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:MBER >79 "Summer on the Stirrup Bar” —Artist, James Boren, Images Gallery 93rd A nnual Iowa C o n ven tio n • ABA 105th Annual Convention • Growth of a Community Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Annual Livestock Survey • Deposit Building Ideas Meet the Correspondent Bankers who make MNB work for you. John E. Mangold Terry M. Martin Stan R. Farmer Senior Vice President Vice President Assistant Vice President Jerry N. Trudo Mark W. Christen Dale C. Froehlich Assistant Vice President Assistant Vice President Assistant Vice President People can make or break a correspondent bank’s services. At MNB, you’ll prefer our services because our people make them better. We will make the extra effort to come to you with ideas, thoughts and a special kind of prompt and efficient service you may have never had before. Our services are designed to meet the needs of your bank and to help you serve your customers. Our people make it work. Merchants National Bank Cedar Rapids, Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis is i A BANKS OF IOWA BANK THIS YEA R , MOSLER W ILL INTRODUCE M ORE NEW PRODUCTS THAN A N Y OTHER SUPPLIER O F SECURITY AND TRANSACTION SYSTEMS. SO W HAT ELSE IS NEW ? Mosler has always been a leader in new security and transaction products. The important thing, however, is that a new product represent an innovative solution to a very real banking problem. That’s why our research and development people spend most of their time getting to know, intimately, the problems facing the financial industry. So a new product from Mosler is not just a manufac turing exercise. It’s a carefully considered answer to a question that’s bothering you. A way to make your life a little easier. This year, for example, you can look for some ways to cut security costs. A new system to help cut down on check fraud. A way to speed up commercial transactions. - And a lot more. Whatever your security or transaction needs, and what ever the size of your operation, your Mosler representative has the equipment that meets your requirements. And if we don’t have it yet, we w ill have it. Probably before anybody else. YOU'VE GOT NEW QUESTIONS. W E'VE GOT NEW ANSWERS. Mosler An A m e ric a n -S ta n d a rd Company https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 27 NOmTOTERN J ^ m lc w SEPTEMBER 1979 • 86th Year No. 1392 OLDEST FINANCIAL JOURNAL SERVING TH E CEN TRAL AND W ESTERN S TA TES t o MEMBER O F AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION ON THE COVER “ S um m er on the S tirru p Bar” po rtra ys a ty p ic a l w o rkin g day on a w estern ranch. Painted by Jam es Boren, a noted living m em ber o f the C ow boy A rtis ts of A m erica, th is 21 ” x29” w a te rco lo r is displa yed at Im ages G allery, 5050 E xcelsio r B lvd., M in n e a p o lis. FEATURES 27 New Orleans . . . H ost to 105th ABA co n ve n tio n , O cto be r 6-10 32 1979 Livestock Outlook A nnual survey reveals e xp e cta tio n s fo r m arket 36 $124 Million Assets Thom as B olger te lls how they did it in M cH enry, III. 38 Deposit Building Ideas Bankers relate program s th a t have helped them 40 How to Plan Your Estate Tax E d ito r Robt. Dunaway gives ideas fo r farm ow ners 42 What’s New IOWA CONVENTION 95 98 102 104 114 126 128 133 93rd A nnual C onvention Program C onvention E nte rta inm e nt Interview w ith IBA President Rand Petersen G roup C hairm en Report on Ag and B usiness C o n d itio n s You W ill See Them at the C onvention To A nn ou nce IBA O ffice rs at C onvention Des M oines News E xh ib ito rs fo r 93rd Iowa C onvention DEPARTMENTS 6 12 16 55 Bank P ro m o tio n s C alendar C orporate News Illin o is 61 62 74 76 78 83 84 88 92 92 M in ne sota Tw in C ities N orth Dakota S outh Dakota C olorado Nebraska O maha L in co ln W yom in g M ontana N O R TH W ESTER N BAN K E R 306 15th Street, Des M oines, Iowa 50309 Publisher Editor Malcolm K. Freeland Phone 5 1 5 -2 4 4 -8 1 6 3 Business Manager Ben Haller, Jr. Mike Freeland Auditor Field Representative Debbie Hlbbert Glen Hlcfce Associate Editors Linda L. Rhein & Deborah Peck Field Representative Paul Maatera No. 1392 Northwestern Banker (USPS 397-620) 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 address Form 3579, manuscripts, mail items) to above address. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 Do you turn off customers because you can't handle mixed coin? Brandt counts it automatically! Model 956 Sorter/Counter The Brandt 956 coin sorter/counter helps you give your customers the best possible coin service. You can actually invite them in to have their coins sorted, counted and very likely deposited! Improve your coin service and you’ll build your coin business! A ttract new accounts — vendors, retailers, concessions, schools, church groups — anyone who collects quantities of coins! The Brandt 956 counts all coin denominations including the new dollar coin! I t ’s fast, accurate and easy to operate. It counts up to 600 coins per minute. Predetermined bag quantities can be selected for pennies, nickels, dimes, quarters and the new dollar coins. The 956 automatically totals them and deposits them into bags. I t ’s reliable, t o o . . . designed w ith plenty of back-up features! Automatic Bag Stops . . . Night Sentry Switch . . . Standby Power and more! Want to improve your coin service for custo mers? Depend on the Brandt 956 sorter counter to do it quickly, reliably and efficiently. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 6 Bank Promotions R O M O T IO N S a n d o th e r a n nouncem ents have been m ade by the following banks: P a 5-character m essage center! W ords change or travel. W ith time and temperature. Now even the sm aller financial in stitu tions can afford a message center display fo r advertising or public service. Daktronics Venus 500 has 32 colum ns of la m p s w ith seven 1 5 -w a tt b u lb s pe r colum n fo r displaying 18" high charac ters. Flash on as many as 16 words of five letters or less, plus tim e and tem perature or run a traveling message of up to 16 words of up to 16 characters each, plus tim e and temperature. At far less investment than our standard 10-character display. VENUS 500 MESSAGE CENTER Write for literature and prices — D DAKTRONICS, INC. DAKTRONICS INC. Box 299-L B rookings, S.D. 57006 Telephone 605/692-6145 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A m eric a n N a tio n a l B a n k & T r u s t C o ., C h ic a g o : J o h n N. Hum m , 38, head of item processing and data processing, was elected a senior vice president and F redrik C. C. Schokking, 35, m an ag er of the b a n k ’s rec e n tly e sta b lish e d Hong Kong office, was elected a vice presi dent by the board of directors. Prom oted to second vice president were: C harles T. G lendenin, tru s t operations; J. P aul Groom, in te rn a tional banking, and David P. Killion, Richard W. K nier and Jo h n L. Losquadro, commercial banking. Newly elected officers are: E liza beth A. G avitt, M arybeth A. H arasat, Robert D. Holm an and W illiam A. M cLaughlin, operations officers, and C hristopher T. Payne and Je f frey M. Shapiro, commercial banking officers. Mr. Hum m joined the bank in 1966 and has been a vice president since 1973. He holds a m asters degree in b u sin e ss a d m in is tra tio n from In d ia n a U n iv e rsity . M r. Schokking joined th e b a n k in 1971 and was nam ed second vice p re sid e n t and m a n a g e r of th e b a n k ’s L o n d o n branch in 1976. He is a graduate of St. Gall G raduate School of Business and Economics in Sw itzerland and has a m aste rs degree in business a d m in istratio n from N orthw estern U niversity. Continental Bank, Chicago: Thom as E. Elyea, a vice president in the financial institu tions division of Continental Bank, has been named a group head with re sponsibility for co rresp o n d en t banking relation ship with cu s tomers in Iowa, T. E. ELYEA M ich ig a n , and Ohio. Mr. Elyea also will continue to be in charge of correspondent banking with Continental customers in Indiana and Wisconsin. He is a graduate of the University of Indiana, having received a BA degree in mathematics in 1967 and an A MBA degree in 1969. Mr. Elyea joined Continental Bank in 1969 and was named an officer in 1972, elected a second vice president in 1975, and a vice president in 1976. Jam es M. O’Keane, vice president, who jo in e d C o n tin e n ta l B a n k in 1968, will head a new section in the b an k ’s oil and gas lending division, which will be responsible for the divi- ‘ sion’s offshore headquartered busi- , ness and Denver regional office. i Boatm en’s N ational Bank of St. Louis: S tep h en N. L aw rence has been elected senior vice president in charge of the reta il banking division. Prior to joining B oatm en’s, he was senior vice president in the re ta il banking group of C entral N ational A B ank in Richmond, Va. Also, M ary E. Barrows, form erly w ith M anufac tu r e r s H a n o v e r T r u s t C om pany, New Y ork, h a s been elected vice president in the commercial banking division and will specialize in corpo- y rate banking services. D r o v e r s B a n k o f C h ic a g o : Thom as R. W illiam s, 59, has been elected executive vice p r e s id e n t, according to Sid n e y J . T a y lo r, c h a irm a n . A b a n k e r w ith m o re t h a n 40 years of banking experience, Mr. W illiam s, before joining Drovers, served as senior T- R- W ILLIA M S vice president and group head for the corporate b a n k in g d e p a rtm e n t a t F irst N ational B ank of Chicago. He led th a t b an k ’s loan divisions serving governm ent agencies, labor unions, lodging and professional services and the construction industry. Mr. W illiam s is active in Chicago business and civic groups, including serving as a tru ste e of St. X avier College. H * > ^ ^ *v First M idwest Bancorp, Inc., St. Joseph, Mo.: J. M. Ford, II, ch air m an, has announced two responsibil ity changes w ithin th e organization. * B e n to n O ’N e a l, e x e cu tiv e vice president of th e holding company, will be w orking closely w ith senior * m anagem ent in form ulation and im- 7 Sometimes it hurts your customers when their sales are up. For fast helpJEtna Money. •X Your custom ers’ sales are up —and it hurts? Yes. A nd it happens m ore often than you think. Look: Let’s say a custom er develops a new product — or enters a new m arket —and sees a sudden, sharp rise in sales. But his working capital is tied up in accounts receivable and work in progress. So? No money for more personnel, more raw materials, and added equipm ent to capitalize on the profit able sales trend. O r let’s say a promising young company needs grow th money but can’t m eet the traditional lend ing requirem ent th at it have at least a five year track record. O r an established company grows beyond the bank’s lending limit. How can A itna M oneyMhelp your customers? Very professionally. A nd very quickly. We lend against collateral —accounts receivable, inventory, plant and equipm ent. Result? We can give your custom ers the credit lines and cash ad vances required, not those set by fixed balance sheet ratios. A nd, we often participate w ith banks, so that basic banking arrangem ents can rem ain unchanged. A it na Money. We know how increased sales can increase your custom ers’ problems. But we also know how to help. Call your Aitna Business C redit representative for m ore inform ation. You get action w ith Aitna. ifltna Business Credit, Inc. ®One of the /ETNA LIFE &. CASUALTY companies Service is the difference between JEtna M oney and other money. 530 North Water Street, Milwaukee, W I53201 (414) 272-3102 1717 Cargill Building, Minneapolis, MN 55402 (612) 339-2222 One Post Street, San Francisco, CA 94104 (415) 956-4373 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 Introducing TheChoice Pak The only prepacked traveler transaction time withou N o w there is a prepack system fo r selling travelers cheques th a t saves tim e w ith o u t a n tago nizing custom ers. It’s T h e C h o ice Pak" fro m T ho m a s C ook. A n d un like o th e r prepacks, T h e C h o ice PakM does not restrict y o u r cu sto m e rs’ p ur chasing choices. In am ounts. D enom inations. O r style o f wallet. “How would you like it?” In m ost travelers cheque TheChoice Pak transactions, there is a lengthy offers customers a wide range of denominations.! d ialo gue between cu sto m e r And that’s just part of the choice and te ller c o n ce rn in g th e am oun ts and den om inatio ns. T h e C h o ice P a l system elim inates th is unnecessary and often co n fu sio n -fille d discuss io n .W ith o u t sa crificin g cu sto m e r freedom o f ch o ice in the process] No more red faces. T h e C h o ice Pak also saves tim e by ending co n fro n ta tio n s over sp e cific am ounts. W hile o th e r prepacks limh cu sto m e r choices to $50 m ultiples, T h e C h o ice Pak" enables y o u r tellers to fu lfill im m ediate ly requests fo r any am ounts T he re are no excuses to make. N o em barrassing apologies] N o tim e -co n su m in g explanations. No dissatisfied custom ers Customers can choose a wallet— checlfbook*1omiat^ottfunde^one6c^>ver https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The choice o f checkbook-style security, U ^ T h e C h o ice Pak" also gives custom ers a ch o ice o f m anner . i« * I st t Xlx j j ***. ffcp i !</> i *i * I ¡1. i 1 11 jhlij ii!|! JitIII In | !!uh i * f, lypllj iir I ,-li '*0* 1« | IIIli)I i* J | I ¡11 liiilt lillii ...gift 'homas Cook: cheques that shorten hortening custom er tempers. for ca rryin g th e ir cheques. E ither TheChoice Pak’s application is easier and simpler to fill out. It gets wallet-style, like o th e r prepacks, $ * wssk **IO O * um s i Ik customers off line quicker. >r the h ig h ly secure and h ig h ly mggjjg »referred checkb ook form at. Your * 1 X 1 3 “ ^ isto m e r gets both in one w ith r —r — t t —r 'h e C h o ice Pal€ "homas Cook is TheCiearChoice. T h o m as C o o k travelers C heques are accepted in every c o u n try o f the w orld. O n ly T ho m as C o o k has a w ritte n paym ent guarantee, so the cheques can be accepted w ith co n fid e n ce anyw here. __________________________ A n d now o n ly T ho m as C o o k offers the ultim ate *70 learn all the details of The Choice PakSMsystem — * convenience o f T h e C h o ice Pak. including its operations benefits for you call W.A. Maas, Sr. V.P., 212-921-3774. TheCiearChoice Thomas Cook Travelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OR See us at the American Banker’s Association National Conference in New Orleans October 6-10. Booths 464 and 465. 10 and F irst M idwest B ank of M aryville and Raven wood, all in Missouri. B. O’ NEAL E. BOOS p le m e n ta tio n of holding com pany policy. H is p rim a ry responsibility will be im plem enting and expanding the holding company’s business de velopm ent efforts. Mr. O’Neal also rem ains as senior vice president of F irs t N a tio n a l B ank, th e holding company’s lead bank. Edw ard J. Boos, vice president of F irst N ational Bank, will tak e over the responsibility and supervision of th e a g ricu ltu ral/co rresp o n d en t de p a rtm e n t of th e b a n k . M r. Boos joined the bank in 1973 and since then has represented the ag ricultu ral/correspondent b an k in g d e p a rt m ent. O ther affiliates of F irst Midwest Bancorp include F irst Stock Yards B ank and F irst T rust Bank, both of S t. J o s e p h , M o.; H om e B a n k of Savannah; F arm ers B ank of Gower F ir s t N a t io n a l B a n k in St. Louis: Four new officers have been elected, according to Richard F. Ford, president and chief operating officer. They are: C harles T. Owen, assis ta n t vice president, in tern atio n al de p a rtm e n t; S h irle y M. M orris, r e sidential loan officer; Jam es M. M ur ra y , d a ta p ro ce ssin g officer, and Richard A. Sponsel, Jr., d ata proces sing officer. eral departm ents at a recent board m eeting. In the bond departm ent, H arry C. Francis of the foreign exchange divi sion was promoted to vice president and Jo h n P. Sakowski, New York Office, was promoted to second vice president. Prom oted to vice president in the tru s t departm ent were Victor S. N el son, division B, and D ennis Sadilek, special investm ents division. New appointm ents in the bond de p artm en t include: Philip G. Gilboy, m unicipal trad in g division, Dolores M u rg o lo , N ew Y o rk office, a n d Dennis R. Sikula, m unicipal adm in istration division, who were nam ed bond investm ent officers. In th e corporate affairs d e p a rt m ent, Frances I. Jo rd an was appoint ed assistan t corporate secretary. M ercantile Trust Company, St. Louis: Paul T. Dowling, chairman and chief executive officer of the Nooter Corporation, has been elected to the board. Mr. Dowling joined the corporation in 1946 as a sales engineer. He was promoted to vice president in 1956, made a director in 1960, later served as executive vice United Guaranty Reports president and was made president Record Quarter Earnings and chief executive officer in 1971. In Record second q u a rte r earn in g s 1976 Mr. Dowling was named to his were experienced by U nited G u a ra n present position. ty Corporation, according to W illiam L. Hem phill, president of the G reens The Northern Trust Company, boro, N.C., based m ortgage insurer. B efore s e c u ritie s tra n s a c tio n s , Chicago: Directors approved officer promotions and appointm ents in sev q u arterly income rose to $3,932,000, or 81# a share, a new q u a r t e r l y record, up 15% from incom e of $ 3 ,4 1 9 ,0 0 0 , or 71$ a sh a re , in 1 9 7 8 ’s s e c o n d q u a rte r. Q u ar • Total embossing/encoding and mailing te rly s e c u ritie s capabilities with minimum turnarou g a in s w ere time and tight security. $ 1 1 1 ,0 0 0 in W .L. H EM PH ILL 1979, equal to 2# )ility to do all or part of the job a share, compared w ith $17,000 in including the manufacture of plastic 1978. After securities transactions, cards. q u a r t e r l y n e t in c o m e w a s $4,042,000, or 83$ a share, versus • Support services to direct and supervis $3,436,000, or 71# a share, in the your individual card program. same period of 1978. Per share fig u res reflect th e five-for-four stock split on May 26, 1978. For the six m onths ended J u n e 30, From start to finish ... DATA CARD’S income before securities transactions SER V ICE BUREAU ... a complete TURNKEY w as $7,479,000, or $1.54 a share, operation at a competitive price. about 17% above sem i-an n u al in come of $6,409,000, or $1.33 a share in 1978. S e c u r itie s g a in s w e re $247,000 in 1979 and were $18,000 DATA CARD in 1978. Including securities tra n sa c CORPORATION tions, n e t income for th e first six P.O. Box 9355 • Minneapolis, Minnesota 55440 m onths of 1979 was $7,727,000, or 612 933-1223 $ 1 .5 9 a s h a r e , c o m p a r e d w ith $6,427,000, or $1.33 a share, in 1978. DATA CARD’S SERVICE BUREAU A TURNKEY operation offering Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 “Our N CR switch is the core of our statewide E F T network.” Dale A. Dooley Executive Director, Iowa Transfer System, Inc. Des Moines, Iowa "In an EFT network, the switch guides all transactions crossing between processing centers,” says Dale Dooley of the Iowa Transfer System. "Last February, to cut costs, we replaced our original switch with an NCR 8450 system. NCR provided the necessary software and the transition was remarkably smooth." A switch has to be both versatile and dependable. The NCR switch operates in both the "sw itch in front” and "switch behind” modes to offer maximum flexibility to participating banks. Uptime from the first day of operation has been better than 99 percent. NCR understands online banking and has a continuing commitment to EFT. The Iowa Transfer System is the first statewide EFT system. Over 560 of Iowa’s 656 commercial banks are supporting members. More than 60 already are active participants. And two more banks go active every month. For full information on low-cost, online banking, call your local NCR representative. Or write to Financial Systems, NCR Corporation, Box 606, Dayton, Ohio 45401. Complete Computer Systems https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 12 r Convention Calendar L A B A — A m erican Bankers A sso cia tio n A IB — Am erican In s titu te of Banking BAI — Bank A d m in is tra tio n In s titu te B M A — Bank M arketing A sso cia tio n IBAA — Independent Bankers A sso cia tio n of Am erica N A B W — N ational A sso cia tio n of Bank W om en, Inc. RMA — Robert M orris A ssociates Sept. 10-15— S outh Dakota Bankers A s s o c iation G roup M eetings. Sept. 16-18— Nebraska Bankers A sso cia tio n Ag C redit S ym po siu m , H ilto n H otel, L in co ln . Sept. 16-19— ABA N ational Personnel C on fe re n c e , C a p ita l H ilt o n , W a s h in g to n , D.C. S e p t 16-28 — A B A N a tio n a l In s ta lm e n t C redit S cho ol, U n iversity of O klahom a, Norm an. Sept. 19-20— A sso cia tio n fo r Modern Bank ing in Illin o is Annual C onvention, C on tin e n ta l Plaza, C hicago. Sept. 19-22— Independent Bankers of C o lo rado A nnual C onvention, The Lodge, Vail, Colo. Sept. 23-25 — Iowa Bankers A sso cia tio n 93rd A nnual C onvention, C ivic Center, Des M oines. Sept. 23-26— RMA A nnual C onvention, H il ton H otel, New O rleans. Sept. 30-O ct. 3— NABW 57th A nnual C on v e n tio n , N ew O rle a n s H ilt o n , New O rleans. S e p t. 3 0 -O c t. 3 — B A I C o m m u n ity B a n k P reside nt’s F orum , C olorado S prings. O ct. 4-5— S outh Dakota Bankers A sso cia tio n In s ta lm e n t C re d it C o n fe re n c e , M itch e ll. O ct. 6-10— ABA 105th A nnual C onvention, New O rleans. O ct. 17-18— S outh Dakota Bankers A s s o c i a tio n E c o n o m ic s S e m in a r fo r Y o u n g A d u lts , M itch e ll. O c t. 1 7-1 9 — In d e p e n d e n t C o m m u n ity Banks of N orth Dakota 12th A nnual C on ven tion , K irkw ood M otor Inn, B ism arck. O ct. 21-Nov. 1— ABA N ational C om m ercial Lending School, U n iversity of O klahom a, Norm an. Nov. 4-8— BAI 55th A nnual C onvention, L o s A n g e le s B o n a v e n tu re H o te l, L o s Angeles. Nov. 7-9— A ssn, of Bank H o lding C om pan ie s F a ll M e e tin g , In n is b r o o k , T a rp o n S prings, Fla. N ov. 11-14 — A B A N a tio n a l Ag B a n k e rs C onference, Salt Lake C ity. Nov. 11-14— RMA 65th A nnual Fall C o nfer ence, W a sh in g to n , D.C. Nov. 18-20— ABA N ational C orrespondent Banking C onference, F airm o nt H otel & Tower, San F rancisco. 200 DELUXE ROOMS Each with 2 Double Beds — Individually controlled air-conditioning and heat — Color TV. 3 Vi M U tf JUsT 15 MILES ^ or ° On U.S. Highway 192, East of Interstate 4. Buses to and from Walt Disney World at front door several times daily. Nearby Golf Courses— other sports attractions - shopping centers. Special Group Rates and Florida Tours available. Visit other “easy-to-reach” Florida attractions — Kennedy Space Center, Cypress Gardens, Silver Springs, Busch Gardens. Superb Restaurant featur ing International Buffets— Lounge — Gift Shop — FREE PARKING. Large Heat ed Swimming Pool — Chil dren's Playground — Open Courtyard. ALL MAJOR CREDIT CARDS HONORED oj1 I I I Write today for free brochure: TERRACE RED CARPET INN • Phone: 305/846-7700 5245 Space Coast Parkway — Kissimmee, Florida 32741 I ADDRESS_______ [ CITY, STATE, ZIP NAME Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J U.S. Better Prepared Now For Recession Than in 74 The U.S. is in b etter shape th a n it w as before th e 1974-75 recession, an d a lth o u g h e n e rg y p rices m ay have tipped the scales for another one, it should be m oderate and of s h o rt d u ra tio n , acco rd in g to th e chairm an of Chicago’s biggest bank. S p e a k in g before th e A m e ric an Cham ber of Commerce last m onth in Sao Paulo, B ra z il, R o g e r E. Anderson, ch air m an of C on tin e n ta l Illinois Corp. an d Con tin e n ta l Illinois N a tio n a l B a n k and T ru st Com pany of Chicago, also said th a t the R. E. ANDERSO N second shock of oil price increases "calls for bold, in telligent action — particu larly by the U nited States, b u t in close concert w ith other countries.” In large m easure, Mr. Anderson continued, "this late st blow rebukes our failure to tak e the lead as the world’s biggest oil producer and con sum er, develop an effective response, and rally other countries to it. "We m ay now be coming to grips w ith the problem of scarce and highcost oil in th a t lig h t,” Mr. Anderson said. "T hat should be m ost encourag ing for the future, but the im m edi ate im pact of th is second oil shock has cast a pall over world economic prospects. Mr. Anderson noted th a t the pace of U.S. business activity has slowed very notably, particu larly in the c o n -. sum er sector. "O ur ra te of inflation is likely to continue high instead of e a sin g off, s> u rre d by th e rip p le effect of higher oil prices, ru n n in g through a wide range of consum er goods.” The Chicago ban k er pointed out th a t business capital spending pros p e c ts c o n tin u e s tro n g , h o w ev er. "C redit is available, and m any cor p o ratio n s a re looking beyond th e n e a r-te rm b u sin e ss decline. They don’t w ant to rep eat the m istake of c u ttin g back badly-needed cap ital e x p e n d itu re s, lo sin g o p p o rtu n ity , and incurring later, higher costs.” Mr. Anderson said there are also indications th a t the ad m inistration will try to avoid inflationary actions and policies in coping w ith the situ a tion, and th a t is encouraging. 13 EVERY CA SH LETTER SERVICE SHOULD HAVE A RUTH. One does. At Manufacturers Hanover, we give you a lot more than mixed-items processing, low balance requirements and flexible deadlines. We give you Ruth Presti. An officer with 17 years of experience at MHT, Ruth and her correspondent liaison staff are your direct and personal contact regarding cash letter matters. They devote all their time and energies to serving the cash letter needs of correspondents — advising of receipt of letters, confirming totals, informing of funds avail ability, expediting inquiries. This, from the same bank that takes to the air to reduce your 0210 float. With the Early Bird Relay Service, MHT helicopters shuttle cash https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis letters from LaGuardia Airport to the MHT Operations Center in time to beat the 10 A.M. Clearing House deadline. A trouble-shooter named Ruth, a relay service named Early Bird and around-theclock processing. Three reasons why Manufacturers Hanover is a premier clearing agent for the Northeast. For more information, contact Ronald R. Pabian in the National Division at (212) 350-4107 or Herbert V. Fink in the Operations Division at (212) 623-3506. MANUFACTURERS HANOVER America’s premier correspondent bank National Division, 350 Park Avenue, New York, NY. 10022 Member FDIC Northwestern Banker, September 1979 14 How M GIC can help Paperwork is one of your most costly and time consuming problems. That’s why MGIC is now offering the most comprehensive paperwork assistance program in the industry. Introducing AutoMagic. AutoMagic cuts your paper work two important ways: It simplifies the mortgage insurance application. And it prepares the most common forms govern ment agencies require for loan purchases. Here’s how we do it. Through AutoMagic, we eliminate your need to individ ually select coverage and premium plans every time you insure a loan. We simplify applications. You simply select your coverage and premium plan once and we store it in our computer. When you’re ready to submit a loan, simply check the box on the AutoMagic Application, sign it and send it to us. We’ll automatically assign your selections to the loan. Of course, you can change your coverage and premium plan selections anytime, for any j r f k loan, and as often as necessary. We prepare forms. Most of the information needed to complete required loan documents is contained in the loan package you send to m https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15 reduce paperwork. MGIC. Our computercan use this information to complete the more commonly used documents. We will prepare an Affidavit, FHLMC 13SF Mortgage Sub mission Voucher, FNMA 305 Mortgage Submission Voucher and FNMA 1008 Transmittal Summary. The forms you typically use for loan sales. In addition, we’ll prepare a Loan Summary Sheet for Secon dary Market Sales. And an FHLMC Underwriting Review Sheet that will help you review loans to be submitted to FHLMC for purchase. With AutoMagic, your important loan documents are accurate, consistent and neat. You save money. Time is money. And AutoMagic saves time three ways. It cuts paperwork: You can save up to 15 minutes of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis typing for each form. It reduces error: With fewer repetitious forms, a loan processor will have a lower error rate. It lowers overhead: You spend less time training personnel and maintaining an extensive forms inventory. We’d like to tell you more about how AutoMagic can reduce your paperwork. For more information, simply call your MGIC Account Executive. MQC 16 r Corporate L J R O M O T IO N S a n d o th e r a n nouncem ents have been m ade by the following firms: P A etn a B u sin e ss C redit, Inc., East Hartford, Conn.: P atricia A. B ergh has been ap p o in ted b u s i n e s s d e v e lo p m en t officer/interm ediate term le n d in g in th e m idw est m ark e t in g c e n te r , lo c a te d a t 180 N o r th L a S a lle Street, Chicago. P. A. BERGH Ms. Bergh will be responsible for developing new b u sin e ss an d re fe rra l sources for ABCI’s in term ed iate term lending activities in Chicago.and throughout the midwest, according to Lawrence D. Stillm an, divisional vice presi dent. A n ativ e of Springfield, Ms. Bergh received her BA degree from B arat College in Chicago and an MA degree from the U niversity of Chi cago. Prior to joining A etna Business Credit, she served as a business de velopm ent officer for the Hong Kong and Shanghai B anking Corporation in Chicago. Banco Financial Corporation, Minneapolis: The following promo tions and one new addition to the se c u re d le n d i n g s t a f f h a v e b e e n announced by Clarence A. Adams, president. Ja ck L. H a rt and Bruce A. H agen J. A. HART ACORN B. A. HAGEN R eg isters ' ’A cce p te d S a le R e g is ters b y Bank C lerks E v e r y w h e r e '' Vor i n l o r m n t i o n write THf ACORN PRINTING CO. Oa kla nd, Iowa Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DROEGEMUELLER H. T. M cCAFFREY T. D. W ADDING w ere elected a s s is ta n t vice p resi dents. Mr. H a rt is in loan adm inis tration. Mr. H agen is m anager of the analyst staff. W allace E. D ro eg em u eller w as promoted to loan ad m inistrator and H e n r y T. M c C a ffre y , f o r m e r ly analyst, was nam ed a ssista n t loan adm inistrator. T h o m as D. W adding, fo rm erly associated w ith A. J . A rm strong, Inc., was appointed an analyst on the new business survey staff. Bank Building Corporation, St. Louis: Roger A. Cosseboom has been appointed finan cial project direc tor and a m em ber of the firm ’s c o r p o r a te c o n s tru c tio n and estim ating staff. A g r a d u a t e of R iv e rsid e M ili tary Academy in Gainesville, Ga., he joined BBC in R' A- COSSEBOOM 1966 as a construction su p erin ten dent. His background encompasses nearly 20 years of construction in dustry experience, w ith the last 11 years devoted to building financial institutions. P rio r to jo in in g B ank B uilding, M r. Cosseboom w as p re s id e n t of Am erican Design and C onstruction Corporation in N orth Canton, Conn. The C en tral N a tio n a l In su r ance Group of Omaha: Two execu tive promotions have been approved by the board. R. D. "Russ” DeVoe has been elected vice president and m a n a g e r of c la im s a n d S te p h e n H eidem an has been nam ed assistan t vice president. Mr. DeVoe is a 20-year veteran in th e insurance claim s field. He was form erly w ith S tate F arm Insurance Co. He joined C entral N ational In s u r a n c e G r o u p in 1 9 7 3 , w a s appointed a ssista n t claim s m anager in 1975 and elected a ssista n t vice president in 1977. Mr. H eidem an joined the firm in 1978 as m anager of the audit d ep art m e n t a fte r p re v io u s w ork as an accountant and also as financial ex a m in e r w ith th e N e b ra s k a s ta te insurance departm ent. C um m ins-A llison Corp., C hi cago: W illiam H. Klotz h as been nam ed president and chief operating officer of th e office products/autom a te d m o n ey s y s te m s d iv is io n , according to John E. Jones, ch air man. Mr. Klotz has been w ith the company since 1952, when he started as controller. He was nam ed execu tive vice president and general m an ager of the office products division in Ju n e, 1978. Diebold Incorporated, Canton, Ohio: M ichael J a m e s Logan and C harles R. A sher have joined the com pany as sales rep resen tativ es, according to Joseph K. Caron, vice president, general m anager. Mr. Logan will work out of the O m aha office and have responsibility fo r t h a t a r e a . P r io r to jo in i n g Diebold, he was employed by Dicta- * phone C o rp o ratio n as an O m aha sales re p re se n ta tiv e , w in n in g th e A chievem ent A w ard th re e tim es. W hile employed there, he specialized in the banking telecom m unications field. Mr. Logan is a native of Red CORPORATE NEWS . . . (Turn to page 44, please) M. H. LO GAN C. R. ASHER 17 How do you rescue your funds from costfy float? Ask Chicago’s Bank. I I Some of those “free” services offered by the Fed may actually be pretty expensive when you consider what they cost you in float. Take cash letters. Banks all over the U.S. are discovering that direct sends through First Chicago can provide faster availability for items the Fed—and other correspondents—would float for one or two days, sometimes more. And the extra income these funds can produce far outweighs the small fee we charge. First Chicago’s coverage is among the most comprehensive in the country, our availability schedule one of the best offered by any bank. And we can provide a daily endpoint analysis of your cash letter to show you which items we can clear faster than the Fed or your current correspondent. Coupon collection is another way First Chicago can help you turn float into good funds. We provide same day credit on cash items. Compare that to the Fed who credits your account only after the funds have actually been collected. And we can beat most everybody on availability. We have more. For the whole story on First Chicago’s float reduction programs, call your correspondent officer in Chicago or our regional office near you. Or phone John Ballantine, Vice President, at (312) 732-4131. Today. Before another dollar drifts away. H i FIRST CHICAGO The First National Bank of Chicago Chicago: John Ballantine, 312/732-4131 • Atlanta: Norman McClave III, 404/892-0966 • Baltimore: Robert E. Probasco, 301/547-8700 Boston: Robert G. Barrett, 617/247-4040 • Cleveland: Earle C. Peterson, 216/781-0900 • Dallas: James A. Edwards, 214/742-2151 Houston: Clifford E. Shedd III, 713/658-1100 • Los Angeles: Richard D. Durrett, 213/628-0234 • New York: Donald Glickman, 212/751-3910 San Francisco: William R. Lyman, 415/788-4311 © 1979 The First National Bank of Chicago. Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 18 übtfie got one good reason to consider secured lending... The most important reason, of course, is profit. You don’t want to lose your profitable customers or pros pects should they require a secured loan. But you can’t ignore the fact that secured lending diverts your time and resources from your basic business and, unless you nave a highly quali fied staff, can become risky. however, there's a profitable and efficient way to avoid ihese problems... participate with Heller. In a manner of speaking, our staff will become your secured lend ing department.They are not only experts they are the experts in secured lending.. .the most experi enced, and very likely, the best in the business. With over a half-century in the secured financing business, Heller people pioneered many of the modern lending techniques. It’s with this experience that Heller people today perform eight essential functions necessary in ad ministering your secured loan. While your staff concentrates on your pri mary banking business, Heller is performing the following services to protect your bank's dollars. Reconciliation of Agings. Each month Heller determines which of a borrower’s invoices represent eligible collateral. What differentiates our operation is that we evaluate the individual pieces of collateral in terms of their “ real dollar” value, as opposed to computing their eligibility through some calendar-oriented, mathematical formula. Yet, our approach is positive, keeping a deli cate balance between your collateral protection and accommodation to your customer’s needs. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19 and at least eight good reasons to consider participating with Heller. Supplemental Loans. Field Examinations. Field examiners conduct audits in the borrower’s place of business at welltimed intervals. Each is Heller-trained to rationalize the figures, as well as balance them, and tneir reports often highlight correctable “ conditions” before they become serious problems. Your bank receives copies of their reports. To maximize your customer’s borrow ing capacity, a secured loan may include inventory and/or chattels as well as accounts receivable. But additional controls are needed. We revolve our in ventory loans and Processing. keep them under close, continuous control. Our inventory analysts understand “ auction values, and physically check beyond a book keeper's in-and-out tallies. Chattels are evaluated by specialists in machinery and equipment. Verification. Frequent verification of collateral ized receivables checks their authenticity, amount and terms. This way, exceptions can be personally and considerately resolved—something computers can never be taught to do. Credit Administration. Our account executives keep a com plete current picture of the borrower’s financial position, carefully following trends affecting collateral and opera tions. Typically this continual review leads to a reduction in bad debt expense, as our record demonstrates. Legal Work. While mindful of their obligation to protect the legal positions of both Heller and the bank participant, our attorneys are also business-minded. They seek ways to make a safe loan, drawing upon their experience to avoid qualifications that may sour the dealings. In fairness to your customer, it is Heller’s policy to process disburse ments or pay-downs respecting the customer's loan on the day we receive the collateral or payments. Our years of experience permit instant atten tion without undue risk. More and more banks are entering into secured lending through participations with Heller. It’s an extraor dinary business relation ship. Your customer's financial needs are served. You keep your customer, continuing to provide his normal banking functions, while you generate interest income from your portion of the loan. And you have the comfort of knowing Heller is protecting your investment. Heller has lending partnerships with banks of altsizes— from those with under $20 million in deposits to many of the nation’s 25 largest banks. Find out what they’ve found out about this marketable, profitable lending concept. Call Heller today. H ELLER H Financial Services ■ H iiH WALTER E. HELLER & COMPANY 105 W. Adams St., Chicago, III. 60603 Liquidations. Yes, occasionally they happen. What follows is the complex ana demand ing period called a “ workout;’ a time https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis when only the specialized experience of the lender and cool determ ination to “ see it o ut” can prevent a loss. Heller's record in handling these situations, like our generaT expertise in secured lending, is probably the best in the business. New York • Boston • Philadelphia • Baltimore Syracuse • Minneapolis • Detroit • Charlotte Kansas City • Denver • Atlanta • Miami Birmingham • New Orleans • Houston • Dallas El Paso • San Antonio • Albuquerque • Phoenix Los Angeles • Irvine, CA. • San Francisco Portland • Seattle • San Juan P.R. Heller services available in Canada and 21 countries around the world. Northwestern Banker, September 1979 20 BMA Meets In New Orleans Sep. 23-26 FFICIALS of B ank M ark etin g g e n e ra l se ssio n w ill be J o h n G. Association have selected "The H eim ann, C om ptroller of the C ur E arnings E quation” as th e ir them erency, W ashington, D. C. P re se n ta for th e 6 4 th a n n u a l c o n v e n tio n tion of aw ards will be m ade in the scheduled for Septem ber 23-26 a t the afternoon. These include the coveted New O rleans H ilton Hotel in New G olden C oin a w a rd s, P r e s id e n ts Orleans. Club, C hapter of the Y ear and "Best Convention C hairm an Richard F. of TV” Prem iere. L a n g a n , vice p re s id e n t, M o rg an Tuesday’s general session speaker G u a ra n ty T ru st will be well-known syndicated col C om pany, N ew um nist George F. Will, who is also a Y o rk , s a id th e c o n trib u tin g e d ito r to N ew sw eek four day conven m agazine. On W ednesday m orning, tio n w ill o p e n the general session will be addressed Sunday, Septem by G eneral W illiam C. W estm ore ber 23, w ith the land, U. S. Arm y (Ret.). A bonus gen u su a l re g is tra eral session is scheduled for W ednes tio n a n d ex day afternoon, featuring the M aga h ib its , th e n a zine E d ito rs’ P anel from Business First-T im ers Re W eek m agazine. M oderator is Lew J. G. H E IM AN N ception, followed Young, editor-in-chief, who will be by the trad itional E arly Birds Recep accom panied by four se n io r s ta ff tion w ith a New O rleans flavor. members. The three w orking days of the con E ach of th e d e p a rtm e n ta ls will vention will feature th ree m orning offer three individual topics. The rap general sessions, five departm ental sessions will offer 17 topics each for sessions, rap sessions for both com both com m unity b an k s and large m unity banks and large banks, plus banks, while the issues and special issues and special in terest sessions. interests sessions will offer 14 sepa K eynoter at the Monday m orning rate topics. The rap sessions on Mon O day and Tuesday will be aboard the SS P re sid e n t, in c lu d in g a b u ffe t luncheon. F eatured e n te rta in er at the con- > eluding ban q u et W ednesday n ig h t w ill be D ia h a n n C a rro ll, s ta r of stage, screen, television and n ig h t clubs. The preceding evenings of the convention will be free for individual ' dinner parties in New O rleans d nner clubs. r CBT Plans for Expansion The Chicago Board of Trade has initiated the first phase of its build ing expansion program with demo lition of a four-level parking garage directly south of the Board of Trade Building. The demolition will pave the way for a 23-story addition that will contain about 35,000 additional square feet of trading space for the exchange’s seventeen futures con tracts. With the 19,000 square feet of trading space in the original building, the CBT will have the largest trading floor of any com modity futures exchange in the world, according to CBT President Robert K. Wilmouth. BREAK TH E POWER FILE H ABIT thousandsof banksamcheck filing with Glide/File-well showyou why Glide/File lets you file and retrieve checks b e tte r and faster than ever before and lets you do it w ith few er people than ever before. If th a t doesn’t help build profits, nothing does. You g e t th e easiest filing, readiest access, and duickest retrieval o f any system; Glide/File brings the w ork to the clerk, and does it w ith o u t m otors - no maintenance, no paralyzing downtime. You Handy panel mounting for phone allows clerk to give instant customer or internal information w ithout removing the checks from the file. i l l ■■■■■■■■ t CL Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis get people savings - documented check processing s ta ff reductions as high as 50 percent are common among banks installing Glide/File. Let our experienced systems engineers analyze your bookkeeping operations and re co m m e n d a c o s t saving s o lu tio n . Get th e advantages pictured, and many more - they're all described in our new, free brochure. Send fo r it today. Signature card guides are auto matically positioned to 60° working "V” forcomfortable filing and signature verification. Modular units w ith locking rolldown security covers expand to fit all check storage needs from smallest to largest. UNITED BUSINESS EQUIPMENT CORPORATION 92 STONE STREET / BUFFALO, NEW YORK 14212 716-893-2722 21 Your clients can turn their assets into a ready source of working capital. Accounts receivable, inventories, machinery, equipment, land and buildings all equal cash. They may well be a manufacturer’s, a whole saler’s, a distributor’s and a processor’s best friend. Banco Financial Corporation provides tailor made revolving credit lending program s secured by these assets. Funds to satisfy work ing capital needs for growing companies. That means money to grow, pay suppliers, take discounts, control cash management, plan for sales expansion, or to expand production facilities. Or it can be money for buy-outs, merger and acquisitions, term loans, capital loans, and chattel financing. There are no compensating balances. You can take money down as needed, daily if neces sary, and you pay only for actual days used. Any bank or insurance company can partici pate. Intensive loan management and adminis tration by an experienced staff provides protection for the lender’s money. Banco Financial Corporation can provide the credit lines to do the job. We’re a leading re source for the company that’s short on capital, or one with an eye toward expansion, or well managed firm s that are grow ing and sales hungry. And we’re a specialist in providing funds to captive finance companies. And we’ll be glad to show you how asset money can pre vent dilution of present ownership. Banco Financial Company. People with years of secured financial experience, ability, imagina tion, advice and service. Visit our new offices at 830 Northwestern Bank Building, Minneapolis, MN 55402. Or call Clarence Adams, Lee Mork, Robert Olson, Paul Weingart, Donald Matthes, Ronald Weis or Jack Hart, at 612-372-7988. Financial Corporation An Affiliate of Northwest Bancorporation Achieve your goals with money services from affiliates of Northwest Bancorporation. Assets over 11 billion! https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 22 ABA Lists Top 100 Ag Bank Lenders HE B ank of Am erica, h eadquar tered in San Francisco, leads the list of A m erica’s 100 largest agricul tu ra l bank lenders, as indicated by a special supplem ent of the "Agricul tu r a l B a n k e r,” p u b lish e d by th e A gricultural B ankers Division of the Am erican B ankers Association. As of December 31, 1978, B ank of America, the n atio n ’s largest bank in deposits, h eld n e a rly $1.2 billion ($1,160,145,000) in total farm loans. The top th re e b ank a g ric u ltu ra l lenders are from C alifornia, w ith Crocker N ational Bank, San F ra n cisco and Security Pacific N ational B ank, Los Angeles, being num ber two and th ree respectively. Of the first ten leading banks in agricultural lending, five are from C a lifo rn ia , in c lu d in g fifth place W ells Fargo B ank, San Francisco, and te n th place U nited C alifornia Bank, Los Angeles. Texas leads, w ith 14 banks — the g reatest num ber of banks listed in ABA’s top 100 b a n k a g ric u ltu ra l lenders. N ext is N ebraska w ith nine banks listed. A t th e end of 1978, banks held T m ore th a n $28 billion in non-real estate farm loans, nearly h a lf of the total $60 billion non-real estate a g ri cu ltu ral loans held by all lenders, placing b an k s in the num ber one position, ah ead of th e P roduction C re d it A s s o c ia tio n s , w h ich h e ld approxim ately $15 billion in nonreal e sta te farm loans d u rin g the same period. In th e nine upper m idw est and m ountain states, 34 banks are listed in the top 100. All but four are indi vidual banks not p a rt of m ulti-bank holding companies. The Om aha N ational Bank, listed in 16th place, actually has a larger p e rc e n ta g e of its to ta l d e p o s its loaned to agriculture th a n any of the m ajor b anks listed in the first 15 places. All of them are m ulti-bank holding com pany lead b a n k s and have total ag loans ranging from less th a n 1% up to about 8% of th eir total deposits. The O m aha N ational has 14.4% of its deposits com m itted to ag loans. Not far behind, in 21st place, is N a tio n a l B an k of S outh D ak o ta, Sioux Falls, w ith 16.4% of deposits in ag loans, N orthw estern N ational of Then, we schedule and s e n d ^ A to m a h a F in a n d a U ife .w e ^ uncompl'cate V r rÄ programs ” s Taue c « " ¡ “ S r» “ « “ ■'^nrom we irmicwc - — - ■ Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Joseph A. Yuska Jr., vice presi dent, Continental Illinois National Bank and Trust Company of Chi cago, has been re-elected president of the Midwest chapter of the Fo reign Exchange Association of North America. tradition of dependable ancet t ?n and service. protection a pfcate K^ l i r o t i o n reacj bitting ^ «understand s?