Full text of The Northwestern Banker : October 1986, 93rd Year, No. 1477

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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Federal Reserve Bank of St. Louis

Jerry and his son, Brent, working together in preparation for the MNB Bike Races.

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If we're not your
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Federal Reserve Bank of St. Louis

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M em ber FDIC

STERN
OCTOBER 1986 • 93rd Year •

No. 1477

to

MEMBER OF AUDIT BUREAU OF CIRCULATIONS
MEMBER BANK MARKETING ASSOCIATION

OLDEST FIN A N C IA L JOURNAL SERVING THE CENTRAL AND WESTERN STATES

ON THE COVER
Historic, charming San Francisco, where thousands of natives and tourists alike
have left their hearts, will welcome bankers and spouses attending the American
Bankers Association annual convention October 25-29. ABA President Don Senterfitt and President-Elect Mark Olson are shown aboard one of the Bay City’s
most prominent landmarks—the San Francisco Cable Car, recently completely
overhauled and refurbished. In photo at bottom, officers of the Iowa Bankers As­
sociation for the coming year are, from left: Immed. Past Pres. J. Bruce Meri­
wether, Pres. Russell S. Howard, Pres-Elect Clair Lensing, Treas. Fred Hagemann
and Exec. V.P. Neil Milner. Coverage of the I BA Centennial Convention starts on
page 51.

FEATURES

11

ABA meets in San Francisco

Program for annual convention, October 25-29

14

Safe and sound

100 years of bank security—an Iowa Centennial feature

20

“You’ve come a long way, baby”

Women in banking—an Iowa Centennial feature
DEPARTMENTS
6 Dear Editor
27 Illinois
29 Wisconsin
31 Minnesota

32
35
41
42

49
51

Twin Cities
North Dakota
Nebraska
Omaha

70
74

South Dakota
Iowa Centennial
Convention Report
Des Moines News
Index of Advertisers

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

Associate Editors
Melinda Sauers

You need to know that same
expertise will be with you
through the entire building
process. Bringing your ideas
into reality. Doing the job
right. Finishing it on time...
and within budget.

| C > Bank Building
V | y Corporation

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

There are many viable
approaches to designing
a building. Only one is the
optimal solution to your
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To find that optimal solution,
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You need a rapid overview of
the options available to you,
supported with hard cost
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know your kind of business.
Know what it requires today...
and even more importantly,
know what it is likely
to require in the future.

Tax bill impact on banks

Peat, Marwick, Mitchell executives review new bill

16

First th e P e a c e o f M in d ...
then th e Financial
C om m itm ent

Diane Nelson

1130 Hampton Avenue
St. Louis, MO 63139
Call Tom Spalding at
1- 800 - 325-9573

No. 1477 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.

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Federal Reserve Bank of St. Louis

6

“Pleasantly Surprised”
“I was ever so pleasantly surprised to dis­
cover a reference to my 1950 University of
Iowa Master’s thesis in your September
issue. Although I have subscribed to your
magazine for over 30 years, I naturally read
with great interest the articles commemorat­
ing the 100th Annual Convention of the Iowa
Bankers Association because of that thesis.
When I wrote “A History of the Iowa Bank­
ers Association,” I spent countless hours
poring over the printed proceedings of the
Association’s conventions both in Iowa City
and in Des Moines. I received a lot of advice
and counsel, but my interview and other dis­
cussions with Frank Warner were probably
the highlights of my effort. He was such a ge­
nuine human being and the Association was
certainly blessed to have him at the helm for
so many years.
“In a way, I grew up in Iowa banking
because my father, H.E. Bell, was associated
with the First National Bank of Colfax for
over 60 years prior to his death in 1983. He
was a close personal friend of Frank Warner
as well as many other Iowa bankers at that
time. As a boy growing up in Colfax, I was in­
troduced to many Iowa bankers through my
father. After graduating from the University
of Iowa, I worked as an Assistant National
Bank Examiner for several years and, among
other states, I traveled to many Iowa cities
and towns. These contacts have been main­
tained to this day even though I have been
here in Rockford for 33 years.
Your magazine reminds me of how many
friendships I have developed because of my
association with the banking industry. Many
are active in Iowa banking even today—peo­
ple like Jack Rigler in Muscatine; Bud
Houghton in Iowa City; Rand Peterson and
Si Mathiasen of Harlan, both of whom were
fraternity brothers in Iowa City; Gene Hagen
of Sioux City, who was a fellow student at
the Stonier School; Max Roy and Cy Kirk,
and John Chrystal, with whom I had dinner
here in Rockford with his relatives just
within the past year. I am sure I have over­
looked others.
“I am currently enjoying a term as a Direc­
tor of the Illinois Bankers Association and in
discharging my Association responsibilities,
I have often referred to the Iowa bankers for
the outstanding job done on behalf of the in­
dustry. You are going through difficult times
but I have no doubt the leadership and the
determination of bankers throughout the
state will see the industry through this crisis
as they have over the past century.
“Should you reprint this letter for what­
ever readership interest it holds, I send
greetings to my banker friends. ‘GO
HAWKS!” ’
Sincerely yours,
Howard E. Bell, Jr.
Chairman
First Community Bancorp, Inc.
P.O. Box 4900
Rockford, Illinois 61110
DigitizedNorthwestern
for FRASERBanker, October, 1986
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Federal Reserve Bank of St. Louis

“More Than Meets the E y e "
“In regard to the feature article, ‘Land
Bank Sets New Loan Rates, ’ in your Septem­
ber 1 Weekly Newsletter, I would like to pass
along for your information that the cost of
Federal Land Bank stock is 6%, not 5% for
present borrowers. The past couple of years
the stock has been retired down to 6% of loan
on October 1.
“However, most payments are made in
December, January or February, so for most
of the year the borrower has more than 6%
stock. For example, if a farmer borrows
$100,000 gets $95,000 and has $5,000 stock,
he’s at 5%. If he pays down to $50,000 during
the year, his $5,000 in stock then becomes
10%!

“Also, stock retirement on October 1 is not
required. With the Land Bank’s problems, I
doubt the Farm Credit Administration will
allow them to retire down to 6% this October

1.

“Land Bank’s announcement further says
‘borrowers will receive an additional .25 per­
cent reduction from their new individual
rates if they use the PCA of the Midlands as
their primary lender for short or intermedi­
ate-term credit! Big deal! Being a borrower
costs 10% stock, i.e., it adds over 1% to
costs. The 12.75% Land Bank rate (Class B,
lowest rating) actually becomes 14.16%, or
12.75% minus .25% becomes an actual
13.88% rate. Also, the borrower’s stock could
be frozen or lost!
“Using Land Bank’s announced new rates,
here is how they actually look when reflect­
ing 5% or 6% stock held by the borrower:
Int. Rate
5%
6%
10.50
11.053
11.170
11.25
11.842
11.968
12.25
12.895
13.032
12.75
13.421
13.564
“Farmers should be aware of what their
total cost is at the Land Bank when compar­
ing it to their local bank’s up-front rate.”
A Nebraska Banker

ty. He will be operating out of the
Chicago regional office and will b #
serving specific accounts in metro­
politan Chicago.
United Missouri Bancshares^
Elected Two New Directors
The board of directors of United
Missouri Bancshares, Inc., Kansas
City, has elected William B. Kessinger and Willard B. Snyder to t h ^
board.
Mr. Kessinger is chairman of the
board of Kessinger/Hunter Com­
pany, Inc., a commercial real estate
brokerage and property manage®
ment firm located in Kansas City.
Mr. Snyder, a Kansas City attor­
ney, also serves as the West German
Consul (H) representing Kansas ancL
Western Missouri and is p re sid e n t
of the Real Estate Corporation, Inc.
of Kansas City, Kansas.

First Wisconsin Unit
•
Buys Illinois Card Firm
Elan Financial Services, Milwau­
kee, Wis., has purchased the credit
card portfolio of Premier Financial#
Services, Freeport, 111., the two orga­
nizations announced last month.
Elan is a division of the First Wis­
consin National Bank of Milwaukee.
It is about the 20th largest bank#
credit card issuer in the nation. Pre­
mier is a bank holding company
based in Freeport, 111. It owns seven
***
banks in six counties, including the
First National Bank of Freeport. #
Editor's Note: Another Nebraska banker
telephoned to obtain further information
The transaction involves about
about MASI’s announcement in the Septem­ 8,000 accounts and $4 million in re­
ber 22 Weekly Newsletter of its offering of a
first mortgage and secondary market for ceivables. The sale is effective Octo­
long-term ag real estate loans. He com­ ber 31, 1986. The purchase price was
mented also on Land Bank’s new rates (dis­ not disclosed.
II
cussed above) and stated:
Premier Chairman H.L. Fenton
“We have had a number of Land Bank bor­
said Premier was selling its receiv­
rowers contact us, as they have many other
banks, to transfer their borrowing or to open ables because it could more profit­
up new Unes of credit or, as in many cases, re­ ably deploy its resources in other
open credit they left behind for the FLB.
areas of its growing business. H e#
They are finding that if they transfer to their
said Premier’s customers would
local commercial bank today and continue
paying the same amount of total payment to benefit from the sale because Elan
charges a lesser interest rate than
the local bank as they were making to the
Land Bank, then at lower bank rates that
Illinois-based credit card issuers and
same amount will retire their debt in about
offers several other economic advan-l
half the time, which means they are re-build­ tages. Premier will continue to offer
ing equity faster!”
Master Charge and Visa cards,
through Elan.
Bill W. Dixon, chief executive
Joins LeFebure Staff
officer of Elan, said the agreement^
Jim Gondela has been appointed represented a major step forward in
sales engineer for LeFebure, Cedar Elan’s extension into the Illinois
Rapids, la., a major manufacturer of market where Elan currently issues
security equipment and electronic credit cards for the customers of 54
systems for the financial communi­ Illinois financial institutions.

It is the one essential element in every
successful financial relationship.
Trust is confidence earned.
It is shared involvement.
It grows in an environment of mutual
understanding, from promises kept,
from the integrity and perseverance
behind every difficult task done well.
The Bank Building Corporation
No-Risk Agreement is a statement
of mutual trust. It is a statement of
our faith in our ability to meet
problems with solutions.

a -*

No Risk means just that.
No surprises. Promises kept.
It is the stuff from which
trust is made.

| C ^ Bank Building
' J . ' Corporation
1130 Hampton Avenue
St. Louis, MO 63139
Call Tom Spalding at

1-800-325-9573


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Federal Reserve Bank of St. Louis

Plus System Launches Ad Campaign
LUS System, Inc., the leading
P
international network of shared
automated teller machines (ATMs),

that has made Plus System, Inc. the
premier shared ATM network in
North America and beyond. The net­
work now serves nearly 65 million
holders of bank cards and credit
cards issued by over 1,500 partici­
pating financial institutions in the
United States, Canada, Japan, Puer­
to Rico and the United Kingdom.
Cardholders obtain cash at more
than 10,000 ATMs, making far more
transactions monthly than any com­
peting network.
The testimonial ads, said Mr.
Browning, highlight the security
standards, technological expertise,
reliability and convenience that
have gained such widespread accep­
tance for the network.

has inaugurated an aggressive new
advertising program to enroll addi­
tional financial institutions as par­
ticipants.
With “Who’s the ATM Network
Leader?” as an overall theme, the
campaign has been running monthly
since June in major banking maga­
zines, and features testimonials be­
ginning with September 1986
issues.
The first series of testimonial ads
target the three key industry seg­
ments — commercial banks, savings
and loans and credit unions. Execu­
tives from InterFirst Bank of Dal­
las, Capitol Federal Savings of Den­
ver, and Campbell Soup Company’s
Federal Credit Union are featured,
giving reasons why they chose Plus United Missouri Announces
System, Inc., as their national ATM Illinois Acquisition
network.
United Missouri Bancshares, Inc.
D. Dale Browning, the network’s has signed an agreement in principle
president, said the trade ad program to purchase FCB Corporation, a
adds momentum to the expansion multi-bank holding company head­


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Federal Reserve Bank of St. Louis

quartered in Collinsville, 111. FCB
Corporation has assets of approxi­
mately $160 million and owns three
banks with five locations. The three
banks are: First National Bank of
Collinsville, First County Bank of
Maryville and First State Bank of
Morrisonville.
The agreement provides that
United Missouri will purchase for
cash and promissory notes 100 per­
cent of the stock in FCB Corpora­
tion. The value of the transaction
based on anticipated figures at yearend 1986 is approximately $28 mil­
lion.
“The acquisition of the three FCB
banks will provide our Company
with a strategic market presence in
southern Illinois,” R. Crosby Kem­
per, chairman of the board and chief
executive officer of United Missouri
Bancshares, Inc., said in announcing
the purchase agreement. “Further­
more, First National Bank of Col­
linsville is one of the largest banks
in the St. Louis’ Metro East area
and gives our company a strong pre­
sence in that growth area. These
banks have served their communi­
ties well, and we look forward to the
challenge of continuing to provide
quality and innovative services to

9
their customers and the markets
9 they serve.

“This acquisition allows our com­
pany to take advantage of the
growth opportunities provided
through recently enacted interstate
0 b a n k in g le g is la tio n . G row th
through the acquisition of such
quality financial institutions will
allow United Missouri to continue
its good track record of performance
# for our shareholders.”
The acquisition is subject to the
execution of a definitive agreement
and requires approval by state and
federal regulatory agencies.
•
First W isconsin Sponsors
TYME Treasure Hunt
9
First Wisconsin has hidden trea­
sure in TYME machines at more
than 30 metro Milwaukee locations
during the First Wisconsin TYME
Treasure hunt that began Septem• ber 8 and runs through October 31.
Participants could win one of
more than 4,000 cash prizes if they
receive a pre-printed receipt stating
that they have won $5, $10, $50,
# $100 or $500. Cash prizes total
$25,000. To qualify, contestants are

limited to three receipts per day
from any completed TYME transac­
tion: deposits, cash withdrawals,
loan and charge card payments.
Contestants also may without
making a TYME transaction by
writing in and requesting a facsimile
receipt. The treasure hunt is open to
anyone 18 and older, excluding First
Wisconsin employees and their im­
mediate families.
A treasure hunt map and com­
plete contest rules, including writein details, are available at metro Mil­
waukee First Wisconsin locations.

Life Company Expands
Employers Modern Life Com­
pany, Des Moines, la., the life insur­
ance subsidiary of EMC Insurance
Group Inc., has announced the for­
mation of Employers Modern Life
(EML) Marketing Services, Inc.
EML Marketing Services, Inc.
will serve as a general agency owned
by Employers Modern Life Com­
pany, to provide agents with cover­
ages not currently offered by the
company, but contracted from other
companies.

L.F. Rothschild Firm
Analyzes New Tax Law
The New York-based bank con­
sulting firm of L.F. Rothschild, Unterberg, Towbin, Inc., has provided
an analysis of the new federal tax
law as it was prepared for final pass­
age, appearing in the company’s
September issue of Bank Service
AdvisoryR Newsletter.
In the special report, Brian B.
Glenn, the company’s senior vice
president and in-house tax and ac­
counting consultant, has analyzed
the bill and provided a summary of
several provisions impacting com­
munity banks. After reviewing the
corporate tax rate structure, the
newsletter deals with aspects of the
new tax bill that cover Net Operat­
ing Losses, Loan Loss Reserves,
TEFRA Interest Disallowance, Cor­
porate Minimum Tax, Cash Basis
Reporting and other important
changes. Each section compares the
1986 law with current law.
Additional copies of the Bank Ser­
vice AdvisoryR newsletter may be
obtained from L.F. Rothschild, Unterberg, Towbin, Inc. at 55 Water
Street, New York, N.Y. 10041 (212)
412-2600.

We don’t m ean to make a big deal out of
a phone number. But this one is different.
First of all, it’s free. Doesn’t cost a dime to
call. Secondly it’ll put you in touch with a
Drovers correspondent banker. Which
could be the start of a very rewarding
relationship. After all, Drovers is well
known for the personal attention and
assistance it gives to correspondents
in matters like acquisition financing,
investments, check processing, trust ser­
vices and overlines. So, at all costs, call
John Crotty or Kathy Hardy at Drovers. In
Illinois, phone 1-800-572-2498.

8991

R / Drovers Bank

of Chicago

47th & Ashland Ave., Chicago, IL 60609 1-312-927-7000
MEMBER OF THE FEDERAL RESERVE SYSTEM AND ED.I.C.

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Federal Reserve Bank of St. Louis

A Cole-Jaytor Bank

W ho’s the ATM network leader?

“We looked at all of them and
chose the Plus System* network.”
“We were introducing a new
debit card that we wanted to
tie into a national ATM
system,” cites William C.
Nelson, executive vice
president of InterFirst Bank
of Dallas.
“It was critical for us to be
able to issue these new cards
to our customers as soon as
possible. The Plus System®
network’s technology and
expertise proved to be what we
needed to meet our objectives.
“Another important factor
in our decision was the inter­


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Federal Reserve Bank of St. Louis

national scope of Plus System,
Inc. which is unique among
ATM networks,” reports Mr.
Nelson. “InterFirst customers
like to travel and now with Plus
System®ATMs in England,
Scotland, Wales, Northern
Ireland, Puerto Rico and Japan,
as well as the U. S . and Canada,
they have safe, reliable access
to their funds on a truly world­
wide basis.”
Isn’t it time your financial
institution joined the Plus
System® network— the
premier choice for international
ATM sharing?

For complete information
regarding membership, please
contact your local Plus
System® member, or call
Plus System, Inc. at
(303) 573-7587.

'W !System
lu s
The premier choice.

DON G. SENTERFITT
President

MARK OLSON
President-Elect

THOS. P. RIDEOUT
Treasurer

DONALD G. OGILVIE
Exec. V.P.

1986 ABA Annual Convention
O ctober 25-29, 1986
IÎÉTT HE FUTURE OF BANKING” will be a comI mon theme threading its way through the
American Bankers Association’s 1986 annual conven# tion October 25-29 in San Francisco. All general ses­
sions, workshops and extensive exhibit center will be
available at the big Moscone Convention Center.

•

Saturday, October 25
A.M.
8:30 Grand opening ceremony.
9:00 Exhibits open.
10:30 Concurrent sessions:
1. Effective Use of Bank Holding Companies
2. The Impact of the New Tax Bill
3. Planning for Banking in 1990
4. Organized Labor in Banking
5. Legislative/Regulatory Update
P.M.
1:45 Concurrent sessions:
1. How to Negotiate a Bank Merger or Acqui­
sition
2. Employee Stock Option Plans
3. Transition in Agricultural Banking
4. Developing a Sales Culture
3:15 Concurrent sessions:
1. The Critical Buy/Sell Decision
2. Proven Techniques to Improve Earnings
3. Developing a Strategic Marketing Training
Plan
4. Bank Capital Planning
Sunday, October 26
A.M.
8:45 Fellowship Gathering.


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Federal Reserve Bank of St. Louis

10:30 Government relations forum—Participants in­
clude four U.S. House Banking Committee
members: Doug Barnard (D-GA) and three
Californians—David Dreir, Rick Lehman, and
Norm Shumway.
10:30 Concurrent sessions:
1. Loan Review Issues
2. Is There Life After Interstate Banking
3. Increasing Investment Spread
4. Personnel Issues After the Acquisition
P.M.
6:00 ABA Reception, Civic Auditorium
Monday, October 27
A.M.
8:00 Exhibits open.
8:30 General session:
Address by ABA President Donald T. Senterfitt, vice chairman, SunTrust Banks, Inc., Or­
lando, Fla.
Election of ABA officers
Banking panel featuring Morgan Guaranty
Chairman Robert Lindsay, BancOne President
John McCoy, First Interstate Chairman
Joseph Pinola, and First National Bank
(Petersburg, IL) President Randall Killebrew
Address by columnist George Will
P.M.
1:45 Concurrent sessions:
1. The Role of Bank Directors
2. Dialogue with the Federal Reserve Board
3. Bank Closing—Purchase and Assumption
3:15 Concurrent sessions:
1. Making or Responding to Acquisition Offers
Northwestern Banker, October, 1986

12

GEORGE WILL

L. WM. SEIDMAN

STANSFIELD TURNER

2. Top-Down Vision During the Restructuring
Decade
3. Marketing Bank Services to Small Business
4. Dialogue with the Federal Deposit Insur­
ance Corporation
Tuesday, October 28
A.M.
8:00 Exhibits open.
8:30 General session:
Address by Coca Cola Company Chairman
Roberto Goizueta.
Installation of ABA officers.
Address by new ABA President Mark Olson,
president, Security State Bank, Fergus Falls,
Minn.
Address by ABA Executive Vice President
Donald Ogilvie.
Address by FDIC Chairman L. William Seidman.
World affairs panel featuring former CIA Di­
rector Stansfield Turner, former National
Security Affairs Assistant Brent Scowcroft,
U.S. Senator Nancy Kassebaum (R-KS) and
U.S. Senator John Kerry (D-MA).

San Francisco Sights
Have Exciting Past
By MARK S. SEREPCA
Manager, Public Relations
American Bankers Association

Northwestern Banker, October, 1986


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Federal Reserve Bank of St. Louis

Gateway to Chinatown

HENRY KISSINGER

P.M.
1:45 Concurrent sessions:
1. Strengthening Community Banks’ Earnings
Potential
2. Differentiating Your Bank Through Mer- %
chandising
3. Dialogue with the Office of the Comptroller
of the Currency
4. Economic Outlook
3:15 Concurrent sessions:
#
1. Loan Documentation
2. Making the Asset/Liability Committee
More Effective
3. Managing Change and Corporate Culture
6:30 ABA Reception, Concourse.
•
Wednesday, October 29
A.M.
9:00 General session:
Address by Comptroller of the Currency
Robert Clarke.
Address by international affairs consultant
Henry Kissinger.
10:30 Convention adjourns.
□

Golden Gate Bridge: Completed in
1937, this span of more than 4,200
feet took 41/2 years to build. At the
mid-point, the roadway is 220 feet
above the water to allow naval bat­
tleships and other large ocean-going

ANY of San Francisco’s popu­
M
lar tourist attractions have a
fascinating history. When you visit
these sites during your trip to the
1986 ABA Annual Convention, re­
member:
Ghiradelli Square: During the
Civil War, this was the site of a
woolen mill. Later, a chocolate fac­
tory was constructed there. The
renovation that turned the site into
today’s mecca for shopping and din­
ing was completed in 1967.
The Cannery: in 1909, the Del
Monte Fruit company constructed a
peach canning plant. The threestory complex that exists today is
the result of 1968 remodeling.

ROBERT L. CLARKE

vessels to pass beneath.
Fort Point: Located under what is
now the southern end of the Golden
Gate Bridge is a Civil War fort.
Built in 1853 to guard San Francisco
from sea attack, the fort now houses
a museum containing swords, guns,
cannons, uniforms and early photographs. There are guided tours and
cannon loading and firing demon­
strations.
North Beach: Now the site of San
Francisco’s “Little Italy,’’ this area
really was a beach until it was
turned to landfill years ago.
Cable Cars: The first San Francis­
co cabel car trip was made on August 1, 1873 and was only five blocks
long. The system was invented by
Scottsman Andrew Hallidies, who
designed mine cables during the
Gold Rush.
The Cable Car Museum: Visitors
can see the winding wheels that
SAN FRANCISCO. . .
(Turn to page 49, please)

w

^

®

®

_
®

^

^

13

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

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

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

M ick Aslin
President
United Missouri Bank
of Kansas City, n.a.
United Missouri
Bancshares, Inc.

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

All nine 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.

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

D ick Brooks
Executive
Vice President
United Missouri Bank
of Kansas City, n.a.

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

Matt Grzybinski
Vice President
United Missouri Bank
of St. Louis, n.a.

