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1 9 8 5 -8 6

Iowa Officers
Are Elected

• Capital directives - new weapons
• Myths about saies incentive programs
Federal Reserve Bank of St. Louis

M eet Dick Retz,
M N B Correspondent Banker.

M eet Dick Retz,

As an M N B Correspondent Banker, D ick brings over 13 years' experience
in agricultural finance counseling, ag lending and farm management to
his work.
As a farmer he understands, first hand, w hat your agricultural
customers are up against and the kind o f financing they need to achieve
their goals.
M N B and its respondent banks are located in some o f the country's
most productive farmland. And because agriculture plays such a vital role
in the economy, w e've developed a special com m itm ent toward
agricultural financing.
So when you have farm customers w h o need to restructure short
term debt into long term, need cash-flow financing, m achinery loans or
cash to purchase additional land, talk to someone w h o knows about
banking and finance. Call D ick Retz at M N B. Dial 319/398-4320 or tollfree, 1-800-332-5991.

Merchants National Bank is i

Cedar Rapids, Iowa 52401
Federal Reserve Bank of St. Louis

Member F.D.I.C


T he R ight I d e a


When we decided to remodel and
expand our building;’ says Rowan C.
McAllister, President of First
National Bank of Barron, Wise.,
wanted it to be distinctive...not
another pretty bank.’



' :ï |
Il ; 1
J |
: HI?
I- '


i S

‘We have always been closely tied to
our community and wanted our
facility to express our own unique
personality to our customers and the
community we serve. It had to be
warm, friendly, inviting, convenient d different.


f z


We talked to a lot of firms, but the
people at Bank Building really
listened. And understood. They
studied us, our needs, our people
and our community. And they came
up with the right ideas.
Our new facility is exactly what we
wanted... efficient, productive,
unique... and successful. We
couldn’t ask for more.”
Let us put our ideas to work for
you. Call Tom Spalding,

1- 800 - 325-9573

Meeting the needs
of the community
you serve . .. by design.

Bank Building
1130 Hampton Avenue
St. Louis, MO 63139
Federal Reserve Bank of St. Louis


Kennedy Named President *
At School of Banking

OCTOBER 1985 • 92nd Year • No. 1465

THE nostalgic elegance of Jackson Square in the New Orleans French Quarter
provides an old world setting for the beauty of St. Louis Cathedral. These and
dozens of other famous sights will be seen by thousands of bankers and spouses
attending the American Bankers Association annual convention in New Orleans
later this month. Program starts on page 19. LOWER RIGHT—1985-86 leaders of
the Iowa Bankers Association are pictured just prior to the start of the annual
convention in Des Moines last month. They are identified on page 51, along with
the start of the Iowa convention report.



ABA convention program

New Orleans will host the annual convention


Capital directives
Business Credit Firm
Names Andy Sail E.V.P.

Attorney Wilber H. Boles examines new weapon for regulators


Magic or Myth?

James L. Hubbard looks at incentive compensation plans



William H. Kennedy, Jr., past
president of the American Bankers^
Association, has
been e le c te d
president of the
Graduate School
of Banking at
the University
of W isconsinMadison and its
Herbert V. Prochnow E d u ca­
tional Founda­ W.H. KENNEDY
Mr. Kennedy succeeds Lee E.
Gunderson who began his three year
term as GSB president in 1982. Mr.
Gunderson currently serves as ncP
tional director, banking industry re­
lations for Arthur Young & Co. in
New York, and also is past president
of the ABA.
Mr. Kennedy, who currently iP
chairman of the board, Worthen
Banking Corporation, Little Rock,
Ark., served for seven years as
chairman of the National Bank oL
Commerce, Pine Bluff, Ark., ancr
prior to that served 13 years as
president and chief executive officer
of NBC.

Bank Promotions
Corporate News
Twin Cities



South Dakota
North Dakota


Iowa Convention
Report, Photos
Des Moines
Index of Advertisers

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

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

Associate Editors
Carla Lukenblll
Diane Nelson

Becky McBurney

No. 1465 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
for FRASERBanker, October, 1985
Federal Reserve Bank of St. Louis

Andrew G. Sail, formerly presP
dent of First Bank Saint Paul, joined
The Churchill Companies in Minnea­
polis as executive vice president a
number of months ago to form an im
dependent commercial finance conP
pany for the firm. The new subsi­
diary, Churchill Business Credit,
Inc., now is in operation and Donald
Matthew has been appointed ite
Mr. Sail said Churchill Business
Credit offers revolving credit loans
secured by accounts receivable, in­
ventories, equipment and real estate
to companies who have been r ?
ferred to CBC by the customer’s
bank. CBC’s share of the loan is
$500,000 to $2,000,000 with the re­
ferring bank usually participating
50% in the loan. Continuing com­
mercial credit relationships are
maintained with referring banks,
Mr. Matthew stated, and CBC han­
dles the business credit loan th|£
same as traditional commercial fi­
nance asset-based lenders do.

new key to
This key can help your
The platform automation
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loan officers in several ways.
thought possible.
It provides access to all on­
It’s part of TSI’s Office
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information. Performs finan­
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ware package designed to
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increase productivity at both
vice. And helps your platform
small and large institutions.
Here’s how: The system
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The on-line teller system
while, helps you
speeds service with immedi­
make accurate
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commercial lending
cuts operational costs by auto­ decisions. And gives
matically preparing receipts
you automated sup­
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teller balancing with an elec­ resource planning
tronic journal feature.
and asset/liability
Federal Reserve Bank of St. Louis

management tasks.
Finally, TSI’s Office Auto­
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For more information, call
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you can never be too
Consider the

Systems, Inc.
A Subsidiary of First Interstate Services Co.

Firm up your plans
for the future.
At HBE, the first step in planning your new building is
planning your future.Before our architects can begin, we
recommend a thorough study of your entire operation.
Our expert team of analysts dig into your departmental
relationships, work flow, volume of transactions and dr*a
processing needs. With these details, we can “plan in”
immediate operational efficiencies.
Yet our analysts go further and spell out the staffing
requirements you’ll face in the years ahead. These findings
enable our architects to design with an eye toward t..e
future and build today the solutions to tomorrow’s needs.
Federal Reserve Bank of St. Louis

After determining this facility’s long-term ex­
pansion needs, HBE developed a plan to join the
existing traditional facility to a contemporary
structure next door. The design provided a new
“one building” look which maximized employee
productivity and customer convenience.

in I


Interior design is an important part
of the planning stage. In the above
project our client’s exquisite antique
furniture was incorporated into
the design.

These two different lobbies were both planned
as a result of HBE walk-in traffic studies. Both were
designed to be spacious enough to handle peak hours.
Similar objectives, but distinctly
different styles.
For more information, return this form to HBE,
11330 Olive Street Road, St. Louis, MO 63141
Get a better build.
or contact Sally Eaton at 1-800-HBE-4677.





Bank Facilities


5 -«
Federal Reserve Bank of St. Louis



America, ABN Bank, from 197^
through 1983, with his office in Chi­
cago. In October, 1983, he was
Bank Promotions
named general manager-interna­
tional directorate, Amsterdam. Mj*
Hielkema has also been a member of
ROMOTIONS and other an­ national directorate for ABN, effec­ the LaSalle National Bank of
nouncements have been made tive February 1, 1986. He will have Chicago board of directors since
by the following banks and holding responsibility for the bank’s interna­ that bank’s affiliation with ABN
tional banking activities, succeeding Bank in August, 1979. Homer ^
Eric O. Langelaar, who will retire Livingston, Jr., president and CEO
of LaSalle National, expressed plea­
Algemene Bank Nederland N.V. from the ABN Bank in February.
Mr. Hielkema has been associated sure at the “significant promotion”
(ABN Bank), Amsterdam: The man­
aging board announced last month with the ABN/LASALLE group in of Mr. Hielkema, and for the depth
that Henjo J. Hielkema was ap­ the United States since 1979. He of experience brought to the co^
pointed chief general manager-inter- was regional manager for North poration by Mr. Langelaar.




. w i t d 01

p 7











if«0' “ „e&s c v> 0'
OftVett tYvOse

B usiness Credit
An affiliate of [-’.Ml B A R C L A Y S
Barclays Bank K ill

for FRASER Banker, October, 1985
Federal Reserve Bank of St. Louis

Continental Illinois Corporation
and Continental Bank, Chicago:
These five new executive vi4!
presidents were announced last
month—Leonard W. Busse, interna­
tional banking; Kenneth K. Chal­
mers, special industries; William M.
Goodyear, corporate and in stitP
tional banking—west; William L.
Gunlicks, investm ent/m erchant
banking, and Michael J. Murray,
corporate and institutional banj^
Mr. Busse, 47, has been head of
international banking since last
April. He joined the bank in 1963,
was elected a senior vice president in
1981 and was named controller ct
the bank and corporation in 1984.
Mr. Chalmers, 55, joined the bank
in 1956, became a senior vice presi­
dent in 1982 and was named head
the special industries department
Mr. Goodyear, 37, has been head
of corporate and institutional bank­
in g -w est since March, 1985. hfe
joined the bank in 1972. He wtra
named manager of the west coast
regional offices in Los Angeles, San
Francisco and Seattle and a senior
vice president in 1984.
Mr. Gunlicks, 43, has been witn
Continental since 1967. He was ap­
pointed a vice president and man­
ager of Continental’s New York
regional office in 1973 and became^
senior vice president in 1981 and
manager of the mining, construction
and utilities division. Last March he
was named to head the investment/
merchant banking department. ^
Mr. Murray, 41, has been head of
the corporate and institutional
b a n k in g —m idw est d e p artm en t
since last March. He joined Conti­
nental in 1969. He was named m a§
ager of the east coast regional oT
fices in New York, Philadelphia,


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at $49.95 each plus tax, shipping and handling.
I understand that by signing for this service I will
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Federal Reserve Bank of St. Louis

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Northwestern Banker, October, 1985


White Plains and New England in
1981 and became a senior vice presi­
dent in 1984 with responsibility for
Chicago/midwest commercial bank­
It was also announced that David
O. Nordby, 45, has left his position
as executive vice president in charge
of the credit policy department at
Mellon Bank, Pittsburgh, to join
Continental, succeeding Garry J.
Scheming as head of Continental’s
FDIC Asset Administration De­
partment. Mr. Scheuring, also an ex­
ecutive vice president, will be re­
sponsible for a portion of the bank’s
corporate and institutional banking
The Exchange National Bank,
Chicago: Expanding its service area
for asset based
lending, The Ex­
change National
has opened a
business devel­
opment office in
K a n sa s C ity ,
Mo., headed by
John Thiessen,
who has joined
the bank as vice
president. Mr.
Thiessen formerly was a senior vice
president with Walter E. Heller &
Walter M. Macur, executive vice
president of The Exchange Na­
tional, said Mr. Theissen will be
working with manufacturers and
wholesalers in Missouri, Iowa, Kan-

sas, Nebraska and Oklahoma.
First Interstate Bancorp, Los
Angeles: Robert G. Riddett, Jr., has
been named president and chief ex­
ecutive officer of the Results Con­
sulting Group, the management con­
sulting subsidiary of the multi-state
banking and financial services com­
pany. He succeeds A. Wayne John­
son, the new president and CEO of
First Interstate Bancard Company,
Simi Valley, Cal.
Mr. Riddett, 33, a co-founder of
the Atlanta-based Results Consult­
ing Group, was the managing princi­
pal of its eastern region.
Northern Trust Company, Chi­
cago: Ardis Krainik, general man­
ager of Lyric Opera of Chicago, has
been elected a director of the holding
company and its principal subsidi­
ary, The Northern Trust Company.
Her election increases the number of
directors from 16 to 17.
Scott A. Moore recently was
named a bond investment officer of
The Northern Trust Company, serv­
ing in the bank sales division of the
bond department. Mr. Moore holds a
B.B.A. degree from Texas Christian
University and joined the bank in
November, 1981.
United Missouri Bank of Kansas
City, N.A.: Malcolm G. Winne,
president of the Lee Company in
Kansas City, has been elected to the
bank’s board of directors.
David D. Miller has been pro­
moted to executive vice president of

Security Pacific Business Credit, a nationwide commercial lender, provides
specialized financing for hundreds of companies in virtually every industry.
Our regional offices are staffed by seasoned professionals who concentrate
on re-financing and leveraged buy-outs in your market, We can structure flexible,
asset-based financing to meet your needs n ow ... and in the future, including:
• Financing from $1 million
• Experience
to $100 million or more
• Financial strength
• Flexibility
• Quick turnaround
• Responsive, personalized service
• Competitive rates
And most importantly, Security Pacific Business Credit is backed by Security
Pacific Corporation, the nation’s seventh largest bank-holding company with
assets in excess of $46 billion.
Put security in your future...the future is now.

Gregory }. Tamborello, Senior Vice President
1301 West 22nd Street, Suite 101
Oak Brook, IL 60521
(312) 986-9323

Carey D. Brunelli, Vice President
230 West Monroe Street, Suite 2300
Chicago, IL 60606
<312) 782-9044

Subsidiary Security Pacific Corporation Assets over $46 billion

for FRASER Banker, October, 1985
Federal Reserve Bank of St. Louis

the bank, as well as elected a direc­
tor of the holding company, United
Missouri Bancshares, Inc. Mr. Mil­
ler has been with the bank since
1965. He has a MA degree in ac^
counting and a law degree from Kan­
sas University.
In the investment banking divi­
sion, Jeffrey P. Goble and Greg Ber­
nard were elected vice president^
and Carol Ging and Sandra J. Smitn
were named assistant vice presi­
Mr. Goble is responsible for port­
folio management. He joined U M I^
in 1981 after affiliation with a Law­
rence, Kan., bank for two years. He
has BA and MA degrees in Business
Administration from the University
of Kansas and also has atte n d e# r
courses in investments.
Mr. Bernard has primary respon­
sibility for calling on Oklahoma
banks regarding investments. He
joined the bank in 1982 after p rP
vious employment with a local ac­
counting firm. He holds his account­
ing degree from the University of
Kansas and has completed th
School of Bank Investments at t Ï»
University of Oklahoma.
Ms. Ging joined the bank in 1971
after attending Southwestern State
University in Weatherford, Okla~
and Arizona State University. She ™
responsible for trading Fed Funds
and repurchase agreements.
Ms. Smith joined the bank in 1967
after attending Northwestern Mi
souri State University. She is r
sponsible for trading in government
and agency securities.
Matthew G. Robinson, an em­
ployee of the bank since 1982, waj|
promoted to assistant vice president
in the metropolitan business devel­
opment division. He holds a bache­
lor’s degree in finance from the Uni­
versity of Kansas.
Also in the investment division;
Joyce E. Chaney has been elected an
underwriting officer where she is pri­
marily responsible for bidding on
municipal bond sales.
In the trust department of United
Missouri Bank, R. Stephen Parris
has been promoted to trust counsel
with responsibility for reviewing
trust documents and providing le g ^
support for the department. He
joined the bank after previous exper­
ience with a Kansas City law firm.
He has a BA degree from Southwest
Baptist University and a law degrqj|
from the University of MissouriKansas City.

Friends, Romans, countrymen
lend me your ears.
In today's w orld o f shrinking margins and
earnings pressures, it is essential that banks
play an increasingly active role in managing
their own portfolios.
So when it comes to investing money you
w ant a variety of sound opportunities.
W hich is w hat you get at Chase.
Our Community Banking division was
created to provide a number o f investment
products specifically for community banks
and thrifts.





friends, bankers, countrymen
send me your investments.

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For the day's rates on these investments, call

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Ms. Kama I Smith at 212-552-2524.
Be sure to jo in The Community Banking Team
in our gem of a sweepstakes at the 1985
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Enter tw o drawings to w in FREE diamonds at
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e classics have changed - Call us ^ CHASE
Federal Reserve Bank of St. Louis

APRIL 29, 1985

Federal Reserve Bank of St. Louis

To you, this is a register of America’s
biggest, most successful companies.
To us it’s a customer list.
Because CENTRON® is the business
communications technology used
m by 70% of America’s biggest corporations.
And with good reason.
A building instead of a box.
Many communications systems are
• located right in your office, where you have
to provide them with space, power and
climate control. All of which cost money
CENTRON, on the other hand, is in
a Northwestern Bell central office where
it is closely monitored and maintained 24
hours a day Where backup and
• redundancy features will virtually eliminate
system failure. And where it is continually
• Phone service you can rely on.
When your phones stop ringing, so
does your cash register.
That’s why Northwestern Bell made
CENTRON so reliable that its downtime
can be measured in milliseconds instead
of days. After all, when America’s biggest

companies rely on you, you’d better be
As time passes. CENTRON won’t.
Successful companies must plan
for growth. And since the future is never
totally clear, your communications system
should be totally flexible.
CENTRON can add, delete, expand
or contract features almost instantly.
And as new technologies are
developed, they are added to the system
automatically Which tends to make
obsolescence obsolete. In fact, if your first
office communications system was
a CENTRON, you wouldn't be looking for
a second one now
Even if your company isn’t in the
FORTUNE 500-yet-you should find out
about CENTRON.
So just call your Northwestern Bell
representative today
Or check
our references.
America’s most relied-on business
communications system.

Northwestern Bell
Federal Reserve Bank of St. Louis

©1985 Northwestern Bell Telephone Co.


LEFT—Greeting registrants was MASI exec. v.p. Jim Potter. RIGHT—Panel participants were, from left: Dean A. Rlsa, MISA cred. off.;
Larry Sidwell, v.p. & MASI acct. exec, of Rabobank; Carol Wormer, MASI corp. secy.; John Schwartz, MASI In. rev. analyst, and Joe Beresford, v.p. & sr. cr. off. of Rabobank Nederland, New York office.

MASI Conducts Ag Lending Sem inar
TOTAL of 76 lending officers
from 58 banks in 12 states at­
tended a special MASI Information
Seminar in Des Moines recently.
MASI (Mabsco Agricultural Ser­
vices, Inc.) is the agricultural subsi­
diary of MABSCO (Mid America
Bank Services Co.), the consortium
of 12 midwestern state bankers as­
sociations. MASI headquarters are
in Des Moines.
Registrants were welcomed to the
one-day seminar by Jim Potter, ex­
ecutive vice president of MASI and
chief operating officer at the Des
Moines headquarters. Mr. Potter in­
troduced a panel of five speakers
who addressed the seminar during
the day. They included:
G.I. “Joe” Beresford, vice presi­
dent and senior credit officer of
Rabobank Nederland in the New
York office; Larry Sidwell, vice
president and MASI account execu­
tive of Rabobank in the New York
office; Dean A. Risa, credit officer of
MABSCO; Carol Wormer, corporate
secretary and administrative officer
of MABSCO, and John Schwartz,
retiring president of the Perry, la.,
PCA who had just joined MABSCO
as a loan review analyst.
Mr. Beresford detailed Rabo­
bank’s interest in U.S. agriculture
and MABSCO. He said “back in the
late 1980’s the first coop was born in
Holland. In 1979 there was an amal­
gamation of all those coop banks to
form Rabobank Nederland, with
headquarters at Amsterdam. The
central bank, Rabobank, is owned
by the 950 coop member banks but
Rabobank is charged with their


Northwestern Banker, October, 1985
Federal Reserve Bank of St. Louis

Mr. Beresford said “Rabobank
understands agriculture and is dedi­
cated to agriculture from its most
senior officer to the lowest staff
member. Rabobank does 90% of the
ag lending in Holland, but this
volume represents only one-third of
its loan portfolio. Another third is in
international and the last third is in
mortgage lending and commercial
Mr. Beresford said the New York
office made its first loan in 1981.
“Our aim is to become as expert in
the agriculture business worldwide
as possible,” he stated. “ Since the
New York office opened, we have
opened a German office in Antwerp,
and the London and Singapore of­
fices are opening now.”
Mr. Risa reviewed the loan cri­
teria in one session for farm and
ranch loans and in a second session
discussed the Participation Notice
and Participation Certificate. His
third part of the meeting described
the MASI audit of originating
Mr. Sidwell reviewed the loan cri­
teria for agribusiness at one point,
and gave the final briefing on Delin­
quent and Defaulted Loans.
Ms. Wormer discussed MASI’s
operating procedures, detailing the
procedure for getting rate quotes
and for communicating with MASI
headquarters personnel.
Mr. Potter discussed MASI’s new
details for handling applications to
MASI under the FmHA Guaranteed
Loan Funding Program.
After a luncheon meeting, regis­
trants were invited to tour the
MASI headquarters offices.

Cleveland Fed Bank
Examiner Joins IBAA
The Independent Bankers Asso­
ciation of America has announced
that Diane M. Casey has joined it#
Washington staff as federal regula­
tory liaison. Ms. Casey will cover all
Federal regulatory issues which re­
late to community banks and will be
responsible for com m unicating
IBAA’s viewpoint on those issues to
the bank regulatory agencies.
Prior to joining IBAA, Ms. Casey
was a senior bank examiner with the
Federal Reserve Bank of Cleveland^
where she specialized in the con­
sumer affairs area. Her participation
in the Ohio savings and loan crisis
resulted in her receiving a presi­
dent’s award from the Federal R
serve Bank of Cleveland.
Ms. Casey is a native of Cleve­
land, Ohio, and a graduate of Miami
University, Oxford, Ohio.

Commerce Bancshares Forms
Home Mortgage Subsidiary
Commerce Bancshares, Inc., Kan­
sas City, Mo., has announced th #
formation of a
wholly owned
subsidiary, Com­
merce Mortgage
Corp., which will
be primarily en­
gaged in the ori­
gination of resi­
dential real es­
tate mortgages.
Services of the
mortgage corpo­
ration will be offered through the
more than 100 plus Commerce loca­
tions throughout Missouri. P atrie#
Lawler has been named president of
the new subsidiary.

benefit plan designed especially for
small to mid-sized businesses.
Rand M cN ally Issues New Directory
A 401(k) is a savings and invest­
ASY communication with the counts are offered for orders over 15 ment plan under which employees
can make before-tax contributions
banking industry has taken a copies.
'giant step forward, with the intro­
Further information can be ob­ through payroll deductions and
duction of The Desktop Bank Direc­ tained by calling Rand McNally’s defer payment of taxes on those con­
tory by Rand McNally and Co., Financial Publishing Division at tributions.
The Norwest Horizon plan, the
Chicago. The newest member of (312) 673-9100, or writing P.O. Box
first in the country to be designed
Rand McNally’s family of financial 7600, Chicago, IL., 60680.
primarily for smaller companies, of­
'reference products is specifically de­
fers commercial clients a total
signed for ease of use by time-pres­ Norwest Offers 401K
employee benefit package, including
sured business executives.
Package to Small Business
plan design, administration, record
Norwest Corporation, Minneapo­ keeping, quality investment options
lis, has introduced Norwest Horizon, and complete employee communica­
a comprehensive 401(k) employee tion materials.


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international banks. “Every domes­
tic banking location, as identified by
our intensive research efforts, is in' eluded in this book,” reports senior
editor Ann Lerner.
Individual bank listings include
such information as full legal title;
charter type; address and phone
number; ABA routing number; cor­
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offices; and a group of key officers
shown with the functions they per­
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Federal Reserve Bank of St. Louis

Any leasing company can keep you from tying up your capital.
Bankers/Plus can keep you from being tied down to unwanted
In fact, we’re probably the most flexible leasing
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M erstm is
Northwestern Banker, October, 1985

Baker Livestock Company, St.<
Joseph, and Larry Ricks, MFA Live­
stock Commission Company, St.

Opens Florida Office

ENJOYING themselves during the annual Market Day At The Yards are co-sponsors of the
event: left, John Karns, chmn., First Stock Yards and Bill Manring, v.p., First Natl., St.
Joseph. Second from right Is keynote speaker, Gall Trifle, exec, v.p., United Stockyards
Corp., St. Paul, with James F. Reynolds, pres. & gnrl. mgr., St. Joseph Stockyards.

29th Annual M arket Day At The Yards
Associate Publisher
Cf I T’S HARD to find a sector in
I agriculture th a t’s doing well.”
This comment by Gail Tritle, execu­
tive vice president, United Stockyards Corporation, St. Paul and key­
note speaker, prefaced the annual
Market Day At The Yards in St.
Joseph, Missouri held last month.
The afternoon conference, co-spon­
sored by First Stock Yards Bank
and First National Bank, St.
Joseph, attracted nearly 250 partici­
The event came at a time when
livestock and grain prices were at
seven year lows and the condition of
rural America was in serious trou­
ble. According to Mr. Tritle, who
coined a phrase from “The Music
Man,” “There’s a trouble right here
in River City.” Mr. Tritle said ex­
cess capacity and poor marketing
have hurt agriculture.