*Kbrocnu » ssa, spell out the n e e d ^ rcl.ents that need. Re-elected President of Foreign Exchange Assn. So whv wait ■ mortgage inomailing u tV°n to vour new clients to VOUi mgto yo u rcred roaram now bv calling help insure an e yprogram. S S ï ï S o - » participât! uncompütoday. Omaha Fl" angdJt and mortgage ^ 800 - 328-1950 _ cates Vour aramsin other insurance of a in s u ra n t vpograrn^se « use 0f wavs, 'wavs,too. tpo-LL knV.cationthat thatasks ■ minimum °_. show iSour^mtection £ 5 S o »fills s 'cl* Sioux Falls in 25th place w ith 19.4% in ag loans and F irst N ational B ank of Aberdeen, S.D., in 26th place, w ith 27.6% in ag loans. The highest ratio of the 100 banks listed appears to be F irst N ational B ank of Holdrege, Nebr., which has 51% of its $59,600,000 in deposits in ag loans. N ext highest is Monticello State B ank of Monticello, la., w ith 45% of its $77,638,000 deposits in such loans. Among the nine states in upper m idw est and m ountain areas, N eb rask a has nine banks listed in the top 100, Illinois and Iowa each have six, South D akota has five, Colorado and M in n e s o ta e a ch h a v e th r e e a n d N o rth D ak o ta and M ontana each have one bank listed. .... of Omaha Company — 55420 » tu » o r o m , . . o! on an insur- S S » » -"» « « " 23 Does your correspondent banker handle each loan request personally? Ours do — start to finish. How many times have you heard this? ‘‘Sorry, I’ll have to refer you to our loan committee. Nothing personal, mind you.” Mercantile decided long ago our cor respondent banks shouldn’t have to put up with that. So we gave our account officers the authority to approve loans. We found it saves a lot of running around and wasted time. Especially for you. Not just on commercial loans, either. Each officer also takes care of per sonal and agricultural loans, plus loans for bank stock and mergers and acquisitions. He’ll even help you form a syndicate, if needed. As you might expect, this places a big responsibility on the shoulders of our account officers. So we try to make sure they stay at top form. Each officer attends seminars on credit and finance to keep him up-to-date on the latest trends. Furthermore, each officer has 1600 Mercantile people backing him up all the way. But he knows the full respon sibility for your satisfaction falls squarely on his shoulders. So why not call a Mercantile Banker today? He’s one guy who won’t pass you on to some committee. We’re with you. Central Group, Banking Dept. Mercantile Trust Company N.A. St. Louis, MO. (314) 425-2404 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MERCnnTIIE BRfK Northwestern Banker, September 1979 24 NABW Meets in New Orleans Sep. 30 - Oct. 3 EVERAL m ajor speakers recent ly were announced for the 57th annual convention of-the N ational Association of B ank Women, Inc., to be held Septem ber 30 through Octo ber 3 a t the New O rleans Hilton. "B an k in g ’79: P u ttin g th e Pieces Together” will exam ine all aspects of the banking industry, w ith special focus on trends and projections th a t w ill affect an in d u stry for w hich skilled, innovative m anagem ent is the key. Presiding at the convention will be NABW P resident E sther H. Sm ith, vice p re s id e n t, C om m erce U nion Bank, Lebanon, Tenn. H er successor as president for the coming year is Joseph ine W ebster, c u rre n tly vice president of NABW and vice presi den t-in v estm en t officer, A m erican Fletcher N ational B ank and T rust Co., Indianapolis. The lin e-u p of sp e ak e rs begins w ith Alene Moris, president, The In dividual Development Center, Inc., S e a ttle , a n d NABW E d u c a tio n a l F o u n d a tio n c o n s u l t a n t , a t th e aw ards dinner on Sunday, Septem- S KIRK GROSS CO. 110 East 7th Street Waterloo, Iowa 50705 Phone 319-234-6641 Ask for Dick or Jerry J. WEBSTER her 30. Ms. M oris will ta lk about "P utting the Pieces Together.” On M onday, aw ard-w inning eco nomic affairs correspondent Irving R. Levine of NBC’s N etw ork News will m oderate a panel on bank reg ulation. The panel will include Lewis G. Odom, Jr., senior deputy comp troller, Office of the Com ptroller of th e C u rren cy , W ash in g to n , D.C.; M.G. Sanchez, president, F irst B ank ers Corporation of Florida, Pompano Beach, and president-elect, Robert M orris A ssociates, and Ronald A. T erry, ch airm an , F irs t T ennessee N ational Corporation, M emphis, and m em ber and past chairm an of the D.W.Y.S.Y.W.D. KIRK GROSS DOES!!!! When Kirk Gross Co. tells you what they will do, they do it! It’s as simple as that! When they give you an estimate for your new building or remodeling project, that’s what it will cost! When they tell you when it will be finished, that’s when you can turn the key! And when they tell you it will be coordinated, functional, and beautiful, that’s what it will be. Because Kirk Gross Co. specializes in Turn Key projects. Ask any of the many, many clients we have worked for in Iowa. (Write for complete list.) They’ll tell you Kirk Gross Co. does what they say they will do! *Do What You Say You Will Do Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Am erican B ankers Association gov ernm ent relations council. D u rin g t h a t a fte rn o o n ’s w o rk shops, tru s t legislation will be the topic explored by M artin F. Shea, vice p resid e n t, M organ G u a ra n ty T rust Co., New York City; Robert L. Bevan, chairm an, governm ent re la tio n s council, A m erican B a n k e rs A s s o c ia tio n , W a s h in g to n , D .C .; C h arles M oran, senior vice p re si dent, M anufacturers H anover T rust, New York City, and Don Thurm ond, group vice president, T rust Company Bank, A tlanta. Joe W hite, senior vice president, F irst N ational B ank of Commerce, New O rleans, will m oderate a w ork shop on banks and com m unity econo mics also on Monday afternoon. I.R. LEVINE R. KANTER lili R. I. SMITH S. S. BUCK On Tuesday, October 2, Rosabeth Moss K an ter will kick off the pro gram m ing during a general session. Ms. K anter, professor of sociology, o rg an iz atio n an d m a n a g e m e n t a t Yale U niversity, New Haven, Con necticut, au th o r of Men and Women of the Corporation, and p a rtn e r in the C am bridge, M ass., consulting firm Goodmeasure, is a noted authority on organizational power and wom en’s roles. Filling the afternoon will be five concurrent m anagem ent workshops. Scheduled on a lively president’s ’ panel on W ednesday, October 3, is R uth I. Sm ith, president, The F irst State B ank of K ansas City, K an., and NABW im m ediate p ast president. The panel also includes Sally Buck, president, W om en’s B ank of Rich mond, V irginia. 25 There are many reasons why you can depend on the Pro Formers of Deluxe, but one of the most impor tant is that your satisfaction is guaranteed! If we make an error, we will correct it. A nd even if you make an error or have a problem, we will do everything v can to resolve it quickly and satisfactorily. There are more than 80 standard catalog forms to fit almost any need. We will also design a cus tom form for less than $25 and print it at standard catalog prices. Your forms are printe ting standards of workmanship and materials, and P shipped within 10 r- working days of the time the order is re ceived in the plant. Satisfaction may be an old-fashioned idea, but it is a principle on which our business was built—and it is just as important as ever, ut the Pro Formers on ur team ee catce list is available from your representative or by writing us at he address below. DELUXE CHECK PRINTERS, INC. FORMS DIVISION/P.O. BOX 43497 ST. PAUL, MINNESOTA 55164 1-800-328-9600 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 26 Seevoti in We’re looking forward to meet ing and greeting our colleagues from nearly a thousand corre spondent banks while we’re in New Orleans. See you there! \\i... UNITED HP MISSOURI BANK OF KANSAS CITY, N.A. United we grow. Together. RO. Box 226 o Kansas City, Mo. 64141 816-556-7000 ^d CROSBY KEMPER JERRY SCOTT JOHN KRAMER DICK KING PHIL STRAIGHT GEORGE CREWS Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WALLY BECK DUNCAN KINCHELOE E f. BURCH KIRK VAUGHAN MIKE FLEMING JACK BEETS HAROLD HOLLISTER TED CAUGER L F. COX DICK BROOKS STEVE BLACKBURN CROSBY KEMPER. Ill 27 OSTALGIC New Orleans will be host to more than N 12,000 bankers and spouses who are expected to attend the 105th annual convention of the American Bankers Association October 5-10. Pre-registration in August was running at more than 11,000 persons, 14% ahead of the two previous stateside ABA conventions. Two of the prominent speakers invited to address the opening general session on Monday are Senate Finance Committee Chairman Russell B. Long (D-La.) and former Secretary of State Henry Kissinger. ABA Officers J .H . PERKINS President W. W. ALEXANDER Exec. Vice President https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C .C . HOPE P resident-E lect T. R. SMITH Treasurer Sharing the platform with them at that time will be ABA President John H. Perkins, president of the Continental Illinois National Bank and Trust Company, Chicago, who will deliver a major address and preside at the session, and ABA Executive Vice President Willis W. Alexander. Slated to succeed Mr. Perkins as ABA president for 1979-80 during the election to be held on Tuesday is C. C. Hope, Jr., vice chairman of the First Union National Bank of North Carolina in Charlotte. Mr. Hope has been president-elect this past year. Completing a two-year term as treasurer of the ABA is Thomas R. Smith, president of the Fidelity Brenton Bank and Trust Co., Marshalltown, la. Mr. Perkins will become chairman of the Governing Council, the policy making body of ABA. In that office, he will succeed his predecessor as ABA president, A. A. Milligan, president of the Bank of A. Levy, Oxnard, Calif. Special Sessions and Panels There will be “ early bird” registration Friday, October 5, then on Saturday a participatory session of community bankers will focus on coping with federal legislation and regulations, areas in which community bankers play a key role in formulating and implementing ABA policy. That will be followed the same day by a major panel The illustrations reproduced here are by the noted New Orleans artist, Joseph A. Arrigo, and are used with his permission. Copyright 1976. Northwestern Banker, September 1979 28 R. B. LONG J. G. HEIM AN N H. KISSINGER W. M. ISAAC presentation entitled “Investment Strategies for the ’80s,” an analysis of the forces affecting American and international financial markets as the new decade begins. Throughout the convention, concurrent special interest sessions will be offered, focusing on specific subjects of particular interest to the banker participants. On Sunday, October 7, convention registrants will begin the day with the traditional Fellowship Gathering, led by a prominent Southern B ap tist leader, and including inspirational musical presentations. That afternoon there will be a presentation on bank public relations and com m unications, with em phasis on consumer banking issues. A “Welcome to Louisiana’’ reception Sunday evening will highlight the rich cultural and historical traditions of Louisiana and New Orleans, to which ABA is bringing its convention for the first time in more than 40 years. The first general session will be Monday morning, as noted above. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A major forum Monday afternoon will feature a debate entitled “ Free Market versus Government In terven tion .’’ The debate will include prominent spokespersons for the differing points of view. Senior financial and monetary experts will head the list of speakers at a Tuesday morning general session, which also will include the election of ABA officers for 1979-80. Comptroller of the Currency John G. Heimann, FDIC Chairman Irvine Sprague and FDIC Director William M. Isaac will make presentations that morning. Invited to speak Tuesday are Federal Reserve Chairman Paul Volcker and former Treasury Secretary John Connally. Tuesday afternoon, sessions will be held in which bankers will be able to meet directly with senior officials from the federal bank regulatory agencies: the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Federal Reserve Board. A gala reception Tuesday night will carry a Mardi Gras theme representative of the enduring attractions and pleasures of New Orleans life. A panel discussion October 10, the final day of the convention, will cover the federal legislative and regulatory outlook for 1980, with particular emphasis on the banking issues which the second session of the 96th Congress may resolve. An exhibit hall with some 350 booths sponsored by over 180 firms, together with an activity center offering special entertainment and information opportunities for bankers and their spouses, will be open Saturday, October 6, through Tuesday, October 9, during regular hours. The activity center will include a hospitality area for community bankers and their spouses. Instead of a separate spouses’ program, the ABA convention this year has been structed to include sessions of interest to both bankers and their spouses throughout the program. Topics to be covered by the 19 special interest sessions include: • Save Money and Don’t Return the Checks • Lending Policy and Credit Administration for the Small/Medium Sized Banks • Retail Banking in a Plastic Environment • Organize Your Bank for Compliance • How to Think Like a Director • Planning for Profit • Deposit Generation—Managing Under High Cost • Investment Portfolio Management • Why Form a One-Bank Holding Company? • What is Your Bank Worth? • Agricultural Credit: The Apparent Horizon • ABA Controlled Group Bonding Plan • Focus on Human Resources—Incentive, Motiva tion, Affirmative Action, EOC • How the New Bankruptcy Law Affects Your Bank Procedures Government Relations Workshops • The Asset/Liability Balance A ct—Management’s Teeterboard • Don’t Give Your Services Away • How Changes in Correspondent Banking Will Affect You • Coping with the Financial Institutions Regulatory Act □ 29 W hat can we do for you? Just ask any one o f these Commerce Bankers attending the ABA Convention. John R. Owen Fred N. Coulson, Jr. John J. Williams David W. Kemper Executive Vice President Senior Vice President Senior Vice President Vice President îfî Commerce Bank g% w NA of Kansas City 9th & M ain 234-2000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10th & W alnut MEMBER FDIC 12th & C ha rlotte Northwestern Banker, September 1979 By la n d By air. W e deliver. FAST Fast turnaround. That’s what your cash manage ment program depends on. That’s what our availability schedule delivers. Our professional staff constantly reviews our cash availability procedures to make sure our system provides the speed you need. Our "direct-send” schedule best reflects our commitment to move your money faster than anyone else in the region. And it’s convinced a lot of bankers to switch their business to us. For full details, talk to one of our cash management experts today Call (402) 348-6565. T he O m aha N ational Banl^ Farnam at Seventeenth o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Omaha, N ebraska 68102 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 1979 Livestock Outlook A N orthwestern ONTINUED high prices for 400 pound steer calves C and other replacement cattle are anticipated for the balance of 1979 and into 1980 by a selected group of experienced livestock bankers taking part in the Annual Livestock Survey conducted by the Northwestern Banker. A full 60 % of these bankers expect a record high price of $100 for 400 pound steer calves, and two of the group state they expect a price of $105 in 1980. Other respondents look for prices of those calves to range from $75 to $80, while one banker selected prices of $90 and $95 respectively for late 1979 and 1980. An interesting corollary to their anticipated high costs for replacement cattle is their range of anticipated prices for fat cattle—1,150 pound choice steers. The range of their guesses is from $60 by one respondent for a late 1979 price to the high of $83 per hundred in 1980 by another banker. Most of the replies are in the $65 to $75 limit for fed cattle. Record Crop Expected With reports pouring in from USD A and individual state reportings it appears that the nation in August was headed for a near record crop. Corn is expected to top six Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B anker S urvey billion bushels and soybean production should exceed two billion bushels. Although feed will be plentiful, there is every indication that stored grain and large amounts of the new crop will be shipped from grain states to overseas points for export, showing that agriculture is again coming to the rescue of the nation’s balance-of-payments problem. The USD A and State Department have reported poor grain crops again in Russia and have stated they expect Russia to be a big grain buyer in the United States again this year. What effect this will have in the final analysis on U.S. grain prices remains to be seen, but it will result in at least some shoring up of prices that might otherwise have sagged without a big export likelihood. Many bankers in this survey and in personal talks mention the critical problem today of transportation and that subject is addressed next month in separate interviews with a transportation expert and railroad officials. Respondents were asked to give their guestimates for prices in late 1979 and into 1980 for steer calves (400#), heifer calves, choice feeder steers (650#), choice feeder heifers, choice steers (1150#), choice heifers, hogs 33 (200#), bred sows and feeder pigs. A dditionally, they were asked to comm ent for their m arketing area on the cattle and hog situation in early A ugust, and state w hat th e y b eliev e to be th e m o st im p o r ta n t fa c to rs or problem s facing agriculture in the next few years. Their replies follow: Sam O’Neal, executive vice president, Farmers and Merchants National Bank, West Point, Neb.: We have had a large increase in our capacity to farrow hogs over the p a st few years. This capacity is now producing a large num ber of pigs to be finished for slaughter. The recent high prices of red m eat in beef and pork has e n c o u ra g e d th e c h ic k e n in d u s tr y to p ro d u c e m ore chickens, so we have a fairly heavy to tal tonnage of m eat for the consumer, which m ay hold all m eat prices a t a lower level. The cattle num bers for feed lot replacem ent are down, as ranchers and producers rebuild their breeding herds. I t m ay be difficult for the feeder to purchase replacem ent cattle a t a price where he can m ake a profit when they go back to the slaughter m arket. The hog producer who farrows his own hogs and does not have a high overhead in fixed assets will be able to m ake a profit, b u t it will be a m uch smaller profit than the p a st few years. This is my estim ate if the grain m arket stay s at present levels. I think energy costs and the oil problem, w ith their effect on the total economy of the country, will be the m ajor problem. The energy costs to the nation will raise the farm er’s cost of all his consum er item s. I t will raise the costs for everyone, so the percent of the consumer dollar which goes for food m ay be reduced, thus lowering the prices farm ers receive for their cattle and hogs. Inflation will continue to cause problem s for the farmer. Land price, equipm ent, the costs of his crop inputs, as well as interest costs m ay reduce the net income of our farm ers. continue to exceed dem and for the next several m onths. As evidenced throughout the sta te and those adjoining us, m any confinement facilities have been constructed, increasing the capacity considerably. Boar sales in re c e n t m o n th s a lso in d ic a te c o n tin u e d h e a v y production. Some producers could well see paym ent problem s on recently constructed units. U nfortunately, such units seldom have any versatility so operators m ust stay with their production and do a lot of praying or let them rem ain idle which doesn’t repay on debts. T he m o st im p o r ta n t fa c to rs or p ro b le m s fac in g agriculture in the next few years are: Inflation—energy —cash flow—tran sp o rtatio n of products—land use and governm ent regulations concerning same. Being close to the river term inals we are probably more conscious of the tran sp o rtatio n problem th an m any. Unless fuel is m ade more available for barge traffic we are going to end up w ith a m arket for grain and no way to deliver. Oliver Hansen, president, Liberty Trust and Savings Bank, Durant, la.: Our local feedlots are gradually being gleaned out of fat cattle w ith few replacem ents brought in so far. In terest is being expressed, b u t recent drops in fat cattle m arkets have created a very cautious attitu d e. We look for fewer replacem ents unless we have an early frost causing a wet corn problem. There is considerable concern th a t the pork supply will Tom Hay, president, Security State Bank, Casey, la.: C attle feeders have been in a profit situation up to this time. However, some m arketings from now on will be the higher priced feeders purchased last spring and we could see some losses for the next several m onths. Farrow to finish hog producers are still showing profit, b u t the hog m an who purchased the $45 to $50 pigs is g ettin g a poor return on his corn. I believe the rapid escalation of production costs is the biggest problem in agriculture. Prices received do not m aintain sustained increases necessary to keep up w ith This chart shows the averages of estimated prices expected late this year and into 1980 by bankers participating in this survey. Figures in parentheses are the high and low estimates given in each category by participants. 1979 Steer Calves (400//) 1980 $91.88cwt $93.46cwt (75-102) (80-107) 1979 Heifer Calves 1980 $84.31cwt $86.13cwt (70-93) (75-99) Choice Fdr Steers (650//) $70.88cwt $78.33cwt (65-85) (65-90) Choice Fdr Heifers $70.00cwt $72.53cwt (60-80) (60-84) Choice Steers (1150//) $65.81cwt $68.33cwt (60-80) (55-83) Choice Heifers $62.44cwt $64.80cwt (55-77) (51-80) Hogs $37.76cwt $39.13cwt (30-40) (32-45) Feeder Pigs (40//) $26.71 each (15-35) (200//) Bred Sows https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $146.67 each $187.66 each Northwestern Banker, September 1979 34 costs. In terest rate increases are hurting m any farm ers. In the past, high interest rates have not hit the rural areas, b u t we bankers are now facing increased costs with CD rates being tied to money rates. I believe our custom ers will be living w ith a m uch higher interest cost base for m any years to come. H igh land prices, along w ith increased cash rent rates, are creating problems for the young farm er. This could become the biggest problem in future years as more of our established operators reach retirem ent age. Myron Peterson, correspondent banking representa tive, United States National Bank of Omaha: While livestock prices are currently depressed, the m arket should improve later this year. The reason for this is th a t the expansion phase of the cattle cycle is ju s t beginning and cattle num bers are low. The m ost im portant factors affecting agriculture in the next few years will be energy costs and population grow th. Ever increasing energy costs will continue to squeeze profit m argins and will force m arginal operators out of business. On the positive side, world population grow th and the resulting export expansion will tend to keep product prices a t steady, high levels. Dexter H. Gunderson, vice president, American State Bank, Yankton, S.D.: In our area we have an extrem e shortage of cattle th a t have gone on feed this summ er and the num ber of cattle feeders has diminished and is steadily dim inishing. This trend started in 1974. The hog situation in the area is tough because there have been a lot of small 300-600 hog feeding setups and the m argins have diminished the profitability. There are a lot of small hog farm ers who are going to be h urt if these hog prices don’t tu rn around soon. Our long-time established cattle feeders are in somewhat better shape because these cattle are in strong h an d s. Our current calf operators are in the drivers seat and I believe they will continue to dom inate the m arket scene through the diminishing supplies of calves and feeder calves. I think the biggest factor facing agriculture today is transportation. Not only dom estically, b u t I believe the fo re ig n m a rk e ts h a v e n o t been e x p lo ite d to th e ir entirety. I do not believe the S tate D epartm ent and the governm ent are interested in getting top dollars for our farm products, which includes livestock and, therefore, until the governm ent realizes th a t we need agriculture and solves this transportation problem, we could be in for some tough tim es. Labor is another problem on the farm s. The am ount of grain th a t is grown or the am ount of livestock th a t is fed is going to depend upon how hard the producer w ants to work and how m uch physically can be done. If we can solve this tran sp o rtatio n problem, I believe farm ing and ranching are in for some excellent years. In regards to the money situation, I think the tig h t money situation has been caused by bankers being too loose w ith credit. If loan officers had the intestinal fortitude to say no and weed out m arginal loans, there would be plenty of money for good operators. I think this situation is going to happen sooner or later th a t we will see the quality of our borrowers steadily increase. F. Donald Lewis, vice president, The Omaha National Bank, Omaha: Cattle num bers would cause one to be optim istic for both near term and more d istan t future, Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T his map show s A u g u st 1 estim a te s by states of corn (top figu re) and soybeans (b o tto m figu re) bushel per acre p ro d u ctio n . Prepared by U nited States D epartm ent of A g ric u ltu re Crop & Livestock R eporting Service. b u t th e econom y, e n e rg y , in fla tio n a n d g e n e ra l pessim ism are depressing prices more th an fundam en tals would dictate! The hog supply is too large and it will take nine m onths to a year to rectify this situation. Energy for both crop production and transportation could be critical a t tim es over the next few years. Conflicts of interest in the m arketing sector of the industry may cause price volatility to reach the point where governm ent intervention is necessary, and I can think of no greater problem th an futher governm ent control. Bob Reiquam, president, First National Bank in Miles City, Mont.: Very few yearlings are contracted at this point (early A u g u st). A nother 30 days will see some direct sales of yearling steers, and we estim ate in the 70-75 cent range. M ost yearling heifers were exposed and those pregnant will be m arketed as bred heifers. O pen h e ife rs w o n ’t be m a rk e te d u n til O c to b e r or November after p.g. testing. Calves will be lighter than normal. A few were contracted in M ay a t about the $1.00 figure on steers. Prices offered now are not a ttrac tin g contract signers. N ot m any hogs in the area, b u t the business looks tough in the near term . The m ost im portant problem facing agriculture in the next few years is fuel, and its m any ram ifications have to be the g reatest concern and problem in years ahead. Fuel costs will stim ulate inflation. They will create additional transportation problems and costs for moving produce from farm to m arket and in m oving supplies from m arket to farm. A dequate capital for agricultural finance is also a problem we’re facing. Bankers and their agricultural custom ers are going to have to recognize the com petition for funds and be prepared to pay for the use of this money. It will be essential to find alternative sources of 1979 LIVESTOCK OUTLOOK . . . (Turn to page 134, please) I ll > W hen a customer asks for more than your lending lim it, 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 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) 683-3288. BAN K of AM ERICA Correspondent Banking Services Bank of America N T& SA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36 How we built our bank to $ 1 2 4 million a s s e ts in a town of 1 0 ,5 0 0 W ritten especially for The N orthw estern B ank er By THOMAS F. BOLGER President M cHenry S tate Bank M cHenry, 111. T New drive-in and op era tions b u ild in g com pleted in 1979. Early b u ild in g occupied from 1915 un til 1956. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H E LONG, proud history of the M cH enry S tate B ank began in 1906—the year the sta te auditor gave consent to organize a state bank a t W est M cH enry. A unique situation prevailed in th a t the City of M cHenry was served by two separate post offices, both w ithin the city ’s corporate lim its. One office was known as W est M cHenry and the other as M cHenry. The bank, capitalized a t $25,000, opened for business on Septem ber 10, 1906, in a store front building on M ain Street in W est M cHenry. The capital and reserve accounts have now grown to alm ost $10 million from the original capitalization. This has been accomplished w ithout the benefit of additional stock subscriptions, b u t rather entirely from retained earnings. The grow th of our bank in the p ast decade is probably the result of increased population in the com m unity. M cHenry S tate B ank has, however, grown m uch faster th an other financial institutions in the area. There has been no decrease in com petition as an additional bank has been chartered and two new savings and loan branches have opened in M cHenry in the last few years. Our population now is 10,500 residents. 37 custom ers and try to make calls on new businesses as soon as we receive word th a t they will be coming in the area. We use newspaper and radio advertising, b u t not in e x c ess —th is b a n k ’s b e s t a d v e rtis in g m ed ia is satisfied custom ers. m any custom ers. The ability to offer professional tru s t services has added substantially to the grow th of the commercial side of the bank. We feel an independent bank can provide better service to a com m unity than can a branch banking Fair Price for Good Service The bulk of our accounts are individual. There is very little industrial activity in our im m ediate area and the deposit ratio is 74% tim e and 26% dem and. The bank o ffers th re e ty p e s of c h e ck in g a c c o u n ts (re g u la r, B an C lu b a n d low co st) b u t th e y a re n o t free. M anagem ent feels th a t custom ers expect to pay a fair price for good service. I t is hard to justify encouraging your depositors to draw down checking account balances and to increase activity w ithout paying for it. Of c o u rse , se n io r c itiz e n s receiv e free ch e ck in g accounts b u t the bank is not bashful in asking the seniors for their other business. A sking for business is a policy of the bank. W hen granting a loan request, the borrower is rem inded th a t loan funds come from deposits and we will appreciate any deposits th a t can be directed to us, such as friends, relatives, etc. The M cHenry area was prim arily an agricultural com m unity, dom inated by dairy farm s. The dairy farm is fast disappearing and there is very little agriculture YEAR-END TOTALS (la st 3 fig u re s o m itte d ) A ssets D eposits Loans 1953 9,750 8,974 3,948 1963 23,838 21,719 10,388 1973 64,900 58,400 38,500 1978 123,900 113,400 75,500 system or a m ulti-bank holding company. M uch of the success of the M cHenry S tate B ank is knowing and serving our own comm unity. We welcome custom ers from other comm unities, b u t we do not advertise in other towns. We know th a t if we do a good job in M cHenry, we will have all we can handle and will have satisfactory growth. The Com m unity Reinvestm ent A ct did not bother the M cHenry S tate Bank in the least. This A ct merely says th a t we have to do w hat w e’ve been doing for m ore th a n 70 y e a rs —t h a t is to se rv e o u r own comm unity. Much of our success m ight be attrib u ted to the fact th a t we “ run our own b a n k .’’ We are not overly influenced by w hat everyone else is doing. Our prime rate is generally not as high or as low as the city b an k s—our rates are determ ined by the cost of our money. Service Most Important Main b u ild in g of the McHenry State Bank after addition in 1956. left in the im m ediate trade area. However, the bank does have several farm custom ers from nearby as the bank has always enjoyed a reputation of understanding farm ing and being sym pathetic to the needs of the farm er. We have been the only bank in the area for the last several years who clerks farm auction sales. The feeling is th a t the farm er will still need a bank after selling out, and if we can save him m oney—so much the better. Builds Trust Business M cHenry S tate has had a tru s t departm ent for several years, b u t it has not always actively solicited business. A bout six years ago, the board decided th a t if the bank was to offer tru s t services, it would have a staff of capable people and set a goal to develop the best tru s t departm ent outside the City of Chicago. This goal has been accomplished. The departm ent holds approxim ately $20 million in assets and also adm inisters several hundred land tru sts, which are very popular in Illinois. A bank custom er today is looking for more th an the traditional loan and deposit function. A knowledgeable tru s t departm ent is a m ust for a growing, p ro g re s s iv e s u b u rb a n b a n k . O ur t r u s t o ffic ers are constantly m aking new inform ation available to the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The bank is not influenced by w hat other financial in s titu tio n s are d o in g w ith g im m ic k s, su ch as give-aways and prem iums. I t has always been our philosophy th a t the valuable custom er is looking for one th in g —good service at fair prices. The bank has always m aintained sensible banking hours. Custom ers w ant good service at reasonable hours rather th an indifferent service at all hours of the day or night. Probably the m ost significant factor contributing to the M cHenry S tate B ank’s grow th is service. Every o fficer an d em ploye know s t h a t his or h e r m o st im portant responsibility is to provide good, friendly service to the custom er. T he n u m b e r one re a so n for th e su c ce ss of th e M c H e n ry S ta te B a n k is p ro b a b ly c o m m u n ity involvement. The bank prospers only if the com m unity prospers and m anagem ent is very well aware of th a t fact. The bank is actively involved in the Cham ber of Commerce and several of our officers have served as Cham ber president. A dvertising stresses th a t the M cHenry S tate Bank profits only if the entire com m unity profits. The bank consistently provides services to the school district and the city governm ent. W hen and if the schools are in need of A nticipation W arrants,they can count on the bank to purchase them at a fair and com petitive price. There really is no magic formula for the success of this bank. I believe it is an excellent staff which is here to serve the public and it is com m unity involvement, not only by the bank itself, b u t by the individual staff m em bers. □ Northwestern Banker, September 1979 38 Deposit -building ideas . JAMES N. PETERSON A ssistant Vice President-M arketing N orthw estern N ational Bank Owatonna, Minn. T H E OW ATONNA trade area is a balance of very productive farm enterprises and a strong m anufac turing complex. This combination provides a viable economic environm ent for deposit growth; however, this does not guarantee th a t deposits will flow into the bank. I t challenges us to develop a m arketing plan which will a ttra c t potential depositors and additional deposits on a continuing basis. O ur n u m b e r one m a rk e tin g c o n s id e ra tio n is th e development of our personnel. While th a t may not sound like a m arketing strategy, I believe th a t our staff is our m ost im portant m arketing asset. We feel th a t we hire very com petent people and it is necessary for us to provide them with the tools to do their jobs efficiently and effectively. We strive to keep our staff informed a b o u t our v a rio u s b a n k in g se rv ic e s an d w h a t th e advantages of these services are to our custom ers. We w ant all N orthw estern Bank employes to be proud of their relationship with their bank and therefore to let their enthusiasm sell the bank to their friends and acquaintances. One of the tools we use to cross sell services to our custom ers has been the In sta n t Cash Program . In sta n t Cash is the name for our autom atic teller machine system , which is offered prim arily by N orthw estern banks in a five-state area. Since the custom er increases the usefulness of his In sta n t Cash Card by having both his checking and savings account num bers encoded on the card, it is natural and easy for the new accounts people to cross sell the various banking services. We find the use of direct mail to inform our custom ers of new services has been very successful. Both the Reg. Q combination checking-savings package, which we call Interest Plus Checking, and the Reward Account, which is a combination savings and free checking package, have been successfully introduced via the direct mail route. These two accounts have resulted in both an increase in account activity and deposit levels. The Reward Account, in particular, has been instrum ental in the retention of high balance savings custom ers and the attraction of savings deposits. