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ABA President-Elect
Lew Jenkins
. . . at work

. . . and at play

• ABA convention program
• Iowa convention program
• Annual livestock and ag outlook
Federal Reserve Bank of St. Louis

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"D o in g th e rig h t th in g at th e rig h t
tim e is basic to success in b u sin e ss.
W h en an in v e sto r sells a stock too
early, h e loses profit p o ten tial. W h en a
farm er p lan ts a crop too late, h e loses
y ield p o ten tial.
P roper tim in g is also im p o rta n t in
b a n k in g . In o u r C o rre sp o n d en t D e­
p a rtm e n t w e use cu rren t d ata pro cess­
in g rep o rts to m axim ize Fed F u n d
p o tential. D etail check collection
schedules an d so p h istica te d analysis
te c h n iq u es enable u s to p ass availa­

b ility on to b a n k s for full u tiliz a tio n of
th e ir in v e stm e n t p o ten tial.
N o w is th e rig h t tim e to take a d ­
v an tag e of M NB's experience in cash
collection, Fed F u n d s in v e stm en ts,
an d overline assistance. L earn m ore
a b o u t o u r co rre sp o n d e n t services a n d
im p ro v e y o u r p ro fitab ility ."
Call 319-398-4217 or d ial toll free,
1-800-332-5991 a n d ask for Stan R.
Farmer, Jerry N . Trudo, Terry M.
M artin, D ale C. Froehlch or John E.
M angold. Call now ! The tim e is right!

Merchants National Bank 1:1
Cedar Rapids, Iowa 52401

Member F.D.I.C.


No. 1416 Northwestern Banker (USPS 397-620) is published m onthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa
50309. S ubscription $1.50 per copy. $15 per year. Second class postage paid at Des Moines, Iowa and at additional m ailing office. POSTMASTER: Send
address changes to Northwestern Banker, 306 Fifteenth Street, Des Moines, Iowa 50309.
Digitized forallFRASER
Federal Reserve Bank of St. Louis

The inside story
about the ingenious lock that’s
deposit boxes.
)rig in ally invented to provide
otal security in m ilitary
applications (where cost is
no object), this patented
do u ble key-change­
a b l e lock is offered ex­
c lu siv ely by LeFebure
for safe deposit boxes
and lockers.


Available at no
extra cost
It was designed around the
prem ise that changing keys is
a lot easier than changing
•o c k s . W hen changes must be
m ade to preserve security, this
lock provides unm atched con­
Here are the ways it can
d ra m a tic a lly im prove the pro­
fitability, flexib ility and secu­
rity of your safe deposit de­
partm ent:






Because it’s do u ble keychangeable, unrented
boxes can be used for bank
storage using different
guard keys to assure internal security.
M ore security for your cus­
tom ers, too. The frau d u lent
d uplication of unrented
keys is effectively elim inated.
Elim inates the cost of keep­
ing an expensive inventory
of extra locks or the need to
rotate locks. All unrented
boxes are always available
fo r rent.
Should a custom er lose a
key, sim ply open the box
with the rem aining key, reset
the lock for a new set of
keys, and destroy the old
C a n ’t be opened by conventional drilling and picking
m ethods. M ore secure than
ordinary locks.
Federal Reserve Bank of St. Louis

A marvel of me­
chanical engineering,
the LeFebure double keychangeable lock has far fewer
parts than single key-changeable
locks. It’s easier to operate, too.

Far more reliable than single
key-changeable locks, its d e­
sign sim plicity enables us to
m ake it available on all LeFe­
bure boxes at no extra cost.

It’s another “first”
from the company
that’s 1ST IN IDEAS
W hile others are content to
build safe deposit boxes the
way they w ere built decades

ago, it took LeFebure to apply
new technology to an old
It’s an exam ple of the ways
w e im prove banking through
innovative thinking.

Talk to your
LeFebure Sales
There are many ways your
LeFebure Sales E ngineer can
help you with fresh, useful
ideas. He offers the most com ­
plete product line in the indus­
try today.
Give him a problem and h e ’ll
give you a cost efficien t solu­



Division of Kidde. Inc.

Cedar Rapids, Iowa 52406

Yes! I want ideas.
□ Send literature ab o u t
LeFebure safe deposit boxes. I
□ Have my LeFebure Sales
E n g in eer co n tact me.
T itle




Good intentions and lots of late-night paperwork are
one way to keep pace with rapidly changing devel­
opments in the money market. But there is a better
way — ju st call the investm ent specialists a t U.S.
National Bank.
We can help you make the most of idle funds. Our
investment counselors are experienced in the technical
skills of funds management. And,
we have access to up-to-theminute m arket data.

So you can rely on us for a broad range of high yielding
investment opportunities. We offer government and
municipal bonds, time certificates, repurchase agree­
ments, commercial paper, and more.
For more information on our services, call the Invest­
m ent Division of U.S. National Bank today: 402/5362215. Call toll free: In N ebraska, 1-800-642-8270;
In Iowa, South D ak o ta & Wyomir®,
U S N a t io n a l
Member F CMC

b a n k

« omaha

An Affiliate of Northwest Bancorporation

S H I ■

Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis


O M tiV
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SEPTEMBER 1981 • 88th Year • No. 1416

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ABA President-Elect Llewellyn Jenkins is pictured on the front cover testifying
before a Congressional com m ittee on behalf of ABA, and also relaxing with Mrs.
Jenkins as they start out for a round of golf. Lew Jenkins is slated to take over as
president of ABA at the National convention in San Francisco October 7. He is
vice chairman of Manufacturers Hanover Trust Company, New York, where he
has been a noted part of senior management for some years. As ABA president,
he w ill succeed Lee E. Gunderson, president of the Bank of Osceola, Wis. Details
of the ABA’s 107th convention program start on page 30.

A N N U A L L IV E S T O C K & A G O U T L O O K


Part I - The outlook

Area bankers assess near-term conditions


Part II - Deregulation and farmers

Ag bankers comment at ABA media conference


Part III - Bright, uncertain outlook

Midwest Banking Institute instructors comment


Part IV - Industry at crossroads

Farm leader outlines 3 key areas for stability


95th Annual Convention Program
You W ill See Them at the 95th Convention
Interview with Top IBA Executives
Group Chairmen Report Area C onditions
Mail Ballot Used to Elect IBA Officers
Des Moines News


Bank Promotions
Corporate News
South Dakota
Twin Cities
North Dakota


Index of Advertisers

30615th Street, Des Moines, Iowa50309

Phone (515) 244-8163


E ditor

A ssociate Publisher

A ssociate E ditor

Malcolm K. Freeland

Ben Haller, Jr.

Steve Burch

Louise Ritchhart

A uditor

Field R epresentative

Field R epresentative

Debbie Hibbert

Glen Hicks

Paul Masters

No. 1416 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines, Iowa 50309. Subscription $1.50 per copy. $15 per year. Second class postage paid at Des Moines, Iowa and at additional mailing office.
POSTMASTER: Send all address changes to Northwestern Banker, 306 Fifteenth Street, Des Moines, Iowa 50309.
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


Integrity in Managing Data Since 1897




New Mexico
North Dakota

South Dakota

System-to-System • Tape-to-Tape • Autodata • Payment Record Format
Prescreened Promotions • Account Reviews • Credit Card Recovery



2850 Metro Drive, Suite 533
Minneapolis, Minnesota 55420

2323 So. Troy, Suite 311 -A
Aurora, Colorado 80014

(612) 854-0915
E. L. “Pete” Hochenedel, III - Director

(303) 695-6840
R. M. Denny - Director
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


Convention Calendar
ABA—American Bankers Association
AIB— American Institute of Banking
BAI — Bank A dm inistration Institute
BMA— Bank Marketing Association
IBAA— Independent Bankers Association
of America
NABW— National Association of Bank
Women, Inc.
RMA— Robert Morris Associates

National Conventions & Schools
Sept. 13-16—ABA National Personnel
Conference, Loews Anatole, Dallas, Tex.
Sept. 13-16— BMA 66th Annual Conven­
tion, W ashington, D.C.
Sept. 27-30— National Association of Bank
W omen’s annual convention, Hyatt Re­
gency, Chicago.
Oct. 3-7— ABA Annual Convention, San
Francisco, Cal.
Oct. 18-20—ABA International Banking
Conference, Grand Hyatt, N.Y., N.Y.
Oct. 18-21— BMA Commercial Marketing
Conference, Boston, Mass.
Oct. 18-22— IBAA 22nd Bank Executive
Development Seminar, Ball State Univer­
sity, Muncie, Ind.
Oct. 25-31— ABA National Compliance
School, Univ. of Okla., Norman, Okla.
Oct. 28-30— BMA Marketing in a Com m uni­
ty Bank Seminar, Dallas, Tex.
Nov. 8-11— BAI 57th National Convention,
Sheraton W aikiki, H onolulu, Hawaii.
Nov. 8-11— IBAA Sem inar/W orkshop on
Bank Ownership, Hyatt Regency, A tlan­
ta, Ga.
Nov. 8-11—ABA National Agricultural
Bankers Conference, Sheraton W ashing­
ton, W ashington, D.C.
Nov. 15-18— ABA National Correspondent
Banking Conference, Hyatt Regency
Kansas City, Kansas City, Mo.
February 10-12, 1982— ABA Bank Invest-

ments & Funds Management Confer­
ence, Hotel St. Francis, San Francisco,

State Conventions & Schools
Sept. 16-17— IBA Agricultural
Conference, Ramada Inn, Champaign,
Oct. 28-30— BMA Marketing in a Communi­
ty Bank Seminar, Dallas, Tex.
Nov. 8-11— BAI 57th National Convention,
Sheraton W aikiki, Honolulu, Hawaii.
Nov. 8-11— IBAA Seminar/W orkshop on
Bank Ownership, Hyatt Regency, Atlan­
ta, Ga.
Nov. 8-11— ABA National Agricultural
Bankers Conference, Sheraton Washing­
ton, W ashington, D.C.
Nov. 15-18— ABA National Correspondent
Banking Conference, Hyatt Regency
Kansas City, Kansas City, Mo.
March 14-18, 1982— IBAA 52nd annual
convention, Sheraton Waikiki Hotel,
Honolulu, Hawaii.
Sept. 20-22—95th annual IBA convention,
Des Moines.
Sept. 14-24— Minnesota D istrict Meetings;
seeschedule in Minnesota Newssection.
North Dakota:
16-18— Independent
Banks of North Dakota annual conven­
tion, Holiday Inn, Dickinson.
Sept. 21-24— NDBA Group Meetings; see
schedule in North Dakota News section.
South Dakota:
Sept. 14-18— SDBA Group Meetings; see
schedule in South Dakota News section.

William Isaac Named
Chairman of FDIC
William M. Isaac was named
Chairm an, effective A ugust 3, of the
Federal Deposit
Insurance Cor­
poration. He suc­
ceeds Irvine H.
Sprague, who will
remain on the
agency’s threemember board of
M r. Isaac com­
Sprague on the
leadership he provided the FDIC
during his chairm anship, adding “ I
look forward to his continued service
on the board of directors in the yearn
M r. Isaac, 37, was appointed to a
six-year term on the F D IC ’s board in
M arch, 1978. From 1974 to 1978 he
was vice president, general counsel
and secretary of F irst Kentucky
N ational Corporation and its subsidi­
aries, F irst N ational Bank of
Louisville and F irst K entucky T rust
Company. From 1969 to 1974 1<£
practiced law w ith Foley & Lardner,
Milwaukee, Wis.
A native of Bryan, Ohio, Mr. Isaac
received his undergraduate degree
from M iami U niversity, O x fo rd
Ohio, and his law degree (summa cum
laude) from The
Ohio State
U niversity, Columbus, Ohio.

Sheshunoff to Run PSI
With American Express

Wayne Hum m er & Co.
celebrates its first fifty years
Wayne Mummer & Co.
175 West Jackson Boulevard • Chicago, Illinois 60604
Members New York, American and Midwest Stock Exchanges

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


Am erican Express Company an­
nounced Ju ly 30 it has reached ®
agreem ent for a joint venture with
Sheshunoff and Company, Inc., of
A ustin, Tex., concerning the m an­
agem ent of Paym ent System s Inc., a
wholly owned American Expre
Founded in 1971, Sheshunoff and
Co. is a leading firm which specializes
in increasing bank profitability and
today has over 8,000 bank client®
Under the term s of the agreement,
Sheshunoff will m anage the activities
of P SI for a period of three years and
has an unqualified option to purchase
PSI for an undisclosed price.
Based in A tlanta, PSI for a leading
information and research firm in the
fields of new banking technology,
affluent consumer m arketing, dere­
gulation and new product d e v e lo p
m ent for financial institutions.


Every time money orders leave
your institution they leave paperwork be­
hind. So do official checks and interest
and dividend checks.
Think of all the reconciling, filing
and storing. The tracing and refunding.
Then think of what those jobs cost in
time and money.
If you use American Express®pro­
grams for these items, handling them takes less time and costs
less money. Because we do the paperwork for you.
The Financial Institution Money Orders (FIMO®) are
printed with your name and supplied at no cost. You pay a modest
fee for each money order sold, but you control the profit because
you decide what to charge.
The Official Checks are tailored to your design and also
supplied free of charge. W hat’s more, your unlimited-amount
checks guarantee you substantial monthly income from the re­
mittance options we offer.
The Continuous Form Checks are tailored to your design
as well. And while there’s a modest fee for each, you’ll find it a
small price to pay for the interest and dividend check paperwork
that’s eliminated.
Remember, you’re in business to make money, not paper­
work. So send us the coupon for more information. It could be
the last piece of paperwork you handle for a long time.

Money Orders
Official Checks
Continuous Form Checks |
Mr. Gil Rosenwald
Please send me more information on I
V.P.—Marketing and Sales Operations
□ Money Orders □ Official Checks 1
Travelers Cheque Division
□ Continuous Form Checks
American Express Company—37th Floor
American Express Plaza, New York, NY 10004
Name-------------------------------------— ------------------------------------------Title.
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


Walter E. Heller & Company 105 W. Adams St., Chicago, II I 60603. Other Heller offices in New York * Boston ■Philadelphia • Montclair, N.J. • Baltimore _
New Orleans • Houston • Dallas • San Antonio • Phoenix • Tucson • Albuquerque • El Paso • Salt Lake City • Los Angeles • Newport Beach, CA • San Francisco V
N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis






Y o u d o n 't h a v e t o ra n in t o it.
There are many obstacles to keep you
from handling secured lending. It can be
costly. Time consuming. And without a
highly-qualified staff, it can becom e risky.
So your profits suffer by missing an attrac­
tive market.
You can remove these obstacles, by par­
ticipating with Heller. The Heller st&ff
becomes your secured lending depart­
ment. With over a half-century in the
secured financing business, Heller
people pioneered many of the modern
lending techniques.
Our people perform eight functions
necessary in administering your secured
loan, while your staff concentrates on your
primary banking business.

Field Examinations.
Heller’s field examiners conduct audits in
the borrower’s p lace of business af welltimed intervals. Their reports highlight cor­
rectable “conditions” before they become
problems. Your bank receives copies.

Frequent verification of collateralized
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 current
picture of the borrower’s financial posi­
tion, following trends affecting collateral
and operations. This continual review
leads to a reduction in b ad debt expense.

Heller’s policy is to process disbursements
or pay-downs respecting the customer’s
loan on the day we receive the collateral
or payments.

Reconciliation of Agings.
Each month Heller determines which of
a borrower’s invoices represent eligible
collateral. We evaluate the individual
pieces of collateral in terms of their
“real dollar” value, as opposed to
computing their eligibility through some
mathematical formula.

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 fheir experi­
ence to avoid qualifications that may
sour the dealings.

Supplemental Loans.
When a secured loan includes inventory
and/or chattels, additional controls are
needed. We revolve our inventory loans
and keep them under close, continuous
control. Chattel values are determined by
specialists in machinery and equipment.

Yes, occasionally they happen. What
follows is the complex and demanding
period called a “workout,” a time when
only the specialized experience of the
lender and cool determination to
“see it out” can prevent a loss. Heller’s
record in handling these situations is
probably the best in the business.
More banks are entering into secured
lending through participations with Heller.
Your customer’s financial needs are
served. You keep your customer, continue
to provide his normal banking functions,
while you generate interest income from
your portion of the loan.
Find out about this marketable, profitable
lending concept. Call Heller today.

Financial Services


Syracuse • Minneapolis • Detroit • Grand Rapids • Cleveland • Kansas City • Denver • Atlanta • Charlotte • Miami • Tampa • Birmingham • Columbia, S.C.
Portland • Seattle • Spokane • Boise • San Juan, P.R. Heller services also available in Canada and twenty-three other countries around the world.
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 7987


12 State Associations
Move Ahead with Plans

Better business
through risk
An interest rate
futures program
tailored to my
bank’s needs
The needs of your bank are unique, and when it comes to planning an
interest rate risk management program you deserve personalized service.
The expert personnel of Dean Witter Reynolds' Financial Futures Divi­
sion otter you on-site development ot a complete hedging program
responsive to your special requirements. We can provide training for your
personnel, coordination of a total program and access to our computerized
market/arbitrage analyses.
For more information, please write or call Merrill R. Johnson or
Randall C. Peck, Regional Specialists in Financial Futures Hedging.
Dean Witter Reynolds Inc.. 18 18 Douglas Street. Omaha, Nebraska
68102. (402) 449-1600.

One investment firm
you’ll be glad to hear from.

Member SI PC

Please give me your current ideas on how I can use financial futures
hedging in my business.



C om pany


Address _
C ity ____

DigitizedN orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis





As announced in an earlier issue, 12
state banker associations ranging
from M innesota
and covering the
plains and north
have been form ­
ing an organiza­
tional plan, and
havebeenm oving
ahead with im ­
plem entation of
th a t plan in re­
cent days.
Robert E. H arris, executive vice
president of the Oklahoma Bankers
Association, who has been a p p o in t^
spokesm an for the group, said last
m onth th a t a further m eeting of
interested sta te association officials
was held in Chicago Ju ly 21 during
the C entral S tates Conference. The
interested sta te associations are
M ichigan, W isconsin, M innesota,
N orth D akota, South D akota,
Nebraska, Iowa, Illinois, M issouri,
K ansas, Oklahoma and Texas.
M r. H arris said they propose to
form a holding company to be owned
equally by the 12 groups, w ith three
representatives from each state
association on the governing body. 1®
will be funded by a minimal capital
injection from each association, as
well as a loan from each state. The
12-state group will be called Mid
America Banking Services Co., Inc®
He stated further th a t research is
being undertaken on four projects:

A B ankers Money M arket Fund.
An insurance company.
An A g Credit Corporation. ®
A secondary m ortgage comany.

These four Task Forces are to have
their reports ready within a m atter c®
weeks. Each association has a
deadline of Septem ber 3 to declare
w hether it will be a mem ber by
contributing its capital and m aking
its loan. The B ankers’ M M F has to®
priority as the first goal. The Task
Forces m et Ju ly 21 in Chicago a t the
C entral S tates meeting.
M r. H arris said any member
association m ay choose to utilize o®
bypass any or all of the four
program s. Income from the projects
will pay off the loans to the 12 state
associations. W hen organized the
new group will represent 7,500 bank®
holding $315 billion in deposits.

In the race
against time the
Chase is on.

Everywhere you look, the financial service industry is in revolution.
Volatile money markets swing 100 basis points in a single day. Decisions must
be made in hours or minutes, instead of weeks or days.
We’re all in the race. Whether you’re a commercial bank, thrift,
investment bank, broker, or insurance company —you need a partner
that responds quickly. Chase.
Chase can help your asset/liability balancing. And put you on the
fast track to diversification. We’ll work along with you and your customers
to approve overline credit in advance.
And when consumers clamor for fast banking, our private label
consumer services —like telephone home banking —can help keep yours
on the books.
Chase can tell you exactly what you have in any bank in the U.S.
With our InfoCash® system, we can execute and confirm your money transfers
all within minutes.
And we’ve automated securities processing too. Our real time
access link lets you retrieve and forward your securities from your own
terminal. In hours, not days. That’s banking on Chase Time and that’s
what we’ll do for your money.
Now more than ever, time is money. So call the Chase Manhattan
Bank. In the race against time, the Chase is on.

The Chase is on.

©1981 The Chase Manhattan Bank, N.A./Member F.D.I.
Federal Reserve Bank of St. Louis




Bank Promotions

ROM OTIONS and other an­
nouncem ents have been made by
the following banks:
American National Bank, Chi­
cago: John R. Tilton has been elected
a senior vice
president of the
bank and will
continue in his
position as the
head of the newly
organized invest­
m ent m anage­
m ent group. Mr.
Tilton joined the
ir \
bank in June,
1977, as a vice
president in the tru s t departm ent,
became division head of investm ent
research and strateg y in M ay, 1978,
and was appointed to his current
m anagem ent post in June of this
A graduate of Southw estern
College at M emphis, Mr. Tilton holds
an M .B .A . degree from Indiana
U niversity.
Am erican N ational m anagem ent
also announced th a t N athaniel B.
Jones, Stephen P. M anus and Robert
were named
presidents in the investm ent m anage­
m ent group. M r. Jones joined
American N ational recently w ith 12
years of previous business experi­
ence. M r. M anus joined the bank in
1976 as a portfolio m anager. Mr.
Schank joined the bank as a credit
analyst in June, 1966.
Also, four staff m embers were
elected to officer positions: Ted R.
Charanian to second vice president,
investm ent system s; M ark A. L ustig
to second vice president, auditing
division, and Diedre A. Eichelberger
and A rth u r P. H ofstetter to tru s t
investm ent officers, investm ent m an­
agem ent group.
Bank of New York: Owen M.
Q uattlebaum has been elected a senior
vice president, it was announced by
E lliott A verett, chairm an and chief
executive officer. Mr. Q uattlebaum
joined the bank in 1960 and is
m anager of the b an k ’s investm ent
counsel division.
He received a BA degree in history
in 1957 from the U niversity of
Georgia, A thens, and an MA degree
in law and diplomacy in 1959 from the
Fletcher School of Law
estern Banker, Septem ber,
DigitizedN for
Federal Reserve Bank of St. Louis


Diplomacy, Boston. He is a
C hartered Financial A nalyst.
Continental Bank, Chicago: Robert
A. H anson, president and chief
operating officer of Deere and
Company, has been elected to the
board of directors of Continental
Illinois Corporation and its principal
subsidiary, C ontinental Bank.



the holding com­
pany and bank
also elected four
vice presidents.
They are J . J o s ­
eph Anderson,
Gerald K. B erg­
m an, Eugene R.
Hollis W. Rademacher. All were previously senior
vice presidents.
M r. Anderson, 43, is responsible
for the controller’s and the system s
research and developm ent divisions.
He received his undergraduate degree
in 1960 from the U niversity of Notre
Dame, joined Continental in 1963,
and earned his MBA degree from the
U niversity of Chicago in 1968.
M r. Bergm an, 47, is head of the
special industries departm ent, which
is responsible for the b an k ’s lending
to energy, transportation
construction industries. He was
graduated from the U niversity of
M innesota in 1957, joined C ontinen­
tal the same year and became head of
the special industries divisions in

1974. He also serves as a director of
several subsidiaries of Continental®
M r. Croisant, 44, is responsible for
corporate personnel services and
corporate comm unications. A fter
receiving his undergraduate degree
from Loyola U niversity in 1959,
joined C ontinental the same year,
then later earned a graduate degree
from Loyola of Chicago in 1966.
M r. Radem acher, 46, is head of the
U .S. banking departm ent, which *
responsible for commercial lending to
custom ers in the U nited S tates. He is
also a 1957 graduate of the U niversity
of M innesota and joined Continental
the same year. M r. Radem acher w *
named head of the w estern divisions
in the commercial departm ent in
1975. He was elected a senior vice
president and nam ed head of all the
national divisions in 1976, assum ing
responsibility of the newly-formed
U.S. departm ent earlier this year.
Federal Reserve Bank of Kansas
City: Roger Guffey, president, ha®
announced the prom otion of Richard
Rasdall to vice president, and Virgil
Jones, m anager of statistical services
in the research division, to adm inis­
trative officer.
M r. Rasdall will provide senior
official supervision over the fiscal
agency and money departm ents.
Richard J . Klein, assistan t vica
president, replaces M r. Rasdall a®
supervising officer of the planning
and control departm ent.
Carroll H. W ilkerson, assistan t
vice president, replaces M r. Klein a i
head of the supervision su p p o rr
departm ent.
Thom as M. Hoenig, vice president
in charge of bank holding company
supervision, has been assignecL
additional support departm ent.
First National Bank of Chicago:
Curtis G. Anderson, 40, joined the
bank Septem ber 1 as senior v ic ^
president and head of the financial
products departm ent. In his new post
he is responsible for international
m erchant banking, venture capital,
trade finance, corporate finance, a n ^
leasing. He will report to President
Richard L. Thom as.
M r. A nderson previously was a
senior vice president at Citicorp in
New York, with which he had b e e ^
associated since 1967. For the p ast
year he served as head of the
tax-exem pt securities division of the
financial m arkets group. He also
served 12 years in in te rn a tio n a l
banking operations, the last four in

“ In an age when computers talk to computers,
w e never lose sight of w hat has made Manufacturers
Hanover the recognized leader in correspondent
banking: the human element. After all, silicon chips
and integrated circuits cannot replace the instincts,
reasoning and decision-making capabilities of our
calling officers.” Donald H. McCree. Jr.
Executive Vice President
Manufacturers Hanover Trust Company
Federal Reserve Bank of St. Louis

From the Golden Gate to the Golden Triangle, Manufacture;
It stands to reason th a t a bank's toughest customers
are other bankers.
That’s why it’s gratifying to us that so many banks—
in capitals of commerce like San Francisco and
Pittsburgh and in small rural towns as well— choose
Manufacturers Hanover as their correspondent in the
intensely competitive money center of New Vbrk. Today,
we serve over 2,700 banks across the U.S. and more
than 1.700 banks throughout the world.
Non-credit services move “stage center.”
In the current economic climate, many urban and
community banks are buffeted from two sides: the
pressure to remain competitive locally and the pressure
of costs in developing operational services of their own.
Relief rests with Manufacturers Hanover.
Federal Reserve Bank of St. Louis

In recent years, our substantial investment in com­
puter hardware and telecommunications equipment has
placed us among the pacesetters in automated banking^
operations. Equally important, we have applied this tech­
nology to formats that are useful to correspondents
of all sizes.
Systems, systems, systems.
In securities handling, MHT has created a processing
and reporting system called G e o P a c that establishes
a direct link between a dial-up terminal in your offices
and MHT in New York. Instantly, it relays the status of
trades and availability of funds.
Tb help serve the cash management needs of your *
corporate customers, MHT offers TRANSEND— a
computer-based system th a t’s part information source.

