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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 \bure Invited™ Again this year, we’re holding our traditional Kolache Party after the Convention Theater Party. We’ll be serving coffee and kolaches at the Hilton Coliseum, right next door io the C. Y. Stephens Auditorium in Ames. We are looking forward to seeing you as our guest again this year on Tuesday evening, September 26th. Merchants National Bank 222 Second Ave. S.E. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cedar Rapids, Iowa 52401 • is i A ‘BANKS OF IOWA' BANK. N orthw estern Banker, S eptem b er 1978 4 SEPTEMBER 1978 • 85th Year No. 1380 OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES (X I MEMBER OF AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION ON THE COVER Western artist Joe Abbrescia captures the essence of daily ranch work in his oil painting, “ Headin Hom e,” presented here through the courtesy of the studio exhibitor, Images of the Old West. FEATURES 31 Annual livestock outlook Participants in survey forecast future cattle prices 44 The Norwegian Red New breed improves herds, bottom line 46 Automatic transfer accounts Author B iff Motley examines alternative approaches 50 SBA to certify bank lenders Pilot program w ill begin October 1 54 Women in banking Mary R. Mains tells what it’s like to be a branch manager SPECIAL SECTION 107 92nd Iowa convention IBA President Christy Armstrong w ill preside at annual convention DEPARTMENTS 12 28 52 67 71 72 81 85 Bank Promotions Corporate News NABW Convention Illinois Minnesota Twin Cities South Dakota North Dakota 87 90 93 97 98 104 140 152 Colorado Wyoming Montana Nebraska Omaha Lincoln Des Moines Ad Index NO RTHW ESTERN BANKER 306 15th Street, Des Moines, Iowa 50309 Publisher E ditor Malcolm K. Freeland Phone 515— 244-8163 Business Manager Ben Haller, Jr. Mike Freeland A ssociate E ditor Linda L. Rhein A dvertising A ssista n t A u ditor Field R epresentative Field R epresentative Field R epresentative Delene Finch Mildred Bames AI Kerbel Paul Masters Glen Hicks No. 1380 Northwestern Banker is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.00 per copy, $12 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, change of addres° Form 3579, manuscripts, mail items) to above address. N o rthfor w e sFRASER tern Banker, S eptem b er Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Kirchner, Moore and Company. The Perform ance Team You have a right to expect the samethingfroman underwriter as you do from the bonds themselves — performance. At Kirchner, Moore, performance means serving a client’s investment needs consistently, with the highest degree of professionalism possible. It means a closely-knit team of highly trained specialists— traders, public finance specialists and sales representatives who are in constant communication with you and each other. You see, at Kirchner, Moore, we do only one thing — underwrite and market municipal securities. And we do it well enough to be recognized as the West’s leading investment banking firm dealing exclusively in municipal bonds. We owe this recognition to our personnel — people who know that their decisions affect the lives and futures of many. Our professionals are carefully chosen members of a team. They are highly motivated individuals who demand even more from themselves than we do. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Because we’re so often in someone else’s shoes, our team knows it has to run a little harder. Each member is dedicated to keeping up with market trends, analyzing regional needs, making personal visits, and providing information to the municipalities and individuals served on a daily basis. They’re a rare kind of specialist— with a generalist’s eye for the big picture and the technical expertise to bring it into focus. Kirchner, Moore and Company. We’re the Performance Team. Because when you do only one thing, you’re bound to do it better than anyone else. The Performance Team ItA KIRCHNER MOORE & COMPANY la x Exempt Municipal Bonds 1600 Broadway, Suite 2500 Denver, Colorado 80202 (303) 292-1600 6 ABA Correspondent Banking Conference Slated for Chicago, September 24-26 IV ER SE banking interests will share the spotlight when leading D spokesmen, including Rep. H enry S. Reuss (D-Wisc.), chairm an of the H o u se C o m m itte e on B a n k in g , Finance and U rban Affairs, and John H . Perkins, president of Continental Illinois B ank and T rust C o., C h icag o , a d d re s s b a n k e rs attending the 1978 N ational Corres pondent Banking Conference. Sponsored by the correspondent banking division of the American Bankers Association, the conference will be held at the Continental Plaza Hotel, Chicago, Septem ber 24-26. Rep. Reuss, who earlier this year told bankers, “ I t ’s tim e we buried the hatchet and pooled our re sources,” will be the keynote speaker for the opening general session on M onday. He will be introduced by ABA President-Elect John Perkins. Theme for the conference is “ Encounter: Expertise M eets O ppor tu n ity .” In his opening address, R. M olitor Ford, conference chairm an and senior vice president of F irst J. H. PERKINS H. REUSS Tennessee Bank of M emphis, will identify the them e as it relates to the conference program . The M onday program also will feature a panel discussion entitled “ Com peting in a Changing M ark et.” Alan M unro, executive vice presi dent of Greenwich Research Associ ates, Greenwich, Conn., will m oder ate the panel. Panelists include: Roderick M. M acDougall, chairm an, New England M erchants N ational Bank, Boston; Carl E. Reichardt, president, Wells Fargo Bank, San Francisco; Theodore H. Roberts, executive vice president, H arris A SYSTEM FOR A BANK TO REDUCE LENDING LOSSES T he Lawrence System has been helping banks cut down on loan losses since 1913. It’s a simple system: collateral m anagem ent by Lawrence minimizes lending risks, and if a borrow er does default, Lawrence is responsible for the collateral. It’s a system set up to in crease business, and profits. For inform ation w rite or phone L aw rence, the oldest and largest system o f its kind in the world. L aw rence Systems, Inc., 37 D rum m Street, San Francisco, C a .,94111. 415-981-5575 or 800-227-4644. T H E LAW RENCE SYSTEM A C O L L A T E R A L M A N A G E M E N T S U B S ID IA R Y O F IN A N o rth w e s tern Banker, S ep te m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank, Chicago, and Jam es M. Carey, executive vice president, Chase M anhatten Bank, New York. The luncheon speaker will be Gerald M. Lowrie, executive director of governm ent relations for the ABA. E arly Tuesday conference activi ties will commence w ith a special interbank lending case study th a t will begin a t 7:15 a.m . I t is for newcomers to the N ational Corres pondent Banking Conference. W il liam T. Dwyer, vice president of The F irst N ational Bank of Chicago, will m oderate this program . Opening Session “ Fed M embership - A Regulatory and Banking D ilem m a,” is the title for the opening general session panel discussion on Tuesday. Bank and regulatory perspectives will be shared on the F ed’s efforts to resolve its m em bership dilemma. Explicit pricing of services, access by non-members, and interest on required reserves will be am ong the issues discussed, M r. Ford said. Ronald A. Terry, chairm an of the board of F irst Tennessee Banks, M emphis, will m oderate a panel th a t includes: Jam es E. Brown, presi dent, M erchantile Bank corporation, S t. L o u is; E d w a rd D. D u n n , commissioner of banking and fi nance, S tate of Georgia; Governor George W. M itchell (retired), consul ta n t, Federal Reserve Board of Governors, and Andrew J . Shepard, chairm an and president, Exchange Bank, Santa Rosa, Calif. T uesday’s luncheon speaker will be Bruce McClory, president of the Brookings In stitu tio n , W ashington, D.C. Rounding out the program will be a series of concurrent workshops and special interest sessions. Six w ork shop sessions will cover an array of subjects entitled: organizing for performance; the respondent’s per spective; effective selling; credit — correspondent style; profit m anage m ent; and asset/liability m anage m ent — m eeting respondent’s needs. The A rt In stitu te of Chicago will host a special reception on Sunday, Sept. 24, for an exclusive showing of the exhibit, “ Pompeii - 79 A .D .” The exhibit, from the Museo Nationale in Naples, Italy , portrays life as it was when Vesuvius erupted and engulfed Pompeii. Brandi 936 can sort, count, totalize and deliver up to 600 coins per minute O p e r a to r -s e t a u to m a tic bag sto p s a ss u re greater speed, accuracy, and efficiency. M oney is tim e . . . wasted tim e, especially when it com es to coin sorting and coun ting. Now Brandt brings you new tim e-saving accuracy and re lia b ility w ith A u to m a tic Bag Stops. The ope ra tor can set the exact am ount of coins to be delivered to each bag and go about other duties. When the Brandt 936 s o rte r/co u n te r reaches the pre-set quantity, it stops autom ati cally fo r qu ick bag replacem ent. For q u ick m oney m onitorin g, the Brandt 936’s m em ory retains an accum ulative total. A nd the e le ctro n ic readout gives y o u r te lle r batch and accum ulative totals. Ease of operation is ju st one PLUS w ith the 936. A n o th e r is f le x ib ilit y . C h o o s e an o p tio n a l p rin te r to record totals and fu rth e r free up yo u r te lle r talent fo r other tasks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B randt has designed the 936 to be as attractive as it is fu n c tio n a l. D is tin c tiv e ly style d and finished in a soft Desert Tan color, it w ill enhance any area in yo u r bank. Make coin sorting and coun ting more produ c tive, less costly, than ever before. D on’t let your tellers stand holding the bag! Call your nearby Brandt Representative for full details on the Brandt Model 936 Sorter/Counter. He’s in the Yellow Pages under “Coin and Bill Counting /Wrapping Machines”. SINCE 1890 Brandt, Inc. W atertow n, W l 53094 Brandt® Cashier® Countess® Model 570 Electronic Cashier 100% accurate coin delivery, new simplified keyboard and visual audit display for instant verification. Model 825 Countess^ Model 936 Coin Sorter/Counter Counts, batches, endorses or cancels checks and currency up to 1200 per minute. Counts, sorts and totals up to 600 coins per minute, automatically delivers preset amounts to each bag. Model 815 Countess Jr. Counts, batches, endorses or cancels checks, currency & food stamps . . . up to 750 per minute. Model 1702 V Automatic Coin Wrapper Economical coin wrapping system that’s small, lightweight and simple to operate. Model 748 Electric Coin Counter/Packager Processes hundreds of coins per minute, ideal for processing large quantities of coins for bagging or packaging. Brandt helps you find time to make m oneythen we sort, count, endorse, cancel, wrap it Brandt products support the people who meet your public and perform the up-front customer services. They are the real sales people . . . if you train them and give them time to sell. Brandt money processing systems are designed to do just that . . . to reduce errors, speed money handling and increase efficiency . . . free more time for your tellers to service, sell and keep your customers happy. Up fro n t or back in the money room , Brandt equipment is quietly at work helping to build a better p ro fit p icture fo r you. Each piece of Brandt equipment, whether it is a sorter/counter, cashier, currency processor or automatic coin wrapper it’s designed to fit into a Brandt System. You may start with a coin wrapper or a cashier, but as you add equipment modules, it’s good to know that there’s a master plan to Brandt Systems. Every piece of equipment is compatible with the next. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis But equipment is only half of the Brandt story. The other half is a service netw ork that stretches nationwide with 130 service branches with Brandt trained servicemen backed by a ready supply of service and replacement parts. Call your Brandt Representative for the full story this week. When it comes to Bigger Bottom Line Profits, come to Brandt for money processing answers. Brandt SINCE 1890 Brandt, Inc. W atertow n, W l 53094 Brandt® Cashier® Countess® 9 United Guaranty Realigns Subsidiaries N IT E D G uaranty Corporation of Greensboro, N. C., will combine into one subsidiary com pa ny fo u r in su ra n c e s u b s id ia rie s e n g a g e d in th e in su ra n c e of m ortgage loans on single-family residential properties. Currently, U nited G uaranty Corporation en gages in the m ortgage guaranty in s u ra n c e m a rk e t th ro u g h fo u r subsidiaries domiciled in California, Iowa, Louisiana and N orth Carolina. U nder the realignm ent program , the four companies will be combined and executive offices for this m ajor underw riting line will be centralized in Greensboro. M ajor service offices now utilized by the subsidiaries will be m aintain ed a t their locations in California, Iowa and Louisiana. Only top m a n a g e m e n t p e rso n n e l w ill be transferred to Greensboro. U n ite d G u a r a n ty C o rp o ra tio n President W. L. Hemphill said th a t W. H . Gillison has been named p re s id e n t of U n ite d G u a ra n ty Residential Insurance Company. A native of Oregon, M r. Gillison joined the com pany as an underw riter in the Portland office. He later served as regional representative and rose th ro u g h th e ra n k s to becom e president of a m ajor subsidiary based in Iowa. M r. Hemphill noted th a t the realignm ent of subsidiaries and m anagem ent is a p art of the preparation for grow th anticipated over the next five years. He said th a t all regulatory perm ission had not yet been received and th a t the m erging and combining of subsidiary units would not be totally completed until 1979. In his first action, President Gillison named W illiam Y. McKenzie of D avenport, la ., as senior vice president of sales w ith nationwide responsibility for sales activities carried on through 27 offices. Mr. McKenzie is a native of Tennessee. He has held executive positions related to sales adm inistration. Guy Luno, formerly associate director of underw riting at the parent company, has been elected vice president-underw riting. Jam es R. Perry, formerly director of secondary m arketing, has been e le c te d vice p re s id e n t-s e c o n d a ry m arketing and will supervise the expanded activity on a nationwide basis. M r. Hem phill reported record level U https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W. H. GILLISON W. McKENZIE, JR. G. LUNO J. R. PERRY second quarter and six m onths revenues and earnings. Including securities transactions, net income for the first six m onths of 1978 was $6,427,000, or $1.33 a share, a new high, compared w ith $4,914,000, or $1.02 a share, in 1977. Insurance in force at mid-year was $8.5 billion compared to $6.6 billion a year ago, an increase of 29%. Ohioan Joins CSBS Staff Dr. Lawrence E. Kreider, execu tive vice president-econom ist of the Conference of S tate B ank Supervi sors, has announced th a t Jo h n F. Kirwin has been hired as adm inistra tive director of the Conference. M r. Kirwin, 53, has 19 years of association m anagem ent experience, including 14 years w ith the Ohio S tate Pharm aceutical Association, 12 years as its executive director. He also has served as public relations director of the Ohio Small Business Committee, as legislative director of the Ohio Association of Realtors and as adm inistrator of the A ttorneys Congressional Cam paign T rust of the Association of Trial Lawyers of America. A native of Youngstown, Ohio, Mr. Kirwin holds a B.S. degree in Business A dm inistration from Ohio S tate U niversity. He became a C e rtifie d A s s o c ia tio n E x e c u tiv e (CAE) in 1966 and has completed four association m anagem ent courses at Yale U niversity, M ichigan S tate U niversity and Syracuse U niversity. M r. K irw in h as se rv e d as president of the N ational Council of S tate Pharm aceutical Association Executives and Ohio Trade A ssocia tio n E x e c u tiv e s a n d as s ta te chairm an of the public affairs comm ittee of the American Society of Association Executives. He is a recipient of Ohio pharm acy’s highest honor, The Beal Award. We’ll Help YOUR GOOD CUSTOMERS when YOUR requirements can’t meet THEIRS . . . if you’ll RECOMMEND W ESTERN CAPITAL CORPORATION for personal, confidential loan brokering TO CONVERT SHORT TERM DEBT TO LONG TERM LOANS FOR Farm Purchasing • Leasing • Refinancing W ESTERN CAPITAL CORPORATION f \\ \ WESTERN CAPITAL BUILDING • 3035 HARNEY • OMAHA, NEBR 68131 j jXlf |f l j j p | | Specialists in Loan Analysis, Packaging & Placement NEBRASKA 1-800-642-9390 TOLL FREE OUTSIDE NEBRASKA 1-800-228-2770 N orthw estern Banker, S ep te m b e r 1978 M aster the'm aze'to Money is getting tighter. So more and more lenders are going to Freddie Mac and Fannie Mae for mortgage money. To a lender using them for the first time, the route to these valuable secondary market sources can appear to be a labyrinth of complicated forms. Initially this “ maze” may confuse even the most dedicated mortgage lender. And delays and rejections caused by procedural errors can mean lost revenues for lending institutions. But M G lC s new Maze-Master kit eliminates the pitfalls along the path to Freddie and Fannie. It covers every aspect of selling mortgages to them: how to become an approved seller/servicer; how to get a forward commitment; how to package loans for sale, etc. M G lC s Maze-Master shows you how to avoid time-consuming and costly mistakes lenders most often make. Such as the seven pitfalls visualized below. And M G IC offers you more than a kit. Appraisal reports without photos cause delays while photos are forwarded. / If you bid incorrectly in mortgage auction, you won't get a commitment. DÜ 1 « HERE __ Ur* u\lJ «mil S'* If you’re not % an approved seller/ servicer, you cannot even start down the path. Failure to use approved uniform mortgage documents may mean a rejected package. Maze-Master can get you past these pitfalls on the path to Freddie and Fannie. «¡w * • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .............. " - Freddie and Fannie O ur representatives are available to advise you on all other secondary market alternatives, including private investors, state housing finance agencies and mortgage-backed securities. So if your institution is setting out on the road to Freddie and Fannie, you should fill out the coupon to get your Maze-Master kit, or contact your M GIC representative. Let M GIC show you the way to Freddie's and Fannie's funds. To: The M aze-M aster 6194 M ortgage G uaranty Insurance C o rp o ra tion M G IC Plaza, P.O. Box 488 M ilw a u ke e , W isconsin 53201 □ Please have your representative p rovide me w ith M G IC ’s M aze-M aster kit. □ Please have your representative contact m eabout o th e r secondary m arket alternatives. N am e______________________________________ Firm Address C ity___ State .Zip. MGIC With verifications over 90 days old, you’ll need a special letter or reverification. V 'wy ■Ul/Z ■If t: €-:-¡ V0' \®\ m Ah, '/ If a loan is delivered under an expired commitment the package is rejected. Loan documents in wrong order? Processing slows down. a, .V https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M il ml' With Maze-Master, you’ll avoid pitfalls and get your mortgage money faster. Bank Promotions ROM OTIONS and other an P nouncem ents have been m ade by the following banks: American National Bank and T rust C om pany, C hicago, 111.: William P. M cFadden recently was elected a vice president and Howard J . Isador a second vice president. Also announced were the following W. P. McFADDEN a 5-character message center! Words change or travel. W ith tim e and tem perature. Now even the smaller financial institu tions can afford a message center display for advertising or public service. Daktronics Venus 500 has 32 columns of lamps w ith seven 15-w att bulbs per column for displaying 18" high charac ters. Flash on as many as 16 words of five letters or less, plus time and temperature or run a traveling message of up to 16 words of up to 16 characters each, plus time and temperature. At far less investment than our standard 10-character display. VENUS 500 MESSAGE CENTER x> DAKTRONICS INC Write fo r literature and prices — DAKTRONICS, INC. Box 299-L Brookings, S.D. 57006 Telephone 605/692-6145 N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 H. J. ISADOR promotions: Rachel Alagiah, in ter national banking officer; Debra R. Buesing and Marie Kuechm ann, operations officers, and Francis T. Stack, tru s t officer. Bank of America, San Francisco: Richard Puz was nam ed executive vice president in the world banking division where he heads adm inistra tive services. Merrill Ring was prom oted to senior vice president as head of the research departm ent of the bank investm ent securities divi sion. The Boatmen’s National Bank of St. Louis, Mo.: William H. T. Bush has been elected president and chief operating officer and John M. Brennan chairm an of the executive comm ittee of the bank. Both also were elected directors. M r. Bush, who will assum e his responsibilities around November 1, formerly was executive vice president of the H artford National Bank and T rust C o m p an y in C o n n e c tic u t. M r. Brennan previously was executive vice president in charge of banking. He also is senior vice president of B oatm en’s Bancshares, Inc. Commerce Bank of Kansas City, Mo.: The following prom otions and appointm ents have been announced: D a v id B. A n d e rso n , to vice president of m arketing, tru s t d ep art m ent; Stephen E. Erdel, correspon dent departm ent, and Alice Slepekis and E . W endell W illiams, retail banking departm ent, to assistan t vice presidents; Thom as E . Weiford and George H. Wood, to senior tru s t officers, tru s t departm ent; H arry J . Kelly, III , to commercial banking officer, m etropolitan departm ent, and P eter L. H ays and Dee M athews to consumer banking officers, retail banking departm ent. M r. Erdel formerly was an assistan t vice president w ith Commerce Bank of Mexico. The First National Bank of Chicago, 111.: Schubert J. Dyche, former Treasury D epartm ent official, has been elected vice president and senior advisor, international, in the business and economic research departm ent of the bank. Mr. Dyche served as Treasury representative in Paris. First National Bank in St. Louis, Mo.: The bank has announced the election of three new assistan t vice presidents: John W. Fricke, formerly bond investm ent officer; Lawrence S. Ross, formerly international banking officer, and Douglas G. Sm ith, m anager of adm inistration and operations, office in London, England. In addition, John J. Dwyer, J r., has been appointed business developm ent officer. He previously was m anager of affiliate liaison for F irst Union Bancorporation, St. Louis-based holding com pa ny, of which F irst N ational is the lead bank. M anufacturers H anover Trust Co., New York, N.Y.: Funeral services were held recently for Gerard J . Creamer, senior vice president, adm inistration, of the national division and deputy general loan officer. The bank has announced a new organization structure for its tru s t division. Joseph L. M cElroy, execu tive vice president in charge of the division, said the new arrangem ent is designed to increase external responsiveness and internal produc tivity. Senior officers are W illard L. W heeler, J r., Robert C. W illiams, and Victor J . Melone, all senior vice presidents. M r. Melone, Mr. W heel er and Rudolph Abel, vice president in charge of investm ent research, will constitute the investm ent policy committee. N ation al B oulevard Bank of Chicago: M ark H . From m has been elected assistan t vice president, .. W hen a customer asks for more than your lending limit, think Bank ofAmerica. When your banks customers decide to expand their credit lines to inventory equipment, whether farm machinery, earth-moving equipment, automobiles or whatever, they’re likely to turn to you for that financing. And if the amounts they ask for are greater than your legal lending limit, you can answer their needs by letting Bank of America provide you with overline assistance. In addition to offering funds, we can put the lending skills of our account officers to work for you. Backed by specialists in Bank o f A m e rica N T& S A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis equipment finance, they can assist you with whatever it takes to help keep those borrowers your customers. With over 1200 offices around the globe, we can provide a world of banking services, including import-export assistance, as well as domestic overline participations. The next time you need a correspondent bank, remember us: were the banker’s banker. In San Francisco, call (415) 622-6909. In Los Angeles, call (213) 683-3526. BANK of AMERICA C orresp on de nt Banking Services 14 Robert Morris Meeting Slated for Dallas ANK commercial lending prob lems and opportunities will be B discussed and explored during the senior loan officer at Irving T rust Company, New York City. Dr. Nadler is professor of business adm inistration a t R utgers U niversi ty, and Mr. Golembe heads his own firm in W ashington, D.C. Also during the two and a half day business program , over 70 speakers will present 36 different sessions covering commercial lending prob lem s an d o p p o r tu n itie s . T hese include risk rating; asset m anage m ent; recent accounting/auditing rule changes; agricultural lending; complying with Reg B; fallacies of in te r n a tio n a l len d in g ; form s of tax-free lending; middle m arket lending; commercial loan m arketing; potential perils of privacy legisla tion; and lending to auto dealers and the hospital/health care, real estate developm ent, leasing, and retail industries. In addition, for the first tim e, the Conference will include four threehour mini-workshops, which will be presented concurrently one after noon. They will cover loan quality control, loan docum entation, com mercial loan training, and m anaging loan exam inations. 64th A nnual Fall Conference of R o b e rt M o rris A s s o c ia te s . The Conference is scheduled for Novem ber 5-8 in Dallas. RMA is the W. W. REYNOLDS M. H. FROMM national association of bank loan and m arketing departm ent, and William credit officers. W. Reynolds bond officer. Mr. H osted by R M A ’s Texas Chapter, From m comes from the George H. the Conference will be held a t the Elliott Company where he was a vice Fairm ont Hotel. president, salesm an and trader. Mr. S o m e 2 , 0 0 0 Reynolds has over 20 years of RMA members experience in sales, m ost recently and their spouses selling municipal and governm ent are expected to securities to correspondent banks in a t t e n d . V in c e another Chicago bank. Thompson, presUnited Missouri Bank of Kansas dent, F irst N a City, N .A ., Kansas City, Mo.: The tional Bank in following officers G arland, Texas, have been elec is the Conference w . F. r ic h , JR. ted: K ent Sm ith, chairm an. Presi bond investm ent | ding at the convention will be Willis officer; Robert E . F. Rich, president of RMA and M cFarland, a s executive vice president of the sistant tru s t offi- | N orthw estern National Bank, M in c e r, p e rs o n a l neapolis. tru sts; Rudy M. § Federal Reserve Board Chairm an T h o m a s, a ssis. M G. William Miller, incoming RMA ta n t investm ent 8 President Edwin A. Schoenborn, officer, tru s t inK' SM,TH Senator John Tower, Dr. Paul v e s tm e n ts ; K e n n e th A . M iller, Nadler, and bank consultant Carter assistan t cashier, instalm ent loans, Golembe will be am ong those giving and Robert E. Pyszka, assistan t m ajor addresses. Mr. Schoenborn is BMA Publishes Ad Guide director, purchasing. In-depth guidelines to aid bank an executive vice president and advertising personnel relate the basics of newspapers, television, radio, m agazines, out-of-home and yellow pages to the total media plan are presented in “ Guidelines for Selecting Media for Bank A dverti sing: An U p d a te ,” which has ju st been p u b lis h e d by th e B an k M arketing Association (BMA). According to a recent BMA study, the estim ate for media investm ents That's w hat you get when you call on the by BMA member banks of all sizes in Kirk Gross Company to handle your 1977 was well over $1 billion. This building or rem odeling project. new BMA publication provides a Our specialists handle everything from basic understanding of the strengths building plans, to co nstructio n and and weaknesses inherent in each interio r planning and design. Right down medium for application in planning to your secretary’s chair. advertising, which represents the But most im portant, w e ’ll be on target, on single largest item in m ost b ank’s tim e and on the money. m arketing budgets. Call us. W e'd like to discuss your project. “ Guidelines for Selecting Media for B ank A dvertising: An U pdate” is available for $22.50 ($15 BMA KIRK GROSS CO. member discount price) from: Order 110 EAST 7TH ST., WATERLOO, IOWA 50705 D epartm ent, Bank M arketing A s PHONE 319/ 234-6641 sociation, 309 W est W ashington Street, Chicago, IL 60606. On ta rg e t, on tim e , on th e m oney. N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 The EFT System that‘s ready for you to plug in , now. VISA With a broad consumer base...from the internationally accepted VISA name. With sharing programs and cooperative arrangements to keep your costs to a minimum. Rocky M ountain BankCard Association now makes it possible for you to begin offering convenience of Electronic Funds Transfer service to custom ers for a lot less than you might imagine. Through our already-established VISA/Plus® Autom ated Teller M achine system utilizing high-speed com puters and special telephone equip ment, you can offer 24-hour-a-day 7-day-a-week transactions —both at your bank and through others in a shared environm ent. a With an expert Electronic Banking Service Department to help you in every phase. Your custom ers will be able to use a choice of cards for a variety of transactions. The VISA Banking Card, issued by you, can be used for purchases from dem and accounts at m erchants internation ally, and for ATM access, all over the Rocky M ountain area. And they'll be able to use your own personally designed “Plus” card for shared ATM transactions in the Rocky M ountain area. Association with the well-established V IS A , credit card and the common “V ISA /Plus” facility identification provides very high consum er acceptance and use levels—and will help you achieve high usage and revenue. We now have close to 500 correspondent nu m u i c ; than m a n forty-four i banks, aand more H k thousand m erchants processing ] plastic card transactions transac and sales through our center cei for over two million card holders in tlthe Rocky M ountain area. We have over 11 years of experi ence to help m eet your electronic banking needs. Our Electronic Banking Service D epartm ent can help you develop, implement and sustain your part of the system. And we offer you in-depth experi ence in all phases of Outside EFT implementation. It all adds up to Colorado the best full|ln service EFT Colorado System in the country. ''■ P lu s System 1 800 - 525-3717 1 800 - 332-3320 With these phone numbers. We invite you to find out more. Specifically, how we can help you “plug” into our system. Give us a call. We'd like to give you a tour of our Service C enter to show you the way you can begin providing your own modern, efficient electronic banking services. S VISA k ___________ Plus'« Center https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Rocky Mountain BankCard Association P.O.Box 5952T.A. Denver, CO 80217 N o rth w e s tern Banker, S eptem b er 1978 «r i https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 s h ip p in g a n d h a n d lin g c h a rg e . Q uantity prices available on request. M r. B ra n tle y also offers a program to prom ote use of the book 3. Income tax considerations— among bank custom ers as a service ID ELY acclaimed estate plan ning authority Neil E. H arl has provides more complete and updated to them . interpretations of carryover basis expanded and rules for handling income tax Comptroller Heimann Warns updated his p a liability on sale of assets. And p e rb a c k book there’s a complete example of the Banks of Capital Shortfall “ Farm E state & Comptroller of the Currency John calculations needed to find the “ fresh B u s in e ss P la n s ta r t” income tax basis and the three G. H eim ann recently urged bankers nin g .” This 1978 to include specific capital targ ets in adjustm ents to th a t basis. version is the 4. Structuring the farm business future planning to forestall a severe fourth edition of —this covers possible recapture of capital shortfall th a t m ay lie ahead. a book t h a t ’s investm ent tax credit on form ation In his rem arks he said: become a best “ U nfortunately, today the capital of a new partnership or corporation seller because of N. E. HARL and other problems th a t m ay arise if grow th of the n ation’s banking the helpful, sim ple language it contains to explain a land is left out of a new partnership system has simply not kept pace with expansion of the resource base, or corporation. rather complex subject. particularly risk assets. This devel O ther main chapter titles are: Earlier editions were widely used opm ent has probably occurred more • Effects of title ownership on by lenders, brokers, underw riters as a function of the dram atic grow th a n d o th e rs for refe re n c e an d estate planning. • Federal E state Tax considera in bank resources, influenced by the distribution to clients as a service to inflationary environm ent of the them ; and hundreds have already tions. 1970’s, rather than as a result of any • Gifts in estate planning. ordered the new edition. • The installm ent contract and its conscious effort on the p a rt of Form er editions drew rave re bankers to accept a lower level of views. For example, one New Mexico uses. capital. • The private annuity. reviewer wrote about the 1977 “ Bank capital ratios, in general, • T rusts and estate planning. edition: “ Solid, readable, helpful, a • Life insurance in estate plan have been declining, and I am basic reference...for those who need concerned th a t a substantial capital to know w hat the tax laws imply for ning. • Retirem ent and estate planning. shortfall may occur by the early their present and future operations, • Organizing the farm business— 1980’s if the trend continues. and w hat their options may be for “The answer to the problem is an reducing tax liability and conserving parent-child rearrangem ents. imm ediate effort on the p art of banks • Partnerships and estate plan their business for their heirs.” to plan their capital needs. As a help The new fourth edition contains 70 ning. • Farm corporations and estate to the industry, our National Bank additional pages—a total of 304. Dr. Surveillance System is generating H arl added four new chapters of vital planning. • T he farm c o rp o ra tio n an d projections of individual b an k s’ interest to agri-business persons and capital requirem ents for the next two farm families. The new chapters business continuation. • Tax implications of incorpor years. I call for your com m itm ent, include: and the com m itm ent of all bankers 1. Liquidity considerations—foating. • Employee sta tu s of the farm er across the nation, to incorporate cuses on solving the problem heirs formal capital targ ets in your often have of lack of ready funds to after incorporation. • D isadvantages of incorporation. strategic planning efforts. Only in pay taxes and meet other costs a t the • W here does the corporation fit? this way can individual banks expect death of a loved one. Dr. Harl • S te p s in fo rm in g a farm to rem ain capable of efficiently suggests setting up a “ liquidity serving existing m arkets and achiev plan” to identify the m ost helpful corporation. • How to go about the estate ing new long-range objectives. ways to augm ent estate liquidity. “ Any plan for sound capitalization S p ecial a tte n tio n is g iv en to planning process. The new edition is much more m ust recognize the need to protect installm ent options, federal estate tax extensions, life insurance, and thorough than prior editions. Dr. against concentration of loans.” H arl is one of A m erica’s foremost “ flower bonds.” “ For families who can qualify, the authorities on ag law and tax 15-year installm ent paym ent option m atters. H e’s a lawyer, economist Joins ABA P.R. Division Daniel S. Buser J r., has been looks quite favorable. M any bankers and distinguished professor at Iowa and other lenders will no doubt be S tate U niversity. The book is named director of public relations for asked questions on this by farm w ritten in simple lay term s, contains the American Bankers Association, families and o th ers,” Dr. H arl 24 chapters, plus seven appendices it was announced last m onth by Celia K. W allace, executive director and an expanded index. states. Single copies a t $7.95 each m ay be of ABA communications. 2. Optimal Tax Saving—provides Prior to assum ing this position, he a more direct and specific focus on ordered from Bill B rantley & Assoc., setting property ownership and the Inc., Box 397, W est Des Moines, was president of Buser Associates, a will to achieve optim um tax saving Iowa 50265. Iowans m ust add 3% private public relations consulting tax. Paym ent w ith order avoids a $3 corporation. at deaths of both parents. Neil Harl Publishes Updated Edition of Farm Estate & Business Planning Book W Digitized forestern FRASER N orthw Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 19 We can solve your problem ! Here’s how... We can help you find the solution to that problem lying on your desk right now. Over the long haul, we can help you grow, a little at a time, or a lot. Let’s get together! Account Services: Cash letters. Wire transfers. Coin and currency. Collections. Loan Administration: Commercial, agricultural, and real estate overlines. Bank loan counseling. Data Processing: “ On-line” and “ Batch!’ Checking. Savings. Certificates of deposit. Installment and commercial loans. General ledger. Automated clearing house. Automatic teller machines. Payroll. Investment: U.S. Gov’t ’s. Federal agencies. Munic ipals. Federal funds. Commercial paper. Computer ized bond p o rtfo lio accounting. Pricing and counseling. Securities safekeeping. Trust: Public fund custodial accounts. Personal and corporate trusts. Bank Cards: Master Charge. Visa. Leasing: Direct. Or, participating. International Banking: Worldwide correspondent network. Letters of credit. Foreign collections. Currency exchange. E.L. B u rch S e n io r V ice P re s id e n t C o rre s p o n d e n t B an k D iv is io n S te v e B la c k b u rn V ice P re s id e n t Kansas D ic k M u ir V ice P re s id e n t lo w a -N e b ra s k a P hil S tra ig h t V ice P re s id e n t N o rth e rn M isso u ri G e o rg e C re w s V ice P re s id e n t Kansas C ity M e tro J a c k B e e ts V ice P re s id e n t Kansas D avid B e a r A s s is ta n t V ice P re s id e n t O k la h o m a -C o lo ra d o D ave Van A ken V ice P re s id e n t K ansas D ale P arker C orr. B a n k O ffic e r M isso u ri D u n ca n K in c h e lo e V ic e P re s id e n t T e x a s-A rka n sa s UNITED M ISSOURI BANK OF KANSAS CITY, N .A . United we grow. Tbgether. 10th and Grand, Kansas City, Mo. 816/556-7000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC N o rth w e s tern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 21 Know your customers. Or else. Look around. Banking has become one of today’s most competitive businesses. Your customers are being wooed by every financial institution in your market area. The trick to keeping your customers loyal, and to increasing your profits, is knowing as much about them as possible and keeping that information updated daily. Unfortunately, complete up-to-the-minute customer profiles are rare. Background in formation is often gathered randomly and stored in many different places, making it difficult to obtain for useful purposes. Until now. Until Banks of Iowa Computer Services Central Information File (CIF). With Banks of Iowa Computer Services’ CIF, complete information on your custom ers can be obtained in moments, either on a display terminal or as hard copy. The operative word is exhaustive. Since every possible piece of information gathered is centrally stored, you have immediate ac cess to such things as the status and history of a given customer’s account and his ac count relationships. The businesses he’s in and how they’re doing. And any pertinent family information. This information is critical in making quick, knowledgeable, profitable decisions. CIF is the most economical, efficient and sensible way to gather all this information and to use it for increased profits. D on’t kid yourself. There aren ’t many new customers around. What you need to do is expand the ways your existing cus tomers use your bank. Because a lot of other financial institutions would like them as customers. And are trying to get them. Can you trust your customers? Yes — if you can trust your information retrieval sys tem. And that means CIF. Contact us today for an appointment. We’ll be glad to explain our system at your convenience. Banks of Iowa Com puter Services ^ A “ BANKS OF IOW A” SUBSIDIARY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 22 Continental Phasing Out Six Computer Services for 45 Chicago Correspondents O N TIN EN TA L Bank of Chi C cago plans to phase out, over the next year, six computerized account ing services presently used by 45 of its correspondent banks in the Chicago m etropolitan area, Jo h n B. Tingleff, vice president, said recent lyMr. Tingleff, who heads the b ank’s financial institutions division, said the move is “ a stand-alone decision” which will not affect any of th e o th e r se rv ic e s C o n tin e n ta l provides to its more th an 2,500 correspondent banks across the country. D uring the year-long phase-out, Mr. Tingleff said, Continental will assist correspondents in selecting new suppliers for the six accounting services: demand deposit accounting, on-line savings, m ortgage loan, instalm ent loan, certificate of de posit, and check-credit processing. ‘‘While on the surface it m ight appear th a t the data processing needs of C o n tin e n ta l a n d its correspondents are the same, from a system s design standpoint it became clear th a t there is little com patibility between the system best suited to C ontinental’s internal needs and a system which would meet the requirem ents of our correspondents, ’’ Mr. Tingleff said. ‘‘The data processing needs of correspondent banks are developing along different lines than those of m ajor m oney-center banks such as C ontinental,” he noted. ‘‘Correspon dent bank activities are more oriented toward the retail sector, and there also is a m ajor difference in scale of operations.” Mr. Tingleff said the six affected services currently are profitable to the bank and useful to correspon dents, b u t he noted th a t C ontinen ta l’s increasingly complex data processing network “ may not be the kind of system th a t can m ost effectively serve correspondent bank needs in years to com e.” (0 1 i) Piper, Jaflray &Hopwood INCORPORATED Established 1895 Member New York Stock Exchange, Inc. N orthw Banker, S ep te m b e r Digitized for estern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 BAI Promotes 3 Executives Three senior executives of Bank A dm inistration In stitu te have been prom oted to higher responsibilities, it was announced by Ronald G. Burke, BA I president. Robert H. Long, senior vice p r e s id e n t a n d d ire c to r of th e In stitu te ’s banking services division, has been prom oted to director-ad vanced studies and assistan t to the president. In this newly created position, Mr. Long will be responsi ble for identifying the developing issues in banking and assessing the implications of new technology and their overall im pact on the industry. M r. Long also will be undertaking e x p e rim e n ta l p ro je c ts aim ed a t expanding B A I’s service contribu tions to the industry. He joined BAI in 1961 as a system s research specialist. W ayne B. Lewin will be the new senior vice president and director of th e b a n k in g se rv ic es d iv isio n , replacing Mr. Long. He has been vice president in charge of the operations and technology group the p ast two years and prior to th a t was an operations m anager for M anu facturers H anover T rust Company in New York. David Van L. Taylor has been appointed vice president and director of the operations and technology group, which includes research into the evolving paym ents mechanisms as well as designing im provem ents in day-to-day bank operations. Mr. T a y lo r w as fo rm e rly m a n a g e r, inform ation system s departm ents, w ith the Girard Bank, Philadelphia. Deluxe Check First Half Sales Top $151 Million Eugene R. Olson, president of Deluxe Check P rinters, Incorpora ted, St. Paul, M inn., reports sales for the first six m onths of 1978 reached $151,773,000, up 15.2% from $131,758,515 a year ago. N et e a rn in g s for th e p erio d w ere $15,320,752 or $1.33 per share, up 21.7% from last year’s $12,592,620 and $1.07 per share. S e c o n d q u a r t e r s a le s of $79,054,246 were up 18.5% from last year, while net earnings were $8,693,153 or 76 cents per share compared to $6,370,711 and 54 cents per share a year earlier. Mr. Olson also announced th a t the Deluxe Check board of directors has in c re a se d th e re g u la r q u a rte rly dividend on all common stock from 24 cents up to 30 cents per share, a 25% increase in dividend. Are your money orders burying you in costly paper work? If so , American Express can take a load off your hands. With the American Express®Financial Institution Money Order (FIMO). We start by taking over the print ing-printing your name promi nently next to ours on distinctive gold money orders. Then we keep you constantly supplied at no cost. But we don’t stop there. We do the proofing and processing. Filing, storing and tracing. Research. Refunding. And recon ciliation. Which saves you not only time but headaches. And along with the red tape goes the risk. Because we take over f the responsibility for lost and stolen money orders. So all you have to do is sell them. And we make that easy too. It takes less than 60 seconds. Little more time than the average deposit transaction. Which is good for your customers and your tellers too. With FIMO® we control the costs and you control the profits, because the price is up to | you. You pay only a small B predetermined charge ■gjSSEg | for each money order. L. Send to: Mr. Gil Rosenwald, Vice President—Sales Development American Express Company American Express Plaza New York, N.Y. 10004 AM 9 Yes. I want to find out more about FIMO. Name Title Bank Address City State Zip American Express FIMO. The money-making money order. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s tern Banker, S eptem b er 1978 24 M anufacturers H anover can’t D ep ository P ro cessin g We can give largest holder of stocks and corporate bonds. You don’t even have to put up the cash deposit and collat eral required of a DTC participant. You “piggy back” on ours. 3. Removing the certificate barrier. 1. You take a giant leap into the future. The switch is on—from the costly, cumbersome proce dures of certificate handling to the economy and efficiency of depository processing. In a depository environment, transactions are done by book-entry. It’s the most advanced way to hold, deliver, receive and pledge securities. Depository processing is no utopian promise. It’s fully operational today at Manufacturers Hanover Trust Company. 2. Automatic entrée through Manufacturers Hanover. Establishing a direct link with a depository takes a sizable initial investment in manpower and computers. But never mind. MHT has done it for you. With MHT as your custodial bank, you automatically participate in the Depository Trust Company, the nation’s N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis With book-entry transactions, depository processing eliminates the physical holding and manual handling of both stock and corporate bond certificates. Gone are such direct and indirect expenses as clerical processing, mailing, vault space and your own security measures. How, costs of safekeeping and processing are fixed rather than variable. Budgetable items, at last. 4. We get low depository rates. So do you. Perhaps the most telling evidence of MHT’s commit ment to the depository approach is that a majority of our own trust assets are on deposit at DTC. These, along with the total holdings of our clients, make MHT a major DTC partici pant. As such, we’re entitled to lower rates—which we pass right along to you. In fact, charges for MHT’s Depository Processing Service are even less than those of a traditional safe keeping service. 5. Early-morning confirmation of trades. MHT’s expertise in DTC’s Institu tional Delivery system means the stream lining of con- firmsand settlement. When your broker identifies trades as I.D. items, our IMPAC Securities Processing facility works through the night. Usually by 11 A.M. the next day, confirmations await you for review and validation. MHT pulls out all stops to minimize fails. And to give you better control of your funds. 6. In step with the options trend. Taking the depository route, via MHT, overcomes many of the problems that options pose. There are no capital restrictions whatsoever. Ho processing delays either, as 25 g iv e you on e g o o d reason to u se o f secu rities. you eleven . MHT reports such trades on a day-to-day basis. 7. A dividend in dividend payment. MHT’s sophisticated proces sing techniques also mean improved dividend service. Dividends are automatically credited to your account on the payable date in clearing house funds, and we advise you that your account has been so credited. 8. A master in the art of reconcilement. MHT reconciles its account with DTC every day. MHT reconciles each custom er’s posi tion every day. Through these dual actions, we’re able to provide you with a daily report of your MHT securi ties transactions forthepreviousday In addition to con ventional reporting means, our exclu sive IMPAC Securities Report ing system pro duces an itemized transaction journal of your account on a daily basis. So com plete—including such vital information as https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fails, completions and pend- ,L | securities administration ing transactions—that you with our bank averages know exactly whereyoustand, xj* well over 10 years. 9. Depository and non depository items: parts of a whole. 11. A guiding hand in the over. When you join the trend You have more effective to certificateless control when you designate processing, MHT MHT to handle the process works closely with ing of aH your securities. you to convert We’re as proficient in the your institu clearance of thosenoteligible tion’s eligible for DTC—including Federal securities to Reserve book-entry securi the depository ties, municipals and environment. short-term paper—as We have the we are in the . experience transactions to carry it off smoothly and of DTC with dispatch. eligibles. 