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Since June of 1978, an im portant element of our deposit grow th has been the 26-week certificate. A fter an initial advertising th ru st, we have used weekly ads to inform the public of the current rate. We have included th e 26-w eek c e rtific a te in o u r p rem iu m p ro m o tio n qualifiers and the dollars attracted by the prom otion have included a large segm ent of these certificates. The prem ium promotion has been another m ethod of draw ing deposits and new accounts into our bank. N orthw estern Bank normally conducts a spring and fall p rem iu m p ro m o tio n . A m o n g o u r m o st su c c e ssfu l promotions has been one which uses a stuffed teddy bear called “ B u ddy.” The first year Buddy was used as a free item for qualifying deposits. The pre-Christm as 1978 prom otion was called “ B uddy’s Back W ith A Sound Idea” and was used in conjunction w ith several electronic prem ium item s. Buddy accounted for approxim ately half the items dispensed during the prom otion. We found th a t Buddy was popular not only w ith the children, b u t w ith their parents and grandparents as well. From the b an k ’s standpoint, Buddy has been a good item because of the warm friendly feeling it generates and because there is very little th a t can go wrong w ith it! This p ast spring we conducted a very successful promotion using eight item s relating to spring and su m m e r o u td o o r a c tiv itie s . I t s ’ su c ce ss can be attrib u ted in p a rt to the selection of item s and also to the fact th a t the custom er had a broad choice of item s. The m ajor disadvantage of this type of promotion is the large num ber of item s th a t m ust be carried in inventory. In spite of the headaches associated w ith m aintaining large inventories and the inconvenience of returning excess inventory to the suppliers, we feel th a t offering m ultiple choices to the custom er is the m ost successful way to design a prem ium prom otion. Our cost per $1,000 deposits was the lowest of any prem ium prom otion th a t we have ever conducted. In selecting media for prem ium prom otions or a new product introduction I find th a t the m ost effective m ethod is to use a fairly heavy concentration of media m essages a t the outset of the prom otion. A fter the initial heavy schedule, periodic rem inder ads and prom otional spots are used to keep the awareness level of the public at a high level. □ 39 Five n e w w ays to ta lk b u sin e ss. Talk about progress: Northwestern Bell has made significant improvements in business com munications equipment over the past few years. By talking to people like you. Finding out how we could make the telephone into an even more powerful business tool. And then doing it. Some of the results are shown here. Look them over. Then let’s talk. The Dimension PBX. This is the ultimate in business communications equipment. Designed specifically with the needs of business people in mind, Dimension includes a host of time-saving, money-saving features —including a programmable memory bank that controls the system. Highly flexible and adaptable to changing needs, the stored program can be updated simply by changing a program tape. Plug-in modules can be added as needed. Com Key Service. The business “push button” telephone system that does just about everything but take coffee breaks (like provide your customers with music on hold; lets you set up your own instant conference calls). A family of small and medium sized communications systems designed to meet the needs of many different businesses. The Dataspeed 40 Data Terminal. It talks to computers and other data terminals. Easy preparation and editing of text. Information is displayed on a CRT where it can be easily changed, using simple controls. Modular design lets you select the capabilities you need and add others later. The AutoMatic TelePhone! It answers your calls when you can't with your own personal recorded message. Then records up to 20 minutes worth of your callers' messages. Easily incorporated with either TouchTone or rotary phones so you can be in two places at once! The Touch-a-matic Telephone. Simple programming allows this remarkable phone to “remember” up to 31 local and long distance phone numbers. Calling any of those numbers is as easy as push ing a button. Business people who frequently call regular customers and suppliers will find the Touch-a-matic phone to be a welcome and hard-working business partner. For more information, phone a member of your Account Executive Team toll-free or mail the coupon. 18002475454 (In Iowa call 1-800-532-1221) ¡~~Tell me m ore about th e fo llo w in g : □ Com Key s e rv ic e I D The Touch-a-m atic T elephone D The D im ension PBX I □ A u to M a tic T e leP h o n e D The D ataspeed 4 0 Data Term inal | I Name________________________________ T itle ______________________________ | I C om pany________________________ Telep h o ne N u m b e r___________________ I ' Type o f B u s in e s s_______________________________________________________ I Address__________ __ ____________________________________________________ I City------------------------------------------------ State-------------------------Zip_____________ I I Mall to: Northwestern Bell, 100 South 19th S treet-O N B , Omaha, Nebraska 68102 . ,D „ n r . l'* B » / / » . j Northwestern Bell https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 40 H o w to Plan Yo u r Estate A N orthw estern B anker interview with ROBERT DUNAW AY, Tax E ditor Farm Progress Publications Des Moines, Iowa E STATE taxes have become a m ajor cost when m ost farms pass from generation to generation, says Robert Dunaway, author of a new book, How To Plan Your E state. If inflation continues a t the present rapid pace, th a t cost will soar. Also, sta te inheritance taxes and lawyers could grab another sizeable chunk of your estate. B ut, with good estate planning, you can sidestep a lot of th a t cost, he adds. “ If you don’t have an estate plan, your state will decide who gets your pro p erty ,’’ warns Mr. Dunaway. “ S tate officials probably won’t divide it the way you w ant them to. Their plan doesn’t make any attem p t to save taxes and they won’t care if the farm has to be sold to pay taxes and settlem ent c o sts.’’ Tax Law Changes Not Answer The 1976 and 1978 tax law changes are not the answer to estate planning, he cautions. “ They can help, b u t only if you fit the provisions into your tax saving estate p lan ,” he adds. “You m ay not find the work of estate planning particularly exciting—b u t the results certainly can b e ,” says Mr. Dunaway. Good estate planning will always save taxes. B ut other benefits — avoiding family disputes, planning financial security for retirem ent, and family security in case of prem ature death — are probably even more im portant. E state planning doesn’t have to be either terribly expensive or difficult, Mr. Dunaw ay believes. The hardest part, he says, is gathering all the inform ation to do a good job, then m aking the decisions. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis How to Plan Your E state helps accomplish this task. It gives details in clear, concise language th a t is stripped of legal and bureaucratic gobbledygook. His book takes one logically and easily from the first steps of deciding w hat one w ants to do, then describes many logical alternatives for achieving those goals. W orksheets Provided The book is complete and up-to-date, including revisions from the legislation of late 1978. Special worksheets help the reader estim ate in complete privacy how much tax the heirs may face, perm itting the user to do a lot of preliminary estate planning w ithout paying someone else a stiff fee. W ith How to Plan Your E state, the reader can learn all about tru sts, m arital deductions, incorporation and other good estate planning tools. They are described in an easy to understand m anner th a t lets one choose w hat best fits an individual situation. Good estate planning calls for personal inform ation which only the individual can provide. If an estate planning tea m —attorney, accountant or tax m an, banker, and insurance expert—have th a t inform ation— they can do a much better job of planning the estate. How To Plan Your E sta te arm s a person w ith the information he will need to stay in command of his estate planning process. It enables him to take full advantage of help from the others on the estate planning team . W hat will a good plan cost? “ D on’t expect estate planning to be cheap,” says M r. Dunaway. “ B ut the tax savings will usually make attorney fees and other costs seem m odest.” The A uthor Mr. Dunaway joined Farm Progress Publications in 1966 as field editor after graduating from Iowa S tate University. He was promoted to m anaging editor in January of 1975 for W allace’s Farm er. The author is now tax editor for Indiana Prairie Farm er, Prairie Farm er, W allace’s Farm er, and W isconsin A griculturist. He found ed and edits Farm Tax Saver, a m onthly national newsletter of income tax and estate planning tips. He also presents income tax and estate planning information in speeches and seminars. While researching numerous income tax and estate planning articles during those years for the magazines, Mr. Dunaway saw the lack of practical and accurate interpretations on these subjects. To fill th a t gap, he founded Farm Tax Saver and wrote How To Plan Your E state. In 1978, he successfully completed the Advanced E state Planning course offered by the American College of Life Underw riters. In th a t same year, he was invited by the IRS to present ideas on how to improve their tax forms. His accurate and helpful tax saving articles have been recognized by a M eritorious Public Service A w ard presented by the IRS. His book How To Plan Your E sta te is available for $5.95 plus 75 cents for postage and handling from W allace-Hom estead Company, Box 1317, Des Moines, Iowa 50305. □ lu n e is money. g ;\> j* ' * $ < $ * & ■ ¡11 >< o ^ ° <s> > ' -, ,: ..... That’s why it pays to sell American Exprès^ Financial Institution Money Orders (FIMO). Not only is counter transaction time a breeze, but there’s hardly any back-room paper work. We do it for you, including reconciling, filing, storing, tracing, and refunding. We also print your name next to ours on every money order, then keep you supplied at no cost. You pay us a modest fee for each money order sold, of course. But you decide what to charge your customers, so you control the profit. Why spend any more time than you have to on a necessary customer service when FIMO is willing to do most of the work for you? Mail the coupon today. If you’re not selling FIMO yet, you’re wasting tim e. . . and money. Send to: Mr. Gil Rosenwald T M -Î Vice President—Sales Development American Express Company American Express Plaza, N. Y., N. Y. 10004 Don’t waste any time. Send FIMO information to: Name_ Title. Association. Address CityState. .Zip_ A M E R IC A N E X P R E S S M O N E Y < 0 ! YOUR N A M E SËJ a» ! American Express FIMO. The money-making money order. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 / \ What’s New V_________________ ) I NSTALLATION of a new signa tu re v e rific a tio n s y s te m a t its downtown and Southdale locations has been made by F&M Savings Bank of M inneapolis. M arketed by S ig n a tu re T e c h n o lo g y , I n c ., of Plano, Tex., the system is designed to p r o te c t F&M c u s to m e rs from forgeries on both savings and draft a c c o u n ts , an d red u c e c u s to m e r waiting tim e for account verifica tions. T eller sig na tu re v e rific a tio n system m ar k e te d by S ig n a tu re T e c h n o lo g y , In c ., Plano, Tex. I t c o n s is ts of a p h o to g ra p h in g s y s te m an d a s ig n a tu re d isp la y te rm in a l. S ig n a tu re s are p h o to graphed and stored in com puters, a lo n g w ith th e c u s to m e r’s o th e r account information. Tellers can call up imm ediately a signature and check it a g a in s t th e e n d o rs e m e n t on a deposit or w ithdrawal ticket w ith little w aiting tim e on the p art of the custom er. E NERGY, federal deficits, per sistent inflation, expanded b u reaucracy, governm ental regulations —these and other m ajor challenges fac in g th e U n ite d S ta te s are discussed by distinguished author itie s in a ju s t- re le a s e d book sponsored by the G raduate School of B a n k in g a n d title d , “ D ilem m as F a c in g th e N a tio n .’’ H e r b e rt V. Prochnow, director of the G raduate School of B a n k in g a n d r e tire d president of The F irst N ational Bank of C h icag o , is th e p u b lic a tio n ’s editor. Seventeen nationally famous exec u tiv e s p r e s e n t th e ir in d iv id u a l viewpoints on vital issues th a t m ay well determine our future as a nation. “ The U nited S tates is today the m ost powerful nation in the w orld,’’ Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis notes Dr. Prochnow in the preface. “ A nd yet, as we stand a t the peak of our power, we are faced w ith some of the m ost difficult problems in our h isto ry ,’’ he observes. Dr. Prochnow, editor of five other p re s tig io u s b u s in e s s b o o k s since 1968, sums up the key purpose of the 293-page work by saying, “We know how great our achievements have been, b u t have we the wisdom and c o u ra g e now to m ee t th e h a rd problems confronting us and deter mine w hat we are to be in the years ahead?’’ Available through H arper & Row Publishers, 10 E a st 53rd Street, New York, the book provides an overview S harp’s QS-4164 ca lcu la to r. of the n ation’s key challenges, the d a n g e rs in fa ilin g to m eet th e m ently accessible four-key memories. head-on, and the au th o rs’ sugges Two are 14-digit units, one is a print tions on steps to take. only model and the other is a p rin t/ display model, and two are similarly A NEW consumer banking service equipped 12-digit units. Also, a new p rin t/d isp lay desktop called T he S a v in g s P la ce h as c a lc u la to r fe a tu rin g G ra n d T o ta l been introduced by W hittle, Raddon, M otley & H anks, Inc., a Chicago- M em o ry , th e C S -2062, h a s b e e n based financial m arketing consulting introduced. Its bright green fluores firm. The program is designed to cent display is easy to read, and the encourage custom ers to deposit their printer offers a clear print-out of up to 1 2 -n u m e rals a n d 2 -sy m b o ls on savings in a bank. s ta n d a r d ro ll p a p e r. N e g a tiv e A u n iq u e ‘M enu B o a r d ’ is th e num bers are printed in red. featured consumer aid th a t shows the entire array of savings options each bank can tailor for its own purposes. Fed Has New Chairman In te n d e d to e le v a te a b a n k ’s Paul Volcker, formerly president of p ro fe s s io n a l im ag e as ‘s a v in g s the Federal Reserve B ank of New counselors’, the menu board prim ar York, has been confirmed by the ily will serve to eliminate custom er U nited S ta te s Senate for his new confusion arising out of the m ounting post as chairm an of the Federal array of savings alternatives. Extensive research conducted by Reserve System Board of Gov the firm this p ast year determ ined ernors. He was appointed to th a t which types of people provide the position by President Jim m y C art greatest savings deposits, and w hat er following transfer of Fed Chair appeals to them . The prom otional m an W illiam G. Miller to become c o m p o n e n ts of th e p ro g ra m w ere Secretary of the Treasury. D uring Senate hearings, Chair d e sig n e d sp e c ific a lly to a p p e a l to m an Volcker stressed the im port these “ funds providers’’. ance of fighting inflation first to T he S a v in g s P lace p ro g ra m m ake a dent in the problem s of in clu d e s n e w sp a p e r a d s, rad io c o m m e rc ials, ‘m enu b o a r d s ’, b ill higher in terest rates and unem ploy b o a rd a d v e rtis in g , c o u n te r c a rd s , m ent. A lthough refusing to take a brouchures, door stickers, balloons, definite position, he said he would key chains, user m anual, training favor a ta x cut over increased gov m anual, press kit, and other optional ernm ent spending as one m ethod of b a ttlin g an u n settled economy. items such as prom otional blimp. C hairm an Volcker also expressed m isgivings about H R 7, the Fed T H E C A L C U L A T O R /s y s te m s m em bership bill presently in Con d iv isio n of S h a rp E le c tro n ic s gress, sta tin g “ T h at bill leaves me Corporation has introduced four new w ith some questions.” In testim ony two years ago he was in favor of QS-calculator models. A c c o rd in g to D a n ie l M u rp h y , paying interest on bank reserves, and general m anager of the division, all confirmed the opinion in his recent four new models feature independ- Senate testim ony. 43 ‘A holding com pany is a holding com pany is a holding company.” Or is it? L et’s face it. Holding com panies aren 't alw ays alike. So if your correspondent bank thinks all holding com pany financing is the same, m aybe it’s time to look for a different correspondent bank. Like C ontinental Bank. At C ontinental w e don't have any pre-conceived notions about w hat a holding com pany in your situation might need. We put together a credit especially m ade for a holding com pany of just your size, in your state and in your circum stances. W ith just the com bination of term s your individual situation calls for. And w ith any necessary regulatory m odifications, evaluation analyses and even negotiation assistan ce you might require. At C ontinental Bank your credit req u ests don’t go from com m ittee to com m ittee to com m ittee. They go to your account m an ag er—one officer who has the authority to say “y es” or “no” on most loans. So you get your decision fa s t—direct from the person who m ade it. Call Hollis R adem acher at (312) 828-6506 about your holding com pany financing. W h eth er your needs are extraordinary or routine, the credit w e work out will fit your com pany just right. We’ll find a way. CONTINENTAL BANK 231 SOUTH LASALLE STREET, CHICAGO, IL 60693 C on tin en tal Illinois N ational Bank and Trust C om pany of Chicago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 44 Says Energy Policies Are Disappointing W HILE the C arter ad m in istra tio n ’s energy proposals are enc o u ra g in g b e c a u s e of t h e i r focus on conser vation and selfsufficiency, they a r e a ls o " p r o fo u n d ly d is a p p o in tin g ” for t h e i r la c k of em phasis on p ri v a te - s e c to r in volvement, John J - F- M cGILLICUDDY F. McGillicuddy, chairm an, M anu facturers H anover Corporation, New York, said in D allas recently. In rem arks a t Southern M ethodist U niversity’s Edwin L. Cox School of Business, Mr. McGillicuddy said, "I am encouraged th a t at long last the issue of energy and our n a tio n a l ad d ic tio n to w aste an d over-consu m p tio n is fin a lly receiv in g th e priority a tten tio n it deserves.” He questioned, however, w hether poli tic a l expediency w as b e h in d th e P resident’s decision to leave the p ri vate sector out of his plans for the FORBES Quality Pocket Yearbooks! Vinyl Plastic Slip-on Cover in Suede or Kid Grain 19 Colors • • • • • Quality Manufacturing Attractive Materials Highest Quality Stamping Low Prices Money Back Guarantee FACTORY-TOYOU SAVINGS Write on letterhead for sample P R O D U C T S C O R P O R A T IO N P.0. Box 2321 0 - Rochestei, N.Y. 14692 Faetones: Tryon, N.C. & Rochestei, N.Y. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis moment. "Perhaps we will be less dis appointed when the specifics are re vealed,” he added. In addition, Mr. McGillicuddy said th a t although original forecasts of two per cent real GNP growth are much too optim istic, "We are not in for a sudden or deep decline in econo mic a c tiv ity .” He added th a t th e slowing of the economy "is a neces sary but probably not sufficient step in bringing inflation under control,” and he predicted th a t the prim e rate would be around 11 per cent by yearend, "perhaps easing to 9.5% by this tim e next y ear.” In addition comm ents on the econ omy, e n e rg y an d th e P r e s id e n t’s proposals, Mr. McGillicuddy said: • "However m uch we m ay wish it o th e rw ise a n d seek to place th e blam e on others, the plain fact is t h a t , in m uch of th e w orld, th e U n ite d S t a t e s is h e ld a s fu lly accountable for the present energy crisis as the OPEC countries which have been raising prices . . . W ithout the huge increases in U.S. oil im ports in the last few years, which have been much g reater th an declines in domestic production, OPEC could not have held to recent price levels much less continued to increase. The de m and simply would not have been there. More specifically, oil im ports in the U nited S tates are up close to 30% since 1973, while, in Italy, im ports of foreign crude oil and pro ducts are down 15%; in France, down 13%; in G erm any, down 7%; and in Jap an , down 4%. Moreover, in the past four years, J a p a n has registered a 20% increase in its gross national product. This severing of the link be tween economic growth and oil con su m p tio n su g g ests t h a t economic progress need not be sacrificed to con servation. • The economic drag associated w ith a shift in resources (to OPEC) cannot be easily offset. Money borrowed to pay OPEC is money th a t cannot be borrow ed to finance economic de velopm ent. F u rth e r, p a y m e n ts to OPEC are sterile, w hereas a project financing can create a source of its own repaym ent. Nor can consump tion be cut beyond a certain point in m any countries w ithout fu rth er re ductions in GNP — although clearly the U.S. has far more room for con servation th a n most countries. There is a n o th e r w ay of looking a t th e potential im pact of oil prices. The U nited S tates each year m ust pay for foreign oil alone m ore th a n twice w hat it spent over a ten year period to put a m an on the moon. • Economic dislocations aside, con cern over the ability of m any coun tries, particularly the less developed, to raise funds for m eeting the new, higher oil prices has been overstated. Talk of a breakdow n in the in te rn a tional financial m echanism or the need for m assive in te rv en tio n s of official a g e n c ie s is e x a g g e ra te d . There will be strain s in some cases, bu t th e job can and will be done, much of it by the private banking system as in the 1973-74 period. • I am not convinced th a t the (crisis in confidence) is as deep as some would have us believe. M any A m er icans seem w illing to sacrifice for the natio n al good once challenges are a rtic u la te d c le a rly and e q u ita b le program s have been set forth. I dis agree w ith those who say we face 'not a lack of leadership but a lack of followship’.” CORPORATE N EW S . . . (Continued from page 16) Oak, la., and received his BBA de gree from the U niversity of Iowa. Mr. A sher will work out of the Peoria office and have responsibility for accounts in th a t area. Before join ing Diebold, he was a regional m an a ger in in tern atio n al sales w ith Shure Brothers, Inc., Evanston. A native of Peoria, Mr. A sher received his BS de gree in m arketing a t Bradley U ni versity there and a BS degree in in te r n a ti o n a l m a n a g e m e n t a t th e T A m erican School of In te rn a tio n a l M anagem ent in Phoenix, Ariz. L e a se N o rth w e s t, In c., M in n e ap o lis: Joan P. G runerud has been a p p o in te d le a s ing ta x officer. S he s e rv e d as le a s e a d m in is tra to r from 1973f 78 a n d a s t a x accountant since November, 1978. Lease N orthw est is a subsidiary of N o rth w e s te rn J. P. GRUNERUD N a tio n a l B ank, th e la rg e st a ffiliate of N o rth w est Bancorporation, which owns m ajor ity stock in 85 affiliated banks in seven states. "W hen Security National gave us the details we approved the loan participation even before we tasted the pizza? MEMBER FDIC © Chase M anhattan Bank, N. A. 1979 Nothing moves faster than the fast food business. And when our correspondent, Security National Bank in Walnut Creek, California, was approached by a rapidly-expanding chain of pizza restaurants, they knew they had to commit to the loan without delay. But to meet their customer’s financing needs, Security National had to have a quickly-approved upstream participation. They contacted Chase correspondent banking Relationship Manager, Meg Sipperly. Meg wasted no time in gathering all the pertinent information. Within 48 hours, she was able to tell Security National that Chase would not only participate, but would assist in structuring the credit arrangement. And only a few days later, she was in California to close the loan —and have her first taste https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Margaret C. Sipperly, Relationship Manager, Correspondent Banking of one of the client’s pizza specialties, King A rthur’s Supreme. Nobody responds faster Fast, knowledgeable answers on loan participations is the way we do things at Today’s Chase. We know that our correspondents need that kind of response if they are to continue to serve their valued corporate customers effectively. And there’s nothing we like better than helping our correspondents develop, maintain and strengthen customer relationships. If you need a fast response on a loan participation, you can i| jj always count on your | | ______| Chase Relationship Manager. 46 MGIC Marketing Breaks New Ground A MORTGAGE m ark e tin g m ile stone was reached last m onth w hen M G IC M o rtg a g e M a r k etin g C orpora t i o n ( M a g g ie Mae) sold a $50 m illion package of single-fam ily home m ortgages to a m ajor life ins u ra n c e com pany. The tra n s L. T. K EN D ALL a c tio n m a r k e d the first private sale to a single inves tor of a security backed by m ortgages pooled from a broad range of lending institutions. Maggie Mae combined individual hom e lo an s a sse m b le d by MGIC Secondary M arket Services from 35 lending in stitutions in 24 states for the package. P a rtic ip a tin g lenders included savings and loan associa tions, commercial banks, and m ort gage banks. Maggie Mae and MGIC are sub sidiaries of MGIC Investm ent Cor poration, all headquartered in M il waukee, Wis. MGIC is the n atio n ’s oldest and largest private insurer of c o n v e n tio n a l low d o w n p a y m e n t m ortgages, w ith over $38.5 billion of insurance in force. A ccording to Leon T. K en d all, president of M aggie Mae, the sale "breaks new ground, enabling m ort gage originators of all sizes to tap non-traditional sources of m ortgage funds.” The pool contained com m it m ents from lenders ranging from $1 m illion to $5.5 m illion, with no in d iv id u a l m o rtg a g e l a r g e r t h a n $150,000. A bout o n e -th ird of the m ortgages in the pool have 90% loanto-value ratio s and tw o-thirds are 80% loan-to-value. Loans will be de livered to Maggie Mae in Septem ber and October. M r. K e n d a ll p o in te d o u t t h a t M aggie M ae s e c u ritie s w ill help lending in stitutions find new sources of m ortgage funds. "U ntil th is sale,” Mr. K endall stated, "only very large lenders could tap the natio n ’s capital m arkets for funds through m ortgagerelated securities. B ut the Maggie Mae concept of pooling m ortgages m akes this source of funds available to lenders of all sizes.” Mr. Kendall said the sale also is "a pioneering effort for investors. In vestors can now obtain from a single Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis source the safety and spread of risk of a geographically diversified m o rt gage portfolio. And they can do it at current m ortgage rates. In addition to high yield and diversification, a Maggie Mae security is an efficient and secure investm ent for in stitu tions th a t have not trad itionally in vested in m ortgages.” The Maggie Mae pool is insured for 5% of the total issue. In addition, spe cial hazard insurance covers risks such as flood and earth q u ak e for up to 1% of the pool. All loans over 90% loan-to-value carry p rim ary m o rt gage insurance. Finally, Maggie Mae guarantees the servicing of the loans, and its c a p ital base supports the issue. As a resu lt of the strong in su r ance and capital backing, it is ex pected th a t S tandard & Poor’s will rate the issue AA. -■ Maggie Mae was established e a r lier th is y e a r to help expand th e m arket for locally-originated home loans to m ajor in stitu tio n al investors and non-traditional buyers of m ort gages. Maggie Mae accepts packages of loans as sm all as $1 m illion from selected o riginators and pools the loans into a single, sizable offering to investors. Prior to the first M aggie Mae issue, c o n v e n tio n a l m o rtg a g e p a s s throughs were backed by m ortgages originated by single large lending in- New Sign The M ou ntain Grove N ational Bank of M ountain Grove, M o., has in sta lle d a new, so lid state, tim e and tem perature d isp la y at its d o w n to w n lo ca tio n . The d isp la y, w h ich is located on the corner, has fo u r-w a y v is ib ility and was m anufactured and in s ta lle d by D aktronics, Inc. of B ro o kin g s, S.D. Both F ahrenheit and C e ls iu s re a d in g s are fe a tu re d and create a fin e p u b lic service by the bank in th is southern M isso u ri c o m m u n ity of 4,000 people. stitutions. In Septem ber, 1977, B ank of A m erica issued th e first public m o rtg a g e -b a c k e d p a s s - th r o u g h , which was insured by MGIC. Fed Tables Action on International Facility The Federal Reserve Board has decided to table, a t least until yearend, consideration of a controvers ial International B anking F acility in New York City th a t would m ake it cheaper for m ultinational banks to c o n d u c t fo reig n tr a n s a c tio n s w ithin the U.S. Because of legal qu estio n s and com petitive issues, the Fed s ta ff J u ly 16 rec o m m e n d e d t h a t th e Board take no action a t this tim e on a proposal by th e New York Clearing House to allow banks to establish facilities which could ac cept deposits from foreign custom ers th a t would have no reserve re quirem ents or interest-rate lim ita tions. One of the m ajor legal questions is is w hether the Fed has the s ta tu tory au th o rity to g ran t exem ptions from the reserve requirem ents and interest-rate ceilings to these pro posed facilities. The m ajor com peti tiv e issu e is how b an k s o u tsid e New York City could compete w ith the money center banks because of M cFadden A ct restrictio n s which p ro h ib it b ra n c h in g a c ro s s s ta t e lines. W hile th e B oard ac ce p ted th e s ta f f s proposal, it also accepted a s u g g e s tio n by G o v e rn o r H e n ry W allich th a t the Board and sta ff continue studying the issues to find a solution which would perm it de velopm ent of IB F s to go forward. He also noted th a t concurrent dis cussions about in stitu tin g reserve requirem ents on E urodollar depo sits and consideration of Fed mem bership leg islatio n (HR 7) and a stu d y of the M cFadden A ct restric tions will help clarify some of the questions surrounding IB Fs. “ W hat would concern me is to drop this here and have no sense of activity or m ovem ent on it a t all,” Mr. W allich said. The Board asked the staff to pre pare a report w ithin five m onths on d ev elo p m en ts a ffe c tin g th e IB F pro p o sal. The M cF adden S tu d y , headed by Treasury, is due to be sent to Congress in Septem ber, and Fed m em bership legislation (HR 7) is pending in Congress. The Northern Trust would like to introduce you to The Fast Buck. O ur Cash L etter Service is de signed to tu rn your checks into money quickly. We have a checkclearing netw ork th a t spans the country, w ith im m ediate avail ability on all major money m arkets. B ut speed alone isn’t all you should expect in check collection. You need the processing of your checks to be as error-free as possible. T hat is where our people and our com puter system s shine the brightest. At The N orthern Trust, we set very high performance standards for the services we provide to our correspondents. We’re dem anding on ourselves. B ut the results are w orth it. An independent analysis of check collection system s bears this out. The analysis was based on https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis these measures: reject rates; tra n sit returns; free and lost items; m issent, miscoding and listing errors; and tra n s it hold overs. In every category, The N orthern Trust performed better th an the average for the other Chicago banks included in the survey. W hen you try our Cash L etter Service, we can analyze your check collection operation and m onitor the effects of your tran sp o rtatio n arrangem ents to identify your needs. So, give our Cash L etter Service a trial. It m ay be the proven-quality answ er to all your check clearing problems. For more inform ation on how our service can benefit you, contact Glenn W. Proud, Jr., Financial Services Officer, Bank and Corporate Services Division, The N orthern Trust, 50 South La Salle Street, Chicago, Illinois 60675. Telephone (312) 630-6000. Aren’t you ready for The Northern? The Northern Trust 48 Women Bank Managers Increase Fourfold T HE n um ber of wom en in offi cial and m anagerial positions in F u ll Service b a n k s n e a rly q u a d rupled in th is decade according to statistics filed w ith the federal gov ernm ent and released by the A m er ican B ankers Association. The figures from EEO-1 forms sub m itted by the 50 largest banks in the country also show th a t during the same tim e period the percentage of all official and m anagerial positions held by women more th a n doubled. At the tim e the forms were subm it ted in 1970, 7,650 women held 14.9% of the category designated "officials and m anagers.” By 1975 some 19,211 women had earned a 26% share of th a t category, and the m ost recent 1978 f ig u r e s show t h a t 2 8 ,9 8 7 women, or 32.9% of the total, are now included in the ranks. "Officials and M anagers” is the top job category established by EEOC and the U.S. D epartm ent of Labor for equal em ploym ent opportunity re porting. It covers "ad m in istra tiv e personnel who set broad policies, ex ercise overall responsibility for ex ecution of those policies, and direct in d iv id u al d e p a rtm e n ts or special phases of a firm ’s operations.” The classification includes officials, ex ecutives, m iddle m anagem ent per sonnel, departm ent m anagers, and salaried supervisors who are m em bers of m anagem ent. In announcing th e new figures, A.O. Strom quist, chairm an of the ABA B a n k P e r s o n n e l D iv isio n , pointed out th a t while the percen tage of fem ales holding official and m anagerial job titles was increasing, the total num ber of positions w ithin th a t category also was increasing. "In 1970,” said Mr. S trom quist, who is also senior vice president w ith the U.S. N ational B ank of Oregon in Portland, "there were 51,358 b an k ers w ithin the general category of 'officials and m anagers.’ By 1975 the num ber of persons in th a t category had jum ped to 73,876 and by 1978 it had reached 88,000.” "This is im portant to note,” said Mr. Strom quist, "in assessing the gains women have m ade as a percen tage of the total official/m anagerial slots in existence. M erely in order to hold on to th eir 1970 14.9 percentage share, the total num ber of women in those positions would have had to in crease. The fact th a t they more th an Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis dou b led th e ir s h a re — to 32.9% — w h ile th e c a te g o ry i ts e lf i n creased by tw o-thirds is certain ly significant.” The statistics compiled by the ABA also show th a t the num ber of "profes sional” positions in banks held by women more th a n tripled from 19701978. EEOC and Labor define this category as consisting of "occupa tions requiring eith er college grad uation or experience of such kind and am ount as to provide a comparable back g ro u n d .” It includes account a n ts and auditors, law yers, lib ra r ians, m athem aticians, and personnel and labor relations workers. In 1970, out of a banking industry total of 13,073 "professional” posi tions, women held 3,246, or 24.8%. By 1978 the total num ber of "profes s io n a l" p o sitio n s h ad ju m p e d to 27,865 an d w om en w ere h o lding 11,481, or 41.2%. M in o rity p e rs o n n e l a lso h a v e m ade significant gains in the upper levels of banking. The statistics show there are currently some 10,898 offi c ia l/m a n a g e ria l positions held by m inority employees, while in 1970 there were only 2,577. And, they now hold 4,395 professional positions as opposed to 883 at the beginning of the decade. For m inority women, the jum p is even more im pressive — from 717 "officials and m anagers” in 1970 to 5,135 in 1978, and from 251 "profes sionals” in 1970 to 2,040 today. These f ig u r e s in c lu d e b la c k s , A s ia n s , Am erican Indians and Hispanics. Mr. S trom quist said th a t he ex pects the trends begun in this decade to continue. "As w ith all employers m eeting the definition of a 'govern m ent contractor,’ ” he noted, "banks w ith 50 or more employees (approxi m ately 5,000 ABA mem bers) update t h e i r w r itte n a ffirm a tiv e a c tio n program s each year. These include goals and tim etables for upw ard mo bility as well as employm ent, in addi tion to other specific com m itm ents tailored to the individual ch aracter istics of t h a t p a rtic u la r fin an cial in stitu tio n .” ABA “ Banking Advisor” Program has 23 Speakers Following up on national surveys in which consum ers express contin ued confidence in their individual L. W. PETERSON N. M. DEAN bankers, the Am erican B ankers A ssociation has initiated a m ajor national program designed to in crease public understanding of banking. The cornerstone of the program , which begins this m onth, will be a series of m edia and speaking tours by 23 banking executives discus sing personal money m anagem ent, banking services and a broad range of economic banking issues. Known as the “ B anking A dvisor” pro gram , the particip an ts will brief local new s m ed ia , m ak e p u b lic appearances before consumer groups, appear on television and participate on radio news and talk shows. These tra v e lin g b a n k e rs , m an y of th e m presidents of their own banks, will be prepared to discuss questions about b a n k in g , su ch as b a n k p r o fits , interest rates and who controls them , protection of privacy, credit avail ability, m ortgages and loans. To avoid the appearance of self promotion, the bankers will not make a p p e a ra n c e s in th e m a rk e t a re a s served by their own banks. Four of th e 23 b a n k e rs are from u p p e r m idwest and m ountain states. They are: J o h n C h r y s ta l, p r e s id e n t, Io w a Savings Bank, Coon Rapids, and Oliver H ansen, president, L iberty T ru st and Savings Bank, D urant, both from Iowa. N orm an M. Dean, president, U nited B ank of Greeley, Greeley, Colo. Leslie W. Peterson, president, Farm ers S ta te Bank, Trim ont, Minn. 49 Scarborough and Com pany... HAS SOME GREAT NEWS FOR RANKERS r We have designed a new Property and Casualty program that can pay participating banks a CASH DIVIDEND. As a group, banks are superior property and casualty insurance risks, producing consistently ex cellent loss ratios. But, you probably haven’t been able to take full advantage of your good experience. Now Scarborough and Com pany has done something about it. W e’re proud to announce Scarborough’s Bankers Business Guard Insurance Plan — a custom-designed program to help you meet your property and casualty insurance needs. Scarborough’s Bankers Business G uard Insurance Plan is an easy-toadminister specialized insurance program that offers com prehensive, yet flexible, coverage from a stable source and at com petitive rates. Most important, though, Scarborough’s Bankers Business Guard Insurance Plan can give participating banks the chance to get something in return for their good per formance. The plan allows participants in the group to receive possible CASH D IV IDENDS based upon group performance. W rite or call us. Let us show you that when it com es to insurance for banks, Scarb o ro u gh does it all— and does it better. amd i ■ i i| ■ 222 N. Dearborn Street, Chicago, Illinois 60601 (312) 346-6060 Please send m e m o re in fo r m a tio n o n S c a rb o ro u g h 's B ankers Business G ua rd p ro g ra m . I I ■ A ddress d ■ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the bank insurance people Cititv___ -State. Northwestern Banker, September 1979 50 Report Says Most States Are Good Credit Prospects Most states, w hether in the su n b e lt or th e fro stb elt, have e ith e r stable or im proving credit prospects, according to a C ontinental B ank of Chicago study of sta te credits re leased A ugust 2. Prepared by the b a n k ’s m unicipal research division, th e study analyzes credit standings and prospects of 39 sta te s w hich have g e n e ra l o b lig a tio n ta x s u p p o rte d d e b t outstanding. " T h e s tu d y showed th a t the s te re o ty p e s de p ic tin g w a n in g D. G. TAYLOR e c o n o m ic a n d credit prospects of frostbelt states and unbounded economic prosperity in sunbelt states are based on m is conceptions which tend to g reatly overstate the shifting credit fortunes of th e s e re g io n s ,” sa id D avid G. Taylor, executive vice president and h e a d of C o n tin e n ta l’s bond a n d money m ark et services departm ent. "Most states have recovered from the severe fiscal rigors of the last reces sion and have built surpluses which leave them well situ a te d to w ith s ta n d th e effects of an econom ic dow nturn.” However, Mr. Taylor added, there are a few states, p rim arily in the E ast, which are highly vulnerable to the negative effects of a dow nturn and would very likely suffer m aterial credit d eterio ratio n if the c u rre n t economic slowdown becomes more pronounced. "Such states m ust carefully m an age both th eir economic and finan cial resources to assure long-term fis cal viability,” he said. The state credit guide, which is an update of a report prepared by C ontinental in 1976, is designed to a id in v esto rs in m a k in g re la tiv e credit judgm ents about state general o b lig a tio n bonds, said Gordon E. McDanold, vice president and head of the b an k ’s public finance group. Individual reports on each state describe specific positive and nega tive credit factors th a t combine to support the credit opinion stated, he sa id . " In a d d itio n , c o m p a ra tiv e tables provide insights into a p a r tic u la r s ta te ’s sta n d in g w ith in its ratin g classification.” Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A new feature of th is second edi tion is a norm alized scoring system th a t provides an objective m easure of a broad range of financial data. "This scoring system tends to reveal those states a t the extrem es of a particu lar M oody’s In v e sto rs Service ra tin g category,” Mr. McDanold explained. In 1978, C ontinental B ank ranked th ird among all dealer banks in m an aging u n d e rw ritin g s of m unicipal securities. The bank m anaged 215 u n d e rw ritin g syndicates on issues am ounting to a to tal p ar value of $785.3 m illion. In ad d itio n , Con tin en tal B ank finished first in the first q u a rte r of 1979 in m anaging g e n e ra l o b lig a tio n u n d e rw ritin g s a n d seco n d in c o m p e titiv e s a le underw ritings. Sells Finance Subsidiary M ercantile B ancorporation Inc.? St. Louis, announces it has reached a g re e m e n t to sell th e re c e iv a b le s of its w h o lly-ow ned s u b s id ia ry , Franklin Finance Company, to A s s o c ia te s F in a n c ia l S e rv ic e s C om pany, Inc., Dallas, Tex. Term s of the sale were not re vealed. I t is anticipated th a t the transaction will be completed this m onth. Franklin Finance was acquired by M ercantile in 1974. I t is headquar tered in Clayton, M issouri, a sub urb of St. Louis and presently has 39 offices in nine sta te s w ith re ceivables outstan d in g in excess of $58,000,000. A s s o c ia te s F in a n c ia l S e rv ic e s C om pany is a w holly -o w n ed s u b sidiary of Gulf + W estern In d u s tries, Inc., New York. Walter Heller Reports Second Quarter Record W a lte r E. H e lle r In te rn a tio n a l Corporation, Chicago, reported rec o rd e a r n in g s from its w orld w id e f in a n c ia l services for the second q u a r t e r | and firs t h a lf ^ ended J u n e 30, f 1979, w ith both f in a n c e o p e r a tions and b an k ing p o sting allF .A . COLE tim e highs. Re cord levels also were achieved in both periods in em ploym ent of funds by finance u n its and average loans and deposits at the Am erican N ational B ank subsidiary. F ra n k lin A. Cole, chairm an and president of th e financial services firm, said th a t for the second q uarter, net income rose 17.0% to $10.2 m il lion from $8.7 m illion in the 1978 qu arter. A fter preferred dividends, per share earnings were 86 cents, up 16.2% from 74 cents a year ago (83 cents fully diluted, up 13.7% from 73 cents in 1978). For the first six m onths, Mr. Cole said net income was $18.8 m illion, up 16.9% from $16.1 m illion in 1978. E a rn in g s per common sh are a fter preferred dividends w ere $1.59, a gain of 16.1% from $1.37 in the same period last year ($1.55 fully diluted, up 15.7% from $1.34 in 1978). T here w ere 11,658,523 av erage com m on a n d com m on e q u iv a le n t shares outstanding during the first six m onths versus 11,531,471 aver age shares in 1978. * Mr. Cole d e ta ile d 1979 second q u arter earnings as follows: From finance (com m ercial finance and factoring provided by W alter E. H eller & Com pany and W alter E. H eller O verseas Corporation), an alltim e high of $7.7 m illion, up 10.4% from $7.0 m illion last year. Deposits were up 10.5% to $1.6 billion and loans stood a t $912 m illion, up from $800 m illion a year earlier. From banking (Am erican N ation al B ank and T rust Company of Chi cago), a record $5.0 million, up 30.2% from last year’s $3.8 million. (Figures are before holding com pany expense of $2.5 m illion in the second q u a rte r of 1979, consisting largely of in te rest on p a re n t com pany debt, and com paring w ith $2.1 m illion in th e second period la s t year.) Mr. Cole said th a t finance e a rn ings grew to record levels as the re sult of a 14.3% increase in average net funds employed by finance units, combined w ith an 8.1% increase in spread percentage and a 25.3% in tr crease in volum e of invoices p u r chased by factoring units. The A m erican N a tio n a l B a n k ’s record second q u a rte r earnings were affected favorably by a 24% rise in net interest income which resulted from higher in terest rates and a 14% increase in average loans. Also con trib u tin g to the increase were strong new bu sin ess g ains in the b a n k ’s p rim a ry com m ercial m a rk e ts and favorable p rofit im p ro v em en ts in non-interest income. 51 AMERICAN EXPRESS LEFT ONE THING OUTOF THER TRAVELERS CHECKS COMMERCIALS... THE FACTS. 1 2 FACT : A ll major travelers 3 ■ checks provide refunds. And no check can give faster, safer, friendlier refunds than First National City. All over the world First National City Travelers Checks provide pre-authorized refund 4 service. FACT: First National City ■ Travelers Checks can also give travelers a refund in an emergency, with their ’ Round-the-Clock Refund Service,SM24 hours a day, 7 days a week, 365 days a year, all across the conti nental United States. (Just call 800-221-2566; in New York State call 212-559-6308 collect.) FACT: Other major brands 5 ■ of travelers checks are ac cepted all over the world. First National City Travelers Checks are spendable in more than 150 countries around the world. FACT: First National City ■ Travelers Checks are backed by Citicorp, one of the world’s largest financial institutions. That means w e’re known, and re spected, around the world. FACT: Other major brands ■ of travelers checks are sold at thousands of locations here and abroad. First National City Travelers Checks are sold in more than 45,000 locations inter nationally-including more than 20,000 banking loca tions right here in the United States. That says something about how highly w e’re thought of in the financial community. FACT: First National City ■ Travelers Checks have been helping travelers enjoy their trips for over 75 years. A travelers check doesn’t last that long by giving anything less than the best service. FIRST NATIONALCITY TRAVELERS CHECKS SAFE,SPENDABLE, REFUNDABLE--AR0UND THE WORLD. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 52 Private Mortgage Firms Surpass FHA F OR the first tim e ever, m ortgage insurance on homes for one to four families provided by the private m ortgage insurance industry exceed ed t h a t of th e F e d e ra l H o u sin g A dm inistration, according to esti m ates of the M ortgage Insurance Companies of America, W ashington, D.C. Members of M ICA, the industry trade organization, write virtually all of the private sector insurance in the U nited States. J o h n C. W illia m so n , M IC A executive vice president, said th a t final figures would have to await FH A statistics to be released early in October. “ However, we are sure,” he said, “ th a t by processing 69% more unit volume th an the FH A during the second calendar quarter the private s e c to r m oved in to f ir s t place in insurance in force.” Figures a t M arch 31, 1979, showed the FH A had insurance in force of $85.5 billion vs. $84.2 billion for the p r iv a te s e c to r. “ W ith o u r second quarter su rg e,” Mr. W illiamson said, “ we u n d o u b te d ly m ad e up th is relatively small FH A lead.” By insuring the top 20 or 25 % of a conventional m ortgage, m ortgage insurance companies enable lenders to make loans to home seekers with as little as a 5% down paym ent, an im portant factor for m any would-be purchasers w ith a steady income bu t w ith little a c c u m u la te d s a v in g s ,” Mr. W illiamson said. M ICA members are also playing a m ajor role in insuring m ortgage pools a g a in s t w hich s a v in g s an d loan a s s o c ia tio n s issu e s e c u ritie s , he added. A t present 13 m ortgage insurance c o m p a n ies a re in b u s in e s s a n d c h a rte re d by a t le a s t one s ta te . Several companies are engaged in insuring residential m ortgages on a national scale. All of these companies have been approved by the Federal Home Loan M ortgage Corporation and the Federal N ational M ortgage Association as qualified insurers of m ortgages eligible for purchase from le n d e rs in th e se c o n d a ry m a rk e ts operated by these two corporations. Through such purchases of m o rt g ag es on th e s tr e n g th of p r iv a te sector m ortgage insurance, FHLM C and FNM A replenish the funds of local savings and loan associations, com m ercial b a n k s a n d s a v in g s Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis b a n k s , e n a b lin g th e m to m ake additional loans to home buyers. M ICA mem ber companies include: American M ortgage Insurance Co., Commercial Credit M ortgage In su r ance Co., Commonwealth M ortgage Insurance Co., Forem ost G uaranty C o rp ., H om e G u a r a n ty In s u ra n c e Corp., Integon M ortgage G uaranty C o r p ., M o rtg a g e G u a r a n ty I n s u r ance Corp. (MGIC), PM I M ortgage Insurance Co., Republic M ortgage I n s u ra n c e C o., T ico r M o rtg a g e I n s u ra n c e C o., T ig e r In v e s to rs M o rtg a g e In s u ra n c e C o., U n ite d G uaranty Corp. and Verex A ssu r ance, Inc. Deluxe Sales, Earnings Up Eugene R. Olson, president of De luxe Check P rin ters, Inc., St. Paul, M inn., reported th a t sales for the first six m onths of 1979 reached $172,760,213, up 1 3 .8 % f ro m $ 1 51,773,070 a year ago. D u rin g th e same period, net e a r n i n g s w e re $16,885,620, or E- R- 0LS0N $1.47 per share, up 10.2% from last y e a r ’s $ 1 5 ,320,752, or $1.33 per share. M r. O lson sa id second q u a rte r sales an d e a rn in g s w ere affected favorably by the M arch 1 price in crease which resulted in a net effect on sales of approxim ately 5%. Second q u a rte r sales were $89,194,384, up 12.8% from $79,054,246 a year e a r lier. N et earnings in the second q u a r ter were $9,492,216, or 82(2 per share, compared to $8,693,153, or 76(2 per share. Chase Manhattan W ill Buy 120 Diebold ATMs Officials of The Chase M anhattan Bank of New York and Diebold, Inc. recently signed a contract for delivery of more th an 120 Diebold TABS® Total A utom atic Banking System s. R a y m o n d K o o n tz , p re s id e n t of Diebold, said it’s the largest single order received by his firm for its autom atic teller machines. The Chase M anhattan autom atic banking netw ork will be the largest in New Y ork C ity e x c e p t for tw in machines in more than 200 Citibank branches in and around the city. The Citibank tellers were constructed by D iebold a c c o rd in g to C itib a n k specifications. Earlier this year, Bemk of America in S a n F ra n c isc o la u n c h e d its autom atic banking program w ith a p re lim in a ry o rd e r of 40 D ieb o ld T A B S s y s te m s . In J u ly , F ir s t N ational B ank of Arizona sim ultane ously activated 45 on-line Diebold TABS system s in w hat is believed to be th e la r g e s t a u to m a tic b a n k in g netw ork to become operational a t one time. Fed Sets Rules for Credit Card Loss Reporting U n d e r an a m e n d m e n t e ffe c tiv e A ugust 31 by the Federal Reserve Board, w ritten notice of loss or th eft of an electronic funds transfer access device is effective when the consum er m ails the notice, rath er th an when the bank receives the notice. The am endm ent to Regula tion E essentially lim its a con sum er’s liability for a lost or stolen access card to $50. The rule sets consum er liability lim its a t $50 if notice is given w ithin two business days after learning of the loss. A lthough bankers protested the am endm ent, com plaining th a t it left the consum er too much discre tion to say when he learned of the loss, the Fed sta te d it adopted the new am endm ent to encourage bankers to prom ote the use of the telephone as the prim ary m eans of notification of a lost E F T access card. ■ SERVICES For your customers For your employees tat* PROFIT 3,000,000 AMERICANS ana 1,600 b a n clu b Member BANKS can't be wrong. Ask them! in fact, many of our banclub bankers will be at the conven tions in New Orleans — and we will too. bma , September 23-26 Booths 126-127. a ba , October 6-10 Booths 1113-1114. Administered by: Financial Institution Services, Inc, For more Information, write or call us now, toll free. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 725 Melpark Drive Nashville, Tennessee 37204 His banker has to make decisions almost 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. T h a t’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. W hen you bring us a sound deal with all the necessary information, w ell make a decision fast. W ithout a lot of paper-shuffling. Because w e’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. T he bank for business. r Illinois 55 Sangamon State University. Before joining the AMBI staff, Mr. Carpenter served in various manage ment positions with several major Chicago area retailers. As an intern on the AMBI staff for the last 12 m onths, he has worked as a legislative assistant. G. W eir, pres., C hicago W. J . H octer, exec, v .p ., Chicago Named at Skokie Bank 24-Hour Banking Arrives to Douglas A. MacNiff, president. Mr. Hill began his banking career Customers of many of the banks as a teller in 1976 with Suburban throughout the Metro area will soon be able to withdraw cash 24 Bank of Hoffman-Schaumberg, an hours a day and seven days a week other Suburban Bank Group mem i. through newly-installed automatic ber. Previously he attended Harper College where he majored in banking teller machines. While banking customers in other and finance. states have enjoyed the accessibil ity and convenience of these auto matic tellers, the stricter laws and Joins El Paso Bank Staff regulations governing Illinois Fi Allen C. Drake has joined the nancial institutions have, until now, Woodford County Bank, El Paso, as precluded their usage in this area, an assistant vice president. He will according to Allan P. Schuster, work primarily in the instalment loan president of First Data Services in area. Naperville. Most recently he was employed by Each bank involved in the pro Collins Radio Company in Cedar gram would have an automatic tell Rapids, Iowa. He received a masters er machine on its premises, either degree in electrical engineering from in the entrance foyer or installed in the University of Illinois. Mr. Drake an outer wall, or another location worked part-time for the Woodford such as a grocery store. County Bank while in high school and The bank’s machine would be also was associated with a Blooming connected to a central ATM net ton bank. work through First Data Services. In addition to the convenience of the 24-hour banking, customers of participating banks would be able AMBI Names Head For to obtain cash withdrawals from Membership Services other participating banks through James B. Watt, president of the out the State of Illinois. Association for Modern Banking in “From the bank management’s Illinois, Spring* standpoint,’’ Mr. Schuster said, field, has an “First Data Services’ capabilities nounced the ap provide virtually the only ‘instan p o i n t m e n t of taneous conversion’ available with John A. Carpen in this area.” ter as manager of By using the same type of com- the AMBI mem * puter equipment and by virtue of bership services the existing interconnections, any department. The bank wishing to institute this valu new staff p osi able customer service would be “on t i o n i n c l u d e s line” as soon as the machines could working to develA- CARPENTER be installed at the bank’s location. op association programs, counseling members on legislative/government action and providing a field liason to the association membership. Promoted at Schaumberg Mr. Carpenter received his under M atthew M. Hill has been graduate degree from Loyola Univer promoted from assistant cashier to sity of Chicago, and recently cashier of Suburban National Bank of completed the graduate program as a Woodfield, Schaumberg, according private sector legislative intern with https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L a u retta M undt, who has been em ployed a t the F irst N ational B ank of S k o k ie s in c e 1968, m o st r e cently as a cus to m e r s e rv ic e officer, has been appointed to the positio n of p e r s o n a l b a n k in g officer. Mrs. M undt is a m anagem ent g r a d u a t e fro m the U niversity of Dayton and has an MBA degree from Loyola U niversity. Receives Thesis Honors Richard S. Peterson has earned th esis honors from the Stonier Graduate School of Banking. Mr. Peterson, vice president and cashier of First National Bank and Trust Company of Rockford, recently graduated from the Stonier Gradu ate School of Banking at the State University of New Jersey, Rutgers. H is th esis, “ Some Eff ec ti ve Methods of Deterring Check Swind les, Frauds and Confidence Games,” is one of 19 of the total 292 theses/ research projects selected to be cir culated in the permanent collections of three libraries located at the ABA ’s headquarters, Rutgers Uni versity and at the Harvard Univer sity Graduate School of Business Administration. Promoted at Sterling Bank Gary A. Roth has been promoted to auditor of the First National Bank of Sterling. He joined the bank in 1976 as staff accountant, serving in that capacity until his recent appointment. Palatine National Bank Selects New Officers Palatine National Bank has selec ted two new officers, according to W illis A. G lassgow , president. Northwestern Banker, September 1979 56 Illinois N ew s Bruce S. Pessin joins the bank as a senior loan officer, and L arry A. Boward as an instalm ent loan offi cer. Mr. Pessin joins the bank w ith five y e a rs e x p erien ce as b ra n c h m anager for C redithrift of America, Inc. He graduated from the Univer sity of Illinois w ith a BS degree in finance. Mr. Bow ard spent a year as as s is ta n t m an a g e r w ith B eneficial L oan in S t. P aul, M inn., before coming to P alatine N ational Bank. He g rad u a ted from C arleton Col lege, Northfield, Minn., w ith a BA degree in 1976. Joins Suburban Bank troller for a subsidiary of a large Chicago area bank. Prior to th a t he serv ed w ith B e v e rly B ancorporatio n in Chicago. He has an ac counting degree from N orthern Il linois U niversity. Ms. Rosellini joined the bank in 1976 as a universal teller. She had previously served in a sim ilar capa city for a large loop bank. M rs. Latocha joined the bank in 1972 and was nam ed a ssista n t su pervisor of bookkeeping in 1973. She was app o in ted su pervisor of bookkeeping in 1976. Mr. Ciebien joined Pioneer B ank in 1966 as a commercial teller. He has served as m ortgage teller and as a new accounts representative in the savings departm ent. Ms. M arasovich was a regional credit supervisor w ith the B ru n s wick Corporation-M acG regor Divi sion before recently joining Pioneer Bank. She also served in the in stal m ent loan departm ent of M ercan tile N ational Bank, Chicago. ** * L a rry J . R osin recen tly jo in ed S u b u rb a n B a n k of H o ffm a n Schaum burg as a loan officer, ac cording to Glen E. Short, president. M r. R o sin w as fo rm e rly w ith C o m m u n ity B a n k a n d T r u s t of H anover P ark where he was a m an agem ent trainee. He received a BA degree in m anagem ent and finance from In d ian a U n iv ersity , Bloom John A. Biordi recently joined ington. Commercial N ational B ank as an a ssista n t vice president in the com mercial loan departm ent. He has 25 years experience and has worked in the instalm ent loan, real e state loan and commercial loan areas of the fi nancial industry. Mr. Biordi has a degree in busi ness ad m in istratio n from G eneva C ollege in Beaver F a lls , P e n n ., where he m ajored in finance. appointed assistan t auditor at F irst S ta te B a n k . P rio r to jo in in g th e bank, she was employed at a private accounting firm. Donates to Children’s Fund A CONTRIBUTION of $2,686 was made recently by C o lon ia l Bank & T rust Co. to the Neediest C h ild re n ’s Fund. The d o n a tio n s was made up of proceeds from the bank’s 25th A nniversary Festival held in June. C. Paul Joh n so n , bank ch m n ., le ft, presents the check to C hicago radio p e rson ality W ally P h illip s . Emory Williams, chairm an and chief executive officer of the Sears Bank and T rust Company, has an- *** Dennis V oss, c h a irm a n of th e Parkw ay Bank & T ru st Company, C. BAILEY D. VAN GORDER A H arw o o d H e ig h ts , an d th e F ir s t S ta te B a n k of C h icag o , has nounced the promotion of Colette announced two promotions a t the Bailey and David Van Gorder to the banks. position of operations officer. Dane W. Wood has been named a s s i s ta n t loan officer of P a rk w a y *** > Bank. He joined the b an k ’s staff in Gavin Weir, chairm an of the Chi 1977. Anne Gene Fortman has been P IO N E E R B ank & T rust Co. has cago C ity B ank and T ru s t Com elected five new officers, accord pany, recently announced six pro ing to Rausey W. Mason, president. m o tio n s. T h ey are: Thomas W. Donald A. Roubitchek has been elec Brinnehl, a ssista n t vice president, operations; Daniel G. Carroll, a s ted controller, Sara Rosellini a ssist sista n t vice president, legal depart-+ ant cashier, Joyce A. Latocha a s ment; Sandra Gascoyne, secretary sistan t cashier and m anager of the to the board of directors; Arthur J. bookkeeping departm ent, and Henry Pedgrift, a s sis ta n t vice p resid e n t Ciebien and Donna J. Marasovich as and tru s t officer, tru s t departm ent; personal banking officers. James D. Thompson, a ssista n t vice Mr. R oubitchek joins th e b ank president, com m ercial lending deD. W . W OOD A. G. FORTM AN w ith four years experience as con Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 E v e r y b o d y n eed s a P e rso n a l B an ker. E v e n a ban ker. In the Illinois D epartm ent we try to p u t correspondent bank ing on a personal banking level. I t gives us a chance to know your needs and your goals. And it helps us help you. Cliff Michael serves people in W estern Illinois from Whiteside County down to Quincy. A rt Hippie is our m an for the area from W oodford County to the Indiana line, bounded on the north by DeKalb and Dixon. P at B arron covers Central Illinois from E a s t Peoria to W atseka and as far south as Charleston and Jacksonville. Brock H essing works w ith bankers in Bloom ington/ Normal, D ecatur, Springfield and the Quad Cities. And Ronalee Covington is re sponsible for d a ta processing services in all territories. We welcome the opportunity to help you. J u s t call our WATS number, (800) 322-2212. One of us can probably be at your bank the same day. Bankers helping bankers. We make it a personal thing. the H um an In terest bank Commercial National Bank of Peoria m e m b e r f .d .i .c . C O M M ERCIAL BAN KIN G DIVISION 301 S.W ADAMS • PEORIA, ILLINOIS 61631 PHONE: (309) 674-7781 Ronalee Covington https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Pat Barron Brock Hessing Dorothy Newlin (Secretary) Art Hippie Northwestern Banker, September 1979 58 Illinois N ew s p a r t m e n t , a n d E lb erta Smith, a s s is ta n t cashier, o p e ra tio n s de partm ent. Mr. Brinnehl joined the bank in 1963 as a teller tra in ee and has spent tim e in the real estate and consum er c red it d e p a rtm e n ts, as well as serving as m anager of the drive-in. He was nam ed assistan t cashier in 1970. M r. Carroll joined the bank in Jan u ary , 1978, as bank counsel, re sponsible for all a sp e c ts of legal and federal bank compliance. He re ceived a BS degree in finance from D e P a u l U n iv e rs ity in 1969 a n d graduated from D ePaul U niversity Law School in 1973 w ith a JD de gree. Ms. Gascoyne joined the bank in 1969 as secretary to the vice president of the commercial lending division. She presently serves as secretary to th e c h a irm a n of th e b o a rd a n d p re s id e n t in a d d itio n to b e in g secretary to the board. Mr. P edgrift joined the bank in the tru s t departm ent and was ap pointed tru s t officer in 1976. He re ceived a bachelors degree in ac counting from D ePaul U niversity in 1975 and is continuing his edu c a tio n in fin an ce a t G o v e rn o r’s S ta te U niversity. Mr. Thom pson joined the bank in 1972 as a credit an aly st and was la te r p rom oted to m an a g e r of th e credit departm ent. He was appoint ed a co m m ercial lo an officer in 1976. M s. S m ith jo in ed th e b an k in 1955 as a bookkeeper in the savings departm ent. She trained as a teller and later was prom oted to super visor in the savings area. H er new responsibilities will consist of super visory duties in the savings division as well as serving as a counter officer for th a t departm ent. *** Donald D. Ford h a s b een a p pointed vice president/loans a t Sea way N ational B ank of Chicago, one of th e n a tio n ’s la rg e st m inorityowned banks, it was announced by Richard K. Pearson, president. P rio r to jo in in g S eaw ay , M r. Ford served as vice president of the Com m unity B ank of Lawndale. He has also served in executive capa cities w ith the F irst N ational B ank of Chicago, Lake View T ru st and Savings B ank and th e A m erican Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AMBI Convention Looks to Future T H E F u tu re C h a lle n g e is th e them e selected for the 1979 a n nual m eeting of the A ssociation for M o d ern B a n k in g in Illin o is . T he convention is scheduled for Septem ber 19-20 a t the Continental Plaza Hotel in Chicago. Presiding a t the convention will be AM BI Chairm an W illiam E. Weigel, chief executive officer of the F irst N ational B ank & T ru st Company of Centralia. Vice p r e s id e n ts of A M B I are Richard M. Bishop, president, F irst G a le sb u rg N a tio n a l B a n k , G a le s burg, and William R. W andrey, J r., president, M idwest N ational Bank, Moline. Secretary the p a st year has been A. Andrew Boemi, chairm an and president, M adison Bank and T ru st C o., Chicago, and treasurer has been John E. B rubaker, executive vice president, F irst N ational Bank, Springfield. H eading up A M B I’s full-time staff in Springfield is Jam es B. W att, president. The program follows: 2:30 2:50 3:00 4:00 6:00 Wednesday, September 19 A.M. 11:00 12:00 P.M. 1:30 R egistration open. Opening Luncheon. Speaker—C. C. Hope, J r., p re s id e n t-e le c t, A m e ric an B a n k e rs A s s o c ia tio n ; vice chairm an, F irst Union N a tional Bank of N orth Carol ina, Charlotte. AM BI 1979 Business M eet ing. T reasurer’s R eport—Jo h n E. B ru b a k e r, e x e c u tiv e vice p r e s id e n t, F ir s t N a tio n a l Bank of Springfield. AM BI U pdate—William E. W eigel, A M B I c h a irm a n ; chief executive officer, F irst National Bank & T rust Co., Centralia. N ational B ank of Chicago, plus has extensive experience in the broker age and com m odities trad in g fields. A graduate of the U niversity of Illinois where he earned a BA de gree in 1966, Mr. F ord holds an M BA degree in finance from the U niversity of Chicago. R e p o rt —J a m e s B. W a tt, AM BI president. Legislative R eport—William D. Olson, vice president, gov ernm ent relations. The F uture of Illinois B ank ing—William C. H arris, com m issioner of banks & tru s t companies, S tate of Illinois. Coke and coffee break. Illinois Legislators Speak O u t—Panel. S e n a to r V ince D eM uzio, chairm an, finance and credit regulations comm ittee. Senator Prescott E. Bloom, m inority spokesm an, finance and credit regulations com m ittee. R epresentative Jo h n Leon, chairm an, financial in stitu tions committee. R epresentative Edw ard MeBroom, m inority spokesm an, fin a n c ia l in s titu tio n s c o m m ittee. A djourn business m eeting. Loop B ank Reception. S p o n so re d b y : C o n tin e n ta l Bank, F irst N ational Bank, H a r ris T r u s t & S a v in g s B a n k , L a S a lle N a tio n a l Bank, N orthern T ru st Com pany. Thursday, September 20 A.M. 9:00 10:00 11:00 11:15 P.M. 12:15 2:00 6:00 7:00 Keynote Address: Our E ner gy F u tu re —The Hon. Jo h n B. Anderson, U nited S tates Congressm an from Illinois. The F uture of Our C ities— The Hon. Richard E. Carver, M ayor of Peoria; president, U nited S tates Conference of M ayors. Coffee break. Am erican Foreign Policy — Richard Valeriani, diplom atic correspondent, NBC News. Luncheon. Round Table Discussions on Illinois B anking’s F uture. T o p ics: NOW A c c o u n ts, Spread M anagem ent, A TM s, E x e c u tiv e C o m p e n sa tio n , Loss Control, FIR A , Reg E . Reception. B anquet — Live en tertain m e n t a n d d a n c in g to fo l low. □ 59 S LT c a n h e l p y o u d o w n th e m id d le r o a d . In periods of tight money, lending policies become more selective. Yet middle-sized company borrowing needs become greater than ever. SLT has a solution. We can set up a collateral control program for your bank that enables you to make safe, high yield working capital loans that will satisfy your customer's needs. Call or write SLT SLT WAREHOUSE COMPANY today. We'll ride along with you. P.O. Box 242, St. Louis, Mo. 631B6 • 314/241-9750 • Offices in Major Cities N A T IO N W ID E C O L L A T E R A L C O N T R O L S E R V IC E S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 Joins Pine City Bank Philip A . Anfang has been elected a vice president of the First National Bank of Pine City. He was formerly cashier of the First Wyoming Bank, N. A.-Rawlins. Mr. Anfang is a graduate of St. John’s University, Collegeville, and the Graduate School of Banking at the University of Wisconsin. Minnesota J . T. G owan, pre s., S t. Paul T. L. J e ffe rs , exec, v .p ., M inn eap olis Town & Country State Bank Announces 5 Promotions become assistan t m anager of the new Woodbury office. N an P alm er was elected assistan t E. M ilton Klohn, president of thec a sh ie r. She h a s serv ed Town & Town & Country S tate Bank, New C ountry since 1977 and will add in port, has announced th e following vestm ent responsibilities to her pres promotions. ent safe deposit and savings duties. R a y m o n d E. S c h le m m e r w as elected senior vice p re sid e n t and cashier. Mr. Schlem m er, w ith the bank since 1961, has been in loans Promoted at Hutchinson Joyce Aul has been promoted to assista n t cashier at the First National Bank of Hutchinson. Mrs. Aul, who joined the bank in 1974, will supervise bookkeeping and teller operations in her new position. *1 Minnesota 1979 District Meetings District 9 District 6 District 8 District3 District 4 District 5 District 1 District 2 District 7 R. E. SCH LEM M ER E. D. SCH LEM M ER and operations and now will assum e responsibility for personnel and all bank operations. Elaine D. Schlem m er was elected senior vice president. Mrs. Schlem m er, who has served over 30 years w ith the bank, will assum e expanded duties in operations and custom er re lations, research and development, a n d c o m m e rc ia l a n d re a l e s ta te lending. Joel J. T u rb ak w as elected vice president. He has served Town & C ountry since 1975 and will m anage the in stalm ent loan departm ent and concentrate on commercial and real estate lending. Robin J. D uncan was elected assis ta n t vice president. She has been w ith the bank for six years and will N. PALMER Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Holiday Inn, Moorhead Holiday Inn, St. Cloud Normandy Inn, Duluth Marriott Inn, Bloomington Marriott Inn, Bloomington Marriott Inn, Bloomington Holiday Inn, Rochester Orchid Inn, Sleepy Eye Ramada Inn, Marshall Opens Office in West St. Paul PARTICIPATING in the rib b o n -c u ttin g cerem ony fo r the Robert S treet o ffic e of the NW N at’l. B a n k o f S outh St. Paul were, from le ft: C h e ste rC . Lind , Banco pres. & c .e .o .; R o b e rt-] S. Branham , pres.; Robert J. Verkennes, o ffic e m gr., and Edm und C. M eising er Jr., W est St. Paul m ayor. T J. J. TURBAK September 17 September 18 September 19 September 20 September 20 September 20 September 24 September 25 September 26 HE Robert Street office of the Northwestern National Bank of South St. Paul was officially opened in a ceremony held in July. Participating in the ribbon-cutting were Robert S. Branham, bank president; Chester C. Lind, president and chief executive officer of Northwest Bancorporation, and the mayors of West St. Paul, South St. Paul, Inver Grove H eights and Sunfish Lake. The Robert Street office is located at 1725 S. Robert St. in West St.* Paul. It is the first outside office to be opened by the South St. Paul bank. Manager of the new facility is Robert J. Verkennes, and Ruth Haugo will serve as assistan t manager. 61 Our Bond Sales Departm ent is a one-on-one proposition. When you deal with the full service Bond D epartm ent of the N orthwestern National Bank of M inneapolis, you deal with one person. A person who Is backed up by a team of specialists in Upper M idwest general obligation tax exem pt bonds, U.S. governm ent and federal agency securities. Your N orthwestern C orrespondent Investm ent A dvisor is an expert when it com es to giving good advice on bond purchases. And after the transaction we can advise you regularly with a com puterized portfolio analysis that com putes yields, prices, and up dates your portfolio automatically. Experienced people. A com puterized portfolio. And one-on-one contact with a banker who thinks just like you. If that sounds good, contact the Bond D epartm ent at the N orthwestern National Bank of Minneapolis. And put one of our C orrespond ent Investm ent Advisors on your side. Call 1-612-372-7924. * NORTHWESTERN W ei« on your side. I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Of Minneapolis M e m b e r FDIC Northwestern Banker, September 1979 O R T H W E S T B a n c o rp o ra tio n N has announced th a t Charles A. R ussell h a s b een n a m e d vice p re s id e n t in th e e a s te rn b a n k in g d iv isio n of th e b a n k in g b u s in e s s group. He joins Banco’s corporate office from the Third N orthw estern N ational Bank of Minneapolis where he has been president for the last five years. John R. Silseth, executive vice F ir s t P ro d u c e S ta te B a n k as a s s i s ta n t o p e ra tio n s m a n a g e r in 1977 and was prom oted to acting auditor in 1978. Mr. Syverson began his banking K. S. SPENGLER C. A. RUSSELL J. R. SILSETH p r e s id e n t of th e N o rth w e s te rn N ational Bank of Rochester since 1976, will succeed Mr. Russell as president of Third N orthw estern. P rio r to his p o s itio n a t T h ird N orthw estern, Mr. Russell was a vice president at N orthw estern National B a n k of M in n e a p o lis. H e jo in e d Banco in 1959, the year he graduated from the U niversity of W isconsin in banking and finance. Mr. Silseth was vice president and m anager of the N orth American office of N o rth w e s te rn N a tio n a l B a n k , M in n e a p o lis, p rio r to m o v in g to Rochester in 1976. He has been with Banco for more than 20 years and is a 1951 graduate in finance from the U niversity of M innesota. D. R. SYVERSON career in 1976 when he joined F irst Produce S tate as tim e pay a ssist ant. Prior to th a t he was associated w ith C o m m u n ity C re d it C om pany and American Finance Company. * ** N o rth w e s te rn N a tio n a l B a n k of M inneapolis^ h a s anno D. G. PEDERSON D. L. SW ANSON responsibility for m anagem ent of the Dealer Finance Division. He has been m anager of business developm ent in the Dealer Finance Division since joining N orthw estern in 1978. M r.4 Swanson was with the F irst N ational B a n k of S t. P a u l b efore jo in in g N orthw estern. involving senior m anagem ent at N orthw estern. % H Q WAHLQU1ST Harold G. Wahlquist, senior vice president and head of N orthw estern’s correspondent banking departm ent, * * * w ill becom e h e a d of M id w est D epartm ent II of the b an k ’s Regional The board of the F irst Produce Banking Group. M idwest II includes S ta te B an k of M in n e a p o lis h a s the agribusiness; financial in stitu elected Karen S. Spengler auditor, tions; retail, wholesale and tran sp o r and Del R. Syverson personal bank ta tio n ; m a n u fa c tu rin g a n d e le c ing officer. tro n ic s ; a n d h e a lth a n d p u b lic Ms. Spengler began her banking se rv ic e s d iv isio n s of c o rp o ra te career in 1969 a t the M idway N a banking. Mr. W ahlquist, who joined tional Bank in St. Paul. She joined N o rth w e s te rn in 1960, h as held Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis various positions at N orthw estern including 10 years in correspondent banking, which departm ent he has m anaged since 1976. Donald G. Pederson, former head ~ of the Dealer Finance Division, has been elected senior vice president and will succeed Mr. W ahlquist as head of the correspondent banking d ep art m e n t, w hich p ro v id e s b a n k in g s e rv ic e s to c o rre s p o n d e n t b a n k s ^ th ro u g h o u t th e U p p e r M id w e st Region. Donald L. Swanson was elected vice p re s id e n t a n d w ill a ssu m e T he a p p o in tm e n t of Harry W. " Wellner as m anager of the W oodbury office of th e N o rth w e s te rn S ta te Bank has been announced by Marvin L. Ellison, the b ank’s president. Mr. Wellner, a 34-year veteran of N orthw estern S tate, is currently a vice president and personal banker at the b a n k ’s St. Paul office. Mr. Ellison said this is N orthw est ern S ta te ’s first banking office away from its current location. The present bank has been located on the east side of St. Paul since its founding in 1916. * 63 "Part of m y job is to becom e your'partner. i.... c,.i....... ..............i...., nBank ... i, \ ...... Jim S ch m itz. r C orrespondent K>epresent.ite Southern M in n e so ta . Iow a. N ebraska ( 6 1 2 ) 2 ( i “To be a truly effective Correspondent Bank Representative I take a ‘partnership’ approach with my customers. As a ‘partner,’ I can meet my customers’ needs better, because I’m closer to their problems and can answer their questions faster. “One way I accomplish this is by calling my correspondent banks more often — either in person or by phone. “And I m always learning, striving to stay on top of things. That’s why I study the latest banking procedures, attend conventions and special seminars, ask questions of my colleagues and customers, exchange ideas, and dig out the facts—no matter what it takes. All this ‘work’ is done to help bring the latest banking approaches and services to you — and the people you serve. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “The result: you’re kept better informed, and in return, your customers are kept up-to-date. “That’s really the most important function of my job: helping my customers, so they can better help their customers!’ Correspondent B an k Division Member F.D.I.C. A Full Service Bank ^ d o our job. 'Vbuget th e cred it Northwestern Banker, September 1979 64 M innesota N ew s Carl R. Pohlad, president of M ar quette N ational Bank, has announ ced the election of Donald D. Byerly to the board of directors. Mr. Byerly is presid en t of Byerly’s, Inc., a retail grocery organi zation headquartered in Edina, op erating three stores in the Minneapolis-St. Paul area. A fourth store is located in St. Cloud. He received a degree in food m ark etin g from M ic h ig a n S ta te U n iv e rs ity a n d opened his first store in 1968. *** Four assistan t vice presidents have been nam ed for Banco, Inc., the audit se rv ic e s s u b s id ia ry of N o rth w e s t B ancorporation. William J. Georgou, formerly in charge auditor, becomes assistan t vice p r e s id e n t a n d d ire c to r of professional practices for the special itie s a u d it g ro u p . H e is in th e M inneapolis office. Daniel T. Osborn, fo rm erly in-charge auditor, becomes assistan t vice president of the St. Paul region with offices in St. Paul. Don Espersen, formerly regional audit officer, becomes assistan t vice president of the D uluth region with offices in D uluth. Larry G. Kinsey, fo rm erly in charge auditor, becomes assistan t vice president of the Aberdeen region w ith offices in Aberdeen, S.D. ** * The F irst N ational Bank of Saint eral Reserve Bank of Minneapolis to fill the unexpired Federal Advisory Council term vacated earlier this year by the death of Richard H. S. R. ASHLEY J. S. W ERNER P a u l h a s p ro m o te d tw o to th e p o s itio n of vice p r e s id e n t an d increased the num ber of corporate lending divisions. In a m ove w hich e x p a n d s th e num ber of wholesale lending divi sions from four to five, Steven R. Ashley has been promoted to vice president-division head. In another move, Jeffrey S. Werner has been named vice president and division head, replacing Dianne Arnold who is moving to a position in the consumer banking area. M r. A sh le y jo in e d th e b a n k ’s wholesale lending area in 1971. He has a BA from St. Olaf College and an M BA from th e U n iv e rs ity of M innesota. M r. W erner joined the bank in 1974 following employment w ith Cooper & Lybrand in Boston. He received a BA from Duke U niversity, an MBA from H arvard and is a CPA. Vaughan. Mr. Fram e has a BA degree in economics from the University of M innesota and a JD degree from H arvard University. He has spent his entire career with the F irst Na tional Bank of St. Paul since joining the bank in 1947. The FAC is composed of 12 bank ers representing each of the Federal Reserve D istricts. *** M ichael E. Dougherty, president of the investm ent banking firm of Dougherty, Dawkins, Strand & Elkstrom , has a n n o u n c e d th e a f f i l i a t i o n of T im othy R. K luender w ith the in stitutional bond sales de p artm en t in the position of vice T. R. KLUENDER p r e s i d e n t . Mr. K luender joins the firm after posi tions w ith A llison-W illiam s Com pany and w ith M iller & Schroeder. *** Chester C. Lind has been elected to the board of directors of N orthw est Clarence G. Frame, president and ern N ational Bank of Minneapolis. chief executive officer of the First Mr. Lind, newly-elected president National Bank of St. Paul, has been an d ch ief e x e c u tiv e officer of appointed by the board of the Fed N orthw est Bancorporation, succeeds * * * Prizes and Music Highlight St. Anthony National Grand Opening OVER 2,500 people toured the new headquarters of the St. A n th o n y N ational Bank durin g a grand opening celeb ration held J u ly 20. Featured were prize dra w in gs, m usic by the St. A n th o n y H igh School Jazz Ensem ble and free prizes and m oney from the W h e e l-o f-G ifts. Pictured from le ft: Pete M eyers, pre sid ent, is assisted by a young g irl durin g the draw ing cerem ony; M ayor S ally Haik w ith d ire cto rs, d ig n ita rie s and bank o ffic e rs h o ld in g the do o r-o p e n in g rib b o n , and v is ito rs w a itin g to spin the W h e e l-o f-G ifts. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L o o k F o r U s In N e w O r ie a n s . Jim Reagan Bob Sipple Bob Jacobson Jack Barry We'd like to talk with you about how American's full line of correspondent services can benefit your bank. We look forward to seeing you October 6-10 at the American Banker's Association Convention. O Am erican National Bank and Trust Com pany Correspondent Division https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5th & Minnesota Street St. Paul, Minnesota 55101 (612) 298-6331 Member F.D.I.C. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 67 When farmers, feeders and ranchers have to produce, so do you. Farmers, merchants, manufacturers, almost all of your customers. Their work can’t wait for good times. And good times or bad, they all depend on you for help. So when you need a correspondent, you need one you can depend on. You need First Minneapolis. First Minneapolis gives you one simple commitment. When you need us, we’ll be there. Period. It’s official policy. So when your customers are ready to produce and you find you need a correspondent who can produce, we’ll be ready. If you have questions about any of our Correspondent Services, call Ken Wales, Vice President, (612) 370-4687. You’ll get answers and a commitment you can count on. First Minneapolis "W h e n you need us, w e’ll be there.’’ F irst N ational B ank of M inneapolis, 120 South S ixth S treet • M inneapolis, MN 55402 • Member FDIC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 68 M innesota N ew s the late Richard H. Vaughan, Banco’s former president and chief executive officer. *** The Am erican N ational Bank and Trust Company, St. Paul, has announced the appointm ent of C r a ig J. Forneris as cor respondent rep r e s e n ta tiv e in the correspon dent banking de partment. Mr. Forneris joined the bank’s C. J. FORNERIS retail division in 1976 and was promoted to personal banker in 1977. He is a graduate of Gustavus Adolphus College with a BA degree in business. *** First Minneapolis Plans Plymouth Facility PICTURED is an artist’s sketch of the new Plymouth facility currently under construction by the First National Bank of Minneapolis. IRST N ational Bank of Min neapolis has begun construction on a new bank facility in suburban Plymouth. Completion of the build ing is scheduled for early 1980. The new building, a detached facil Spencer Turner has been promo ity, is the first to be constructed ted to associate vice president of by First National Bank as a result the Southdale office of Dain, Kal of a 1977 change in the banking man & Quail, Inc. He had been an laws by the Minnesota Legislature. Detached facilities are bank offices investment officer with the firm. Mr. Turner attended the Univers that provide most banking serv ity of Minnesota and has been with ices, including acceptance of loan applications. DKQ since 1961. F The 4,200 square foot facility is located on I V 2 acres at the south west intersection of County Roads 9 and 18. The Plymouth office will be staffed by 10 employees. In addition to the interior banking facilities, the new building will have three drive-up windows, a walk-up teller and a 24hour automated teller. First N ational Bank also has branch offices on West Broadway. N orth W a sh in g to n and in St. Anthony Falls. First National Bank of Willmar, according to Oliver H. Hagen, president. Mr. Olson joined Jennie-0 Foods in 1962. The corporation has since expanded and now markets turkey products worldwide. It is the nation’s largest independent processor of turkeys. Mr. Olson has a BS degree in business administration from Con cordia College. the Board of Governors of the Fed eral Reserve System in Washing ton, D.C. Mr. Storm graduated from the University of Wisconsin in 1970 with a bachelors degree in business administration. Luverne Welcomes Home National Golf Champion Commissioner of Banks Appoints Assistant A LARGE crowd was on hand in Luverne July 21 to welcome home Jerilyn Britz, center, the 1979 winner of the Women’s U.S. Open. She is pic tured with Gerald W ethor, pres., and Grace Loose, v.p., as she deposits her check in the Northwestern State Bank of Luverne. The day was proclaimed “Jerilyn Britz Day" throughout the State of Minnesota by Gov. Al Quie in honor of the national golf celebrity. New Director Elected Charles B. Olson, president of Jennie-0 Foods, Inc., has been elected to the board of directors of the Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M in n eso ta C om m ission er of Banks Michael J. Pint has announ ced the appointment of Scott A. Storm as assistant commissioner in the banking division. Mr. Storm will be responsible for supervision and regulation of banks, trust com panies, certificate investment com panies and savings banks. He assumes this position after spending nine years with the Feder al Reserve System. For the past three years, he was a senior financ ial analyst for the division of bank ing supervision and regulation of Named at St. Cloud Bank Tim Stern, president of the North western Bank and Trust Co., St. Cloud, has an nounced the pro motion of Patri cia Spiczka to ad m in istrative a s s is t a n t and loan officer. She will serve as an assistant to the president and be involved in com P. SPICZKA mercial lending. Ms. Spiczka worked at the State Bank of Foley prior to joining North western in 1971. She has held posi tions as a secretary, teller and savings/savings certificate reconciler. 