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

UNITED MISSOURI BANKS
Members FDIC

U nited w e grow.Together.
Kansas City
10th & Grand-P.O. Box 419226
Kansas City, Missouri 64141-9946
(816)556-7000


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

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

Northwestern Banker, October, 1986

14

Revenue neutral and
tax simplification

Tax Bill Impact on Banks
Written especially for
T he N orthwestern B anker

By SUKU V. RADIA, Partner
and
KELLY McCARTY, Manager
Peat, Marwick, Mitchell & Co.
Des Moines, la.

Tax Rates
The top corporate tax rate will be reduced from 46
percent to 34 percent, effective July 1,1987. The agree­
ment also reduces the number of income tax brackets
from five to three. Future corporate rates are com­
pared to current rates below:
Taxable Income
Current Rate
New Rate
0-$25,000
15%
15%
$25,000-$50,000
18%
15%
30%
$50,000-$75,000
25%
$75,000-$100,000
34%
40%
Over $100,000
34%
46%
A 5 percent surtax will be imposed on taxable in­
come between $100,000 and $335,000, effectively
eliminating the benefits of the lower bracket amounts.
Once taxable income exceeds $335,000, a flat rate of 34
percent will be imposed on all taxable income.

Investment Tax Credit
SUKU RADIA

KELLY McCARTY

ATE on the evening of August 16,1986, the HouseL
Senate Conference Committee agreed upon his­
toric tax legislation expected to become the Tax Re­
form Act of 1986. This completed a lengthy legal and
political process that began in 1984 with Treasury Pro­
posal I. At the time of this writing, committee staff
members were ironing out final details and drafting
the actual bill language. The agreement is revenue neu­
tral, meaning the amount of taxes raised before and
after the bill will remain relatively constant. The agree­
ment, however, redistributes a significant portion of
the tax burden from individuals to corporations. While
the agreement places a greater tax burden on corpora­
tions than before, it reduces the corporate tax rates. In
order to increase the corporate tax burden, deductions
and creditors will be limited or eliminated under the
agreement. One of the industries that will bear the in­
creased tax burden is the banking industry.
Northwestern Banker, October, 1986


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

The agreement repeals the investment tax credit for
property placed in service after December 31, 1985. In
this regard, the investment credit repeal is retroactive.
Some relief is provided by allowing a taxpayer with an
investment tax credit carryover after December 31,
1986, to utilize 65 percent of this carryover against
future tax liability. It is expected that the reduction
will be 17.5 percent for 1987 and 35 percent in succeed­
ing years. If a bank is currently in an investment tax
credit carryover position, tax planning should be con­
centrated on generating enough taxable income during
1986 to enable it to use its available carryover and
avoid losing a portion of the carryover in future years.

Alternative Minimum Tax
The agreement not only affects the rate of tax but
the computation of the tax as well. It replaces the
existing corporate add-on minumum tax with an alter­
native minimum tax similar to that imposed upon indi­
viduals. A bank will be required to compute its tax

liability under the normal rules and under the new al­
ternative minimum tax rules; it will pay the higher of
the tax calculated under these two methods. For alter­
native minimum tax purposes, a bank will be taxed at
a rate of 20 percent on its alternative minimum taxable
income exceeding $40,000. The $40,000 exemption will
be reduced (but not below zero) by 25 percent of the
amount by which alternative minimum taxable income
exceeds $150,000. Alternative minimum taxable in­
come will be computed by adding to regular taxable in­
come certain “tax preference’’ items and by adjusting
regular taxable income by computing certain items
under special rules that negate the acceleration of their
benefit under the regular tax.
The agreement adds several new preference items to
the calculation. The items having the most dramatic
effect on banks are:
• accelerated depreciation on all property (including
personal property) placed in service after 1986,
• tax-exempt interest on nongovernmental purpose
bonds issued after August 7, 1986, with certain excep­
tions,
• and one-half of the excess of pre-tax book income
over other alternative minimum taxable income.
Under this last preference item, a bank’s book in­
come will be the book income it reports to the various
regulatory authorities. The pre-tax book income item
will have the greatest effect, because it includes all taxexempt municipal bond interest regardless of when the
underlying security was purchased. The alternative
minimum tax will make income tax planning much
more complex.

Effect on Tax-Exempts
In recent years, more stringent limitations have
been imposed upon nongovernmental purpose bonds
due to Congress’ growing concern over the large
volume of tax-exempt bonds issued for nongovernmen­
tal activities. The agreement imposes additional limits
on the use of proceeds, restricting their volume and re­
quiring additional reporting requirements. Effectively,
the agreement continues the trend of making taxexempt bonds for financing private sector projects
harder to obtain and more costly. Tax-exempt bonds,
issued by or on behalf of state or local governments to
finance their traditional activities, will generally not be
affected.
The Tax Equity and Fiscal Responsibility Act
(TEFRA) of 1982 limits a bank from deducting a
percentage of its interest expense deemed to be used to
carry tax-exempt bonds. The new agreement builds
upon the TEFRA rationale and jumps the disallow­
ance percentage from 20 to 100 percent for tax-exempt
bonds purchased after August 7, 1986, effective for
taxable years ending after December 31, 1986. Thus, a
calendar year bank which purchases tax-exempt bonds
after August 7, 1986, to December 31, 1986, will be
subject to a 20-percent disallowance factor for 1986,
but will be burdened with a 100-percent disallowance
factor in 1987 and thereafter on these bonds. Bonds
issued by a small municipal issuer are exempt from the
100-percent disallowance factor.

Bad Debt Reserve
Effective for tax years beginning after December 31,

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Federal Reserve Bank of St. Louis

1986, the bad debt reserve method will be repealed for
banks that have for the taxable year, or any preceding
taxable year, total average assets during the year ex­
ceeding $500 million. For banks that are members of a
controlled group eligible to file a consolidated income
tax return, this test will be computed on the basis of
the entire group’s total average assets. Consequently,
only the specific charge-off method will be allowed for
banks exceeding $500 million in assets. A bank which
falls under this provision will be required to recapture
its existing bad debt reserve into income as follows: 10
percent in 1987, 20 percent in 1988, 30 percent in 1989,
and 40 percent in 1990.
Temporary relief from this provision is granted to
troubled banks with nonperforming assets exceeding
75 percent of capital. As an alternative to the fixed per­
centage recapture, a bank will be able to elect to recap­
ture 100 percent of its bad debt reserve in the first year
the reserve method is disallowed. This may be an at­
tractive alternative for banks with expiring net operat­
ing loss carryovers. Then, as now, the percentage-ofloan method for computing reserve additions expires
after 1987.

Conversion to Accrual Accounting
For tax years beginning after December 31, 1986,
many banks will no longer be entitled to use the cash
receipts and disbursement method of accounting for
tax purposes. The agreement requires banks which
have average annual gross receipts for the three pre­
ceding taxable years, exceeding $5 million, to convert
to the accrual method of accounting for tax purposes.
The income adjustment necessary to convert to the ac­
crual method of accounting will be spread over a period
of up to four taxable years. This provision and others
under the agreement will limit a bank’s ability to ade­
quately plan its taxable income position. Tax planning
will take on even more prominence in other areas to
overcome the effects of this provision.

Loss Carryback, Carryover
Currently, banks are entitled to carryback net oper­
ating losses 10 years and carryover net operating
losses five years. The agreement places banks under the
same rules governing other corporations by shortening
the available carryback period to three taxable years
and extending the carryover period to 15 taxable
years. This change will be effective for losses incurred
in taxable years beginning after December 31, 1986.
A bank which has potential tax refunds available from
the prior 10 years may find it advantageous to maxi­
mize any possible net operating loss before this provi­
sion becomes effective. This will enable it to recover
taxes paid in years that may no longer be recoverable
because of the shorter carryback period. The 10-year
carryback will still be available for the portion of a
bank’s net operating losses attributable to bad debt
losses incurred in taxable years beginning before 1994.
As is always the case in politics, these provisions are
subject to change by the staff members and the com­
mittee members who reconvened on September 8,
1986; however* major changes are not anticipated at
this time. The next political quest to be addressed by
Congress is the budget-deficit issue which may lead to
further tax “ simplification ’’ in the near future.
□
Northwestern Banker, October, 1986

16

Safe and Sound
100 Years of Bank Security
By
DIANE NELSON
Associate Editor

PECIAL skills were required of mid western bank­
S
ers in the 1880’s. One George C. Smith, who ran
the bank in Buffalo Gap, S.D., kept his shooting skills
in good form. Mr. Smith slept in his bank every night,
with a shotgun at the foot of the bed and a sixshooter
under his pillow. One night he awoke to voices outside
the window—a pair of would-be burglars.
“Well, what do you think of it?” asked one.
“I t ’s ripe to pick,” replied the other.
“No it ain’t!” cried George Smith, and proceeded to
shoot from the window at the men as they fled in ter­
ror.

An Association Approach
This single-handed approach to bank protection was ®
courageous, but not the most effective way of dealing
with the serious threat of robbery in the early years of
Iowa banking. The Iowa Bankers Association realized
during the first years of its existence that this problem
was best dealt with by banks in cooperation. In 1897 ®
the IBA voted to provide a $500 fund for prosecuting
defrauders and forgers, and was the first state associa­
tion to do so. The IBA also disseminated information
for robbed banks and cooperated with other states in
apprehending criminals on the lam. In 1903 the asso- ®

THe Burglar A larm Did Its W ork W ell
BANK

BURG LARS CAPTURED.

S i oux C i t y l a . , D e c . 1 . — An u n s u c c e s s f u l a t t e mp t
w a s ma d e to rob t he ba n g at Au r o r a , S. D . , this m o r n ­
i ng, E l e c t r i c A l a r m s we r e s ounde d a nd t wo b ur gl a r s
we r e c a pt ur e d, one of t h e m be i ng shot t wi ce in t he leg.
T b e a l a r m a w o k e H e n r y K e l s e y , cashi er , wh o hur r i e d
to the b a n k wi t h a rifle. T h e b u r gl a r s tri ed to e s c a pe ,
g o i n g t owa r d Br o o k i n g s . K e l s e y shot one, a nd he
c r a wl e d into a s t r a w st a c k.
T h e ot he r bu r g l a r c a me
to t own a nd g a v e h i ms e l f up, t e l l i ng wh e r e hi s c o m ­
pa n i on wa s h i di ng, a nd he wa s also c a pt ur e d.

T h i s c l i p p i n g s i m p l y i l l us t r at e s t he effi ci ency of a g ood e l ect ri c s y s ­
t em as t he sa i e s t f orm of b a n k pr ot e c t i on a g a i n s t b u r g l a r y . No bank is
sa f e n o w a d a y s wi t ho ut one, as t he r ecord of ov er 500 s uc c e s s f ul bank r o b ­
beri es in 1902 proves. T h i c k s t e e l vaul t s a nd sa f e s are no l o n g e r i n v u l n e r ­
abl e to the mo de r n c r a c k s m e n A g ood e l ect ri c s y s t e m —as e x e mpl i f i e d in
our A u t o m a t i c E l e c t r i c V a u l t a n d S a f e P r o t e c t i o n S y s t e m —is the
onl y sure w a y to st op Mr. B u r g l a r .
T h e r e are ot her s y s t e m s of course,
but none t hat are pos i t i ve l y g u a r a n t e e d in wri t i ng, to be u n de f e a i a b l e ,
as ours is. A n d n o n e to e q u a l it in s i mpl i c i t y , s a f e t y a nd efficiency. It
c ost s but 25 per ce nt of ot he r s y s t e m s , a nd ne e d s no e x p e r t care, either,
af t er i ns t al l at i on. N o bank, h o w e v e r smal l , can afford to risk be i ng
b u r gl a r i z e d w h e n this s y s t e m is wi t hi n t hei r reach.
W r i t e us about it.

A M E R I C A N B A N K . P R O T E C T I O N C O .,
Northwestern Banker, Feb. 1903
Northwestern
Banker, October, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M IN N E A P O L IS , MINN.

HENRY L TOLMAN,

MICROSCOPIST.
Microscopical and Chemical Exam ina­
tions of Forged or Altered Documents; of
adulterations of Food, and of Blood Stains,
Textile Fabrics, Woods and Minerals. Pho­
tographs and Enlargements made when
desired.
ROOM 929, CHICAGO OPERA HOUSE BUILDING.

C h ic a g o .
Northwestern Banker, Nov. 1902

ciation established a standing reward of $1000 for
anyone aiding in the arrest and prosecution of burg­
lars. Descriptions and warnings of robbers and swind­
lers were distributed (but to IBA member banks only!).
At the turn of the century bankers also pooled their
resources by making use of burglary insurance. Bank­
er’s Mutual Casualty Co. of Des Moines, founded in
1896, was one such company. In 1907 the IBA estab­
lished burglary insurance for its members.
Of course, prevention was considered the preferred
approach to robberies. Bankers were universally ap­
palled by their frequency, almost daily in Iowa alone;
reports of crimes were listed every month in the
N orthwestern B anker . “Who’ll Be the Next?” in­
quired a headline in November, 1902, listing examples
of thefts across the country. “Oct. 28—Prairie City
Bank robbed...no clue...Oct. 29—The vault of the pri­
vate bank of Charles K. Knapp at Sodus, N.Y. was
broken into with dynamite...the building was wrecked...
Nov. 1—The Smithfield, Neb. Bank was robbed of
$1000, presumably by two men who have been hanging
about for the last few days...Nov. 6—Robbers blew
open the safe of the Tampa, Kansas State Bank and
took about $3,800 in currency; escaping in a hand car.”
Better Safes and Alarms
In the early days, the bank protection battle often
revolved around the safe. At first “punching the com­
bination” would be enough for a burglar to gain access
to a safe’s contents. Sturdier safes thwarted this ap­
proach. In 1890 black powder was developed, followed
by dynamite and later nitroglycerine, a terrific tool for
the safecracker. Banks countered again with tougher
materials and the advent of the roundscrew door. Rob­
bers then turned to the cutting torch and finally combi­
nation approaches. The cash incentives of their trade
seemed always to spur the bank burglars’ ingenuity.
The turn of the century development of the burglar
alarm was another answer. The N orthwestern
B anker sang the praises of this device, “which not on­
ly scares the burglars away, but brings the police.” Un­
fortunately, it was not the answer for all banks; it was
“beyond the reach of bankers outside of the larger cit­
ies because many towns were not supplied with electri­
city.” Fortunately, in 1902 the American Bank Protec­
tion Company of Minneapolis developed a model which
provided its own electricity.
Of course, the final weapon against bank robbers,
harking back to George Smith and his sixshooter, was
the efforts of bankers themselves. Their courageous re­

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

taliation against crooks discouraged crime, but some­
times the price was high. In 1902 the IBA’s efforts
were directed toward collecting a fund to aid the widow
and children of one John Sunblad, who lost his life cap­
turing a pair of robbers. The two were sentenced to
death.
Prosecution Was Difficult
The capture and prosecution of robbers and swind­
lers was another matter of great concern. In 1909 the
IB A employed a special detective to carry out this
work in several area states, and then in 1911 it hired
the W.J. Burns Detective Agency to handle its protec­
tive work. Agents patrolled Iowa constantly. A legal
representative was employed in 1913, and later two
more were added. Legal staff was important, for crimi­
nals frequently escaped prosecution on technicalities.
The latest technological developments were applied
to the science of capturing and prosecuting criminals.
At the turn of the century the use of the newly de­
veloped microscope for such tasks as detecting forger­
ies was considered a marvel. Then, in 1912, the Ameri­
can Bankers’ Association issued a pamphlet proclaim­
ing the benefits of the new fingerprint method. The
common practice of drawing on a pilfered passbook
was squelched by use of this technique; many banks
began taking fingerprints with every new account.

W. J. BURNS
“The Great Detective”
Recently Employed by the Iowa Bankers
Association to Take Charge of Its Pro­
tective Work. The American Bankers
Association Employs Mr. Burns
in a Similar Capacity.
Northwestern Banker, Feb. 1912
Northwestern Banker, October, 1986

Despite all efforts, the epidemic of robberies and
swindlers worsened in the 1910’s. An organized force
of men to combat crime was called for. The IB A coop­
erated with several other agencies in securing a state
mounted police force, but it didn’t stop there. The
twenties ushered in the era of the famous Vigilance
Committees.
Here Come the Vigilantes!
In 1921 the 99 county banking associations were or­
ganized, and with them, a vigilance committee was es­
tablished for every city and town in Iowa. The state
was unique in this regard. Every town with a bank had
at least four men appointed as deputy sheriffs; every
county offered at least $1000 reward for aid in appre­
hending criminals. The statewide team consisted of
3800 members, armored cars, radio, barricades for
roads, and a network of alert telephone operators and
farmers. Iowa was the only state to have its robbery in­
surance rates lowered (by 14%) and, understandably,
other states began imitating the Iowa system. Ameri­
can insurance companies began offering 10% discounts
in rates for banks in counties with vigilance commit­
tees like those in Iowa.
As early as 1924, the IBA made use of Des Moines
radio station WHO to broadcast news of bank robber­
ies. The association saw the need for a low wave police
radio system exclusively dedicated to the dissemina­
tion of information about criminals. The first such sys­
tem in the country was begun by the IBA in 1931,
when a transmitter was set up at the association’s of­
fices in the Library Building in Des Moines. The IBA
transferred the system to the State of Iowa in 1937.
Iowa bank robberies peaked in the year 1920-21 at
56. The effectiveness of the Vigilantes can be seen in
the fact that from 1922 to 1924 Iowa had only eight
robberies. Between 1920 and 1925, 103 bandits were
apprehended and sentenced to jail. By 1938 bank theft
was so infrequent that some suggested the Vigilance
Committees be abolished. Nevertheless, some counties
still had them even a decade later.
The IBA also made a name for itself during this
period in regard to the rash of “blue sky traffic”—un­
scrupulous securities salesmen. Such men had bilked
Iowans out of millions of dollars. The association
developed a questionnaire for use in querying sales­
men, to ascertain the true value of their stock. The
questionnaire was known and used all over the coun­
try.
Deposit Guaranty Insurance
These various issues concerning bank protection are
all criminal matters but, of course, from the earliest
days bank protection was also a question of manage­
ment and economics. One of the main controversies of
the first decade of the 20th century was the issue of
deposit insurance. At the 1906-08 IBA conventions,
the presidents yearly recommended some type of in­
surance. In 1908 one convention speaker held the op­
posing point of view, and stated deposit insurance was
“purely theoretical, impractical, revolutionary, and
fatal to conservatism.”
The state funds were not overly successful. They
provided no limit on funds to be paid and usually paid
interest to depositors as well, and were hard pressed to
remain solvent. In the twenties, debate about the exis­
tence and terms of guaranty laws continued hot and
heavy. Some funds went bankrupt, some states reNorthwestern
Banker, October, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, Aug. 1935

pealed their guaranty laws. Many felt the deposit in­
surance encouraged lax banking practice. In August of
1928, N orthwestern B anker Publisher Clifford
DePuy declared in an editorial: “ It is our confident opi­
nion that with better banking methods, the installa­
tion of service charges, repeal of guaranty fund laws
and with more careful management of banks through­
out the country that we are entering a period of better
banking and that the guaranty fund experiment will
before long be only a matter of history.”
Depression - New Approaches
Whatever might have been the best approach to
deposit insurance, the Stock Market Crash in 1929 al­
tered matters drastically. Suddenly, banks’ most
urgent need for protection was against the fears of
their own depositors. Even healthy banks had to close
as panicky customers closed out their accounts. There
was little bankers could do to stop the runs except urge
the public to maintain their trust. In January of 1933,
Iowa passed new banking law to protect its banks (S.F.
Ill); the national law adopted soon after was largely
based upon the Iowa legislation. Finally, in March,
1933, Franklin D. Roosevelt declared the Bank Holi­
day, closing banks nationwide until they could be indi­
vidually determined solvent and reopened.
That and the 1934 establishment of the Federal De­
posit Insurance Corporation ended the post-Crash
panic. Some bankers did not protest the federal gov­
ernment’s intrusion into the matter of deposit insur­
ance, in the wake of cataclysmic damage to the
nation’s financial system. After the dreadful period of
bank runs, they saw the FDIC as healthy for banks. In
response to a N orthwestern B anker survey, one
bank president said, “Confidence has been restored by
the FDIC, as shown by the decrease in deposits at the
Postal Savings Bank [government competition with
banks for savings accounts].” But many bankers did
not share this view and vehemently resented the
FDIC, for many of the same reasons they had objected
to the state guaranty funds. Said another bank presi­
dent, “The Bank Guaranty Plan never has worked and
I question if it ever will. To me the FDIC stands for
Fear, Despotism, Imposition, Confiscation.”
In 1986 bankers are not called upon to sleep with
guns under their pillows, but the matter of protecting
the investments of their depositors can keep them
awake at night as much as the voices of robbers out­
side the window. One hundred years later the spirit of
George Smith lives on in bankers who struggle to pro­
tect their banks from assaults mainly by loan defalca­
tions and economic distress as they seek to strengthen
the soundness of Iowa banking.
□

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Federal Reserve Bank of St. Louis

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20

In the 1920s, women were tak­
ing the orders. Today, more
and more women are giving
them.

“You’ve come a long way, baby”
But you can go even farther!
By
MELINDA SAUERS
Associate Editor
OWA women first became associated with the bank­
Ihusbands
ing industry when they arrived on the arms of their
to attend the annual Iowa Bankers Associa­
tion convention meetings. That was in 1892, the year
the IBA adopted a resolution to include the wives of
bankers in the invitations to the annual meetings, as
recorded in the proceedings of the 6th annual IBA con­
vention.
Ninety-four years later, times have changed as some
women now attend the Iowa convention representing
their banks, not as the bankers’ wives! But when did
women actually begin working in Iowa banks?

Few Women
Employed in 1900
That’s an interesting question and one that has not
been documented very well in the Iowa history books
or records. In 1900, T he N orthwestern B anker , in
its Iowa news section, reported a few promotions of
women employed in banks in the state. But for the
most part, only a few women in the Midwest were bank
employees at the turn of the century. The attitude in
the early 1900s was that women were ignorant in the
areas of finance. They were the brunt of many jokes
poking fun at their frivolous spending habits. How­
ever, in March, 1900, Mrs. Charles Henrotin, one of the
most prominent of the club women of America, de­
Northwestern
Banker, October, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

livered an address before the Social Economic Club of
Chicago, encouraging women to give more attention to
financial affairs. She said women were unskilled in fi­
nance, but only because of a lack of training.

•

WWI Opens Up Some Jobs
That training began taking place in 1917, when
women were trained for banking positions due to the
large number of men going off to World War I. Many
women were employed because they were cheaper help,
but they were not felt to be able to handle very much
responsibility.
In an article written by George T. McCandless in the
June 1917 N orthwestern B anker , the author said
women were not as qualified as men because “A girl is
more inclined to let her nerves affect her in her treat­
ment of others than a man...Consequently, I believe a
man makes a better teller in a bank than a women if
but for this one reason.”
This seemed to be the prevailing attitude at that
time. Women were mainly employed in clerical posi­
tions, for instance, as stenographers, because, according to Mr. McCandless, “A woman will be contented at
this kind of work year in and year out, but a man will
use it as a stepping stone to something better and
more lucrative.”
Thus, most women stayed in the entry level posi-

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21

A SP E C IA L SA L U T E T O
' OUR TOP SALES LEADERS...
* ...AND SPECIAL THANKS
TO YOU-OUR CUSTOMERS*
WHO MADE IT
HAPPEN FOR THEM!

Norm Ahles
President’s Advisory Council
Wisconsin Rapids, WI

Jim Fink
President’s Advisory Council
Wauwatosa, WI

Bob Gordon
President’s Advisory Council
Billings, MT

North Central Life is proud to publicly recognize
members of its top sales club: The “1986 PRESIDENTS
ADVISORY COUNCIL”. Members earn qualification in
the club by achieving high standards of performance in
new account production for the company
They are our elite.
They are our best.
They deserve our public commendation. And thanks for
a job well done.