In looking ahead, Mr. Tritle
pointed out three areas that could
affect the future of agriculture: 1.
Efficiency in farming and farm man­
agement. 2. Risk management of
livestock. 3. Structure of agricul­
ture. In addition, Mr. Tritle said
United Stock Yards has a special
program that features paying a
farmer for his labor and the use of
his land while producing livestock.
Under this program, a “super­
visor,” another qualified hog produ­
cer, assists the farmer in maintain­
ing conversion ratios and low death
losses, while maximizing profits.
Mr. Tritle said, “We’re beating the
losses with this program and seeing
a $4-$5 profit per hog.”
An informative panel discussion,
moderated by James F. Reynolds,
president and general manager, St.
Joseph Stock Yards, included com­
ments from: Bradford A. Schultz,
operations manager, The Pillsbury
Company; Bill Simmons, Cecil

Gerald “Jerry” Gross, president
of Kirk Gross Company, Waterloo,
announced recently that the com-^
pany has expanded its services to in­
clude Florida. Kirk Gross Company
specializes in design, construction
and remodeling of financial facili­
ties, utilizing the “Turn Key” c o n ^
cept. This incorporates the work o r
architects, office planners, interior
design specialists and builders as
one unit to assure that all phases of
the project are complete, correct an
functional, Mr. Gross stated.
Kirk Gross Company is a leading
turn-key designer and builder of fi­
nancial facilities in the midwest with
over 260 projects. One of its latest#
projects is completion of the NCNB
Facility in Lake City, Fla. The com­
pany’s representative in Florida is
Scott Fetner, Jr., who has an indus­
trial engineering degree from P u r#
due University and has worked in
the construction field for a number
of years. Mr. Fetner is responsible
for marketing and developing finan­
cial facilities throughout Florida,#
with headquarters in Pensacola.

First Bank System Cuts
All South African Credit
First Bank System, Inc., Minnea­
polis, which has a formal policy
against extending credit to the gov­
ernment of South Africa, announce™
recently it also will no longer make
credit available to private borrowers
in that country.

LEFT—Presenting his views on the agricultural situation is speaker, Gall Tritle, exec, v.p., United Stockyards Corp., St. Paul. RIGHT- 0
James F. Reynolds, pres. & gnrl. mgr., St. Joseph Stockyards takes a question for the panel discussion which featured, left, Larry Ricks,
MFA Livestock Commission Co.; Bill Simmons, Cecil Baker Livestock Co., and Bradford A. Schultz, operations mgr., The Pillsbury Co.
Northwestern Banker, October, 1985
Federal Reserve Bank of St. Louis

G olden Knights Drop in on W aterloo

cago, has been promoted to vice
president, it was announced by Ray­
mond M. Cheseldine, executive vice

Incredible’ Buyer Response
To Purchase 28 FBS Banks

A PLEASED Gov. Terry Branstad (center) listens while Jerry Gross visits with his daughter,
Andrea, after she and six fellow Golden Knights parachutists “ dropped in” for a buffet re­
ception at Kirk Gross Co. headquarters in south Waterloo.

HEN Andrea Gross told her
father, Jerry Gross, president
of Kirk Gross Co. in Waterloo, that
she'd drop in on the buffet reception
her father was hosting September
18, she wasn’t kidding. She literally
dropped in!!!
Andrea and six of her fellow mem­
bers of the United States Army Gol­
den Knights parachute demonstra­
tion team scheduled a jump from
their plane at 13,500 feet, then
thrilled a crowd of 500 people as­
sembled at Kirk Gross headquarters
as they joined hands at 200 mph,
separated on signal downward, then

landed precisely on a two-foot
square target 50 feet from the cheer­
ing crowd.
Enjoying the excitement of the
performance along with Andrea’s
parents, Jane and Jerry Gross, was
Iowa Gov. Terry Branstad, who con­
gratulated the Golden Knights on
their precision performance. The
landing field was the open field adja­
cent to Kirk Gross Co.’s five-yearold headquarters building in south
As related in an earlier issue of
the N o r t h w e s t e r n B a n k e r (Jan.
1985, pg. 66), Andrea joined the Ar­
my after one year at the University
of Northern Iowa and has reenlisted
for another three-year term to re­
main in the Golden Knights. She is
stationed with the Golden Knights
at Fort Bragg, N.C. In 1983, Andrea
was one of 100 women among 6,000
paratroopers who parachuted into
Grenada, and was the only woman in
her particular troop of 60 soldiers.
Her skill as a parachutist, and
that of the entire Golden Knights
team was well demonstrated when
she “dropped in for dinner’’ at her
father’s plant!

BMA Promotes Jane Cooney
And comes Andrea!!!
Federal Reserve Bank of St. Louis

Jane Cooney, director of Informa­
tion Services Department of the
Bank Marketing Association, Chi­

Within a short time after First
Bank System announced at its Min­
neapolis headquarters that it plans
to sell 28 of its 78 banks and trust
companies, FBS had received an “in­
credible” number of replies, accord­
ing to Robert Anderson, executive
vice president. As announced by
FBS earlier, the multi-bank holding
company is offering the opportunity
first to the directors, management
and employees at each of the banks
to purchase their respective banks
using First Bank System financing.
By late September, FBS officials
had been notified of definite interest
in buying from directors and staff at
practically all the banks. In addi­
tion, local community interest in
sharing in the stock purchase was
reported extremely high so that the
banks could be returned to local
In addition, FBS reportedly has
been deluged with inquiries and defi­
nite offers from outside buyers inter­
ested in purchasing one or more of
the banks.
First Bank System initially had
set October 1 as the deadline for
local bank directors, officers and em­
ployees to express their wishes.
Because many of them are pursuing
the offer to buy in a formal way, ex­
tensions of two to three weeks have
been requested in many cases.
When the announcement was
made initially to sell the banks, FBS
President D.H. (Pete) Ankeny, Jr.,
said the 28 banks in four states of
Minnesota, Montana, North Dakota
and South Dakota account for only
eight percent of FBS’ total assets of
$22 billion at year-end 1984. He said
FBS directors took this revolu­
tionary step to allow the firm to re­
structure its banking assets since
“it is vital that we concentrate on
those activities and markets where
we, as a multistate banking system,
have a distinct competitive advan­
tage and where we can bring real
added value to our customers. (This)
announcement is consistent with
our long-range strategy to be one of
the premier regional bank holding
companies in America.”
Northwestern Banker, October, 1985

Top management at United Missouri
Bank takes banking conventions seriously.
It is an excellent opportunity to exchange
information and viewpoints.

All of us will be at the convention
with two purposes in mind: to listen and
learn what services you need from us and
to talk business with you. See you there.

Crosby Kemper

Mick Aslin

Lyle Wells

Pete Genovese

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

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
Bancshares, Inc.

Larry Russell

Phil Straight

Dick Brooks

Matt Grzybinski

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 St. Louis, n.a.


Members FDIC

United we grow.Together.
Federal Reserve Bank of St. Louis

Kansas City

St. Louis

10th & Grand • P.O. Box 226
Kansas City, Missouri 64141

312 North 8th Street* P.O. Box 1126
St. Louis, Missouri 63188





Council Chmn.

Exec. V.P.

New Orleans Hosts ABA, Oct. 19-23
® i i A MERICA’S Bankers: Meeting the ChaUengesr \ Making the Changes,” will be the theme of the
1985 ABA Convention, October 19-23, in New Orleans.
The convention’s primary goal—to help bankers better
^ understand the present and prepare for the fu tu re will be accomplished by providing an invaluable oppor­
tunity to learn—not only from the speakers but also
from peers, correspondent bankers, regulators and ex­

workshops. Other anticipated topics include home
equity credit, selecting the right software, purchasing
bank branches, asset/liability management and agri­
cultural finance.
Certain to be discussed at the convention will be the
prospects for banking legislation. Congress will be
well-represented, beginning with a Louisiana welcome
by U.S. Senator Russell B. Long.


There will also be “Meet the Regulators” sessions
with representatives from the Office, of the Comptrol­
ler of the Currency, the Federal Deposit Insurance Cor­
poration and the Federal Reserve Board. In addition, a
panel of leading economists will provide a comprehen­
sive economic forecast.

Current Events

The impact of current events will be analyzed by
NBC Resident Correspondent John Chancellor, an in­
ternationally known news correspondent with more
than 30 years of experience. Mr. Chancellor has served
• as NBC’s chief White House correspondent and has re­
ported from more than 50 foreign countries.

World Affairs
World Affairs will be addressed by a distinguished
0 panel featuring Jeane Kirkpatrick, former U.S. ambas­

sador to the United Nations, and James Schlesinger,
former U.S. defense secretary and former Central In­
telligence Agency director. Moderating will be Marvin
Kalb, NBC diplomatic correspondent and moderator of
0 “Meet the Press.”

Meet the Regulators

Exhibit Hall
To learn about the newest innovations in banking,
attendees will want to visit the ABA Exhibit Hall—a
shopping center for hardware, software, displays, pre­
miums, marketing services, office supplies and much,
much more. This year’s exhibit area will be twice as
large as last year’s. The exhibits and most other con­
vention activities will be held in the New Orleans Con­
vention Center.

Industry Issues
Industry issues will be examined by ABA President
J.G. Cairns, Jr., president of the Peoples National
Bank of Washington, Seattle, and ABA Executive
• Vice President Donald G. Ogilvie and Federal Reserve
Board Chairman Paul Volcker will offer his assessment
of the banking industry and U.S. economy. More speci­
fic banking topics, such as employee incentive compen-


Federal Reserve Bank of St. Louis


For Your Enjoyment
Featured at the always popular Sunday morning
Fellowship Gathering will be Dr. Lloyd John Ogilvie of
the First Presbyterian Church of Hollywood, Calif.,
and the New Orleans Summer Pops Orchestra.
On Sunday evening, at the ABA reception, there will
be super jazz at the Louisiana Superdome, with na­
tionally acclaimed musicians A1 Hirt and Pete Foun­
tain. Tuesday’s ABA reception will be at the New




Northwestern Banker, October, 1985





Orleans Hilton and Towers.
Also planned this year is an expanded spouses’ pro­
gram that will include celebrities like Art Linkletter
and valuable self-help and how-to sessions on every­
thing from creative communications to cajun cooking.
At the Discovery Village Activity Center, attendees
will be able to view a carnival of New Orleans song and
dance, learn about being a football pro from a New
Orleans Saint or visit a New Orleans-style craft center.
There will be complimentary beauty and fashion con­
sultations, too.
A detailed program schedule follows:
NOCC = New Orleans Convention Center; NOH = New Orleans
Hilton & Towers
Saturday, October 19
8:30 Grand opening ceremony, NOCC
9:00 Exhibits open, NOCC
10:30 Concurrent sessions, NOCC

Mergers & Acquisitions — It’s a Whole New World
Media Relations: Getting Your Point Across
Making the Most Out of Micros
Stonier Graduate School of Banking: Take A New Look

Tax Reform Forum, NOCC
Concurrent sessions, NOCC
1. Daylight Overdrafts — “ Voluntary” Requirements
2. Initiatives in Banking Closely Held Companies
3. Sales Training — A Turn-Key for Improving Perfor­
4. Selecting the Right Software = Savings & High Perfor­
Concurrent sessions, NOCC
1. Expanding Business Opportunities through Product
2. Incentive Compensation Plans for Community Banks
3. Farm Financial Management: A New Type of Customer
4. Motivating Your Employees During Changing Times
Sunday, October 20

Fellowship Gathering, NOCC
10:15 Exhibits open, NOCC
10:30 Government RelationsForum, NOCC
10:30 Concurrent Sessions,
1. Employee Stock Ownership Plans: A Complete Analysis
2. The Director & CEO: Building Effective Relationships
3. Incentive Compensation — New Approaches
ABA Reception, Louisiana Superdome.
Monday, October 21
General Session, NOCC
• Welcome by Sen. Russell Long (D-LA)
• Address by Paul Volcker, chairman, Federal Reserve^
• Address by John Chancellor, NBC resident commenta­

Federal Reserve Bank of St. Louis





• Election of Officers
• Address by J.G. Cairns, Jr., ABA president
Exhibits open, NOCC

Asset-Liability Management Forum, NOCC
Concurrent sessions, NOCC
1. Ensuring Your Bank’s Compliance with the Bank Secre­
cy Act
2. Financial Planning — The New Challenge For Your
3. Effective Use of the Bank Holding Company
4. Product Merchandising: Something for Every Bank
Concurrent sessions, NOCC
1. The Agricultural Credit Crisis: Update & Outlook
2. The Tough Management Questions: When to Buy?
When to Sell?
3. Joint Ventures — Evaluating Your Partner
4. Developing a Bankers Code of Conduct
Tuesday, October 22




• Marvin Kalb, NBC diplomatic correspondent (modera­
Installation of Officers
Exhibits open
Bank Insurance Forum, NOCC
Concurrent sessions, NOCC
1. Bank Stock Lending: Its Future in Doubt?
2. Investment Strategies for Community Banks
3. Meet the Regulators — FDIC
4. Meet the Regulators — Federal Reserve
Concurrent Sessions, NOCC
1. Home Equity Credit: A Second Profit Tool
2. Asset-Liability Management: A Regulator’s Perspective
3. Prescriptions for High Performance
4. Meet the Regulators — Office of the Comptroller of the
ABA Reception, NOH


General Session, NOCC
• Address by ABA Executive Vice President Donald Ogilvie
Panel on world affairs:
• Jeane Kirkpatrick, former U.S. ambassador to the U.N.
• James Schlesinger, former U.S. defense secretary
and former Central Intelligence Agency director
• Hedrick Smith, columnist, New York Times

Northern Trust Sells
Two Loop Properties

Wednesday, October 23

General Session, (location to be announced)
Economic Outlook:
• Beryl Sprinkel, chairman, Council of Economic Advi­
• Additional economist to be announced.

are the Williams Building, at 205
West Monroe Street, and certain
The Northern Trust Company, properties fronting on Madison
Chicago, principal subsidiary of Street and adjacent to the bank’s
Northern Trust Corporation, has an­ headquarters at 50 South LaSalle
nounced an agreement for the sale of Street.
two Loop properties resulting in an
In making the announcement,
after-tax gain of approximately $8 Northern Trust officials stated that
million. Included in the transaction only limited operations are being

conducted at these properties and
that ownership of them is no longer
in keeping with strategic objectives.
They also said that much of the
after-tax gain from the sale may be
offset by an additional third quarter
loan loss provision, resulting in an
increased level of the loan loss re­

Frank Bauder. Jim Carmody.
Kathy Hardy. John Crotty. Max Roy.
Names synonymous with correspondent
banking. More specifically with correspondent
banking at Drovers. Almost 150 years combined

Knowledgeable years... handling Overline
Loans, Capital Requirements, and now such
new services as discount brokerage. So
consider Drovers for your correspondent needs.
You’ll find a continuity of policy. And a
continuity of people. Like Frank. And Jim.
And Kathy. And John. And Max.
Call toll-free 1-800-621-8991.
O f r Ç y In Illinois, 1-800-572-2498.

Drovers Bank ' »
Federal Reserve Bank of St. Louis

47th & Ashland Ave., Chicago, IL 60609 • 1-312-927-7000.

A ~



A Cole-Taylor Bank


Capital Directives
. . . new weapon for bank regulators
McDermott, Will & Emery Law Firm
Chicago, 111.
IX BILLION dollars in capital will need to be added
to the banking system, according to the Federal
Deposit Insurance Corporation, in order to meet the
new capital standards adopted by the FDIC and the
Comptroller of the Currency in March of this year.
This is in addition to over $2.5 billion in capital added
since higher capital levels were proposed in 1984.
Bank regulators will be using a powerful new wea­
pon to compel such capital increases: the “capital di­
rective” procedure. Using this procedure, the FDIC
and OCC can order a bank to increase its capital with­
out the administrative hearing and court review pro­
tections available in other regulatory actions against
Directive Is Painfully Simple
The new capital directive procedure is painfully sim­
ple, with differences only in details between the FDIC
and OCC regulations issued in March. If a bank is oper­
ating with less capital than the minimum capital re­
quired by the new FDIC and OCC regulations (essen­
tially 5.5% primary capital and six percent total capi­
tal as defined in the regulations), then the FDIC can
send a state nonmember bank a “directive” requiring
the bank to meet the minimum capital requirement
within a specified time. The OCC regulation says its di­
rectives may be issued to national banks which do not
maintain capital “at or above the minimum ratios.”
Agency press releases are ambiguous on whether
both agencies will attempt to use capital directives to
impose higher capital requirements on banks with
operating problems. The only advance warning of a di­
rective wifi be written notice of the decision to issue a
directive, which will include the proposed capital in­
crease and proposed deadline for achieving the capital
increase. The bank may file a written response (within
14 days to the FDIC or 30 days to the OCC, with
shorter periods in an emergency), after which the agen­
cy can send out the directive as originally proposed or
in a modified form.
The regulations do not provide for any hearing
before the directive is issued; once issued, the directive
is effective immediately, may be enforced in federal
court as if it were a final cease and desist order and
may be the basis for civil money penalties against bank
officers and directors.
How New Weapon Compares to Old
To fully appreciate the power of this new weapon in
the regulatory arsenal, it is useful to compare the capi­
Banker, October, 1985
Federal Reserve Bank of St. Louis

tal directive with other regulatory procedures for
other bank problems. Most bank regulation is accom­
plished by informal persuasion. Where more formal ac- ^
tion appears appropriate, the agencies may use a ®
memorandum of understanding or a written agreement
with the bank. With more severe problems, the agen­
cies will seek a cease and desist order and will press
bank directors to consent to entry of the cease and de- ^
sist order without administrative proceedings.
While many bank boards do consent to a cease and
desist order, the Administrative Procedure Act and
the Financial Institutions Supervisory Act of 1966
provide every bank with many procedural protections ^
if the bank and the regulators cannot agree on terms w
for an order. These protections include a written notice
of charges and an opportunity to answer the notice of
charges, some discovery from the government, a hear­
ing (really a trial with witnesses) before an administra- ^
tive law judge who will make an independent determi­
nation about the agency charges, further written argu­
ments followed by a final decision by the regulatory
agency board and court review of that decision in the
United States Court of Appeals. Those procedures pro- ^
vide both a forum for litigating against the bank regu­
lators and time to conduct the litigation.
Court Loss Prompted New Directive
The new capital directive procedure is a direct result
of such an administrative proceeding lost by the 0
Comptroller. In May of 1983, the Fifth Circuit Court of
Appeals ruled that the First National Bank of Bellaire,
Tex. could not be ordered to meet OCC capital guide­
lines because the agency had not proved that the
bank’s lower capital ratio made it an unsafe or un- 0
sound institution. That court decision, after long and
bitterly contested administrative proceedings, called
into question both the authority of the banking agen­
cies to regulate capital at all and the practical power of
the agencies to police capital if hundreds of problems 0
banks began to exercise their rights in slow and com­
plex administrative hearings and appeals.
Acting with unusual speed in response to the Bel­
laire decision, Congress included a section on bank cap­
ital in the International Lending Supervision Act of •
1983, a statute which primarily addresses the problem
of additional funding for the International Monetary
Fund. However, the capital section of the Act applies
to all banks, not just multi-nationals doing foreign
lending; this section directs the three federal banking •
agencies to cause all banks “to achieve and maintain
adequate capital by establishing minimum levels of
capital,” clarifies that the agencies may declare inade­
quate capital to be an unsafe and unsound practice and
specifically provides for capital directives to individual ®
banks as an alternative to the more complicated ad-

• ministrative proceedings for other unsafe and unsound
The legislative history of the Act makes it clear that
Congress intended to eliminate delays and challenges
to regulatory authority as in the Bellaire case. The Act
® also provides that failure to comply with a capital di­
rective may result in federal court proceedings to force
compliance, civil money penalties of up to $ 1,000 per
day, or the denial of requests for agency approval of
major activities of the bank and its affiliates.
In response to the statute, the OCC and FDIC have
issued formed capital regulations and the Federal Re­
serve Board is moving toward a “guidelines” approach
with similar capital standards. The OCC and FDIC
regulations issued in March and effective in April in® elude the capital directive procedure described above.
The new procedure is likely to see heavy use, as the
agencies are faced with record numbers of problem
banks and seem to have concluded (despite considerable evidence to the contrary) that higher capital ratios
* will help save problem banks.





What Should Bankers Do?
What should bankers do about the new capital direc­
tive procedure?
First, don’t be passive during a bank examination.
The capital directive regulations say that a directive
may be issued in the course of an examination and a
passive posture may invite a tougher directive. Be­
cause write-offs affect capital ratios, excessive writeoffs should be anticipated and resisted through direct
discussions with the examiners by bank officers and
Second, there fire opportunities to negotiate in most
problem banks situations. Avoiding or modifying a
proposed capital directive could depend upon such is­
sues as sale of assets, dividend policy, realistic earn­
ings projections and a serious loan recovery program.
Negotiating the terms of a capital directive could be
crucial, involving such points as realistic time to comply, the effect of describing a capital increase in dollars
or percentage terms, and the details of any plan for in­
creasing capital which the bank may be required to fol­

Chase Offers Investment
Information on Innerline
The Chase Manhatten Bank, N.A.,
New York, is taking an innovative
approach to meeting the needs of its
community banking customers.
Working in conjunction with InnerLine, the American Banker com­
pany that provides on-line news and
information to financial executives
nationwide, Chase has developed its
own vehicle to provide timely infor­
mation on Chase investment instru­
ments and products to community
The service, called ChaseLine,
may be accessed by all InnerLine
subscribers and features Chase’s in­
vestment offerings, information on
its correspondent banking services
Federal Reserve Bank of St. Louis

Disclosure of capital directives is a particularly
troublesome question. Banks with publicly-held securi­
ties have disclosure obligations to the holders of those
securities. When a bank sells securities to raise capital,
agency practice is to require that the securities offer­
ing documents describe the terms of any cease and de­
sist order compelling the bank to raise capital.
The agencies can be expected to insist on the same
disclosure about securities sold to comply with a capi­
tal directive. On May 5, the FDIC adopted a new poli­
cy of public disclosure of all orders in administrative
actions against banks, specifically capital directives.
This new disclosure proposal seems intended to pres­
sure problem banks to improve operations in general
and to increase capital before any formal proceedings.
The disclosure policy effective January 1, 1986 will be
a significant change from the current practice of lim­
ited disclosure.
Questions to Be Asked
There are, of course, many open questions about the
new capital directive procedure.
• Is the procedure constitutional as enacted by Con­
gress and as it will be applied under the new FDIC and
OCC regulations?
• Can the Federal Reserve Board accomplish the
same result with “guidelines” and negotiations?
• Is the capital directive short-cut in conflict with
other statutes on federal administrative procedures or
with state statutes regulating state banks?
• How will federal courts respond to bank attempts
to appeal from capital directives and what standard of
review will the courts use?
• Should the courts reconsider the fairness of the
terms of a capital directive when an agency sues to en­
force a capital directive against a bank or to collect
civil money penalties from individual officers and di­
All of these questions will be answered in time,
many through litigation. Congress has given the bank­
ing agencies a powerful new weapon. The regulations
for using the weapon are in place and the banking
agencies are prepared to use the new capital directive

and trust offerings, information pro­
duct reviews, a weekly economic
news update and a conference and
convention calendar.
The investment instruments de­
scribed on ChaseLine provide a full­
line of investment alternatives to
community banks. They include
effective rates for Guaranteed and
Term Fed Funds, CDs, BAs, Money
Market Funds and Institutional
Money Market Accounts. These of­
ferings are viewed on-line and terms
are included. To complete a transac­
tion the subscriber contacts a Chase
representative via a telephone num­
ber which is also provided. All tran­
sactions are conducted through a
Chase Demand Deposit Account, in­
cluding the automatic crediting of
interest and principal.

A major benefit of providing this
information on-line is the timely and
convenient access to Chase rates it
offers. For example, a community
banker can access InnerLine and
check the opening rate for Guaran­
teed Fed Funds. Chase will guaran­
tee the opening rate for that day un­
til 2:00 p.m., New York time. If a
decision to buy is made, the transac­
tion can be completed with one tele­
phone call.
Information on correspondent
banking services, trust offerings
and information products Chase has
designed specifically for community
banks is also immediately acces­
sible, and includes descriptions of
each service or product, as well as
the Chase contact’s name and tele­
phone number.
Northwestern Banker, October, 1985


Incentive S a les
C om pensation:



Hubbard & Associates, Inc.
Chicago, Illinois
. . . reprinted by permission from The Quarterly Consultant, Spring,
1985, Hubbard & Associates, Inc.