69 In the opinion of Bond Counsel, interest on these Bonds is exempt under existing law from Federal income taxes and from taxation by the State of Minnesota and its subdivisons and municipalities. $ 100 ,0 00 ,00 0 MINNESOTA HIGHER EDUCATION COORDINATING BOARD Guaranteed Student Loan Program Revenue Bonds, Series 1979 D ue: A s s h o w n b e lo w D a te d : S e p te m b e r 1 ,1 9 7 9 P rin c ip a l and in te re s t (p a y a b le A p ril 1, 1980 and s e m i-a n n u a lly th e re a fte r) are p a y a b le at N o rth w e s te rn N a tio n a l B a n k o f M in n e a p o lis , M in n e a p o lis , M in n e so ta . T he B o n d s are is s u a b le as co u p o n b o n d s in th e d e n o m in a tio n of $5,000 o r an y in te g ra l m u ltip le th e re o f. C o u p o n b o n d s and fu lly re g is te re d b o n d s are in te rc h a n g e a b le . T he B o n d s are w ith o u t rig h t o f re d e m p tio n p rio r to th e ir sta te d m a tu rity date. MATURITY SCHEDULE T he B o n d s d o n o t c o n s titu te a d e b t o f th e S ta te o f M in n e s o ta and n e ith e r th e fa ith and c re d it n o r th e ta x in g p o w e rs o f th e S ta te o f M in n e s o ta a re p le d g e d to th e p a ym e n t of th e p rin c ip a l o f o r in te re s t on the B o n d s. The B o n d s are offered o n ly b y m eans of the O ffic ia l Statem ent, c o p ie s of w hich m ay be ob ta in e d from su ch of the u n d e rs ig n e d as m ay le g a lly offer the B o n d s in this State. B on ds of p a rtic u la r m aturities m ay o r m ay not be a va ila b le from the u n d e rsig n e d o r othe rs at the p ric e s sh ow n on or after the date of this announcem ent. Amount Due April 1 Rate Yield $ 5,000,000 5,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 20,000,000 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 6.10% 6.10 6.10 6.10 6.10 6.10 6.10 6 1/s 6 Va 6.20 5.50% 5.55 5.60 5.70 5.75 5.80 5.90 6.00 6.05 6.10 (Accrued interest to be added) The Bonds are offered when, as and if issued subject to the approval of legality by Messrs. Briggs and Morgan, Professional Association, Saint Paul and Minneapolis, Minnesota. BancNorthwest The First National Bank of S aint Paul First Chicago The F irst N a tion a l Bank of C h ica go Harris Trust and Savings Bank Merrill Lynch White Weld Capital Markets Group M e rrill Lynch, P ierce, Fenner & Sm ith Inco rp o ra te d United California Bank American National Bank Cronin & Marcotte, Inc. First National Bank S aint Paul, M inn. FirstNational Bank of M in n e a p o lis Southeast First National Bank in D allas W achoviaBank&TrustCom pany.N.A. of M iam i M. H. Novick & Company, Inc. Seattle-First National Bank Simpson, Emery & Company (In c o rp o ra te d ) Union Planters National Bank William R. Hough & Co. Seasongood & Mayer of M em phis Piper, Jaffray & Hopwood In co rp o ra te d Dain, Kalman & Quail Carleton D. Beh Co. Allison-W illiam s Company In co rp o ra te d Wauterlek & Brown, Inc. Paine, Webber, Jackson & Curtis UMIC, Inc. In co rp o ra te d Channer Newman Securities Company Hanifen, Imhoff & Samford, Inc. Hutchinson, Shockey, Erley & Co. Juran & Moody, Inc. Marine National Exchange Bank M ilw a uke e Marquette National Bank Robert S. C. Peterson, Inc. M iller & Schroeder Municipals, Inc. M in n e a p o lis Moore, Juran and Company, Inc. Wm. P. Harper & Son & Company Robert W. Baird & Co. (A D ivisio n of H arper, M cLean & Com pany) In co rp o ra te d August 17, 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 70 Idont recall theface but the suit isfamiliar. This may be the way you see your Correspondent Banker. But at Marquette, we are more interested in filling your needs, than filling the pin-stripe, button down banker image. That’s why our ads have featured our people as they really a re ... working bankers, in working situations, working for you. We don’t want to blend in with all the other big city bankers. We just want to stand out by giving you the best service possible. A Marquette National Bank 777 M a rq u e tte A ve n u e . M in n e a p o lis, M N 5 5 4 8 0 Your Complete Correspondent Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M e m ber FDIC «»Ur https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 72 M innesota N ew s Joins Northern City Bank From Regional Data Center James H. Claypool, president of Northern City National Bank, Duluth, has an nounced the elec tion of Daniel Willard to assist ant vice presi dent-operations. Mr. W illard has served for the last 12 years as manager of the First Bank Sys D. W ILLAR D tem’s Duluth Re gional Data Center, based at Northern City. In his new position, he will be responsible for teller operations, staffing and purchasing of supplies for the bank. Promoted at Faribault Richard W. Peavey, president of the First Northwestern National Bank of Faribault, has announced that Darlene C. Keough has been promoted to operations officer. Mrs. Keough joined the bank in 1964 as a teller and was promoted to teller supervisor in 1976. Her du ties include supervision of the teller area, new accounts and safe deposit boxes. Promoted at Albert Lea C. C. Bergerson, president of the First Northwestern National Bank, Albert Lea, has announced the pro motion of Wayne C. Bollum to agri cultural lending officer. Mr. Bollum joined the bank as an agricultural credit trainee in August, 1978. He was formerly employed with the agricultural extension service at the U niversity of M innesota, St. Paul, where he received a BS degree in animal science and agricultural economics in 1978. DKQ Names Two Reps For Duluth Office Roger Conley and Dick Gould have been named registered representa tives of the Dain, Kalman & Quail, Inc. Duluth office. Mr. Conley had been a sales representative with Gamble Robin son for five years prior to joining DKQ. He is a graduate of the University of Minnesota. Mr. Gould was a local Duluth businessm an for 11 years before joining DKQ. Plans New Facility The First State Bank of Bayport broke ground in June for a new banking facility at 950 North High way 95. Expected to be open for business about July 1, 1980, the new facility will contain approximately 6,900 square feet of space with six teller stations, two sit-down stations for deposit attendants and personal banking and two after hours walkup windows. A 64-car parking lot will also be featured. Marvin Friedrich, vice president, said the move is being made because the bank has out grown its present space which is about 2,900 square feet. The bank has 21 employes. Elected At Edina IBank First Southdale National Bank, Edina, has announced the election of Wendell A. Lotthammer as vice p r e sid e n t and controller. Mr. Lotthammer has held var ious positions at o t h e r “ F ir s t B anks” in the Twin City area since 1962. His most recent post LOTTHAMMER was vice president of the First Merchants State Bank in St. Paul, He attended Moorhead State College and the Graduate School of Banking in Madison, Wis. RMA Plans Convention Commercial lending in the 1980’s will be explored and dis cussed thoroughly during RMA’s 65th annual Fall Conference. Hosted bjr the Chesapeake Chapter, the Conference will take place November 11-14 in Washington, D.C. Thomas Murphy, chairman, Gen eral Motors Corp., Detroit, and RMA President-elect M. G. (Sanch) Sanchez, president, First Bankers Corporation of Florida, Pompano Beach, will be among those giving major addresses. Credit Workshops Planned Call the hotline number for the latest Money Market News and offerings of municipals, governments, agencies, secondary market loans, negotiable certificates of deposit and other short term investments. These fixed income securities are available with maturities from one day to 30 years. Investment Services Group First National Bank of Saint Paul St. Paul, Minnesota The First National Bank of Saint Paul Member First Bank System Member FD.I.C. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A Full Service Bank Three workshops on financial statement analysis and commercial loan documentation have been scheduled by Robert Morris Assoc iates. The sessions are open to non member RMA banks. Sponsored by RMA’s credit division, the work shops will be September 23-26 in Detroit (Southfield), December 16-19 in Atlanta and March 9-12 in Los Angeles. Details may be ob tained from RMA headquarters at 1616 Philadelphia National Bank Building, Philadelphia 19107. Official Checks... a new, unlimited amount payment instrument from Travelers Express " O ffic ia l C hecks" are th e space age w ay to replace yo u r ow n bank checks (cashier's checks) and at th e s a m e tim e reduce w o rk and m ake m oney! How? By saving w o rk in y o u r back o ffic e w h ile g a in in g balances or earning fees fro m Travelers Express. " O ffic ia l C hecks"are y o u r checks, p rin te d to yo u r design and to o u r sp e cifica tio n s at no cost to you. N o w , b y s e llin g l i m i t e d a m o u n t T ra v e le rs Express M o n e y O rders to yo u r custom ers— substi tu tin g u n l i m i t e d a m o u n t Travelers Express O ffic ia l Checks for your bank checks— you profit tw o ways! Rush m e in fo rm a tio n on you r paym ent services, o r call 800-328-5678. Travelers Express u A GREYHOUND COMPANY ® 5075 Wayzata Boulevard, Minneapolis, MN 55416 □ Money Orders □ O fficial Checks Your name. Company name. Address_______ City/State/Zip. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 74 Joins Larimore Bank as VP, Agriculture Rep Completes Sale of Student Loan Bonds H E N o r th D a k o ta S ta te I n d u s t r ia l C o m m issio n h a s c o m p le te d th e sa le o f $ 7 8 ,0 2 2 ,3 4 0 s tu d e n t lo a n re v e n u e b o n d s to S m ith B a rn e y , H a r ris U p h a m & Co. o f N ew Y o rk . T H. L. T h o rn d a h l, le ft, pres., Bank of N orth Dakota, accepts a check from A lex W. C ook, v .p ., S m ith Barney, Harris Upham & C o., New York, fo r the sale of stu d e n t loan revenue bonds. T h is w a s th e la r g e s t p u b lic bo n d iss u e e v e r issu e d in N o rth D a k o ta , a n d a ls o t h e l a r g e s t s tu d e n t lo a n f in a n c in g issu e b r o u g h t to m a r k e t in th e n a tio n . A s a le s s y n d ic a te of o ver 100 b r o k e r - d e a le r s p a r tic ip a te d in th e m a r k e tin g o f th e bonds. T h e B a n k of N o rth D a k o ta , B is m a rc k , m a d e th e f ir s t fe d e ra lly in s u re d s tu d e n t lo a n in th e n a tio n in 1967. S in ce th e n th e b a n k h a s p ro ce sse d o v er 76 ,7 8 9 lo a n s, a n d r a n k s seco n d in n u m b e rs a m o n g a ll b a n k s in th e c o u n try . T h e B a n k of N o rth D a k o ta ’s d e fa u lt r a te h a s b e e n 2.5% , b e l i e v e d to b e t h e lo w e s t in t h e n a tio n . N o rth D a k o ta a lso le a d s th e n a tio n in p ro v id in g f in a n c ia l lo a n a s s is t a n c e to its c itiz e n s s e e k in g e d u c a tio n a n d tr a i n in g b ey o n d h ig h school. I t is e s tim a te d t h a t th e I n d u s tr ia l C o m m i s s i o n ’s i s s u a n c e o f t h e s e b o n d s w ill p ro v id e fu n d s to c o n tin u e th e s tu d e n t lo a n p ro g ra m th r o u g h th e B a n k of N o rth D a k o ta for th e n e x t tw o y e a rs. C. F. Cornelius, president of the Elk Valley State Bank, Larimore, has announced that Vernon A. Sturlaugson has assumed new duties as a vice president and agricultural representative. Mr. Sturlaugson was most recent ly senior vice president of the Farm ers State Bank of Minnewaukan. He served with the Minnewaukan bank for 20 years in all phases of the banking business. Joins Devils Lake Bank Gary W. Arneson has joined the First National Bank of Devils Lake as vice president. He was formerly vice president and cashier of the J Northwestern State Bank of Hallock, Minn. Previously Mr. Arneson was em ployed at the Union State Bank of Fargo and as a bank examiner in Minnesota. He is a graduate of North Dakota State University. Announce Promotions at First Bank-Bismarck Bob W estbee, president of the First National Bank & Trust Co. of B ism a rck , has announced seven promotions fol lowing the July board meeting. Ron Brieher, a s s is t a n t v ic e p r e sid e n t and manager of the A rrow head o f fice, has been transferred to the R- BRIEHER main bank and elected assistan t manager of the personal banking center. Tom Fix, a 1977 graduate of the University of North Dakota, has been elected a commercial loan officer. Formerly a personal bank officer, he agricultural credit, correspondent banking, business development and commercial lending at the Fargo George W. Schwartz has been bank before assuming the presidency elected president and a director of the at Thief River Falls. F ir s t N a tio n a l Mr. Schwartz is a graduate of Bank & Trust North Dakota State University. He Co. of Fargo. He taught vocational agriculture at succeeds Robert Elgin before joining the Air Force. He D. Harkison who left the service as a captain after was named chair seven years to continue graduate man and chief studies at NDSU. executive officer. Mr. Schwartz was most recent ly president of the First North G. W. SCHW ARTZ western State Bank of Thief River Southeast Group October 22 Falls, Minn., a position he had held Southwest Group October 23 since 1974. He started his banking Northwest Group October 24 career in agricultural finance at First Northeast Group October 25 National Bank of Fargo in 1967. He later assumed responsibility for Executive Changes Made at First National of Fargo North Dakota 1979 Group Meetings Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ellendale New Salem Williston Grafton 75 MARGE LAMOSSE, TH E NEW CORRESPONDENT BANKING SERVICES COORDINATOR A lull range of correspondent banking facilities is as close as your telephone. Dial 1-800-752-4200 TOLL FREE, and at the end of the line you’ll find the strength and service of a substantial financial institution through friendly knowledgeable Marge Lamosse. Call us anytime: S tan Peterson, Mike Higgins, or Marge Lamosse. W E R E BIG ENOUGH TO KNOW HOW AND SMALL ENOUGH TO KNOW YOU. Midland National BANKofMinneapolis Banco 401 Second Ave. S . / Street Level, Gov’t Center/MemberFD.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 76 / ---------------------------------------------------- South Dakota G. H. W altne r, pres., Freem an J . M . S chw artz, exec, m g r., P ierre T. FIX S. H AR TM AN N has been with First Bank System since 1977. Steve Hartmann, a 1978 graduate of UND, has been elected loan review and compliance officer. He joined the bank in 1977 and has been a personal bank trainee since July, 1978. Jeff Gerving, personal bank trainee, has been elected a personal bank officer. He joined the bank in 1976. Mae Trottier has been elected a branch, and Pat Burchill was elected C. P. “Buck” Moore, president ofcommercial loan officer, downtown Northwestern N ational Bank of office. Ms. Fischer began her banking Sioux Falls, has career at the downtown office in 1973 an n ou n ced th e and served in various operations p r o m o t io n o f capacities. She transferred to the James M. Nelson Rushmore Mall office upon its of the Madison opening in October, 1978, as a branch from in customer service representative. surance manager Mr. Burchill joined the bank in to personal loan officer. Mr. Nel son joined that branch in 1970 as an insurance aJ’ NELS0N gent. He attended Dakota State College. Promoted at Madison Office National Bank of S.D. Advances 2 in Rapid City J. GERVING M. TROTTIER personal bank officer. She was most recently manager of the Motor Bank facility. Pam Lucas, a transfer from First Bank of Fargo, has been elected an officer and manager of the Arrowhead office. She has been with First Bank System since 1975. Penny W inter, a transfer from First Bank of Grand Forks, has been elected instalment loan officer. She has been with First Bank System since 1973. Elected Probate Officer Dave Rasmussen has been elected probate officer of the First North western Trust Company of North Dakota, Fargo. He is responsible for handling estate administration du ties in the probate division succeed ing Philip Stafne who resigned. Mr. Rasmussen joins the trust company from Mitchell, S.D., where he practiced law for two years with a private firm. He received a JD de gree from the law school and an MBA degree from the graduate school of business at the University of South Dakota in 1977. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The board of the National Bank of South Dakota has elected two new officers in Rapid City, according to Nels E. Turnquist, president and chief executive officer. Marilyn Fischer was elected branch manager, Rushmore Mall M. FISCHER P. BU R C H ILL 1977 as a management trainee at the downtown office. He is a graduate of the University of South Dakota with an MBA degree and has served as a credit analyst since October, 1978. South Dakota Group Meetings Group Group Group Group Group 5 4 2 3 1 Sept. Sept. Sept. Sept. Sept. 10 11 12 13 14 Phil-Town Inn, Sturgis First National Bank, Mobridge The Gallery, Webster Holiday Inn, Mitchell Westward Ho Club, Sioux Falls South Dakota group meetings will be held on the dates at the locations listed above. The Group 4 business session will convene at the First National Bank in Mobridge, but the banquet will be held at the Mobridge Country Club. The format follows: P.M. 3:00 Registration 4:00 Business Session 1. 2. 3. 4. 6:30 7:00 SDBA session Legislative briefing Group meeting Speaker — Gerry Kenna, president, Federated Serv ices, Inc., Hialech, F la., “ Kidnapping and H os tage.” Social hour Banquet Speaker — Joe Griffith, Dallas, Tex., humorous anec dotes. 77 A l l t h e s e s e c u r i t i e s h a v e b e e n s o l d . T h i s a n n o u n c e m e n t a p p e a r s as a m a t t e r o f r e c o r d o n l y . New Issue $52,100,000 South Dakota Student Loan Assistance Corporation Student Loan Revenue Bonds Series 1979-A T h e Series 1979-A Bonds are dated August 1 ,1 9 7 9 , due A ugust 1, as shown below, and are subject to redem ption as described in the Official Statem ent. In t h e o p i n i o n o f B o n d C o u n s e l, i n t e r e s t o n t h e B o n d s is e x e? n p t f r o m f e d e r a l i n c o m e t a x a t i o n . T h e S eries 1 9 7 9 -A B o n d s do n o t c o n s titu te d e b t of th e S ta te of S o u th D a k o t a or a n y p o litic a l s u b d iv is io n th ereof. N e ith e r th e fa ith a n d c re d it n or th e ta x in g p o w e r s of th e S ta t e of S o u th D a k o t a or a n y p o litic a l s u b d iv isio n th e r e o f arc p le d g e d to th e p a y m e n t of th e p r in c ip a l o f or in te r e s t on th e S c r ies 1 9 7 9 -A B o n d s . $2 7 ,9 7 0 ,0 0 0 Serial Bonds Am ount D ue $1,035,000 595,000 905,000 1,390,000 1,795,000 1980 1981 1982 1983 1984 C oupon R a te P ric e o r Y ie ld 5.40% 5l/2 5V2 5.60 5.60 100% 100 5.55 100 5.65 $ 9 , 600,000 $ 1 4 ,5 3 0 ,0 0 0 6% A m ount D ue $2,255,000 1,510,000 1,700,000 1,675,000 1,625,000 2,500,000 1985 1986 1987 1988 1989 1990 Coupon R a te. P ric e o r Y ie ld 5.70% 53/4 5.80 5.90 6 6.10 100% 100 5.85 100 100 100 Am ount D ue S2,305,000 2,295,000 2,115,000 1,695,000 2,575,000 1991 1992 1993 1994 1995 C oupon R a te Y ie ld o r P ric e 6.10% 6.20 61/4 6.30 6.40 6.15% 100 100 6.35 6.45 Term Bonds due A ugust 1, 1989— Price 100 % 6 V2% Term Bonds due A ugust 1, 1996 —-Price 100 % (Accrued interest to be added) 7 he S eries 1 9 7 9 -A B o n d s arc s u b je c t to th e a p p r o v a l of le g a lity b y D o r s e y , W i n d h o r s t , H a n n a f o r d , W h i t n e y & H a l l a d a y , M i n n e a p o l i s , M i n n e s o t a , B o n d C o u n s e l . C e r t a i n l e g a l m a t t e r s in c o n n e c t i o n w i t h t h e S e r i e s 1 9 7 9 - A B o n d s a r e s u b je c t to th e a p p r o v a l of F o le y & L a r d n e r , M ilw a u k e e , W isc o n sin , C o u n s e l to th e U n d e rw r ite rs . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 78 r Colorado D. L. F a rm e r, pres., R ocky Ford G. L. S carb oro, exec, m g r., D enver Sept . 20-23 H E s ix th a n n u a l c o n v e n tio n of th e In d e p e n d e n t B a n k e rs of C o lo rad o w ill b e h e ld S e p te m b e r 1422 a t T h e L odge in V a il. T he g e n e ra l fo rm a t h as been a l t e r e d t h i s y e a r to a l l e v i a t e t h e p ro b le m of g o lfin g on S a tu r d a y . A d a y of re c r e a tio n w ill b e h e ld T h u r s d ay ; m e e tin g s a n d a p a n e l d is c u ssio n o n F r id a y w ith a b a n q u e t F r id a y e v e n in g . F e a tu r e d o n S a tu r d a y w ill b e officer e le c tio n s follow ed b y a l u n c h e o n a n d s p e a k e r . A d jo u r n m e n t w ill be S a tu r d a y a fte rn o o n . A n o th e r in n o v a tio n th is y e a r is th e in c lu s io n of in d u s tr y e x h ib itio n b o o th s. I n d u s tr y r e p r e s e n ta tiv e s w ill b e sh o w in g t h e i r l a t e s t w a re s a n d w ill sp o n so r a c o c k ta il p a r ty T h u r s d a y e v e n in g . T h e p r o g r a m follow s: T W ednesday, Septem ber 19 P.M. 2:00 4:00 B o a rd o f D ire c to rs m e e tin g . R e g is tr a tio n d e s k o p en s, T h e L odge lobby. Thursday, Septem ber 20 A.M. 9:00 R e g is tr a tio n , T h e L odge 10:00 P.M. 5:30 7:30 lobby. G o lf a t th e V a il M u n ic ip a l G o lf C o u rse ; te n n is for a n y o n e w is h in g to p la y . E x h ib ito r ’s c o c k ta il p a rty . E v e ry o n e in v ite d . D in n e r on y o u r ow n. Friday, Septem ber 21 A.M. 8:30 9:00 P.M. 12:30 R e g is tr a tio n d e s k o pens. B u s in e s s se ssio n , p a n e l d isc u ssio n . C o c k ta ils a n d lu n c h e o n f e a tu r in g a c a rd ia c s p e c ia lis t — "H o w to H e lp Y o u r H e a r t .” A fte rn o o n open. 6:00 C o c k ta il p a r ty . Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7:30 B a n q u e t. S p o rts a w a rd s by D r. E a r l R e u m , m a s te r of c e re m o n ie s. Saturday, Septem ber 22 A.M. 9:00 B u s in e s s se ssio n s, e lec tio n s a n d re p o rts . P.M. 12:30 2:30 C o c k ta ils a n d lu n c h e o n f e a tu r in g J a m e s K eh o e, coach, M a ry la n d U n iv e r s ity — " P h y s ic a l F itn e s s .” A d jo u rn m e n t. Executive Changes Made At First National, Golden Irving Trust Company, New York City, where he was a vice president and manager of the energy and min- ” erals department. He has a BA de gree in economics and business from Hobart College, Geneva, N.Y., and a * BS degree in petroleum engineering from Tulsa (Okla.) University. Mr. Sprague has 18 years experience in petroleum reservoir and pro duction engineering with Texaco, Inc. Most recently, he was the dis trict engineer for the Midland divi sion. He has a BS degree in petrol eum engineering from the New Mex ico Institute of Mining and Technol- * ogy. Elected Board Chairman at Guaranty Bank of Stapleton D a n ie l G. H u n te r , p r e s id e n t a n d c h ie f e x e c u tiv e officer o f th e G u a r a n ty B a n k o f S t a p le to n , D e n v e r , h a s b e e n e le c te d c h a ir m a n of th e b o a rd . H e w ill also c o n tin u e as p re s id e n t an d c h ie f e x e c u tiv e officer. M r. H u n te r jo in e d th e b a n k D. G. HUNTER a s p r e s i d e n t in M a rc h a f te r le a v in g U n ite d B a n k of D e n v e r w h e re h e w a s vice p re s id e n t, c o m m e rc ia l b a n k in g d e p a r tm e n t. H e rec e iv e d a b a c h e lo rs d e g re e in m a n a g e m e n t from N o r th e r n Illin o is U n i v e rs ity in 1968 a n d a n M B A d e g re e from th e U n iv e r s ity of C o lo rad o in 1970. T h e G u a r a n ty B a n k of S ta p le to n w a s c h a r te r e d in 1965 a n d is lo c a te d n e a r th e U n ite d A irlin e s F lig h t T r a in in g C e n te r a t S ta p le to n I n t e r n a tio n a l A irp o rt. L. M. VanderStowe has been elec ted chairman of the First National Bank in Golden. He succeeds John A. Fortune, who recently retired as chairman and president after 33 years with the bank. Francis X. Sweeney, formerly sen ior vice president, was named presi dent of the bank. Warren R. Henson, formerly senior vice president, was appointed executive vice president. Mr. VanderStowe, formerly execu tive vice president, joined the bank in 1958 as an operations officer. He had served as executive vice presi dent since 1962 and is also a director and officer of the bank’s firm, First Golden Bancorporation. Central Bank of Denver Mr. Fortune will continue as a di rector of the bank as well as board Announces Promotions The board of Central Bank of chairman and president of First Denver has announced the promotion Golden Bancorporation. of four employes to officer positions, one to assistant vice president and United Bank of Denver one to vice president. Announces Appointments JoAnn Schloss was promoted to J. Robert Murdoch and Douglas vice president of the staff relations Sprague have joined the energy and and development department, and minerals group at United Bank of Clancy Degenhart was promoted to Denver. Mr. Murdoch is a vice pres assistant vice president of the direct ident and manager of one of the en lending department. Joan Bristol, ergy lending activities. Mr. Sprague Lynn Hendrickson, Mark Muncey and Glenn Retalia were promoted to is manager of the engineering unit. Mr. Murdoch comes to UBD from officer positions. A i J H J J 79 Our commitment to service is your Source of strength in Correspondent banking. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First of Denver is the source you can depend on for prompt, decisive answers and action on your loan participation requests, for the newest, most comprehensive cash management systems, for an availability schedule which sets the standard in the Rocky Mountain region, for highly skilled bankers who make it their business to anticipate changes in the agri-business and metro markets that can affect your bank and customer needs. And we respect and protect the integrity of your customer \ relationships. \ So consider the Source. r s \ think First. First of Denver Northwestern Banker, September 1979 80 Colorado N ew s Ms. Schloss joined Central Bank in 1976 as employe relations officer. She was formerly project director for the Denver Commission on Youth and community relations consultant for the Denver Commission on Commun ity Relations. She has a masters degree in organizational behavior from the University of Colorado. Mr. Degenhart attended North eastern Junior College and joined Central in 1965. Prior to his promotion, he served as retail lending officer. Ms. Bristol graduated from Vassar and has an MBA degree from Fairleigh Dickinson University. She joined Central in 1978 as planning director. Ms. Hendrickson graduated from Montana State University. She joined the bank in 1972 and now works in the direct lending depart ment. After graduating from the Univer sity of Colorado, Mr. Muncey began his career at Central Bank in 1975 as assistant operations manager in the retail lending operations department. Mr. Retalia attended Barnes Busi ness College. He joined Central’s retail lending collection department in 1966 and currently serves as the department’s assistant manager. United Selects Developer For Downtown Office Tower U nited Bank of Denver has selected Gerald D. Hines Interests of Houston, Tex., to develop, construct and own a major new office tower to be built on property owned by the bank in downtown Denver, John D. Hershner, United Bank chairman, has announced. Located at the northeast corner of 17th Avenue and Lincoln Street, the new building site is adjacent to the present United Bank parking struc ture and across Lincoln Street from the bank’s primary business location. The bank anticipates being one of the initial tenants of the new building, which is expected to contain a minimum of 900,000 gross square feet, but will continue to use the 1740 Broadway building as the focal point for customer contact activities. The new building will interconnect to the present United Bank Center and be accessible from Broadway. A second parking facility also will be added to the complex. Design architects for the project are the world-renowned designers Philip Johnson and John Burgee of New York. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Security National To Relocate, Change Name SIGNING the 20-year lease fo r S ecu rity N a tion al B ank’s new headquarters are, from le ft: C. Gale S e lle rs , pres.; W illia m A. C onw ay III, v.p., C ushm an & W akefie ld , co n s u lta n ts to the bank, and Daniel L. F itc h e tt Jr., exec, v.p ., L.C. F ule nw lde r, Inc., co-developers of Enerav Plaza. HE sixth largest commercial T bank in downtown Denver, Se curity National Bank, a member of Bank Building, and the plaza will+ be known as Denver National Bank Plaza. Affiliated Bankshares of Colorado, In conjunction with real estate Inc., has announced its intent to consultants Cushman & Wakefield, relocate to a new office center in the Security N ational Bank’s lease Denver Urban Renewal Area and to consideration was for a 20-year term change the bank’s name to Denver and includes the first four floors of the*' National Bank. building. C. Gale Sellens, president, in In com m enting on the name making the announcement, antici change, Mr. Sellens said, “Although pated that the name change to we’re announcing a new move and a Denver National Bank would take new name, we are returning to a site effect this fall before the bank’s in Denver that once was the center of move. The bank will continue to town and has a great deal of history operate a banking facility at its attached to i t . . . this was the site of present location at 16th and the original Denver Branch of the Glenarm. Federal Reserve Bank of Kansas The 16-year-old Security National City.’’ In addition to regular banking Bank will take up new quarters, pending approval by the Comptroller facilities, there will be a new motor* of the Currency, in the half million bank located at 18th and Arapahoe. Cannell & Chaffin Commercial square foot office center at 17th and Arapahoe Streets developed by L.C. Interiors, Inc., space planners for all* Fulenwider, Inc. and Petry-Vappi Denver National Bank Plaza, will Construction Co. oversee the bank’s space planning, With the bank’s relocation, the interior design and construction 17th and Arapahoe developm ent, documents. Work is underway on the originally known as Energy Plaza, bank’s design development and will change its name. The high rise construction is slated to begin this f will be named the Denver National December. AN EFT SYSTEM THAT CAN BE TAILORED FOR YOUR BANK. T he P lu s System * is a p r o v e n EFT p r o g r a m o p erated by R o c k y M o u n ta in B an k C ard S y s te m (RMBCS). It c o n s is t s o f c r e d it a n d b a n k c a r d s, a sh a r e d ATM n etw o rk , a n d a fu ll-fu n c tio n s w it c h in g n etw o rk . F le x ib ility o f th e s y s te m m e a n s y o u c a n ta ilo r a p ro g ra m to b e st fit y o u r m a r k e tin g n e e d s. B a n k in g Card, y o u m a y a lso is s u e y o u r o w n ATM a c c e s s card w h ic h ca n be u s e d at a ll P lu s S y ste m ATMs. C om bined w ith th e V ISA B a n k in g Card, y o u c a n o ffer ATM s e r v ic e s to a lm o st y o u r e n tire c u sto m e r b a se . . . w h ic h m e a n s m ore u s a g e v o lu m e for y o u r m a c h in e . E c o n o m y o f S h a r e d ATM s. T h e S ig n o f th e P lu s . T he P lu s S y s te m fe a tu r e s a u n iq u e n e tw o r k o f sh a r e d ATMs th r o u g h o u t C olorad o, N ew M ex ico , a n d W y o m in g . We h a v e o p e n e d o u r fir s t m a c h in e in K a n sa s a n d lo c a tio n s in A r iz o n a w ill o p e n so o n . A m u ltip le ca rd b a se m e a n s m ore v o lu m e p er m a c h in e lo c a tio n , a n d th r o u g h a u n iq u e fee a r r a n g e m e n t, b a n k s o f a ll s iz e s r e c e iv e e q u ita b le fee r e v e n u e s for tr a n s a c tio n s o n th e ir m a c h in e s . T he ATMs a n d a ll o f th e ca r d s c a r r y th e u n iq u e P lu s S y ste m n a m e a n d sy m b o l for e a s y id e n tific a tio n . C u sto m ers w o n ’t c o n fu s e th e c a r d s w ith o th e r is s u e r s o f th e n a tio n a l c h a r g e ca rd s. V IS A a n d M a ste r C h a r g e ! B o th n a tio n a l c r e d it c a r d s, is s u e d by P lu s S y ste m m em b er b a n k s a n d c a r r y in g th e P lu s S y ste m sy m b o l, c a n be u s e d in th e ATM n e tw o r k for c a s h a d v a n c e s. To d ate, m ore th a n 2 m illio n c u s to m e r s ca n a c c e s s a n y m a c h in e in th e s y s te m . V IS A B a n k in g C ard. RMBCS a ls o o ffe r s th e V ISA B a n k in g Card, a d eb it card w h ic h a llo w s y o u r c u s to m e r s to u s e fu n d s in th e ir c h e c k in g a c c o u n ts at V ISA m e r c h a n ts th r o u g h o u t th e w o rld a n d at a ll P lu s S y ste m ATMs. T h is ca rd c a r r ie s y o u r b a n k ’s n a m e o n th e fro n t an d y o u c a n ad d a d d itio n a l c h e c k in g s e r v ic e s s u c h a s c h e c k g u a r a n te e or a r e s e r v e lin e -o f-c r e d it. C u sto mOATM C a rd s. F or y o u r c u s to m e r s w h o d o n ’t q u a lify for a VISA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T h e R o c k y M o u n ta in “S w it c h .” O n ly th e P lu s S y ste m c a n p ro v id e y o u w ith a fu ll-fu n c tio n s w it c h in g n etw o rk . A ll y o u r ca rd s m ay h a v e o n -lin e , p o s itiv e -file v e r ific a tio n o f ea ch tr a n sa c tio n . A nd y o u d o n ’t n eed to c h a n g e p r o c e s s o r s in m o st c a s e s , s in c e w e a lr e a d y are w o r k in g w ith a la r g e n u m b er o f th e le a d in g p r o c e s s o r s th r o u g h o u t th e r e g io n . A little p h o n e c a ll c a n m a k e a b ig d iffe r e n c e . N o o th e r EFT p ro g ra m o ffers so m u ch p o te n tia l an d c u sto m e r s a le s in c e n tiv e . F in d o u t h o w th e P lu s S y ste m c a n m a k e a b ig d iffe r e n c e in th e s e r v ic e s y o u offer. C all Bob H art, V.P., or Ed V on F eld t, A sst. V.P., E le c tr o n ic B a n k in g S e r v ic e s, to ll free: In C olorado 1 -8 0 0 -3 3 2 -3 3 2 0 ; o u tsid e C olorado 1 -8 0 0 -5 2 5 -3 7 1 7 . Rocky fo u n ta in BankCard System P.O. B o x 5 9 5 2 • D en v er, CO 8 0 2 1 7 Master Charge and Visa are cards your prospects and customers want, and they're good business for your bank. But you don't want the service headaches, right? When we handle your bank cards, you get the credit. You're not alone. A great many other midwest banks agree with you. So they leave the busy work to us. We can set up y our pro gram, handle credit, issue cards, provide security and even a marketing program. As a result, you realize a nice bit of extra business just for offering the cards. As far as we're concerned, we'll do the work . . . and you can take all the credit. For more information, give us a call today at 402/536-2035. * Dillon Ross Bank Card M anager Dick Rouse Credit Officer Bill Clark Customer Service Officer US National © U.S. National Bank, 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BankOf Omaha Member FDIC * Banco 83 teller machines with a week-long cash and merchandise giveaway last month, according to William Deite meyer, president. Lucky members of the community won hundreds of dollars in cash prizes which a “First-Matic” demonstra tion machine dispensed at random J . W. M c B rid e , p re s ., A u ro ra along with play money. R. M. Beverage, exec, v .p ., L in c o ln In addition to the main bank location, another “First-Matic” ma chine will be installed at the First National Bank South. Wayne Morris Retires as Mr. Vampola has a BA degree in The bank also awarded gift Overland National Chairman advertising from the University of merchandise to lucky “ M ystery Wayne R. Morris retired as Nebraska-Lincoln. A Springfield na Money Machine" winners. Jumbo chairman of the Overland National tive, he was formerly an account ex postcards were sent to every North Bank, Grand Island, the end of July. ecutive with Ayres & Associates Ad Platte residence and returned to the He began his banking career in vertising in Lincoln. bank where the “Mystery Money 1941 with the Farmers and Mer Machine” verified winning cards. chants Bank in Long Beach, Calif., in the proof department, working up to North Platte Bank an assistan t managership in the Introduces ATMs Bank Sale Pending savings department. An option to purchase controlling The First National Bank & Trust An Ansley native, he returned to Co., North Platte, introduced its pair interest in the Bank of Leigh has Nebraska in 1947 and joined of new “ F irst-M atic’’ automated been extended to a group of farm Overland National as a teller. Since ers and investors, according to that time he progressed through the Thomas J. Bradley, president. offices of the the bank, becoming Heading the purchase group is chairman of the board in 1975. Paul K. Briardy, president of the Citizens National Bank, Wisner. The sale is subject to regulatory Platte Valley State approval. Nebraska Announces Promotions Four promotions have been an nounced by the board of the Platte Valley State Bank & Trust Co., Kearney. They are Mark B. Slaugh ter and Richard J. Wilson, assist ant vice president, and Pat Peter son and Curtis Ritterling, assistant cashier. Messrs. Slaughter and Wilson are graduates of the University of Neb raska. They have been associated with Platte Valley State since 1977 and are active farm loan and man agement officers. Ms. Peterson currently manages the Motor Bank South. She joined the bank in 1973. Mr. Ritterling, a recent Kearney State College grad uate, has worked at the bank on a part-time basis for the last three years. He will be active in computer service and the operations depart ment. New Marketing Officer for First National of Fremont H. W. Hendriksen, president of the First National Bank & Trust Co., Fremont, has announced the appointment of/Kenneth J. Vampola as marketing officer. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Riley Joins Law Firm William H. Riley, former director of banking and finance for the State of Nebraska, has joined a Grand Island law firm as a partner. The firm is now known as Cunning ham, Blackburn, Von Seggern, Liv ingston, Francis and Riley. Receives Commission Peggy E ding to n o f the F irst N a tion al Bank of N orth P latte new acco un t departm ent d e m o n s tra te s th e use o f th e new “ FIR ST-M ATIC ” a u to m a tic te lle r m achine to bank president W illia m D eitem eyer prio r to the week long in tro d u c to ry p ro m o tio n . Michael T. Dobel, Scottsbluff, has received his commission as a national bank examiner. He is a graduate of Rockhurst College, Kansas City, Mo., and has been em ployed by the Comptroller of the Currency as an assistant national bank examiner since 1975. Mr. Do bel will remain headquartered in Scottsbluff. 1979 NBA Calendar S ep t. 16-18 O ct. 9 O ct. 10 O ct. 11 O ct. 25-26 A g C re d it S y m p o siu m T e lle r T r a in in g S y m p o siu m T e lle r T r a in in g S y m p o siu m T e lle r T r a in in g S y m p o siu m E x e c u tiv e C o u n cil M e e tin g L in co ln S c o tts b lu ff N o rth P la tte K e a rn e y O m aha Northwestern Banker, September 1979 84 Omaha A C K E R S N a tio n a l B a n k h a s o c c u p ie d a n e w h e a d q u a r t e r s b u ild in g lo c a te d in a fo rm e r s u p e r m a r k e t a t 2 3 rd a n d L S tr e e ts in th e P h e a r t of S o u th O m a h a . T h is is th e f i r s t c h a n g e o f h e a d q u a r t e r s fo r P a c k e rs sin ce 1905 w h e n th e offices a t 2 4 th a n d O S tr e e ts w e re occupied. On opening day in their new building, Packers National employes paraded behind a band three blocks down the main street of South Omaha from their old quarters. After ribbon-cutting ceremonies by Omaha Mayor A l Veys, pictured with Packers Pres. Dennis W ood, the opening party included a radio broadcast by KYNN announcers from in front of the bank. u » A H * T h e b u ild in g , re m o d e le d a t a cost o f $ 1 .5 m i l l i o n , c o n t a i n s 2 7 ,0 0 0 s q u a re fe e t o f sp ace on tw o lev els. A ccess w ill b e g a in e d fro m b o th th e e a s t a n d w e s t a n d p a r k in g a r e a s a re lo c a te d o n th r e e sid e s of th e b u ild in g . A u to b a n k fa c ilitie s a r e lo c a te d on th e s o u th sid e a n d w ill ac c o m m o d a te five la n e s o f tra ffic s im u lta n e o u s ly . M a y o r Al V eys c u t th e tr a d itio n a l rib b o n a n d w e e k -lo n g a c tiv itie s b e g a n A u g u s t 13 w ith P a c k e r s e m p lo y ees — d re s s e d a s o ld -tim e b a n k e r s — m a r c h in g fro m th e 2 4 th & O lo c a tio n n o r th to th e n e w fa c il ity . D a n c e r s r e p r e s e n t i n g v a r io u s n a tio n a litie s p e rfo rm e d th r o u g h o u t th e w eek . A n u n u s u a l f e a tu r e o f th e b u ild in g is a n a tta c h e d fin a n c ia l c e n te r. S e p a r a te fro m th e b a n k , b u t a p a r t of th e b u ild in g , a r e offices occu p ied by a n in s u ra n c e ag e n c y , a c c o u n ta n t, a t t o r n e y a n d th e b a n k ’s b o n d d e p a r tm e n t. T h e se offices a n d th e b a n k a r e in t e n d e d to p r o v id e t o t a l f i n a n c i a l se rv ic e for P a c k e rs c u sto m e rs. T h e fo rm e r h e a d q u a r te r s a t 2 4 th & O w ill r e m a in o p en a s a w a lk -in fa c il ity . O th e r lo c a tio n s a r e in th e L iv e sto c k E x c h a n g e B u ild in g a n d a t 5 1 st a n d L S tre e ts . P a c k e rs N a tio n a l w a s p u rc h a s e d fro m th e C o a d f a m ily in 19 6 8 by Maynard Dunlap a n d h is so n s Jay a n d Paul. O w n e rs h ip h a s sin c e b e e n v e s te d in o v er 250 b a n k e r s th r o u g h o u t th e s ta te . A t th e tim e of p u rc h a s e by th e D u n la p s , d e p o sits w e re a t $15 m illio n a n d h a v e s in c e g r o w n to n e a r ly $60 m illio n . *** Dennis R. Wood, president of the Packers N ational Bank, has annnounced the following promotions: Robert E. Wolf and Dolores O’Connor, facility manager, and Mark D. Dunlap and Donald F. Holst, loan officer. The facility managers will be located at and be responsible for the activities at the 51st and L Street office. The loan officers will be located at the new headquarters of Packers National at 23rd and L Streets. * * * The board of the Douglas County Bank & Trust Co. has announced the promotion of Larry Ziska to senior vice president, and Stephen Robin son to vice president and manager of A FORMER supermarket located at 23rd and L Streets is the new home office for Packers National Bank. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OMAHA NEWS . . . (Turn to page 90, please) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 86 N e b ra ska N e w s NBA Executive Council Honors Bob Harris at Party M EM BERS o f th e Nebraska Bankers A ss o c ia tio n executive c o u n c il honored B ob H arris at a d in n e r party in L in co ln last m on th , re co gn izin g his five years of service as executive vice president and treasurer o f the NBA. Mr. H arris le ft th a t po st A u g u st 1 to becom e executive vice president at F irst N a tion al L in co ln . A w e lcom e was extended at the d inn er by the executive co u n cil to Roger Beverage, a p ro m in e n t L in co ln attorn ey, w ho has jo in e d the s ta ff fu ll-tim e to succeed Mr. Harris. M r. Harris and his w ife , B e tty Jo, are p ictu re d at le ft, receiving g ifts from NBA Pres. Jim M cB ride, pres., F irst N a t’l., A urora. A t rig h t, Mr. Beverage and his w ife , Paula, are p ictu red w ith M r. and M rs. H arris. Mr. Beverage’s firs t d u ty th a t evening was to report to the executive co u n cil tha t earlie r in the day N BA file d s u it ag ainst F irst Federal Savings and Loan o f L in co ln , c h a lle n g in g le g a lity of its M oneyNOW c h e c k in g /s a v in g s plan (A u g u st 13 W eekly N ew sle tte r).______________________________________________________________________________________________________ _________________________ have voted to change the corpor ation’s name to Irving Bank Cor poration and called for a special The board of directors of Charter shareholders meeting to vote on the New York Corporation, whose matter October 17. principal affiliate is the $10.6 bil According to Gordon T. Wallis, lion-deposit Irving Trust Company, chairman and chief executive offi Irving Trust to Change Holding Company Name cer of both Charter New York and Irving Trust, the proposed change of name will improve recognition of the corporation in the investment community and strengthen the identity of the parent company with its 128-year old principal affiliate. NOW WE’RE AT 24th & L STREET IN OUR BEAUTIFUL NEW BUILDING as w ell as 24th & 0 ,2 9 th & O and 51st & L Two reasons our service is fast and dependable WES BOWEN Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis v m Member FDIC TOM GROVE P acke rs N ational Bank Working with this Big Nebraskaland 87 An NBC V M • Top row : Dave Lebsack, NBC CSC; Dana H enricksen, NBC CSC; John Adams, Chase C ounty Bank, Imperial; William Ligo, NBC CSC; Ed C handler, Nebraska Bank M anagement, K earney; Jo h n M unn, C attle National Bank, Seward; Tom B oatm an, NBC CSC. B ottom row : Sandy Reed, Bank o f Mead, Mead; Gary Goll, First N ational Bank, Falls C ity; Gerald Foulk (A lternate), Overland N ational Bank, G rand Island; Tom Fausch, Farm ers State Bank, A urora. N ot pictu red : Jack M cDermand, M cDonald State Bank, N orth Platte; Mel Bunde, City National Bank, Hastings. A Computer th at Listens to Bankers Like You. NBC has an innovative approach to computer services for our correspondent bankers. You see, NBC knows that our computer services aren’t 100% effective unless they fulfill your needs. That’s why we have developed the NBC Computer Service Advisory Board. This board consists of bankers, like you, giving us input on the computer services we provide. Because they are involved in the daily operations of a bank, these bankers can advise us of what is needed for our computer services. . . before we install it. But it doesn’t stop there. Once our computer services are installed, the Advisory Board lets us know what changes should be made to make our system more efficient. . . and we listen. The result is a workable, practical computer service that listens to you and acts on your advice. It’s different, but it works. . . because of bankers like you. Let us tell you more. 1 t r i B A ll / 1 JfV N a tio n a l B a n k o f Com m erce T h e B a n k w ith th e P lu s Member FDIC Phone: 4 0 2 /4 7 2 -4 4 4 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 88 Doug Alford, president of Com merce Savings Lincoln, Inc., has v announced the appointment of Mark H. Haley as assistant vice president ■ and branch manager of the 40th and South location. Before joining Commerce Savings, Mr. Haley was a personal banking officer at the National Bank of t~ Commerce here. He had been employed with NBC in different lending areas since 1971. * *** T HE board of First National Lin coln Corp. has announced the promotion of H. J. “Jack” Daw son to manager of the trust and investment divi sion of First Na tional Bank & Trust Company. He succeeds Rob ert D. Northrop, who resigned last month. H- J- DAWS0N Mr. Dawson, who has been vice president in charge of trust marketing for the bank since 1975, was formerly a life underwriter and division manager for Prudential Insurance Company. He is a Chartered Life Underwriter and is widely recognized throughout the state as an authority and public speaker on estate planning. *** Terry I. Jones, owner of Jones Enterprises, Lincoln, has been elec ted a director of Citibank & Trust Company of Lincoln, according to Roger L. Anderson, chairman. Jones Enterprises consists of oil distribu tion, real estate and farming. *** The First National Bank & Trust Company has filed an application with the regional administrator of national banks to establish custom er-bank communication terminals at six Lincoln locations: 7041 “O” St., 13th and High, 1432 N. Cotner, 27th and Stockwell, 66th & “O” and 140 Capitol Beach Blvd. *** Cornhusker Bank has received consent from the FDIC to establish remote service facilities at Wag ner’s IGA Grocery Store and at the Jack & Jill Grocery Store. 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 S O U T H 16 T H S T R E E T - O M A H A , N E B R A S K A 6 8 1 0 8 In N e b ra sk a Call 4 0 2 -3 4 5 -3 1 6 2 O u t of S ta te Call W ats Line 1 -8 0 0 -2 2 8 -9 2 4 6 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis James Stuart Jr., president of the Commerce Group companies, an nounced recently that the combined earnings of the affiliated companies for the six month period ended June 30, 1979, increased 24%, compared to the same period a year ago. Com- ^ bined earnings for the first six months of 1979 w€;re $3,266,194, compared to $2,638,391 for the first six months of 1978. Elected to Board Seat At First Nat’l., Hastings John F. Farrell has been elected , to the board of directors of the First National Bank, Hastings. Mr. Farrell, senior vice president of loans, has been secretary to the board since January, 1978. He is re-J sponsible for the commercial, in stalment and real estate lending areas. Before joining First National as vice president of commercial loans in 1972, he was vice president of commercial loans at Northwestern " National Bank of Omaha. Announce Staff Changes Tom Ross has been elected execu tive vice president and cashier of^ the Nebraska State Bank, South Sioux City. A graduate of Kearney State College with a BS degree in business administration, he joined the bank in 1972 as an instalment loan offi- A cer. He was named cashier in 1975 and vice president and cashier in 1978. 4 John M. Paulson has resigned as executive vice president of the bank to pursue other business interests in Vermillion. He had been associ- v ated with Nebraska State since 1967 and was named executive vice president in 1975. Specialists in helping you maximize the profit potential of your investment portfolio... JA M E S G. B U L LO C K DW AIN C. C AR LS O N R A Y M O N D J. M cM A H O N JA Y D. C A L LA H A N JO H N W A LT E R S S A M U E L A. W H ITW O R TH FIRST NATIONAL LINCOLN 13th & M Sts. • P.O. B o x 81008 • L in c o ln , NE 68501 P h o n e : (800) 742-7376 M e m b e r, F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 90 N e b ra ska N e w s Stamford Bank Moves to New Quarters THE S tam ford Bank opened fo r bu sin ess in th is new b u ild in g in June fo llo w in g an open house attended by som e 700 cu sto m e rs and frie n d s. H E S ta m fo rd B a n k m o v e d in to its n e w fa c ility J u n e 1 fo llo w in g a n o p en h o u s e in M ay . A tte n d e d b y n e a r ly 700 c u s to m e rs a n d frie n d s , th e o p e n in g a lso m a r k e d th e o b s e rv a n c e o f 89 y e a r s o f co n t i n u o u s b a n k i n g s e r v i c e to t h e c o m m u n ity . T h e n e w b u ild in g f e a tu r e s a d riv e in w in d o w , n ig h t d e p o s ito ry , i n s u r a n c e c e n te r, tw o lo a n offices, f ir e T p ro o f s to ra g e ro o m a n d a n em p lo y ee lo u n g e . C o n ta in in g 2 ,4 6 0 s q u a r e fe e t on th e g ro u n d le v e l a n d 1,008 s q u a re fe e t o f b a s e m e n t a re a , th e fa c ility is c o n s tru c te d of m u lti-c o lo r b ric k a n d th e ro o f f e a tu r e s s h a k e s h in g le s . T h e b a n k is s itu a te d on a la rg e lo t la n d s c a p e d w ith g r a s s , t r e e s a n d s h u r b s n a t i v e to S o u t h C e n t r a l N e b ra s k a . Banks Will Need $20 Billion New Capital N O T H E R c a u tio n c o n c e rn in g th e n e e d for c o n tin u in g in c re a s e s in c a p ita l b y c o m m e rc ia l b a n k s h a s b e e n r a is e d b y I r v in g T r u s t C o m p a n y , N ew Y o rk . In a s tu d y p re p a re d b y its s ta ff, I r v in g T r u s t s a y s th e b a n k in g in d u s tr y w ill n e e d $20 b il lio n in n e w c a p ita l d u r in g th e n e x t five y e a rs , n e a r ly d o u b le th e a m o u n t ra is e d sin c e 1974. A s a b a s is fo r th e s tu d y , I r v in g a s s u m e d b a n k c a p ita l w ill r e m a in a t le a s t 6.2% o f to ta l a s s e ts . A lso, th e s tu d y re fle c ts a g ro w th in b a n k to ta l a s s e ts o f 10.5% , s o m e w h a t h ig h e r t h a n th e 10% c o m p o u n d g ro w th r a te s o f th e la s t fiv e y e a rs . M a n y i n t e r m e d i a t e to la r g e r e g io n a l b a n k s , w ith a s s e ts b e tw e e n $500 m illio n a n d $5 b illio n , a r e e x p ected to se e k p r iv a te d e b t f in a n c in g in th e n e x t few y e a rs , th e b a n k sa id . T h e r e p o r t s a id p r iv a te d e b t f in a n c i n g w o u ld b e a v a i l a b l e fo r m o st b a n k s o f t h i s size for tw o r e a sons. F ir s t, t h is g ro u p o f b a n k s h a s a m o d e s t a m o u n t o f le v e r a g e . A lso , m a n y p r iv a te le n d e r s h a v e becom e m o re c o m fo rta b le w ith b a n k c re d its a n d h a v e d e m o n s tra te d a g re a te r w illin g n e s s to le n d to re g io n a l b a n k s . T h e I r v in g r e p o r t n o te d t h a t r e c e n tly s o m e s m a l l e r b a n k s h a v e p laced p r iv a te d e b t. H o w e v e r, w h e n r a te s d ro p a n d d e m a n d fro m la r g e r b a n k s a n d o th e r ty p e s o f c o m p a n ie s A Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a c c e le ra te , sm a ll b a n k s could w ell be sq u e e z e d o u t of th is m a r k e t. T h e r e p o r t s a id t h e t r a d i t i o n a l fo rm o f fin a n c in g , com m o n e q u ity , is e x p e c te d to be th e m o st p re v a le n tly u se d by sm a ll b a n k s d u r in g th e n e x t five y e a rs. B of A Buys Spanish Bank Bank of America has assumed full control of Banco Comercial para America (Ameribank) in Madrid, Spain, after acquiring the half-inter est of Banco de Santander, the other shareholder. Ameribank, founded jointly in 1965 by Bank of America New York and Banco de Santander, will be renamed Bank of America (España) S.A. upon approval of the Spanish authorities. With headquarters in Madrid, Ameribank has branches in Barce lona, Bilbao and Valencia. administrator for Region VII, which is headquartered in Kansas v City and encompasses Iowa, Ne braska, Missouri and Kansas. Con rad E. Lawlor, who has been admin istrator for Region VII, will move to Mr. Lupkey’s former post in Re gion VIII, which is headquartered in Denver and covers Colorado, Utah, Wyoming, Montana, North Dakota and South Dakota. Since May of this year, Mr. Lup key also has been acting regional administrator for Region VI, head quartered in Dallas. That post now has been filled by Mercurio Mar tinez, Jr. The moves are part of SBA pol icy to use rotation “to share the ex perience and the management initi atives of administrators’’ with other regions, Mr. Weaver stated. * Mr. Lawlor, a native of Iowa, headed the Des Moines office as branch manager since joining SBA in 1964, then was transferred to the regional office in Kansas and later named regional administrator. He and his region won several SBA awards during that time. Mr. Lupkey is a native of Missouri and previously worked in federal departments in Kansas City. OMAHA NEWS . . . (Continued from page 84) the instalment loan department. Mr. Ziska joined the bank in 1974 as a financial manager and as a part of the bank’s management division. He is now responsible for supervision of trust department operations, prepar ation of financial reports to L. ZISKA S. ROBINSON stockholders and assisting in overall SBA Reassigns 2 Midwest management of bank operations. He Regional Administrators has a degree in business from the A. Vernon Weaver, administra University of Nebraska-Omaha and tors of the Small Business Admin received his CPA certificate in 1968. Mr. Robinson joined the bank in istration in Washington, D.C., has announced the reassignment and 1974 as an instalment loan officer andw rotation of two area SBA officials, was promoted to assistant cashier in 1975. He graduated from Creighton effective September 9. Dean Lupkey becomes regional University in 1971. 91 ■ WILLIAM MARCH President C. W. POORE. JR. Executive V.P WM. (Bill) ABTS Assistant V.P. \ Vice President and Counsel Vice President Vice President Sec.-Treas IF THE NAME WAYNE A. RASMUSS Assistant Sec. OF THE GAME IS THOMAS B. MEHL Assistant V.P. MUNICIPAL BONDS MIKE MULLEN Representative THE NAME OF JOHN H. CRAVENS Representative DAVE DUNN THE COMPANY IS Representative SCHWESER MIKE DRAHOTA MICKEY KRUPINSKY Representative Representative We d id n ’t in ve n t m unicipal bonds, but w e ’ve had a lot to do w ith th e ir g ro w th and d evelop m e nt. In o u r 40 ye a r h isto ry w e ’ve handled hundreds of issues, h e lp in g g o ve rn m e n ta l su b division s build to b e tte r serve th e ir co n stitu e n ts. And that's w hy we can o ffe r inform ed advice and counsel on ta x-fre e m unicipal bonds to you and y o u r custom ers. W e’re also e x p e rt in bank bond p o rtfo lio analysis. G ive us a call, let us show you w hat S chw eser S e rvice can do fo r 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 IN V E S T M E N T B A N K E R S -U N D E R W R IT E R S M e m b e r o f th e S e c u ritie s In v e s to r P ro te c tio n C o rp o ra tio n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S1PC Northwestern Banker, September 1979 92 Appointed at Sheridan Evelyn Clark was recently appoint ed assistant vice president in the real estate department at First Wyoming Bank, N.A., Sheridan, according to Everett J. Cassidy, president. Mrs. Clark started her banking career at the Gordon (Neb.) State Bank. She later held positions at the Rushmore State Bank and the First National Bank of the Black Hills in Rapid City, S.D. For the last seven years, she has been in the real estate department at Rushmore as real estate officer and compliance officer. New Board of Directors Announced at Wyoming State Bernard R. Weber, chairman of the Wyoming State Bank, Cheyenne, has announced the election of a new board Eugene A. Rodgers, president, E. A. Rodgers Co., Inc. The Wyoming State Bank, which opened for business June 19, 1978, was organized by the directors of the First N ational Bank & Trust Company of Wyoming, Cheyenne, who have served as directors of both banks until taking the recent action to establish separate boards for the two banks. Mr. Weber said the organizers of directors. In addition to Mr. Weber believe a separate board will increase and Auburn W. Dowdy, who is the vitality of Wyoming State Bank. president of the bank, the following have been elected: L. M. Cheesbrough, president, Promoted at Casper Bank Cheesbrough, Clary & Associates; H e n ry A. H itc h , p r e s id e n t o f th e Jack N. F a ssett, president, F ir s t N a tio n a l B a n k o f C a sp e r, h a s Fassett-Nickel Ford; Keith E. Hanson, managerial vice a n n o u n c e d t h e president and legal counsel, Laramie e le c tio n o f D o ttie County Abstract and Title Company; N e e ly a s a s s i s Donald J. Lawler, M.D., partner, t a n t o p e r a t i o n s Cheyenne Eye Clinic, ophthalmolo officer. M rs. N e e ly h a s gist, and a member of the board of directors, Crookston National Bank, b e e n e m p lo y e d by th e b a n k for Crookston, Minn.; R. Ron Long, president, Old th e la s t 17 y e a rs a n d h a s w o rk e d Faithful Life Insurance Company; Harold R. Moreland, president, a s a t e l l e r , i n D. NEELY c le a rin g & re Moreland Wholesale Company; William H. Peth, president, t u r n ite m s a n d , m o s t r e c e n tly , a s Fowler and Peth, Cheyenne, Casper te lle r s u p e rv is o r a n d te lle r tr a in in g in s tru c to r. and Denver, and Montana R. F. B urke , pres., M issoula J . T . C adby, exec, v .p ., Helena Elected New Director George M. Leland, president of First Bank-Western Montana Mis soula, has announced the election of H. Bruce Maclay to the board of directors. Mr. Maclay is a partner in the Maclay and Son cattle ranch near Florence. He graduated from the University of Montana in 1951. Elected Vice President at Liberty Bank of Montana Robert M. Dauwalder, president of the Liberty Bank of Montana, Chester, has announced the election Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of Howard C. Torgerson as vice president. Mr. Torgerson started his banking career in 1974 at Blaine Bank of Montana, Chinook. He was elected assistant cashier in January, 1976, and transferred to Liberty Bank in March, 1976. He was elected cashier in January, 1978. A 1974 graduate of the University of Montana, he has a bachelors degree in finance. Named at Helena Branch Of Minneapolis Fed John D. Johnson, vice president in charge of the Helena branch of the Federal Reserve Bank of Minne apolis since 1975, has resigned that position to accept a post as a senior vice president of the Federal Re serve Bank of P h ila d e lp h ia . Robert F. McN ellis has been F- M cN ELLIS promoted to assistant vice president for check, accounting, and loan operations at Helena. No successor to Mr. Johnson has been named at this time. Mr. M cN ellis, who had been^ manager of the branch check and accounting departments, has a BS degree in business adm inistration from the University of Montana and an MBA degree from Indiana University. He succeeds Ronald O. Hostad who returned to the Federal Reserve Bank of M inneapolis as assistant vice president for special projects. 93 Wfe’re one of the ten largest banks in the country. Only one other California Bank can say that. In 1871, cowhides and tallow were still the media of exchange in California. Since then, Security Pacific Bank and California have come a long way. Today we’re the second largest branch hanking system in the United States. The quality and range of our services are such that 90 of the top 100 corpora tions in the United States are doing business with Security Pacific Bank. We have offices or affiliates in the major financial centers of the world. Our computerized business services are second to none. And should you need a hank to handle the lion’s share of your loan syndication, we can do th a t too. Quality of service, quality of s e r v ic e s : two reasons why so many corporations choose Security Pacific Bank. SECURITY PACIFIC BANK © 1 9 7 7 SPNB M E M B E R FD IC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 94 W E ARE BJmN I E R S’ B iÜ!N t E R S l 1 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. I Bankers Trust ;¡Ü;;¡si ¡:¡¡¡j¡¡¡¡ Correspondent Bank Department Des Moines, Iowa 50304 Member: FDIC/Federal Reserve System Use our toll-free WATS line: 800-362-1688 Des M oines’ largest lo cally owned, independent bank John Murano, Correspondent Banking Officer Come Crow With us Ben Eilders, Senior Vice President Don Carmody, Vice President T ; i Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ••• 95 fr to w a B a n k e rs A ss o c ia tio n 93rd A n n u al C o n ven tio n Des Moines Civic Center September 23-25, 1979 NOTHER first is in store for the Iowa Bankers Association when it holds A its 93rd annual convention in Des Moines September 23-25. The entire convention will be staged at the recently opened Des Moines Civic Center, H. RAND PETERSEN P resident located on the square block bounded by Locust and Walnut Streets and Second and Third Streets at the east end of the downtown Loop area. It will be the first major convention scheduled in the exciting new Civic Center, which provides fixed seating for 2,700 persons. Appropriately, the theme selected for this year’s convention, “Sign of the Times, ” center's on changes that are occurring and those to come in the decade of the 1980s, with speakers gearing their addresses to this look at the future. Since the Civic Center facilities do not offer food service, the Ag Breakfast preceding the annual Monday morning Ag Conference will not be served. Instead, the Ag Conference will commence on the first morning with the program of three speakers as noted below. Spacious display facilities in the Civic Center do allow, however, for 30 or more display booths that will be staffed by banks, suppliers and manufacturers. Presiding at the convention will be IBA President H. Rand Petersen, president of The Shelby County State Bank, Harlan. Serving with him the past year have been Leslie H. Olson, president of the Toy National Bank, Sioux City, as vice president and president-elect, and Edward L. Tubbs, president of the Maquoketa State Bank, as treasurer. Neil Milner is executive vice president in charge of the IBA administrative offices in Des Moines. The complete program follows: Sunday, September 23 P.M. 3:00 8:30 LE S LIE H . OLSON Vice President Monday, September 24 AM. 9:00 P.M. 1:30 EDW ARD L. TUBBS Treasurer https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Registration and exhibits open to 6:00 p.m. Bankers Night Theater Party —Civic Center Auditorium. Featuring: The New Kingston Trio and Skiles & Henderson. Welcome—Audio/Visual Presentation. 31st Annual Agricultural Program. Presiding: Larry Reding, chair man, IBA Agricultural Division; vice president, Sac City State Bank. Dr. Clifford Hardin, former U.S. Secretary of Agriculture and cur rently vice chairman, Ralston Purina Co., St. Louis. Clayton Yeutter, president, Chicago Mercantile Exchange, Chicago. Dr. Owen J. Newlin, vice president, Pioneer Hi-Bred International, Inc., Des Moines. Adjournment at noon. General Session—Civic Center. Presiding: H. Rand Petersen, president, Iowa Bankers Association; president, The Shelby County State Bank, Harlan. Gerald Lowrie, executive director of government relations, American Bankers Association, Washington, D.C. Annual Meeting—Iowa Bankers Insurance & Services, Inc. Jessica Savitch, NBC News anchorwoman. Adjournment at 5:00 p.m. Northwestern Banker, September 1979 96 Io w a N e w s 8:00 to midnight. Monday Night Dances at Hotel Savery, across from Civic Center Plaza. Dancing to fabulous sounds of the Big Band era under the direction of Karl Killinger in Terrace Ballroom. Dancing to the rock band “Sierra,” featuring a review of top hits from the 50’s to modern disco, in main ballroom. Tuesday, September 25 A.M. 9:00 NEIL M ILNER Exec. V.P. 11:30 P.M. 1:30 CLIFFOR D HARDIN 6:30 8:30 General Session—Civic Center. Presiding: IB A President Petersen. Louis Rukeyser, host of “Wall Street Week” television program, New York. Annual Meeting—Iowa Transfer System. Llewellyn Jenkins, executive vice president, Manufacturers Hanover Trust Company, New York. Annual Meeting—Iowa Members, American Bankers Associationelection to Governing Council, report. Thomas R. Smith, treasurer, American Bankers Association; presi dent, Fidelity Brenton Bank & Trust Co., Marshalltown. Adjournment at noon. 50 Year Banker/Past Officer Reception and Luncheon—Hotel Savery. General Session—Civic Center. Presiding: IBA President Petersen. Frank Abagnale, white collar crime specialist; once one of the world’s most-sought con men and fraudulent check writers. H. Rand Petersen—President’s Address. Annual Meeting—Iowa Bankers Association. Dr. Robert Schuller, Pastor of Garden Grove Community Church, Orange, Calif. Adjournment by 5:00 p.m. President’s Reception/Clambake—Civic Center and Nollen Plaza. Evening of Free Entertainment in Civic Center Auditorium—Featur ing: The Serendipity Singers. CLAYTO N YEUTTER GERALD LOW RIE OWEN J. NEW LIN Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LLEW ELLYN JEN KIN S JESSICA SAVITCH TH O M AS R. SMITH LOUIS RUKEYSER DR. ROBERT SCHULLER 97 V a lle y B a n k While you’re in Des Moines for the Iowa B ankers Conven tion, take tim e to stop and see the new Valley National Bank at Sixth and Walnut. The Valley Bank Building is an A rt Deco m asterpiece, com pleted in 1932, and has been listed in the N ational R egister of H istoric Places. At Valley, you’ll find old fashioned banking friendliness, com bined with the m ost m odern facilities, equipm ent, and methods. We invite you to visit our new home, and to do your cor respondent banking with us. ...w ere w ith you all th e w ay Valley National Bank & DES MOINES, IOWA 50304 Main O ffice-Sixth and Walnut https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA’ BANK M em ber FDIC Larry A. Bergemann Vice President (515)245-6145 Northwestern Banker, September 1979 98 Iowa N ew s Entertainers for Iowa Bankers Convention The New K in g sto n T rio The Relative S ounds Welcome to the 93rd Annual IBA Convention You are invited to join us in our H o s p ita lity S u ite R a m a d a In n , 929 3rd S tr e e t (D ow n tow n ) Contact our representatives as we have several plans o f operation which could be a service to your customers. The company with a friendly handshake. O LIFE ANNUITIES ENDOWMENTS INCOME DISABILITY CONTINENTAL WESTERN LIFE INSURANCE COMPANY Phone (515) 278-5941 Home Office: 11201 Douglas Avenue (Interstate 35-80), Des Moines, Iowa 50322 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 99 Max Roy Kathy Hardy Vice President Corres. Banking Off. We’re Heading For Des Moines. . . The bankers from ‘Drovers Country’ are on our way to Des Moines to join you at your 93rd 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! Drovers Bank of Chicago 47th Street & A sh la n d Avenue, C h ica g o , IL 60609 (312) 927-7000 Member: F.D .I.C., Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 100 You 0 1 2 3 4 5 b l JO HN DOE ANYTOWN, IOWA Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 2 3 4 5 b 1 101 A g o o d d e a l to r y o u r c u s to m e r. A -b e t t e r o n e fo r y o u . Bank transactions used to mean paper work. An inconvenience for your custom ers, a terrible expense for you. This is just one of the problems INSTANTACCESS can solve for you. For your custom er, INSTANTACCESS means great banking con venience — a personalized card that can be used at an off-premise terminal or even at the bank. And it means 24 hour banking — as well as a great number of locations to choose from. For you, it means even more. INSTANT-ACCESS elim inates checks, deposit slips, withdrawal slips and cash tickets. Consider how much your operating costs will be reduced with the elimina tion of all this paperwork. And there are many other things to consider, too. INSTANT-ACCESS is an on-line tell er system, as well as an EFT service, that is revolutionizing the banking indus try. Besides saving you the wasted time and expense of unnecessary paper work, INSTANT-ACCESS works as a very effective advertising tool. Everyone wants in on the latest de velopment of more effi cient banking. When y o u r b a n k of f er s INSTANT-ACCESS, you’ll attract new cus- tomers and solidify old ones. Make banking easy for your custom ers. Reduce your total operating costs. Be a banking innovator in your mar1^01 INSTANT-ACCESS lets you do all these things. A good deal for your customer. A better one for you. For more information, call Joe Phernetton or ask for BICS marketing at B IC S Banks of Iowa Computer Services a A B A N K S OF IO W A ’ S U B S ID IA R Y https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 102 Iowa N ew s ££%Â# HEN commercial bankers ■ ■ complain about many of tod ay’s questionable laws and regulations affecting the banking business, they should stop and ask themselves just how much they have personally contributed to the political process.” This is the statement made in an exclusive interview with the pub lisher of the N o r t h w e s t e r n B a n k e r by H. Rand Petersen, president of the Iowa Bankers A ssociation and president of the Shelby County State Bank, Harlan. Mr. Petersen says that it is inexcusable that bankers do not have 100% participation in BankPac. He feels that federal and state goals for commercial bankers should be as much as three times greater than at present. He suggests that if every bank president will contribute $100 to each Congressional candidate of his or her choice and $25 or $50 to candidates for the state legislature commercial banking will receive more favorable treatment. Relying on his past experience in politics, he stresses the importance of making contributions before a candidate asks for one and before primary elections. He is currently a member of the National Campaign Committee for John B. Connally, nationally-known presidential candi date from Texas. »11 W m - - 19 Banking and the Political Process W Ê È IM 4; An interview with H. Rand Petersen, President, Iowa Bankers Association By MALCOLM FREELAND Publisher loans and 11% for farm operating community banks, Mr. Petersen said loans. that community banks have some Higher interest rates will require definite advantages over money adjustments on the part of both the center banks in that they can be more banks and the borrower, according to flexible in controlling costs. He added Mr. Petersen. He is not in favor of that a ctivity is less in many retaining Regulation Q because “the community banks, which serves to saver has been subsidizing the reduce expenses. Shelby County borrower long enough.” He feels that State Bank in Harlan has 19 if and when Regulation Q is removed, employes, and a substantial amount a national usury law will have to be of its day-to-day activity is Goals included as part of the legislation so conducted through a motor bank. The 1979 goal set by the American as to assure a fair return for banks in Continuing to cooperate with the Bankers Association for BankPac is states with restrictive laws. farmer and rancher will continue to be $651,970. Many states, including a major objective for most commun Mr. Petersen’s home state, are Competition ity bankers in the m iddlew est, completing their individual federal Competition from savings and loan according to Mr. Petersen. He shows goals and are continuing their work associations, credit unions and concern over rising land prices and on separate goals for candidates government agencies will increase, farm debt, but he adds that even within their respective states. according to Mr. Petersen—but he though some farmers owe two or During 1978, Henry Reuss (D- feels that if all financial institutions three times what they originally paid W is.), chairman of the House play by the same rules and the for their farm, they do not seem to be Banking Committee, received only differential on savings in removed, concerned about it. $200 from the national BankPac commercial banks will continue to Long-term prospects for commun while receiving $5,800 from S&L grow. Harlan has a $70 million home- ity banks will depend on how some of Pac’s; $2,300 from credit union Pac’s, based savings and loan and a new the new laws are written, according to and $8,750 from labor Pac’s. Fernand branch from Council Bluffs. Shelby Mr. Petersen. He believes that if J. St. Germain (D-R.I.), subcommit County State Bank and Harlan some of the current regulations are tee chairman, received nothing from National Bank, the two banks in not sim plified, many independent commercial banking while receiving town, are each about $31 million in banks will be sold to multi-bank $11,900 from S&L Pac’s; $3,200 from deposits. The banks have shown holding companies. If nation-wide credit union Pac’s, and $11,950 from about the same growth pattern over branch banking is legalized, and labor Pac’s. the past 10 years, each doubling in Regulation Q is removed w ithout Turning to the current scene, Mr. size. subsequent relief in usury law s, Petersen emphasizes the importance Asked if he thought his bank would com m unity banks may find it of commercial banks m axim izing double in size over the next 10 years, difficult to compete. The one best profits by charging realistic rates for Mr. Petersen said, “ I hope not investment in the future, concludes money and services. His bank is because it will be due to inflation.” Mr. Petersen, is to “make a personal currently charging IOV % for cattle Looking at the future for contribution to the political process. ” 2 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 103 Our correspondent services.. USE ONE OR USE THEN ALL. Choose one service or as many as you want We’ll tailor a correspondent package for your specific needs . . . and deliver! ITEM CLEARANCE You get an accurate, efficient system for obtaining the best availability of your funds to help increase the profitability of your bank. LOANS You get a full range of loan services including liquidity and overline loans, assistance with your ag loans, commercial loans and others. DATA PROCESSING You get the speed and efficiency of the Banks of Iowa Gary Stevenson Vice President 712/277-0618 computers, plus the most successful EFTS/Instant Access processor in the territory. INVESTMENTS You get experienced help and fast action in handling Federal funds transactions, money tranfers, security purchases and sales. CREDIT CARD SERVICES You get a total program for both Master Charge and Visa that includes card issuing, pro- cessing, account servicing, and assistance with merchant calls. And you get the geographic advantages of being closer to your Bank Card Center. TRUSTACCOUNTS You get an entire department of Trust professionals to assist you in meeting your client’s needs. GENERAL CONSULTING You get our guarantee that whether you need a specific service, or just an idea or two, First National is always ready to help. Doug Schmidt Correspondent Officer 712/277-0614 SEE YOU AT THE IOWA BANKERS CONVENTION AND AT THE SOUTH DAKOTAGROUP MEETINGS. First National Bank m MEMBER FDIC • 712-277-1500 • Sioux City, Iowa 51101 • A ‘BANKS OF IOWA BANK’ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 1 04 Iowa N ew s Group Chairmen Report Area Conditions G ROUP chairmen of the Iowa 1979 will also be profitable, but to a Bankers Association have sub lesser degree. Crop prospects are mitted the following reports on farm good with more rain needed for top and business conditions in their production. areas: Business conditions remain slug gish after the loss of the Zenith and Group 1 Dynatech m anufacturing plants. Iowa Beef Processors’ enormous Chairman Howard M. Logan production facilities add a big plus to President the local employment situation with First Trust & Savings Bank many of their workers coming from Moville Group 1 agricultural area is the entire Group 1 area. prospering, with the improvement in net income from Group 2 the meat produc Chairman Earl J. Underbrink ers adding liquid President ity to loan portfo First National Bank lios and encour Fort Dodge aging investment Corn is in excellent condition with in additional pro the exception of parts of Calhoun and duction facilities. western Webster C a ttle feed in g Counties. These w as e x tr e m e ly areas have su f p r o fita b le th e first half of the year and currently has fered from stand collapsed back to a break-even figure ing water and on calves purchased last fall, with s e v e r e s to r m feeder cattle purchased in the winter damage caused and spring showing delivery from the by hail and tor nadoes. Projec west at $1 per lb. Hog producers have enjoyed record ted corn yields net returns for many, many months for the Group 2 and evidence of over-expansion of area are similiar to 1978 if present facilities is over every hill. Each hog growing conditions continue. Soybeans are also in excellent producer is optimistic concerning his ability to bear losses longer than his condition with crop maturity behind neighbor and so it is unlikely that last year and yields to be down from profitable operations will be estab 1978. Grain marketing is being highly lished for a long period of time. Turkey producers made high affected by transportation problems. profits last year and it appears that In our area, the corn price is 55 cents DON'T FORGET US AT U.S. CHECKBOOK CO. f o r Wehave Plentyof “TIME” for you! AND IT WON T BE LONG UNTIL OUR SALESMAN WILL BE AROUND' A L L • • • • y o u r B a n k S u p p lie s Bank Printing C hecks C om puter Supplies Office N eeds The “WORKS” you need to RUN your bank United States Check Book Company 1201 S O U T H 16 T H S T R E E T - O M A H A , N E B R A S K A 6 6 1 0 8 O u t of S ta te Call W ats Line 1 -8 0 0 -2 2 8 -9 2 4 6 In N e b ra sk a Call 4 0 2 -3 4 5 -3 1 6 2 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis under the nearby future price. Rail transportation is especially ham pered in Hancock, W right and Humboldt Counties. Delivery of grain from the farm in these areas is being deferred and some elevators have discontinued bidding on corn until transportation improves. Local livestock producers have generally been overly optimistic and have fed larger numbers of cattle and hogs to heavier weights in anticipa tion of some price recovery as evidenced by volum es of recent marketings at lower prices. We feel that our immediate area has increased permanent hog facility construction, such as new farrowing and finishing barns, enough to support higher production in the future. Therefore, would not expect much price improvement until national marketings drop later this fall. Sellers of fat cattle are disappoint ed with present prices as they have seen enormous profit erosion in unhedged cattle recently because of both lower cattle prices and higher grain prices. However, longer range cattle price predictions are much rosier than for hogs, with some estimates above $80 per hundred weight for next year. General business conditions are good with no major signs of recession. Retail sales are slow with inventories moving only as a result of large mark downs, especially in seasonal goods, appliances and full-size automobiles. Manufacturing is stable with sales strong in most industries. Construc tion is being affected by the high cost of money and materials. Sales of homes are down an estimated 10% from last year. In general, conditions are good with employment strong. Group 3 Chairman O. J. Tomson President Citizens National Bank Charles City The prevailing business conditions in northeast Iowa would have to be c a ta g o r iz e d as good. Retailers seem to be equal to or ahead of last year in sales and m anufacturing firms existing in this part of the state, which are basically agricul turally oriented, 105 Bemie Miller doesn’t need a lot of coaching. Leo Kane, Christy Armstrong and Bob Scott provide Bernie Miller with expert, professional back-up in his correspondent activities. But that doesn't mean Bernie has to call time out every time you ask him for a decision. His 26 years in the business have provided Bernie with the expertise to call his own plays. He can handle all your needs, in your office, on his own. Whether the issue involves Federal Reserve services, over-line loan participations, collections or advice on investment portfolios, you can count on Bernie to have an answer, w e do. And, he's made our's a winning team. we'll see you at the lowa Bankers Association's annual meeting at the Des Moines Civic Center September 23-25. Am erkanliTrust 0 Savings Danl^ The Dank^of Opportunity Town Clock Plaza Dubuque, Iowa 52001 Phone: 319/582-1841 MEMBER: FEDERAL DEPOSIT INSURANCE CORPORATION & FEDERAL RESERVE SYSTEM https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 106 Iowa N ew s seem to be operating quite normally. One exception, perhaps, is the RV industry in Forest City which continues to be plagued by the energy shortage. Production has been curtailed significantly at Winnebago Indus tries with commensurate layoffs. Automobile dealers also are experi encing some difficulties in attempt ing to clean out their inventory of ’79 models, particularly the larger sized vehicles. Wide variances in commodity prices and abnormal weather condi tions earlier in the season left many North Iowa farmers somewhat confused and frustrated. Cash flow projections have been challenged as operating costs have increased and in many cases additional operating funds have been required, pushing farm loans to new highs. Livestock farmers took advantage ROBERT J. KIRKE, Pres. ^ ¡h a w , of high prices during the first half of 1979, and used the extra profits to either reduce debt or as downpaym ent money for new capital improvements. New debt has been used to build for expansion, as well as for more convenience. The hard winter convinced many livestock producers to provide confinement shelter. Mid-year prices have now decreased to the point where sale proceeds do not equal purchase and production costs. This is cause for concern over the repayment ability of the livestock producer, and the second source of repayment, particu larly grain, may have to be tapped. This brings us to the question of grain marketing. Greed has prevailed this summer and farmers that waited for the extra two cents are now looking at prices 40 cents lower on corn and $1 lower on soybeans. Transportation problems have added ROBERT P. DORWEILER, Vice President jy jc D e r m o tt & Q \ ) . MUNICIPAL BONDS EXCLUSIVELY Underwriters, Distributors, <&Consultants for General Market Municipal Bonds and Industrial Revenue Bonds 518 Stephens Bldg. DES Phone 515—243-6119 MOINES. IOWA 50 309 HAWKEYE BANCORPORATION Iowa’s Shining Banking Organization 16 banks in 42 locations committed to serving their local communities with the combined resources provided by over $40 million in capital and $600 million in assets. H aw keye B a n c o rp o ra tio n — Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S te p h e n s B ld g . , D e s M o in e s — 5 1 5 /2 8 4 - 1 9 3 0 to the confusion. There is much concern over the ability to move the anticipated bumper crop of 1979. The importance of a planned marketing program has once again been stressed. We need to focus in on an educational program and prevent the continuation of seeing two-thirds of all crops being sold in the low one-third of the annual price range. Group 5 Chairman Richard Randall President Dunlap Savings Bank Southwest Iowa and the local area look great. Our crops have never been better. We had more than usual rainfall the last part of July. Our c u sto m ers are optimistic about the crop pro spects. In our area there is consid e r a b le li v e stock feeding and most agree that cheap feed is not generally good for the livestock feeding business. In spite of high production costs in relation to crop prices, the good farmers are making money. General business conditions are much more closely related to agriculture than to the poor national business trends. Our southwest Iowa people are good workers and will get along fine. It would be helpful if the non-productive government spenders and bureaucrats would get off the backs of our people and leave some incentive to work and be productive. Group 4 Chairman Churchill T. Williams Chairman Oelwein State Bank General crop conditions look good to excellent with adequate sub-soil m oisture as of m id -A u g u s t. Corn and so y bean progress is a week to 10 days behind last year due to late plant ings this spring. Corn prices have come off seasonal highs but should remain above 2.20, but probably below the reserve release level. An indicated 12% rise in soybean What can Iowa’s largest bond and investment department do for you? s. What about other types of investments? We have up-to-the-minute electronic access to money market information to help you in considering government securities, repos, commercial paper, fed funds and negotiated certificates of deposit. Start with the fact that we actively underwrite municipal bond issues throughout Iowa, and therefore can offer a broad portfolio of tax-free bonds with maturities and yields to meet your needs. And perhaps m ost important, the lowa-Des Moines offers you an experienced, thoroughly professional staff to give your portfolio the individual attention it deserves. # With that in mind, right now might be a good time to review your portfolio for tax swaps to upgrade your investment mix. There could be advantages in taking a tax loss this year in order to invest in higher yielding bonds. j Put it all together and you know where to go to get a lot of help for your money, in the money market, right here in Iowa. IOWA-. nesMoines A A N A T IO N A L B A N K You can get a lot o f help for your money. Member FDIC An Affiliate of Northwest Bancorporation (BANCO) 7th & Walnut, Des Moines, Iowa 50304 (515)245-3131 -i* Lynn Horak https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis John Hunt Janine Young John Johnson Barb Estey Roger Mahoney Tom Naughton © IOW A-DES M O IN ES N A T IO N A L B A N K 1979 108 Iowa N ew s plantings will be a tempering influence on prices. Prices will be volatile subject to export news and frost conditions. Shipping will be a major problem. Hog prices have faded with the biggest inventory in eight years. Hog farrowings in our area are up and generally lower prices are expected for the next nine months. The fat cattle market will be slow to regain strength after dropping under pressure of competing meats. Cattle feeders are reluctant to replace at this time, but expect to do so before the end of the year. Dairy herds should turn a nice profit for the coming year. Cow herds are down but milk production is holding close to last year’s level. Retail sales, led by decreased car sales, are down. Farm implement sales are steady but some build up of inventory is noted. Home building has decreased due to cost of funds and other inflationary factors. Inflationfueled loan demand has kept most banks on the high loan volume side while deposits have not kept pace. Energy will be a dominant force in the general economy. S IN G LE IN TER EST IN SU RA N CE Group 6 Chairman D. A. Bolton Executive Vice President Union State Bank Winterset I believe the agricultural economy is alive and reasonably healthy in Group 6. A lthough we had a very wet late spring, the corn and so y beans have made up for lost time and all indica tions, at this time, are that we will have a bum per crop. The only bad indication is the low price of corn to the farmers who sell corn as a cash crop. Our cattlemen have finally gotten some good prices for their product and are beginning to show some recovery after four or five years of very low prices. The hog farmer is hurting financially, at this time, but the cycle is usually not too long and then they will be back in profits again. VACATION DISCOUNTS April 21 - June 8 B LA N K E T SIN G LE INTEREST L G rou p/ Chairman Ronald E . Fenton President Security Savings Bank Marshalltown We believe that farmers in general are pleased with grain prices current ly, and that most of them find that prices are better than they anticip a t e d a fe w m o n th s a g o . Crop prospects are good at this point so most grain farmers are looking forward to im p r o v in g their fin a n c ia l positions, although some have recently been hit by hail damage. Hog producers are contemplating an almost no-profit period through W e ’ve G o t Just T h e R ig h t Pace F or You For Installment Loans f The severe winter hurt all of our businessmen the first quarter but we show no signs of the recession and sales have been excellent for all businesses except auto dealers with the bigger cars. > Sept. 6 - Dec. 22 y % o,fdaily 2 0 % oíídaN 0 % w eekiy 1 5 % oííweek,y 1 5 IN D IV ID U A L SIN G LE INTEREST PROGRAMS • A u to m a te d • M anual _____ J PROTECT YOUR LO AN S A G A IN S T T H O S E P H Y S IC A L D A M A G E LO S S E S . 