«Aiover is known as America’s premier “banker’s bank.’’
p a't analytical tool, part funds mover. For unparalleled
accuracy in stock transfers, MHT's TRANSIFAC is the
^ n ly system that enters data twice to catch errors
before a record is made.
It takes well-developed systems, too, for MHT to
provide correspondents with the most complete banksponsored package of insurance services. Now, in
# c ’diticn to employee benefit plans, we have expanded
our line to include comprehensive casualty coverage
to protect bank officers against modern-day risks.

Rather than a parade of unfamiliar faces, we serve
correspondents through individual calling officers who
concentrate on a geographic region. These knowledge­
able, all-around bankers not only know the territory—
the problems and priorities— but they are also able
to establish a steady and respectful rapport with their
local counterparts.
And that, above all, is what has made us what we
are today— the premier “banker’s bank” from one end
of the country to the other.

Our distinctive approach.
When our competitors call on correspondents, it’s
m o t unusual for the cast of bankers to change with
every service.
We do it differently at Manufacturers Hanover.

Federal Reserve Bank of St. Louis

Here are all the ways Manufacturers Hanover
serves the nation’s bankers. How can we serve you?



GeoPac Safekeeping
GeoPac Depository Processing (DTC)
GeoPac Information Exchange
GeoPac Securities Lending
Security Drafts
Coupon Collection


Availability Schedule
Automated End-Point Reporting
Early Bird Relay (to beat the
10 A.M. New York Clearing
House Deadline)


Dental Assistance Plan
Group Life Insurance Plan
Group Medical Plan
Long-Term Income Protection
Retirem ent Program
Casualty Insurance

Corporate Trust Services:

Debt Service Trustee
Debt Service Registrar and
Paying Agent
• TRAN SI FAC Equity Service Transfer
• Equity Service Registrar
• Equity Service Dividend
Reinvestment Agent
• Municipal Paying Agent Services
• Issuing Agent Services
(Certificates of Deposit and
Commercial Paper)
• Escrow Services
Institutional Services:

Professional Investment
Research/Computer Aided


Fixed Income Research Strategy
Trends (FIRST)
Trust New Business School
Personal Financial Planning


Bankers Acceptances
Federal Funds
Repurchase Agreements
MHC Commercial Paper
Other Commercial Paper
Certificates of Deposit
Municipal Securities
U.S. Government Securities and
Federal Agency Issues
Investment Counselling Program
for Correspondents

Export/Im port Services and

Reimbursement Letters of
Export/Im port Letters of Credit
Standby Letters o f Credit

Money Transfer Services:

Foreign Remittance
International Money Orders
Foreign Currency Banknotes
Bought and Sold

Other International Services.•

International Bank Statem ent
Foreign Credit Information
Foreign Exchange Trading
Foreign Exchange Advisory


Real Estate Participations
Loans to Bank Holding Companies
Reserve Position Loans


Commercial Financing


Tax Leases
Equipment Fi nance Structures


TRANSEND (a communicationsbased cash management system)
• Due From Account
• Domestic Collection
• Money Transfer & Wire
• Bank Money Orders
• Register Checks
• MOREC— Money Orders
• Gift Checks
• FINTECH (a library of 35
analysis programs to assist in
financial planning)


Business Credit Investigations
New Business Referrals
Travel Service/Personal Service
Sales and Product Knowledge
Marketing Consultant

service marks of Manufacturers Hanover.
Member FDIC

Ask now for your copy of our newly updated,
service-by-service guide to the
correspondent services of Manufacturers Hanover.
This new edition of our brochure contains page afte r page of
detailed descriptions o f all the services named above. It further
reinforces the fact th at no other correspondent bank offers such
a complete catalog of bank-to-bank services. For your copy, or answers
to any questions, see your Manufacturers Hanover Calling Officer.
Or write for the brochure, enclosing your business card, or call:
Donald E. Paul. Vice President
Manufacturers Hanover. National Division
350 Park Avenue
New York, N.Y. 10022
Telephone: (212) 286-5787
© 1981 Manufacturers Hanover Trust Company, New York New York
Federal Reserve Bank of St. Louis


_£harge of m erchant banking activities
the Asia-Pacific region. He holds
BA and MBA degrees from the
U niversity of W ashington in Seattle.
First National Bank of Kansas
(P ity : Michael A. Luby, J r ., and
Thom as G. P apa have been advanced
to senior vice presidents.



As m anager of the national
departm ent, M r. Luby is responsible
for the b a n k ’s commercial custom ers
beyond the m idwest. He joined the
% ank in 1973. He has BA and MBA
degrees from Southern M ethodist
U niversity in Dallas.
M r. P apa recently was nam ed head
of the correspondent/regional d é p a rt­
a ie n t and directs correspondent and
commercial banking for the m idwest
area. A fter serving w ith another
K ansas City bank for eight years, he
oined F irst N ational as vice
resident in 1979. He holds a BS
degree from the U niversity of K ansas
at Lawrence.
First National Bank in St. Louis:
#Villiam J . B arnett, J r ., vice
president, has been nam ed head of
the correspondent division, it was
announced recently by Clarence C.
Barksdale, chairm an and chief
•x e c u tiv e officer. M r.
B arnett
succeeds T. B arton French, senior
vice president, who has been
appointed head of the special
industries group.
M r. B arn ett joined F irst N ational
in 1974, holding m angem ent posi­
tions in several lending divisions of
the bank.
M r. Barksdale also announced the
E lection of seven new vice presidents

Federal Reserve Bank of St. Louis

and three new assistan t vice
The new vice presidents are: T.
Ellis Barnes, I I I , international; R.
Kenneth Bass, J r ., correspondent
banking; John G. Borders and F.
Howard M anning, J r., national
accounts; Jeffrey N. Miller, m etro­
politan; H arold C. Mueller, real
estate, and Dennis L. Noah,
international operations.
The new assistan t vice presidents
are: Joseph K. H ahn, energy; Alfred
H. K erth, III , com m unity affairs,
and John D. Spencer, cash m anage­
m ent.
Harris Bank, Chicago: Two new
executive vice presidents have been
elected. They are David S. Finch,
head of the tru s t departm ent, and
Dennis E. LeJeune, who heads the
investm ent departm ent and treasury
M r. Finch, 39, joined H arris in
1967 as a trainee and has held a series
of m angerial posts in the tru s t
departm ent.
M r. LeJeune, 39, joined H arris in
1966 and served in international
banking until 1980, when he assum ed
responsibility for the b a n k ’s m unici­
pal and governm ent bond trading and
bank funding, including money
m arkets, Eurodollar and foreign
exchange trading and portfolio
m anagem ent.
Richard J . Brown, vice president,
H arris B ank, has been nam ed general
m anager of the b a n k ’s London
branch. M r. Brown previously
headed the b an k ’s Planning Office.
Morgan Guaranty Trust Com­
pany, New York: Rohit M. Desai and
E dgerton G. N orth, J r. have been
appointed senior vice presidents in
the tru s t and investm ent division.
Mr. Desai, 43, joined M organ in 1964
and will head an expanded special
investm ent group. M r. N orth, 54,
joined M organ in 1950 and heads the
division’s institutional investm ent
and m anagem ent group.
Northern Trust Company, Chi­
cago: Directors have appointed J .
David Brock as vice president of
N orthern T rust Corporation with
responsibility for holding company
acquisitions and expansion planning.
He will continue as a vice president of
the bank.
Directors also announced the pro­
motions to second vice president of:
K athleen M. Alm aney and Virginia
B. G asink in the hum an resources
departm ent.
Jerom e L. Gelfand and A nna M aria

Quinlan in the
operating d ep art­
m ent.
jfl. fZ
P a t E. G arrett,
William G. H art
and Steven R.
Schneider in the
- j <■*
tru s t
d ep art­
m ent.
y j ji M
From outside
the bank, Eliza­
Rauner was nam ed a second vice
president in the commercial banking
departm ent and Gilbert S. Levine
was named a tru s t officer.
P atrick D. Leary was appointed a
second vice president in the N o rtrust
Farm M anagem ent, Inc. subsidiary.
N orthern T ru st also announced
two appointm ents at corporate
affiliates. A nton L. Janik has joined
The N orthern T rust Company of
Arizona (Phoenix) as a vice president
in tru s t business developm ent,
assum ing m arketing responsibilities
for business development.
Alfred H . Cole has been appointed
vice president in tru s t business
development, responsible for busi­
ness developm ent m arketing, at the
Security T rust Company of Palm
Beach. Mr. Cole previously was with
Philadelphia N ational Bank tru s t
departm ent.
National Boulevard Bank, Chi­
cago: Directors have announced the
following promotions: John F. X.
H arahan and Michael C. Keeling to
vice presidents; Richard J . Rosner to
operations officer, and Robert J .
Dennis to assistan t cashier.





N orthw estern Banker, Septem ber, 1981


American Express Adds More Services
M ERICA N Express Company
announced th a t in-bound trav el­
ers visiting the
U .S .,
Puerto Rico and
the U .S. Virgin
m any countries
are now eligible
to receive five
special services,
provided free-ofcharge to qualify­
ing individuals
whose Am erican Express Travelers
Cheques have been lost or stolen.
Previously, the new services—
introduced in M arch, 1981—were
available in the U .S. and Canada to
refund claim ants who purchased
American Express Travelers Cheques
in those countries.
The new services are:
• Check Cashing. A fter authoriza­
tion, refund claim ants will be able to
cash personal checks up to $200
(subject to governm ental and b ank­
ing regulations as well as currency
restrictions) during business hours at
the network of travel service offices of
American Express Company in the
U .S ., Canada, Puerto Rico and the
U.S. Virgin Islands.
• Credit Card Cancellation A ssis­
tance. Refund claim ants whose U .S.
and Canadian or m ajor foreign credit
cards (American Express, Carte
Blanche, Diners Club International,
M astercard, Eurocard Access and
Visa) have been lost or stolen can
arrange to have them cancelled 24
hours a day when they call American
Express to report their m issing
United Missouri Bank of Kansas
City, N.A.: Richard W. Brooks has
been named senior vice president in
charge of the national division of the
commercial business development
departm ent. M r. Brooks joined
U nited M issouri in M arch, 1978. He
attended Avila College and the
U niversity of M issouri a t K ansas
City, as well as the N ebraska
Advanced School of Banking and the
M issouri Bankers School of A gricul­
U nited M issouri directors also
elected the following new officers:
M ary F . R and and N orm an E . G reene
as personal tru s t officers; Lon J .
Canaday and M arla E. Rivard as
assistan t cashiers in the commercial
loan departm ent, and W illiam W.

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


Travelers Cheques.
• Temporary I.D . Card. Refund
claim ants who
have lost
identification m ay arrange to obtain a
tem porary I.D . Card a t any one of the
network of travel service offices of
American Express Company.
• Reservation Assistance. For
refund claim ants who need to
re-schedule their travel plans,
Am erican Express will make avail­
able its 24-hour, toll-free, m ulti­
lingual “ Travel H otline” to help with
airline, hotel and
car rental
• Message Service. A W estern
Union M ailgram or cablegram will be
sent upon request, 24 hours a day, to
notify one individual — family,
friend, or business associate — of a
change of itinerary.
“ Our special refund services,”
explained Michael E. Lively, presi­
dent, American E xpress’ Travelers
Cheque Division, “ were developed as
a direct result of our m arket research,
which showed th a t all of our
custom ers world-wide have m ajor
concerns in addition to getting their
Travelers Cheques refunded. From
our research and experience, we know
th a t if individuals experience a loss or
theft of Travelers Cheques, they
often lose such other valuables as
cash, credit cards and identification.
“ In addition, they typically are in a
strange city or country and, due to
their loss, find their travel plans
delayed. In short, it ’s a period of high
anxiety. W e’re confident our five
newly-expanded services will provide
practical assistance a t a time when
travelers need help the m o st.”

Continental Bank of Chicago is o r ^
of four U .S. banks and 12 non-Cana­
dian banks given perm ission to
establish Canadian banking subsidi­
aries a t this tim e. This is the first
time foreign banks have been allow e^
to open banks in Canada since 1932.

Elected at Zions Utah
H arris H. Simmons has bee#
elected assistan t vice president and a
director of Zions
U tah Bancorporation in
Lake City. Prior
to accepting this
position he was a
commercial loan
officer and assis­
ta n t to the presi­
dent of Allied
Bank of Texas in
H ouston.
M r. Simmons is a graduate of th™
U niversity of U tah with a BA degree
in economics. He received an MBA
from the H arvard G raduate School of
Business A dm inistration.

ABA Announces 1981 Chief
Financial Officer Seminar

The second annual A m e ric a ^
Bankers Association Chief Financial
Officers Sem inar has been scheduled
for November 4-6, 1981 at the Boca
R aton Hotel and Club, Fla.
Sponsored by A B A ’s Chief F in a i^
cial Officer Executive Committee,
this is the only national m eeting
devoted entirely to the growing
constituency of policy-making bank
officers who are responsible for a £
integrated approach to financial
M antz as commercial banking officer m anagem ent and control.
Announcing the sem inar, execu­
in the new business departm ent.
tive comm ittee chairm an Donald C.
Miller, vice chairm an, C o n tin en t# ^
Continental Bank Opens
Illinois N ational B ank, Chicago, said
Subsidiary in Canada
it will offer attendees a “ unique
Continental Illinois N ational Bank opportunity to exchange im portant
and T rust Company of Chicago has tim ely ideas and inform ation with
opened a banking subsidiary in fellow financial officers.” Topic#
Canada through the conversion of under consideration for this y ear’s
Continental Illinois (Canada) L td ., program include cost control, capital
announced Jennings F. W erner, chief raising, investor relations, interest
general m anager of the new rate volatility and m anagem ent
subsidiary, C ontinental Illinois Bank inform ation system s.
A dditional inform ation on the
Approved by the Canadian M inis­ program is available by calling
ter of Finance as of this date, th :ew Stephen Thorm ahlen in the ABA
banking subsidiary will have an Bank Investm ents and Funds
authorized capital of Canadian $40 M anagem ent Division. His telephon#
num ber is (202) 467-4087.


holding com pany
is a holding com pany
is a holding company.”

Or is it?

Let’s face it. Holding companies aren’t always
So if your correspondent bank thinks all
holding company financing is the same, maybe it’s
time to look for a different correspondent bank.
Like Continental Bank. At Continental we
don’t have any pre-conceived notions about what
a holding company in your situation might need.
We put together a credit especially made for a
holding company of your size, in your state, and
in your circum stances. W ith the combination of
term s your individual situation calls for. And with
any necessary regulatory modifications, evaluation
analyses, and even negotiation assistance you
might require.

That’s the sort of flexibility you expect.
And deserve.
You expect decisiveness, too. At Continental,
you get it. Credit requests don’t go from committee
to committee. They go directly to your account
m anager—the person who can say “yes” or “no”
on most loans. You get a decision fast. From the
person who made it.
Call John Tingleff at (312) 828-2191 about your
holding company financing. We won’t try to put
you in one pigeonhole or another. We’ll just work
out the credit that s best for you.
It’s what you expect from a top correspondent
bank. At Continental Bank, it's reality.

Federal Reserve Bank of St. Louis

C o n tin e n ta l Illin o is N ational B ank and T rust C om pany o f C hicago
231 S outh LaS alle S tre e t, C hicago, Illin o is 60693
N orthw estern Banker, S eptem ber, 1981

m BPMhs

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c o v erage the areater

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m h C la .m
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Wlth n e 9ative a m o rtization

^^^^PVrinofial balance
Q e lir t q u e n i m tc r o s t
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S tand ard

A d ju sto r

$113.772 00
17.065 80
SÌ3Ò7837 80

$113,772 00
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C |a im p a y m e n t

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Federal Reserve Bank of St. Louis

$ 2 6,99 7 56

$5 1 .7 3 7 80


11 I .jj

Exposure on ARM s can fluctuate dramatically.
That’s why M G IC introduces The Adjustor, the
first coverage specifically for ARMs.
You get full and flexible ARM
protection for yourself and yo
secondary market investors,
Fannie M ae requires AdjustorAi
type coverage.
nizes the
FNMA reCog#
the spec
special risks
of ARMs
ARMs. That's
That's why
why they
they reqi
require this
type of coverage on all loans vwith an
LTV of 80 percent or greater,
greater. More
and more secondary market irinvestors
will be wanting similar guaran
Send for an A R M kit.
Q he|p
help you structure your own
ARM program we've develop«
developed a
comprehensive kit. It contains
information every mortgage le
needs to know, including the results
of a nationwide lender ARM ssurvey,
an jn-depth
in-depth ARM risk analysis
analysis, plus
guidelines on index selection and
federal regulations,
free j<jt ancj m 0re
information about MGIC's nei
Adjustor coverage for ARf •' - coupon today. O r contact I

With the flexibility of ARMs comes
increased exposure. Exposure that
standard mortgage insurance just
wasn't designed to cover.
MGIC can help with its new
Adjustor5*" coverage. It fully protects
the added risks of varying monthly
payments, even the negative
amortization associated with ARMs.
***%:**'>'" <„
A n exam p le*
Shown on the left is
a loan with modest
negative amortization. With standard mortgage
/V* Q t insurance, lender
exposure is 97 percent. With The
Adjustor, your exposure is limited to 75
percent of the original
property value, regardless
of the loan balance at the
time of claim. The Adjustor is unique because of its
first-of-a-kind treatment of
negative amortization—it
covers 100 percent of any
increase over the original
balance. It also provides greater
protection for loans with some
amortization because it covers all

y Q

u r



Working hard to earn your business
Mortgage Guaranty Insurance Corporation
P.O. Box 488, Milwaukee, Wisconsin 53201
Please send me your complete ARM kit.

Name ............................................................. ..... —
Title --------------------------------- ---------------------------Company
Address _
Federal Reserve Bank of St. Louis




Collateral Control Corporation, Sj
Paul: Edw ard A. Ames, senior vie
been named re­
gional m anager
ROM OTIONS and other an­ Nicholas have joined the company in
of the St. Paul
nouncem ents have been made by key m arketing staff positions.
region. M r. Ames
the following firms:
M r. Kendall, former m arketing
is responsible for
m anager, consumer division, a t the
Associates Commercial Corp., Brunswick Corporation in Skokie, all operations and
Chicago: Jam es Day has been named 111., is the W atertow n firm ’s new m arketing efforts
throughout the
vice president in
director of m arketing, coin products
region, which in­
charge of the
division. He joined Brunswick in
M inneso­
business loans di­
1972 as a special m arketing assistant,
vision office in
became a product m anager at the
consin and N orth D akota. Previous­
A tlanta, Ga. He
M ercury M arine Division in 1974,
ly, he served as regional s a l ^
will report to
and moved to his m ost recent position
m anager-San Francisco, for this
Russell D. D ona­
at corporate headquarters in Skokie
collateral m anagem ent com­
in 1976. He received a BA degree at
vice president of
DePaul U niversity in 1969 and an
the ACC business
MBA degree at Ohio S tate U niversity
Daktronics, Inc., Brookings,^
loans division.
three years later.
Jeff Robbins has b een ^
M r. D ay, 39,
appointed district sales m anager for
served as assistan t house counsel at
northern Illinois and W isconsin. He
W alter E. Heller & Co. in A tlan ta
replaces E d W eninger, who has been
before joining The A ssociates. He
named m anager of the custom er^
was graduated from the U niversity of
service departm ent a t corporate^
N orth Carolina-Asheville w ith a BA
headquarters in Brookings.
degree and from the Woodrow W ilson
M r. Robbins is a 1980 graduate in
College of Law in A tlanta w ith a JD
Agri-Business from South D akota
S tate U niversity and worked in th e ^
Brandt, Inc., Watertown, Wis.:
sales training program whilew
Steven W. Kendall and Brian E.
attending school. As a p art of th a t
he participated in dem on­
stratin g the use of D aktronics
electronic equipm ent at a th le tic ^
M r. Nicholas, former m arket tournam ents
planning m anager a t A .B . Dick throughout the m idwest, m aking
Company, Chicago, takes a second him conversant with the entire
For Installm ent Loans
newly created position, corporate D aktronics line of solid state
m arket planning m anager. He joined system s and displays.
A .B. Dick in 1975 as a sales
Lincoln Benefit Life Company,
representative in Rochester, N .Y .,
Nebr.: Acquisition of
planning m anager in 1979. He Lincoln Benefit Life as a whollyI NDI VI DUAL SINGLE
received BS and MBA degrees in owned subsidiary of Dean W itte r
1970 and 1979 a t Rochester In stitu te Reynolds Organization Inc., was
• A u t om a t e d
announced July 29 following a board
of Technology.
• Manual
The company also announced the m eeting held in Salt Lake City. The
appointm ent of David N. K rause as Dean W itter firm also owns Surety
Life Insurance Co. of Salt Lake C itj^
district m anager
Elected to the Lincoln Benefit Lim
for B randt, with
board of directors were: L. Jam es
sales responsibil­
Ellsw orth, president and chairm an of
ity for the com­
Surety Life; Douglas F. Gaer, Evelyn
pany’s line of
A. Rauch, Steve W. S utton, Williaim
money handling
S. P ra tt, II, K eith A. Poelman,
equipm ent in the
Clemens T. Young and Clair
call or write:
w estern portions
M unyon.
of W ashington
New officer appointm ents at
vEy7 G.D. VAN
and Oregon. He
Lincoln Benefit Life were: M r^
headquarters in
Ellsw orth, chairm an and chief
Seattle and also has a sales and
executive officer;
M r.
service operation in Portland. He
president; Mr. P ra tt, executive vice
1678 Northwestern Bank Bldg.
Minneapolis, MN 55402
was formerly a sales representative
president and chief operating officer;
(612) 333-2261
for B randt in Dallas the p ast four
Ms. Rauch, vice president an<j(|
J years.
secretary, and Jo h n H. Schum ann,



DigitizedN orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


American Express Travelers Cheques


Every year, lots of things are lost or stolen with
people’s travelers cheques.
Like credit cards, cash, and identification.
T h at’s why American Express® Travelers Cheques
has introduced 5 special services designed to help
protect your customers during those times when
they may need more than a travelers cheque refund.
Extra vacation protection at no extra cost
throughout the U .S. and Canada. All, only from
American Express Travelers Cheques.

