretically, more accurate. The main disadvantage,
and overwhelmingly so, is the enormous volume of
data and calculations required to use it. Even with the
most sophisticated computer processing available to^ day, it may not be cost effective. It certainly is out of
the questions for the small to medium-sized banks.
Furthermore, there are many unresolved issues regard­
ing the discount rate: What is the appropriate rate?
Should the rate change over time? Should a different
0 rate be used for each asset and liability category? As
you can see, with duration, a banker is faced with a
large volume of data to process and maintain, potential
high costs and many unanswered questions.
^ N E X T MONTH: The Gap Management Approach.
Federal Reserve Bank of St. Louis



Management-Science Approach
Uses of Funds as Allocated
by Liquidity - Profitability Center

Sources o f Funds From
Liquidity - Profitability Center

Allocation Depends
on Restrictions
Northwestern Banker, October, 1984


LEFT— First National Correspondent Banking Department Head Bill Manring visits with Wells Hull, pres., Wells Bk., Platte City, Mo., and
Day Miller, dir., Exchange Bk., Fairfax, Mo. RIGHT—First Stock Yards Bank Chairman John Karn (second from right), welcomes Hugh
Loudon, pres., Gary Beggs, sr. v.p., and Stan Honken, exec, v.p., all with Citizens State Bk., Clarinda, la., to Market Day.

St. Joseph Market Day At The Yards
Associate Publisher
EARLY 250 agri-bankers from
Missouri, Kansas, Nebraska
and Iowa recently attended the 28th
annual Market Day At The Yards.
Co-sponsored by the First Stock
Yards Bank and First National
Bank of St. Joseph, the one-day
event includes a morning tour of a
local St. Joseph industry and an af­
ternoon agri-business session. The
tour this year was of the Globe Bat­
tery plant, which is the largest pro­
duction facility of its type in the na­
tion. The bankers left the plant
“ charged-up” for the afternoon
U.S. Congressman Tom Coleman,
from Missouri’s 6th District, was
the keynote speaker and took the op­
portunity to share with the bankers


his concerns on the sagging agricul­
tural economy in the midwest. He
reminded the bankers of his continu­
ing efforts to find short term solu­
tions to the wide range of problems
facing both lenders and borrowers.
He noted that in a recent letter to
FDIC Chairman William Isaac, he
urged that federal bank examiners
use as much forebearance as possi­
ble in their examinations. “ It is not
in the public interest for examiners
to recommend foreclosures.” He ad­
ded that since the letter the ex­
aminers have been cautioned on this
Mr. Coleman also is concerned
over the amount of land being held
by the Farmers Home Administra­
tion that is sold at below market
value and thus depresses land
prices. He noted that FmHA has
20,000 acres in his district alone.

PARTICIPANTS in the afternoon panel discussion were, from left: Moderator Jim Reynolds,
pres., St. Joseph Stock Yards; Gary McKinney, Lincoln Grain Co.,, Atchison, Ks.; Glen
Leiser, cattle rep., MFA Livestock Market, St. Joseph, and Eubert Schneider, pork rep.,
Lamborn-Murray-Davis and Co., St. Joseph.

Banker, October, 1984
Federal Reserve Bank of St. Louis

The congressman also called on the^
commercial lenders to assist farmers
within their areas prepare the neces­
sary paperwork required for PCA di­
saster relief funds.
Aware that federal policy is not®
always followed in the field, Mr.
Coleman conducted an extensive
question/ answer period following
his prepared remarks. He asked the
bankers to notify him of specific in-#
stances and cases where they feel
that they did not receive fair treat­
ment from a government agency or
examiners. Most of the responses
dealt with the classification of sub-#
standard credits by examiners. One
banker stated, “ The examiners just
don’t understand things in the
field...they sit in their air condi­
tioned offices with their feet up on #
the desk and just don’t care or un­
derstand. You do it their way or
In closing, Mr. Coleman told the

THE Honorable Thomas Coleman, United

States Congress, 6th District—Missouri,
was the keynote speaker during the a fte r-#
noon ag session.

bankers that if they would come to
• Washington at their own expense,
he would arrange for a group of five
to six to meet with policy makers
“ the highest level. I will open
~ the doors and let you do the
^ talking. ’ ’
Jim Reynolds, president of the St.
Joseph Stock Yards, served as mod­
erator for the panel discussion again
^ th is year. Other panel members in­
cluded: Gary McKinney, grain buy­
er, Lincoln Grain Co., Atchinson,
Kan.; Eubert Schneider, hog rep.,
Lamborn-Murray-Davis and Co., St.
^ Jospeh, and Glen Leiser, cattle rep.,
M FA Livestock Market, St. Joseph.
All panel members offered generally
optimistic forecasts, however, each
voiced concern over “ meatless
^ meals” in American diets. Perhaps
the most notable comment of the
afternoon came from Eubert Schnei­
der. Referring to an 18% drop in hog
figures at the stockyards in August
9 ‘84 compared to August ‘83 he said,
“ That’s a lot of squeals.” He went
on to advise those buying feeder
pigs, “ If you are going to feed 'em
...feed 'em right.”
In closing the afternoon session,
First National President Dale
Maudlin recognized that agri-busi­
ness and agri-banking serve as the
hub of the regional economy. “ We
• have all taken our lumps and bruis­
es. Cooperation will be vital as our
industry emerges from this transi­
tion even stronger. He added this
biblical quote. “ If we faint in days of
• adversity, our strengths are small.”


Aurora Systems Appointees
Aurora Systems, Inc., of Madi*son, Wis., has appointed Terri Beck­
man as manager of its new Minneso­
ta branch, located in Red Wing. The
company, publisher and distributor
of microcomputer solutions for fi­
nancial institutions, also named Cin­
dy Phillips as it’s sales coordinator
for the state of Iowa.
Ms. Beckman has 12 years of
commercial banking experience and
rive years of adult banking and fi­
nance education experience.
Ms. Phillips has five years of mar­
keting and sales training experience
jwith a major insurance company
and has been a sales assistant with
Aurora Systems the past 18 months.
She will work out of the office in the
Woodfield Bank Bldg., 600 N. Mea.cham Rd.—Suite 305, Schaumburg,

Federal Reserve Bank of St. Louis

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Northwestern Banker, October, 1984

RMA Meets Oct. 28-31 in San Juan


BOUT 1,700 commercial lend­
ing and credit officers and their
spouses are expected to attend the
70th Annual Fall Conference of
Robert Morris Associates October
28-31 at the El Centro convention
center in San Juan, Puerto Rico.
The RM A national president for
1984-85 and chairman of the con­
ference planning com m ittee is
Glenhall E. Taylor, Jr., vice chair­
man, SeaFirst Corporation, Seattle,
The keynote address will be
delivered by Charles S. Sanford, Jr.,
president of Bankers Trust Com­
pany, New York. Major addresses

also will be given by C.T. Conover,
Allan Sloan, Sanford Sigoloff and
Mr. Taylor. Mr. Conover is Comp­
troller of Currency. Mr. Sloan is
senior editor of Forbes Magazine.
Mr. Sigoloff is chairman of The
Wickes Companies in Santa Monica,
A wide variety of panel presenta­
tions and small group discussions
focusing on the major problems and
opportunities facing today’s com­
mercial lending and credit officers
will be offered, running the gamut of
lending and management concerns
in small and large banks alike.

First National, St. Joseph
Executive Changes Made

First National Bank. In his new po­
sition, he will be responsible for all
lending functions throughout the
holding company. Mr. Schneider has
been with the organization for many
years, serving as president of First
Midwest Bank of Gower before join­
ing First National Bank in 1982 as
senior vice president.
Two other executives were ap­
pointed to the board of directors of
First National Bank: Lyman L.

W. Dale Maudlin, president of
First National Bank and First Mid­
west Bancorp., Inc. announced sev­
eral organizational changes recently
at a special holding company staff
meeting in St. Joseph, Mo.
Loren W. Schneider has been pro­
moted to executive vice president
and will also serve on the board of
Federal Reserve Bank of St. Louis

Frick, Jr., executive vice president ^
and senior trust officer, and H. Ken­
neth Gilpin, Jr., executive vice presi­
Mr. Frick is responsible for busi­
ness development and trust services £
at First National Bank. He joined
the First National Bank’s trust
department in 1970 and is a gradu­
ate of the Drake University School
of Business and the Drake L a w #
School, Des Moines.
Mr. Gilpin began his banking
career in 1967. He joined First Na­
tional Bank in 1979 and is now re­
sponsible for all support areas o f #
First National Bank and the holding
company. In addition to the promo­
tions above, the board of directors
has established an executive Com­
mittee composed of Mr. Frick, M r .#
Gilpin, Mr. Schneider and Mr.
Mr. Frick, Mr. Gilpin and Mr.
Schneider also will be serving on the
board of directors of some affiliated#
holding company banks.
Mr. Maudlin also announced, with
regret, that Benton O ’Neal, vice
chairman of the board of First Na­
tional Bank and First Midwest Ban-®
corp., Inc. has elected to take early


IBAA and Innerline
9 Renew Their Agreements
Officials of the Independent
Bankers Association of America and
Innerline, a provider of on-line finan­
cia l information headquartered in
Arlington Heights, 111., have re­
newed their contractual agreement
calling for the continued develop­
ment of an electronic communica­
tion s network.
Just prior to that renewal agree­
ment, Innerline announced that con­
tinuous updates of commodities fu­
tures is the newest feature included
On Powers Financial and Commodi­
ties Futures Hedge Management
service. Walter Rapawy, Innerline’s
chief executive officer, said this re­
sponds to the information needs of
*the large agricultural banking con­
stituency of IBAA.
The continuous daily updates of
commodities, livestock and grain fu­
tures are valuable tools for assisting
bankers in evaluating their loan
portfolios,” he stated. The new ser­
vice, he explained, is designed to as­
sist the financial executive with asset/liability management including
education, software information and
daily expert commentary.


Mr. Rapawy also noted another
service Innerline provides so retail
bankers can compare rates on dere­
gulated consumer deposit accounts
to regional and national averages.
That service, Money Market Moni­
tor, provides an up-date listing of 10
deposit account rates categorized
nationally, regionally and by bank
asset size. Weekly yield curves also
are available.

Bank of Montreal Merger
With Harris Bank Completed
Bank of Montreal and Harris
Bankcorp Inc. of Chicago, formally
completed on September 4 the pro­
cess whereby the latter officially
becomes a wholly-owned subsidiary
of the Canadian owned Bank of
William D. Mulholland, chairman
and chief executive officer of the
Bank of Montreal, said, ‘‘This trans­
action gives Bank of Montreal a full
operating capability in both Canada
and the United States, a status
which is probably unequalled by any
other bank.”
The Harris organization, which
will continue to operate under its

own distinguished name, has assets
of U.S. $7.8 billion and is the 34th
largest bank in the United States.
The subsidiary Harris Trust and
Savings Bank manages trust assets
of U.S. $13.9 billion, ranking
seventh in the United States.
An application to the U.S. Federal
Reserve, the regulatory authority of
U.S. banking, received approval on
July 25. The year-long negotiations
were concluded at the Harris Bank
building in Chicago September 4 at
formal ceremonies which saw Bank
of Montreal paying U.S. $546,734,016
for 6,667,488 shares of Harris
Bankcorp Inc.
B. Kenneth West is chairman and
chief executive officer of Harris

Sallie Mae Launches Plan
For Minority Students
The Student Loan Marketing A s­
sociation (Sallie Mae), Independence
Federal Savings Bank, and the Of­
fice for the Advancement of Public
Black Colleges recently announced
inauguration of a $45 million as­
sured access plan to make student
loans available to minority students.

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
words like service, responsiveness,
personal attention, expertise and
professionalism. And new-fash­
ioned words like discount brokerage
for your customers and recycling
Money Market
Mark« Funds. Call John Crotty, Kathy
Hardy, Max Roy or Andy Ruments... people who
reflect a continuity in policy and commitment.
Call toll-free 1-800-621-8991,
]p m
in Illinois call 1-800-572-2498.

m l war.

Drovers Bank« «

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



BMA Elects Smith Brookhart President
MITH W. Brookhart III, presi­
dent of the Centerre Bank of
Branson, M o.,
w as in s ta lle d
September 19 as
president of the
Bank Marketing
Association for
1 9 8 4 -8 6 . M r.
Brookhart, who
served during
the last year as
BM A first vice
president, took S.W. BROOKHART


office during the final general ses­
sion of the Association’s 69th An­
nual Convention at the New Orleans
Marriott Hotel.
He succeeds B M A ’s retiring pres­
ident, Barry I. Deutsch, senior vice
president and head of marketing and
communications at the Mellon
Bank, Pittsburgh.
Other members of the new BM A
officer team installed at the conven­
tion are: John A. Russell, vice presi­
dent and director of marketing,
Banc One Corporation, Columbus,

first vice president, and Michael P.
Sullivan, vice president-corporate
communications, First Union Na­
tional Bank, Charlotte, N.C., second
vice president.
The three officers will serve BM A
through June, 1986. The extended
21 -month term is the result of
special action by the BM A board of
directors last July in which it was
decided the Association needed to (
have its administrative and fiscal
year coincide.
A native of Duluth, Minn, and a
graduate of Iowa State University
with a degree in industrial ad- (
minstration, Mr. Brookhart began
his banking career as a trainee with
the Plaza State Bank, Des Moines,
in 1964.
He joined Centerre Bank of Bran- ^
son, formerly the Peoples Bank &
Trust Co., in 1967 as cashier and
later was promoted to vice presi­
dent. Centerre Bank is an affiliate of
the $5.3 billion Centerre Bancorp., <
St. Louis. Mr. Brookhart was named
president of the Centerre Bank of
Branson in January, 1974 and
elected chief executive officer in
1977. He serves on the executive ad- {
visory council of Centerre Bancorp.

Harris Joins Plus System
Harris Trust & Savings Bank,
Chicago, recently became the 34th 1
proprietary member of Plus System,
Inc. following acceptance of its ap­
plication by the corporation’s board
of directors at a recent meeting.
Harris Bank becomes the second*
Plus System, Inc. proprietary mem­
ber in the Chicago area, joining Con­
tinental Illinois National Bank and
Trust Company, which was one of
the original founding members of
PS I when the organization was in­
corporated in April 1982. Continen­
tal will continue as a proprietary
member of PSI.
D. Dale Browning, president of
Plus System, Inc., Denver, an­
nounced recently that Morgan J.
Evans, senior vice president, First
Security Corporation, was elected (
chairman of the board of directors of
Plus System, Inc. Mr. Evans, who is
president and CEO of First Security
Company (a subsidiary of First Se­
curity Corporation), was named b y (
the PSI board to succeed Paul G.
Tongue, who resigned in order to de­
vote more time to a new job assign­
ment with Chase Manhattan Bank,
New York. Mr. Tongue will continue (
to serve as a PSI board member.

Banker, October, 1984
Federal Reserve Bank of St. Louis


^Link X Offers Access to
Kirchman Companies Software
The Kirchman Corporation of
Orlando, Fla., recently announced
its latest banking software com®pany: LINK X, INC., a futuristic
firm responsible for the devel­
opment of personal computer pro­
grams to support the needs of
^A m erica’s financial executives.
w According to Bonnie Mclntire
Smith, president and chief executive
officer of The Kirchman Corpora­
tion, the Link X concept grew quite
^logically from the expanded manw agement role that personal compu­
ters have begun to play in the bank­
ing industry.
Link X, Inc. has a sophisticated
•library of personal computer soft­
ware, known as PERC PAKs, speci­
fically designed to interface easily
with the IBM PC and the mainframe
software systems offered by three
•oth er Kirchman companies: Florida
Software Services, Inc., Omni Re­
sources, Inc., and Kencom, Inc.
Each of these companies has devel­
oped a special mainframe system
• “ link” to provide the all- important
access channel needed to download
collected and summarized infor­
mation directly from the mainframe
data base into the banker’s personal
• desktop computer.
Once on-line, the banker then uti­
lizes his unique library of manage­
ment-oriented personal computer
programs — PERC PAKs — to ana­
l y z e the important mainframe data
summaries. These supportive PC
programs help the banker perform a
wide range of critical “ what if”
calculations concerning every area
• of the bank, resulting in sound and
specific decisions for the current and
future benefit of the bank.

awarded a $2,151,000 contract by
Cummins Employees Federal Credit
Union for construction of a new,
two-story, 19700 square foot main
office building, located on a site ad­
jacent to the Cummins general office

Joe Batten’s Management
Book Is Now in Paperback
Joe Batten, founder and chairman
of the board of Batten, Batten, Hud­
son & Swab, Inc., announces the
printing in paperback of his manage­
ment classic, Tough-Minded Man-

agement. Published by AMACOM,
this is the 33rd printing of the
volume which has been translated in
21 languages.
The paperback edition of ToughMinded M anagement is available
through Creative Media, %BBH&S,
820 Keo Way, Des Moines, IA
50309, and is prices at $10.95.
Located in Des Moines, IA, Bat­
ten, Batten, Hudson & Swab., Inc.,
is in its 27th year and specializes in
management consulting, in-house
training, seminars, speaking en­
gagements, film and audio/visual
production and distribution.

HBE Bank Facilities Gets
•T w o Building Contracts
HBE Bank Facilities of St. Louis,
Mo., has signed two additional con­
tracts for construction of one new
• building and remodeling and altera­
tion of another, it was announced
last month by Fred S. Krummer,
president of HBE Corporation.
United Financial Savings of Ro• Chester, Minn., which w as form ed by
m erger of three local s& ls, aw arded
HBE a $1,822,000 contract for alter­
atio n s and addition s to one of the
original home office buildings, for• merly Reliance Federal.
In Columbus, Ohio, HBE was
Federal Reserve Bank of St. Louis

A computer system can be a fearsome thing. At Systems Resources,
we believe you, not the system, should be in control. With
over 20 years of experience, we custom tailor microcomputer systems
for financial institutions large and small, at competitive prices.
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Northwestern Banker, October, 1984


We extend more than credit.
We extend ourselves.
We believe it’s the long-term
relationship that counts. The kind
o f relationship that develops
because we keep in touch with
you, and travel to your part o f
the country. Learning about your
community - its Main Street

business, seasonal fluctuation,
and economic foundation — is
important to us. In this way, we
can better help you meet tne
needs o f your community with
overline or liquidity loans, and
other services. Extending

ourselves for you is our way o f
life. Wherever you are, whenever
you need us. Call us anytime for
loan assistance and all Corre­
spondent Banking services at

A F & M M a w f NaHBart

Member FDIC (

Correspondent Banking

Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis


Elected in Pipestone

Officers Recommended for MBA Posts
sociation nominating committee
met recently and recommended Clin­
ton D. Kurtz, Roy W. Terwilliger,
James R. Jorstad, and Scott Jones
for endorsement for the top elected
® officers in the association for
1985-86, a ccord in g to A rlene
Michael, Citizens State Bank of
Milaca-Ogilvie, and chairman of the
M B A 1984 nominating committee.
Recommendations will be acted
upon at each of the nine M BA dis­
trict meetings in September.
Clinton D. Kurtz, president, Citi^ zens State Bank of Norwood, is the
proposed candidate for 1985-86
M BA president, to succeed Galen T.
Pate, president, Signal Hills Bank,
West St. Paul. Mr. Kurtz is current^ ly serving as first vice president of
the association.
Roy W. Terwilliger, president,
Suburban National Bank Eden Prai­
rie, is proposed for M BA first vice
f president for 1985-86, to succeed
Mr. Kurtz.
James R. Jorstad, president, Citi­
zens State Bank, Hayfield, is the re­
commended 1985-86 candidate for
^ M BA second vice president.
Scott Jones, president, Goodhue
County National Bank, Red Wing, is
proposed to serve a second term as
M B A treasurer for 1985-86.
The nominating committee in­
cludes the nine M BA district presi­
dents. The recommendations were to
be presented at the M BA district
meetings, and elections will take
• place at the June, 1985, Minnesota
Bankers Association Annual Con­
vention to be held in Minneapolis.


MBA Lending School
* Completes Second Year


The Minnesota Bankers Associa­
tion Commercial Lending School
completed its second annual session
August 12-17 at St. Olaf College in
Northfield. 117 first and second year
Federal Reserve Bank of St. Louis

students attended this year’s ses­
First year students (class of 1985)
elected class officers during the
week. Dan Steil, First National
Bank, Shakopee, was elected class
president; Joan Grzywinski, Norwest Bank East St. Paul, was
elected class vice president; and
Gary Ashfeld, First National Bank,
Cold Spring, was elected class secretary/treasurer. Mr. Steil will serve
as a member of the Commercial
Lending School Advisory Board.

Appointed at Moorhead
Norwest Corporation has ap­
pointed James A. Borman assistant
vice president and credit supervisor
for Norwest Audit Services, Inc.,
Moorhead office. He formerly was
credit supervisor.
Mr. Borman began his career with
Norwest in 1974. Prior to that time
he spent 17 years as a bank ex­
aminer for the State of Minnesota.

The board of directors of First
Bank Pipestone has elected Mark L.
Mosbrucker executive vice presi­
dent. He succeeds Steven A. Grell,
who accepted a position as president
of First Bank Cando, N.D.
Mr. Mosbrucker began his career
with First Bank System in 1978
when he joined First Bank Wahpeton, N.D. He was appointed agricul­
tural loan officer at First Bank Pipe­
stone in 1979 and was promoted to
assistant vice president in 1980 and
vice president in 1983.

Red Wing Election Announced
Scott Jones, president of The
Goodhue County National Bank of
Red Wing, has
announced the
e le c t io n
William F. Pich
as vice president
and manager of
the bank’s Rushford Branch.
Mr. Pich has
been with First
Bank Systems in
various capaci­
ties since 1967, and most recently
was president of a $46 million bank
in Langdon, North Dakota, with his
primary responsibilities in the area
of agricultural lending and bank

Two Elected in Plymouth
Wheaton President Named
The board of directors of First
Bank Wheaton has elected William
A. Harbeke pres­
ident and a direc­
tor. William M.
Sanger contin­
ues as chairman
and chief ex­
ecutive officer.
Mr. Harbeke
has been associ­
ated with First
B ank S y stem
since 1977, when
he joined First Bank Langdon,
North Dakota. He was appointed an
agricultural loan officer in 1978. In
1980, he joined First Bank Valley
City, North Dakota, as an assistant
vice president and has most recently
served as manager of the bank’s
agricultural lending department.

First Bank Plymouth has an­
nounced the election of two officers.
Paul Tesarek has been named
manager of First Bank Plymouth
-Four Seasons Office. His most re­
cent position was personal banking
officer at First Bank Hopkins.



Jerry Brindise has been named
personal banking officer also at the
Four Seasons Office. His most re­
cent position was sales finance offi­
cer at First Bank Hopkins.
Northwestern Banker, October, 1984


Minnesota News

NEWLY elected IBM officers for 1984-85 are: Exec. Vice Pres.— Norb McCrady; 1st Vice
Pres.—Steve Schmidt; Pres.—Jim Clark; Immed. Past Pres.— Larry Lindeberg, and 2nd
Vice Pres — Kermit Mahlum.