Russ Eng
Co-Salesman of the Year
Sioux Falls, SD

Steve Wolsky
Co-Salesman of-the-Year
Valley City, ND

Denny Zea
Co-Salesman of-the-Year
Sioux Falls, SD

John Mrozek
President’s Advisory Council
Rockford, MN

Dave Stormoen
President’s Advisory Council
Alexandria, MN

Tom Walsh
President’s Advisory Council
Chippewa Falls, WI

But special thanks must also go to the hundreds of
banks, S&Ls, credit unions and dealerships who chose
North Central Life as their credit insurance carrier during
the previous year.
They’re the ones who made this recognition possible for
our sales leaders. We thank them for the trust they
bestowed upon us. And the opportunity they have given
us to serve them and their loan customers.
We salute you all.

“America’s Number One Credit Insurance Service Organization”

Protection all ways

North Central Life Insurance Company
NORTH C EN T R AL LIFE TOWER. 445 MINNESOTA STREET BOX 64 13 9. ST PAUL. MN 55164


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1986

22

tions of the bank for the next few decades — not
because they didn’t have the abilities needed, but
because most women viewed marriage as their profes­
sion, and many quit their banking jobs after they mar­
ried.
Some women on the East Coast, however, were mak­
ing progress in the banking industry. In 1919, Virginia
Furman was appointed as the first woman bank officer
in New York. Other New York banks began to see the
business-getting abilities of women and began employ­
ing them as bank executives. These “bank women’’
could explain business procedures in terms women,
who were too timid to enter banks before, could under­
stand. Thus, a number of women’s departments
cropped up in banks. None of these women had specific
bank training and had nothing to guide them in thennew work. They were starting out in an entirely new
direction and had to develop their job duties from
whatever experience they had.

Origin of NABW
On February 21, 1921, six women who had recently
entered the banking field, met in Virginia Furman’s
home, 35 East 30th Street, New York, to talk over
their new positions. This was the beginning of “The
Association of Bank Women” organization. The group
really got underway at its third meeting, held May 9,
1921, at the Guaranty Trust Company in New York.
By the end of the first fiscal year, the group had
grown from a local group of 16 New York members to a
59-member national organization representing 18
states and 28 cities. One of the 59 members was Mar­
garet Elizabeth Horner of the First National Bank of
Sioux City, teller and secretary to the president.
In 1922, the Mid-West division of the group was
organized, and Mrs. Ralph Beebe was elected regional
vice-president. The first Mid-west regional conference
of the Association of Bank Women was held in Kansas
City, May 24-25, 1923. A list of members attending
showed that one woman from Sioux City was present.
Women were carefully screened before they could
belong to the organization. In order to maintain the.
professional status of the group, only women in truly
executive positions were admitted. In 1924-25, 2,134
women were eligible for membership: 29 were presi­
dents; 74, vice presidents; 93, cashiers; and 1,885 were
assistant cashiers. There were six treasurers, 11 assis­
tant treasurers, five managers and three trust officers.
In the early 1930s, bank failures and mergers, reduc­
tions in official bank staffs and a general economy pro­
gram shrank the membership. The women’s depart­
ments that were so popular in the 20s were the first
casualties, and many women lost their jobs.

Women Replace Men During WWII
Women made a comeback in the 1940s when they
began replacing men who went off to fight in the sec­
ond world war. Membership in the organization grew.
In the book, Women in Banking: A History of the Na­
tional Association of Bank Women, the author,
Genieve N. Gildersleeve, wrote that the Iowa group,
one of the first 16 groups formed in the nation, first ap­
peared in the organization’s 1945-46 yearbook. A
movement was begun in Iowa in 1954 to increase
awareness of the association in the Hawkeye state. The
first formal meeting of the Iowa chapter of the NABW
Northwestern
Banker, October, 1986

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

was held in Des Moines on September 18 and 19, 1954.
Today, there are seven groups in Iowa divided into •
geographical regions, with a total state membership of
575 members.

Value of Women Employees Realized
During the 1950s, women started actively getting
involved in baijking as management began to realize
the value of its women employees. Women began serv­
ing on state banking committees, as presidents of state
banking associations and as guest speakers at banking
meetings. The first woman to address an IBA conven­
tion was Cornelia Hirtzler, assistant cashier of the
Farmers State Bank of Marion. By 1953, a woman
headed the important ABA standing committee on
school savings banking.
At the 1956 convention in Minneapolis, W. Harold
Brenton, a past president of ABA and founder of Brenton Bank Inc. holding company, which owns 16 Iowa
banks, expressed the view that if women were to oc­
cupy a really important role in banking, “There has to
be a gradual reconditioning, a reconditioning in the
minds of men who select bank officers, and in the
minds of women who wish to become bank officers. In
the past, there has been a psychological barrier. To
remove this barrier, men must break from the tradition
that women can only go so far in banking and women
must break from the belief that their potential in bank­
ing is limited. Banking needs women with purpose and
vision. My interest in encouraging the advancement of
women is not because they are women, but because of
the tremendous need for more well-qualified, compe­
tent and responsible bank officers. If the need exists
today, think of what it will be in about 10 years, with a
possible 30 million increase in population. As more
women equip themselves they are likely to find that
the reins of management will be thrust into their
hands, and more rapidly than we may now think.”
Mr. Brenton played an important part in encourag­
ing Iowa women to become involved in banking. Two
national NABW presidents came from Brenton Banks:
Helen Rhinehart, who served as national president
from September 1959 to October 1960, and Betty
Steele, who served from September 1975 to October
1976.

More Progress Needs to be Made
Mrs. Steele says women have made progress in
banking, but it wasn’t until the middle 60’s that
women began significantly moving up the corporate
ladder. But, she says more progress need to be made.
“Even today, the percentage of women in top manage­
ment has not grown very much, not only in banking,
but in many other industries.” She goes on to say,
“There are still too many instances where the “recon­
ditioning” has not been completed. Some day there
may begin to be a realization of how unproductive it is
not to take talent and skills where they exist, regard­
less of from where they come.”
The 100th anniversary of bankers being permitted
to bring their wives to the state convention is only six
years away. As the anniversary approaches, we see
women bank executives slowly progressing in the fi­
nancial industry. By 1992, we will probably see more
and more bank employees arriving on the arms of their
husbands at the IBA convention.
□

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Also keep in mind that IAC offers you a full line
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Federal Reserve Bank of St. Louis

24

First Interstate President Seeks to
Expedite Ag Trade with Pacific Rim
A N orthwestern B anker
interview with
EDWARD M. CARSON, President
First Interstate Bancorp
Los Angeles, Cal.
ECAUSE of its strategic head­
quarters location in Los Ange­
B
les, supported by representation in
all major west coast port cities rang­
ing from Anchorage to Seattle, Port­
land, San Francisco and San Diego,
as well as in Honolulu, First Inter­
state Bancorp is in a strong position
to develop interrelationships be­
tween American midwest agricul­
ture and the nations identified as
part of the Pacific Rim.
That analysis by Edward M. Carson, president of the $50 billion
asset First Interstate Bancorp of
Los Angeles, means the holding com­
pany is ideally situated to directly
help farm customers of its member
banks and franchise banks in Mid­
west states to sell their ag products

PROFITABLE
STRATEGIES
for a new
ENVIRONMENT

to Pacific nations where First Inter­
state has widespread connections.
“ I feel this type of relationship is
a key to the future for Iowa and all
of us,” Mr. Carson said in an inter­
view when he was in Des Moines to
visit with officials of First Inter­
state of Iowa, Inc., which is a fran­
chisee for the state of Iowa.
Mr. Carson said agricultural pro­
duction, more than most other types
of production, is price oriented be­
cause it is directly related to de­
mand. “The fact is,” he stated,
“we’re over-producing in this nation
and target pricing has led to this
situation. In addition, we have as­
sisted less-developed nations to
learn how to produce for themselves.
I realize that a lot of infrastructure
is built on a pricing market we’ve
had in recent years. A lot of other
things also are involved in the farm
problem, many of them social issues.
“The support of the USD A per
Iowa farm today, for example, is
probably $20,000 per farmer. The oil

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BANKERS CONFERENCE
NOVEMBER 16-19, 1986
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Northwestern
Banker, October, 1986

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Federal Reserve Bank of St. Louis

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Legislative Update

Fellowship Gathering

New Products Exhibition

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situation also is bad; however, we
continue to produce farm products
but not oil, and people get hurt in
both instances.”
Speaking apart from agriculture,
Mr. Carson said, “The appreciation
of the yen and depreciation of the
dollar should have had some effect,
but it’s not certain how much, for
price escalation on both sides dilutes
this. Because the Japanese are such
a dynamic force in the world market,
we must find products they need
and want. The negative is they are
so self-sufficient and don’t want
things we produce.
“So far as agricultural products
are concerned, I think Japan is a sig­
nificant market for grains. I ’m not
sure the Japanese dietary demands
would call for a supply of meat.”
Mr. Carson added that “Japan, in­
stead of buying goods, is investing
in America.” He said the countries
of the world that resist foreign in­
vestment will be worse for that posture, adding “So long as our mar­
kets are competitive we’d be wrong
to restrict foreign investments.”
In regard to First Interstate’s
own plans for a market position domestically, Mr. Carson reported that
the National Bank of South Bend,
Ind., has become the latest franchise
of First Interstate, effective June
30. “We have a strong desire to be a
national provider, either through
franchises or through equity and we
hope to expand nationwide,” he em­
phasized.
Mr. Carson said First Interstate
continues to offer three important
advantages to banks for affiliation
through franchise or equity:
“First, through wholesale bank­
ing we are able to become one of the
top players. For example, our subsi­
diary First Interstate Trading Co.
INTERVIEW. . .
(Turn to page 74, please)

®

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E xp ertise an d E xp erien ce
D ou glas A u stin & A sso cia tes p ro v id e s u n m atch ed
q u ality In vestm en t B anking Services.

A nthony W ayne
Bank

Trenton Bank
& Trust Company

Ft. W ayne. Indiana

Trenton, M ichigan

has announced its intention to merge with

H ancock Bank
& Trust
Greenfield, Indiana
has affiliated with

has announced its intention to affiliate with

Security
Bancorp, Inc.

Sum m it Bank
Ft. W ayne, Indiana
Douglas Austin & Associates, Inc. acted
as an investment banker and financial
advisor to Anthony Wayne Bank
in this transaction.

Merchants National
Corporation
Indianapolis, Indiana

Southgatie, M ichigan
D ouglas Austin & Associates, Inc. acted
as an investment banker and financial
advisor to Trenton Bank & Trust
Com pany in this transaction.

Douglas Austin & Associates, Inc. acted
as an investment banker and financial
advisor to Hancock Bank & Trust
in this transaction.

C linton, Indiana

Spartan
Bancorp, Inc.

has anounced its intention to affiliate with

has announced its intention to affiliate with

Clinton State Bank

Banc One
Corporation

Old N ational
Bancorp

Colum bus, O hio

Evansville, Indiana
Douglas Austin & Associates, Inc.
issued a fairness opinion on behalf of
Clinton State Bank in this transaction.

Douglas Austin & Associates, Inc. issued
a fairness opinion on behalf of Spartan
Bancorp, Inc. in this transaction.

Sutton
Bancshares, Inc.

The Lorain
County Bank

Shelby County
Bancorp

(a local investor group)
Attica, Ohio
has acquired

Elyria, Ohio
purchased the Colum bia Station
Branch o f

Thrift Federal
Savings & Loan Co.

Shelbyville, Illinois

The Sutton State Bank
formerly an affiliate o f
Centran Corporation
Cleveland, Ohio

Windsor State Bank
W indsor, Illinois

Cleveland, O hio
Douglas Austin & Associates, Inc. acted
as a financial advisor to The Lorain
County Bank in this transaction.

has announced its intention to acquire

Douglas Austin & Associates, Inc. acted as
the investment banker to Sutton Bancshares, Inc. in this leveraged
buyout transaction.

Douglas Austin & Associates, Inc. acted
as a financial advisor to Shelby County
Bancorp in forming a one-bank holding
company and in the subsequent
acquisition of Windsor State Bank.

The DA& A Advantage is a com bination of technical excellence
and sensitivity for your organization’s Investm ent Banking
opportunities. Call M id-A m erica’s Investm ent Banking Specialist. . .

DAA

DOUGLAS AUSTIN & ASSOCIATES, INC.

3178 Republic Blvd., N.

Suite 2

Toledo, Ohio 43615

Toledo • Indianapolis • Chicago •


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

419/841-8521

Springfield

Northwestern Banker, October, 1986

26

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Phone: (309) 655-5423

Northwestern Banker, October, 1986


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Federal Reserve Bank of St. Louis

301 S. W. Adams • Peoria, Illinois 61631
WATS LINE 1-800-322-2212

Member FDIC

27
officer in 1985.
Mr. Marshall joined the First Na­
tional Bank in Champaign in 1977
as an auditor and has served as vice
president for finance since 1982.

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ABA Selects Elgin Banker
The American Bankers Associa­
tion (ABA) has selected Fred L.
Shaw, president
and CEO Union
National Bank &
Trust Co., Elgin,
to serve as a national banking
advisor for 198687.
As an advisor,
Mr. Shaw will
travel through­
out the U.S.,
F.L. SHAW
speaking with the media and con­
sumers on such topics as the safety
and soundness of the industry and
expanded products and services for
banks.
Mr. Shaw attended a briefing on
current consumer and legislative
concerns at ABA’s Washington
headquarters. The tour year began
in September.
He is a 14-year veteran of bank­
ing. Joining Union National Bank &
Trust in 1981 as executive vice
president, he was named president
and CEO in 1982.
He serves on the ABA communi­
cations council and the ABA com­
munity bankers advisory board. Active in the Illinois Bankers Associa­
tion, he is a member of the board and
the state legislation and regulation
and bank management committees.
In addition, he serves as a member of the board in Elgin and vice
president of community marketing
for the area Chamber of Commerce,
and is a member of the board of
managers and the finance committee for the Elgin area YMCA.
Changes Made in Rock Island
The Rock Island Bank has named
Charles W. Calhoun senior vice
president in charge of lending. He
joined the bank in 1985.
Also named was J. Bryant Goodall, vice president and trust officer,
who most recently served as assis­


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

tant vice president and trust officer.
Other officers joining the firm are
Robert L. McCrary, commercial loan
officer; Dale C. Harmon, consumer
loan officer, and Joann L. Wiggins,
mortgage loan officer.

Changes Made in Mahomet
John W. Busey has joined the
Community Bank of Mahomet as
president and CEO. Prior to this he
had been president of the Madison
Park Bank in Peoria.
Clyde Dunbar has been elected
chairman of the board, and Steven J.
Parker, vice chairman.

Two Added in Rockford
AMCORE Bank N.A., Rockford,
has announced the addition of Rob­
ert F. Wolf and Alfred M. Wooleyhan, Jr. as vice presidents in the
commercial investment division.
Mr. W olfs past experience in­
cludes seven years with the First
Bank Corp. in Minneapolis, Minn.;
four years as vice president with the
First Wisconsin Corp. in Milwaukee,
and senior examiner for the Federal
Reserve Bank in Chicago.

R.F. WOLF

A.M. WOOLEYHAN

Mr. Wooleyhan was employed
with the Illinois State Bank of Quin­
cy for six years, and served more
than two years each at Jefferson
Trust and Savings Bank in Peoria
and the Marine Bank in Springfield.
He also served a number of years in
the management of an installment
loan portfolio.
MFG Elects Two
The Midwest Financial Group
board in Peoria has elected two new
vice presidents: William C. Funkhouser, of Decatur, loan review and
recovery, and John W. Marshall, of
Champaign, corporate planning.
Mr. Funkhouser began his bank­
ing career with The Citizens Na­
tional Bank of Decatur in 1979 until
his transfer to MFG as a loan review

William N. Lane III, chairman,
Lane Financial Inc., has announced
that the board of West Bancorp,
Inc., holding company for the $106
million asset Bank of Westmont,
has unanimously voted to enter into
a letter of intent with Lane Finan­
cial, Inc., to acquire the Bank of
Westmont.
Terms of the agreement were not
disclosed, and the acquisition is sub­
ject to shareholder and regulatory
approval.
Commenting on the action, Scott
K. Heitman, Lane Financial, Inc.
president and CEO, said there will
be no management changes, and
Marcel Levesque, bank of West­
mont president, will continue as
CEO of the bank.
* * *
Joseph F. Tomasello, senior vice
president, commercial lending, Des
Plaines National Bank, has been
named a director of the bank’s hold­
ing company. He has been with the
bank since 1982.
Northwestern Banker, October, 1986

Illinois News
28
Five Chicago area banks have
changed their names to reflect their
long-time association with the Affili­
ated Banc Group, Inc.
Name changes are as follows: The
Franklin Park Bank to Affiliated
Bank/Franklin Park; The Morton
Grove Bank to Affiliated Bank/Morton Grove; North Shore National
Bank, Chicago, to Affiliated Bank/
North Shore, and Western National
Bank in Cicero to Affiliated Bank/
Western National. A fifth Chicago
area bank, First Security Bank of
Addison, which was acquired by the
holding company in 1985, already
has been renamed Affiliated Bank/
DuPage.
Two other member banks associ­
ated with the group will also change
their names: The State Bank of Bur­
lington to Affiliated Bank/Burlington and The First National Bank of
Coal City to Affiliated Bank/Coal
City National.

Mackinaw Bank Holding
Company Files Bankruptcy
A b a n k ru p tc y p e titio n for
Heights Ban Corporation, a onebank holding company that owns
controlling interest in First Security
Bank of Mackinaw, has been filed by
John A. Witmer, principal owner.
According to the petition filed in
U.S. District Bankruptcy Court for
the Southern District of Iowa, credi­
tors are owed $554,145, while assets
are listed at $565,769.
Peoples Bank of Bloomington,
111., holds a $380,000 bank stock
loan secured by holding company
stock. The $8.6 million asset First
Security Bank of Mackinaw is unaf­
fected by the holding company fil­
ing, according to an Illinois banking
commission official.
Mr. Witmer, who lives in Des
Moines, la., also is an owner in
Forest City Bank & Trust Co. at
Forest City, la. That bank has no re­
lationship with the Illinois bank.
V.P. Named in Durand
Russell P. Sarver has been named
a vice president at Durand State
Bank. He brings many years of
banking experience, including 21
years at City Bank of Rockford,
where he most recently was em­
ployed as assistant vice president
and Rockford Plaza facility man­
ager.

Northwestern
Banker, October, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

THE Commissioner of Banks and Trust Companies of Illinois, William C. Harris, presents
David Nosbisch, Independent Bankers’ Bank of Illinois’ board chairman, with the bank’s
charter, while the rest of the bank’s board of directors look on.

New Independent Bank Formed
HE Independent Bankers’ Bank
T
of Illinois, Springfield, received
its charter recently from the Com­
missioner of Banks and Trust Com­
panies of Illinois, William C. Harris.
On the same day, Bankers’ Bancorp
of Illinois, Inc., became a one-bank
holding company by purchasing
100% of shares of stock of Indepen­
dent Bankers’ Bank of Illinois.
Capitalization of Independent
Bankers’ Bank of Illinois is $2.5 mil­
lion, which does not include capitali­
zation of the holding company.
Elected as president and chief execu­
tive officer of the new bank is Jeff­
rey J. Hargroder.
Seventy independent banks
bought initial shares to provide the
capital for the bank.
Under its charter, the Indepen­
dent Bankers’ Bank of Illinois’ prin­
cipal line of business is correspon­
dent banking. The bank will deal
only with banks and bankers and
will not do any retail business with
the public.
The bank opened its doors for
business on September 2.
Making up the bank’s board of di­
rectors are: David W. Combs, presi­
dent, First National Bank in Taylorville; Wilfred Cross, president and
CEO, First National Bank of Ob­
long; Randall Dempsey, vice presi­
dent & cashier, The Pontiac Na-

tional Bank; Michael T. Dove, president & CEO, Shelby County State
Bank in Shelbyville; E. Ray Duncan,
president & chairman, Hardware
State Bank in Lovington; Gary N.
Edwards, vice president, Golden
State Bank; Ed Goodwin, executive
vice president, The Bank of Herrin;
Mr. Hargroder; Delvin W. Johnston,
president & chairman, Valley Bank
and Trust Co., South Elgin; Gene
Kirk, vice president & cashier, First
State Bank of Calumet City; Fred
Lamkey, vice president, Henry
State Bank; R.W. Lott, chairman,
Farmers State Bank in Elmwood;
Robert Narmont, president & CEO,
United Community Bancorp &
chairman of Bank of Pawnee; David
Nosbisch, executive vice president
& cashier, Durand State Bank, and
Robert Wingert, executive director,
ICBI, ex-officio.

^

£

0

0

0

Joined in Arlington Heights
Bobbye DuPree DePaul has ®
joined The Bank & Trust Company
of Arlington Heights as vice president/marketing director.
Before joining the bank, she was
associate marketing manager/pro- ®
duct manager at Citicorp Diner’s
Club, U.S.____________________
ILLINOIS NEWS. . .
(Turn to page 35, please)
•

Central Wisconsin Bankshares
Promotes Two
William H. Rodd has been elected
as chairman and chief executive offi­
cer, and Edwin J. Zagzebski as pres­
ident and chief operating officer of
Central Wisconsin Bankshares, Inc.,
headquartered in Wausau. Both
men have also been elected as mem­
bers of the board.

W.H. RODD

E.J. ZAGZEBSKI

in First Wisconsin common stock
for all of the common stock of Du
Page Bancshares.
The acquisition is First Wiscon­
sin’s first under the new regional in­
terstate banking laws of Wisconsin
and Illinois. Du Page Bancshares
owns the $135 million Du Page
Bank & Trust Company, the largest
bank in Glen Ellyn.
Hal C. Kuehl, chairman of First
Wisconsin Corporation, said the
planned acquisition exemplified
First Wisconsin’s strategy of affili­
ating with high-quality, profitable
banking organizations located in
growing communities.
Joseph D’Agostino, president of
the Du Page Bank, said the acquisi­
tion would be advantageous to both
customers and employees of the
bank by giving the bank the edge it
needs in offering customers the best
in products and services.
First Wisconsin has assets of $6.5
billion.
A definitive agreement has been
approved by directors of both com­
panies and signed by their represen­
tatives. Du Page shareholders will
be asked to approve the transaction
at a special meeting to be held early
in 1987. Upon approval, the transac­
tion is expected to be completed in
the second quarter of next year.
Under the laws of both states, Wis­
consin banks are allowed to acquire
Illinois banks as of Jan. 1, 1987.