Check Cashing
If they need extra cash, any of our Travel Service or
Representative offices in the U.S. or Canada will,
following authorization, cash a U.S. or Canadian
check for up to $200 during business hours.

Credit Card Cancellation
If your customers lose credit cards with
their travelers cheques, we’ll help them cancel
their cards. W hen they call our Refund
Center to report their travelers cheque loss,
they simply tell the refund representative
^ that their credit cards are also missing. No
M matter what time it is, they’ll be switched
g§ to someone who will assist in cancelling
" all their U.S. and Canadian-issued cards.

Temporary ID Card

liiiiis >
£ KPRESXi V -:
If they lose all their iden­ 5S
tification with their
travelers cheques, we’ll

issue them a temporary
ID. Following verification,
they can pick up the ID
at an American Express
Travel Service office in
the U.S. or Canada
during business hours. It’s
an ID with their name
and our name on it, so
they can use us as a refer­
ence wherever they go.




24 -Hour Travel

Service Hotline
If they need to change
travel plans because of their
travelers cheque loss, one of
our refund representatives
can transfer them to the
American Express Travel
Service Hotline which
can help arrange air­
line, car and hotel

Message Service
If, following their travelers cheque loss, they
need to notify someone of a change in travel plans
and they’re having trouble reaching them on
the phone, we’ll send a Mailgram® for them
at no charge, anywhere in the U.S. or
Canada. At any hour of the day or night.

Now we protect m ore than just their money.
Now we help protect their vacation.
Federal Reserve Bank of St. Louis

vice president and assistan t secre­
M r. Sutton, newly elected to the
board, continues as vice president in
charge of credit life insurance sales to
banks throughout the midwest.
Lincoln Benefit Life Company was
chartered in 1938 and domiciled in the
city of Lincoln. The company
recently reached the m ilestone of one
billion dollars of life insurance in
force. I t operates in 24 central and
w estern states.
Mosler Safe Co., Hamilton, Ohio:
A rthur D. Lewis, J r., has been
m anager of M os­
ler Canada, it
was announced
Charles H. Com­
fort, II, vice pres­
ident of m arket­
ing, international
and governm ent
for Mosler. In
this new assign­
m ent, Mr. Lewis is responsible for
the sales, service and installation of
M osler’s line of security, tran sac­
tion and m aterials distribution
system s for financial institutions
and commercial businesses in
Canada. His headquarters is in
Bram alea, Ontario.
Mr. Lewis joined M osler April 1,
after resigning as m anaging director
of the international division of
Diebold. Prior to th a t he was with
Mobil Oil in various assignm ents in
New York, Caracas, Venezuela and

Diebold TABS First A TM ’s
Selected For ADP Network
An agreem ent has been signed be­
tween Diebold, Incorporated, the
m anufacturer of TABS Total A uto­
m atic Banking System s A TM ’s, and
the newly formed Electronic F inan­
cial Services Division of A utom atic
D ata Processing, a leading supplier
of com puting services. AD P has
selected the TABS 9000 A utom atic
Teller machine for the first site which
it owns and operates in its new ATM
netw ork serving financial in stitu ­
tions throughout the U nited S tates.
Diebold TABS also was the first
ATM supported by the AD P
network, w ith the A ugust connection
of an A D P client who is also a TABS
N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


CSBS Survey Lists State EFT Activity
M A JO RITY of the states now
have electronic funds transfer
legislation in place, and a large

establishm ent and operation of such
E F T system s, subject to reasonable
requirem ents as the states may
choose, including the nature ancL
geographic scope of transactions to
be offered.
3. S tates should supervise and
examine state-chartered institutions
providing E F T services for cu sto m ^
ers of institutions located elsewhere;
and the Comptroller of the Currency
or the Federal Home Loan Bank
Board should supervise and examine
respectively federally chartered in s ti^
4. Should an am endm ent to
Section 36(c) of the N ational Bank
A ct (The M cFadden Act) be found
necessary to enable national banks t( ^
make use of the state statu tes
proposed herein, CSBS should either
support, or alternatively, agree to the
necessary Congressional action.
The current sta tu s of state E FT ^
sta tu te s is summ arized in Appendix
A following:

num ber provide for either state-w ide
authority or some form of cross-state
permission, according to a survey
ju st released by the Conference of
S tate B ank Supervisors.
The E D P /E F T Com m ittee of
CSBS, investigating the various
state laws found th at:
• T hirty four s ta te s —better than
tw o-thirds of the to ta l—now have
E F T sta tu te s on their books.
• Twenty-six s ta te s —better than
half—provide for state wide offering
of E F T services, either through the
placement of facilities or agreem ents
to use existing facilities. Seven
states, 14% , allow their banks to
provide E F T services out-of-state
and nine states, 18%, perm it
out-of-state banks to offer E F T
services within their borders.
• Fourteen states, 28% , perm it
custom ers of out-of-state banks, by
contract or agreem ent, to have access
through in-state E F T facilities and
services to their deposit accounts 1. States permitting customers of out-of-state bank^
access to EFT services:
in their home financial institutions.
The survey was conducted as p art Arkansas
Georg ia
of a CSBS policy urging state action Illinois
South Dakota
in developing E F T services to ensure
th a t custom ers of financial in stitu ­ Minnesota
(within 20 miles)
tions are well served by the m ost
States allowing state wide offering of EFT services:
advanced technology and th a t E F T 2.Colorado
New Jersey
New Mexico
developm ents are regulated as
New York
necessary at the state level.
North Carolina
North Dakota
The CSBS policy statem ent on Illinois
E FT S, as adopted by the Confer­ Kansas
Rhode Island
ence’s board of directors, stipulates Maryland
South Dakota
S tates should encourage theMinnesota
(at retail locations)
establishm ent of unm anned electron­
New Hampshire
ic funds transfer system s within their
3. States permitting out-of-state banks to offer EFT
borders by banks or others which, by services and/or place EFT facilities within theirborders:
contract or agreem ent, will enable the Alabama
Illinois (POS)
custom ers of local financial in stitu ­ Maryland
(from aeonWisconsin
tions to obtain financial services Minnesota
tiguous state and within
20 miles)
when they are away from their banks.
permitting the banks they charter to provide
This procedure will enable individual 4.EFTStates
services out-of-state:
banks to both better serve their Alabama
custom ers and retain their custom er Arkansas
Illinois (POS)
Minnesota(within 20 miles)
2. S tates should encourage the Only Iowa specifically prohibits this activity.

“ The agreem ent between Diebold
and A D P ,” stated Robert Barone,
Diebold vice president and general
m anager-autom atic banking sy s­
tem s, “ represents a significant
opportunity for institutions to
combine the proven advantages of a
leading d ata processing service w ith

the m ost reliable and accepted ATM
in the in d u stry .”
Com puting services for more th a n ^
1500 financial institutions are now
provided by AD P which operates a
network of centers in the U .S .,
Canada, the U nited Kingdom a n d ^


Northwestern Bankers,
M eet T he Associates
Money-For-Business Team.
People W orth Knowing.



You’ll like d o in g business with T h e Associates.
For over sixty years, o u r fin an cin g profes­
sionals have b e en h e lp in g business people
— m an u fa ctu rers, processors, w holesalers—
acquire the w orking capital they n e ed for
so u n d grow th an d expansion.
T h ro u g h T h e A ssociates’ p articip atio n
p ro g ram s, we have h e lp e d bankers m aintain
an d e n h an ce th e ir re la tio n sh ip with th e ir
custom ers. Loans are frequently m ade to
b an k custom ers th a t w ould no t ordinarily
be possible w hen the b ank is o p eratin g
in d ep en d en tly . W ith T h e Associates M oneyFor-B usiness Team , bankers a re assured

th e closest businessm an-to-businessm an
co o p eratio n , co m b in ed with decisiveness
a n d professionalism .
For in fo rm atio n a b o u t o u r b a n k ers’
p articip atio n p ro g ram s, call T h e Associates,
Business L oan Division. People w orth know ing.

T he Associates
55 E. M onroe S treet— Suite 3600
Chicago, IL 60603
(312) 781-5800

Business L oan Offices in A tlanta, Boston, C harlotte,
C h erry Hill, NJ, C hicago, Dallas, D etroit, H ouston, Los Angeles,
M iami, New York, St. Louis, San Francisco, Tulsa.
Associates C om m ercial C orp o ratio n is a subsidiary o f Associates C o rporation o f N orth A m erica, a G ulf + W estern Com pany.
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


NABW Announces Convention Program
ÍÍ p
A N KING ’81: Capitalize on
D Change” has been announced
as the them e for the 59th annual
convention of the N ational A ssocia­
tion of B ank Women, Inc. The
convention will be held Septem ber
27-30 a t the H y a tt Regency,
sessions will be NABW President
Jan e McGavock Sm ith, vice presi­
dent, F irst & M erchants National
Bank, Richmond, Va.
Convention sessions will center on
the im pact of recent economic,
legislative, regulatory, and technol­
ogical developm ents in banking; the
issues and questions they raise for the
future of the banking industry; and
the strategic responses th a t will
determine banking’s survival in the
tough competition of the ’80s.
The convention will open a t 8:30
a.m . on M onday, Septem ber 28, w ith
a welcome m essage from M ayor Jan e
M. Byrne. Im m ediately following,
the keynote address will be given by
Frank Cappiello, the finance and
economics analyst who is well-known
as a panelist on PBS Television’s
“W all Street W eek.” In his speech,
“W h a t’s W rong W ith B anking,” Mr.
Cappiello will delve into the reasons
behind the banking in d u stry ’s loss of
its traditional edge in the m arket­
The keynote will be followed by a
general session, “ A B anker’s P er­
spective,” during which M r. Cappiel­
lo will m oderate a panel of three
bankers representing banks of all
sizes. In responding to the keynote,
these bankers will present their
perspective on their b a n k ’s strategic
response to recent and forthcom ing
Tuesday, Septem ber 29, will
feature two general sessions. D uring
the first, held from 9:00-10:00 a.m ., a
noted economist wil discuss the
im pact of a fluctuating economy upon
banking. The second, held from 10:30
a .m .-12:00 noon, will feature Donald
Jacobs, dean of N orthw estern
U niversity’s J .L . Kellogg G raduate
School of M anagem ent, who will
discuss recent regulatory reform and
its ongoing im pact upon banks.
Both days will feature afternoon
sessions of concurrent banking and
m anagem ent workshops on topics
such as strategic planning, m arket­
ing, product developm ent, and
pricing. In addition, on M onday,
Thom as W agem an, president of

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


tional convention. M r. Golembe, w ha
is one of the n ation’s preem inent
financial consultants for banks and
bank holding companies, will discuss
“Deregulation in the Financial
Services In d u stry .”
The BA I convention, which will be
held in Honolulu, Hawaii, November
9-11, will also feature John G.
Heim ann, former Comptroller of the
Currency, who will address a ^
all-delegate and spouse luncheon on
“ The Economic O utlook.” Other
general session speakers will be Guy
W. B otts, chairm an of the board,
B arnett Banks of Florida, Inc., o ^
“ Strategic Planning for the ’80s,
and A ustin H. Kiplinger of the
Kiplinger W ashington Editors, on
“ The Financial Com m unity T oday.”
The program will include tw e n ty
concurrent sessions covering a
variety of key banking concerns
including in terstate banking, F'ed
pricing, float m anagem ent, the Bank
LaSalle N ational Bank, Chicago, will Secrecy A ct, capital ratios, p ro d u ct^
conduct a workshop on asset and ivity m easurem ent, net interest
liability m anagem ent and, on T ues­ m argins and product strategies,
developm ent,
inform ation
day, Gail Melick, executive vice ATM
president of operations and m anage­ system s m anagem ent, and data
m ent services, C ontinental Bank, processing contingency planning, 0
P articipants will have the oppor­
Chicago, will conduct an operations
tu n ity to view an extensive vendor
On W ednesday, Septem ber 30, the exhibit area. Special leisure tim e
association will hold its annual activities have been scheduled
m eeting, officer installation lun­ throughout the convention in c lu d in g
cheon, and annual banquet. Also optional tours and on all-Hawaiian
scheduled is a general session on floor show.
m anagem ent developm ent entitled
“Banking ’81: More Change, More
Challenge, More C om m itm ent.”
Northern Trust Acquires
Prior to convention, NABW O’Hare Banc Corp. Stock
members will be able to atten d two of
N orthern T ru st Corp., which owns
the Educational F oundation’s M an­
N orthern T rust Company Bank
agem ent Development Sem inars.
apparently is the f ir s ||
The M anagem ent Process Sem inar is
scheduled for Friday, Septem ber 25,
and the M anagem ent of Conflict and
Change Sem inar is set for Saturday. th a t becomes effective Jan u ary 1.
In addition, the Educational N orthern T ru st announced last
Foundation is holding its annual m onth it has agreed in principle t #
dinner on Sunday, Septem ber 27, purchase all the 616,093 shares of
with Ellen Goodman, nationally O’H are Banc Corp. for $32.61 each.
syndicated colum nist, as the featured The la tte r’s subsidiary, O ’H are
speaker. A t th a t tim e, winners of the International Bank, had $165 million
association’s National, Memorial, in assets June 30.
and Jean A rnot Reid scholarships
perm its banks to begin acquiring
will be announced.
other banks in their own region and
one contiguous region, from am ong
Carter Golembe to Keynote
the five regions set up for the s ta te #
BAI National Convention
Banks also m ay open a third limited
C arter H. Golembe, m anaging facility in their own comm unity.
associate, Golembe A ssociates, Inc.,
Thom as F. Seay, who w ith his
will be the keynote speaker a t the family owns 57% of O ’H are Banc
opening general session of Bank shares, is chairm an of th a t com pany#
A dm inistration In s titu te ’s 1981 na- and the bank.


Banking professionals ready to
accelerate development of their
management potential and join
the ranks o f ...

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Please tell me more about ABA’s Stonier Graduate School of Banking

Courses and methodology are regularly updated to insure
the most relevant educational experience. Students who
complete three of the 2-week resident sessions held each
June at Rutgers University in New Jersey . . . several
between-session extension problems . . . and a thesis or
research p ro je c t. . . are thoroughly prepared for
management responsibilities in bank of all sizes and
organizational structures.

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Washington, D C. 20036




Act today. Attending Stonier could be the best career move you'll ever make. . . The deadline fo r
applications for the June 6 -« , 1982 session Is November 1,1981
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981





Chairman ABA Council

ABA’s San Francisco convention
will feature Community Banker
OM M UNITY bankers will find them selves on
center stage a t the 107th annual convention of the
American Bankers Association in San Francisco,
October 3-7. S tatin g th a t “ the com m unity banker is
alive and well,” ABA has titled a session a t the 1981
convention as “ N ot Quite Ready to Quit, Y e t.” ABA
preconvention m aterial says com m unity banker skill
and vitality will be a m ajor focus of the convention,
which is expected to draw more th an 12,000 bankers,
spouses and exhibitors to colorful San Francisco.
Em phasizing the them e noted above will be a
Com m unity Bankers Division m eeting for all registrants
on the final m orning. ABA President Lee E. Gunderson
will be presiding a t th a t session as well as other general
sessions of the convention. He is uniquely qualified to
assum e those duties since he is president of the B ank of
Osceola, W is., and has spent his 29-year banking career
in com m unity banks.
Scheduled to succeed him as ABA president at the
annual election is Llewellyn Jenkins, vice chairm an of
M anufacturers H anover T ru st C o., New York, the third
largest bank in the nation. M r. Jenkins has served this
p ast year as president-elect. The third mem ber of the
ABA officer team is Virgil E. Solso, vice chairm an of
The Oregon B ank in Portland, Ore., who has served as
treasurer. The fourth m em ber of the team is C.C. Hope,
J r., who served as ABA president in 1979-80 and has


Secy, of Treasury

Exec. Vice Pres.

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


been chairm an of the ABA council this p ast year.
Completing the m anagem ent team is Willis
Alexander, J r., ABA executive vice president, who
heads the association staff in W ashington, D.C.
Headliners who will address this y ear’s convention
include U .S. Treasury Secretary Donald Regan, F e #
Chairm an Paul Volcker, former CIA director William E.
Colby, Am erican Express Chairm an Jam es Robinson,
and the A gronsky & Co. panel of noted national repor­
Special sessions of interest to bankers and wives fro i#
banks of all sizes will be offered at various tim es during
the convention, as well as general sessions open to the
entire list of registrants. The program outline follows:
Friday, October 2
E arly bird registration will be available all day at the
St. Francis Hotel.
Saturday, October 3
9:00 AM: G rand opening ceremonies begin at th J^
front of the Civic A uditorium . The exhibits, Convention
C entral and registration also open.
10:00-11:15 AM: A series of thought-provoking
workshops are planned, under the direction of A B A ’s
Banking Professions Divisions, w ith special g u id a n c ^

Chmn., Federal Reserve

Former Dir., CIA


When you and your spouse are roaming
around the ABAs Exhibition Center in San
Francisco, try to stop by the Full Service
Bank Hdisplay area.
If you do, we’ll trade you a Polaroid®
tor a smile.
And as soon as the spots clear from
your eyes, you can take a look at the Full
Service Bank Advertising Kits. There
are three kits to choose from: The
Cross Selling Kit, the High-Yield Sav­
ings Kit, and the NOW Account
Merchandising Kit. Each kit con­
tains a comprehensive news­
paper and radio advertising
campaign that can help
your individual bank's market­
ing efforts.
We ll also show you how to join
the Full Service Bank Pro­
gram. And how you could win a
free trip to next year’s convention.
To find the Full Service Bank’s display'
area, just head for the popping flash bulbs
in Activities Area A.
© 1981 American Bankers Association
Federal Reserve Bank of St. Louis

8:00-9:15 AM :A nother series of concurrent w ork^
shops will be presented. Topics of special interest t®
com m unity bankers will be am ong those featured.
9:30 AM-Noon: ABA President Lee E. G underson
leads off the first general session, followed by former
C .I.A . D iretor William E. Colby. Am erican E x p re s^
Chairm an Jam es Robinson will then address the crucial
question of non-bank competition.
2:00-4:00 PM: Planning and m anagem ent are
addressed through a forum and breakout sessions,
organized by bank size.

program . . .
Chmn., Amer. Express

from the Comm unity Bankers Division. Exam ples of the
tim ely topics to be covered include variable rate lending,
asset-liability m anagem ent, pricing services and staff
Afternoon: Noted economists will present the
econom ic/investm ent outlook for year-end 1981 and
4:00 PM : The exhibits and Convention Central close.
Sunday, October 4
8:00 AM-3:30 PM : The exhibit hall and Convention
Central are open. E arly birds will get the w orm —th a t is,
free coffee and doughnuts in the exhibit hall.
9:30-10:30 AM: The Reverend Robert Schuller is the
featured speaker a t the Fellowship G athering. Rev.
Schuller’s weekly one-hour television program , ‘‘Hour of
Pow er,” is broadcast on more th an 140 stations in every
state in the U .S. and several foreign countries.
10:45-11:45 AM: A series of concurrent special
interest sessions will be held on vital banking subjects.
Evening: ABA hosts a gala reception at the
architecturally innovative H y a tt Regency E m barca­
dero, appropriately located in San Francisco’s financial
M onday, October 5
7:30 AM-12:30 PM: The exhibit hall is open.
7:30 A M -12:30 PM : Convention C entral is open.

Tuesday, October 6
7:30 AM-4:30 PM : Convention Central is open.
7:30 AM-4:30 PM : The exhibit hall is open.
8:15-9:15 AM: M onday m orning’s co n c u rre n t
workshops are to be repeated.
9:30-11:45 AM: ABA elects the officers th a t will lead
the banking industry during the coming year. A fter
rem arks by ABA Executive Vice President Willis
Alexander, Agronsky & Co. will be featured.
2:00-4:30 PM : The previous afternoon’s prograrn
continues with a tu rn to techniques and innovations for
4:30 PM: A grand prize draw ing will be held in the
exhibit hall.
Evening: ABA will attem p t to outdo its Sunday
reception with an extravaganza at the world-famous
Fairm ont Hotel on Nob Hill.
W ednesday, October 7
8:30-10:30 AM: The closing session is scheduled t ^
include addresses by U .S. T reasury Secretary Donald
Regan and Federal Reserve Board Chairm an Paul
Volcker. Also on the agenda is ‘‘N ot Quite Ready to Q uit,
Y e t,” a certain-to-be inspiring explanation by severaL
comm unity bankers (and possibly a c o m m u n ity
banker’s spouse) of why they are convinced th a t
com m unity banks ‘‘ain’t dead y e t.”
10:30 AM: The 1981 ABA A nnual Convention
adjourns. Begin planning to attend next y e a r j^
convention in A tla n ta , October 16-20.

MasterCard Travelers Cheque Program
Attracts 29 Banks as Charter Members
TOTAL of 29 U .S. and Canadian
banks agreed to become charter
members of the M asterC ard Travel­

soon surpass Visa in the num ber of
issuers and will become the principal
challenger to Am erican Express in
ers Cheque program during the U .S. the very near fu tu re .”
C harter Period which ended Ju n e 30.
Am ong the larger financial in stitu ­
Several more financial institutions tions th a t have recently become
have expressed interest in participa­ charter members of the M asterC ard
ting in the M asterC ard Travelers Travelers Cheque program are:
Cheque program , and further a n ­ N ational B ank of D etroit, B ank of
nouncem ents are expected soon.
M ontreal, F irst N ational B ank of
‘‘Though M asterC ard Travelers Boston, M ercantile T ru st Co. N.A .
Cheques are the m ost recent entry in (St. Louis) and F irst Haw aiian Bank.
this field, we’re gaining ground The first banks to announce their
rapidly,” stated Russell Hogg, participation in the program and
president and chief executive officer issue M asterC ard Travelers Cheques
of M asterC ard International. ‘‘D es­ were: B ank of Virginia (Richmond),
pite the various num erical projec­ Continental Illinois N ational Bank
tions of our com petitors, we expect and T rust Co. (Chicago), F irst
M asterC ard Travelers Cheques will National Bank of Cincinnati and

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


S eattle-F irst National Bank.
Mr. H ogg said ‘‘M asterC ard gives#
medium-size and even smaller banks
the advantage of a readym ade
product and the economies of
large-scale operations w ithout the
need to establish their own sy s te m .#
The M asterC ard program ,” said Mr.
Hogg, ‘‘has simply been designed to
give the banks a much greater share
of the p ro fits.”
M embers of the M asterC ard #
Travelers Cheque program will
contribute .1% of sales as p a rt of
their fee for the am ortization of
sta rtu p costs. W hen the program is
fully amortized, charter members w ill#
be reim bursed for their contributions
on a 2-for-l basis.
institutions which agree to join the
program during the current Initial
Issuers Period will be reim bursed on a®
1-for-l basis.