Independents Meet at Breezy Point
Associate Publisher
REEZY POINT Resort proved
to be an ideal rendezvous spot
for the Independent Bankers of Min­
nesota as they met August 23-26 for
their annual convention. IBoM Pres­
ident Larry Lindeberg, president of
Forest Lake State Bank, welcomed
bankers from 121 independently
owned banks to the convention,
which was highlighted by the elec­
tion of officers for the 1984-85 year.
The newly elected association lead­
ers are: President—Jim Clark, presi­
dent, Lake Crystal National Bank,
Blue Earth; 1st Vice President—
Steve Schmidt, president, The
Northern Bank, Anoka, and 2nd
Vice President—Kermit Mahlum,
president, First National Bank of
St. Peter.
“ Huge Banks Can be Incompa­
tible with Developing our Small
Business Sector” and “ Communi­
ties Can be Hurt When Local Banks
are Acquired By a Distant Big
Bank” were the joint titles of a pre­


sentation made by corporate reorga­
nization specialist Arthur Burck
and they served to set the tone of
the convention. Mr. Burck wrote in
a 1981 New York Times article:
“ When the history of our times is
written, the unrestrained mergers of
recent decades may well replace the
debacle of the stock market of the
1920s as the cataclysm most de­
structive to the nation’s financial
and economic foundations.” Updat­
ing this statement, he adds: “ If
there is any doubt about this pro­
phecy, there certainly won’t be if the
restrictions against interstate bank­
ing are fully removed.”
Before the House Banking Com­
mittee Mr. Burck recently ex­
plained: “ The future of America lies
not with our stagnating industrial
giants but with our smaller, fast­
growing companies, especially those
in emerging high-technology areas.
Most of these companies have small
beginnings and it is in their fragile
early days that financing too often is
an insurperable problem. Especially
in periods like the early 1970s when

the ‘credit crunch’ dried up loans for ^
small companies, countless struggl­
ing entrepreneural businesses
withered and died.
“ The huge big-city banks, with
their burgeoning bureaucracies, are ^
usually in no position to cope with
the financing needs of smaller busi­
nesses. The smaller company usual­
ly must look to local banks that are
in a position to understand and deal £
with local problems.”
Another strong proponent of inde­
pendent banking to address the con­
vention was Congressman Bruce
Vento, U.S. House of Représenta- ^
tives. Mr. Vento is the chief author
of the Independent Banking Preser­
vation Act and a member of the
House Banking Committee. The
Preservation Act draws focus to the ^
erosion of the decentralized banking
system within the U.S. “ Starting in
1980, the legal structure upon which
this system was founded began to
come apart. The legislative changes ^
adopted to meet the challenge of in­
flation and protect savings and loan
associations, as well as the deregula­
tion of certain interest bearing ac­
counts, created uncertainty and op- q
portunity for banks and other finan­
cial institutions. If the process had
stopped there, we would not be con­
cerned today. But together with
these formal changes, there have £
been a variety of informal, regula­
tory policy changes that have made
banking and financial regulation, in
the words of Business Week com­
mentator G. David Wallace, appear f
‘ridicoulous.’ ”
Provisions included in the In­
dependent Banking Preservation
A ct—1 ) Close nonbank bank loop­
holes and provide for bank-like £
regulation of savings and loans that
don’t engage in mortgage lending; 2)
Call for the divestiture of savings

LEFT— Representing the American National Bank, St. Paul, were: Kathy and Joe Kingman, pres. & c.e.o.; Jim Russel, v.p., and Kay, and
Bob Jacobson, v.p., and Lori. RIGHT—Enjoying the convention banquet were: Dick Holmes, a.v.p., F&M Marquette, Mpls., and Carol, and •
Hal Lynch, chmn. & pres., Arlington State Bk., and Marion.

Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis


Sure, I’ll help you over
gingerbread man was doing just fine until he
T heagreed
to let the fox help him across the stream.
Who is helping you with your upstream overlines?



At American we have the resources to handle your
overline requests promptly and professionally Our
goal is to help you serve your customer. We are not
interested in stealing your customer’s loan for our own
or our local affiliates’ portfolios.
Before you jump on somebody’s back, make sure you
know who’s side they’re really on. We promise to carry
you over to the other side, without getting hungry
along the way.

Federal Reserve Bank of St. Louis




Northwestern Banker, October, 1984


Minnesota News

and loans that don’t engage in mort­
gage lending; 3) Prohibit “ emergen­
cy ” mergers involving the 50 largest
banks or bank holding companies; 4)
Halt the growing proliferation of re­
gional banking compacts. (“ Inter­
state banking, whether regional or
nationwide, has no fair place in our
financial marketplace.” ) and 5) Pro­
hibit predator rate practices for the
purpose of destroying competition
in local financial markets.
Turning his focus to what he
terms the “ nationalization” of the
Continental Illinois National Bank,
Mr. Vento informed the bankers of a
hearing scheduled before the House
sub-committee on Financial Institu­
tions, of which he is a member. In­
cluded in the context of the hearing
will be a procedures review of the
regulatory agencies involved in the
examinations of Continental. The
sub-committee will also explore if
the guranteeing of deposits over the
FDIC $100,000 limit falls within the
limit of public policy. The congress­
man parallelled these hearings to
those held before the House Bank­
ing Committee on the federal bail­
out of Chrysler Corporation. “ We
put Chrysler through the ringer and
damn-it, they should have been put
through the ringer!” Looking ahead
to the Continental hearings he add­
ed, “ We are going to rip them up one
side and down the other.” These two
statements drew a thunderous roar
of approval from the independent
Social activities included golf and
tennis tournaments, boat rides on
the Paddlin’ Pelican, banquets and
the annual dinner dance featuring
the Russ Carlyle Orchestra. How­
ever, the best entertainment pro­
vided during the convention was,
without question, the prolific in­
troduction of speakers and IBoM of­
ficers and board members by Ex­
ecutive Vice President Norb McCrady.

Norwest Consolidates
Northern Minnesota Banks
Norwest Corporation announced
last month the consolidation of two
of its northern Minnesota banks into
one bank, to be called Norwest Bank
Mesabi, N.A.
The consolidation, which was ap­
proved by regulatory authorities
August 30 and became effective
September 1 , involves Norwest
Bank Virginia and Norwest Bank

Banker, October, 1984
Federal Reserve Bank of St. Louis

Eveleth, N.A. Assets of the consoli­
dated bank will total approximately
$138 million.
According to Charles A. Russell,
president of Norwest Corporation’s
northern Minnesota region, the con­
solidation “ will eliminate redundan­
cies in operations.” Norwest Bank
Mesabi will have offices in its three
existing locations in Eveleth, Vir­
ginia and Hoyt Lakes. Employment
levels will not be affected by the con­
solidation, according to Mr. Russell.
John R. Oltmanns, who has been
serving as president of both the Vir­
ginia and Eveleth banks, will con­
tinue as president of Norwest Bank

Two Promoted in Rochester
At First Bank Rochester, Stephen
J. Arbour has been promoted to se­
nior vice president in charge of com­
mercial loans and Thomas R. Cover

was promoted to senior vice presi­
dent in charge of operations, data
processing, human resources and
marketing for the bank and for
Southeastern M innesota First



Mr. Arbour began his career in
1969 at First Bank Duluth. He
joined the staff in Rochester in 1982. •
Mr. Cover started with First
Bank Rochester in April of this year
and previously was vice president
and manager of corporate services
at Security Bank in Billings, Mont. ®

MBA Committee Chairmen Named
ALEN Pate, president of the
Human Resources Committee Minnesota Bankers Association Chairman - Joseph Finley, Janesville
and President, has named the fol­ State Bank, and Vice Chairman lowing 1984-85 M BA committee Ross Bartz, First Bank Minnea­
chairmen for the following commit­ polis.
Investments & Funds ManageAgricultural and Rural Develop­ ment Committee - Chairman - Wil­
ment Committee - Chairman - Gary liam Langford, American Natl.
Knutson, American Bank & Trust Bank & Trust Co., St. Paul, and Vice
Co., Moorhead, and Vice Chairman - Chairman - John C. James, Farmers
John Ohlemann, State Bank of Gib­ State Bank, Almelund.
Legislative Committee - Chair­
Bank Holding Company Commit­ man - John M. Lundsten, Buffalo
tee - Chairman - John A. Berg, Way- National Bank, and Vice Chairman zata Bank & Trust Company.
Robert Burk, Merchants & Miners
Bank Management Committee - State Bank, Hibbing.
Chairman - Richard Klingen, Nor­
Lending Committee - Chairman west Bank St. Paul, and Vice Chair­ Michael Duepner, First National
man - Patrick Colbert, American Bank, International Falls, and Vice
State Bank of Bloomington.
Chairman - E.R. Cunningham,
Communications Committee - North Star State Bank, Roseville.
Chairman - David Shumway, First
Operations Committee - Chair­
National Bank, Northfield, and Vice man - Richard Franzmeier, The
Chairman - Dwayne Bruns, Annan- Highland Bank, St. Paul, and Vice
dale State Bank.
Chairman - R.W. Sanborn, Security
Education Policy & Development State Bank, Pine Island.
Committee - Chairman - William
Pension Committee - Chairman Rosacker, F&M Marquette National D.L. Stalboerger, Melrose State
Bank, Minneapolis, and Vice Chair­ Bank, and Vice Chairman - R. James
man - John Chamberlain, Valley Na­ Gesell, Cherokee State Bank, St.
tional Bank, LeSueur.
Group Insurance Committee Security Committee - Chairman Chairman - Donavon Fisher, The Gerlad Thomas, Midway National
Roseville Bank, and Vice Chairman - Bank, St. Paul, and Vice Chairman Delbert Gonnerman, Americana Carol Anderson, First Bank MinneaBank, Clara City.











Twin C ities

ORWEST BANK Minneapolis
announced September 11 that
bank president
W. James Arm­
strong has been
elected chairman
^ o f the bank’s
board of direc­
tors, succeeding
E. Peter Gillette,
Jr., vice chairf man of Norwest
Corporation. Mr.
Armstrong w ill W.J. ARMSTRONG




•retain his position as chief executive
The bank also announced that
James R. Campbell has been elected
president of the bank, succeeding
•Mr. Armstrong. Mr. Campbell has
been president of Norwest Corpora­
tion’s Region V banking group,
which encompasses Nebraska and
parts of western Iowa. Mr. Campbell
•will be succeeded by John R.
Cochran as regional president and
chairman of Norwest Bank Omaha.
He is currently president and chief
executive officer of Norwest Bank
Richard D. Schneider, currently
executive vice president of the
bank’s corporate banking group,
was named vice chairman.
1 Mr. Campbell and Mr. Schneider
were both named to the board of
directors of Norwest Bank Minnea­
“ These changes become effective
October 1 and complete a restructur­
Federal Reserve Bank of St. Louis

ing of the bank’s senior manage­
ment that was initiated two years
ago,’ ’ Mr. Armstrong said.
“ This realignment provides the
bank with a very strong manage­
ment team. Each of the individual
members of the team has a great
deal of experience in the key mar­
kets being served by Norwest,’ ’ he
Mr. Armstrong joined the Nor­
west organization in 1981 as presi­
dent of Norwest Bank Minneapolis
and was elected chief executive offi­
cer in 1982. Prior to joining Nor­
west, he was executive vice presi­
dent and chief financial officer of
The Northern Trust Company, Chi­
He is a graduate of Ripon College
and received a Master’s degree in
business administration from Har­
vard University. He also graduated
from the Stonier School of Banking
at Rutgers University and holds an
honorary law degree from Ripon Col­
Prior to Mr. Campbell’s appoint­
ment as regional president in 1982,
he was president of Norwest Bank
Omaha for three years. Associated
with the Norwest organization since
1964, he has held numerous posi­
tions within the company, including
senior vice president of the domestic
banking group of Norwest Bank
Minneapolis from 1976 to 1979 and
president of Norwest Leasing Com­
pany from 1973 to 1976. Mr. Camp­
bell is a graduate of the University
of Minnesota.
Mr. Schneider is currently respon­
sible for the bank’s overall domestic
and international banking activities.
Since he joined Norwest Bank Min­
neapolis in 1964, he has been in­
volved with a number of the bank’s
specialized lending functions in­
cluding commercial real estate, con­
struction and energy financing.
Mr. Schneider is a graduate of the
University of Minnesota and the

Stonier Graduate School of Banking
at Rutgers University.
* * *
Donald G. Pederson has been
named vice president, private bank­
ing, at F&M
Marquette Na­
tio n a l
B an k ,
He previously
served as senior
vice president,
financial institu­
tio n s d e p a r t ­
ment, for Nor­
west Bank of
M in n e a p o lis .
Mr. Pederson has a bachelor of arts
degree in business administration
from Hamline University, St. Paul,
and also graduated from the Stonier
Graduate School of Banking, Rut­
gers University, NewBrunswick,
New Jersey.
Also at the bank, Dianne K. Kor
has been named trust operations of­
ficer. She joined the bank in 1981
and most recently served as a trust
operations supervisor.
* * *
First Metro Services — a new sub­
sidiary which combines the opera­
ting functions of
First Bank Min­
n e a p o lis
First Bank Saint
Paul — has pro­
moted five of­
ficers in its two
m ajor groups:
special services
and item pro­
In the special
services group, Bernard E. Conlii
has been promoted to executive vice
president and head of special ser
vices; Susan R. Scheerer has beer
promoted to vice president and man
Northwestern Banker, October, 1984


Minnesota News





ager of wholesale banking support;
Michael R. Addy has been promoted
to vice president and manager of
loan operations, and Michael R.
Parks has been promoted to vice
president and manager of adminis­
trative services.
Mr. Conlin had been senior vice
president of the former Operations
Group at First Bank Minneapolis.
Ms. Scheerer and Mr. Addy had
been assistant vice presidents at the
bank. Mr. Parks had been assistant
vice president at First Bank Saint
In the item processing group,
Ruth Moderson has been promoted
to vice president and manager of
systems and methods. She had pre­
viously been assistant vice presi­
dent of systems and methods at
First Bank Saint Paul.
* * *
Thomas C. Pesek has been elected
commercial loan officer of First Bank
S e c u r it y , St.
M r.
P esek
began his career
with First Bank
Security in 1982
as a credit ana­
ly st. He was
graduated summa cum laude
from the College
of St. Thomas
and holds a bachelors degree in busi­
ness administration and finance.
* * *
Bremer Financial Services, Inc.
has announced two additions to its
Banker, October, 1984
Federal Reserve Bank of St. Louis

St. Paul staff. Richard R. (Rick)
Bruce has been named assistant vice
president/investment portfolio ad­
visor, and Brent J. Gray, manager of
financial reporting/analysis.
Mr. Bruce has served Norwest
Corporation as an investment spe­
cialist, and Norwest Bank Bloom­
ington as an investment officer, as­
sistant vice president/controller.
Mr. Gray graduated from the Uni­
versity of Denver in business/accounting in 1982, and has been with
the firm of Peat, Marwick, Mitchell
and Co.
* * *
FBS Business Finance Corpora­
tion has announced the promotion of
Jeffrey M. DeMar to loan officer in
the business credit division. Mr.
DeMar joined the company in 1982
as an analyst and has most recently
held the position of account repre­



William K. Stern has been pro­
moted to vice
president at the
S t.
A n th o n y
Falls Office of
First Bank Min­
Mr. Stern has
been with First
Bank Minneapo­
lis for 25 years,
and was elected
manager of that
office in 1983.
* * *

services manager. He is a CPA with
six years of public accounting exper­
Mr. Miller will work primarily
with banking industry clients pro­
viding audit and consulting ser-.
vices. He has extensive experience’
with interest rate risk management
Prior to joining McGladrey, he
was a senior vice president and the^
chief financial officer at a $150 mil­
lion community bank.
* * *
First Bank Minneapolis recently
announced several promotions and
Promoted to vice president status
are: Jerald W. Raarup, commercial
paper trading division; Monte E . 1
Deckerd and Steven M. Vrablik,
natural resources division; Kathleen
A. Hyduke, commercial banking
training division; Wallace W. Norlander, human resources group;
Thomas W. Bugbee, national west
division, and Sara M. Lilienthal,
manufacturers division.
Garrett R. Hegel has joined the
bank as vice president in the ac-

Sharon L. Sweet has joined First
Bank System, Inc. as assistant vice
president of in­
vestor relations.
M s.
S w eet
m ost recen tly
was associated
with Borg-War­
ner Corporation,
Chicago, where
she served as
manager of in­
vestor relations.
Prior to her asso­
ciation with Borg-Warner, Ms.
Sweet was an account manager in
the commercial lending area at Con­
tinental Illinois National Bank, Chi­
* * *
Robert D. Miller recently joined
the St. Paul office of McGladrey
Hendrickson & Pullen as a general



TwoFirsts make
aforce in correspondent banking.
First Bank Minneapolis and First Bank Saint
Paul Correspondent Banking Departments have joined
forces to becom e First Bank Correspondent Banldng.
We combined all the resources o f two o f the largest
correspondent banks in the region to create the newest,
biggest and most customer-driven correspondent
in the Upper Midwest.
What does that mean to you? It means you
can draw on the largest credit resources o f any corres­
pondent in the Upper Midwest. It means you can build
a solid banking relationship with the largest staff o f
professional calling
officers in the area. And it
means you can rely on
the resources o f our
banking officers to solve
your specialized, multi­
bank, agricultural and
non-credit needs.
We reorganized to
fit the changing banking
world. You still need
regular contact with our
calling officers for bank
stock financing, standard
overlines and other credit
services, so w e left that side o f our organization
unchanged. But, you also needed more and more advice
about the rapidly changing world o f deregulated
banking. And so w e’re giving it to you.
We created three new specialty divisions within

our expanded correspondent department: A MultiBank Ownership Division, a Non-Credit Products
Division and an Agriculture Production Credits Division.
All o f our specialty banking officers are experts in their
own area and in correspondent banking. And that
means that they, too, can operate directly with you on a
regular basis, when you need them.
Also, First Bank Correspondent Banking officers
have instant access to all o f the resources and expertise
o f First Bank Minneapolis and First Bank Saint Paul.
So you can get the expert banking advice you need
whether it’s in inter­
national banking, consult­
ing services, security
sales and safekeeping, SBA
loans, leasing, and much
more. We even have an
entire division that
specializes in financial
services for the new highgrowth, high-technology
and service industries.
So, when you need
correspondent banking
services, talk to us. At
First Bank Correspondent
Banking you don’t have to go around in circles to
get to the experts. We have the credit you need and the
technical advice you have to have to stay profitable
in today’s ever changing world o f banking.
At First, good news is all you get.

*|!|l First Bank

First Bank Minneapolis

First Bank Place
Minneapolis, MN 55480
Federal Reserve Bank of St. Louis

First Bank Saint Paul

332 Minnesota Street
St. Paul, MN 55101

M em bers FDIC


Minnesota News

counting policy department and
Martin L. Jones has joined as vice
president and director of fixed in­
come research.
Mr. Raarup joined the bank in
1963. Mr. Deckerd joined in 1982
and Mr. Vrablik in 1983. Ms. Hyduke has been with First Bank Min­
neapolis since 1974 when she joined
as a commercial auditor. Mr. Norlander started in 1967 with the
bank. Mr. Bugbee has been in the
same division since joining the bank
in 1981. Ms. Lilienthal joined in
1976 as a retail banking representa­
Mr. Hegel had been with Ernst &
Whinney, Milwaukee, for ten years,
most recently serving as audit man­
ager. Mr. Jones had been with Har­
ris Trust and Savings Bank, Chica­
go, for five years, most recently as
vice president in the fixed income
New assistant vice presidents in­
clude: Michael M. Fordney and
David M. Thompson, natural re­
sources division; Therese M. Keen,
international banking group; Mari­
lyn A. Grochala and Dean C. Sanberg, financial institutions division;
Peter R. Denzen and Thomas M.



Tracy, corp ora te A division ;
Kathryn C. Smith, corporate C divi­
sion; Kathryn L. Kvinge, profes­
sional banking division, and Chris­
tine S. Hefner-Hollender, executive
banking division.
J. Michael Kelberrer has joined as
assistant vice president in the pro­
gramming division and Philip P.
Gardiner has joined as assistant vice
president in the national group’s
New York loan production office.
* * *
James H. Hearon, III, president
and CEO at National City Bank of
Minneapolis, re­
cently announced
the promotion of
Halgeir ‘ Ole’
Grodahl, a na­
tive of Norway,
to assistant aud­
itor for National
City Bank.
Mr. Grodahl,
a graduate of St.
Thomas College
in St. Paul, Minnesota, has been
with National City Bank in the audit
division since 1982.
* * *

Norwest Advancements Told



Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis

Norwest Bank Rochester recently
announced the promotion of three
officers, and the election of three
new officers and a director, accord­
ing to Edgar M. Morsman, Jr., presi­
Du Wayne A. Forbord, vice presi­
dent, commercial lending, has been

named manager of the commercial
lending department. He started #
with the bank in 1973.
Betty Beck has been promoted to
retail services manager. She joined
in 1982 and was elected marketing
officer later that same year.
Kevin Arnold has joined the com­
mercial lending department as assis­
tant vice president/commercial lend­
ing officer. He joined Norwest in
Sandy Fortney has been elected
accounting officer. She has been
with the bank since 1974.
Ron Green has been elected con­
sumer lending officer. He joined in
1981, working in the consumer lend­
ing department.
Maureen Wilson has been elected
personal banking officer. She joined
the bank as financial services assis­
tant in 1982.
Kathleen A. Fickle, site opera­
tions manager for IBM, has been
elected to the bank’s board of direc­
tors. David L. Riegel, general man­
ager with IBM, recently resigned
from Norwest Bank Rochester’s
board of directors.

Arlington Promotion Told
Rick A. Stevens has been pro­
moted to assistant cashier at Arling­
ton State Bank.
He joined the bank in 1981 as an
agricultural loan officer trainee.

Associate Counsel Appointed ®
The Minnesota Bankers Associa­
tion has announced the appointment
o f William J.
Zwart as associ­
ate counsel. His
duties include re­
searching legaltechnical infor­
mation with re­
spect to M BA
legislative pro­
grams, in addi­
tion to develop­
ing legal-techni­
cal and compliance information for
M BA members.
Mr. Zwart graduated cum laude
from William Mitchell College of
Law in 1978 and holds a bachelor’s •
degree in journalism and political
science from the University of Min­
nesota. He formerly served as gen­
eral counsel for the Metropolitan
Transit Commission.



Employers Mutual Offers Free,
Accurate Building Cost Appraisals.
The key to insuring your business to
value is accurate building cost appraisals;
the kind you get free of charge from your
independent insurance agent who repre­
sents Employers Mutual Companies.
Using the w orld’s largest, most dynamic construc­
tion cost data bases, your EMC representative can
provide you with an accurate electronic system for
calculating replacement costs. Our cost appraisals
reflect up-to-date local labor material costs, and
annual adjustments are m ade to account for fluc­
tuating cost factors in your area.
With this accurate information, you are more apt
to bring your commercial insurance coverage into

line with current values. As an EMC policyholder,
y o u ’ll enjoy the pea ce o f mind o f knowing that
should a loss occur your policy will cover rebuilding
O vercom ing underinsurance is just one o f the
m any com m ercial insurance problem s EMC has
tackled head on. We did it by working together; put­
ting our people, products and services to work solv­
ing the everyday insurance problems o f industry.