10. Our people. Sooner or later, you’ll switch Technology and hardware can’t do it all. Smooth and accurate securities processing requires knowledge able, dedicat ed people with a record of limited turnover. At MHT, you deal with a staff whose experience in from holding and handling certificates to certificateless depository processing. Why not sooner? Talk to us now, about how your institution can profit by MHT’s relationship with DTC—and by our handling of non-eligibles as well. Contact your National Division representative, or Brian V. Carty, Vice President, 350 Park Avenue, N ew York, N.Y. 10022, (212) 350-4658, or Louis V. Segalini, Vice President, 40 Wall Street, N ew York, N.Y. 10015, (212) 623-7593. MANUFACTURERS HANOVER Member FDIC N orthw estern Banker, S eptem b er 1978 26 Donald Jacobs Is Named Gaylord Freeman Professor of Bank at Northwestern U. Prof. Jacobs’ ability serve as the first incum bent of the Chair named in Mr. Freem an’s honor.” Funding for the chair is being M a n a g e m e n t, provided by The F irst N ational has been named Bank. as the Gaylord Dr. Jacobs has been dean of the Freem an D istin G raduate School of M anagem ent guished Profes since 1975. Prior to th a t he was sor of Banking. chairm an of the school’s finance T he a p p o in t departm ent and director of the m en t w as anBanking Research Center. He moved by Provost R ay to N orthw estern in 1958 as assistan t mond W. Mack, professor of finance, and in 1970 was chief acad em ic named M orrison Professor of F i officer of the U niversity. The Freem an Chair was establish nance. A widely-published authority on ed in 1976 by N orthw estern’s board of trustees. I t honors Gaylord banking and finance, he served as Freem an, retired board chairm an of senior economist of the Banking and the F irst National Bank of Chicago, Currency Committee of the U. S. for his leadership of the banking House of R epresentatives and as profession and long service as a staff co-director of the Presidential Commission on Financial Structure N orthw estern trustee. “This honor links two internation and Regulation (the H unt Commis ally respected banking figures,” said sion) . He is a director of several Mr. M ack. “ I cannot think of a more appropriate way to honor Gaylord corporations and chairm an of the Freem an than to have a scholar of board of AM TRAK. ONALD P. Jacobs, dean of N orthw estern U niversity’s G rad D uate School of Following graduation from Roose velt U niversity he attended Colum bia U niversity, where he earned M .A. and Ph.D degrees in econom ics. Mr. Freem an, a long-time business and civic leader, retired from The F irst N ational Bank in November 1975. He joined the bank in 1934 and became president in 1960 and chairm an in 1969. Mr. Freem an was elected to the board of trustees of N orthw estern U niversity in 1954 and became a life trustee in 1976. Fed Amends Regulation O The Board of Governors of the Federal Reserve System has am en ded its R e g u la tio n O, w hich regulates loans by member banks to their executive officers. The am end m ent makes it clear th a t an executive officer may not become indebted to a member bank under a bank credit card, check credit or similar plan under term s more favorable than those offered to the general public. The am endm ent is effective June 30, 1978. By S. BODILY OIL 18” X 24” $550 OTHER WORKS BY: ABBRESCIA • BILL BARBER • BASSETT • R. BLAIR • BODILY • BOLINGER • FITZSIMMONS • GARRISON • R. C. GORMAN • R. GREEVES • GUTIERREZ • ROY HAMPTON • NED JACOB • JASPER • RAMON KELLEY • KOLTER KOOSER • LAWSHE • TED LONG • McCANN • METZ • PERILLO • ACE POWELL • WM. F. REESE • JAMES ROYBAL • SANDY SCOTT • SINCLAIR • RON STEWART • TOSCANO • FRITZ WHITE • WHITLEY. IIS o f lljr GALLERY PAINTINGS • BRONZES • ARTIFACTS • WESTERN AMERICANA SUITE 313 CITIZENS STATE BANK BLDG. 5050 EXCELSIOR BLVD. - MINNEAPOLIS, MN 55416 • PHONE (612) 927-5565 N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 V V k 27 Ideas grow th. Good ideas are the seeds for new business. Our ideas have made secure loans possible for budding citrus processors, liquor distributors whose capital was k e”and popcorn processors who were popping with great plans. l< S o o We’ve helped loggers spruce up their operations, lubricated the expansion of an oil distributor. made "grocery money” available to wholesale grocers, helped fertilizer distributors spread their sales, and even cheered up^ a very blue cheesemaker. For all kinds o f borrowers, all kinds o f banks, making growth-companies bankable is our business. Ifs good for your business. Our name is Collateral Control Corporation. Get to know us. In n o v a to rs , w ith c a p ita l ideas. Collateral Control Corporation Receivables Certification • Inventory Certification • Field Warehousing • Participation Leasing Offices in 36 Financial centers. Call (800) 328-1434 or (612) 222-7792 for location nearest you. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 28 was elected a vice president in 1976. Corporate News ROMOTIONS and other an P nouncem ents have been made by the following firms: Aetna Business Credit, Inc., East Hartford, Conn.: Richard B. Polivy has been appointed vice president and general counsel and John J . Gillies, J r., associate general counsel and secretary. Mr. Polivy was in business and commercial law practice with the firm of Rosenberg, Rome R. B. POLIVY J. J. GILLIES, JR. and B arnett in H artford, before joining the company. Mr. Gillies formerly was counsel and assistan t secretary at M idlantic M ortgage Corp., Newark, N .J. Bank Building Corporation, St. Louis, Mo.: H. Berny Engel and Joseph P. Hopkins have been promoted to senior vice presidents. H. B. ENGEL J. P. HOPKINS Mr. Engel joined the company in 1965 and m ost recently was group vice president. In 1967 Mr. Hopkins joined Bank Building as personnel director and in 1972 was prom oted to vice president, adm inistration. He recently was appointed a member of the corporate planning group. William H. M iner has been appointed sales m anager for the com pany’s central division, located in St. Louis. Prior to joining the company, Mr. M iner was senior associate and director of sales for Prestige Services, Inc., St. Louis. N orthw Banker, S eptem b er Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 W. E. GREELEY Diebold, Incorporated: Robert P. B aro n e h as been n am ed vice president and general m anager, autom atic banking system s, and Edwin A. Yost has been named vice president and general m anager, electronics group. Mr. Barone joined the company in 1971 as remote banking equipm ent product m ana ger. In 1974 he was named general S. E. HAVLICK Bank Consultants of America, Denver, Colo.: W arren E. Greeley and S tan E. Havlick have been appointed Rocky M ountain district m anagers. Mr. Greeley m ost recent ly was a transportation senior sales executive and 9200 sales executive in Denver. Mr. Havlick m ost recently served as district sales m anager, Travelers Check Division, K ansas City, Mo. Borg-Warner Leasing, Chicago, 111.: D o n ald J . R y a n , g e n e ra l m a n a g e r, b a n k services division, has an n o u n c ed the appointm ent of D a rre ll E . Clay as adm inis trative m anager, headquartered in C h ic a g o . M r. Clay has over seven years of D. E. CLAY credit and ad m inistrative experience in the field of collateral m anagem ent. He will have responsibility for credit review and operations adm instration over leases g e n e ra te d th ro u g h p a r tic ip a tin g banks and their customer-lessees. R. P. BARONE E. A. YOST, JR. m anager, autom atic banking sy s tem s. Mr. Yost joined Diebold in 1973 as director of development-elec tronics products. In 1977 he was named general m anager. North Central Life Insurance Company, St. Paul, Minn.: B urton W. Bauernfeind, CLU, was named vice chairm an of the board. W ith the company since Jan u ary of last year, he also will continue as first vice president, m arketing. George LeMaistre Resigns As Chairman of the FDIC George LeM aistre, 66, a director of the Federal Deposit Insurance Cor poration since A ugust 1, 1973, and c h a irm a n since J u n e 1, 1977, announced his resignation from th a t post A ugust 9. Mr. LeM aistre had indicated for some tim e his desire to return to the campus. He has been Dain, Kalman & Quail, Minneap- on leave as a law professor from the lis, Minn.: David E. Liddle has been U niversity of Alabam a. Upon Mr. L eM aistre’s resignation, appointed municipal financial an a lyst. M ost recently he was interna Comptroller of the Currency John G. tional credit analyst with Bank of Heim ann becomes acting chairm an. Boston International, headquartered A perm anent chairm an will be appointed by President C arter to fill in New York City. The company also has announced th a t position. By virtue of his t h a t D o n ald R. G ilb e rt, vice position, the Comptroller is au to president and director of training, m atically one of the F D IC ’s three has been appointed to the advisory d ire c to rs . M r. L e M a is tre is a comm ittee of the New York Stock Democrat. The third FD IC director is 34-year Exchange where he will be involved in th e E x c h a n g e ’s e x a m in a tio n old William M. Isaac, who was vice program for personnel of its member president and general counsel of firms. Mr. Gilbert joined Dain, F ir s t K e n tu c k y C o rp o ra tio n of Kalman & Quail in 1961 and has been Louisville from 1974 until his FD IC director of training since 1970. He appointm ent in late spring. H ow to m ake th e p e r fe c t form ! ornvir CHECK PRINTERS, INC, FORMS DIVISION/P.O. BOX 43497 ' ST. PAUL, MINNESOTA 55164 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 The ins and outs of the agricultural lending market. A correspondent bank th a t’s in the ag overline m arket one year and out the next is just the kind of correspondent bank you don’t need. Your agri bu sin ess custom ers need credit they can depend on. C ontinental Bank is com m itted to the ag m arket. This year. Last year. Next year. Not b ecau se it’s a good crop year, or b ecau se loan dem and is down in other industries. W e’re in it for the same reason w e ’re in the correspondent banking business. To build long-term banking relationships. C ontinental Bank has alw ays provided corre spondents w ith seasonal loans and agricultural overlines. W e’ve even developed a special cash flow kit for our correspondents. With step-by-step, common-sense procedures their farmers can follow to sound financial management. At Continental Bank, credit requests go directly to your account manager. The officer who can say “yes” or “no” on most loans. You get a decision fast. From the person who made it. When you call Hollis Rademacher at (312) 828-6506 and tell him you’re in the market for a farm credit... you can bet on one thing. We’ll be in the market, too. We’ll find away. CO NTIN ENTAL BANK 231 SOUTH LA SALLE STREET, CHICAGO, IL 6 0 6 9 3 C ontinental Illinois N ational Bank and Trust Com pany of Chicago. N orthw Banker, S eptem b er Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Annual Livestock Outlook A NORTHWESTERN B A NK E R Survey DRAM A TIC R ISE in cattle prices for late 1978 and into 1979 for both cattle and hogs, compared to A one year ago, is forecast by participants in the 1978 Livestock Survey conducted last m onth by the N orthw estern Banker. Selected participants were prim arily ag bankers across the upper midwest and into m ountain states ranching areas. B ut in predicting a continuing upward trend in prices begun earlier this year, based on normal m arket functions, they universally state th a t their estim ates can be altered artificially by governm ent intervention in various ways. Three of the more than 45 respondents look for an $80 price on 400# steer calves by the end of this year, while seven look for the price to exceed $80 in 1979, two of them pegging the price at $85. Some of their replies follow: RAY W EILAGE, JR. Chairman Bank of Cody Cody, Nebr. H E N U M BER OF cattle appears to be down 7 to T 10%; therefore, supply and dem and will force the cattle m arket up with the feeder m arket being the leader. The next three years should be profitable for the rancher. Bred heifers and cows could become expensive (over $500) by Jan u ary , 1979. We have an ample supply of good feed. The fat cattle m arket in the $50/cw t area, w ith cheap corn, should make for profitable fat cattle. Cost of gains should be $40/cw t or less. Overall, the picture for cattle looks bright for the next couple of years. The negative side is the U. S. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis economy, and the fact th a t we ranchers and farmers represent less than 4% of the total votes, and there are more people on welfare than that! We have very little control over our governm ent compared to labor. In line with this, I would list our chief problems facing agriculture as these: 1. U. S. economy. 2. Surplus of grains —our governm ent lacks the ability to do a good job of m arketing our commodities. 3. Rising cost of equipm ent, fertilizer, fuel, etc., may eliminate potential profits. LEONARD WOHLMAN Vice President F irst N orthw estern National Bank Redwood Falls, Minn. E HAVE the potential for an excellent crop of corn and soybeans in our area. However, we need W a good rain yet to help make the crop. Our oats crop was poorer th an normal as the test weight was very low. I look for the to tal crop production nationwide to be good, which will make feed grain prices very attractive for feeding livestock bu t very m arginal for the crop farmer. Corn probably will average $1.90 to $1.95 this next year. The overall hog outlook is more bullish than I would probably have expected earlier this year. The reason for th is is th a t hog m en have not overexpanded as they traditionally have done, which is good. I look for hog prices to taper off as we head tow ard year-end. Prices probably will be in the mid-40s in October-December. The prices for next year will not N orthw estern Banker, S eptem b er 1978 32 R eturns on corn m ust exceed cost of production soon for farmers to m aintain good cash flows. Grain operators w ith heavy debt structure are really feeling the pinch a t this tim e. Set-aside and grain reserve program s will need some emphasis to be effective. E xport sales still seem to be the best opportunity to improve prices. PHILLIP B. JOHNSON Senior Ag Loan Officer F irst N ational Bank Bozeman, M ont. fluctuate as much as this year and probably will average $44-$46 cwt. F o r th e c a ttle o u tlo o k i t ’s th e sam e old sto ry —“ cautious optim ism prevails in the cattle in d u stry .” All of us m ust recognize the cyclical nature of the cattle business. If we make decisions based on th a t recognition the cattle cycle autom atically will be m oderated and everyone associated with the cattle industry will have a more stable future. C attle prices will average higher next year than this p ast year; however, profits will not be as great since the feeder cattle prices will be bid up. We will have some bunching in the m arket yet this fall and I look for cattle prices to drop to m aybe the $50/cw t range in October. However, prices then will s ta rt to increase and I look for the prices to average in the upper $50 range during 1979. JOHN W. THOMSON President The Bank of Centerville Centerville, S.D. OGS have remained constant as to num bers on feed H and will continue at the same level. C attle total on feed is down b u t will increase due to ample feed supplies, b u t this will be tem pered by the high cost of laying them in. The m ost im portant factor in agriculture today is inflation—rising costs of operation w ithout offsetting m arket price increases. CHARLES W. NICHOLS Senior Vice President Fidelity B renton Bank & T ru st Co. M arshalltown, la. EX CELLEN T feed supply is now evident for fall A Nharvest. Due to relatively low corn prices there is a great deal of interest in both hog and cattle program s in our area. Lower num bers of cattle and future strong price prospects appear to be encouraging farm ers to pay a premium for feeder cattle this fall. Hog program s are rem aining strong and some increase is evident due to top prices being paid for boars. The m ost im portant problem facing agriculture is m arkets for w heat and feed grains, particularly corn. N orthw Banker, S eptem b er Digitized for estern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 WOULD appear th a t calf contracts for steers and IrangeTheifers combined will average in the mid-60-cents in 1978. There should be some profits shown for the first tim e since 1973 in our cow-calf operations. Those profits will be small in comparison to the previous four y ears’ total loss. Continued inflation will keep the candle burning at both ends for all livestock producers and if inflation continues within the last four years’ averages, then prices received by producers will have to grow accordingly in 1979 to m aintain the profit levels of 1978. C a ttle o p e ra tio n s w ith o u t secondary sources of income and w ith debt levels in excess of $500 per animal unit will not survive these pressures. In our area, cattle operations of the 200 cow/calf size, with an appreciable am ount of debt, will no longer support a family. The biggest problems agriculture faces are inflation and governm ent intervention of the m arket place! W hat we really need is widespread unem ploym ent in governm ent offices in W ashington, D. C. for a few years, w ithout welfare support. Taxation needs to be reduced so th a t all businesses can accum ulate capital for reinvestm ent in private enterprise, creating new jobs th a t will add to our n ation’s productivity. ALAN R. TUBBS President F irst Central S tate Bank D eW itt, la. ITH our abundant feed supply, the demand for feeder livestock will be heavy. Our supply of hay, W silage and corn will be one of the biggest on record for our area. Grains look like they will be relatively cheap and this will encourage more livestock feeding; consequently, farm ers will be bidding up for their feeders w hether it be cattle or hogs. I t doesn’t take much pencil pushing to figure out they can make more puttin g the feed through livestock rather than shipping it down the river. As costs of all inputs, including supplies, repairs, land, interest, etc., continue to increase, more dollars m ust be borrowed to keep a farm ing unit functional. The availability of money and the im portant decisions as to which operators get it will continue to be a challenge to agricultural lenders. The high price of land will continue to provide a cushion to existing owners while proving to be a barrier to entry for young operators w anting in. 33 Making money in the cow-calf business is hazardous at best. One thing for sure ... the genetics of the bull used is a most important factor. Our business is providing semen from the world’s great beef bulls for use in artificial insemination by cattlemen the world over. B ulls are our business! ANGUS ... BIG G UN ... No. 1 bull in Angus test ... from Wagonhammer Ranch, Albion, NE. Take a look at our new Beef Sire Directory ... look at the bulls ... consider their superior genetics ... and see how artificial insemination can add profits to your cow-calf lending program. NEW! Return this coupon for a new Sire Directory • 126 bulls • 20 breeds • superior genetics at their best. American Breeders Service Send a new ABS Beef Sire Directory. Name.__________________________ Address.________________________ DeForest, W isconsin 53532 (608) 846-3721 City------------------------------------ - State Zip-------------------- Phone. Bank_________________ | I ^ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ABS is an authorized distributor of ¿find? Cryogenic refrigerators. Quality equipment for quality service. DeForest, Wl 53532 § NWM-0264 N orthw estern Banker, S eptem b er 1978 34 What a difference a year makes! Livestock Price Predictions Livestock Price Predictions by p articip ants in the N o rthw estern Banker Annual Livestock Survey by p articip ants in the N o rthw estern Banker Annual Livestock Survey (Providing the average of all resp on den ts, as well as the low and high d ollar guesses in each category as noted in p arentheses.) (Providing the average of all resp on den ts, as well as the low and high d ollar guesses in each category as noted in p arentheses.) Steer Calves (400#) Fall 1978 Spring 1979 Fall 1977 Spring 1978 $ 69.61 (63-80) $ 73.10 (65-85) Steer calves (400#) $ 4 6.70 (44 - 50) $ 48.45 (43 - 52) H eifer calves 65.41 (56-75) 6 8.42 (55-100) H e ife r calves 41.60 (38 - 47) 43.35 (3 7 -4 7 ) C hoice feeder steers (650#) 6 3 .09 (52-70) 6 4.95 (53.75) C hoice feeder steers (650#) 4 1.70 (37 - 46) 4 3.25 (3 9 - 4 7 .5 0 ) C hoice feeder heifers 59.01 (52-72) 61 .13 (50-70) C hoice feeder heifers 38.35 ( 3 5 - 4 4 .5 0 ) 39.90 (36 - 45) C hoice steers (1150#) 5 4.65 (48-63) 56.95 (45-67) C h oice steers (1150#) 40 .25 (38 - 42) 42.00 (38 - 46) C hoice heifers 52.19 (45-68) 55.07 (42-72) C h oice heifers 37.94 (34 - 40) 39.50 (38 - 43) H ogs (200#) 46.49 (40.55) 45.28 (38-60) Hogs (200#) 40 .94 (3 5 - 4 7 .5 0 ) 38.31 (32 - 48) Feeder pigs (40#) 41.60 (25-60) 32.00 (1 6 -4 0 ) 31.36 ( 1 6 - 4 6 .4 0 ) 1 85.00 (1 5 0 -2 2 5 ) 185.00 ( 1 4 0 -2 2 5 ) 220.37 (100-350) Bred sows Feeder pigs (40#) 212.50 (125-325) RONALD KREJCI President Schuyler S tate Bank Schuyler, Nebr. E ARE located in E a st Central N ebraska and W presently our livestock and grain people are enjoying good economic gains. This is due to a good 1977 crop and the alert operator has been able to m arket his corn and beans at good price levels. Our prospects for the 1978 crop are good to excellent. M any of our cattle feeders filled w ith feeder cattle last fall costing in the upper 30’s to the mid 40’s. W ith the boost in the fat cattle prices this spring and summer they are enjoying very good profits. As for the hog m an, we seem to have a preponderance of cooperative farrow to finish units and also m any farm ers who have specialized in hogs. They are enjoying good profits. We take m ost of our financial statem ents in the late fall and w inter and we anticipate positive gains in m ost of our operating ratios. I think the biggest challenge in agriculture is the m arketing of our products. By and large, m ost of our o p e ra to rs h a v e d ev elo p ed in to good, e ffic ie n t production people, b u t lack business-like m arketing ability. This is especially true w ith our grain people who work hard all summer, and after they get the crop in the bin, wonder w hat they are going to do w ith it. They need to be m arket conscious twelve m onths out of the year and utilize all the m arketing tools available to N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Bred sows them . I t will be very im portant for the cattle feeder to be on the m arket at least m onthly. We have seen price swings of 10% and more within one week and when we are in the 80’s for dressed beef, we are talking of $50.00 per head. M ost of our hog people have developed this frequent m arketing p attern. We anticipate our feeder cattle to be costing in the $60’s for yearlings and $70 s for calves. A t these levels, our big money m argins are past, and it will take a good, efficient, m arket conscious operator to make money at these levels. GERALD BUTNER Vice President and Cashier Richland N ational Bank Sidney, M ont. H E F E E D situation is good so there should be considerable demand for livestock. 1978 will be a T good year for the producer and it appears ’79 also will be a good year. A m ajor factor in all this will be the federal governm ent and how it handles im ports and all the other situations th a t affect the industry. The biggest problem for agriculture in the years ahead will be agricultural prices compared to operating costs. Economics is the key to any business situation and agriculture is a business and m ust be run as such. A gain, the bureaucrats will have a lot to say here because of their ability to m anipulate the factors th a t so often h u rt the agricultural person. 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B o x 6 5 3 Des Moines, Iowa 50303 1110 G entlem en: Please send me m ore inform a tio n and s p ecific data on S ynovex im plants. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36 GORDON RUSKELL A g Representative F irst N ational Bank Jackson, M inn. H E large supply of carry-over corn, plus the T prospect of a very good crop in this area have strengthened the interest in livestock feeding in this NEIL BERGENTHAL Vice President F irst National Bank St. Louis, Mo. O W /CA LF num bers continue to be reduced. For those anim als rem aining, the feed outlook appears plentiful with surprisingly lush pasture. A lthough crops were planted late, they are quickly catching up to previous averages. I t appears th a t feed costs will be steady; however, operating costs will continue to rise. M any grain producers will be resealing old crop and p u ttin g new crop under loan. The producer’s credit position with his lender has improved versus one year ago, b u t there will continue to be pressures in individual instances to reduce indebtedness. There continues to be a shift to semi-confinement and controlled environm ent hog facilities, which will have a long run effect on the hog cycle. Hopefully, the cattle producer will continue to m arket the finished product at lower weights rather than holding for price increases. The m ost im portant opportunity facing agricultural producers is to gain an understanding as to the m arketing alternatives of the m any commodities produced, and how to protect their end price. We are simply talking about price risk m anagem ent, b u t it is a very deep subject which takes considerable experience to comprehend. C MARION C. BONHAM Chairm an F irst N ational Bank Elm Creek, Nebr. L IM IT E D supply of replacem ent cattle, coupled w ith w hat appears to be an unlim ited supply of feed A indicates a strong m arket during the balance of 1978 and early 1979. Our biggest problem is the same as it has been for the p ast 10 years —increasing costs of equipm ent and supplies used by farm ers w ithout offsetting increases in farm produce prices. Digitized for estern FRASER N orthw Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 area. There seems to have been a substantial increase in construction of hog facilities this spring and summ er in our area, and I feel the softening in the hog m arket th a t has been predicted for the p a st two years may m aterialize in 1979. C attle feeders are going to be com peting for a lim ited supply of feeder cattle for the next several years and, spurred by the present low price of feed grains, m ost of the profits in the cattle industry are going to be bid to the cow-calf producer. Due to the investm ent involved in purchasing feeder cattle and providing facilities, we have not noticed much new interest in cattle feeding, b u t established operators indicate they plan to be operating closer to capacity than they have the p a st several years. The w orst problem facing agriculture, in my opinion, is the same as the w orst problem facing our whole economy - inflation. This is the underlying cause to a specific problem of agriculture and the banking industry — availability of loan funds. A griculture is particularity hard hit by inflation, being a somewhat unique industry in th a t the m arket price for its products goes down as well as up. ROBERT L. VER HEECKE A ssistan t Vice President Peoples N ational Bank Kewanee, 111. H E m ost im portant factors I see facing agriculture TPolitics in the years ahead are these: and governm ent program s. 1. Im ports and exports. 2. Set-aside. 3. Storage program . 4. Tax structure (income and estate). 5. Lack of political strength for representation. Inflation. Inaccurate publicity. J. MARVIN GARNER Executive Vice President N ational Pork Producers Council Des Moines, la. IT H corn appearing to be a t a price tied to W governm ent support level, much will depend on governm ent’s handling of th a t situation. Pork producers continue to be nervous and cautious on extended production increase. The emotion associated w ith a very un-predictable USD A and foreign trade folks has a tendency to over-ride any normal or practical economic guidelines of the past. Our m ost im portant problem? Re-positioning governm ent folks so they thoroughly study and research all facets of an area before they implement regulations th a t are causing un-due emotion th a t is, in turn, abruptly affecting economics of consumers as well as producers of this nation’s food stuffs. 37 C onserve high-priced energy, valuable tim e and feed value w ith GRAIN TREET. The amount of chemical energy in natural propane gas needed to dry a single ton of grain will preserve five tons when converted into this proven combination of propionic, acetic and benzoic acids. Because your grain stays on the farm, you’ll also eliminate the high cost of fuel consumed driving to and from dryers. In addition, you eliminate time wasted in long waits at the dryer, and combines or sheller-pickers work full time. But that’s just the beginning. By preserving, you don’t lose the moisture necessary to make all nutrients more digestible, more available. Tests prove that, in feed value, 25% moisture treated grain is equal to, and usually better than lower moisture grain on a pound-for-pound basis. In fact university studies showed an 8.8% improvement in weight gains and 10.2% improvement in feed efficiency over untreated grain. GRAIN TREET fresh proach grain rvation i s ', Kemin Industries, Inc. * en n n / X 2104 M aury St. • Box 70 • Telephone: 51 5 /2 6 6 -2 11 1 Des M oin es, Iow a 50301 • Telex 478439 MAIL THIS COUPON TODAY i FOR MORE \ INFORMATION I ON GRAIN TREET f Gentlemen: Please send complete information on Grain Treet. YOUR NAME TITLE BANK NAME ADDRESS__ C IT Y _______ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATE _ ZIP. N orthw estern Banker, S eptem b er 1978 38 DAN McKEETH Farm Loan M anager Jackson County Bank Black River Falls, M inn. ROM here it appears we will have lower prices from F sum m er to the end of 1978, followed by higher prices in 1979. There is plenty of feed. Hog enterprise expansion should continue into 1979. Beef cow expansion will begin, causing lower supply of retail beef in 1979. Consumer resistance to higher food prices will be the m ost im portant factor in agriculture in the next few years. LARRY EHLERT President Biozyme Enterprises St. Joseph, Mo. N MY O PIN IO N as of Jan u ary 1, 1979, we’ll have the greatest supply of feedstuffs (grain, forages and pastures) and ample subsoil m oisture th a t we’ve had per animal unit in the history of America. The only thing th a t could change this would be an early frost which could destroy the grain before proper m aturity. This supply of feedstuffs has accum ulated during a period of drought in m any p a rts of America and at a time of high num bers of cattle. Therefore, going into a weather cycle of ample rain and no drought, I feel we’ll continue to produce more grain and feedstuffs than the livestock consumes, so the supply will continue to build. W ith grain surpluses and high costs of production, I don’t foresee a bright future for the grain farmer, b u t I do see a reasonably good period for the livestock producer. Our m ost im portant problems ahead will be the federal governm ent’s cheap food policy, control of the federal governm ent by labor, and the D epartm ent of A griculture controlled by consumer activists. The continuing high cost of production will have to be m et by more efficient conversion of grain and roughages into m eat and milk. I C. N. FINSON President N ational Bank of Monticello Monticello, 111. H E R E is practically no livestock production in this land of corn and soybeans. We have had a slight T pickup in finishing of cattle b u t the activity is so slight th a t we do not claim any expertise. We view the m ost im portant factor in agricultural financing a t this tim e to be the availability of funds to meet the rapidly increasing demand for farm credit. We view also as a problem to our farm operators the need for greater m arketing skills and b etter m ethods of cost control. N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 EUGENE E. COOMBS Vice President Security Bank, N.A. Billings, M ont. E A N T IC IPA T E cattle prices to continue high for W two reasons: F irst, fewer num bers of cattle, and second, even w ith num bers down the situation will be compounded because of holdback of heifers and fewer female cattle to rebuild herds; consequently, fewer female cattle will be going into the feedlots. I t would seem th a t with this outlook, prices would hold strong for feeder cattle, fat cattle and replacem ent cattle. W ith an abundance of feed now, profit outlook for the next year for fat cattle looks good. Feed will not be as costly the next year as it was a couple of years ago when fat cattle prices fell and feed costs remained high, causing losses to feedlot operators. Supply of feeder cattle is tig h t and feeder cattle will command good prices. One danger may be th a t fat cattle will be fed to a much heavier weight and this total tonnage of beef would cause more supply than demand. This, coupled with a liberal governm ent policy of opening up the gates to more beef im portations, could dam pen the profit picture. More people in our area are going to more hogs, both farrowing operations and feeding operations, for two reasons: 1. Surplus of feed and 2. Profitable fat hog prices. No large, expensive confined operations are in the picture, b u t expansion of present num bers by present hog operators loom in the picture. These people feel th a t going to more hogs is the way to m arket grain at a greater profit. Who is going to be in agriculture? Same old story. The small farm er w ith inadequate cash flow to pay expenses will be going out, along with the operators who are not m anaging their places in a businesslike m anner. Therefore, we’ll see the continuation of a few farm units in the hands of the b etter m anagers who have adequate capital sources, either theirs or their ability to borrow. The m ost im portant problems, then, would have to be classified as a continuation of prices received and prices paid by food producers for inputs. The old cost-price squeeze—w hat will they be? Also im portant is the buying power of the consumers and their attitu d e tow ard food. Also, w hat will be the governm ent’s position on im ports of food? N aturally, m ost producers favor a very tig h t control of im ports, favoring U. S. producers vs foreign producers. 39 Dr. Wayne W. Dyer Janet Guthrie A rt A u th o r " Y o u r E rro n e o u s Z o n e s " 1st W om an " IN D Y 5 0 0 ” Racer TV . . .R a d io . . .A u th o r Joe Girard Linkletter " W o rld 's G re atest S alesm a n" Master o f Ceremonies: Bill Gove Mistress o f Ceremonies: Cindy Osborn Dr. Norman V. Peale Bob Richards A rt Holst " D e a n " o f P o sitive T h in k in g O ly m p ic D e c a th lo n C ham pion O u tsp o ke n N F L O ffic ia l You are invited to personally meet and hear America's top experts in the fields of sales, motivation and self development. Learn and profit from effective and proven self-help DATE: PLACE: T h u rs d a y , O c to b e r 1 9 , Tickets St. 1 9 7 8 St. Available D EPT. at TIME: Paul C ivic C enter, Paul, M in n . All Daytons' techniques. Invest one day to improve the rest of your life. Bring your associates, friends and fam ily. Plan to attend this all day, super-seminar right now. Ticket Doors open a t Program : 1 2 :4 5 Offices/the Civic 1 1 :3 0 A M / to 9 :3 0 P M Center/or by FEE: PHONE: $ 2 0 . . .$ 1 5 . . .$ 1 0 (6 1 2 ) Phone or Mail 4 8 3 -6 8 9 6 (Below): ORDER FORM (Please type or print) Please reserve_____ seats for me at □ $20 □ $15 □ $10 for the Twin Cities’ Dare to Succeed Rally. I understand all seats are reserved and available only on first-come, first-served basis. I have enclosed check, money order or charge card information below. NB-78 3585 NO. LEXINGTON AVE. ST. PAUL, MINN. 55112 □ My check or money order is enclosed Name___ □ Please charge to my credit card below: Company □ Master Charge_________________ Bank Number City ------ □ VISA—Bank Americard State_________________________ Z ip ----------- □ American Express Date__________________________ Tele. ( ) Signature____ :---------------------------------------— Account number (all digits) Exp. date https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 40 the flat increase in deposits, with m any banks running terribly short of money. O perating lines are a t an all time high and instead of cleaning up each year they seem to perpetuate and go on forever. Money m anagem ent is going to be highly im portant for the future of agriculture. ED H. SPETMAN, JR. President Council Bluffs Savings Bank Council Bluffs, la. H E cattle and hog m arkets will be high priced both T in the fall of ’78 and early ’79. The reason is th a t the reduced num ber of cows, in our estim ation, has C. K. CHUCK PEDERSON Vice President Farm ers & M erchants S tate Bank Springfield, Minn. definitely caused a shortage and the demand for feeders will be greater than usual. The farm er feeder will be competing against the large feed lot operator who m ust keep his num bers up to make a profit. I think prices also depend on the crops, which at this point look like they are going to be fantastic. We feel grain prices will fall off. And, if you have $1.75 corn, the only way th a t these people can make money is through livestock; therefore, you are going to see a large increase in the price of cattle because of demand. If corn stays at $2.25 to $2.50 I think there will be a lot less in demand. Hogs have been very steady and very good so far as profit is concerned, b u t we are certainly getting over-populated w ith hog raisers in our area. I t has become a su b stitu te for cattle feeding. I hope th a t the people in agriculture will rem ember the p ast and analyze the situation rather than go out and buy ju st to be buying. I think the m ost im portant factor or problem facing agriculture in the next few years is the inflationary cost of operation and the narrowing of the profit gap. Also, F E E L one of the m ost im portant factors which will Igovernm influence the cattle and hog situation will be ent intervention or controls. It is interesting to note how quickly the governm ent steps in when livestock prices s ta rt going up. I t would seem th a t the consuming public m ust realize th a t they will have to pay the price for livestock products when they are scarce as well as enjoy the low prices when there is an over abundance. I would suggest th a t producers have the right to be upset when outside factors attem p t to control the prices only when prices are going up and then let supply and demand control prices when it is going down. Cost of production and a decent profit are needed by both the livestock raiser and feeder. We could see $10 per cwt. more for fat cattle if the m arket was left alone, and possibly $5 per cwt. for hogs. It would seem th a t with cheaper feed prices we will EV ERA L respondents to the S survey who subm itted their price predictions b u t did not identify Rumor Has It... them selves by name or bank also made the following comments: “ So much depends on our general economy —inflation and unem ploy m ent. Cheap corn this fall could cause ridiculous feeder prices.’’ *** the Hereford and Angus influence is superior. Fact Is... the Shorthorn influence is a more profitable heef factory. The SHORTHORN Breed of cattle is proving through research that many of it’s “ bred in” characteristics are the true profit builders in a cow calf program & the feedlot. The top rate of gain at lo w a B ullT estS tationfora 140 day period was 4.20. The American Shorthorn Assn. hasevaluatedover600 steers in the sire evaluation program and found that at 14 months of age — 80% will grade choice or better with an average yield grade 3 or better. Missouri Bull Test records indicate Shorthorn s u p e rio rity in gains and selling prices — reporting the top bull at 1185 lbs. at 365 days commanding a price of $3500.00. SHORTHORN females display crossing ability in a major research program involving 540 females at Lacomb, Alberta research station. Shorthorn, Angus, and Hereford cows were mated to Charoláis, Limousin and Simmental bulls. Sire Dam C haroláis — S horthorn Angus H ereford S horthorn H ereford Angus S horthorn Angus H ereford Sim m ental — Lim ousin — 200 day Adj. weaning wt. M&F Average 423 399 323 435 422 417 lbs. lbs. lbs. lbs. lbs. lbs. 408 lbs. 390 lbs. 389 lbs. The superiority of Shorthorn genetics in a crossing program is unquestionable and facts continue to prove that the Shorthorn influence can increase profits. Stan Melroe, Cogswell, ND reports topping Fargo market with a load of Shorthorn steers weighing 1134 lbs. For Details Write A M ER IC A N SH O R T H O R N A S S O C IA T IO N 8288 Hascall St. N orthw Banker, S eptem b er Digitized for estern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Omaha, Nebraska 68124 “ The decrease in num bers of cattle th a t calved this spring should make for a more stable price this fall and next year. H igher prices of beef in the superm arkets have not slackened the sale of processed beef. The one item th a t could h urt the price of red m eat is if governm ent encourages the im ports of red m eat or interferes with prices if they believe they are getting too high and try to control the pricing of red m eat.’’ *** “ W hat will happen to cattle is anybody’s guess, b u t we are looking for a stronger m arket. Calf contracts are startin g to pick up, with some contracts reported as high as $68. Think hogs m ay soften som e.’’ ‘Studies b y B a n k B u ild in g forecast e p o ten tial gro w th o f our n ew ban ! its size, th e construction tim etable an d th e cost**.” “Bank Building Corporation is known for assuming full responsibility for the full project, and that was a major reason for selecting them. Another important factor was a guaranteed cost factor as well as a guarantee on the job itself. “Prior to any design and construction contracts, they did a major feasibility study. The completed report included short- and long-term space, personnel and equipment requirements. “Our new 37,000 square-foot bank was finished substantially below our anticipated figure and within the Daman Bowersock, President Merchants National Bank Fort Smith, Arkansas time schedule, despite area labor problems. When the detailed building resolution was signed, it was predicted that our investment in a new building would stimulate our growth by now to $7 5 million . . . instead Merchants National is currently at $96 million. “When any of our banker friends ask advice about building, I emphasize the critical importance of having the best possible professional assistance. With a minimum of input from us, Bank Building determined what we wanted, took over and created for us a beautiful and work-efficient bank.’ “♦ ♦ ♦ an d w h en it w as fin ish ed , w e w ere on tim e an d w ith in budget our gro w th is w e ll ah ead o f projections.” N W -9 7 8 Bank Building Corporation 1130 Hampton Ave. St. Louis, MO 63139 Telephone: (314) 647-3800 Bank Building N y Corporation W e’ll build you a business. P lease send inform ation about how you can help build m y business. Name Title _ F irm __ Address iis, W a s h in g to n , D .C .; H a r tf o r d , C o n n .; C h ic a g o , A tla n ta , D a lla s , D e n v e r , S a n F r a n c is c o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 see heavier m arket cattle and hogs in the year ahead. This, coupled w ith the possibility of controls, will probably hold prices quite close to their present level. The greatest problem I see is cash flow adequate to cover cost of production. W ith the present farm program , which appears to encourage storage facility construction and grain sealing, we are keeping the price at a level th a t will not cover costs and this will mean more borrowing and carryover of debt. I can already see this loan dem and m oving upw ard and this will definitely create problems for rural banks to meet the needs of their custom ers. For the farm ers it will mean operating at a loss in hopes of recapturing this in gain at a later date - not a very pleasant outlook for the grain producer. GARY C. HUFF President Bank of Sheridan Sheridan, M ont. NOT estim ate the price on yearlings because I IestimDID feel this is a big question m ark. I believe m ost of our ates on yearling num bers are incorrect (too high) and if this is the case it will result in an even sharper price increase for calves and fat cattle. ROGER L. W EISS President Commercial N ational Bank A insw orth, Nebr. ARLY indications are th a t feeder cattle will be sel ling high in relation to fat cattle. Poor corn price prospects will tend to keep prices high. An early frost would cause feeder cattle to get very high. E EDWARD J. LEAHY President N orthw estern S tate Bank Orange City, la. T H E Sioux County area we’re finding th a t the num bers are about on par with those on feed IlastNcattle year. There is a slight build up in hogs on feed at this time over the same time a year ago. I t would appear th a t we will see some m arket weakness in the A ugust and Septem ber m onths due to the fact th a t the bulk of the calves p u t on feed last fall will be startin g to go to m arket at this tim e. A fter this group of cattle are sold, it would appear th a t the cattle cycle is such th a t we will see m oderately higher prices next year and possibly for the next two or three years as far as fat cattle are concerned. However, the cattle feeders will have to be cautious on buying replacem ent cattle as the lower num bers available will drive the price up to higher levels th an we have seen in the past. The feed situation in our area is going to be excellent this year compared to w hat it has been over the last four years. W e’ve had excellent rains and our corn will no doubt be a record breaker. This will certainly help our livestock people in order to keep their cost of grain lower than w hat it has been in the p ast several years. N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 I t would seem extremely im portant th a t the livestock feeder, w hether he be a cattle feeder or hog feeder, have his operation fine tuned so he will be able to take advantage of any rises in the m arkets. This m ay mean he will have to use the futures m arket to settle ahead of the actual m arketing tim e. If the livestock feeder has a logical program , no doubt he will have no problem getting the funds to finance the m argin money. In the p ast our agriculture producers have been able to meet the rising costs of production by applying more technology in the way of higher yielding hybrids, insecticides, herbicides, higher fertility levels, minimal tilage, and the use of larger equipm ent w ith which higher savings could be attained. However, at the present tim e, we are seeing not only the cost of production increasing, b u t the cost of the land has risen dram atically as well as the cost of the equipm ent, and it appears we do not have the option of tightening our belt once again in order to overcome these higher costs. The inflation, of course, in land values has alm ost eliminated m any young farm ers who in the past did have the option of m aking farm ing a lifetime career. However, with the cost of land at the present time it would appear very few of these young people will be able to get into agriculture unless they have someone in their family to lend them substantial backing. I t appears th a t we are heading for larger farm units over the next several years. However, for these larger units to be economically efficient they will have to use futures m arket and take advantage of m arket level increases so they will be able to stay in operation over the long run. C. R. HILDERBRAND President F irst National Bank Ogallala, Nebr. UR total supply of cattle is down. I t could be th a t calves and yearlings will be down 20% from this O time last year. The rancher producer for the p ast five years has not been able to hold his own. The return has not been sufficient to handle the cost of his operation. The cost of grass has increased and, in turn, some have changed their operation to a yearling program , hoping this will work better because they could carry more num bers on the same acres. A lthough this has not been a big practice, it does tend to reduce cow and calf num bers. Also, there were farm ers and ranchers who have backgrounded cattle in the p ast who did not buy cattle last fall and winter because the prospects of breaking even looked very bleak. Our local commission barn has commented th a t the normal run for late 1978 will be short. If this is true in other areas, as I suspect it is, this situation could indicate higher prices this fall. Our hay crop will be sufficient for this winter, not because of an abundance of rain b u t more because of some carryover from 1977. The feed in our area is abundant. All the corn looks good. There should be more silage th an a year ago in addition to all other rough feed. In p art, this will be due to the farm program s. W ith prices down to less than $2.00 locally LIVESTOCK OUTLOOK . . ! (Turn to page 104, please) 43 W hy banks suggested iE tn a Money for cash flow in concrete and a buy-out in foods. A concrete company needed money to buy more trucks and to upgrade its plant. The company’s bank, unable to extend the credit line any further, suggested the solution: /Etna MoneySMsecured by plant and equipment. Result? The company bought new trucks, improved its plant and increased its sales. And the bank kept a good depositor. The management of a specialty food company had an opportunity to buy out the owner. They turned to a bank for money. But the total required was beyond the bank’s capacity. Solution? /Etna Money. Participating with the bank, we created a package consisting of an Intermediate Term Loan to finance the acquisition, plus a line of revolving credit to provide sufficient cash to meet working capital needs. Result? A profitable buy-out, and a smooth transition for the new owners. And a profitable customer for the bank. /Etna Money. It’s flexible and quickly available for your customers. It’s a workable alternative for you. Call us. You get action with /Etna because our business is /Etna Business Credit, Inc. to help your business. ■ One of the /ETNA LIFE <5*. CA SUA LTY companies Although certain identifying facts have been changed to protect client confidentiality, these are authentic examples of ¿Etna M oney at work. 530 North W ater Street, Milwaukee, W1 53201 (414) 272-3102 -1717 Cargill Building, Minneapolis, MN 55402 (612) 339-2222 • One Post Street, San Francisco, CA 94104 (415) 956-4373 ©/Etna Business Credit, Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 44 The Norwegian Red ...breeding for better profit FRED, cham pio n N o rw egian Red b ull, is owned by W o rley Farm s, A tw o o d , Kan. He was calved 8 /2 7 /7 6 at 95 pounds. In O cto ber, 1977, he w as judged by Kansas S tate University Bull Test to be the top gaining pureblood bull, w ith 4 .0 6 lbs. average daily gain. Fred had 3.51 pounds per day of age, had 756 pounds adjusted w eigh t at 205 days, 1327 pounds at 365 days and 1436 pounds final test w e ig h t, m aking it heaviest of all bulls on the test. A N orthw estern B anker Interview with RONALD R. HAGELMAN, JR. President NORED Corporation Adair, la. OTTOM L IN E performance is the accepted m easure th a t tells a banker w hether his custom er or B prospective borrower is m anaging an efficient, profitable business. Using th a t norm, Ron H agelm an becomes eloquently enthusiastic about the economic and genetic potential of the Norwegian Red breed for American cattle breeders and feeders. W ith proven performance records in hand from Norway, as well as from his own purebred herd on his farm at Adair, l a . , the 29-year old president of the NORED Corporation comm ents admiringly but analytically about his Norwegian Reds: “W hat m akes the Norwegian Reds different is th a t we are the first new breed of the 20th century. The Norwegians have developed this breed in the p ast 40 years out of economic necessity. In a nation where only 3% of the land is arable, farm ers not only feed the 17 million people in their country b u t also export m eat and dairy products. Norwegian farm ers have the best dairy records in the European Common M arket today. A t the base of all this is the Norwegian Red breed.” M eticulous, authenticated records m aintained by the Norwegian M inistry of A griculture give a clear picture of the vital facts on these cattle, M r. H agelm an states. “ The basic character tra its selected and bred over a 40-year period are: great length of body and rum p, small calving size (rated second only to Jersey by the American Breeders Service), good m othering ability, outstanding fertility, excellent weight gain, exceptional feed conversion on high roughage, and modern day carcass characteristics.” N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Resource Limitation Spurs Search In discussing the reasons for the im porting of “ exotic” breeds to the U nited S tates in the p ast two decades, Mr. H agelm an pursues a them e th a t is stressed with increasing frequency by professional farm ers, educators and ag conservationists. “ W hy have we im ported 40 exotic breeds in the past 20 or so years?” he asks. “ Originally, it was to produce bigger, better and more beef w ith resulting profit, a t a time when the emphasis was on the need for such expansion to feed more people. However, there is a growing awareness among cattle people th a t we are dealing with a finite resource. We used to think in term s of expanding and planting more, bu t we realize now we have lim itations. There is only so much land and w ater and at some point in tim e we m ust come to grips w ith this concept. “ Good breeding m eans you harvest more from the same num bers or less, and on the same lim ited resources. Europe came to this conceptual view of resources 20 years ago. Their nations recognized the lim itations of land, w ater and other resources and p u t more into research to overcome these deficiencies. They knew they needed more production from fixed param eters. T h a t’s why their breeds are better and why we’ve brought them into the U nited States. “We m ust compete genetically with Europeans. More work needs to be done w ith progeny and sire analysis, as has been done in Europe. W ith the selective breeding th a t has taken place in cattle, for example, Europeans can have smaller herds and better breeds.” Norway’s Breeding Experiment Norway, Mr. Hagelm an recalls, was no exception to the trend am ong European countries to upgrade livestock and all agricultural procedures. “ Their Socialist governm ent, through a system of ag coops, formed the Norwegian Red C attle Association in 1935 with a desire to improve both beef and milk production out of economic necessity. They began developing the breed in the late 1930s by consolidating all the existing vi * breeds in Norway. Breeding was strictly controlled and more th an 90% of the breeds in Norway were included in the background of the Norwegian Red. As a result, they developed a breed to operate under extreme adverse geographic and economic circum stances. They not only perform well in the colder regions of Norway, b u t ad ju st to even the torrid climate of equatorial countries such as M adagascar, where a num ber of Norwegian Reds have been exported.” T hroughout all this, M r. H agelm an emphasizes, g o v e rn m e n t s u b s id ie s m ad e su c h d e v e lo p m e n t possible, whereas private capital which he prefers, for the m ost p a rt has done the job in the U nited States. M ajor developm ent of the Norwegian Red breed was delayed because of the onslaught of World W ar II in the late 1930s in Europe. Regaining their m om entum in the late 1940s, Norwegian breeders formed a precise m ethod for cross-breeding and keeping records on every anim al. The result now is th a t through a system of selective breeding and bull testing, no bulls are kept alive after they reach 18 m onths. By th a t tim e they have had their semen taken regularly, after which it has been frozen in artificial insem ination vials, catalogued and stored. By meticulous record-keeping on a com puter, the results from each bull are followed. ‘‘W hen all the results are in from reports of all offspring of cows im pregnated by these bu lls,” Mr. H agelm an said, ‘‘the Ag M inistry nam es the Bull of the Year. All other semen is destroyed and th a t bull’s semen is used, while testing w ith new generations continues to select for future genetic developm ent.” Results Show High Performance The result has been animals of great length. In fact, their extra long, lean, lightw eight bodies at birth give rem arkable calving ease and survival. Cows furnish calves w ith an extrem ely high weaning weight for weaning percentages of 60 to 70%, indicating the calf weight a t weaning as a percentage of the cow’s weight. M r. H agelm an points to weight gains of 3.69# average daily gain last year in the Iowa Beef Carcass Classic and 3.65# average daily gain in the M ontana Steer F utu rity last year. On carcass yields, he noted, 90% half-blood y. steers graded choice with an average yield grade of 2.5, and a t the Iowa S tate M eat Lab in 1977 they yielded 67% to 69% retail cuts. A key factor for breeders and feeders in Norway is the anim al’s exceptional feed conversion on high roughage. ‘‘C attle are the only anim als th a t can convert roughage to m eat and m ilk,” M r. H agelm an notes, ‘‘and the unusual length of the Red’s body allows it to do this m uch better than other cattle. It can consume much more roughage for conversion and utilize less corn and still produce more m eat th an the o th ers.” To emphasize this, he recalls from his visit to Norway last year th a t ag officials told him ‘‘a t the end of W orld W ar II we had 780,000 cows in Norway. Now, we have 350,000, b u t m eat production is up, giving us a 50% increase in efficiency.” The officials also told him th a t all breeding in Norway for the Norwegian Reds is through artificial insem ination. ‘‘In fa c t,” he stresses, this is 100%, and to breed otherwise is illegal. Norway also breeds 65% of its swine through A .I., and has had sim ilar breed program s for a superior swine breed — L andrace.