W hat
can we do
for you?
Just ask any one
of these Commerce Bankers
attending the
ABA Convention.

James M. Kemper, Jr.

P. V. Miller, Jr.

David A. Rismiller

B. M. Lamberson


Vice Chairman


Vice Chairman,
Commerce Bancshares, Inc.

John R. Owen

David W. Kemper

John J. Williams

H. C. Bauman

Lawrence H. Holden

Executive Vice President

Senior Vice President

Senior Vice President

Vice President

Vice President

Commerce Bank



of Kansas City
9th & Main
Federal Reserve Bank of St. Louis

10th & Walnut


12th & Charlotte

N orthw estern Banker, S eptem ber, 1981


BEAUTIFULLY restored Victorian dw ellings from San Francisco’s by-gone nostalgic years appear to have turned their backs on the 20th
century with complete disdain. The business skyline of the City by the Bay forms the background for this picturesque setting.
RIGHT— C hinatown’s photogenic front door, gateway to the W est’s biggest Chinese settlem ent, is guarded by temple dogs and roofed
with green, glazed tiles surmounted by ocher dragons.

San Francisco has it all!
CABLE CAR tracks for the Van Ness Ave., California & Market
Streets line lead past luxury hotels on Nob H ill, up-turned roofs of
Chinatown, high-rise b u ild in g ’s of San Francisco’s “ Wall Street”
to the bay area on this steep , 10-block stretch.

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


H E T H E R you call it the Paris of the W est, BaghW
dad-by-the-Bay, the G ateway to the Orient or ju st
San Francisco, the site of this y ear’s American Bankers
Association annual convention is one of the m o ^
exciting and scenic cities in the world.
Sightseeing M usts
H osting more than 3 million visitors a year, San
Francisco’s principal attractions are its c e n tu ry -o li
cable cars, A m erica’s only mobile N ational H istoric®
Landm ark . . . the 80-some year-old Cable Car Barn at
W ashington and M ason Street . . . Fisherm an’s W harf
w ith its bayview restaurants and colorful fishing craft
. . . Pier 30’s village of w aterfront attractions . . . T h ^
Cannery restaurant-retail complex and adjacent
A quatic Park, home of the M aritim e M useum,
Ghirardelli Square and a flotilla of vintage ships.
There’s also A lcatraz, once the site of the U .S .’
toughest m aximum security prison, now a N a tio n ^
P ark . .. Chinatown, the largest oriental enclave outside
of Asia . . . Golden G ate P ark w ith its Japanese Tea
Garden, Steinhart. A quarium , M orrison Planetarium , de
Young Memorial and Asian A rt M useum s and over
1,000 wooded acres . . . Mission Dolores founded by th<^
Spanish padres in 1776 . . . the pagoda-crowned Jap an
Center . . . Jackson Square, a handsom e pocket of
historic B arbary Coast buldings, now a home
furnishings center . . . the Victorian shopping sector
known as Cow Hollow on outer Union Street . . . Oceai0
Beach and Seal Rocks . . . the N orth Beach night life
The city supports an opera w ith a glittering tradition,
a sym phony orchestra in its 68th season, a ballet th a t
has won world acclaim, an annual International F iln #
Festival, four public a rt m useum s and dozens of
galleries, legitim ate theaters presenting top offerings
from New York and London and the local production
circuit and a resident repertory company, the American
Conservatory Theatre , of exceptional caliber.
Built on a series of more th an 40 hills, alm ost every
other street points the way to a panoram ic view of the
San Francisco Bay. The principal hills, which early
earned San Francisco the Roman sobriquet of “ City of
Seven H ills,’’ are Nob, Russian, Telegraph, Twin Peaks!®
M ount Davidson, Rincon and Lone M ountain.





F o u r g o o d reasons
w h y y o u s h o u ld choose
LaS alle as y o u r
c o rre sp o n d e n t b a n k ...

Bill Love
Vice President



Dick Brown
Vice President

Rudy Frank
Vice President

Dick Flesvig
Assistant Vice President

When you choose a
Correspondent Bank, you
want a bank that shares you r
organization’s commitment to
success. r
At LaSalle, our team is dedicated
to helping you r Bank achieve its
goals. We are a valuable resource
fo r bankers who appreciate and
demand the best.
Talk with us a t this year’s Iowa
Bankers Convention.

Choose on e hank
above aU others.
LaSalle National Bank
135 South LaSalle Street
Chicago, Lllinois 60690
( 312 ) 443-2769
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


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estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



Annual livestock
and ag outlook

—A N orth w estern Banker S u r v e y —


E S P IT E predictions of another bum per crop in
1981, m ost farm ers and ranchers appear to be facing
another bleak year of little or no profit, due to weak

prices for both grain and livestock, escalating input
costs, and continuing high interest rates. B ut, w ith the
eternal optim ism th a t has characterized the American
agricultural scene for centuries, the n ation’s farmers
^ continue to set a productivity pace th a t should be
em ulated by all other industries.
In this A nnual Livestock and A gricultural Outlook
issue, a num ber of agricultural bankers express their
viewpoints assessing agriculture’s current statu s,
^ dram atic changes th a t are developing, and its potential
for this nation and the world. This exclusive survey is
conducted annually by the N o r t h w e s t e r n B a n k e r .
On the following pages, the first p a rt of the ag study
reflects banker response to the annual ag survey itself.
^ The second p a rt contains a sum m ary of rem arks given
by four of the nation’s leading ag bankers a t the
Federal Reserve Bank of St. Louis

American Bankers A ssociation’s A gricultural Banking
News M edia Sem inar a t Iowa S tate U niversity in Ames
in July. This press conference m arked the opening of the
A B A ’s first National Advanced A gricultural Banking
School at Iowa State, which will be an annual ag school
on th a t cam pus. The third p a rt is a report from the
M idwest Banking In stitu te, a two-year ag program held
one week each summ er a t the M orris, M inn., campus of
the U niversity of M innesota and sponsored jointly with
the U niversity by the M innesota Bankers Association.
The fourth p a rt consists of an exclusive report from a
professional livestock farm er, Jam es A. M ullins, who is
chairm an of the N ational Livestock M eat Board Beef
In d u stry Council. He takes a candid look a t the three
areas he says will hold the key to future financial
stability for his im portant industry.
This special four-part report is intended to give our
readers more inform ation from their fellow ag bankers
and experienced ag teachers th a t m ight be helpful. □
N orthw estern Banker, S eptem ber, 1981


Part I

Annual livestock
and ag outlook

JERRY HENRY, A sst. Vice Pres. & Ag. Rep.
Crawford County S tate Bank, Robinson, 111.
OG SU PPLY will continue about the same as the
last two years, with very little expansion. Prices will
continue in the mid $40 to low $50 range th ru the year
end. Some producers will break even, some will continue
to lose. C attle supply will decrease and rates will m ake it
impossible. Yearlings will cost $2-$3 over fat cattle
prices this fall.
Grain production will be a little below average. Late
plantings will h u rt corn yields, bu t favorable growing
conditions m ay offset this. A lot of bean acreage, but
again, late plantings. W eather will be the big factor.
Prices locally, with lower livestock num bers will be
depressed th ru harvest. Corn will be under $3, beans
under $7. E xport dem and will probably shape the grain
m arket.
Local financial institutions should be able to handle ag
loans in the future. I believe any m ajor expansion plans
by farmers have been shelved for the tim e being. Any
adverse weather (early frost) could change this outlook,
overnite. We are currently in the 18-19% range on ag
loans. Overline financing costs the custom er m uch more,
and he is aware of it.
JACK A. KOBERG, President
Fairm ont National Bank, Fairm ont, M inn.
H E OUTLOOK for beef and hogs for the rem ainder
of 1981: There is an ample supply of beef in our area.
Prices are averaging in the mid to high $60 range. There
is an ample supply of hogs, with the average in the high
$40’s. We anticipate yearlings to be in the high $60’s to
low $70’s this fall. Supply seems to be able to more than
keep up with demand.
Probable grain production in our m arketing area:
Corn and bean crops look excellent in our trad e area,
with the exception of a few areas where hail has done
much damage. Corn should average in the neighborhood

of 125 bushels, and we are estim ating the price to be in
the $2.75 to $3.00 price range a t harvest. We a n tic ip a te
40-bushel beans, with a price range at harvest in the
neighborhood of $6.75 to $7.00.
Funding of ag loans: Banks should have no trouble
funding ag loans in our trade area. Loan dem and h a sbeen very static over the last twelve m onths. We are*
currently charging a rate of I 8V2% for our best ag
custom ers. The city banks are anxious to get overlines,
b u t we have been able to satisfy our overline demand
through other rural banks th a t we are acquainted w ith.^
The PCA is a good source of funds for com m unity*
banks. In our area the PCA is very active in the farm
sector, and as of this point we have not had the need to
work w ith the PCA for funding in our bank. We have
certainly indicated a willingness to cooperate if the neecj^
Converse County Bank, Douglas, Wyo.
E A RE NOT able to predict prices in our area, b u t^
when it comes to price - we ask w hat will the feeders
pay for the yearlings? We have had plenty of rain during
our grass season and should have good weight on
yearlings and calves this fall.
Ranchers last fall did anticipate some dem and for
breeding stock in this drought area in other adjoining
states, b u t it continued into the spring of ’81, and so we
did not sell them before as they thought, and we
increased some of our herds over and above replacement®
num bers, so supply is good in this area.
We are in need of good snow this w inter to build up
reservoir supplies and fill dam s in grazing lands.
Prices anticipated by ranchers in this area are going to
be in a range of probably 65 cents to 70 cents on®
yearlings. W ith the range in good condition in m ost
areas they will probably hold them for a couple of extra
Our bank presently is experiencing no difficulty in
financing our ranch needs. The rancher has felt higher®
expenses as probably everyone has and this means some
have had higher loans th an in the p ast. Our current loan
rate is 19.5% and m ost ranchers are paying this rate of
Banks in our area appear to have funds to serve®
agriculture and would experience no problem handling
ranch loans now or next spring. M any ranchers have
dual incomes - m eaning cattle and oil. This helps out
m any problem areas.
As a whole, we are looking to 1982 to be a better year®
for our entire economy.
ROBERT D. PATTEN, Vice Pres. & Farm M gr.
Monticello S tate Bank, Monticello, la .


H E TOSS of a coin is a definite way to make a
decision but, would you believe it, it ’s ju s t likely to
become stuck on edge in a crack in the floor. Forecasting
for the next six to twelve m onths m ay be compared w ith®
the above coin toss. The pain of forecasting m ay be eased
by being brief.
C attle: Very few cattle feeders have been happy the
p ast two years. Celebrations are not in order for this
year, although some recovery of fat cattle prices m ay®
occur this fall. Lots of forage, grain and the fat m arket

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


^ price recovery will stim ulate the urge to bid up feeder
^ c a ttle prices.
Hogs: Still w orth the effort to stay in the business,
especially if a producer has the m angem ent ability.
Corn: Bum per crop prospects. In spite of poor crop
^ conditions in some corn belt areas, prices will average
lower the rem ainder of this year. Prices will average
under $3.00 for the balance of the year.
Soybeans: Excellent crop prospects. The same
statem ent regarding price can be m ade about soybeans,
^ a s was stated about corn. E stim ated at $6.50 per bushel
and under for the balance of the year.
Loans: Sufficient funds for agriculture. We have no
overlines w ith correspondent banks. Current interest
rate on agriculture loans is 17 %. (Please do not ask w hat
^ t h e rate will be next m onth. The coin ju st landed on
W A LTER D. NY STU EN, Senior Vice President
F oster County B ank & T ru st Co., C arrington, N.D.
E HAVE no commercial producers of hogs in this
A s for cattle, m ost producers are not very optim istic
for year end prices. They are expecting yearly prices to
about 60 cents.
In our area, early reports are th a t the small grain will
bear good yields; however, there will be a large variation
in quality. Nearly all small grain will go into storage
since we expect prices will not be m uch over loan.
Sunflower crops appear excellent so far, b u t m ost
fields are in early bloom so m ost fields will need another
m onth of frost-free weather to m ature.
M ost farm ers here expect more problems w ith
m arketing than w ith production of their crops.
Yes - m ost com m unity banks will be able to fund ag
loan needs. They will be able to m ake arrangem ents
through correspondents or credit companies available to
them . We in N orth D akota are fortunate to have the
B ank of N orth D akota which has given us good service
• a n d cooperation.
Since our bank has its own credit company, which
discounts loans w ith FIC B , we do not use the local PCA
as a source of funds.



G E R A L D C . H U N K E , C hairm an& C .E .O .
F irst N ational Bank, W est Point, Nebr.

INCE W est Point is predom inantly an agricultural
trade area, your feature title - A nnual Livestock &
0 A g Outlook Report - is the crystal ball for which answers
become more im portant each year.
In checking w ith local buyers, we see no problem w ith
obtaining feeders for the lots this fall. Longer term we
m ay see fewer num bers available, as some cow calf sets
^ w e re sold in drought stressed areas, w ith the cows going
for slaughter and calves weaned earlier th an usual. This
came about because of the high cost of hay, where
pastures could not support their usual num bers.
This fall we will not have dollar a pound calves, as 400
0 weight steers are bringing $72 to $74 a hundred, and
heifers $64 to $66, w ith 600 weight cattle a t $66 a
hundred for steers and $58 to $60 for heifers. M any of our
farm ers are diversified. Along w ith their cattle operation
they are farrow to finish in the hog business. It takes a
^ c e rta in kind of person to run a good hog operation and we
are fortunate to have m any of them . W ith February hogs

Federal Reserve Bank of St. Louis

at $54 on the board, it would seem we could lock in some
profits in the hog business. Longer range we m ust
remember hog num bers can increase w ithin a six m onth
period, depressing prices again.
Irrigation is expanding rapidly in our county, but
m ost acres are still dry land crops. Grain production
ranges from below normal to excellent, w ith m ost fields
looking very good. We were dry early, b u t rains coming
in m id-July changed the potential greatly, especially on
soybeans. W ith the potential crop coming up we could
see corn under $3.00. Soybeans are currently around
$6.55 cash, w ith fall delivery of new beans at $6.33. An
early frost would be about the only thing th a t would cut
soybeans yields in our area.
Banks in our trade area should be able to fund the ag
loan needs. The im portant aspect of lending today is to
m onitor credit to avoid potential losses. C urrently, rates
run around 11V2% to 18 V2% in our rural area; however,
for overline lending, they can expect rates of 19V2% to
20V4% . Country banks m ay find it some w hat more
difficult to overline, w ith city correspondents, b u t I still
think we need to look a t all credits very closely, and this
will make them easier to sell.
We set up an A gricultural Credit Corporation with
FICB prior to the PCA having a full-time office in our
comm unity; therefore, we have not had an opportunity
to overline with them . Our A gricultural Credit
Corporation has worked well for us.
DICK VAN PE L T , President
B ank of Laramie, Laram ie, Wyo.
OUR A R EA , we have had an excellent grass year
an easy winter. We did not harvest the hay crop
Ith aNafter
t we usually cut b u t m ost ranchers had a considerable
am ount of carry overs. Depending on the winter, hay
should sell in a range of $65-75/to n .
As of today, early A ugust, the fall cattle m arket looks
a bit tough for the producer. There has been very little
interest in contracting cattle in our area because of
reluctance of both buyer and seller to p u t their names on
the dotted line. Feeder cattle prices have dropped
substantially since last fall and I am not optim istic
about much im provem ent in the near future. Even with
reduced num bers, the whole system lacks vitality.
I think we will sell yearling steers in a wide range this
fall w ith the bulk going out at $60-63/c u t for 700 lb.
steers in October and $67-72 on 400 lb. calves. Prices
could improve in November and December if there is any
N orthw estern Banker, Septem ber, 1981


improvement in the fat cattle m arket and a lowering of
interest rates.
Our current interest rate on ag loans is 18 % and we
will be able to fund our ag custom ers in their needs as I
think m ost banks in our area will be able to. We also have
an excellent relationship with our correspondent bank on
our over lines.
F irst N ational B ank in Miles City, M ont.
HE OUTLOOK for cattle this fall is not good. While
num bers are down in Southeastern M ontana
because of the previous two years of drought, this
evidently isn’t the case nationwide, as USDA tells us the
current cattle count is up to 125 million head. We had
some lifesaving M ay - June rains th a t grew some grass
and there should be good weights on both calves and
As of early A ugust we have not had any contracts on
either calves or yearlings. Our producers need $1.25 on
steer calves and $ 1.00 on yearlings, b u t current m arkets,
futures prices, feed prices, interest rates and other costs
of the feeders tell me we’ll be darn lucky to see 75 cents
and 65 cents. T h at won’t pay up m any bills, pay interest
and certainly w on’t retire much debt and allow any for
living w ith cost factors as they are.
G rain production in Southeastern M ontana is ju st
short of phenomenal. W inter w heat yields are about the
best ever, where hail has not been the grim reaper.
Again, price is not exciting. F reight is a killer from here
and it looks like the low $3.00 area is about where the
m arket will s ta rt on dark hard w inter wheat. Increased
sales to Russia or China would be a psychological boost,
b u t I am not optim istic about th a t happening before the
end of this year.
Com m unity banks could certainly fund ag loan
dem ands, b u t rate advantage for PCAs is m aking
competition a bit rough. We have not had any difficulty
in funding overlines with big city banks, b u t custom ers
have balked a t “ prime plus’’ interest rates. We establish
in-house rates for ag and commercial loans on a weekly
basis dependent on six-m onth m arket costs, as these
assets-liabilities are nearly a direct offset. Six m onth
m aturities or rate adjustm ents are a m axim um , as we
try to keep pace w ith the gyrating money m arkets. The
first week of A ugust “ best ra te ’’ was 19%, b u t it will
change again next week.

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


I don’t see anything good about PCAs for c o m m e rc ial
banks. PCAs have done an outstanding job of providing
liberal credit at lower cost to farm ers and ranchers, and
their expanded powers under the Farm -Credit A ct
Am endm ents of 1980 will provide opportunities far
beyond th a t ever expected when the concept of co-op#
lending was formed. The FCA will be back to Congress
in the future w anting a few more little favors like tru s t
powers, leasing authorities and transaction accounts.
They will appreciate commercial banks continuing to
purchase their sta te tax-exem pt bonds, however.
The division of the banking com m unity over the Farm
Credit A m endm ents of ’80 was clever strategy for the
proponents. I t will be interesting to see how m any
commercial banks benefit from this act. I t appears to me
th a t a good m any of the larger banks will be elim inated#
because they will be accused of having other sources of
funds, the small banks because of insufficient capital,
and a good m any in the middle because of other
technicalities. I hope I ’m wrong.
A g financing, as with all small business, will be to u g h #
in the next couple of years. There will be m any failures,
both of the businesses and in the attem p t for
constructive financing. The survivors will be much wise
and financially sound.
KENTROM, Senior Vice Pres. & A gR ep.
F irst N ational Bank of Blooming Prairie, Minn.
ASIC outlook on cattle and hogs - m arket ste a d y ^
w ith increasingly higher production costs th a t will
continue to narrow m argins on both.
Basic outlook on grains - w ithout some news, bullish
or bearish, we expect steady m arkets for the coming
If country bankers will take the initiative to explore
other sources of funds they should have no big problem
supplying credit to ag in their areas. The only problem
w ith overline financing with city correspondent banks is
the high rates being charged relative to other sources o f#
We feel PC A is an excellent source of funds for our
bank in th a t they have very com petitive rates and thenpeople have a good deal of expertise in local agricultural
problems. Our local PC A has been participating o u r#
overlines for nearly eight years. Our relationship with
PCA has been very beneficial to our bank and our
custom ers. We are presently exploring the possibility of
a financing relationship w ith FICB directly also.
ROGER J. HOLCK, Vice Pres. & Ag Loan Officer
Citizens N ational Bank, Charles City, la.
H E G EN ER A L condition of crops in north Iowa i s #
excellent. Frequent rains and ample heat units have
produced potential record corn yields. There is concern,
however, th a t the soybean crop m ay suffer some yield
loss because of excessive m oisture. The exception to the
bum per crop potential is the large area th a t has suffered #
hail dam age. A late June hail storm caused excessive
dam age and thousands of acres of soybeans were
replanted. In the event of an early frost, the replanting
effort would be fruitless.
Grain prices rem ain stable and in m any situations the #
return from grain will not meet production costs. The

orim ary variable element is land usage cost. Continued
E ffo rts m ust be made by farm ers and lenders to seek
creative ways to insure a higher return and, in turn,
hedge against the risk of high production costs.
O pportunities are available now w ith the use of the
f u tu r e s m arket and forward contracting to “ lock in” a
p ro fita b le return for both the 1981 and 1982 crops.
The livestock outlook rem ains depressed. Producers
who are carrying a large facility debt have little, if any,
profit rem aining once production costs are m et. Again, a
^ n a rk e tin g plan which involves the use of the futures
niarket has and will continue to allow a profitable return.
Producers who m arket frequently seem to have an
advantage, because of cash flow, over the producer who
m arkets once or twice a year. The beef producers m ust
R espond to the consum ers’ dem and for lean beef and not
let pride cause them to over-finish cattle and
consequently take a dock on the m arket price. This
fallacy is also complicated because of lower feed
efficiency; therefore, less return per bushel of corn fed.
l i v e s t o c k expansion will be at a m inimum until
profitable returns become the rule rather th an the


DICK STIN SO N , Vice President
Rock Falls N ational Bank, Rock Falls, 111.