Employers Mutual Companies
Des Moines, Iowa 50309
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984

combine the experience of the securi­
ties industry with the resources o f ®
the banking industry to create bet­
ter and more convenient financial

Aurora National Bank
Expands ATM Program

Appointed in Lombard
Kenneth J. Zilka has been ap­
pointed assistant vice president at
the Bank of Yorktown, Lombard.
In his new position, Mr. Zilka will
have responsibilities in the commer­
cial and real estate lending areas. He
previously was assistant vice presi­
dent, commercial lending, at La
Grange Bank & Trust Company, La

One Promoted in Elmhurst
Elmhurst National Bank has an­
nounced the promotion of Cheryl L.
Giacobbe to personal loan officer.
She began her banking career at
Elmhurst National Bank in 1978 in
the consumer loan department.

Americorp to Acquire
First National B&T, Pekin
Americorp Financial, Inc. has an­
n o u n ce d th a t a p p r o x im a te ly
108,000 shares of the common stock
of First National Bank & Trust
Company of Pekin were tendered

pursuant to Americorp’s exchange
offer dated June 27, 1984. The offer
expired on August 14. The tendered
shares constitute approximately
98% of the outstanding shares of
Pekin common stock.
Under the terms of the acquisi­
tion agreement, Americorp will ex­
change .76 shares of Americorp com­
mon stock and $.10 for each out­
standing share of Pekin common
Pekin is a national bank located in
Pekin, near Peoria. It was organized
in 1887 and as of June 30, 1984,
Pekin has total assets of $59 million
and total deposits of $54 million.

Prudential-Bache Opens
Office at Elmhurst National
Prudential-Bache Securities re­
cently opened an office at Elmhurst
National Bank and will offer re­
search recommendations, financial
planning advice and investment ser­
vices to customers. This program is
a continuation of a joint effort to


Ralph L. Egeland, president of
Aurora National Bank, has an­
nounced that the bank has joined #
the other member financial institu­
tions in providing their ACCESS24
electronic-banking customers the
additional convenience of using
ATMs located in over 160 7-Eleven 9
stores throughout the Chicagoland

National Boulevard Bank
Elects Two Directors
Frederick F. Webster, Jr. and Ar­
thur R. Weiss were elected to the
board of directors of National Boule­
vard Bank, Chicago.
According to Richard Schroeder,
president, the addition of Mr. Web­
ster and Mr. Weiss is a result of
Boulevard Bancorp’s acquisition of
First National Bank of Des Plaines,
which was completed last month. In
1981, Mr. Webster was elected
chairman of the bank’s executive
committee, and chairman of First
Des Plaines Corporation, First Na­
tional’s holding company.
Mr. Weiss has been chairman of
First National Bank and president
of First Des Plaines Corporation
since 1981.

“Help Us Help Others”
Skokie Bank Participates
In Iowa’s “Sidewalk Sale”

William S. Badgley (far left), chmn. and pres., Magna Group, Inc., a multi-bank company
located in Belleville, welcomes Jack Butler (left), St. Clair Associated Vocational Enter­

prises (SAVE) exec, dir., as a participant in Magna’s “ Help Us Help Others” community re­
lations program. Looking on are G. Thomas Andes and Harry E. Cruncleton, Magna vice
chmn. Save, an agency providing vocational and social training for the physically and men­
tally handicapped, was one of 10 local not-for-profit organizations present at the recent
kick-off event. Each time a St. Clair County property tax payment is made with a special
coupon or newspaper clipping at a Magna location, Magna Group, Inc. will donate 50 cents
to the taxpayer’s choice among the 10 not-for-profit organizations involved.

Banker, October, 1984
Federal Reserve Bank of St. Louis


First National Bank of Skokie uti­
lized its two downtown parking lots
for an auto show during the towns
annual “ Sidewalk Sale.”
While a bank normally has very ®
little to offer at an intown promo­
tion, and auto dealers because of
their out of downtown location’s
normally don’t participate, First Na- ^
tional Bank of Skokie changed all 9
that by letting the local auto dealers
(who do retail finnancing through
the bank) to use their facilities to
show and sell automobiles. The bank ^
used $100 off coupon stuffers to in­
vite their customers to buy during
the show and staged a carnival at­
mosphere with pop corn and bal­
loons and putting restored vintage ^
autos in the show area.

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Federal Reserve Bank of St. Louis


Illinois News

elected to the Boulevard Bank board
of directors. Richard T. Schroeder,
president and CEO of National
Boulevard Bank, and Henry Gard­
ner, president and CEO of Boule­
vard Bancorp, have joined First Na­
tional’s board of directors.
At June 30, 1984, First National
had deposits of $294 million. The
bank’s main office is located at the
corners of Lee and Prairie in Des
Plaines, with two other remote
drive-in, walk-in locations in Des
* * *

Boulevard Bancorp Inc., holding
company for National Boulevard
Bank of Chicago, has completed its
acquisition of First National Bank
of Des Plaines.
Frederick F. Webster, Jr., First
National’s chairman of the execu­
tive committee, and Arthur R.
Weiss, chairman of the board, were

Joseph G. Alagna has been pro­
moted to assistant vice president,
operations, with
the B an k o f
Commerce & In­
dustry. In his
new position, he
will be responsi­
ble fo r o v e r ­
seeing the new
accounts area,
tellers, vau lt,
personnel, docu­
m en ta tion reJ.G. ALAGNA

ITS Switch Accesses Nationet Quickly

quirements, and data base manage­
ment, as well as assisting in new
product/service development and
participating in the calling program
for soliciting new business.
In his 14 years of banking experi­
ence, Mr. Alagna worked for the
Bank of Commerce & Industry from
1974 to 1978, following four years
with the Aetna Bank of Chicago,
and rejoined BCI in 1982.
(Continued from page 17)
is urging all Congressional candi­
dates to commit publicly to a deficit
reduction plan to be implemented in
the first budget following the in­
auguration. I feel that this would be
a first step in the long road toward
returning profitability to the small
farmer and businessman. Until we
are able to bring the massive Fed­
eral deficits under control, we have
little chance of looking forward to
reduced interest rates.
a Why do you feel ABA
can meet the needs of
community bankers better than any
other trade association?


a I believe the Community
■ Bankers Council within
the A B A makes it the organization
which is most sensitive to the needs
of the community bankers of this
country. Our organization starts
with the 183 member Advisory
Board, which meets twice a year. No
other trade association relies for gui­
dance on such a large group of com­
munity bankers.
The responsibility for developing
products and services to meet the
needs identified by the Advisory
Board falls upon the Community
Bankers Council. Members of this
Council also have seats on A B A ’s
Government Relations, Communica­
tions, Banking Professions and Edu­
cation Policy and Development
It is this degree of community
banker participation at the policy­
making level that makes the Ameri­
can Bankers Association unique.
The process has worked well during
the last three years and should en­
able the American Bankers Associa­
tion to continue to develop policies
and design products and services
which are in keeping with the best
interest of the community bankers
of this country.


WHEN Wisconsin banker Rowland McClellan was in Des Moines last month he used a Des

Moines bank ATM to access his personal account at Bank of Wisconsin in Janesville,
where he is president, and had the transaction completed in less than 10 seconds. He was
in Des Moines to take part in a Community Banking Panel at the Iowa Bankers
Association’s 98th annual convention at the Marriott Hotel. Prior to that session, Mr. Mc­
Clellan (left) stepped out on the skywalk a few feet away with Dale Dooley (right), president
of ITS, Inc., Des Moines, where Mr. Dooley pointed out that the Nationet emblem on the
machine assured Mr. McCellan his card could access his own account through the ITS
switch, to Nationet and then into TYME in Wisconsin, which controls the switch there for
Wisconsin banks and their customers. The card also will access any bank affiliated with
the Cirrus system.
ITS, founded 10 years ago, is the only statewide, shared system in the nation, serving all
Iowa banks and their customers. It was a leader in formation with other regional shared
systems of Nationet, which has been in active use since last October. ITS began expanding
beyond the boundaries of Iowa four years ago and now services banks in Illinois, Missouri,
Nebraska and South Dakota besides Iowa. Currently, ITS is expanding its offering of ITS
switch service to Illinois banks. In Wisconsin, banks are tied in with TYME and may inter­
change with ITS through Nationet.

Banker, October, 1984
Federal Reserve Bank of St. Louis


Conquering the alien world of
international trade.



It could happen to you. O ne
day a valued business custom er
com es in for help w ith an import or
export transaction.
A n d suddenly y o u ’re thrust
into another world. A w orld p op u ­
lated by strange beings with mystify­
ing nam es like Standbys, A ggregate
Limits, Tenors and T w o-P arty
R ecourses.
W hat to d o? If you turn your
custom er away, he m ay take all his
business elsew here.
Fortunately there’s an easy
alternative. A p h on e call to C on ­
tinental B ank.
Continental is a m ajor factor
in international trade. In fact, w e ’re
one of the fe w banks w h o are
m em bers of the International
C ham ber of C om m erce
headquartered in Paris.
W e can provide every
financial service your cu stom ­
ers could need. From issuing
or participating in International
Letters of Credit to Bankers
A ccep ta n ces to C urrency H ed g ­
ing to D ocu m en ta ry Collections.
W e do all the w ork. You
en h an ce you r relationship w ith
your customer. A n d you collect a
w orthw hile fee to boot.
If that sounds good, w h y not
m ake that p h on e call now , before
that custom er com es in.
Call R obert B . Holland
at (312) 828-6620. Tell him y o u ’re
looking for n ew w orlds to conquer.


Continental Illinois National Bank and Trust Com pany of
Chicago. 231 South LaSalle Street. Chicago, Illinois 60697
Atlanta •Boston •Chicago •Cleveland •Dallas •Denver
Houston •Los Angeles *Minneapolis •N ew York
Oklahoma City •St. Louis •San Francisco •Seattle •White Plains
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984


It’s living up to
its reputation as America’s premier “banker’s bank”—joining
tradition with innovation in credit and operating services.
It’s our Merchant Banking Group acting as
financial advisor to a Midwest bank. O ur c o m p r e ­
h e n s iv e e v alu ation o f a n offer m a d e for th is b a n k resu lted
in a n e x c lu siv e m a n d a te to a rra n g e th e sa le or m e rg e r of
th e ban k .

It’s our advanced
electronic capabilities
providing a major
Los Angeles bank with
w o rld w id e p r o c e ssin g a n d
sa fe k e e p in g o f securities.
M a n u fa c tu re rs H a n o v e r n ow
o ffers fu lly a u to m a te d secu rities I
p r o c e ssin g in L o n d o n a s w ell a s
N e w York, p lu s a n etw o rk of
c o rre sp o n d e n t p r o c e ssin g
cen ters in 26 countries.

F or the bankers o f Am erica, M anufacturers
H anover adds one strength to another: the steady
reliability w e bring to traditional correspondent
services plus the pacesetting innovations that
contem porary banking dem ands.
W e’re prepared, because w e’re com m itted. Out
of our com m itm ent has com e a leading m arket
position, supported by an integrated B anking
Group and its staff o f profession al bankers.
M anufacturers H anover Trust has always been
k now n as a prem ier correspondent b a n k serving the credit and operating needs of banks
Federal Reserve Bank of St. Louis

worldw ide. Domestically, w e serve over 2,700
banks from coast to coast and, internationally,
another 1,700 banks on five continents.
Today, w hen the w orld o f financial services is
undergoing fundamental change, our comm itm ent
is m ore apparent than ever. Take our operating
services. M anufacturers H anover has developed
and put into place the industry’s m ost advan ced
electronic system s to m ove funds and infor­
m ation. Tw o exam ples are our autom ated
com m ercial paper issuance capability and our
consolidated global inform ation reporting.



It’s our Public Finance Department acting with a
New Jersey bank as co-managing underwriter of
notes that p ro v id e c o st-e ffe c tiv e fin a n c in g o f a w ater
project for th e c o r r e sp o n d e n t’s m u n icip a l cu sto m er.
Federal Reserve Bank of St. Louis


j.W. Johnson, pres., Spring Green
B.K. Koontz, exec, dir., Madison

Citizens Bancorp. Unveils New Name
N AUGUST 14, nine Wisconsin
banks with 24 offices changed
their names to First Interstate Bank
of Wisconsin. Sign unveiling cere­
monies and other festivities at the
banks celebrated the franchise be­
tween First Interstate Bancorp and
Citizens Bancorporation, the She­
boygan-based bank holding com­
pany that operates the banks.
“ This agreement with First Inter­
state offers our banks access to
state-of-the-art financial services
and products but also enables us to
retain our local ownership, manage­
ment and operating philosophies,”
said Richard D. Pauls, chairman.
First Interstate Corporation of
Wisconsin has assets of $970 million
and is the fifth largest Wisconsin
bank holding company. Assets in­
creased by 35 percent in July with
the acquisitions of three bank hold­
ing companies that operate five


banks in Waupun, West Allis, New
Berlin, Racine and Caledonia.
Other First Interstate offices are
located in Abrams, Cedar Grove,
Gillett, Green Bay, Howard, Kohler,
Manitowoc, Mishicot, Mountain,
North Manitowoc, Oconto Falls,
Plymouth, Sheboygan, Sheboygan
Falls, Shorewood, Tisch Mills and
Two Rivers.

Wausau President Elected
John B. Williams has been elected
president of First Wisconsin Na­
tional Bank of Wausau. He succeeds
William B. Sampe who was ad­
vanced to chairman.
Mr. Williams previously was vice
president of First Wisconsin Na­
tional Bank of Milwaukee with ad­
ministrative responsibility for five
branch banking offices.

Promoted in Sheboygan
Alan M. Holman has been pro­
moted to assistant vice president of
First Interstate Bank of Wisconsin,
Mr. Holman, previously a busi­
ness banking officer, has four years
of experience in the business bank­
ing department at the downtown
Sheboygan office. He joined the cor­
poration in 1976.

Four Advanced At
First Interstate, Sheboygan

Joseph J. Pinola (center), chmn. and c.e.o.

of First Interstate, joined officials of the
former Citizens Bancorporation in Sheboy­
gan to unveil one of the new bank signs.
Left is David C. Beck, pres., and on the right
is Richard D. Pauls, chmn., First Interstate
Corporation of Wisconsin.

Banker, October, 1984
Federal Reserve Bank of St. Louis

development, operations and data q
processing for the corporation as
well as correspondent banking ser­
vices and facilities management. Ex­
perienced in cash management and
treasury functions, Mr. Beiersdorf ^
originally j oined the former Citizens
Bancorporation in 1976.
Mr. Quasius joined the corpora­
tion in 1982 as vice president in
charge of long-range planning, fol- q
lowing three years with the Mani­
towoc County Bank as executive
vice president. He was named senior

At First Interstate Corporation of
Wisconsin, Sheboygan, Gerald L.
Beiersdorf, Robert F. Quaisius and
Herbert G. Weber have been pro­
moted to executive vice presidents.
In addition, Leon F. Royer has been
named senior vice president.
Mr. Beiersdorf, in addition to his
corporate position, is president of
First Interstate Management Ser­
vices, Inc., the company’s opera­
tions and data processing subsidi­
ary. He is responsible for technology

vice president of the Bancorporation
in 1983. He is responsible for all per­
sonal and community banking func­
tions, marketing and liaison work
with affiliated First Interstate
Mr. Weber, chief financial officer
and secretary of First Interstate
Corporation, is responsible for the
investment, accounting and human
resources departments. He joined
the organization in 1970, serving as
trust investment officer, vice presi­
dent-trust investments, and vice
president-finance until he was ap­
pointed senior vice president in
Mr. Royer will have overall re­
sponsibility for the business banking services offered at First Inter­
state Banks in Sheboygan and Man­
itowoc Counties, and for the cor­
porate loan administration function.
He will also oversee the holding
company’s two commercial services
offices - one in Green Bay and a
soon-to-open Milwaukee office.
Mr. Royer joined First Interstate
Corporation, formerly Citizens Bancorporation, in early July.







liberated in 1945. During the Kor­
ean conflict, Mr. Roney was the
chief trial counsel for the Ryukus
Command in Okinawa. He now is a
retired Major.
Mr. Boyum received his law de­
gree in 1976 and joined the bank in
Carrington as manager of its trust
department. He was named execu­
tive vice president and a member of
the board in 1982.

Bismarck Election Told
Donald W. Green, president of
First Bank Bismarck, has an­
nounced the elec­
tion of Daryl L.
Tabor as com­
mercial loan of­
Mr. Tabor pre­
viously was with
First National
Bank & Trust
C om pany
D ic k in s o n as
vice president of
commercial and agriculture loans.
He also has held other finance posi­
tions with Production Credit Asso­
ciation of Mandan and Public Fi­
nance Corporation, Bismarck.

• Mandan Addition Told
Dennis J. Renner has joined Norwest Bank Mandan, N.A. as vice
president and manager, agri-busi­
ness loans.
He has been associated with Norwest Bank Jamestown since 1975,
and prior to that time was with
FmHA, Mandan - Devils Lake - Fort

Abstract Figures Released
The Department of Banking and
Institutions recently re­
leased its abstract report for all
state banking institutions in North
Dakota for June 30, 1984. This in­
cludes 137 state banks, six trust
1companies and the Bank of North
Dakota. All dollar figures are listed
in thousands.
Net loans for the combined group
in North Dakota were $2,062,609,
with a breakdown of $1,799,613 state banks, and $262,893 - Bank of
North Dakota.
Total deposits for the combined
group were $3,560,348, with a break­
down of $3,049,900 - state banks,

Federal Reserve Bank of St. Louis

and $510,448 - Bank of North Dako­
The percent of loans for the com­
bined group was 57.9%; 59% for
state banks, and 51.5% for the Bank
of North Dakota. Percent of total
equity capital to deposits for the
combined group was 10.5%; 10.6%
for state banks, and 9.96% for Bank
of North Dakota.

Tom Roney, President
For 25 Years, Retires
Tom Roney has retired after 25
years as president of First American
Bank and Trust
of Carrington.
He will continue
as chairman of
the board until
March 1, 1985.
Named to suc­
ceed Mr. Roney
as president is
Kelley Boyum,
who has been
employed with
the bank since 1976 as a trust officer
and executive vice president.
Mr. Roney and his wife moved to
Carrington in 1947 to pursue prac­
ticing law. He left the practice in
1959 to join First American as presi­
dent replacing J.C. Hoffert.
Mr. Roney served as president of
the North Dakota Bankers Associa­
tion in 1981-82 and was a member of
that group’s executive committee
until this spring. He currently is a
member of the American Bankers
Association government relations
council and a member of the North
Dakota Bar Association.
Mr. Roney has a combined total of
23 years active service in the U.S.
Army and the North Dakota Na­
tional Guard. During World War II
he fought in the European Theater,
was captured in France in Decem­
ber, 1944, and was held as a prisoner
of war at Offlag 64 in Poland until

Belfield Banker Completes
Three-Year Graduate School
Joseph Zilkowski, president, The
First National Bank of Belfield, is
one of 145 bank officers who suc­
cessfully completed the three-year
course of specialized instruction at
the Graduate School of Retail Bank
Sponsored by the Consumer
Bankers Association, which is lo­
cated in Arlington, Va., in coopera­
tion with the Mclntire School of
Commerce of the University of Vir­
ginia, the School recently conducted
its 33rd resident session.

One Joins Rolette Bank
Jay Myhre has joined the Rolette
State Bank, Rolette, as assistant
A graduate of Concordia College
in Moorhead, Minn., with a degree in
economics, Mr. Myhre previously
was with a wholesale sporting goods
firm in Fargo, most recently as cred­
it manager.

Judge Rules No Emergency
Exists Under ‘33 Farm Law
The District Court Judge in Bur­
leigh County ruled August 21 in the
case of United Bank o f Bismarck vs.
M artine son, that there is not now a
general economic and farm emergen­
cy caused by confiscatory farm
prices in North Dakota.
As reported in the July 9 issue of
the N orthwestern B anker W eekly
N ew sletter, the defense raised the
provisions of Chapters 28-29, NDCC
(relief from defaults and hardships),
as a defense to the bank’s foreclo­
sure action on a farm real estate
mortgage. The governing law was
enacted in 1933 to respond to the de­
vastating effects of the Great DeNorthwestern Banker, October, t984

pression on agriculture in North Da­
The bank, joined by the North
Dakota Bankers Association as ami­
cus curiae, sought from the District
Judge a ruling on the constitutional­
ity of that 1933 law, which states:
“ Unitl the price of farm products
produced in this state shall rise to a
point to equal at least the cost of
production, in comparison with the
price of other commodities in gener­
al, entering into the business of agri­
culture, the Supreme Court of this
state and all District and County
Courts in this state shall have
power, when it is deemed for the
best interest of litigants, to extend
the time for serving and filing all
papers requisite and necessary for
the final determination of any cause.
Any such Court, in like manner, may
stay the entry of judgment on the is­
suance of execution thereon, or may

defer the signing of any order for
judgment, or may defer terms of
Court, whenever in the judgment of
the Court the strictly legal proce­
dure in any cause will confiscate or
tend to confiscate the property of
any litigant by forcing the sale of
agricultural products upon a ruinous
The District Judge ruled that law
was constitutional. However, in ap­
plying its provisions, he considered
the effect of farm price programs,
which were non-existent under the
laws in question when they were
enacted in 1933. Despite arguments
from the defense against consider­
ing the effect of current farm pro­
grams, the judge ruled the programs
can have the effect of ameliorating
what could otherwise be an emergen­
cy. The judge further recognized evi­
dence that many farmers, especially
those who do not have high interest

expense, have an increasing net
worth, while some others are “ losing
equity.” In summation, he stated,
“ A crop or livestock price which
generally affects a balance sheet
positively cannot be said to be con­
Defendant has 60 days from date
of judgment, or until approximately
October 21, to appeal to the North
Dakota Supreme Court. Informed
sources said it was likely that appeal
would be filed. The state Supreme
Court is known to move quickly on
cases filed, but the earliest a deci­
sion could be made by that body
would probably be next March or
April. By that time another crop
season will have started. If the bank
prevails, defendant has a year under
state law for redemption under judg­
ment of foreclosure and is entitled to
use the land and production from it.

Mogen retired August 1 after 47
years of service.
Mr. Dykstra has been in banking
since 1975 with First National Bank
in Pierre, where he served as vice
president and commercial loan offi­
cer. Before entering the banking
field, he taught five years at the col­
lege level.

Application Filed
Huron Promotion Told
Farmers & Merchants Bank,
Huron, has promoted Larry Mattke
to vice president.
He joined the bank in 1967 and
had been serving as assistant man­
ager of the farm department.

Armour Bank Sold
Morris Winter, chairman of First
State Bank of Armour and its Delmont Branch, has sold the bank to
Lauren Lewis of Sioux Falls and his
two sons, Allen Lewis of Yankton
and Paul Lewis of Palm Desert,
Calif. The sale is pending approval
from the State Banking Commission
and the FDIC. Approval is expected
by November 1.
No changes in operations are ex­
pected. LeRoy Hofer, chief operat­
ing officer, will continue in that ca­
pacity, and Gerry Wenzel, assistant
vice president, will serve as manag­
ing officer at Delmont.
Mr. Winter, along with R. Wayne

Banker, October, 1984
Federal Reserve Bank of St. Louis

Hamilton, president, and Norbert
Wenzel, director, will be retiring as
of January 1, 1985.