We should n o t need to p a y ex- •
tra for our em ployees to sell.
I t's p a rt o f their job.
In reality, many public contact employees are not
performing as though sales is part of their job. Our ex­
perience is that most banks are obtaining minimum^
sales results unless they are aggressively managing
sales from the top down. Sales rise dramatically during
a concerted sales effort. If you incent for sales perfor­
mance above what you are paying now, you will be pay-^
ing for performance you are not now realizing. That is
the concept of incentive compensation.

DISCUSSION of incentive compensation for bank
sales personnel probably evokes more emotion
within executives’ suites than most subjects. There are
strong and divided opinions ranging from “Why pay
for what is already their job!” to “ I t’s like magic in
motivating people.”
Let’s look at some of the common myths that often
cloud the reed issues.
In cen tive com pensation for
salespeople is prim arily a
short-term program o f earning
m erchandise and free trips for
bringing in new customers.
On the contrary, an incentive compensation pro­
gram is a long-term system of paying individuals more
directly in relation to their sales results. Through in­
centive compensation, banks can achieve several bene­
fits such as:
• improved profits because more of the right pro­
ducts are sold.
• lower cost of sales improving profit margins.
• improved communications between manage­
ment and sales staff with more discussion of
corporate goals and strategies.
• more talented personnel are attracted and re­
tained. Justly rewarded, they are more moti­
vated to continue stretching themselves to their
fullest potential.
Banker, October, 1985
Federal Reserve Bank of St. Louis

E m ployees will earn more than
they deserve.
Not if you structure the incentive correctly. Desigi#
the incentives so you are paying for business you
would not otherwise have, and your bottom line will
In most sales-oriented businesses it is not uncom­
mon for a few top sales people to earn more than m an#
agement. Management should be glad since this good
performance can reflect favorably on corporate earn­
ings for which management should be compensated.

Service to our custom ers will
decline if our em ployees are m -#
cented to sell.
Part of an employee's compensation can be a fixed
amount called base salary. Base salary gives manage­
ment control over such areas as service to customers^
The employee can be evaluated just as before incentiv ®
compensation was added.


The work environment will be­
come too competitive and too
cut-throat. Team spirit will be

Discontent among non-sales
employees will result. They
will want incentive pay for do­
ing their job.
Non-sales employees do not take the risks of how
much incentive pay they will earn. Their base salary
should reflect fair compensation for their total perfor­
mance. If they are strongly attracted to incentive pay
and are willing to accept the risk of a sales position,
they can have the option to apply for one.

A n incentive can cause em­
ployees to compromise in
meeting their customers'
specific needs.
A customer whose needs are not met will not return
again. One hopes that the employee would realize that
a short-term gain can be a long-term loss. Also, incen­
tives can be designed so that employees are encour­
aged to sell what is in the customer’s best interest.

A n incentive program will
chase away employees because
their salary is dependent upon
their sales results.
Of course, poor salespeople don’t like it, while good
salespeople find incentive compensation attractive.
What kind of salespeople does your bank seek?

Team incentives are enough;
individual incentives are not
needed and will create dissen­
sion among the staff.
In most sales programs, a large percentage of
results will come from a small percentage of high sales
achievers. If high achievers are not rewarded for their
individual efforts, they will become frustrated, demoti­
vated and will not perform as well. Then you will not
attain good overall results. Individual incentives are
essential as the foundation of a plan; team incentives
are discretionary.

• United Missouri Banks
Sponsor Coupon Books



United Missouri Banks are once
again sponsoring the promotion of
Gold C Values Coupon books in
Kansas City and St. Louis. The bank
sponsorship is a community service
to help not-for-profit groups raise
money. Last year, more than 85,000
books were sold in Kansas City,
bringing in nearly $255,000 for 650
area groups.
The coupon books contain more
than 400 pages of discounts on merchandise, food, entertainment and
services. Non-profit organizations
sell the books for $7 each and retain
Federal Reserve Bank of St. Louis

Incentive plans can reward for team effort as well as
for individual effort. From our experience, healthy
competition is likely to occur and the work environ­
ment can become more professional with greater
emphasis on professional sales performance.

Incentive compensation alone
is all that is needed to moti­
vate staff.
Incentive compensation is not a “quick fix.” With­
out improving environmental factors that lead to a
more highly motivated staff, you will not obtain last­
ing, long-term sales results.
Management must establish clear expectations for
sales performance and provide adequate sales training
so that the staff knows how to sell and what to sell.
Sales measurement results should be provided to the
salespeople at least monthly, so all know how they are
performing. Line supervisors and managers must work
with individual employees to help them develop their
sales skills through coaching. Above all, recognition
by management of those who are doing well will moti­
vate achievers to continue and poor achievers to im­
□ ABOUT THE AUTHOR—James J. Hubbard received his initial
marketing experience with General Electric Company and Marsteller, Inc., a large, international advertising agency. He held
marketing responsibilities at Harris Trust and Savings Bank in
Chicago and was vice president/director of marketing for the $1
billion Winters National Bank & Trust Company in Dayton, Ohio.
Prior to forming his own firm, Mr. Hubbard was president of Ben
Franklin Savings, Oak Brook, III. After leaving that post he formed
his own firm. He is also chairman of Hubbard/Groupe Facem,
Paris, a joint venture with the leading European bank consulting
firm, that has been a pioneer in the development of electronic
banking programs. Hubbard & Associates’ clients are exclusively
banks and thrifts located throughout North America and Europe.
He is a founding director of the Bank Marketing Association’s
Chicago Chapter and held national BMA posts. Mr. Hubbard is a
graduate of the University of Illinois-Urbana and also a graduate
of the School of Bank Marketing at Northwestern University.

$3.50 per book to raise funds.

Banks Spend Most for
Training Their Employees
A survey released last month by
the American Society for Training
and Development and the American
Bankers Association reveals that
banks spend over $350 million for
employee training each year, which
is almost two-thirds more than the
average of all other industries.
The project, entitled “Training
Am erica’s B ankers,” surveyed
1,000 banks, with assets ranging
from $30 million to over $1 billion.

The 408 usable responses showed
• In the banking industry, each
employee participates in about 15
hours per year of training activities,
compared to a previous ASTD sur­
vey of all American industries which
showed that only one in eight em­
ployees receive training.
• Banks sponsor more than 23
million hours of training each year.
• Current annual spending on
training ranges from $3,000 to
$500,000; with an average of
• Teller training accounts for
almost 40 percent of all non-officer
Northwestern Banker, October, 1985


Freddie Mac, Marine Bank
Finance Housing in Normal
Marine Bank of Springfield and
the Federal Home Loan Mortgage
Corporation (Freddie Mac) have
agreed to a $ 1.6 million deal which
will provide financing for new apart­
ment complexes in Normal.
Financing for the first project,
recently completed and consisting of
39 four bedroom apartments was
provided by Marine Bank to Sanga­
mon Fund VI, a limited partnership.
The other development is comprised
of 14 four bedroom units upon which
Marine Bank provided financing to
Sangamon VII, another limited
Financing for the multifamily
housing was facilitated through a
forward commitment from Freddie
Mac, a publicly chartered corpora­
tion that purchases mortgages from
lenders and sells Mortgage Partici­
pation Certificates (PCs) secured by
pools of conventional mortgage
loans to investors. This prior agree­
ment enabled Marine Bank to lock
into a specified interest rate four
months prior to the actual delivery
of the loans to Freddie Mac. The
deal also allows the bank to take ad­
vantage of any available lower inter­
est rate during the commitment
Steve Hopkins, regional vice
president for Freddie Mac’s North
Central region, said his company
looks forward to arranging similar
transactions with Marine Bank and
other lenders requiring financing for
multifamily housing. He noted that
Freddie Mac recently introduced a
major new mortgage security which
will make available new sources of
funds for rental housing.
Freddie Mac is a publicly char­
tered corporation whose preferred
stock is owned by savings institu­
tions across the nation and whose
purpose is to increase mortgage
money for home loans. Since incep­
Banker, October, 1985
Federal Reserve Bank of St. Louis

president and CEO of the two*
MFG, Illinois’ largest bank hold­
ing company, acquired the two
banks in April 1984. Said MFB
President and CEO William Barnes*
III, “MFG acquired the two banks
as part of our entry into the Rock­
ford market; however, MFG’s over­
all strategy is to purchase major
banks in major downstate Illinois *
markets, and the sale of these two
banks is logical for us and is a fine
opportunity for Mr. Lindmark.”

tion in 1970 through June 30, 1985,
Freddie Mac has purchased $119 bil­
lion in mortgages and sold $108 bil­ V.P. Appointed
lion in mortgage securities.
in Arlington Heights

Pres./CEO Named in Skokie
The Cole-Taylor Financial Group
recently named Scott W. Taylor as
p re sid en t and
CEO of Skokie
Trust & Savings
Bank. Mr. Tay­
lor previously
served as execu­
tive vice presi­
dent of the bank
in charge of its
commercial lend­
ing operations.
Prior to his ca­
reer at Skokie Trust, Mr. Taylor was
vice president of commercial lending
at Drovers Bank of Chicago, another
member of the Cole-Taylor Financial
Skokie Trust & Savings Bank also
recently hosted the Chamber of
Commerce “After Hours Special,”
held at its Dempster Street facility.
One hundred business people at­
tended the two hour meeting, which
featured cocktails, hors d’oeuvres
and several door prizes.

At The Bank & Trust Company of
Arlington Heights, Robert T. Lin-^p
coin has been appointed senior vice
president, commercial banking. Mr.
Lincoln joined the bank in 1979 and
has held the positions of commercial
loan officer, assistant vice president©
and vice president of commercial

Two Rochelle Banks
To Be Purchased
UnibancTrust Company, a whollyRochelle businessman Gary E.
Lindmark has announced plans to owned subsidiary of Unibancorp,
purchase the $31 million-asset Inc., announced Aug. 28 that it has
United Bank of Ogle County and the entered into an Agency Agreement^
$16 million-asset United Bank of with The First National Bank of
Rochelle from Midwest Financial Chicago under which UnibancTrust
Group, Inc. Mr. Lindmark said he will furnish data processing and se­
and a group of investors signed a let­ curities custody services in connec-^
ter of intent August 22 to purchase tion with a segment of First Chi­
the bank for $4.1 million. Subject to cago’s fiduciary accounts for annual
regulatory approval, the transaction fees to UnibancTrust in excess of $2
is expected to be closed by the end of million.
UnibancTrust is required to com-^
the year.
Mr. Lindmark, a certified public mence performance under the Agreed
accountant, said he would become ment no later than January 2, 1986,

Illinois News


® and the Agreement has a five-year
term. The Agreement is not ex­
pected to have material impact upon
1985 results from operations.




William J. Smith has been elected
a director of Unibancorp, Inc. and
f UnibancTrust, bringing the number
of directors on each board to ten.
Mr. Smith is president and chief ex­
ecutive officer of United States Can
Co., Oak Brook.
* * *
Drovers Bank of Chicago hosted
an employee blood drive in support
of the Blood Center of Northern Uli0 nois on Sept. 19. Drovers President
and COO Joseph G. Migely urged
full participation in the drive, which
benefits 28 hospitals in the Chicago
metropolitan area.

• Eagle’s Sit-Down Banking
Proves Successful




Eagle Bancorporation’s original
concept of “sit-down” banking—
considered a national first—has es­
tablished a solid success record as
the Collinsville bank reaches the
mid-point of its second year of
operation. Having surpassed a first
year goal of $5 million in deposits
within months of opening the doors,
the bank now approaches the $10
million mark.
The idea behind “sit-down” banking is that people sitting down to
transact business assume a pose of
cooperation, while a standing posi­
tion implies hurry and even confron­
tation. The Collinsville facility was
built with this in mind. Instead of

William C. Harris, Illinois Commissioner of Banks and Trust Companies, cuts the official
“ money ribbon” at a recent celebration of the newly remodeled Michigan Avenue National
Bank, a member of First Colonial Bankshares. The ribbon, which was made of a string of
five dollar bills, was contributed to the Neediest Kids’ Fund, a local charity. Looking on
(from left to right) are bank president Lawrence W. Nortrup, chairman Patrick L. O’Malley,
First Colonial Bankshares chairman C. Paul Johnson and Illinois Bankers Association
president G. Thomas Andes, president, First National Bank of Belleville.

teller counters, there are contempo­
rary desks with side chairs. State-ofthe-art equipment is built into the
teller’s side of the desk without im­
pinging upon the business surface of
the tabletop.
Rayhill J. Hagist, Eagle Bancorporation chairman and CEO, says,
“Behavior experts tell us that busi­
ness conducted between two people
sitting across from each other has a
far better chance of being coopera­
tive, and hence productive, than two
people conducting business while
standing in line. It gives us an op­
portunity to do a thorough job of
cross selling our various products
and services. But we’ve also found
that our customers, for many and
varied reasons, prefer sit down

THE Eagle bank building that was designed to house an idea: sitdown banking.
Federal Reserve Bank of St. Louis

banking to teller lines and hurried
Eugene Plocher, executive vice
president of Eagle, credits the
bank’s success to the enthusiasm of
the staff. He said, “We chose our
people very carefully. This was an
idea that we believed in and to give
it a thorough test, we needed special
The bank is located at the cross­
roads of a major traffic artery that
connects Illinois and Missouri. The
building contains a lobby with four
sit-down tellers, a work room with
night depository, two conference
rooms and a general office area. Ex­
pansion is already underway to add
1600 sq. ft. of office space above the
drive-through area.

SIT-DOWN banking in the Eagle lobby Implies the bank has time
for the customer.
Northwestern Banker, October, 1985

When Dick Holmes
isn't on the road calling
on bankers, he's on the
M arquette B an k
M inneapolis«.».»
Sixth and Marquette
Minneapolis, MN 55480

'W a t& d o a
Federal Reserve Bank of St. Louis

ond officer of First Bank Bismarck.
Mr. Bue was responsible for the loan
portfolio and assisted in all areas of
general management and bank oper­
ations. Prior to that he served as
senior vice president and second offi­
cer for Norwest Bank, Maple Grove.
In addition, he has served as a com­
mercial loan officer for Northwest­
ern National Bank of Hopkins, and
as a credit analyst for Northwest
Bancorporation, Minneapolis.

Sponsored by MBA











23, Best Western, Marshall; Oct. 24,
The Minnesota Bankers Associa­ K andi E n te rta in m e n t C enter,
tion will present five Managing for Willmar; Oct. 28, Hotel Sofitel,
Productivity and Profits Workshops Bloomington; Oct. 29, Sheraton
throughout the state between Oc­ Park Place, St. Louis Park; Oct. 30,
tober 2-31 in five different locations. Ramada Inn, St. Paul, and Oct. 31,
The program will cover interview­ Hilton Inn, Minneapolis.
ing and selection, goal setting, re­
wards and recognition, impact of job Elected at Exchange Bk.
satisfaction on productivity and
David A. Shern, president of An­
leadership. Registration is at 12:30 chor Bancorp, Inc., has been elected
p.m., followed by the workshop at chairman of the
1:00 p.m.
board of E x ­
The MBA is also sponsoring c h an g e S ta te
Bank Staff Seminars entitled “Pro­ Bank, St. Paul.
fessionalism, Productivity and Pro- Mr. Shern, for­
fits—‘The Ripple Effect/ ” to be mer Minnesota
held at 15 locations throughout the Deputy Commis­
state of Minnesota from October sioner of Com­
1-31. The program is designed for merce in charge
the entire bank staff and will cover of financial insti­
the impact of professional behavior tutions, is also
on productivity, customer satisfac­ chairman of the
tion, career progress and profits. Re­ board of First Bank of Minnesota,
gistration begins at 5:30 p.m. with West St. Paul and an officer and di­
dinner at 6:00 p.m., followed by the rector of First National Bank of
The speaker for both the work­
The bank also announced it’s
shop and the seminars will be Denise plans for a grand opening of the new
Hasbargen, vice president of the Maplewood facility on October 5th.
training division of Financial Shares The office is located at White Bear
Corporation, Chicago. She joined the Avenue and No. St. Paul Road.
firm in 1984, after serving as person­
nel manager of the midwest branch
of CNA Insurance Companies. St. Cloud Ntl. Names Pres.
Previously, she was manager of
Michael A. Bue has been named
'v* training and development at Rock­president, chief execuive officer and
well International. During her ten director of St.
years in the human resource profes­ Cloud National
sion, Ms. Hasbargen has specialized Bank and Trust
in the development of management Co. He brings to
and sales training programs, and the the St. Cloud
design and administration of emplo­ National Bank
yee incentive and preventative labor and Trust Co.
relations programs.
more than 17
The Bank Staff Seminars will be years of experi­
held at the following locations: Oct. ence in the bank­
7, Northland Lodge, Crookston; Oct. ing and financial
8, Holiday Inn, Detroit Lakes; Oct. management in­
9, Arrowwood, Alexandria; Oct. 10, dustries.
Sunwood Inn, St. Cloud; Oct. 21,
Most recently, Mr. Bue was asso­
Kahler Hotel, Rochester; Oct. 22, ciate with First Bank System, serv­
Holiday Inn, North Mankato; Oct. ing as senior vice president and sec-
Federal Reserve Bank of St. Louis

Elected in Duluth
At First Bank Duluth, Frank J.
McCarthy has been elected senior
vice president. Mr. McCarthy, who
has been serving as vice president of
the regional division since 1984, will
continue to have responsibilities in
that area. In his new position he will
also be involved with business devel­
opment at the bank.
President of First Bank Virginia
from 1981 to 1984 and of First Bank
Cloquet from 1973 to 1981, Mr. Mc­
Carthy also served as vice president
and marketing officer in Duluth
from 1969 to 1973.
In a related development, First
Bank Minnesota has announced the
election of Lowell C. Peterson as
vice president and chief operating
officer of its Virginia office.

Promoted in Mankato
Mark R. Lange has been pro­
moted to assistant vice president/
commercial department at Norwest
Bank Mankato. He joined the bank
in 1977 as a teller, moving to dis­
count teller and then was a credit
analyst until becoming a commer­
cial loan officer in 1983.

Named in St. Cloud
The addition of John H. Maiers as
installment loan officer has been an­
nounced by John
L eisen, p re s i­
dent of Zapp Na­
tional Bank, St.
C loud.
M r.
Maiers was pre­
viously associ­
ated with Pru­
d en tial In s u r­
ance Company
of America and
Valley National
Bank, Mankato. Zapp National
Bank is affiliated with Zappco, Inc.,
a St. Cloud bank holding company.
Northwestern Banker, October, 1985

First Bank System, Inc. recently
announced the soon-to-be consoli­
dated trust activities of First Trust
Company of St. Paul and First Bank
Minneapolis will have a new name,
one new St. Paul location and a new
chief executive.
First Trust Company, Inc. has
been selected as the new name for
the consolidated trust company.
Plans to consolidate the two opera­
tions were announced in April of this
In addition to approving the
name change, directors of First
Trust elected John M. Eggemeyer,
III, chairman and CEO and a direc­
tor of the new company. Mr. Egge­
meyer will succeed J. Thomas Simonet who, as previously announced,
will retire on December 31, 1985.
Mr. Eggemeyer, 39, joined First
Bank System in 1985 as executive
vice president and COO of First In­
terstate Bank of Denver.
As a result of the consolidation,
First Trust Company, Inc. will have
assets under management of $8.9
billion, making it the 19th largest
trust operations in the United
First Bank System, Inc. also ap­
pointed Becky Malkerson to the po­
sition of vice president of govern­
ment relations and Kenneth A.
Macke to the board.
Ms. Malkerson has been associ­
ated with First Bank System since
1975 when she joined First Bank
Minneapolis as a market research
associate. In 1976, she joined the
metropolitan marketing department
of First Bank System as marketing
officer and manager of credit pro­
ducts. She was appointed assistant
vice president of corporate relations
in 1978 and has most recently served
as assistant vice president of public
affairs, a position she has held since
Banker, October, 1985
Federal Reserve Bank of St. Louis

Mr. Macke is chairman and CEO
of Dayton Hudson Corporation.
# * *
Bank Shares Incorporated, the
parent company of Marquette Bank
Minneapolis, recently announced it
has acquired Fidelity Bank and
Trust Company of Minneapolis.
Terms of the purchase were not dis­
Fidelity Bank and Trust Com­
pany in Northeast Minneapolis will
become an affiliate bank of Bank
Shares Incorporated called Fidelity
Bank Northeast. Fidelity Bank and
Trust has detached facilities located
in Eden Prairie and Burnsville.
Bank Shares Incorporated is the
third largest bank holding company
in the Ninth Federal Reserve Dis­
trict. It was established in 1940 and
now includes six banks with 13 of­



First Bank System, Inc. has
received approval from the Federal
Reserve Bank of Minneapolis to ac­
quire Rust Insurance Agency, Inc.
in Fargo, N.D. The acquisition is the
company’s 17th since April 1984.
Effective September 1st, the
agency became the new North
Dakota regional headquarters of
FBS Insurance, the company’s in­
surance brokerage subsidiary. The
Rust Insurance Agency will be
known as FBS Insurance—Rust


reached agreement to settle a class
action lawsuit th a t had been
brought by purchasers of single pre­
mium deferred annuities (SPDAs)®
issued by National Investors Life
Insurance Company of America and
University Life Insurance Company
of America, both subsidiaries of
Baldwin-United Corporation. In®
connection with that settlement,
PJH has also agreed with 47 states
to resolve existing and potential dis­
putes related to the sale of BaldwinUnited SPDAs in those states.
The settlement will result in the
payment of approximately $3.9 mil­
lion by PJH for the benefit of its
custom ers who purchased the
SPDAs. The terms of settlem ent#
between PJH and the 47 states re­
quire that state officials discontinue
or terminate any pending proceed­
ings, whether judicial or administra­
tive, against PJH related to Bald-#
win-United SPDAs, and agree not to
institute any such proceedings in
the future.
The settlement is contingent upon
approval of the court where the class#
action lawsuit is pending and certain
other conditions. It is expected that
the hearing on the settlement will
not occur for several months.



William J. Swanstrom and Steven
E. Rykkeli have been promoted to
vice president by First Bank Min­


Piper Jaffray Incorporated, par­
ent company of the Minneapolisbased investment firm of Piper, Jaf­
fray & Hopwood Incorporated
(PJH) recently announced PJH has



Norwest Bank University-Mid­
way, N.A. has elected Gregory J.
Lickteig as assistant vice president
of commercial banking and Annette
K. Bonness as commercial banking
Mr. Lickteig joined Norwest
Bank University in 1985 following
his association with 1st Bank of
Ms. Bonness joined Norwest
Bank University in 1985 after two
years at Norwest Bank Omaha.
* * *
Minnesota News

Minnesota announced the election of
Jeffrey A. Betchwars as assis­
tant vice presi­
dent and head of
its investm ent
trading division.
His primary re­
* * *
sponsibilities in­
clude develop­
Norwest Business Credit, Inc. re­ ment, implemen­
cently announced the promotions of tation and man­
agement of the
Robert C. Sever­
trading services of the bank.
son to vice presi­
Mr. Betchwars has a background
dent of the mar­
in selling tax-exempt and taxable
keting division,
Ronald D. Weis

Mr. Swanstrom, who joined the
bank in 1981 as human resources of­
ficer, had been assistant vice presi­
dent in the human resources group.
Mr. Rykkeli had been assistant
vice president in the regional group
since joining First Bank Minneapo­
lis in 1981.

to v ice presi­
dent, loan ad­
m inistration de­
p a rtm e n t, and


Robert G. Riggs
to vice




Mr. Severson previously served
as senior new business executive in
the marketing department. Before
joining NBCI in 1983, he was a com­
mercial banking officer with Nor­
west Bank Minneapolis and held po­
sitions in several other Norwest affi­
Mr. Weis has served as assistant
vice president since 1978. Before
joining NBCI in 1975, he was a loan
officer for James Talcott, Inc., and
an assistant branch manager for
Commercial Credit Equipment Cor­
Mr. Riggs has served as assistant
vice president in the field examina­
tion department since 1983. His re­
sponsibilities have been expanded
and he presently heads up both the
accounting and field exam depart­
ments. Prior to joining NBCI, Mr.
Riggs was vice president at Drag
Specialties, Inc., and also held posi­
tions in several companies includ­
ing, Peat, Marwick, Mitchell and



The Independent State Bank of
Federal Reserve Bank of St. Louis



Marquette Bank Minneapolis has
recently prom oted Pamela S.
Aakhus to trust
operations of­
ficer, Craig A.
Bishop to invest­
ment officer and
D. Kevin Briggs
a s s is ta n t
trust operations
Ms. Aakhus
has served in a
variety of posi­
tions in the bank’s trust department
since 1981, most recently as trust
tax accountant.