I F E E L the outlook for the following will be:
Supply: Feeder Pigs - up. F a t Hogs for m arket - up.
% Prices: Feeder Pigs - steady. A round 90 cents to $ 1 .00
per lb. F a t Hog M arket - up to $50.00 then lower into
w inter and spring.
C attle
Very little incentive to feed cattle!
® Feeders: Supply should be large; dem and slow; prices
- steady to high.
F a t Cattle: Price outlook - below profit levels - $70
Grain Production - Excellent: Bum per corn and
® oybean yields of good quality grain.
Price: Expect grain prices to move up to $3.40 range.
Soybeans to stay in $7-7.50 range. Reduced livestock
opportunity will keep grain prices on the low side.
_ B anks - We will allocate plenty of money to finance
% u r farm er’s production costs! 3-5 year interm ediate
money will be even more available as banks try to m atch
funds coming in on longer term investm ents.
In te rest R ates - currently a t 19%, will stay high,
f a r m e r s m ay sell grain earlier to reduce debt and
attem p t to take advantage of the high interest they can
earn on C D ’s and 2 lA year investm ents. D on’t see any
big problem w ith correspondents, b u t we don’t use them
^ P.C .A . - could be a source of funds, b u t I ’d rather go
to FICB th an to the com petition.
DOUG R. A N E SI, Vice President
F irst W yoming Bank, N. A .-Lander, Wyo.
H E SU PPLY of cattle in the Frem ont County area
of W yoming this fall and up to year-end is going to
be very good, prim arily due to the very mild w inter we
experienced. The m ajority of the calf crops looked very
0 good going onto grass this spring and w ith the early
spring m oisture we were blessed w ith, those calves got a
Federal Reserve Bank of St. Louis

very good s ta rt. Prices on the other hand do not look
good a t all. There is very little action taking place for fall
contracts and those th a t are being talked about are in the
low to mid-fifties w ith only a two to four cent spread
between heifers and steers.
Some order buyers have indicated th a t prices on
yearlings may be in the low to mid sixties. There are very
few hogs raised in this area. Not a sufficient am ount to
test the m arket.
Grain production in our area is being described as “ the
best crop ever. ” M alting barley is the prim ary grain crop
grown in Frem ont County and this season growers are
averaging 80 to 100 bushels to the acre. The Coors
Brewing Co. has contracted m alting barley for
$8.00/cw t and on the open m arket it is being purchased
at an average of $6.25/cw t. Feed barley is being
purchased for $5.00/cw t. The lim ited oat production is
described as good w ith yield averages of 80 to 85 b u/acre
and an average offering price of $5.75 cwt.
The com m unity banks in our area have funds
available for agricultural loan needs b u t because of the
extrem ely high interest rates m ost agricultural
borrowers have moved their lines of credit from the
banks and are now financing w ith P .C .A ., the Federal
Land B ank and F .H .A . Our b an k ’s best rate today on
agricultural loans is 21% . Resultingly, we are not
experiencing any problems w ith overline financing.
The P.C .A . office in our area does not as a rule provide
funds for com m unity banks nor do they buy over lines.
M ost of the agricultural operators deal directly with the
P.C .A . office. A t the present tim e the local P.C .A . office
is w riting its ag lines a t 16.9% , w ith a 10% stock fee,
resulting in a new interest rate of 18.75 %; not good, bu t
lower than local banks.
O LIV ER A. H A N SEN , President
Liberty T rust & Savings Bank, D urant, la.
T T H IS STA GE (A ugust 3rd) it would appear this
area is headed for an excellent corn and bean h a rv e st.
Even though we benefit from a river m arket, no one is
overly optim istic about the price outlook. Unless
som ething develops which will increase exports, the
price this fall shows little chance of an increase.
In the p ast this usually m eant the purchase of more
feeder cattle. Losses of recent m onths, present prices of
fat cattle and interest rates have really dam pened any
enthusiasm about feeding cattle. If feeders rem ain in the
low 60's and fats work up tow ard 70 again there m ight be
some enthusiasm . M any feeders of former years have
simply dropped out of the business and it is not too likely
they will w ant to go back to w inter chores.
If com prices don’t work upw ard I ’m certain we will
not see a drop in hog production. Should this happen
nationwide, we have the capacity to overproduce pork
very rapidly w ith cheap grain. W ith plentiful grain
selling a t a low price and unem ploym ent affecting
dem and for m eat products, one can’t be overly
optim istic.
Loan demand has been very quiet and ample funds are
available. I t isn ’t the supply b u t the price, even though
we have rem ained extrem ely com petitive on rates.
Unless we see general price im provem ents for farm
commodities, some operators will find out w hat “ cash
flow’’ really m eans this fall and winter. A fter harvest,
statem ents could be interesting!


N orthw estern Banker, S eptem ber, 1981


Part II
How bary<

OUR experienced agricultural bankers and a
professor of agricultural finance told more than a
dozen agricultural reporters and editors recently hov^
banking regulatory changes and inflation are altering
the way banks do business w ith their ag custom ers.
The occasion for the press conference was the opening
of the American Bankers A ssociation’s first National
Advanced A gricultural Banking School at Iowa S t a t ^

Funding ag loans

Cost of deregulation

F irst Central S tate Bank
D eW itt, la.

Farm ers S tate Bank
Trim ont Minn.
l i l 'I l i P


RA D ITIO N A LLY , nearly the entire source of
funding for bank loans has come from the small
depositor who invested in bank savings and certificates
at rates regulated by law. In effect, the small saver was
subsidizing the borrower. The overall increases in the
general level of interest rates, accompanied by the
offering of the money m arket certificate at rates
reflecting money m arket yields, began a significant
change in the structure and costs of small bank deposits.
The new structure reflects higher and more volatile costs
and shorter m aturities.
A gricultural banks have learned to accom modate this
changed liability structure by changing loan pricing
strategies and m atching asset m aturities to the average
m aturity of liabilities.
While the money m arket certificates have allowed
banks to compete for deposits w ith other regulated
interm ediaries, the com petition from unregulated
com petitors continues to lure away deposits which
otherwise m ight be available to the agricultural bank
and in tu rn used to finance agriculture.
Money m arket m utual funds are by far the largest and
m ost successful com petitor for deposit dollars. Their
grow th in the last two years is a story in itself. Since
January, 1979, the assets of money m arket m utual
funds have increased from approxim ately $10 billion to
well over $120 billion today and recently they have been
growing a t nearly $2.5 billion per week. Their assets
today are approxim ately equal to the assets of the 8500
sm allest banks (these are the agricultural banks) in the
U nited States. Some of the investm ent in the money
m arket m utual funds gets channeled back to banking
b u t rarely does it get back to the agricultural bank.

m atching m aturities of loans to deposits to perm it rate
changes as costs change. This, however, is often a
cumbersome m ethod, particularly in fin an cin g
agriculture where structuring loan m aturities to income
flow is a necessity. A banker doesn’t like to be assessing
interest paym ents when his farm custom er has no cash
M any bankers are finding the use of variable in te r e s t
rates on loans a much more satisfactory m ethod to
m aintain their m argin. Though variable rates are new to
m any country banks and farm borrowers, they are both
finding advantages in this m ethod.
For the bank;
1. I t perm its pricing at a constant m argin, enabling
the bank to pass the increm ental cost to the
2. I t enables the bank to pass on the cost of marginal^
funds in periods of tig h t money and high rates. w
3. I t perm its the bank to ad ju st rates competitively
to cheaper core deposits in periods of slack loan
4. By being able to pass on the price of purchased*
funds, a bank can com fortably make seasonal
com m itm ents in advance to farm ers which may
exceed the banks core deposit base.
For the borrower;
1. He is not locked in to to d ay ’s high rates.
2. He has more assurance th a t funds will be available
on a continuing basis, even though the cost is not

(Turn to page 120, please)

(Turn to page 66, please)

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


IT H deregulation, we have seen some relief fro i#
rigid usury laws, perm itting banks to price their
loans to preserve their m argins. They have done this by


deregulation affects farm customers
U niversity in Ames, la . The four bankers discussed how
ag loans can and will be funded, the cost of deregulation,
£ innovative b a n k /a g services and the long range focus.
Dr. Peter J . B arry, professor of ag finance a t the
U niversity of Illinois, U rbana, and m oderator of the
press conference, gave an overview of inflation and
banking deregulation. He said the farm sector is the
^ fastest growing dom estic user of credit. He noted th a t

Bank/Ag services
Senior Vice President
B ank of America
San Francisco, Calif.

I f M f E SHOULD talk about financial services, not
VV banking services. The increased com petition th a t
will arise from a growing num ber of institutions for
agricultural business will benefit users, b u t it will also
increase the pressures on each of the institutions for
^performance in areas in which they m ay not presently be
involved. The th irst th a t agriculture and agribusiness
will have for capital, to which one m ust add the
uncertainty arising from volatility of comm odity prices,
will require not only increased borrowing, b u t also b etter
*m anagem ent of the assets and liabilities controlled by
farm and agribusiness operators. The financial entities
will develop services th a t will provide a com petitive
edge, albeit possibly short-lived, to m eet the needs of
their agricultural custom ers.
• Control D ata Corporation is using its electronic
sophistication to provide inform ation system s for small
farm ers. My understanding is th a t this pilot program
has been relatively successful. I t m eans th a t smaller
banks can provide extension of up-to-date information
to their custom ers, large or small, to make each of their
borrowers stronger operators. W ith compatible
equipm ent in b a n k s, and term inals in the offices of their
borrowers, operating budgets can be initiated and kept
(up to date with great ease. Some of these term inals can
be utilized to display some of the inform ation th a t
Control D ata is providing to its pilot group of farm ers.
M arket inform ation on commodities, local real estate
data, leasing and rental inform ation, notices of sales,
I and w eather inform ation can be quickly made available
to a b a n k ’s entire serving area.
• Combining portable ground stations with a satellite
and a centralized com puter which ties into the U .S.
# B A N K /A G SERV ICES . . .
(Turn to page 83, please)
Federal Reserve Bank of St. Louis

“ since 1975, to tal farm debt grew at 14.4% per year;
non-real estate farm debt grew a t more than 16% and
farm real estate debt grew a t a 12% ra te .” The fastest
growing component of farm costs today, he said, is
interest paym ent.
Dr. B arry reviewed m any of the problems, risks and
pressures of farm ing today, then introduced the bankers
whose rem arks are summarized below.

Long range focus
National Bank of Monticello
Monticello, 111.

GRICULTURA L bankers will face new challenges
as banking emerges from 50 years of tig h t
regulation and a generation of Regulation Q. These
challenges will affect the m anner in which banks service
the needs of their farm custom ers and will influence all
aspects of bank operating policy.
A look back at agricultural banking during this
50-year period of regulation will identify several
conditions. Low interest rate regulation of savings and
time deposits tended to keep the cost of funds to rural
banks relatively low. These banks were then able
traditionally to loan to their farm custom ers at lower
than money m arket rates. As loan demand increased,
rural banks were limited in their ability to compete for
funds outside of Regulation Q as could money center
banks and institutions by offering money m arket funds.
Banks, under Regulation Q, have tended to be
stereotyped since all came under the same rate
lim itations and regulations. Innovation and individual­
ity among banks and bankers have been discouraged.
I t is reasonable to assum e th a t m any of the existing
financial trends in agriculture will accelerate in the
future. Farm ing units will continue to increase in size.
Ownership may tend more and more away from the
family farm to off-farm ownership structures. The heavy
load of estate taxes and increasing capital requirem ents
will make it more difficult to pass family ownership from
generation to generation. A griculture will specialize to
even greater degrees and production will improve in
quantity and quality. Capital requirem ents will
increase, not only because of greater unit size, but
because of the development of more sophisticated,
autom ated labor saving equipm ent. Profit m argins will
(Turn to page 83, please)
N orthw estern Banker, S eptem ber, 1981


Part III

At Midwest Banking Institute—

Ag outlook:
Bright but uncertain





ly Ä

H E OUTLOOK for agriculture in the 80s is general­
ly bright b u t somewhat uncertain predicted several
instructors at the M idwest Banking In stitu te, which
wrapped up its annual week-long session at the
U niversity of M innesota, M orris Cam pus, Friday, July
31, 1981.
“ I ’m optim istic about agriculture,’’ Paul H asbargen,
ag-extension exconomist a t the U niversity of

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


M innesota, told some of the more th an 200 bankers
attending the In stitu te. W e’ll see a strong agriculture®
economy in the 80’s as a result of tig h t grain supplies.
“ The price of grain will continue to increase at least as
fast as the general inflation level,’’ he predicted. Because
of high inflation rates though, higher debt farm ers will
have lower earnings. “ Those farm ers who are highly®
leveraged will have difficult y e a rs,” he said.
According to Deri Derr, director of the A gricultural
Bankers Division of the American Bankers Association,
the overall outlook for farm ers is favorable, a lth o u g h ^
future governm ent program s will play a key role in thew
grow th of farm income. Specifically, Mr. D err pointed
out th a t inflation rates,
international trade,
transportation and energy policies could potentially
have a m ajor effect on farm income.
O tto Doering, professor of ag-economics a t Purdue
U niversity in Indiana, painted a less rosy prospect for
farm ers. “ Farm land prices m ay go down or stabilize
during the next y e a r,” he said. “ The best we can expect
is th a t farm prices will rem ain stable . . . which m e a n s#
th a t land values will actually d ro p .” This will present
m ajor problems for a good proportion of the farm ing
“ In the past, the farm er has lived with high inflation
by being able to count on land going up in value.” B ut, if®
land values no longer continue to increase, farm ers are
going to have difficulty obtaining adequate short-term
funds. A reduction in farm lending, however, will not
occur if commodity prices go up enough to com pensate
for stablizing land prices, Mr. Doering pointed o ut.®
Thus, if commodity prices rise quickly, through a grain
sale or other change in the world m arket, this potential
problem could be averted.
Mr. H asbargen, Mr. Derr, and Mr. Doering were j u s t ^
three of the more them 30 faculty m em bers participating
at the In stitu te. The lecturers, representing academia,
governm ent, farm ing and banking, spoke on topics
ranging from estate planning to livestock m arketing,
with prim ary emphasis on how bankers could improve q
their financial analysis of farm ing operations and their
financial counseling services to farm ers.
Specific topics included credit analysis, futures
trading, business lending, effective comm unications, as
well as the economic outlook for farm ing.
“ T oday’s farm er and banker m ust be a skilled
m anager with expertise in science, economics,
engineering, and agronom y,” W ayne Berthiaum e,
In stitu te adm inistrator and adm inistrative vice-presi­
dent of the M innesota Bankers Association, told®
In stitu te students. “ A m ateurs don’t survive. Not in
farm ing, and not in agricultural finance. The successful
banker also m ust know about agri-business relations,
the sources of funds, farm financial planning, pricing of
services, credit analysis, plus a variety of other areas®
dealing w ith the ultim ate survival and profitability of
the bank and farm er.”
The goal of the In stitu te, according to Mr.
Berthiaum e, is to help bankers become m o re ^
professional in their handling of agricultural lending
E stablished fifteen years ago, the two-year In stitu te
program , which is held one week each sum m er at the
Morris Campus of the U niversity of M innesota, h a s ^
grown to enroll some 200 students annually.


Does your correspondent bank
make investments that bring
the desired return?

We do—
overnight or over a decade.
It’s a big job, staying attuned to all
domestic and international money
It’s a job for experts who devote all
their time to the task. Experts who
have access to the latest com­
munications and computer equip­
ment. The experts in Mercantile’s
Bond/lnvestment Department.
No matter how long you want your in­
vestment capital tied up, we can pro­
vide a plan that suits your needs.
Overnight Investments. Federal
funds. Repurchase agreements.
Reverse-repurchase agreements.
Short-term Investments. US.
Treasury bills. Agency obligations.

C o rre s p o n d e n t B a n kin g D ivisio n
M e rc a n tile Trust C o m p a n y N.A.
St. Louis, M O (314) 4 2 5 -2 4 0 4
Federal Reserve Bank of St. Louis

Tax-free municipal notes. Commercial
paper. Large certificates of deposit.
Banker’s acceptances. And almost
any other type of money market
Longer-term Investments. U S.
Treasury Bonds. Agency obligations.
Tax-free municipals and other long­
term debt instruments.
Safekeeping Services. The last thing
you probably need is the inconven­
ience and risk of shipping certificates
back and forth. Save that hassle by
keeping your certificates in our vault:
we’ll provide computer reports for
your records.
Just Plain Good Advice. No, we
can’t make any final decisions for
you. But we can help you make deci-

sions wisely. By keeping you up-to-the
minute on constantly-changing
money and securities markets.
That’s why we keep a service office
on Wall Street. And why we’ve
invested in computers. And keep
access to the Federal Reserve Book
Entry System.
All these keep you informed and let us
execute your buy/sell orders im­
mediately. They’re your best guaran­
tee of desired return.
What’s more, Investment is just one
of our correspondent services. So call
a Mercantile Banker today.

W e’re with you.

M = R c n r m i=
N orthw estern Banker, Septem ber, 1981

A rt created from an original collage by Lou Beach.
Federal Reserve Bank of St. Louis

M oney,A nywhere In JHe World,
We Ca n Help.
To discover and develop opportunities
at home and abroad, corporations need
a financial resource that goes beyond
traditional banking services. A resource
that is worldwide in scope, and skill.
By looking forward, by pre­
paring to meet the challenges of our
ever changing business environment,
Security Pacific Bank has become that
We can help corporations
build in Los Angeles or London, lease
in New York or Frankfurt, buy in
Miami or Tokyo, sell in Chicago or
Hong Kong, acquire in Seattle or Sing­
apore, hedge in Boston or Bangkok.
Security Pacific experts are
committed to giving corporations strong,
consistent support in all financial areas
all across the country, all around the
world, all around the clock.
If you’re a cor­
porate officer, remember
this: Each day the sun
rises, there’s a bank that
can help you find oppor­
tunities anywhere you
w ant to look for them .
Security Pacific Bank.


©1981 SPN B
Federal Reserve Bank of St. Louis


Part IV

Beef industry at crossroads

3 areas key to financial stability
W ritten especially for T h e N o r t h w e s t e r n B a n k e r
Chairm an, N ational Livestock and M eat Board
Beef In d u stry Council, Corwith, la.
H E B E E F industry is a t a cross roads. We m ust
come to grips w ith problem s in three key areas to
regain a semblance of financial stability. These areas are
the kind of product, product volume and level of
prom otional activity cattlem en will support.
Kind of Product
• W hat does the consumer really want? I don’t think
the industry today knows the full answer to th a t
question. We know the consum er w ants a product th a t is
lower in cost, contains more lean m eat and m aintains its
traditional taste, nutrition and versatility.
Today’s consum er is changing. We need to study the
various segm ents of the m arket, determ ine their needs
and w ants and produce for them . For example, two of
the fastest-grow ing population segm ents are persons
age 25-44 and working women. Their needs are different
from those of the “ trad itional” family, which m akes up
less th an 20% of to d ay ’s households. The new consumer
is' different in term s of size and meal preparation tim e.
Cattlem en can meet these new dem ands in two ways.
F irst, a change in the grading standards can focus
production on the desirability of a leaner, shorter fed
animal. Secondly, through more closely defined genetic
objectives, the industry can produce anim als th a t will be
more economical to raise, fit the grading standards, and
still meet consumer quality dem ands.
Product V olume
• The production level in 1980 was 105 pounds carcass
weight per person. We sold at a loss, although the level
was down from a high of about 130 pounds per person.
Obviously, we are producing too much beef for the
dem and to make the business profitable.

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis





We recognize th a t a m ajor reason for decreasing beef
dem and is a poor economy. O ther contributing factors#
include the d iet/h ealth controversy and vegetarianism .
The industry will s ta rt to react to declines in dem and by
cutting production further. T h at indicates a liquidation
phase over the next couple of years — ju s t when reports
indicate we had started building herds. This will keep#
further pressure on cattle prices during the coming
inventory reduction phase, a move necessary to return
some profitability to the industry. T h at profit level m ay
be only 80-90 pounds per person in consum ption.
Level of Promotional A ctivity
• Finally, w hat level of prom otional activity will
cattlem en support? We need to include all program s of
hum an nutrition and product research, educational
activities for students and adults and paid advertising^
w ith retail coordination.
Today, the industry is investing 3 cents per consumer.
By m id-1982 we hope to triple th a t investm ent. T hat
longer term goal is 30 cents per consumer.
W ith these dollars we’ll find out, in more detail, w h a t^
advantages beef has in nutrition and w hat consumer
attitu d es are tow ard beef and com petitive products.
W e’ll develop educational program s, based on the
research, for K -12 students, and concentrate advertising
and point-of-purchase m aterials reaching the consum er.^
Problems Are Long-Term
The problems facing the cattle industry are long-term
and complex. I t ’s easy to look a t the negatives and paint
a discouraging picture. B u t there are real plusses for the
industry, not the least of which is consum er’s preference#
for beef. W e’ve taken the first steps to build our efforts
through financial contributions by cattlem en to sustain
a national prom otional and research effort. Short term
benefits will be minimal. Long term results will mean
survival for those innovative and efficient producers#
who will make up tom orrow ’s industry.


Home equity loans represent too great
an opportunity to overlook in today’s
market. Loans of this type will generate
substantial income and the home
owner is your most stable customer.
In addition, your cash flow will be
improved since the funds will not be
committed for long periods of time,
as is the case with first mortgage
The no risk ICS Home Equity Loan
Profit Program provides an incentive
to pursue this business in a vigorous
and aggressive manner. We offer a
flexible, dynamic program designed to
provide 100% coverage against loss
on home equity loans.
ICS guarantees prompt, 100% reim­
bursement of the unpaid principal,
plus interest and costs. You determine
the rate of return on all home equity
loans written. Full loss protection
guarantees that return.
When you determine a loan is uncol­
lectible, simply file the loss, and
payment will be made within 10 days.
ICS, a subsidiary of Old Republic
International, brings you 27 years of
underwriting and marketing exper­
tise. Currently, over 1700 financial
institutions are enjoying the benefits of
our unique and innovative programs
covering both property improvement
and home equity loans.
Mail the coupon today for further
information, or call William F.
Schumann, President, at (312) 621-9400.

Show m e how ICS can increase
m y loan profit picture.



The ICS Home Equity
Loan Profit Program
Federal Reserve Bank of St. Louis


307 N. Michigan Ave.
Chicago, IL 60601

N orthw estern Banker, Septem ber, 1981


John D. Mangels Elected RMA President
OHN D. M angels, president,
Rainier N ational Bank, Seattle,
W ash., was elec­
ted president of
M orris
Associates, the
national associa­
tion of bank com­
mercial loan and
credit officers, in
the association’s
annual election
on A ugust 7.
Dodge, executive vice president,
M ercantile-Safe Deposit & T rust
Company, Baltim ore, M d., was
elected first vice president. Jack R.
Crigger, executive vice president,
American N ational B ank & T rust
Company, C hattanooga, Tenn., was
elected second vice president. All
term s are for one year.
In addition, four new directors
were elected to the RMA board for
three-year term s. They are John
Langeland, president, Zions F irst
N ational Bank, Salt Lake City, U tah;
Robert P. P riest, senior vice
president, M erchants N ational Bank
of Topeka, K an.; G lenhallE . Taylor,
J r., executive vice president, Wells
Fargo Bank, San Francisco, Calif.,
and Edw ard J . W illiams, treasurer,
Brown B rothers H arrim an & Co.,
New York, N.Y.
Also, Michael J . H organ, who is
completing a three-year term on the
RMA board, was elected to fill an
unexpired one-year term .
H organ is senior vice president,
Citibank, N .A ., New York, N.Y.
The new officers and directors
began their term s of office on
Septem ber 1 , 1981.
RMA President M angels has been
with Rainier N ational Bank since
1950. He was nam ed vice chairm an of
Rainier B ancorporation in 1975 and
president of the bank in 1976.
M angels is a mem ber of R M A ’s
P uget Sound C hapter.

Chilton Offers Consumer
Class Action Insurance
A t the recent annual m eeting of the
Chilton Corporation in Dallas, Tex.,
Chairm an J .E .R .
announced form ation of Chilton
Insurance Company and explained
its new product to shareholders in
attendance. Through a national
N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


general insurance agency, Chilton
will m arket to banks and savings and
loan associations a previously
unavailable program of insurance
known as Consumer Credit Class
Action Insurance.
A totally new coverage for the
financial industry, this insurance
protects the insureds against awards
of actual dam ages, civil penalties,
court costs and attorney fees
resulting from class action law suits
brought under the Federal T ruth in
Lending A ct, F air Credit Billing A ct,
E qual Credit O pportunity Act, and
Electronic Fund Transfers Act.
I t is the opinion of the Federal
Reserve Board th a t m any small and
medium sized institutions are not in
total compliance w ith these acts and
regulations because of the prohibitive
expense involved in doing so. And, in
spite of the fact th a t violations of
these sta tu te s are subject to suits for
up to $500,000 in class actions, this
type of coverage has been, to this
point, non-existent in the m arket.
M r. Chilton stated , “ W ith our
com pany’s m arket position and
reputation, as well as our established
relaionships with so m any firms in
the financial services industry, we
feel th a t providing a product such as
this m akes a lot of sense. As you
know, we’ve been heavily involved in
credit legislation affecting our
custom ers for quite some time. Not

only have our people lobbied
extensively on these acts, but wel
have also sponsored numerous
seminars to acquaint our custom ers
with compliance m easures and
techniques. In our view this is one
more way we can help our custom ers f
in the credit expansion area of their
business. We believe the insurance
product will lead naturally into m any
new areas of assistance in the
fu tu re .”