Elected in Sioux Falls
Bryan Person has been elected
personal bank­
ing officer of
W estern Bank
N o rth , S io u x
Falls, according
to T.J. Reardon,
M r. P erson
joined the bank
in July, 1983. He
has four years of
previous experi­
ence in financial service.

Waubay President Named
Brent E. Dykstra has joined State
Bank of Waubay as president. He
succeeds Hubert Mogen, who has
served as president since 1962. Mr.

BankWest, N.A., Pierre, has
made application with the Comptrol­
ler of the Currency to purchase the
assets and assume the liabilities of
First National Bank of Selby.

Beresford Executive Elected
Patrick J. Cleberg, president of
First National Bank of Beresford,
has announced
the election of
Paul S. Jordahl
as executive vice
president. Mr.
Jordahl was also
elected to the
A graduate of
South D akota
State Universi­
ty, Mr. Jordahl
has had 12 years of experience in
agricultural lending, most recently
serving as manager of the Federal
Land Bank Association office in

Glendive as vice president in the
commercial lending department.
Mr. Robinson had been with Rich­
land National Bank and Trust in
Sidney over seven years and prior to
that was a national bank examiner
with the Comptroller of the Curren­
cy in Billings for four years.

’84-85 Committee Chairmen Named
IVAONTANA Bankers Association ment trainece with First

® IVI President








Chuck Pedersen re­
cently announced the appointment
of the following bankers committee
chairmen for 1984-85:
Ag Committee — Chairman: Tony
Sunsted, First Security Bank, Glas­
gow, and Vice Chairman: Steve Peryam, Powder River County Bank,
Commercial Lending Committee —
Chairman: Pat McGarraugh, Norwest Bank, Great Falls, and Vice
Chairman: Gus Gustafson, Miners
Bank, Butte.
Government Relations Commit­
tee — Chairman: Ed Jasmin, Norwest Bank, Helena.
Insurance Committee — Chair­
man: Tom Tietz, First United Bank,
Marketing Committee — Chair­
man: Colleen Kranzler, First Inter­
state Bank, Great Falls.
MBA-AIB Education Committee —
Chairman: Pat Hoen, First Bank
West, Great Falls.
Operations & Personnel Commit­
tee — Chairman: Bud Uecker, First
National Bank, Whitefish.
Real Estate Lending Committee —
Chairman: Brad Walterskirchen,
Valley Bank, Kalispell, and Vice
Chairman: Norman Simpson, First
Interstate Bank, Billings.
Retail Banking Committee —
Chairman: Les Blazevich, First Na­
tional Montana Bank, Missoula, and
Vice Chairman: Ron Vihinen, Norwest Bank, Great Falls.

Joins Norwest Bank Helena

Bradley G. Lancaster recently
joined the staff of Norwest Bank
Helena as an assistant vice presi® dent and commercial loan officer.
Mr. Lancaster joins Norwest
Bank from Pondera Bank of Mon­
tana, Conrad, where he most recent_ ly was vice president and cashier.
^ Prior to that time he was a manage­
Federal Reserve Bank of St. Louis

Two Promoted At
First Bank Helena

Bank, Thompson Falls.

Earl W. Johnson, president of
First Bank Helena, has announced
the promotion of Michael W. Fries
and Joe Bower to assistant vice

Great Falls Addition Told
Daniel K. Sullivan has joined
First Bank Great Falls as assistant
vice president,
operations, ac­
cording to Bob
Reiquam, presi­
Prior to mov­
ing to G reat
Falls, Mr. Sulli­
van was an as­
sistant vice pres­
ident and cashier
of First Bank
Havre. He has spent nine years with
First Bank System, first as regional
auditor in Fargo and Great Falls
and then with First Bank Miles City
as vice president for three years.
Prior to joining First Bank Havre in
early 1983, he was a bank group
manager with First Computer Cor­
poration in St. Paul for two years.

Bozeman Banker
Graduates With Honors
Thomas E. Rigg, First Bank
Bozeman, graduated with High
Honors from The School for Bank
Administration, on August 9, as an­
nounced by Harry W. Newlon, presi­
Mr. Rigg was one of eight gradu­
ates to receive high honors from
among 500 bankers who completed
the three-year program of advanced
banking study, sponsored by Bank
Administration Institute and held
at the University of Wisconsin,

Glendive Addition Announced
Keith E. Robinson has joined the
staff of the First National Bank of



Mr. Fries attended Westchester
State College and Penn State Uni­
versity in Pennsylvania. Prior to
joining First Bank Helena in 1974,
he was employed by Montana Power
Company as an assistant credit
manager. Most recently he served as
assistant cashier and assistant man­
ager of the instalment loan depart­
Mr. Bower received an associated
arts degree in business administra­
tion from Grand View College in
Iowa. In 1977 he graduated from the
University of Montana with a de­
gree in business administration. He
joined First Bank Western in Mis­
soula in 1977 and transferred to
First Bank Helena in 1979 as a real
estate officer, the position he held
when he received this most recent

Bozeman Election Announced
Judy Hyde has been elected per­
sonal banking officer at First Bank
Bozeman, according to Harry W.
Newlon, president.
She started her banking career in
1975 with Southwest Bank in Vista,
Calif. She also has served with
banks in Oakgrove, Ore., and Whitefish, Mont., prior to joining the staff
of First Bank Bozeman in April of
this year.
Northwestern Banker, October, 1984

posits for the combined group was
10.1%; for state - 10.3%, and for na-*
tional - 9.9%.

Appointed in Rock Springs
First Wyoming Bank, N.A., Rock #
Springs, recently announced the ap­
pointment of Lyle D. Perry as
cashier and vice president. Mr.
Perry has been employed by First
Wyoming Bank Corporation for ten ®
Also appointed was Gale A. York
as vice president of the commercial
loan department. Prior to assuming
this position with First W y om in g ^
Bank, Mr. York was a loan officer
for Union State Bank in Upton.

Casper V.P. Appointed
First Interstate Bank of Casper
recently announced the appoint­
ment of Lynn B.
Duncan as vice
president and di­
rector o f the
m arketing de­
Mr. Duncan
FIRST Wyoming Bank of Evanston’s newly completed facility.
previously was
e m p lo y e d
W y om in g N a­
tional Bank of
Casper for seven
years during which time he acted as
tive offices, the board room, book­ vice president and manager of corre­
p p r o x i m a t e l y 4,000-5,000
people attended the grand open­ keeping and space for future offices. spondent banking and national ac­
ing of First Wyoming Bank—Evan­ A new elevator will service the base­ counts and manager of the market­
ston’s new bank facility addition. ment of the existing building as well ing department. Mr. Duncan h as1
The new two-story facility consists as both of the two new floors.
been in the banking profession since
of 20,000 square feet of new space,
The exterior of both the new facili­ 1955.
with 10,000 square feet of remodeled ty and existing building were fin­
space. In addition, the drive-up facil­ ished in brick and anodized metal
ity has been increased to six drive- facia panels. The building also fea­ Joins Riverton Staff
up teller stations.
tures a two-story bronze tinted win­
Jim Pieters has joined the staff of
The first floor houses a new lobby, dow wall and entry facing onto a American National Bank of River­
teller line, money management, in­ 1,400 square foot landscaped plaza ton as an officer trainee.
stalment, commercial and real on the corner of Front and Ninth
Mr. Pieters is a graduate of Na­
estate loans, note and insurance de­ streets. The plaza is partially cov­ tional College of Business in R a p id #
partments, a new vault, increased ered by a canopy.
City, South Dakota, and has worked
safety deposit space and a 24-hour
The facility was designed by Don­ in the security and real estate busi­
automatic banking facility. The se­ ald H. Panushka & Associates, Inc., ness since college. Since 1979, he has
cond floor consists of bank execu­ Salt Lake City.
devoted his full time to the securi­
ties business.
Figures Released For
with a break down of $836,668 as Retires in Ranchester
Wyoming Banks
state and $1,493,445 as national.
Bob Rawlings, who has been in
The Office of the State Examiner
Total deposits for the combined the banking business in Ranchester ^
recently released its abstract report group were $3,812,354; state - the past 35 years, retired August 31.
for the 58 state and 56 national $1,361,551, and national -$2,450,803.
Mr. Rawlings most recently served
banks in Wyoming for June 30,
The percent of loans for the com­ as vice president and teller of the
1984. All dollar figures are listed in bined group was 61.1%; for state - Ranchester State Bank. An open
61.4%, and for national - 60.9%. Per­ house was held in his honor at the ^
Net loans for the combined 114 cent of total equity capital to de- bank.

Balloon Release Signals
Evanston Bank Grand Opening


Banker, October, 1984
Federal Reserve Bank of St. Louis

tional Bank of Denver. The an­
nouncement was made by William
W. Grant, president of Colorado Na­
tional Bank of Denver.
Mr. Cocetti has been with the
bank for ten years working with
Rocky Mountain BankCard System
in the management information sys­
tems area.
Mr. King began his career at the
bank in 1980 as a business develop­
ment representative.

New President Named At
United Bank of Skyline




United Banks of Colorado, Inc.
announced recently that Charles H.
Luther, Jr. has
e le c t e d
p re sid e n t and
chief executive
officer of United
Bank of Skyline,
N.A., Denver.
Mr. Luther,
form erly w ith
United Bank of
Denver, joined
United Bank in
July, 1965, and has held various
positions in the organization.

Two Named in Englewood
Anne Warhover has been named

0 senior vice president and Joan M.
Ripepi has been named cashier of
Central Bank of Iverness, N.A.,
Ms. Warhover previously served
0 as assistant vice president of the
energy banking group at First Inter­
state Bank of Denver.
Ms. Ripepi previously served as
operations manager for the bank
• and has also worked in the auditing
department for Central Bancorporation, Inc.

• Inst, of Private Banking,
New Two-Week School
For the first time, a two-week
school will offer a curriculum de0 signed to teach bank executives and
private bankers to compete effec­
tively with non-traditional banking
industry competitors.
A new, not-for-profit banking
0 school, the Institute of Private
Banking (IPB), will offer the special­
ly designed curriculum at the Uni­
versity of Denver Law School from
June 10-21, 1985.
0 IPB was founded by Marilyn
Federal Reserve Bank of St. Louis

MacGruder Barnewall, president,
The MacGruder Agency, Inc., Auro­ Promoted in Denver
ra. Ms. Barnewall is a financial con­
Denver National Bank has an­
sultant specializing in the implemen­
nounced the promotion of Janet A.
tation of profitable private banking
Pennepacker to senior operations of­
programs in the United States and
She joined the bank in 1979 as a

Purchase of Two IntraWest
Banks Announced
United Banks of Colorado, Inc.
announced last month that it has
completed negotiations for the pur­
chase of IntraWest Bank of Boulder
and IntraWest Bank of Colorado
Springs. The purchase price for
these two banks and related real
estate is $30,800,000. The purchase
of the banks is subject to ap­
propriate regulatory approval and
the consummation of the pending
consolidation of IntraWest Finan­
cial Corporation by Affiliated Bankshares of Colorado, Inc.
United Banks received the right
to purchase these banks as one of
the conditions of a previous agree­
ment in which United Banks ceased
its proposed merger activities for
In making the announcement, N.
Berne Hart, president and chairman
of United Banks, stated, “ The suc­
cessful completion of these negotia­
tions will afford us an opportunity
of adding two fine banks to our orga­
nization. Both IntraWest banks
have a highly skilled and experi­
enced management and staff in
place which represents one of the
key assets in this transaction.”
IntraWest of Boulder has assets
of $126 million and IntraWest of
Colorado Springs has assets of $44
million at June 30, 1984.

Two Named in Denver
David T. Cocetti and Andrew L.
King were recently promoted to vice
president and assistant vice presi­
dent respectively of Colorado Na­

Executive V.P. Named
In Colorado Springs
Jerry Hayes has been named ex­
ecutive vice president of The West­
ern N a tio n a l
Bank of Colo­
rado S prin gs.
Also elected to
the board of di­
M r.
Hayes will be re­
sponsible for all
lending a ctivi­
ties in the com­
m e rc ia l, c o n ­
sumer and mort­
gage loan departments of the bank.
Mr. Hayes began his banking ca­
reer in Newport, Oregon, in 1968
and joined Western National in
Colorado Springs in June, 1983.

South Denver National
Opens New Facility
South Denver National Bank
hosted a grand opening August
22-24 at its new facility at 400 South
Colorado Boulevard. The bank oc­
cupies 35,000 square feet of the
142,800 square foot, nine-story
building, and offers ample free park­
ing and eight drive-up windows.

One Joins Colorado
National Mortgage Company
Thomas O. Mead has joined Colo­
rado National Mortgage Company,
Denver, as assistant vice president.
Prior to joining, he held manage­
ment positions with Key Savings
Northwestern Banker, October, 1984


Colorado News

Southwest Plaza Facility Opens

GRAND opening activities were held in August for United Bank of Southwest Plaza’s newly

constructed facilities at 8500 West Bowles Avenue, Littleton. The three-story, brick exterior
complex is occupied by the bank and other office tenants. United Bank utilizes approxi­
mately 7,000 sq. ft. of the ground floor for its facilities, which include a convenience bank­
ing center in the lobby and a 24-hour automatic teller drive-up. The interior features an im­
pressive collection of art from leading Colorado artists.

and Loan, Colorado First Mortgage,
United Bank of Fort Collins, Home
Federal Savings and Loan Associa­
tion and Utah Mortgage Corpora­

themselves because of age, infirmity
or limited income.
The bank purchases the paint for
the massive one-day volunteer effort
and it is coordinated by Brothers
Redevelopment, a not-for-profit
neighborhood revitalization agency.

Aurora President Named
C. Bennett Lewis has been elected
president of Colorado National
Bank - Aurora. He replaces James F.
Marsico, who is pursuing other em­
ployment opportunities.
Prior to his election as president,
Mr. Lewis was senior lending officer
at Colorado National Bank - Arapa­
hoe in Littleton. He has 11 years of
banking experience.

Joins Englewood Staff
Ray Jones has joined the staff of
First Interstate Bank of Englewood
as assistant vice president in com­
mercial lending.
A graduate of Drexel University
in Philadelphia, Mr. Jones pre­
viously was with United Bank of
Denver in commercial lending.

First Interstate Holds
Annual Paint-a-Thon
Employees from First Interstate
Bank of Denver once again parti­
cipated in the painting of 100 senior
citizen homes in the bank’s annual
Paint-a-Thon. The event, which at­
tracts more than 1,200 volunteers in
Denver, provides a free paint job for
senior citizens unable to do the work
Banker, October, 1984
Federal Reserve Bank of St. Louis

United Bank of Denver
Promotes Nine


United Bank of Denver announced
recently that Richard K. Dehn and
Alan C. Gregory were promoted to
vice president. Mary J. Beck, Mary ||
Rotola, Clark E. Smith and Barbara
J. Webb were named assistant vice
president. Named officers were M.
Nick Afsahi, James R. Irwin and
Brenda L. Knott.
Mr. Dehn is manager of executive
banking’s personal banking market.
He joined the bank in 1979.
A commercial banker in the real
estate banking group, Mr. G regory©
joined United of Denver in 1979.

Sterling Promotions Told
Colorado National Bank - Sterling®
recently promoted John Fey, assis­
tant vice president - commercial
lending; Deborah Kelly, consumer
lending officer, and John Taylor, ^
vice president, commercial lending,
according to Larry Morris, president
of the bank.

Jefferson B&T Promotes Six
Joins Lakewood Bank
Stephen J. Miller has joined Colo­
rado National Bank - Lakewood as
assistant vice president, commercial
Mr. Miller has eight years of
banking experience, having pre­
viously been associated with First
Interstate Bank of Englewood,
South Denver National Bank, and
Canadian Imperial Bank of Com­

Promoted in Grand Junction
At Colorado National Bank - Or­
chard Mesa in Grand Junction, R.
Kelly Burford has been promoted to
commercial loan officer.
He joined the bank in April of this
year and previously was with First
Interstate Bank of Denver.

Michael C. Quinlan, president and
chief executive officer of Jefferson
Bank & Trust, Denver, has a n -^
nounced the promotion of six indivi­
Alan R. Ghidossi has been named
senior vice president of the retail
banking division.
Trudi McCall was promoted to W
vice president and is the manager of
Jefferson Bank & Trust’s Federal
Center Facilities.
Bradley Pierce has advanced t o ^
vice president, commercial lending
Promoted to assistant vice presi­
dent and trust officer is Rose PaniCO.

Susan J. Roth has been promoted
to operations officer.
Newly promoted to operations of­
ficer is Beth E. Stanley.

Evergreen Director Elected

Advanced in Fort Collins

Ted LaMontagne, owner of “ The
Hardware,’ ’ has been elected to the
board of directors of Colorado Na­
tional Bank - Evergreen.
He previously was associated
with the United Banks of Colorado
and was actively involved in market­
ing research, product development
and corporate planning.

Colorado National Bank - Fort
Collins has announced the promo­
tion of Cynthia B. Roper to market-®
ing officer.
She joined the bank in 1982 as
marketing director, having pre­
viously been associated with Marine
Midland Bank, New York.

® (Continued from page 19)
the financial services industry. They will also be able
to question key U.S. Senators and Congressmen about
^ other current political issues.

Other Speakers
To provide an international overview, former West
German Chancellor Helmut Schmidt will address
Tuesday’s general session. Then on Wednesday morn^ ing, a panel of Time magazine’s senior editors will dis­
cuss the latest headline news.
Additional featured speakers will be A B A President
C. Robert Brenton, president, Brenton Banks, Inc.,
^ Des Moines, and A B A Executive Vice President Willis
^ W . Alexander.

Workshops, Exhibits
This year the workshops have been restructured and
renamed rap sessions to increase banker participation
• and sharing of ideas. Examples of the topics expected
to be covered include: consumer bankruptcy reform,
choosing an ATM network, new options in joint ven-

tures, merger/acquisition implementation, personal fi­
nancial counseling, and insurance agency services.
Exhibits for the convention will be housed in both
the New York Hilton and the Sheraton Centre. Total
floor space for this “ shopping center” for banking sup­
plies and services will be twice as large as in last year’s
highly successful show in Hawaii. Door prizes at the
exhibit center will include a cruise on the Queen Eliza­
beth II, two personal computers and use of a brand
new automobile for one year.

Fellowship and Receptions
U.S. Senate Chaplain Dr. Richard C. Halverson will
be featured at Sunday morning’s Fellowship Gather­
ing. This program and the convention general sessions
will be held in the newly renovated Radio City Music
As a special treat for attendees, A B A ’s Tuesday
night convention reception will be held at the new, ele­
gant New York City Passenger Ship Terminal at Pier
88 on the Hudson River. This glass-enclosed, dockside
facility is considered one of the finest in the world.
A B A ’s Sunday night gala reception will be located
in the Sheraton Centre.

The “ Big Apple” Lures Conventioneers
HAT MAKES New York “ The
Big Apple” of visitor and con­
vention cities? What are the sights
and services that lure more than 900
c o n v e n tio n s and m ore than
17,000,000 people each year?
According to the New York City
Visitors Bureau, here are the city’s
top attractions—and what will cer­
tainly interest bankers and spouses
attending the 1984 A B A Conven® tion , Oct. 20-24:







1. Empire State Building. The Mighty One
(1,472 feet) is now 50 years old, but the
sleek skyscraper of steel, limestone and
aluminum is as popular as ever. Each year
millions of visitors enjoy the breathtaking
views from observation decks on the 86th
and 102nd floors, which have recently been
completely renovated.
2. Rockefeller Center. A city within a city,
this Manhattan landmark celebrated its
50th anniversary in 1982. The midtown com­
plex offers a cornucopia of delights, and
visitors can learn about all of them on the
superb guided tour. Nearby, in the Center’s
McGraw-Hill Building, is the exciting, multimedia, multi-sensory show, “ The New York
3. Statue of Liberty. Nearly 100 years old,
Lady Liberty is currently undergoing a ma­
jor face lift. In the statue’s base is the
Museum of Immigration, and nearby is Ellis
Island (open for tours, spring through fall)
where millions of immigrants were processed.
4. United Nations. Founded on October 24,
1945, the U.N. continues to add new sights,
services and activities for visitors. The offi­
cial meetings are open to the public, there
is a one-hour guided tour (even all-day tours
for small groups), and no one should miss
Federal Reserve Bank of St. Louis

the post office, gift shops, restaurants and
5. Lincoln Center. This vast center of the
performing arts offers opera, symphony,
dance, theatre, films, a library—and a guid­
ed tour of the beautiful buildings that house
6. World Trade Center. Twin towers—
each 110 stories ta ll—stand like soaring
sentinels guarding New York City’s harbor.
On the rooftop “ promenade” of the South
Tower, you can stand on the world’s highest
open-air observation deck—1,377 feet. On
the top of the North Tower, you can dine in
the elegant “ Windows on the World”
7. Times Square. Now undergoing a re­
naissance, “ The Great White Way” is enjoy­
ing another “ golden age.” Marvel at the
new theatres, movie houses, skyscrapers
and shops. Even Nathan’s of Coney Island
(the world-famous hot dog heaven) has
opened a huge Times Square branch.
8. South Street Seaport. This indoor-out­
door “ museum” (consisting of several
square blocks and three piers) stretches
along the East River waterfront at Fulton
Street. The entire area is being restored to
its appearance when it was one of the
world’s great ports for sailing ships. Among
the attractions: a collection of historic
ships, an old printing shop, a model-ships
museum, the Titanic Memorial Lighthouse,
and several seafood restaurants.
9. New York Stock Exchange. The na­
tion’s marketplace—the money capital of
the world—is one of the city’s best sight­
seeing bargains. Free tours during trading
10. Sightseeing Buses & Cruises. Per­
haps the easiest and most relaxing way to
learn all about New York City is to take a
sightseeing bus tour or a Circle Line threehour sightseeing cruise around the island
of Manhattan. You can even take a

sightseeing helicopter trip.
11. The World of Entertainment. New
York is still its capital, and its districts are
Broadway, off-Broadway, off-off-Broadway,
the first-run film houses, TV shows, dis­
cotheques, the folk-rock-jazz-country &
western scenes and the ever-popular night
clubs with their star performers.
12. New York’s Restaurants. From the
budget-priced Zum Zum to the posh “ 21”
Club, the city is guaranteed to please the
palate and purse. But you must bring a
hearty appetite; the puny eater will develop
an inferiority complex.
13. Shopping. High and low fashions, an­
tiques, posters, skis, coins, records, tapes,
books, toys, shells, gems, pets—you name
it, New York’s stores will produce it . Not
only on justly renowned Fifth Avenue, but
also at Herald Square, along 34th, 57th,
59th and 86th Streets, in Greenwich Village,
SoHo, and on the upper and lower East
14. Houses of Worship. Food for the soul
and impressive works of art and architec­
ture are offered by such landmarks as St.
Patrick’s Cathedral, the Cathedral of St.
John the Divine, Temple Emanu-EI, the
Abyssinian Baptist Church in Harlem, or
Trinity Church and St. Paul’s Chapel in
lower Manhattan. You can even visit a
Buddhist shrine in Chinatown.
15. The Great Museums. Everyone has
heard of the Met and the Modern, but visi­
tors should not overlook the Frick Collec­
tion, the American Museum of Natural His­
tory and Hayden Planetarium, the Museum
of the American Indian, the Museum of the
City of New York, the Cooper-Hewitt Muse­
um, the International Center of Photo­
graphy, and many more. For striking archi­
tecture as well as art, visit the Guggenheim
and the Whitney.
Clearly, New York City will add lots of siz­
zle to the 1984 ABA Convention.
Northwestern Banker, October, 1984