Norwest Bank South St. Paul,
N.A. has recently announced the
promotion of Jeffrey R. Wentzel to
assistant vice president of commer­
cial banking, the promotion of Todd
D. Markman to commercial banking
officer and the election of Douglas
M. Dirks as agricultural loan officer.
Mr. Wentzel is a graduate of the
University of Minnesota where he
received a BA in economics. He join­
ed Norwest Bank South St. Paul in
1981 and most recently served as an
officer in commercial banking.
Mr. Dirks is a graduate of Iowa
State University where he received a
BS in agricultural business. He
joined Norwest Bank South St. Paul
in 1985 following his association
with the Production Credit Associa­
tion of Alexandria.
Mr. Markman is a graduate of
Dartmouth College where he re­
ceived a BA in economics. He joined
Norwest Bank Hastings in 1982 as a
credit analyst and is presently loca­
Mr. Bishop joined the bank in
ted at Norwest Bank South St. Paul
where he is a commercial banking re­ 1982 and has served in the invest­
ment sales department, most recent­
as a trust securities supervisor.
* * *
Mr. Briggs joined the bank in
1979 and has served in trust securi­
Norwest Bank St. Paul, N.A. has ties operations since 1980. His pre­
promoted Robert K. Clements to vious positions included securities
assistant vice president of commer­ clerk, trust securities coordinator
cial banking and James D. Rorvick and trust securities supervisor.
to assistant vice president of private
* * *
Mr. Clements joined Norwest
Marquette Bank Minneapolis has
Bank St. Paul in 1978 and most re­ announced it is currently presenting
cently served as assistant vice presi­ “ Site Specific: Commissioned
dent of commercial banking at Nor­ Works by Minnesota A rtists,” an
west Bank South St. Paul, N.A.
exhibition of paintings, photo­
Mr. Rorvick joined Norwest Bank graphs, models and sculptures docu­
St. Paul, N.A. in 1985 following his menting art works commissioned for
association with 1st Bank of South- public and private sites.
The exhibition was organized by
Northwestern Banker, October, 1985

Minnesota News
Robert Thomson of the Thomson
Gallery in Minneapolis and guestcurated by artists Stuart Nielsen
and Philip Larson. It received wide
critical and public acclaim during its
July-August showing at Thomson
The exhibition will be on view
from 8:00 a.m. to 5:00 p.m. Monday
through Friday, until October 17, in
the Skyway Gallery of Marquette
Bank Minnepolis, Sixth Street and
Marquette Avenue.
* * *

Gary L. Manney has joined the
Cherokee State Bank, St. Paul as as­
sistant cashier
and will be the
assistant man­
a g er a t th e
Grand Avenue
B ra n ch sc h e ­
duled to open
January of 1986.
He w as p r e ­
viously a branch
m anager w ith
ITT Financial
Services and holds a BS degree in
economics from the University of

Promoted in Edina

Added in Fergus Falls

Gail P. Turnbull has been pro­
moted to assis­
tant vice presi­
dent at Ameri­
cana State Bank
of Edina. Her
new responsibili­
ties will be in the
loan service and
credit d e p a rt­
m ents of the
Ms. Turnbull
was formerly the credit officer of the
Americana State Bank.

Charles L. Kretchman, president
of Norwest Bank, has announced
that Jon Dahl
has joined Nor­
west Bank Fer­
gus Falls as agri­
cultural loan of­
ficer. He has
been employed
by MfHA as a
loan officer in
credit at Moor­
head. Prior to
that he held the same position in Lit­
chfield. Mr. Dahl graduated from
the University of Minnesota with a
Bachelor of Science in Agricultural

Elected in Robbinsdale

Gail M. Grewe has been elected
assistant vice president of First
Bank Robbins­
dale, N.A. She
will have respon­
sibilities for the
origination and
ad m in istratio n
of commercial
lo an s. B efore
joining the bank,
Ms. Grewe was
associated with
Norwest Bank
* * *
Hopkins, where she served as a vice
National City Bank of Minneapo­ president for the small business divi­
lis recently announced the addition sion. She joined Norwest St. Paul as
of B ria n K.
a regional credit trainee in 1979, and
Whitemarsh as
in 1981 transferred to Norwest
commercial real
Bank Central, where she held posi­
estate loan offi­
tions of credit department manager
cer. Mr. Whiteand later, commercial lender.
marsh received a
masters degree
MBA Conducts
in urban and re­
gional planning
Commercial Lending School
an d also r e ­
The Minnesota Bankers Associa­
ceived his MBA
tion Commercial Lending School
in real estate in­
completed its third session
vestment analysis-urban land eco­ (CLS)
August 11-16 at St. Olaf College in
nomics for the University of Wiscon­ Northfield. The school is an intense
sin. Mr. Whitemarsh had four years two-week professional program
of real estate brokerage experience which was developed three years ago
in Portage, Wis. prior to joining Na­
to provide specialized instruction in
tional City.
the area of commercial lending. This
* * *
year, CLS officially became a part of
the American Bankers Association
Promoted in Richfield
Professional Development Program.
Each year, only fifty students are
Linda Spekman has been pro­
moted to operation officer at Rich­ accepted into the program and all
field Bank & Trust Co. She is cur­ are required to attend the two onerently manager of the customer ser­ week sessions in successive years in
vice department. She joined the order to receive a certificate of com­
bank in 1979 and has been employed pletion. Between attending the two
in the field of banking operations for sessions, students must complete a
between-year project.
the past 12 years.

Northwestern Banker, October, 1985
Federal Reserve Bank of St. Louis

Elected in Maple Grove
Margaret M. Weber has been
elected a real estate banking officer,
Charles T. Teasley a consumer
banking officer
and Craig H.
McCoy a consu­
mer banking of­
ficer of Norwest
Ba n k
Mapl e
Grove, N.A.
M s. Weber
joined Norwest
Ba n k
Mapl e
Grove in 1976, and held positions in
personal banking, real estate, and
consumer lending She was later
elected consumer lending officer,
serving the 1-494 and Bass Lake
Road office.



Mr. Teasley began his career at
Norwest Bank Silver Bay and joined
Norwest Bank Maple Grove in 1982,
as an installment loan representa­
Mr. McCoy began his career at
Norwest Bank East St. Paul where
he held positions in personal bank­
ing, real estate, and installment
lending. He joined Norwest B an k #
Maple Grove in 1982, as an install­
ment lender/personal banker.

. TwoFirsts make

aforce in correspondent banking.
First Bank Minneapolis and First Bank Saint
Paul Correspondent Banking Departments have
joined forces to become First Bank Correspondent
Banking. We combined all the resources of two
of the largest correspondent banks in the region
to create the 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 of any
correspondent in the Upper Midwest. It means
you can build a solid
banking relationship
with the largest staff
of professional calling
officers in the area.
And it means you can
rely on the resources
of our banking officers
to solve your spe­
cialized, multi-bank
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 we left that side of our
organization unchanged. But, you also needed

more and more advice about the rapidly changing
world of deregulated banking. And so we’re
giving it to you.
First Bank Correspondent Banking officers
have instant access to a ll of the resources and
expertise of First Bank Minneapolis and First Bank
Saint Paul. So you can get the expert banking
advice you need whether it’s in international
banking, consulting services, security sales and
safekeeping, SBA loans, leasing, and much more.
We even have an entire
division that specializes
in financial services
for high-growth, hightechnology industries.
So, when you
need correspondent
banking services, talk
to us. At First Bank
Correspondent Bank­
ing 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
of banking.
At First, good news is all you get.

First Bank

Federal Reserve Bank of St. Louis

First Bank Minneapolis

First Bank Saint Paul

First Bank Place
Minneapolis, MN 55480

332 Minnesota Street
St. Paul, MN 55101

Members FDIC

ment in 1980 and was named an
assistant vice president in 1982.
Mr. Vollendorf joined First Wis­
consin in 1971 as a management
trainee. In 1973, he became manager ^
of the Business Development De­
partment, a position he held for 10
years. In 1974, Mr. Vollendorf was
named a personal banking officer
and in 1978, he became an assistant £
vice president. He has worked in the
commercial loan department since
E. Gilchrist was elected mortgage 1983.
Three Banks Affiliate With
Ms. Gilchrist started managing
officer and K. Richard Olson
Valley Bancorporation
Wisconsin’s entire residential0
was elected to the board.
loan operation in 1985.
Mr. Forster joined First Wiscon­
Two Wisconsin banks have an­
was employed for 10
nounced they will affiliate with Val­ sin in 1973 as a management trainee years with Western Federal Savings
ley Bancorporation by exchanging
and Loan, Eau Claire, most recently
100% of their common stock for ager of the bank’s Sky Park office.
as an assistant vice president.
holding company stock. Gus A. He was promoted to office manager
Zuehlke, chairman and CEO of Val­ and personal banking officer in
ley Bancorporation, announced the 1977. In 1982, he joined the commer­
merger approvals jointly with Arthur cial loan department and was named
W. Hugo, president of Commercial assistant vice president.
Bank of Chilton, and Richard J.
Pariso, president of the Peshtigo
State Bank.
Both transactions await approval
of shareholders and the Federal Re­
serve System.
At June 30, 1985, the Commercial
Bank of Chilton had assets of $36
million and the Peshtigo State Bank
Mr. Olson is vice president of op­
had assets of $26 million.
erations at Professional Education®
Valley Bancorporation had total
Systems Inc., Eau Claire. He is also
assets of $1.41 billion on June 30.
the author of numerous legal publi­
Since that date, Valley completed
cations and articles and is of counsel
the merger with United Banks of management trainee in 1972 and in to the law firm of Misfeldt, Olson
Wisconsin, Inc. which brought total 1974 was assigned to the correspon­ and Stark.
assets to approximately $ 1.8 billion. dent banking and money center de­
Together with recent announce­
ments of the affiliation of First Na­ counting administrator. He was Pres./CEO Named in Oregon
tional Bank of Minocqua and Wood­ named correspondent banking offi­
The board of Valley Bank of Ore­
ruff, Commercial Bank of Chilton, cer in 1976 and promoted to assis­ gon has named William D. Bushner®
and Peshtigo State Bank with Val­ tant vice president in 1981.
president and CEO and a member of
ley, this affiliation will bring total
the board. The bank, which has as­
assets to approximately $1.9 billion.
sets in excess of $37 million, will be
managed by Mr. Bushner and the
In addition, Thomas R. Fisher,
existing officer staff.
president of First National Bank &
Mr. Bushner has been with the
Trust Co. of Beaver Dam, and Mr.
$1.8 billion Valley Bancorporation
Zuehlke announced agreement in
for 13 years, most recently as presi­
principle for affiliation of First Na­
dent of Valley Bank of Casco.
tional with Valley. This would add
an additional $65 million assets to
V.P. Named in Kohler

Changes Told in Eau Claire


Mr. Peterson started his career at
First Wisconsin National Bank, the bank in 1971 as a management
Eau Claire, recently announced the trainee. From 1974 to 1976, he man­
promotion of four officers, election aged the bank’s drive-in office. He
of one officer and the election of one was promoted to personal banking
board member. Named vice presi­ officer in 1977 and transferred to the
dents were Charles W. Forster, Al­ personal banking department at the
lan G. Grosskopf, Richard J. Peter­ Barstow Street office. Mr. Peterson
son and Mark C. Vollendorf. Denise joined the commercial loan depart­

Northwestern Banker, October, 1985
Federal Reserve Bank of St. Louis

Bruce E. Kappeler has been pro­
moted to vice president and general
auditor at First Interstate Corpora-®
tion of Wisconsin. Located at the
First Interstate Center in Kohler, he
is responsible for administration of
the internal audit and compliance
functions for the corporation. Mr.®
Kappeler has served as general audi­
tor for the firm since 1979.

SDBA Holds 1985 Group M eetings

Mr. Olson worked in all depart­
ments of Toy National Bank. After
serving as assistant cashier and
then cashier, he was elected in 1965
as vice president in charge of the
bank’s investment portfolio and the
correspondent bank division. He
was named to the Toy board of direc­
tors in January, 1971, and was
elected president and CEO a year
later on January 18, 1972.
He was active in banking affairs
as president three times of the Sioux
City Bankers Association, held
many offices in AIB, and later was
president of the Iowa Bankers Asso­
ciation in 1979-80.

Named at Parker
Robert Schultz has been named
assistant vice president, agricultural
banking at the Parker branch of Nor­
west Bank South Dakota.
Mr. Schultz has been with the
Stockyards branch in Sioux Falls for
the past 12 years.

Two Elected in Sioux Falls
Jeff Baartman and Russ Hovendick have been elected personal bank­
ing officers at Western Bank in Sioux
Falls. Mr. Baartman joined the bank
in 1976, and Mr. Hovendick in 1984.
Together they have 18 years exper­
HE South Dakota Bankers As­
Dr. Austin gave a presentation ience in installment lending and fi­
sociation held its 1985 Group entitled, “Now That I Have a Bank nancial counseling. They will serve
Meetings last month in five cities: Holding Company, What Do I Do the bank’s clients from the Western
Rapid City, Mobridge, Mitchell, With It?” An update on SDBA In­ Bank West office in Sioux Falls.
Sioux Falls and Watertown. High­ surance Services was presented by
lighting this year’s group meetings Russell G. Hendrix, vice president,
was Dr. Douglas V. Austin, presi­ SDBA Insurance Services, followed
dent, Douglas Austin and Associ­ by a reception and dinner at each
ates, Inc., Toledo, Ohio.

PRESENT at the SDBA Group Meetings were SDBA officers, left: Adm. Vice Pres.—J.I. Milton Schwartz, Pierre; Pres.-Elect—B. Michael Broderick, Jr., pres., American State, Canton;
Pres.—Burdette C. Solum, dist. pres., Norwest Bank of South Dakota, N.A., Watertown, and
# Vice Pres.—Larry Ness, pres., First Dakota Natl., Yankton.


served most recently as executive
vice president at Peoples Bank &
Trust Co. in Waterloo, la., since
Leslie H. Olson was elected presi­ May 1, 1984.
dent and chief executive officer of
Mr. Olson was born in Sioux City,
the Commercial
la., March 13, 1927. He began work­
£ Trust & Savings
ing for the Toy National Bank of
Bank in Mitchell,
Sioux City in January, 1945. He
it was announced
holds the Graduate Certificate from
last month by
the American Institute of Banking
B oyd
K nox,
and was graduated from the Gradu­
q chairman.
ate School of Banking at the Univer­
Mr. Olson has
sity of Wisconsin, Madison, in 1959.
40 years of bank­
Mr. Olson also has completed the In­
ing experience
dependent Bankers Association’s
and will head
M.D.B. Course at Harvard Univer­
• Mitchell’s larg­
sity and is accredited by the Ameri­
est chartered bank with assets of can Bankers Association as a Certi­
more than $111 million. He has fied Commercial Lender.

Commercial T&S, Mitchell,
• Names Les Olson President
Federal Reserve Bank of St. Louis



Two Named In Sioux Falls
Dave Thompson has recently been
named credit officer and Bill Hageman has been named personal bank­
ing officer of Norwest Bank South
Dakota, Sioux Falls.
In 1981, Mr. Thompson started
with Norwest in Huron as a personal
loan representative and in 1983
transferred to Brookings as a comSOUTH DAKOTA NEWS . . .
(Turn to page 70, please)
Northwestern Banker, October, 1985


Jud M cM anigal
V ice President
Correspondent Division
A g Financing S pecialist

FDIC © 1985 FWC
Federal Reserve Bank of St. Louis


Weighing Opportunities. The transformation
underway in agribusiness is a challenge to everyone
involved. Those who will succeed must be able to see
beyond current difficulties—fluctuating costs, volatile
interest rates, unusually severe weather—to the
opportunities: improved financial management, foreign
market potential, better use of technology.
It’s important to realize good ag credit exists now
—and First Wisconsin can help your bank find it.
We have funds available for financing packages or
overlines to accommodate your customers. And our
ag lending expert, Jud McManigal, understands the
issues you face; his 30 years as a banker and farm
owner have taught him how to handle the risks
unique to agribusiness.
For the ag lending expertise your bank needs,
come to First Wisconsin. Give Jud McManigal a call
at 414/765-4143. He’ll help you and your customers
make the most of agribusiness opportunities.

Federal Reserve Bank of St. Louis

the operations department. After ®
holding several varied positions
within the bank, she transferred to
the investment and trust depart­
ment in 1983. Mr. Storhaug joined ^
the bank in the investment and trust
department in 1984.

NDBA Announces Candidates 1985 reporting requirements and
The nominating committee of the
four NDBA groups presented the
following slate of candidates for
group officer positions at the meet­
ings scheduled September 16-19 in
Devils Lake, Williston, Mandan and
Wahpeton consecutively: Northeast
group, president, Terry Zeltinger,
president, Towner County State
Bank, Cando; vice president, Wally
Martz, president, The Goose River
Bank, Mayville; secretary/treasurer,
Peter K. McKenzie, vice president,
Lamb’s Bank of Michigan City;
Northwest group, president, Gerald
Long, president, State Bank of Bot­
tineau; vice president, Gaylen Melgaard, vice president, Farmers State
Bank, Crosby; secretary/treasurer,
R. L. Brandvold, president, Mer­
chants Bank, Rugby; Southwest
group, president, Gary Flaa, presi­
dent, Norwest Bank, Mandan; vice
president, Gertrude Buscher, ex­
ecutive vice president, Bank of
Beulah; secretary/treasurer, Ronald
Braseth, president, First National
Bank, Hettinger; Southeast group,
president, Charles Feeney, presi­
dent, Citizens State Bank, Enderlin;
vice president, Roger Monson, presi­
dent, Citizens State Bank, Finley,
and secretary/treasurer, Tim Stern,
president, Norwest Bank, Fargo.
Additional nominations were to
be accepted from the floor during
the group meetings. The four newlyelected vice presidents and the
Southeast secretary/treasurer will
begin two-year terms on the NDBA
executive council following the 1986

schedules that have been trouble­
some for banks. The fee is $42 per
person for the eight hour program.
It is designed for bank personnel
who prepare call reports, bank data
processing personnel, and external
bank accountants. For additional in­
formation on the program, contact
Barbara Dennis at the FDIC (800624-6253).


Named in Bismarck

Norwest Bank Bismarck, N.A.,
has named Kenneth Roth as assis­
tant vice president.
Mr. Roth joined Norwest Bank in
Two Elected in Bismarck
1977. Prior to joining the bank he
First Bank Bismarck recently an­ worked as an administrative supply
nounced the election of Daryl L. technician with the North Dakota
Tabor as assistant vice president National Guard in Bottineau, N.D. £
and commercial loan officer and
George E. Nygaard as vice-presi­
dent and commercial loan officer.
Appointed to Board in Minot
Glenn Dehlin was recently ap­
pointed to the board of First Ameri- •
can Bank & Trust of Minot.
Mr. Dehlin is manager and a
shareholder in Medical Arts Phar­
macy in Minot and has been a phar­
macist since 1950 when he started ®
with Northwest Pharmacy.


Mr. Tabor has been a commercial
loan officer with First Bank Bis­
marck since 1984 and has held other
finance positions in North Dakota.
Mr. Nygaard was previously em­
ployed with First Bank Huron and
has held other positions with First
Banks in Montana and North Da­

Industrial Commission
Names Officers

The North Dakota Industrial
Commission has named LaDonna
FDIC Plans Seminar
Leingang and Rod Storhaug trust
The FDIC is sponsoring a series officers at the Bank of North Da­
of Call Report Preparation Seminars kota, supervising several state trust
across the country. These seminars, activities. This is the first time in
one of which is scheduled for Fargo the bank’s 66 year history that this
on October 24, are tailored for com­ officer title has been designated. Ms.
munity banks and will cover the Leingang joined the bank in 1976 in

Banker, October, 1985
Federal Reserve Bank of St. Louis


NDBA Advertisements
Return to T.V.


After a brief summer break, the
North Dakota Bankers Association
statewide advertising program is
once again hitting the television air- ^
waves. One new 30-second television w
commercial is now being produced
to add to NDBA’s rotation of mes­
The new announcement will focus ^
on the history of banking in North
Dakota, keying on the continuing
commitment of North Dakota bank­
ers to the state, and their involve­
ment in the state’s growth and pro- ^
The commercial moves through a
series of scenes beginning with early
photos of historic North Dakota and
(Turn to page 70, please)


ing the Cache National Bank, he
served with the Council Grove Pro­
duction Credit Association, Cornbelt Chemical Company and was
previously associated with the
United Bank: of Greeley as assistant
vice president of the commercial
loan department.

Four Promoted in Denver
V.P. Added in Englewood
Ernest G. Chesshir has joined
Centred Bank of Inverness, N.A.,
Englewood, as
executive vice
p re s id e n t. In
this position, he
is in charge of all
lending activi­
ties at the bank.
P r e v io u s ly ,
Mr. Chessir was
senior vice presi­
dent of the First
National Bank
and Trust Company of Enid, Okla.,
where he served as head of the com­
mercial loan department and later of
asset administration. Before coming
to the bank in 1979, Mr. Chesshir
was a national bank examiner for
the comptroller of the currency.

Staff Changes in Denver
Cherry Creek National Bank,
Denver, announced the promotion of
• J. Thomas Hand to executive vice
president and Timothy Webster to
senior vice president of the commer­
cial lending division. Two new offi­
cers and one board member were
® also named at the bank.
John Matthews has joined Cherry
Creek National Bank as vice presi­
dent in the commercial lending divi^ sion.
Patricia A. Cook has been ap­
pointed assistant vice president in
commercial lending with responsi­
bility for executive and personal
£ lending.
Richard A. Gartrell has been
elected to the board of Cherry Creek
National Bank.
Mr. Gartrell is vice president, sec• retary/treasurer of the Bill L. Walt­
ers Companies.

Four Named in Denver

First Colorado Bank & Trust,
Denver, recently named Steven G.
Fobes, executive vice president;
Federal Reserve Bank of St. Louis

Susan J. Lohmar and Dora L. John­
son, assistant vice presidents, and
Jean Weaver, business development
Mr. Fobes was promoted from se­
nior vice president after three
months with First Colorado Bank.
He is responsible for managing the
commercial lending, construction
and real estate departments of the
Mr. Fobes joined First Colorado
Bank & Trust after 12 years with
United Bank of Denver.
Ms. Lohmar has been promoted
from operations manager, and her
responsibilities include managing
the bookkeeping department plus
cash items, central file, loss control
and utility clerks.
Ms. Johnson’s new duties include
the marketing and sales of non­
credit services, product develop­
ment and design, and providing sup­
port to calling officers. She joined
First Colorado Bank & Trust in 1982.

Boulder Bk. Adds One
James I. Collins has joined Colo­
rado National Bank-Boulder as vice
Mr. Collins was most recently
with Colorado National Bank-North­
east. He has 13 years banking exper­
ience, having also been associated
with the Colorado National Bank of
Denver and Saratoga State Bank,
Saratoga, Wyo.

Two Additions in Greeley
Robert N. Hinderaker and James
L. Miles have recently joined Cache
National Bank of Greeley.
Mr. Hinderaker was appointed
vice president in charge of retail
banking and marketing. He was pre­
viously associated with the First
National Bancorporation/First of
Southglenn, First Colorado Bank
and Trust, and Affiliated Bankshares of Colorado.
Mr. Miles was appointed assis­
tant vice president in the commer­
cial loan department. Prior to join­

Colorado National Bank of Den­
ver recently promoted Steve Young
to vice presi­
dent, Kathleen
Curtis to assis­
tant vice presi­
dent, and Conly
G ilb e rt
Maureen Kelly
to officers.
M r. Y oung
has been with
CNB for 24 years
working in vari­
ous positions such as trainee in the
trust department, investment opera­
tions clerk, tax clerk, and tax divi­
sion manager. He currently works as
trust tax division manager in the fi­
nancial services area.
Ms. Curtis, with 15 years bank ex­
perience at CNB. Presently, she
works as manager of the deposit sys­
tem implementation where she con­
verts subsidiary banks to CNB data
processing of deposit systems.