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45 Private Capital Used in U .S. Referring to the economics of cattle breeding and feeding in America, M r. H agelm an says, ‘‘W e’ve become more professional, more scientific in developing our own breeds and the only way we can do it is w ith outside capital, and th a t requires incentive. The only way to assure developm ent is through genetics, which perm its scientific prediction. We need people like doctors, dentists, lawyers, businessm en who have capital to invest. W ithout them we couldn’t make progress. ‘‘This capital should be protected by tax breaks. O ther nations subsidize this research, so if private capital underw rites the research here the tax breaks are needed to give incentive for this assistance. So, we m ust bear in mind those tax deductions are there for a Ron Hagelman d isp lays N o rw egian Red cow and calf at his Adair, la ., farm . purpose—to breed better genetic stock th a t will aid the cattlem an to produce a better product. ‘‘T h a t’s why the NORED Corporation is made up of both cattlem en and businessm en, for they recognize the potential of superior genetic performance, and we’ve invested the money it takes to run this kind of operation to let people know we have som ething worthwhile to offer. ‘‘The cattlem an m ust decide w hat type of animals he w ants, then make a selection of breeding stock to achieve th a t. Cattlem en definitely are becoming more professional businessm en. The professionals are the ones who w eathered the storm of the last four years in our industry. I t w asn’t ju st cows who were culled in those four years!” Farming Was Youthful Ambition Adherence to this pursuit of professionalism requires detailed record keeping, M r. H agelm an states emphatically. He knows. He has done it himself and continues to do so on his farm one and one-half miles east of A dair, la ., where he owns and leases 1,000 acres. He runs 300 cows on the farm — 50 of them pureblood Norwegian Reds from im ported stock; 50 of th e m p e rc e n ta g e fem a le s, a n d th e o th e r 200 commercial cows. An interesting chain of events brought this city born NORWEGIAN RED . . . (Turn to page 62, please) N orthw estern Banker, S eptem b er 1978 46 A utom atic Transfer A ccounts? Are you ready for W ritten Especially for T he N orthw estern B anker By L. B IF F M OTLEY Executive Vice President W hittle, Raddon, Motley & H anks Financial M arketing Group Chicago, 111. IT H the introductory date for the A utom atic W Transfer Plan rapidly approaching, m any banks around the country are locked up in their laboratories or attending seminars on the subject of how to structure, price, and prom ote the autom atic transfer from savings to checking. The schemes which bankers have dreamed up have ranged from the simple to the complex and there are about as m any different autom atic transfer products on the draw ing boards as there are clever bank m arketing people willing to scratch their heads on the subject. The purpose of this article is to articulate some factors for you to consider in introducing your A utom atic Transfer Plan. While much of the information contained herein is the opinion of our firm, it is based upon research findings which we have obtained as a result of doing pricing and m arketing research in 30 m arkets on the subject of the autom atic transfer during the two year period when this product was being studied by the Fed. Market Research Findings As you consider the five points reviewed later in this article, it is im portant to keep in m ind th a t they are based upon the following four m arket research findings. These findings tend to be common in all m arkets where there is more th an one type of financial institution (i.e., both commercial banks and th rift institutions). • Low Cross-Selling — M ost commercial banks will find th a t only 50 to 55% of their checking account custom ers have a savings account w ith them and, furtherm ore, these savings acounts tend to be fairly low, w ith balances in the $800 to $1,200 range. N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Savings and Loans Are Popular — M arket research in these same m arkets shows th a t it is typical to find in excess of 90% of the households do business w ith a savings and loan in the form of a regular savings account. • Larger Account at Savings and Loan — Looking at published inform ation made available both by the Federal Reserve System in its functional cost analysis and the Federal Home Loan Bank Board, it is clear to see th a t the average savings account is larger a t the savings and loan than at the commercial bank. • A Person’s Primary Bank Account Relationship Is Linked to Checking — Consumer research shows th a t while families tend to do business w ith an average of 2.4 financial institutions, typically they consider the institution offering their checking account to be their prim ary or main financial institution. Strategic Points Outlined Taking this inform ation together, we can see a num ber of strategic points. F irst, while the commercial banking industry tends to “ own the relationship” by virtue of the transaction convenience of its checking account, the th rift industry appears to own the balances; at least insofar as retail balances are concerned. Second, it is quite clear th a t it is the intent of the regulators to continue the blurring of the distinction between th rifts and banks and th a t the battleground for the im pending war between these institutions will be the personal interest-bearing account. M any commercial bankers w ant to see an equalization of Reg Q differences on savings balances, 47 while m any savings bankers w ant to see the day wher they are allowed to offer interest-bearing checking accounts. The autom atic transfer from savings to checking enters into this picture in a strategic sense insofar as the b attle between banks and th rifts is concerned. In a theoretical sense, the autom atic transfer is a functional link between the commercial banker’s m ain strength (i.e., transaction convenience) and the battleground or goal which both banks and savings and loans are pursuing (i.e., the savings account). Commercial banks w ant to convince their custom ers to move savings balances in their direction; and savings bankers w ant to convince their custom ers to keep them there. If and when the autom atic transfer is perm itted, it is quite clear th a t there will be a trem endous am ount of pressure for the next “ shoe to d ro p .” A nd, indeed, it is highly probable th a t within a two year period following the introduction of autom atic transfers, thrift institutions will be allowed to offer third-party paym ent products which pay interest. Principal Goal — Attract Savings In view of this inform ation, we feel th a t it is quite clear th a t the principal m arketing goal of a commercial bank within the next two year period should be to a ttra c t savings balances. A utom atic transfer from savings to checking can be a very powerful feature of a product to achieve this goal. Interestingly enough, CitiBank in New York already has begun implem enting this strateg y through its autom atic teller machines. A pparently, they have given up trying to position the ATM s as strictly an extended convenience and now are positioning the ATM s as a m echanism , in effect to earn interest on checking. In its current advertising cam paign, CitiBank is prom oting the ATM system and its convenience as a mechanism for custom ers to transfer funds quickly from savings to checking. The point is simply this. As you consider your autom atic transfer options, keep firmly in mind this strategy: The autom atic transfer should be positioned as an additional convenience enhancem ent to a person’s checking account, and one which requires th a t person also to have a savings account with your bank. Now there are two ways by which consumers can bring about this particular circum stance. The first is to transfer balances in his checking to his savings account. This is not particularly good for the bank. The second is to transfer savings balances from the th rift to your bank. This is good for the bank and should be your m arketing goal. In the construction of your autom atic transfer service, and in the education of your consumers, you should emphasize the sm artness of this latter alternative rather th an the prior alternative. To do this will require th a t you re-configure your basic checking account pricing mechanism to reflect savings balances as well as checking balances. L e t’s review some of the other factors you should consider: I. A New Product or a New Feature One of the basic decisions you’ll have to make about the autom atic transfer is w hether you should position it as a totally new product or simply as a new feature of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis your regular checking account. If you were to position it as a new product you would suggest th a t through the autom atic transfer mechanism a consumer now can earn interest on more of his dollars th an he could before. In other words, you are suggesting th a t to a greater or lesser degree the consumer can earn interest on some or all of his “ transaction dollars,” which prior to the autom atic transfer, paid no interest. This is certainly a new product. The other alternative to m arketing the autom atic transfer is to suggest th a t it is an “ overdraft protection” feature of your regular checking account. In other words, you can suggest th a t by having a savings account as well as a checking account w ith your bank, custom ers needn’t worry about accidentally overdrawing their checking account since you’ll cover any overdrafts with an autom atic transfer from savings. It is our view th a t you should introduce a new product but th a t the product be new by virtue of the m anner in which it is priced rather than exclusively as a result of the autom atic transfer. M arket research in v a rio u s m a rk e ts a ro u n d th e c o u n try re v e a ls consistently th a t more people are excited about getting “ free checking” by keeping a savings account than they are to any anticipated benefits of autom atically transferring funds from savings to checking. We would suggest a new product which links checking and savings together by virtue of its pricing, and th a t the autom atic transfer be positioned as an optional feature to this “ new balance oriented” package. As you consider this “ savings/checking package” there are a num ber of do’s and don’ts you should consider: Do’s • Offer more than one way to transfer from savings to checking. While the current focus around the country is on autom atic transfers, don’t forget th a t m any people are interested in telephone transfers, debit card transfers and other ways of transferring funds from savings to checking. • M ake the autom atic transfer optional. Some people will w ant the autom atic transfer; others will not. Do not sacrifice savings dollars because some of your m arket will be uninterested in the autom atic transfer option. Price the account around checking activity to encourage higher balances; be indifferent to w hether those balances are in checking or savings, although the savings N orthw estern Banker, S eptem b er 1978 48 $300 M¡n=$2.00/ Over 300-No Charge — I---------- 1---------------- 1----------- 1------------------- — TODAY 3 TO 6 MONTHS 6 MONTHS TO ONE YEAR ONE YEAR THIS CHART is cited as an e xam p le of a 12-m on th price adjusting plan to bring to g e th e r checking and savings balances in a m anner w hich encourages h igher balances and extracts fees for low balances. It brings the account from the form er $100 m in im u m to $1,000 m in im u m in savings for free checking, or the alternatives listed of $4, $3 or $2 for m in im u m checking balances. This exam p le is cited in “ H ow to S ig n ific an tly Increase Y our Service C harge In c o m e ,” co-auth ored by Mr. M otley; Alex S h e s h u n o ff, pres, of S h eshu no ff & C o m p an y, In c., A u stin , T e x ., and Robert Penquite & A sso ciates, In c., Dallas, b a la n c e s m u s t be s ig n ific a n tly la rg e r to com pensate you. • Charge for the transfer. The actual price you place in the transfer will depend, of course, upon the deg ree of c o m p e titio n you are c u rre n tly experiencing from your local thrifts, b u t do not offer this service free. Don’ts • Do not force people to make deposits into their savings account. M any people will w ant to m aintain the psychological integrity of their checking account and their savings account. Do not force people into a transaction account which pays interest if they don’t w ant it. • Do not move people’s balances around w ithout their knowledge. One m ajor software supplier is considering an autom atic transfer program th a t would level out people’s checking and savings balances according to a predeterm ined formula and, if custom ers neglected to deposit directly into checking, the bank m ight autom atically transfer funds from checking to savings to achieve these preestablished targ ets. This will result in a tre m e n d o u s a m o u n t of co n fu sio n to y o u r custom ers. Do not consider such a plan. II. What Should Be Your Goal In Marketing The Automatic Transfer? Keep in m ind th a t your principal focus in developing and m arketing this product is to take dollars away from your local th rift institutions. If you have very aggressive th rift institutions, the pricing, packaging, and prom oting of the autom atic transfer and its overriding product should be very aggressive. If you have weak local th rift competition, make sure th a t your principal goal is to recover all costs associated w ith the autom atic transfer. III. Don’t Be Afraid If Your Pricing Is Higher Than Your Bank Competition Price your new account so th a t it makes money for N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis your bank, based on either a person’s balances or the fees they pay. Be sure this pricing insulates your best custom ers from the potential price com petition which your smaller com petitors m ay engage in. In other words, give away a free checking account to all custom ers who m aintain an attractive savings account with you, b u t make those who do not m aintain balances at your institution pay a com pensatory fee. And don’t be afraid if this fee is higher than th a t charged by your local bank com petition since, if you lose these custom ers, it will only serve to improve your bottom line. IV. Don’t Forget The “Blue Collar” Market M any of the “ autom atic transfer products’’ being discussed by bankers throughout the country are designed to appeal prim arily to the “ sharpees.” In fact, some of the pricing m echanism s and operating requirem ents are such a radical departure from current banking behavior th a t only a “ H arvard M BA ’’ would find them appealing. Typically, these “ sharpees’’ are not your b ank’s m ost profitable custom ers. You’ll find they are inclined to have highly active accounts with only m oderate balances. You’ll also find th a t they are the first ones to move any tim e deposits to the money m arket when interest rates tu rn against your bank and are generally a difficult group to make money from. On the other hand, m arket research reveals th a t the middle aged “ blue collar’’ m arket can be very attractive to a bank. Typically, these people m aintain fairly large balances in regular savings accounts. They are more interested in “ liquidity’’ th an they are in m aximum yield. They tend to be more conservative, more fundam ental in their view of banking and finance, and not always the first to respond to “ sophisticated’’ new ways of doing things. However, this is precisely the same m arket which does respond extremely well to “ premium offerings.’’ These people reason th a t if they can get a better deal on a piece of merchandise by moving their savings account, “why not?’’ I t is with this segm ent of the m arket in mind th a t we suggest you structure your new product broadly enough to find a level of interest w ith this m arket. V. Give People A Balance Fee Trade-Off In m ost banking m arkets there are “ funds u sers’’ and “ funds providers” from the viewpoint of a bank. F u n d s u s e rs w ould p re fe r to p a y for th e ir deposit-related services in fees since they often tim es don’t have necessary balances. Funds providers, on the other hand, typically would prefer to pay for their services w ith their balances. Indeed, m any of these people feel offended if th e y ’re asked to pay a fee. They consider them selves to be “ good custom ers” by virtue of their balances and, as a result, do not expect to pay fees. S tructure your product so th a t pricing is indifferent between balances and fees. Conclusion These are some factors to keep in mind as you consider your options in introducing an autom atic transfer plan. U ndoubtedly, you will be approached by m any software suppliers as well as people like us who are interested in serving your m arketing needs. Our final word of advice to you is take a bottom line point of view and structure your product to a ttrac t the m ost profitable kinds of custom ers for your bank. □ 49 In c o r r e s p o n d e n t b a n k in g s e r v i c e s , w e ’r e t h e s p e c ia lis t s . Here’s how First Chicago, a $21 billion banking corporation, can help you serve your customers more productively. You know what your correspondent banking needs are. You also know what services your present correspondent bank provides. Check this list of First Chicago's com prehensive services. See if there aren't many ways we can work together more productively. Then call a correspondent banker at First Chicago, (312) 732-4101, or write us. DATA PROCESSING Point-of-Sale Techniques Bank Accounting Services Bank Information Systems Electronic Funds Transfers CREDIT FACILITIES Holding Company Lines of Credit Participations: Upstream and Downstream Intermediate Term Credit Liquidity Lines of Credit Commercial Finance Services: Inventory and Receivable Financing Corporate Financing Advisory Services Leasing Activities and Analysis Credit Information Small Business Administration: Loan Counsel MANAGEMENT ASSISTANCE Loan Portfolio Review Techniques Economic Forecasting Profit Planning and Forecasting Marketing and Business Development Advice Personnel Assistance Operations Planning Organization Planning SPECIAL CORRESPONDENT SERVICES Annual Correspondent Conference Account Referrals Mini-conferences and Workshops, Special Events Planning Record Retention and Reconstruction Cash Management Consulting: Collection, Concentration, Disbursement and Control Visual Aids: Slides and Closed Circuit TV Production TRUST BANKING Personal and Corporate Trust Services Trust Investment Advisory Services Monthly Investment Services Stock Transfer and Shareholders Services Dividend Reinvestment PERSONAL BANKING ASSISTANCE Bank Promotions YES Card’“ Visa® Savings Programs Bank-At-Work/Direct Deposit Program OPERATIONAL SERVICES Cash Letter Clearings: End-Point & Float Analyses Coin and Currency Collections Money Transfer Federal Reserve On-Line Settlement Securities Custody Security and Coupon Collection Payroll Accounting Student Loan Servicing INVESTMENTS Government Securities Municipals Federal Agency Securities Federal Funds Repurchase Agreements Commercial Paper Certificates of Deposit Treasury Tax and Loan Accounts Money Desk Reviews Portfolio Analysis Services INTERNATIONAL BANKING Worldwide Locations Merchant Banking Money Market Instruments Letters of Credit Foreign Exchange Transactions Transfers and Remittances Ex-Im Financing MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 7978 50 to certify bank lenders PILO T PROGRAM th a t would designate selected banks and bankers as certified lenders is expected A to be in operation by October 1 at the Small Business A d m in is tra tio n . U n d e r th e B a n k C e rtific a tio n Program , banks having good experience w ith SB A loans will be authorized to process, service and, to the extent possible, liquidate loans w ith a m inimum of SB A involvement. The program could cut handling of loan applications under this process by 10-12 days. A lthough SBA m ust make the final decision on a borrow er’s eligibility, as required by sta tu te , th a t process will be accelerated greatly by having the SBA use the originating b a n k ’s credit evaluation instead of reviewing the entire credit file compiled by the bank. Bank Responsibility The bank will be responsible for closing and servicing the loan, with SBA furnishing standard closing forms. M ost servicing functions m ay be performed by a bank w ithout prior consent of SBA, such as releasing collateral to a lim it of 20% of the original am ount of the loan, or the excess over the unpaid balance; releasing p e rs o n a l g u a r a n ty , an d a u th o riz in g a lte rn a tiv e paym ent plans, including deferment of paym ents. A certified lender will be encouraged to establish a departm ent specializing in SBA lending and m anaged by loan officers properly trained in SBA procedures. SBA suggests th a t the services of such a departm ent in a larger bank could be made available to correspondent banks to assist them in preparation of SBA loans. To learn more details of the program for m idwest banks, Robert M arshall, director of the office of program developm ent in SBA headquarters in W ashington, D .C ., was interviewed by the N orth w estern Banker. Program Director Comments Mr. M arshall, who is directly in charge of this program , commented on these latest developm ents in the Bank Certification Program : N orthw estern Banker, S ep te m b e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 “ We hope to get this program put together in Septem ber and s ta rt October 1, which is the beginning of our fiscal year. Initially, we’re going to pilot it with 10 to 20 banks which have been working closely with us and m ost of these are big banks. We don’t expect the pilot program to last too long. A ctually, we anticipate expanding it after three m onths, at which time we would aim at the balance of the less th an 700 banks which have 25 or more SBA loans with us. This probably would be accomplished in 1979. “ The goal of A dm inistrator A. Vernon W eaver then is to build the Bank Certification Program to a minimum of 2,000 banks over a period of two or more years. Any bank still m ay participate w ith the SBA in the same way loans now are being made. This program of certification is ju st on top of the usual SBA lending. In this regard, it is interesting to note th a t we have at least one loan with 10,000 banks in the United States now. “ To provide certification we will run a training program of two or three days using small groups of three or four banks w ith 15 people at the m ost. Following this there would be some brief training in a regional office so the individuals could become acquainted with our procedures. “ An interesting p a rt of this program is th a t we will certify individual bankers as well as banks. In each case, a two-year certificate would be issued and would be renewable. The individual certification will perm it a person who moves to a different bank to take th a t credential to the next job. This also would be helpful to us in dealing w ith the new bank employer. “ U nder this certification program , the bank does all the ground work and gives SBA a credit evaluation. We will review the credit evaluation in m aking the final SBA CERTIFICATION . . . (Turn to page 62, please) 51 SOME OF HARRY’S BEST IDEAS CONE FRON NANCY. He runs a growing company. She's an Account Exec for North western Bell. A nd w hether she's review ing opera tions in the plant or consulting in the bo ard room , she's one h ard w orking "problem solver." Able to dig into y o u r com pany, study it carefully and emerge with new ideas about how you can use com m unications to increase profits and efficiencies. Because only too often, business problems are really communication problems in disguise. We've got a "problem solver" for w hatever business you're in. Ready to go to w o rk fo r y o u . P h o n e a m em ber of our N orthw estern Bell A ccount Executive Team toll-free or mail the coupon. 1- 800 - 147-5454 (In Iowa call 1-800-532-1221) NB97Í1 I’m gam e. I’d like one of N orthw estern B ell’s I “problem-solvers” to study my company’s comI m unications system . Please phone and we'll | arrange a meeting. ■ I I ■ Name______ ______________________________ I Address___________________________________ _ | City ___________________________ _ j I State------ -------------------------------Zip___________ | ¡ Title_______________________________________ I | Type of Business_____________________________ I Telephone Number___________________________ I | | | i Mail to: Northwestern Bell, 100 South 19th Street, Suite 702, Capital Plaza, Omaha, Nebraska 68102. L----------------------------------------------------------------------------- J Northwestern Bell https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s tern Banker, S eptem b er 7978 J. M. WEBSTER Treasurer P. A. ENOS Secretary E. H. SMITH Vice Pres. R. I. SMITH President NABW Theme Is: “The Winning Game” J. M. HOLM OM EN bankers attending the 56th annual convention of the N ational Association of Bank W W omen Septem ber 24-27 in Las Vegas will examine the convention them e, “ The W inning G am e/S trategies for a Competitive E ra .” M eeting at C aesar’s Palace, the general session and workshop speakers will look at services, rules of the game, profitable m arkets and delivery of products. Presiding will be NABW President R uth I. Sm ith, president of the F irst S tate Bank in K ansas City, Kan. Serving w ith her as 1977-78 officers are: Vice President—E sth er H . Sm ith, vice president, Com merce Union Bank, Nashville, Tenn.; S ecretary— Patricia C. Enos, vice president, F irst N ational Bank, H untington, Ind., and T reasurer—Josephine M. W ebster, vice president and investm ent officer, American Fletcher N ational B ank & T ru st Co., Indianapolis, Ind. Chief staff officer a t NABW headquarters in Chicago is Executive Vice President Phyllis M. Haeger. The new slate of officers were certified by ballot in late A ugust and will be installed on the final day of the annual m eeting. E sther Sm ith will move up to the presidency for 1978-79. Josephine W ebster is slated to become the vice president/president elect. The nominees for secretary and treasurer are D orothy Rowland, senior vice president, Capital N ational Bank, A ustin, Tex., and B etty Crow, vice president, Commerce Bank, K ansas City, Mo. Regional vice presidents will assist by chairing workshops to be held throughout the convention. Those from the N o r t h w e s t e r n B a n k e r area are: Lake: Karen Thom son, vice president, St. Joseph Valley Bank, E lkhart, Ind. Midwest: Kaye F ulrath, assistan t vice president, M erchants N ational Bank, Cedar Rapids, la. North Central: Arlene Abler, assistan t vice president, N ational Exchange B ank & T rust Co., Fond du Lac, Wis. Northwest: Dolly Lotz, assistan t vice president, Idaho Bank & T ru st Co., Pocatello, Ida. N orthw Banker, S e p te m b e r Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 H. E. KOEHN A. H. MORIS Rocky Mountain: W inona Flower, vice president, Jackson S tate Bank, Jackson, Wyo. Three principal speakers have been announced. Keynoter will be Jeanne M. Holm, former special assistan t to the President for women and retired Air Force M ajor General, whose topic will be “ The Name of the Game for Professional W om en.’’ She will be followed by H ank E. Koehn, vice president, futures research unit, Security Pacific National Bank, Los Angeles, Cal. The final general session will feature NABW Educational Foundation consultant Alene H. M orris on “ M aking the Odds W ork for Y ou.’’ The convention program follows: All Day Afternoon Evening Morning Afternoon Sunday, September 24 R egistration. O rientation Sem inar (for incoming group chairm en). Gala “ H igh Rollers’’ Opening Reception w ith entertainm ent. Monday, September 25 Opening Ceremonies. “ The Name of the Game for the Professional W om an’’ — Jeanne M. Holm, M ajor General U .S. Air Force (retired). “ The F uture Begins in Three D ays’’ — H ank E. Koehn, vice president, futures research unit, Security Pacific National Bank, Los Angeles, Cal. “ Y ou a n d Y our B a n k : A F u tu re s W orksheet” — E ach participant will use a specially designed worksheet to help her process the ideas presented throughout the entire convention. Concurrent W orkshops: Form ing the Strategies for Your Bank. Processing Sessions — One-on-one rap NABW CONVENTION . . . (Turn to page 64, please) 53 They know something about money orders you should know. “Our money order business improved when Travelers Express took it over.” Joe Cole, Teller Supervisor, Northwestern National Bank of Minneapolis, Minneapolis, MN “We have been delighted with the public acceptance.. Bernice M. Smith, Vice President and Treasurer, Heritage Federal Savings and Loan, Daytona Beach, Florida “We recognize good service.” Douglas R. Smith, Chairman of the Board and Chief Executive Officer, National Savings and Trust Company, Washington, D.C. They know us. W e're Travelers Express. More and more financial institutions are turning to Travelers Express for money orders. Because much of our business involves transferring money electronically, millions of times a year, we have become extremely efficient at it. Easy-to-use forms and simplified reporting are also part of our story. We handle all the “backroom” operations. And, we do it less expensively than you can do it yourself! You should get to know us, too. Call toll free at 800-328-5678, or write, 5075 Wayzata Blvd., Minneapolis, MN 55416 Travelers Express A GREYHOUND https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~ - Cr COMPANY ■ N orthw estern Banker, S eptem b er 1978 54 WOMEN IN BANKING chance. The trick is to figure out w hether or not you are the lucky one.” He laughed, and finished seriously w ith, “ The real secret is to be prepared.” W ith those words, Carl Burrows, unknowingly, started a lady on her way to becoming a branch m anager. Ms. Mains joined the First National Bank o f Arizona in February of 1958 as a secretary. In 1961 she was appointed a note teller and later held positions of operations officer and assistant manager prior to her appointment as manager of the bank's Wellton Office in 1972. She has been a bank officer since 1965 and recently was named an assistant vice president. Below Ms. Mains tells what it is like to be a branch manager. H E N you move to the platform W you are more visible. I was even more visible at the tim e I became m anager because I was a woman. T h is led to som e in te r e s tin g reactions. There was some skepticism at first from the public. “ For heaven’s sake, e v ery o n e know s b a n k e rs a r e n ’t W O M E N , b a n k e rs are M E N .’’ M aybe t h a t’s why I tem porarily turned into a tourist attraction as revealed by this direct quote from one vacationer who stopped by my branch to cash a check. “ A woman banker! W ait till I get home and tell the folks about this. A telephone call would come in asking for the m anager. I would answer, and a cool voice would say, “ I a sk e d for th e m a n a g e r .” (Remember your reaction the first time you dialed the phone and a male voice answered, “ O perator’’?) B ut these were the exceptions. I really knew the public didn’t think about w hether I was a m an or woman anymore the day a custom er yelled at me in the same tone of voice he had always used w ith the previous m anagers. In a small town, custom ers are not bashful about calling you after hours. You sometimes feel as if you are on call 24 hours a day. The small town has an advantage though. You have pipelines to inform ation all through the comm unity. (Sometimes custom ers tell you more than you really w anted to know.) I t was fortunate th a t I had grown N orthw estern Banker, S ep te m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Learning Experience By MARY R. MAINS M anager W ellton Office F irst National Bank of Arizona up in this com m unity, and the people already knew me as a person. Their only adjustm ent was to me as a banker. Happily, they approved. A Challenge W hat is it like being a branch m anager from a w om an’s point of view? The same as from a m an’s point of view —very challenging and interesting. One of the things th a t pleases me m ost is th a t F irst National Bank had a woman m anager before the days of strong pressure groups and m ove m ents. I got to be a branch m anager because my superiors felt I had the potential m aterial to be a m anager. The decision was not based on w hether I was a m an or a woman. An enthusiastic, fascinating per son, “ a m an before his tim e” , gave me some advice 20 years ago. He said, “ In banking, the opportunity always comes along sooner or later. You m ight not feel you are ready when it comes, and you m ight have to make up your mind in a hurry whether or not you are going to take advantage of it. I t m ight only come knocking a t your door once. Then again, you m ight be one of the lucky ones who will get more th an one A dm ittedly, six years ago my potential needed some developing, and there were some gaps in my knowledge th a t had to be bridged very quickly. This was accomplished at th a t time w ith early m orning crash sessions in the branch, a lot of re a d in g a n d a lo t of a s k in g questions. In the evenings I took AIB courses and as they were scheduled, related seminars. I t all worked itself out, because I had a lot of guidance from others. I could make my decisions from a point of strength, because I had been assured of full support from my division office. The other m anagers in the area had said if they could help to pick up the phone and call. And when I did, the response was imm ediate and affirm ative. I was p art of the camaraderie. I t was good to be working w ith professionals. Today our training in all areas is approached from a different direction than it was even a few years ago. We are able to do this as society’s attitu d es and ideas have changed toward our industry. We were not trained as now. Em ployee’s goals were different. We had not tested our potentials. There was a partition in our m inds. This kept us (especially women) from even seeking the training or developing goals th a t would lead to m anagerial positions. Fifteen years ago my “ u ltim ate” goal was to become an operations officer. Ten years ago if I had been asked to make a list of courses I needed to take for future advance m ent in my career, I would have placed a course such as Analyzing Financial S tatem ents a t the bottom WOMEN IN BANKING . . . (Turn to page 64, please) 55 W hat’s m ost im portant in a correspondent relationship? Quality. When you evaluate a corre spondent bank, you look not only for specialized financial and operational expertise, but also for a high quality of service. That’s why throughout the country, bankers rely on The Northern Trust Bank. We offer a complete range of advanced banking programs, supported by a tradition of excellence that is unsurpassed. How can we serve you? At The Northern Trust, all correspondent services are designed with your needs in mind. And these services are constantly being improved to keep pace with the latest technology and regulations. A c c e le ra te d D ep o sit C ollection. To help your bank have more cash on hand, The Northern Trust accepts unsorted cash letters, offers late deadlines, and provides immediate availability on major financial centers throughout the country. B o n d a n d M oney M a rk e t S erv ices. You have complete, accurate market information with just one phone call. FOCUS™ Your bank’s trust investment officers have daily access to the research that our own portfolio managers use, weekly reports that can reduce their paperwork, and periodic seminars with top Northern Trust officers. S p e c ia l P ro je c t A ssista n c e. When you need help with operations analysis, float reduction, marketing, or other important projects, your Northern Trust calling officer and staff are available to assist you. They will put you in contact with other banking specialists who provide information and perspective for your special assignments. For a quality of corre spondent service that’s rare in banking today, contact the calling officer for your area at The Northern Trust Bank, 50 South La Salle Street, Chicago, Illinois 60675. Telephone (312) 630-6000. T he N orthern T ru st B an k Bring your financial future to us. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 56 Robert Morris Meeting Slated for Dallas OBERT M orris A ssociates has published the results of the seventh annual survey of loan c h a rg e -o ff ex p e rien c e of RM A member banks for the year ending December 31, 1977. The report for 1977 is divided into two sections. One provides figures for dom estic loans and the other for international loans. For the first tim e, the dom estic section provides gross and net c h a rg e -o ff s t a t is t ic s for sev en different types of lending. They are R direct real estate lending; loans to fin a n c ia l in s titu tio n s ; lo an s for purchasing or carrying securities; loans to farm ers; commercial and industrial loans; loans to individuals for household, family and other personal expenditures; and all other loans. (These loan categories parallel the 1977 Federal “ call” Reports of Condition, Schedule A - Loans section.) The report also presents gross and net charge-off statistics for the entire portfolio, arranged by bank asset Y our O m a h a Financial Life R egional R e p re se n tative. T h e key to unlocking increased p ro fits from y o u r in su ra n ce o p eratio n s. W ith th is key, you can o pen th e do o r to cred it in su ra n ce plans, m o rtg ag e p ro te c tio n p ro g ram s and b ank card coverages designed from your v iew p o in t . to o p e ra te in h a rm o n y w ith y o u r o p eratio n s, n o t in c o m p etitio n w ith them . O m a h a Financial Life's in su ra n ce p ro g ram s are d esigned to sell th em selv es — because th e y are c reated to fill a real need by helping to secure y o u r c u sto m er's financial w ell-being. P ro d u cts w hich have been conceived in th e tra d i tion of th e M u tu a l of O m ah a Fam ily of C om panies. O m a h a Financial Life's R egional R e p re s e n ta tives. T h e key to u n locking th e doo r to a w hole new p ro fit c e n te r in y o u r financial o p eratio n s. O rd e r y o u r key today! Call toll free (800) 328-1950 o r w rite to: O m a h a Financial Life In su ran ce C o m pany, 7800 M e tro P ark w ay , B loom in g to n , M N 55420. Stan Grout Omaha Financial g~\ Life Insurance Company A M u tilili u l N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Omii/id d a m p J in / size and Federal Reserve D istrict. In addition, high-loss industry ra n k in g s for 1977 h a v e been tabulated by bank asset size, Federal Reserve D istrict, and nationwide. Due to the expanded loan data base, the results of this year’s domestic study cannot be compared w ith statistics RMA has published in previous years. Domestic Section The statistics in the dom estic section are based on data contributed by 751 RM A m em b er b a n k s . Included are data from 87 of the country’s largest 100 banks. The participating banks reported to tal gross charge-offs of $1.95 billion, or .64 of 1% of the $305 billion of all loans outstanding. L oan rec o v e rie s to ta le d $399 million. After allowing for these recoveries, net charge-offs were $1.55 billion or .51 of 1 % of the to tal loans outstanding for the year. International Section The international section presents statistics gathered from 127 RMA member banks, 84 of which are among the country’s largest banking institutions. The participating banks reported average international loans and deposits outstanding during 1977 of $194 billion. Gross chargeoffs were reported to be $406 million, equal to .21 of 1% of the to tal portfolio, while total dollar recoveries of $63 million resulted in net charge-offs equal to .18 of 1% of all loans and deposits outstanding. Of the 127 responding banks, only 60 reported any charge-offs in the international area. These 60 banks reported average international loans an d d e p o s its a g g re g a tin g $182 billion. The international section presents gross charge-off, recovery, and net charge-off data for three bank size categories. I t also gives an indication of aggregate charge-off experience by country and type of borrower. A free copy of the report was sent recently to the chief executive officer and the RMA accredited representa tive of each of the association’s 1,900 member banks. O ther copies are available from the RMA Order D partm ent, 1432 Philadelphia N a tional B ank Building, Philadelphia, Pa. 19107. The price is $5.00 for RFM A member banks and $7.50 for nonm em ber banks. 57 A H eller p articip ation loan k eep s your cu stom ers’ in terest in your b an k . When a good customer or prospect comes to you with a loan request largerthan you may be willing to provide, you don’t have to lose him. A bank/H eller participation loan gives you the leverage to maximize your customer’s credit availability. You provide his normal banking functions, retain his deposit balances and generate interest income from your portion of the loan, typically 30% to 50% . Heller assumes responsibility for all administrative and supervisory details, plus keeps you close to the situation with periodic examination reports. Heller has been exercising this kind of financial creativity for over a half-century with banks of all sizes. Today, Heller is not only the most experienced, but very likely, the best in the business of participations. Contact the Heller office nearest you today. Your customers and prospects are too important to lose. Walter E. Heller & Company 105 W. Adams St., Chicago, III. 60690 New York • Boston • Philadelphia • Baltimore • Syracuse • Detroit St. Louis • Kansas City • Denver • Atlanta • Miami • Birmingham • New Orleans Houston • Dallas • Phoenix • Los Angeles • San Francisco • Portland San Juan P.R. Heller services also available through Heller Companies in Canada and twenty other countries around the world. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 58 BMA Announces Speakers For Chicago Convention Muriel Siebert, superintendent of b a n k s of th e S ta te of New York, will make the keynote address at the opening session of the Bank M arketing A ssociation’s 63rd annual convention, October 15-18 in Chi cago. M. SIEBERT D. H. RUMSFELD attend the convention a t the Palm er House. The them e of the m eeting is “ W ays to W in’’ and it will focus on c o m p e titio n , iss u e s w ith m a jo r im pact on the future of the banking industry, and the techniques and skills th a t prom ote success. To complete the convention all participants are invited to attend a cocktail buffet followed by an evening at the Broadw ay-hit m usi cal, “ A Chorus Line’’ at the Schubert Theater. The chairm an of B M A ’s 1978 convention if John V. E gan, J r . , vice president, Continental Illinois N a tional Bank, Chicago. The host comm ittee is chaired by Sheila Horochena, product m anager/retail credit services, F irst N ational Bank of Chicago. U.S. National of Oregon Settles Sex Bias Suit J. E. FINKS R. LUBAR Ms. Siebert was sworn in as superintendent of banks in July, 1977, and previously was chairm an and president of M uriel Siebert and Company, Inc., M embers New York Stock Exchange. She became the first woman mem ber of the New York Stock Exchange in 1967. She has served as a director of several corporations and as a trustee of M a n h a tta n S a v in g s B a n k . A s s u p e rin te n d e n t of b a n k s , M rs. Siebert is on the boards of directors of the U rban Development Corpora tion, New York Job Development A uthority and the S tate of New York M ortgage Agency. Sharing honors as general session speakers will be former Secretary of Defense Donald H. Rumsfeld, now president and chief executive officer of G. D. Searle & Co.; Jam es E. Finks, executive vice president and general m anager of the Chicago Bears Football Club, Inc.; and the Fortune M agazine E d ito rs’ Panel with M anaging E ditor Robert Lubar and members of the board of editors, Sanford Rose, Carol Junge Loomis and A1 F. E hrbar. More than 1,500 bank m arketing professionals from across the United S tates and abroad are expected to N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 The United S tates N ational Bank of Oregon, headquartered in P o rt land, has settled a sex discrim ination suit filed in 1976 by seven female employes who alleged th a t in th a t year the average male branch m anager received $423 more th an a woman for the same work. They also alleged the bank classified positions as m ainly male or female and th a t male positions were in areas of greater com pensation and career opportunities. One plaintiff, Frances Cook, had objected to a consent decree reached A ugust 1 for m onetary dam ages to women employes already discrim in ated against. The consent decree finally signed contained no such provision b u t it was learned th a t the U. S. N ational made a separate s e ttle m e n t a w a rd in g M s. Cook $5,500 in back wages, and $4,000 each to four other plaintiffs. The signed decree requires the bank and the holding company, U .S. Bancorp, to budget $672,000 for training of females and m inorities over the next five years, at which time the governm ent decree orders the bank to have its m anagem ent consist of at least 38% females. The bank noted in a concurrent a n nouncem ent th a t its current budget for training females and m inorities is $1.1 million, exceeding the am ount called for in the signed decree. I t added th a t females already hold 34.3% of m anagem ent staff jobs. Monfort Expands to Kansas K enneth W. M onfort, co-chairman of the board of directors at M onfort of Colorado, Inc., Greeley, announc ed recently th a t the firm has obtained options to purchase land in w estern K ansas for construction of a $15 million slaughter and custom m eat cutting plant. The plant, to be located near Scott City and Oakley, w ould n e a rly d o u b le th e beef production capacity of M onfort, the nation’s largest cattle feeder. Mr. M onfort emphasized th a t construction of the plant depends on a num ber of factors th a t include financing, soil and w ater studies and manpower surveys. If constructed, the plant would be M onfort’s first outside Colorado and would employ 425 persons. I t would have a daily slaughter capacity of 1,500 cattle, or 420,000 per year, he stated. This would produce estim ated m eat sales annually of $280 million from th a t plant, operating a t full capacity. M onfort reported total revenue last year of $365.3 million from the sale of 525,000 cattle and 687,000 lambs processed a t its Greeley headquarters. Three Consumer Compliance Workshops Planned By ABA Three more Consumer Compliance W o rk s h o p s , d e sig n e d to a s s is t bankers in complying w ith the growing num ber of consumer regula tions, have been scheduled by the American Bankers Association for this Fall. The three-day sessions will review the requirem ents of consumer laws and compliance exam ination proced ures w ith a special emphasis on the T ru th - I n -L e n d in g , E q u a l C re d it O pportunity, and F air Housing Acts. The W orkshops’ form at will be instructional w ith support coming from consumer compliance examiners and regional consumer specialists from the Office of the Comptroller of the Currency plus representatives from the Federal Reserve and the FD IC. The W orkshops will be held in the following locations: • Nov. 19-22 — Dallas (Fairm ont H otel). • Nov. 26-29 — W ashington, D.C. (H yatt Regency). • Dec. 3-6 — Los Angeles (Bonventure Hotel). / •ï ' • ♦ "W h en Fm asked for m y op m io ffeii a construction loan participation, Fm concerned about our correspondent’s interest, too. ” MEMBER FDIC © Chase Manhattan Bank, N.A. 1978 Francis X. Kosch, Vice President/District Executive, Correspondent Bank Real Estate Finance W hen you need upstream help for a corporate custom er in a complex or unusual industry, often you’re looking for both an overline participation a n d technical expertise. Your Chase correspondent banking Relationship Manager can deliver both. He or she has access to in-house industry specialists who help analyze your participation proposal and create an effective credit th a t’s in everyone’s best interest. O ne of the industry specialists frequently consulted by our Relationship Managers is Frank Kosch. Frank has spent the past 16 years in the complex world of real estate financing and knows it cold. So when he’s asked to evaluate a real estate participation, you can expect a highly astute analysis. Before he gives his recommendation, Frank always visits the construction site. But his involvem ent doesn’t stop there. T hroughout the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis term of the loan, he’ll return periodically to the site. T h at’s because Chase and our correspondent are financing against future value, and it’s critical to insure that real estate values mature as projected. In every loan participation, Chase’s prime objective is to maximize the return for a ll involved. If you have a loan participation that involves a complex or unfamiliar industry, call your Chase correspondent banking Relationship Manager. He or she will respond promptly—and with the valued opinion of one of that industry’s most knowledgeable specialists. T h at’s the way it’s done at Today’s Chase. 