1 M Y TO TM B O O For Information and Reservations P R P M IF R S E A S O N C O N T A C T US A B O U T A P R O G R A M FOR Y O U R B A N K . call or write: T K 7 G.D. VAN W AGENEN CO. 1678 Northwestern Bank Bldg. Minneapolis, MN 55402 (612) 333-2261 ______ Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3233 South Atlantic Ave. Daytona Beach, Florida 32018 —J 904-761-0426 109 W e ’r e c o m m itte d to g iv in g y o u th e b e s t in C o r r e s p o n d e n t B a n k in g S e r v ic e s k - L aS alle’s R ep resen tatives at the 1979 Iowa B an k er’s C onvention: Standing from left; R u d y F rank , V ice P resid en t, Investm en ts D iv isio n , M ilton F. Darr, Jr., V ice-C hairm an, Board o f D irectors, D ick B row n, V ice P resid en t, C orrespondent Bank D iv isio n . Seated, from left; H ill H am m ock , V ice P resid en t-D iv isio n H ead, C orrespondent B anking D iv isio n , H al Sauer, C orrespondent Loan O fficer. We look forward to seeing you at this year’s Iowa B a n k e r’s Convention! LaSalle National Bank © 135 South LaSalle Street Chicago, Illinois 60690 Phone: 312/443-2754 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 110 Iow a N ew s the fall, and consequently will experience a significant reduction in net income. While they are concerned that there is an approaching period of economic uncertainty, m ost hog farmers have more confidence about the long pull. Cattle feeders are becoming quite uneasy. High feeder cattle costs and rising feed costs have increased the risk of doing business and thus increased the potential for another period of loss operations. It seems that cattle feeders are by nature optimistic so many feel that they will get by. All farmers are bothered by the large increases in fuel costs as well as other increased costs of operation. Their greatest concern seems to be about when the cost spiral will ever end. All in all, as long as we continue to get rain when needed and their crops a heavy cattle feeding area, reports look good, the mood of our farm that replacement demand is picking customers will remain positive for up as the excellent corn crop makes it appear that feed is going to become 1979. even cheaper as harvest time Group 8 approaches. The general business climate in Chairman Robert Wede M uscatine, Iowa City, Davenport President and Clinton continues to be Goose Lake Savings Bank A recent survey of bankers in this favorable, with unemployment well eight-county area of eastern Iowa below national averages. The out look, however, is somewhat cloudy, in d ic a te s th a t particularly for the Quad Cities area, crop conditions whose economy is heavily dependent g e n e r a l ly are upon farm equipment manufactur good. This area ing. The continued demand for farm has had plenty of machinery will hinge on farm income moisture, which and with grain prices at their current has resulted in level we cannot be too optimistic. good corn stands Land sales continue above $2,000 and one of the for average land. Purchases are being best looking bean made for farm enlargement, mostly crops in recent years. Clinton County, traditionally on a contract basis. Return from the land does not ju stify the cost; however, it is used as a hedge against inflation and is considered a prime investment by farmers in the area. Very few purchases are made by outside investors. Group 12 if sJ n o ö i oa v/r\ou i i u u u ic v a iu , u i i l o a y u , iiiin is io u u u v o Dial long distance toll free 800-621-4477 outside Illinois or 800-972-5566 within Illinois. Local calls 431-1700. We Appreciate Your Business . . . Thanks to our many banker friends who have relied on Automated Systems of Iowa, Inc. to provide property liability coverages, bonds, directors and officers liability, lender single interest and other coverages. We w ill see you at the 93rd Iowa Convention. PiUiam PiTED S Y S T E rn a □F iQLUPijnC. 417 S.E. 5TH STREET ANKENY, IOWA 50021 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (51 5) 9 64-1358 Chairman M. J. Kuehl President Security State Bank Lake Park The crop conditions are excellent in northwest Iowa. We have had an ade quate amount of rainfall and, an ticipating a nor mal frost date, we should have a bumper crop. C a ttle n u ru bers remain about the same as last year. If the market holds at present level, we should show good profits for the cattle feeder. A high percentage of cattle were purchased as calves and at a lower price than replacement cattle now cost. The hog numbers are high, and an increase from last year. It would appear that the market could go even lower on the hogs. The land sales in this area are 20 % higher than a year ago, with the average sale from $2,000 to $2,400 per acre with some smaller farms selling over the $2,500 per acre range. I look for this trend to continue and would predict that land sales will average $3,000 per acre within two years. 111 Let’s all get together at this year’s Iowa Bankers Convention. Jerry Pearson Dick Ristine Ed Stan Peirce Kennedy Christina Wilkins Jim Hill Bob Stenbeck Hubert and his team of Harris Bankers for Iowa 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 23rd through 25th. HARRIS BANK Harris Trust and Savings Bank, 111 W. Monroe St., Chicago, IL 60603. Member F.D.I.C., Federal Reserve System. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 112 Iowa N ew s Announce Elections at Central Nat’l. Raymond G. Johnston, president and chief executive officer of Central N a tio n a l B ank and Trust Comp any , D e s Moines, has an nounced the elec tion of Gene E. Loverink as vice president of oper ations, Michael Murrane as sen ior farm manag er, and John A. G- E- LO VERINK Gillotti as a member of the board of directors. Mr. Loverink was formerly associ ated with Northwest Bancorporation at the Iowa-Des Moines National Bank as operations officer and, most recently, with the Northwestern National Bank in Sioux City as vice president, administration. He also served with the Brenton Banks for several years. Mr. Loverink received a BA degree from Central College in Pella. Mr. Murrane joined Central in 1965 as a farm manager. He previously had been associated with Western P ut O u r Closer to You Trust Officers on Y o u r F in a n c ia l T e a m il m GARY ERN ST V ic e P r e s id e n t and T r u s t O ff ic e r VER N G E R IC K E V ic e P r e s id e n t and T r u s t O f f ic e r A s s is te d by th e se o th e r e x p e rie n c e d tru st o ffic e rs : • LILA HELM S • MARK CO LLISO N • KEN SCHO ENAUER • STEV E MARGET • DIANE EVANS Plus an experienced legal secretarial staff Offering Complete Trust Services to ALL Banks AND TRUST COMPANY C e d a r R a p id s • FD IC • FRS Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Electric Company in Des Moines. Mr. Murrane received a BS degree from Iowa State University. Mr. Gillotti is currently president and general manager of Polk Construction Company. He attended the University of Iowa and graduated with a BA in economics and received a JD degree. LaSalle National Sold To Amsterdam Bank Sale of LaSalle National Bank, Chicago, to Algemene Bank Neder- landN.V., Amsterdam, was comple ted August 14 following approval by regulatory authorities in the United States and the Netherlands. GATX Corporation sold its approximately 84% stock interest in LaSalle for a reported $82 million to comply with the Bank Holding Company Act, which requires divestiture by 1981. GATX officials said they expect to ' realize a profit of approximately $15 million, or $1.18 per common share, from the sale and their share of the bank’s 1979 earnings. The chairman of the managing board of Algem ene Bank, Andre Batenburg, said at signing ceremo nies in Chicago, that dom estic personnel will run the bank as an American institution. LaSalle Chair man Harrison I. Steans, who has been chief executive officer, said he expects to stay with the bank for up to two years. Also remaining during the transition period will be James G. C ostakis, who has been LaSalle president and chairman of the executive committee. Mr. Batenburg said the affiliation of LaSalle with Algemene Bank means that the Chicago bank may now increase its lending limit from about $5 million to a new limit of $100 million, placing it in a strong position to bid for corporate business. At mid-year, LaSalle National had $925 million in assets, 700 employes and was ranked 167th in size in the nation. Algemene Bank is the 26th largest in the world, with $34.4 billion deposits and 900 branches in 40 -r countries, including eight offices in the United States. 113 Training and service make the difference in creditor protection insurance. IBIS offers the best o f both. Because many bank cus tomers need creditor protec tion insurance, it’s just good business to have qualified personnel on hand to sell and service it. agency in the state that offers this kind of in-depth training. You see, w e work for you because you own IBIS. W e ’re a bank’s insurance agency, exclusively. W e know your insurance problems and needs. W e know the best w ay to handle them. A t Iowa Bankers Insurance and Services, w e not only underwrite this coverage, we professionally train your bank employees to sell creditor protection insurance. So, w hen you want creditor protection for your customers . . . and want to increase your profit potential.. . contact Ron Meyer or Larry Gille at IBIS. Call toll- free in Iowa, 1-800-532-1423. W e ’ve already helped over 2,500 bankers pass the Iowa Credit Life exams. And w e ’re the only bank insurance R o n M e y e r c o n d u c t s t h e p r o f e s s io n a l C r e d it L i f e L i c e n s i n g S c h o o l. 430 Liberty Building, Des Moines, Iowa 50309 515 243-0179 Selling insurance protection just to banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 114 Iowa N ew s You Will See Them at the 93rd Annual Iowa Bankers Convention T HE 93rd annual convention of the Iowa Bankers Association will be held September 23-25 at the new Civic Center in Des Moines. Officers and representatives of larger banks from major banking centers in the midwest and across the nation will be attending the convention. Following the list of bankers planning to attend is a list of personnel from investment firms, and service and equipment firms regis tered for the convention. The asterisk indicates those persons attending for the first time. Ernst, vice president/trust officer; M elvin J. McCalley and David Paxton, Jr., vice president; *Elaine A. O tt., assista n t cashier, and ♦Marilyn L. Jonas, assistant vice president. Chicago American National Bank & Trust Company: *Keene Addington, presi dent; Ron Gray heck, senior executive vice president; Jim Carlson, senior vice president; Rich Akin, second vice president; *Tim Johnstone and Garland Smith, correspondent bank ing officer; Destain Steward, agricul ture consultant, and Phil Simmons, Cedar Rapids Merchants National Bank: James bond department representative. Continental Bank: John B. TingF. Coquillette, president; Robert H. O’Meara, senior vice president; Stan leff, Thomas E. Elyea, Lawrence H. Farmer, assistan t vice president; Frowick, George P. Dekker, Delmar John E. Mangold, Terry Martin, Rogers, Jr. and W. Kent Velde, Jerry Trudo, Mark Christen and Dale commercial department; Edward J. Murphy, Robert E. Wahlgren, Eric Froehlich, correspondent division. Peoples Bank: John M. Sagers, G. W ilson, David R. Alexander, president; Don G. Ellis, executive Howard J. Beckstrom and Phillip G. vice president; Larry E. McGrath, Mustes, bond department. Drovers Bank of Chicago: Frank vice president/cashier; Gary D. C arleto n D . E. Bauder, president; James J. Carmody, senior executive vice president; John J. Crotty, senior vice president; *Max Roy, vice president, and *Kathleen T. Hardy, correspon dent banking officer. First National Bank: James W. Giffin and William T. Dwyer, vice president; Clarence E. Cross, Jr., assista n t vice president; John F. Volk, loan representative, and Arlene S. Bredfield, senior division assist ant. Harris Trust and Savings Bank: B . Kenneth W est, executive vice president; H. Charles Becker, senior vice president; Jerry H. Pearson, Stanley K. Peirce and James W. Hill, vice president; Christina L. Wilkins and Gerald R. O’Connor, assistant vice president; Robert E. Stenbeck, ♦Richard O. Ristine, Jr. and Edmond * M. Kennedy . LaSalle National Bank: Milton F. Darr, Jr., vice chairman/board of directors; Hill Hammock, vice president/division head-correspon dent banking division; Ruby Frank, vice president/division head-invest ments division; Richard Brown, vice president-correspondent banking di vision, and Hal Sauer, loan officer- B eh C o. Investment Bankers/Finandal Consultants Des Moines Minneapolis Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 115 Our idea of correspondent banking: THE COMMITTEE OF ONE. Our people are real, live, experienced correspondent professionals, with years of correspondent banking behind them. They aren’t management trainees or just goodwill ambassadors, so they can okay loans or services—like our new EFTS services—on the spot. Without going through unwieldy, time-wasting committees. WE CALL YOU BY NAME NOT BY PHONE. You see, National Boulevard believes in person-to-person, eye-to-eye contact with the management of eveiy correspondent bank. Right there at the correspondent bank. So things get done faster, friendlier. THE FUTURE STARTS TODAY. And now our individualized services will be better than ever, because National Boulevard is ready for EFTS. Electronic Funds Transfer Systems. For instance, our Central Information File is capable of transmitting information 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. 60611 Phone (312) 836-6500 Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 116 Iowa N ew s correspondent banking division. N ational Boulevard Bank: H. Peter DeRosier, vice president, and William W. Reynolds, bond officer. Northern Trust Company: David W. Fox, executive vice president; ♦Curtis E. Skinner, senior vice president; Edward J. Walsh, second vice president; Ernest P. Waud III and Orrin A. Wilson, vice president; L. Hamilton Kerr III, commercial banking officer; John E. Scully, Jr., bond investment officer, and ♦Patri cia A. Kaczar, adm inistrative assistant. Davenport D avenport Bank and Trust Company: John K. Figge, James K. Figge and Thomas K. Figge, executive vice president; Robert G. Lenertz, Richard E. Kautz and James E. Shrader, senior vice president; David D. Kling, vice president/cashier; Michael A. Bauer and Anthony E. Hughes, correspon dent banking officer; Jack R. McDonnell, senior computer services officer; Robert J. Hartman and Glen W. Piotter, computer services officer, and John W. Schricker, credit card officer. Dubuque American Trust and Savings Bank: Nicholas J. Schrup, chairman; Christy F. Arm strong, president; Leo F. Kane, executive vice president; Robert G. Scott, senior vice president, and Bernard D. Miller, assistant vice president. Kansas City Commerce Bank of Kansas City: Fred N. Coulson, Jr., senior vice president, and *Michael D. Steinmetz, assistant vice president. United Missouri Bank of Kansas City: Jerome H. Scott, president; E. L. Burch, senior vice president, and Richard H. Muir, vice president. Lincoln First N ational Bank: William Edgecomb and Charles Leffler. Minneapolis First National Bank: De Walt H. Ankeny, Jr., president; Kenneth A. Wales, vice president; William W. Ham ilton and Roger W. Raina, assistant vice president; Larry C. Nelson and Thomas P. Trench, bond investment representative. New York Bankers Trust: *Dennis O. Bat tles, assistant vice president, and Steven Gordon, assistant treasurer. Omaha First National Bank: F. Phillips Giltner, president; A. J. Canaday, executive vice president; Bruce Lauritzen, J. William Henry, Don Ostrand, G. Robert Brown and Ralph Peterson, vice president; George McFadden, marketing officer, and Jim Flodine, operations officer. The Omaha National Bank: John D. Woods, chairman; Thomas H. Allen, president; F. Donald Lewis, Robert E. Larsen, Richard Yeshnowski and Del Olson, vice president, and John Wear, correspondent bank officer. Jon Narmi Tad Dunham Fred Douglas M arquette N ational Bank: Bill Addington, vice president, and Dick Holmes, assistant vice president. Northwestern N ational Bank: RichardC. Storlie, assistan t vice president; John L. Thomson, corre spondent banking officer, and Ted Taney, bond representative. Jeff Moran S ee you at the Iowa Bankers Convention C h il e s ,H e id e r & C o ., I n MEMBER NEW' Y O R K STOCK E X C H A N G E , INC. 1300 W O O D M E N T O W E R O M A H A , N E B R A S K A 68102 ■ (402) 346-6677 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis c . 117 Pictured from left are: G. K urt W ayne; Steve L. A lle n ; Jack M oors, and Jam es A. B ish op WE W A N T T O S E E Y O U ! . . . During the 93rd Annual IB A Convention Banking for a brighter future. CAPITAL CITY BOOK Des Moines, Iowa 50309 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 118 Iowa N ew s New Drive-Up Facility Planned for Parkersburg State Bank CONSTRUCTION has begun on the new Parkersburg State Bank drive-up office, according to Eldon H o p p e n w o rth , pres. The office will feature two drive-up windows, a walk-up window, night depository and a private office. The architecture will be in keeping with the main bank building, which was built in 1917. Earl F. Kooker & Associates, Spencer, is coordinating the project for the bank. Completion is expected in October. United States National Bank: Jim Campbell, president; Larry Hansen, Howard Nielsen and John McCune, vice president; Lee Bachand, second vice president; Bob Billm eyer, investm ent officer; Bill Clark, customer services officer, and Bill Dewhurst, marketing representative. St. Joseph First N ational Bank: Brenton O’Neal, senior vice president, and E<^ Boos, vice president. First Stock Yards Bank: John E. Karn, president. St. Louis M ercantile Bank: Daniel W. Jasper, vice president/division head, and James H. Taylor, Jr., banking officer-Iowa. St. Paul First National Bank: James T. Gowan, vice president; Robert J. Peroutka and Clayton C. Johnson, assistant vice president, and *James D. Schm itz, correspondent bank representative. Sioux City First National Bank: R. C. Taylor, president; Charles H. W alcott, executive vice president; Gary W. Stevenson, vice president, and ♦Douglas A. Schmidt, correspondent banking officer. Northwestern N ational Bank: Malcolm Erickson, vice president/ cashier; Jerry Just, vice president, and Tom Pohlman, correspondent banking officer. Security N ational Bank: R. E. Hagen, president; Jim Hongslo, vice president; Wayne Johnson, senior Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis correspondent bank officer; Steve H atz, correspondent bank officer, and Wilma W eeks, correspondent bank operations officer. Toy National Bank: Les H. Olson, president; Dennis Vellek, senior vice president; Richard Breÿfogle and Stan Fredericks, vice president. Equipment and Service Firms American Express Co., New York: Dick Newman, regional manager, Omaha. Automated Systems of Iowa, Mt. Vernon: Jon M. Grindle, vice president, and *Connie Schm idt, office manager. Bank Building Corp., St. Louis, Mo.: Roy W ingers, consultant services manager. Banks of Iowa Computer Services, Cedar Rapids: Joe Phernetton, president; Bill McCormick, executive vice president; Larry Eilers and Brian S cott, senior marketing representative; Brian Phillips, direc tor of operations; Anna Lee Scott, customer service manager, and Steve Boes, marketing representative. Brandt, Inc., Peoria, 111.: Wm. H. Welch, district manager, and *Dan Thiewes, financial systems consult ant. Burroughs Corp., W est Des Moines: Mike Flem ing, branch manager; Bill Grim and Terry Smith, zone sales manager; Gary Kalis and^ Ed M angold, financial system s . product manager. Career Fashions, Inc., Hastings, Minn.: Florence Erickson. Chiles, Heider & Co., Omaha, Neb.: David Van Metre, senior vice president, and Fred Douglas, Tad Dunham, Jeff Moran and Jon Narmi. * Credit Bureau Services, In c., Davenport: Thomas Gray, opera tions manager. Dain, Kalman & Quail, In c., Minneapolis, Minn.: Paul Bartlett, vice president, Des Moines office. Daktronics, Inc., Brookings, S.D.: Larry Fjeldos, region manager, and ♦Jim Thomas, district sales man ager. D ata B usiness Equipm ent, Des Moines: Larry Pardabsky. Des M oines Stamp Mfg. Co.: Frank Child, president, Tom Child and Ken Dular. Diebold, Inc., Des Moines: John Murphy, regional manager; William H. Osier, sales representative, and Richard S. Gwinn, special accounts representative. Eastman Kodak Co., Des Moines: Richard K. Ruthenbeck, district sales manager, and Steven J. Penisten, Dennis A. Colburn and Gary H. Sauerteig, micrographie sales representatives. Electronic Advertising Systems, Inc., Fargo, N.D.: O. H. Ohnstad. * Farm Progress Publications, Oak Brook, 111.: Charles Kuster, man aging editor, special publications. Financial Institu tion Services, Inc., West Des Moines: Lome R. Newhouse, area director; S teve ^ Carron, assistant area director, and Harvey Schnieder, marketing direc tor. General Bank Equipment & Systems, Inc., Omaha, Neb: Tom Sternberg, president; Jim Rogers, service manager; Pat Boler and John Lawder, systems specialists. Glide/File, Lake Bluff, 111.: Ronald D. Wick, Ronald D. Wick & 119 Statement of Condition Board of Directors V. O. F IG G E June 30,1979 President P H IL IP D. A D L E R Lee Enterprises ASSETS $ 86,358,661.06 7,150,000.00 29,766,465.22 33,604,446.39 75,182,408.93 1,122,000.00 206,301,488.41 7,241,145.87 4-786,625.02 1,022,630.31 2,067,934.72 Cash and Due From Banks Federal Reserve Funds Sold U.S. G overnm ent and its Agency Securities O ther M arketable Corporate O bligations M unicipal S ecurities Federal Reserve Bank Stock Loans Bank Premises and Equipm ent Interest Accruals Customers Liability for Letters of Credit O ther Assets E D W A R D L. C A R M O D Y Senior Vice President J A M E S K A H L F IG G E Executive Vice President J O H N K A H L F IG G E Executive Vice President T H O M A S K A H L F IG G E Executive Vice President M E L F O S TE R , JR. Mel Foster Company RO BERTA. HANSON $454,603,805.93 President Deere & Company $ Senior Vice President LIABILITIES K E N N E T H C. H A R T M A N Capital Stock Surplus Undivided Profits 2,400,000.00 35,000,000.00 12,830,423.10 $ 50,230,423.10 Total Capital Funds L L O Y D G. S C H E R M E R President Lee Enterprises D E A N R. S T IC H N O T H Reserves for Interest, Taxes, and O ther Liabilities Banks Liability for Letters of Credit Federal Reserve Funds Purchased Deposits 7,773,878.98 1,022,630.31 35,550,000.00 360,026,873.54 $454,603,805.93 President Iowa-Illinois Gas & Electric Company C H A R L E S R. V O N M A U R Petersen-Harned-Von Maur LA R N E D A . W ATER M AN Lane and Waterman H E N R Y C. W U R Z E R Kahl Properties D a ven p ort B a n k and Trust Company Iow a’s la rgest in d e p e n d e n t bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 1 20 Iowa N ew s We’re com m itted to data services. A t Security National, we’re committed to giving you the finest possible correspondent data processing services. That’s because we’re more than just another city bank. We’re a country bank, too. Our Security Bankers understand the special data processing needs of ag-oriented banks like yours. Just one more way you get more when you bank with Security. Talk with our Security Bankers about data processing, ag overlines, and complete investment services. You’ll find they speak your language. W henever you think of corre^ spondent banking, think Security National. We’re committed to helping you. SECURITY NATIONAL RANK ©1979SN B S IO U X CITY , IO W A 51101 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 712/277-6670 M EM B E R F .D .I.C . A ssociates; W illiam Hardt and ♦Lucile Hoffman, midwest division. Kirk Gross Co., Waterloo: R. T. Zahn, president, and G. L. Gross, vice president. Tom Hagan & Associates, North Kansas City, Mo.: Tom Hagan and Linda Blue Smith. Hawkeye Bancorporation, Des Moines: Paul D. Dunlap, Stephan L. Jones, Myron Weil, Robert W. Murray, James R. Bullard, Lawrence R. Halverson, Fred Linder and Don Russell. HBE Bank Facilities, St. Louis: Dick Norris and Gary Gauger. Holder & Associates, Ames: Don and Patt Holder. Iowa Bankers Insurance & Serv ices, Inc., Des Moines: A1 Tinder. Iowa New Outlooks Association, Nevada, Iowa: William Harris and Raymond J. Hulbert. Koch Brothers, Des Moines: Dick McFarland, Denise Le Beau, Mike Remster, Larry Wendt and Steve Uthe. E. F. Kooker Associates, Spencer, Iowa: Earl F. Kooker. LeFebure Corp., Cedar Rapids: Frank R. Volesky. Live Investors, Inc., Cedar Rapids: credit insurance division— Rich Siewert, director-financial mar keting; Gary L ivesay, western regional representative, and *Dan Morse, eastern regional representa tive. Marketing Outlooks, Inc., Darien, Conn.: William Tomson, vice presi dent. Marquis Productions, Inc., Rock ford, 111.: Jan Harrolle. M ortgage Guaranty Insurance Corp., Milwaukee, W is.: Lucy W alters, Gordon Chapman, Ted Miller, Dan Weis and Ed Kallemyn. National Fidelity Life Insurance Co., Des Moines: Craig Ross and Rick Wolf, regional sales directors. NCR Corp., Des Moines: Jim Schulte. Newlin Bank Sales, Des Moines: Richard C. Newlin, president; Martha J. Newlin, vice president, and William D. Newlin, assistant vice president. North Central Companies, St. Paul, Minn.: Gary Penberthy, financial agency supervisor. Northwestern Bell Telephone Co., Des Moines: Jeff Offenburger, Denny Spurgeon, Dana B astian, Keith Felton, Glenn Fox, Lyn Dodge, Dave Harsh and Paul Blum. Omaha Financial Life Insurance, 121 Think of us as old m aster craftsm en. The best people to understand what card problems are and how to solve them are people who have issued cards and have experienced card activated programs. And when you plan to issue plastic cards to valuable customers, it’s reassuring to know your cards will be treated with the expertise and strict security that American Fletcher provides for its own programs. We’ve been there before, so we’re prepared for it. We have embossed and encoded our own cards for years and have provided our services to well over one hundred and fifty financial institutions throughout the United States. We've seen all the problems in a card issue so we know the right questions to ask. Then we plan and create a program specifically for you. A custom program which reflects your needs as well as those of your customers. Turn your card program into a turnkey proposition. Our Automated Consumer Services Bureau will handle the entire project. From the designing and providing of the plastics, forms, envelopes and brochures to the embossing, encoding, stuffing and mailing, plus file maintenance, mass issues and plastic production, A.C.S. can do it all. You’ll know in advance what you’re getting. Our cost estimates are specific. Everything is itemized—and in terms that everyone can understand. So you know exactly what you’re getting for your money. And we work fast, so you get a firm delivery schedule based on your requirements. Be it a Track I, II, III or Docutel issue of new cards, a reissue, or issuance of cards on an ongoing basis, count on A.C.S. to do the job. Sound interesting? Send us the coupon. Send to: Automated Consumer Services 450 E. Washington Street Indianapolis, IN 46277 Or phone us at (317) 639-7642 and ask for Fred Schorkopf or John Bradshaw. --------------------------------------------------------------------------------------_J Marne______________ _____________________________________________ P osition__________________________________________________________ C o m p a n y ____________ ____________________________________________ A ddress___________________ ______________________________________ C ity-------------------------------- S tate________________ Z ip ________________ Phone_______________________ ____________________________________ _______________________________ ' “ NB I * A M E R IC A N FLE TC H E R N A TIO N A L B A N K AFN "B IN D IA N A P O L IS , IN D IA N A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 122 Iowa N ew s Bloom ington, Minn.: Bill Murray and Stan Grout, regional managers, and Norm Fletcher, director-western division regional managers. A.O. Smith Harvestore Products, Inc., Omaha: Glen Christiansen, Central; Jerome Frake and Max Strothman, Frake & Strothman; Bob Kirkpatrick, Hawkeye: George Mar tens, Interstate; Merv Hague and Robert Bitter, Iowa; Robert E. Nolen and Bruce Davidson, Siouxland, and Dr. Merle Lockwood and Billy J. Smith, Skyline. United States Check Book Co., Omaha: *Ed Batchelder, sales manager, and Chuck Strattan, Walt Schlenker, Bernie Burger, *John Rasmussen, *Dennis Sullivan, *Glen A ltflillisch and *John Kohring, representatives. U SL IFE Credit Life Insurance Co., Schaumburg, 111.: Jim Lee, vice president; *Bob Eller, regional vice president; Joe Zearing, field vice president; and Bob A tess, Roger Jerrick and Steve McKelvey, district managers. Named Finance Chairman Donald Nebergall, president of the Brenton Bank and Trust Com- pany, Cedar R apids, has been located on the north side of the ex named finance chairman for Tom isting building. Housed in the new Stoner’s campaign for the U.S. Sen area will be the credit function of ate, the seat currently held by John the bank, including seven offices, a conference room, filing and work Culver. Mr. Nebergall, a director of Bren area. The existing lobby will be redec ton Banks, Inc., has been with the orated featuring new teller coun financial institution since 1959. ters, a unique reception area, cus tomer lounge area and remodeled safe deposit area. Estherville Bank Plans Major Expansion Project The Iowa Trust & Savings Bank, Estherville, has announced that ex pansion and remodeling plans have been completed and that ground breaking on the project was held last month. The work, under the supervision of the Bank Building Corp., St. Louis, Mo., will continue through the balance of 1979 and into the spring of 1980. Included in the extensive renova tion will be a new three-lane drivein banking facility located on the west side of the bank. Iowa Trust hopes to offer continuous drive-in service throughout the construction period. The new addition will be in ex cess of 2,500 square feet and will be Named Marketing Officer At Davenport Bank & Trust D avenport B ank and T rust Com pany has announced th a t C arm en K. P o w ell w as re c e n tly e le c te d m a r k e t i n g officer. P rio r to jo in in g th e D a v e n por t b a n k in June, Ms. Powell was the m a rk e t in g o ffic e r for F i r s t N a tio n a l C. K. POW ELL Bank, F ort Dodge. She is a 1974 graduate of the U niversity of Iowa. In addition, she was recently appointed chairm an of the Iowa B ankers Association m ar keting com m ittee for th is year. Named to New Subregion W o t A M / á it v h ’' By TRUM AN BOLINGER Bronzes Fine Paintings Books Prints Dennis H. Trometer, Le Mars, has been promoted to associate na tional trust examiner. Mr. Trome ter is a graduate of Westmar Col lege here and has been employed by the Comptroller of the Currency since 1970. He will be in charge of the Des Moines trust subregion that will be established this month. H A N D S TA M P T H E IN K 'S IN T H E S T A M P ! N O IN K P A D ! HT. 14 N O R E -IN K IN G ! EDITION 20 STAN & SUE SLOCUM OWNERS IMAGES GALLERY Citizens State Bank Bldg., Suite 313 5050 Excelsior Blvd. (1 Blk. East of flwy. 100) Minneapolis, MN 55416 Phone 927-5565 25,000 IM P R E S S IO N S ! Can't leak, can't dry out. Stamps crisp and clean every time. Can be made any size. Purple, red or black ink. DESMOINES STAMP MFG. COMPANY Manufacturers of Marking Products Since 1880 851 SIXTH AVE • BOX 1798 ■ DES M O INE S. IO W A 5 0 3 0 6 PHONE <515) 2 8 8 -7 2 4 5 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V OWNTOWN MERGHANTS W elcome Iowa Baakeps to D es M oines Index 1.x I III c ris x Thompson’s, 809 Walnut Cownie, 200 S.W. 5th Kucharo’s, 7th & Locust Frankels, 612 Locust Josephs, 6th & Locust Madeline Shepard, 314 Sixth Johnson’s, 712 Locust Arnolds, 706 Walnut Capital Personnel, 714 Central Nat’l. Bldg. Kneeters, 807 Walnut Norman Cassiday, 720 Walnut Storey Kenworthy, 309 Locust Plus Shops, 700 Walnut Koch Brothers, 4th & Grand J.C . Penney, 5th & Walnut Wolf’s, 712 Walnut Browns, 308 Eighth St. Chez’ Shari, 310 Eighth Steam’s, 700 Walnut A B Iowa’s Finest Furs at Our Factory Location Party Shop EVERYTHING TO MAKE YOUR SPECIAL PARTY REALLY SPECIAL! 809 Walnut, D.M. 282-4984 The best compliment to a well dressed woman is a well dressed man Jlioheu-Jreeman C U S T O M IZ E D CLOTHES KUCHAROS 200 S.W. 5th 243-1286 D o w n to w n 7 th & L o cu st M e r le H a y M a ll D WELCOME IOWA BANKERS From FRANKELS . . . The clothing company that has een serving the men and boys of owa since 1861. ine Clothing ■* Expert Tailoring 4 Professional Salespeople II major credit cards accepted. / DOW NTOW N 612 LOCUST A cro ss fro m the Ruan C enter VALLEY W EST M A LL • PARK FAIR THIS YEAR . . . A GIFT FOR ALWAYS! The diamond from Josephs largest selection at m ore m oderate prices. A tradition since 1871. MADELINE SHEPARD, LTD. 314 SIXTH STREET / https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A beautiful way to dress. O riginal Family Ownership SIXTH AT LOCUST AND MERLE HAY MALL MEMBER AMERICAN GEM SOCIETY [betw een Lo cust and W a ln u t] H i|ftuLWet(jiuUk WELCOME IOWA BAN KERS Losing Lease to Make Way For the New Parking Ramp ENJOY SAVINGS UP TO 68% t v M / CLOTHING u ld i Des Moines Famous Label fashions for misses and juniors. (jwLiiie #( i j m ÿ k A m ciù V u h Downtown • Merle Hay • Park Fair • South Ridge 712 LO < LOCUST -i SERVING PRO FESSIO N ALLY 7Î 4 Merchants you will enjoy visiting all within walking distance. Banking, Financial & Business Grand — \l J 1 Iowa and Nationwide I L G R Q C 1__________ Locust D E 1 F A J L Walnut C A P IT A L P E R S O N N E L SERVICE ¥■ 714 Central National Bldg. 515-283-2545 Des Moines, Iowa 50309 K 720 W ALNUT WE BELIEVE - y - ^ IN THE PRESENT AND FUTUREl OF DOWNTOWN DES MOINE] DOW NTOW N T-1! . "* 1 Á __- _ V á i f Fur& Cloth Fashions For All Seasons. SV 807 Walnut Des Moines, Iowa 515/243-1243 Open Mon. thru Sat. 10 - 5:30 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O' m Jy H ■ . n j E ai V Coats, Coats, Coats ». *l ,Vt .i .1 ‘ \ - .. »■- 1 % H 'N' n o e rboo in m j fk - ' a h 0 M , M President 900 Series Vbxs SJKo\>5 Fashions in the Larger Sizes ' Specializing in fine fashions for the d is c e rn in g wom an who wears Extra Sizes 1 4 1/ 2 to 261/2, 38 to 46 and waist sizes 32 to 40. kim sÀir OFFICE FURNITURE CO Offered by: Storey-Kenworthy Co. t In Des Moines at: 309 Locust 288-3243 Park Fair Center South Ridge Mall Downtown, 700 Walnut Stop by during the convention ¿iveriftliing. flor tin IOWA BANKER 90 years of service • • • • • • M ic ro film S u p p lie s & E qu ip m ent O ffic e F u rn itu re & In te rio rs C o pyin g M achines S ta tio n e ry & O ffic e S up plies S urve illan ce Cameras P rin tin g & B o o kb in d in g 283-2451 KOCH BROTHERS PRINTERS - STATIONERS - BOOKBINDERS OFFICE OUTFITTERS-BUSINESS MACHINES Third to Fourth on Grand Avenue Des Moines, Iowa 50308 JCPenney Downtown, 5th & Walnut Discover new shopping pleasure at JC Penney with almost everything for your fam ily 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. S Q c^ ) A e ^ Aau Brown*s H at & Dress Shop ¡ P e l ^ c n n e t a e u t A ( 0 ^ W in e ^ a t i i t o n D re sse s & P a n tS u its Lovely Things in 4-14 for Connoisseurs of fine fashion y Sizes: 8-18 i H alf Sizes: 121/2-201/ 2 Petites: 6-14 PHONE 3 0 8 DES PAck Yo u r 2 4 4 -3 3 1 4 E ig h t h S treet M O IN E S , IO W A 50309 310 E ig hth S treet Des M oine s, Iowa [515] 243-3344 D o w nto w n Between Y ounkers Store https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis South Ridge Downtown Park Fair 1 26 Iowa N ew s To Announce IBA Officers at Convention OLLOWING the procedure es F tablished several years ago, the Iowa Bankers Association conducted its election of officers for 1979-80 by a mail ballot during the month of A ugust. Official results will be announced during the IBA annual meeting Tuesday morning, Septem ber 25, during the convention. E.L. TUBBS L.C. PIKE instructor and has been active as a farm owner and operator for more than thirty years. He is a frequent speaker on agricultural and banking subjects, having served as instructor at the Ag Credit School at Iowa State, the Iowa School of Banking at the University of Iowa in Iowa City, and the Oklahoma Ag Credit School at Stillwater. Other speaking assign ments include the ABA National Ag Lenders Conference and the national BMA convention. The Maquoketa State Bank has grown from $3 million in assets to more than $56 million since Mr. Tubbs became associated with the bank in 1966. In 1972, he and his son, Alan, with partner John Fagerland,purchased the $4.6 million asset First Central State Bank in DeWitt, which ended 1978 at $21 million. Mr. Tubbs also has been a leader in Maquoketa’s successful industrial development program, and has been active in other official capacities in Maquoketa civic endeavors. Mr. and Mrs. Tubbs have two other sons. Steve is the sixth generation operator of the family farm, and Bill is editor-publisher of Leslie H. Olson is scheduled to be advanced from the office of vice president and president-elect to the office of president. He will succeed H. Rand Petersen, president of the IBA for the past year, who will be presiding at the convention. Mr. Olson is president of The Toy National Bank in Sioux City. Mr. Petersen is president of The Shelby County State Bank in Harlan. The two announced candidates listed on the mail ballot were Edward L. Tubbs for the office of vice president and president-elect to succeed Mr. Olson, and L. C. “Bud” N D E PE N D E N T M anagement Pike for the office of treasurer for a Services is the name of a new Des two-year term to succeed Mr. Tubbs. Mr. Tubbs is president of the Moines-based firm formed by Rich Maquoketa State Bank in Maquo- ard H. Buenneke and Homer R. keta. Mr. Pike is president of the Jensen. Farmers Savings Bank in Grundy The firm will specialize in bank Center. acquisitions by independent inves- the Eldridge North Scott Press. L. C. “Bud” Pike Mr. Pike was born in Brownsdale, Minn., in 1922. While in high school in Austin, Minn., he began working for the First National Bank there, continuing that bank job for two years until graduating in 1942 and entering the Navy submarine service on the Sailfish. Upon returning from service in 1945, he was with George A. Hormel & Co., in Austin for one year, then rejoined First National Bank in Austin. From 1948 to 1957 he worked for Travelers Insurance Company, starting as a farm loan appraiser, then serving as assistant manager for a four-state area before resuming his banking career. In 1957 Mr. Pike joined Farmers Savings Bank in Grundy Center as farm representative. He was advan ced to the presidency and chief executive officer in 1972. He has served as a director since 1964. Mr. Pike currently is chairman of Group 7 of the Iowa Bankers Association and is a member of the IBA legislative council. He has served in numerous posts of responsibility in Grundy Center and currently is president of the Grundy Center Development Commission. New Bank Acquisition Firm I Edward L. Tubbs Mr. Tubbs also is chairman of the executive committee of First Central State Bank in DeWitt, where his son, Alan Tubbs, is president. As treasurer of IBA, Mr. Tubbs is a member of the Council of Adminis tration and a director of the Iowa Transfer System. He has served several years on the association’s ag committee and legislative commit tee. A graduate of Iowa State University, where he earned a BS degree in animal science, Mr. Tubbs’ first job was with the ISU Extension Service. Since that time he has served as veterans on-farm Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis headed the bank’s trust department. He is a graduate of the University of Iowa business and law schools, and he received his initial bank training in the trust department of Central National Bank and Trust Company, Des Moines. Mr. Jensen has been executive vice president and cashier of Capital City State Bank, joining the bank in 1969 following 16 years service with Bankers Trust Company, Des Moines. R. H. BUEN NEKE H. R. JENSEN tors. No brokerage fees will be charged. Mr. Buenneke has been president of Capital City State Bank in Des Moines since 1976. He had previously Last year, Messrs. Buenneke and Jensen contracted to purchase the Miles Savings Bank, inviting several other investors to participate. They plan to follow a similar pattern in acquiring other independent banks. Sellers would know that the bank would remain independent, and every effort will be made to retain the “status quo” including retention of staff members. 