Mr. Rodd had been president of
Eagle River State Bank since 1972
and also president of Northern Na­
tional Bank of Rhinelander, since
1984. He began his career as a bank
examiner with the FDIC. He was
then an accountant with Wipfli, Ull­
rich and Company, and later was
vice president of Merchants Bank
and Trust of Rhinelander.
Mr. Zagzebski was most recently
employed as executive vice presi­
dent of Central Wisconsin Bankshares, Inc. Prior to joining the com­
pany in 1971, he was employed as
controller of Weyerhauser Corpora­
tion in Marshfield and then as gen­
eral manager of Marathon Battery A ffiliation Plans Made
Company of Wausau.
A plan for the affiliation of the
Bank of Plover with Central Wiscon­
sin Bankshares, Inc, and for the
First Wis. Corp. to Acquire
holding company to purchase ap­
Illinois Bank Holding Co.
proximately 65% of the stock of the
An agreement has been reached Westby—Coon Valley State Bank
for First Wisconsin Corporation, from the Knutson family have been
Milwaukee, to acquire Du Page announced.
Edwin J. Zagzebski, president
Bancshares, Inc., a bank holding
company in Glen Ellyn, 111. Terms of and COO of Central Wisconsin
the agreement call for Du Page Bankshares, Inc., in Wausau, said
shareholders to receive $18.2 million an exchange offer of stock had been

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

approved by the Plover bank’s
board and the holding company, and
would be presented to bank stock­
holders following regulatory ap­
proval. Under the terms of the ex­
change offer, stockholders would be
offered nine shares of CWB common
stock for each share of bank stock.
The proposed affiliation is subject
to the approval of the board of Gov­
ernors of the Federal Reserve Sys­
tem. At June 30, 1986, the Plover
bank had assets of approximately
$28 million, and Central Wisconsin
Bankshares has assets of approxi­
mately $685 million. The WestbyCoon Valley State Bank had mid­
year assets of $44.3 million.
The proposed affiliation of the
Westby-Coon Valley State Bank is
subject to approval which is ex­
pected later this year.
Named in Green Bay
Daniel J. Newell has been ap­
pointed marketing representative of
Valley Banklease Corp., Green Bay.
He will be responsible for securing
equipment vendor relationships in
the Moraine, Rock and Badger re­
gions. Prior to joining Valley, he
was with American Industrial Leas­
ing, Milwaukee, in a marketing ca­
pacity.
Letter of Intent Signed
Richard P. Klug, chairman, presi­
dent and CEO of F&M Financial
Services Corporation, Menomonee
Falls, and Joseph J. Zilber, majority
shareholder of The Bank of Fond du
Lac, have announced that Mr. Zilber
has signed a letter of intent under
which F&M Financial Services
would acquire Bank of Fond du Lac.
Terms of the transaction were not
disclosed.
Mr. Klug also announced that the
acquisition of Rural Financial Ser­
vices, Inc., parent of Dousman State
Bank in Dousman and Mansfields
State Bank in Johnson Creek has
been completed.
F&M Financial Services Corpora­
tion had announced in July that The
Bank of Ashippun had entered into
a letter of intent to join the organiza­
tion. The addition of the Rural Fi­
nancial Group and completion of the
Ashippun and Fond du Lac transac­
tions would bring F&M’s total as­
sets to approximately $350,000,000.
WISCONSIN NEWS. . .
(Turn to page 34, please)
Northwestern Banker, October, 1986

Some things have to change.
At Marquette Bank Minneapolis, we feel
some things should endure.
Pride in a job well done. A high standard of
performance. A tradition of excellence.
These are the foundations of Marquette’s
Correspondent Services Division.
And it shows. . . in our ability to pinpoint
and analyze your problems and oppor­
tunities. Our willingness to roll up our
sleeves, to work with you, to deliver all the

resources of a billion dollar bank to help
you meet the challenges of today, and
tomorrow.
Technologies and services change, but our
attitude hasn’t. Because Marquette Bank
Minneapolis will never put aside our oldest
promise to our customers: professional
service with a personal difference.

Marquette Bank
Minneapolis

Member FDIC

Correspondent Services Division

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•

•

31
ments the ongoing financial services
provided by the First Banks. Foun­
dation funds are granted to a variety
of non-profit organizations serving
Minnesota, North Dakota, South
Dakota, Wisconsin and Montana. In
1985, FBS Foundation and all the
First Banks granted more than $6
million in the areas of human ser­
vices, health education, the arts and
the environment.
Pres. Elected in St. Cloud
Norwest Corporation has announced the election of David R.
Noack as presi­
dent of Norwest
Bank St. Cloud.
He su cc e ed s
Wesley J. Hein,
who will remain
as bank chair­
man.
M r. N oack
had been senior
m
vice president in
D.R. NOACK
commercial
banking at the St. Cloud bank. He
began his career with the bank in
1964. From 1970 to 1984, he held
various positions with Norwest affi­
liates in La Crosse, Wis., and Albert
Lea and with the corporate office in
Minneapolis.
#

^

^

4)

^

Staff Announcements
Made in Mora
The board of People’s National
Bank of Mora has announced the retirement of Robert L. Nikodym as
executive vice president.

tional Bank.
An open house was held in the
bank lobby on August 29 to honor
him.
The bank also announced the ad­
dition of William F. King as vice
president in lending. He joins the
bank with over 20 years experience,
most recently serving with Stearns
County National Bank of Albany.
Pres. Named in Burnsville
Jerry Ranfranz has been ap­
pointed president of Marquette
B ank B u rn s ­
ville.
He joins the
bank from Mar­
q u e tte
B ank
Lake where he
had served as
president for six
years. William
T. Bailey will fill
the president po­
J. RANFRANZ
sition at Mar­
quette Bank Lake.
Mr. Ranfranz has been with Mar­
quette Banks since 1968, working in
the downtown offices in Minneapolis
as vice president of the retail divi­
sion. Previous to joining Marquette,
he was with Community Credit
Company as office manager.

St. Cloud Bank Names Two
St. Cloud National Bank & Trust
Co. has announced the election of
two senior vice presidents.
Michael D. Watters has been
named senior vice president and sec­
ond officer. He was previously se­
nior vice president of the Norwest
Bank, Redwood Falls. Prior to that,
he had held several officer positions
with the Lewis Banks in Duluth.

M.D. WATTERS

R.J. MILLER

Robert J. Miller has been named
senior vice president and cashier. He
joined the bank in 1983 as vice presi­
dent and cashier. Previously he was
associated with the First American
Bank, Detroit Lakes as vice presi­
dent and controller.

Joined in Brainerd
Rodney Craft has joined First
American Bank in Brainerd as assis­
tant vice president/loan review offi­
cer.
FBS Foundation
Previously with Commerce Bank
Awards 28 Grants
of St. Joseph, Mo., Mr. Craft’s 10First Bank System Foundation year banking career began with Citi­
R.L. NIKODYM
W.F. KING
has announced that it awarded 28 zens Commercial Savings Bank in
grants during the second quarter of Flint, Mich., where he served as se­
Mr. Nikodym leaves the bank 1986 totaling $745,200. Grants were nior credit analyst.
JoAnne Baier-Scull has joined
with 45 years of banking experience. concentrated in the areas of human
He began working at Kanabec State services, arts and culture, civic sup­ First American Bank in Brainerd as
a real estate loan representative.
Bank while still a student at Mora port and education.
High School. He worked at the bank
During the first quarter, FBS
until December 1942, when he en­ Foundation had announced 30 Named in Albert Lea
listed in the Navy. After serving 40 grants totaling $389,750 to local
Imogene I. Opdahl has been
months in the Navy, he returned to and regional education, arts and cul­ elected as a personal loan officer in
Kanabec State Bank in 1946 where ture, human services and civic sup­ the installment lending department
he worked until 1969, when he was port organizations.
of First Bank Albert Lea. She joined
named vice president of People’s Na­
The FBS Foundation comple- the bank in 1970.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1986

32

Norwest Corporation has named
Richard A. Klingen as chief execu­
tive officer of
Norwest Bank
St. Paul.
He has been
p re sid en t and
COO at the bank
for five years
an d su cceed s
Larry Buegler as
CEO. Mr. Bueg­
ler resigned his
R.A. KLINGEN
post in August.
Mr. Klingen began his banking
career at Norwest Bank Minneapolis
and later moved to Norwest Bank
Metro West in Hopkins, where he
served as president and CEO from
1968 to 1976.
He held the posts of president of
the Minnesota Bankers Association,
District 5 and chairman of the edu­
cation policy and development com­
mittee of the MBA. He also served
as a member of the executive com­
mittee of the American Bankers
Association commercial lending
division.
*

*

*

F. William Johnson has been
named president and chief executive
o fficer
and
elected to the
board of Capital
Bank, St. Paul.
He w as p r e ­
v io u sly
vice
p resid en t and
h ead of c o r­
porate banking
for M idw est
Federal, a sav­
ings and loan as­
sociation.
He began his banking career as a
management trainee with First
Bank System and has been associ­
ated with FBS affiliates in Great

Northwestern
Banker, October, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Falls and Fort Benton, Mont. Prior
to joining Midwest Federal, he was a
vice president and division head at
First Bank Minneapolis. He also
served as chairman and president of
the First National Bank, Pine City.
*

*

*

The First Banks have named
Robert D. Gordon as executive vice
p re sid en t and
managing direc­
tor of corporate
relationship
banking in First
Bank System’s
metropolitan
division. He was
previously exec­
utive vice presi­
dent and man­
R.D. GORDON
ager of the cor­
porate development and strategic
planning department at First Bank
System.
Mr. Gordon joined the First
Banks in 1984 from McKinsey &
Co., Chicago, where he was engage­
ment manager and senior consultant
for the financial institutions group.
Prior to that, he was senior study
director at the University of Chi­
cago’s National Opinion Research
Center and a lecturer in the univer­
sity’s Graduate School of Business.
William J. Rafferty has joined the
First Banks as vice president of
marketing in the natural resources
department. Prior to joining the
bank, he was with BancTEXAS in
Dallas, as a vice president and de­
partment manager of supervised
loans.
* * *
Michael E. Dougherty, president
of Dougherty, Dawkins, Strand &
Yost Inc., a Minneapolis investment
banking firm, has been elected to the
muncipal securities rulemaking

board (MSRB). He will serve a threeyear term as one of five securities in­
dustry representatives on the
15-member board.
Prior to forming Dougherty, Daw­
kins in 1977, he was a senior vice
president at Dain Bosworth.
* * *

q

0

American National Bank of St.
Paul has announced that James L.
Anderson has
joined the bank
as vice president
of c o r p o r a t e
trust.
He h as 14
years of experi­
ence in banking
and was prev i o u s 1y
employed by the
First Bank Sys- JL ANDERSON
tern in a variety of trust operations,
including vice president, trust offi­
cer and assistant secretary.
Marquette Bank Minneapolis has
announced the appointment of
Thomas J. Freund as trust sales of­
ficer, trust services group.
He joins the bank from Norwest
Capital Management and Trust
Group, where he was a trust officer
in individual services marketing.
His prior experience includes over
10 years of selling financial services
and products.
The bank also announced the appointment of Irwin L. Jacobs to its
11-member board.
Mr. Jacobs is chairman of the
board and CEO of Minstar, Inc., of
Minneapolis. He also serves as
chairman of Genmar Industries,
Inc.; chairman of Watkins, Inc.;
president and director of Jacobs
Management Corporation; president
and director of Jacobs Industries,

£

£

#

®

33
an opportunity to earn a bachelor’s
degree in management. Students
take freshman and sophomore level
courses through Brainerd Communi­
ty College and complete upper divi­
sion work in classes taught by Col­
lege of St. Scholastica faculty.
Forty Brainerd students are cur­
rently enrolled in the program with
an additional 22 students in Grand
Rapids.
The award is the second part of a
two-year grant in support of the
2+2 program. The Bremer Founda­
tion also provided support for three
years to the Brainerd Registered
Nurse Track Program which re­
sulted in 58 nurses earning degrees.
Minnesota News

Inc.; vice president and director of
Harper-Crawford Bag Company,
Inc.; director of Brown-Minneapolis
Tank & Fabricating Company and
director of C.O.M.B. CO.
*

*

*

A number of staff promotions and
additions have been announced at
Midway National Bank, St. Paul.
Susan A. Hagen has been ap­
pointed commercial loan officer. She
was previously credit department
manager and has been with the bank
since 1981.
John B. Hermanson has been
named credit department manager.
He has been credit analyst since
1984.
Gary R. Schuette has joined the
bank as controller. He was previous­
ly with Fidelity Bank Northwest.
Jeffrey G. Mueller, previously
with Marquette Bank, has joined
Midway as personal banking officer.
* * *

acquisition, it gives us a presence in
a state we view as important and an
opportunity to expand our service
area,’’ Mr. Ankeny said.
First Bank System, Inc. is the
15th largest bank holding company
in the United States, comprised of
First Bank Minneapolis, First Bank
Saint Paul and 77 other banks and
trust companies, with 150 banking
offices in Minnesota, Montana,
N orth Dakota, South Dakota,
Washington and Wisconsin, and a
trust company in Florida.
* * *
G. Allen Andreas, assistant trea­
surer of Archer Daniels Midland
Company of Decatur, 111., has been
elected as a director of National City
Bancorporation.
* * *

Elected in Robbinsdale
Cal Baldry has been elected a
commercial banking officer of First
Bank Robbins­
dale,
N.A.
American National Bank of St.
He
began his
Paul sponsored the St. Paul 10K
Run for the fifth consecutive year, career at Conti­
September 28. The run raises funds n e n ta l G ra in
in
for the American Lung Association C om pany
1981
and
joined
of Ramsey County and the St. Paul
Jaycees’ community service pro­ First Bank Sys­
tem in credit ad­
grams.
The run began at the bank and led ministration in
runners through downtown St. Paul, 1985, transfer­
to historic, Irvine Park, across the ring to F irst
Bank Robbinsdale this year.
Mississippi River and back.

First Bank System, Inc. has an­
nounced that it has purchased the
assets and assumed certain liabili­
ties of Mid Valley Bank in Omak,
Wash.
With assets of $41 million and de­
posits of $40 million, the bank had
been actively seeking a buyer due to
its weakened capital base and credit
quality problems. The assets were
assumed by First Bank Washing­ Brainerd Bank Gives Support
ton, a newly chartered bank. FBS
In cooperation with First Ameri­
has contributed $6.2 million of can Bank in Brainerd, the Otto Bre­
capital to First Bank Washington.
mer Foundation has announced a
State law permits the acquisition $4,550 grant to Camp Confidence to
of Washington banks by out-of-state support a management assistance
bank holding companies when the project.
bank is in danger of failing and no
The management support ser­
in-state bank or bank holding com­ vices of the Amherst H. Wilder
pany meets the terms offered by the Foundation in St. Paul is assisting
out-of-state bank holding company. in the development of the strategic
Prior to the purchase, Thomas Old­ plan for the next three to five years.
field, supervisor of banking for the It will also address the organiza­
state of Washington, had deter­ tional structure of the camp.
mined that the bank was in danger
Amherst consultants expect to
of failing.
complete the consultation phase of
Approximately $8 million, or 26 the project at the end of October.
percent, of the bank’s $31 million The plan will then be developed by a
loan portfolio is nonperforming. The planning team comprised of camp
bank’s nonperforming loans are in representatives.
the areas of agriculture, commercial
The Otto Bremer Foundation,
and real estate.
with assistance from First American
First Bank System Chairman and Bank in Brainerd, has also awarded
CEO D.H. Ankeny, Jr. said the ac­ the College of St. Scholastica a
quisition is consistent with First grant of $17,520 in continuing sup­
Bank System’s strategy to expand port of the Management 2+2 Pro­
in the Northwest quadrant of the gram in Brainerd.
United States. “While this is a small
The program offers area residents

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Joined in Fairfax
James O. Hansen has joined the
First National Bank of Fairfax as an
agricultural loan officer.
He has been employed by the
Farm Credit System for the past 15
years. The last nine years he has
been branch manager of the PCA of
the Fairmont office at St. James. He
replaces Michael B. Mueller who
resigned to devote more time to his
farming operation.
Added in Bemidji
The First National Bank of Be­
midji has an­
nounced the ad­
dition of Hugh
J. Welle to its
staff.
Mr. Welle has
been employed
with First Bank
S y ste m as a
credit examiner
prior to joining
First National.
H,J- WELLE
Northwestern Banker, October, 1986

34

Minnesota News

Over 100 ATMs to be Added This Year
ORWEST Corporation has an­
N
nounced an expansion plan call­
ing for installation of INSTANT
CASH ATMs in more than 100 new
locations in convenience, discount
and grocery stores during 1986, re­
flecting a growing trend to conduct
banking transactions in non-bank fa­
cilities.
The new installations will be in
the Twin Cities and Brainerd;
Omah, Neb.; Billings, Mont.; Fargo,
Grand Forks and Bismarck, N.D.;
Rapid City and Sioux Falls, S.D.,
and other markets.
Norwest said its banks have en­
tered into agreements with the
SUPERAMERICA division of Ash­
land Oil, Inc. to operate INSTANT
CASH ATMs in 32 SU PER­
AMERICA convenience stores and
install ATMs in 21 additional
SUPERAMERICA locations at this
time. Norwest and SUPERAMERI­
CA intend to expand this relation­
ship to additional SUPERAMERI­
CA stores in several other markets.
Norwest banks also have agree­
ments with Target stores to provide
ATM services in Montana, Nebras­
ka, North Dakota and South Da­
kota. INSTANT CASH machines
were installed in 10 Target stores in
May as part of the 1986 expansion
program.
Norwest INSTANT CASH ma­
chines also were placed in 11 Rain­

WISCONSIN NEWS. . .
(Continued from page 29)
Racine Banker Wins Award
Jess S. Levin, president and CEO
of the Bank of Elmwood in Racine,
has been named
the first recipi­
ent of the “Wis­
consin Commu­
n ity
B an k er
Award of Excel­
lence” by Wil­
liams, Young &
A sso c ia tes, a
M ad ison
ac­
counting firm
J.S. LEVIN
w hich serv es
banks throughout Wisconsin.
Nominations of bankers from
around the state were submitted,
with the winner selected by a panel

Northwestern
Banker, October, 1986
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

bow Foods stores in the Twin Cities
in May, and two more will be added
in Rainbow stores before year-end.
Additionally, INSTANT CASH
machines have replaced machines of
another network in four Cub Food
stores in the Twin Cities.
Norwest said it has ordered 100
new-generation INSTANT CASH
machines with the capability to pro­
vide several functions in addition to
cash-dispensing and deposit-taking.
The new machines initially will
provide for withdrawal, transfer and
balance inquiry. At some locations
they will be capable of providing
other services in the future, such as
issuing customer statements, ticket
dispensing and coupon dispensing.
The INSTANT CASH network as
of June 1 this year consisted of 400
ATMs in Iowa, Kansa, Minnesota,
Montana, Nebraska, North and
South Dakota, W isconsin and
Wyoming. The number of ATMs
will total more than 550 by year- end
and will continue to grow over the
next several years, according to Al­
bert Lewison, INSTANT CASH
ATM business manager.
The INSTANT CASH network is
linked to eight other regional net­
works in the Midwest and Mountain
states with the CIRRUS interna­
tional network, which has more than
11,000 ATMs in the United States
and Canada.

of banking, government, business
and academic leaders.
The award was presented to Mr.
Levin at an awards banquet at the
Independent Bankers Association of
W isconsin convention a t the
Stevens Point Holiday Inn, Septem­
ber 15.
Mr. Levin assumed the bank
presidency at age 28 in 1974, and in
that time the bank has grown from
$30 million to nearly $100 million in
assets. He has contributed to the
opening of a new Green Acre office
in August. With this new addition,
the bank now provides banking ser­
vices at its original location, at a sixlane motor bank and through an ad­
d itio n a l fre e s ta n d in g TYME
machine located at the Elmwood
Plaza shopping center.
He has assisted in community
economic development efforts, en­

Retired in Edina
First Bank Southdale in Edina
has announced the retirement of
Anne R u th e r­
ford, compliance
director and 23year employee
with the bank.
Ms. R uther­
ford began her
banking career
at First Bank
Southdale as a
p art-tim e em ­
ployee in 1963.
Over the years she has held various
positions in the bank, and was
named compliance director in 1982.
An open house honoring Ms.
Rutherford was held August 27 in
the bank lobby.
Office Opens in Oakdale
Western Bank & Insurance Agen­
cy has opened an office at 7157 10th
Street North in Oakdale in the
K-Mart Plaza just west of 1-694.
The office of Western Bank is
Oakdale’s only banking facility.
Full-service banking is available.
Scott A. Johnson will manage the
facility. He has prior experience in
both retail and commercial banking.
Grand opening festivities for the
bank are being held the week of Sep­
tember 8. The week’s highlight will
be a noon outdoor barbecue on Sep­
tember 13 that will be open to the
public.

couraged the continuing education
of bankers, participated in banking
activities and served the public
through several civic and service ac­
tivities.
The purpose of the award was to
recognize a Wisconsin independent
banker for service to his or her bank,
the community and the banking pro­
fession.
Joined in Menomonee Falls
Sherry L. Rettler has joined F&M
Financial Services Corporation as
controller. Prior to joining F&M, she
was accounting manager at First In­
terstate Corporation of Wisconsin in
Koehler. She had been an instructor
at Milwaukee Area Technical Col­
lege, North Campus Center and was
an audit senior with Ernst & Whinney, Milwaukee.

Two Elected in Fargo
The board of First Trust North
Dakota in Fargo has elected Richard
J . F o re s t as
president, and
John M. “Jack”
Riley as chair­
man.
M r. F o re s t
has been associ­
ated with First
Trust North Da­
kota, (formerly
the M erchants
R.J. FOREST
National Bank
and Trust Company of Fargo), since
1967, when he joined the company
as an assistant trust officer. He has
served in his most recent position as
vice president and senior trust offi­
cer and head of the Fargo division
since 1978.
Mr. Riley began his career in trust
services in 1958, when he joined the
trust department of the Merchants
National Bank and Trust as a trust
officer. In 1966, he was elected vice
president and head of the trust de­
partment. He has served as presi­
dent and CEO of the bank since
1978.
Two Named in Fargo
J. Rick Scanlan and Dean Nagel
have been appointed to assistant
vice presidents-commercial lenders
at First Bank Fargo.

J.R. SCANLAN

D. NAGEL

Mr. Scanlan began his banking
career with First Bank in Missoula,
Mont. Most recently, he served as
manager of the commercial loan

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Federal Reserve Bank of St. Louis

35
Before joining Norwest at the Brit­
ton branch of Norwest Bank Aber­
deen in 1954, he was a high school
principal, teacher and coach in
Hoven, S.D. He spent 12 years in
Norwest’s corporate office in Min­
neapolis as a senior vice president in
the banking division and as vice
president of human resources. He
was manager of the Britton branch
and president of Norwest Bank
Wahpeton before moving to Minnea­
department at First Bank in Worth­ polis in 1968.
ington, Minn.
Mr. Nagel formerly served as an Promoted in Grafton
assistant vice president-commercial
Russell W. Erickson has been pro­
real estate lender at Metropolitan
moted
from vice president in charge
Federal Bank in Fargo.
of agricultural
loans to vice
Norwest Names Regional
p re s id e n t
in
charge
of
all
President in Fargo
Norwest Corporation has an­ le n d in g fu n c ­
nounced that Allan M. Severson has tions at First
been named regional president of its American Bank
Region VII, which is based in Fargo & Trust of Graf­
and oversees 12 Norwest banks in ton. He began
North Dakota and northwestern working at the
Minnesota and a trust company in bank as an agri­ R.W. ERICKSON
North Dakota. He will succeed cultural loan of­
Daniel G. Beck, who will retire in ficer in 1981. Prior to that he had a
position of assistant vice president
1987.
at the Bank of North Dakota in Bis­
marck.

A.M. SEVERSON

D.G. BECK

Mr. Severson is currently vice
chairman of Norwest Bank South
Dakota, based in Sioux Falls. His
appointment is effective January 1,
1987, but he will begin assuming
duties of his new office in October.
He began his banking career with
Norwest at Norwest Bank Moor­
head in 1959 and was senior vice
president at Norwest Bank Fargo
from 1968 to 1971. He has served as
president of Norwest banks in Graf­
ton; Owatonna, Minn., and Aber­
deen and Sioux Falls, S.D. He was
president of Norwest Bank Sioux
Falls from 1982 to 1984, when Nor­
west banks in South Dakota were
consolidated into a statewide bank
and he was named vice chairman.
Mr. Beck has been regional presi­
dent in Fargo since Norwest orga­
nized its banks into regions in 1982.