60 BAI Convenes in New York John G. Heim ann, U .S. Com ptrol ler of the Currency, will keynote the opening session of B ank A dm inistra tion In stitu te ’s 54th national con vention in New York, Septem ber 18. A 1977 appointee of the Carter A dm inistration, M r. Heim ann is expected to speak on the m arket place as the regulator. J. G. HEIMANN the m idwest trade area increased 16% during the first six m onths of 1978, compared w ith the first half of 1977. M aster Charge cardholders gener ated a record $465,861,000 in retail purchases and bank cash advances d u rin g th e f ir s t six m o n th s , according to Credit System s Incorported. CSI is the operating center for M aster Charge in the five-state area of M issouri, K ansas, Iowa, s o u th e rn Illin o is , an d w e s te rn Kentucky. The peak m onth during the first half was June, with a record $97,000,000 in volume. The CSI M aster Charge program consists of over 58,000 m erchant outlets, 836 participating banks, and more than 1,850,000 cardholders. J. F. McGILLICUDDY BAI Chairm an of the Board George E hrhardt, J r ., president of ABA Report Sees 1978 Lag The Colonial B ank of W aterbury, In Consumer Credit Growth Conn., said. “ The them e of the Total consumer credit outstanding convention ‘A Time to E v alu ate,’ is jum ped 16.9% in 1977, an increase indicative of the program planned. over the 12.4% hike registered in W ith m ajor changes happening daily 1976, states the American Bankers in banks, the convention them e is A ssociation’s 1977 Instalm ent/C onapplicable to all banking discip sumer Credit Report. lines.” The report, which provides a Syndicated hum orist, playw right statistical overview of bank consum and author, A rt Buchwald, will be er credit operations, was A B A ’s the opening day luncheon speaker. largest and m ost comprehensive, Convention General Chairm an, with 900 of more than 3,500 banks John H. McGillicuddy, who is also surveyed responding. president of M anufacturers H anover Automobile credit outstandings T rust Company, New York, said, increased by slightly less than 20 % “ more th an 4,000 bankers and their and home im provem ent credit by guests are expected at the annual about 18% in 1977, the report said. m eeting. The program includes more Both were slightly under the 25% than 100 speakers and more than 70 grow th of the in d u stry ’s key gainers, separate sessions.” bank credit card and bank check Some of the leading speakers credit, b u t well over the three scheduled are: Jam es E. Frazier, per cent grow th counted in mobile d ire c to r of E D P e x a m in a tio n s , home credit. Comptroller of the Currency; Donald The survey also showed th a t J . O’Reilly, CPA, chief auditor, 36-month new car loans were an Mellon Bank, N .A .; Robert C. industry standard and th a t, while Isban, CPA, executive vice presi energy conservation loans were made dent, M anufacturers H anover T rust and prom oted by a num ber of banks, Company; David Brooks, senior vice they were not widespread in 1977. p r e s id e n t, C ro ck er B a n k ; J o h n A lthough gross instalm ent loan Zimmerman, senior vice president income was up, the report said and controller, F irst N ational Bank profits declined because of loan of A tlanta, and John Chancellor, demand, rising internal costs and the anchorm an of NBC-TV N ightly fact th a t banks did not ad ju st prices News. upward. Reduced loan losses prevent further erosion of profits, the report added. Midwest Master Charge The report concluded th a t the 1978 Transactions Gain 16% consumer credit outlook is less The dollar volume of M aster favorable than in 1977, prim arily Charge cardholder transactions in b e c a u se th e fa c to rs t h a t give N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis consumers confidence and influence them to buy (personal income growth, higher employment and m oderate rates of inflation) are likely to be less favorable this year than they were in 1977. The 1977 Instalm ent/C onsum er Credit R eport (#206700) can be ordered by ABA members for $14.00 and by nonm em bers for $18.00 from the Order Processing D epartm ent, American Bankers Association, 1120 Connecticut Ave., N .W ., W ashing ton, D.C. 20036. Directors Up Capital for Exchange National, Chicago An agreem ent was reached last m onth between two m ajor, opposing stockholder groups of Exchange I n te r n a tio n a l C o rp ., p a re n t of Exchange N ational Bank of Chicago, on a plan for increasing capital. The plan was approved at a deferred annual m eeting. Subsequently, John S. Sam uels, III, chairm an of the holding company and chairm an of the b a n k ’s executive comm ittee, said money received from the sale of additional shares will be used to satisfy overdue interest paym ents on a $10 million loan from the F irst National Bank of Chicago. The paym ents were in default after the directors’ m eeting of July 13 was adjourned when the two groups— Mr. Samuels and his associates and members of the families of Edw ard J . and George J . Sax, directors, couldn’t agree on the new capital proposal. The newly adopted plan calls for an increase in common stock from the present 1,234,905 shares to 2,750,000 and creation of 250,000 shares of a new class of preferred stock. Present stockholders have first right of purchase. Outside investors m ay purchase stock after one m onth following the board approval in A ugust, b u t their purchase m ust be OKd by six of the com pany’s seven directors. Foreign, as well as American purchasers will be considered. Mr. Samuels said controlling interest would not be sold unless a substantial premium would be paid by the buyers. Philip W. Lewin, president of Exchange N ational Bank, reported at the m eeting in A ugust th a t the net income for the first seven m onths of 1978 was $998,000 compared w ith $407,000 for the same 1977 period. 61 For 24 years we've been competing w ith fh a Title I ...and winning. Our specialty is cutting red tap e Here's how: Greater profits. Net yields to lenders average 25% more under the ICS Plan than under Title l. includes counsel and continuing portfolio review and evaluation. More flexibility. ICS tailors a program to your needs. Loan amounts. Loan terms. Marketing help. Promotional planning, special programs. Today over 1,300 institutions—from the smallest to the largest— use the ICS Plan. And all property Improvements are eligible. From room additions to swimming pools. From garages to tennis courts. Risk-free security. You’re shielded against every unpredictable default. Strikes. Divorces. Skips. Bankruptcies. Layoffs. Superior service. Claims are paid in 7 to 10 days. Not weeks. Not months. Reporting procedures are simplified, too. Our service Learn for yourself why insured Credit Services has been competing with f h a Title l for 24 years—and winning! we have now Insured more than $2 billion In property improvement loans, we re ready to help you Increase your profits today. Call or write William F. Schumann, President, for a plan tailored to your needs. IN SU RED CREDIT 307 N. Michigan Avenue Chicago, Illinois 60601 3 1 2 / 621-9400 America's No. 1 insurer o f property improvem ent loans. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 62 NORWEGIAN RED . . . (Continued from page 45) and city bred young professional to this point in his career. Ron’s father, Ronald R. (Rudy) Hagelm an, Sr., is a successful Des Moines life insurance executive. Rudy H agelm an had been involved in the organization of three insurance companies before he personally organized G uardsm an Life Insurance Co. in Des Moines w ith one other associate in 1962. The company exceeded $1 billion of life insurance in force by late 1976 Rudy Hagelman (left) and his son, Ron, w ith N orw egian Red bull exhib ited at spring show ing. and expects to top the $2 billion in-force total in 1980. Among its other lines, G uardsm an m arkets credit insurance extensively through banks in the midwest. Ron H agelm an came to Des Moines with his family and finished high school, then was graduated from the U niversity of Texas. He tau g h t political science at the high school level in Texas and Iowa. A lthough ju st 29 now, he has been farm ing for 12 years, fulfilling a youthful am bition when he was enamored of the flavor and romance of the cattle business. “ A ctually,” he confesses, “ I tau g h t school to support my addiction to the land. I always w anted to say my livelihood depended on the land. My wife and I had to generate sufficient income from a small farm to survive, and I figured the only way to do th a t was through registered cattle on a small acreage.” U .S. Breeding Started in 1973 Norwegian Reds were brought to the United S tates in 1973. Ron Hagelm an was among the first to take a good look at these cattle. W ith his father and some interested business and professional cattlem en, they bought 21 Norwegian Red cows in July, 1976 and an additional 9 in December, 1976, as well as 20 bulls, with an investm ent of $120,000. A bout tw o-thirds of the animals were imported, the others were born in Tennessee where the first Reds were im ported and bred. B re e d in g o p e ra tio n s hav e c o n tin u e d on th e Hagelm an farm since then. Ron H agelm an heads the N O R E D C o rp o ra tio n as p re s id e n t an d w orks vigorously for the group of breeder members as sales m anager. A sale this spring resulted in all exhibited animals being sold th a t were offered. “ Incidentally,” he notes with hum or, “when we had cattlem en visiting us N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis from Norway they were amazed to see our bulls. They had never seen one over 18 m onths old and one of ours was six years old.” Referring again to the end product, Mr. Hagelm an says the rigid performance testing done on Norwegian Reds gives them an enviable track record th a t has increasing num bers of midwest cattlem en looking at this breed for upgrading herds in their search for greater efficiency and bottom line profit. □ SBA CERTIFICATION . . . (Continued from page 50) decision rather th an reviewing all details of the loan in the credit file. We anticipate this will make it possible to clear applications in two or three days instead of a couple of weeks. Obviously, to m eet Congressional directives and our own agency guidelines we will have a system for conducting periodic exam inations of the loan records m aintained by the banks. Compliance with these procedures will be the basis for renewal of the certification every two years. The purpose of certification boils down to a simple point—if it’s the prudent thing to do, then do it. All we ask is th a t a bank document its file. “To simplify m atters further we’re revising our loan application to shorten it, to write it in consumer language, and make it less formidable. We are also revising the bank participation agreem ent, especially regarding the paym ent of funds and notice of default. Secondary Market “ This departm ent also is responsible for secondary m arket operations and these procedures are being revised as well. A t present, when guaranteed loans are sold to investors, the bank m ust mail m onthly checks to each participating investor. Under the revised procedure, SBA would appoint a transfer agent to whom such paym ents would be made in lump sum, then the transfer agent would handle details of providing investors with a certificate of ownership (transferable) and their paym ents when due. “ A bank utilizing the secondary m arket could lay off 90 % of its loan money so th a t a bank with $2 million of its own money involved, for example, could actually make $20 million of loans in its comm unity, and retain a 1% service fee on the p a rt sold to the m ark et.” Mr. M arshall emphasized again th a t commercial banks still m ay participate in SBA loans in the traditional way even though they are not involved in the Bank Certification Program . These loans will continue to be adm inistered as they have been, operating through SB A ’s established district and regional offices. □ First Chicago Corp. Increases Dividend Directors of F irst Chicago Corporation, parent company of The F irst N ational Bank of Chicago, recently voted to increase the annual dividend rate to $1.10 a share from $1.00, a 10% increase. Chairm an A. Robert Abboud said the increase in the dividend is in recognition of the im provem ent in the C orporation’s earnings. A t the same tim e, F irst Chicago reported record earnings for both the second quarter and first half of 1978. N et income in the second quarter was up 17% to $33,323,000, while first half of 1978 net income was up 15.5% to $64,706,000. 63 Wfc have over $19 billion in assets* O nly one other California bank can say that* We’re proud of our size for this reason: it is a direct reflection on the quality of our service and the extent of our commit ment to excellence in the financial community. That quality and our commitment manifest themselves in the unusu ally complete range of financial services we offer, as well as in the fact that 90 of the top 100 U.S. companies have taken advantage of at least one of those services. Chances are, you have a friend whose opinion you respect in one of those cor porations. Ask him about the quality of service you can expect from Security Pacific Bank. SECURITY PACIFIC BANK © 1978 SPNB MEMBER FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 64 Resigns ABA Ad Post Kenneth H. DeCesare recently resigned as advertising m anager for the American Bankers Association to join the J . W alter Thom pson advertising agency in New York. Mr. DeCesare joined the ABA in 1972 and has been advertising m anager of ABA since the m erger th a t year of the Foundation for Full Service Banks into ABA. He has been responsible for A B A ’s network television advertising and other advertising ventures included in the association’s $4 million ad budget. Allan F. Paro succeeds Mr. D eC esare as A B A a d v e rtis in g m anager. Prior to joining ABA he was employed by M arriott Corpora tion. His earlier advertising and m arketing experience was w ith Sea W orld of F lo rid a , J o h n s o n & Johnson, General Foods Corporation and Lever Brothers Company. DKQ’s Robert Harris Named To Public Securities Post Robert E. H arris, research and m arketing coordinator for the fixed income division of Dain, Kalman & Quail, Incorporated, Minneapolis, has been appointed a member of the research comm ittee of the Public Securities Association, a national organization representing banks and dealers who underw rite, trade and sell governm ent securities. M r. H a rris jo in s tw o o th e r executives of the firm who are comm ittee members of the national a s so c ia tio n . R o b e rt R. M a rtin , executive vice president, and Paul D. G ubrud, vice president, are members of the municipal securities and education com m ittees respec tively. Mr. H arris has been associated with Dain, Kalman & Quail for 17 years. He is a native of G ranite Falls, M inn., and received his bachelor’s and m aster’s degrees in business adm inistration from the U niversity of M innesota. W OM EN IN B A N K IN G . . . (Continued from page 54) of the list, or not even have considered it a t all. Every area of my experience has been useful. My operations back ground has proved invaluable in dealing with the problems of my custom ers. Because of the personal ity of my branch we have close contact daily w ith our custom ers. If som ething goes wrong, they often come to the m anager first. I certainly could not now supervise the operations departm ent of my branch w ithout retraining, b u t my basic understanding of how and why th in g s h a p p e n does give me confidence in dealing with our custom ers’ com plaints and problems. Today anyone who knows w hat his/h er goal is and who w ants to plan to reach it can use the Career Guidance program to s ta rt develop ing a personal training program to fit his/h er needs. You will receive attention and assistance if you are NABW CONVENTION . . . (Continued from page 52) Evening M orning sessions to apply workshop idea to particip an ts’ b an k ’s problems. Open. Tuesday, Septem ber 26 Awards B reakfast — Presentation of regional and national scholarship winners. Special concurrent m anagem ent skills sessions: Form ing the Strategies for Your Career. • M atch Your Present Skills to Your F uture Career ® Your M anagem ent Style - Is Flexibility the Key? • How the Organization W orks • A Change in the Rules: Breaking Through the Female Stereotypes • How To Analyze the F uture M arket Using Your Present Skills • Finding Your Replacement N o rthfor w eFRASER s tern Banker, S ep te m b e r Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Afternoon Evening M orning Afternoon E v e n in g reasonable and serious in your intentions. If after taking a few related AIB courses and some in-bank training, you find w hat you thought was your goal is not w hat you really w anted to do after all, have the courage to change your goal and find your success in th a t area of banking th a t really gives you satisfaction. Oppor tunities are not limited because of sex or age as they m ight have been years ago. In my contacts w ith other FNB w om en m a n a g e rs , I find our experiences have been similar. We feel th a t in the future women will be found anywhere in the system where their skills place them . You still doubt? How did you fill out your last annual Development Review form? Were you really honest in your response, or did you ju s t fill in the spaces to get the “ darned form ” filled out? If you have made a real decision about which direction you would like your career to go, write it down. Now don’t “ cop o u t.” Really fill in the blanks. Then get ready to study and work toward your goal, whether it is to be a loan officer, branch m anager, operations officer or president. I t ’s your goal, work on it. It worked for me. W hether you are a young m an or woman, a middle-aged m an or woman or an older m an or woman, work on it. Search yourself. Are you able to accept responsibility and are you willing to accept the burdens? If you are ready, there is an exciting challenge ahead of you! □ • Cross-selling Your Abilities • Communication: The Selling of Ideas • Negotiation • Selling Yourself Concurrent W orkshops: Form ing the Strategies for Your Bank. Processing sessions. Open. W ednesday, Septem ber 27 A nnual m eeting — F eaturing multi-media presentation on NABW ’78 and the accom plishments for members and the banking industry. General session “ M aking the Odds W ork for You” — Alene M oris, NABW Educational Founda tion consultant. Installation luncheon. R e c e p tio n a n d a n n u a l b a n q u e t — Featuring big name entertainm ent in C aesar’s Palace Circus M axim us Show room. □ DOES YOUR SINGLE INTEREST RLANKET HAVE HOLES IN IT? •f ' l. b s. CALL THE PROFESSIONALS THE KEMPER PLAN for collateral protection provides a program that eliminates those holes and produces bottom line p ro fits ... 800- 421-0331 (IN CALIFORNIA (213) 378-6294 COLLECT) j* CALL TO ARRANGE FOR A LOCAL REPRESENTATIVE TO EXPLAIN HOW YOU CAN BENEFIT. JOHN M . KEMPER & CO BANCINSURE CORP. 23900 HAWTHORNE BLVD., TORRANCE, CALIF. 90505 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 66 O urideaof correspondent banking: THE COMMITTEE OF ONE. Our people are real, live, experienced correspondent professionals, with years of correspondent banking behind them . They aren ’t m anagem ent trainees or ju st goodwill ambassadors, so they can okay loans or services—like our new EFTS services—on the spot. W ithout going through unwieldy, tim e-wasting committees. WE CALL YOU BYNAME NOT BY PHONE. You see, National Boulevard believes in person-to-person, eye-to-eye contact with the m anagem ent of every7 correspondent bank. Right there a t the correspondent bank. So things get done faster, friendlier. THE FUTURE STARTS TODAY And now our individualized services will be better th an ever, because N ational Boulevard is ready for EFTS. Electronic Funds Transfer Systems. For instance, our C entral Information File is capable of transm itting inform ation to correspondent banks. Soon, checking and savings accounts will be on line. Then, step-by-step, every correspondent service will be fully integrated into the system for more convenient, better banking. The bank for the New Downtown NATIONAL BOULEVARD BANK OF CHICAGO 400-410 North Michigan Ave., Chicago, 111. 60011 Phone (312) 836-6500 Member F I >H N orthw Banker, S eptem b er Digitized for estern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 67 al counsel in 1976. His added responsibilities will include supervis ing legal and legislative research. He formerly served as secretary and director of technical inform ation for the Profit Sharing Association of America. Illinois News B. F. BACKLUND President Bartonville W. J. HOCTER Exec. V.P. Chicago McHenry Bank Announces Top Executive Changes M. J . M arty, J r ., recently was e le c te d c h a irm a n of th e F ir s t N ational Bank of M cHenry succeed ing H arry H. H ans who resigned but will rem ain a director. Mr. M arty is president of Chicago M anufacturing Company. Ronald L. Graves was appointed president and elected a director. He formerly was executive vice presi dent of the Riverside N ational Bank. W illiam J . B u sse , J r . , w as appointed executive vice president and elected to the board. He comes to the bank from the M ount Prospect S tate Bank where he served as investm ent officer. Also elected to the board is M arian H. Busse of A rlington H eights. She serves as a director and vice chairm an of the board of the M ount Prospect S tate Bank. Peter Reiland, J r., Daniel L. Adam s, Edwin C. W ittrock and Donald C. Daley resigned from the board to devote more tim e to business interests. FirstBank Evanston Announces Promotions and M edicare cards, and free notary service. M embership is free, and the only requirem ents are th a t prospective members be a t least 60 years of age and currently have or open a F irst N ational savings account. First National of Rockford Names Personnel Officer The F irst N ational Bank and T rust Company, Rockford, has a n n o u n c ed th e addition of LaVerne Lynch to the b a n k ’s staff as personnel offi cer. Mr. Lynch com es fro m Sm ith Oil Cor p o ra tio n w here he worked for 30 years in various departm ents. He has worked in personnel for the past five years. David M. Gallaway recently was promoted to senior vice president responsible for the banking services division of F irstB ank E vanston. This division includes the controller, personnel, operations, bank services, personal banking, building m anage m ent and data processing d ep art m ents . Lorenzo Dawson was named vice president and cashier responsible for the operations and banking services d ep artm ents. Charles C. H app was prom oted to assistan t vice president with respon sibility for bank operations. First of McHenry Names Assistant Vice President Ronald L. Graves, president of T he F ir s t N a tio n a l B an k of M c H e n ry , h a s a n n o u n c ed th e prom otion of G uenter O. Scheel to assistan t vice president, loan dep art m ent. Mr. Scheel has been w ith the bank since 1971. Named at Lombard B arry J . Carroll has been elected a director of the Bank of Yorktown, Lom bard, according to Edw ard J. “ Dimension 60,” a new program Shaw, president. Mr. Carroll is vice tailored specifically for senior com president of International M etals m unity m embers 60 years of age or and M achines, Inc., Des Plaines. over was announced recently by Richard M. Bishop, president of the Vice Presidents Named F irst N ational Bank, Galesburg. Key features of the “ Dimension By IBA Council A PITO L Bank of Chicago has 60” program include a color photo Norm an C. Peterson has been announced th a t William K. identification card, free checking and named adm inistrative vice president L atourette has joined the b an k ’s free c h e ck s, m e rc h a n t d isc o u n t an d D o n ald X. M u rra y vice commercial lending departm ent as program , discount on safe deposit president and general counsel of the assistan t vice president. He formerly box rental, free tru s t and will Illinois Bankers Association (IBA). was a tru s t officer and vice president reviews, estate and financial plan Formerly IBA assistan t secretary, of the N orth Point S tate Bank in ning consultations, senior inform a Mr. Peterson will now be responsible A rlington H eights. tion center, assistance w ith checking for m e m b e rsh ip , m em b er b a n k *** account balancing when needed, and relations, financial adm inistration income savings plans. Also included and various special projects. He An application for a perm it to are a regular new sletter to all joined the IBA in 1969 from the organize W omen’s B ank of Chicago, m em bers, direct deposit of Social American D ental Association where 100 W est Monroe Street, has been Security checks, photocopy services, he served as convention m anager. filed. The b a n k ’s to tal capitalization free lam inating of Social Security Mr. M urray was appointed gener- would be $3 million. Galesburg Bank Introduces New Service for Seniors Chicago News C https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S ep te m b e r 1978 68 Illinois N ew s IBA Schedules Ag Credit Conference H E Illinois Bankers Association will hold its thirty-second annual T A gricultural Credit Conference Octo National Bank, St. Louis, Mo., and Jam es W inningham , vice president, S tate Bank of A rthur. ber 11-12 a t the Ram ada Inn, Champaign. These workshops will be held a t 2 and repeated at 3:15 p.m . on W ednesday, October 11. • M arketing Techniques Used by a Producer, Illiniwek Room. M odera tor: Joseph Valenti, senior vice president, Drovers Bank of Chicago. Speaker: M erritt Sprague, Paxton and Sprague Farm s, Hull. • Loan Docum entation-Brundage Room. M oderator: Bradford Vail, vice president, Exchange S tate Bank, Lanark. Panelists: Jam es Evans, partner, Phipps and Evans Law O ffices, C h a m p a ig n , an d Robert H. Behrens, senior vice president, The Cham paign National Bank. • Where to Obtain Funds-Zuppke Room. M oderator: Donald Mapes, vice p re s id e n t, T he C h a rle s to n N a tio n a l B a n k . P a n e lis ts : N eil Bergenthal, vice president, F irst Wednesday, October 11 A.M. 8:15 R egistration, coffee and do n u t s —C o n v e n tio n C e n te r Lobby. 9 F irst General Session—U ni versity Hall. Presiding: M yron O tto, con ference com m ittee chairm an and vice president, B ank of Pontiac. Welcome. 9:05 “ Politics of Food and A gri culture’’: Harold G uither, ex tension economist, U niversi ty of Illinois, Urbana-Cham paign. 9:45 “ Ag Banker of the F u tu re ” : Deri I. Derr, director, agri c u ltu r a l b a n k e rs d iv isio n , American Bankers A ssocia tion. 10:30 Coffee Break. A SYSTEM F O R A BAN K T O TAP TH E M IDDLE C O R P O R A T E M A R K ET The Lawrence System can eliminate the risk of lending to mid-sized corporations, and open up a w hole new lending m arket. W ith Lawrence monitoring inventories and receivables, a hank can be confident that loan collateral is properly managed and secured. It’s a system that can help diversify a bank’s loan portfolio, and increase its profits. For information write or phone Lawrence, the oldest and largest system of its kind in the world. Law rence Systems, Inc .,3 7 D ru m m Street, San Francisco, Ca., 94111. 415-981-5575 or 800-227-4644. T H E LAW RENCE SYSTEM A C O L L A T E R A L M A N A G E M E N T S U B S ID IA R Y O F IN A N orthw Banker, S eptem b er Digitized for estern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 10:45 “ Pricing A g L oans” : M arlin Jackson, chairm an and presi dent, Security Bank, Paragould, Ark. 11:30 Reception—Convention Cen ter Lobby. 12 L u n c h e o n —M id w e st B a ll room. Presiding: Bruce O tto, presi dent, IBA agricultural divi sion and vice president, F irst F a rm e rs S ta te B a n k of Minier. Invocation: Jam es R. Shafer, assistan t vice president, The F ir s t N a tio n a l B a n k in Trem ont. R e m a rk s: B. F . (Chip) Backlund, president, Illinois B a n k e rs A s s o c ia tio n an d president, Bartonville Bank. A nnual m eeting and election of officers. P.M. 2 W orkshops 3:15 W orkshops Repeated 5:30 C o m p lim e n ta ry rec e p tio n M idwest Ballroom. 6:30 B a n q u e t—M id w est B a ll room. Presiding: Bruce Otto. “ Country Cows, Crops and C redit” : Bob M urphey, a tto r ney, Nacogdoches, Tex. Thursday, October 12 A.M. 7:30 Early Bird Sessions. 8:45 Second General S e s s io n U niversity Hall. Presiding: Howard W alker, second vice president, IBA ag division and vice presi dent, F irst N ational Bank of M etam ora. “ Perspectives on F utures Trading and A gricul tu ral E x p o rts” : Clayton Yeutte r, president, Chicago M er cantile Exchange. 9:45 “ Outlook-Econom y” : Frank Spinner, senior vice presi dent, F irst N ational Bank, St. Louis, Mo. 10:30 “ O utlook-G rain” . “ China, Russia and the Price Outlook for Illinois Corn, Soybeans and W heat” : Con rad Leslie, president, The Leslie Analytical O rganiza tion, Inc., Chicago. 11 “ Outlook-Livestock” : Harold Heinold, chairman, Heinold Companies, K outs, Ind. 11:30 Adjournm ent. 69 A correspondent bank should give you more than just a correspondent banker. Wfedo. When you choose First National Bank in St. Louis as your correspondent bank, you get more than a correspondent banker. You get an entire staff of specialists who offer you daily assis tance for daily needs. ^ For example, the “Rabbit Transit”check clearing systems our people have developed can help improve your earnings, because your transit items become collected balances rapidly. We also offer you the services of agricultural fi nance specialists who can help you provide your cus tomers with expert advice as well as flexible loan arrangements. In the area of Fed Funds, investments and the safe keeping of securities, we offer a performance rec ord that’s highly regarded in our industry. Our electronic data processing team brings you the most sensible systems for getting work done — reliably and accurately. And our computer specialists offer counsel and advice in all phases of EDP systems. Our capacity for overline lending, based on our sizable assets, allows you the opportunity to make larger loans than you otherwise might. We sponsor timely seminars where you and other top management of your bank meet with the top management of our bank to exchange ideas and share expertise. These seminars also serve to keep you up-to-date on recent developments in our industry. Of course, your correspondent banker is always available for individual consultation. He’s the key to our relationship and the person we depend on to make fast decisions on our behalf. He’s the one you can depend on, too, when you want to get more from your correspondent bank. He can help you plan for your bank’s future and for our future together. If you’re not already seeing a First National Bank in St. Louis correspondent banker, just call Chuck Betz at (314) 342-6386. He’ll make sure you get a correspondent banker... and a whole lot more. First National Bank in St. Louis A F irst Union Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member f d ic N orthw estern Banker, S eptem b er 1978 70 800-752- 4200* Now, toll-free attention to your correspondent needs. Correspondent Services Coordinator The full range of Midland's Correspondent Banking facilities are as close as your telephone, and now we have a toll-free number so you don't have to think twice about calling. At the end of the line you'll find the strength and services of a substantial financial institution, plus the accessibility of a bank that deals person-to-person to help you serve your customers better... quicker... easier. *ln North Dakota, South Dakota, and Wisconsin, call 800-328-8678. Mike Pfiggins Assistant Vice President Correspondent Banking Stan Peterson Vice President Correspondent Banking Right on the money. M idland National Ban k Of Minneapolis An Affiliate of Northwest Bancorporation Member FDIC N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 The Downtown Bank with Two Locations Second Avenue South at Fourth Street Third Avenue South at Sixth Street 71 Minnesota News LESLIE W. PETERSON T. L. JEFFERS Pres. Exec. V.P. Trimont Minneapolis To Head W illm ar Bank S. W. (Sy) Foss is the new president and director of the B ank of W illmar & T rust C o m p an y s u c ce ed in g O scar Sm ith, who was e le c te d c h a i r m an. Mr. Foss will move to W ill m ar this m onth and assum e his new duties on October 1. S. W. FOSS M r. Foss, a banker since 1948, began his career a t the F irst N ational Bank of G rand Forks, N .D . He moved in 1963 to the C itiz e n s S ta te B a n k , B ra in e rd , M inn., and served as vice president from 1964-69. He was elected p r e s id e n t a n d d ire c to r of th e W ashburn S tate B ank in W isconsin in 1970. Retires at Brainerd John F. Zander, J r ., senior vice president a t Citizens S tate Bank of Brainerd, was honored recently with a retirem ent dinner in recognition of his more th an 44 years with the bank. M r. Zander joined the bank in 1933 as a teller. He was appointed senior vice president in 1974. AIB Study Group Named Best in District 10 The Am erican In stitu te of B ank ing S tudy Group 16, headed by John H erges, a ssista n t vice president, F irst Am erican N ational Bank, St. Cloud, was named the outstanding study group in A IB D istrict Ten re c e n tly . T he d is tr ic t in clu d e s M innesota, W isconsin, Iowa, K an sas, N ebraska, M issouri, Colorado, N orth and South D akota, and M ontana. The group, which consists of Benton and Stearns County, has a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis total of 29 banks in the area and experienced a 24% grow th in the p a rtic ip a tio n of c la ss o ffe rin g s during the 1977-78 year. In also conducted a seminar on bank security procedures for tellers and other bank employes. Joins Crookston Bank a ffilia te s of th e B rem er B a n k System . Resigning bank president Don Aschebrenner will move to Park Rapids and will be involved in an owner-operated business. Mr. Grosz has been in banking for 39 years. He first worked a t the Bowdle S tate Bank in South D akota p a rt- tim e w hile a tte n d in g h ig h school. In 1955 he moved to Aberdeen, S.D ., as assistan t cashier in the Farm ers and M erchants Bank. In 1957 he was prom oted to vice president and director. In 1965 he was m ade executive vice president and director of the Security Bank in W ebster, S.D ., where he later was president, tru s t officer and director. Mr. Grosz became president of the Breckenridge bank in 1972. Donald R. H ass recently joined the Polk County S tate Bank of Construction Begins Crookston as a On Minnetonka Bank vice p re s id e n t, Ground was broken near the according to Clif intersection of Highway 12 and ford H. Zaffke, Plym outh Road in M innetonka president. recently for a bank and office facility Mr. H ass has for the Ridgedale S tate Bank of 20 years of ex M innetonka. perience in b an k R auenhorst Corporation, M inne ing and finance, apolis-based design, construction m ost recently in and developm ent company, is the Rapid City and D. HASS designer and builder of the 25,000 Sioux Falls, S.D. square foot, three-story structure. He attended Sioux Falls College and The bank, chartered in 1977, will the Commercial Lending School at occupy the first floor of the building the U niversity of Oklahoma. with office space for lease on the second and third stories. The exterior of the bank building will To Head Marshall Bank feature dark bronze glass and Les Grosz, president of the burnished brick. Farm ers and M erchants S tate Bank R auenhorst will complete con in Breckenridge, has been elected struction work in m id-November and president of the W estern Bank and the bank will occupy its space in T rust in M arshall. Both banks are m id-February. MBA District Meetings D ate Septem ber 18 Septem ber 19 Septem ber 20 Septem ber 25 Septem ber 26 Septem ber 27 Septem ber 28 D istrict 1 2 7 3,4,5, 6 8 9 Location Rochester, Kahler Hotel Sleepy Eye, Orchid Room M arshall, Ram ada Inn Brooklyn Park, Sheraton Inn N orthw est Brainerd, M adden Inn & Golf Club G rand Rapids, Holiday Inn Fergus Falls, Holiday Inn N o rth w e s tern Banker, S ep te m b e r 1978 72 n Cities News OUR new vice presidents have been elected by the F irst N ation al Bank of M inneapolis. They are: Duane M. Glad, deposit operations; Robert B. Harrigan, student loan servicing center; Lois C. Martin, F D. M. GLAD R. B. HARRIGAN L. C. MARTIN J. D. NELSON operations and control group, and James D. Nelson, executive and professional banking departm ent. Mr. Glad has been w ith the bank since 1952. Mr. H arrigan joined the b a n k in 1969 as a b u s in e s s development trainee. Ms. M artin, who joined the bank in 1976 after nine years as a senior planning analyst for F irst Com puter Corpora tion, is head of the system s research and developm ent. Mr. Nelson joined the bank in 1964. * * * Marvin L. Ellison, president of the N orthw estern S tate Bank, St. Paul, has announced the election of Marion L. F retsch el as a d m in is tra tiv e services officer. She will be responsiN orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 ble for the b a n k ’s daily funds m anagem ent and will serve as compliance adm inistrator and assis ta n t to the personnel officer. Ms. Fretschel joined the bank in 1957. *** F irst Bank System , Inc. has announced the promotion of Dennis W. Augdahl to a s s i s t a n t v ic e president - sy s te m s , in th e com pany’s finan cial division. Mr. Augdahl has been asso ciated w ith F irst B a n k S y s te m since 1967 when he jo in e d th e D-W. AUGDAHL com pany’s data processing subsidi ary, F irst Com puter Corporation, as a system s analyst. He was promoted to senior system s analyst in 1970 and to departm ent m anager in 1971. He has served as system s officer in F ir s t B a n k S y s te m ’s fin a n c ia l division since 1973. *** president in 1961 and executive vice president in 1968. *** Jay W. Kinne and Donald G. Pederson have graduated from the Stonier G raduate School of Banking at R utgers U niversity, New B runs wick, N .J. B o th are vice p re s id e n ts of N orthw estern National Bank of Minneapolis. * * * George H. Tesar has been elected to the board of the N orthw estern National Bank of St. Paul, according to G. Richard Slade, president. Mr. Tesar was an earlier member of the b an k ’s board when he was m anager of the St. Paul-D ayton’s store. He resigned his seat when he was transferred to Chicago. He is now vice president of retail and opera tions, D ayton Hudson Jewelers. *** Warren F. W eek, Jr., vice president of N orthw estern N ational Bank of Minneapolis, has been elected Im perial P otentate of the N orth American Shrine. As Im perial Potentate, Mr. Week Funeral services were held recent heads the 178 tem ples which make ly for Lloyd L. Leider, who retired in up the Shrine of N orth America. Total m embership of the tem ples, 1975 as execu lo c a te d th ro u g h o u t th e U n ite d tive vice presi S tates, Mexico and Canada, is about dent and a direc one million. tor of the F irst * * * National Bank of Saint Paul. The appointm ents of Jean M. A banker m ost West and Alfred V. Alliegro to the of his life, Mr. tru s t comm ittee of the N orthw estern Leider began his National Bank of St. Paul have been career in 1938 announced by G. Richard Slade, with the F irst L. L. LEIDER president. Bankcredit Cor Ms. W est is president of Carleton poration, then an affiliate of F irst of Saint Paul. He transferred to the J . W est Publications in St. Paul. bank in 1945 and was elected an Mr. Alliegro is vice president and assistan t vice president in 1951, vice editor of W est Publishing Company, p r e s id e n t in 1953, se n io r vice St. Paul. 73 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 74 N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 75 The last thing your bank needs from an investment counselor is individual treatment. It’s a great comfort to know your bank’s invest ment counsel has done so well for so many indi viduals. But this can be a great pitfall, too, for coun seling individual investors Jim K ä m m e r e r has nothing to do with helping a bank make wise investments. A bank is a different breed of inves tor. Marquette’s Investment Department knows just how different because we are bankers ourselves. Bank ers with extensive experi ence and professional expertise in investment. So when we recom mend a purchase, we have already taken into G e n e A n o n s en account your bank’s maturity distributions be cause we are familiar with your portfolio. And we have weighed the cost, maturity and yield of the purchase on your liquidity needs, your pledging requirements, your capitalization and tax situation. We search for in vestments that satisfy all these considerations and your overall investment picture. Our interest is not D e a n F ordyce simply to sell you bonds and securities, but to find ones precisely right for you. This approach works so well w e’ve had to enlarge our department greatly in the last few years. We’ve had to grow to meet the dem ands of banks who have discovered we know our business— and theirs. We’re going to call on you soon and you can always call us. We think you’ll find it more profit able and just as friendly to be treated as a bank. An individual bank. J a c k C a m p io n Correspondent Banking Department M iMarquette national Bank 777 Marquette Avenue, Minneapolis, MN 55480 A Key-Card 24 Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 76 Twin Cities N e w s Charles H. Cornell, chairm an of the Southw est Fidelity Bank & T rust, has an nounced the ad dition of James W. Morton to the b an k ’s staff as executive vice president. M ost r e c e n t l y , M r. M orton has been associated w ith B anco as th e J. W. MORTON senior loan offi cer in an affiliated bank. Mr. M orton’s prim ary responsibil ity will be in overall lending m anagem ent. M r. M urphy combined the con c e p ts of B e rn o u lli a n d L ittle , provided some creativity and exten sive investigation and came up with the P /L FO RECAST. His formula employs the ratio of net income to total assets. This ratio was selected after com puter tests on 45 m ajor credit and profitability ratios for 700 companies for each of 17 years of data. * * * * * * N orthw estern National Bank of Minneapolis has announced four promotions in its regional banking group. James R. Dempster and LeRoy W. Stueven were named * * * A new service designed to give financial officers a com petitive edge in investing and lending has been developed a t N orthw estern National Bank of Minneapolis. Called P /L FORECAST, the m onthly service rates each of 850 m ajor U. S. corporations according to its probability of showing future profits or losses. The odds are given on a one-year, five-year and worst case basis. According to Joseph E. Murphy, Jr., vice president in the tru s t departm ent of N orthw estern, the m ethodology used in P /L FORECAST is derived from the m athem atical law of probability theory. Records show th a t in 1713 French m athem atician Jam es Bernoulli de veloped a formula from the law and used it to calculate the win-lose odds on a gam bler tossing coins. An Englishm an, Brian Little, in 1966 d e m o n s tra te d t h a t e a rn in g s of B ritish corporations exhibited prob ability characteristics resem bling the Bernoulli trials. J. R. DEMPSTER L. W. STUEVEN correspondent banking officers and Duc Q. Lam and Michael B. Moore were named international banking officers. M r. D em pster joined the bank in 1970 and was named correspondent banking representative in 1975. He represents the bank in southeastern M innesota, W isconsin and Upper Peninsula M ichigan. Mr. Stueven joined N orthw estern in 1959 and has been director of the b an k ’s teller sem inars since 1976. He was named correspondent representative earlier this year. *** BLANKET SINGLE INTEREST INSURANCE for installment loans on: M obile Homes RECREATIONAL VEHICLES Snowmobiles Boats and Motors Travel Trailers Motor Homes Automobiles Trucks (2 ton or less) Household Goods Farm Machinery Motorcycles PROTECT THESE LOANS AGAINST PHYSICAL DAMAGE LOSSES call or write: G.D. VAN WAGENEN CO. 1678 Northwestern Bank Bldg., Minneapolis, Minn. 55402 ( 612) N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F irst Bank System , Inc., has announced the prom otions of Doug las J. Edwards to liaison credit officer and Vern F. Wilcox to construction m anagem ent officer. Mr. Edw ards joined F irst Bank System in 1976 and m ost recently served as commercial loan and compliance officer. Mr. Wilcox, formerly architectural project coor dinator, has been w ith the system since 1969. 