V.P. Added in Ft. Collins
Fae L. Hicks has joined Colorado
National Bank-Fort Collins as vice
president-lending. Ms. Hicks brings
13 years banking experience to her
position, and has managed large
loan portfolios at several area banks.
She received her BS degree in recrea­
tion administration from the Uni­
versity of Wyoming.

Appointed in Englewood
First Interstate Bank of Engle­
wood has appointed Jim Reser as in­
stallment loan officer. Mr. Reser has
three years service with First Inter­
state as a bank collector and loan

Elected to Board
Colorado National Bank-Tech
Center, Denver, recently elected
Larry Romrell to the board.
Mr. Romrell has been executive
vice president/secretary and director
of Western Tele-Communications
Inc., a firm located in the Denver
Technological Center, since 1961.
Northwestern Banker, October, 1985

president of Ronan State Bank; m
David W. Jorgenson, vice president
of First Interstate Bank of Billings;
Paul G. Hoffman, vice president of
First Bank of Miles City, and ^
Thomas J. Wilkins, vice president of
First Bank Western Montana Mis­
R. Timmerman, pres., Butte
.T. Cadby, exec, v.p., Helena

Changes Made at
First Bank Great Falls

sociation of bank loan and credit of­
ficers, has elected its new slate of of­
Daniel P. Murray has been pro­ ficers and board of governors for the
moted to vice president of Village 1985-86 year.
Bank in Great Falls.
The following bankers were voted
Mr. Murray has served as assis­ into office: James L. Purdy, vice
tant vice president and head of the president of First Bank Great Falls,
installment loan department since RMA chapter president; David A.
his arrival in 1982. He transferred to Hansen, vice president of the First
Village Bank from the Bank of Col­ National Bank of Missoula. RMA
umbia Falls, Columbia Falls, Mont., chapter 1st vice president; Roger
an affiliate bank, where he served Bent, vice president of Montana
three years.
Bank of Billings, RMA 2nd vice
Mr. Murray was previously em­ president; Douglas J. Edwards, vice
ployed by First Interstate Bank of president of First Interstate Bank of
Billings and prior to that managed Billings, RMA Secretary-Treasurer.
the Billings branch of ITT Finance. All of these officers also serve as a
board member.
RMA Announces Slate
In addition, the following bankers
The Montana Chapter of Robert were elected to the chapter’s board
Morris Associates, the national as­ of governors. Martin M. Olsson, vice

Promoted in Great Falls


Wayne M. Hirsch has been elected
vice president in the commercial
lending department of First Bank
Great Falls.
Mr. Hirsch joined the agricultural
department at First Bank Miles Ci­
ty in 1976 and subsequently served
as the manager of the commercial
and agricultural divisions.
Michael D. Benton has joined the




I enjoy helping bankers find ways to im prove th e ir
operations. Like in tro d u cin g faster m ethods fo r
clearing funds throu g h Central Bank o f Denver. But
then yo u 'd expect The Better Bankers® to help you
maximize yo u r resources.
Federal Reserve Bank of St. Louis


M any area bankers ro u tin e ly invest throu g h us becaus
w e've consistently m et and even exceeded th e ir
investm ent goals. And that's not all. I can also help yo
find m oney w hen you need it. W e recently participate
w ith a C olorado Springs bank to successfully finance
a three-phase apartm ent com plex.


agri-business department at First
Bank Great Falls and will serve as
an agricultural loan representative.
Ju st prior to joining the bank he was
ithe executive director of the Cas­
cade County Agricultural Stabiliza­
tion and Conservation Service. In


this capacity he administered U.S.
Department of Agriculture pro­
grams in commodity loans, wheat
and feed grain reduction, soil and
water conservation and dairy diver­


H. Kreycik, pres., Douglas
G. Tea, exec, dir., Casper

Added in Glendive
Patti Raisl has joined the staff of
the First National Bank of Glendive
as internal auditor. She was pre­
viously employed by Delwin C.
Nordvedt, CPA and the Comptroller
of the Currency.
the state and national banks is
Mr. Hunt also reported the net
loans to deposits ratio for the 58
state banks is 58.92% and the equi­
ty capital to deposit ratio is 10.08%.
The net loan to deposit ratio for the
58 national banks is 59.25% and the
equity capital to deposit ratio is

and national banks in Wyoming was
recently conducted by Stanley R. Promoted in Sheridan
Randall L. Dancliff has recently Hunt, state examiner. Mr. Hunt re­
The Sheridan National Bank,
been elected president and CEO of ported the total assets of the 58 Sheridan, has promoted Carla J.
First Wyoming Bank, N.A.-Cheyenne. state banks is $1,602,900; the total White to operations officer. Ms.
1 Mr. Dancliff has been with First assets of the 58 national banks is White joined the bank at its opening
Wyoming since 1973, most recently $2,822,489, and the total combined in February 1984 and has worked in
serving as president and CEO of assets of both state and national several positions since that time.
First Wyoming Bank-North Chey­ banks is $4,425,389. The total de­ Prior to that she was employed for
posits of the 58 state banks is ten years at the Bank of Laramie,
$1,422,172; the total deposits of the Laramie, Wyoming, where she held
Abstract Report Conducted
58 national banks is $2,486,263, and several positions in the bank includ­
An abstract report of the state the total combined deposits of both ing assistant auditor.

Elected in Cheyenne

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Federal Reserve Bank of St. Louis

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The Better Bankers
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Municipal &
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From left to right: Dwaln Carlson, Manager;

Jay Callahan, Bill Van Lent, John Walters,
Ray McMahon, Marlene Wagner,

First N a tio n a l Lincoln
A FirsTier Bank

Member. F.D.I.C.

13th & M Streets • P.O. Box 81008
Lincoln, Nebraska 68501
Phone 800-742-7376

Northwestern Banker, October, 1985
Federal Reserve Bank of St. Louis

munications with the director’s of­
fice, as it has in the past.

Bk. Dedicated in Norfolk












The DeLay First National Bank
and Trust Company, Norfolk, cele­
brated its grand opening and dedica­
tion on September 14th. Festivities
included a ribbon cutting ceremony
and tours of the facility.
The family bank was founded by
the late J.J. DeLay in 1930 and now
is headed by his son, Bernard M.
DeLay, chairman and CEO.
The DeLay First National Bank
has been operating for 55 years and
is one of three banks in Norfolk and
one of the ten largest banks in the
state of Nebraska.

Barbee’s appointment, emphasizing
that the new director’s credentials
Gov. Bob Kerrey Appoints
as a CPA and attorney and his back­
New Banking Director
ground with BAI give him strong
James C. Barbee, 35, a native of qualifications for duties as director
Sutton, Nebr., has been appointed of banking. Mr. Adams stressed
by G o v ern o r
that NBA will maintain open comRobert Kerrey
as director of the
N eb raska D e­
Autom ation at Fueling Locations
p a rtm e n t
“Convenience is the major factor
ARMLAND Industries, Inc., a
Banking and Fiin
purchase decisions for
nance. The ap­
operative headquartered in Kansas fuel today,” said Mike McReynolds,
pointment was
City, Mo., and Networks a Nebras­ executive director, Refined Fuels
effective Octo­
ka-based EFT (Electronic Funds Marketing, Farmland. “This system
ber 1.
Transfer) network, have entered into provides both the convenience of
M r. B arbee
an agreement to provide automated multiple payment options and
succeeds Roger
Beverage, who resigned three months fueling locations in 60 communities 24-hour fuel availability. It is a
natural outgrowth from the approxi­
ago to establish his own firm with across Nebraska.
mately 500 card and key lock fuel
offices in Lincoln and Omaha for the
project to use a statewide, totally systems that have been installed by
practice of law.
Mr. Barbee received his B.S. de­ shared electronic funds network. Farmland’s local co-ops since the
gree in accounting from the Univer­ The first installation is scheduled late ’70’s.”
“We chose to start our project in
sity of Nebraska-Lincoln in 1972 for mid-October at the Lexington
and received his law degree from the Cooperative Oil Company, Lexing­ Nebraska because of the progressive
university in 1975. After working ton, Neb. and it will be followed by attitude of the banking community
with the Omaha office of Arthur an installation at the Firth Coopera­ toward the shared network concept
and retail point-of-sale (POS),” said
Anderson & Co., a Chicago-based ac­ tive Company, Firth, Neb.
Networks provides EFT switch­ Everett Osgood, project leader for
counting firm, and then as senior
tax consultant at Touche Ross & Co. ing services for 321 member finan­ automated fuel systems at Farm­
in Lincoln, Mr. Barbee joined the cial organizations in Nebraska. Over land.
“ It is truly exciting for Networks
headquarters staff of Bank Admin­ 420,000 Nebraska debit card holders
istration Institute in Rolling Mea­ will have access to the Farmland to be part of this project. The mem­
dows, 111. He was BA I’s principal re­ fuel delivery terminals. Additional­ bership’s goal has long been to re­
ly, these terminals will accept VISA duce the cost of processing a check
search manager of tax services.
As the new banking director, Mr. and MasterCard credit cards and by converting checks to electronic
Barbee also will assume duties as re­ credit cards issued by the local coop­ transactions. We have seen this goal
materialize through the ATM (auto­
ceiver of Commonwealth Savings erative merchant.
Farmland will provide a manage­ mated teller machine). POS projects
Roger Hirsch, who has been act­ ment information system through a such as this provide benefit to the
ing director of the banking depart- totally integrated data processing merchant and the customer, as well
ment for the past three months, is network to its local retailers in addi­ as the financial community,” said
resuming his former duties as legal tion to the variety of payment op­ John Miller, executive vice presi­
dent of NETS, Inc.
counsel in the banking department. tions.
Farmland’s system will use the
Farmland has operated a “test
Charles Mitchell, who has been
deputy director of the department site’’ in Waverly, Neb., for the past Diebold TABS® 904 Automated
since 1966, resigned September 30 15 months accepting debit cards on­ Fueling Terminal. “This equipment
to join the FDIC liquidation division ly. The resulting success from both was selected because of ease of con­
customer acceptance and increased sumer operation and similarities to
in Omaha.
Mel Adams, president of the Ne- retail sales have indicated to Farm­ ATMs,” said Osgood. “Other consi­
braska Bankers Association and land that the system should be ex­ derations were the software support
chairman of Keith County Bank & panded not only in Nebraska, but and the extensive service network
offered by Diebold.”
Trust Co., Ogallala, endorsed Mr. throughout its 19-state trade area.
Federal Reserve Bank of St. Louis


Northwestern Banker, October, 1985

Alan J. Rausch and Patricia M.
Kelley have been named vice presi­
dent of FirsTier, Inc.
Mr. Rausch is assistant secretary
and assistant treasurer of FirsTier,
a Nebraska-based financial services
company. He joined Omaha Na­
tional Corporation, FirsTier’s pred­
ecessor company, in 1977. He later
served as manager of professional
accounting and was named a second
vice president in 1979.



Ms. Kelley will be responsible for
the personnel functions of all subsi­
diaries of FirsTier. She formerly was
vice president and personnel direc­
tor for First Oklahoma Bancorporation, Inc., an Oklahoma City-based
bank holding company.
* * *
First National Bank of Omaha
has recently added ten new manage­
ment trainees to its staff.
Of the ten, six are 1985 spring
graduates. They are Mike Eash,
Matt Nyberg, and Mary Beth Walla,
graduates of the University of Neb­
raska at Lincoln; Janette Fiedler
and Kirk Yung, Iowa State Univer­
sity graduates, and Tom Rohling, a
graduate of Notre Dame University.
Also joining the bank are Diane
Morrison, a graduate of Georgetown
Banker, October, 1985
Federal Reserve Bank of St. Louis

Norwest Bank Omaha West (then
Center Bank) in 1973 as a part time
teller while attending college. In the
next 12 years he worked as a new ac­
count representative, standard oper­
ating and procedures technical wri­
ter and trainer, retail lender, credit
adjustor and personal banker.
Norwest Bank also announced
that Diane L. Buker is among 1,348
secretaries in the United States and
other countries who earned the Cer­
tified Professional Secretary (CPS)
designation this year.
The CPS rating is achieved by
passing a two-day, six-part examina­
tion administered by Professional
Secretaries International and by
fulfilling five years work experience
and educational requirements.
Ms. Buker has worked for over
University; David Siders, an Okla­
years at Norwest Bank Omaha
homa State University graduate;
Susan Longacre, a graduate of the in the commercial and real estate
University of Nebraska at Lincoln; lending departments.
* * *
and Rick Jankovich, a graduate of
Central Missouri State University’s
Norwest Bank Omaha, N.A. an­
MBA program.
nounced the promotion of Andrew L.
* * *
Pearson and John J. Ramsey to sec­
The Schools of Banking, Inc., ond vice presidents and Louise S.
Omaha, are now being handled by a Waszak to regional training officer.
Mr. Pearson was promoted to sec­
new administrator, Jone Beer, Lin­
coln. Her office is situated in the ond vice president in the sales fi­
NBA Building at 525 South 13th nance d e p a rt­
Street, Lincoln. All records have ment. He began
been transferred to the new adminis­ working at Nor­
B ank
trative staff and any questions re­ w est
garding the 1986 schools or past Omaha West in
schools should be directed to Mrs. the installment
loan department
Beer (402) 474-1555.
in 1975. Prior to
* * *
that he worked
Norwest Capital Management for another bank
and Trust Company of Nebraska re­ and also a fi­
cently announced the nomination of nance company
John M. Bryg and Brock E. Lewis as
investment officers.
Mr. Bryg began working at Nor­
west Bank Omaha in 1957 and then
spent 1958 and 1959 in the U.S. Ar­
my. He returned to the bank in 1960
and has held various positions in the
bank. In 1968 he transferred to the
trust investment department.
Mr. Lewis began working with




for three years. Mr. Pearson was
named assistant vice president a t ^
Norwest Bank Omaha West in 1984.
Mr. Ramsey was promoted to sec­
ond vice president and is manager of
the residential real estate depart­
ment located at 13259 M illard^
He began working at Norwest




Change comes fast in today’s
banking — so fast you need
an anchor of stability and
Meet the anchormen — the
experienced, professional corre­
spondent bankers of First National
Bank of Omaha.
The more things change, the
stronger is their commitment to

dependably and consistently
Call them toll-free — in
meeting all your correspondent
Nebraska 1-800-642-9907; outside
banking needs.
Nebraska, 1-800-228-9533.
And the faster things change, the
faster the anchormen respond —
with the latest financial technology
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Bank of Omaha at their disposal —
one first national center, omaha, nebraska 68102
for you.
member FDIC • 341 -0500

firsl national bank

Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1985


Nebraska News

Nebraska Independent Bankers M eet in Lincoln Nov. 7-8
EMBERS of the Nebraska
Independent Bankers Associa­
tion will meet November 7-8 at the
Voyager Motel convention center in
Lincoln for their annual convention,
according to Mark Buckley, presi­
dent of NIBA and president, First
National Bank, Wilcox.
Other officers serving with Mr.
Buckley during the past year have
been Fred Otten, first vice president
of NIBA and president, Commercial
State Bank, Hoskins; Roy Yaley, se­
cond vice president, and president of
Nebraska State Bank, South Sioux
City; Phil Giltner, secretary, and
president, First National Bank of



Omaha, and Robert C. Fricke,
treasurer, and vice president of
Farmers & Merchants National
Bank, Ashland. Working with them
at state association headquarters in
Lincoln is Kurt Yost, executive
After registration beginning the
Bank in 1984 as regional liaison in
the residential real estate depart­ morning of November 7, the NIBA
ment. Prior to coming to the bank he board of directors will have a lun­
worked for a savings and loan in Des cheon meeting. The afternoon ses­
Moines, la., where he was assistant sion for all registrants will be
secretary, regional loan manager, devoted to a Farmers Home Admini­
stration loan workshop. That even­
branch manager, and appraiser.
Ms. Waszak was promoted to re­ ing there will be a reception and
gional training officer. She began seafood buffet.
On November 8, the convention
working at Center Bank in 1973.

TAKE 5 A N D P R O S P E R ................ A PROVEN 5 STEP SALES
BASIC S U P E R V IS IO N ................... FOR EXPERIENCED A ND
O FFIC ER C A L L ............................... BRING M ORE BUSINESS
TIM E M A N A G E M E N T ................... YOUR TIM E IS IM P O R ­
CREATIVE S E L L IN G ......................N EW APPRO ACH TO



Banker, October, 1985
Federal Reserve Bank of St. Louis

1 Central States Health & Life Co. of Omaha
P.O. Box 34350 • Omaha, NE 68134-0350



starts with an 8:00 a.m. breakfast at
which Rep. Doug Bereuter, U. S.
Congressman from the First Dis­
trict, Utica, will be the speaker. Af­
ter that portion of the program con­
cludes at 10:00 a.m., John Guthery,
president of the Nebraska Bank A t­
torneys Association, will give an ad­
dress until 11:30 a.m. on “ Supreme
Court Rulings and Your Bank.”
The noon luncheon speaker will be
Nebraska Governor Robert Kerrey.
A “Regulatory Update” will be
offered from 2:00 p.m. to 4:00 p.m.,
featuring James Barbee, Nebraska’s
new director of banking, and Charles
Thacker, FDIC regional director,
Kansas City.
During the afternoon business
meeting the new officers for 1985-86
will be elected. The convention will
conclude with the evening banquet,
which will be addressed by B. F.
“Chip” Backlund, president of the
Independent Bankers Association of
America and president, Bank of Bartonville, Peoria, 111.

Addition in Neb. City
Brian L. Johnson has recently
joined the Otoe County National
Bank & Trust Co. in Nebraska City
as assistant vice president.
Mr. Johnson is a graduate of Iowa
State Ag Credit School and will be
primarily working in the ag lending
area. He was formerly assistant vice
president with the Burt Savings
Bank, Burt, Iowa.

Nebraska News



LEFT—Visiting at NBA Ag Conference luncheon were Greg D. Stine, chmn. of the conference and pres., Nebraska State Bank, Ord; Tom
Osborne, head football coach, University of Nebraska, and NBA Pres. Mel Adams, chmn., Adams Banks, Ogallala. RIGHT—D.B. “Woody”
Varner (second from left), chmn. of the UofN Foundation, received the NBA’s annual Award of Merit for his numerous and distinguished
contributions to Nebraska agriculture. Pictured are, from left: NBA Pres. Mel Adams, pres., Adams Banks, Ogallala; Mr. Varner; Dr. Roy
Arnold, luncheon speaker who spoke of Mr. Varner’s contributions, and Rod Vandeberg, pres., 1st Natl., Falls City, who presided at the
noon luncheon.

At NBA A g Credit Conference—

Speakers Discuss Ag Loan M anagem ent,
m Bankruptcy and A lternate Crops
HE CONTINUING severity of
the midwest ag crisis was under­
scored by the serious tone of talks
Hi delivered at the Nebraska Bankers
Association’s 1985 Ag Credit Con­
ference at The Cornhusker in Lin­
coln early last month. For the 186
registered bankers (and 83 spouses),
• the one and one-half day conference
covered loan administration man­
agement, bankruptcies and their
consequences, a legal update and the
new Farm Bill, and a look at alter*• nate crops and markets.
Presiding at the conference was
Greg D. Stine, president of Nebras­
ka State Bank in Ord and chairman
of the NBA lending committee.
The opening address by Marlin D.
Jackson was printed in the Weekly
Newsletter (Sep. 16) under the title,
“Straight-Talking Advice to Bank­
ers.” Mr. Jackson is commissioner
• of the Arkansas State Banking De­
partment, is former president of a
bank in Paragould, Ark., and was a
nationally-known member for sev­
eral years of the ABA Ag Banking
• Division. As noted in his talk printed
earlier, his stress was on good man­
Kirk Jamison, recently appointed as
Nebraska state director of Farmers
® Home Administration displayed a
chart that showed each step in the
Guaranteed Loan Processing stream
and said it generally takes eight
^ weeks, with five weeks projected as
9 the best time if everything goes
smoothly. He said that since many
Federal Reserve Bank of St. Louis

circulars from federal bank examin­
ing agencies now call for the same
information as FmHA requests,
then this should help on bank exami­
nations. “We want current financial
statements,” he stressed, “not ones
three months old, for at the end of
the eight-week processing period
those statements are five months
He said applications may be ex­
pedited by using form 449-12, which
is the application form, “ since the
information you supply is trans­
ferred to this form by our people.”
Because of the complexity of these
loans, he suggested bankers may
wish to run them by the bank attor­
ney. Mr. Jamison closed by saying,
“The outlook for all of us in the in­
dustry is grim. We feel some people
are placing their expectations on us
beyond our ability to fulfill.”
Steve Turner, an Omaha attorney,
discussed “Bankruptcy” and told
the audience, “Bad or weak docu­
mentation will be highlighted in any
litigation or bankruptcy proceeding,
which leads to more expense in legal
fees and loss of collateral value. So,
document properly from the begin­
ning!” He listed these three signifi­
cant problems that continue to oc­
1. Failure to obtain all signatures
—allow no deviations.
2. Lack of legal description for
growing crops, both in the security
agreement and in the financial state­

Failure to lend, or to reach a len­
ding commitment. He cited an Iowa
Supreme Court case in which the
lender agreed orally after applica­
tion was completed to loan the
money, then was told “No” later.
The applicant sued for the $25,000
not loaned and the profits lost. The
bank had to pay $104,000 plus
$80,000 in punitive damages.
Mr. Turner had an extensive 205
page section of material in the hand­
book given to each registrant.
J.B. “Joe” Dresselhaus, a Lincoln
CPA, discussed “ Tax Conse­
quences” of bankruptcy and forced
Bill Brandt, NBA general counsel,
gave his “Legal and Legislative Up­
date,” which included comment on
the Double Jeopardy bill now before
the House and Senate at the instiga­
tion of grain and livestock buyers
who want Congress to give them im­
munity to any bank’s secured lien
position. Mr. Brandt said a “grass
roots letter campaign” by banks and
farm customers to all Senators and
Representatives, especially those on
the ag committees, is needed im­
Dr. James G. Kendrick, Univer­
sity of Nebraska professor of agri­
cultural economics, spoke of the
“ 1985 Farm Bill Impact on Neb­
raska.” He reviewed historical ag
events following World Wars I and
II and the effect of various farm
policies. Based on all that analysis
he stated, “the general policy stra­
tegy of people working on the Farm
Bill is to make us competitive in
world prices. I don’t see that mood
(Turn to page 48, please)
Northwestern Banker, October, 1985

of service to agriculture and Neb­
raska. Dr. Varner is chairman of the
University of Nebraska Foundation,
a post he has held since 1977. He
was presented the NBA’s 1984
Spirit of Agriculture Award by
NBA President Mel Adams, chair­
man of Keith County Bank & Trust
Co., Ogallala. Dr. Varner has a long
list of achievements and leadership
roles to his credit and is a highly
respected figure in the state. He
moved to Lincoln in 1970 as Chan­
cellor at the University of Nebraska
and became president in 1972, the
position he held until 1977.
Marilyn M. Borchardt has been
elected assistant vice president in
First National Lincoln’s Metropoli­
tan Banking Division.
Mrs. Borchardt joined First Na­
tional Lincoln in 1981 and was
named commercial banking officer
in 1983. She is a graduate of the
University of Nebraska-Lincoln.
Also in the Metropolitan Banking
Division, Emily Zimmer has been
promoted to commercial services of­
ficer. Ms. Zimmer joined First Na­
tional in 1980 as an administrative
assistant and attended Nebraska
Wesleyan University and UNL.



Havelock Bank recently an­
nounced the appointment of Charles
Heinke to executive vice president.
Mr. Heinke, who joined the bank
in 1973, is a graduate from the Uni­
versity of Nebraska as well as a past
president of the Lincoln chapter of
the American Institute of Banking.
He has also served as an instructor
for courses on modern banking.