127 CRAIG RO SS RICK WOLF 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. National Fid e lity Life 8555 H arbach B lvd., S u ite 102 Des M oines, Iow a 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 Northwestern Banker, September 1979 128 Des Moines OP e x e cu tiv e officer ch an g es and the addition of th ree new staff m em bers a t C apital City State B ank were announced last m onth by H. Jack Moors, chairm an. Richard H. Buenneke resigned as president A ugust 16 to pursue other business interests and was succeeded a t the m id-A ugust board m eeting by Mr. Moors, who will serve as chairm an and president. H om er J en sen , executive vice president and cashier, subm itted his resignation effective Septem ber 1 in order to pursue other personal busi ness interests. Mr. Moors announced the election of Jam es A. Bishop as vice presi- T H. J. MOORS J. A. BISHOP Auditor, has resigned his position as vice p r e s id e n t a n d c o n tro lle r a t B ankers T rust Company, where he was employed for 31 years. He was nam ed auditor in 1972, controller in 1976 and was additionally elected vice president in 1977. Mr. Bishop h as been a m em b er of th e B ank A dm inistration In stitu te for m any years. He served as president of the C entral Iowa C hapter of BAI in 197576 and was BAI sta te director for Iowa in 1977. He was also elected secretary of the Des Moines C learing House Association Ju n e 28, 1978. Mr. Allen joined the Iowa d ep art m ent of banking in 1971 following his graduation from N ortheast M is souri S tate U niversity, K irksville, w ith a BS degree in business adm in istration. He was a field exam iner and a bank exam ination an aly st be fore being appointed an assistan t to th e su p e rin te n d e n t of b an k in g in February, 1978. In his new position, Mr. Allen will be calling on corres pondent banks throughout Iowa. M r. H u n t e r ’s d a ta p ro c e s s in g career began in the Des Moines re gional check processing center of the F ederal Reserve B ank of Chicago. He moved to Cedar Rapids to join Life I n v e s to r s I n f o r m a tio n S y s te m s (HMS) and worked on the develop m ent of B-1700 rem ote capture cen ters, including the center at C apital City State Bank. Most recently he m o v ed b a c k to D es M o in e s six m o n th s ago to jo in F in a n c ia l In dustry System s, a Des Moines serv ice center. dent and cashier, the appointm ent of Steven L. Allen to be in charge of correspondent b an k business, and the appointm ent of Dale Hunter as a full-tim e program m er. Mr. Moors said Jim Eick, corres pondent b an k in g officer, has been assigned to develop a program w ith the com puter d ep artm en t for issu ance of plastic cards to custom ers of C apital City B ank and its corres *** pondent banks as a prelim inary to installation of on-line ATMs early in 1980. The retirement of Forest T. Lewis M r. B ishop, a C h a rte re d B an k as president of Plaza State Bank Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis was announced la st m onth by Chairman John J. McLaughlin. He is succeeded as president by John R. Harmeyer, formerly executive vice president. Mr. Lewis’ banking career star ted 46 years ago in 1933 at the Terril State Bank. In 1942, he left his position there as cashier to serve in the Army Finance Department dur ing World War II. Upon returning in 1946 he joined Iowa State Bank in Des Moines. He was “retreaded” by the Army during the Korean War for a short time, then returned to Iowa State Bank as a vice presi dent. In 1965, Mr. Lewis joined Plaza State Bank as a vice president six years after its founding. He was elected executive vice president in January, 1966, then was given the F. T. LEW IS J. H. HARMEYER added duties of trust officer in Jan uary, 1969. His election as presi dent of Plaza State Bank came in March, 1975. Mr. Lewis has a long record of activity with the American Insti tute of Banking, ranging from com pletion of many courses, through active chairmanships on AIB bod ies, and more recently as a member of the senior advisory board. He was honored in 1977 by the Des Moines AIB Chapter as Banker of the Year. His outside activities include ac tive work in and support for Polk County 4-H, Little League, Boy Scouts, church work, Merle Hay M erchants A ssociation , U nited Way and civic clubs. Capital City Bank has announced the promotion of two employes. Lois Warren, formerly note teller, has assumed the responsibility as loan administration officer. Denise > Jordan has accepted the position of m anaging officer of the bank’s West Des Moines office. 129 Shown from left: Margo Foxhoven, Ray Schneider, Eddie Wolf, Bill Greaves, Cv Kirk and Maurine Bjornson. Our professional correspondent banking team would like to m eet you during the 93rd Annual Convention o f the Iowa Bankers Association. Join us for refreshments on the third floor of the Hotel Savery during "Hospitality Hours": Just look for Sunday, September 23 2-8 PM Monday, September 24 3-8 PM Tuesday, September 25 3-6:30 PM our sign. We’re determined to do the best for you. Central National Bank & Trust Com pany DES MOINES (515) 245-7111 MEMBER FDIC LOCUST AT 6TH/5TH & GRAND/35TH & INGERSOLL/WDM: 35TH & 1-235/501 E. ARMY POST RD < AFFILIATED WITH CENTRAL NATIONAL BANCSHARES, INC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 1 30 Iowa N ew s Officer changes a t C entral N ation al B ancshares were announced re c e n tly by K en neth M. Myers, p re s id e n t and c h ie f e x e cu tiv e o ffic e r of th e h o ld in g com pany. Ivan L. Joh n so n , e x e c u tiv e vice president of C en tral N atio n I. L. JO HNSO N al B ank & T rust Co., has been elected to the addition al post of director of properties and purchasing of the holding company, S te p h e n F. S h e r r o d h a s b e e n e le c te d lo an re v ie w o fficer, a n d Michael D. Schnoebelen has been promoted to audit officer. Dallas County State Builds Dexter Office G RO UND BREAKING ceremonies were held last month for the new Dexter office building of the Dallas County State Bank, Adel. This Brenton Bank building will be of precast construction with curved plaster accent fascia. It contains over 3,900 square feet and features three private offices, teller and bookkeeping space and a round main level community room. Safety deposit vault, walk-up and drive-up facilities will be included. Kirk G~ross Co., Waterloo, is in charge of the turn-key project. ASSISTING with the groundbreaking are, from le ft: W a y n e H. G e a d e lm a n n , pres.; K e n n e th Hykes, v.p. & Dexter office mgr., and W illia m H. B ren ton, chmn., Brenton Banks, Inc. S. F. SHERROD SCH NO EBELEN Mr. Johnson joined the lead bank in 1948 and has served in a num ber of capacities, becom ing executive vice president in 1977. He is also a m em ber of the board of directors. Mr. Sherrod joins the holding com pany after serving as vice president of B renton N atio n al B ank of Des Moines. He joined the bank as head of th e in s ta lm e n t loan d e p a rtm e n t, a d m in is te re d its MBO p ro g ra m , serv ed as com pliance officer and later headed the commercial loan de partm ent. Mr. Sherrod graduated in 1970 from Iowa S ta te U n iv e rsity w ith a BS degree m ajoring in in d u st rial adm inistration-m arketing. Mr. Schnoebelen joined C en tral N ational B ank in 1977 as electronic data processing auditor and joined the holding company last Ja n u a ry in the same position. He graduated in 1977 from Iowa W esleyan College w ith a BA d e g re e m a jo r in g in accounting. * * * Larry Wenzl, president of First Federal State Bank, has announced the election of Wanda Porter as assistant vice president and depart ment head of real estate loans. She has been a real estate broker for 20 years. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banks of Iowa Offers to Buy Cedar Falls T & S Banks of Iowa, Inc., a multi-bank holding company headquartered in Cedar Rapids, is preparing an appli cation for submission to federal and state regulatory authorities to pur chase approximately 98% of the outstanding stock of Cedar Falls Trust and Savings Bank in Cedar Falls. An agreement in principle was reached earlier with owners of stock in the Cedar Falls bank. According to that earlier agree ment, Banks of Iowa would pay cash for 73,801 shares, but terms were not disclosed. At mid-year, Cedar Falls Trust and Savings had assets of $45.6 million. If the appli cation is approved, the Cedar Falls bank would become the ninth bank in Banks of Iowa, which presently has assets of $1.1 billion, making it the largest bank holding company in the state. Similar applications generally have taken about nine months to process for final decision by the Federal Reserve Board. Plans Remodeling Project Work was scheduled to begin last month on a major remodeling pro ject for Security State Bank, Guttenberg. Upon completion the building will feature four private loan of fices, enlarged teller and bookkeep ing space, additional safety deposit box space, a new drive-up window, on-site parking with entrance for the handicapped and an employe lounge. A new canopy and brick exterior will be added, with extensive use of brick on the interior. Kirk Gross Co., Waterloo, is in charge of the turn-key project. Iowa N ew s 131 First Nat’l. in Sioux City Announces Promotions Richard C. Taylor, president of First National Bank in Sioux City, has announced a new addition to the bank’s management staff and several promotions. James H. Anderl has accepted the position of vice president and financial officer. Vernon C. Roberts has been promoted to vice president and cashier, A. John Armbruster was promoted to vice president and trust officer, David A. Ranschau was promoted to assistant cashier, and Edgar J. Den Beste was promoted to marketing officer. Mr. Anderl will head the newly formed financial services area of the bank. Formerly treasurer of Terra Chemicals International, he received his BS and MBA degrees from the University of South Dakota and has completed additional graduate stud ies at Purdue University and the University of Chicago. Mr. Roberts joined the bank in 1962 and has held various positions. His new duties will be in the operations area of the bank. Mr. R oberts is a M orningside College graduate. Mr. Armbruster joined the bank in September, 1978, as a trust officer. His new responsibilities will include m anagem ent of the tru s t d e p a rt ment. He received his BA from the University of Michigan and his MA from the University of Pittsburg. Mr. Ranschau has been with the bank since 1975. He attended Morningside College and is president of the Sioux City Chapter of the American Institute of Banking. Mr. Den Beste joined F irst N ational in M arch, 1979, and as marketing officer will be responsible for the marketing and advertising programs. He received his BS from M orningside College and recently completed additional work a t the University of Notre Dame. Appointed at Indianola Dick C. Stoffer has been appointed assistant commercial loan officer at Peoples T rust & Savings Bank, Indianola. He will be responsible for assisting business, commercial and agricultural loan customers. Mr. Stoffer, a 1977 graduate of Simpson College, has been a loan officer at Peoples Bank, specializing in consumer loans, for two years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FIRST NATIONAL BANK St. Joseph, Missouri 64502 Call Telephone (816) 279-2721 Ed Boos, Bill Manring, Dale Maudlin, Macon Dudley. A ffilia te o f F irs t M id w e s t B a n c o rp , Inc. M e m b e r F .D .I.C . Northwestern Banker, September 1979 132 Iow a N ew s 142 Attend Agricultural Credit School Banks of Iowa Board Names New Comptroller F. Forbes Olberg, chairman and credit school was held June 4-15 on chief executive officer of Banks of the ISU campus. There were 64 members of the 1979 Iowa, Inc., Cedar graduating class. E. G. Stoneberg, Rapids, has an University and the Iowa Bankers A ssociation. The 34th annual ag ISU professor of economics, is the nounced the ap pointment of Du school’s director. ane P. St. John a s comptroller Class of 1979 and chief ac counting officer. Mr. St. John is a graduate of the U n i v e r s i t y of N o rth e rn lo w a D. P. ST. JO HN and is a Certified Public Accountant. He was m ost recently w ith Life Investors, Inc., Cedar Rapids, and prior to that was with the public accounting firm of Coopers & Lybrand, Des Moines. He succeeds Richard C. Stoufer who has accepted a position with a public accounting firm in Council Bluffs. RECORD 142 enrollees attended the 1979 A gricultural Credit A School sponsored by Iowa S tate ROW 1— (from left) Al Romo, Don Shippy, Gail L. Leeper, Ron Lenhart, Ruth Patrick, Jim Vigars, Unidentified, Kevin Jensen, Dan Brady and Dave Lingo. ROW 2 — Bill Stephens, Ray Schneider, Danny Gold, Ron Wilson, Jerry Brown, Ron Warford, John Ryan, Marvin Hartz, Doug Schuverand Noran W. Clatanoff. ROW 3—-Vince Branigan, Kenneth Kruse, Helen Overman, Don Rouwenhorst, Paul E. Manson, Jim McCarthy, Dennis Weiss, Robert Scheitler, Cal Cleveringa and Thaddeus A. Jakiela. ROW 4 — Robert E. Hanley, Larry Carey, Bill Doubler, Wayne Donohue, Brad Hughes, Robert Alexander, Greg Shields, Randy Von Ahsen, Dennis VandeLune, and Mike Sogard. ROW 5—-Dwight Stewart, Paul L. Cernik, Nyle Johnson, Jack Lytle, Justin Collier, Don Fletcher, Larry Riveland, Hal Sauer, Bernie Lattyak, and R. W. Nun. ROW 6— Rollin Harder, Jerry Woodin, Carl Jordan, Lee Bachand, Mike Bauer, Steve Brady, Mike Stoessel, Allen Fitch, Don Frazer and Jerry A. Jobe. Not pictured: Dan Siefer and John C. Beeh. Class of 1980 Allie M. McQueen Farmers State Bank, Ridgeway, has reported the July 13 death of Allie M. McQueen, a longtime director. She was the widow of I. G. McQueen, former state bank examiner and president of Farmers State Bank, who died in 1944. Mrs. McQueen assumed a position on the board of directors in that year and served for 35 years, missing only four monthly meetings during that period because of recent declining health. Iowa Bankers Office Makes Reassignments ROW 1 —(from left) Jim Rutt, Nancy Lenz, Connie Blake, David Dvergsten, William Albright, Ernie Hulinsky, Walt Casson, Michael Griffin, Mark Wagner, Dave Harris, Bernie Gronstal and Rich Brown. ROW 2— Dennis Robus, Cliff Knippel, Richard Chynoweth, Dick Warden, Dennis Earhart, Stanley Farmer, Bill Tufford, E. B. Smith, Doug Rieken, Dick Pease, Chuck Wilgenbusch and Dennis Thompson. ROW 3— Ron Allan, Dick Stoffer, Martin Mushrush, Paul Johnson, John Gill, Wayne Nielsen, Jim Sodey, Cal Johnson, Rodney Patterson, T.J. Richards and Doug Schmidt. ROW 4 — Larry Lord, Larry Rogers, Mike Dusenbery, Roger D. Johnson, Douglas G. Ulrich, David G. Wingert, Hallard DeJong, Roger C. Walston, Randy Mortensen and Mike Grim. ROW 5— Roger Kosizek, Duane Loots, Harold Kerndt, Tom Main, Charles Pfaff, Bill Dohrmann, Doug Schweitzer, Rich Halverson, Virgil Head and Jim Rohlfsen. ROW 6 — Tom A. Neuhaus, Dave Binder, Tim Harrison, Jay J. Fahn, Wes Ehrecke, Robert Cline, George L. McFadden, James L. Young, Ronald Juffer, Joe Simington and Daryl Currie. ROW 7—Tom Atkinson, Arlyn Hemmen, Scott Homan, Kent Velde, J.M. Beltramo, Stanley Rediger, Mark L. Buckley, Jim Seitz, Bob Hanes and Steve Kruse. Not pictured: Jack Hall, Steve C. Knutson and Dennis Hartman. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Teresa Monahan has been named administrative assistant in the new Iowa Bankers M ortgage Corpor ation, which was recently organized by the Iowa Bankers Association. Miss Monahan has been secretary to Mark Douglas, IB A public relations director. Succeeding her in that work with Mr. Douglas is Claudia Freeman. Advanced at Decorah Neal Sloan has been advanced from assistant vice president to full vice president at the Decorah State Bank. He joined the bank’s instalment loan departm ent 12 years ago and presently manages that department. 133 White & Co. and Stifel Nicolaus. He is a graduate of the University of Iowa. Iowa N ew s Exhibitors for 93rd Iowa Convention will be on display during the 93rd Iowa Bankers E Association convention in the new x h ib it s Des Moines Civic Center. These exhibits will be open to convention registrants from 3 p.m. to 6 p.m. on Sunday, and 8 a.m. to 5 p.m. on Monday and Tuesday. Convention registrants and spouses are invited to pick up door prize drawing tickets at any booth for a chance to win one of four fabulous prizes: Panasonic video recorder; Panasonic 19” color televi sion; Panasonic A M /FM 6-band portable radio; weekend for two at Crown Center, Kansas City, Mo. E xhibitors registered by early August include the following: Bank Building Corporation Banks of Iowa Computer Services Brandt Money Handling Machines Daktronics, Inc. Des Moines Stamp Manufacturing Co. Electronic Advertising Systems, Inc, Hawkeye Bancorporation Iowa Bankers Insurance & Services, Inc. Kirk Gross Company LeFebure Corporation Life Investors, Inc. —Credit Division MGIC M & M Sales Company National Fidelity Life Insurance Co. USLife Credit Life Insurance Co. United Business Equipment Corp. Marketing Outlooks, Inc. Data Business Equipment Koch Brothers HBE Bank Facilities Corp. Northwestern Bell Telephone Co. Burroughs Corp. NCR Corp. Eastman Kodak Co. —Business Sys tems Markets Division Career Fashions, Inc. General Bank Equipm ent & S ys tems, Inc. Marquis Productions, Inc. Credit Bureau Services, Inc. Joins Hills Bank & Trust Ray G. Glass has joined the Hills Bank & Trust Company as an offi cer trainee. He is a recent graduate in animal science from Iowa State University and is a Sac City native. Appointed at Banking Dept. Randolph P. Steig has been ap pointed assistant to the Iowa superi n t e n d e n t of b a n k i n g . Mr . Steig joined the d e p a r t m e n t of bankingafter graduating from Buena Vista Col lege in 1969. After a tour of Named Resident Manager duty with the Gene E. Brawner has been Army, he return R. P. STEIG appointed resident manager of the ed to the depart Iowa City office of Dain, Kalman & ment in 1971 as an examiner. Quail, Inc. He had been assistant Since 1977 he has held the posi manager of the office since 1975. tion of bank examination analyst. Prior to joining DKQ, Mr. Brawner Mr. Steig has attended various ex was a vice presid en t/m an ag er of aminer schools and seminars. Of Sioux C ity An Affiliate of Northwest Bancorporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 134 Iowa N ew s 1979 Livestock Outlook . . . (Continued from page 34) funding and to accept a higher leverage position, coupled with reduction of market risks by hedging and forward contracts. Peter D. Mesling, president, First National Bank and Trust Company, Dickinson, N.D.: Our producers are trying to stay current on weights and readiness. They are getting good, productive heifers ready for next year. Our problems include: 1. Rising cost of money for operating and capital expenditures. 2. Increased cost of energy, along with problems with supplies. 3. Transportation of produce and commodities. D. E. Osmera, president, Wymore State Bank, Wymore, Neb.: There are lots of hogs here and several new farrow-finishing units were installed in the area last year. Hog prices are expected to stay in the upper 20’s. For cattle, this is mainly a cow-calf area. The cow man is optimistic, holding back heifers to increase his herd. Feeders are cautious, however, but it looks like a lot of grain this year, so we expect them to buy. Money will be expensive. The most important problems are: 1. Inflation—can livestock and grain prices keep up with rising fixed costs? 2. Corporations. 3. Management’s ability will be more important than ever before. Allan Larson, president, Farmers State Bank, Winner, S.D.: The large feed supplies will probably keep the calf price at a high level. Our most important problems will be fast rising operating costs and the fuel shortage. Tom Holman, assistan t vice president-ag loan department, First National Bank of Laramie, Wyo.: The corn crop and related energy problems are critical to the meat complex. Problems we face consist of supply variables—energy unavailability and costs, and foreign grain sales. The demand variable is the U.S. economy. Merv Aegerter, vice president, First National Bank of Omaha: Weight gains on backed-up cattle hopefully should be getting moved out by September and this summer’s weak demand should improve. There is plenty of pork and poultry available to keep prices established through the fall. The size of the corn crop, and price, could be a factor in how much hog liquidation we see. The overall economy also is a factor. Transportation is a big problem. The average rail basis at Corn Belt elevators west of the Mississippi River is an unbelieveable 55 cents under nearby futures quotes. The spread has doubled since July. The reasons: 1. Most reserve corn is concentrated west of the river, in Nebraska, Iowa and Minnesota, and these western markets can’t get shipments. 2. Another big corn crop in prospect (as of August 1). This means it will have to be stored and moved later; hopefully, at better prices than those at harvest. Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lynn D. Grobel, president, First National Bank of Glasgow, Mont.: Current slightly lower livestock prices do not seem to be following normal curve characteristics. We believe, therefore, the decline in market prices to be only temporary. A severe recession and accompanying unemployment could substantially reduce the per capita consumption of beef and cause a further and more deepening price decline. However, with the A dm inistration, the Congress and the Federal Reserve System having had so much forewarning of a recession, it is difficult to believe that such a change in the economy should be anything but a mild adjustment. This being the case, I would look for cattle prices to return to recent favorable levels over the next 6-9 months. Several of the m ost im portant factors facing agriculture today are two that have been around for years —cost control and stable-predictable m arket conditions. E. J. Leahy, president, Northwestern State Bank, Orange City, la.: Cattle: The Northwest Iowa cattle feeders have been selling their fat cattle when they reach the desired market weights. There doesn’t seem to be any holding of fat cattle for the market to improve. After the 1978 calf crop that is now in the finishing years is marketed within the next 60-90 days, there don’t seem to be many intermediate weight cattle around for marketing during the last 60 days of 1979. Hogs: There are a lot of hogs in this northwest Iowa area. It appears we will be approaching the peak in hog numbers in the next six months. This hog cycle looks like the last one that peaked out in the fall of 1976. We will have to look at the next six months as having too many hogs, which will depress market prices. The crop situation is looking extremely good. This will put pressure on to purchase feeder cattle and to keep hog production up near current levels. Inflation, and the several aspects of it, is a very serious problem and will be over the next several years. Some of the aspects are: A) Cost of farm operating expenses continue to escalate—causing a cost price squeeze. The energy situation is going to add to these costs considerably. B) The increased am ount of capital investm ent needed to stay in farming. 135 “I’m Larry Newtson. I can help you develop a program to maximize your earnings from the big, growing market for Mobile Homes.” A prominent financier recently stated, “As new con ventional site-built home prices continue to rise and the economics of factory-built housing comes to the fore, we expect mobile/manufactured homes to capture MOST of the under $50,000 single-family market.” Makes sense. People are going to buy the housing they can afford. I can assist you in designing a Manufactured Housing program to fit your installment loan requirements. If you’re in Illinois, Wisconsin, Minnesota or Eastern Iowa and want to know more about this profitable, growing market— give me a call. Upper Northwest Payment Plans Company An Affiliate Of J.T. MILLER COM R 1 0 0 0 CURRIE AVENUE • M INNEAPOLIS, MINNESOTA 5 5 4 0 3 (6 1 2 ) 3 3 8 -0 3 3 3 PROVIDING INSURANCE TO THE FINANCIAL COMMUNITY SINCE 1926 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, September 1979 136 Iow a N ew s C) The increasing difficult time for young farmers to get started in farming. D) The increase in the size of farm operations in order to be efficient in turn means larger lines of credit. Some of these lines are getting too large for country banks to handle. This is not due to the quality of the credit, but due to the concentration of credit extended to the customer. This could create a situation where most of the larger farmers using a lot of credit will be financed outside of the banking circles. Brock Hessing, vice president, Commercial National Bank, Peoria, HI.: In our marketing area we see a slight decrease in cattle receipts of approximately 3 % to 5 %. There is some evidence that producers are holding for an increase in price and not marketing according to finish, resulting in overweight cattle. We estimated a 10 % to 12 % increase in the number of hogs going to market. The situation is the same here with the tendency being to hold hogs beyond desirable weights, resulting in additional tonnage of pork. Crop prospects for both corn and soybeans are good to excellent. Another good rain would be ideal. The biggest problems facing agriculture in the next few years are the continuing increase in the costs of production and the availability of funds to finance these increased costs. If the livestock producer is to cope with this situation, he must do a better job of marketing his products. We have always been an advocate of a strong central market, and fortunately Peoria has provided that with aggressive commission firms and interested order buyers. The availability of funds should not be a problem for the good producers; however, there may be shortages in some areas. Many banks throughout Illinois in recent years have traded loans with their neighbors or other banks in the same county during a period of strong loan demand; when one bank is full, everyone is full. Regional correspondent banks can help to ease this situation by bringing outside funds into these respective communities with the proper use of loan participations. Robert H. Waller, president, Midland National Bank, of Billings, Mont.: A dry summer and potential hay shortage should cause some extra movement of replacement cattle—also, the summer will likely cause somewhat lighter calves. Local feeders will be more conservative, which is occasioned by several factors. 1. Two consecutive severe winters have curtailed satisfactory gains. 2. Late spring indicates short supply of silage crops and other roughage. 3. Escalating feed costs. Promoted at K.C. Fed Marvin Duncan has been promo ted to the official staff at the Fed eral Reserve Bank of Kansas City as assistant vice president and economist, according to an an nouncement by Roger Guffey, president. Mr. Duncan, agricultural economist in the research division, Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4. Losses currently being sustained on cattle put on feed this past spring. 5. Lack of fat cattle buyers in our market. The program in our area is changing as some feeders shift to backgrounding and selling warmed-up cattle or shipping to other areas for finishing and sale. Cattle numbers are about normal, with the exception of feeder heifers, which could be off as much as 60% since most heifers bred back during the summer. No large hog producers are in our area—supply is about average. The market currently is at a depressed level but we look for a decisive turn-around in the fourth quarter. The majority of agriculture products will be receiving appreciably more dollars per unit than in the past. Prices will be seeking a new plateau—one more realistic as it relates to return on investment. During this transition period, which could be of a three to five-year duration, prices will fluctuate substantially. Government action will continue to play a major role in the life of the farmer/rancher. Following are a few areas of concern: 1. Import and export policies which can disrupt markets overnight; i.e. current consideration to limit export of hides and grains. 2. R egulation as it applies to use of effective herbicides, pesticides and feed additives. 3. Environment and health considerations. 4. Energy crunch—as it relates to not only fuel costs, but fertilizer as well. 5. Inheritance taxes which have placed abnormally heavy burdens on the continuance of the family farm. Finding sufficient capital to fund operating and expansion needs at an appropriate cost benefit relationship will remain a major challenge for the farmer/ rancher. Anonymous: Cattle on feed numbers are down. Fat cattle marketings at present are very current and our customers have been keeping cattle ready for market very current. Liquidation of hogs is already starting and will continue into 1980 or until hogs are in a profit position again. Energy availability of credit for agriculture in our area is a problem now and must be solved in the near future for us to be competitive. Anonymous: On cattle, everything seems wrong except total numbers, which are in the producer’s favor. As to problem s, I would list inflation, wild fluctuations in the market (example—fat cattle down $15 cwt in a month, corn down 40 cents in two weeks) which makes planning difficult, and energy supply and at what cost? □ came to the bank in 1975. He has written numerous articles for the bank’s monthly economic review, spoken before many banking and agricultural groups in the Tenth Federal Reserve District and play ed a major role in developing the bank’s 1978 symposium on interna tional agricultural trade. Originally from North Dakota, Mr. Duncan earned BS and MS degrees from North Dakota State University in Fargo, and a Ph.D in agricultural economics from Iowa State University. Before joining the bank, he was a member of the re search staffs at North Dakota State and at the Center for Agri cultural and Rural Development at Iowa State. 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. 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. d. 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. A customer with lending limit problems. Th§ 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 AND BANKS PARTICIPATING WITH LEASEPLAN, INC. A *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 1 7) 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 tank Parkersburg, Iowa 37) Osceola State tank & Trust Osceola, Iowa 38) Farmers Savings tank Princeton, Iowa 39) First State tank Fredericksburg, Iowa 40) South Ottumwa Savings tank Ottumwa, Iowa 41) Schuyler County State Bank Lancaster, Missouri 42) First National tank 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 tank Jesup, Iowa 47) Puget Sound National Bank Tacoma, Washington 'Lead tank L easeP lan , Inc. 545 - 31st Street Des Moines, Iowa 50312 R. L. “ D ick” S e llo n , P resident Northwestern Banker, September 1979 138 Iowa N ew s Six Vice Presidents Named at Waterloo The board of directors of the Na tional Bank of W aterloo has announed the following prom otions: Joe McGrane and Jim Martin, vice president and trust officer, and Jim Freet, George Scully, Max Cory and David R. Sasse, vice president. Mr. McGrane joined the bank’s trust department as a trust repre sentative in 1974 after graduating from the University of Iowa Law School. He was elected an assistant Mr. Freet has a degree in math from Loras College, Dubuque. He joined the bank in 1977 as a sys- J. FREET G. SCULLY terns analyst in the computer divi sion and was elected assistant vice president last year. He formerly worked for a bank in Decatur, 111. Mr. Scully joined the tru st de partment as a trust representative in 1972 after g r a dua t i ng from Drake University Law School. He J. M cG RANE Joins Key City Bank J. MARTIN vice president in 1975 and an as sistant vice president and trust offi cer in 1976. Mr. Martin joined the bank as a trust representative in 1973 after serving as an assistant attorney general for the State of Iowa. He is a graduate of the U niversity of M. CORY D. SASSE Iowa Law School and was elected assistant vice president and trust received a BA degree from the Uni versity of Iowa in 1969. He was officer in 1974. Daktronics .......................................................................6 DatacardCorp., Minneapolis ..................................... 10 Davenport Bk. & Tr. Co................................................. 119 DeLuxe Forms Division ............................................... 25 Des Moines Stamp Co...................................................122 Downtown M e rchan ts......................................... 123-125 Drovers Bk. of C h ica g o ................................................. 99 Septem ber, 1979 Acorn Printing Co........................................................... 16 Aetna Business Credit ................................................... 7 American Express Co..................................................... 41 American Fletcher Nat’l. Bk......................................... 121 American Nat’l. Bk., Chicago ......................................54 American Nat'l. Bk., St. Paul ....................................... 65 American Tr.&Sav. Bk., Dubuque ............................105 Automated Systems of Iowa ......................................110 Banco Financial .........................................................21 BancNorthwest .............................................................69 Bank of America ........................................................... 35 Banks of Iowa Computer Service ................... 100-101 BankersTr. Co., Des Moines ....................................... 94 Beh, Carleton D., Des Moines ....................................114 Brandt .............................................................................5 Capital City St. Bk., Des Moines ................................117 Central Nat’l. B k.& Tr. Co., Des Moines ..................129 Chase Manhattan Bank N. A ........................................... 45 Chiles Heider&Co........................................................116 Commerce Bank, Kansas C i t y ......................................29 Commercial Nat’l. Bk., P e o ria ..................................... 57 Continental Bank, Chicago ......................................... 43 Continental Western Ins., Des M o in e s ........................98 Cook, Thomas Travelers Cheques ..............................8-9 Northwestern Banker, September 1979 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis elected a trust officer in 1973, as sistant vice president in 1974 and has been in the commercial loan de partment since 1977. Mr. Cory has been assigned to the correspondent bank division with primary responsibility in commer cial loans originated by correspond- H ent bank in northeast Iowa. He joined the bank in 1957, serving in various departments, was elected an operations officer in 1973, an assistant vice president in 1976, and the vice president in charge of the instalment loan department in 1978. Mr. Sasse joined the bank in July as vice president in charge of the instalm ent loan departm ent. He had been employed with the Associ ates Corporation as manager of the A Waterloo office since 1965. Financial Institution Services, Inc................................. 53 First Banks of St. Joseph ........................................... 131 First Nat’l. Bk., Chicago ............................................ 17 First Nat’ l. Bk., D enve r................................................ 79 First Nat’ l. Bk., Lincoln .............................................. 89 First Nat’ l. Bk., Minneapolis ................................ 66-67 First Nat’ l. Bk., Omaha .............................................. 85 First Nat’ l. Bk., St. Paul .............................................. 63 First Nat’ l. Bk., St. Paul (B o n d s )................................ 72 First Nat’l. Bk., Sioux City ........................................ 103 First Nat’ l. City Travelers Cheques ..............................51 Forbes Products ........................................................... 44 Timothy J. W eitzel has joined the Key City B ank and T rust Company, y D u b u q u e , as a loan trainee. Mr. Weitzel received a BA degree in b u s in e s s adm inistration/finance from th e C o l l e g e of St . T hom as e a rlie r this year. Midland Nat’ l. Bk., Minneapolis ................................. 75 Mortgage Guaranty Insurance Co.............................14-15 MoslerSafeCo....................................................................... 3<• NCR Corp........................................................................ 11 Nat’l. Bk. of Commerce ............................................... 87 Nat’l. Blvd. Bk. of C h ic a g o ......................................... 115 Nat’l. Fidelity Life ....................................................... 127 Northern Tr. Co., Chicago ........................................... 47 Northwestern Bell Telephone ..................................... 39 Northwestern Nat’l. Bk., Minneapolis ........................60 Northwestern Nat’l. Bk., SiouxCity ..........................133 Omaha F in a n c ia l.................................................................22>Omaha Nat’l. Bk.........................................................30-31 Packers Nat’l. Bk., O m a h a ........................................... 86 Peoples Bk. &Tr., Cedar Rapids ................................112 Rocky Mountain BankCard System ............................81 Harris Bank, Chicago ................................................. 111 Hawkeye Bancorporation ......................................... 106 Heller C o.,W alterE ................................................... 18-19 Hummer, Wayne, C h ic a g o ......................................... 110 SLT Corporation, St. Louis ......................................... 59 Scarborough & Co...........................................................49 Schweser& Co., Omaha ............................................. 91 Security Nat’l. Bk., SiouxCity ................................... 120 >» Security Pacific Nat’l. Bk., Los A n g e le s ...........................93\ Shaw McDermott, Des Moines ................................. 106 r Smith, Barney, Harris & Upham ................................. 77 Images Gallery, M in n eap olis......................................122 Iowa Bkrs. Ins. & Services ......................................... 113 Iowa Des Moines Nat’l. Bk............................................140 Iowa Des Moines Nat'l. Bk. (Bonds) ..........................107 Terrace Red Carpet Inn, Orlando ..................................12 Travelers Express Co...................................................... 73 Turtle Inn, Daytona .....................................................108 Gross, Kirk & Co..............................................................24 Kooker, E a r l................................................................. 112 LaSalle Nat’ l. Bk., Chicago ........................................109 Lease Plan, Inc., Des Moines ................................... 137 Manufacturers HanoverTr., New York ........................13 Marquette Nat’l. Bk., Minneapolis ........................70-71 MercantileTr. Co., St. Louis ........................................23 Merchants Nat’l. Bk., Cedar Rapids ..............................2 United Business Equipment ....................................... 20 United Guaranty Ins. Co............................................... 135 United Missouri Bk. of Kansas ................................... 26 United States Check Book Co.................................88,104 UnitedStates Nat’l. Bk., Omaha ................................. 82 Upper Northwest Payment Plans ..............................139 Valley Nat’l. Bk., Des Moines ..................................... 97 VanW agenen,G.D.&Co., Minneapolis ..................108 "tot ORADO , AliKÀNSÀs' 10uiiiÄN/r UNITED GUARANTY REGIONAL UNDERWRITING OFFICES Our Board Room It wasn’t random dart throwing that determined the locations of our regional underwriting offices. You did. This is our network of over 35 regional underwriting offices, strategically located in key lending markets to serve you better. With more underwriting offices than any of our competitors, we can guarantee one day processing of applications and issuance of written “ Commitment and Certificate” forms. And because of our regional underwriting philosophy we are better “ tuned-in” to market conditions in your area. In addition, the specialists at our nine regional secondary marketing centers have up-to-theminute information on offerings in your area they’d like to share. The most regional underwriting offices. Same day commitments. More lender support services. More to come. That’s United Guaranty. We’re the one to watch in 1979 . . . and beyond. ^ U n ite d G u a ra n ty THE MORTGAGE INSURER 823 N. ELM STREET • GREENSBORO, NC 27401 800/334-8966 We are the innovators. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Des M oines Civic Center: A Brand Mew Reason to Come to The Bankers Convention! Thanks to a beautiful new Civic Center in Downtown D es Moines and an excellent professional program, you can look forward to another fine Iowa Bankers Convention in 1 9 7 9 . All of us at the lowa-Des Moines look forward to getting together with you during the meetings, and at our Main Bank. S ee you September 23-25! IOWA . nes/vvoines» mtm A M NAT K THAI BAN K Yes, you can get a lot of help for your money. Member FDIC An Affiliate of Northwest Bancorporation 7th & Walnut, D es Moines, Iowa 5 0 3 0 4 (5 1 5 ) 2 4 5 -3 1 3 1 George Milligan Bob Buenneke Lance Davenport Bernie Kersey https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis VoldyVanags Dorothea Wolfe John Rigler Garry Frandson © IOWA DES MOINES NATIONAL BANK 1979 j
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