333-2261 A former chairm an of the board of M idland N ational Bank of M inne apolis, and civic le a d e r, A rnulf Ueland, Sr. died on T h u r s d a y , A ugust 10, 1978, after a long ill ness. He began his b a n k in g c a re e r at M idland in 1919, served in several areas of re s p o n s ib ility u n til he b ecam e chairm an in 1959, retired in 1961 and continued as a director until 1968. As a com m unity leader, Mr. Ueland was active in some 26 social, local and international organizations and he w as a re c ip ie n t of five distinguished service and achieve m ent awards from civic organiza tions including the Red Cross and the U niversity of M innesota Re gents. To Head RMA Chapter The M innesota Chapter of Robert Morris Associates (RMA), a national association of bank loan and credit officers, recently elected John W. Pulver, vice president of N orthw es tern N ational Bank of St. Paul, its new president. David M. Gillman, president of Fidelity Bank and T rust Company of M in n e a p o lis, w as ele c te d vice president of the group and David M . H yduke, senior vice president of American N ational Bank and T rust Company of St. Paul, was elected secretary -tre a su re r. O ther m embers elected to the b o a rd in clu d e im m e d ia te p a s t president, Rolf F. Bjelland, senior vice president of National City Bank of M inneapolis, and R. Scott Jones, executive vice president of Goodhue County N ational Bank of Red W ing. h 77 M inn esota N e w s Marshall Bank Names Roers Vice President W estern Bank & T rust Co. of M arshall has announced the prom o tion of John Roers to vice presi dent and agricul tural loan officer. M r . R o e rs came to the bank in 1974 as agri c u ltu r a l r e p r e s e n ta tiv e a fte r his g r a d u a tio n from N orth D a J. ROERS kota S tate U ni versity w ith a MS and BS in animal scien ce. H e w as p ro m o te d to a ssista n t vice president and agricul tu ral representative in 1976. These three Issues Have Been Publicly Offered and Sold: 10 YEAR SUBORDINATED CAPITAL NOTES Dated: July 1, 1978 Due: July 1, 1988 $ 2 , 250,000 Elected at Robbinsdale L. (Al) Kalka has been elected a ssista n t vice president of F irst R o b b in s d a le S tate Bank, ac cording to K en neth C. Sheehan, president. M r. Kalka re joins the bank where he began h is a f f i l i a t i o n w ith F irst B ank System in 1970. A. KALKA In 1974 he tra n s ferred to F irst B ank System as a senior credit analyst and in 1976 was prom oted to consumer banking officer. David Siebert Moves Up At Albert Lea Bank D a v id C. S ie b e rt h a s been prom oted to instalm ent loan officer of the F irst N orthw estern National B ank of A lbert Lea. He has served w ith Household Finance Company of H ayw ard, Calif., for one year, as m anager of Industrial Credit of A lbert Lea for five years and m ost recently as m anager of the A lbert Lea Trades and Labor Credit Union for three years. Milwaukee, Wisconsin $ 2 , 5 0 0 ,0 0 0 Whitefish Bay, Wisconsin $ 750,000 ¿Heritage Bank--¿Mayfair Wauwatosa, Wisconsin r I B .C. Z ie g ler and C om pany ^ 1 215 N. Main St., West BencL, Wisconsin 53095 “ A Q u a lit y N a m e In I n v e s t m e n t S e r v i c e S in c e 1 9 1 3 ” ^ __________________________________________________________________ Funeral services were held recently for F. (Francis) E. M urphy, 88, Crosby resident and attorney since 1912. M r. M u rp h y w as vice president of the F irst N ational Bank of Crosby and a m em ber of its board of directors for about 45 years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A IF INTERESTED IN RAISING ADDITIONAL CAPITAL FOR YOUR BANK, CALL MR. V. C. VAN VOOREN, V-P, CORPORATE FINANCE, AT 414-334-5521, OR SEND THIS COUPON TODAY! Name Title Bank Francis E. Murphy r A Phone Address City ___ State Zip N orthw estern B anker , S eptem b er 1978 78 M innesota N e w s State BMA Chapter Elects Officers The M innesota Chapter of the Bank M arketing Association (BMA) recently held its annual m eeting and elected Richard A. Erickson its president. He is assistan t vice president of M idland N ational Bank, promotion of David F. Robbins to senior vice president, loan adm inis tration, and the election of David B. H insverk as credit officer. Mr. Robbins joined the bank in 1960 in a trainee capacity and has served in m any departm ents includ ing being m anager of the personal loan departm ent and the commercial and agricultural loan departm ents. M r. H insverk was w ith Burroughs Corporation for one year prior to joining the Owatonna bank in 1976. He has served as credit analyst and m ost recently as compliance officer. Joins Bemidji Bank F irst National Bank of Bemidji has announced the addition of Dennis L. Schlagel to its staff PICTURED above is Richard A. Erickson, as co m m ercial right, a .v .p ., Midland Natl. M inn eap olis, loan officer. receiving the gavel as incoming pres, of M r. S c h lag e l the M inn . Ch apter of B M A . Lloyd E. came to Bemidji Docken, left, e .v .p ., C o m m u n ity State Bank, B lo om in gto n, is retiring B M A pres. from the Argyle State Bank w here he h ad M inneapolis. Lloyd Docken, execu been cashier sin tive vice president, Comm unity S tate Bank, Bloomington, is retiring ce 1974. Prior to D. SCHLAGEL th a t, he was with BMA president. The following officer nom inations the F irst S tate Bank of Castle Rock, were approved: George L. Michael M inn., for four years. vice president, American National Bank & T ru st Company, St. Paul, first vice president; Julie Cornelius, Wayzata Bank & Trust m a rk e tin g o fficer, F ir s t B a n k Advances 3 Officers System , Inc., M inneapolis, second Nam ed assistan t vice presidents of vice president; Dennis W. Konarski, W ayzata Bank & T ru st Company are vice president-m arketing, National Ted Victor, also City Bank, M inneapolis, treasurer, a d v a n c e d to and C harlotte Lam pe, m arketing m anager of the officer, E astern H eights S tate Bank, real estate loan St. Paul, secretary. departm ent, and New directors elected are: Ralph R o b e rt W e iss, W itgraf, retired m arketing consul also a p p o in te d ta n t and head of his own firm, m anager of the Strategic M arketing; Terry P ra tt, commercial loan vice president and cashier, F irst departm ent. ArN orthtow n N ational Bank, M inne lene Roehl has T. VICTOR apolis; Trum an Porter, vice presi been nam ed a s dent-m arketing, M idway N ational sistan t cashier, instalm ent loans and Bank, St. Paul; T. W illiam Couglan, compliance officer. vice p r e s id e n t, V alley N a tio n a l M r. Victor joined the bank in Bank, N orth M ankato, and Robert 1971. He holds a degree in business J . Koenke, comm unications director, adm inistration from the U niversity M in n e s o ta B a n k e rs A s s o c ia tio n , of M innesota. M r. W eiss began his Minneapolis. banking career in 1970 and joined the Promoted at Owatonna Kenneth E . Wilcox, president of N orthw estern N ational Bank of O w a to n n a , h a s a n n o u n c ed th e Digitized FRASER N o rthfor wes tern Banker, S ep te m b e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 W a y z a ta b a n k in 1977 as a commercial loan officer. He is a graduate of New Mexico M ilitary In stitu te and the U niversity of N orth D akota. Ms. Roehl joined the bank in 1969. R. WEISS A. ROEHL She has a degree in elective studies from the U niversity of M innesota. First Edina National Elects Personal Banking Officers Darrell G. Knudson, president of the F irst E dina N ational Bank, has announced the election of Shari F. Rhode, Susan Lochen and K athryn L. Banon to personal banking officers. Ms. Rhode joined the bank in 1977 from the N orthern City National Bank in D uluth. Ms. Banon joined the bank in December of 1977 from the F ourth N orthw estern National Bank in M inneapolis. M s. Lochen came to F irst Edina in 1972 as a commercial loan teller. Prior to th a t she was with F irst Bloomington Lake N ational Bank as a teller. Women Continue Strike Against W illm ar Bank While eight women employes of the Citizens N ational B ank of W illmar continued their walkout strike against the bank last m onth, attorneys representing the bank and the strikers filed briefs A ugust 14 with the N ational Labor Relations Board hearing judge as required from the prelim inary hearing held June 20. The women have been on s tr ik e since th e w eek b efo re Christm as, 1977. The strike seeks agreem ent w ith the women’s union, W illmar Bank Employees Association, on a new contract. In June, a com plaint filed by the women w ith the U nited S tates E qual Em ploym ent O pportunities Commis sion was settled in a compromise th a t awarded $11,750 in back wages to the women involved, although they said in a statem ent they did not regard the compromise as “ ideal.” The com plaint was lodged w ith the EEOC after the bank hired a m an in the loan departm ent. The women 79 “Operating the whole Correspondent Bank Division is my responsibility. And that means that it’s my duty to see that our correspondent customers are getting the best service possible. “To do that, I have to really understand correspondent banks’ needs, so that my division can tailor-make banking programs that best suit those needs. And I think the best way to stay in touch is by talking with correspondent bankers. T hat’s why I not only spend time out in the field, I also attend most of the regional conventions. The more time I spend with our correspondent customers, the more I learn. “Part of my job is to understand your job. So next time you have an idea, a question or a problem, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis don’t hesitate to share it with me—or with one of our people. Together we can build better Correspondent services that truly serve your needs, and help you serve your customers best.” Correspondent Bank Division Member F.D.I.C. A Full Service Bank ^ d o our job. ’Vbuget the credit N o rth w e s tern Banker, S eptem b er 1978 80 M innesota N e w s alleged they were not given an opportunity to apply for the higher paying job and th a t they had to help train him. A decision from the NLRB hearing judge is expected in the next 30 to 60 days. First of Duluth Elects Assistant Vice Presidents The F irst N ational Bank of D uluth has elected three assistan t vice p r e s i d e n t s in charge of instal m ent loans. They are: Richard J . B in n e tte , in d i rect loans; Lee R. Fadden, di rect, and Donald J . E dstrom , op erations. M r. B in e tte R. J. BINETTE joined the bank in 1961 and m ost recently served as instalm ent loan officer. Mr. Fadden began working as a trainee in 1957. Prior to his promotion he was an instalm ent loan officer. Mr. Ed- L. R. FADDEN D. J. EDSTROM strom , formerly investm ent officer, joined the bank in 1958. Top Executive Changes Announced at St. Cloud Donald N. P arent, president and chairm an of St. Cloud National Bank & T ru st Co., has announced his resignation as president. He will retire from active duty bu t will continue as chairm an of the board. Elected to succeed Mr. P arent as president is A. Robert Jones, formerly vice chairm an of H eritage Bank of Beloit, W ise., of which he was president from 1972-78. Mr. Parent, a 1936 graduate of the law school of the U niversity of M innesota, joined the bank in 1941. He was named legal officer and Digitized forestern FRASER N orthw Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Sells Lakefield Bank Sale of the controlling interest of the F irst N ational Bank of Lakefield has been announced by H. G. Thornburg, former president. The buyers are E arl E. Van Steenhuyse and Douglas M. K ratz, both of Tuscola, 111. Mr. K ratz has been appointed president of the bank and will be moving to Lakefield. D. N. PARENT A. R. JONES A native of Cresco, la ., M r. K ratz director and was elected its president is a graduate of L uther College in in 1966. In 1977, after the death of Decorah, la ., w ith a BA degree in D. J . Fouquette, he also was named business adm inistration and accoun chairman. ting. He was formerly w ith the Mr. Jones is a law graduate of the e x a m in a tio n d e p a rtm e n t of th e U niversity of W isconsin where he Federal Reserve B ank of M inneapo became a lecturer in the law school lis and recently held the positions of while associated w ith the Bank of executive vice president and director Madison. in banks in Tuscola and Gridley, 111. W. T. Richards and Family Settle Lawsuit; Buy Control of Mid America Holding Co. ITIG A TIO N against Mid A m er ica Bancorporation, Inc., M inne L apolis, W. T. Richards, who is 1977 by Irwin Jacobs of Minneapolis to buy control of Mid America. The Richards family increased its owner president and chairm an of the ship from 19% to 49% of the holding holding company, members of the company with loans from American Richards family, American Bancor National Bank. Mid America share p o ra tio n , In c ., S t. P a u l, an d holders Floran and M aureen Heering American N ational Bank & T rust and Alice Thaem art, who altogether Company, St. Paul, apparently has held 26,250 shares, filed suit, been settled by a tentative agree alleging th a t term s of the loan in m ent reached last m onth and effect gave control of Mid America to scheduled to be given final approval American Bancorporation, which in court this m onth. Mid America earlier had been denied by the owns six banks in the Twin Cities Federal Reserve Board in its bid to area and one in H utchinson. buy the holding company. Mr. Richards said the settlem ent The Federal Reserve Bank of provides th a t K. R. Richards and S. M inneapolis investigated the plain T. Richards, his sons, will purchase tiffs’ allegations and reported it all shares of Mid America stock found nothing to su b stan tiate the owned by the plaintiffs and certain charges, thus clearing the American other shareholders, and th a t the National Bank of any wrongdoing. company will extend to all other O th e r s to c k h o ld e rs lis te d as shareholders an offer to purchase up receiving money under the agreed to 110,000 shares of its stock. All settlem ent were Gary Tankenoff and purchases, he said, would be made at m em b ers of his fam ily . M r. $10.00 per share. T hat offer is T a n k e n o ff, a d ire c to r of M id scheduled to expire Septem ber 11, America the p ast five years, resigned unless extended. from the board last m onth. Court records show th a t purchase Court papers also show Mr. of the plaintiffs’ 126,253 shares would Richards and his sons now owe give M r. Richards and his family Am erican National $2,997,000, of 64.4% of the holding com pany’s which $2,647,00o is for loans to buy 850,957 shares outstanding. If all stock, all a t 2% above prime rate. 110,000 shares the firm has offered Additionally, $1,388,783 is to be to buy from m inority holders are borrowed from American N ational to turned in, the Richards family finance the Richards family purchase interest then would be 74 %. of the 126,253 shares involved in the The law suit came after an offer in suit and to pay plaintiffs’ legal fees. 81 South Dakota News R. L. PLOWMAN President J. I. MILTON SCHWARTZ Secretary N ational Bank of M inot where he was senior vice president. He began his career there in 1966 and was prom oted to assistan t cashier and agricultural loan officer in 1968. In 1970 he was prom oted to assistan t vice president, in 1973 to vice president and in 1977 to senior vice president. Armour Pierre Announce Annual Group Meeting Programs H E five regional groups of the South D akota Bankers A ssocia tion will m eet during the week of Septem ber 11. The box below lists dates and locations. W ith one exception, each m eeting will have registration, business m eeting and evening function as listed. A t M o b rid g e th e r e g is tr a tio n an d business m eeting will be a t the M obridge branch of the F irst N ational Bank of Aberdeen, w ith evening functions a t the Country Club. E ach m eeting will offer the same program , as follows: • Registration: 3:00 to 4:00 p.m . at locations as noted above. • B u sin e ss S ession : 4:00 p .m . Group presidents presiding will be: Group 1— W illiam J . H arrington,vice p r e s id e n t, D a k o ta S ta te Bank, Colman. Group 2 —Don Roe, vice president and m anager, Ham lin County Bank, Hazel. G ro u p 3 —D arw in R o ti, vice president, Sanborn County Bank, W oonsocket. Group 4 —Clarence W. Sauer, vice p r e s id e n t, F ir s t S ta te B a n k , M cLaughlin. Group 5—G. Robert Bock, vice president and cashier, American S ta te Bank, Rapid City. R em arks—Ray L. Plowman, p res ident of the SDBA and president, T F irst S tate Bank, Arm our. R em arks—J . I. M ilton Schwartz, SDBA executive m anager. Legislative briefing. D elta D ental Plan of South D akota—Russ H endrix, J . T. Miller Co. Business M eeting and election. • Social Hour: 6:30 p.m . • Dinner: 7:30 p.m . Speaker at 8:15 p.m . a t each m eeting will be Dan Baker of Bulverde, Tex., de scribed in the program as “ a m otivator, hum orist, and people person whose w arm th, wit and wisdom challenges his audiences to find the best within th em selves.” A djournm ent. □ Watertown Bank Names Senior Vice President R. H. W alrath, chairm an of the F irst N ational Bank of W atertow n, has a n n o u n c ed the appointm ent of D o n ald H . Davison as sen ior vice presi d e n t. H e w ill have adm inistra tive responsibili ties and also will be a commercial loan officer. M r. D a v iso n D- H‘ DAVIS0N comes to W atertow n from the F irst 1978 South Dakota Group Meetings Date Septem ber Septem ber Septem ber Septem ber Septem ber 11 12 13 14 15 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Group 5 4 2 3 1 Location Rapid City, Im perial 400 M obridge, Country Club Aberdeen, Sheraton M otor Inn M itchell, Holiday Inn Sioux Falls, M innehaha Country Club Assistant Cashier Named At Mitchell Bank Ronald R. Jenkins, president of the Commercial T rust & Savings Bank, Mitchell, h as a n n o u n c e d the election of P at K urtenbach as a s s is ta n t cashier to serve as a loan officer in the instalm ent loan departm ent. M rs. K urten bach is a 1976 business adm in istration graduate of D akota W esle yan U niversity, M itchell. She joined the bank staff in 1976 as secretary in the instalm ent loan departm ent. Northwest Ag Credit Names Shelley Officer Kathleen A. Shelley recently was named operations and assistan t credit officer of N orthw est A gricul tural Credit Company, Sioux Falls. She joined the N orthw estern N a tional Bank, Sioux Falls, in 1974 as a secretary-receptionist. She moved from the bank to the A g Credit Company in 1975. Named at Sioux Falls C. P. (Buck) Moore, president, has announced the election of B etty Simmons to the board of N orthw es tern N ational Bank, Sioux Falls. A free lance public speaker, M rs. Simmons also is vice president, comptroller and director for Soren son B roadcasting Corporation. Also announced were the following officer appointm ents. A t the G reg ory Branch, Jeffrey G. Johnson was nam ed personal loan officer and Jam es L. B artling, insurance officer. Shirley Noval, Cham berlain Branch, was elected personal banking officer. Claren R itter, M ain Office, was e le c te d o p e ra tio n s o fficer w ith responsibility for the proof and bookkeeping departm ents. N orthw estern Banker, S eptem b er 1978 82 South D a ko ta N e w s A t Rapid City Roundtable 9th Fed’s Mark Willes Warns Inflation Must Be Faced with Harsh Measures N Economic Roundtable con A ducted by the Federal Reserve Bank of Minneapolis in Rapid City last m onth attracted 150 of the top business and financial leaders of the Black Hills area. A rrangem ents were handled by Charles T. Undlin, president, F irst N ational Bank of the Black Hills, who also acted as m aster of ceremonies for the noon luncheon. In his rem arks, 9th Fed President M ark H . Willes warned th a t the root causes of inflation m ust be faced head-on with harsh m easures before progress can be made in reversing the climbing trend of inflation. He advocated a reduction in the grow th of money supply through a reduction in the rate of spending and said some results of this Fed policy are evident. He also advocated higher interest rates. A trem endous loan dem and nationwide continues, he stated, because a borrower paying 10% interest and faced w ith 10% inflation has, in effect, a zero money cost. Similarly, he stated , a bank m aking a loan a t South D akota’s usury lim it of 10% and also faced w ith 10% inflation has a real rate of return of zero. Considering the paym ent of income taxes, th a t rate of return would actually fall below zero, he said. The only way to control inflation, Mr. Willes said, is to m oderate the C. T. UNDLIN M. H. WILLES grow th of money and for Congress to reduce the size of the governm ent deficit and stop catering to special interests. He opposes wage and price controls, statin g there is no evidence they can be successful. O ther speakers during the course of the Economic Roundtable pre sented these points: • Tourism brought 8.3 million out-of-state people to South D akota last year and they spent $300 million. Lloyd Keszler, executive m a n a g e r of th e B lack H ills , Badlands & Lakes Association, said they spent $8.4 million in gasoline taxes and $6.5 million in sales taxes, providing 15,000 jobs for South D akotans w ith a payroll of $60 million. He said the tourist industry in 1978 should be up three to five percent over the 1977 figures. Three areas of concern for tourism , he said, are the possibility of 12-month DON'T FORGET US AT U.S. CHECKBOOK CO. for ALL your Bank Supplies • • • • We have Plenty of “ TIME” for you! AND IT WON'T BE LONG UNTIL OUR SALESMAN WILL BE AROUND! Bank Printing Checks Computer Supplies Office Needs The “WORKS” you need to RUN your bank United States Check Book Company 1201 SOUTH 16TH STREET - OMAHA, NEBRASKA 6 8108 In Nebraska Call 402-345-3 162 Out of State Call Wats Line 1-800-228-9246 N orthw Banker, S eptem b er Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 school periods, the energy situation and the national economy. • This m ay be South D akota’s best year for crops, grass and livestock b u t despite the favorable ag prices, producers are faced with even higher production costs. Joe M inyard, head of the D epartm ent of Animal Science a t South D akota S tate U niversity, said, “ I don’t know if I ’ve seen a better year for crops, grass and livestock. A feed supply is coming th a t’s ju st unreal, and a good feed supply is always a positive influence.” He said agricul ture accounts for one-third of the s ta te ’s to tal gross income, and the livestock industry produces 70% of th a t total. • Land prices have continued their climb, spurred by outside pressures. K ent Rasm ussen, E q u ita ble Life A ssurance Co., said this pressure is coming from farm ers and ranchers from other states. W yom ing ranchers, for example, who have sold their land to coal companies are buying South D akota land, partially for tax purposes, he stated. Typical selling prices range from $80 to $120 an acre. Since it requires 20 to 35 acres to supply one cow, the investm ent in land per cow unit now is $1,600 to $2,400, he related. Farm land in w estern South D akota sells for about $150 an acre and from $800 to $1,000 for p rim e irr ig a tio n acreage. • The average price of a Rapid City home has increased 11 % in each of the p ast two years. I t is now $47,147 compared to the national average of $51,200. The 10% usury limit has kept lenders interested in the home m ortgage m arket. Mr. Undlin said loan dem and a t F irst of the Black Hills continues at a record pace. Rising interest rates elsewhere drain off lendable funds, creating a tightening of money, he added. He said deposits are growing now a t a slower pace than the demand for loans. • W holesaling is Rapid C ity’s la r g e s t in d u s tr y , to ta lin g $250 million a year and still growing. Don Knecht, official of K necht In d u s tries, Inc., said Rapid City whole salers are a complete resource, serving a 250-mile radius. He said m anufacturing also has grown in the city, now totaling $150 million a year. • Ellsw orth Air Force Base has an annual im pact in the Rapid City 83 Som etim es conventional bank money d oe sn’t fit the needs of a growing company. 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Assets over $9 billion. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 84 South D a ko ta N ew s area of $139 million. Captain Robert Priest said the Ellsw orth complex has 6,300 governm ent employes, including 1,000 officers, and there are 800 retirees who have elected to continue living in w estern South D akota. Mitchell Bank Names Top Executive Officers Ron Jenkins has been elected president and chief executive officer of the Commercial T ru st & Savings Bank of M itchell. He succeeds Boyd Knox, who resigned b u t will rem ain as chairm an of the board. Jam es W. Stew art has been elected executive THE addition to the Newell office of the First Natl. Bank of the Black Hills will be com ple ted in October. First National of Newell Builds Addition $215,000 addition to the Newell A Office of the F irst N ational Bank of the Black Hills will be completed by the middle of October, President Charles T. Undlin announced recent ly. The 1,500 square foot addition will double the area on the ground floor. M anager Neil M artin said the lobby area combining the two buildings will be nearly twice th a t of the old bank lobby. The main entrance will be set-back bronzed J. W . STEWART J. A. AHRENDT vice president and tru s t officer and J a m e s A . A h re n d t h a s been advanced to cashier. Mr. K nox’s retirem ent as an active officer culm inates a banking career of 43 years w ith the McCook County N ational B ank of Salem and the Commercial Bank. He has served the M itchell bank for the p ast 13 years, the last 9V2 as chief executive officer. M r. Knox is a p ast president of the South D akota Bankers Association. M r. Jenkins has been with the bank for the p a st 17 years. For the p ast nine years he has been vice president, cashier and director. Prior to joining the bank he worked for three years at the McCook County National Bank of Salem. M r. S te w a rt, fo rm erly field examiner w ith the Federal Deposit N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Insurance Corporation, joined the bank in November of 1961. Mr. A hrendt joined the bank in 1973, was elected assistan t cashier in 1974 and assistan t vice president in 1975. alum inum with stone planters and will m atch new insulating glass windows in the original building. A 24-hour depository will be provided. The entrance to the original building will be used for the insurance office. The total banking area, including the insurance office, will utilize 3,000 feet on the ground floor plus the 1,500 square foot basem ent of the original building. The rear will be paved for employe parking. M ichigan Consolidated Gas Com pa ny of D etroit. Staff Changes Announced At First of Philip Boyd W aara, with the bank since 1972, has been promoted from assistan t vice president and agricul tural representative to vice president The U nited N ational Bank, Sioux of the F irst N ational Bank in Philip. Falls, has announced the election of The bank also has announced the S te p h e n L. additions of M arion A. M att as Byrnes as vice assistan t vice president and Rick president for ex Palacek as assistan t cashier and ternal affairs. In operations officer. addition to his M r. M a tt jo in s th e b a n k ’s new position as agriculture and commercial loan area bank vice presi from the Belle Fourche branch of the d e n t, he w ill F irst N ational B ank of the Black se rv e as vice Hills, Rapid City. He began his president of U ni banking career in 1969. Mr. Palacek te d N a tio n a l S. L. BYRNES joins the bank from the F irst Corporation, p a r N ational Bank of Mitchell where he ent company for the bank and its 19 worked in operations for four years. offices. M r. Byrnes previously served as [Turn to page 86 for d ire c to r of p u b lic a ffa irs for more South Dakota News} Sioux Falls Bank Elects Byrnes Vice President 85 m arketing departm ent in 1972. He was nam ed m anager of the b an k ’s m ilitary banking center in 1974 and assistan t cashier in 1975. M r. Schempp has been w ith the bank since 1972, m o st re c e n tly as adm inistrative assistant. North Dakota News WAYNE A. STROUP HARRY J. ARGUE Pres. Exec. Dir. Garrison Elected at Jamestown Bismarck Schedule North Dakota Group Meetings H E N orth D akota Bankers T Association will conduct its four annual group m eetings October 2-5 using the following schedule: Oct. 2—Legionnaire Club, G raf ton. Oct. 3 —The Steak House, G arri son. Oct. 4—Golden W est Shopping Center, New Salem. Oct. 5 —Eagles Club, Valley City. H arry Argue, NDBA executive director, said the program s will feature a discussion of pending state le g is la tio n a n d N D B A p o ssib le interests; compliance with consumer regulations; a presentation on the new s ta te w id e ra d io an d TV advertising program , which will supplem ent BA A P, and a segm ent devoted to A utom atic Transfer A ccounts, which are authorized for banks effective November 1. Complete program details will be announced within a short time, he added. H. F. Buegel, J r ., chairm an of F irst Bank of N orth D akota, N .A ., Jam estow n, has announced the election of C. S tu a rt Kale to the b ank’s board. M r. Kale is vice president of W estern Gear Corpora tion and division m anager of the Flight Structures Division, head quartered in Jam estow n. Examiner Retires S. B. MAYS B. SCHEMPP m anagem ent trainee w ith N orthw es tern N ational Bank of Valley City and in 1965 became cashier of the F irst National Bank, H oyt Lakes, Minn. He also worked as an auditor for Banco, Inc., Sioux Falls, S.D. Mr. M ays joined the b ank’s Manley E. M alm stad, financial institutions examiner, recently re tired after 28 years with the state. He jo in e d th e D e p a rtm e n t of Banking and Financial Institutions in November of 1965. A ll s ta f f m em b e rs, in c lu d in g former commissioner Gilbert Ellwein, attended a picnic in his honor at Sertom a Riverside Park in Bismarck. First National of Minot Announces 3 Promotions George Johnson, president of the F irst National Bank, M inot, has a n n o u n c e d th e follow ing th re e a d v a n c e m e n ts : T hom as R. S to c k e rt, c a s h ier to vice presi dent and cashier of bank opera tio n s ; S te p h e n B. M ays, assis ta n t cashier, to T. R. STOCKERT a s s i s t a n t v ic e president, and B art Schempp, to assistan t cashier. These changes resulted from the transfer of D. H . Davison, senior vice president, who accepted a position w ith the F irst National Bank of W atertow n, S.D. M r. Stockert began his career as a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PICTURED above is the new hom e of the Farmers and Merchants Bank of Valley City. New Home for Valley City Bank H E Farm ers and M erchants Bank of Valley City recently held T a grand opening celebration in its new building a t 240 3rd Street NW, according to Jerry Zinck, president. The building is 57 by 75 feet w ith a main floor and full basem ent. The officers and secretaries’ desks are on the east half of the main floor, while the teller windows, two drive-up windows with expansion room for two more, walk-up window, vaults, and business machines are on the west side. Also included is a large staff lounge, directors m eeting room, storage vault and other storage space in the basem ent. The bank charter was moved from Dickey to Valley City in Septem ber of 1969. The bank had under $1 million in assets. Current assets are now over $11 million. Wes Severson is the b a n k ’s chairman. N orthw estern Banker, S eptem b er 1978 86 North D a ko ta N ew s Joins Grafton Bank Daniel J . Lessard, president of the W alsh County Bank and T rust Co., Grafton, has an nounced the ad dition of Charles H. (C h u ck ) Johnson to the bank’s staff as a personal loan of ficer. Following graduation from N o rth D a k o ta S tate U niversi C. H. JOHNSON ty, M r. Johnson was associated w ith the F irst Bank of N orth D akota, M inot, beginning as a m anagem ent trainee and advancing to a personal loan officer. Crosby Bank Appoints Assistant Vice President Gary H anisch, president of the Farm ers S tate Bank of Crosby, has South Dakota News . . . [Cont. from page 84] DKQ Handles $15.5 Million Hospital Project Issue An offering of $15,535,000 of South D akota’s H ealth & Education Facilities A uthority Revenue Bonds, Series 1978, for the financing of a m ajor hospital project has been completed by Dain, Kalm an & Quail, In c o rp o ra te d , M in n e a p o lis -h e a d quartered regional investm ent b ank ing firm. The bond offering was made, in part, to provide money for the construction of a three-level parking structure adjoining M cKennan H os pital in Sioux Falls and to pay the cost of acquiring additional electron ic m ed ical e q u ip m e n t for th e institution. The offering was co m anaged by Dain, Kalm an & Quail, supervised by DK Q’s Fixed Income D epartm ent and the bonds were distributed through DK Q’s In s titu tional Bond D epartm ent and retail sales offices. W ith 37 retail offices in 11 M idwestern and Rocky M ountain states, DKQ is one of the largest regional investm ent banking firms in the U nited States. Robert R. M artin, DKQ executive vice president/F ixed Income, point ed out th a t the M cKennan H ospital issue is the 15th tax-exem pt bond N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 announced the promotion of Gaylen M elgaard to assistan t vice president. Mr. M elgaard joined the bank in May of 1976. He began work in the instalm ent loan departm ent and since t h a t tim e h a s a ssu m e d responsibilities in the bond and insurance departm ents. Prior to joining the bank, he worked for Avco Financial Services in M inot for two years. Land Ownership Loans Funded Through State By action of the 1977 Legislature, the Bank of N orth D akota was given the responsibility of m anaging the farm loan portfolio of the Board of U niversity and School Lands, State Land D epartm ent. The transfer of the portfolio to the Bank of N orth D akota was completed on A ugust 20, 1977. On A ugust 1, 1978, over $2 million in new land ownership loans have been funded throughout the state. The portfolio now totals $37,320,712.64. Every county in the state is served by this portfolio. Ground Broken at Belfield A groundbreaking ceremony was conducted recently a t the site of the F irst N ational Bank of Belfield, 227 N. Main. The 55 by 88 foot bank, alm ost twice the size of the present building at 116 N. M ain, is to be ready by M arch 15, according to Harold Lothspeich, bank president. I t will be of cement block construction, faced with native stone. Included will be four teller windows, a d riv e -u p w indow an d a n ig h t depository. The one-story building will have a large, open area for the six officers and two smaller offices, one for the p re s id e n t. T he F ir s t In su ra n c e Agency will have separate quarters in the new facility. financing in South D akota either the Sturgis office, F irst National m anaged or co-managed by Dain, Bank of the Black Hills. Mr. Neely, who joined the bank in Kalman & Quail in the last two and a M ay, 1977, was reared on a ranch half years. near H yattville, Wyo. Elected at Sioux Falls The N ational Bank of South D akota, Sioux Falls, has announced the elections of two new officers: Gayle Bussell, operations officer, H uron, and Jam es Jennings, instal m ent loan officer, Rapid City. Ms. Bussell began her banking G. BUSSELL J. JENNING S Named Trust Officer At Sioux Falls R ic h a rd J . R a h n h as been appointed tru s t officer of the F irst N o rth w e s te rn T rust Company of Sioux Falls, according to A. R. Olson, execu tive vice presi dent. M r. Rahn is a 1978 g radu ate of the U ni versity of South D akota, having R. F. RAHN received both his m asters in business adm inistration and his juris doctorate degree from th a t sc h o o l. career in 1959 and served m ost recently as auditor. Mr. Jennings joined the bank in Ju ly of this year after serving w ith a finance company in Bismarck, N.D . Named at Sturgis Robert M. (Cajer) Neely has been elected an agricultural loan officer at Squillace Elected to Investment Council Alex Squillace, vice president of U nited N ational Bank, Sioux Falls, has been elected to a five year term on the South D akota Investm ent Council. 87 First National of Denver Announces Elections Colorado News J. ROBERT YOUNG G. L. SCARBORO Pres. Basalt Exec. Mgr. Denver Independent Bankers Will Meet in Vail The Independent Bankers Associ ation of Colorado annual convention will be held Septem ber 21-23 a t The M ark in Vail. Presiding will be Daryl W. Biggerstaff, president of the association and president of the Em pire N ational Bank in Canon City. Slated to succeed Mr. Biggerstaff in the presidency is Louis F. Bein, chairm an and president of The B erthoud N ational Bank in Berthoud, who has served the p ast year as association vice president. Jam es P. T h o m a s, D e n v e r, is e x e c u tiv e m anager of the association. The m eeting will open with a convention dinner Thursday eve ning, Septem ber 21. D uring the business sessions on Friday, registrants will be addressed by Ivan D. F ugate, president of the Independent Bankers Association of America and chairm an and president of W e ste rn N a tio n a l B a n k of Denver. A special guest speaker will be the new chancellor of the U niversity of Denver, Ross P rit chard, who will also address the c o n v e n tio n . T h ere w ill be an extended discussion of the new Independent S tate B ank of Colorado, now in form ation and aw aiting approval for FD IC coverage. There will be a delegates luncheon at noon. On Saturday m orning, Laurel Quirk of Am erican Home A ssurance Co., New York, will speak on “ E x to rtio n ” and then conduct a question and answer period. This will be followed by the convention golf tourney, which concludes the annual convention. Promoted at Boulder J . Patrick M cDuff has been prom oted to vice president in charge of the commercial loan departm ent at N ational S tate Bank of Boulder. M r. M cDuff has been with the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis bank for six years, m ost recently as assistan t vice president in comm er cial loans. He received a BS degree in finance and commercial banking from the U niversity of A rkansas. Central Bank of Denver Names Vice President William C. Tum elty has been promoted to vice president in the c o rre sp o n d e n t banking division of Central Bank of Denver. He joined the bank in O c to b e r of 1972 as an opera tions trainee and became a corre spondent b ank ing officer in 1974. He was W. C. TUMELTY, JR. promoted to assistan t vice president in 1975. Mr. Tum elty was graduated from Georgetown U niversity, W ashing ton, D.C., with a BA degree and received his m aster’s degree in business from the U niversity of Denver in 1972. J . Rodney Uhrich, executive vice president, asset and liability m an agem ent of the F irst N ational Bank of Denver, has been elected to the b ank’s board. Thom as E. Buchanan has been advanced to vice president in the correspondent bank dep art m ent. Mr. Uhrich joined the bank in 1956 and became a vice president of the correspondent bank departm ent in 1964. He was senior vice president in charge of th a t departm ent from 1971-74. In 1975 he becam e president of F irst N ational Advisers, Inc., a subsidiary of F irst National Bancorporation. Mr. Buchanan joined F irst of Denver in 1971. In 1976 he was named an officer in the correspon dent bank departm ent. He has served as head of the departm ent’s m etropolitan division since 1976. Announced at Broomfield U nited Bank of Broomfield has announced the election of I. K. Hoyle as chairm an of the board and th e a p p o in tm e n t of tw o new directors, William Greenewald and Alvern K. Gardner. Mr. Hoyle replaces Roger D. K night, J r., who retired as chairm an in June. He has been president and director of the bank for the p ast 20 years. He will continue as president. Mr. Greenewald is owner and operator of H eights Hardw are Com pany. Mr. Gardner is treasurer and m anager of Central W atering Com pany, Inc. Announce Stock Split The board of directors of The F irst To Head New Arvada Bank National Bancorporation, Inc. Den G arland L. Anneler has been ver, has declared a two-for-one stock named president of U nited Bank of split effected in the form of a 100% A rvada, according to Frank E. stock dividend out of the authorized B latter, chairm an of the new bank. and unissued shares of common The bank, which will be located stock of the corporation, payable on near the intersection of W adsw orth A ugust 25, 1978, to all shareholders Boulevard and 80 th Avenue, is of record of common stock on scheduled to open in October. I t will A ugust 8, 1978. raise the num ber of banks in the The board also declared a regular United Banks of Colorado, Inc., quarterly cash dividend on the organization to 19. common stock of 26 cents per share A veteran of more than 20 years in after adjusting for the additional banking, Mr. Anneler joins the bank shares (equivalent to 52 cents on the from U nited B ank of Littleton where previously outstanding shares) - an he was vice president/consum er increase of 15.6%. The dividend is services and personnel. He also has payable Septem ber 18, 1978, to all been associated w ith the U nited shareholders on record on Septem ber Bank of Denver and F irst Bank and 1, 1978. T rust of B righton. N orthw estern Banker, S eptem b er 1978 88 Colorado N ew s To Head LaSalle Bank Ed Saboe is the new president of United Bank of LaSalle, succeeding Norm an M. Dean, who will serve as president and chairm an of the U nited Bank of Greeley. Prior to this appointm ent, Mr. Saboe was senior vice president of the Greeley bank. Before joining U nited Banks in 1972, he was vice president of the Commerce Bank of St. Charles and Commerce Bank of Kirkwood, both in M issouri. First National Advisers Names W illiams President Bryan J . W illiams has been elected president of F irst National Advisers, Inc., a subsidiary of F irst National Bancorporation. He suc ceeds J . Rodney Uhrich. F irst N ational Advisers, Inc., performs under m anagem ent con tra c t w ith F irst of Denver M ortgage Investors. Mr. W illiams began his banking career in 1959 with U nited California Bank, Los Angeles. He joined F irst of Denver in 1962 and moved to F irst National Advisers in 1973 as vice president. He became executive vice president in 1973. Mr. Uhrich, who was named executive vice president, asset and liability m anager for the F irst National Bank of Denver recently, will serve as chairm an of F irst National Advisers. United Bank of Denver Announces Appointments U nited Bank of Denver has announced the appointm ents of Lyle D. Proctor to cashier and Linda R. Barker to vice president. Mr. Proctor replaces Robert W. Merrick, vice president, who will devote full tim e to his duties as property m anager and insurance adm inistrator. In 1961, Mr. Proctor joined UBD as a junior teller. He was named u data processing officer in 1970 and transferred to the United Bank Service Company in 1972. In 1973, he rejoined UBD and was nam ed an operations officer in 1974. He was appointed to assistan t vice president in 1975 and vice president in 1977. Mr. Proctor is a graduate of the U niversity of Denver. Ms. Barker, a graduate of the N orthw estern Banker, Septem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 America and chairm an and president of the W estern N ational Bank in Denver. O ther board mem bers are: Louis F. Bein, chairm an and president, B erthoud N ational Bank, Daryl W. B iggerstaff, president, Em pire National Bank, Canon City; Richard W. Ducic, president and cashier, Bank of Basalt; Frederick A. E sgar, president, S tate Bank of Wiley; Thom as E. Green, president, F irst N ational Bank, W estm inster; Earl F. Lehigh, president, The Pueblo Bank & T rust Co., and George T. Sweeney, chairm an, Bank State Banking Board OKs of Applewood, W heatridge, who is Independent State Bank also legal counsel to the new bank. The Colorado state banking board The chief executive officer of the has approved the application of bank, when selected, also will be Independent S tate Bank of Colorado named to the board. for a bank charter. An application for FD IC insurance has been made, United Bank of Monaco according to Jam es P. Thom as, Names Vice President executive m anager of the Indepen C h a rle s A . O aks h a s been dent Bankers Association of Colo promoted to vice president of the rado, and it is hoped to open the United Bank of Monaco. bank in the first or second quarter of Mr. Oaks, formerly assistant vice 1979. Mr. Thomas said organizers of the president, has been with United bank presently are reviewing appli Banks since 1959. He also is cations for m anagem ent and opera assistan t secretary of the board of tions personnel. The state banking directors. board set a requirem ent of $1,250,000 in capital accounts with $500,000 in Elected at Paonia capital and surplus each and the Ray R. Anderson has been elected balance in undivided profits. vice president and cashier of the This is the second such indepen Paonia S tate Bank. He succeeds dent bank in the nation to be Robert L. Larson who is planning a o rg a n iz e d . T he f ir s t w as th e business of his own. Mr. Anderson Independent S tate Bank of M inne served as m anaging officer of the s o ta , c h a rte re d in 1975. T he M initare S tate Bank and Bank of M inneapolis-based bank has approx Gering, both of N ebraska prior to imately $5 million deposits. Other moving to Colorado. similar banks are in various stages of The Paonia S tate Bank opened its investigation or form ation in nearly doors on A ugust 15, 1977. I t passed a dozen states. Mr. Thom as said $3 million total assets on A ugust 2, representatives of m any of these 1978. other interested Independent Banker associations have visited the Colo rado office seeking inform ation on Changes at N orthglenn E. C. V andagrift, J r ., recently th a t new bank. Stock in the Independent S tate was elected chairm an of The F irst Bank of Colorado is held by N a tio n a l B an k of N o rth g le n n , individual bankers and directors and according to Wesley J . W atson, one bank holding companies. No president. Mr. V andagrift replaces more th an 4.9% of the stock m ay be Phillip J . Hogue, who resigned to held by an individual or a group of devote more tim e to his position of individuals representing the same executive vice president of the F irst National B ank of Denver. bank, M r. Thom as noted. A F irst of Denver vice president, A building located a t 1635 P latte Street in Denver is being remodeled Mr. V andagrift is in charge of four to house the Independent S tate commercial banking divisions. W illiam G. W endt was elected to Bank of Colorado. Elected chairm an of the new bank the board. He is vice president and was Ivan D. F ugate, president of the head of consumer banking at F irst of Independent Bankers Association of Denver. U niversity of M issouri w ith a bachelor of journalism degree, joined U nited Bank of Denver in 1974. She was named a public affairs officer in July, 1975, a comm unications officer in February, 1976, and an assistan t vice president in July, 1976. O th e r new a p p o in tm e n ts a n nounced are: Gary D. W atkins and Gary J . Roberts, assistan t vice presidents and Jam es F. Kanaley, operations officer. 89 Cutting a clean, sw ift passage through the barriers of tim e and space. The correspondent cash management services of First of Denver. L Innovator, Implementor, Coordinator, Interpreter, Consultant, Problem Solver. The definitive correspondent banker. The First National Bank of Denver P.0. Box 5808 Denver, Colorado 80217 (303)893-2211 Multidimensional Commercial Banking Member First National Bancorporation N o rth w e s tern Banker, S ep te m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 90 Sheridan are listed on the applica tion. The organizers have purchased a block of land a t the com er of N orth M ain and U .S. 16. The bank will be started in a tem porary building, while a new building is being constructed. Wyoming News E. J. HAINES Pres. Laramie M. C. MUNDELL Secy. Laramie WBA Names Committee Members, Chairmen H A IR M EN and members of C com m ittees for the W yoming Bankers Association for the coming year have been appointed. The comm ittees and their chairmen are: Legislative: Robert W. Miracle, president, W yoming N ational Bank, Casper. T rust: Robert J . W yatt, vice president and tru s t officer, Bank of Commerce, Sheridan. Instalm ent Loans: Craig Ockers, assistan t vice president and m ana g e r, A m e ric an N a tio n a l B a n k , Cheyenne. A u d it: J o h n N ic h o lso n , vice president, F irst W yoming Bank, N .A ., Laramie. Resolutions: Robert W. McBride, e x e c u tiv e vice p re s id e n t, F ir s t N ational Bank, Buffalo. Agriculture: Ray A. W ardell, executive vice president, Moorcroft S tate Bank. A d v iso r to S ta te T re a s u re r: C lifford E . K irk , se n io r vice president and cashier, F irst National Bank, Casper. Nom inating: Orin G. Geesey, president, F irst W yoming Bank, N .A ., Kemmerer. A thletic Association: John W. Easterbrook, instalm ent loan m ana ger, F irst N ational Bank, Laramie. First National of Casper Announces Promotions H enry A. H itch, president of the F irst N ational Bank of Casper, has announced the promotions of three employes in the real estate loan d e p a rtm e n t. T h ey are: E la in e Hoshaw and Charles J . Ezell, J r., loan officers, and Nellie R. Helms, closing officer. M rs. Hoshaw has been w ith the bank for 20 years in various positions in the real estate loan departm ent. Mr. Ezell joined the bank last February as a real estate N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis loan analyst. M rs. Helms joined the bank in 1975 as a loan closer and closing supervisor. Wyoming National of Casper Promotes Paul Christensen Paul A. Christensen has been promoted to executive vice president of the W yoming National Bank of Casper, accord ing to Robert W. M iracle, p r e s i dent. Mr. C hristen sen joined the bank in 1972 as vice president of c o rre sp o n d e n t P. A. CHRISTENSEN banking. In 1976 he was prom oted to senior vice president of the loan division and member of the executive committee. A native of Iowa, he attended Iowa S tate U niversity, Ames. Mr. Christensen succeeds A nthony F. H askey who recently retired after 40 years in banking. Mr. H askey attended M issouri Business College in St. Joseph and worked to pay for his education at the Tootle-Lacy N ational Bank. He then spent two years as a bank examiner for the U .S. Treasury D epartm ent. He joined the Casper bank in 1948 as assistan t cashier and comptroller. Charter Approved For 3rd Buffalo Bank By mid-fall of this year a third bank will be in operation in Buffalo. The S tate E xam iner’s office has announced approval of the applica tion for Security Bank, a state bank. Those seeking the application include L. V. Stafford, Leon Keith, Karl Bergner, Dr. John Knebel and John Iberlin. In addition, Robert Ferril and Hom er Scott, J r ., of Appointed at Sheridan F ir s t W y o m in g B a n k . N .A ., Sheridan, has announced the ap pointm ent of Stella M. Barker as a new director. M rs. Barker, a lifetime resident of Sheridan, is a public accountant. Cheyenne Bank Announces Top Executive Changes The board of the American National Bank of Cheyenne has announced the election of John C. Macleod to president and chief executive officer. D. L. Day, J r ., was elected vice chairman of the board. R. J. Sorensen, p ast president and 51-year employe, will continue as vice chairm an. M essrs. Day and Soren sen will rem ain active officers in the bank on a daily basis. Mr. Macleod, a native of Casper, joined the bank in M arch of 1978 as executive vice president and chief operations officer. Prior to his move to Cheyenne, he was president of the G uaranty Bank & T ru st of Denver. Mr. Day had been president and chief executive officer of the bank since Septem ber of 1973. Born and raised in Casper, he began his banking career in Laramie and gained experience in Riverton and Denver. Mr. Day continues as president of Trans-W yom ing Bankshare, Inc., and chairm an of the American Bank of Casper. Also announced were the prom o tions of Thom as F. Scranton to vice president and m anager of the commercial loan departm nt and Edwin L. Fisher to vice president and m anager of the real estate departm ent. Mr. Scranton has been loan officer and assistan t vice president since 1975. He was a bank examiner for the Comptroller of the Currency in Denver before joining the bank. Mr. Fisher began his career at the bank in 1974. M ost recently he was assistan t vice president. 91 We make big ideas happen. With specialists who know your territory. When you bring your correspondent needs to Colorado National Bank, you’ll be working with people who understand the problems and recog nize the opportunities in your territory. Our specialists have the authority to make decisions fast—and provide the innovative service that you have to have in money markets that change every day. Whether you need an overline, a loan to start a new bank or acquire one, trust service, cash letter analysis or daily cash management assis tance-give our specialists a call. A. Tobie Safer, Administrative Assistant. B. Bill MacMillan, Assistant Vice President, Eastern Colorado. C. Dave Fowler (1. ), Correspondent Officer, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wyoming and other financial institutions; Jon Clark, Correspondent Officer, New Mexico and Western Colorado. D. Lance Johnson, Vice President and Manager. You’ll find our correspondent team backed by top management commitment—to channel the full resources of Colorado National Bank—to make your ideas come to life. Give us a call at (303) 893-1862. We make big ideas happen in correspondent banking. OLORAD ATIONA I Member FDIC N o rth w e s tern Banker, S ep te m b e r 1978 92 Jeffrey City State Bank Names Vice President L o rra in e J . E llis h as been promoted to vice president of the Jeffrey City S tate Bank. She joined the bank when it opened its doors last year and last A ugust was promoted to cashier. M rs. Ellis began her banking career w ith Central Bank and T rust in Lander in 1973. Heads Rock Springs Bank Rodger A. W eidner has been elected president and director of the F irst Security Bank succeeding Ja y E. Haskell who has been transferred to Salt Lake City to m anage a F irst Security S tate Bank office. A Montana News W yoming banker since 1963, M r. W eidner has experience in all phases of bank operations and m anagem ent, Heads Gillette Bank Ted E rn st has been elected president of the W yoming National Bank of Gillette replacing Hale Kreycik who is the new executive vice president of the Converse County Bank in Douglas. Mr. Kreycik had served as the b an k ’s president since its incorporation in 1974. Formerly executive vice president of the F irst N ational Bank of Gillette, Mr. E rn st has lived in the area since 1972. Previously he served in several positions with the F irst National Bank in Laram ie, and in M idstate Bank of M ontana, the com pany’s 15th banking affiliate, began operation in Lewistown July 17, 1978. Two Men Purchase Big Timber Bank Claude R. Erickson and Bruce A. Erickson have purchased controlling interest in the F irst S tate Bank of Big Timber. Both men were elected to the board of directors and Bruce A. E ric k s o n h as been ele c te d chairm an of the board. No staff changes are planned and Donald R. Powell will continue as president. Claude R. Erickson is president and chairm an of the F irst Security Bank in Livingston, M ont. Bruce A. Erickson is vice president and director of th a t bank. Bruce Erickson will make frequent trips to Big Timber for consulting and advisory work with bank personnel. Bank of Montana System Raises Quarterly Dividend The Bank of M ontana System has raised the regular quarterly dividend rate, according to Charles W. Rubie, chairm an and chief executive officer of the m ulti-bank holding company headquartered in G reat Falls. The new rate will be in effect for a dividend payable A ugust 18, 1978, to shareholders of record on A ugust 4, 1978. The increase is equal to 4 cents per share annually and the total dividend is $1.28 per share. Mr. Rubie also reported th a t N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1965 was named a national bank examiner. In 1967 Mr. E rn st was vice president of the American National Bank of Cheyenne. Elected at Billings Richard A. Kjoss, president of Security Bank, Billings, has announ ced the election of A nthony A. Chavez to data processing officer. Mr. Chavez joined the bank in Septem ber, 1977, as a program m er analyst. He presently serves as m anager of program development in the data processing departm ent. BAI Compiles Report on Fed Membership, Pricing Bank A dm inistration In stitu te officials are studying a prelim inary report on the pricing of check collection services for large corres pondent banks and estim ated prices of such services from the Federal Reserve System . The report is a result of a study conducted for BAI by the consulting firms of A rth u r D . Little, Inc. and Littlewood Shain & Co. A sim ilar study is underw ay by the American Bankers Association (A ugust, pg. 12, “ ABA Studies Im pact of Fed Pricing of Services’’). W ayne Lewin, senior vice presi dent of BAI at Park Ridge, 111., headquarters, told the N orthwest tern B ank er last m onth, “ We have received the prelim inary report from Kemmerer Bank Names Kvenild President William J . Kvenild has been p ro m o te d from e x e c u tiv e vice president to president and director of the Fossil B utte N ational Bank, Kemmerer, according to Em il A. Zebre, chairm an. Mr. Zebre formerly served as chairm an and president. Kenneth C. Turrentine has joined the bank as vice president. He comes from the G uaranty Bank and T rust Company in Denver, Colo. the A rthur Little firm and are analyzing the results. I t is certainly a complex issue and we expect to find, as the ABA has, th a t this question will take m uch longer to resolve than originally expected.’’ Mr. Miller said “ the proposal put forth by Fed Chairm an William M iller is c o n s tr u c tiv e .” (T h a t proposal is aimed at reversing the erosion of Fed m em bership by m andating th a t reserves for all banks in the nation be carried with the Fed, services priced accordingly and interest paid on reserves. T hat proposal has m et with Congressional opposition on several fronts.) Mr. Lewin observed, “ I t doesn’t look like Congress will w ant to act precipitously.’’ Regarding the BAI study, Mr. Lewin commented “ there are indica tions in the brief tim e we’ve had to review it th a t the question of Fed services and pricing flow from the Fed membership question, not the reverse. It seems the Fed would need to determ ine how to handle reserves and pay interest on them , then address the services to be offered and their pricing. A significant num ber of smaller banks are using corres pondent banks instead of the Fed, so service is not the question. It is the same with big banks. “ U n d e r th e la te s t p ro p o sa l, depositary institutions w ith $100 million deposits or more would carry reserves w ith the Fed. This im pacts the correspondent banks, who at th a t point m ust reassess services and pricing.” 93 conservation. He indicated th a t the Fed’s m onetary policy should be more consistent and th a t America m ust cut spending, as well as taxes if we are to control inflation. Looking at the m arket, he said common stocks remain undervalued. He referred to Wall Street as a place made up of nervous nellies who have predicted 11 out of the last four recessions. MBA O FFIC ER S— John F. Cadby, exec, v.p.; Jerry Wallander, v.p. & treas.; Bill Tait, imm ed. past pres.; Paul D. Caruso, pres., and Robert Burke, pres.-elect. Montana Bankers Elect Paul D. Caruso AUL D. Caruso, president of the P F irst Security Bank of Helena, was advanced to president of the M ontana Bankers Association at the 75th annual convention held at Big Sky last m onth. Mr. Caruso succeeds W. R. “ Bill” Tait, president of the F irst N ational Bank, Anaconda and B utte. A dditional MBA officers include: president-elect, Robert Burke, presi dent, The F irst N ational M ontana Bank of M issoula; vice president & treasurer, Jerry W allander, presi dent, F irst S tate Bank of Froid, and John F. Cadby, executive vice president. Mr. W allander, a former state legislator, is the new member of the team . Delegates defeated a series of a m e n d m e n ts t h a t w ould have increased the num ber of groups in the MBA from the present seven. Additional groups would have been formed for areas around Billings, G reat Falls, and possibly M issoula/Kalispell. Key Speaker Key speaker at the 75th conven tio n w as L ouis R u k e y se r, a well-known weekly host of the TV program Wall Street Week. Long known for his ability to combine wit and wisdom. Mr. Rukeyser said there is a “ hopeful sign th a t capitalism m ay be coming back in sty le .” He suggested th a t the real answer for our energy problems is on the supply side and not in Legislation Pending before com m ittees of the M ontana legislature is a proposed bill to repeal the tax on bank shares and ad ju st the general corporate income tax. The legislature comes back in session in Jan u ary , 1979. A panel on NOW accounts, headed by Roger Ulrich, president, F irst S tate Bank, M alta, emphasized the im portance of developing accurate and complete cost analysis before prom oting a NOW account or autom atic transfer plan. Fred W hite, p r e s id e n t, D a rtm o u th N a tio n a l Bank, D artm outh, New H am pshire, and panelist, said th a t a NOW account costs from 9% to 11%, based on paym ent of 5 % interest and 4% to 6% operating costs. He indicated th a t it m ight be best to let your com petitor have the low balance account by institu tin g a realistic minimum balance plan. Adding a change of pace, Dr. Robert J . Samp, health educator from the U niversity of W isconsin, gave delegates advice on ways and means to assure good health. He suggested m oderation, indicating t h a t if m o st people c u t o u t cigarettes, alcohol and sex, they would next be cutting out paper dolls! The 1979 convention will be held in June at Sun Valley, Idaho. □ RECOGNITION — M. E. and Bill Tait receive special gifts for their year of service to M BA. R I G H T — President Tait reviews notes wit Louis Rukeyser, keynote speaker. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 94 M o n ta n a N ew s Photo Report of Montana’s 75th Convention AG PANEL_Marvin Rohn v d O m a h a N a t ’l B k .; Leland Cade, editor, M on ta n a F arm er-S to ckm an, Great Falls, M. E. Eddleman, M o n ta n a Wa«“ aR e " ' E E . ¿ o r d e T a n d Wayne Gibson, v .p .. Firs, S e c ^ K . , <— or). m G H T - N O W « o u n t a w j r e discussed by: A. Dean Heasley, pres., Century N a t ’l. Bk., Rochester, PA.; Roger Ulnch, pres., First St. Bk., M alta, and Fred A. W hite, pres., Dartm outh N a t ’l. Bk., Da rtm outh , N . H . LEFT— Joe Long, Billings, and Gene and Beverly Lalonde, Richland N a t ’l. Bk., Sidney. RIGHT— Marty Olson pres., Farmers St. Bk., Conrad, and wife, Phyllis, visit with Gene Aronsen, inv. o ff., Marquette N a t ’l. Bk., M inneapolis, and Pat Kirby, pres., Basin St. Bk., Stanford. EFT— Gene Teach, pres., M o n ta n a Bank, Great Falls; Bob Sipple, sr. v.p., and Bill Langford, v.p., both from American N a t ’l. Bk & r. Co ., St. Paul. RIG HT— Jim and Mary Gowan, v.p., First N a t ’l. Bk ., St. Paul, visit with Dr. Robert J. Samp, speaker. The medals are ash trays used during sessions. N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 M o n ta n a N ew s 95 LEFT— Eugene Coombs, v.p., and Dick Kjoss, pres., both of Security Bank, N . A . , Billings, and Jack Tankersley, c o m m . bk. off., Co ntinental Bank, Chicago. RIG HT— Jim Bennett, pres., First Citizens Bk., Billings; Kenneth Wales, v.p., First N a t ’l. Bk., Minneapolis; Bob Thiesen, pres., First St. Bk., Forsyth, and Steve McSweeney, v.p., First State Bank, Fort Benton. LEFT— Mrs. E. G. Det Balsam, First N a t ’l. Bk., Miles City, and Bernie and Claude Erickson, pres., First Security Bank, Livingston. CEN TER— George Leland, pres., Western M o n ta n a N a t ’l. Bk., M issoula, and A. E. Dutch Omdahl, pres., FirstBank, West Billings. RIG HT— Frank Farrar, dir., Citizens First N a t ’l. Bk., W o lf Point, and Bruce Erickson, v.p., First Security Bank, Livingston. LEFT— Addle and George Johnson, c h m n ., First Sec. Bk. of Glendive, and Joanne and Dick Holmes, a .v .p ., M arquette N a t ’l. Bk., M inneapolis. CEN TER— Don C. Frisbee, pres., Pacific Power and Light, Portland, Ore. RIG HT— Connie Haselbush, First N a t ’l. Bk., Denver, and Frank Abersfeller, v.p., Ranier N a t ’l. Bk., Seattle. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s tern Banker, S eptem b er 1978 96 W e can pul EFT to work for you. Now. Our Instant Cash services package includes the card and a whole lot more. U.S. National can make it easy for you to become a part of today's growing electronic funds transfer (EFT) environment with a complete Instant Cash services package. The package includes the plastic card, the necessary equipment, the processing system, technical support and back-up, even a ready-to-go marketing program. And, we're ready to put all . . . or part of it ... to work for you now. To learn how you can make the most of our Instant Cash services ... to make your account relationships more valuable, to maintain your bank's identity as a leader in your market and to compete more effectively; call a U.S. National Correspondent Banker today at 402/536-2072. We're ready to go to work for you now. US National Bank Of Omaha Member FDIC N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 97 m ajoring in finance and economics. He had been w ith the Lincoln bank for the p ast seven years. Nebraska News KARL E. DICKINSON R. E. HARRIS President Exec. Mgr. Two Promotions Announced At South Sioux City Lincoln Lincoln NBA To Sponsor Four Investment Seminars OUR m eetings titled “ M anaging Your B ank’s Investm ent P o rt folio’’ have been scheduled in late Septem ber and early October by the N ebraska Bankers Association. The m eetings are sponsored by the NBA com m ittee on bank m anagem ent and have been arranged by a subcom m it tee chaired by Ross Hecht, senior vice president of the N ational Bank of Commerce, Lincoln. Each m eeting will s ta rt about 1:30 p.m ., conclude about 4:30 p.m ., and will be followed by a cocktail reception. The m eetings are sched uled a t the following locations: Sep. 27—Scottsbluff Inn, Scottsbluff. Sep. 28—Holiday Inn, Kearney. Oct. 11 —Villa Inn, Norfolk. Oct. 12 —Hilton Hotel, Lincoln The topics to be covered and the speakers for each will be: • Policy D evelopm ent—M aturity S tructure/E xposure: Robert E. L ar sen, vice president, The Omaha N ational Bank, Omaha. • Term s, Definitions and Proced ures — Mr. H echt. • A nalysis, Credits and R atings — William J . Feser, vice president, F irst N ational Bank of Omaha. • M echanics and Accounting — Donald E. Dworak, executive vice president, Packers N ational Bank, Omaha. • Portfolio S trategy, Tax Ram ifi cations — Dwain C. Carlson, vice president, F irst National Bank, Lincoln, and John C. Nelson, vice president, U nited S tates N ational Bank of Omaha. • Sum m ary — Roy O tte, vice president, N ational Bank of Com merce, Lincoln. F Named at Hooper Richard D. Ryan of W althill has been appointed vice president of the F irst N ational Bank of Hooper. M r. Ryan has 19 years of banking https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis experience and has worked as a bank examiner for 10 years. He replaces Dale Linin who recently resigned to join a M issouri bank. Mason City Bank Has New Owner-President Michael J . Sullivan, 32, is the new owner-president of the M ason State Bank, M ason City. He replaces John A. Turner who is retiring b u t will remain with the bank for a few m onths. Mr. Sullivan formerly was with the F irst National Bank and T rust Co. of Lincoln. He attended the U n iv e rs ity of N e b ra sk a -L in c o ln , Dan Pranger and Richard P ra tt have been elected assistan t cashiers of the N ebraska S tate Bank of South Sioux City. Mr. Pranger joined the staff of the bank and the W akefield N ational Bank in 1975 as an agricultural representative. He has been in the operations departm ent of the N ebras ka S tate Bank since 1976. Mr. P ra tt joined the b an k ’s operations departm ent in Ju ly of 1976 and in November of th a t year transferred to the instalm ent loan departm ent. Plans New Building Don Ram sey, president of the S tate Bank of M erna, has announced plans for a new bank building. The structure will be about 40 by 60 square feet w ith stone and glass, tiered facing. I t will have a drive-up service window and will incorporate solar heating units. PICTURED above is an architect’s sketch of the Gothenburg State Bank and Trust Co., now under construction. Construction Begins on Gothenburg Bank has begun on a new banking facility for the G othenburg S tate Bank and T rust Co., according to M att W illiams, chairm an and chief executive officer. The building is designed to make use of the existing tw o-story building. Completion is expected in the spring of 1979. The 9,000 square foot building will double the existing space and will include loan offices, remodeling of the teller windows and additional vault and storage space. The contem porary building will be o n s t r u c t io n C covered w ith red brick on the main floor exterior w ith the readdition of arched windows. The second floor e x te rio r w ill be an an o d ized bronze-colored alum inum panel fac ing. This level will be used mainly for storage. In addition, new sidewalks, curbs and a drinking fountain will be included. Geller Design of Lincoln planned the reconstruction. Paulsen Building and Supply, Cozad, was awarded the construction contract. N orthw estern Banker, S eptem b er 1978 98 1976 (now N ebraska S tate Bank) and has served as instalm ent loan officer and collections supervisor. *** Neil R. Barna has been named vice president and cashier at the Ames Bank. He also serves on the board of directors. The bank also has appointed J. Thomas Broderick loan officer and Mary C. Croft assistan t cashier. *** H E appointm ent of Emmitt W. Mitchell to personnel m anager has been a n nounced by Don ald J. Murphy, chairm an of The U n ite d S ta te s National Bank of Omaha. M r. M itc h e ll p re v io u sly s e r ved as m anager of s ta ffin g a t E. W. MITCHELL N o rth w e s te rn N a tio n a l B an k in M in n e a p o lis, Minn. A native of Guthrie, Okla., he completed his undergraduate work in history at Langston U niversity, Langston, Okla., and did graduate work in personnel m anagem ent at the U niversity of M ichigan and the U niversity of M innesota. T *** Perry S. Francis, president of the Wes, Sr. V.P. Southw est Bank of Omaha, has announced the election of two associate directors of the bank: John S. Francis and M. Brian Schmid. Mr. Francis has been vice president of the R alston Bank for the past 11 years. Mr. Schmid, attorney with the law firm of Schmid, Ford, Mooney, Frederick & Caporale, also is a director of the F irst National Bank of Bellevue. *** David P. Thalken has been promoted to vice president of N ebraska State Bank of Omaha. Mr. Thalken was graduated from W ayne S tate College in 1964. He has banking experience as an instalm ent loan officer and collection m anager for Council Bluffs Savings Bank for five years and a collections officer with F irst W estside Bank, Omaha, for two years. Mr. Thalken joined the Cornhusker Bank of Omaha in May I proudly introduce our newest Correspondent Associate, Tom Grove who will be working with me and “Serving...at your pleasure.” Tom, V.P. Working with this Big Nebraskaland PACKERS National Bank 402/731-4900 Omaha, Nebr. 68107 Member FDIC N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis *** The F irst W estroads Bank has an n o u n c ed th e follow ing s ta ff changes: William Henning has been named assistan t vice president in charge of instalm ent loans and Dane Erichsen has been named assistan t vice president in charge of opera tions. Bayard Bank Stock Bought by Investors Wes Bowen 24th & 0 • William H. Keeffe has been elected vice president of the American National Bank, according to John M. Shonsey, chairm an. Joining the bank Ju ly 31, Mr. Keeffe heads the le n d in g d iv isio n , a s su m in g th e duties formerly held by Robert L. Zabawa prior to his election as president of the bank earlier this year. A 20-year veteran of the banking industry, Mr. Keeffe had been the vice president-commercial loans for a m ajor downtown Omaha bank, and also was active in th a t b ank’s industrial development program . He c u rre n tly is p re s id e n t of th e Nebraska-W estern Iowa chapter of the National Association of Credit M anagem ent. A group of investors headed by Jam es D. K rantz of Bayard has purchased all of the Jam es D. Stockwell family stock in the F irst N ational Bank of B ayard and the Bayard Insurance Agency. The two firms were formerly owned and operated by the F irst National Investm ent Company. The b an k ’s board of directors has elected Mr. K rantz president of the bank to succeed Mr. Stockwell. Mr. K ra n z , fo rm erly e x e c u tiv e vice president, has been associated w ith the bank for 14 years. He also will supervise the activities of the insurance agency, which will contin ue to be operated at the bank under the new name of Chimney Rock Insurance Agency. 99 Our correspondent banking pros would love to go 0 on 0 with you This simple principle, one-on-one service, has enabled First National's Correspon dent Banking Division to become the fastest growing in the area. We earned our reputation, and intend to keep it, by outworking the competition, and by providing unrivaled service re gardless of prevailing financial conditions. First National's Correspondent Banking Professionals are dedicated to meeting the individual needs of your bank and your customers, and there's only one way to do that. Come on ... We can't wait to go on <D with you. first national H ^ .d l d l 1 1UI Id ln Nebraska call us toll free at 800-642-9907. FromstatesadjacenttoNebraskacallustollfreeat800-228-9533, Member, FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 100 Nebraska N ew s C. W. GRIFFIS L. R. NANSEL In April of 1966 he was named vice president and cashier of the Bank of M ullen. H e w as p ro m o te d to executive vice president and manaager in 1970. C. W. (Walt) Griffis, 51, is the b ank’s new president. Lane R. Nansel was elected PICTURED are the contest winners with Will Else, bank pres. cashier. He will retain his title of vice president. Mr. Griffis has been executive vice president and a cashier of the bank since 1976. Joining the bank in 1948, H E Fairbury S tate Bank recently Named at Bellevue Mr. Griffis was elected assistan t completed its Citizen Builder cashier in 1955, assistan t vice H ap Engelkam p has been appoint Awards Scholarship Contest by ed m anager of the downtown office of president in 1960, cashier in 1961 awarding nine students in grades the F irst National Bank of Bellevue. and vice president and cashier in 7 through 12 a to tal of $3,275, Mr. Engelkam p and his family 1966. He was elected to the board in according to Will Else, president. moved to Bellevue in 1973 from 1973 and was elected executive vice The students subm itted essays Orlando, Fla. He joined the bank in president and cashier in January, which were judged by officials from 1976 following retirem ent from the 1976. He replaces the late Paul M. the Lincoln Public School System Hefti as president. Air Force. and the U niversity of Nebraska. Mr. Nansel joined the bank in The top award was a $1,600 1966 after serving five years as a four-year scholarship awarded to bank exam iner w ith the N ebraska 17-year-old Gwen Knobel of F air To Head Alliance Bank D epartm ent of Banking. He also has Donald D. Stull recently was experience with the Seven Valley bury in the 11th and 12th grade category. Second and third place elected chairm an and chief executive S tate Bank in Callaway. awards of $800 and $400 were also officer of th e In addition, Jim Nelson was awarded in the same category. F irst, G uardian State reelected assistan t vice president of second and third place awards were Bank and T rust the bank following a nine m onth given in the 9th and 10th grade Company, Alli absence. He is a loan officer in the category with a $150 educational ance. He suc instalm ent loan departm ent. savings account going to the first ceeds the late Promoted at Seward place winner. A $100 educational Paul M. Hefti, The Jones N ational Bank, Seward, savings account went to first place in who had held the has announced the promotion of the 7th and 8th grade category, p o s itio n s since Russ S truthers, president of the followed by second and third place 1968. bank since June of 1963, to chairm an C. W. (Walt) aw ards. D. D. STULL of the board. Chuck M atzke, vice Griffis, 51, is the president for the past six years, has b an k ’s new president. Lane R. Nansel was elected been named president. To Head Callaway Bank In another change, Doug Brand, cashier. He will retain his title of vice who has served as assistan t cashier, Homer Pierce has been prom oted president. Mr. Stull has been executive vice has been named vice president. to president of the Seven Valleys S tate Bank, Callaway, succeeding president of the Bank of Mullen, another member bank in the A bbott New Building at Stamford Harold Stuckey, chairm an. C onstruction has begun on a new Since December of 1973, Mr. organization. He joined the A bbott Pierce has been executive vice banks in 1955 a t the Bank of building for The Stam ford Bank, president and m anager. Prior to Chadron and moved to Alliance in according to E lbert Lowesten, bank moving to Callaway, Mr. Pierce 1956. In 1957 Mr. Stull was president. The 2,400 square foot, served as vice president of the F irst transferred to the Bank of H yannis single story brick building has a National Bank of M inden and also and was prom oted to assistan t tentative completion date of M arch was associated w ith the Overland cashier in 1958 and assistan t vice 1, 1979. A drive-up window and night depository are planned. president in 1966. National Bank of Grand Island. Fairbury Bank Awards 9 Students in Contest T N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 101 F irst w e brought you th e Sheshunoff S em in ars...N ow Let NBC answer your pricing and automatic transfer questions. NBC is a r e c o g n iz e d le a d er in s y s t e m s d e s ig n . We can save y o u a lot o f tim e an d labor p erfe ctin g a p rofitab le p r ic in g sy ste m th a t fits y o u r bank. O u r a p p r o a c h in c lu d e s : A c c o u n t a n a l y s i s b y avera g e le d g e r b alance ra n g e for d em and accounts; A n a ly sis by m in im u m balance ra n g e , or A n a ly sis o f a sy ste m th a t y o u s u g g e s t. We can sh o w y o u q u ic k ly h o w e ig h t o f th e m o st p o p u la r c h a r g e sc h e d u le s w ill w o rk for y ou . A nd w e can com pare th eir p rofitab ility. T h is p r ic in g a n a ly sis is fa st an d e a s y for b a n k s w h o se D D A an d s a v in g s a cco u n ts are alread y on NBC’s co m p u ter—m aybe y o u sh o u ld be. For m ore in fo rm a tio n contact: B ill N o rris, V ice P resid en t, In form ation M a n a g e m en t (4 0 2 ) 4 7 2 -4 4 4 0 This chart represents the summary o f a sample bank analysis. Note the income for eight pricing methods at the bottom. TOTAL ACCOUNTS TOTAL Nj* CHECKS TOTAL AATCHECKS total nuh debits TOTAL AM T debits total no* credit total a«t credit AvGNJiJM checks AvGA1TCHFCKS 3,390 69,095 lb, 101,023.50 71,592 lb. 333,065,62 10,038 lb, 030,986.36 20 233.UO avg aht debits 228,18 AVGNijMCREDITS 2 AVGAHT CREDITS 1,507.01 AvGMINIMUMHAL 708,01 avg average bal 1,505.08 AVG avg AVAIL BA 1,261.60 total for methoo 1 3,503.00 TOTAL EOR method 2 6,170.10 total FO R method 3 0,031.80 total EJR M ETHODa 10,622,00 total eor methoo s a,930,so total foh method b 13,313.20 total eor method 7 0,510,00 total eor method 9 7,158.20 N BC N ation al Bank of Commerce The Bank w ith th e P lu s NBC C enter / 13th & O S treets / L incoln, xraska 68508 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member FDIC N o rth w e s tern Banker, S eptem b er 1978 102 N ebraska N ew s Kimball Bank Sold A group of five local investors and two men from outside N ebraska have purchased controlling interest in the American National Bank of Kimball from D. L. Day of Cheyenne, Wyo. T he new ow ners are b a n k president Bruce M adden; B. F. O’Brien, Kimball attorney; Dr. J . M. Plate, Kimball physician, and A rthur Kenton of Kimball, and the Robert Bentley family tru st, along with Frank Booth of A ult, Colo., and Russell Lee Singleton of N orthridge, Calif. Mr. M adden has been named chairm an to replace M r. Day and M essrs. Plate and O’Brien have been elected to the board. Central NABW Group Elects Officers Gwen Chase recently was installed as chairm an of the Central N ebraska group of the N ational Association of Bank W omen (NABW). She is second vice president, tru sts and investm ents, and assistan t tru st officer of the Commercial National Bank and T ru st Company, G rand Island. Helen Easterbrook, adm inistra tion officer, tru s t departm ent of P latte Valley Bank, Kearney, was installed as vice chairm an and Catherine Schmitz, assistan t cashier, N ebraska S tate Bank and T rust Company, Broken Bow, as secretarytreasurer. Neil Charles Chandler FIRST NATIONAL BANK St. Joseph, Missouri 64502 Telephone (816) 279-2721 Call: Benton O’Neal, Ed Boos, Bill Manring, Dale Maudlin, Macon Dudley. A ffilia te of First M idwest Bancorp, Inc. N orthw Banker, S eptem b er Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Funeral services were held recently for Neil Charles Chandler, Im perial banker. Mr. Chandler began his banking career in 1938 as a bookkeeper a t the F irst N ational Bank of Im perial. In 1968 Mr. Chandler was elected president of the bank and served until controlling interest was sold to the Adam s family. The b an k ’s name was then changed to the Chase County Bank & T ru st Company. Mr. Chandler became an executive vice president, a position he held until his retirem ent in October of 1973. Member F.D.I.C. Lyle D. Rabe Funeral services were held recently for Lyle D. Rabe, an employee of the D alton S tate B ank for over 50 years. 103 W ILLIAM M A R C H P re s id e n t C. W P O O R E . JR S e c -Treas F R A N K E. W I L L I A M S E x e c u tiv e V P PA TR IC K H. R E N S C H V ic e P re s id e n t and Counsel H A R R Y E. C O E V ic e P re s id e n t R O B E R T E. R O H V ic e P re s id e n t IF T H E N A M E W A Y N E A. R A S M U S S A s s is t a n t S e c . O F T H E G A M E IS W M . (Bill) A B T S A s s is t a n t V P MUNICIPAL BONDS MIKE M U LLEN R e p re s e n ta tiv e THE NAM E OF DAVE D U N N R e p re s e n ta tiv e THOMAS B MEHL A s s is t a n t V. P. T H E C O M P A N Y IS SCHWESER M ICKEY K R U PIN SK Y R e p re s e n ta tiv e J O H N H. C R A V E N S R e p r e s e n t a t iv e We didn’t invent municipal bonds, but we’ve had a lot to do with their growth and development. In our 40 year history we’ve handled hundreds of issues, helping governmental subdivisions build to better serve their constituents. And that’s why we can offer informed advice and counsel on tax-free municipal bonds to you and your customers. We’re also expert in bank bond portfolio analysis. Give us a call, let us show you what Schweser Service can do for you. ROBERT E. Schweser Company INCORPORATED 208 So. 19th St. Omaha. Nebr. 68102 (402) 344-4611 3525 East Twenty-Sixth Street Des Moines, Iowa 50317 (515) 266-2104 INVESTMENT BANKERS-UNDERWRITERS V https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WiPf V M em ber of the S ecurities Investor Protection Corporation i l l ! N orthw estern Banker, S eptem b er 1978 Mr. W ilson is president of the K ansas-N ebraska N atural Gas Co. Mr. Evans is president of W estern Land Roller Co., wholly-owned subsidiary of Ingersoll-Rand Compa ny. A M B A C /M G IC Indemnity Insurance Shows Gains ORN H U SK ER Bank in Lincoln has announced plans for a new building on the southeast corner of 11th and Cornhusker Highway, about Vi mile from the present bank. The announcem ent coincided with the A ugust 24th celebration of the bank’s 75th anniversary, and is a symbolic gesture of the b an k ’s enthusiastic approach to the next 75 y e a rs , a c c o rd in g to A lice M. Dittman, president. The original name of the bank was Farm ers S tate Bank of Davey, and the original charter was dated July 29, 1903. The first d ay ’s deposits totaled $12,000. As p art of the 75th year celebration, the bank searched for d ire c t d e s c e n d a n ts of th e first-day depositors. Fam ily m em bers from the Lincoln com m unity and a num ber of other states were located and their pictures displayed in the b ank’s lobby. A num ber of the original depositors’ families still do their banking a t Cornhusker Bank, according to M rs. D ittm an. The bank moved to Lincoln in 1960 and currently has total assets of about $13,000,000. The new building will contain about 10,000 square feet on two levels. The general contractor is Belmont Construction Company and the architect is Bob Dawson of Hemphill, Vierk & Dawson. C *** William C. Smith, president, F irst National Lincoln, has announced the following advancem ents to officer positions in the bank: Ava Beeman, m ortgage loan servicing officer; Dwight Heckman, city real estate officer; B rett D u ff a n d Mark Mathes, com puter m arketing offi cers, and Terry Vrzal, com puter operations officer. *** John A. Westerberg, president of Lincoln Bank E ast, has announced the elections of three new board members. Elected are Waldo Winter, president of W inter B rothers, Inc., Dr. John L. Reed, a surgeon associated with the Lincoln Clinic, and D. David Jones, vice president of Commerce Group, Inc. Lincoln Bank E a st is the principal holding of Commerce Group Lincoln E ast, Inc., a one-bank holding company. I t is a p art of an affiliated group of 10 banks located in seven N ebraska communities. New Members Elected To Hastings Bank Board J . R o b e rt W ilso n a n d W . Benjamin E vans are new m embers of the board of the F irst N ational Bank of H astings, according to Norm an Nackerud, president. They were elected to fill vacancies created by the retirem ent of Clarence Anderson, Harold Johnson and Edw ard Wilkin. LIVESTOCK OUTLOOK . . . (Continued from page 42) for corn, it will entice more feeding of cattle. The cheaper feed cost, now being around the .40 m ark (for feed only) will be a way to m arket some crop. I t is im portant for feeders to sell their cattle when they are fat and not keep them for higher prices. A lthough there has been a good gain in prices over the last winter, up until now only 40% of the cattlem en have sold at the higher prices. The producer has not had his harvest yet and he is the one who needs a good N orthw Banker, S eptem b er Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 D uring the first half of 1978, municipal bond insurance issued by th e A m e ric an M u n ic ip a l B ond A ssurance Corporation (AMBAC) and M GIC Indem nity Corporation was up from last year’s total. AMBAC and M GIC Indem nity Corporation supply insurance for the p o rtfo lio b o n d s of ta x -e x e m p t municipal bond funds, municipal bond investm ent portfolios and new issues of municipal bonds. According to Frank C. Carr, president of AMBAC, coverage extended to new issues, municipal bond fund portfolios and investm ent portfolios totaled $441,496,000 in par value for the first six m onths of 1978, up from $430.9 million insured in the first half of 1977. Principal and interest coverage extended by the two subsidiaries of M GIC In v est m ent Corp., during the first half of this year, totaled $1,174 billion, rising $108 million from first half totals for 1977. In 1977, A M B A C/M G IC insured a principal value of $897.6 million and $2,241 billion in principal and interest coverage M r. Carr added. Pamida Has New President A new president has been named to h e a d P a m id a . C. C la y to n B urkstrand assum ed his duties as president and chief operating officer of Pam ida on A ugust 21. Mr. B urkstrand succeeds Lee W egener, who becomes vice chairm an of the board. D. J . W itherspoon rem ains chairm an and chief executive of Pam ida. price to keep his operation going, and th a t won’t come until this fall. Our biggest problems will be high costs and prices th a t do not keep up with inflation. A few years back when wheat was $2.50, tractors could be bought for $12,000 to $15,000. W heat went to $4.50 and tractors went to $23,000 to $25,000. Now w heat is back to $2.50 and tractors are still $23,000 & up. My point is th a t the cost of operations keeps up w ith inflation b u t the price received does not. T hat has been and will be the problem. Also, a big factor is th a t the cost of money and the level of debt both keep increasing. 105 Specialists in structuring solutions to correspondent problem s... CHUCK LEFFLER lllllllfUllllllll FI FIST NATIONAL LI NCOLN P-O. Box 81008, Lincoln, NE 68501 Phone: (402) 471-1231 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 106 W E ARE BANKERS’ BANKERS Ben Eilders, Don Carmody and John Murano are “ bankers’ bankers” . . . correspondent bankers from Bankers Trust. From overlines and loan participations to wire transfers, data processing and trust services, we work with banks of every size and local situation. And we’re ready to serve your correspondent needs with the resources of one of Iowa’s largest independent banks. That independence works in your favor. When you call on us with a proposal, you’ll receive an immediate answer. We don’t have to check it out with the “ home office,” because we are the home office. Call one of the bankers’ bankers from Bankers Trust, and let us help you achieve your goals for financial growth. We’re the Bankers . . . come grow with us. Come Crow WithUs Digitized for estern FRASER N orthw Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Bankers Trust Correspondent Bank Department Des Moines, Iowa 50304 !!■■■■ Member: FDIC/Federal Reserve System Use our toll-free WATS line: 800-362-1688 Des Moines’ largest locally owned, independent bank John Murano, Correspondent Banking Officer 107 92nd Annual Iowa Bankers Association Convention September 24-26 Veterans Auditorium, Des Moines CHRISTY ARMSTRONG President ETER A N S A uditorium in Des Moines will be headquarters for the 92nd annual convention of the Iowa Bankers Association Septem ber 24-26. The main floor arena will accommodate all the business sessions, while the spacious lower level will feature the registration desk and 46 exhibitors. An imposing array of speakers will address the registrants a t the ag breakfast and three general business sessions, including Mickey M antle, former New York Yankee baseball great who was inducted into the Baseball Hall of Fame in 1974. Am ong the featured platform speakers will be Dr. Norm an Vincent Peale, noted author and speaker; FD IC Director William M. Isaac; U. S. Congresswoman Shirley Chisholm, and ABA President-Elect John H. Perkins. The President’s Reception and Carnival P arty will open the convention Sunday evening, Septem ber 24, sta rtin g a t 7:30 p.m . O utstanding entertainm ent also will be offered. Headliners of the Tuesday night theater p arty at C.Y. Stephens A uditorium in Ames will be Tennessee Ernie Ford and The Brothers and The Sisters. The Arbors quartet will sing at the M onday night dance w ith the Mike Day O rchestra, and The Noted 4 barbershop quartet will fill in with musical num bers throughout the business sessions. The complete program follows: V Sunday, September 24 P.M. 4:00 R egistration - E xhibits Open. Lower level, Vets A uditorium . 7:30 P resident’s Reception/C arnival P arty , Lower level. EDWARD L. TUBBS Treasurer m, m NEIL MILNER Exec. Vice Pres. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Monday, September 25 A.M. 8:00 30th A nnual A gricultural B reakfast. Main floor, west end Vets Auditorium . Presiding—Edw ard J . Leahy, chairm an, IBA agricultural division; president, N orthw estern S tate Bank, Orange City. “ The Positive Principle Today” —Dr. Norm an Vincent Peale, m inister, M arble Collegiate Church, New York. “ W h a t’s Ahead for F arm ing” —Lane Palmer, editor, Farm Journal. “ Do the Crops Grow Greener on the Other Side of the Bamboo C urtain?” —Orion Samuelson, director, agricultural services, WGN radio and TV, Chicago. Noon Luncheon—G raduate School of Banking, U niversity of Wisconsin. Holiday Inn downtown. P.M. 1:15 General Session— M ain floor, east end Vets Auditorium . P residing—C hristy F. A rm strong, president, Iowa Bankers Association; president, American T ru st & Savings Bank, Dubuque. A ddress—William M. Isaac, director, FD IC , W ashington, D.C. “ Financing the Federal D ebt” —John D. Chisholm, president, M arquette Bank & T rust, Rochester, Minn. T reasurer’s R eport—Edw ard L. Tubbs, president, M aquoketa S tate Bank, M aquoketa. “ News from IA C H A ” —John A. Sikkink, IACH A secretary; senior vice president, Iowa-Des Moines N ational Bank, Des Moines. A nnual M eeting of Iowa Transfer System , Inc. —John Chrystal, president of ITS; president, Iowa Savings Bank, Coon Rapids. N orthw estern Banker, S eptem b er 1978 108 “ Changing P attern s in an E ra of R isk” —Shirley Chisholm, U. S. Congresswoman, W ashington, D. C. Caucus of Iowa ABA members. 8:00 Dancing till m idnight, m ain floor, west end Vets Auditorium . Mike Day O rchestra. Special interm ission a ttrac tio n —The Arbors quartet. Tuesday, September 26 A.M. 9:00 General Session—M ain floor, east end Vets Auditorium . Presiding—C hristy F. A rm strong, president IBA. “ W h at’s Ahead for the Econom y?’’—Ray Brady, CBA News business correspondent. M eeting of Iowa ABA M em bers—Election of ABA officers and other business. W. R. “ Dick’’ Summerwill, Iowa vice president-elect of ABA, presi dent, Iowa S tate Bank & T rust Co., Iowa City. A ddress—John H. Perkins, ABA president-elect; president, C ontinental Bank, Chicago. A nnual M eeting of Iowa Bankers Insurance and Services, Inc., P residing— Rudolph S. Leytze, vice president, Farm ers State Savings Bank, Independence. “ M eeting the Com petition’’—Panelists: Preston C. King, Connecticut Bankers Association. Frank Brawner, Oregon Bankers Association. Thom as B. Shriver, Pennsylvania Bankers Association. Neil Milner, Iowa Bankers Association. 11:30 Luncheon—50-Year Bankers and P ast IBA Officers. H arry Gaskell Room, Vets A uditorium . E. J. LEAHY P.M . 1:15 DR. N. V. PEALE General Session—Main floor, east end Vets Auditorium . Introduction of 50-Year bankers and p ast presidents of IBA —Neil Milner, IBA executive vice president. “ Bank Profits in 1979” —William F. Ford, chief economist, Wells Fargo Bank, San Francisco. Report of Executive Vice President —Neil Milner. A nnual A ddress of President —Christy F. A rm strong. IBA Business M eeting—Presiding, Mr. A rm strong. A dopting comm ittee reports; resolutions; special presentation to IBA president; installation of officers. “ U nity is Team w ork” —Mickey M antle, former Yankee baseball great; Baseball Hall of Fam e 1974. 8:30 Bankers N ight Theater P a rty —C.Y. Stephens A uditorium on campus of Iowa S tate U niversity, Ames. Featuring: Tennessee Ernie Ford and The B rothers and The Sisters. SPOUSE S CALENDER Monday, September 25 10:00 to 12:30 —Homes Tour. Buses depart Vets Auditorium . Cost $7.50 per person; proceeds for benefit of Des Moines Botanical Center. 10:00 to 5:00 Tours of Valley W est Mall shopping center and W est Des Moines shops. Buses available. 11:15 and 1:15 L uncheon/Sytle Show —Younkers Tea Room downtown. Door prizes, favors and “ Fall Fashion H eadliners.” 8:00 Dancing til m idnight, m ain floor, west end Vets auditorium . Mike Day O rchestra. Special interm ission en tertainm ent—The Arbors Q uartet. Tuesday, September 26 10:00 to 5:00 Tours of Valley W est Mall (same as Monday). 11:00 to 3:00 Luncheon/M atinee a t Charlie’s Showplace, 5th & U niversity. Stage show will be “ The Odd Couple.” Cost: $8.50 per person. Buses provided. 11:15 and 1:15 L uncheon/S tyle Show (same as M onday). 8:30 Bankers N ight Theater P a rty (same as above). □ L. PALMER O. SAMUELSON N orthw Banker, S eptem b er Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 109 mm m ÿjpW m Left to right: Jim Eick, Jim Middendorf,. Homer Jensen, Dick Buenneke, Andy Friedmeyer and Kurt Wayne Seated1Wendy Hurley W E W A N T TO S E E Y O U ! . . . During the 92n d Annual IBA Convention Banking for a brighter future. CAPITALCITYBflflK Des Moines, Iowa 50309 515/244-5111 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CAPITALCITYBAAK N orthw estern Banker, S eptem b er 1978 110 Io w a N ew s Speakers and Entertainers W. M. ISAAC S. CHISHOLM M. MANTLE ERNIE FORD THE BROTHERS AND THE SISTERS N orthw Banker, S eptem b er Digitized for estern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J. A. SIKKINK J. D. CHISHOLM 1978 MIKE DAY ORCHESTRA THE ARBORS 111 IS FLYING . LEARN HOW TO FLY At The Annual IBA Convention Booth 215 — Vets Auditorium — Sept. 24-26,1978 Guardsman Life Insurance Company has started a revolution in Credit Insurance. It’s called Immediate Issue. With Guardsman’s Immediate Issue Program, individual policies can be issued on the spot with no delays. Before the Convention call 1-800-362-2526 for a copy of Shield and Lineguard low cost term insurance plan — have your big borrower complete the application and bring it to the Convention to see Immediate Issue in action. Take home your commission check and his policy.* If you w ill not be at the Convention or want more information before the Convention, please mail the attached request form. TWO BILLION Revolution Department Guardsman Credit Insurance 1025 Ashworth Road West Des Moines, Iowa 50265 I want to join Guardsman’s Revolution. Tell me morel about Immediate Issue and the Credit Insurance story. \ i Name ---------------------------------------------------------------------------- , I Firm Address City Phone State Zip ‘ Assuming his health allows immediate underwriting. GUARDSMAN LIFE INSURANCE COMPANY 1025 A sh w o rth R oad • W est Des M oines, Iow a 50265 • L i f e / G r o u p /C r e d it/S u b s ta n d a r d /P e n s io n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 7978 112 Io w a N e w s To Announce IBA Officers at Convention FFIC E R S of the Iowa Bankers Association for 1978-79 were elected by mail ballot in A ugust and results of th a t election will be announced at the 92 nd annual c o n v e n ti o n in Des Moines this m onth. H. Rand P e tersen, president L. H. OLSON of The Shelby County S tate B ank in H arlan currently is president-elect and is scheduled to move up to the presidency for the coming year. He will succeed Christy F. A rm strong, president of the IBA the p a st year. Mr. A rm strong is president of the Am erican T ru st and Savings Bank, Dubuque. The official candidate for the office of president-elect is Leslie H. Olson, president of the Toy N ational Bank, Sioux City. Edw ard L. Tubbs, president of the M aquoketa S tate Bank, will continue as treasurer for one more year to complete the two-year term to which he was elected last year. Mr. Petersen, in addition to his duties as chief executive of the Shelby County S tate Bank, is a director of the M anilla S tate Bank. H e w as g r a d u a te d from th e U niversity of Iowa in 1951 and entered banking th a t year. He joined the Shelby County S tate B ank in 1957. M r. Petersen also is a graduate of the IBA Ag Credit School at Iowa S tate U niversity, Ames, and of The G raduate School of Banking a t the U niversity of W isconsin, M adison. Mr. Olson was born in Sioux City M arch 13, 1927. He began working for the Toy N ational B ank in J a n u a r y , 1945. H e h o ld s th e G ra d u a te C e rtific a te from th e Am erican In stitu te of Banking and was graduated from the G raduate School of Banking a t the U niversity of W isconsin, M adison, in 1959. Mr. O lson also h a s c o m p le te d th e In d e p e n d e n t B a n k e r s ’ M .D .B . O ACORN Registers "Accepted Sale Registers by Bank Clerks Everywhere" Tor information write THE ACORN PRINTING CO. O akland, Iowa N orthw estern Banker, S ep te m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Course at H arvard U niversity and is accredited by the American Bankers Association as a Certified Commer cial Lender. Mr. Olson has worked in all departm ents of his bank, including the tru s t departm ent. A fter serving as assistan t cashier, then cashier of Toy National, Mr. Olson was elected in 1965 as vice president in charge of the b a n k ’s investm ent portfolio and the correspondent bank division. He was named to the Toy board of directors in Jan u ary , 1971, and a year later was elected president and chief executive officer on Jan u ary 18, 1972. Mr. Olson has been active in banking industry affairs. He has served twice as president of the Sioux City Bankers Association and in th a t capacity was chairm an in 1974 and again in 1978 of the Iowa Bankers Association Group 1 m eet ing, which is always held in Sioux City. He has been a member of the operations and legislative com m it tees of the IBA, was a member of the original board of the Iowa A utom a ted Clearing House Association, was a director of the Iowa Independent Bankers, and has been president of the Sioux City C hapter of AIB and served as AIB associate councilman for Iowa. He also tau g h t AIB classes for six years. Am ong his num erous civic duties Mr. Olson currently is president elect of the Sioux City Chamber of Commerce and is a director of M orningside College. He was a charter member of the Sioux City Com m unity Theater, taking p arts in more th an 20 productions and directing two shows. (p e c k e r & Sioux City Banker Retires John F. Joseph, J r., assistan t vice president and m anager of the building and security departm ent at F irst N ational Bank, Sioux City, recently retired ending 43 years with the bank. M r. Joseph first served as m essenger and later as teller, head teller, assistan t cashier and cashier. Retires at Atlantic Dewey Kuiken recently retired after 43 years in banking, the last 21 with the A tlantic S tate Bank. He began at the bank as a cashier and retired as senior vice president. Mr. K uiken’s banking career began in his hometown of Maurice. He also was associated w ith banks in Gering, N ebr., Delmar and Kimballton before joining the A tlantic bank. Capital Increases The following banks have in creased their capital stock. F irst Iowa S tate Bank, Albia, 100% stock dividend by transfer of $120,000 from surplus to common capital. Capital now totals $240,000. Comm unity Savings Bank, Paton, 100% stock dividend by transferring $50,000 from surplus to common capital. Capital is now $100,000. Farm ers Savings Bank, Shelby, 100% stock dividend by transferring $25,000 from surplus and $100,000 from undivided profits to common capital. Capital is now $250,000. Farm ers Savings Bank, Victor, common capital increased by raising par value of common stock from $100 to $300 per share. Capital now totals $300,000. W est Chester Savings Bank, 100% stock dividend by transfer of $75,000 from surplus to common capital. Capital now totals $150,000. ■ownie Municipal Bonds 711 Insurance Exchange Building Des Moines, Iowa 5 0 3 0 9 Phone 515 243-5188 113 Toy National Bank are as close as your te le p h o n e Look for Les Olson, Rich Breyfogle and Stan Fredericks at the Iowa Bankers Convention September 24-26. SIOUX CITY, IOW A N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 114 Io w a N ew s Customers Star in Banks’ Commercials FRIENDLY customers and employes make the unique bank commercial a success. THE lobby of the bank is transformed into a sound stage as the cast rehearses for the commercial’s grand finale. H IL E m ost banks offer their W custom ers such standard ser vices as individual checking accounts and drive-up tellers, M erchants National Bank (MNB) of Cedar Rapids recently offered its custom ers som ething totally unique—a chance to be “ a s ta r ” in MNB 1978 television commercials. The idea for involving MNB custom ers and employes was devel oped by Ron Howes and Peter Jacoby, creative director and pro ducer, respectively, of Creswell, Munsell, Schubert & Zirbel, Inc., the b ank’s advertising agency. The objective was to point out, in a memorable way, the m any services th a t make banking easier at MBN, according to M r. Howes. “ T he th e m e we w a n te d to establish was ‘Hey, th a t’s easy!’ We w anted to talk about services such as M NB’s In sta n t Access bank card, personal bankers, all-night banking and so o n ,” he commented. The cam paign to net a bank-full of budding talent was launched last winter with a m ulti-media effort, including radio, direct mail, and handout brochures and a large newspaper ad headlined, “ So you wanna be in a television commer cial.” The ad, which ran in the local newspaper three weeks before the shoot, invited MNB custom ers to stop by the bank and audition for parts. Some 100 MNB custom ers and employes turned up wearing their m ost photogenic smiles. A fter hours of careful culling, a cast of 76 custom ers and employes ranging in age from 11 to 80 was selected. On the day of the shoot, the MNB N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lobby was transform ed into a sound stage, complete with lights, cameras and plenty of action. To further promote interest in M N B ’s c a m p a ig n , a P re m ie re N ight was planned. I t was staged in the b an k ’s lobby and over 100 attended. Stars arrived in long, black limousines, celebrities wore black ties and tuxes or gowns. A fountain gushed punch. Hors d ’oeuvres were served to the melodic strains of a string quartet. The evening’s festivities were climaxed with several showings of the finished commercials. As a final rem inder to Cedar Rapidians, another newspaper ad announced the TV debut of the commercials, listing a schedule of air times. The ad featured mock reviews and thum bnail photos of featured actors and actresses who would appear in, as the ad proclaimed, “ the commercial all America is talking MERCHANTS National Bank employes emphasize the ease in banking at MNB. Here, the group is singing about “ lots of personal bankers” as they lip-synch those words to the tune of “ Frere Jacques.” ab o u t.” The fact th a t local people were being used in local commercials of sizab le p ro p o rtio n s re s u lte d in se v e ra l n a tu r a l p u b lic re la tio n s spin-offs. The casting session, for example, reaped public relations benefits in the form of a segm ent on a local news show and photo-and-story coverage in the local newspaper. Later, a Cedar Rapids TV station sent a crew to film the actual shoot on location in the bank. .? “ Hey, th a t’s easy” was first aired in January of 1978. Since then, the response has been unprecedented, according to Jim Coquillette, bank president. “ I can’t remember when we’ve ever received so m any congratula tory letters, kind rem arks and phone calls from custom ers and others who said they enjoy the comm ercials,” he said. “ People seem to find them fun and entertaining. We feel it ’s an effective way to remind all our custom ers—present and prospec tiv e —of the m any services available to make banking easier a t M N B .” Due to the unusual popularity of the commercials, they will continue to be broadcast through the end of the year, according to Richard H olthaus, bank advertising m ana ger. “These commercials continue to a ttra c t an unbelieveable am ount of local in te rest,” he said. “ The tune and lyrics seems to stick. Our bank officers and employes report dozens of recognition incidents daily. T h a t’s w hy,” Mr. H olthaus added, “ we are planning to incorporate the ‘Hey, th a t’s E asy!’ music and lyrics in some future spots, to o .” His banker has to make decisions alm ost overnight. Buying inventory while the price is right can make the difference between profit and loss for a retail lumberyard. It’s a competitive business—with lots of quick price changes that need a quick response. And if you’re going to be the kind of banker this business needs, sometimes you have to turn on a dime. That’s when it helps to work with the correspondent bankers at American National. We don’t put layers of review committees https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis between you and the overline you need. When you bring us a sound deal with all the necessary information, we’ll make a decision fast. Without a lot of paper-shuffling. Because we’re the bank for business. We spend almost all our time helping busi nessmen grow. And that helps us do a better job for an aggressive correspondent. Shake hands with American National. The bank for business. 