On August 19, James Stuart, Jr.,
president and chief executive officer
of First Commerce Bancshares, Inc.
and the Commerce Group Compa­
nies, announced that on August 16
the First Commerce Exchange Offer
expired according to its terms. Re­
sults of the Exchange Offer were ex­
cellent, Mr. Stuart said, with a com­
bined percentage of over 98%.
The transaction has previously
been approved by the Federal Re­
serve Board and thus, on Aug. 30,
First Commerce Bancshares intends
to accept all shares tendered for ex­
change. First Commerce Banc­
shares, Inc. stock certificates will be
mailed to participating stockholders
after that date.
Banker, October, 1985
Federal Reserve Bank of St. Louis

Upon closing, First Commerce
Bancshares, Inc. will be the parent
holding company of the following
operating companies: National Bank
of Commerce Trust & Savings Asso­
ciation, Lincoln; First National
Bank of Kearney, Kearney; Over­
land National Bank, Grand Island;
First National Bank of West Point,
West Point; North Platte National
Bank, North Platte; City National
Bank & Trust Company, Hastings;
Commerce Affiliated Life Insurance
Company; Commerce Savings Lin­
coln, Inc.; Commerce Savings Col­
umbus, Inc., and Commerce Savings
Scottsbluff, Inc.
(Continued from page 47)
changing. An alternative would be a
fundamental change in farm policy;
i.e., tight farm production controls
that would remove 60 to 80 million
acres. I don’t see any ground swell
to favor of such an approach.”
An interesting, intriguing presen­
tation on “Alternative Crops and
Markets for Nebraska Agriculture”
was presented by Dr. Lowell D. Satterlee, professor and head of food
science & technology department
and director of the food processing
center, and Terry McAuliffe, mar­
keting specialist in the food process­
ing center, both at the University of
Dr. Satterlee gave a long list of
commodities which Nebraska has
the potential to expand both in pro­
duction and processing. These in­
clude dry beans, potatoes, eggs and
various cereal grains.
The conference concluded with a
noon luncheon the following day at
which D.B. “Woody” Varner was
honored for his distinguished record

Talk To The Municipal
Bond Professionals

William March

Robert E. Roh
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

For municipal bond OFFERINGS,
BIDS and APPRAISALS, call on
the professionals who specialize
in tax-free bonds.

Municipal Bond
Underwriters, Inc.
In v e s tm e n t B a n k e rs • U n d e rw rite rs
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(4 0 2 ) 3 4 1 -1 1 4 4

In Nebraska Call Toll Free (800) 642-4413
Member of the Securities Investor Protection Corporation


Nebraska News


HOSTS for First National Lincoln’s 1985 Correspondent Bank Conference are pictured in left photo, left to right: Bill Smith, chmn. & CEO;
Orrln Wilson, exec, v.p., and Gary Block, v.p. and head of corresp. bank div. RIGHT—Panelists for the traditional Saturday morning Ag
I Panel were, from left: Dale C. Tlnstman, Robert Cartmlll, Jack Maddux, Carson Rogers and Dr. Roy Arnold.

nages the next three years as today.
Now is the time to be a contrarian
again and anticipate better markets
overs September 30 a year hence. the next three years. I hope bankers
His chart shows total supply for will stick with cattle feeders who
crop year from 1971-1976 ranging have a good beef plan.
Carson Rogers: Pork has a much
from 5.185 billion bushels of corn to
6.707 billion. It went to 7.391 billion faster turnaround then beef so there
in 1977, in the 8 and 9 billion bushel is more opportunity to change direc­
range the next four years, then tions. There is 3-4% less breeding
soared to 10.429 billion bushels of herd today. One thing that will help
corn 1982. The total usage that year us as much as anything is cheap
of 7.106 billion was the lowest since corn. We eat every pound of meat
1978, resulting in a new high carry­ produced — none is thrown out.
out September 30 of 3.123 billion, or Price controls.
I believe we’ll get back up to the
a 57.5% increase over the 2.110 bil­
lion carryover a year earlier. That break-even point. If $47.00 is that
excess resulted in the PIK program. point, it will probably take until the
Mr. Maddux: Our problem in the third quarter of 1986. With cheap
past 8-9 months was a self-inflicted corn we can feed out $40.00 hogs.
wound. We had almost total consen­ The other side is to liquidate, and we
sus we’d have a very good fed cattle anticipate a 2-4% reduction in breed­
market. But, we had unprecedented­ ing herds to get back up to that
ly good feeding weather, with gains $47.00 level.
Mr. Tinstman: As of August 24
one-third of a pound better than nor­
mal. Everybody kept waiting for the we had 2 % fewer cattle in the mar­
turnaround, and carcass weights ket; about the same with hogs. The
went from 624# to about 645#. total red meat supply to date is up
Slaughter was down 3% but tonnage 2%, poultry is up 6 %. We’re not
was up 1%. That 1% equals 20,000 through with the diet/nutrition
issue. Much of it is not proven and
more head per week.
The problems of the past 8-9 we haven’t told our story well
months is a passing thing — the enough. We haven’t yet cleaned up
basics remain the same and slaugh­ our oversupply of beef, and good
ter is reducing cattle numbers. On weather and grass are bringing in
January 1, 1985, there were 109.8 heavier cattle. The midwest is pret­
million head; by January 1, 1986, ty well cleaned up, but there are still
that is estimated to be 106.5 million problems in the south and south­
head. Records show 10% of today’s west.
After an extended question and
slaughter is reducing cattle num­
bers, all of it in feed cows. The calf answer period the morning session
crop will be our smallest (41 million) closed so all guests could go across
since 1961. But, the same calf crop the street to First National’s build­
will produce today 24 billion pounds ing for a reception and lunch. Fol­
of meat, as opposed to 21 billion in lowing that, they adjourned to near­
by Memorial Stadium where the
Sometime in the next 2-3 years final news was as bad as the cattle
we’ll have a significant reduction in market — Nebraska lost by a narrow
beef supplies. We won’t produce ton­ margin to Florida State.

1st N ational Conference Draws 700
EARLY 700 bankers and spouses
attended the First National
Lincoln’s Correspondent Bank Con­








ference in early September at The
Cornhusker in Lincoln. They were
guests of the bank at a cocktail-buf­
fet reception Friday evening.
After a group breakfast Saturday
morning, registrants were welcomed
by Bill Smith, First National presi­
dent, and Gary Bilck, vice president
and head of the correspondent bank
division. Mr. Bilck announced the
winners of the “Crystal Ball” con­
test conducted at the 1984 confer­
ence, which showed that several
spouses outperformed all the bank­
ers in predicting various commodity
prices and market indices. Mr. Bilck
then introduced members of “The
Livestock, Grain and Feed Outlook”
panel, all five of whom were also on
the 1984 Conference ag panel. They
were: Dr. Roy Arnold (moderator),
vice chancellor, Institute of Ag and
Natural Resources, University of
Nebraska-Lincoln; Robert Cartmill,
president, Lincoln Grain, Inc., Lin­
coln; Jack Maddux, rancher-live­
stock producer, Wauneta; Carson
Rogers, state senator and swine producer, Ord, and Dale C. Tinstman,
director and former co-chairman,
Iowa Beef Processors, Dakota City.
Summaries of their opening remarks
Mr. Cartmill: Each year he pre­
pares a “Corn Balance Tables”
which charts carry-in stocks, pro­
duction, amount fed domestically,
exports, other usage, carryout Sep­
tember 30 a year hence, government
isolation programs, and free carry­
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1985


Lawrence H.



Senior Vice President
Sales and Business

Senior Vice President
and Manager
Commercial Banking

Vice President and



Donald H.

Senior Vice President
Bank Acquisition

Vice President
Eastern Region

Vice President
Central Region




Commercial Banking
National Accounts

Commercial Banking
Western Region

Assistant Vice
Western Region
and Bank Acquisition

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Seventh and Locust • Des Moines 50104 • 15151245-2424
Member FDIC
Banker, October, 1985
Federal Reserve Bank of St. Louis


OFFICERS of the Iowa Bankers Association for 1985-86 are, from left: Pres.-Elect—Russell
S. Howard, Jr., chmn., Mahaska State; Immed. Past Pres.—William Logan, pres., The State
Central Bank, Keokuk; Pres.—J. Bruce Meriwether, pres., First Natl., Dubuque; Exec. V.P.—
Nell Milner, Des Moines, and Treas.—Fred W. Hagemann, pres., State Bank of Waverly.

Bruce Meriwether
Named President to Lead
Iowa Bankers in Centennial Year

Associate Publisher

Associate Editors
counts over 600 banks as its mem­
bers. What a marvelous opportunity
lies before us to see what we as indi­
of the Iowa Bankers Association at vidual professionals are made of
the 99th annual convention in Des and, indeed, how strong this bank­
Moines last month. Mr. Meriwether ing system of which we are all so
succeeds William Logan, president proud really is...The time has come
of The State Central Bank of Keo­ to stop analyzing the fault process
and to get on with the challenges
The new president-elect is Russell and opportunities of our time.”
S. Howard, Jr., chairman of the
Mr. Meriwether asked his audi­
Mahaska State Bank in Oskaloosa. ence to think about what would hap­
Named to a two-year term as trea­ pen if bankers had to seek public
surer is Fred W. Hagemann, presi­ election as president or senior officer
dent, State Bank of Waverly, who of the bank. He said “wouldn’t we
succeeds Richard Randall, presi­ build our campaigns on our track re­
cord of professionalism and citizen­
dent, Dunlap Savings Bank.
During the coming year, the IB A ship, or entrepreneurial spirit and
will conclude its first century of ser­ charitable understanding?” He said
vice to the industry and will cele­ such a consideration might give the
brate the Centennial Convention “renewed vitality (that) must come
next September in Des Moines. Re­ for all of us if we are to face an uncer­
ferring to the year ahead, Mr. Meri­ tain future successfully.”
Mr. Meriwether also called on
wether said in his acceptance ad­
dress at the Tuesday evening Inau­ bankers to use their skills pro-active­
gural Banquet, “ In the banking in­ ly “to change and hold accountable
dustry it is time to rebuild our im­ the influences outside our industry,
age. A time to put forth great effort but influences that can affect so dra­
so that trust and safety and confi­ matically the people of this state
dence are reinstated and synony­ and nation—primarily, of course,
mous with banker and banking.
government!” He concluded by say­
“Soon, we will be engaged in the ing, “Now is a time for change and
activities of the 100th year of this we, as bankers, need to be deeply in­
association, an association that volved in forging these changes—
BRUCE Meriwether, president
■ of the First National Bank in
Dubuque, was installed as president
Federal Reserve Bank of St. Louis

specifically for our industry, but
also for a better world. “And so, we
embark on a new year, utilizing it,
the 100th year of this association, as
a time of renewal, of involvement
and, of course, celebration!”
Extracurricular Events
Two events outside the regular
program of speakers are worthy of
note. One was the “Capital Pursuit”
three-mile fun run and 10-mile ad­
vanced run. More persons were re­
gistered than last year but rainy
weather caused some “no shows.”
Despite that, a new record for “Capi­
tal Pursuit” was set in the 10-mile
The other was the “Sunrise Fel­
lowship Service” at 6:30 a.m. Mon­
day. Despite the early hour, more
than 200 persons were on hand to
hear the inspirational message and
beautiful singing of Vonda Van
Dyke, now of Minneapolis and a for­
mer Miss America contest winner.
Everyone felt well rewarded for
making the early morning effort.
Annual Business Meetings
Following the custom of recent
years, the annual business meetings
of the IBA and its subsidiaries and
of Iowa Bankers Insurance & Ser­
vices, Inc. were held Sunday after­
Bruce Meriwether discussed the
new structure of the legislative com­
mittee, which will be made up of the
10 IBA Group Chairmen, elected
IBA officers and two at-large ap­
pointees (one independent and one
holding company banker). This re­
places a much larger committee
which was difficult to assemble at
one time. Since each Group Chair­
man serves two years and is suc­
ceeded by the Group Secretary,
“this will give us a continuing
stream of committee experience,”
Mr. Meriwether noted.
In addition, he stated, the recent­
ly announced Committee of 99 con­
sists of a key banker appointed in
each of the 99 counties. Grass roots
input from each of these members,
gleaned from fellow bankers on each
issue, will provide needed input to
the Legislative Committee which, in
turn, makes recommendations to the
IBA Board of Directors so legisla­
tive positions may be adopted.
Mick Guttau, president, Treynor
State Bank, who agreed to chair the
legislative committee again this
year, said the timetable for the Com­
mittee of 99 is critical since input
Northwestern Banker, October, 1985


Iowa News

LEFT—Five of the ag speakers at the Monday a.m. session were, from left: John Marten, staff economist, Farm Journal magazine; ag
panelists Rep. Cooper Evans; Mike Boehlje, asst., dean, College of Agriculture, Iowa State; Alan Tubbs (panel moderator), pres., First Cen­
tral State Bank and chmn. ABA Ag Division, and Jim Schurr, sr. v.p., Farm Credit Corporation, Denver. RIGHT—Monday’s final speaker^
was the popular George Raveling (second from right), U. of Iowa basketball coach, shown here with Bill Logan, IBA pres.; Randy Steig, IBA
exec, dir., and Wes Ehrecke, IBA govt, rel./ag dir.

from those members is needed by
November 14, on which date the
Legislative Committee will reach a
consensus based on information sup­
plied by the 99 key bankers. The
Legislative Committee will then
make its recommendations to the
IBA Board, which plans to meet
November 15.
Mr. Meriwether said a series of
“town hall” meetings will be held by
the Legislative Committee through­
out the state during IBA’s coming
Centennial Year and people from
local businesses, civic and govern­
mental bodies and private indivi­
duals will be free to attend the meet­
ing with area bankers and legisla­
tors to discuss the current issues.
Delegates to the annual meeting
approved two amendments. The
first adds two at-large members on
the IBA Board—one independent
banker and one holding company
banker, each to have a two-year
term but not to succeed themselves.
Dan Kelley, president of Danville
State Savings Bank and chairman of
IBIS, along with IBIS President Al

Tinder, gave the financial report on
IBIS. Special reports also were sub­
mitted by the banker chairman of
each IBA subsidiary—ITS, Inc.,
During the meeting of ABA mem­
bers, Bill Logan was named state
vice president for ABA for two
years. L.C. “Bud” Pike, chairman,
Hawkeye Bank & Trust, Grundy
Center, continues in the second and
last year of his term as member of
the ABA Council. Ben Eilders, se­
nior vice president, Bankers Trust
Company, Des Moines, was an­
nounced as ABA membership chair­
man for Iowa.
Ag Panel
Following tradition, Monday
morning’s general session addressed
agricultural topics. The first session
was a panel moderated by Alan
Tubbs, president, First Central
State Bank, DeWitt, and featuring
Dr. Michael Boehlje, assistant dean
of Iowa State University’s College
of Agriculture; James Schurr, senior
vice president of Farm Credit Corp,
of America, Denver, and Congress­

man Cooper Evans.
Mr. Tubbs voiced bankers’ gen­
eral concern over the effect oi
today’s economy on the agriculture
industry. “No one expected that
agriculture would have to bear such
a disproportionate burden of the re­
covery from the inflationary spiral,
he said. He noted that such circum­
stances cause polarization; in this
case, borrower versus lender.
Dr. Boehlje’s opening statement^
began with the observation that the
financial stress problem in agricul­
ture is real, national, structural not
cyclical, and will result in an adjust­
ment phase that will last the next
three or four years.
He cited the results of a Wharton
Econometrics study which indicated
the farm crisis could lead to losses
by financial institutions totalling
$20-$25 billion in the next few years,T
even with good government sup­
port. That, in turn, could lead to:
• A 75 to 125 basis point increase
in interest rates.
• The loss of 175,000 to 275,000*
jobs within and outside of the farm

ONSTAGE and backstage there was both seriousness and fun. LEFT—IBA Pres. Bill Logan and Rev. Alan A. Herbst, Keokuk, join Vonda
Van Dyke in singing “ Battle Hymn of the Republic” at the enthusiastically received Sunrise Fellowship Service. RIGHT—Guest speakei#
Bill Russell, now 51, and everybody’s All American and All Pro basketball player with the Celtics, drapes a Celtics t-shirt across Wes
“Shorty” Ehrecke, IBA govt. rel. dir.
Banker, October, 1985
Federal Reserve Bank of St. Louis

Iowa News


LEFT—ABA Pres.-Elect Don Senterfltt (2nd from left), vice chmn. Sun Banks, Orlando, Fla., was welcomed to the convention by, from left),
L.C. Bud Pike, chmn., Hawkeye B&T, Grundy Center and ABA Council member from Iowa; Bill Logan, pres, of IBA and pres., The State Cen­
tral Bank, Keokuk, and Nell Milner, IBA exec. v.p. RIGHT—Tom Sullivan is pictured after his inspiring talk with several admirers, from left:
Joan Logan, J.C. Milner, Barb Lowe of the IBA staff, Chris Steig, and Claudia Ross of the IBA staff.

• A $30-50 billion reduction in the
• A $14-21 billion increase in the
national debt.
Dr. Boehlje recommended the fol­
lowing adjustments:
1. Lower interest rates to allow
cash flow even with lower prices.
2. Reduce supplies without giving
the market away to other countries.
3. Accept lower valued capital
4. Lower debt load or redistribu­
tion of debt (right now we have too
few farmers bearing too much debt).
5. Redistribute asset ownership.
Dr. Boehlje concluded by observ­
ing increasing hostilities in ag lend­
ing. “I see more and more an unwill­
ingness in the farm community to be
cooperative with the lending com­
munity,” he said.
James Schurr of the Farm Credit
Corp. called the nation’s Farm
Credit System ‘‘seriously threat­
ened,” and said the wrorst problem is
a broad asset values reduction,
amounting to $250 billion in the last
five years. He noted the serious

undercollateralization of Land Bank
loans —$6 billion out of the $50 bil­
lion total—and called it a forerunner
to serious problems in the future.
Mr. Schurr also offered assur­
ances that the FCS is working to
make improvements. The Farm
Credit Corp. was chartered this year
to coordinate and administer the en­
tire program. Thirty-three banks
have been restructured to increase
efficiency. PCAs and FLBAs are
being consolidated within their dis­
tricts. Bad debts in Spokane and
Omaha banks are being disposed of,
and other FCS banks are contribut­
ing $135 million to the two banks. A
legislative committee has been
formed to determine the best form of
federal financial assistance for the
Farm Credit System.
Rep. Cooper Evans commended
FCA Governor Donald Wilkinson
for admitting the problem in the
FCS, because it allowed Congress to
begin to act. He said, ‘‘I am firmly
convinced that Uncle Sam is going
to have to do something to bail out
the FCS soon, and there will be a

serious attempt to have a farm
credit bill passed out of the House
by the end of the year.”
Rep. Evans expressed doubt as to
the efficacy of the FCS’s actions to
make improvements. Regarding
Gov. Wilkinson’s statement that
help would come in 18 to 24 months,
Rep. Evans said he suspected this
was “illusory.” He cited the inabili­
ty of reserves to be shifted where
most needed and said last winter’s
restructuring will not even begin to
cash flow this year.
Rep. Evans noted aid to the ag
lending community is available even
under existing law, using the ex­
ample of the Federal Reserve Board,
which would be able to help in the in­
stance of a serious liquidity prob­
As for new legislative possibili­
ties, he listed seven possibilities,
stressing that in view of the deficit,
low cost, “soft money” measures
were preferable.
1. Guarantee the Farm Credit
System bonds sold on Wall Street.
2. Ask FCS, possibly with federal

LEFT—Ty Logan (left), v.p., and his father, Bill Logan (third from left), pres, of The State Central Bank in Keokuk, are pictured with several
of their luncheon hosts from LaSalle National Bank—from left: Wayne Bismark, v.p.; Peter McGuire, v.p. and head of corr. bk. div.; Homer
Livingston, Jr., pres. & ceo., and Del Rogers, v.p. RIGHT—Omaha National Bank hosts John Wear, 2nd v.p., and Del Olson, v.p. (both stand­
ing) are pictured with guests Dick Randall, pres., Dunlap Savings, and Katie, and Helen and Mark Langenfeld, pres., Farmers T&S, Earling.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1985


Iowa News

SHOWN at Norwest Sank Omaha reception are, from left: Chuck Undlin, pres, host bank; Tony Payne, pres., 1st Natl., Council Bluffs;
Awtry, pres., Valley State, Rock Valley; Mike Moeller, pres., Norwest Bank Sioux City; Ed Kohout, sr. v.p., and Bill Dewhurst, v.p., both with
Norwest Omaha; Dick O’Bryan, pres., Harlan Natl.; Ernie Liljedahl, v.p., 1st Natl., Essex, and Howard Nielsen, v.p., Norwest Omaha.

LEFT—A family get together at Norwest Bank Des Moines breakfast found Exec. V.P. Lynn Horak of Norwest (standing left) visiting with
his Norwest associate John Rlgler (standing), v.p. in charge of fin. inst. gp., and John’s parents (seated)—Robert Rlgler, pres., S e c u rity
State, and Mrs. Rlgler. RIGHT—Two host couples at 1st Natl, of Omaha dinner party were Qretchen and Phil Giltner (seatec left), pres., an<P
Fred Kuehl (standing), v.p., and his wife, Janet, with guests Kathy and Tom Whitson, pres., Council Bluffs Savings.

help, to redeem high interest bonds
sold several years ago.
3. Establish central reserve capi­
tal funds for FCS, using a certain
amount of federal seed money.
4. Ease capital requirements of
some institutions (PCAs now re­
quire 10%).
5. Use capital or net worth certifi­
cates in community banks (although
he expressed that the manner these
were used in S & Ls was “very irre­
6. Provide some kind of ag credit
corporation to buy questionable
7. Insure fixed rate, long term
land mortgages. Money raised on
Wall Street for ten and fifteen year
bonds should be available to ag com­
munity banks as well as Land
In the panel discussion that fol­
lowed, the audience was invited to
make comments as well. Mr. Tubbs
began by urging cooperation be­
tween the ABA and IBAA in sup­
porting legislation. He said lack of
this in the past has impeded compe­
tition between banks and the FCS.
Banker, October, 1985
Federal Reserve Bank of St. Louis

An audience member voiced con­
cern that the FCS will become a na­
tionalized national bank, and thus
have an unfair advantage over
banks. Rep. Evans said Congress
will insist on strong borrower/owner
control and resist extreme centrali­
zation of the farm credit system. Mr.
Schurr added that when the FCS re­
quested federal assistance, it was
told that would mean additional fed­
eral control as well.
Dr. Boehlje noted that the FCS is
limited because of the lack of diver­
sity in its loan portfolio from mak­
ing competition more fair. In this
vein Rep. Evans said the Ag Com­
mittee would not want to broaden
the jurisdiction of the FCS beyond
ag loans because then the issue
would leave their own committee
and go to the Banking Committee.
Mr. Schurr added that FCS’s own
directorate had agreed it would be
best not to seek other forms of lend­
ing authority.
The question was asked whether
short-term lending bankers should
cease their past policy of referring
long-term lenders to FCS. Mr.

Schurr answered that FCS would
not break up long term farmer/community bank relationships, but iL
would make itself available to nev^
In response to another question,
Mr. Schurr gave assurances that
while its position has softened somev
what, the FCS will not dump land oir
the marketplace on a large scale.
When asked about public sym­
pathy for ag problems, Rep. Evans
said there is sympathy, but all p a r^
ties want to avoid large expendi­
tures. In the case of FCS, he said,
the involvement of so many lenders
made intervention necessary. An
audience member drew applaus^
when he called federal assistance to
the FCS “grossly unfair” in view of
the lack of assistance available to
the failing commercial bank. Rep.
Evans agreed but said the situ a tio n
will not change since only a threat to
the financial structure of the whole
U.S. can draw the attention of policy
The discussion concluded with qp
couple of practical suggestions by
Dr. Boehlje for lenders seeking to be

Iowa News


£ LEFT—Greeting guests at Drovers Bank of Chicago reception were, from left: Vicki and Frank Baudar, vice chmn. of Cole Taylor Financial
Group; Lillian and Max Roy, sr. v.p. of Drovers, and Ruth and Jim Carmody, chmn., Drovers. RIGHT—Guests at Bankers Trust of Des
Moines reception were greeted by Dennis Wood, exec, v.p.; John Chrystal, pres.; John Ruan, chmn., and Ben Ellders, sr. v.p.