Doane-Western Unveils
New National Logo
The new company formed by the
recent m erger of Doane Agricultural*
Service and W estern Farm M anage­
m ent Company is “ Doane-W estern,
In c .” A totally new logo has been
designed for the national firm to use.
in advertising, and in signage for the*
more than 70 offices from coast to
Farm and ranch m anagem ent, real
estate brokerage, m ortgage loans,^
appraisals, consultation and feasibil­
ity studies will be services available
from virtually all offices. The
company will m aintain dual head­
quarters in St. Louis and Denver. ^
Nationwide Doane M arketing Re­
search services will continue to be
offered from the St. Louis headquar­
ters and all Doane publications will be
edited there. William A. Clymor,^
president and chief executive officer,
is located in the Denver headquar­

Continental Offers Futures Service
O N TIN EN TA L Bank, Chicago,
has introduced a new advisory
service for corporations, banks,
savings and loans, and governm ent
entities to help them m anage their
exposure to interest rate fluctuations
through the use of financial futures
m arkets.
The new Financial Futures A d­
visory Service, which is offered
through the bond and treasury
services departm ent, will provide
continuing m easurem ent of a client’s
interest rate risk and strategic
recom m endations for m anaging it
m ost effectively.
“ The use of financial futures as a
means to hedge interest rate
fluctuations is not yet widely
recognized,” said Dennis J . McDonnel, vice president. “ However, we
believe they soon will become a
commonplace financial m anagem ent


M r. McDonnell added th a t the
b an k ’s initial task will be to introduce
clients to financial futures concepts
and the risk m angem ent results th a t
can be obtained.
Specifically, the new fee-based
service will explore with clients the
feasibility of hedging floating or fixed
rate assets or liabilities, design
specific hedging program s and assist
in their execution, and m onitor
hedged positions.
M r. McDonnell said the factors
leading to the b a n k ’s decision to offer
the advisory service include its
position as a prim ary governm ent
securities dealer, its proxim ity to and
long association w ith m ajor commod- (
ities exchanges, its experience with
financial futures instrum ents, and
the need of a wide variety of its
custom ers for improved ability to
m anage the risk caused by highly (
volatile interest rate m ovem ents.


When your
We make
things grow.
Now and then, when you need
help with your better agricultural
customers, it’s nice to be lined up
with the First National Bank of
Kansas City
We’ve been lending money to
farmers and the agricultural com­
munity for years and years. As a
matter of fact, we have two
officers who do nothing else.
Sometimes, as much as you want
to help make things grow for your
customers, you need help doing
it. That’s when you should con­
tact us. We can help you help.
Call and ask for any of our
correspondent officers.



10TH AND BALTIMORE □ BOX 38 □ KANSAS CITY, MO 64183 □ (816) 221-2800 □ MEMBER FDIC
Federal Reserve Bank of St. Louis

N o rth w e s tern Banker, S eptem ber, 1981


National Leader Gabriel Hauge Dies


A B R IEL Hauge, 67, one of the
nation’s leading international
bankers for over
two decades and
former economic
advisor to Presi­
dent E isenho w er,
died Ju ly 24.
From 1971 u n ­
til his retirem ent
in 1979,
Hauge was chair­
m an of the board
of M anufacturers
H anover T ru st Company,
n ation’s fourth largest bank, and its
parent company, M anufacturers
H anover Corporation. Before th a t he
served as president of MHC and
M HT and vice chairm an of the T rust
His tenure included a period of
legal challenge and of dynam ic
growth. The 1961 m erger of
M anufacturers T rust Company and
The Hanover B ank was challenged
for five years by an a n titru st suit.
A fter settlem ent, the organization
grew from $7.7 billion of assets in
1966 to $55 billion in 1980; from 200
offices in a single city to a national
netw ork of more th an 700 offices in 31
states and 100 facilities in 40 foreign
Born in Hawley, M inn., the son of
a m inister, M r. H auge was an
economist by training. He received a
bachelors degree from Concordia
College in M oorhead, M inn., and an
M .A. at H arvard. Following W orld
W ar II service as a U .S. N avy officer
aboard battleships in the Pacific, he
returned to H arvard for his Ph.D . He
received honorary degrees from
Concordia, M uhlenberg and G e tty s­
burg Colleges and in recent years,
honorary degrees from Pace College,
Yale U niversity and HampdenSydney College.
A thoughtful and eloquent speaker
as well as a polished writer, Mr.
H auge had enjoyed an impressive
career in education and journalism
before turning
governm ent
service. He was assistan t dean of men
and coach of forensics a t his alma
m ater, tau g h t economics a t both
H arvard and Princeton, and served
with Federal Reserve B ank of New
York and the New York S tate
banking departm ent before moving
to Business Week as editor of its
“ T rend” editorial page. Subsequent­
ly, he was nam ed assistan t to the

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


chairm an of the executive comm ittee
of M cGraw-Hill Publishing Com­
In 1951, Mr. H auge served as
director of research for “ Citizens for
Eisenhow er” and in June, 1952, took
a leave of absence to join Mr.
Eisenhow er’s personal cam paign
staff. A fter the election, President
Eisenhower appointed Mr. Hauge
adm inistrative assistan t for economic
affairs and subsequently special
assistan t for economic affairs.
In 1958, after nearly six years in
the W hite House, M r. H auge joined
M anufacturers T rust Company as a
director and chairm an of the finance
comm ittee, despite the offer of a
cabinet post by President E isen­
In Septem ber, 1961 M r. H auge
was elected vice chairm an of
M anufacturers Hanover T rust Com­
pany, formed after the m erger of the
M anufacturers T rust Company and
H anoverB ank. In July, 1963, he was
elected president of M HT and, in
1969, president of MHC, when the
parent holding company was formed;
J o h n F . M cGillicuddy, chair­
m an of M anufacturers H anover
Corporation & M anufacturers
H anover T rust, made this
statem ent on the death of M r.
Hauge: “ Some will remember
Gabe H auge as th a t rare
combination — successful busi­
nessm an and certified intellec­
tual, a m an of the mind bu t at
home in the m arketplace. And
so he was. B ut I think of him in
the words he once used to
descríbem e, “ as my close friend
and closest colleague.” W hat
set Gabe ap art was not only the
brilliance of his mind b u t the
character of the m an behind it:
the hum or and compassion he
brought to work every day; the
drive for excellence in all things
great and small; his active
involvement as a truly public
m an, working to make things
better in a com m unity extend­
ing far beyond finance and
business; his love of language
and ideas and the elegance to
make himself heard. As he said
on the passing of a close
associate, “ M ay God keep him.
I wish we could.”

in February, 1971 he was named
chairman of the board of the flagship •
bank and of M HC, the position he
held until retirem ent in 1979.

Minneapolis Site for ABA
Blanket Bond Symposium


To help bankers deal effectively
with revisions to the Bankers B lanket
Bond policy, the American Bankers®
A ssociation’s Insurance and P rotec­
tion Division will offer a Bankers
B lanket Bond Sym posium on Octo­
ber 22 at the M arriott Hotel in
M inneapolis, M inn.
The one-day program , designed for
risk and insurance officers, insurance
m anagers, and agents or brokers, will
analyze the Bankers B lanket Bond on
a line-by-line basis and g iv e#
background inform ation on the
reasons for and ram ifications of the
The Bond Standard Form No. 24
was revised by the Surety Associa-®
tion of America in July, 1980.
Coverage under the new Form 24
begins for each B ank on the premium
anniversary date of its bond.
Faculty members for this sym -®
posium have served on the ABA
Bankers Blanket Bond subcom m ittee
th a t was initiated in A ugust, 1977,
and which worked w ith the Surety
A ssociation’s Bond Revision Sub-®
comm ittee tow ard the completion of
the revisions.
Raym ond V. Brady, vice president
of Frank B. Hall and Company of
New York, Inc., is also m anager of®
the com pany’s financial institution
departm ent and a former vice
president of Chase M anhattan Bank,
in charge of its insurance departm ent. _
Paul V. H iggins is vice president of®
Bankers T rust Company in New
York, where he is responsible for the
worldwide risk and insurance m an­
agem ent function of the bank holding ^
company and its subsidiaries. T h e W
third mem ber of the faculty, John
Robert Jam es, vice president of
Chemical Bank, New York, is
responsible for risk and insurance ^
m anagem ent for the bank, its holding
company and their subsidiaries.
Cost of the Bankers Blanket Bond
Sym posium is $135 for ABA
members and $170 for nonm em bers. ^
For more inform ation, contact Shelly
Davis, ABA, 1120 Connecticut Ave.,
NW, W ashington, DC, 20036, (202)
467-4047. This is the only Bankers
B lanket Bond symposium offered q
this year.



FlSI's primary thrust is the generation
of fee income for financial institutions. Expertise in
marketing and employee training are natural
outgrowths of our years of experience. That is why we
remain the nation's largest bank marketing firm
with more than 2,000 client banks.
The advent of electronic banking and
increased competition through the Eighties serves to
disclose exciting new horizons to FISI and our clients.
We welcome this challenge with enthusiasm
and confidence.
And we welcome the opportunity to talk with you
about increasing your services and your profits. "
H e n r y C. M c C a l l

Chairman and President

fin a n c ia l in s titu tio n
Federal Reserve Bank of St. Louis

P.O.BOX 40726
800/342-2109 (TN)

800/251-2148 (NATL)

N orthw estern Banker, Septem ber, 1981


member of U nited W ay’s board of
directors. His cam paign organization*
will be responsible for raising over
$1.25 million for local youth and
social service agencies.

South Dakota

Elected at First Mitchell
M. E. T u rn q u is t, c h m n ., S ioux Falls
J. M. S ch w a rtz, exec. m g r . , Pierre

Black Hills Elections Told
Charles T. Undlin, president of the
F irst N ational B ank of the Black
Hills in Rapid
City, announced
elections: Dennis
P. Studer to vice
president- hum an
resources, John
C. Brown to per­
sonal loan officer
and Carol Tacke
to loan officer
at the Sturgis

M r. Studer is a graduate of South
D akota S tate U niversity. M r. Brown
earned a BS degree from E astern
M ontana College in Billings, M ont.
Ms. Tacke has a BS degree from
Creighton U niversity in N ebraska
and joined the bank as a trainee in

Dennis Everson has been elected
vice president of F irst M itchell
N ational B ank and will supervise the
agricultural loan departm ent. H e #
joined the bank in 1976.
Don Bohr has joined F irst M itchell
as agricultural loan officer. Mr. Bohr
has gained banking experience in
W yoming, M ontana and W essing-#
ton, S.D.

Eden Acquisition Approved

The Federal Reserve Bank o f ^
Minneapolis has approved the
C .P. Moore, president of N orth­ application by Eden Bank Holding
w estern N ational Bank of Sioux Company, Inc., to become a bank
Falls, has been nam ed chairm an of holding company through
the city ’s fall 1981 U nited W ay acquisition of the F irst N a tio n a l^
cam paign. M r. Moore is a current Bank of Eden.

Moore to Head Fund Drive

Daktronics Unveils Two New Electronic Units
Aberdeen Bank Installs
New Message Center

FIRST NATIONAL Bank of Aberdeen
has installed a new three-sided
message center display at its branch
in Milbank. The new Banco office is
located on Highway 12 downtown.
The Venus 3000 system was
supplied by Daktronics, Inc. of
Brookings and features two 64
column message centers and a time
and temperature system w ithin the
three-sided design. The display is
mounted on a granite pillar supplied
by the Dakota Granite Company of
Milbank and installed by a local
craftsman. The system features a
seven day program schedule, 8000
character memory, programmable
graphics and is operated from a
keyboard entry w ithin the bank.

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


D aktronics, Inc. of Brookings,
S.D ., held a two-day sales conference
in Brookings for
sales representa­
tives from the
nine sta te area
and departm ent
m anagers from
the corporate di­
visions a t the
home office.
The highpoint
of the m eeting
was the unveiling
of the two new products which will be
m arketed during the coming year. A
new economical m essage center
entitled ‘‘Olympian 80, ” to be used in
sport applications and as an
advertising medium for financial
institutions and other businesses.

The second is a swimming printing®
tim er/display system . Dr. Aelred
K urtenbach, president, said he was
encouraged by early m arket accep­
tance of the products.
O ther speakers a t the m eeting were®
Van D. Fishback, vice president of
F irst National Bank in Brookings;
E rn est Edw ards, superintendent of
the Brookings school district, a n d ^
Tom Lang of the Dodge R eport®
division of M cGraw-Hill Company.
Each presentation was related to
selling procedures and suggestions
when working with their re sp e c tiv e ^
D aktronics, Inc. is a designer of
microprocessor based scoreboards
and inform ation display system s and
sells to financial institutions, schools, ^
municipalities and the sports m arket.

South Dakota Group Meetings

D ate



Sept. 14

Hotel Alex Johnson, Rapid City


Sept. 15

W rangler M otor Inn & Mobridge
Country Club


Sept. 16

L antern Inn, M ilbank


Sept. 17

Holiday Inn, Mitchell


Sept. 18

M innehaha Country Club, Sioux Falls

If you think your correspondent
bank is stringing you along,
maybe its tim e you severed the ties.
Sometimes, getting the answers you need from
your correspondent banker can be a frustrating
experience. One that consumes too much of your
valuable time. And one that could contribute
to your loss of a customer.
At Midland National Bank, we won’t string
you along. Because most of our business
as a bank comes from dealing with businesses
and other banks. So, frankly, we’re willing
to put a lot of effort into making
our relationship with you work.
We’v e organized our bank
in a way that allows you to
deal directly with a decision
maker, rather than having
to go through several review
committees. Our correspondent
team is dedicated to responding to
your needs quickly. And, our
expertise with small and mid-sized
businesses puts us in a unique
position to understand your
customers’ needs.
So the next time you feel like
your correspondent bank is giving
you the business, call the Midland
National Bank correspondent team,
toH free at 1-800-752-4200.* And see
how the bank for business can
go to work to improve yours.
*In North and South Dakota, call 1-800-328-8678.

M idland national
bank Of Minneapolis
An Affiliate of Northwest Bancorporation

We’re big enough to know how
and small enough to know you.
Federal Reserve Bank of St. Louis


By joining hands we can do a lot better for our
customers and ourselves.
National Boulevard can help augment
your banking operations, expanding the scope
of existing services and implementing new
ones for your respondent customers.
Our “One-On-One” correspondent bank­
ing professional works closely with his coun­

terpart at your bank. His job: to coordinate
financial resources, facilities and capabilities
for maximum benefit.
At National Boulevard there’s only one
way—the One-On-One way—for us to work
together. And when we do, we make a combination that’s practically irresistible—and
highly profitable.



The Bank for the New Downtown.
400-410 N. M ICH IG AN AVE., C H IC A G O , IL 60611
ONE ILLINOIS CENTER (111 E. W acker), C H IC A G O , IL 60601
(312) 8 3 6 -6 5 0 0 • MEMBER FDIC
for estern
N orthw
Banker, Septem ber,
Federal Reserve Bank of St. Louis




New Branch in Lynwood
Gilbert J . Rynberk, J r ., president
of the F irst N ational B ank of
Lansing, has announced the opening
of a branch facility in Lynwood. The
branch is located a t 19500 Torrence
Avenue and will be m anaged by
A nnette Jordan.

J . A . F itc h , p re s ., C hicago
W . J . H octer, exec. v . p . , Chicago

Thesis Receives Honors

New Computer Addition in Skokie

Roger A. Reese, vice president and
controller of Am erican N ational Bank
& T ru st Co. in Rockford, has received
library honors by the Am erican
Bankers A ssociation’s Stonier G rad­
uate School of Banking. His thesis
was titled “ Development of Elec­
tronic Funds Transfer S ystem s—An
Illinois P erspective.”
Am ong the 344 bankers graduating
from the school this summ er, only 28
received this high honor for their
theses. Those papers will be added to
the perm anent collections of the ABA
library; R utgers S tate U niversity
Library, New Brunswick, N .J ., and
the H arvard U niversity G raduate
School of Business Library, Cam ­
bridge, M ass.

Joins Bank in Huntley
Paul H . Reed has joined the S tate
B ank of H untley as vice president
and cashier, Presdent W ayne M il­
ler has announ­
ced. M r. Reed
will work prim ar­
ily in operations
and the legal profession will be and lending. He
interested in learning the effect of this has 18 years of
new law on the banking industry. banking experi­
Facuity for our seminars will include ence, the last 10
some of the best experts who have years as chief
worked w ith structuring and acquir­ executive officer
ing m ulti-bank holding companies of the B ank of N orth Aurora.
throughout the midwest.
“ Those Illinois bankers who wish
John G. Heimann Joins
to acquire banks, who wish to be
acquired and who wish to rem ain Investment Banking Firm
independent are encouraged to
John G. Heim ann, 52, former U .S.
a tte n d ,” said W att.
Comptroller of the Currency, has
D ates and locations are: A ugust joined W arburg Paribas Becker-A.G
26, M arriott O ’H are, Chicago area; Becker, the international investm ent
Septem ber 2, Buckley’s Ram ada Inn, banking firm, as a m anaging director
Fairview H eights; Septem ber 3, and chairm an of the firm ’s executive
Buckley’s Ram ada Inn, Fairview comm ittee. In addition, he has been
H eights; Septem ber 9, M arriott appointed to the board of directors of
Oakbrook, Chicago area; Septem ber S.G . W arburg & Co. L td ., the
10, M arriott Oakbrook, Chicago London based m erchant bank, and to
area; Septem ber 15, Holiday Inn, the advisory comm ittee of the board
Bloomington; Septem ber 21, H ilton, of Paribas International, each of
Springfield; Septem ber 23, M arriott which m aintains a 20% interest in the
O’Hare, Chicago area.

^ NEW COMPUTER sorting equipment recently installed in a controlled clim ate room in the
^ First National Bank of Skokie main banking offices in downtown Skokie, is shown to
members of the banks’ board of directors by management personnel of the bank. The new
sorting equipment speeds up the processing tim e by as much as 24 hours.

AMBI Schedules Workshops





A new law which allows m ulti-bank
holding companies in this state will
be the subject of a series of workshops
throughout Illinois in A ugust and
Septem ber.
The eight, one-day m ulti-bank
holding company seminars will be
sponsored by the Association for
M odem B anking in Illinois. A nother
provision of th a t law, perm itting a
third lim ited service facility, will also
be discussed.
A M BI was the only m ajor banking
association in the state to support
and work for passage of SB 578,
which creates m ulti-bank holding
companies and one additional lim ited
service facility. Governor Jam es R.
Thom pson signed the m easure into
law Ju ly 3, 1981. I t will become
effective Jan u ary 1, 1982.
Jam es B. W att, president of
A M B I, said, “ Shareholders, boards
of directors, chief executive officers
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


Illinois News

as assistan t vice president, and was ^
promoted to vice president in 1979.
He has a BA degree from N orthern
Illinois U niversity.
M r. Ross joined Chicago City in
1969 as a teller trainee and was £
promoted to credit m anager in 1980.
* * *


Madeline Gallagher, William Grossman, Maureen Rafa, Janice Cannestra and Guy Mandler. O ther officer
advancem ents include Robyn Matsil,
personnel, and Linda Sistowic,
investm ent.
* * *

EA RS Bank & T ru st Co. has an­
nounced the following prom o­
tions, according
to Donald Thorn­
burg, chairm an
and chief execu­
tive officer:
To second vice
president: Jos­
eph Zawacki, in­
vestm ents.
assistan t
president: Diana
Efstathiou, perJ- ZAWACKI


Robert A. Klamp has been
promoted to cashier of GladstoneNorwood T rust and Savings Bank,
President Kenneth H. Fox has
announced. M r. Klamp has been w ith
the bank since its inception five years
ago, and was prom oted from
assistan t vice president.
* * *
A t M id-City N ational Bank,
Marvin Kolvitz has been appointed
vice president and Ronald A.
Stewart assistan t vice president,
President Kenneth A. Skopec has
M r. Kolvitz joined the bank three
years ago after 28 years of banking
m anagem ent experience. He was
named m anager of the Executive
Banking Center in 1980.
Mr. Stew art has been with
M id-City for 15 years. He was
prom oted from assistan t cashier.
* * *

O’H are International B ank has
become the first in the m etropolitan £
area to be directly linked to the
F ederal Reserve Communications
System and its on-line term inal
network for the purpose of speeding
wire funds transfers. Through the £
directions of depositers, O ’H are
Bank transm its m essages on the
FRCS which are transm itted imme­
diately to the Federal Reserve D ata
The comm unication is then elec­
tronically switched and printed on a
term inal a t the bank receiving the
funds. This entire transaction takes
only m inutes. The FRCS has 4)
increased the m ovem ent of wired
funds through O’H are Bank to $30
million per day.
* * *
In a ceremony attended by more
th an 100 executives and political
figures, Seaway N ational Bank
recently celebrated the opening of its
$1 million, 19,000 square foot
addition to its main office structure.

Gavin Weir, chairm an, Chicago
City B ank & T rust Co., has
announced the prom otions of Dallas
H. Himm to senior vice president,
director and personnel, m arketing
and security officer, and Richard A.
Ross to commercial loan officer.
M r. Himm joined the bank in 1975



Malcolm M.
commercial banking; Jennifer Merlin
and William Siska, correspondent
banking; Roger Wittmer, finance and
Jane Zilch, tru st.
Prom oted to officer sta tu s in the
tru s t division: Laurence Badesch,

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


CUTTING the traditional ribbon are, from
left: Walter E. Grady, pres., Ernest T.
Collins, chm n., and from Commonwealth #
Edison Co., Al Westbrooks, Jr. and
Cleatrus T. Henderson.



The ground floor of the new
addition is leased to Commonwealth
Edison as a bill paying and custom er 0
service center.



These are uncertain
times. We have been
in a serious recession,
but we’re not sure
how deep it has been
or how fast we are
climbing out. Money
rates reached
unheard of heights,
but we don’t know
how much they will
drop or if they will drop
back to normal. Some of our
large, basic industries are in
trouble. Our economic stability is
dependent on a steady flow of
petroleum imports which may or
may not prove dependable.
All of this uncertainty makes
business lending very difficult.

However, SLT can
eliminate some of the
uncertainty that lenders
face by guaranteeing
your customers’ inventory
as pledged collateral.
For over 50 years, we
have worked with
s and commercial
lenders to collateralize
loans and make lending
safer and more profitable.
Give us a call; we can eliminate
uncertainty from your
loan portfolio.

P 0. Box 242. St Louis. Mo. 63166 • 3 1 4 /2 4 1 9 7 5 0 • Offices in Major Cities
Federal Reserve Bank of St. Louis




N orthw estern Banker, S eptem ber, 1981

M r. Welle will preside over the ^
dinner program . The after d in n e rW
speaker for the Septem ber 15,16 and
17 m eetings will be Ross H ersey, who
will speak on “ Excellence and
Enthusiasm in the ’80s. ’’ Speaking at £
the Septem ber 21, 22, 23 and 24
m eetings will be Newt Hiesher,
whose speech is titled
“ The
Contagious C ure.’’