116 Io w a N ew s Exhibitors for the 1978 IBA Convention A. 0 . Sm ith H arvestore American M arking, Inc. Amiel Industries of N. A. Bank Building Corporation The BankV ertising Company B randt Coin H andling Burroughs Corporation Commercial W est D aktronics, Inc. D ata Business Equipm ent, Inc. E. F. H u tto n & Co. E astm an Kodak Co. Electronic A dvertising System , Inc. Farm Progress Pubi. Financial In stitu tio n Services, Inc. F irst National Bank of Minneapolis General Bank E quipm ent & S ys tem s, Inc. G lide/File G uardsm an Life Ins. Co. H BE Bank Facilities Corp. Hawkeye Bancorporation IBM Corporation Iowa Bankers Insurance & Services, Inc. Iowa New Outlooks Assn. John H. H arland Company Kirk Gross Company Iowa Public Records Search, Inc GRIMES STATE OFFICE BLDG. (Y ra DES MOINES, IOWA 50319 TELEPHONE: 515/281-3356 Inst. No. Date Filed Hour Filed MEMBER Page_ County_ Secured Party(ies) and Address(es) Assignee (if any) and Address Debtor(s) Name and Address(es) Name(s) of Party(ies) Signing LOAN ACTIVITY B U L L E T IN W ho: n a m es o f a ll d eb to rs in th e c o u n ty rec o rd ed d u r in g th e p e r io d W hat: n am e o f se c u r e d party W hen: th e date th e lo a n w as file d w ith S ecretary o f State W here: lo c a tio n w h ere lo a n m ad e B u lle tin su b s c r ip tio n rates: (issu ed tw ice m on th ly} Black Hawk, Linn, Scott and Woodbury — $28.00 monthly Cerro Gordo, Clinton, Des Moines, Dubuque, Johnson, Lee, Pottawattamie, Story, Wapello, Webster and Wright — $12.50 monthly All other 83 counties (except Polk) — $10.50 monthly counties. Name. Bank . Address. Officer Signature N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .State. Changes Announced At Indianola Bank Peoples T rust and Savings Bank, y In d ia n o la , h as a n n o u n c ed th e appointm ent of Pam M erritt as m arketing director responsible for planning the b an k ’s advertising and promotional cam paigns. Ms. M erritt has been w ith the bank as a consumer loan officer for the past year and a half. Two new additions to the staff are Kimberly A. Tierney as a consumer lender and Keith L. W right in the loan departm ent. Ms. Tierney is a recent graduate of Simpson College. Mr. W right has 16 years of y experience in lending. Richard (Dick) D avitt has been promoted to vice president of Peoples Company, which offers farm m anagem ent services and has its offices at the bank. Mr. D avitt farmed in W arren County for 20 years prior to joining the Peoples Company staff as farm m anager in 1977. Joins Grinnell Bank Please start my subscription for_ City____ Koch B rothers Kooker & Associates LeFebure Corporation Life Investors, Inc. M & M Sales Company M ortgage G uaranty Ins. Corp. M aas & Associates M idwest Bank Builders & Designers M idwest Calculator, Inc. Mosler Safe NCR Corporation N ational Fidelity Ins. Co. Nesper Sign A dvertising Co. N orthw estern Banker N orthw estern Bell Pinger System Pitney Bowes, Inc. United G uaranty Res. Ins. Co. U S L IF E Credit Life Ins. Co. Vacum et, Inc. -ZiP- Michael Tangen has joined the staff of the Poweshiek County National Bank, Grinnell, as an officer trainee, according to M ax S m ith , p r e s id e n t. M r. T a n g e n received his BA degree in finance from Drake U niversity in M ay of 1978 and worked for a brief period a t the Iowa-Des Moines National Bank and for the D rought D isaster D epartm ent of the Small Business A dm inistration, also located in Des Moines. 117 'i From left to right: Janine N. Young, Thomas J. Naughton, John D. Hunt, J. Lynn Horak, Robert J. Wissler, and Barbara J. Estey. Not shown: John B. Johnson, and Maurice C. Radnich. 7 Visit Iowa's largest bond department during our convention open house. S e e how our TELERATE com puter helps us give you a lot of help for your m oney. During the Iowa Bankers Convention, we h op e you will stop in and s e e our new Bond and Investm ent facilities. While y o u ’re in w e’ll show you how our TELERATE terminal provides our staff the up-to-the-minute m on ey market information they need to serve the n eed s of our bank custom ers. Our Bond Department is o n e of the m any resources you can utilize to receive a lot of help for your m on ey — at the low a-D es Moines. IOnesM W A om . es Jm t A A n a t io n a l bank Y es, y o u c a n g e t a lo t o f h e lp fo r y o u r m o n e y . 7th & Walnut Des Moines, Iowa 50304 (515) 245-3131 Member FDIC An Affiliate of Northwest Bancorporation Banco © 1978 lowa-Des Moines National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 ■ J18 Io w a N e w s You Will See Them at the 92nd Annual Iowa Bankers Convention H E 92nd annual convention of the Iowa Bankers Association will be held Septem ber 24-26 in Des Moines. Officers and representatives of larger banks from m ajor banking centers in the midwest and across the nation will be attending the convention. T he a s te r is k in d ic a te s th o se persons attending for the first time. T Cedar Rapids Merchants National Bank: Jam es E. Coquillette, president; F. Forbes Olberg, executive vice president; Robert H . O ’M eara, senior vice president; John E. M angold, senior vice president; Terry M artin, vice p re s id e n t; J e r r y T ru d o , M ark Christen and Dale Froehlich, assis ta n t vice president; S tan Farm er, assistan t cashier; Richard Ryan, senior vice president; Peter Bailey, Blake Bales and Don M acKay, vice president. Peoples Bank: John M. Sagers, president; Don G. Ellis, executive vice president; Jam es L. W est, vice president; Gary D. E rn st, vice president & tru s t officer; H arlan D. McCaw, vice president & controller; ♦Donald J . M elichar, vice president; Lawrence E. M cG rath, vice presi dent & cashier; *M argaret E. Billings, assistan t vice president, and Lila M. Helms, tru s t officer. Chicago American National Bank & Trust Company: Michael E. Tobin, presi dent; Ronald J . Gray heck, executive vice president; Jam es A. Carlson, senior vice president; Michael J . B y rn e , seco n d vice p re s id e n t; Tim othy S. Johnstone, correspon d en tb an k in g representative; Donald R. Benson, bond investm ent officer; D estain Stew ard J r ., agricultural r e p r e s e n ta tiv e , an d G eorge H . Spence, retired agricultural officer. C ontinental Bank: J o h n H . Perkins, president; J o h n B . Tingleff, division vice president; Lawrence H. Frowick and George P. Dekker, vice president; J . Michael Baird, banking officer; W. K ent Velde, banking associate. Bond departm ent: How ard J . Beckstrom , vice president; William L. Weibel and Robert E. W ahlgren, second vice president. Drovers Bank of Chicago: Sidney J . Taylor, chairman; Frank E. Bauder, president; Jam es J . Carmody, executive vice president; *John J . C rotty, J r ., *Alan B. Eirinberg and Joseph P. Valenti, senior vice president, and A ndy Rum ents, assistan t vice president. First National Bank: R. G arth Dunn, vice president; Clarence E. Cross J r., assistan t vice president; Nevin Bowser, vice president, and John Richardson, bond sales repre sentative. Harris Trust and Savings Bank: B. K enneth W est, executive vice president; Jerry H . Pearson and Stanley K. Peirce, vice president; Jam es W. Hill and *Gerald R. O’Connor, assistan t vice president; Christina L. W ilkins, commercial banking officer, and Edm ond M. Kennedy. LaSalle National Bank: M ilton F. D arr J r ., vice chairman; *Hill Carleton D. Beh Co. Investment Bankers/Financial Consultants 1300 Des M oines B uilding Des Moines, Iowa 50309 N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 ru>T• W hen you r b a n k n e e d s th e ser v ic es o f o c o r r e sp o n d e n t y o u o fte n n e e d it FAST! At A m erican Trust 6 S a v in g s Bonk w e k n o w that. That's w h y w e 'r e g e a r e d up to b e k nockin g a t you r d o o r b e fo r e y o u k n o w it. O ften , within tw o or th ree hours after r e ceiv in g you r coll. _ After oil, y o u r b u sin ess m e a n s a lot to us ** TOWN CLOCK PLAZA a n d w e w o n t to ea rn you r support. If that DUBUQUE. IOW A 52001 PHONE COLLECT: 019-582-1841 m e a n s g o in g th e "extra m ile" MEMBER: FDIC G FEDERAL RESERVE SYSTEM Digitized y for o uFRASER co n c o u n t o n it. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 120 Iow a N ew s Hammock, vice president; Richard G. Brown, assistan t vice president, and *Hal Sauer, loan officer. National Boulevard Bank: H. Peter DeRosier, vice president. N orthern T ru st Company: *David W. Fox, executive vice president; Harold E. Hindsley and Orrin A. Wilson, vice president; *L. H. Kerr, commercial banking representative; Ellen Ankrum , adm inistrative assis tan t; Edw ard J . W alsh, bond investm ent officer; *John E. Scully, bond investm ent officer, and John T. Crilly, second vice president. Davenport Northwest B ank & Trust Co.: Larry M akoben, vice president, and Gene G roth, assistan t vice president. Dubuque American Trust and Savings Bank: Nicholas J . Schrup, chairman; C. F. A rm strong, president; Leo F. Kane, executive vice president; R o b e rt G. S c o tt, se n io r vice president, and Bernard D. Miller, assistan t vice president. K ansas City Commerce Bank of K ansas City: R.G. DICKINSON £> CO. MEMBER MIDWEST STOCK EXCHANGE CHICAGO BOARD OF OPTIONS EXCHANGE PACIFIC COAST STOCK EXCHANGE Main Office Forest City 910 Grand Ave. Des Moines, Iowa 50309 (515)-247-8100 (800)-362-2520 Box 423 (125 So. Clark St.) Forest City, Iowa 51436 (515)-582-3598 West Des Moines 1603 22nd St. Suite 100 West Des Moines, Iowa 50265 (515)-247-8116 Ames 414 Main Street Ames, Iowa 50010 (515)-232-3422 Ext. 8186-8181 Carroll The Alley P.O. Box 884 Carroll, Iowa 51401 (712)-792-9271 Chicago Clinton P.O. Box 892 Clinton, Iowa 52732 (319)-243-3304 Fort Dodge 122 North 9th Street Fort Dodge, Iowa 50501 (515)-576-7673 Keokuk Keosippi Plaza Box 145 Keokuk, Iowa 52632 (319)-524-3541 Marshalltown 14 West Main Street Marshalltown, Iowa 50158 (515)-752-5436 208 S. LaSalle Street Suite 640 Chicago, Illinois 60604 (312)-726-900Q Wats: (800)-621-6908 Los Angeles 445 Figueroa Street, South Suite 1701 Los Angeles, California 90017 (213)-485-8915 Wichita Suite 100 Board of Trade Building 401 E. Douglas Wichita, Kansas 67202 (316)-265-9341 Kansas City 101 West 11th St. Suite 1016 Kansas City, Missouri 61408 (816)-842-8372 Red Oak Kearney 212 Coolbaugh Red Oak, Iowa 51566 (712)-623-2151 or 623-9050 10 East 22nd St. Kearney, Nebraska 68847 (308)-234-1893 Algona Omaha Box 141 Algona, Iowa 50511 (515)-295-7031 203 Farm Credit Bldg. Omaha, Nebraska 68103 (402)-345-2241 N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Fred N. Coulson J r ., senior vice president, and Edwin B. Lewis, vice president. First National Bank: William G. D exter, senior vice president. United Missouri Bank of Kansas City: J . H. Scott J r ., president; Wm. J . Bolt J r ., chairm an of executive comm ittee, and Richard H. M uir, vice president. Kansas City Commerce Bank of Kansas City: Fred N. Coulson J r., senior vice president, and Edwin B. Lewis, vice president. F irst N ational Bank: William G. Dexter, senior vice president. United Missouri Bank of Kansas City: J . H. Scott J r ., president; Wm. J . Bolt J r ., chairm an of executive comm ittee, and Richard H. M uir, vice president. Lincoln First National Lincoln: Wm. Edgecomb, vice president. M inneapolis F irst National Bank: S. R. Omlie, vice president; William W. H am il ton, assistan t vice president; Larry Nelson and *Tom Trench, bond investm ent representative; Roger Raina, cash m anagem ent officer, and *Howard Richards, bank financial analyst. Marquette National Bank: Rich ard E. Holmes, assistan t vice president. N orthw estern N ation al Bank: R ic h a rd C. S to rlie an d G ary Lundeen, assistan t vice president; John L. Thomson, correspondent banking representative, and Ted Tanney, bond representative. New York Bank of New York: *Benjamin J. Sullivan J r ., assistan t treasurer. Bankers Trust: M ary Ann Lam bert, assistan t vice president, and Steve Gordon, assistan t treasurer. Irving Trust Company: Thom as J. Koslovsky, representative. Omaha First National Bank: F. Phillips Giltner, president; A. J . Canaday, executive vice president; Bruce R. Lauritzen, J . William Henry, Don R. O strand, G. R. Brown and R. E. Peterson, vice president; Jeff M oran, m a rk e tin g o fficer, an d G eorge M cFadden, correspondent banker. The Omaha National Bank: John W oods, chairman; *Tom Allen, president; F. Donald Lewis, *John M a rtin a n d D el O lson, vice Io w a N e w s president, and Gene Noell, second vice president. United States National Bank: Donald J . M urphy, chairm an/C EO ; Robert A. Krane, president; Ja y F. Bordewick and Howard W. Nielsen, vice president; Lee J . Bachand, correspondent banking officer; John C. Nelson, vice president; Jo h n S. McCune, investm ent officer; William E. Clark, custom er service officer, and Clete Uhing, bank card sales representative. 1 21 You run the store. W e’ll do the b ook s. St. Joseph First National Bank: Benton O’Neal, senior vice president. First Stock Yards Bank: John E. Karn, president. I St. Louis Mercantile Trust Company: Jerald L. Fleschner, assistan t vice presi d e n t; D an iel W . J a s p e r , vice president, and *Leo G. H aas, banking representative. St. Paul First National Bank of St. Paul: K enneth A. Heiser, Robert Peroutka and Clayton Johnson, assistan t vice president. Sioux City First National Bank: Richard C. Taylor, president: Gary W. Steven son, vice president, and Bernard J . L attyak, assistan t vice president. Security National Bank: E. C. Thom pson, president; Gene Hagen, executive vice president, Jim Hongslo, vice president; W ayne Johnson and Steve H atz, correspondent bank officer. Toy National Bank: Leslie H. Olson, president; Richard A. Breyfogle and S tan Fredericks, vice president. N orthw estern N ation al Bank: Gerald D. J u s t, vice president, and Tom Pullm an, correspondent b ank ing officer. Waterloo National Bank of Waterloo: Scott Fetner, president; Don L. W enthe, vice president; M ilton Hennick, R. C. M exdorf, Bill Rickert and Erl Schmiesing, senior vice president; *William H. Burger, senior vice president and tru s t officer; *Max Wm. Cory, Willis Crees, *Richard J. Jung, *Curtis D. Kyhl and *Donald L. Stonewall, vice president; *Robert M cK instry, a ssista n t vice president. Waterloo Savings Bank: Dale K. DeK oster, president, and Robert V. Cooper, senior vice president. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis We’ll provide the com prehensive data services you need, so you can spend more time banking. So, start corresponding with Security. You’ll be glad you did. At Security National, we know data processing. And we can make it work for you. All it takes is a call. For data processing, trust services, consumer credit, overlines, operations, and ag lending, we’re your single source. Jim H ongslo Correspondent Banker 712/ 277-6625 SECURITY N A TIO N A L B A N K SIOUX CITY, IOWA. MEMBER F.D. I. C. N orthw estern Banker, S eptem b er 1978 122 Io w a N ew s Equipment and Service Firms Bank Building Corporation, St. Louis, MO: Roy W ingers, consultant services m anager; H arvey Leaver, d iv isio n p r e s id e n t, a n d D o n ald Anderson, program analyst. Banks of Iowa Computer Services, Cedar Rapids: Jo e P h e r n e tto n , president; W m. C. McCormick, executive vice president; E d Kadera, se n io r m a rk e tin g officer; L a rry Eilers, senior m arketing representa tive; Brian Phillips, custom er service m anager, and B rian Scott, m arket ing representative. Bankvertising Company, Cham paign, IL: E arl F. Crouse, chairm an. Blender Co., Howard J., Dallas, Tex: L arry Retherford, Des Moines. Brandt, Inc., Watertown, Wis.: Jam es O. Grimes, Omaha. Burroughs Corporation, West Des Moines, I A: Dale B eaty, Terry Sm ith, * Keith Bandle, Jerry P eter sen, Bill Grimm, John W ashburn, M arv M cElvain, Rich Miller and Jerry Ross. Chiles, Heider & Co., Omaha, NE: Fred Douglas, Tad Dunham , Jo n Narmi, sales representatives and David Van M etre, senior vice president. Fred Douglas Collateral Control Corporation, J r., assistan t vice president. Daktronics, Inc., Brookings, SD: Des Moines, I A: E d Ames, vice president; Wes Johnson, regional Larry Fjeldos, region m anager. Data Business Equipment, Inc., sales m anager, and Russ H eston, Des Moines, I A: A rt Ju ra , Larry field representative. Continental Western Life Insur Pardubsky, Jim Kelley, Leonard ance Company, Des Moines, la.: W aldorf and Don Jones. Deluxe Check Printers, Inc., St. Vinton S. N u tt, president; Ray A. M c F a d d e n , vice p r e s id e n t a n d Paul: Bill McKinley, Des Moines; director of agencies; Dennis Bray, Jack Rolston, Iowa City; Clyde vice president and treasurer; Allan M cEntire, M arshalltown. R. G. Dickinson, Des Moines, IA: P ra tt, M ark Snider, Dick Kobernusz, Ronald Black Richard Ka- J . Philip Boesel J r ., president; ding, assistan t vice presidents; William K. Schroff and Bob Gibb, Jim D ysart, advanced underw riting vice president, and Robert Roberts. Diebold, Inc., Des Moines, IA: specialist; Phyllis Fletcher, assistan t secretary; Linda Snell, assistan t John M urphy, regional m anager; treasurer; M ary T ibbetts, Cindy Richard S. Gwinn, special accounts Page, Melinda Wellen, Michele representative; William H. Osier and Reno, Barb Wall, Susie M iget, Merle William S. Bedell, sales representa Aller, Ted Phillips, Robert Stone- tive. Eastman Kodak Company, Des braker, Ted Longenecker, H arry Moines, IA: Gary Sauerteig, ♦Den Long, Craig N u tt, Lisle Payne, Tom Tow, A rt Boyken, Richard Henna- nis Colburn, Steve Penisten, micro gir, Jack Pease, Ed Goehring, and graphics sales representatives, and Richard Ruthenbeck, district sales Richard H allett. m anager. Credit Bureau Data Centers, Inc., Farm Tax Saver, Des Moines, IA: Des Moines, IA: Bob Penaluna, Bill ♦ Jam es F . C oyne, d ire c to r of F lu e g e l, P a t ty C o lle tte , M ark m arketing; Robert M. Dunaway, Beaton and Jerry Jackson. editor, and * Ginger Kuhl, editorial Dain, Kalman & Quail, Inc., Minneapolis, MN: Paul H. B artlett assistant. Jon Narmi Tad Dunham David Van Metre S e e you a t the Iowa Bankers Convention Chiles , H eid er & Co., I nc . MEMBER N E W YORK STOCK E X C H A N G E , INC. 1300 W O O D M E N TOW ER OM AHA, NEBRASKA 68102 ■ (402) 346-6677 J N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 123 a dynamic LEASING PLAN will put the tools of successful management to work for your customer In the face of rising costs and the need for expansion in business and agriculture, your bank can help pump “ new life” into your customers’ operating capital by working through The CNB Leasing Corporation. HOW LEASING WORKS. . . 1. Your customers determine the exact equipment they want. They pick the supplier or manufacturer and negotiate the best price they can. 2. CNB Leasing C orporation w ill then purchase the equipment your customers have selected and order it delivered to them. 3. When the equipment is delivered and accepted, we will pay the supplier and thereafter invoice your customers in accor dance with the terms of the lease. Leasing has several important advantages, the most important of which is the conservation of working capital. Besides conserving capital: Lines of Credit Are Augmented. Keeping bank lines open for short term credit is important to the success of your customers and of your bank. Obsolescence is Minimized. Your customer pays for the use of equipment only during the period of need. Worn or obsolete equipment can be replaced when the lease expires, regardless of depreciable life. Inflation is Hedged. In a cash purchase, your customer pays today’s dollars for using equipment in the future. Also, a true lease enables your customer to recover leasing expense through a tax deduction in the same year the payments are made. Budget Limitations Are Overcome. True leasing allows you and your customer more flexibility in planning capital needs. Lease payments permit quick and easy acquisition of needed equipment. Want to know more? In Iowa call us toll free at 800-362-1615 (Extension 7222). From states other than Iowa call us collect at 515-245-7222. CNB leasing corporation 900 CENTRAL NATIONAL BANK BUILDING SIXTH AT LOCUST DES MOINES, IOWA 50309 Affiliated with Central National Bancshares, Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 1 24 Io w a N ew s F inancial In stitu tio n S ervices, Inc., Nashville, TN: Lom e R. Newhouse, Steve Carron and Barry Thompson. Financial System s, Inc., Kearney, NE: D ave W a ld ro n an d E d W ieshaar. First Mid America, Lincoln, NE: *Joe W atton, Mike Grace, John Frenking, *Mike Van Horne, Gary Fenster, *Mary Cary, Merrill Jo h n son, Jim Glaser, June Glaser, *Ray Sharpe and *Don Bland. General Bank E quipm ent & Systems, Inc., Omaha, NE: Tom Sternberg and John Lawder. Glide/File, Lake Bluff, IL: *Peter M. Braunschweig, vice president; W illiam ' H a r d t, r e p r e s e n ta tiv e ; Douglas Milliman, representative, and Ronald D. Wick, mid-west m anager. Kirk Gross Company, Waterloo, IA: Richard T. Zahn, president, and Gerald L. Gross, vice president. Guardsman Life Insurance Com pany, West Des Moines, IA: Larry D. Green CPCU, regional director, and Ron Davis CLU, vice president and director. John H. H arland Com pany, Atlanta, GA: *Rick Rochelle, area sales m anager; *Nick Kimble, *Gary s e c re ta ry ; W illiam C. M a rtin , H arris, and *Bill Duggan, sales account executive; John R. B assett, president, and William C. Tomson, representatives. Hawkey e Bancorporation, Des vice president. Koch Brothers, Des Moines, IA: Moines, I A: Paul Dunlap, president, Robert M urray, senior vice presi Dick M cFarland, sales m anager; Jim dent, and Stephan Jones, vice Soul, Jerry Blackford, Dutch Koch, Mike R em ster and John Randall, president. E. F. Hutton & Co., Des Moines, sales representatives. E. F. Kooker Associates, Spencer, IA: *G ary V. L ew elly n , vice president; *Bob Kirkendall, *Greg IA: Earl F. Kooker, owner. LeFebure Corporation, Cedar Rap Wolfe and *Glen T schetter, account ids, I A: Frank R. Volesky and executives. IBM Corporation, Des Moines, Richard A. Collins, branch manager; IA: D a v id T h o m a s, m a rk e tin g Lon W arren, Finley Jackson, I A: m anager; John A. Jew ett J r., Randy Jack DuD ash, Gerard Cholet and W illiams and John Frantz, m arket George Vinson, sales engineer. Life Investors, Inc., Cedar Rap ing representatives; J a n Nicholas and S u z a n n e D a v is , m a rk e tin g ids, IA: Dick Moore, m arketing support representatives; data pro director; Norm an H artw ig and Gary cessing division: W ally Geiger, Livesay, bank m arketing co-ordina Steve Tangredi and * Spencer A nder tors. Midwest Bank Builders, Omaha, son, m arketing representatives, and NE: M athew J . Thornton. Bob W rack, system s engineer. Mortgage Guaranty Insurance Iowa Bankers Insurance & Servi Corporation, Milwaukee: Edw ard J. ces, Inc., Des Moines, IA: A1 Tinder, office m anager; Don D ough Kallemyn, director of sales, north erty, Bill Carr, Jim Jensen and Ron central states, Des Moines; Raleigh Alen, Cedar Rapids, and Gordon Meyer, vice president. Iowa New Outlooks Association, Chapm an, W est Des Moines, region Nevada, IA: David F. Anderson, al directors, development. Mosler Safe Co., Chicago IL: executive director; Jam es H. Leslie, Welcome to the 92nd Annual IBA Convention Y ou are in v ited to jo in us in our Hospitality Suite Holiday Inn (Downtown) Contact our rep resen tatives as w e have several p lan s o f op era tion w h ich co u ld b e a service to y o u r cu sto m ers. CONTINENTAL WESTERN LIFE INSURANCE COMPANY LIFE ANNUITIES ENDOWMENTS INCOME DISABILITY Phone (515) 278-5941 Home Office: 11201 Douglas Avenue (Interstate 35-80), Des Moines, Iowa 50322 N orthw Banker, S eptem b er Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7978 125 We’re Heading For Des . . The bankers from ‘Drovers Country’ are on our way to Des Moines to join you at your 92nd Annual Convention. We’re bringing along our full team ...starting right at-the-top. We’ll look forward to visiting with you and telling you a little about how ‘Drovers Country’ bankers have put their know-how to work for Iowa bankers, like yourself. RESULT: Greater profitability! D ro v e rs B a n k o f ChiCQQO 47th Street & A shland A venue, C hicago, IL 60609 (312) 927-7000 Member: F.D.I.C., Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 126 Iow a N ew s F o rd C am p b ell, re g io n a l sa le s manager; Gary T ibbetts, Bill Pierce and Harvey Larson, sales represen tatives. National Fidelity Life Insurance Company, Des Moines, IA: Craig Ross and Richard Wolf. NCR Corporation, Des Moines, I A: Jam es A. Schulte, district director; Robert C. Lapinski, region al director; Michael M urphy, district director; William Stafford, account m anager; M arcus Wilson, sales representative; Jeffrey L ighthart, account m anager; David H eath, sales representative; Roger Still and Gary Hofdahl. Nesper Sign Advertising, Cedar Rapids, IA: Larry J. Sovern, vice president. N ovick & C o., In c ., M. H. , Minneapolis: H erbert W. Olson, sales representative. Newlin Bank Sales, Des Moines: R ic h a rd C. N ew lin, p re s id e n t; M artha J . Newlin, vice president, and William D. Newlin, assistan t vice president. Omaha Financial Life, Blooming ton, MN: J a c k F o r n te r , vice president-sales; Norm Fletcher, as- sistan t sales m anager (western); Stan G rout, eastern Iowa regional m anager, and Bill M urray, w estern Iowa regional m anager. Personal Banking, Des Moines, I A: Donald H . Jordahl, president. Pitney-Bowes, Des Moines, IA: Rich Appenzeller, Bud Bougher, Earl Howard, *Dean Jess, *Dick Jess, John Kyker, Ed Sundal, ♦Dixie H unt, *Carla Sears, *George Straubinger, area sales representa tiv e s ; D ick R ich, field sa le s m anager; George Robbins, field service m anager, and Jam es R. Patterson, branch m anager. Travelers Express Company, Inc., Minneapolis: David K. H oagland, Des Moines. United Guaranty Residential In surance Co., West Des Moines, la.: Howard Turner, J r ., and Jerry Powers, regional representatives. United States Check Book Compa ny, Omaha, NE: Richard Dick, president; Chuck S tra tta n , W alt Schlenker, Chuck Peterson, Bernie Burger and H arry Francis, represen tatives. U .S. Life Credit Life Insurance Company, Schaumburg, IL: Jim Lee, vice president; Joe Zearing, field vice president; Bob A tess, Steve McKelvey and *Roger Jerrick, district m anager. Vacumet, Inc., St. Clair, MI: Jam es J . Wallace, sales m anager. Emmetsburg Bank Names Assistant Cashier John F. Spies, president of the Iow a T r u s t & S a v in g s B a n k , Em m etsburg, h as a n n o u n c ed the prom otion of Jay T. Randall to assistan t cash ier. M r. R a n d a ll has been serving the bank as m ar keting represen tative during the J. T. RANDALL past year. Retires at Fort Dodge A fter 42 years of service w ith the F irst N ational Bank of F ort Dodge, Maxine Hillesland recently retired as tru s t operations officer. She began work w ith the bank in 1935. s World of Northwestern Bank Of Sioux City An Affiliate of Northwest Bancorporation Banco N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Great New Concepts in Packaging banC lub Better Way A u to m atic Transfer o f Savings to C hecking WÊÊÊÊT See Us at the Conventions Financial Institution Services, Inc. 725 Melpark Drive Nashville, Tennessee 37204 800-251-8442 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W e ll b e a t th e Iow a B a n k ers C o n ven tio n (B o o th # 2 1 2 ), th e A B A C o n ven tio n (B o o th s # 4 1 & # 4 2 ) a n d th e BMA C o n ven tio n (B o o th # 8 7 U pper Hall). Take a lo o k in sid e o u r p a c k a g e . Y o u ll lik e th e a n sw e rs BANCLUB h a s f o r yo u . 128 Io w a N ew s Group Chairmen Report Area Conditions businesses should have a p retty good year. shipped. W ith the governm ent loan rate at its present level, a lot will go Group 2 under seal. Earl J. Underbrink, group chair As for price, the future is not very and business conditions in their bright for corn. M ost think it will be m an and president, F irst National areas: under $2 per bushel. Beans look a Bank, F ort Dod little better. They could be in the $6 ge: Crops in the to $7 range after harvest. M ost Group 2 area are Group I Clifford H. Young, group chair yields will be above average. As I in excellent con m an and executive vice president, have told several, “ Thank goodness d itio n a t th is it appears we will have som ething to time. We have Onawa State sell. I t doesn’t m atter much w hat the e n j o y e d g o o d Bank: The wea price is if you have nothing to sell.” g ro w in g c o n d i ther in the Group I should also m ention th a t this is tions since p lan t I area has been being w ritten the first p a rt of i n g . C h e m i c a l exceptional. M a A ugust. A lot of things can happen weed control has, ny farm ers will in m ost cases, been effective. yet before the crop is harvested. c o m m en t t h a t Looking ahead regarding cattle Rainfall has been adequate and they have never and hog prices, the future may be a timely w ith sub-soil m oisture resto r seen a more per little brighter for cattle than hogs. ed. Storm , hail, insect and wind fect growing sea Since the corn price will be down, losses, while occurring in some son. As one farm er commented, “ The corn and beans feed will be cheap and the livestock areas, have been small compared to tonnage will be up. Feeders will tend the total production potential. have not had one day of stre ss.” The main concern of our farmers We will have a good corn crop. The to sell a t higher weights, driving involves price and available storage. one concern at this tim e is the prices down. The demand for operating money W ith prices declining, storage space possibility of an early frost. The bean crop is good, b u t possibly not continues to increase year after year, at a premium, and a bum per crop in quite as good as last year’s record and the cost of machinery is the m aking, there is some pessimism staggering. We are discouraging all among our farm ers and a great crop. M o st e le v a to r o p e ra to rs are but the m ost necessary machinery tendency to “ hold” rather than sell. concerned since they have very little p u rc h a s e s in our b a n k . M o st Even so, with stronger livestock room for new crops because of too operators cannot generate enough prices, we expect m ost of our much carry-over of last year’s crop. income to w arrant a new combine custom ers to survive these sh o rt term problems, m aintaining strong A few elevators are fortunate enough purchase, as an example. Retail sales are up or equal to last financial positions w ith some having to have their house em pty and ready. These have their own trains and can year and spirits seem to be p retty an outstanding year. Farm er financing has changed in get rid of the grain. Much of the good in the retail comm unity. If the grain will have to be farm stored or harvest and livestock prices go as we our area — away from tractors and piled on the ground until it can be have discussed above, the retail combines and into livestock produc tion and storage facilities. M ost of the additional dollars spent on livestock facilities has been for hog ROBERT J. KIRKE, P res. THOM AS L. WORMLEY, Exec. V. Pres. buildings, with the m ajor application of f unds for rem o d e lin g a n d MICHAEL W . SPARKS. V ice P re sid e n t improving rather than additional buildings. Generally business conditions are good. T he d e m a n d for lo an s Q o . continues strong w ith substantial increases in outstandings being experienced in commercial, real MUNICIPAL BONDS EXCLUSIVELY estate and consumer instalm ent loans. W ith higher wages and nearly Underwriters# Distributors, & C onsultants full employment, consumers have been willing to take on additional for d e b t d e s p ite th e re d u c tio n of G eneral M arket M unicipal Bonds purchasing power resulting from i nfl at i on. W e do n o t e x p e c t and Industrial R even u e Bonds construction for homes to continue at the pace established in the p ast 518 Stephens Bldg. Phone 515—243-6119 few years. However, in general, we DES M O I N E S . I OWA 50 309 expect a favorable business climate for the balance of this year extending well into 1979. ROUP chairmen of the Iowa Bankers Association have su b G m itted the following reports on farm § h a w , ]y [c D e rm o tt & N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 129 "Ifc »V * « # «*» Ss,.» » W ’ -J^ Iowa’s fertile lap is a patchwork of peace and plenty. The pork grows lean and the com grows tall Communities hum with prosperity Iowa bankers keep them humming. W e salute you. fM mg Member FDIC First Minneapolis We ll be there. First National Bank of Minneapolis, 120 South Sixth Street, Minneapolis, Minn. 55402 Phone: 612/370-4167 N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 130 Io w a N ew s Group 3 Glenn O. Emmons, group chair man and executive vice president, Northwood State Bank: In spite of a very wet, hot July, m ost of the crops in our nor th Iowa section are in excellent c o n d itio n . T he grain harvest is completed w ith normal yields be ing reported. Much of the second crop of hay also has been made. M oisture-wise, conditions are very adequate a t this tim e for corn and soybeans. Very little more is needed during the rest of the growing season for at least average to better than average yields. In our immediate area, hail has caused only very slight damage, although medium to very heavy damage by hail has been experienced in areas west and east of here. Twenty miles north and east of here in the Mower County, M inn., area, some 40 square miles have suffered severe hail damage. Business conditions locally are brisk. Our m erchants report th a t sales have been good throughout the summer. Our local county fair had very good crowds, and the m anage m ent reported a good profit for this year. Quite a num ber of new homes are being built locally in spite of high m aterial and labor costs. A large new poured concrete storage facility is being added to our local cooperative elevator. I t will be ready to handle the corn and soybeans th a t will be sold this fall. M achinery sales, however, are slow. Our cattle and hog feeders report t h a t th e ir o p e ra tio n s are s till profitable, b u t they are hoping th a t prices will be better later on this fall. W ith corn prices low as they are, the hog feed ers r e p o rt t h a t th e ir positions are favorable. We believe th a t 1978 will be a good average year for our farm ers. This probably is more true for the livestock feeders than for the grain farm ers. Chances are th a t the grain farm ers will seal all, or m ost of their crop, hoping for increased prices later. M any of them are erecting storage bins in anticipation of keeping the grain on their farm s. All in all it appears th a t the economy in this area will continue to be favorable. Group 4 Churchill T. Williams, group chair m an and chairm an, Oelwein State B an k : G en eral crop conditions look excellent in northeast Iowa, however excess m oisture and h ig h h u m id ity are causing some co n cern a b o u t corn bores and beetles. Corn pri ces have fallen to 1978 lows and further price reduction is likely. Loan price should stabilize cash prices after harvest as storage is somewhat better than last year. Soybean acreage is up. Volunteer DON'T FORGET US AT U.S. CHECKBOOK CO. for ALL your Bank Supplies We have Plenty of “ TIME” for you! AND IT W O N ’T BE LONG UNTIL OUR SALESMAN W ILL BE AROUND! • • • • Bank Printing Checks Computer Supplies Office Needs The “WORKS” you need to RUN your bank United States Check Book Company 1201 SOUTH 16TH STREET - OMAHA, NEBRASKA 68108 In Nebraska Call 402-345-3 162 Out of State Call Wats Line 1-800-228-9246 N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis corn in soybeans has caused added tillage expense and some beans will be dam aged. Bean yields should be ^ good, and I expect prices to hold near the $6 level. Forage is abundant and hard to sell. If actual farrowing are near intentions, hog num bers should be up, b u t butcher prices should hold above $40/cw t. M ost hog producers -+ should get acceptable return on in v e s tm e n t. C a ttle feed ers are reluctant to replace a t this tim e, bu t « depressed corn prices could encour age buying. Dairy outlook is good for the year ahead as milk prices are s up and production is down. Overall, 1978 and the first half of 1979 will be no bonanza for farm ers-but no wholesale stress conditions. General economy in this area rem ains good w ith employment quite stable. In spite of the tig h t m ortgage ~ m arket, new house construction in northeast Iowa seems unusually strong. ^ Inflation and high energy costs are still dom inant in the economics of m ost households and are a deterrent to any expansion of retail sales. M ost retailers will have only a m arginal year while it appears car dealers and implem ent dealers will experience a relatively good year. Some evidence is seen in the private sector of protests against the high cost of food and services and a possible revolt against any increase in taxes could be in the wind. Group 5 Ronald Sealock, group chairm an and executive vice president, Council Bl uffs S a v in g s Bank: The crops in s o u t h w e s t Iowa look better this year than they have for the p ast several y e a rs . R a in fa ll has been adequ ate, the tem pera ture has been cooler, pollination of corn seems normal, and in general, we should be looking a t above average yields for our crops. Farm ers now are concerned about last year’s crop. M arket prices for * corn and soybeans have weakened as the prospects for a good crop have improved. Unless corn prices im- A prove in the next 30 to 60 days, it looks like corn under seal will be TAKING OFF TO LAND TOUR GARY STEVENSON BERNIE LA7TYAK Vice-Presidenr Assurant Vice-President . Correspondent Services for bonks and bonkers in the Tri-State area. Looking forward to seeing you at the Iowa convention &the South Dakota group meetings. First National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis is i 712-277-1500 Sioux City • A BANKS OF IOWA’ BANK 132 Io w a N ew s delivered to the governm ent when corn loans m ature. Livestock prices, one of the bright spots in the farm ing business this p a s t y e a r, h a v e exceeded th e expectations of even the m ost optim istic cattlefeeder. C attle p u r chased last fall and winter have returned feeders a good price for their corn, covered all machine and labor costs, and still made some very fine profits. This has given farm ers a chance to reduce operating loans from cattle profits. Replacement of feeder cattle this fall will probably be expensive, due to higher fat cattle prices and an abundance of feed available. While hog prices have not kept pace w ith cattle prices, they have m aintained a good return for the hog m an. Prices for hogs are still at a level where profits are available for hog feeders and hog producers. Hog confinement buildings have been going up at a rapid pace, and it looks like several more of them will be b u ilt n e x t y e a r. R e se a rc h indicates th a t a good confinement building not only reduces labor costs, b u t increases feed efficiency and m akes it easier for one m an to Put Our C lo se r to Y o u T ru st O ffic e rs on Your Financial Team GARY ERNST VERN GERICKE Vice President and Trust Officer Vice President and Trust Officer Assisted by these other experienced trust officers: • LILA HELMS • KEN SCHOENAUER • MARK COLLISON • STEVE MARGET Plus an experienced legal secretarial staff Offering You Complete Correspondent Bank Services eoples b an k AND TRUST COMPANY Cedar Rapids • FDIC • FRS N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 handle a larger volume of hogs. It also commits a producer to hog production for several years ahead. Confinement buildings differ, and producers need to be sure the building they are investing in is a good one. Business conditions in our area have been good this year, due in p art to good cattle and hog prices. While some farm ers have participated in the governm ent program , they have increased the am ount of fertilizer used on the rem aining acres and volume of seed, fertilizer, and chemicals has rem ained equal or above last year. Indications are there will be less acres of corn this year, but there will be more bushels produced. Cash rent for farm land in 1978 remained about steady with last year. Land values seemed to soften last fall and early winter and then continued their upward climb during the first six m onths of 1978. There still seems to be a strong demand for land by farm ers w anting to expand their operation. Group 6 D. A. Bolton, group chairm an and executive vice president and tru st officer, U nion State Bank, W in te rs e t: T he crops in the 12 c o u n t i e s in Group 6 are an entirely different story than ju st one year ago. One year ago we were in the grip of a very severe drought w ith virtually no hope for a decent crop harvest. This year we are anticipa ting a bum per crop over m ost of our area. We had good subsoil m oisture from the late rains and heavy snows of last fall and winter and the rains came again this spring and seemed to go on forever. Planting was unseasonably late in m ost areas, particularly in the southern one-third of our area. However, the crops grew rapidly after planting and are catching up w ith the season. It appears th a t an early frost is our m ajor concern at this time. G rass and hay are extremely im portant in this predom inately livestock area. The grass is holding up well. Our farm er friends report 133 SERVICE IS OUR BUSINESS For over 30 years National Fidelity Life has prided itself on per sonalized service from its well trained field representatives and home office staff. We have listened to you as bankers, and know that your loan customers are important to you and that’s why that customer is important to US. Many companies sell only commissions and have little else to offer. It has been National Fidelity Life’s philosophy to go beyond commissions and provide excellent claims service. Perhaps it’s time to take a closer look at your present credit life company and see if they really are providing the good service you deserve. For additional information, contact Craig Ross or Rick Wolf. N a tio n a l F id e lity L ife 8555 Harbach Blvd., Suite 102 Des Moines, Iowa 50311 Tele: 1—(515) 279-3624 See You at the Instalment Lending Conference and the Iowa Bankers Convention. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s tern Banker, S eptem b er 1978 134 Io w a N ew s Group 7 the m ost and the best quality hay L. C. P ik e , g ro u p c h a ir crop in m any years. Economically, the SB A and Fm- m an and president, Farm ers Savings HA disaster loan program s and the Ba n k , G r u n d y ASCS disaster paym ents saved m any C e n t e r : C r o p of our farm ers from leaving the farm. conditions in our Those program s generated m any area as of the millions of dollars and helped the first p art of A u loan-deposit ratio of m ost country gust on the whole banks, I ’m sure, as well as helping look e x c e lle n t. m ost suppliers of agricultural needs. Rains have come I understand th a t m any machinery along a t ju st the dealers are still having a hard tim e r ig h t tim e to from the lack of sales during 1977 make our pros pects for crop yields about the best and the early p art of 1978. Livestock prices have held up very ever. We had problems detasseling well. W ith the price of grain being as low as it has been, our livestock some of our seed corn fields because custom ers have been m aking some of too much rain and rapid growth. A money. The farm er who sells his few seed fields may have to be grain is probably looking at quite rejected. Heavy winds during the low grain prices this fall and w inter fast growing season caused the stock and there will be quite a lot of grain to be brittle and break off. Locally this caused considerable loss in some sealing. In conclusion, it appears th a t seed fields and the “ goose-necking” m ost farm ers survived the drought of the stalk in commercial fields. of 1977, by refinancing in one way or However, in m ost cases the crops another. I t rem ains to be seen look great. Now the sad p art. We live in the whether or not they can now produce enough net income to properly food belt of the world and here Corn service their current and long-term is King. By the time this crop is harvested, corn m ay be the Joker. debt. flU T D m flT E D □ F We have big surpluses hanging over our heads w ith carry over of the 1977 crop and a bum per crop around the corner for 1978. Right now it costs $2.25 to raise a bushel of corn. The current m arket is $1.80 and best guesses are th a t it is headed lower for the next three m onths. We could be looking a t $1.50 corn this fall m aking the 1978 crop a big loser. Beans should yield well w ith m any fields going over 50 bushel per acre. This is a good cash crop and still makes our farm ers a little money. A $5 per bushel price at harvest tim e will not be a big surprise in face of a bum per crop. Good money has been made this year from sale of fat cattle. In m any cases, the price has been 10 cents and 15 cents over w hat they cost laid in last fall and winter. The cattlem an has long deserved this break to make up for the beating he was taking ju st a few short m onths ago. The big concern right now is the high cost of replacem ents. Yearling replacem ent cattle look like about 10 cents above the present day fat cattle m arket with fall calves asking over 15 cents above the m arket. We are urging our farmers to exercise S V S T E ÎT 1 S iD W fl.in C . Financial Insurance Services available in a tailored package fo r your bank. Property, lia b ility coverages, bonds, directors and officers lia b ility , lender single interest, and other coverages that may be desirable for your bank. Years of experience dealing w ith financial in s titu tio n s plus several markets specializing in financial in s titu tio n insurance are the added advantage of Autom ated Systems of Iowa. JON M. GRINDLE EDWARD J. LENAGHAN 108 C R E S TV IE W DRIVE M O U N T V E R N O N , IO W A 52314 319-895-6452 417 S E - 5TH STR EE T A N K E N Y , IA. 50021 515-964-1358 Problem solvers for insurance needs PiUTGm PiTED S Y S T E iT lS □e iawFi,inc. 417 S.E. 5TH STREET ANKENY, IOWA 50021 N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 (515) 964-1358 135 Hill Hammock Vice President Milton F. Darr, Jr. Vice Chairman-Board of Directors The four of us will be Hal Sauer Loan Officer Dick Brown Assistant Vice President representing LaSalle National Bank at the Iowa Bankers Convention. We look forward to seeing you there! LaSalle ...th e bank on the move LaS alle N atio n al Bank, LaS alle Bank Building 135 S. LaS alle S treet, C h icag o , Illin o is 60690 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 Io w a N ew s 136 restraint in buying at these high prices and to not give away their 1978 profits. Replacing fat cattle will be a difficult task during the balance of the year. Hog feeders have been on the black side of the ledger all year, especially the men raising their own. The “ feeder” buyer has had to be c o n te n t w ith n a rro w m a rg in s. Efficient conversions of feed and g ra in to p o u n d s is e x tre m e ly im portant to both the hog m an and the cattle m an in view of these narrow m argins a t to d ay ’s prices. Low corn m arkets coupled with continuous inflation are of great concern to us furnishing credit to agriculture. Business conditions for m any of our small town m erchants have been a sideways wiggle compared to a year ago with sales quite sluggish and net profits running behind. Auto sales were poor the first quarter, good the second quarter b u t have slowed down at the present tim e. The high prices being quoted for new models have left the local dealers with a feeling th a t the last half of 1978 m ay be on the slow side, too. In G rundy Center we have about 10 new homes under construction. This is slower than the peak years, b u t p retty good considering the high cost of construction. Several new commercial buildings are going up and m any farm ers are buying grain bins so they can store the corn on the farm and keep it out of the pipeline for a while. Unem ploym ent rem ains low w ith our workforce practically totally employed this summer. Group 8 Robert C. Wede, group chairman and president, Goose Lake Savings Bank: This area has had plenty of m oisture, crops look good to excellent and p astu res the same. Our beef and hog produ cers have made money this year for the first time in the last several years. The price of replacem ent stock has gone up with the fat m arkets and thus increases the speculation of feeding live stock. Farm land prices have been going up. Every tim e I hear of a sale, I wonder where and when it is going to end. The price of this land is not going up because of the price the farm er receives for his products. I t is mainly speculation and city buyers. They still w ant land and don’t seem to care if it is tillable or even productive and going to pay for itself. The general business climate in M uscatine, Iowa City, Clinton, and D avenport continues to be favorable with unem ploym ent well below the national average. The outlook for Clinton and M uscatine is very fa v o ra b le , as b o th hav e corn processing industries in them and the price of this crop should be considerably cheaper this year. Iowa City has a fairly stable economy with the U niversity of Iowa located there and a num ber of stable small companies supporting its industrial base. The same can be said this year as last for the Quad City area. I t is rather cloudy because their economy is heavily dependent upon farm equipm ent m anufacturing and con tinued demand for farm machinery Specialist in Bank Insurance Markets Throughout the United States Robert A. Carney President J. Richard Morran Vice President CONTACT Insurance Programmers, Inc. The Tower, Suite 720, Rolling Meadows, IL 60008 • 312/593-3121 See You at the Iowa Bankers Convention Represented in Iowa by Automated Systems of Iowa, Inc. N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 137 bankers participating LeasePlan 1. 2. 3. LeasePlan provides a way for banks to participate in the growing equipment leas ing business without: a. forming a leasing subsidiary, b. added overhead, c. additional personnel, d. costly training. 