Mic Brosius
Bank of Stapleton

Russ Rabeler
Farmers State Bank, Dodge

Chuck Leffler, Jr.
Security State Bank of Holbrook

George Haase, Jr.
Crofton State Bank

Willard Behrends
State Bank of Elk Creek

Randy Burns
Home State Bank, Humboldt

Meredith W illiam s
First State Bank, Beaver City

Jerry Puritan
First National, W isner

Crawford State Bank

M arsha Wilhelm
The Dawson Bank, Dawson

Wayne Hoskinson
The Sioux National Bank, Harrison

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banks already know. NBC
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services tailored exactly
to the needs of your bank.
Different products for dif­

Banker, October, 1984
Federal Reserve Bank of St. Louis

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with answers. The longest
working day available.
Better software and better
reports for more useful
NBC Data Processing is
just one reason National
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the state’s leader in
Correspondent Banking

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David City Bank Is Closed; Re-Opens
As Branch of 1st National of Omaha
HE Nebraska department of
banking declared the David City
Bank insolvent on September 6,
closed the bank and named the
*F D IC receiver. The FDIC negoti­
ated a purchase and assumption, on
a bid basis, with First National
Bank of Omaha, which re-opened the
bank the following morning at 7:30
m .m. as First National Bank of Oma­
ha - David City Branch.
J. William Henry, executive vice
president of First National of Oma­
ha, also is serving as chief executive
^officer of the David City Branch un­
til a senior administrative ap­
pointment is made, probably within
90 days.
David City Bank had deposits tostalin g nearly $18 million and all de­
positors were fully protected in the
First National of Omaha takeover.
Director of Banking Roger Beverage
emphasized to the bank’s custo•mers, David City residents and the
media that no depositor would lose
one cent. In some earlier failures
this year in other states, no buyer
was found; consequently, customers
•with large deposits were unpro­
tected for amounts over $100,000.
At last year-end, according to
David City Bank’s report filed with
the Federal Reserve Bank of Kansas
®City, the bank has $792,000 in loans
which were delinquent on interest
payments by 90 days or more, in­
cluding farm loans of $682,000. An
additional total of $406,000 in loans
•was listed as non-performing.
Mr. Beverage said principal own­
ers of the David City Bank (88%)—
Lester E. Souba, chairman, and his
^son, Lester W. Souba, president—
•would have had to put in an addi­
tional $1 million in new capital to
offset the bad loans, or find a buyer
willing to do so. When this could not
^be done, the banking department
^was required by law to close the

Federal Reserve Bank of St. Louis

bank. Prospective bidders were soli­
cited earlier in the week by FDIC.
On September 5 they were given a
confidential package with the name
of the bank to be taken over by
FDIC as receiver and financial and
account information needed on
which to base a bid.
First National of Omaha was high
bidder for $808,000. It assumed all
deposits of the David City Bank, the
installment loans and premises and
fixtures. Assets total about $8.3 mil­
lion, plus the buyer’s $808,000, for a
total of more than $9 million. To fa­
cilitate the transaction, the FDIC
has advanced cash amounting to
$11.2 million and retains assets of
the failed bank with a book value of
approximately $13.1 million. FDIC
assumes all outstanding loans and
will endeavor to recover as much as
possible in future months and years
from those loans.
Mr. Henry said First National of
Omaha was notified at 3 p.m. on
September 6 that its bid was ac­
cepted by the FDIC. Signs were put
up at the David City Branch by 7
p.m. and doors were opened for busi­
ness Friday morning, September 7
at 7:30 a.m. He reported that de­
posits on opening day were $17.3
million and increased in each of the
first three days of operation.
“ Public relations, of course, is a
big challenge in a situation like this
in a community of 2,500,’ ’ Mr. Henry
said. “ They have to have time to
look us over.’ ’ Mr. Henry has been
joined by these seven First National
of Omaha staff members to assist
initially at the David City Branch
(titles are ones held at First National
of Omaha)—Bill Gdovic, second vice
president; Sara Hastings, cashier;
Dave Erker, commercial loan officer,
and Tom Jensen, Jerry Tomka, Dan
O ’Neill and Roger Fluery, agricul­
tural loan representatives.

Les and Bill Souba, as well as
Lewis “ Bud” Zinnecker, executive
vice president, have resigned. Mr.
Henry said all other personnel of
David City Bank have been hired as
employees of First National Bank of
Omaha—David City Branch.
First of Omaha has the right to re­
turn within 60 days to FDIC any of
the installment loans it chooses not
to keep. It also may purchase within
30 days any of the other loans it
chooses to take from FDIC. The
FDIC office in David City, expected
to operate for six months to a year,
will then proceed with collection of
the remaining loans.
The David City Bank failure is
the first in Nebraska in 1984. In
1983 the Bank of Niobrara was
closed on July 8. It was purchased
by Merchants State Bank of Bloom­
field, which also operates an office
now in Niobrara. The David City
Bank closing was the 55th in the na­
tion in 1984. The following day, Oak­
land Savings Bank in Oakland, la.,
was closed by the Iowa superinten­
dent of banking. That was the 56th
bank closed. It was sold by FDIC
and re-opened the following day as
Oakland State Bank.

One Joins Fremont Staff
William A. Snodgrass has joined
the First National Bank & Trust
Company, Fre­
mont, as vice
p resid en t and
commercial loan
officer, accord­
in g to R .M .
Fritz, president.
An Omaha na­
tive, Mr. Snod­
grass most re­
cently was vice
president and se­
nior commercial loan officer for
Am erican N ational Bank, St.
Joseph, Mo.

Appointed in Kearney
Stephen L. Pomajzl has been ap­
pointed agricultural loan officer of
The Platte Valley State Bank &
Trust Company, Kearney, according
to Wayne R. McKinney, chairman.
Mr. Pomajzl is a graduate of the
University of Nebraska with a ma­
jor in mechanized agriculture. Since
1980 he has been associated with the
South Omaha Production Credit
Association Office in Fremont as
loan officer.
Northwestern Banker, October, 1984

Dennis R. Wood, president o f^
Packers National Bank, has an­
nounced the ad­
dition of Lonnie
Rocchietti to the
bank’s loan de­
Ms. Rocchiet­
ti p r e v io u s ly
spen t severa l
years as man­
ager of a local
c re d it u nio n.



NBA to Survey Members on ^
Interstate Banking Issue

Edward Kohout, president of Norwest Bank Omaha South, announced
the promotions
of the following
persons: Robert
E. Dahl to senior
vice president
business bank­
ing; Gerry J.
Lenczowski to
vice president,
and Brenda L.
Lawson to ag
loan officer.

Mr. Dahl has been appointed se­
nior vice president/manager of the
business banking department at
Norwest Bank Omaha South in
addition to the same position at
Norwest Bank Omaha and manages
the business banking sector on a re­
gional basis.

where he was vice president/loan
pool manager for the corporation.
He was named senior vice president
at Norwest Bank Omaha in 1983.
Mr. Lenczowski received his BS
degree in business administration
from Creighton University in 1978.
He is presently in graduate studies
at the University of Nebraska work­
ing toward an MBA. He worked at
the Norwest Bank Omaha South as
a teller and collector in the install­
ment loan department in 1975. He
went to Norwest Bank Omaha in
1978 as a regional credit trainee. In
1980 he became a commercial lend­
ing officer at Norwest Bank Omaha
South and was promoted to assis­
tant vice president in 1983. In April
of 1984 he moved to Norwest Bank
Omaha in the business banking de­
partment and was named second
vice president, a position he will re­
tain in addition to being vice presi­
dent at Norwest Omaha South.
Ms. Lawson entered the Norwest
management training program in
June, 1983, and began working at
Norwest Bank Omaha South as an
ag representative. Prior to that she
worked as a supervisor/branch float
and consultant for four years for two
Alaska banks.
* * *

He began working at Norwest
Bank Minneapolis in 1959, and
transferred to Norwest Bank Omaha
South in 1968 as senior vice presi­
dent of commercial banking. He
then worked five years in the corpo­
rate office as vice president/credit
administration. Mr. Dahl spent four
years in Billings, Mont., as execu­
tive vice president of Norwest Bill­
ings, and returned to Minneapolis,

Douglas County Bank and Trust
company recently announced the
promotion of Nancy L. Mortensen to
commercial loan officer.
Ms. Mortensen started with the
bank in 1975 as an executive secre­
tary in the commercial loan depart­
ment. She was promoted to adminis­
trative assistant in 1983.
* * *



Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis

At their meeting in Kearney on
September 27, members of the
Nebraska Bankers Association Ex­
ecutive Council voted unanimously^
to conduct a survey among chief ex­
ecutive officers of member banks on
the subject of interstate banking.
The staff was directed to mail the
survey at the earliest possible mo-*
ment. It asks five questions and of­
fers additional opportunity for com­
ment as follows:
1. Do you think interstate bank­
ing is an appropriate subject for the*
Nebraska Bankers Association to
concern itself with at the present
time? Y e s ____ N o ____
2. Do you feel that you have suffi­
cient information at the present
time to allow you to make an in­
formed decision as to what position
in regard to interstate banking that
the Nebraska Bankers Association
should take? Y e s ____ N o ____
3. Would you be willing to attend
a conference at which the subject
would be more fully discussed?
Y e s ____ N o ____
4. What do you think would be the
most effective way to help inform all
Nebraska bankers of the pros and
cons of the issue? Comment:
5. Do you feel that a poll of the^
membership would be appropriate in
helping the NBA formulate a posi­
tion on the issue? Y e s ____ N o ____
6. The following are some addi-<
tional arguments for/against inter­
state banking (please fill in):
7. Other comments:
The NBA executive council plans
to have results of the study tabu-<
lated in ample time for its legislative
process to establish a position for
NBA to take, if that is desired by
the membership, when this issue
surfaces in the coming state legisla- {
tive session.


Don Ostrand

Ralph Peterson

Jim Flodine

Fred Kuehl

Gerry Tomka

Tom Jensen

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Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984


Nebraska News

LEFT ■Tom Henning, chmn. of the NBA Committee on Agriculture and pres., Overland Natl., Grand Island, is pictured (left) with two panel­
ists: Dr. Larry Bitney (center) and Dr. Doug Jose, both with the Dept, of Ag Economics, U of N-Lincoln. RIGHT—Members of “ Solutions to
Nebraska’s Farm Credit Situation” panel were, from left, front row— Bob Reel, v.p., Federal Land Bank, Omaha; Tom Olson, (moderator),
pres., Lisco State Bk.; Larry Davis, FmHA repr., Wash., D.C., and Morris Reynolds, Nebr. Inv. Finance Authority, Lincoln. Back row— Kirk
Jamison, mgr., PCA, Lincoln, and John Martin (introducer), sr. v.p., Omaha Natl., Omaha.

At NBA Ag Conference

Land Prices, High Interest Rates,
Federal Deficits Cause Farm Problems
OPING with dramatic changes
in agriculture was the central
theme running through the Nebras­
ka Bankers Association’s 1984 A g
Credit Conference at The Cornhusker in Lincoln in early September.
NBA Committee Chairman Tom
Henning, president of Overland Na­
tional Bank in Grand Island, pre­
sided at the meeting.
John Marten, staff economist for
Farm Journal Magazine, set the
stage as opening speaker with his
“ Perspective of Agricultural Cred­
it.’ ’ A knowledgeable, humorous

speaker, Mr. Marten pointed out
that the value of the American dol­
lar and land prices are inversely re­
lated—“ a mirror image. With the re­
cent rise in the dollar, land prices are
not bullish. I think most of the bad
news (on falling land rates) is in—I
am more optimistic than anything.
The majority of farmers already
know it’s no time to buy—so maybe
it is time.” Mr. Marten presented a
series of historical charts pertaining
to land values, ag prices, interest
rates and options for re-financing

Dr. Doug Jose and Dr. Larry Bit­
ney, department of ag economics,
University of Nebraska Lincoln, dis­
cussed “ Managing for Tomorrow,’#
a new family-oriented farm program
of economic education offered by the
Nebraska Crop Extension Service
and the Institute of Agriculture &
Natural Resources of the U niver#
sity. The basic part of the program
is to get farm families to do longrange planning. They explained how
training groups are planning to
cover the state and requested helj®
from bankers in getting their custo­
mers involved in this program.
Glenn LeDioyt, president of LeDioytland Company, Omaha, a vet­
eran in farm management, said “ t h ^
escalation of land prices is the root
cause of the farm problem today.”
He said Nebraska lost 3% of its
farmers last year and now has
60,000 farmers. He pointed to the®

LEFT— Legal panel members; Seated: Dan Jewell and Dennis Collins, partners in Jewell, Gatz & Collins law firm, Norfolk. Standing: Roger
Weiss, pres.-elect of NBA and pres. Commercial Natl., Ainsworth, and Jim Stratton, pres., Osmond State. RIGHT—NBA Pres. A.C. “Skip”
Hove, Jr. (left), chmn., Minden Exchange Bk., and Mr. Henning, (right) present the 1984 Spirit of Agriculture Award to former state Senato#
Maurice A. Kremer for his many contributions to Nebraska agriculture and natural resource conservation.

Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis


N e b ra s k a N ew s

low 4% return on ag land as a
stumbling block, and a controlling
factor for bankers to consider when
making a farmland loan. He said
only 3% of farmland changes hands
a year, “ so that 3% is setting the
price for the 97% not being sold!”
Don Nitchie, commodity market­
ing associate, Chicago Mercantile
Exchange, gave a brief seminar on
the “ Future in A g Options.”
A panel focusing on “ Solutions to
Nebraska’s Farm Credit Situation”
was moderated by Tom Olson, presi­
dent of Lisco State Bank, who is
also the IB A A ’s representative on
Secretary o f Agriculture John
Block’s Bankers Advisory Commit­
tee. While he was citing the fact that
54 banks had been closed in the na­
tion so far in 1984, compared to 48
in all of 1983, the David City Bank
in David City, Nebr., was being
closed by the state department of
banking. The following day, Oak­
land Savings Bank in Oakland, la.,
was closed. Both were sold by the
FDIC and re-opened under new own­
ers. Mr. Olson said his Advisory
Group has told secretary Block that
federal deficits cause high interest
rates that are impacting farmers ad­
Kirk Jamison, PCA manager in
Lincoln, said, “ Our current ag policy
was developed in a time when ex­
ports didn’t impact agriculture. It
needs to be revised in view of this.”
Bob Reel, vice president and
credit review officer, Federal Land
Bank, Omaha, cautioned, “ We
(banks) have to remain strong in the
financial business to survive and be
lenders to agriculture tomorrow. We
can ’t lower interest rates and stay in
business. We can’t finance operators
that are not going to survive.”
Larry Davis, the FmHA represen­
tative from Washington, D.C., and a
former Kansas banker, said 19 to 35
requests from Nebraska bankers to
be approved as Certified A g Lenders
have been OKd and the rest are
being processed. “ The greatest rate
of delinquency increase has been in
the midwest,” he stated, “ including
Nebraska, especially family farms.”
Morris Reynolds, manager of the
N ebraska Investm ent Finance
Authority, Lincoln, discussed the
program of his agency for exchang­
ing tax free bonds for land con­
Another panel, “ Pre-Bankruptcy
Problems & Frivolous Lawsuits,”
Federal Reserve Bank of St. Louis

was moderated by NBA General
Counsel Bill Brandt. Two partici­
pants were Dan Jewell and Dennis
Collins, law partners from Norfolk.
They emphasized the need for thor­
ough documentation of ag loans, in­
cluding getting both husband and
wife to sign the notes. They also re­
viewed other necessary legal steps
to secure loans, steps to watch for in
a foreclosure action, and the growth
impact of frivolous lawsuits.
The two bankers on the panel
both are in the midst of such suits,
they report. Jim Stratton, president
of Osmond State Bank, says his
bank was sued for $40 million by an
area farm owner, the bank won the
case, and now it is on appeal in the
8th Circuit Court in St. Louis. Roger
Weiss, NBA president-elect and
president of Commercial National
Bank, Ainsworth, is involved in a
similar type of suit in which the
bank and all parties have been sued
for $11 million.
At the A g Reception Luncheon,
Past Senator Maurice Kremer of
Aurora was recognized by the NBA
for his numerous contributions to
Nebraska agriculture with the Spirit
of Agriculture award. Chairman
Henning cited a long list of Senator
Kremer’s accomplishments, especi­
ally as chairman of the Nebraska
legislature’s ag committee from
1965 to 1972.
University of Nebraska Football
Coach Tom Osborne again ad­
dressed the luncheon meeting on
Thursday, sharing his insights into
power plays being conducted by var­
ious schools and athletic unions in­
volved in the race for television dol­
lars from football broadcasts.
On Thursday night, delegates
went to the State Fairgrounds for
the Johnny Cash stage show.

Trust Company of Fremont, under
the charter and title of the latter.

MITA Board Members Elected
The Midwest International Trade
A ssocia tion , headquartered in
Omaha, recently elected new board
members for 1984-85. Those elected
President — Paul Warfield, Na­
tional Bank of Commerce, Lincoln;
Treasurer — James Williams, First
National Bank of Lincoln; Joseph
Crimmins, First National Bank of
Lincoln; Jody Crewe, First National
Bank of Omaha, and Brad Korell,
National Bank of Commerce.

The Company Name
Has Changed. . .

Robert E. Rob
Executive Vice President

Patrick H. Rensch
Senior Vice President

C. W. (Chuck) Poore, Jr.
Senior Vice President

A. William (Bill) Abts, Jr.
Vice President

Wayne A. Rasmuss

Micky Krupinsky

John Fleming

Applications Approved
North Platte State Bank received
approval recently from the Comp­
troller of the Currency to convert to
a national charter with the new title:
North Platte National Bank.
Also approved was the merger of
First Savings Company of Sidney
into First National Bank of Sidney,
which is in the organization state.
The merged bank will go by the
name First National Bank of Sid­
Approval was also given for First
Savings Company of Fremont to
merge into First National Bank and

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Member of the Securities Investor Protection Corporation


Northwestern Banker, October, 1984


N e b ra s k a N ew s

HOSTS for First National Lincoln’s 24th Annual Correspondent Bank Conference were William C. Smith (left), pres., and Gary Bieck,
vp.-mgr. of corr. bk. div. RIGHT—Members of The Livestock, Grain and Feed Outlook panel were, from left to right: Seated— Robert Cartmill, pres., Lincoln Grain, Inc., Lincoln, and Jack Maddux, rancher-livestock producer, Wauneta. Standing— Dale C. Tinstman, dir. & former
co-chmn., Iowa Beef Processors, Dakota City, Nebr.; Dr. Roy Arnold, vice chancellor, Institute of Ag and Natural Resources, U of
N-Lincoln, and Carson Rogers, swine producer, Ord.

1st National Lincoln Conference
Offers Optimism for Ag Outlook


ORE THAN 300 community
bankers participated in the
24th Annual Correspondent Bank
Conference hosted in Lincoln last
month by First National Bank and
Trust Company of Lincoln. It was a
newsworthy event for hosts and
guests alike. A total of 625 bankers
and spouses were registered.
It marked the first Correspondent
Conference since First Lincoln and
Omaha National Bank holding com­
panies joined earlier in 1984 to form
FirsTier, Inc., which now owns both
banks. First National President Wil­
liam C. Smith is in the process of
moving his office from the bank’s
executive quarters on the ninth floor
of the bank building to the 12th
floor where he will continue his
duties as president of the bank as
well as added duties as president of
In addition, guests were treated
to the first optimistic look ahead at
the farm economy that the Confer­
ence ag panel has been able to give
in two or three years. A detailed
summary of the panelists’ remarks
was presented in the September 17
issue of the N orthwestern B anker
Weekly Newsletter. Jack Maddux,
rancher and livestock producer from
Wauneta, stated, “ I think we’re on
the brink of some substantial
changes in the next two years —
we’ll see a dramatic price turn­
around. It’s coming and is in the

Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis

making.” He cited reduced cattle
numbers to 112 million head by Jan­
uary, including greatly reduced cow
numbers. He said reduced slaughter
and reduced numbers will compound
into higher beef prices.
Carson Rogers, swine producer
from Ord, also foresees reduced pork
supplies in cold storage, reduced
sow numbers and increased sow kill
as portending higher prices in a few
The more complete report is de­
tailed in the September 17 Newslet­
ter, as noted above.
Mr. Smith welcomed banker
guests at the opening session, then
presented a seven minute video look
at FirsTier—its goals, its strengths
in the form of its two major banks,
mortgage, leasing and trust subsidi­
aries, and the position it plans to
take across a seven state upper mid­
west area in the months and years
Gary Bieck, vice president and
manager of First National’s corre­
spondent bank division, introduced
the moderator of the ag panel, Dr.
Roy Arnold, who has handled that
duty in such excellent fashion the
past two years. Dr. Arnold is vice
chancellor of the Institute of A g and
Natural Resources at the University
of Nebraska-Lincoln.
Before the panel took up its an­
nual duties of discussing The Live­
stock, Grain and Feed Outlook as it
does at the Conference each year,
Mr. Bieck made a number of awards
for those bankers who at last year’s

meeting predicted accurately, or
were the closest to, the prices and
performance levels of a number of
grain and livestock products as mea­
sured by market records this year.
Guests attended a cocktail-buffet
reception Friday night after arriving
and registering at The Cornhusker,
then started off Saturday morning
bright and early, beginning at 7:30
a.m. with a buffet breakfast. Follow­
ing the ag panel’s two-hour presen­
tation, the guests adjourned to the
First National building across the
street for a reception and buffet luncheon before proceeding to nearby
Memorial Stadium for the Universi­
ty of Nebraska’s opening football
game of the 1984 season. The Cornhuskers responded with a dazzling
display of talent as they downed a
tough, but outmanned University of
Wyoming team.






First National O’Neill
Celebrates 100th Year
The First National Bank of
O ’Neill celebrated its 100th anniver- q
sary last month with a day-long cele­
bration. Bank President John Wat­
son was on hand and thanked the
community for its continued sup­
port. A collection of artifacts from 0
the bank’s and county’s history was
on display at the bank and owners of
the oldest items received $50 Sav­
ings Bonds. In addition, several
monetary donations were made by 0
the bank to community organiza­
In his remarks, Mr. Watson said
he has always used the bank’s slo­
gan “ Since 1884” but “ it didn’t 0
mean much to me until now.”



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Northwestern Banker, October, 1984

Daniel E. Walsh was elected mort­
gage loan officer. He joined the
mortgage loan division in October,
1983, and prior to coming to NBC
worked for a real estate firm in Dal­
las. He graduated from the Universi­
ty of Nebraska-Lincoln in 1973 with
a BS in construction management.