NDBA Convention Changed
The 1987 North Dakota Bankers
Association annual convention has
been changed to June 15-16, one
week later than previously planned.
The location will remain the same Best Western International Inn in
Minot.
ILLINOIS NEWS. . .
(Continued from page 28)
Promoted in Skokie
Rosemary Saraceno has been pro­
moted to customer service officer
and a s s is ta n t
manager of First
National Bank
of
S k o k ie ’s
Dempster Street
office.
She joined the
bank in 1976,
working in the
consumer loan
department for
R. SARACENO
sev e ra l y e ars
before transferring to the personal
banking department at the main
bank.
Northwestern Banker, October, 1986

Company as assistant treasurer in
1972 and later became vice presi-0
dent. In 1980, he joined United
Bank of Denver as vice president
and comptroller and later became
senior vice president, comptroller
and chief financial officer.
f
A.J. Anderson, pres., Kiowa
^D ^^ChH dea^^xec^^D ^D enver

Several Named at
Central Bank of Denver
Central Bank of Denver has pro­
moted Harlan L. Pepper to senior
vice president. He served previously
as vice president in the asset and lia­
bility division.
Promoted to vice presidents are
Kenneth B. Buckius and Lydia K.
Marenin. Mr. Buckius most recently
served as assistant vice president
and manager of corporate trust ser­
vice administration. Ms. Marenin
previously was department manager
of action banking and assistant vice
president in the retail banking divi­
sion.
Richard P. Anson, Marti L.
Lorenzen, Brad L. Meuli, Nancy
Northrup, Larry O. Risk, Ruth E.

Ross and Edward D. Scott have
been promoted to assistant vice
presidents of the bank.
Douglas R. Dix has been ad­
vanced to corporate trust officer.
Appointed to retail banking officer
is Mary J. Berndt. Susan L. Bockenfeld has been promoted to pension
trust officer.
Also promoted to officer positions
are Carol A. Kelley, J. Eric Lind­
quist, Gordon J. Steuck, Audrey W.
Veraldi and Jean Westbrooke.
Elected in Denver
Roger E. Johnson has been
elected as vice president-real estate
management at United Bank of
Colorado, Denver.
He joined United Banks Service

Two Elected in Pueblo
Frank D. Plunkett, Jr. has joined
Colorado National Bank-Pueblo as ^
vice president and trust officer, and W
Kevin S. McCarthy has been pro­
moted to assistant vice president.
Mr. Plunkett has over 15 years of
trust related work experience, most ^
recently serving as an attorney with W
the Denver firm of Richard E.
Young.
Mr. McCarthy joined the bank in
1983 as commercial loan officer.
q
Promoted in Lakewood
James M. Jorgensen has been pro­
moted to vice president-commercial
loan manager, and Harris M. Coe, ®
Jr. to assistant vice president-con­
sumer loan manager of Colorado Na­
tional Bank-Lakewood.
Mr. Jorgensen joined the bank in
1985 as assistant vice president. Mr. •
Coe joined the bank in 1984.

KfS9
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Banker? Skill, know ledge and consistency, fo r
starters. That's w hy the correspondent bankers at
Central Bank o f Denver undergo extensive training

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Federal Reserve Bank of St. Louis

So, w h e th e r you call fo r help to buy a bank, how to
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37

ings.
Mr. Buckingham joined the bank
in 1984 in the collections area and
then served as industrial representa­
tive until his promotion.
Mrs. Rux began her banking
career in Laurel in 1955. In 1959, she
worked for Security Trust & Sav­
ings Bank until 1974. From 1977 to
the present, she has been supervisor
in the commercial loan operations
area.
Pres. Named in Great Falls
Frank W. Shaw has been named
president of Norwest Bank Great
£ Falls. He suc­
ceeds Dale W.
Anderson, who
will serve as
chairman of the
0 bank’s board un­
til his retirement
January 1, 1987.
Mr. A nderson
was p resident
0 and CEO of the
F.W. SHAW
Great Falls bank
for nine years.
Mr. Shaw most recently served as
executive vice president and senior
• credit officer of the bank. Prior to
that, he served 18 years at Norwest

Bank Helena where he held various
positions, including senior vice
president, senior credit officer and
division manager for the commercial
financial services group.
Named in Eureka
Keith Armstrong has been named
president of the First National Bank
of Eureka. He was formerly with
First Bank of Livingston as vice
president.
Two Elected in Billings
Mike Buckingham has been
elected as industrial loan officer, and
Marilyn Rux as loan operations offi­
cer of First Interstate Bank of Bill­

Named in Poison
First Citizens Bank of Poison has
announced the appointment of
Wayne Haskins lliiilil
as auditor/assistant cashier. His
I
duties will in­
î:
clude the audit
function of the
bank and the
operations area.
Mr. Haskins
is a graduate of
P o iso n H ig h
W. HASKINS
School and re­
ceived his BA in accounting and fi­
nance from the University of Mon­
tana.

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Federal Reserve Bank of St. Louis

Central Bank
Denver

1515 Arapahoe Street
Denver, Colorado 80292
303-893-3456

Member FDIC
Member Central BankSMGroup


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Federal Reserve Bank of St. Louis

h NANCUL

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Use our full range of financing tools to offer your
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III
FIRST W IS C O N S IN
©FWC 1986


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Federal Reserve Bank of St. Louis

Firslier Correspondents

Our Nam e
Speaks For Itself.
So Does Our History.
As Firslier Bank Lincoln, we continue
to be known as one of the Midwest’s most
experienced providers of Correspondent Bank
Services. Our people and our commitment
remain.
As always, we’re the Correspondent
you can depend on for fast, responsive,

Gary L. Bieck
Vice President &
Manager

Kathryn Barker
Ag & Financial Officer

Steve Anderson
Vice President

David Luckey
Ag Inspector

personalized service in meeting your needs...
the kind of service upon which our reputation
was built.
And, as our name now implies, we’re
dedicated to bringing you the very best in
everything we do...backed by more than a
century of hands-on banking experience.

Mark Hahn
Vice President

Marv Hefti
Vice President

Charles Ellis
Operations Manager

Daniel Black
Ag & Financial
Representative

Charles Greenway
Asst. Vice President

Betsy Crowley
Ag & Financial
Representative

Craig Engelage
Ag & Financial
Representative

For all your Correspondent needs, remember the name—Firslier.

^

fir s lie r

B

a

n

k

Lincoln
13th & “ M” Streets • Box 81008 • Lincoln, NE 68501 • Phone: (800) 742-7462
Firslier Bank, N.A., Lincoln, Member FDIC


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Federal Reserve Bank of St. Louis

41
dent, real estate loans and credit ad­
ministration.

ABA Names Minden Banker
Andrew C. “Skip” Hove, Jr.,
chairman and CEO, Minden Ex­
change Bank &
Trust, Minden,
h as been se ­
lected by the
American Bank­
ers Association
(ABA) to serve
as a national
banking advisor
for 1986-87.
As an advisor,
A.C. HOVE, JR.
Mr. Hove will
travel throughout the U.S., speak­
ing with the media and consumers
on such topics as the safety and
soundness of the industry and ex­
panded products and services for
banks.
Mr. Hove has attended a briefing
on current consumer and legislative
concerns at ABA’s Washington
headquarters. The tour year began
in September.
He joined Minden Exchange
Bank & Trust in 1960 and was
elected chairman in 1982. A past
president of the Nebraska Bankers
Association, he currently serves on
the association’s executive council
and the government relations com­
mittee.
In addition, he was mayor in Min­
den from 1974 to 1982 and served
three terms as city treasurer. He is a
graduate of the University of Neb­
raska and the Graduate School of
Banking, University of Wisconsin.
NBA Events Coming Up
The Nebraska Bankers Associa­
tion has a number of educational
events planned through December.
A Customer Financial Planning
seminar is scheduled for early in
November. Dates and locations are
as follows: Nov. 4-Omaha Red Lion
Inn; Nov. 5-Hastings Holiday Inn;
Nov. 6-North Platte Holiday Inn;
Nov. 7-Scottsbluff Country Club.
The annual Legislative Dinner

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Federal Reserve Bank of St. Louis

Andrew Hove, Sr. Dies
Andrew C. Hove, Sr., 81, passed
away September 6 at the Kearney
County Community Hospital in
Minden. He was an officer of the
Minden Exchange Bank and Trust
Company for more than 60 years,
most recently holding the title of
chairman emeritus.
will be held Nov. 6 at North Platte
His son is A.C. Hove, Jr., chair­
Holiday Inn; Nov. 7 at Scottsbluff man of the Minden bank and a past
Country Club; Nov. 20 at Ross’ president of the Nebraska Bankers
Steak House, Omaha; Nov. 24 at Association in 1984-85.
Kearney Ramada Inn; Nov. 25 at
Lincoln Cornhusker Hotel, and Dec.
1 at Norfolk Country Club.
W endell Bailey Joins
A Security Awareness Workshop Nebraska City Bank
will be conducted on the following
Wendell W. Bailey, 48, has been
dates and locations: Dec. 2-Kearney
Ramada Inn; Dec. 3-North Platte elected president of the Otoe County
Holiday Inn; Dec. 4-Scottsbluff National Bank and Trust Company
Country Club; Dec. 9-Columbus Hol­ in Nebraska City. He succeeds Paul
iday Inn; Dec. 10-Beatrice Elks H. Albrecht, who has resigned.
Mr. Bailey previously was vice
Club.
president and cashier of Brenton
State Bank in Eagle Grove, la.,
President Named in Bellevue where he was associated from
Marvin C. Kelley has been named November, 1963 until resigning in
president of Tri-County Bank and August to accept the Otoe County
National presidency. A naive of Cen­
Trust Company,
terville, la., he was graduated from
Bellevue, replac­
Iowa State University in 1960 with
ing Lance Wise,
an
ag-business degree. After two
who joined a
years
of military service, he joined
bank in Albu­
the Brenton organization at Eagle
querque, New
Grove in 1963.
Mexico.
Mr. Bailey also is a graduate of
A native of
the Bank Marketing School at the
Omaha, Mr. Kel­
University of Colorado, Boulder; the
ley has been in
ABA
Commercial Lending School at
banking since
the
University
of Oklahoma, Nor­
M.C.
KELLEY
1949 when he
joined Omaha National Bank. He man; the ABA Bank Investment
worked there for 22 years, serving as School at the University of Illinois,
vice president in the commercial Champaign, and the Graduate
School of Banking at the University
lending department.
of
Wisconsin, Madison.
In 1973, Mr. Kelley was named
president and chief executive officer
of South Side Bank in LaVista. He Construction in Columbus
led that bank for three years before
Platte Valley National Bank in
accepting his most recent position
Columbus
announced plans to
as senior vice president in charge of build a newhas
facility
on the existing
marketing for Packers National bank site. Construction
has begun
Bank and Trust, Omaha. He associ­
and
should
be
completed
by
January
ated with Packers for more than
1987.
At
that
time,
the
bank
name
seven years.
will be changed to First Nebraska
Bank.
Two Elected in Seward
The Cattle National Bank, Se­ VP Named in Central City
At Farmers National Bank of
ward, has elected Donald Bauer vice
Central City, former assistant vice
president, agricultural loans.
In addition, Donna R. Lindquest president Philip L. Greenwood has
has been elected assistant vice presi- been named vice president.

42

malia
Officials of Norwest Bank Neb­
raska, N. A. have announced plans to
revamp the bank’s operations. Spe­
cific actions, which will be under­
taken over the next several months,
include: establishing a new banking
office in northwest Omaha; con­
structing a permanent office at
146th & West Center Road to re­
place a temporary facility now at
that location; merging existing
branches located at the Livestock
Exchange Building, Central Park
Plaza, and 84th & Grover Streets
with other Omaha offices; merging a
limited service office in Kearney into
Grand Island.
Norwest will have eight banking
offices in Omaha plus banking of­
fices in Hastings, Grand Island and
Norfolk, once these plans are imple­
mented.
The new building planned for
146th & West Center Road will con­
tain more attractive and complete
lobby and drive-up facilities than
the temporary structure now at the
site, and will also have an Instant
Cash center. Bank officials are re­
viewing plans for a location in north­
west Omaha and will announce the
details of their planning at a later
date.
The decision to merge certain of­
fices came after months of study,
said John R. Cochran, the bank’s
president. Considered were Omaha
p o p u lation dem ographics and
growth trends as well as usage pat­
terns for existing Norwest offices.
The merging of these branches will
have little effect on staffing levels as
most personnel from the Omaha of­
fices will be reassigned to other Nor­
west locations.
Northwestern
Banker, October, 1986

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Federal Reserve Bank of St. Louis

senior vice president of the trust de­
partment at Norwest Bank Nebraska in Omaha, and has over 30 years
of trust administration experience.
* * *
At a recent meeting in Omaha,
the Missouri Valley Chapter of Robert Morris Associates—the national
association of bank loan and credit
officers—elected its officers and di­
rectors for the 1986-87 term. They
are: President—Robert W. Tritsch,
senior vice president, First National
Bank of Omaha; First Vice Presi­
dent—R. Douglas Fisher, executive
vice president, Hawkeye Capital
Bank & Trust; Second Vice President—Marilyn A. Pauly, vice presi­
dent, Bank IV Wichita; Secretary—
Lawrence F. Uebner, vice president,
FirsTier Omaha, and Treasurer—
Mr. Cochran noted that Norwest Lowell Thrasher, vice president,
has historically served Omaha with Norwest Bank Nebraska.
three separately chartered institu­
* * *
tions—the former U.S. National,
At Douglas County Bank & Trust
Northwestern National and Center
Co.,
two staff members have been
Banks—which were legally obliged
to operate as independent entities promoted. Trish Kuper was ad­
competing with each other. This led vanced to the position of operations
to a branch network containing officer. She joined the bank in 1982
some redundancy once these institu­ in the commercial loan division. She
later served in personnel and booktions merged last fall.
Norwest Bank Nebraska, N.A. keeping and became assistant opera­
was formed on October 1 , 1985, tions officer last November.
when the five existing Norwest
banks in Hastings, Grand Island,
Norfolk and Omaha combined their
capital under a single bank charter.
The resulting institution, headquar­
tered in Omaha, is the state’s larg­
est bank with assets of $1.4 billion.
* * *
First National Bank of Omaha
has announced the appointment of
L.S. ASMUSSEN
T. KUPER
Steven F. Kros to commercial loan
officer. He previously served as
business banking officer with Nor­
Linda S. Asmussen has been pro­
west Bank Nebraska, N.A.
moted to assistant controller. She
joined the bank in 1964 as a key­
punch operator, and has served in
bookkeeping, data processing and
the audit department. She became
internal auditor in 1982.
*

S.F. KROS

H.D. NEELY

The bank has also announced the
appointment of H. David Neely, Sr.
as trust officer. His responsibilities
will include managing personal trust
services. He previously served as

*

*

American Bank Equipment Inc.
has been formed in Omaha. The com­
pany will sell, service, install and
maintain security equipment for the
financial market in Nebraska and
Iowa. Sales and marketing are being
coordinated by Jerry Kruntorad.
Jim Rogers, service manager, will
direct installation, service and main­
tenance.

£

•

®

®

®

•

•

<9

43

A

T h e

Anchormen.
Change comes fast in today’s
banking — so fast you need
an anchor of stability and
dependability.
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

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

©
firs! national bank

Gerry Tomka, Ralph Peterson, Fred Kuehl, Tom Jensen, Tim Smith, Todd Kruse.


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Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1986

44

Nebraska News

At NBA Ag Credit Conference

Economic Development, Ag Lending Are Conference Topics •
By
ROBERT CRONIN
Associate Publisher
VER 260 bankers and spouses
were in attendance during the
O
NBA Ag Credit Conference held last
month at the Cornhusker Hotel in
Lincoln. The program entitled “The
Good News” was designed to pro­
mote the good things that are hap­
pening in agriculture. The one-andone-half day conference covered in­
terest rates, economic development,
ag lending, climatology and legisla­
tive issues. This year’s conference
chairman was Bill McQuillan, execu­
tive vice president of The City Na­
tional Bank in Greeley.
The opening address, presented
by Orion Samuelson, was entitled
“W hat’s Right with Agriculture?”
Mr. Samuelson is vice president of
agricultural services for WGNRadio in Chicago.
“Never say never in agriculture,
because things do change,” was Mr.
Samuelson’s advice. “I feel the pen­
dulum in agriculture is beginning to
swing the other way and the econo­
my has begun to turn around,” he
said. He related a story of a farmer
who told him, “When times are
good, they’ll get bad and when times
are bad, they’ll get good; just make
sure you’re in the right place at the
right time.”
In his concluding remarks, Mr.
Samuelson said “Attitude is the
most important part of the agricul-

tural situation.” He cautioned the
bankers about what he calls the
“coffee shop snydrome.” In his opi­
nion, at coffee-shop-style gossip ses­
sions, many rumors are started and
negative attitudes are fostered.
Dr. James Hagerbaumer, presi­
dent of the economic company that
bears his name, spoke on “What
You Need to Know About Interest
Rates.” “Because of (1 ) deregulation
and (2) the fed policy change in 1979,
there are now bigger swings in inter­
est rates,” said Dr. Hagerbaumer.
He called these two points the
blades of the scissors.
Dr. Hagerbaumer cited two fac­
tors attributing to the drop in inter­
est rates—lower oil prices and the
Gramm-Rudman legislation. Both
have affected the forecast of future
rates, along with such economic in­
dicators as past behavior of rates,
money supply, wage rates, interest
rates, raw material growth and pro­
ductivity growth.
In the second half of his presenta­
tion, Dr. Hagerbaumer emphasized
the need for economic development.
Dr. Hagerbaumer is predicting a
0.5% drop on T-Bills by October and
in one year sees T-Bills at 6.5% and
long-term bonds at 8.5%.
“The Big Red Luncheon” fea­
tured Head Football Coach Tom Os­
borne of the University of Nebraska.

Following the luncheon, Dr.
M ichael B o eh lje p re s e n te d
“Successful Agricultural Lending in f
the 1980s.” He is head of the depart­
ment of agriculture and applied eco­
nomics at the University of Minne­
sota. Dr. Boehlje spoke of the “clas­
sic distribution pyramid problem” £
in agriculture, referring to the fact
that 85% of the farming population
is not at risk of being forced out of
the industry, while 15% of the farm­
ing sector carries most of the debt. £
He emphasized, “This does not
mean we are going to lose 15% of our
farmers, we just have too few farm­
ers with too much debt.” There are
five factors causing the decline of 0
land values, according to Dr. Boehl­
je: declining interest rates, declining
land input fees, declining commodi­
ty prices, decreasing confidence in
government support programs, and #
an excess of properties being held on
the market.
Dr. Boehlje said, “We are in the
situation we’re in because of too
much debt. In 1970, the debt to #
asset ratio was $3 to $1, in 1980 it
was $8 to $1 and in 1986, the debt to
asset ratio is at $12 to $ 1 .” Besides
an enormous debt burden, he
pointed out an excess production ca- •
pacity which of 85%. “We must get
the inventories down and production
levels down to 50%,” said Dr. Boehl-

LEFT—From left, NBA Pres., Kelly Holthus, pres., First Natl., York, with Orion Samuelson, v.p., ag services, WGN-Radio, Chicago; Conf.
Chmn., Bill McQuillan, exec, v.p., Natl. Bk., Greeley, and Dr. James Hagerbaumer, Hagerbaumer Economics, Waukegan, III. RIGHT—Denis
O’Toole, dir. of legislative oper., ABA, Washington, D.C.; Jeff Gerhart, exec, v.p., First Natl., Newman Grove, and Iben Browning, climatolo­
gist, Sandia Park, New Mexico.
Northwestern Banker, October, 1986


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Federal Reserve Bank of St. Louis

45

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48

Nebraska News

LEFT—Present during “ The Big Red Luncheon,” were, from left: NBA Pres., Kelly Holthus; Head Football Coach Tom Osborne, Univ. of
Nebr., and NBA Pres. Elect, Don Blaha, pres., First Natl., Ord. RIGHT—Dr. Michael Boehlje, dept, of ag. and applied econ., Univ. of Minn.,
told bankers that farmers are carrying too much debt.

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je. He foresees a PIK program of
some kind in 1987 and encouraged
bankers to warn their ag supply cus­
tomers that if a PIK program is
enacted, “they could be sitting on a
surplus of chemicals, fertilizer, and
other supplies.”
The concluding morning topic
was discussed by Dr. Iben Brown­
ing, climatologist, Sandia Park, New
Mexico. He gave detailed accounts
and documentation of the changes in
our climate. Dr. Browning ex­
plained, “There is a direct correla­
tion between weather patterns and
world politics. There are docu­
mented accounts of wars and fam­
ines happening when there are
weather disturbances.” According

to Dr. Browning, when the weather
is warm and comfortable, we have
good attitudes, but when the weath­
er is cold and uncomfortable, we are
less sociable. Directing his attention
to agricultural concerns, Dr. Brown­
ing predicted another dust storm
here in the Midwest sometime be­
tween 1989 and 1993.
Two long-time Nebraska agribusi­
ness leaders were honored during
Friday’s Ag Recognition Luncheon.
Those recognized for their numerous
contributions to the state’s ag in­
dustry were Robert Daugherty,
chairman of Valmont Industries,
Valley, and Walter Behlen, founder
of Behlen Manufacturing Co. in
Columbus.
□

Elected in Ogallala
David L. Christensen has been
elected president of the Adams
Bank & Trust
branch
in
Ogallala.
He has been
employed by the
bank since 1982,
most recently as
executive vice
president. Mr.
Christensen has
been in banking D.L. CHRISTENSEN
for 15 years.
He replaces Dave Doll, who has
resigned to accept an investment
position in Oroville, Calif.

the presidency at State Bank of Bur­
chard. He had been serving as con­
troller at the First National Bank,
Wahoo.
A successor is yet to be named at
the Bank of Sterling.

Adrian Falgione Resigns
Adrian Falgione has resigned
from his position as president with
the Bank of Sterling and the State
Bank of Burchard to pursue a new
law career in South Carolina.
Steve Sallenbach has taken over

Appointed in Burweli
The Bank of Burweli has an­
nounced the appointment of Maurie
Larsen to the position of ag loan offi­
cer. He joins the bank from Norwest
in Omaha, where he was a credit offi­
cer.
Banker Completes 69 Years
A.C. (Andy) Peterson, chairman
of the First State Bank, Lodgepole,
completed 69 years of banking on
September 2, 1986.
He began his banking career in
Chappell on September 2, 1917. He
went to Lodgepole on September 2,
1921, where he has been for the past
65 years.

49
Fritz Elmendorf Joins
Consumer Bankers Assn.
Consumer Bankers Association
President Thomas E. Honey has an­
nounced the appointment of Fried­
rich M. (Fritz) Elmendorf as CBA di­
rector of public relations and com­
munications. Mr. Elmendorf pre­
viously was assistant manager, pub­
lic relations, at the American Bank­
ers Association.

SDBA Holds 1986 Group Meetings
URNOUT for the South Dakota
Bankers A ssociation’s 1986
Group Meetings held last month
was excellent. The meetings were
held in five cities: Aberdeen, Mobridge, Rapid City, Mitchell and
Sioux Falls.
The CPA firm of McGladrey,
Hendrickson & Pullen spoke on the
new amendments to the federal tax
code and how they affect banks.
Another highlight of the meetings
was a presentation by Tom Adam,
legal counsel for SDBA, on what

T

bankers are going to have to face
when federal override of the uniform
commercial code exception for farm
products becomes effective on De­
cember 24, 1986. Mr. Adam said
South Dakota may have a central fil­
ing system by December, but it is
not probable. The state will then use
a prenotification system of securing
farm product collateral.
The afternoon sessions had the
best attendance. Over 100 banks
were represented out of 146 banks at
the afternoon session.

Sioux Falls Bk. Names Three
First Bank South Dakota, N.A.,
Sioux Falls, has elected Stanley F.
Biondi as assistant vice president, in
the main office. He most recently
served as a commercial loan officer.
Paula Warns has been elected as
internal control officer, administra­
tive services. She joined First Bank
System in 1982 at First Bank Aber­
deen. In 1984, she transferred to
First System Services where she has
been employed as an internal audi­
tor.
Cory Manning has been elected as
human resources officer, administra­
tive services. She returns to First
Bank from Wachovia Banks in
North Carolina where she had been
serving as a college recruitment of­
ficer. She was named human re­
sources officer in 1984 at the bank
and held that position until her
move to North Carolina earlier this
year.