LEFT—Barbara and Bill Kruse (left), chmn., 1st Natl., Dubuque, are pictured with Ellamae and Tom King, v.p., 1st Natl. Chicago at the lat­
ter bank’s dinner party. RIGHT—Pictured greeting guests at Davenport B&T reception were John and Tom Flgge, both pres, of the bank;
Mike Bauer, 1st v.p., and John Flgge, pres.







more effective: 1. Gather more per­
formance-oriented data about bor­
rowers. 2. Change strategies so
documentation is done yearly, to
prevent surprises.
Other Ag Speakers
Next on the lineup of speakers
was Dr. John Marten, staff econo­
mist for Farm Journal magazine.
His presentation, “Commodity and
Land Value Outlook,” began opti­
mistically by noting that not all
farmers are in financial trouble. He
pointed out that 33% of midwest
farmers have low or no debt. The
average debt/asset ratio in Iowa is
40%, rather high, and age varies in­
versely with debt.
Dr. Marten referred back to Alan
Tubbs’ earlier remark concerning
the disproportionate loan borne by
agriculture in the recovery from in­
flation. He said, “We accidentally
had one of our little pinkies in each
of the doors that got shut.” He
noted that farmers were hard hit
because 1. they produce commodi­
ties, 2. they own real estate and 3.
they are strongly affected by infla­
Dr. Marten said the farm failure
Federal Reserve Bank of St. Louis

projection now is at a level of 5-6%,
two to three times the normal rate.
He blamed the high level on factors
such as the weakening of the dollar,
high trade deficit, high real inter­
state rates, and the cut in inflation.
He did feel if inflation stays at 3-5%,
interest rates eventually will come
The final speaker of the morning
session was Victor Rice, chairman
and CEO of Massey-Ferguson Ltd.,
whose speech was entitled “Is There
Life after Deflation?”
Afternoon Speakers
Donald Long, finance industry
consultant with IBM, in his after­
noon presentation “Future Trends
in Banking Services,” advised bank­
ers as to future changes in the indus­
try and how to meet them.
He put particular emphasis on the
need for marketing, saying “Mar­
keting is the field on which this
game is going to be won or lost.” He
urged bankers to change their “ap­
plication mentality,” the belief that
in banking, customers apply, and
bankers do not sell. On the contrary,
he said, bankers need to get out and
compete for customers.

Mr. Long recommended banks
know their customers better, both to
insure they possess profitability and
to improve marketing. He pointed
out that customers are becoming in­
vestors rather than savers; there­
fore, the relationship ought to be one
involving broad financial services.
Mr. Long predicted increasing use
of electronic transactions and selfservice delivery facilities. Such de­
velopments will result in increased
convenience for customers as well as
savings for banks in paper costs and
Above all, Mr. Long urged bank­
ers to be flexible. He observed that
in the future of banking, “A no
change scenario is an out-of-busi­
ness scenario.”
Noted economist Dr. B arry
Asmus, in his presentation entitled
“Economics and the Spirit of Enter­
prise,” discussed banking in view of
the free market, limited government
economics he espouses. He attri­
buted the success of America to the
fact that it was based on a system of
private ownership capitalism—the
idea of freedom—which leads to a
spirit of entrepreneurship, savings
Northwestern Banker, October, 1985


Iowa News

LEFT—Enjoying themselves at the breakfast hosted by Security Natl, of Sioux City were, from left: Jim Miller, chmn., Pioneer Valley Svgs.,
Sergeant Bluff, and Jane; Sylva and Max Kleman, pres. & chmn., Alton Svgs., and Gordon Mennen, pres., Le Mars Sav. Back row: R.E£
Hagen, pres. & c.e.o., and Dennis Nahnsen, v.p., corr. bkg. serv., Security Natl. RIGHT—Also attending the Security Natl, breakfast were:
left, Ken Ogren, v.p., Farmers St., Marcus, and Kathy; Dennis Gano, v.p. & tr. off., Cherokee St., and Barbara; Norm Rossow, v.p., Farmers
St., Schleswig, with Margaret and Dennis Nahnsen.

and investment and, finally, success
and growth. He said, “Privatization
is a beautiful wind sweeping across
this country,” and urged bankers to
follow this trend. Dr. Asmus’ talk
was entertaining and inspiring, and
moved those present to agree with
his observation, “The mainspring of
human progress is freedom.”
George Raveling, head basketball
coach at the University of Iowa,
Iowa City, brought Monday’s gen­
eral session to a rousing close and
was warmly welcomed by all.
Tuesday Morning’s Session
Tuesday morning’s session opened
with comments by Iowa Governor
Terry Branstad. Gov. Branstad ex­
pressed his feelings that the federal
government is responsible for cur­
rent economic problems and it is
time they acted to correct them. He
said the times will require tough sacrafices but that he was confident
Iowa’s bankers would give the sup­
port and understanding needed. (A
transcript of the Governor’s speech
appeared in the Sept. 30 Weekly

Alex Sheshunoff, founder of
Sheshunoff & Company, spoke on
the topic “High Performance Bank­
ing and Analyzing High-Pricing,
High-Quality Banks.” He stated
“The key thing is to keep thinking
entrepreneurially,” and urged bank­
ers therefore to strive for high quali­
ty service and relationship banking.
In terms of alternatives open to
bankers today in the areas of merg­
ing and franchising, Mr. Sheshunoff
recommended a new charter alterna­
tive. Stating “The challenge of the
future is going to be how to generate
good loans,” he showed how this
form of banking would concentrate
on that very activity. He recom­
mended creating loan production of­
fices away from the bank with only a
loan officer and secretary, offices
which would concentrate on recruit­
ing loans.
He saw the future of banking as
being threatened by long term eco­
nomic trends, loss of depositor confi­
dence, and actions taken by govern­
ment. Nevertheless, Mr. Sheshunoff
observed there are areas in which

bankers can increase profits, includ­
ing improving spreads, increasing#
fee income, and controlling non-in­
terest expenses. He noted the boom
in new types of banking services and
recommended bankers compare
work and reward before developing#
new services.
Donald Senterfitt, 1984-85 presi­
dent-elect of the ABA and vice
chairman and senior executive offi­
cer, Sun Banks Inc., Orlando, Fla.#
was the second speaker of the morn­
ing. He said today nearly all the
challenges and opportunities bank­
ers encounter as an industry can be
described by one word: RISK. “#
don’t mean the traditional risks as­
sociated with banking...what I have
in mind is broader than the timehonored C’s of credit analysis. The
risks I am thinking of encompas#
the entire industry, and how we de­
fine and manage these risks will go
far toward determining how we fare
in the future,” he explained.
Mr. Senterfitt added there is W
risk of public misperception regard­
ing the safety and soundness of the

LEFT—Continental Bank of Chicago’s traditional Monday luncheon found this group visiting: Bob Vasko, Continental v.p.; Bob Donhowe,
chmn., Norwalk-Cumming State Bank, Norwalk; Mary Nlhlean, bkg. off. of host bank; Bud Pike, chmn., Hawkeye Bank & Trust, Grundy C e #
ter and Anne Thelsen, bkg. assoc. RIGHT—Bob Miller, chmn. & ceo., Polk City Savings; Bob Mlllen, pres., First Interstate Bank of Des
Moines, and his wife, Happy; John Hopkins, pres., Albert City Savings, and Mike Austin, v.p., First Interstate Bank.
for FRASERBanker, October, 1985
Federal Reserve Bank of St. Louis

Iowa News


LEFT—Northern Trust of Chicago reception line hosts included: front, Louise and Clyde Reighard, exec, v.p., and John McClure, v.p.-head
of fin. inst. dept.; back, Susan Lang, comm. bkg. off., Scott Moore, bond inv. off., and James Monhart, comm. bkg. off. RIGHT—Gary
Stevenson, v.p., First Natl. Bank, Sioux City; Holmes Foster, pres, and c.e.o., Bks. of la.; Kathy and Thomas D. Whitson, pres., Council
£ Bluffs Svgs. Bank, welcome guests to the Banks of Iowa reception.







financial system today. He said the
most effective way to deal with pub­
lic misconception is “to determine
that we have a quality operation.”
He explained he has joined with
ABA president Jim Cairns to ad­
dress this problem by selecting a
small group of bankers to constitute
an ABA Commission on Safety and
Soundness. “I believe there will be
something tangible to report in this
area no later than early next year,”
he concluded.
The morning session closed with a
moving presentation by Tom Sulli­
van, entertainer and humanitarian,
entitled “You are Special.” Mr. Sul­
livan observed that, like his own
blindness, all people possess handi­
caps; the key is to turn your disad­
vantage into advantages. He re­
flected that bankers today are
handicapped by their public image,
but they can fight the label by striv­
ing to humanize the work they do
and not giving in to labeling. His at­
titude that “Depression is based on
y esterd ay ’s news, not to d ay ’s
events,” his inspiring music, and the
story of his life of triumph over dis­
advantage were uplifting to all.
Closing Speakers
“The M-Form Society: Balancing
Competition with Teamwork,” was
the title of the afternoon presenta­
tion by Dr. William Ouchi, professor
of management at UCLA. He ob­
served the tendency toward eco­
nomic atomization, with each inter­
est group in its own corner, resulting
finally in a political economic grid­
lock. On a smaller scale, this can
happen in companies.
In corporations with the U-form
structure, no one functional depart­
ment can act on its own, and all
power is vested in the CEO, who can
often drown in decision-making. In
H-form corporations, the operating
Federal Reserve Bank of St. Louis

units are unrelated except when it
comes time to make bids for the bud­
get and, therefore, have very differ­
ent points of view.
An M-form corporation is multidi­
visional, with division managers
working as a team. They have dif­
ferent objectives and outlooks, but
get together to form a consensus
recommendation for the CEO. The
key is a balance of competition and
In response to the objection that
the consensus approach is too slow,
Dr. Ouchi referred to the example of
Japan. The approach was applied to
the computer chip market, and the
results were that in ten years Japan
went from having 15% of the market
to 85%. The key is flexibility, Dr.
Ouchi noted, saying “If you cannot
change the rules at least once in
awhile, you cannot keep a competi­
tion healthy.”
He also mapped out the system
used in Minneapolis, a thriving ex­
ample of the M-form approach,
where a willingness to be flexible to­
day paid off in success tomorrow.
He urged that in the United States
we move away from the gridlock
system of lobbying to a more consensusicle approach, and recom­
mended bankers also work towards
such a system in their banks.
Tuesday’s general session con­
cluded with special guest speakers,
Bill Russell, color analyst for WTBS
television and former basketball
superstar for the Bostin Celtics. It
was a special appearance for IBA’s
retiring president Bill Logan, who
had played center for the University
of Iowa opposite Bill Russell and the
University of San Francisco in the
national championship game of
1956, which San Francisco won.
Facilities and Entertainment
The new Des Moines Convention
Center was opened for business only

weeks before the Iowa Bankers con­
vention and it lived up to its ad­
vance billing as a first class conven­
tion center.
The exhibit hall was spacious, of­
fering ample room for exhibitors and
visitors alike.
The President’s Dance on Sunday
evening drew an enthusiastic crowd
of bankers and spouses to the Mar­
riott Hotel ballroom where they saw
IBA President Bill Logan and his
wife, Joan, lead off the festivities
with a smooth waltz to the music of
the William Tell Orchestra.
Monday night offered the oppor­
tunity to see and hear the worldfamous Preservation Hall Jazz
Band from New Orleans French
Quarter, which staged two rousing
performances. Each concluded with
the traditional “When the Saints Go
Marching In, led around the Civic
Center and back onstage by two
band members.
The Inaugural Dinner at the Mar­
riott Hotel had a touch of elegance
again as IBA officers were attired in
tuxedos at the head table with their
spouses. More than 200 attended
the dinner and stayed to hear the ex­
cellent music of Iowa Rose, a west
Michigan quartet which played
acoustic folk, swing, country and
bluegrass music.
The special events scheduled for
spouses drew another good atten­
dance. In addition to special craft
and art displays and classes, a home
tour and luncheon also were avail­
able for those wishing to take part.


Addition Told in Spencer
Peter M. Lindstrom has recently
joined the Farmers Trust and Sav­
ing Bank, Spencer, in the loan area
as the collection manager. Mr. Lind­
strom spent four years with IFG
Leasing Company in Des Moines.
Northwestern Banker, October, 1985

LEFT—At the United Missouri Bank of Kansas City dinner were: Phil Straight, exec, v.p., corr. bkg. div., UMB, Lyle Wells, Jr., vice chmn.,
UMB, with guests, Barney and Tom Smith, pres., Brenton Bk. & Tr., Marshalltown. RIGHT—The Des Moines Botanical Center was the lo c a ^
tion of Hawkeye Bancorporation’s reception attended by: Paul Dunlap, pres., Hawkeye Bancorporation, and Jackaline; A. Arthur Davis,
gnrl. council, IBA, and sr. partner of the D.M. law firm that bears his name; Sue and Fred Hageman, treas., IBA, and pres., St. Bank of



LEFT—At the Jowa Bankers Insurance and Services booth were, front: Al Tinder, pres., Judy Gross, a.v.p., and Dick Arendt, pres., Peoples
Savings, Montezuma. Back, Gary Livesay, v.p., and Anson Holland, serv. rep. RIGHT—Showing off their mugs were: Jerry Gross, pres., Kirk
Gross Co., and Bob Buckley, with their guest, center, Gene Plager, dir., Grundy Natl., Grundy Center.

LEFT—Wally Geiger, pres., Data Business Equipment, Inc. talked with Marty Kalton, comp. serv. rep., Bob Hartman, v.p., and Glen Plotter,
1st v.p., all with Davenport Bk. & Tr., as Tom Kolb, Data Bus., assisted. RIGHT—Roy Wingers, sr. consultant, Bank Building Corp., ex­
plained building plans to Charles Carlberg, chmn., Panora St.

m n cm m sM C

LEFT—Representing Travelers Express Co. were: left, Bill Harris and Mike Sandstrom, Mpls. RIGHT—Jean Eden, left, and Linda Helt,
both, ag. bkg. specialist with AgriCareers, Inc., shared with bankers about employment recruiting.
Banker, October, 1985
Federal Reserve Bank of St. Louis


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

A t rates you don’t have to
be a banker to appreciate.
Dividends? Last year
we paid over $515,000 to
Iowa banks.
For more information,
call 1-800-532'1423
toll-free. A nd find out how
m uch better insurance from
bankers can be.

Northwestern Banker, October, 1985


¡B— —




LEFT—Dennis Whittington, right, acct. exec., HBE Bank Facilities, St. Louis, meets with, left, Nyles Myers, a.v.p., and Al White, a.v.p., Citi­
zens First Natl., Storm Lake. RIGHT—Visitinng at the NCR booth were: Glen Simpson, acct.-exec., NCR, Jim Brown, v.p., Hardin Cnty.
Svgs., Eldora, and David Heath, acct. proc. mgr., NCR, Des Moines.

fj j n |

: i-


-• •••■
:. '


| J


LEFT—Visiting during the Bankers Trust, Des Moines reception were: Gordon Wold, pres. & t.o., Poweshiek Cnty. Svgs., Brooklyn, O.J|
Tomson, chmn. & c.e.o, Citizens Natl., Charles City, and, dir., Fed. Reserve, Chicago, and Bernie D. Miller, v.p., corr. bkg., American Tr. &
Svgs., Dubuque. RIGHT—First Natl., of Omaha representatives included: Jack Hoffman, conv. mgr., Mike Foutch, mktg. rep., and Mary Jo
Brennan, cust. support mgr.
sift Sharing




LEFT—“ Take me out to the ballgame,” is what these Marquette Bank, Mpls. representatives seem to have been saying. Handing out
Cracker Jacks and baseballs were: Grace Jaeger, inv. off., Mike Hay, tr. adm., and Michele LeCuyer, tr. off. RIGHT—At the Daktronics
booth were: Mike Kramer, sales mgr., Midwest Sign Brokers, Dean Schantz, v.p., First Natl., Creston, and Jim Thomas, regional sales mgr.,
Daktronics, Inc.

UJ i* iS
ya v\N A LB A N K


■¡ î :• :

••O N C E IT S




LEFT—Shown here at The National Bank of Waterloo’s exhibit, where a person had the opportunity to win an Iowa Lottery Ticket, is Mary
Fehrlng of the Iowa Dept, of Banking, holding her $1000 winning ticket. Helping out at the booth were, left: LeRoy Bell, a.v.p., and R. Scott*
Fetner, pres. RIGHT—Ross Schoonover, left, v.p., and James Jones, far right, Office Concepts, Ltd., welcomed Brad Young, a.v.p., and Jeff
Young, v.p., Iowa Tr. & Svgs., Centerville.
Banker, October, 1985
Federal Reserve Bank of St. Louis

Iowa News


LEFT—Talking over the latest in insurance at the IAC Group display were: left, Craig Ross, fin. ins. rep., Douglas Neighbor, v.p., Farmers
St., Marion, and Kathryn Foster, fin. ins. rep., IAC Group. RIGHT—Jim Grimes, right, dist. mgr., Brandt Systems, Omaha, demonstrated
money handling machines for Gerald Lapke, pres., State Bank of Portsmouth.

president of the State Bank of Alli­
son for the past three years.
Edward J. Leahy has been elected
First Midwestern will serve as a
president and CEO of Tipton State service corporation for the following
Bank. He began his duties on Sep­ banks: Palmer State Bank, Palmer;
t e m b e r 1st after serving as presi­ Iowa Savings Bank, Woodbine;
dent of Northwestern State Bank in Iowa Bank & Trust, Bloomfield;
Orange City for the past eight years. Citizens Savings Bank, Afton; Peo­
Mr. Leahy was former chairman ples Savings Bank, Odebolt; Com­
of Group 12 and a member of the munity State Bank, Rockwell; State
Iowa Bankers Association’s board Bank of Lone Rock, Lone Rock,
of directors. He has also been a Wis., and Bank of Gays Mills, Gay
member of the IBA ag committee Mills, Wis. Other stockholders in
and the ABA agricultural division’s FMFC are C.W. Persinger, Sioux
executive committee.
City; R.O. Wikert, Fremont, Neb.;
T.S. Gentle, Iowa Falls, and W.A.
Krause, Hampton.

*Pres./CEO Named in Tipton

Pres. Named in Allison

Charles J. Gaffey has been named
0 president and chairman of the State

Bank of Allison.
He jo in s the
bank with 25
years of finan• cial experience
which includes
commercial and
mortgage bank­
ing, leasing and
# manufacturing.
Prior to ac­
cepting the posi­
tion here, Mr. Gaffey was president
of the Mortgage Company of Sara11 sota, in Sarasota, Fla., whose main
purpose was to originate and fund
residential and commercial real es­
tate loans. He succeeds Russell

Pres. Named in Hampton
Russell G. Olson has been named
0 president of the First Midwestern

Financial Corporation, Hampton.
Mr. Olson, 31, had previously been
Federal Reserve Bank of St. Louis

Four VPs Named at
Brenton—Powashiek Co.
Four vice presidents have been
named at Brenton National Bank—
Powashiek County. They are David
S. Burrell, Jerald B. Sullivan, Daryl
K. Petry and Robert L. Brown.
David S. Burrell was promoted to
senior vice president. He previously
served as vice president, and is in
charge of commercial and agricul­
tural loans. He has been with the
bank since 1976. Jerald B. Sullivan
has been responsible for the bank’s
consumer loan department and stu­
dent loans as well as working in the
area of agricultural and commercial
loans. He taught vocational agricul­
ture prior to joining the bank in
Daryl K. Petty joined the bank in
1982 and has been primarily in­
volved in agricultural and consumer
lending. Prior to that he was an ex­
tension economist in farm manage­
ment with Kansas State University.
Robert L. Brown has joined the

bank as vice president. He will pri­
marily be involved in real estate and
commercial lending. He has had ex­
tensive retail and banking experi­
ence, most recently in Oregon, 111.,
and at banks in Janesville and
Broadhead, Wis.

V.P. Named in Sioux City
Security National Bank of Sioux
City recently named D. Douglas
Rice as senior
vice president of
the asset man­
agem ent d iv i­
sion. He will
oversee the com­
mercial banking,
investm ents,
real estate ser­
vices, credit and
loan review de­
Since joining the bank in 1975, he
has held positions in the customer
service, dealer service and auditing
departments. He was promoted to
vice president and general auditor in
1980, before being named senior vice
president of finance, in charge of au­
diting, loan review and the account­
ing areas. In 1984, Mr. Rice moved
to the commercial services depart­
ment, where he assumed responsibil­
ities in commercial loan analysis, as
well as becoming active in commer­
cial lending.

V.P. Added in Clarksville
Richard L. Brown has joined Iowa
State Bank Clarksville as vice presi­
dent and ag representative. Prior to
joining Iowa State Bank, Mr. Brown
worked with Metropolitan Life and
First Bank System. He is a 1971
University of Iowa graduate.
Northwestern Banker, October, 1985



division since joining the bank in
1984. He was previously employed
as manager of the consumer loan dig
vision at First American State Bank
in Fort Dodge.

Alda Post, director of marketing
for the Iowa Bankers Association,
has resigned effective August 30.
She held a variety of positions since
starting with the association in
1982, including compliance and com­
munications coordinator, director of
communications and compliance,
and director of marketing and com­
Ms. Post is now the executive di­
rector of the Iowa Funeral Directors
Association, a 600-member organi­
zation located in Des Moines. In her
new position, Ms. Post is respon­
sible for the overall operations of the

At First Interstate Bank of Des
Moines, Bill Mullins has been ap­
pointed vice president in the Iowa
correspondent/corporate service di­
vision and Steve Justice has been
appointed assistant vice president
in the metropolitan commercial ser­
vices division.
Mr. Mullins has served as assis­
tant vice president in the Iowa cor­
respondent/corporate division since
joining the bank in 1984. He was
previously employed as a bank ex­
amination specialist at the Iowa De­
partment of Banking. Mr. Justice
has served as commercial loan offi­
cer in the metro commercial services

Farm Management Division
King Management Company offers professional,
client-oriented, farm management and counseling
service free from any fundamental conflict of interest.
Specialists in professional farm management, farm
acquisition for investment, farm appraisals and
James C . King
Raymond A. Schneider • Michael W. Mur rane
816 Equitable B ldg. • D es M oin es, IA 5 0309
5 1 5 -2 8 2 -3 1 0 0

M em bers o f A m erican Society o f Farm M anagers and
Rural A ppraisers and Farm & L and Institute

for FRASERBanker, October, 1985
Federal Reserve Bank of St. Louis

Three officers have been pro­
moted at Bankers Trust. Paul L.
Kruse has been
p r o m o t e d to
commercial loan
officer, Gary J.
Ortale to chief fi­
nancial officer
and Stephen W.
Vranich to trust
M r.
K ru se
was hired in Feb­
ruary as a comG. ORTALE
mercial banking representative a n #
in June was assigned to work outs
and special situations, including
agricultural loans. Prior to joining
the bank, he was assistant branch
manager at Webster City Produc#
tion Credit Association.
Mr. Ortale joined Bankers Trust
in 1978 as a staff auditor and was
named assistant auditor in 1979. He
transferred to the control depar#
ment in 1982 as senior accounting
officer and waa named assistant con­
troller in 1983 and director of finan­
cial planning in 1984. Most recentlv
he was controller and cashier.
Mr. Vranich started with the
bank in 1980 as a part-time ACS rep­
resentative and was named EFT
supervisor in 1981. He transferred
to the trust operations department
as supervisor in 1983 and in 1985
was named trust operations officer.
Most recently he served as assistant
manager, trust operations officer. ^
Calvin D. Bandstra, Donald
Dawson, Patrick J. Montgomery
and Cristopher R. Nelson will attend
the School for Beginning Examiners
of the Education Foundation qk
State Bank Supervisors (EFSBS), it
was announced by Thomas H.


-■ó ....

v /XX







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can help you design a financial
institution that not only looks
good to your customers, but
w orks well, too.
Kirk Gross Company has built
and remodeled more financial
institutions than anyone in Iowa
and our w ork has received national
award recognition. We know how
to design them better. We know
h o w to build them faster. And we
can use local contractors to help
build them for less.
have the experience. When you’re
ready to build or remodel. . . call a
specialist Call Kirk Gross Company.