Four Promoted in Rochester •

Recommends Officers for M BA Posts
H E M IN N ESO TA Bankers A s­
sociation nom inating comm ittee
m et recently and has recommended

N orthw estern N ational Bank of
Rochester has prom oted Mario
A nderson to vice president-real
estate and Stephen Coleman to v ic e ^
president-com m ercial real estate.
Ms. Anderson has served in various
capacities since joining the bank in
1952. Mr. Coleman joined N orthw est
Bancorporation in 1975 and trans- £
ferred to Rochester in 1980.
Elected new officers were Karl
Aaro to assistan t vice presidentfinancial services and Jill W irth to
real estate lending officer. M r. Aaro if)
is an attorney and joined the bank
this spring. Ms. W irth has been with
the bank since 1976.

for MBA second vice president.
Jam es R. Jo rsta d , chairm an,
Citizens S tate Bank, H ay field, is
John P. Ingebrand, H erbert A. recommended for MBA treasurer to
Lund, Galen T. P ate and Jam es R. succeed Donald A. Sirek, president,
Jo rsta d for endorsem ent for the top S tate Bank of New Prague.
The nom inating com m ittee in­
elected officers in the association for
1982-83, according to M orris A nder­ cludes the nine MBA district
son, F irst N ational Bank, Rushford, presidents. The recom mendations
chairm an of the 1981 nom inating will be presented at the MBA district
committee. Recommendations will be m eetings and elections will take place
acted upon a t each of the nine MBA at the June 1982 M innesota Bankers
Association annual convention to be
district m eetings in Septem ber.
held in St. Paul.
A special session titled “ Regula­
tion Z—the T ruth in Lending Reform
A c t’’ will be held for aproxim ately
three hours at each of the district
m eetings. Leading the program will
be John Jackson, MBA general
council; Michael H arper, attorney
with Faegre and Benson of M innea­
polis, and either Sheldon Azine or
John Schrank, both w ith the Federal
Reserve Bank of M inneapolis.
Following will be the annual
district business m eeting, which will
consist of the election of district
officers and directors; election of an
MBA board mem ber from districts 7,
8, and 9, and the endorsem ent of
MBA state officers.
The following portion of the
program , “ MBA in A ction—For All
M innesota B anks’’ will feature Mr.
Ingebrand and Trum an Jeffers,
John P. Ingebrand, president, executive vice president of M BA.
Kanabec S tate Bank, M ora, is the
proposed candidate for MBA presi­
dent for 1982-83 to succeed R obert J .
Welle, chairm an, F irst N ational
D ate
D istrict
Bank of Bemidji. M r. Ingebrand is
currently serving as first vice
A irport, Bloom ington
president of the association.
Septem ber 15 Sunwood Inn, St. Cloud
H erbert A. Lund, president,
Septem ber 16 B est W estern Kahler, Hibbing
Security S tate Bank, A lbert Lea, is
Septem ber 17 B est W estern, Crookston
proposed for MBA first vice
Septem ber 22 B est W estern, M arshall
president for 1982-83 to succeed Mr.
Septem ber 23 Orchid Inn, Sleepy Eye
Septem ber 24 Holiday Inn Downtown,
Galen T. Pate, president, Signal
Hills S tate Bank, W est St. Paul, is
the recommended 1982-83 candidate

1981 Minnesota District Meetings

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



Business relationships. They’re the core of
banking. Perhaps in no other area of banking
are they as vital as In agricultural financing.
And perhaps in no other area of banking are
they put to the test as often.
As a banker in a rural community, you
sit at the center of a number of growing
business relationships. Your custom ers—
farmers, ranchers, and agri-businessmen,—
are dependent on your insight and
resources to help them through present and
future opportunities or challenges. Their
business depends on yours, and yours on
But, as a partner in a correspondent
banking relationship you may not find
yourself in as mutually cooperative a
situation. Although your ag business may
rely heavily on the help of your regional
bank, the reverse may not seem to hold true.
And If your regional bank no longer meets
that growing need for help, it’s time to move.
But whether you’re looking for a new
correspondent relationship or merely taking
a critical look at your existing relationship,
there are certain criteria banks can and do
use to evaluate a correspondent bank.

Of course the regional bank must have the
financial resources to meet your ag
financing needs. The bank must have the
capacity that can give you the flexibility to
plan for today and tomorrow.
And large dollar lending limits are not
enough. Capability should also be measured
in terms of human resources— professional
skills and expertise.
The bank’s size Is important, because it
certainly affects not only the amount of ag
loans that can be funded, but also the
number of ways in which those loans can be
funded. A “ bankers acceptance,” for
example, Is one such means of funding.

Solid banking relationships ca n ’t be
transient. Bankers must share the mutual
trust and understanding necessary for long­
term growth.
Unfortunately, many financial institutions
and associations get into the ag lending
market without a long-run comm itm ent to
that market. They “ dabble” while times are
good, and somehow disappear when times
are troubled.
Dependability isn’t easily discerned. It’s
a quality proven over time and based on a
bank’s reputation, the risks it’s willing to take,
and its availability when you need help.

For one reason or another, some
correspondent financial Institutions and
associations may try to “ run” a loan. This
may confuse customers and make local
banks less sensititive to their needs. Even
worse, it indicates poor trust in both the
borrower’s and the local lender’s judgement.
A good regional bank, on the other
hand, listens to the need to stay flexible
enough to let local banks adapt to changing

Using financial tools in new and different
ways can be the lifeblood of a good
correspondent banking relationship. And
because a local bank can never predict the
changing needs of customers years in
advance, it pays to develop a relationship
with a regional bank which not only has
financial tools, but also the expertise, desire,
and comm itm ent to continuously work with
And in a world where interest rates can
rise and fall In a matter of days, the best
regional bank is the one with the talent and
desire to innovate and react thoughtfully and

First, a country bank must be dedicated to its
own business—ag financing. To do this
effectively its regional bank must recognize
the needs of the local bank’s own
customers, and offer help with needed
services. Services like regional agricultural
econom ic advice, estate planning, trust
services, or speedy collection of large
deposits. Not all banks can readily offer
Secondly, a regional bank must be
dedicated to the country bank’s welfare in its
ag business market. Correspondent bankers
must be willing to join local bankers out in
the field, to become acquainted with
customers and their problems first-hand,

and, if necessary, to help educate them in
the growing complexities of ag finance. For
example, the process of hedging as a
market tool, and what it means for bankers
and borrowers alike.

Look for an expert.
Obviously, this isn’t a complete laundry list of
criteria, and it’s not really meant to be. What
it is designed to do, however, is to give you a
solid starting point for a realistic evaluation
of your correspondent relationship.
At Northwestern National Bank of
Minneapolis, we know how important an ag
banking correspondent relationship is to you,
and how important your selection of your
regional bank can be to your success. And
of course we like ag loan assets and
recognize the tremendous im portance of
agriculture In this region.
That’s why w e’re so deeply involved in
that area. From top management on down,
w e’ve made a sincere commitment to
servicing the ag needs of local banks and
their customers.
And we can offer local banks the types
of overlines and related banking products
they need to keep their customers growing.
Our commitment, coupled with our
flexibility, our expertise, and our size, has
helped our bank grow rapidly over the past
four years, to now rank 30th in size nationally
in ag loan volume.
When you’re looking for an ag partner,
ask the experts. Ask us. We’ll help you serve
the needs of your most Important
custom ers—the farmers, ranchers, and agri­
businesses In your community. We’re on
your side.

® N orthw estern
M National Ba n k
W Of Minneapolis
Telephone (612) 372-8200
Federal Reserve Bank of St. Louis

n il


Twin Cities

T A FFIN G of three key positions
in the bond group of N orthw est­
Bank of M innea­
polis has been
RobertC . Brown,
senior vice presi­
dent of the bank.
John S. McCune
was elected vice
m anager of sales;
W. Gerald JurJ-S- McCUNE
genson, vice president, has been
named head of the fund m anagem ent
division, and Jennifer A. Freem an,
assistan t vice president, succeeds
M r. Jurgenson as m anager of the
asset liability m anagem ent division.
M r. McCune has been vice
president and m anager of invest­
m ents for the U .S. N ational B ank of
Omaha. He had been with the
N ebraska bank since 1968. Mr.
Jurgenson joined N orthw estern N a­
tional Bank of M inneapolis in 1977,
moved to N orthw est Bancorporation
in 1978 and back to N orthw estern in
1979. M s. Freem an joined N o rth ­
w estern in M ay after serving with the
treasury staff of Honeywell and F irst
Chicago Bank.
* * *


William J . W allman was prom oted
to senior vice president and tru st
officer and Fred
P. M ann was
prom oted to vice
president, accor­
ding to H arry C.
dent and chief
executive officer
of M idland N a­
tional B ank of
M inneapolis.
M r. W allman
joined M idland in 1957. He was
elected tru s t officer in 1963. He
advanced to vice president and tru s t
officer in 1970.
N orthw
Banker, Septem ber,
for estern
Federal Reserve Bank of St. Louis


He is a graduate of the U niversity
of W isconsin-M adison w ith a BA
degree in economics and finance and a
JD degree.
Mr. M ann joined M idland in 1978
as assistan t vice president in
commercial lending. His career
background includes service in the
F irst S tate Bank of New B righton,
M inn.; Lloyd’s Bank in Los Angeles,
Calif.; and as branch m anager at
Household Finance Corporation in
Chicago, 111.
Mr. M ann received a degree in
psychology from El Camino College,
M anhattan Beach, Calif, and a BA
degree in business adm inistration
from the U niversity of California,
S anta B arbara.
* * *
F irst Bank M inneapolis has
announced the following promotions:
From assistan t vice president to
vice president: Clark H. Sweet,
financial counseling, and Douglas G.
H aines and Lee E . Johnson, personal
tru st.
From officer positions to assistan t
vice president: Jam es G. Senger,
foreign exchange; M artin F. Cooney,
m idwest corporate banking
K athryn B. Brewer, special loans;
Ralph C. H augen, tru s t accounting;
W ayne H. Ripley, tru s t system s;
Cheryl E . Keindl, commercial audit,
and Beverly A. A ntonich, tru s t
Prom oted to officer status: Evelyn
H. Roden, Fred S. Johnson and
Blanche G. W hite, E D P operations
and program m ing; K athleen W.
Flanagan, financial counseling; B ar­
bara B. Engen, IBD operations;
M argaret M. Bannon, m idwest
corporate banking I; Melvin R.
Holm, commercial audit; M arilyn A.
Grochala, m etropolitan corporate
banking; Penny J . Thom pson and
B arbara A. Knowles, personal
banking center; K enneth P. Swanson
and Kay P. Robinson, corporate

tru st; Lorraine Charboneau, advi­
sory and m anagem ent agency; C.
M atthew Olson, portfolio manage-(fr
ment; Janice S. Belbeck, governm ent
trading, and Nancy F. Shockley,
deposit operations.
Jam es D. Sherard has rejoined










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Contact John Olson, Lee Mork, Robert Olson or
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Decide on a Lease Purchase Contract with a
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the financing options that put it to work.
Contact Dave Michael in Minneapolis at
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(515) 245-3392, Chris Hoss in Fargo at
(701) 293-8136, or Jim Fetzerin Billings at
(406) 657-3581.

Financial corporation
An Affiliate of Northwest Bancorporation

Federal Reserve Bank of St. Louis

Affiliated with Northwest Bancorporation



N orthw estern Banker, S eptem ber, 1981


Minnesota News

carpet and furnishings on the main H u art to international banking
floor, a lounge area for mem bers of officer, and Kevin E. Sevcik and®
the Time of Your Life Club, a new Peter M. B rad t to commercial
conference room and lounge area for banking officers. Daniel F. W alen has
joined the bond division as an
investm ent officer.
* * *
P atrick J . Donovan has been
elected vice president of N orthw est­
Bank of St. Paul,
according to L ar­
ry D. Buegler,
chief executive
officer and chair­
Mr. Donovan
recently joined
N orthw estern as
m anager of the
b ank’s
banking division, Form erly he was
m anager of the business owners
division a t F irst National B ank of
Minneapolis. He is a graduate of the
U niversity of M innesota.
* * *



F irst B ank as a vice president-m etro­
politan banking. M r. Sherard was
with the bank from 1970 to 1977. He
ws m ost recently w ith the M etropoli­
tan Economic Development A ssocia­
tion, and has an MBA from Indiana
U niversity.
Joining the bank in officer
positions: Nancy J . Johnson, cash
m anagem ent, banking group ser­
vices; D ebra J . Gackle, tru s t
investm ent, personal tru s t portfolio
m anagem ent; K ate I. G ray, retail
C hristine S. Hefner, retail banking,
executive banking, and William J.
Sw anstrom , hum an resources, com­
* * *
W estern S tate Bank has finalized
plans for m ajor remodeling of its
building a t 663 U niversity Avenue in
St. Paul. Total cost of the project is
estim ated at $400,000 w ith comple­
tion scheduled for mid-December
The remodeling will include a new
stairw ay for public access to the lower
level and complete remodeling of the
lower level for the bookkeeping, proof
and reconciling departm ents. The
remodeling will also include new
N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


N orthw est Bancorporation has
elected John P. Sam pson vice
president, eastern division-banking
business group and L arry H. H ansen
vice president, w estern division­
banking business group.




Ms. H u art joined the bank in 1976
as a specialty teller, and has a BA in ^
economics from Colby College hi
W aterville, Maine. Mr. Sevcik joined
American N ational in 1979 as a credit
analyst, and has a BA in economics
from St. Olaf College.
M r. B radt joined the bank in 1978
as a credit analyst, and graduated
from St. Thomas College in political
science and business adm inistration.
Mr. W alen has 14 years of banking | |
experience, and received his degree
from M oorhead S tate U niversity.
* * *


M r. Sam pson joined Banco in 1975
and m ost recently served as assistan t
vice president, eastern division­
banking business group. He has a BS
degree from N orthern S tate College,
Aberdeen, S.D . and is a graduate of
the Stonier G raduate School of
Banking, R utgers U niversity, New
Brunswick, N .J.
Mr. H ansen joined the U nited
S tates N ational B ank of Om aha in
1962 and m ost recently served as vice
president and m anager-correspon­
dent bank division. He holds a
business degree from N orth Park
College, Chicago.
* * *

J . Robert Stassen, president of a
West St. Paul S tate Bank, was
recently appoin­
ted by Governor
A lbert H. Quie to
the M etropolitan
A irports
Stassen was a
from 1972 to
1976, and has a
BA degree from
the U niversity of
M innesota. He was president of
N orth Central Life Insurance Co. in | |
St. Paul before joining W est St. Paul
S tate Bank.
* * *

Am erican N ational B ank & T rust
Co. in St. Paul has made the
The Class of 1950 Award from ^
following prom otions: K atharine A. D artm outh College was


Michael Mishou, Assistant Vice President, Wisconsin, Michigan-Upper Peninsula, Iowa (612) 291-5573

“ Part of my job is to give you ideas
that make you think twice.”
“ Are you using lock box accounts to reduce
float? Are you minimizing the float in your
correspondent account? How much could you
save by a cash management reporting system.
“ Raising questions like these is part of my
job. The other part is providing the answers.
My Correspondents look to me for new ideas
backed by concrete facts. Facts that will make
you think twice.
“ To be the best possible resource, I’m
constantly searching for new approaches to
problems . . . asking questions of my colleagues
and customers . . . getting out into the field.
“ When complex questions arise, I can call
upon the full resources of First Bank Saint Paul
to answer them.

“ As a result, our Correspondents know
they can rely on us for the service they need to
compete in today’s fast-changing banking
“ When they need a second opinion, they
think of the First.”

First Bank
Saint Paul
Correspondent Bank Division

We do our job.
You get the credit.
The First National Bank of Saint Paul • Member FDIC
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981

M inn esota N ew s
posthum ously to Richard H. Vaugh­ certificates. A $5000 minimum
an, former president and chief deposit is required.
executive officer of N orthw est
Bancorporation, for his contributions
First Bk. Merchants Breaks
to society. Mr. V aughan’s daughter
Ground in North St. Paul
Carol received the award on behalf of
the family during the class’ 30th
reunion this summ er.
M r. Vaughan joined Banco in 1951
following graduation from D a rt­
m outh’s Amos Tuck School of
Business A dm inistration. He was
elected Banco president in 1971 and
became its chief executive officer in
* * *
American N ational Bank and
T rust Company of St. Paul recently
announced th a t it will offer floating
interest rates on four-year savings
certificates beginning A ugust 1st. It
is one of the first banks in the nation
to offer a floating rate of return on
long-term deposits.
The new deposit plan is a result of
recent changes in U .S. banking
regulations by the Depository
In stitutions Deregulation Committee
which eliminated rate ceiling on
deposits of four years or more.
The interest rate on the American
Four-Year Money M arket Certificate
will be one-fourth of one percent
higher than the U .S. Treasury index
for 30-month Treasury notes. This
interest rate will change every two
weeks in response to fluctuations in
the index. However, American
National Bank guarantees a m ini­
mum return of ten percent on the

GROUNDBREAKING ceremonies were held
recently for First Bank Merchants’ new
North St. Paul bankat2401 North McKnight
Road and Highway 36. Participants were,
from left, Bob Gatti, city mgr. of North St.
Paul; Shirley Johnson, asst. v.p. and mgr.
of the new bank; Dave Waddington, pres.,
First Bk. Merchants; North St. Paul Mayor
Bill Sandberg, and Doug Paquay of Gene
Hickey Assoc., architects for the new
building. Completion is hoped for late fall.

N orthw estern N ational B ank of
M inneapolis has established a
reciprocal correspondent bank rela­
tionship with the B ank of China in
seven Chinese cities, E. Peter
Gillette, Jr., N orthw estern’s presi-

C o s t o f d e re g u la tio n . . .
(Continued from page 42)
3. In country banks, this rate m ay be several points
below the quoted “ prim e” of the money center
bank because “ core deposits” make up a larger
portion of the “ liability” side of the country b ank’s
ledger th an in money center banks.
R ate deregulation does have its cost, however. In the
short run, banks have absorbed some of this cost, b u t as
rapidly as they can adjust, they are passing this cost and
the risk of this changing cost on to others.
The second “ im plication” of banking deregulation,
then, is the im pact it has on the borrower and on the
production side of the farm economy.
Higher and fluctuating interest rates are one more
element of risk added to all of the others in agricultural
production. Variable interest rates become an unknown
cost where, in the past, interest had been a relatively
known cost. H igh rates become a m ajor cost item , where
in the past they were a minor item.
Of even greater consequence, this new elem ent of cost
N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


dent and chief executive officer, has
The new agreem ent will facilitate
trade between China and businesses
in the upper m idwest, M r. Gillette
said. He and officials of the b an k ’s
international banking group went to 41
Beijing a t the invitation of the Bank
of China.

First National— Duluth To
Offer “Parents’ Loans”
Parents pressed to contribute
toward the cost of a son or d aughter’s
college education may now obtain
financial help through a new loan
program for parents.
F irst N ational Bank of D uluth has
completed the first “ p aren ts’ loan” in
M innesota under the new program
and is accepting applications now for
the 1981-82 school year.
Peggy Scandin, loan officer, said
parents of undergraduate, dependent
college students who need financial
help for education m ay now apply for
loans guaranteed by the Higher
Education A ssistance Foundation,
St. Paul. Such p aren ts’ loans do not
preclude the student from application
for individual student loans.
P arents who can dem onstrate need
for financial assistance to the
undergraduate student who is
dependent (identified as a dependent
on income tax forms) may obtain up
to $3,000 per academic year to a
maximum of $15,000. The loan m ust
be repaid within 10 years; m onthly
paym ents of a t least $30 begin within
60 days after the loan is received.

and risk is not shared evenly by the production sector of
the farm economy. The less well established and more
highly leveraged farm er is a t a disadvantage. The
operator with fixed low cost funds has a competitive
advantage now and for the life of his loans. The farm
operator with funds to finance his own operation has the
best of all worlds. The return on his own funds used in
the farm operation may well exceed the net return in
operating the farm. The disparity of net income flow will
There is a new cost and new risk in the n ation’s farm
economy th a t comes with banking deregulation. Banks
are passing their risk on to the borrower in the short run.
In the long run, this new risk and cost will im pact the
borrower and the problem m ay then return back to the
banker in “ asset q u ality .”
Fed float prices also will have an effect. The m arket
rate of interest will be assessed against item s in float,
which will increase the cost of money. B ut, it also will
accelerate the use of new electronic equipm ent in small
banks and th a t will change the ways we handle money by
helping to reduce costs and serve farm custom ers better.
W ho will bear the cost of bank deregulation in the farm
economy? Only tim e will tell.








hile you are re-evaluating costs and charges
T for your services, take a hard look at your
money order program. Even small things like money
orders can contribute to profits or increase expenses.
We believe that Travelers Express has some important
reasons for you to switch from your own money order
program to ours:
• Save tellers’ time in issuing.
• Simple reporting and record keeping.
• No cost for money order forms and reporting forms.
And, we control the inventory for you.
• Savings in space and overhead because we store
paid items for you.
• Less backroom work; we do it for you.
• Fast exception item handling.


• Good customer relations—we handle the “nuisance”
problems and do the “look-up” work.
• Balances build because they are not reduced by
daily clearings.
No other organization can process money orders more
efficiently than Travelers Express. That’s because we
are money order specialists handling around 65 million
a year; we have the equipment, the staff, the know-how!
And, you can trust the stability and financial integ­
rity of Travelers Express. As a Greyhound Company
we are part of one of A m erica’s largest corporations
and are backed by substantial resources.
Our financial representatives are nearby. Please
contact your nearest Travelers Express office or
call me at 612 546-6161.

“I urge you to take a good
hard look at the profitability
of your own money orders.”

C.A.E. Anderson, Jr.
Travelers Express Company, Inc.

1. North Central Region 3. Pacific Region



5. Southeast Region

(8 0 0 ) 3 2 8 -5 6 7 8 *

(8 0 0 )8 5 4 -2 4 2 1 *

In Minnesota, call:

California only:

In Georgia, call:

(8 0 0 ) 7 4 2 -5 7 5 0 *

(8 0 0 ) 4 7 2 -2 4 7 2 *

(4 0 4 )3 2 5 -1 3 3 3

2. South Central Region 4. Midwest Region
(8 0 0 ) 5 2 7 -9 2 1 0 *

(8 0 0 )3 2 3 -1 5 1 1 *

(8 0 0 ) 2 4 1 -9 2 5 0 *

6. Northeast Region
(8 0 0 ) 2 5 7 -8 4 1 8 *

In Texas, call:

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In New Jersey, call:

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*Toll free WATS line
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


M inn esota N ew s

Two Promoted in Blaine

Elected EVP in Wayzata

F irst N orthtow n N ational B ank in
Blaine has prom oted Charles MacArth u r to assistan t vice presidentinstalm ent loans and m arketing and
Donovan M cGuire to personal
banking officer.

Steven E . Rykkeli has been elected
executive vice president of the F irst
National Bank of
W ayzata.
The p ast 10
years M r. R yk­
keli has been on
the staff of the
N a­
tional B ank and
T rust Company
of S t. Paul. M ost
recently he has
been a vice presi­
dent in th a t b a n k ’s correspondent
bank departm ent. M r. Rykkeli holds
a degree in business adm inistration
from M ankato S tate U niversity.