1985, has been servng as an assis­
tant vice president, financial institu­
tions group in Sioux Falls.
Keven Hayhurst has been pro­
moted to assistant vice president,
finance. Joining Norwest in 1981, he
most recently served as finance offi­
cer.
Jeff Gruntmeir has been named
credit officer. He joined the organi­
zation in 1983, and in 1984 was
named ag banking officer in Mit­
chell.
Darrel Erlandson has joined the
bank as a mortgage loan officer. He
has 13 years of real estate lending
experience.
Named account maintenance
supervisor-deposit operations is
Mary Kay Moran. She joined Nor­
west in 1976 in Rapid City. In 1978,
she transferred to the Sioux Falls
data processing department and has
been supervisor in item processing.

Five Named in Sioux Fails
Norwest Bank South Dakota,
N.A. has announced several promo­
tions in Sioux Falls.
Eric Hohman has been named
manager of Colonial Branch. He
joined Norwest in 1978 and since

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Elected in Gettysburg
Kyle Brinkman has been elected
as loan officer of First Bank Gettys­
burg. He joined First Bank of South
Dakota in 1985 in the banking offi­
cer development program at First
Bank Platte and recently trans­
ferred to First Bank Gettysburg.

SAN FRANCISCO. . .
(Continued from page 12)
move the cable cars throughout the
city. Also on display are several
vintage cable cars and scale models
of many more. Originally con­
structed in 1887, the building had to
be rebuilt after the 1906 earthquake.
Mission Delores: This Mexican
church is San Francisco’s oldest ex­
isting building, dating back to the
1780’s. It has survived three major
earthquakes.
Japanese Tea Garden: Located in
Golden Gate Park are a five-tiered
wooden pagoda and teahouse as well
as winding footpaths, ponds, bonzai
trees, and flowers. The Bronze Bud­
dha was cast in Japan in 1790. The
complex was built for the California
Midwinter Exposition of 1894.
Twin Peaks: Indian legend claims
that these hills were a married cou­
ple who quarreled so loudly that the
“Great Spirit’’ separated them with
a clap of thunder to keep them quiet.
Today the views from the eastern
and northern slopes are the city’s
highest and most panoramic.
Union Street: This stretch of chic,
Victorian-style shops, restaurants
and homes was once the site of
countless dairies in an area called
Cow Hollow. Even earlier the area
was called Spring Valley because of
the numerous springs.
Chinatown: The rapid growth of
the Chinese community in San Fran­
cisco in the 1840’s had its roots in
the gold strike in California and
famine in China. The settlers called
their first settlement Gum San Dai
Foo — Great City of the Golden Hill.
Grant Street, now a major China­
town shopping thoroughfare, was
originally called Dupont Street and
reputedly housed opium parlors,
gambling dens and bordellos. How­
ever, the area was ravaged by the
1906 earthquake and great fire
which accompanied it.
Northwestern Banker, October, 1986

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IBA OFFICERS for 1986-87, left to right, are: Immed. Past Pres.—J. Bruce Meriwether;
Pres.—Russell S. Howard; Pres.-Elect—Clair J. Lensing; Treas.—Fred Hagemann, and
Exec. V.P.—Neil Milner.

Russ Howard Elected President to
Lead 1BA into Its Second Century
By
BEN HALLER, JR.
Publisher
ROBERT CRONIN
Associate Publisher

MELINDA SAUERS
Associate Editor
DIANE NELSON
Associate Editor

speakers; “Uncle Sam” was much in
evidence throughout the exhibit
area and main convention hall, and a
to be as much fun and as worthwhile grand birthday party featuring an
as the months of preparation and an­ eight-foot diameter birthday cake
ticipation that preceded it. The Des made up of 36 sheet cakes climaxed
Moines Convention Center was gaily the Centennial.
New Officers
decorated in historic red, white and
In the midst of all the gaiety,
blue colors; nostalgic vignettes of
early-day IBA conventions punctu­ bankers found time to welcome their
ated the two days of meetings; na­ new IBA officers for 1986-87. The
tive Iowans returned to take part as new president is Russell S. Howard,
ELEBRATING the Centennial
Convention of the Iowa Bank­
C
ers Association last month proved

£

51
chairman of Mahaska Investment
Co., Oskaloosa. The holding com­
pany’s principal bank is Mahaska
State Bank in Oskaloosa, of which
he is also chairman. As IBA presi­
dent, Mr. Howard succeeds J. Bruce
Meriwether, president of the First
National Bank of Dubuque.
The new president-elect is Clair J.
Lensing, president of Farmers State
Bank in Marion. Continuing as trea­
surer for a second year is Fred W.
Hagemann, president of State Bank
of Waverly. Neil Milner, executive
vice president, heads the profes­
sional IBA staff at Des Moines
headquarters.
Entertainment Was Super
Festivities for the Centennial
Convention got underway late Sun­
day afternoon with a delightful
“Sunday in the Park” reception at
Hoyt Sherman Place, a historic
women’s club building named after
General Hoyt Sherman, an early day
Des Moines banker. Guests were of­
fered rides in old-fashioned horsedrawn buggies, as well as buffet
snacks, home-made ice cream and
giant cookies.
The Monday night entertainment
featured Des Moines native Roger
Williams (nee Louie Weertz) whose
superb piano playing with his
10-piece orchestra drew standing
ovations at the conclusion of both of
the one and one-half hour shows.
The concluding event was another
gala affair—the Inaugural Dinner,
followed by an outstanding perfor­
mance from The Great Pretenders, a
four-man singing quartet from Pipe­
stone, Minn., who made such a hit at
the IBA Group 3 meeting at Okoboji in May.
In between, many correspondent

LEFT—Period costumes were worn by some to the “ Sunday in the Park” opening ceremonies the first day of the convention at Hoyt Sher­
man Place. From left are: Bill Rickert, sr. v.p., Natl. Bk. of Waterloo, and May, and Joan and Bill Logan, pres., The State Central Bank, Keo­
kuk. RIGHT—IBA staffers who donned period costumes to host the party Included, from left: Barb Lowe, Rose Clay, Dennis Bole, Marcia
Collins and Andrea Schardein.


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Northwestern Banker, October, 1986

52

Iowa News

LEFT—IBA Pres. Bruce Meriwether convened the Centennial Convention wearing a
powder blue formal suit. CENTER—“ Uncle Sam wants you,” proclaims Dick Holthaus
as he poses with IBA Exec. V.P. Neil Milner during one of the many Centennial vignettes
on stage. RIGHT—John W. Hopkins, pres., Albert City Savings, was the picture of sar­
torial elegance at the “ Sunday in the Park” reception.

LEFT—Art Lindquist (center), exec. v.p. of the IBA from 1966-72, was welcomed home to the Centennial Convention by IBA Exec. V.P. Neil
Milner and Pres. Bruce Meriwether. Art and his wife, Dean, have lived in the San Diego area since 1974. RIGHT—The Centennial brought
many old friends together like this group, from left: Alice Huston; Les Olson, pres., Commercial T&S, Mitchell, S.D., and his wife, Faye, and
Tom Huston, pres., Columbus Junction State Bank. Mr. Olson and Mr. Huston are IBA past pres.

bank receptions, luncheons and din­
ners; spouse activities; 50-Year
Bankers Club luncheon, and a slate
full of main speakers and concurrent
sessions kept the registrants busy.
Guests entered the convention hall
by walking through the Exhibit Cen­
ter, where they found countless dis­
plays of the latest banking, electro­
nic and other types of services.

of competition, both inter and intra­
state, from other financial pro­
viders. To be divided within our in­
dustry simply gives Congress and
our State Legislature the perfect ex­
cuse not to vote in our best interest.
As much as many of us abhor the
dichotomy of the legislative process,
it is something we must live with
and understand.
“It has been discussed at our
board meetings numerous times
President’s Address
Mr. Howard stated in his address that we must go to our lawmakers
at the Inaguaral Dinner, “In the with a firm agenda, a program that
past several years, your Presidents we unanimously support. We were
have issued a plea for unity. I can soundly defeated in the last Legisla­
only reiterate their call and empha­ ture. We can ill afford to repeat that
size to you that we no longer have experience.”
Mr. Howard decried those at the
the luxury of being able to argue
among ourselves, going our separate two extremes — those who predict a
independent ways. It is imperative need for only a handful of large
that we band together in the strong­ banks, and those “who would have
est common front to meet the threat us operate in the laissez faire envir­
Northwestern Banker, October, 1986


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Federal Reserve Bank of St. Louis

onment of the early 1900s — like all
extremists, they really do not have a
philosophy, but rather a mind-set,
and this makes them acutely unable
to compromise...We must return to
the ability to think rationally and to
band together to speak with one
voice.”
Mr. Howard also discussed the
need for sounder federal fiscal man­
agement, and the need for all
bankers to recognize the extent of
the agricultural restructuring in pro­
gress in the Midwest. He closed by
saying, “ I submit to you all that we
must become the leaders as bankers
in bringing economic development
to Iowa.”
Opening Ceremonies
Monday morning’s general ses­
sion began with special opening
ceremonies. For a patriotic kick-off

I

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□A
V E IN P O R T BAINK
---------------- /VIMID T R U S T C O M P A N Y ---------------2 0 3 W EST T H IR D STREET, D A V E N P O R T, IO W A 5 2 8 0 1 - 1 9 7 7
MEMBER

FDIC

Northwestern Banker, October, 1986

54

Iowa News

LEFT—Regulators’ panel consisted of Wm. R. Bernau, Iowa supt. of bkg.; Charles E. Thacker, FDIC reg. dir., Kansas City; Robert Klinzing,
deputy Comptroller of the Currency, midwestern dist., Kansas City, and James Morrison, sr. v.p., Chicago Federal Reserve. RIGHT—John
W. Hopkins (seated right in derby hat), pres, of Albert City Savings Bank, transported two full rooms of antique bank office equipment to
Des Moines for the Centennial exhibit. Pictured here is some of it which is in his own office at Albert City. Standing are, from left: Joe E.
Hutchinson, pres., Union State, Rockwell City; Jim Cuttell, pres., George State, and Don Kout, pres., Farmers & Merchants Savings, Lone
Tree. Seated are Linda Hopkins and her husband, John.

to the centennial convention, atten­
dees joined in on the Pledge of Alle­
giance, the National Anthem, and
“God Bless America.” A tribute to
IBA president Bruce Meriwether,
also known as “The Duke of Dubu­
que,” was followed by Mr. Meri­
wether’s welcome address. A troupe
of actors from Grand View College
in Des Moines then presented a vig­
nette on the proceedings of the
IBA’s first convention in 1887, the
first of several sprinkled throughout
the two days.
Iowa Governor Terry Branstad
addressed the convention, thanking
bankers for their “sensitivity and
forbearance” during the agricultural
crisis. He expressed pride in the role
banking has played in encouraging
economic growth in Iowa, and pre­
sented Mr. Meriwether with a
plaque proclaiming “ Iowa Bank
Week” in honor of the convention.
An audio-visual presentation was
employed to introduce the IBA’s
special centennial project, “Bring a
Bank to Walnut Hill.” Commemora­
tive coins will be sold by Iowa banks
over the next year to raise funds to
build an authentic 1870’s bank for
the historic town of Walnut Hill at
Living History Farms in Des
Moines.
Morning Sessions
The first speaker on Monday
morning was Nancy Austin, co­
author of the book A Passion for E x­
cellence. She pointed out the explo­
sion of small businesses and gave
the example of Stew Leonard’s Gro­
cery Stores. The store has turned a
mundane business into something
fun by having ice cream and cookies
served to customers in the checkout
Northwestern Banker, October, 1986


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Federal Reserve Bank of St. Louis

line, in addition to a number of other
creative services.
“Perception is the most impor­
tant word when it comes to custo­
mer service distinction,” Ms. Austin
said. Only 14% of customers leave a
business because they are dissatis­
fied with a product. Sixty-eight per­
cent leave because of disinterest or
indifference. “Service is the magic,”
she told the audience. “ It is always
the thousands of little things that
add up to the unassailable advan­
tage.”
Iowa native Steve Bell, ABC
news anchorman, was on hand to
share his experiences in journalism.
While conceding that the media
can’t be perfectly objective in thencoverage, he stated that America
boasts the world’s “best, fairest,
and most comprehensive news
coverage.” The articulate and enter­
taining newsman covered a broad ar­
ray of topics as well as answering
several questions from the floor.
Concurrent Sessions
New to this year’s convention
were the concurrent sessions held on
Monday and Tuesday afternoons. A
number of excellent speakers spoke
on a variety of topics relevant to the
banking industry today.
“When the Media Knocks: Don’t
Panic.” Delivering a fun and infor­
mative session on how bankers
should handle the media, Arch Lustberg of Arch Lustberg Communica­
tions, Washington, D.C., instructed
bankers to use four weapons when
communicating to the public and the
media: the mind, face, body and
voice. He gave four points to remem­
ber regarding the mind: remain
silent in the pause, make eye con-

tact, eliminate the negative, and
convert the negative to the positive.
“Be delightful, not a pompous ass,”
he advised. “Aim your mind before
you fire your mouth.” Mr. Lustberg
said to never refuse to talk to a
reporter, or the public will think you
are hiding something.
The session began with bank
employee participants being asked
negative questions from Mr. Lustberg, who acted as a pushy reporter.
At the end of his talk, he played
back the interviews, which were
videotaped, and pointed out the par­
ticipants’ weaknesses.
“Meet Your Regulator.” A t­
tendees were given the opportunity
to meet their regulators at this ses­
sion. One of the regulators, William
R. Bernau, Iowa superintendent of
banking, told bankers they need to
renew their commitment to farmers
and farm-related industries and to
the traditional safe and sound bank­
ing practices. He said an integral
part of those banking practices is
“the three C’s of Credit—character,
colleteral and capacity—recognizing
that the lending function is the heart
of each of our banks.” He said to
abandon these markets by giving no
more farm loans would be “the rank­
est folly.” He went on to say, “We
must renew our commitment and
stay involved.”
Charles Thacker, regional direc­
tor, FDIC, Kansas City, spoke on
FASB-15, capital forbearance, pro­
viding for loan losses, problem
banks and the effect of staffing
shortages on bank regulators.
On the subject of FASB-15, Mr.
Thacker said, “FASB-15 defines a
troubled debt restructuring as one

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Federal Reserve Bank of St. Louis

56

Iowa News

LEFT—Receiving a special Centennial recognition award from Gov. Terry Branstad (second from right) were IBA executives Fred Hagemann, treas.; Bruce Meriwether, pres., and Neil Milner, exec. v.p. RIGHT—Iowa State University head basketball coach Johnny Orr(left)
poses with Bill Logan, pres., The State Central Bank, Keokuk, a former All-American basketball player from the University of Iowa.

in which a bank for economic or legal
reasons related to the borrower’s fi­
nancial difficulties grants a conces­
sion to the borrower that it would
not otherwise consider.” He said
FASB-15 is being used in real estate
transactions and the sale of other
real estate on contract to third par­
ties. Banks, he said, are utilizing
reduced interest rates and partial
principal reduction for internal res­
tructuring of debts, but not under
FASB-15. Thus, Mr. Thacker feels,
m isunderstanding and lack of
knowledge is the reason for the
limited use of FASB-15. He said,
“FASB-15 is a valuable tool for
banks to use and should not be over­
looked when addressing the multi­
tude of problem credits with which
you are presently confronted.”
Capital forbearance was intro­
duced by the Federal regulatory
agencies on March 27, 1986. Mr.
Thacker said, “The basic principle of
capital forbearance is to allow a
bank which has suffered diminuition
of capital as a result of either the
agricultural or energy economy to
restore capital over a period of time
if it appears that the bank has a
reasonable chance to do so.” The
number of banks requesting capital
forbearance has been small, he said,
but the number of more recent appli­
cations receiving favorable consid­
eration is greater than for those ap­
plications received early in the pro­
gram, which did not qualify. He said
that some have suggested that capi­
tal forbearance is “merely window
dressing” by the regulator and that
it is not being granted, but Mr.
Thacker assured participants it is,
although applications remain rela­
tively small.
Regarding bank examinations
Northwestern
Banker, October, 1986

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and personnel, he said the examiners
are young in terms of employment,
but they will develop and gain ex­
perience over the next year. More
frequent examination schedules are
anticipated, he said.
Bob Klinzing, deputy comptroller,
Midwestern district, Office of the
Comptroller of the Currency, said a
bank/borrower relationship is simi­
lar to regulator/bank relationship.
“Regulators prefer that banks call
them and let them know about the
problems before they get out of
hand,” he said.
Mr. Klinzing said regulators send
a bank a written understanding of
what needs to be done to correct pro­
blems and agree on steps to be
taken. “A formal agreement is not a
foreclosure notice,” he said. It
serves as a written understanding to
help the bank chart its course to cor­
rect problems. “We are both inter­
ested in the success of the bank.

Nick Deleonardis, sr. v.p., LaSalle Natl., Chi­
cago, discusses one of his charts pre­
sented during his “ Profitable Investment
Portfolio Management” concurrent ses­
sion.

Let’s not lose sight of this,” he con­
cluded.
James Morrison, senior vice president, Federal Reserve Bank, Chi­
cago, said the involvement of direc­
tors is essential to a bank’s success.
“You, as managers, should be keep­
ing them (directors) involved and informed,” he said.
He said the availability of credit
is loosening up a bit and this is en­
couraging. He reminded participants that examiners are there to
evaluate the loan, not tell the bank
what to do.
“Asset/Liability Management.”
Phillip Rowley, senior vice president
and chief financial officer at First
Interstate Bank of Des Moines, ex­
amined the balance sheet with a goal
of achieving a pre-determined inter­
est margin whether interest rates go
up or down. The key to accomplish­
ing this task is careful evaluation of
the bank’s assets and liabilities to
determine interest sensitivity and li­
quidity. By matching funds in
assets and liabilities according to
these criteria, the bank is assured of
financial flexibility that will not be
threatened by changes in interest
rates.
“Profitable Investment Portfolio
Management.” Nick DeLeonardis,
senior vice president and treasurer
of LaSalle National Bank, Chicago,
looked at similar questions in his
talk. He also discussed the proper
levels of interest-sensitive assets
and liabilities according to the eco­
nomic environment. Mr. DeLeonardis suggested several tools the portfolio manager can use to make ad­
justments: the interest rate swap,
whereby a trade is made with a cor­
respondent bank of fixed rate for
floating rate loans or vice versa; in-

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At First Interstate of Des Moines reception: Al Maser, chmn., 1st Natl., Le Mars, and Delores, with Chris and Randy Steig, v.p., First Interstate; Bruce Meriwether, pres., 1st Natl., Dubuque, and now past pres., IBA, with Shirley; Happy and Bob Millen, pres., First Interstate.

LEFT—Shown at Davenport B&T breakfast were: John W. Schricker, 1st v.p., host bank; Bill Paulsen, pres., Liberty T&S, Durant, and
Margy; Mike Bauer, 1st v.p. corr. bk. div., Davenport B&T, and Ron Hansen, v.p., Liberty T&S. RIGHT—Pictured at Northern Trust reception:
Don Hummel, sr. v.p. of host bank, Dale Torpey, ceo., Washington State, Bob Sierk, exec, v.p., 1st Natl., Iowa City, and Jim Monhart, 2nd
v.p., Northern Trust.

LEFT—Bob Jamerson, chief architect, Kirk Gross Co., Waterloo; Jerry Volk, cash., Cascade State, and Jerry Gross, pres., Kirk Gross Co.
RIGHT—Pictured at LaSalle Natl, of Chicago luncheon were: Wayne Bismark and Del Rogers, v.p.s of host bank; Ed Tubbs, chmn., Maquoketa State, and Peter McGuire, v.p., LaSalle Natl.

0

LEFT—Representing Data Business Equipment, Inc. of Des Moines are, from left: Wally Geiger, pres.; Tom Kolb, mktg. mgr.; Jim Landuyt,
repr., and Lynn Groen, repr. RIGHT—Showing some of the newer designs in bank remodeling were, left: Roy Wingers, sr. consultant, Bank
Building Corp., St. Louis, and Donald Moehlenkamp, fin. building mgr., MBI, Overland Park, Kan.


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58

Iowa News

LEFT—Shown here at the Office Concepts, Ltd. booth were, from left: Patty Bornhoft, cash, and John Campbell, pres., both, Natl. Bank of
la., Denison; and back, Ross Schoonover, v.p., and far right, James Jones, both with Office Concepts, Waterloo. RIGHT—Greeting visitors
at the AgriCareers, Inc. booth were, from left: Jean Eden and Sandi Garner, both ag. bkg. specialists with AgriCareers, Inc., New Hampton.

vestment in futures; purchase of col­
lateralized mortgages; or purchase
of a “cap” on liability interest rates
from a correspondent bank. He ex­
amined the advantages of the
various approaches and also cau­
tioned his audience as to their
dangers.
“Product Pricing and Non-Inter­
est Income.” The profitability of
“free checking” was one of the
points made by Michael Moebs,
president of G.M. Moebs & Associ­
ates, Lincolnwood, 111. His presenta­
tion included the story of a bank
that used free checking to increase
its fee income by $170,000 a year.
The profits came from increases in
charges for new checks, overdrafts
and non-sufficient funds. Mr. Moebs
gave a variety of tips for best use of
product pricing, based on actual suc­
cess stories—such as the bank that
began charging one dollar for each
ATM transaction and lost only 10%
of its ATM customers, while increas­
ing fee income $2000 a month.
General Session Reconvenes
The President’s Report was deliv­
ered by Mr. Meriwether, who ex­
pressed pleasure at the current asso­
ciation participation. Membership
stands at over 600 banks, nearly
100% of those in the state. The
IBA’s budget is in the black, and
this year’s group meetings had re­
cord attendance. In regard to ag
problems, Mr. Meriwether recom­
mended continuing dialogue with
social concern groups. He thanked
the membership for their participa­
tion and encouraged them, saying,
“We have a long road of involve­
ment ahead of us...we need your in­
put.”
Closing Monday’s session with a
witty talk was Johnny Orr, head
basketball coach at Iowa State Uni­

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versity, Ames. Coach Orr addressed
the recent NCAA violations at ISU,
and said legal matters regarding the
basketball program should be
wrapped up soon.
Tuesday Morning Sessions
The return of the Ag Breakfast to
the convention format proved to be
not only a welcome addition but a
most timely one as well. The occa­
sion was used as the national plat­
form to announce the results of
ABA’s $300,000 year-long study on
“Transition in Agriculture: A Stra­
tegic Assessment of Agriculture and
Banking.”
Presenting details of the study
conducted by Professor John Hopkin of Texas A & M University and
ag finance economists from Texas A
& M, Texas Tech and the University
of Illinois, were ABA’s two top ag
division bankers. Teaming up for
the report at the Iowa convention
were Alan R. Tubbs, immediate past
chairman of the ABA Agricultural
Bankers Division, under whose lead­
ership the study was approved by
the association, and Michael E.
Fitch, current chairman of the Ag
Bankers Division. Mr. Tubbs is
president of First Central State
Bank, DeWitt, la., and executive
vice president of Maquoketa State
Bank. Mr. Fitch is vice president in
charge of agribusiness affairs at
Wells Fargo Bank, San Francisco.
They were assisted by Jeff Rodman,
a native Iowan who is now associate
director/manager of the ABA Ag
Bankers Division, and Sheldon
Golub, the veteran ag communica­
tions representative at ABA.
They said the study provides
basic, empirical data sought by Con­
gress and the Administration, as
well as ABA itself on which to base
discussion and possible legislation

to chart a course for farm banking in
the future. The report foresees three
types of banks serving agriculture in
the future: “traditional” banks,
serving needs of part-time or small
farms; “vanguard” banks to service
moderate-size farms and agribusi­
ness, and “megalithic” banks to
serve large agribusiness.
A detailed report of the presenta­
tion was published in the September
22 edition of the N orthwestern
B anker Weekly Newsletter.
Science futurist Daniel Burrus of
Waukesha, Wis. was the first fea­
tured speaker Tuesday morning. His
positive outlook on future technolo­
gy exhorted the banking industry in
several ways: make long-range
plans, be fully acquainted with all
aspects of advancing technology,
balance experience with creativity,
and remember that the speed of
change has greatly increased. Dr.
Burrus’s description of video games
played with the brain, board meet­
ings by hologram, hydrogen cars
and robots fascinated and delighted
the audience. Most encouraging was
his prediction that the Midwest is
the future’s hot spot, since it
reached crisis first, and “crisis and
opportunity are the same word.”
Hugh Sidey, Washington contri­
buting editor for Time magazine and
another native Iowan, was next on
the program. He reflected upon past
presidencies and presidential campaigns, observing, “The world is
slowing down because politics is tak­
ing over...we are too much into cam­
paigning, not enough into govern­
ing.” While expressing dismay at
problems such as the deficit, Mr.
Sidey stressed the importance of
keeping a sense of humor in the face
of economic difficulty.
An unusually large number of

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LEFT—Banks of Iowa held its annual reception In the Valley Natl, lobby. Present were, from left: Jerry Trudo, v.p. & mgr., Merchants Natl.,
Cedar Rapids, and wife Ruth; Henry Royer, chmn. & pres., also with Merchants; Gary Harstick, v.p., B of I Inc. and J. Locke Macomber,
chmn., Valley Natl., Des Moines. RIGHT—Also in attendance were, from left: Jim Olson, B of I, Inc., and wife, Carol, with Gary Stevenson,
v.p., First Natl., Sioux City, and Max Roy, sr. v.p., Drovers Bank of Chicago.