The board of directors of National
Bank of Commerce elected four of­
ficers at their July board meeting.
Bruce A. Bellamy was elected
mortgage loan officer. He joined the
mortgage loan division in Septem­
ber, 1983, and prior to that was an
auditor in Commerce Group, Inc.
Mr. Bellamy graduated from Ne­
braska Wesleyan University in 1969
with a BS in business administra­

tion with an emphasis in economics.
Mark L. Holdt was elected loan
analysis officer. He began as a man­
agement trainee at NBC in June,
1982, joined loan analysis in April,
1983, and in August, 1983, was
made acting loan analysis manager.
Mr. Holdt graduated from the Uni­
versity of Nebraska-Lincoln in 1982
with a BS in business administra­

Cynthia Wright was elected con­
sumer loan officer. She joined the
bankcard department in 1977 and #
was promoted to credit supervisor in
bankcard in 1980. She joined install­
ment lending in 1983. Ms. Wright
graduated from Kearney State Col­
lege in 1976.
* * *
Pauline T. Smith has joined the
staff of Cornhusker Bank, Lincoln, %
as assistant cashier and loan officer.
She has 18 years of previous bank­
ing experience.

Three Directors Elected
At North Platte Bank





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Banker, October, 1984
Federal Reserve Bank of St. Louis

Vice President


Where B E N E F IT is m ore
than a m id d le n am e
Lincoln, Nebraska 68508

At a recent meeting of the board
of American Security Bank, North
Platte, Merlyn
B. Honerman,
R obert
Klemm and Rob­
ert L. Morrison
were elected di­
M r. H o n e r ­
man is owner-op­
erator of the Ben
Franklin Store
in the Westfield
Shopping Center in North Platte,*
and also owns the Ben Franklin
Store in Gothenburg.




Mr. Klemm is owner-operator o f ®
Arrowhead Distributing Company
in North Platte.
Mr. Morrison is president and
owner of Snell Electric Service, Inc., ^
also in North Platte.



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Northwestern Banker, October, 1984


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Banker, October, 1984
Federal Reserve Bank of St. Louis


IBA OFFICERS for 1984-85 are, from left: Immed. Past Pres.—Al Maser, pres., First Natl, in
Le Mars; Pres.—William Logan, pres., The State Central Bank, Keokuk; Pres.-Elect—J.
Bruce Meriwether, pres., First Natl., Dubuque; Treas.— Richard Randall, pres., Dunlap Sav­
ings, and Exec. V.P.— Neil Milner, Des Moines.

bers of not only IB A but of Iowa In­
dependent Bankers and the IB AA
as well. He called on all Iowa bank­
ers to exhibit a spirit of teamwork to
achieve growth for the entire indus­
try in the coming year and help lead
Iowa out of its stagnant farm prob­
J. Bruce Meriwether, president of
First National Bank in Dubuque,
was named the new president-elect
and will become president at the
1985 convention next September.
Continuing as treasurer for the sec­
ond year of his two-year term is
Richard Randall, president of Dun­
lap Savings Bank. Neil Milner con­
tinues as executive vice president
and secretary.

•Bill Logan Advanced to IBA Presidency

Associate Publisher

Associate Editor
# A SOBER look at the issues and
r \ problems facing all banks to­
day, especially rural community
banks, and an assessment of alterna­
tives to cope with them was pro^ v id e d by a broad assortment of out­
standing speakers at the 98th an­
nual convention of the Iowa Bankers
Association in Des Moines last
month. The theme selected by retir­
i n g IB A President Al Maser for his
term and the convention, “ New
Banks, New Bankers,” was most ap­
More than 2,200 bankers, spouses,
• industry associates and exhibitors
were in attendance for the meeting.
A t their Sunday afternoon official
IB A business meeting, delegates
were informed of the anticipated


results of the usual August mail
ballot election. William Logan,
president of The State Central Bank
in Keokuk, moved up automatically
from president-elect to the presiden­
cy to succeed Mr. Maser, president
of First National Bank in Le Mars.
The Inaugural dinner Tuesday
night gave an opportunity for in­
coming President William Logan to
outline his “ Teaming Up for the Fu­
ture” theme for the coming year.
Using frequent references to sport­
ing terms related to his former days
30 years earlier when he was an All
American basketball player on the
University of Iowa’s Fabulous Five,
Mr. Logan said he will make every
effort to seek dialogue and harmony
among Iowa bankers who are mem­

Bill Logan accepts the President’s Gavel
from Al Maser as he is installed as 1984-85
IBA President.

In his President’s Report, Mr.
Maser recalled the “ no problem” era
of the 1950s and 1960s in Iowa for
banking, business and agriculture.
He stated that “ agriculture is the
basic economic activity in rural
America and I feel there is no more
important issue for all Americans to
face than how to deal with this prob­
lem. Agriculture is a national trea­
sure and we m u s t find solutions or
we’re going to lose that treasure.”
Mr. Maser then called on bankers to
focus on their strengths to cope with

IOWA G o v . Terry Branstad is pictured (left) with IBA Pres. Al Maser, and in center with his long-time friend, Gordon Wold, pres., Poweshiek
County Savings Bank, Brooklyn. RIGHT— Louis Rukeyser, host of W a ll S tr e e t W eek, is briefed by IBA Commun. Dir. Alda Post.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984


Io w a N e w s

LEFT— Wives of three IBA officers are, from left; Shirley Meriwether, Dubuque; Delores Maser, LeMars, and Joan Logan, Keokuk. RIGHT—
Anne Bryant (center),dir. of NABW’s Educational Foundation, Chicago, is pictured after her convention address with Betty Steele (left), a
past pres, of NABW and v.p. & corp. secy, of Brenton Banks, Inc., Des Moines, and Marie Wilson (right), IBA dir. of education/human


the changing consumer, competitive
and technological environments. A
major strength he stressed is that of
the people who make up our commu­
nities and the banks, noting, “ How
we care about people may be more
critical to our survival than any
other business decision we might
Mr. Maser was elected to a twoyear term on the A B A Council, ef­
fective at the end of the A B A con­
vention in New York this month,
and will succeed Tom C. Dunlap,
chairman and president of Andrew
Savings Bank, Bellevue. The other
Iowa member of the A B A Council,
L.C. “ Bud” Pike, president of
Hawkeye Bank & Trust, Grundy
Center, will become A B A vice presi­
dent for Iowa, the position Mr. Dun­
lap held this year.
Two new members of the Iowa
Bankers Insurance & Service board
for 1984-85, elected at the Sunday
meeting are Willis M. Hansen, presi­
dent, State Bank of Lawler, and Ger­

ald F. Lapke, president, State Bank
of Portsmouth. Also, Norman Skadburg, president, First State Bank,
Webster City, will present the IBA
board on the IBIS board.
At their business meeting, IBA
members approved three amend­
ments to the articles of incorpora­
tion. The first states that any state
or nationally chartered bank may be
eligible for IB A membership. The
vote, including mail ballots was
168-3 for passage. The second vests
management of the corporation’s af­
fairs in its board of directors. It
passed 184-31. The third, a contro­
versial measure, was finally adopted
144-42. It provides that “ At each
Annual Convention in an even-num­
bered year, the Executive Commit­
tee shall appoint, from the Members
in good standing, one person who
shall serve as a voting member of
the Board of Directors for a twoyear term and until that person’s
successor is appointed and shall
have qualified.”

The controversy centered around^
whether this would permit addi­
tional control or voice on the Board
by holding companies without mem­
bership vote. Several independent
bankers spoke against the arnend-^
ment and a motion by one to table
the issue for one year was defeated.
The amendment then was adopted.
First Day A g Program
Following long-standing custom,
the first business session on Mon­
day morning was devoted to agricul­
tural talks. Presiding was Roger
Engelkes, executive vice president^
of Grundy National Bank, Grundy
Center, and IBA A g Committee
Neil Harl, nationally known as
professor from Iowa State Univer-#
sity, whose keen analysis of the cur­
rent agricultural financial crisis has
been considered top resource materi­
al by the highest government offi­
cials, was the leadoff speaker. H e #
emphasized again a key point of all

LEFT— Bob Millen, pres., United Central Bank of Des Moines; Jock Stevenson, pres., First T&S, Cedar Rapids; Addison Jones, pres., Grinnell State, and Ken Myers, chmn. & ceo, United Central Bancshares, Des Moines. RIGHT— Mike Austin (left), v.p., and Jim Eiler (right), s r ^
v.p., both with United Central Bank, visit with John Hopkins (center), pres., Albert City Savings.

Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis


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Northwestern Banker, October, 1984


Io w a N e w s

BACKSTAGE PICTURES— Upper left: Speakers A. Arthur Davis, IBA general counsel, Des Moines; Bob Brenton, ABA pres, and pres, of«
Brenton Banks, Inc., Des Moines, and Neil Milner, IBA exec. v.p. UPPER RIGHT—Community Bankers panelists Dwight Seegmiller, v.p..
Hills B&T; Rowland McClellan, chmn. & pres., Bank of Wisconsin, Janesville; Lawrence Johns, pres., Isabella B&T, Mt. Pleasant, Mich, and
IBA Exec. V.P. Neil Milner, moderator. LOWER RIGHT—Relaxing in between sessions were Bill Logan, newly-elected IBA pres.; Randy
Steig IBA exec, dir., and Wes Ehrecke, IBA govt, rel./mktg. dir.

his discussions that high interest
rates are at the foundation of the
severity of ag problems today.
The roots of the financial problem
of farmers, he pointed out, are four­
fold: 1. Adverse weather conditions.
2. High real rates of interest. 3. Ex­
pansion in the ‘70s. 4. Reduction in
land values. “ But nothing comes
close to Number Two,” he empha­
sized, “ and it should be a concern of
both parties and Congress. The drop
in land prices affected more harshly
those farmers who responded to gov­
ernment signals earlier in the 1970s
that investments in land and ma­ was a call for federal guaranty of
chinery would be the answer to run­ loans and debt restructuring.
away inflation. Then, when govern­
A1 Tubbs, president of First Cen­
ment halted inflation, these people tral Bank in DeWitt, who is also vice
were hurt badly.
chairman of the A B A ag committee
He noted that three of the four and one of several bankers on Secre­
factors impact farmers who do not tary of Agriculture John Block’s
borrow. The best solution for the en­ Bankers Advisory Committee, was
tire problem is to haul down real in­ the next speaker. “ The problem we
terest rates. This involves a commit­ face with the farm situation and our
ment by Congress to cut expenses economy,’ ’ he said, “ may not wait
and a commitment by that body and for the ‘85 Farm Bill.” He, too
the President to reduce the budget pointed to the national budget defi­
so that cash flow can catch up. The cit and high interest rates as the co­
short term solution will require a culprits for the ag problems. In addi­
debt restructuring program that will tion, weather the past four years in
allow the remaining good farmers to Iowa has compounded that problem.
handle their debt over a longer peri­
Bankers, Mr. Tubbs, said, are
od of time in a manageable way. hard at work telling the President
(President Reagan announced his and Congress they must adopt a bal­
plan to assist in such farm debt re­ anced budget amendment. Looking
structuring after the ag talks were at viable alternatives for solutions
given at the convention.) For many, to today’s ailing farm economy, Mr.
Mr. Harl said, another alternative Tubbs reviewed those points dis­
will have to include a scaleback in cussed most recently by his ad­
their operation, plus informal liqui­ visory committee with USD A Secre­
dation for some. He doesn’t like tary Block. Those basic points were
moratoriums because they soon part of President Reagan’s program
translate into restricted credit for a n n ou n ced W e d n e sd a y —m ore
the very sector they were intended FmHA loan guaranties, write-down
to help. His final short-term solution by banks of part of their farm loans
Banker, October, 1984
Federal Reserve Bank of St. Louis

in return for a loan guaranty on the#
balance of a failing loan, committees
of bankers and leading ag specialists
for counseling with farm operators
on debt restructure, and contracting
with banks by FmHA for comple-#
tion of the FmHA application back­
As for the general direction of the
‘85 Farm Bill, Mr. Tubbs said, a de­
termination will have to be made as®
to where the money will be spent—
with the traditional “ social sup­
port” mentality of programs of the
past 50 years, or a “ marketing” ap­
proach aimed at producing the best®
and selling it in open markets.
Another factor will be control of
total acreage on all farms so that
land not only is conserved, but th at^
non-productive land will not be in­
cluded in any programs that do call
for support measures. “ W e’ll need to
move away from disaster relief,”
Mr. Tubbs stated, “ to an insurable^
system” through Federal Crop In­
surance to protect against natural
disasters of tornadoes, droughts,
floods, instead of the billion-dollar
disaster relief programs.
Alan Tubbs’ father, Ed Tubbs,


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Northwestern Banker, October, 1984


Io w a N e w s

chairman o f the Maquoketa State
Bank as well as chairman of First
Central Bank in DeWitt, gave a
brief report as president of MABSCO Agricultural Insurance Ser­
vices, Inc. MABSCO and its subsi­
diary M ASI offer alternative fund­
ing programs to community banks
for ag loans. Following the Monday
speeches, Mr. Tubbs and his son
boarded a plane in Des Moines with
Tom Huston, Iowa superintendent
of banking, to go to Washington,

D.C., where Ed Tubbs and Mr. Hus­
ton met the following morning with
Vice President George Bush to dis­
cuss in detail the ag financial prob­
lem, and Alan Tubbs joined several
other bankers for a meeting with
President Reagan when the Presi­
dent announced his farm assistance
program that same day.
Eben Browning, noted author and
consultant on historic weather
trends of the world and the upper at­
mosphere, gave his unique percep-

tion of weather—its control of world ^
trade and social actions—to the con­
vention. His charts date back to premedieval days through testing of
Greenland ice caps and trace the
causes and results of predictably^
consistent weather flow charts that
generally span 50-year increments.
(Ours doesn't look all that good for a
few years!)
Afternoon Speakers
Author John Naisbitt, whose

ENJOYING the United Missouri Bank of Kansas City dinner were: Dick Goos, Peoples St. Bk., Missouri Valley; Dick Muir, United Missouri#
Bk; Jon Garnaas, sr. v.p., and Faith, and Dixie and John Harmeyer, pres., Plaza St. Bk., Des Moines, and Jana and Gary Woods, Peoples St.
Bk., Missouri Valley. Mark Sams, v.p. & cash., and Connie, and Erma and Norm Skadburg, pres., both with First St. Bk., Webster City, with
Jacque and Ed Muholland, exec, v.p., Malvern Tr. & Sav. Bk., and Phil Straight, exec, v.p., United Missouri.

LEFT— Hosts at 1st Natl, of Chicago dinner party were Tom King and Bud Cross, (both at left), v.p.s, and Paul Gargula (right), corr. bkg. _
off., shown with guests Shar and Ollie Hagen, pres., United Central Bancshares, Des Moines. RIGHT—At Norwest Bank Omaha dinner®
(from left): Mike Moeller, pres., Norwest Bank Sioux City; Bill Dewhurst, 2nd v.p., Norwest Bank Omaha; Bev Moeller; John Cochran, pres.,
Norwest Bank Omaha; Steve Navin, 2nd v.p., Norwest Bank Sioux City, and Bette Cochran.

LEFT— Pictured at LaSalle Natl, of Chicago luncheon: Seated— Hill Hammock, exec, v.p., LaSalle; Don Ellis, cash., Solon State, and Emil
Schubert, v.p.,, LaSalle. Standing—Wayne Bismark, v.p., LaSalle; Mel Kupka, pres., First Community B&T, Traer, and Don Erusha, pres.,
Solon State RIGHT—At First Natl. Omaha dinner: Fred Kuehl, 2nd v.p., 1st of Omaha; Dan Boatman, pres., Iowa State, Hamburg, Mick #
Guttau, pres., Treynor State, and Bob Meisinger, 2nd v.p., and Don Ostrand, v.p.-head of corr. bk. dept, both with 1st of Omaha.

Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis


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Northwestern Banker, October, 1984


Io w a N e w s

LEFT— Forming the receiving line for the First Banks Correspondent Department luncheon were: Bill Hamilton, a.v.p., Robert Anderson®
exec, v.p., Dick Flesvig, a.v.p., and Mike Mishou, v.p. RIGHT—National Bank of Waterloo exhibitors included: Leroy Bell, data process, off.,
Willis Crees, sr. v.p., and Scott Fetner, pres.

book Megatrends was familiar to all
in the audience, said “ as the country
shifts from an industrial economy to
an information economy, we are in
the process of changing the world we
live in.” In line with fundamental
revisions of corporations he says are
taking place, he also feels it won’t be
long until banks as we know them
today will be a thing of the past.
C. Robert Brenton, president of
the American Bankers Association
and president of Brenton Banks, Inc.,
Des Moines, brought greetings from
A B A national headquarters to the
association which he served as presi­
dent just a few years ago. He will
preside at the A B A convention in
New York later this month.
Jack MacAllister, president and
ceo of U.S. West, whose overall ser­
vice organization in Denver serves
Northwestern Bell Telephone Co.
and two other regional Bell systems,
told about deregulation processes in
the telephone industry and related
those experiences to ones bankers
now are experiencing or will have to
face. Bankers, like the phone compa­
nies, airlines and trucking industry
ahead of them, will have to recon-

ceptualize their positions in relation
to total industry and life of this na­
tion, he warned.
Tuesday Speakers
Anne Bryant, director of N ABW ’s
Bank Women’s Educational Foun­
dation, Chicago, was the lead
speaker the second day. She in­
volved her audience immediately by
asking each person to write down
three characteristics of a leader that
had influenced them. A universal
characteristic shared by most, if not
all, was vision—the ability to trans­
late a real plan into words, the abili­
ty to communicate and listen.
She related, and showed with
video tape, portions of interviews
with 35 business women, and said
one trait common to all of them that
set each apart from others in their
field was their style.
A. Arthur Davis, general counsel
for IBA and head of a prestigious
Iowa law firm in Des Moines, related
a number of landmark decisions and
banking benchmarks of the decade
in which he has been general counsel
for the association. He said “ the key
to the future is money and credit,

and bankers are in this business.
But bankers are going to have to
educate themselves to stay ahead.’’ ®
Alice Huston of Columbus Junc­
tion, whose husband is Iowa super­
intendent of banking, and John
Chrystal, president of Iowa Savings
Bank in Coon Rapids (and now presi-®
dent of Bankers Trust Company,
Des Moines), made a graphic appeal
to IBA members for financial sup­
port for construction of a new Iowa
Historical Museum. They head the®
financial campaign statewide and
showed with photos and a short film
the need for preserving the many
historical treasures entrusted to the
State of Iowa for future generations.®
Community Banking Panel
The Community Banking Panel,
“ Challenges Facing the Community®
Bankers,” was moderated by IB A ’s
Neil Milner. Panelists included:
Rowland McClellan, chairman and
president, Bank of Wisconsin, Janes­
ville; Lawrence Johns, president,®
Isabella Bank & Trust, Mt. Plea­
sant, Mich., and Dwight Seegmiller,
vice president, Hills Bank & Trust,

LEFT— Welcoming guests to the Banks of Iowa reception were: Holmes Foster, pres, and c.e.o., Bks. of la.; Henry Royer, pres, and c.e.o.,
Merchants Natl. Bk., Cedar Rapids; Max Larson, pres, and c.e.o., First Natl. Bk., Sioux City, and J. Locke Macomber, chmn., Valley Natl
Bk., Des Moines. RIGHT—The reception line for the Security Natl. Bk., of Sioux City dinner included: Dennis Nahnsen, v.p., and Margaret;®
Carla and Gene Hagen, pres, and c.e.o., and Ron Kiel, corr. bkg. off., and Sylvia.
Banker, October, 1984
Federal Reserve Bank of St. Louis

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Io w a N e w s

LEFT— The Hawkeye Bancorporation “ Shoe Shine Shop” was once again one of the more popular resting places in the exhibit hall. RIGHT
— Banks of Iowa, Inc., was well represented in Capital Pursuit, which included a 3 mile and ten mile run.

Hills, la. Some of their remarks fol­
Mr. Johns: Michigan is a branch­
ing state and our bank of $110 mil­
lion deposits has eight branches and
a .92 ROA. “ We bankers are being
told the only real way to stay viable
is to make money in new ways. We
have to go after new services and
new ways to make money. I believe
this is really a political problem. We
need to be more astute bankers and
get onto those in Washington to get
some decisions made. W e’ve seen
what happened with the decision
made on insurance services just this
last week (defeated). If we are going
to be new banks in this new environ­
ment, then we have to be new bank­
ers and, as old dogs, we need to learn
new tricks to stay in the race.
Mr. Seegmiller: There are four
kinds of customers:
• Troubled Coper—25% of popu­
lation. Low net worth, intimidated
by banks, generally not a good bank
• Self-Indulgent Spender—15% of
population. Live for today generally
two incomes, may be leaders of to­
morrow, good customers on asset

side because good prospects for
• Solid Saver—35% of popula­
tion. Thrifty, live within their
means, work for the future, tradi­
• Involved Investor—25% of pop­
ulation. Hands on investors, diversi­
fied, have money, rate conscious.
We have to consider the categor­
ies we want as customers, then de­
termine how to retain and build on
the customer base we have identi­
fied. We need to appeal to human na­
ture which likes courteousness, po­
liteness, and going the extra mile.
This helps create a great advantage
in maintaining a leadership role in
the community. We believe that
20% of the customers provide 80%
of our deposits, so we go after the
Things we are doing at Hills
1. Board room luncheon program
once a month. Invite customers and
prospective customers.
2. Annual estate planning semi­
nar, free of charge, put on by trust
officers of our bank.
3. Offer high school money man­

agement seminar to teach basics of
money management.
4. Active officer call program on
good customers and prospects.
Hand deliver all the monthly state®
5. Send cards for birthdays, anni­
versaries, weddings, funerals and at­
tend where appropriate.
6. Annual barbeque, totally free •
in Hills (population 513), which this
year served more than 7,000 guests!
7. We try to carve out customer
base and try to be leaders in the
community with new services. For®
example, we went big into ID EA an­
nuities through the Iowa Bankers
Association and now have $7 million
in that one area alone.
The question then is asked—how1®
do we do all that? We feel the key is
good employees and to use them.
Getting employees motivated and
displaying teamwork are buzz words
that have been around a long time.®
As a bank staff, we have:
1. Three weekly officer meetings
and input is encouraged.
2. Bi-monthly board meetings.
3. Four long-range planning ses­
sions each year. Food catered.

LEFT— Manning the Banks of Iowa Computer Services, Inc., exhibit were: Larry Clore, bus. devel. mgr., Steve Boes, bus. devel. rep., Keith
Grimm, v.p., and John Meehan, bus. devel. rep. RIGHT—J. Brad Young, chmn., Iowa Tr. & Sav. Bk., Centerville, visits with Ross Schoon®
over, v.p., Office Concepts, Ltd., Waterloo.