6. For generating a lease, a cash commission will be paid. 7. ADVANTAGES TO THE BANK: a. b. We will handle the details, complete the • sale, write the lease and provide the necessary lease documents. c. The bank will be offered the opportunity to finance the lease with a loan to the lessor. d. 4. If you decide to participate we assign the lease to your bank, and all payments come direct to you. 5. As security, the bank has: a. the credit of the lessee, b. the credit of the lessor, c. security interest in the equipment and assignment of the lease, d. Credit Insurance, which guarantees the bank against loss from a defi ciency balance, written by a leading credit insurance company. e. f. 8. Without an additional capital outlay, the bank is able to provide another valuable service to its customer. Leasing provides the bank with a method of extending additional credit to worthy customers. Lease loans generate a better yield to the bank than most equipment purchase loans. Because of the guarantees provided, lease loans are practically riskfree. Lease commissions are an additional source of income. Tax Credits accrue to your benefit if you serve as the Lessor. And who is an equipment lease prospect? a. b. c. Acustomerwith lending limit problems. The party who needs to conserve his cash for operations or expansions, but needs additional equipment. A customer in the higher brackets, who needs the fastest write-off possible. CREDIT REFERENCES A N D BANKS PARTICIPATING WITH LEASEPLAN, IN C . *1) lowa-Des Moines National Bank Des Moines, Iowa * 2) Central National Bank & Trust Co. Des Moines, Iowa 3) Dyersville National Bank Dyersville, Iowa 4) Elgin State Bank Elgin, Iowa 5) First National Bank St. Louis, Missouri 6) Cresco Union Savings Bank Cresco, Iowa 7) First National Mercantile Bank Montgomery City, Missouri 8) First National Bank New Hampton, Iowa 9) Security Bank & Trust Decorah, Iowa 10) Lee County Savings Bank Fort Madison, Iowa 11) Maquoketa State Bank Maquoketa, Iowa 12) Corwith State Bank Corwith, Iowa 13) Dakota State Bank Milbank, South Dakota 14) Farmers Savings Bank Boyden, Iowa https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15) Farmers Trust & Savings Bank Buffalo Center, Iowa 16) First Community Bank & Trust Traer, Iowa 17) Valley National Bank Des Moines, Iowa 18) First National Bank West Union, Iowa 19) First State Bank of La Moure La Moure, North Dakota 20) Midway Bank & Trust Cedar Falls, Iowa 21) Morningside State Bank Sioux City, Iowa 22) Security National Bank Sioux City, Iowa 23) Warren County Bank & Trust Indianola, Iowa 24) Manilla State Bank Manilla, Iowa 25) First National Bank Mason City, Iowa 26) Albert City Savings Bank Albert City, Iowa 27) Citizens Savings Bank Sac City, Iowa 28) Urbana Savings Bank Urbana, Iowa 29) Readlyn Savings Bank Readlyn, Iowa 30) Farmers State Bank Jewell, Iowa 31) Farmers State Savings Bank Independence, Iowa 32) State Bank of Waverly Waverly, Iowa 33) Community State Bank Clear Lake, Iowa 34) Merchants National Bank Cedar Rapids, Iowa 35) First National Bank Ottumwa, Iowa 36) Parkersburg State Bank Parkersburg, Iowa 37) Osceola State Bank & Trust Osceola, Iowa 38) Farmers Savings Bank Princeton, Iowa 39) First State Bank Fredericksburg, Iowa 40) South Ottumwa Savings Bank Ottumwa, Iowa 41) Schuyler County State Bank Lancaster, Missouri 42) First National Bank Burlington, Iowa 43) Clear Lake Bank & Trust Clear Lake, Iowa 44) Poweshiek County National Bank Grinnell, Iowa 45) Seymour State Bank Seymour, Iowa 46) Farmers State Bank Jesup, Iowa 47) Puget Sound National Bank Tacoma, Washington 'Lead Bank LeasePlan, Inc. 545 - 31 st Street Des Moines, Iowa 50312 R. L. “Dick” Sellon, President N o rth w e s tern Banker, S eptem b er 1978 Io w a N ew s 138 will hinge on farm income and w ith grain prices a t their current levels, one can not be too optim istic. In conclusion, everyone, rural and urban, is feeling the energy crunch, as the price of energy ju st keeps going up with no end in sight. As I indicated previously, cattle and hog producers are m aking money this year. However, with corn prices currently around the $1.95 per bushel area and w ith bean prices at the $5.75 per bushel area, this is hardly high enough price for corn and beans to pay for production costs. W ith these prices having fluctuated greatly the p ast year, the forecast does not indicate any great increase in the price of corn and beans in the near future. The overall economic outlook for our area is good taking into consideration the items I have listed above. Group 12 M. J . Kuehl, group chairman and president, Security S tate Bank, Lake Park: The crops are very good in n o rth west Iowa. E x p e c t a t i o n s on corn yields will vary from 125 to 150 bushels per acre. We have had some hail and along with 18 inches of rain to this date, the low areas are drowned out, but the overall picture shows th a t we will have good yields on corn, soybeans and hay. The cattle and hog num bers are up. If the prices on livestock continue, we will see good profits 55 Bankers Attend Iowa Lending School THE Annual Instalment Lending School offered by the Iowa Bankers Association drew a registration of 55 bankers for the 1978 week-long session at Drake University, Des Moines, last month. Pictured above are several of the participants, left to right: Dave McNichols, IBA exec, dir.; James H. Struve, v.p.-inst. lending, Merchants Natl., Cedar Rapids, and James F. Grothusen, v.p.-com m . lending, Davenport B&T, both instructors at the school; Wanda Spainhower, a.c., Hampton State Bank, and Gary D. Fey, pers. bkg. o ff., Security Natl., Sioux City, both students at the Lending School. Wanda Spainhower also is an NABW scholarship winner, elegible for further college level banking studies. this fall. The replacem ent cattle costs will take twice as much money, and it looks as though the banks will be short of funds this fall and m ost of 1979. W ith a large crop forecast this fall, g ra in p ric e s w ill be low in comparison to cost of production. The land prices will continue to be high, with the average sales ranging fro m $2,100 to $2,300 per acre. M ost of the farm land is being purchased by local farm ers w ith very few outside investors. The sale of homes in this area has HAWKEYE BANCORPORATION Iowa's Fastest Growing Banking Organization Invites you to visit our booth during the Iowa Bankers Convention Hawkeye Bancorporation— Stephens Digitized forestern FRASER N orthw Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Bldg., Des Moines—515/284-193Q been slow. This is due to the credit crunch and usary problems. This is now showing improvement. To summarize the 1978 year in general, it looks like a good year for agriculture and business. Named at Washington Two local men were elected to the board of the N ational Bank of W ashington recently and a third, already on the board, was named chairman. Phil Kneen, retired W ashington businessm an, and Bill Koehler, Ainsworth area farm er, were named to the board. Keith V etter was elected chairm an. Mr. V etter, a former state legislator, is the owner of V etter’s Inc., vice president of m arketing for the U .S. W ater Co. and president of Culligan W ater Conditioning in the Quad Cities. Taunce M athiason, bank president and director, said the changes result from the purchase of the bank by H aw k ey e B a n c o rp o ra tio n , w hich became effective July 1. Four former owners and board members, John E. Goodenow, W. A. Krause, Jack Pester and T. S. Gentle, resigned from the board. 139 Let’s all get together in Des Moines at this year’s Iowa Bankers Convention. Hubert and his retinue of Harris Bankers look forward to greeting their old friends and meeting new ones. We’ll see you at the Iowa Bankers Association Convention in Des Moines from September 24th through 26th. First row (left to right): Ed Kennedy, Christina Wilkins, Stan Peirce, Jerry O’Connor. Second row: Jim Hill, Hubert, Jerry Pearson. HARRIS BANK. H arris Trust and S avings Bank, 111 W. M o n ro e St., Chicago, IL 60690. M e m b e r F.D.I.C., Federal R eserve System . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, S eptem b er 1978 140 OLLOW ING the m onthly board F of directors m eeting last m onth, R a y m o n d G. Johnston, presi dent and chief executive officer of C entral N a tional Bank and T rust Company of Des Moines, announced a change of duties for Ivan L. John son, e x e c u tiv e vice president, the election of James I. Mackay to senior vice president in charge of the lending functions, the elections of Joe Baumgartner to assistan t vice president of the credit departm ent, and a title change for Hilda Robinson from m anager of the credit departm ent to loan services officer. W ith the various adm inistrative and planning functions the bank has assum ed, it was approved th a t Mr. Johnson, who is also a director of the bank, will assist President Johnston and be in charge of national accounts, the main bank first floor, offices at Ingersoll and in W est Des Moines, together w ith the proposed S o u th D es M oines O ffice. In addition, he will also be in charge of J. BAUMGARTNER H. ROBINSON N orthw estern Banker, S eptem b er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 Iowa-Des Moines N ational’s interna tional banking departm ent, said this branch provides the ability to operate in international m onetary m arkets, especially the Auro money m arket. This greatly improves the Iowa-Des Moines N ational’s ability to serve its local custom ers, Iowa m anufacturers and its correspondent banks, he said. M r. T rem m el d e s c rib e d th e principal m arket for service through the new branch as medium to small Iowa firms, some of which are served by Iowa-Des Moines N ational and m any through his b a n k ’s correspon dent banks. Mr. Tremmel noted th a t according to the U nited S tates D epartm ent of Commerce latest report, for 1976, security and purchasing for the bank exports from Iowa totaled more than and construction for bank expansion. $3.3 billion, of which $1.8 were from Mr. Johnson was elected executive agriculture and $1.5 in m anufactured vice president on Septem ber 20, goods. The Commerce D epartm ent 1977, and has been with Central m aintains an office in Des Moines. National Bank since 1948. The city also “ has good freight M r. M ack ay g r a d u a te d from forwarders and custom house bro Indiana U niversity where he obtain k e rs,” Mr. Tremmel said. ed a BS in Business A dm inistration The G rand Caym an office will be with a concentration in business o p e ra te d u n d e r a m a n a g e m e n t m anagem ent and economics. He contract with the tru s t departm ent began his banking career with of B arclay’s Bank of London branch M erchants National Bank and T rust in the Caym ans, Mr. Tremmel said. Company of Indianapolis and was *** vice president and division executive in charge of the Indiana division of Michael E . Finken has been the commercial departm ent prior to promoted to assistan t vice president joining the staff of Central National and tru s t officer of W est Des Moines Bancshares, Inc. on February 20 this S tate Bank. year as vice president in charge of Mr. Finken has served as tru s t loan policy and loan adm inistration. officer since M arch of 1977 after Mr. B aum gartner attended In d i joining the bank in 1976. He received ana U niversity where he m ajored in his law degree from John M arshall accounting. He served as senior Law School of Chicago and his commercial credit analyst at Indiana undergraduate degree in business N ational Bank, Indianapolis, from adm inistration from the U niversity 1966 to July, 1978, then joined of Iowa. Prior to attending law Central N ational Bank on A ugust 1. school, he was a certified public M rs. Robinson attended Drake accountant w ith the Chicago office of U niversity and is a graduate of the Lester W itte and Company. American In stitu te of Business. She *** joined Central N ational Bank on Warren K. Sparks has been November 1, 1950, as secretary in elected to the board of directors of the credit departm ent. In May, F irst Federal S tate Bank, Des 1967, she was prom oted to assistan t m anager and in Jan u ary , 1975, was Moines. He is president of C ontrac p ro m o te d to m a n a g e r of th e tors Steel Corp., a Des Moines-based construction steel sales and fabrica departm ent. tion firm. *** *** The Iowa-Des Moines National Bank last m onth opened an office in the G rand Caym an Island, the first such foreign branch established by an Iowa bank. David L. Tremmel, vice p re s id e n t-m a n a g e r of th e Central N ational Bank and T rust Company of Des Moines has entered into an agreem ent to acquire the land underlying the Green building and the building formerly occupied by Penney’s in downtown Des Moines, 141 Shown from left: Margo Foxhoven, Bill Greaves, Maurine Bjornson, Cy Kirk, Ray Schneider, Eddie Wolf, and Richard Bro. Now! The same people who brought you “I’m Determined” proudly present “Coffee and Donuts;’ during the 92nd Annual Convention of the Iowa Bankers Association, Rooms 308, 309, and 314, Hotel Savery, Des Moines. Join us! WeVe determined to do the best for you. “C ” Central National Bank & Trust Company DES MOINES (515) 245-7111 MEMBER FDIC LOCUST AT 6TH/5TH & GRAND/35TH & INGERSOLLVWDM: 35TH & I-235 AFFILIATED WITH CENTRAL NATIONAL BANCSHARES, INC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e s tern Banker, S eptem b er 1978 142 according to Raymond G. Johnston, president of Central and William Knapp, president of Iowa Realty Co., Inc. Mr. Johnston stated , “We are pleased to announce the acquisition of the northw est quarter block of Fifth and W alnut from Iowa Realty Co., Inc. I t is our plan to relocate our drive-in m otor bank from Fifth and Grand to the new location adjacent to our main bank. “This acquisition is a p art of the continued effort of the Des Moines business com m unity to help improve the downtown area. W ith our new structure, together w ith the razing of the old W ard’s building and parking ram p on Locust between Fourth and Fifth and completion of the Civic Center and park, we feel the eastern p art of our loop area will become more attractive and will draw other businesses to i t.’’ Plans call for the construction of parking for bank custom ers as well as a drive-in facility with drive-up and walk-up windows providing custom ers w ith additional conven ience for bank services. The agreement which has been signed provides for the exchange by Iowa Realty Co., Inc. of the Fifth and W alnut property for the m otor bank property presently owned by Central at Fifth and Grand. *** Organizational and title changes at Iowa-Des Moines National Bank were announced last m onth by John R. Fitzgibbon, chairm an and chief e x e c u tiv e officer, follow ing th e m onthly board m eeting. • Dee L. Frost, executive vice president, will move to the executive offices on second floor and will a ssu m e re s p o n s ib ility for b a n k operations and bond investm ents in addition to tru s t, controllers and property m anagem ent. Reporting to Mr. F ro st will be John Sikkink, senior vice president and cashier-op e ra tio n s ; R obert W issler, vice president-bond investm ent; Peter Faletti, vice president and controller; James D. Kempkes, senior vice president-trust, and Dick Pedersen, vice p r e s id e n t- p ro p e r ty m a n a g e m ent. W ithin the tru s t division, Mr. Kempkes will assum e overall m an agem ent responsibility; Richard W. Carey, vice president, will m anage affiliate relations; Lewis C. Cobb will m anage investm ents and operations; N orthw Banker, S ep te m b e r Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 D. L. FROST G. CARVER G. F. MILLIGAN M. M. McMICHAEL S? J. D. KEMPKES H. L. HORAK B. H. KERSEY L. D. DAVENPORT James W. Frost will m anage estate a d m in is tra tio n , a n d Jam es D . R ob in ette w ill a d m in is te r t r u s t m anagem ent. W ithin the operations departm ent the following were elected second vice president: Gary R. Rasmusson, in charge of operations; Gary H. McClimen, com puter services, and Ronald D. White, electronic b an k ing. W ith in th e b o n d in v e s tm e n t departm ent H. Lynn Horak and John D. Hunt were elected second vice president. • Garland Carver, executive vice president-lending, will assum e addi tional responsibility for BankCard operations and international b an k ing. Reporting to him will be Robert A. Anderson, prom oted to group vice president-lending; Dave Elgena, BankCard, and David L. Tremmel, vice president-m anager, internation al banking. M r. A nderson assum es responsibility for the commercial, real estate, dealer and loan services departm ents. Thomas H. Farris, vice president, will head up the commercial loan departm ent. Wil- J. D. HUNT R. A. ANDERSON W. W. PIRNOT J. R. RASLEY liam F. Landholt, vice president, will m a n a g e th e re a l e s ta te loan departm ent. John C. Clark and E. Leslie Greaves, both elected second vice president, will m anage the dealer loan departm ent and loan services respectively. W ithin the commercial loan and real estate departm ents the following were elected second vice presidents: Kim S. Meadows, commercial loan; R. Jack Lytle, commercial loan, and John A. Eickman, real estate loan. • George F. Milligan, senior vice president, will assum e responsibility for national accounts and in trastate m arketing in addition to correspon dent banking. W ithin the correspon dent banking departm ent Bernard H. Kersey and Lance D. Davenport were elected vice president. In the national accounts area Walter W. Pirnot was elected vice president and will be responsible for business developm ent and account m aintenance for m ajor national firms o u ts id e of I owa . Josep h M. Bognanno, advanced to second vice president for in tra sta te corporate 143 W hen an Insurance agency know s as much about banking as IBIS, growth like this is not surprising. Prem ium Volu: (in dol 5,822,996* Total D ividends (A dvance & Y ear-end) (in dollars) 177,000* 500,265 1973 1974 1975 1976 1977 1978 M any com petitors a re baffled a t the trem endous grow th Iow a B anker's Insu ran ce & Services h a s experienced in the la s t five y ears. A ctually, the rea so n s for this grow th a re very sim ple. First, IBIS is the bank's in su ran ce agency. The ag en cy is ow ned by b an k s (each Iowa b an k is a shareholder) a n d o p erated specifically for banks. They know through ex perience w h at the in su ran ce n e e d s of a b a n k are, a n d the b e st w ay to m eet them . 1973 1974 1975 1976 1977 1978 In ad d itio n , IBIS is a n agency th a t offers all types of coverage for banks. No m atter w hat your in su ran ce n eeds, they h a v e a p la n to help. Finally, the expert professional staff puts IBIS h e a d s above other in su ran ce ag e n cie s. 75 y ears com bined experience in the bank in su ran ce field qualify them to be YOUR in su ran ce ag en t. It is just good b u sin e ss to do b u sin e ss w ith YOUR agency. C all or w rite IBIS today. 'P ro je c te d 1978 fig u re s 430 Liberty Building, Des M oines, Iow a 50309 515 243-0179 Selling insurance protection just to banks. N orthw estern Banker, S ep te m b e r 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 144 Io w a N ew s Waterloo Bank “Modifies” Annual Stag ANNUAL STAG sponsored for northeast Iow a correspondents by the N atio n al Bank of W aterlo o was m odified last m onth as bankers brought th e ir spouses. Show n at left is W. Louis Beecher, c h m n ., host bank, who presided at the banquet. C E N TE R - Paul Hall, pres., Cedar F alls Tr. & Sav. B k., and Bill Ronan, p res., Decorah St. Bk., enjoyed the new form at (even though M r. Ronan is a confirm ed bachelor). R IG H T - Hoyt Messerer, p res., First N a t’l. B k., C edar Falls; Bill Rickert, sr. v .p ., host bank, and B. P. Breitbach, e .v .p ., G ilb e rtv ille Sav. Bk. helped m ake the party a success. GOLF PRIZES w ere presented by Bill Rickert, sr. v .p ., host bank, to Bob Gossard, e .v .p ., First N ashua St. Bk. (center) and George Brubaker, v .p ., First N a t’l. B k., C edar Falls. C E N T E R - Arnie Schultz, p res., Grundy N a t’l. Bk., received “ P resid ent’s A w ard ” for high golf score from Scott Fetner, p res., host bank. R IG H T - Dick Toole, p res., Farm ers & M erchants Sav. B k., M an chester, told one of his favorite stories. f our m a n a g in g o fficers of th e branches. William W. Davis has m arketing, will be responsible for been elected second vice presidentbusiness developm ent and account personal banking. Ron Dickson, m aintenance for m ajor corporate named advertising m anager, will be custom ers throughout Iowa. The responsible for the b ank’s adverti correspondent departm ent person sing program s. George Milligan, nel, as well as Mr. Pirnot and Mr. Robert Millen and Ron Dickson will Bognanno, will report directly to Mr. report directly to Mr. McMichael. Milligan. W ithin the hum an resources area • M. M. McMichael, vice chair Roger Dahlstrom was elected second m an, will continue as divisional vice president for personnel. m a n a g e r for th e c o rre s p o n d e n t In addition to the above, the banking, retail banking and m arket ing divisions. Robert G. Millen, vice following bank officers were named. president, will be responsible for all In the controller’s departm ent, Sally retail banking locations and m etro Jo Smith and Keith W. Savery were m arketing. Reporting to him will be appointed accounting officers. In the James R. Rasley, promoted to vice tru s t departm ent, W. Kent Miller president-personal banking, and the was nam ed tru s t officer. Frank G. DES MOINES NEWS N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mihalovich has been named opera tions officer, retail banking, and Robert J. Albrecht has been named m anaging officer of the F ort Des Moines Office. *** Raymond G. Johnston, president and chief executive officer of Central National Bank and T ru st Company, has announced the election of two new officers and the promotion of two officers. Elected are Gary C. Calvert as instalm ent loan officer and Richard J. Carlson as office m anager of the new South Des Moines Office, to be opened late this fall. Prom oted are Michael E. Fuson and Jon A. Gookin to operations officers. 144 A NEWL1N BANK SALES, INC. AND N arthaBU1-& Dick Newlin ...want to thank you for the continued confidence and trust you have placed in us during the past year. Our activity throughout the entire midwest continues to bring us into contact with our kind of people — Bankers! Once again we welcome the opportunity of visiting with you at the Iowa Bankers Convention. With our expanded sales force, we will soon be in a position to offer available banks and purchasers in Colorado, Montana, Minnesota & other surrounding states which we have previously neglected. If you would care to discuss the purchase or sale of a bank — w ith o u t o b lig a tio n a n d in to ta l c o n f id e n c e , please look for us at the Convention. We hope our many years of success in this business will persuade you to investigate our ability to perform. May we help You? Office# 515-278-2891 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N E W L IN BA N K SA LES 8450 Hickman Road-Suite D Des Moines, Iowa 50322 Residence# 515-276-0038 515-225-6854 N orthw estern Banker, S ep te m b e r 1978 lowa-Des Moines Displays Expanded Investment Department PICTURED in left photo in new o ffic e are: Lynn Horak (sta n d in g ), 2nd v .p .; Robert J. Wissler (back desk seated), v .p .-m g r.; Pat Kellogg, re c e p tio n is t, and Janine Young, bond inv. o ff. C onference room at right is new d ep artm en t feature. Photo at right show s special security room at far end (behind g lass). In photo at right, John B. Johnson, sr. bond inv. o ff., dem on strates T elerate m achine. AN KERS attending the Iowa Bankers Association B convention this m onth are being invited to visit the new, expanded offices of the investm ent departm ent at the lowa-Des Moines N ational Bank. The departm ent has been moved from the second to the seventh floor. One new feature is a spacious conference room where drapes can be drawn if full privacy is desired by custom ers. A nother feature is a secured area adjacent to the office space. Robert J . W issler, vice president and m anager of the investm ent departm ent, says the Telerate machine is one of the m ost beneficial improvem ents ever placed in the departm ent. Telerate is a financial information network linking subscribers, such as banks, with financial money m arkets nationwide, providing instant access to up to the m inute inform ation on critical financial information from governm ent and private sources. Mr. W issler says this instan t information, James M. Hutchinson Funeral services were held recently for Jam es M. H utchinson, retired executive vice president of D aven port Bank & T rust Co. and an active civic leader. He was 81. Celebrates 25th Year M orris Ackerman is celebrating his 25th year of service to the H am pton S tate Bank. Mr. Acker m an joined the bank in 1953 as a bookkeeper and progressed through all areas of banking until he now serves as vice president and director. formerly obtainable only after one or more long distance phone calls, frequently w ith delays, is valuable to correspondent banks and their custom ers, as well as the lowa-Des Moines N ational and its corporate and private custom ers. Some of the inform ation services provided by Telerate are fed funds, bills, coupons, agencies, Fed activity, prime rates, auction results, money m arket information, commercial paper rates, discount rates, gold prices, Euro deposits, Canadian m arkets and others. Telerate has been in use by the investm ent departm ent during the past year, Mr. W issler said. from vice chairm an to chairm an of the Iowa Development Commission recently. As chairm an he succeeds E. A. H ayes, director of the Henry County Savings Bank, M t. Plea sant. Appointed to the commission to take Mr. H ayes’ post as a director was F. Forbes Olberg, chairm an and president of Banks of Iowa, Inc., Cedar Rapids. Missouri Valley Bank Breaks Ground for Facility A groundbreaking ceremony was held recently at the future site of the Peoples S tate Bank drive-in facility Burger Named Chairman in M issouri Valley. Iowa Development Comm. The new building is expected to be William H. Burger, senior vice completed by late October or early president and tru s t officer, National November, according to Nick P aul Bank of W aterloo, was advanced son, of N .P. C onstruction Company N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of Crescent, general contractors for the project. John Kovar is the b ank’s president. " Joins Postville Bank Stanley S traate has joined the Postville S tate Bank as assistan t vice president and farm representa tive. He is a 1971 graduate of Iowa S tate U niversity and was formerly with the Kellogg Savings Bank. 5 James Unruh Funeral services were held recently for Jam es U nruh, 58, president and chairm an of the M ondamin Savings B a n k . H e w as th e m a jo rity stockholder in the bank. A native of Scottsbluff, N eb., he and his father, George U nruh, bought the bank in 1946. r DOWNTOWN MERCHANTS W elcome Iowa B ankers to D es M oines A. B. C. D. E. F. Cownie, 200 S.W. 5th Kucharos, 7th & Locust Frankels, 612 Locust Josephs, 6th & Locust Madeline Shepard, 314 6th Johnson’s, 712 Locust C Welcome Iowa Bankers From FRANKELS . . . The store that has been serving the men and boys of Iowa since 1861 Fine Clothing Expert Tailoring Professional Salespeople All Major credit cards accepted G. Zoe’s Uniforms, 410 7th Street H. Norman Cassiday, 720 Walnut I. Stearns, 700 Walnut J. Kneeter, 807 Walnut K. Storey-Kenworthy, 309 Locust L. Plumbs Jewelers, 600 Walnut M. N. O. P. Q. Koch Brothers, 4th & Grand J. C. Penney, 5th & Walnut Brown’s, 308 8th Chez Shari Ltd., 310 8th Veterans Auditorium, 833 5th d isco v er THIS YEAR . . . A GIFT FOR ALWAYS! The diamond from Josephs largest selection at m ore m oderate prices. A tradition since 1871. Fine a p p a re l for women with the look o f distinction . . . MADELINE SHEPARD, LTD. DOW NTOW N 612 LO C U S T Across from the Ruan C enter V A L L E Y W E S T M A LL • PAR K FAIR # ' Original Family Ownership SIXTH AT LOCUST AND MERLE HAY MALL MEMBER AMERICAN GEM SOCIETY 314 SIXTH STREET DES MOINES (in The Equitable Building) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3__________________ WELCOME IOWA BANKERS This week only during the convention 20% off all merchandise save (Including Fall Stock) Present Coupon for Discount Æk y (because no m erchandise sale marked) Æk p m ts c iù 712 LOCUST (Downtown only) clothing Johnson’s congratulates Christy Armstrong on a fine year as IBA President. If Merchants you will enjoy visiting all within walking distance. if Personalized career apparel featuring: P O R T R A I T f Grand if if Locust BC D E fi Walnut H fi CLOTHES M 11th 10th 9th 8th I 7th 6th 5th 4th • Personal fitting of each employee • Many programs available • Personal delivery and alteration • Entering our 21st year 3rd A Z o e ’s Inc. 504 - Grand Ave. Des M oin es, Iow a 50309 Park Fair • Downtown • SouthRidge S Fresh start for Fall ’78 E x citin g fashions for wom en of all ages. 720 W aln u t S t. • M erle H ay M all https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis x ó o m C s n e e bra o in fashions in fur, leather and cloth Iowa's most complete coat selection 807 Walnut Des Moines, Iowa 515/243-1243 Open Mon. thru Sat. 10 - 5:30 L President 900 Series by A kimsall OFFICE FURNITURE CO Offered by: Storey-Kenworthy Co. 309 Locust 288-3243 Qtie her diamonds Jromear to ear Stop by during the convention ...with nothing to detract from their blazing beauty. Our classic stud earrings range in weight from a modest Vacarat total weight to a sumptuous two carats. A brilliant choice! JC P enney MEMBER AMERICAN GEM SOCIETY Charge It! Downtown, 5th & Walnut Discover new shopping pleasure at JC Penney with almost everything for your family and home. From the latest in beautiful fashions to sporting goods, toys and luggage, cameras, housewares, and much more. There’s even a beauty salon and coffee shop. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Us« your Master Charge, BankAmericard or Plumbs Convenient Revolving Charge Fine jewelers since 1865 Locally owned and operated. Downtown Walnut at Sixth 9:30 to 5:30 Morle Hay Mall • SouthRidge Mall 10 A.M.to9 P.M. Sunday Noon to 5 P.M. 148 Io w a N e w s Hawkeye Bank Sold Sioux City Bank Opens Plaza Office A. Klinger, Inc. Its lobby includes four on-line teller stations, safe deposit vault, conference room, Boulevard. This new full-service private office and Fam ily Banking facility was constructed to serve the Area. Its vestibule contains one of banking needs of the north and west F irst N ational’s new on-line ATM s areas of the city. I t includes a staff of perm itting 24-hour banking. eight, headed by K ent F. W igg, In addition to the traditional bank assistan t vice president and office vault and security equipm ent, the m anager, and M ary E . P etty , family Mosler Safe Company provided four banking officer and assistan t office lanes of the m ost modern drive-in m anager. facility system s. The building site The new office is a 3,000 square also provides off street parking and a foot structure designed by Jam es M. tim e/tem perature m essage center. Duffy & Associates and built by W. IR ST N ational Bank in Sioux F City, la . this sum m er opened its new Plaza Office a t 2900 H am ilton m B ^ £ i - i » il»;#! • B I sii ili® V* » ie ö & » f ¡ r o S (S ) \\e c ^ V olney P a lm e r, p re s id e n t of Citizens Savings Bank of Hawkeye, has announced th a t he has sold controlling interest (85%) of the bank to M r. and M rs. Clair J . Lensing of M arion, effective A ugust 3, 1978. M r. Palm er came to the bank 27 years ago from the Oelwein S tate Bank. He has been active in banking circles including being secretary and president of the F ay ette County Bankers and president of Group IV consisting of 70 northeast Iowa banks. He also served on the sta te co u n cil of th e Io w a B a n k e rs Association. M r. Palm er is presently serving his second term as m ayor of Hawkeye; he is secretary of the Hawkeye Telephone Co. and secre tary of the Hawkeye Com m unity Club. M r. Palm er will serve out the year as a consultant a t the bank. M r. and M rs. Palm er will be replaced as president and vice president of the bank by M r. and M rs. Lensing, respectively. M r. Lensing is a former sta te bank exam iner and is presently executive vice president of the Farm ers S tate Bank of M arion. To Head Swea City Bank Dennis P. M ittag is the new president of the Swea City S tate Bank. He succeeds Lee Davidson, who will serve as chairm an. Mr. Davidson will rem ain active in the bank and will be available in an advisory capacity. M r. M ittag joined the bank in 1964 and recently has served as vice president. Iris A. Koons has been appointed vice president and director. She joined the bank in 1969 and formerly was cashier. J a m e s R a s m u ss e n h a s been appointed cashier. Ga \ \ c ° Rowley Savings To Expand a s \» o t' 6 ßauef wh Wayne Hummer & Co. 105 West Adams Street • Chicago, Illinois 60603 Dial long distance toll-free 800-621-0777 outside Illinois • 800-972-0345 within Illinois Members New York, American and Midwest Stock Exchanges N orthw for estern Banker, S e p te m b e r 1978 Digitized FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Don Shields, president of the Rowley Savings Bank, has announ ced construction of an addition to the b ank’s present building. The addition will include a vault, office, com bination employe lounge and conference room, com puter room, night depository and drive-up window. LIFE INVESTORS ON TH E GROW ! II n teas' m rn m n rn r ru rn lia. t?h IF h i Our Thanks To The Bankers Of Iowa! NORM HARTWIG Eastern Iowa DICK MOORE Marketing Director GARY LIVESAY Western Iowa See You At The 92nd Annual Iowa Bankers Convention Insurance Companies of America 4333 Edgewood Rd. N.E. Cedar Rapids, Iowa 52406 (319) 398-8511 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 150 Io w a N e w s WEST Des M oin es O ffic e M gr. Lew Downard, center in glasses, m anages all 2C B C m eeting s. 2 CBC Capital City Bank’s New Youth Club PE N IN G a new office presents a challenge to the m arketing staff O of any bank. A s p a r t of its fi rst y e a r ’s promotion of its W est Des Moines Office, Capital City S tate Bank of Des Moines began the 2CBC —Capi- W ic r c The D is c r im in a tin g ' B anker S la v s In D e s M o in e s ! tEitiiir l i r b a h r ’a I-235 & 35th St. EXIT • 225-2524 WEST DES MOINES It’s All Waiting Now For You . . . at Webster’s! N orthw estern Banker, S eptem b er 1978 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tal City Bank Club. The organization is for children from 5-15 years old. Bank clubs, of course, are not new. B ut some of the reasons why banks form clubs may be new. M any bankers realize th a t the size of the accounts is not large enough to be profitable and so steer away from such plans. However, Dan McGow an, vice president a t Capital City State Bank, said he considers the program a good form of image advertising, som ething in which banks are greatly involved. 2CBC involves about 150 young people and is growing. M eetings this year, held m onthly in the summ er, have included a yo-yo contest and clinic and a skateboard instruction session. Future events will include a m iniature golf contest and a bicycle safety clinic. Each m eeting is announced in a m onthly newsletter addressed to the child. The bank hired the high school band, which was involved in a fund-raising program , to help with the initial promotion by passing out letters announcing the club’s form a tion. This job became one of the largest contributions to the b an d ’s fund raising efforts. All in all, many people throughout the com m unity have been associated with 2CBC. The only m em bership requirem ent is th a t the child open a savings account. E ighty per cent of the club accounts are new accounts. The other 20% are children of custom ers. As a bonus, about 10% of the parents have opened new accounts. The effectiveness of image adver tising is very difficult and often expensive to m easure. B ut the officers of Capital City S tate Bank think th a t 2CBC has not only kept their b a n k ’s name in public, but has created a very favorable and tangible image to the people of the comm unity. First National of Clinton Names Assistant Cashier The F irst N ational Bank of Clinton has announced the appoint m ent of M ark A. Fasse as assistan t cashier in the instalm ent loan departm ent. Mr. Fasse, originally from Sauk Rapids, M inn., attended W artburg College in W averly, la ., graduating in 1973 with a BA degree in business adm inistration and economics. A H AN D S T A M P THE IN K 'S IN TH E S T A M P ! NO IN K PAD! NO R E -IN K IN G ! » lOHN)ANDERSON | 2 5 .0 0 0 IM P R E S S IO N S ! | 5 Can't leak, can't dry out. Stamps crisp and clean every time. Can be made any size. Purple, red or black ink. q DES MOINES STAMP MFG. COMPANY Manufacturers of Marking Products Since 1880 851 SIXTH AVE. • BOX 1798 • DES MOINES. IOWA 50306 PHONE 1515) 288-7245 The Total Responsibility Concept by: COfltrol-O-fax Each year since our founding in 1948, the growth of Control-o-fax has been significant and constant. Through aggressive research, production and marketing, Control-o-fax has become the leading source of better ideas in office systems and design concepts. Over the course of the past several years, we have become more and more involved in the design field. We have developed a team concept approach in our Design Department with an emphasis on “ financial institutio ns” . Control-o-fax offers a highly trained and experienced team of professionals in areas directly related to the financial institution that is contemplating a building or remodeling project. We use the “Total Responsibility Concept” which means we can provide the continuity of project from architectural design to finished landscaping as a package unit, thus saving costs in planning, supervision and length of project. Control-o-fax has a tradition of excellence in supplying equipment for every kind of office environment. Expert installation service and the best advice on maintenance are additional Control-o-fax benefits. We w ill go the extra measure in the selection of your furnishings. If you wish to “ experience” your new furniture selections, we will fly you to the Chicago display rooms where you can see first-hand how they fit your office decor. Budgets and deadlines are business necessities. That’s why Control-o-fax agrees to function within your financial and time lim itations. Tell us your design and business equipment needs - We’ll show you a way to acquire them. For the best “ Turn Key” results, put Control-o-fax bank design and equipment expertise to work on your bank’s future needs. No other bank w ill look like yours because no other w ill be built or furnished like it. Our “ Financial Design Team” would welcome the opportunity to conduct a survey and offer a “ No Cost Preliminary Proposal” to help you plan for your bank’s future. For more information on how Control-o-fax can serve you better, write or call collect. Ask for Don Leopard, Jr., our Financial Design Survey Specialist, or H. W. Schoonover, General Manager. Control-o-fax 3070 W. Airline Highway Box 778 Waterloo, Iowa 50704 [319] 234-4651 I’m interested in more details on how Control-o-fax can assist in fu lfillin g my bank planning or equipment needs. Name _____________________ _________________________ T itle __________________ C ity ______________________S ta te ____________Z ip _______ Phone No. ________________________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 152 Io w a N ew s Mosler Safe Will Conduct Two Anti-Crime Seminars The Mosler Safe Company will conduct the final two of its scheduled five Anti-Crime Seminars in coming weeks. One m eeting is scheduled at the H y a tt Regency O ’H are in Chicago October 18-19, the other is scheduled a t the Las Vegas H ilton in Las Vegas November 15-16. Previous sem inars were conducted in New York and St. Petersburg earlier in the year and one is being held in m id-Septem ber in M ontreal. D uring the two-day seminar, M os ler experts show how criminals can crack a record safe in less th an one m inute, how they can compromise electronic alarm system s, show how bombs can be planted on business premises, display the latest tech niques in “bunco” operations—then provide information on how to cope with or defeat these crimes and assaults. The first day program includes se ssio n s on sa fe s an d v a u l t s , m ethods of defeat, safecracking dem onstration, the burning bar, burning bar dem onstration, alarm system s, defeat techniques, and photo surveillance equipm ent and techniques. The second day will feature the Bank Protection Act, bank vault and IN D EX O F SEPTEMBER, 1978 Acorn Printing Company ..............................................112 Aetna Business Credit ................................................. 43 American Breeders S e rv ic e ..............................................31 American Express (Money O rder)................................... 23 American National Bank & Trust Co., C hicago........ 115 American National Bank, St. Paul .................................73 American Shorthorn A ssociation................................... 40 American Trust, D u b u q u e ..............................................119 Automated Systems of Io w a ......................................... 134 Banclub (Financial Inst. S e rv ice s )...............................127 Banco Financial .................................................................83 Bank Building Corporation ..............................................41 Bank of A m e ric a .................................................................13 Bankers Trust Company, Des Moines ........................ 106 Banks of Iowa Computer Service...............................20-21 Becker & C ow n ie...............................................................112 Beh, Carleton D. Company ............................................118 B ra n d t.................................................................................. 7-8 Capital City State Bank .................................................. 109 Central National Bancshares..........................................123 Central National Bank & Trust Co., Des Moines141 Chase Manhattan Bank .................................................... 59 Chiles, Heider& Company..............................................122 Collateral Control C orporation ....................................... 25 Colorado National, Correspondent.................................91 Colorado National, V IS A .................................................. 15 Continental Bank ...............................................................30 Continental Western Life Insurance C o m p a n y ........ 124 C ontrol-O -Fax...................................................................151 N orthw Banker, Septem b er Digitized forestern FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1978 night depository construc;ion, confi dence schemes, bomb th reats, and executive kidnap and extortion. The registration fee for one day is $125; for both days it is $210.00. Inform ation on the seminars m ay be obtained from Robert R. Rosberg of The Mosler Safe Company, 1561 G rand B lvd., H am ilton, O., 45012 (513-867-4336). from A ugustana in Rock Island. He has been engaged in insurance and sales work since graduation from college. IRA - Keogh Seminars Seminars on Individual Retire m ent Accounts and H R -10 Keogh Plans are being scheduled in Iowa, M innesota, N ebraska, South D akota and N orth D akota. Conducting the To Travel lowa/M issouri Stephen M. Carron of Iowa City seminars in cooperation w ith the has been named associate area state bankers associations will be director for Financial In stitu tio n Collin W. Fritz, banking consultant, Services, Inc., Nashville, according Des Moines. Five all-day seminars have been to Lom e Newhouse, area director for scheduled for Iowa in October as Iowa and M issouri. follows: Oct. 3-Hilton, Sioux City. Oct . 4 - Hol i da y Lodge , C lear Lake. Oct. 10-Ramada Inn, Dubuque. Oct. 11-Sheraton, Cedar Rapids. Oct. 12-Holiday Inn Downtown, Des Moines. Each m eeting sta rts at 9 a.m . and will conclude at 3:30 p.m . R egistra tion fee will include luncheon, sample L. R. NEWHOUSE S. CARRON forms and related m aterials. M eetings in the other states will M r. Ca r r on will a s s is t M r. Newhouse in sales and service of be announced at an early date in the BanClub and other service provided N orthw estern Banker Weekly News by the firm. Mr. Carron is a native of letter after each state association the Quad Cities, and was graduated m akes final arrangem ents. D aktronics............................................................................12 Dare-To-Succeed R a llie s .................................................. 39 Deluxe Check Printers (Forms Division) ........................29 Des Moines S ta m p ...........................................................150 Dickinson, R. G ..................................................................120 Downtown M erchants..............................................145-147 Drovers National B a n k .................................................... 125 First First First First First First First First First National National National National National National National National National Bank, Bank, Bank, Bank, Bank, Bank, Bank, Bank, Bank, C h ic a g o ........................................ 49 Denver.............................................89 L in c o ln ........................................ 105 Minneapolis ............................. 129 Omaha ..................................... 99 St. J o s e p h ..................................102 St. Louis........................................ 69 St. P aul...........................................79 Sioux C ity .................................... 131 Gross, Kirk & Company ............................................... 14 Guardsman Life Insurance C o m p a n y ..........................111 Harris Trust & Savings B a n k ..........................................139 Hawkeye Bancorporation................................................138 Heller, Walter E.................................................................... 57 Hummer, Wayne & Company ....................................... 148 Images of the Old West .................................................... 24 Insurance Programmers.................................................. 136 Insured C r e d it..................................................................... 55 Iowa Bankers Insurance & S e rv ic e s .............................143 lowa-Des Moines National B ank..........................117,154 Iowa Public R ecords........................................................ 116 Kemin Industries................................................................. 37 Kemper, John M ...................................................................65 Kirchner, Moore & C om pany..............................................5 LaSalle National B a n k .................................................... 135 Lawrence S y s te m s ........................................................6, 68 Lease Plan, Inc................................................................... 137 Life Investors..................................................................... 149 Manufacturers HanoverTrust..................................... 26-27 Marquette National B a n k ........................................... 74-75 Merchants National B a n k ................................................2-3 Midland National B ank...................................................... 70 M G IC ................................................................................ 10-11 National Bank of C om m erce......................................... 101 National Boulevard Bank of C h ic a g o .............................66 National Fidelity L i f e ...................................................... 133 Newlin Bank Sales ........................................................144A Northern Trust C o m p a n y ............................................. 55 Northwestern Bell T e le p h o n e ......................................... 51 Northwestern National Bank, Sioux C ity .................... 126 Omaha Financial...................................... 56 Omaha National B a n k .................................................. 16-17 Packers National B a n k ...................................................... 98 Peoples Bank, Cedar R ap id s ......................................... 132 Piper, J affra y ....................................................................... 22 Schweser, Robert E. C om p a n y ..................................... 103 Security National Bank, Sioux City ............................121 Security Pacific National B a n k ....................................... 63 Shaw McDermott & C om p a n y ....................................... 128 Syntex.................................................................................... 35 Toy National Bank .......................................................... 113 Travelers Express .......................................................... 53 United United United United Guaranty Insurance ........................................... 153 Missouri Bank ................................................. 19 States Check Book C om pany.................... 82,130 States National Bank, O m aha.............................96 VanWagenen, G. D............................................................. 76 Webster’s, E dd ie...............................................................150 Western Capital Corporation..............................................9 Ziegler, B. C .......................................................................... 77 ‘We never see him anymore since they star ted using United.” We spend m ore tim e in our offices to get you out of yours in less. One reason U nited now has m ore th a n $8 billion of insurance in force. H jnited Guaranty THE MORTGAGE INSURER U nited G uaranty Corporation, 8 2 6 N Elm, Box 21567, G reensboro, NC 27 4 20 • (919) 3 7 3 -0 8 6 3 Contact: United Guaranty Residential Insurance Company • P.O. Box 778, Bettendorf, Iowa 52722 In Iowa, call (800) 292-0047. In States bordering Iowa, call (800) 553-8976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis United Guaranty Residential Insurance Company » 421 S.W. 6th Avenue, Suite 900, Portland, Oregon 97204 In Washington and Idaho, call (800) 547-1064. In Oregon, call (800) 452-7697 George F. Mlligan Senior Vice President John R. Frtzgibbon Chairman, President & Chief Executive Officer M. M. McMichael Vice Chairman INSIGHTS 79 is com ing your way. W e’re pleased to announce that plans for INSIGHTS 7 9 are now underway. In order to make these state wide sessions as informative as our previous INSIGHTS conferences, w e’d like to incorporate your ideas. Topics for the seminar will include funds management, long-range planning, personnel and marketing. But, w e’d like to hear from you. Your input will help us tailor, the presentation to additional areas that will be specifically helpful to you and your bank. While you’re in Des Moines for the Iowa Bankers Convention, please take a minute to share your thoughts with us so we can make INSIGHTS 7 9 the best ever . . . for you. Give us your ideas and we’ll give you INSIGHTS 7 9 . It’s our way of showing, you get a lot of help for your m oney — from the Iowa-Des Moines. https://fraser.stlouisfed.org © 1978 Iowa-Des Moines National Bank Federal Reserve Bank of St. Louis Voldy Vanags Bob Buenneke Lance Davenport John Rigler Dorothea Wolfe NATIONAL BANK Yes, you can g e t a lo t o f h elp fo r your money. 7th & Walnut, Des Moines, Iowa 50304 (515) 245-3131 Member FDIC An A ffiliate o f Northw est Bancorporation BANCO
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