LEFT—Greeting guests at the Bankers Trust reception were John Chrystal, pres.; John Ruan, chmn., and Ben Eilders, sr. v.p. RIGHT—
Reviewing the ABA “ Transition in Agriculture” special report before it was released at the IBA Ag Breakfast were, from left: Mike Fitch,
chmn. ABA Ag Bankers Division and v.p., Wells Fargo Bank, San Francisco; Jeff Rodman, assoc, dir./mgr., Ag Bankers Div.; Alan Tubbs,
immed. past chmn. ABA Ag Bankers Div. and pres., First Central State, DeWitt, and Shel Golub, ABA communications division.

LEFT—Arch Lustberg (right), Lustberg Communications, Washington, D.C. talks with Leslie Miller, a.v.p., Davis County Savings, Bloom­
field, and Tony Payne, pres., First Natl., Council Bluffs, prior to his workshop. RIGHT—Visiting at the Brandt Money Handling exhibit were,
from left: Jim Grimes, reg. mgr., Brandt, Omaha, and Mark Arneson, chmn., Clear Lake B&T.

#

LEFT—Present at the IBIS booth were, from left: V.P.s Gary Livesay, Merrit Krause, and Jim Jensen. RIGHT—At the FirsTier Management
Consultant booth were, from left: Jay Dunlap, v.p., Dunlap Savings; Bob Neville, fin. systems coord., and Mike Baker, sr. consultant, both
with FirsTier Management Consultants, Omaha.


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Iowa News

LEFT—Greeting guests at the Norwest Bank Des Moines breakfast were, from left: Tom Quinlin, 2nd v.p., and John Rigler, v.p. & mgr., w ith ^
guests, Tom Whitson, pres., Council Bluffs Savings, and wife Kathy. Also present, Lynn Horak, pres. & c.o.o., Norwest Bank Des Moines.
RIGHT—Enjoying themselves at the FirsTier Bank Omaha reception were, from left: Jim Allen, v.p., FirsTier, Omaha; Mark Langenfeld,
pres., Farmers T&S, Earling, and wife Helen, with John Wear, a.v.p., FirsTier, Omaha.

50-year bankers and past officers re­
turned for their special luncheon.
The noon hour also featured an an­
niversary party in the exhibit hall.
Music, balloons, party horns, cham­
pagne and a cake eight feet across
were included in the festivities.
Concurrent Sessions
Six sessions were offered Tuesday
afternoon. “Banking in Stressful
Times” was discussed by psycholog­
ist Dr. Stephen Douglas of Colum­
bus, Oh. His common sense ap­
proach encouraged cutting off stress
at the input valve, rather than try­
ing to deal with its physiological
results. Most of all he urged audi­
ence members to lower their expec­
tations of life to a level at or lower
than reality, while maintaining their
high standards.
ITS, Inc. President Dale Dooley
and his staff spoke on developments
in electronic funds transfer and
point-of-sale. They described the
model Iowa system, which currently
involves 565 commercial banks, 320
credit unions and 26 s&ls, with 1315
operating terminals. The ITS sys­
tem is expanding into Illinois, Mis­
souri, Nebraska and South Dakota.
Well established in supermarkets
with 482 terminals, it is presently
moving into the gas station market
and plans to tackle department
stores and variety shops next year.
The media campaign to encourage
ATM use was also explained.
“Managing Ag Problem Loans.”
Tackling the topic of ag problem
loans was Dr. Michael Boehlje, head
of the department of agricultural
and applied economics, University
of Minnesota, St. Paul. He said the
three ways a good ag officer spends
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Federal Reserve Bank of St. Louis

his time is with problem loans, good
customers and business develop­
ments. Good customers and busi­
ness development make money, but
problem loans, where a majority of
an officer’s time is spent, don’t make
money. “Now is the prime time for a
new business development pro­
gram,” said Dr. Boehlje, because the
Farm Credit System, a major com­
petitor has a customer base looking
for options.
To combat the problem of spend­
ing too much time with problem
loans, Dr. Boehlje suggested a work­
out specialist be appointed to speci­
fically work out problem loans to
allow the ag specialists to concen­
trate on other banking needs.
“When Push Comes to Shove:
Controlling Your Regulator.” Mary
Curtin, attorney, Lindquist & Vennum, Minneapolis, addressed the
delicate subject of controlling your
regulator. She dealt with the
CAMEL ratings and said 4 and 5
ratings are obviously problem
banks, but a 3 rating is also con­
sidered a problem bank. The regula­
tors will send 4 and 5 rated banks
Cease and Desist orders, she said,
and a 3 rated bank will receive an in­
formal document that is not legally
enforceable. When getting a paper
from a regulator which calls for a
bank signature, she said to make
sure you find what it is asking of
you before you sign.
Other sessions offered were
“Let’s Talk Double Jeopardy” with
Thomas Salsbery, attorney with
Davis Hockenberg, Wine, Brown,
Koehn & Shors, Des Moines and
Floyd Stoner, federal legislative rep­
resentative for the ABA; and “The
Impact of the Tax Reform Bill”

with Charles Orr, tax partner,
McGladrey Hendrickson & Pullen, ®
Iowa City.
General Session Reconvenes
Neil Milner gave his Executive _
Vice President’s report on Tuesday 9
afternoon, emphasizing the need to
stay involved in the IBA. He said
the association needs the strength of
its members in helping to find the ^
tools to compete in the industry.
^
A major consideration of the
association, he said, will be agricul­
ture. During Mr. Milner’s report,
Steve Stahly, p r e s i d e n t of ^
MABSCO, announced that a first w
mortgage and secondary real estate
market for ag loans has been de­
veloped and will begin funding for
the loans in Iowa and Illinois in mid- ^
November, with other states to
follow soon. Details of the announce­
ment were reported in the Septem­
ber 22 N orthwestern B anker
Newsletter.
q
Mr. Milner thanked the bankers,
because as he said, “Without you,
there would be no Iowa Bankers
Association.”
Following Mr. Milner’s report ^
was a presentation on the economy
by Dr. Murray Weidenbaum, direc­
tor for the Center for the Study of
American Business, Washington
University, St. Louis. In his ad- 0
dress, he outlined the new tax bill,
and said banks would be a major
loser. But the tax bill wasn’t all bad
news for the industry, he said,
because “taxes and deficits aren’t 0
the main show in an American eco­
nomy.” His fearless forecast for
1987 is that there will not be a
strong boom, but he doesn’t foresee
a recession either.
0

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LEFT—At the United Missouri Bank of Kansas City dinner were, from left: Phil Straight, exec, v.p., UMB; John Sagers, pres., Peoples B&T,
Cedar Rapids and wife Ann; Lyle Wells, chmn., UMB; Margaret Billings, v.p., Peoples B&T, Cedar Rapids, and Don Ellis, exec, v.p., also with
Peoples B&T, and wife Mary Lou. RIGHT—Also in attendance were, from left: Jeff Goble, v.p., UMB; Dan Doyle, pres, and Ann Doyle, v.p.,
Wellman Sav.; Clark Houghton, pres., First Natl., Iowa City, with wife Joan, and Dick Muir, v.p,, UMB.

LEFT—Enjoying themselves during the annual Security National Bank of Sioux City breakfast were, from left: Jim Cuttell, pres., George
State; Dick Schneider, pres., Security State, Sheldon; Dennis Nahnsen, v.p. and Gene Hagen, pres., both, Security Natl., Sioux City; Eldon
Hoppenworth, pres., Sac City St., and Chuck Wetzeler, pres., State Bank, Spirit Lake. RIGHT—Present during the Drovers Bank of Chicago
breakfast were, from left: Max Roy, sr. v.p., Drovers Bank; William Beohm, pres., Tama State; Frank Bauder, dep. chmn., Drovers Bank; St.
Super of Bkg. Bill Bernau, chmn. & pres., Peoples Savings, Crawfordsville, and John Crotty, Jr., sr. v.p., Drovers Bank.

LEFT—Helping promote profits at one of the more popular exhibits were these men from the National Bank of Waterloo. From left: John
Cunningham, v.p.; Erl Schmiesing, sr. v.p. & cash.; R. Scott Fetner, pres., and Milton Hennick, v.p. RIGHT—Hosting the Continental Bank
of Illinois luncheon were, from left: Robert Vasko, sr. v.p.; Phil Adams, v.p., and Mary Nihlean, bkg. off. with guest Larry Frowick, sr. v.p.,
Bankers Trust Co., Des Moines.

LEFT—Trying to guess the “ secret word” at the popular Creditor Resources, Inc. exhibit were, from left: “Groucho Marx”; Tim Bird, Credi­
tor Resource Center, Des Moines, and Jerry Trudo, v.p. & mgr., Merchants Natl., Cedar Rapids. RIGHT—Visiting at the American Express
booth were, from left: Ben Tietjens, Teeds Grove Savings, Clinton, and Mark Bliss, acct. repr., American Express Traveler Cheques, Des
w Moines.

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Iowa News

LEFT—At the Norwest Bank Nebraska dinner were, from left: Tim Terves, fin. inst. group, Norwest Banks, Mpls.; Dick O’Bryan, pres., Har­
lan Natl., and wife Mary; Traverse Hall, pres., F&M State INeola, and wife Roberta, and William Dewhurst, v.p., Norwest Bank Nebraska,
Omaha. RIGHT—Also present were, from left: Charles Undlin, pres., Norwest Bank, Omaha; John Sampson, sr. v.p., Norwest Banks Mpls.;
Stephen Navin, v.p., Norwest Bank, Sioux City; Gordon Nicholas, chmn. & pres., First Whitney B&T, Atlantic, and Russ Olson, dir., Peoples •
Savings, Odebolt.

LEFT—Enjoying themselves at US Check Book’s hospitality suite were, from left: Mike Flynn, v.p., First Natl., Ames, and wife, Teresa;
Chuck Stratton, US Check Book, Omaha; Leanna and Ed Jacobson, sr. v.p., First Natl., Ames. RIGHT—At the First Interstate Information
Systems, Inc. booth were, from left: Joan Thompson, inv. off. and Brian Hughes, inv. serv. repr., both with First Interstate, Des Moines;
Walt Astor, fin. mktg. off., FIIS, Inc., Cedar Rapids; Don Jacobs, product mgr., FI IS, Inc., Des Moines, and Bill Mullins, v.p., First Interstate,
Des Moines.

The Iowa Bankers Association
will officially complete its 100th
year on July 26, 1987, and further
Centennial observances will be

noted during the coming year. The
1987 IB A convention is scheduled
for the Des Moines Convention Cen­
ter next September 20-22.
□

Centennial Convention crowd posed for this photo, then ate the 8-foot diameter cake!

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64

Iowa News

Centennial nostalgia!
m
Editor's Note: The Iowa Bankers Association observed the
100th Anniversary of its first and founding convention in Sep­
tember, 1986, and the IB A will complete its first 100 years of
service on July 26, 1987. A number of Iowa bankers who are
members of the IBA 50-Year Bankers Club responded to our
invitation to share with other readers some of their reminis­
cences of earlier Iowa banking history. These vignettes begin
with this issue and will be carried in subsequent issues during
the Centennial Year. Veteran Iowa bankers who have special
memories to share, or others who have access to earlier bank­
ing events and records that would be of interest to our readership, are invited to send us their comments. This could in­
clude bankers from other states whose stories might tell of the
further growth of midwest banking.

By E.V. SLIFE, SR., President
Farmers State Bank, Hawarden, la.
(Entered banking in 1918)

The Farmers State Bank of Hawarden opened
for business June 30,1917.1 went to work for the
bank on March 4, 1918, and have been continual­
ly employed by the bank since that time.

Vignettes of Banking
Our June 30th statement in 1920 showed de­
posits of $540,000, an increase from nothing to
this amount in 18 months.
It is interesting to me that the major depres­
sions we have had in the United States all started
in October, in 1897-1907-1920 and 1929. Why Oc­
tober, I do not know.
Following the October, 1920, depression, our
deposits on Dec. 31,1921, were down to $223,000,
or a drop of $317,000 in 18 months. You will recall
that the Bank Guarantee law was voted in 1934,
and to my mind was one of the best pieces of leg­
islation ever written for the banking industry.
(S.F. I l l )
The 1920 years were difficult for the country
bankers. Our deposits on Dec. 31, 1929, had in­
creased only to $258,000. We did, however, have a
stock market boom in the late 1920s and I recall
this story. The son of one of our wealthy families
asked me to write him a draft for $1,000 to a
brokerage house in New York City. He wanted it
kept secret so his father would not know about it.
On October 1, 1929, he came to the bank with a
statement of his account from the brokerage
house as he had closed out his stock investments

100186794 Â
Û/IVY

CONGRATULATIONS FROM YOUR FRIENDS

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Iowa News

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with them. The $1,000 investment brought
$99,000. He told me he was leaving the funds
with the brokerage house to invest at a later date.
When the crash came later in October of 1929, the
brokerage house took bankruptcy and he never
received one cent of his funds.
In 1920, there were 30,000 individual banks in
the United States. Many were closing year after
year, until President Roosevelt closed all the
banks, and each bank was examined and told
what they had to do to re-open. The banks were
closed on March 4, 1933, and we were closed until
September 5, 1933, opening with deposits of
$108,000. Out of the 30,000 banks in 1920, less
than 14,000 survived, including our bank.
I might add that as banks closed in our area,
we had many runs on our deposits. Our manage­
ment made an agreement that anyone wanting
their deposits should be paid, even if they wanted
to cash time certificates which were not due.
There were three banks in our little city. The
Hawarden State Bank closed on Oct. 14, 1927,
never to re-open. They paid out 88% after a con­
siderable length of time. The First National Bank
Board called us in the middle of the night on Oc­
tober 14 to let us know they were going to close
and assess their stockholders 200%, which they
did and re-opened in about 17 days. When the
President closed all the banks, they assessed
their stockholders again 140%, but did not re­

open until Jan. 4, 1934. We were the only bank in
town, when we opened Sept. 5, 1933.
It seemed to us that a 340% assessment in six
years was a very heavy burden on their stock­
holders, and we know quite a number of them
could not pay the assessment and sold their stock
for little or nothing to large depositors, who paid
the 140% assessment. I might add that in the
1920s and early 1930s, the cashier was the chief
executive officer in most country banks.
I am enclosing a photo copy of the Security Na­
tional Bank, Sioux City, and one of our bank as of
December 31, 1937. The Security National Bank
was one of the larger banks in Sioux City.
You might also be interested to know that in
1933, my salary was $92.00 per month, and even
with two boys in school we managed to live on
that!
(In the 1937 statements referred to above, Mr.
Slife’s bank had total assets of $321,542, showing
the typical slow pace of post-Depression re­
covery. The Farmers State Bank at 1985 year-end
had assets of $26,753,558. Capital accounts to­
taled only $35,660 in 1937 and were $2,095,333
last year-end. Security National Bank, now
Iowa’s sixth largest bank, had assets at 1937
year-end of $6,058,997, compared to 1985 yearend assets of $344,329,000. Its capital in 1937
was $452,987, while at 1985 year-end it was
$21,493,000, with $3,107,000 in capital notes.)

T BANKS CORRESPONDENT BANKING
I First Banks
Members First Bank System


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Iowa News

mers just insert their cards in a slot
located on the right side of the main ^
entrance.
Chrysalis of Wisconsin, a Milwau­
kee firm, was the original designer
for the project, while, Gerald H.
M iller of B rack e-H ay es-M iller^
Architects of Moline was the over­
seer during construction. The build­
ing contractor was G.L. Stockham
and Son of Maquoketa. Kirk Gross
Company of Waterloo designed the £
interior and furnishings for the
building.
The bank has undergone a
number
of changes since it began its
MAQUOKETA State Bank’s new facility was finished in mid-August after nearly two years
first full day of operation at 116®
of construction.
East Platt with three employees. In
1963, the bank moved from East
Platt to a round building at the pre­
sent location at 203 North Main.
Three additions have been made t o #
FTER nearly two years of con­ space to 26,200 feet providing the the original round building prior to
struction, Maquoketa State needed space for the day-to-day the present construction.
The latest construction work on
Bank has a new facility to house its operations that were previously
growing business.
done in a very crowded facility.
the new facility began in December
Mr. Tubbs said the project al­ 1984 and was completed in mid- #
Edward Tubbs and John Fagerland, co-owners of the bank, said the lowed the bank to relocate the de­ August 1986. An open house to cele­
renovation and addition project was partments that were formerly lo­ brate the completion was held Aug­
necessary to accommodate the cated in the annex and old base­ ust 17th.
bank’s growth. Since moving to its ment. “This is the first time we’ve
At the open house, the registra­
present location on North Main had enough room since we came to tion book showed there were guests •
Street in 1963, the bank’s assets this site over 20 years ago,” he said. from 32 different towns in the area.
The new building boasts 38 of­ For each guest that registered, the
have increased from $25 million to
well over $90 million.
fices, conference rooms and working bank gave $1 to a church or organi­
The remodeling took place in the areas as well as the main lobby, zation of the guest’s choice. Oneold portion of the bank, which was which has a marble floor that is easi­ hundred five churches and organiza- •
the round section on the south side, ly maintained and will never have to tions received donations.
with the addition being constructed be replaced. Rising 32 feet above the
In the future, Mr. Tubbs and Mr.
on the north side of the building. marble floor is an eyecatching Fagerland see expansion in financial
The small annex just north of the pointed skylight, which can be seen counseling and other areas such as
bank was torn down, and the space from the outside of the building.
discount brokerage and peripheral •
will be converted to a parking lot.
An automatic teller machine is services. Mr. Fagerland said they
Maquoketa State Bank has parking located in the north entrance lobby hope to help promote industrial ex­
areas for over 80 vehicles near the and is open for use 24 hours a day. A pansion in the area. But for now, the
bank.
“card entry system” allows easy ac­ two men are happy with the new fa­
The addition to the existing bank cess to the terminal after the bank’s cility and thankful to the communi- ®
□
building more than doubled the floor doors have been locked. Bank custo­ ty for its cooperation.

Maquoketa State Bank’s Assets
Outgrow its Building

A

LEFT—Created for work efficiency, the new loan department also provides privacy for bank customers. RIGHT—The central focus of the

new building is the lobby complete with its marble floor.
Northwestern Banker, October, 1986


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67

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68

Iowa News

Hawkeye chain. “Our underlying
earnings
of the bank continue
Metro Realty and Farm Manage­
ment, of Waterloo, has announced strong,” he told the N o r t h w e s t e r n
B a n k e r , “and we feel that the gen­
the hiring of
eral
supporting business in this area
James H. Jensen
is
in
excellent shape. Obviously, we
as farm man­
are
very
optimistic about the future
ager, and the
of
Red
Oak
and the area it serves.”
purchase from
Mr.
Maher
joined Houghton
Hawkeye Farm
State
Bank
in
the
marketing divi­
M anagem ent
sion 16 years ago after an earlier
the farm man­
career in the retail furniture store
agem ent
ac­
business
in Red Oak. He has been
counts that Mr.
president
of the bank for the past
Jensen is pre­
J.H. JENSEN
nine years.
sently directing.
Houghton State Bank is the sixth
Mr. Jensen will continue to serve
Hawkeye
bank sold out of the 17 of­
the Maquoketa area accounts in ad­
fered
for
sale
by Mr. Dunlap June 23
dition to handling several new ac­
as part of a program to retire some
counts in the Waterloo area.
of the corporation’s $100 million
debt. Sale of other Hawkeye banks
in Camanche, Eldora, Mason City.
H o u g h to n S ta te Is S o ld to
Waukon and Iowa City were an­
O ffic e rs , L ocal In vestors
nounced previously.
An agreement to purchase the
Houghton State Bank of Red Oak T ra e r B anks to M erg e
from Hawkeye Bancorporation was
Owners of the two banks in Traer,
signed last month by George E.
Maher, president and chairman of The Farmers Savings Bank and the
the bank; Robert A. Ward, executive First Community Bank and Trust,
vice president; Peter G. Hult, senior have agreed in principle to a merger
vice president, and a group of cur­ of the two institutions.
William C. Talen, president and
rent directors and local investors.
owner
of Farmers Savings, and Mel­
Houghton State Bank was the first
bank purchased by Paul D. Dunlap, vin Kupka, president and owner of
Hawkeye’s president and chairman, First Community B&T, said Mr.
when he moved to Iowa from Lin­ Talen’s holding company, whose
coln, Nebr., in 1962. It became the bank has $48 million in assets, will
flagship bank when Hawkeye Ban- purchase Mr. Kupka’s holding com­
corporation was formed in 1966 and pany, which owns First Community
continued as headquarters until the with $24 million assets, as well as
corporation was moved to Des First National Bank of Tama Coun­
ty, Dysart, with $13 million assets.
Moines in 1972.
The merged institution would
Under Mr. Maher’s leadership,
have
$85 million assets if the trans­
Houghton State Bank was honored
consistently during the past 10 action is approved by federal and
years by Hawkeye officials as the state regulatory authorities.
Offices of the Dysart bank in
holding company’s top-earning,
Clutier
and Vining would be re­
most efficient bank. At June 30,
1986, Houghton State had assets of tained.
nearly $56 million, with deposits of
$51 million. Its capital was $400,
000, surplus was $3,100,000 and un­ N in e P ro m o ted in M a rio n
Nine employees have been pro­
divided profits and reserves were
$1,128,000, for total capitalization moted at Farmers State Bank in
Marion. The advancements are the
of $4,628,000.
Mr. Maher said the bank took ac­ result of expanding some existing
cumulated losses during the first six services and developing new ser­
months of 1986 of $1.8 million, and vices.
Kim Nelson, Hiawatha FSB office
continues today with a balance of
$1,754,000 in its loan loss reserve. manager, and Bob Wilhelm, man­
“We anticipated potential problems ager of the Collins Road Square of­
early,’’ Mr. Maher stated, “so we fice, have been promoted to the main
were prepared to take action when bank office in Marion, where they
needed.” He said Houghton State will assist in all areas of lending.
Judith Easterday has been named
Bank is the largest ag lender in the
H ired in W a te rlo o

Northwestern
Banker, October, 1986

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Federal Reserve Bank of St. Louis

Hiawatha office manager, and Linda
Heinsius as Collins Road Square 0
manager. Ms. Easterday and Cindy
Slamana, FSB office manager at
Lindale Mall, will assume new lend­
ing responsibilities.
Keitha Osterhaus has become •
supervisor of the FSB Marion driveup, and Charlotte Jacobson has been
appointed assistant supervisor.
Jan Airy has assumed responsi­
bility for FSB charge card opera- #
tions. Effective November 1, 1986,
FSB will establish its own credit
card service. Ms. Airy will supervise
all operations in the department.
Mary Rogers has been appointed #
sales representative for Neighbor
Insurance Agency, Inc., the bank
holding company. She will work out
of the agency’s new office at Collins
Road Square FSB handling life and #
insurance sales.