Banker, October, 1984
Federal Reserve Bank of St. Louis


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Northwestern Banker, October, 1984


Io w a N e w s

4. Officers encouraged to cater to
customer needs.
5. Leadership by example.
Eighteen Hills Bank officers are
in an average of five community ac­
tivities; several executives are in as
many as 10 community activities.
I believe that by building a good,
solid base such as that of the solid
saver who will respond to the com­
munity bank and its quality ser­
vices, and by having key personnel
who are willing to go that extra mile,
this will allow many community
banks to survive and prosper.
Mr. McClellan: Our real bread and
butter is accepting deposits, making
transactions and extending credit.
We are going to have to structure
ourselves to do this not in a fran­
chise context as we have been al­
lowed to do over the past many
years, but in a deregulated context.
We have to deal with interest in­
come and interest expenses, as well
as non-interest income and non-in­
terest expenses. We have some man­
agerial experience to deal with this,
but if we are to manage new banks
and new bankers of the future, then
we are really going to have to man-

age. A watchword will be monitor;
watch percentage relationships to
Concluding Speakers
John Barrickman, senior vice
president, Bank Earnings Interna­
tional, Atlanta, Ga., left his audi­
ence with these thoughts: Each
bank must identify its mission and
position in the market place. Banks
have a clear, competitive edge over
other types of institutions. A recent
survey shows these six main reasons
why people choose to deal with
banks: Reputation, direct contact,
competitive pricing, knowledge of
officers, convenient location and
wide variety of services.
Management must reevaluate
lender skills and train them to be
lender salesmen of the 1980s. Strong
senior management that closely
monitors lending performance will
be required.
Louis Rukeyser, host of Wall
Street Week TV program, proved
again his showmanship as well as
his perceptive and analytical ability.
He said two areas need to be ad­
dressed in strong fashion—continue
to get inflation under control, and

respond to the need for public eco­
nomic education.
Mr. Rukeyser said, “ We have
been making a solid, broad, en­
thusiastic recovery... 1983 and ‘84
have been two of those unusually po­
sitive years, but I think we have®
some surprises left. The ultra-rapid
pace of recovery earlier this year is
not sustainable, but the current
slightly more accelerated rate of re­
covery now will continue. Business®
is up and inflation is down.” He sees
the unemployment level “ sadly” re­
maining at its present level.
He concluded by saying, “ the true^
danger as election approaches is®
that we abandon any resemblance of
a fight against inflation, which
would result in worse inflation and
high interest rates and a depressior^
indeed...My optimistic fervor is
based on the strength of the
American people and their realiza­
tion of the need for self-reliance.”
Convention Resolutions
Half of the 14 resolutions adopted
at the IBA business meeting re­
flected the intensity of the members
and the IB A ’s involvement with the
legislative process by calling for#


LEFT— Dennis Whittington, acct. exec., HBE Bank Facilities, St. Louis, meets with Arien Kirkhart, v.p., and Roger Loerch, pres., Manson
St. Bk., and Jim Esmay, cash., Union St. Bk.,, Rockwell City. RIGHT— Mike Kramer, pres., Midwest Sign, Des Moines, Jim Thomas, sales
rep., Daktronics, Inc., Brookings, S.D., and Bernie Wright, Electra Sign Co., Cedar Rapids.

LEFT— Mike Bauer, v.p., Jim Figge, exec, v.p., and Dave Howell, corr. bkg. rep., (far right) welcome Iowa State Senator Merlin Hulse, Clar­
ence, and Bud Wilier, exec, v.p., Decorah St. Bk., to the Davenport Bk. & Tr. convention breakfast. RIGHT—Century MicroCenters, West||)
Des Moines, representatives included: Cindy Carter, Brad Schaefer, and Dave Hacker.

Banker, October, 1984
Federal Reserve Bank of St. Louis

Io w a N e w s


LEFT— Northern Trust of Chicago reception line hosts included: Clyde Reighard, exec, v.p.; Jim Monhart, comm. bkg. off.; Louise
Reighard; Loren Lange, comm. bkg. off., and John McClure, v.p.-head of fin. inst. dept. RIGHT—Hosts at Omaha Natl, luncheon: Dan
Boehle, v.p.; Tom Ryan, mgr.-edp serv.; Steve Scanlon, bond salesman; John Martin, sr. v.p.-head of fin. inst. & ag lending dept.; Del Olson,
v.p., and John Wear, 2nd v.p.

LEFT— Hosts at Bankers Trust Co., Des Moines, reception were: John Ruan, chmn.; John Chrystal, pres.; Ben Eilders and Larry Frowick,
sr. v.p.s. RIGHT—Mr. Chrystal also joined Alice Huston on the convention platform in an appeal to Iowa banks for financial support for the
V iew Iowa Historical Museum. Mrs. Huston, whose husband, Tom, is pres, of Columbus Junction State Bank and is Iowa supt. of bkg., is
shown backstage with Mr. Chrystal reviewing their notes.

LEFT—Bill Potterton, v.p., Lew Brown, a.v.p., and Dave Cox (far right), v.p., Harris Tr. and Sav. Bk., Chicago, visit with John Koza, v.p., Iowa
State Bk. and Tr., Iowa City. RIGHT—Stan Farmer, a.v.p., and Jerry Trudo, v.p., Merchants Natl. Bk., Cedar Rapids, with Doug Schmidt, v.p.,
First Natl. Bk., Sioux City.

LEFT— Enjoying the gazebo at the D.M. Botanical Center were: Paul Dunlap, pres., Hawkeye Bancorp., J.C. Milner, Jackaline Dunlap, and
Neil Milner, exec, v.p., IBA. Also enjoying the Hawkeye Bancorp, reception were: Jack Elliot, dir., Hawkeye Bk. & Tr., Mt. Ayr; Linda Jones;
^lild red Elliot, chair., la. Real Estate Comm.; Steve Jones, sr. v.p., Hawkeye Bancorp; Jack Schroeder, dir., Hawkeye Bancorp.; Dave
Walthall, pres., Hawkeye Capital Bk. & Tr., Des Moines, and Elyce, and Sue Denton, admin, asst., Hawkeye Bancorp.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984


Io w a N e w s

more involvement on the part of
members in that process in various
ways—with the President, with
Iowa Congressmen and within the
state legislature,
Entertainment offerings were
again up to high standards for IBA
conventions. Country western per­
former Roy Clark gave two perfor­
mances on Sunday at the Des
Moines Civic Center to an apprecia­
tive audience. The President’s Re­
ception and Ball at Capital Square,
hosted by IBA President Maser and
his wife, Delores, also honored A B A

President Bob Brenton and his wife,
Babette. Capital Square also houses
headquarters of Brenton Banks,
Inc., of which he is president.
Concluding the Inaugural dinner
and the 1984 convention was a spir­
ited performance by the 17-piece
University of Iowa Jazz Band that
catered to the music of the ‘30s, ‘40s
and ‘50s.

Promoted to President
At West Liberty State Bank
Dennis R. Batty has been pro­

moted to president and chief execu^
tive officer of West Liberty State
Mr. Batty started with the bank
in October, 1983, as vice president.
Also announced, Ann Howe was#
named operations officer and Cindy
L. Noring was named consumer loan
Ms. Howe’s duties will include
supervision in the areas of customei#
service, accounting and personnel.
Ms. Noring, previously with Iowa
State Bank, Iowa City, will be in­
volved in the areas of consumer and
real estate loans.
■ I

■ ijifj
LEFT—Keith Lazar (center), exec, v.p., Van Horn Sav. Bk., visits with Financial Systems, Inc. representatives Dave Stochl and Bob Neville.
RIGHT—American Natl. Bk., Chicago representatives included: Ruth and Bob Regnerus, 2nd. v.p., Mary Ann and Dennis Reher, 2nd. v.p.A
and Meg Burke, bond off.

LEFT— Hosting guests at the Iowa Bankers Insurance and Services open house were: Gary Livesay, v.p., AI Tinder, pres., Millie Uding, v.p.,
Margie Schaefer, v.p., Chris Wehde, spec, projects, and Larry Gille, v.p. RIGHT— Rich Nelson, 2nd. v.p., and Tom Ryan, client consult., man

the Omaha Natl. Bk. exhibit.

LEFT—Ann Doyle (center), v.p., Wellman Sav. Bk., visits with Art Joura, pres., and Lynn Groen, sales rep., Data Business Equip., Des<
Moines. RIGHT— Bob Chamberlain, v.p., Omni Resources, Inc., Orlando.
Banker, October, 1984
Federal Reserve Bank of St. Louis

Io w a N e w s


LEFT— In receiving line at Continental Bank of Chicago’s traditional luncheon were, from left: Mary Nihlean, bkg. off.; Philip Adams, 2nd
v.p., and Bob Vasko, v.p.-div. mgr. of central district. RIGHT—Five presidents of the Iowa Bankers Assn., gathered at the Continental lun­
cheon (from left): Randy Petersen, pres., Shelby County State, Harlan; Christy Armstrong, dir., American T&S, Dubuque; Harry Schaller,
chmn., Citizens First Natl., Storm Lake; Bob Brenton, pres., Brenton Banks, Inc., Des Moines, and current ABA pres., and Jack Campbell,
res., Humboldt T&S.

LEFT— At Norwest Bank Des Moines breakfast were, from left: Voldy Vanags, sr. v.p., Norwest; Bob Miller, pres., Polk City Savings; Mark
Conway and Tom Quinlin, 2nd v.p.s, Norwest, and Bob Ross, chmn., City Natl., Shenandoah. RIGHT—Visiting at Drovers Bank of Chicago
Reception: Tom Bernau, mgmt. trainee, Brenton Natl., Des Moines, and his mother, Mrs. Bill (Kay) Bernau; Ruth Carmody; Bill Bernau, pres.,
Peoples Savings, Crawfordsville; Jim Carmody, pres., and John Crotty, sr. v.p., Drovers Bank.

LEFT— Michelle LeCuyer and Mike Hay, trust admin., and Jack Campion, v.p., F & M Marquette Natl. Bk., Minneapolis. RIGHT— Roy
Wingers, sr. consul., represented Bank Building Corp., St. Louis.

^¡.EFT—Terry Winders, pres., and Bob Scheitzach, v.p., were on hand representing First Lease & Equip. Co., Louisville, KY. RIGHT— Bill
Hartman, natl. train, dir., Mark Havemann and Kathryn Foster, acct. reps., and Craig Ross, state dir., IAC Group, Des Moines.
Federal Reserve Bank of St. Louis


Io w a N e w s

More Photos
from 98th
Iowa Bankers
Vince Whitcomb and Rhonda Griffiths, sales representative w ith®

Electronic Office Systems of Des Moines, demonstrated products
in the exhibit hall during the convention.

LEFT— Discussing a recently completed project are Robert Jamerson, dir. arch, serv., and Jerry Gross, pres., Kirk Gross Co., and Carol and
Dick Park, pres., First Natl. Bk., Oelwein. RIGHT—Glen Burmeister, pres., and David Miles, mkt. devel. dir., Homestead Management Sys­

tems, Inc., Des Moines.

ta, A'.Av;





LEFT— Representatives from the LaSalle National Bank of Chicago included: Magdalena Aguilar, fin. serv off., Wayne Bismark, v.p., Pattie Kline, corr. bkg. rep., Emil Schubert, v.p., and Maria Uribarri, mktg. off. RIGHT—Representing newly formed Microcom, Inc. of Cedar
Rapids were: Joe Phernetton, pres., Sandi Young, tech, consul., Bob Duff, exec, v.p., and Bob Sehladetzky, acct. exec.

Wayne O. Hopkins Dies
Funeral services were held last
month in Spirit Lake for Wayne O.
Hopkins, 72, a veteran Iowa banker.
At the time of his death, Mr. Hop­
kins was a director of Albert City
Savings Bank and was executive
vice president and director of Citi­
zens State Bank in Webb.
Mr. Hopkins first became affili­
ated with First National Bank in
for FRASERBanker, October, 1984
Federal Reserve Bank of St. Louis

Spirit Lake in 1942. He purchased
the Citizens State Bank in Webb in
1947 and served as president of that
bank and Albert City Savings Bank
for many years. He was succeeded
as president at each bank by his two
sons. John W. Hopkins now is presi­
dent at Albert City, and David R.
Hopkins is president at Webb.
Mr. Hopkins also had served on
the board of directors of the State

Bank of Spirit Lake, the Manson
State Bank, the Swea City State
Bank, and was vice president and di­
rector of State Savings Bank in Aplington. In addition, he was a former||
officer of the Clay County Bankers
Mr. Hopkins also is survived by
his wife, Marie, of Spirit Lake, and a
daughter, Mrs. Dean (Mary) Ken||
agy, Marshalltown.





Iowa, the beautiful land. With her waving fields of grain and bordered by the great rivers,
Iowa has had a distinguished history. Before the first wagon trains trekked across the
wilderness frontier; before Iowa ever attained her statehood, a sense of pride and unity had
developed among her settlers. This pride is still evident today.
As Iowans have sought to preserve their heritage, the State’s collection of artifacts has
grown to nearly 1.3 million items. We can no longer properly accommodate these priceless
heirlooms in the present structure.
We invite you to join with us in preserving your past through the establishment of a first class
Museum facility...A Showcase of Iowa History.








To Our Iowa Banker Friends:
//you have not yet responded to our earlier, personal letter asking you to join
other Iowa banks in reaching our goal of $2,500,000 from the Iowa banking
industry, we ask you to please do so as soon as possible. As community
leaders, your example will inspire other Iowans to make generous donations
for this most worthy cause. Thank you for your support!
Alice Huston and John Chrystal
Co-Chairpersons, Banking Committee
Trustees for Tomorrow Program
Iowa Historical Museum Foundation

Iowa Historical Museum Foundation
431 East Locust, Des Moines, Iowa 50307
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984


Io w a N e w s

New Facility Underway in Indianola

GROUNDBREAKING ceremonies were held in September for Warren County Brenton Bank

and Trust’s new facility at 509 N. Jefferson, Indianola. The bank has leased 75% of the
21,130 sq. ft. structure with the remaining 25% of the space available for tenants in finan­
cially related businesses. Warren County Brenton Bank and Trust has been located at 113
N. Buxton for the past 30 years. Eugene Smith, pres., noted that the new quarters will
enhance customer service as well as staff efficiency since duplicate operations will be
eliminated with the subsequent closing of the bank’s highway office. Completion of the
project is scheduled for mid-1985.

Alice Huston, John Chrystal Head Drive
HROUGH personal letters to
Iowa bankers and their joint ap­
pearance on the platform of the 98th
annual convention of the Iowa
Bankers Association last month,
Alice Huston and John Chrystal
have outlined their efforts to reach a


goal of $2,500,000 in donations from
the Iowa banking industry for con­
struction of a new Iowa Historical
Iowa banks were being asked to
consider a donation of one-hun­
dredth of one percent of assets to

Committed to
making your
bank stand
apart from the

for FRASERBanker, October, 1984
Federal Reserve Bank of St. Louis

the drive, either in a cash sum oil
over a period of three years. The e ^
ample cited was a donation of $2,000
for a bank with $20 million assets. A
number of banks had responded to
the August 13 letter prior to th ^
mid-September IBA convention;
while others indicated they were
awaiting action by the bank’s board
of directors at an ensuing meeting.
Total cost of the new museum i^
estimated at $27 million. At IBA
convention time, the drive was al­
ready within $6 million of the total
goal due to large gifts from a num­
ber of corporations and business
firms. Mrs. Huston and Mr. Chrys­
tal noted in their letter to Iowa
banks that Des Moines-based banks
and multibank holding companies
had already given $966,000.
The outdated current museum
near the state capitol was completed
in 1909 and has collected more than
1.3 million items, many of them with
no place to be exhibited and n 0
means of proper storage and preser­
vation techniques.
The new Iowa State Historical
Building would be located at the
foot of the Capitol with its main er#
trance on East Locust Street.
Mrs. Huston’s husband, Tom, is
the well-known Iowa superintendent
of banking and he is also president
of the Columbus Junction Static
Bank. Mr. Chrystal, president of
Iowa Savings Bank in Coon Rapids,
recently accepted appointment as
president of Bankers Trust Com­
pany in Des Moines.

Two Appointed At
First National, Clinton


Jerome B. Kedley was recently
appointed assistant vice president
and assistant branch manager of the
Grand Mound Office of First
tional Bank, Clinton. Prior to joim
ing First National, Mr. Kedley
served as assistant vice president
and agriculture/commercial loan of­
ficer with Hawkeye Bank and Trus.L
of Camanche.
In other action, Jennie L. Dopp
was appointed marketing officer at
the bank. In addition to marketing
and advertising duties, Ms. Dopp
responsible for all employee training
programs and serves as coordinator
for the VIC Club program. She
joined in 1979 and most recently
served as manager of the bank’^
Lyons Branch.

Io w a N e w s


^V.P. Joins Hubbard Staff
Roger L. Severson has joined the
staff of Security State Bank, Hub­
bard, as vice
p re sid e n t and
A graduate of
Iowa State Uni­
versity with a
degree in agri­
c u ltu r a l bu s­
iness, Mr. Sever­
son most recent­
ly had been serv­
ing as vice presi­ R.L. SEVERSON
d e n t and cashier of the Citizens
Bank and Trust, Belle Plaine.
Security State Bank has also an­
nounced the promotion of Ron
Raney to vice president and farm

Announced in Sioux City
Hawkeye Bank & Trust, Sioux Ci^ y , recently announced that Richard
Davison has joined the bank as as­
sistant vice president in commercial
loans. Mr. Davison’s past experi-



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Se cu rity
for You!
At Security National Bank, w e’re people you can count
on to handle all of your Correspondent Banking needs.
Our team of Correspondent Bankers are committed
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ence includes seven years with Asso­
ciates Finance and most recently,
six years with Toy National Bank.
• In addition, Paula Gormally was
elected as loan officer. She started
with the bank in 1980 and has
worked with student loans, credit
cards and most recently in loan ad­
ministration. Her new responsibili­
ties will be centered around loan
operations and instalment lending.

•loins Staff of Hills Bank
Roy C. Justis, Jr. has joined the
staff of Hills Bank and Trust Com­
pany, Hills, as marketing director.
Formerly associated with K XIC/
%^KRQ Radio in Iowa City where he
has served the past 16 years in
various capacities including sales
manager and station manager. He is
^ graduate of the University of
N orthern Iowa in Cedar Falls.
Federal Reserve Bank of St. Louis

Dennis Nahnsen,
Vice President and Manager
Correspondent Banking
Services 712-277-6768.

S io u x C ity Io w a 5 1 1 0 1

7 1 2 -2 7 7 -6 7 6 8

M E M B E R E D. I. C.

1984 SNB

Northwestern Banker, October, 1984


Io w a N e w s

Construction Begins in Jefferson

ARCHITECT’S drawing of soon-to-be-constructed Security National Bank in Jefferson.



If your microcomputer is gathering dust in the corner of the bank,
it’s probably not the computer’s fault. Most likely you just don’t have
the right software. Or maybe you purchased software through the
mail and aren’t sure how to use it.
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micro software that fits your needs and level of expertise, and get you
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you on a microcomputer purchase.
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■ Commercial Loan Credit Analysis
■ Safe Deposit System
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319/378-1378, 1221 Park Place N.E., Cedar Rapids, Iowa 52402.



Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis






o n s t r u c t i o n was to b e g i^
last month on a new full-service
bank building for Security National
Bank in Jefferson, according to Ger­
ald Marso, president. Location for
the facility will be on the corner o^
State and Vine Streets.
The Kirk Gross Company of Wa­
terloo, Iowa’s leading specialist in
the design and development of fi­
nancial institutions, is in charge o^
the project and will utilize local
trades where possible.
Colonial in design, the 8,352
square foot building will use “ Jef­
fersonian” elements where it is ai#
chitecturally compatible. The bank
building, which will feature full-ser­
vice drive-up, a night deposit sys­
tem, walk-up window and on site
parking, will be uniquely positioned
on the site so as to be seen from all
The main level will have five pri­
vate offices, a large conference
room, four stand up teller window #
and two sit down teller and new ac­
counts stations. A large vault for
safety deposit boxes, customer cou­
pon booth and a large bookkeeping
department with a fireproof bool#
vault is also on the main level. Space
is provided in the large side entrance
for a future ATM.
A separate entrance leading to the
lower level community room is o f#
the side entrance. Space for a future
elevator is also provided. An em­
ployee lounge, storage space and
mechanical equipment room is also
on this level.
Barring unforeseen delays, the
building should be completed in
eight to ten months.


Toy National Elects Director
John Van Dyke, president and
chairman of the Toy National Bank,
Sioux City, has
announced that
Neal W. Westendorf, President
of W estendorf
M anufacturing
C om p a n y
Onawa, has been
elected to the
board of direc­
tors of the bank.
Mr. Westendorf N.W. WESTENDORF
is a graduate of Creighton Univer­
sity, Omaha, Neb., and has done
post graduate work at Iowa State
University, Ames, and Morningside#
College, Sioux City.

Io w a N e w s

^Five Promoted at Merchants
Merchants National Bank, Cedar
Rapids, announced the following
promotions at its August 24 meet­
ing of the board. Promoted to senior
^vice president were: Bill Coppock,
wholesale banking; Jim Struve, re­
tail banking; Bud Loerch, opera­
tions, and Larry Christy, ad­
ministration. Also promoted was
^Dick Salat to vice president and
senior loan officer.



IBIS Golf Outing

PARTICIPANTS in the annual Iowa Bankers Insurance and Services, Inc. golf outing in­
cluded: Larry Gille, v.p., and Gary Livesay, v.p., both with IBIS; Jack Hawkes, v.p., The
Credit Life Insurance Co.; Randy Steig, exec, dir., IBA, and Jim Jensen, v.p., IBIS. The event
was co-sponsored by The Credit Life Insurance Company, Springfield, Ohio, and the
golfers had a choice of playing in either Waterloo or Carroll.

performance to the bank. A retire­
ment party was held for him on Aug­
ust 31.

Retires After 42 Years At
Home State Bank, Jefferson
Maxine Rothfolk, assistant vice
president and executive secretary at

the Home State Bank in Jefferson,
retired August 31 after 42 years of
service with the bank.
Ms. Rothfolk started working for
Home State in 1932 in the bookkeep­
ing department and also worked as a
teller, and secretary in various
areas. An open house was held Aug­
ust 31 in her honor.


In other action, the bank’s whole­
s a l e division was reorganized to in­
clude commercial loans, corporate
banking, investments and market­
ing. The commercial loan depart­
ment, headed by Bill O ’Hara; mort­
g a g e loan department, headed by
Nadine Wax, and international
department, headed by Gretchen
Sealls, will all report to Dick Salat.




A t the same meeting, Bob
O ’Meara was recognized for 23
years of outstanding dedication and

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Michigan Avenue at 8th Street
Chicago, Illinois 60605
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984



M AJOR executive change at
Bankers Trust Company, Des
Moines, was announced last month
by John Ruan, chairman of the bank
and of Ruan Companies, when he ap­
pointed Herman Kilpper, 51, as
president of the Iowa World Trade
Center Corporation. At the same
time, the Bankers Trust board of
directors announced that John
Chrystal, 58, would become presi­
dent and chief executive officer of
the bank, succeeding Mr. Kilpper.