Kirk Gross Company
4015 Alexandra Drive
Waterloo. 1A 50704

See a Specialist.
Federal Reserve Bank of St. Louis

Iowa News
Huston, Iowa Superintendent of
The EFSBS School for Beginning
Examiners, which will take place
Sept. 9-20, at the University of
Arkansas in Fayetteville, Arkansas,
is designed for examiners with state
banking department tenure of three
months to one year. The School pro­
vides practical how-to-do-it training
as a supplement to what is received
on the job. Going beyond how to fill
out examination reports and sche­
dules, this School examines the
theory and concepts behind dif­
ferent aspects of the examination
Mr. Bandstra holds a BA degree
in accounting from Dordt College
and has been with the Department
since June, 1985. Mr. Dawson, who
has 23 years of teaching to his
credit, holds a Masters degree in
Zoology from the University of
South Dakota and has been with the
Department since July, 1985. Mr.
Montgomery, who has four years of
prior banking experience, holds a
BA degree in business from St. Am­
brose College and has been with the
department since June, 1985. Mr.
Nelson holds a BS degree in busi­
ness from Iowa State University
and has been with the department
since July, 1985.

president of R&C Office Supply & 1968 before beginning his 17 year
Printing, Inc. Prior to that he served banking career.
as the head of the real estate mort­
gage division of Valley National Staff Changes in Ft. Dodge
Bank, Des Moines.
J.P. Mansfield, III, president ancP
* * *
CEO of First Interstate Bank of
Fort Dodge, an­
nounced the fol­
V.P. Appointed
lowing staff ad­
in Cedar Falls
David G. McDermott has been ap­ changes.
pointed senior vice president and
James C. Neucommercial loan
roth has been
officer of Cedar
named executive
Falls Trust &
vice president
Savings Bank.
and second offi­
Mr. McDermott
cer. In addition
has been vice
to his credit ad­
p re sid en t and
ministration responsibilities, he wilj^
commercial loan
participate in the general manage­
officer at First
ment of the bank, and supervision of
Interstate Bank
the banking officers at Harcourt,
of Fort Dodge
Lehigh, Duncombe, and Burnside.
since 1979, and
Mr. Neuroth most recently wa'
prior to that was ag loan officer at senior vice president at First Bank
the Harlan National Bank in Har­ Rochester, Minn, and vice presidentlan, as well as assistant cashier at credit administration for First Bank
First National Bank, Ames.
System ’s southeast M innesota
region based in Rochester.
Laurel L. Ericson has been named
V.P. Added in Story City
vice president-credit. He will work
Randall-Story State Bank recent­ with area businesses, serving their
ly announced the addition of Dave credit and banking needs. Mr. Eric­
Morris as vice president/trust offi­ son most recently was president o%
the Federal Land Bank Association
Mr. Morris brings 20 years of ex­ of Fort Dodge.
perience to the bank and was most
recently affiliated with Northeast
Iowa National Bank in Fredericks­
burg. At this bank, he served the po­
sition of executive vice president/
trust officer/CEO.

V.P. Elected in Ottumwa


At Valley National Bank, Rochel­
le Baskerville has been named inter­
nal auditor, and Marla Gowdey has
been named trust officer. Ms. Bas­
kerville joined the bank in February
as staff auditor. Ms. Gowdey was
previously account administrator at
another Des Moines bank.
* * *
At Hawkeye Bank & Trust of Des
Moines, Raymond G. Gamel has
been appointed insurance officer,
and H. Dean Hannam has been
elected real estate loan officer. Mr.
Gamel was previously employed by
Action Insurance Agency, Des
Moines, as chief operating officer.
Mr. Hannam previously served as
Banker, October, 1985
Federal Reserve Bank of St. Louis

Union Bank and Trust Company,
Ottumwa, recently announced the
election of Roger
E. Rinderknecht
as executive vice
president and a
member of the
Mr. Rinder­
knecht joins the
Union Bank and
Trust Company
a f t e r s e r v in g
with B re n to n *■ RINDERKNECHT
Banking System as president and
trust officer since 1980. A graduate
of Iowa State University in 1964
with a degree in ag education, he
taught vocational agriculture at
Rockwell City and Webster City
High Schools from 1964 through





Francis J. Kenne has been named
vice president and manager-opera­
tions. He has responsibility for th<£
accounting, internal control, deposit
operations and credit card opera-

Iowa News

® tions functions, as well as supervi­
sion of the banking office at the
Crossroads Shopping Center in Fort
Dodge. He has been employed at the
q bank for over 14 years.
Jeffry G. Denison has been named
vice president and manager-trust.
He is responsible for the trust de­
partment, including trust sales and
^ trust operations. Mr. Denison most
recently was with the trust function
at the Omaha National Bank.
M arshall McClurg has been
named senior vice president-manage0 ment services. He is responsible for
facilities, equipment, purchasing,
and cost containment. He has been
employed at the bank for 29 years.
Bonnie J. Vandi has been named
0 assistant vice president-human re­
sources. She is responsible for all
human resource functions, and will
serve as training coordinator for the
bank. She has been employed at the
*3 bank for 28 years.
Marge Danner has been named
assistant vice president-credit. She
will be commercial loan assistant, in
addition to supervising the loan, ac^ counting and collateral functions.
She has been employed at the bank
for 25 years.

Sandi Chingren, executive secre­
tary, has assumed responsibility for
the supervision of office services,
and will also serve as marketing co­
ordinator for the bank.
Daniel Streit, retail banking offi­
cer, has assumed responsibility for
servicing the residential real estate
loan products for the bank.

John E. Mangold to Retire
From Merchants National
John E. Mangold has announced
his intention to retire January 1
from Merchants
National Bank
of Cedar Rapids,
after 32 years of
service with the
bank. Mr. Man­
gold is senior
vice president, a
member of the
bank’s board of
d ire c to rs and
head of the cor­
respondent bank department.
Mr. Mangold’s entire banking
career has been with Merchants Na­
tional Bank. Following his high

Committed to
making your
bank stand
apart from the


in the military in WWII, then en­
rolled at the University of Iowa in
1947. He received his B.S. degree in
1950 and in 1953 also received his
law degree from the University of
Upon graduation from the univer­
sity he joined Merchants National
as manager of commercial loan
operations. He moved to the cor­
respondent banking department in
1958 as assistant manager and
became its manager in 1964. Mr.
Mangold was elected a senior vice
president of MNB in April, 1970,
then in 1973 was elected to the
board of directors of the bank.
Through his 27-year association
with the correspondent banking
departm ent, Mr. Mangold has
become friends with hundreds of
Iowa bankers throughout the state
and among his peers from other city
correspondent banks nationwide.
During his more than three decades
of service with MNB, Mr. Mangold
also has served on numerous boards
and professional associations, in­
cluding a term on the board of direc­
tors of the Iowa Bankers Associa­
tion and as a member of the corres­
pondent banking division of the
American Bankers Association.
Holmes Foster, president of
Banks of Iowa, Inc., the statewide
holding company of which Mer­
chants National is the flagship
bank, paid special tribute to Mr.
Mangold when he stated that “His
loyalty, dedication and hard work
over the years has not only served
the benefit of Merchants National,
but to Banks of Iowa and bankers
all across Iowa.” Similarly, Henry
Royer, president of MNB, said, “We
are confident his tradition of service
will continue to be the cornerstone
of the correspondent department of
Merchants National Bank.”

Promoted in Council Bluffs
Chris E. Fenimore has been pro­
moted to assistant vice president
and head of the trust department at
State Bank & Trust, a Hawkeye
Bancorporation bank in Council
Bluffs. Prior to this promotion, Mr.
Fenimore served as trust officer at
Hawkeye-Capital Bank & Trust,
Des Moines. Before joining Hawk­
eye-Capital, he was the assistant in­
dustrial commissioner for the state
of Iowa.
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1985


Iowa News

FROM LEFT: Bob Wissler, retired v.p., Norwest Bank Des Moines; Randy Steig, exec, dir., Iowa Bankers Assn.; Dick Muir, v.p., United Mis­
souri Bank of Kansas City, and Jim Karlin, pres., First Newton Natl., Newton. SPEAKERS for the United Missouri Investment Seminar are^
(left to right) Mark Bailey, inv. serv., United Missouri Bank of Kansas City; Chuck Orr, partner, McGladrey, Hendrickson, and Pullen, CPA’$ *
Iowa City; Kirk Vaughan, exec, v.p., bond dept.; Jeff Goble, v.p., bond dept.; Larry Russell, exec, v.p., bond dept., and Phil Straight, exec,
v.p., corr. bkg. dept., United Missouri Bank of Kansas City.

United Missouri Bank Hosts Sem inar
Associate Publisher

portant terms used in Asset-Liabili­
ty Management: 1. Gap Ratio. A
more workable measure of interest
HE THIRD Annual Investment rate. A guideline for a good gap ratio
Seminar, hosted by United Mis­ should be between .80 and 1.20, ac­
souri Bank of Kansas City was held cording to Ms. Kelley. 2. Gap/ Earn­
August 26 at Hyperion Country ing Asset Ratio. A control measure
Club in Des Moines. Banker guests for the extent of interest rate risk
were invited to play golf earlier in that the bank is assuming. Here, the
the day then attend the seminar that ratio should not exceed 10%. 3.
afternoon. The Investment Semi­ Spread. The difference between the
nar’s agenda consisted of: Tax Law yield realized on earning assets and
Changes For Banks In 1986, Asset- the cost of funds. 4. Net Interest
Liability Management, Interest Margin%. Net interest margin dol­
Rate Outlook, Bond Strategies, and lars divided by average earning as­
an update on investment services of­ sets. 5. Free Funds Ratio. The differ­
fered by United Missouri Bank.
ence between average earning assets
With the probability of a tax law and average interest bearing liabili­
change in 1986, Chuck Orr, partner, ties divided by average earning
M cG ladrey, H endrickson and assets. Ms. Kelley concluded, “With
Pullen, CPA’s, Iowa City, gave a good sound bank management, you
complete overview of specific areas can be successful.’’
in banking that would be affected by
Kirk Vaughan, v.p., United Mis­
a tax law change and discussed in souri Bank, gave an overview on
some important topics such as inter­
detail these six potential changes:
Reduction in corporate tax est rates, the economy and the Farm
C redit S ystem . B ecause our
Further limitation of interesteconomy is no longer FED con­
expense deduction.
trolled, there are other things that
Depreciation rules and invest­will influence interest rates, Mr.
ment tax credit changes.
Vaughan said. “As long as oil and
Limitation of cash method offarm prices remain low, interest
rates are going to remain down also
Repeal of deduction for bad — I project lower to sideways inter­
est rates for now, but one year from
debt reserve.
Repeal of special rules for carry­now, see interest rates up, but noth­
ing like the period in 1980-82,” said
back of net operating losses.
Asset-Liability Management was Mr. Vaughan. Touching briefly on
the next topic discussed during the the Farm Credit System, Mr. Vau­
seminar. The presentation was given ghan said the FCS has two
by Janet Kelley, v.p., United Mis­ strengths going for it. One, its abili­
souri Bank, who said, “By having ty to borrow from the FED and
good funds management, a banker secondly, its size. “The FCS may
can optimize profits and eliminate have a full year loss at the end of
risk.’’ Ms. Kelley presented five im­ 1985,” concluded Mr. Vaughan.


for FRASERBanker, October, 1985
Federal Reserve Bank of St. Louis

Final discussion consisted of a re­
view of various bond strategies b;0
Jeff Goble, v.p., United Missouri
Bank. He told the bankers in atten­
dance what kinds of bonds to be
careful of, especially the “ traps," as
he called them, in the bond marked
An update on what United Mis­
souri Bank is doing in the invest­
ment services market was presented
by Mark Bailey and Larry Russell*
executive vice president. Bankers
were told the various ways in which
UMB is working for its customers.
“95% of our business is done with
banks,” Mr. Russell stated, “we arP
long term people, helping banks do
what they need to do on a long term
basis.” A reception and dinner fol­
lowed the business session.


Two Appointed in Dubuque
Dubuque Bank and Trust Com­
pany announced the appointments
of Michael J. McCullough as vicy
president, mortgage loan, ana
Steven M. Baumhover as commer­
cial loan officer.
Mr. McCullough joined the bank
in 1984 and will have responsibility
for developing mortgage loans.
Mr. Baumhover also joined the
bank in 1984 and will have responsi­
bility for the development of com­
mercial loans.

M. McCu l l o u g h

s. baumhover


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Federal Reserve Bank of St. Louis


Joann Fetner Named to
Iowa Arts Council Board

Why? B ecau se o f our p rofessional service
and attention to you r n eeds.
Call Mark C hristen or P eter D e Rosier toll d find o u t h o w co rresp o n d en t
banking should w ork.

H. Peter De Rosier

Vice President
There’s Nothing Like Money in the Bank...
The Valley Bank

Valley National Bank ili
D E S M O IN E S IO W A 50304

M e m b e rF D IC


(800) 622-7262 In Iowa.
for FRASERBanker, October, 1985
Federal Reserve Bank of St. Louis

Joann Fetner of Waterloo was one
of six persons appointed recently by
Iowa Governor
Terry Branstad
to the Iowa Arts
Council board.
Mrs. Fetner is
one of six new
ap p o in tees to
the board, which
consists of 15
p e rs o n s. A p ­
pointments are
for three-year
terms and members may be reap­
pointed to an additional three-year
Mrs. Fetner previously had servecF
on the Iowa Arts Council advisory
The Iowa Arts Council is the reci­
pient of state and federal funds foi^
support of the arts within the state:
The board participates in grant giv­
ing, helps evaluate programs of the
Council and screens additional pro­
grams for those that will advanc^
the arts in Iowa.
Mrs. Fetner’s husband, Scott, is
president of the National Bank of
Waterloo, where she chairs the
bank’s Art Acquisition Committed
National Bank of Waterloo has an
extensive exhibit of art throughout
the bank, all of it entirely from Iowa
artists. Selected pieces from this col­
lection are currently being exhibited
at various NBW correspondent
banks for three-week periods of time
as part of the bank’s traveling “Ar­
tists of Iowa” show that was fea­
tured in last month’s issue.

Former Iowa Bankers
Buy Kansas Bank


Kenneth E. Haddock and a local
group of investors in Herington,
Kan., have purchased a 100% inter­
est in Herington Bancshares, Inc., ^
one-bank holding company that
owns 94.81% of the Bank of Hering­
ton. The purchase was made from
Frank L. Farrar of Britton, S.D., a
well-known banker with holdings i ^
several midwest states. Mr. Farrar
had purchased the bank in January,
Mr. Haddock was hired at that
time to manage the bank. It now ha£
assets of $15.5 million and will cele­
brate its 100th year in 1986. Mr.

Iowa News


*IB IS Hosts Golf Outing

GOLFERS had their choice of playing in Iowa City or Storm Lake this year during IBIS’S annual golf outing. The event was sponsored by
Credit Life Insurance Company of Springfield, Ohio. Enjoying themselves during post-game ceremonies are: left, Dave McLaughlin, Credit
General, Doug Deer, Credit Life, Jim Hawkes, Credit Life, Elaine Phillips, supervisor, IBIS, Gary Llvesay, v.p., IBIS, and Ron Meyer, v.p.,
IBIS, Des Moines. Getting ready to tee-off are: (left to right) Ben Heckart, Farmers Savings Bank, Wever, Steve Kedley, v.p., First Central
State Bank, DeWitt, Ron Meyer, v.p., IBIS, Des Moines, Gary Bennls, v.p., Maquoketa State Bank, and Dan Jessen, exec. v.p. & tr. off., Farm• e r s Savings Bank, Wever. Golfers at Storm Lake were not as fortunate as those in Iowa City as that golf outing was cancelled because of
rain. Card playing was the name of the game in Storm Lake.

Haddock will continue as president
• a n d chairman. Mr. Haddock, who
holds the majority interest in the
holding company stock, said the
local investor group joined with him
to bring local ownership of the bank
•b a c k to Herington.
Before moving to Herington in
January, 1983, Mr. Haddock had
served for one year as vice president
of the First National Bank in Lenox,
• la. After receiving his BA degree in
Agriculture in 1968 from the Uni­
versity of Missouri at Columbia, Mr.
Haddock served two years in the
military, then taught voc-ag four
•y e a rs, the last two at Mason City,
la., high school. Later he worked in
the Federal Land Banks in Mason
City and Fort Dodge, la. He joined
First National Bank in Tuscola, 111.,
P later resigning there as a vice presi­
dent in 1978 to become executive
vice president of the First National
Bank in Lakefield, Minn. He moved
from there to Lenox, la., in January,
® 1982.

partment and managing the Anita
Insurance Agency.
Previously, he had worked as
assistant vice president and branch
manager of the First Trust & Sav­
ings Bank of Wheatland for two
years. Mr. Jacobs was also a loan of­
ficer with the Creston Production
Association for three and one-half
years in its Winterset office.

Changes Made in Winterset

James W. Mease, president of
Farmers & Merchants State Bank of
Winterset, has announced the fol­
lowing personnel changes: David M.
Nicholl has been elected executive
vice-president and cashier and sec­
ond officer. William L. Davis was
elected senior vice-president and
chief lending officer. Allen L. Banks
was elected senior vice-president
and branch officer supervisor. Mary
Jane Beniot was elected to serve as
assistant trust officer. Jo Ann M.
Houston was elected installment
loan officer. Beverly Sanderson was
named assistant cashier. Vicki Bass
Two Appointed in Anita
was named motor bank manager to
Anita State Bank, Anita, has an­ replace Mrs. Sanderson. June Mur­
nounced the appointment of Judy phy was named bookkeeping super­
Van Aernam and Martin L. Jacobs visor; Sue Corkrean, head teller, and
to the position of vice president.
Bette Patton, customer services
Ms. Van Aernam joined the bank supervisor.
in 1964 as a bookkeeper, was pro­
moted to assistant cashier in 1974
and was named assistant vice presi­
IBA Sponsors School
dent in 1981.
Mr. Jacobs joined the bank in
The Iowa Bankers Association
1984 as assistant vice president, will be sponsoring the Iowa Com­
working primarily in the loan de­ mercial Lending School, February 2
Federal Reserve Bank of St. Louis

February 8,1986, at Iowa State Uni­
versity, Ames.
The purpose of the IBA Commer­
cial Lending School is to prepare
entry-level, exempt and mid-level
commercial bank officers to serve ef­
fectively and profitably the needs
and desires of the American public
and American business. The IBA
Commercial Lending School (200
level) also serves as a preparatory
school for the more advanced Com­
mercial Lending School (300 level).
Tuition will be $700, which in­
cludes room, meals, casebook and
study materials.

IBA Sponsors Workshop
The Iowa Bankers Association
will sponsor an “ Improved Custo­
mer Relations & Financial Sales”
workshop October 21 at Lake Shore
Country Club, Council Bluffs, and
Best Western, Burlington; October
22 at the Sioux City Hilton, Sioux
City, and Black Hawk Hotel, Daven­
port; October 23 at the Holiday Inn,
Fort Dodge, and Stouffer’s Five Sea­
sons, Cedar Rapids, and October 24
at the Des Moines Convention Cen­
ter, Des Moines, and the Red Fox
Inn, Waverly.
The workshop is designed solely
for the financial industry and offers
the most up-to-date training avail­
able on selling financial services in
the ’80’s.
Topics covered will include: dere­
gulation, developing personal sales
skills, the sales interview, and high
tech selling.
Northwestern Banker, October, 1985


Promoted in Hecla
(Continued from page 35)
Gary D. Tostenson was promoted
agricultural banking officer at
mercial loan officer.
Mr. Hageman has been in the Norwest Bank South Dakota, Hecla.
Mr. Tostenson joined Norwest
bank’s accounting department since
Bank in Helca in 1983 as an agricul­
tural representative.
Promoted in Rapid City

SDBA Sponsors Seminars

Norwest Bank South Dakota,
Rapid City, has promoted Jon A.
Oien to personal banking officer,
Mary Pat Lehnert to personal bank­
ing officer and Mike Larson to per­
sonal loan officer.
Mr. Oien joined Norwest in 1983
as a management trainee and in 1984
became a personal banking represen­
Ms. Lehnert has been with Nor­
west since 1979 and has been in
various positions, including most
recently as personal banking repre­
Mr. Larson started with Norwest
in 1983 as a management trainee in
Belle Fourche. In 1984, he trans­
ferred to Rapid City as a personal
banking representative.

The South D akota Bankers
Association will sponsor an IRA/
Qualified Plan Seminar on October
22 at The Hilton, Rapid City and on
October 24 at the Ramada Inn, Sioux
The seminars are designed for IRA
officers, new account personnel, trust
department personnel, and all other
employees desiring to broaden their
IRA knowledge and expertise.
Presenters for the seminars are
Collin Fritz and Randy Heidmann.

Transferred to Mitchell
Norwest Bank South Dakota,
N.A. announced the transfer of Gary
Kramer, ag banking officer at Redfield to Mitchell as a credit officer.
Mr. Kramer joined Norwest in
Redfield in 1983 as an agricultural
banking representative.

The new NDBA advertising pro®
gram will concentrate its TV expo­
sure in prime time (7-10 p.m.) and
news programming to take advan­
tage of high viewership during th o s ^
times. This year’s campaign wil™
also focus on early morning pro­
gramming (7-9 a.m.) such as “Good
Morning America’’ “The Today
Show,” and “CBS Morning News.”^
The schedule of announcement wilP
air on all North Dakota television
stations in four-week flights from
September 1985 through May 1986.

N.A. Conversions Told


The Department of Banking and
Financial Institutions, Bismarck, re­
cently announced the following
banks have converted from state tc^
national banking associations: F irs *
State Bank of Cavalier to First
Bank Cavalier, N.A.; The First
State Bank of Park River to First
Bank Park River, N.A., and The~
(Continued from page 38)
First State Bank of Cando to F irs *
progresses to present day situa­ Bank Cando, N.A.
The Department of Banking and
tions. The announcer states that
“North Dakota is special country, Financial Institutions also an­
requiring a special kind of people to nounced the Paying and R eceiving
realize its full potential.’’ He goes on Station at Leonard of First Ameri­
to emphasize that North Dakota’s can Bank of Casselton opened in its
banks have helped, and continue to new office located within the city of
help, North Dakota’s people build a Leonard on July 19, 1985 and Liber­
ty State Bank, Powers Lake, rnoved^
better life in North Dakota.
The commercial’s patriotic thrust into new offices within the city of
is designed to show the strong rela­ Powers Lake on June 10, 1985.
tionship between North Dakota’s
progress and the commitment of its
In d ex o f
banks to that progress.

A d vertisers

Bank Building Corporation......................
Banker Plus, Inc..........................................
Bankers Trust Company, Des Moines . . .
Barclays American/Buslness Credit . .. .

Steve Sutton
For Complete (
Credit Insurance
Service . . .

Central Bank, D enver.....................................................40-41
Central States Health & Life Co., O m a h a ........................ 46
Chase Manhattan Bank, N.A............................................... 11
Data Business Equipment, Inc., Des Moines
Drovers Bank of C hicago..............................

Call Toll Free in Nebraska 800-742-7335

First Bank Minneapolis/St. Paul....................
First Interstate Bank, Denver........................
First National Bank, Lincoln..................
First National Bank, O m aha..........................
First Wisconsin B ank....................................

. . . .5
. . .42
. . .45

Gross, Kirk Company, Waterloo .....................

. . .67

HBE Facilities, St. Louis ..............................

or call collect 402-475-4061

Iowa Bankers Insurance & Services, Inc.......

. . .59

King Management Co., Des Moines..............

. . .62

Lincoln Benefit L ife ........................................

. . .70

MBU, Inc............................................................
Marquette Bank, Minneapolis ......................
Merchants National Bank, Cedar Rapids . . .
Northwestern Bell Telephone Co..................
North Central Companies, St. P a u l..............
Norwest Corporation, Minneapolis..............

. . .48
. . .28
____ 2
. . .72

Where BENEFIT is more
than a middle name

Office Concepts, Ltd., Waterloo....................

. . .65

Rand/McNally & Company, C hicago............

. . . .9

Lincoln, Nebraska 68508

Security Pacific Business Credit, Inc............

- 1#

United Missouri Bank, Kansas C ity ..............

. . .18

Steve W. Sutton

Bank Programs for
Vice President
Group*lndividual Life*Accident & Sickness




Valley National Bank, Des Moines

Banker, October, 1985
Federal Reserve Bank of St. Louis

. . .63


Compare For Yourself.
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In Minnesota call 800-792-1030
All other states 800-328-9117
Federal Reserve Bank of St. Louis


We know, because we were one of them. But since
we put our Profit Improvem ent Program into action in
1983, we have trim m ed the fat in our operation and
increased non-interest incom e by over 60% .
Now we can help trim the fat for you.
By exam ining your non-interest incom e and
expense areas we can help cut the fat out of your
operation — cutting your operating costs and
im proving income.
Unlike other profit im provem ent programs, we
also w ork together with your staff to help im plem ent
our program — in both unit and branch operations.
So you can be assured of achieving your profit goals.
To cut the fat out of your operation, contact your
Federal Reserve Bank of St. Louis

Norwest Client executive, or the Profit
Im provem ent Program staff at 612/372-5895.
And put the fat on your bottom line
where it belongs.

Financial Institutions Group
317 Second Avenue South—Suite 400
Minneapolis, MN 55479

H k H