A p p o in te d in A lg o n a

#

Iowa State Bank of Algona has
recently announced the appoint­
ment of Barry D.
Farmer to assis­
tant vice presi­
dent and trust
officer.
Prior to join­
ing the bank, he
was a partner in
the firm of Cash
& Farmer and
engaged in the
private practice
of law, concentrating in probate and 9
estate law, and banking law.

P ro m o ted in B u rlin g to n

•

Lisa Walsh has been promoted to
assistant vice president of Farmers
& Merchants Bank and Trust in
Burlington. Miss Walsh, a graduate 0
of Stephens College in Columbia,
Mo., was recently graduated from
the Graduate School of Banking at
the University of Wisconsin, Madi­
son. She joined the bank in 1974. 0
She has served as director of the
bank’s MasterCard-VISA program
and automated clearing house pro­
gram, and most recently was a per­
sonal services officer. Lisa Walsh is 0
the third member of her family to
serve as an officer of the F&M Bank.
Her father, Charles H. Walsh, is
president, and her brother, Charles
E. Walsh, is a vice president.
#

Iowa News

69

IBIS Holds Open House For Retiring President AI Tinder

IOWA Bankers Insurance & Services, Inc. recently held an open house for past Pres. Al Tinder at its home office. Frank Gleeson, who re­
tired recently as pres, and CEO of Hawkeye Security Insurance Co., succeeds Mr. Tinder. Many friends stopped by the open house, includ­
ing from left, in first photo, Juanita Fulster, a.v.p., IBIS; Virgil Day, Hawkeye Ins. Serv.; Al Tinder and Millie Uding, v.p., IBIS. RIGHT—Also
sharing in the festivities were Neil Milner, e.v.p., IBA and his wife, J.C. Mr. Tinder’s retirement concludes a 34-year insurance career.

11 Io w a B an kers A tte n d
A B A L e a d e rs h ip C o n fe re n c e

The Iowa Bankers Association
had 11 representatives in atten­
dance at the Leadership Conference
of the American Bankers Associa­
tion in Washington, D.C., Septem­
ber 18-18. They included Russell S.
Howard, President of IBA and
chairman of Mahaska Investment
Company, Oskaloosa, and J. Bruce
Meriwether, immediate past presi­
dent of IBA and president, First Na­
tional Bank, Dubuque.
Also taking part in the Leader­
ship Conference were:
• William Logan, 1984-85 IBA
president, now ABA state vice presi­
dent, and president, The State Cen­
tral Bank, Keokuk.
• Neil Milner, IBA executive vice
president, Des Moines.
• C. Robert Brenton, president,
Banks of Iowa, Inc., Des Moines,
who was ABA president in 1983-84.
• Alan R. Tubbs, president and
CEO, First Central State Bank, DeWitt, who has been elected to a
three-year term on the ABA board
of directors, effective at the end of
the ABA convention this month.
• Ben E. Summerwill, chairman
(retired), Iowa State Bank & Trust
Co., ABA state membership chair­
man for Iowa.
• Iowa’s four ABA statewide call­
ing representatives (appointed in
only four other states to date on this
pilot program): L.C. “Bud” Pike,
chairman, Hawkeye Bank & Trust,
Grundy Center; E.C. “Ted” Thomp­
son, chairman, Security National
Corporation, Sioux City; Dale C.

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Federal Reserve Bank of St. Louis

Smith, retired executive vice presi­
dent, First Interstate Bank of Des
Moines, N.A., and Myron Weil,
chairman, First National Bank, Clin­
ton.
Another Iowa banker eligible to
attend the Leadership Conferences,
but who could not attend the most
recent one, is C.B. Neal Conover, a
member of the ABA Government
Relations Council. Mr. Conover has
testified before various committees of
the United States Senate and House
numerous times on behalf of the
ABA Government Relations Coun­
cil and the Ag Bankers Division.

needs of the community. At that
time, the Citizens National Bank
will have assets of approximately
$100 million and deposits in excess
of $90 million. The third bank in
Charles City, First Security Bank
and Trust Company, has assets of
approximately $86 million and
deposits of $77 million.
C h a n g e s in C e d a r R apid s

Robert J. Louvar has been pro­
moted from assistant vice president
to vice president
in the correspon­
dent bank divi­
sion of M er­
chants
National
C h arles C ity Bks. to C o m b in e
B ank, C edar
An agreement to combine two Rapids.
Charles City banks has been an­
David G. Mcnounced by O. Jay Tomson, chair­ Quown
has
man and CEO of Citizens National joined the bank
Bank, and Holmes Foster, president as vice president
R.J. LOUVAR
and CEO of Banks of Iowa, Inc. in the correspon­
Under the terms of the agreement, dent bank division. He was presi­
Banks of Iowa, Inc. will sell its Char­ dent and CEO of Panora State
les City affiliate, Commercial Trust Bank.
and Savings Banks, to Citizens Na­
tional. The union, subject to regula­
tory approval, should be completed
during the first quarter of 1987.
Mr. Tomson and Mr. Foster de­
scribed the agreement as one serv­
ing the best interests of Charles City
and the two organizations involved.
Charles City currently has three
commercial banks serving a popula­
tion of approximately 9,000 people.
D. KEIPER
G. BARTLETT
After the transaction, the two re­
Doug Keiper has moved to the
maining banks will be of relatively
equal size and will be better able to corporate banking division, and
efficiently and effectively compete Gary Bartlett has moved to the com­
for business and serve the financial mercial loan division.
Northwestern Banker, October, 1986

70
each bank reflected that change. It
became First Interstate of Iowa, ^
Inc., on June 24, 1985, when the
franchise officially became effective.
First Interstate of Iowa now has $1
billion in assets.
Mr. and Mrs. Myers are moving ^
to a new home they are constructing
in Tucson, Ariz.
Mr. Hagen, as noted above, joined
First Interstate in 1983 as executive
vice president, then was advanced to 9
president and a director of the com­
pany in 1984. Before moving to Des
Moines, Mr. Hagen was president
and chief executive officer of First
Bank of North Dakota, N.A.-Fargo, 9
and of First National Bank of Willmar, Minn. He began his banking
career with the First National Bank
of Austin, Minn.
ENNETH M. MYERS, 65, re­
K
tired October 1 as chief execu­
tive officer of First Interstate of
Iowa, Inc., but will retain his title as
chairman of the board. As an­
nounced last April, when Mr. Myers
reported his retirement plans to the
board of directors, Oliver H. Hagen,
president of the holding company,
assumed the duties of CEO upon
Mr. Myers’ retirement.

K.M. MYERS

O.H. HAGEN

Mr. Myers received his BA degree
from Knox College in 1943 and his
J.D. degree from the University of
Iowa College of Law in 1948. He was
in private law practice until 1969
when he joined United Bancorp of
Arizona, Phoenix, as vice president
and secretary. He served as presi­
dent and chief operating officer
there from 1974-76, after which he
returned to Kansas to become presi­
dent and CEO of First Kansas Fi­
nancial, Inc., Wichita, a mortgage
banking company.
That move began an unusual turn
in his successful business career as
an attorney and banker and was ini­
tiated at the request of a federal
judge who was well aware of Mr.
Myers’ unique qualifications. Conse­
quently, in 1976 he headed a man­
agement team appointed by the U.S.
Northwestern Banker, October, 1986

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Federal Reserve Bank of St. Louis

District Court for Kansas to over­
see liquidation of that company
after a court-ordered bankruptcy
proceeding. After payment to nearly
60% of the stockholders who wanted
to be paid in cash, the remaining
more than $40 million of assets held
by 14,000 shareholders was invested
in Central National Bancshares,
Inc., Des Moines (now First Inter­
state). The Kansas shareholders’
6,694,960 brought Central National
B a n c s h a re s o u ts ta n d in g to
11,028,746 shares with a value of
$5.22 per share, based on the $57.5
million of capital that resulted from
First Kansas Financial’s infusion of
$35.5 million into capital. That per­
mitted Central National Bancshares
to augment the capital of its four
banks at that time and to embark on
an aggressive expansion program.
First Interstate of Iowa now owns
13 banks.
Several months earlier, First Kan­
sas Financial and Hawkeye Bancorporation also headquartered in Des
Moines, had agreed tentatively to a
merger, but that was broken off
when Hawkeye management de­
clined to have First Kansas remain
in control of the board and manage­
ment. The subsequent deal with
Central National Bancshares then
was consummated.
Mr. Myers joined Central Na­
tional Bancshares in 1977 as presi­
dent and CEO. He became chairman
and CEO in 1984 after bringing Mr.
Hagen into the management team
as executive vice president in 1983
and president in 1984.
The holding company name was
changed in 1977 to United Central
Bancshares, Inc., and the name of

Thomas B. Hildebrand, vice presi­
dent, has been named manager of
th e H aw keye
Banks in Des
Moines’ Drake
office. In addi­
tion to manag­
ing the Drake of­
fice, he will su­
pervise the oper­
ations of the
Hickman Road
office and the
Clive office.
T.B. HILDEBRAND
He most recently served as vice
president and manager of Hawkeye—Capital Bank & Trust’s com­
mercial loan area. Prior to joining
the Hawkeye Banks in Des Moines,
he served as vice president for Brenton National Bank of Des Moines.
Sharron Marquart has been
named assistant vice presidentsales m anager
for Brenton Na­
tional Bank of
Des Moines.
She joined the
bank in 1970 and
m ost recently
served as senior
operations offi­
cer specializing
in cash and float
S. MARQUART
management. In
her new positions, she will be re­
sponsible for the sales and service of
all non-credit products.

Ï

* * *

Dr. Gordon P. Eaton, president of
Iowa State University, Ames, and §)

Iowa News
de

71

Lynn Vorbrich, executive vice presi­
dent of Iowa Power and Light Com­
pany, have been elected to the board
of Bankers Trust Company.
* * *

Mary Greco has been elected loan
operations officer of First Interstate
B ank of Des
M oines, N .A .
She has been
||i with the bank
since 1972, most
recently serving
as loan opera­
tions supervisor.
||
Carol T. Stone
has been elected
senior trust op­
M.GRECO
erations officer.
Joining the bank in 1970, she had
| | been in the position of trust opera­
tions officer since 1983.
41

C.T. STONE

D. ROTH

Dean E. Roth has been elected in­
vestment officer. He joined the bank
in 1983 and has held various posi­
tions in the investment division.
®

* * *

Hawkeye Bancorporation has ap­
plied to the Federal Reserve Board
^ for permission to merge its two
banks in Des Moines. They are
Hawkeye Capital Bank & Trust,
East 5th & Locust, with $103 mil­
lion assets, and Hawkeye Bank &
H Trust at 24th & University in the
Drake University area, with assets
of $58 million. J. Michael Earley is
chairman, president and CEO of
both banks.
£

*

*

There Js^ a Difference
in Banks
Trust, confidence, loyalty ... words our customers
use to describe how they feel toward Valley
National Bank.
Valley Bank is experiencing substantial growth
... in deposits,
... loans, and
... in earnings.
That’s because we maintain a highly skilled staff,
offer top service, and perform well financially.
We welcome your inquiry ...
Remember, there is a difference in banks.

*

Iowa State Bank, located at East
7th & Locust in the East Side busi­
ness district, has purchased the
(ft Frankel Clothing Co. building at 612
Locust Street in the main downtown
business section. Iowa State Bank
President Milton L. Paul said the
location will be used as an office of
• the main bank.

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Federal Reserve Bank of St. Louis

Valley National Bank «
Main Office-Sixth and Walnut

M em ber FDIC

A “BANKS OF IOWA” BANK

For Professional Correspondent Service
call 1-800-622-7262

Northwestern Banker, October, 1986

72

Iowa News

Davenport Bank & Trust Hosts Correspondent Party

LEFT— Present during the Davenport Bk. & Tr. Correspondent Banking Party, held last month at the Blackhawk Hotel in Davenport were,
from left: John Sagers, pres. & c.e.o., Peoples Bk. & Tr., Cedar Rapids, and wife Ann, with Sandy and Jim Figge, offc. of pres., Davenport
Bk. & Tr. RIGHT—From left: Stan Barber, chmn., Wellman Sav. Bk., and wife, Corinne, with Michael Bauer, 1st v.p., Davenport Bk. & Tr., and
wife Judy.

to resume those same positions with as 25 years.
Mr. Bezanson’s holdings that
the reorganized company.
It is anticipated that the s&l ap­ would reportedly be signed over in­
A plan to reorganize Morris Plan plication will take six months to clude Cedar River Tower apart­
Co. of Iowa and the holding com­ clear the FSLIC procedure. After ments, Stouffer Five Seasons Hotel,
pany MorAmerica Financial Corp., that, former Morris Plan depositors Roosevelt Hotel, City National
Cedar Rapids, into a savings and will have access to some of their Bank, Sunnycrest Nursing Facility
loan association with a new holding money, although it is possible there and the Paramount Office Building,
company was approved in Cedar will not be a full payout for as long all located in Cedar Rapids.
Rapids last month by a federal
bankruptcy judge. The case was de­
scribed as the largest bankruptcy in
Iowa history.
At the final hearing in Cedar
Rapids, Judge Michael Melloy re­
moved Mor America President Jerry
Maples from having any involve­
ment in the new company. Previous­
ly, it had been proposed that Mr.
Maples head a reorganized firm at a
salary of $85,000. His father-in-law,
Peter F. Bezanson, objected to the
ruling but agreed to comply with its
finding and will relinquish his major
assets to the new firm.
Court records said Mr. Bezanson
had $21.7 million in loans from MorAmerica and its subsidiaries and all
but $2.8 million were reportedly in
default. Mr. Bezanson was owner
and chairman of MorAmerica, the
firm he had built.
The reorganization plan approved
also precludes Morris Plan Presi­
dent John Wolfe and attorney Carl
Schuettpelz from automatically hav­
ing executive spots in the reorga­
nized company. Those changes were A new brokerage service has been added on the third floor of The State Central Bank build­
sought by Iowa banking superinten­ ing in Keokuk. The new service consists of a secretarial area, two brokers offices, a confer­
room, work room, and a large library/lounge area. Office Concepts, Ltd. of Waterloo,
dent William R. Bernau, who felt ence
specialists in bank design and custom furnishings, was in charge of the project. The style
that executives running the bank­ of furniture and color scheme of hunter green and browns were used to bring out a tradi­
rupt company should not be allowed tional relaxing atmosphere.
M o rris P lan to C o n vert to
S& L fro m B a n k ru p tc y C o u rt

Brokerage Service Added in Keokuk Bank

Northwestern
Banker, October, 1986

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Federal Reserve Bank of St. Louis

73
nancial Information Trust is a finan­ Minn. He also served as county
cial data processing company with supervisor for the Farmers Home
facilities in Des Moines and West Administration in Willmar, Minn.,
Des Moines. Serving more than 200 from 1975 to 1981.
Mr. Cook joined the bank in 1983
financial institutions throughout
the United States, the Trust is the as a loan officer and was elected
largest member-owned financial pro­ assistant vice president in 1985. He
previously had been a county super­
cessing center in the U.S.
visor for the Farmers Home Admin­
istration in southern Iowa.
K a lo n a B ank E le c ts Pres.
Kim Jordahl has been elected
president of First Interstate Bank of N a m e d in M a q u o k e ta
Alan R. Tubbs has been named
Kalona, succeeding Allen Kloess
who has resigned to pursue other in­ executive vice president of Maquo­
terests in Colorado. Jon Cook has keta State Bank.
He brings a
been named vice president and sec­
wealth of experi­
ond officer of the bank.
ence as a banker,
consultant, lec­
turer and indus- jj
try spokesman.
A long
w ith ;;
many awards he
has received in
the banking in­
dustry, he has
A.R. TUBBS
served as immediate past-chairman
of the ag division of the American
K. JORDAHL
J. COOK
Bankers Association.
He will remain as president of 1st
Mr. Jordahl joined the bank in
1983 as vice president in charge of Central State Bank in DeWitt. Prior
ag loans and was elected senior vice to the DeWitt bank position, Dr.
president in 1985. He previously had Tubbs was assistant professor and
been a senior loan officer with Farm­ extension economist at Oklahoma
ers State Bank of New London, State University in Stillwater.
Iowa News

T h re e -P h a s e R en o vatio n
U n d e rw a y in D u b u q u e B ank

The First National Bank of Dubu­
que has announced that a threephase renovation and expansion pro­
gram, spearheaded by Kirk Gross
® Company of Waterloo, has started.
Phase One will establish a new ac­
counting-data service center in the
First Mall building directly east of
the main bank building. The ac* counting, customer bookkeeping,
proof, computer, mail and wire
transfer functions will be relocated
to this facility. In addition, the marketing and audit departments will
also move into new quarters.
This phase encompasses approxi­
mately 10,000 square feet in the
north half of the building and is
scheduled for completion by October
1986.
Phase Two calls for the complete
renovation and redecoration of the
main bank lobby. Unique personal
q banker work stations will take the
place of the conventional officer
platform. A new saw tooth teller
counter, various private offices and
conference rooms are also planned.
^ The total interior space, approxi­
mately 6,600 square feet, will be
completely redecorated. Completion
is anticipated in November or De­
cember 1986.
^
Phase Three will utilize the addi­
tional space on the second floor of
the main bank building. Redevelop­
ment of this area will be based on
the functional needs of the various
0 commercial and administrative de­
partments.

•

IBIS Hosts Annual Golf Outing

F in a n c ia l In fo rm a tio n T ru st
Buys H a w k e y e ED P

The Financial Information Trust
of Des Moines announced Septem0 ber 19 that its proposal to acquire
Hawkeye Information System has
been accepted by Hawkeye Bancorporation. Hawkeye Information
Systems, the data processing divi(§i sion of Hawkeye Bancorporation,
will become a wholly-owned division
of the Financial Information Trust,
according to Charles I. Budd, presi­
dent of the Trust.
•
Hawkeye Information Systems
provides data processing services
for 36 Hawkeye banks. Its main fa­ IOWA Bankers Insurance & Services, Inc. held its annual golf outing at two locations last
month. Pictured above at the Beaver Hills Country Club in Cedar Falls were, from left: Mer­
cility is in Des Moines, with item ritt
Krause, v.p., IBIS; Dave Larson, v.p. & cash., Cresco Union Savings; Jack Hawkes,
processing centers in Des Moines, Credit Life Insurance Co., Springfield, Oh., and Larry Gille, v.p., IBIS. Golfers in the western
• Cedar Rapids, and Sioux City. Fi- part of the state were encouraged to play at the Lake Creek Country Club in Storm Lake.

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Federal Reserve Bank of St. Louis

Northwestern Banker, October, 1986

74

Iowa News

Jo in s W a te rlo o B ank

Karl J. Keffier has joined The
Peoples Bank and Trust Company,
W ate rlo o , as
vice president
and trust officer.
He joins the
bank from St.
L o u is,
Mo.,
where he served
as
a s s is ta n t
tr u s t counsel
an d
p e n sio n
trust officer for
the Mercantile
Trust Company. Also having en­
gaged in the private practice of law,
he has over 18 years of trust related
experience.
S everal P ro m o ted in
D en iso n and M a n illa

National Bank of Iowa has an­
nounced a number of personnel pro­
motions.
Nancy Brink of Manilla, formerly
cashier, has been promoted to assis­
tant vice president of the Manilla of­
fice.
Patty Bornhoft of Manilla, for­

merly assistant cashier, has been
promoted to cashier for both the
Denison and Manilla offices.
Eunice Goetzinger of Manilla, for­
merly teller-bookkeeper, and Cheryl
Rath of Denison, formerly assistant
operations officer, have been pro­
moted to assistant cashiers. Ms.
Goetzinger will work at the Manilla
office, and Ms. Rath will serve the
Denison office.
National Bank of Iowa operates
banks in Manilla and Denison, just
recently celebrating its grand open­
ing at the Denison location.

people stay with First Interstate
because of the common features
they find. For example, people from
Iowa and midwest communities go­
ing to Arizona in the winter are
served just as well there as in their
home towns.
“Third, there is a reduction of ex­
penses through pooled purchasing.”
Mr. Carson visited with First In­
terstate of Iowa management and
board of directors during his stay in
Des Moines.
□

INTERVIEW. . .
(Continued from page 24)
was involved with our Wisconsin
and Iowa franchise in a special re­
quest deal from South Korea, which
wanted to import premium pregnant
Holstein cows to start herds there.
We arranged for hundreds of them
to be shipped.
“Second, through our retail divi­
sion we have hundreds of customers
who move in and out of First Inter­
state territory, creating a constant
flow of contacts between affiliated
banks and franchisee banks. These

Comptroller of the Currency
Robert L. Clarke announced July 23
the appointment of Kevin M. Blake­
ly as director for special supervision.
Mr. Blakely will head the office that
monitors troubled national banks
and explores ways to restore
troubled banks to sound financial
condition. He will report to Deputy
Comptroller Deborah Hechinger.
Mr. Blakely has served as director
of the OCC’s field office in Omaha
since 1985. He previously was man­
ager of special projects in the Cen­
tral District, Chicago, where he
monitored troubled banks in the
midwest. Mr. Blakely joined the
Comptroller’s office in 1973 and was
commissioned a national bank ex­
aminer in 1978.

Committed to
making your
bank stand
apart from the

F o rm er O m a h a n Is
P ro m o ted by C o m p tro lle r

In d e x o f
A d v e rtis e rs
October, 1986

American Bankers Association, Washington, D.C...........24
Austin, Douglas & Associates, Inc...................................25
Bank Building Corporation, St. Louis.............................5-7
Bankers Trust Co., Des Moines ......................................50
Brandt, Inc........................................................................ 19
Central Bank of Denver............................................... 36-37
Central Bank of the South.............................................. 3
Chase Manhattan, New York ..........................................75
Commercial National Bank, Peoria................................ 26
Davenport Bank & Trust Co.............................................. 53
Drovers Bank of Chicago , ............................................. 8-9
First Bank Minneapolis/St. P aul................................ 64-65
FirsTier Bank, Lincoln.....................................................40
FirsTier Bank, Omaha................................................. 46-47
First Interstate Bank, Denver......................................... 4
First National Bank, Omaha........................................... 43
First Wisconsin, Milwaukee........................................38-39
Gross, Kirk Co., Waterloo............................................... 55
IAC Group....................................................................... 23
Iowa Bankers Insurance & Services, Inc.......................... 67
Iowa Public Records Search, Inc......................................63
Marquette Bank, Minneapolis ........................................30
Merchants National Bank, Cedar Rapids...................... 2
Municipal Bond Underwriters, Omaha ...........................48
National Bank of Commerce, Lincoln.............................45
North Central Life, St. Paul............................................. 21
Norwest Corporation, Minneapolis................................ 76
Office Concepts, Ltd., Waterloo...................................... 74
Plus System, Inc., Denver . . . .......................................... 10
United Missouri Bank, Kansas C ity.................................13
Valley National Bank, Des Moines.................................. 71

Northwestern Banker, October, 1986

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Federal Reserve Bank of St. Louis

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IBM is a registered trademark of the IBM Corporation.
© 1986 The Chase Manhattan Bank, N. A./Member FD1C


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Federal Reserve Bank of St. Louis

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iA,CHASE

WeKnowTheWay
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The winds of change are sweeping
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At Norwest Banks, we know what it
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amiNORWEST BANKS
Members FDIC


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Federal Reserve Bank of St. Louis