Mr. Chrystal moves to Bankers
Trust from Coon Rapids, where he
has been president of Iowa Savings
Bank since 1960. Mr. Chrystal is
known state-wide among bankers
for his leadership as an ag banker
spokesman, as a former Iowa super­
intendent of banking and as a past
president of the Iowa Bankers Asso­
ciation. He is also a former member
of the State Board of Regents.
Mr. Chrystal is a general partner
of Garst Seed Company, Coon Rap­
ids, has been a director of Bankers
Trust Company and the Des Moines
Register & Tribune Company for
several years, and is a trustee of
Grinnell College.
Mr. Ruan said Mr. Chrystal’s “ ex­
perienced leadership will free Her­
for FRASER Banker, October, 1984
Federal Reserve Bank of St. Louis

Future Growth, appointed by G ov­
ernor Terry Branstad also is study-®
ing the trade center proposal as one
of nine major economic opportuni­
ties for the state.
“ During the past year and a half,^
Herman Kilpper has been instru­
mental in developing our plans for
the Iowa World Trade Center,” Mr.
Ruan said. “ His new position is a
logical extension of that develop-^
ment. He’s done an outstanding jobw
and I look forward to his many con­
tributions in this new role.”
Mr. Kilpper has been president
and chief executive officer of Bank-^
ers Trust since September, 1977.
Before that, he was executive vice
president at Iowa-Des Moines Na­
tional Bank, now Norwest Bank Des
Moines, where he had served sincqg>
1965. Earlier, Mr. Kilpper was a
partner in the Des Moines office of
Peat, Marwick, Mitchell & Co. A na­
tive of Minnesota, he was reared in
Dubuque, la. During his seven-yeai^
tenure as president, deposits at
Bankers Trust grew from $260 mil­
lion to $435 million last year-end.
* * *

man to assume a more active role in
the development of the Iowa World
Trade Center. It’s a good match all
around.” The appointments were ef­
fective October 1.
Mr. Ruan also announced that
shareholders of Bankers Trust took
action to increase the bank’s capital
position by $4,000,000. He said this
move, designed to provide support
for the bank’s program of growth
George F. Milligan, president and
and business development, makes
chief operating officer of Norwest
Bankers Trust one of the strongest
Bank Des Moines, N.A. recently an­
financial institutions in the state.
nounced the following personnel ac^
Mr. Ruan cited Mr. Kilpper’s ap­
pointment as further evidence of his
John Rigler has been named vice
determination to move ahead with
president, financial institutions. He
the trade center project. The corpo­
joined the bank as a management
ration was formed last year to create
trainee in September, 1976, and hel<^
a world trade center to promote
positions in retail banking and cred­
Iowa agricultural and manufactured
it prior to his being named corres­
products and stimulate the state’s
pondent banking officer in 1979. In
economy. Mr. Ruan said Mr. Kilpper
1982 Mr. Rigler joined investment
also will become president of the
services and was named vice presi0
Iowa Export-Import Trading Com­
dent, investment services, in Decem­
pany which arranges trade agree­
ber, 1982.
ments between Iowa companies and
foreign trading partners.
“ W e’re excited about the con­
tinued interest and enthusiasm
shown in the Iowa World Trade Cen­
ter and the benefits it would bring to
our state’s economy,” Mr. Ruan
He noted that a House Appropria­
tions Subcommittee chaired by
Iowa Congressman Neal Smith has
funded a study for the State of Iowa
to examine the world trade center
John Cretzmeyer has been namecP
proposal and other economic issues.
A state legislative interim com­ financial institutions officer. He
mittee is studying economic alterna­ began with the bank in October,
tives to present to the next session 1981, as regional credit trainee.
of the legislature. In addition, the After completing the training p ro^
newly-formed Committee for Iowa’s gram in June, 1983, Mr. Cretzmeyer


Eric Paul
Manager, Investment Dept.

Joan Thompson
Investment Officer

Vern Hoskinson
Vice President

Eric’s background includes seven years
in operations and investment manage ment. His knowledge in securities, asset/
liability management, and investment
planning make him a valuable addition
to the UCB Investment Department.

Joan’s previous experience with a securi­
ties brokerage firm and as a banker is
valuable to your bank’s investment area.
Call on her expertise in government and
municipal bonds and money market

Cal (515) 245-7029

Call (515) 245-7069

Vem’s 26 years with bank operations in­
cludes 23 years experience in operations
at the Federal Reserve. His background
provides UCB’s staff with the knowledge
of data processing equipment, methods
and handling necessary to effectively
assist you in your correspondent needs.
His involvement in the accounting and
check collection functions of the bank
complements his operations background
Call (515) 245-7290

The combination of efficient operations and timely investments is the answer to cutting
expenses and increasing income. At UCB we work to help you achieve both.
3 .’

Federal Reserve Bank of St. Louis




Io w a N e w s

joined special assets where he was
named special loan officer in De­
cember, 1983, and national banking
officer in March, 1984.
* * *
Phillip L. Risley, president of
Brenco Automation Center, Inc. and
Brenton Funds Transfer System,
Inc., has been elected vice president
of Brenton Banks, Inc. Also an­
nounced, Steve Linder has been
named electronic funds transfer
manager for Brenton Funds Trans­
fer System, Inc., the electronic bank­
ing subsidiary of Brenton Banks,
Mr. Linder spent the past six
years with Continental Bank, Chica­
go, in the areas of charge card man­
agement, marketing, automatic tel­
ler machine placement and opera­
* * *
Robert G. Millen, president and
chief executive officer, United Cen­
tral Bank of Des
M oines, N .A .,
has announced
the appointment
o f Steven F.
Justice as com­
mercial loan offi­
cer in the metro­
politan commer­
cial services di­
M r. J u stice
joined United Central Bank from
First American State Bank in Fort
Dodge, where he held the position of
manager, consumer loan division.
Prior to this he worked with Dial Fi­
nancial Corporation, Des Moines.
* * *
UCB Systems, Inc., introduced a
new business computer service at
the Iowa Banker’s Convention held
in September in Des Moines.
William F. Dawdy, president,
said, “ The Media Manager, a high
technology media converter, is our
new computer product that can be
utilized by our customers experienc­
ing computer communications prob­
lems.” Mr. Dawdy continued, “ This
new system solves most computer
information conversion problems
such as converting non-compatible
formats and converting magnetic
tape to floppy disk and floppy disk
to magnetic tape. Multiple copies,
phone line conversions and photo­

Northwestern Banker, October, 1984
Federal Reserve Bank of St. Louis

typesetting capabilities are avail­
able as well.”
Mr. Dawdy also announced that
UCB Systems, Inc. has expanded
the availability of microfiche and
laser printing services to include
pick-up and delivery.
* * *
Insurance Group of Des Moines,
Ltd., an affiliate of the Brenton or­
ganization, has been formed, and
will offer full-service commercial and
personal insurance products.
Dennis L. Demong, president and
agent of the newly formed group,
most recently was owner and agent
of a property and casualty agency in
Clinton, where he has been the past
11 years.
Mary Mackinnon-Dunbar, vice
president life services, is responsible
for creating marketing opportuni­
ties for insurance and financial plan­
ning services. Prior to joining the
firm, she was an insurance associate
with United Central Bank.
Denise R. Warne, life insurance
specialist, has six years of previous
insurance experience, including mar­
keting and sales, employee benefit
counseling and estate and financial

State Street in Jefferson and retail^
the Scranton location as a branch.
Also approved was the applica­
tion by Northeast Iowa National
Bank, Fredricksburg, to relocate its
main office to 2nd & Carpenter i ^
Sumner, and retain its Fredricks­
burg location as a branch.

BICS A.V.P. Appointed
To Study Committee


Sally Eggleston, assistant vice
president, management develop­
ment and com­
munications specialist
Banks of Iowa
Computer Ser­
vices, Inc. in
Cedar Rapids,
has been a p ­
pointed by Gov­
ernor Terry S.
Branstad to the
nine-m em ber
Governor’s State Communication#
Study Committee.
The purpose of the commission is
strategies to the Governor for plan­
ning, controlling and managing coml®
munications processing within state
government as recommended in the
“ 1984 Condition of the State Mes­
sage Program Plan.” The task forc£
Northwest Iowa Group of
will meet twice a month at the Stat
NABW Elects Officers
Capital from August through Febru­
At a recent meeting of the North­ ary, 1985.
west Iowa Group of the National
Ames Purchase Announced
Association of Bank Women held at
Larry Wenzl and Richard
the Hilton Inn, Sioux City, new offi­
both of Des Moines, have
cers were installed by Gail Madson,
regional director of NABW. Ms. announced the purchase of Union
Madson is compliance officer of Story Trust and Savings Bank,
First National Bank, Sioux Falls, Ames, from Frank Farrar of Sout’
Dakota. Don Holder & Associate
South Dakota.
Chairman for the 1984-85 year assisted in the sale.
Both officers of University Bank
will be Ruth Ann Scott, assistant
Trust, Ames, Mr. Wenzl and Mr.
vice president, Early Savings Bank;
will resign those position
vice chairman is Phyllis Davis, cash­
ier, Citizens Savings Bank Sac City; but retain some ownership.
Mr. Wenzl will serve as chairman,
secretary is Donna Hull, assistant
and chief executive officer
cashier, Commercial State Bank,
Pocohontas; treasurer will be Jayne of Union Story Trust and Savings
Perrett, vice president, Holstein Bank. He formerly was with Hawl
State Bank, and parlimentarian is eye Bancorporation and also has ii
Wilma Weeks, correspondent bank terests in and manages several other
officer, Security National Bank, Illinois and Iowa banks.
Mr. Jacobson is owner of Jacob­
Sioux City.
son Warehouse Company.
William Hurd, who had been serv­
Two Applications Approved ing as CEO of Union Story Trust, is
Security National Bank, Scran­ now vice chairman. Mr. Petra, for­
ton, recently received approval from mer president, has accepted a posi­
the Comptroller of the Currency to tion as president of a bank in Sale
relocate its main office to 116 W. 111.

Io w a N e w s


stenographer pool area and nume­
rous waiting areas are incorporated
on one side of the skylight.
The other side has the teller line,
complete with sit-down stations for
the elderly, a large new accounts and
customer servce area, a board room
and an additional private office.
Storage, expansion space and a
large cash vault are also included. A
public elevator is located adjacent to
the teller line to provide access to
the lower level. Wide stairways pro­
vide additional access between
STRATEGICALLY situated on a diagonal, First National’s new facility is accessible from
The lower level has a trust de­
whree directions.
partment area consisting of two
large offices, a large conference
room and steno and security file
storage. A large safety deposit vault
¿V " he First National Bank of Oel- length of the building and drama­ with three private coupon booths,
I wein recently celebrated the tizes the front entrance as well as the large bookkeeping department,
completion of their new bank build­ the rear entrance immediately employee lounge, utility areas and a
ing. Festivities included an evening across the alley from the municipal large storage area also are included
open house for 225 area bankers and parking lot.
on this level. The public coffee and
£ full day open house for the commu­
A large, open area with a four- snack bar, a long-time tradition with
nity. According to Richard Park, level landscaped terrace and reflec­ the bank, is adjacent to a waiting
president, over 3,700 people toured ting pool exposes the lower level. area and will face a glass wall look­
the uniquely designed building.
Customers can cross part of it on a ing out to the area-way, the fourLocated on the old W ard’s site, suspended walkway to enter the level terrace and the reflecting pool.
irectly north of where the existing front doors. The remaining site is at­
The overall interior color scheme
bank building used to be, the new fa­ tractively landscaped and parking is of medium oak finishes, brick, bur­
cility has created a drastic change available for approximately 8 cars.
gundy and gray colors, combined
on the corner of Frederick and Char­
A well-lighted bag and envelope with the horizontal oak band the
les Streets. Strategically situated on night deposit system is at the front same height as the exterior band,
diagonal so that the unusual en­ entrance for customer convenience.
creates a tasteful and pleasant at­
trance faces southeast, the building
Upon entering the building, the mosphere for customers and employ­
is accessible from three directions.
72’ long glass arched skylight pro­ ees alike.
Constructed of the identical brick vides a dramatic effect and serves as
Kirk Gross Company of Waterloo,
used on the bank’s drive-up across a visual separation of the six-station Iowa’s leading designer and builder
ie street, the building is approxi­ teller line on one side and the of­ of financial facilities, was in charge
mately 18’ high on the southwest ficers’ complex on the other side.
of construction and served as con­
side with a 27’ high glass arched
The officers’ complex has four pri­ sultant and interior designer with
skylight in the center and 14’ high vate offices and conference rooms Smiley, Glotter & Assoc, of Minnea­
on the northeast side. The glass and a large open officers’ platform. polis providing the architectural
ched skylight runs the entire A centralized reception station, work.

Over 3,700 Tour New Oelwein Facility

EFT— A four-level landscaped terrace and reflecting pool enhances the lower level. RIGHT—Inside, a 72’ long glass arched skylight proides a dramatic effect.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1984


Io w a N e w s

MEETING at Rabobank headquarters were, from left to right: R. Zijlstra, Chairman Super­
visory Board; P.J. Lardinois, Chairman Executive Board; H. Steensma, General Manager
U.S. and Canada, New York Branch; Edward L. Tubbs, Chairman MASI; C.G.A. Mertens,
Vice Chairman Board of Directors; Walter Minger, MASI consultant, and Dr. F.W.J. Kriellaars, Vice Chairman Supervisory Board.

MASI Officials Visit Rabobank
Ed. Note: Since March, 1982, M ABSCO,
through its subsidiary, M A B S C O Agricul­
tural Services, Inc. (MASI), has offered mem­
ber banks access to world market funds
through an agreement with Rabobank o f Hol­
land that provides an initial pool o f up to $100
million for ag loans. Edward L. Tubbs, chair­
man o f M A S I and chairman of Maquoketa
State Bank, Maquoketa, la., and Walter
Minger, retired senior vice president o f Bank
o f America and M A S I consultant, were in­
vited to visit Rabobank headquarters in
Utrecht, Holland in late August. On that trip
they were accompained by Hugo Steensma,
general manager in the New York branch for
Rabobank in the United States and Canada.
The following is a brief report on that trip
as reported by Mr. Tubbs for N orthwestern
B anker readers.

Chairman, M ASI
Des Moines
HEN we visited Rabobank the
week of August 20-25, one pur­
pose of our conferences was to dis­
cuss the feasibility of a long-term
farm mortgage lending program for
MASI. Details of that farm mort­
gage loan program will be announced
to our membership in late October.
Rabobank has a 50-year loan avail­
able to young farmers to purchase


for FRASERBanker, October, 1984
Federal Reserve Bank of St. Louis

We held an in-depth discussion of
M A SI’s progress and potential. They
needed to see flesh on the bones of
people they were providing with
funds (now over $40 million). It was
time to get acquainted on a personal
basis and this was congenially ac­
Dutch interest in U.S. agriculture
is deep rooted. Holland is the second
largest purchaser of U.S. agricul­
tural products. Rabobank opened its
New York office in April, 1981 for
the purpose of becoming involved in
funding U.S. agricultural opera­
M ASI was looking for a funding
source and Rabo’s knowledge of
agricultural and A A A credit rating
for funds acquisition filled the need.
Hospitality at our meetings was
outstanding. We were driven every­
where by a Rabobank driver. Meet­
ing with senior officers gave us
these insights into Rabobank’ struc­
1. It was organized cooperatively
with 955 local banks with 3,000 ser­
vice locations in Holland.
2. It was created by a German
banker because no credit was avail­
able to Dutch agriculture after

W W II. Everything was d e s tro y e d
and rural savings deposits couldn’t
support their credit needs.
3. We visited a local affiliate bank
and one of their customers, a dairy
farmer operating much the same a #
good U.S. dairy farmers.
4. Rabobank operates like a hold­
ing company. The central bank pro­
vides computer services, auditing,
etc., except the local units cross#
guarantee each other and must de­
posit up to 22% of their liabilities
with the central bank. Rabobank is
very profitable. Most of its directors
are farmers.
A highlight of the visit was a
close-up look at Dutch agriculture.
Beautiful wheat now grows on land
that was part of the sea 20 years
ago. The concentration of livestock#
particularly dairy cows, probably
exceeds any comparable area in the
U.S. Holland is a very small coun­
try, about the size of West Virginia.
The crops appear to be excellent#
The flower auction at Aalsmeer, the
world’s largest, is spectacular.
Holland, of course, is part of the
European Economic Community.
They have an understandable inte
est in our export policies and poten­
tial, as we do in theirs.
We were privileged to meet with
Mr. P.J. Lardinois, Rabobank’
chairman, who will be the EEC rep
resentative on a three-man commis­
sion (with one each from the U.S.
and Japan) which will attempt to re­
concile trade policies and establis
some mutually agreeable guideline
on subsidizing and other export poli­
Holland is a delightful country,
vitally interested in world cor
merce. The Dutch have always 1
traders. A t the moment, their eco­
nomy is stagnant, which accounts
for their interest in establishing
themselves in the U.S.
Our conversations were useful.
We feel reassured that we have a
reliable secondary market for mid­
west farm operating and intermedi­
ate term loans at the most favorabl
rates possible. We also will soon
nounce the details of a farm mort­
gage loan program (referred to
above). The funds usually will
raised in the U.S. One of M A SI’s ol
jectives is to bring capital
agriculture and to keep the commu­
nity banker viable as an agricultural
lender. W e’re more convinced thai
ever that M ASI can accomplis

ITS, Inc. processed its first trans­
action in February, 1977. During
that month a total of 499 EFT trans­
actions were processed. At that time
there were 32 banks participating in
the Convenient Banking network.
Now, nearly eight years later,
ITS, Inc. has 250 participating fi­
nancial institutions, including two
in Illinois, one in Missouri, five in
Nebraska and three in South Dako­
ta. In addition, there are 683 shared
terminals on the ITS, Inc. network,
including two in Illinois, two in
Missouri, 21 in Nebraska and five in
South Dakota.
Iowa News


“In the Bank” Wins Second Place

Eagle Grove V.P. Retires

URING his 14 years as Governor of Iowa, former Gov. Robert D. Ray (above) never gave
any Iowan “ a bum steer,” and he kept that record intact when he displayed this black
Angus steer, “ In the Bank,” on behalf of the Iowa Bankers Association in the second an­
nual Governor’s Charity Steer Show at the recent Iowa State Fair. “ In the Bank” won se­
cond place for the IBA. The proceeds from the auction of winners were donated to the
Ronald McDonald Houses of Iowa City and Des Moines. This was the first participation in
" e Charity Steer Show for IBA. The association purchased the steer through its Voluntary
g Promotion Fund from Matt Brooks, a 4-H’er from Ft. Dodge.

In August, ITS Tops 1 Million Items
Through Switch; Total Volume 4 Million
OR THE first time in its eightyear history, ITS, Inc., has
recorded more than one million elecronic funds transfer transactions
through the ITS central switch. ITS
Chairman Robert Millen, president
of United Central Bank of Des
Moines, and ITS President Dale
/ooley, reported that during the
month of August ITS switched
1,026,153 transactions.
“Hitting this one million mark,”
Mr. Dooley said, “emphasizes the
cceptance of EFT by the consumer.
Although ITS, Inc., switched over
one million transactions during the
month of August, it is estimated
hat ITS, Inc. sees only one-fourth
f all EFT transactions. The rest are
those handled by data processing
centers associated with the network.
When a data processing center ‘re­
cognizes’ a cardholder, there is no
eed to route the transaction to the
ITS, Inc. switch.” Thus, Mr. Dooley
added, “we estimate that over four
million transactions were performed
'y cardholders of ITS, Inc. partici­
Federal Reserve Bank of St. Louis

ITS, Inc., a subsidiary of the Iowa
Bankers Association, operates in a
mandatory shared environment,
basically as a switch behind, al­
though it does function optionally as
a switch in front. ITS, Inc. provides
regional switching services to
banks, savings and loans and credit
unions in Iowa, Illinois, Missouri,
Nebraska and South Dakota.
Mr. Dooley said ITS total volume
is among the top half dozen systems
in the nation. Based on per capita
usage, Iowa has the highest usage in
the United States, which empha­
sizes the outstanding job done by
Iowa banks and financial institu­
tions in educating their customers
to the convenience of ATM and POS
installations. Pointing to this high
volum e u sage by cu stom ers
throughout the system, Mr. Dooley
added, “What makes ITS so out­
standing in the nation is its low cost.
We have gone from 14 cents cost per
transaction downward and now have
lowered it to 10 cents. So, a rebate of
nearly $300,000 will go out to mem­
ber banks in the next 60 to 90 days.”

Barbara J. Stevenson, vice presi­
dent, Security Savings Bank, Eagle
Grove, retired in August after 28
years of banking.
During her career she has served
with Goldfield State Bank from
1956-July, 1984 and with Security
Savings Bank at its Goldfield Office
from July, 1984-August, 1984.


In dex o f
A d vertisers

A m erican N a tio n a l Bank & Trust, St. P a u l............................39
A m erican T rust & S avings Bank, D u b u q u e ......................... 75
A ris to c ra t Inns, C h ic a g o ...........................................................91
Banclease, O m a h a ......................................................................67
Bankers T rust Com pany, Des M o in e s .................................. 70
B a rclays A m e rica n /B u sin e ss C r e d i t ....................................... 6
Brandt, In c ........................................................................................ 5
Brenton Banks, In c .......................................................................18
C o ntin e n ta l Illin o is N a tio n a l Bank, C h icago ..................... 49
Darien M ic ro s y s te m s , In c ......................................................... 31
Drovers Bank of C h ic a g o .................................................... 32-33
Em ployers M utual C o m p a n ie s ................................................45
F & M M arq uette N a tional Bank, M in n e a p o lis ...................36
Federal Hom e Loan M ortgage C o rp........................................15
F irs t N a tio n a l Bank, C h ic a g o .................................................. 12
F irst N a tio n a l Bank, L in c o ln .................................................... 69
F irst N a tional Bank, M inn e a p o lis ......................................... 43
F irs t N a tional Bank, O m a h a .................................................... 63
F irst N a tional Bank, S ioux C i t y ..............................................73
Gross, Kirk Com pany, W a te rlo o ..............................................79
HBE Bank F a c ilitie s ................................................................. 8-9
In n e r lin e .......................................................................................... 7
Iowa Bankers Insurance & Services, In c ................................81
Iowa H is to ric a l M useum F o u ndation .................................. 87
ITS, In c ............................................................................................ 47
Kooker, E.F. A s s o c ia te s ...........................................................91
Lin co ln B e nefit Life C o m p a n y ................................................68
MBU, In c......................................................................................... 65
M an u fa c tu re rs H anover T r u s t ........................................... 50-51
M erca ntile Trust, St. L o u is ...................................................... 11
M erchants N a tional Bank, Cedar R a p id s ............................2-3
M icrocom , Cedar R a p id s ...........................................................90
N a tional Bank o f C om m erce, L in c o ln .................................. 60
N orth C entral C om panies, St. P a u l.................................. 98-99
N orw est C o rpo ratio n, M in n e a p o lis .....................................100
O ffic e C o ncepts Ltd., W a t e r lo o ............................................. 88
R ifkin C o m p a n y .......................................................................... 23
S e curity N a tio n a l Bank, S ioux C i t y .......................................89
System s Resources C o rpo ratio n .................................... 34-35
United C e ntral Bank, Des M oines ......................................... 93
U nited M issouri Bank of Kansas C i t y ..............................21,77

Northwestern Banker, October, 1984

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Anywhere In The
United States,
Can Give
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North Central

Protection all ways

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In Minnesota call 800-792-1030.
In Iowa, Wise., North and South Dakota 800-328-1612.
All other states 800-328-9117.
Federal Reserve Bank of St. Louis

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Simple, Automated Premium
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