Insurance Corporation and the
Federal Reserve B ank of M inneapolis
to proceed w ith the alternate
exam ination program , the aim of
which is to reduce unnecessary
supervision over banks exhibiting no
significant financial problems. Such
banks will be examined in alternate
calendar years by the sta te and the
appropriate federal agency.
M r. P int said th a t over 90 percent
of the 556 sta te banks would
currently qualify under the new
program . The rem aining banks,
which require more th an normal
supervisory attention,
are not
included under the divided examination schedule and will be examined
more frequently under existing

Commissioner Announces
New Examination Policy

Elected to Slayton Board



M r. Mac A rth u r joined F irst Bank
N orthtow n in Jan u ary , 1981 from the
F irst N ational Bank of W aukesha,
Wis. Mr. McGuire has served the
bank as a personal banking
representative since 1979.

Holds Annual Rose Show

A new exam ination policy was
announced recently by M innesota
Commissioner of Banks Michael J .
P int. Under the new policy, m ost
state-chartered banks will be exam ­
ined in alternate years by sta te and
federal authorities, rather th an by
both authorities during the same
The Commissioner said the B ank­
ing Division of the S tate D epartm ent
of Commerce has reached final
agreem ent on a cooperative arrange­
m ent w ith the Federal Deposit






N orthw estern S tate B ank of
Slayton has elected Jerry Moline and
R uth Dawson directors, according to
Palm er “ D uffy” Hoffland, president. 0
Mr. Moline farm s and is a licensed
public accountant, m aintaining an
office in Slayton. M rs. Dawson and
her husband own a variety store in
Also announced was the election of
L ynette Kanne to assistan t insurance
agency m anager of the M urray
County Insurance Agency. She
joined the b a n k ’s insurance agency in (|)
1977 as a secretary.

New Quarters for Long Lake Bank

FIRST AMERICAN National Bank held its
9th Annual Rose Show recently. The event
is co-sponsored by First American, the St.
Cloud Flower and Garden Club and Granite
City Rose Society. The theme of this year’s
show, “ Banking W ith Roses,” was reflected
in the entry categories: Balanced Budget,
Float-a-Loan and others. Anyone is eligible
to enter roses for judging, and prizes
include ribbons, plaques, certificates and
silver plates and bowls. The show was
coordinated by Janet K. Cotton of the
bank’s staff.

Austin Promotions Told
Allyn C. M artinson, president of
N orthw estern S tate B ank of A ustin,
has announced the prom otion of
Jerry Helin to a ssista n t vice
president-instalm ent loans and Rod
L. M eyer to ag loan officer.
M r. Helin joined the bank in 1969
as a teller. M r. M eyer started with
the bank in 1980 as an ag trainee.
N orthw
Banker, Septem ber,
Federal Reserve Bank of St. Louis


ARCHITECT’S drawing of the State Bank of Long Lake’s new building.

TA TE B ank of Long Lake will M inneapolis.
The new building will provide
have new quarters by year-end
according to Rodger Bense, presi­ custom ers a pleasant atm osphere in
addition to more services, including
The facility, nearly 7,000 square eight teller stations and four drive-in
feet, was designed by Dykins banking lanes.
The new building is located in
A ssociates of M inneapolis and is
being constructed by Crawford - downtown Long Lake ju s t off ^
Merz C onstruction Com pany, also of Highway ft 12.





A m o u n ts a n d d e n o m in a tio n s a u to m a tic a lly in d i c a t e d b y
p a te n te d " r e d b o rd e re d w in d o w s ” . A m o u n t s in w in d o w s
a lw a y s in r e g is te r . . . e lim in a te s m is ta k e s . A c c o m m o d a te s
a ll c o in s fro m l c to $1.00.




E s p e c ia lly d e s ig n e d fo r m a c h in e f illin g . . . a re a l tim e -s a v e r.
P acked fla t. In s ta n t p a te n te d " P o p O p e n ” a c tio n w ith fin g e r
tip p re s s u re . D e n o m in a tio n s id e n tifie d b y c o lo r c o d in g . . . 6
d if fe r e n t s ta n d a rd c o lo rs .







B a s ic c o in w ra p p e r in e x tra s tro n g k r a ft s to c k . P rin te d in 6
d if fe r e n t s ta n d a rd c o lo rs to d if f e r e n t i a t e d e n o m in a tio n s .
T r i p le d e s ig n a t io n t h r o u g h c o lo rs , p r i n t i n g a n d le tte rs .
T a p e re d e dg e s.


W ra p s 4 d e n o m in a tio n s in h a lf size p a c k a g e s . A m in ia tu r e o f
th e p o p u la r " A u to m a tic W ra p p e r” . . . 25c in p e n n ie s , $1.00 in
n ic k e ls , $2.50 in d im e s , $5.00 in q u a rte rs .


P a cka ge c o n te n ts c le a rly id e n tifie d on fa c e s a n d e d g e s b y
c o lo r co d e d p a n e ls w ith in v e rte d a nd re v e rs e fig u re s . M a d e
o f e x tra s tro n g s to c k to a s s u re u n b ro k e n d e liv e rie s . O n ly p u re
d e x trin e g u m m in g used.

C o lo r c o d e d fo r q u ic k , e a sy id e n tific a tio n . Red fo r p e n n ie s . . .
b lu e fo r n ic k e ls . . . g re e n fo r d im e s . . . to in d ic a te q u a n tity
a n d d e n o m in a tio n s . . . e lim in a te s m is ta k e s . T a p e re d e dges.


E xtra w id e . . . e x tra s tro n g . D e sig n e d fo r a re a s w h e re h a lv e s
a re w ra p p e d in $20.00 p a cks . . . " red b o rd e re d w in d o w ” fo r
e ase o f id e n tific a tio n . A c c o m m o d a te s $20.00 in d o lla rs , $20.00
in h a lv e s . T a p e re d e dg e s.




E n tire s tra p is c o lo r c o d e d to id e n tify d e n o m in a tio n . P rin te d
a m o u n t a p p e a rs on to p a n d b o tto m o f p a cka g e . E xtra w id e
fo r m a rk in g a nd s ta m p in g . E xtra s tro n g s to c k fo r s a fe d e liv e ry
a n d s to ra g e . P u re d e x trin e g u m m in g .

Id e a l fo r p a c k in g c u rre n c y , d e p o s it tic k e ts , c h e c k s , e tc . . . . d o n o t b re a k
o r d e te rio ra te w ith age. Size 10 x % in c h e s a n d m a d e o f s tro n g b ro w n
K ra ft s to c k w ith g u m m e d e n d fo r ease o f s e a lin g . P acked 1000 to a c a rto n .




Federal Reserve Bank of St. Louis










N orthw estern Banker, S eptem ber, 1981


M innesota N ew s

Morris Bank Opens Detached Facility

New Director in Edina


David A. O rlady, president of F irst
B ank Southdale in Edina, has
announced the election of W alter H.
B runingto the board. M r. Bruning is
vice president of retail m arketing for i()
Control D ata Corporation.

Promoted at Kanabec State
Ellen Regan has been prom oted to
vice president/cashier of the Kanabec W
S tate Bank. She joined the bank in
1953 as a teller, and was prom oted to
cashier in 1977. Ms. Regan is an AIB
course instructor.

Holding Companies Approved
The following applications to
become bank holding companies
through the stated acquisitions have O
J . LaFA V E, J r., president of complete remodeling of the down­ been granted federal approval:
■the Citizens B ank in M orris, has town Citizens Bank. The downtown
• Olivia Bancorporation, Inc. —
announced th a t the first detached bank will feature an enlarged lobby, American State Bank of Olivia;
banking facility in Stevens County provisions for sit-down teller service,
• W alker Ban Co. —F irst National
opened for business recently. The a new 800 square feet addition, Bank of W alker;
first 50 custom ers at the facility on expanded officer facilities, and a new
• W inthrop B ancshares, Inc.
th a t day received gift certificates insurance departm ent on the first —W inthrop State Bank;
redeemable a t the M orris m erchant of floor. The second floor of the
• Crosstown Holding Company,
their choice.
remodeled bank will house an Ham Lake - Crosstown S tate B ank of
Citizens South features include environm entally controlled book­ Ham Lake, Inc.;
three drive-up lanes, a walk-in teller keeping room, a custom er m eeting
• Remer Bancorporation, Inc.
service, a loan office area, a night room to accommodate 75 people, a —Security State Bank of Remer;
depository, and ample parking bank library to hold 600 volum es, and
• Lakeville Financial Services, Inc.
facilities. The vestibule will house a an employe lounge. The new Dewey —F irst Lakeville S tate Bank;
new computerized Diebold autom atic Nelson law office and Citizens R ealty
• Hugo Bancorporation, Inc. ®
teller machine which will provide complete the offices on the second —F irst State Bank of Hugo;
24-hour banking, seven days a week. floor. The second floor is reached by
• Good Thunder B ancshares, Inc.
M r. LaFave indicated th a t the elevator. B oth the newly remodeled —F irst State Bank of Good Thunder;
facility is a full-service bank, able to Citizens B ank downtown and C iti­
• Keewatin Bancorporation, Inc.
provide all of the services of a zens South provide complete access —F irst N ational Bank of Keewatin; ®
conventional bank.
for the handicapped. W ork on the
• Perham
M r. LaFave also announced th a t downtown bank is expected to be —Perham State Bank;
construction is underw ay on the completed in December, 1981.
• Zappco, Inc., S t. Cloud —Zapp
National Bank of St. Cloud;
• Wood Lake Bancorporation ®
St. Cloud Bank Sponsors Ag Awareness Day
—Wood Lake Corporation, which
owns 90% of the State Bank of Wood
The F irst Am erican N ational Bank
of S t. Cloud sponsored an A gricultur­
al Awareness Day recently, featuring
• Southw est Bancorporation, Inc., £
a bus tour of Stearns County
M inneapolis—F irst Am erican S tate
B ank of Brownsdale;
B ank officers hosted area business• Lac Qui Parle BanCorporation,
people on the five hour tour to
Inc., B oyd—S tate Bank of Boyd;
Anderson Farm s near Belgrade, a
• Royalton B ancshares, In c .—
1,500-acre crop, cattle and farrowing
Royalton S tate Bank;
operation; Fiedler’s B u tter Day
• H artm an
Farm s near Sauk Centre, a 240-acre
O kabena—F irst S tate Bank of
dairy farm and Im dieke’s Turkey
Okabena, and
Farm , Inc. near Melrose, a 290-acre PART of the group attending the recent bus
• Kimball Bancshares,
In c .—
farm with H olsteins, turkeys and tour of Central Minnesota farms sponsored S tate B ank of Kimball.
by First American National Bank of St.
extensive crop irrigation.
The Federal Reserve Board denied
The tour was conducted to show Cloud. From left: A.D. Didier, pres., First the application of Buhl Bancorpora­
American; Francis Januschka, Stearns
how agriculture is of prime im por­ County Extension agent, and St. Cloud tion to become a holding company by
tance to the central M innesota and businessmen Don Heigeson, Earl Pleticha acquiring the F irst N ational B ank of 0
and Don Volkmuth.
the national economy.
CITIZENS Bank in M orris’ new detached banking fa cility.


N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



Look for us in
San Francisco

Jim Reagan

Bob Sipple

Bob Jacobson

We look forward to seeing our banker friends at the American
Bankers Association Convention.
We hope to see you there and to talk with you about how Ameri­
can’s full line of correspondent services can benefit your bank.

Am erican National
Bank and tust C o m p an /
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


M innesota N ew s

New Facility Opens in Albert Lea

SECURITY State Bank in Albert Lea’s new 10,500 square foot facility.

S tate Bank in A lbert
Lea has opened a new 10,500
square foot facility, according to
Herb Lund, president. The old
building, built in 1905, has only 2,500
square feet of space. The old building
is now partially a d e n tist’s office and
other rentable space.
The new parking lot has 30 parking
places. The auto-bank was remodeled
by adding a fourth lane and
modernized w ith brick facing which
m atches the main bank.
The them e of the grand opening

was “ Millionaire for a D a y ,” and the
bank gave away interest on one
million dollars for a day to two
people. Short wave radios and
calculators were also given away. The
highlight of the celebration was the
giving away of a calendar depicting
12 historical buildings of A lbert Lea
th a t was reproduced from actual
penned drawings by Ron H unt,
M antorville a rtist.
A V IP p arty was also held for Twin
Cities correspondent banks, contrac­
tors and other dignitaries.

New Glencoe President
Calvin A. Johnson has been elected
president and director of the F irst
National Bank
of Glencoe. Mr.
Johnson was pre­
viously a vice
president of F irst
Bank of M anka­
to, where he has
been associated
since 1971. He
has a degree in
business adm ini­
M ankato S tate U niversity. The
announcem ent was made by Lowell
G. W akefield, chairm an.

Joins Hopkins Bank
Bradford L. Rehor has joined the
N orthw estern N ational Bank W est in
Hopkins as a loan officer.
M r. Rehor was formerly w ith the
S tate Bank and T rust Company,
Nevada, la . He began his banking
career w ith the Gulf coast N ational
Bank, Sarasota, Fla.

Pint Announces Appointment

Commissioner of Banks Michael J .
P int announced the appointm ent of
Paige W inebarger as assistan t
commissioner in the banking divi­
sion. Ms. W inebarger will be
responsible for the supervision and
regulation of banks, tru s t companies,
certificate investm ent companies and
savings banks.
M s. W inebarger assum es this new
position after spending 13 years with
the Federal Reserve System . For the
p ast year she was employed as an
attorney in the m onetary affairs
section of the legal division at the
Board of Governors of the Federal
Reserve System in W ashington, D .C .
Ms. W inebarger graduated from
Longwood College, Farm ville, Va.,
with a BS degree in business
education. She also received a law
EMPIRE State Bank in Cottonwood is now under construction.
degree from the U niversity of
Virginia School of Law in C harlottes­
D R IA N Golberg, president of pleted, will provide complete banking ville, Va.
Em pire S tate Bank, C otton­ service to the com m unity including
wood, has announced th a t MAC extended banking hours a t drive-up, New Waseca Director
Construction Company of M inneapo­ walk-up and future ATM facilities. A
Howard Sahlstrom has been
lis has started construction of the large m eeting room w ith kitchen elected a director of F irst S tate Bank
b an k ’s new quarters in Cottonwood. facilities is located in the lower level. of W aseca, according to Glenn
The new two story facility w ith The rem ainder of the lower level Thompson, president and chairm an.
mezzanine located at M ain and W est opens up to grade tow ard the south M r. Sahlstrom is senior vice
F irst Street was designed by Dykins and will be available for office rental president and chief financial officer of
A ssociates, Inc. of M inneapolis. The space. The mezzanine provides the E .F . Johnson Company, a
16,000 sq. ft. structure is scheduled comfort areas for employes, and W aseca-based company m anufactur­
telecom m unications
com m unity activities during banking ing
for completion in December, 1981.
The building project, when com­ hours and future expansion space.
equipm ent.

Empire State Bank Begins Construction


N orthw
Banker, Septem ber,
Federal Reserve Bank of St. Louis



* Are you working harder
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223Ä- 3m r

Major tests lie ahead — for the Fed, for money
markets and for the economy. New offerings are
flooding the markets and interest rates continue to
How do you keep pace with an uncertain
market? For many banks, the answer is First Bank
Saint Paul. Our Investment Services Group has 36
full-time professionals ready to help you with the
most sophisticated investment tools available.
Our “ Blue List Bond Ticker” makes available by
computer new listings and price changes as they
occur. And the latest money market news is just a
phone call away on our Money Market Hotline.

A Full Service Bank
Federal Reserve Bank of St. Louis


We also have the largest inventory of municipal
bonds in this region, plus a wide variety of
government securities, repurchase agreements,
commercial paper and other money market
investments so we can tailor a program to meet your
specific objectives.
We can execute your transactions rapidly,
provide safe-keeping and give you a monthly
computer report on your portfolio’s performance.
Meet Clayton Johnson
our Assistant Vice
President. Clayton is
responsible for
Southern Minnesota
and Iowa. Give him a
call at (612)291-5664.
He’ll be happy to
answer any questions
you may have.

First Bank S aint Paul
Member First Bank System

Investment Services Group
The First National Bank of Saint Paul
332 Minnesota Street
Saint Paul, Minnesota55101 (612) 291-5659

Member FDIC
N orthw estern Banker, S eptem ber, 1981
Federal Reserve Bank of St. Louis

W e bring experience,
innovation to ag financing.
Meeting the rapidly increasing capital demands
of agriculture is a chief concern not only of our
region’s farmers and ranchers but also the banks
who serve them.
That is why we formed AgCo — to modernize
agricultural lending by tapping new sources of funds
to help you meet the growing needs of your finest
agricultural customers.
Large, Short-term Loans

AgCo specializes in large, short-term agricultural
loans — $250,000 to $4 million — which you can
provide to your customers on a correspondent basis.
These loans are financed through the sale of
insured, A-l rated commercial paper, drawing funds
from our nation's money centers to the agricultural
heartland. This unique financing method offers
a ready source of funds, often at rates lower than that
of competitive lenders.
A Century of Experience

AgCo is one of many financing tools available
from Omaha National. We have been lending to agri­
culture for more than a century and continue to
provide the expertise required to help you and your
customers determine the best financing package.
To discover how AgCo and Omaha National can
help you serve your customers better, contact
your Omaha National representative, or call AgCo
at (402) 348-6546.

AgCo The Om aha National Banl^
Subsidiary of Omaha National Corporation

17th & Farnam — Omaha, Nebraska 68102
Member FDIC
Federal Reserve Bank of St. Louis



Lisbon Bank Adds Cashier
Farm ers S tate Bank of Lisbon has
announced the addition of Jerry
W anken as cashier/ag loan officer.
Mr. W anken was formerly w ith a
M innesota bank and has 11 years of
financial experience.

N o rth D a k o ta

T. A . Roney, p re s ., C a rrin g to n
H. J . A rg u e , exec. d i r . , B ism a rck


Bank of N.D. Elections
H .L. Thorndal, president of the
Bank of N orth D akota,
announced the election of Evelyn
Zelmer to vice
Alyce Starck and
B etty Zeeb to
assistan t
joined the bank
in 1955 in opera­
tions. She was
promoted to a s­
sistan t cashier in



1973 and assistan t vice president in
1977. Ms. Starck joined the bank in
1968 in operations and was prom oted
to assistan t cashier in 1976. Ms. Zeeb
began her career at the bank in 1968
as a posting machine operator. She
was prom oted to assistan t cashier in
1973 and transferred to the loan
departm ent in 1979.

(1981-82) year.
The election m eeting was recently
held a t the M oorhead Country Club.
The following bankers were voted
into office: President-Steve Jaco b ­
son, vice president of F irst National
B ank of M oorhead, M inn.; F irst Vice
President-John Bridgeford, assistan t
vice president, F irst B ank of N orth
D akota, Fargo; Second Vice Presi­
dent-Don H ass, vice president of
Polk County S tate Bank, Crookston,
M inn.;
H ansen, vice president of F irst
N ational Bank of Fargo, and
Im m ediate
P a st President-Jack
Lavin, vice president of Fargo
N ational B ank and T rust Company.
The board of directors members
are: Donald A. Green, vice president
of F irst Bank of N orth D akota,
Fargo; Lew W ilson, vice president of
the B ank
of N orth
D akota,
Bismarck; Don Holen, vice president
of F irst National Bank of W ahpeton,
and S tan Foss, vice president of F irst
N ational Bank and T rust Company,

Capital Stock Increases

The applications by the following
banks to increase capital stock have
been approved: N orthw estern S tate
Bank of Hillsboro, from $450,000 to
$750,000 by stock dividend; Union
S tate Bank of Fargo, from $425,000
to $625,000 by cash subscription, and
RMA Elects New Officers
American S tate B ank & T rust Co. of
The N orth Central Chapter of W illiston,
Robert M orris Associates has elected $1,650,000 by issuing $1,150,000 in
its new slate of officers for the coming preferred stock.

North Dakota Group Meetings



N ortheast

A rt Clare Motel, Devils Lake

N orthw est

Sept. 22

American Legion Club, Tioga

Southw est

Sept. 23

Holiday Inn, Dickinson


Sept. 24

M ilt Young Civic Center, LaMoure


N orthw
Banker, Septem ber,
Federal Reserve Bank of St. Louis


Holding Company Approved
The Federal Reserve B ank of
M inneapolis has approved an appli­
cation by Union Holding Company of
Halliday to become a bank holding
company through the acquisition of
the Union B ank of Halliday.

Lakeside Promotes Three
Lakeside S tate Bank of New Town
has announced the following prom o­
tions, according to President Darold
Petersen: Zinie Peterson to senior
vice president, M arlene Pennington
from cashier to vice president and
D orothy Miller to cashier.
Ms. Peterson has been w ith the
bank 13 years and presently serves as
senior loan officer and personnel
officer. Ms. Pennington joined the
bank in 1963, serving in various
capacities including cashier. Ms.
Miller has been w ith Lakeside for 14
years, serving as head teller and loan

George D. Norton Is Named
Chairman of the BAI
George D. N orton, executive vice
president and cashier of the
Philadelphia N ational Bank, has
been elected chairm an of the board of
Bank A dm inistration In stitu te. The
announcem entwas made by BAI
President Ronald G. Burke following
a m eeting of the In stitu te ’s board of
M r. N orton succeeds N. Berne
H art, president and chairm an of
United Banks of Colorado, Inc.,
Denver, who will continue to serve on
the board’s executive comm ittee in an
advisory capacity.

ABA Strives to Improve
Lives of Disabled Persons
The U nited N ations has declared
1981 as the International Year of the
Disabled Person and in recognition of
the UN project, the American
Bankers Association has become a
comm unity partner w ith the U .S.
Council for IY D P, ABA President
Lee E. G underson has announced.


“The Bank of North Dakota Philosophy”
T o e n c o u ra g e a n d p r o m o te A g r ic u ltu r e
C o m m e rc e , a n d In d u s tr y
in N o r t h D a k o ta


T o p r o v id e th e m o s t e f f ic ie n t a n d e c o n o m ic a l
fin a n c ia l s e rvice s t o th e S ta te ,
its A g e n c ie s , a n d
In s tr u m e n ta litie s

700 Main Street
P.O. Box 1657
North Dakota 58505

T o p r o v id e p ro fe s s io n a l a ssistan ce w h e n e v e r
p o s s ib le a n d w h e re v e r it w ill e n c o u ra g e
a n d p r o m o te th e w e ll b e in g a n d
A d v a n c e m e n t o f N o r th D a k o ta
a n d its c itiz e n s

June 30, 1981


Cash and Due from B a n k s .................... $39,698,895.46
U.S. Government Securities....................
Federal Agencies S ecurities..................
Bankers Acceptances and
Other Investm ents...............................
State and Municipal S e cu ritie s.............
Federal Funds S o ld ................................. 168,095,000.00
FmHA Business &
Industry G u a ra n ty ......................
FmHA Housing G u a ra n ty .............
FHA and Gl
Home Loans.................................
Farm R.E. Loans.............................
R.E. C o n tra cts.................................
Loans to
State In s titu tio n s ........................
Bank Stock L o a n s .........................
SBA Participation L o a n s..............
N.D. Bank Participation
L o a n s............................................
Other L o a n s ....................................

Demand Deposits:
Individuals, Partnerships
and C orporations...................... $ 5,243,390.51
Now Accounts - In d iv id u a ls.......
Now Accounts - P ublic.................
Deposits of B a n k s........................ 27,099,742.94
State and Political
Subdivisions............................... 102,547,286.87
Official Checks, etc.......................


TOTAL LOANS.......................................... 360,640,236.18
Accrued Interest Receivable..................
Bank Building and E quipm ent...............
Unamortized Bond Issue C o sts............
Other Assets..............................................
TOTAL RESOURCES................................ $747,717,582.67

The Bank of North Dakota is owned, operated and
controlled by the State of North Dakota under the
supervision of the Industrial Com m ission.

Time and Savings Deposits:
Individuals, Partnerships
and C orporations......................
State and Political


TOTAL DEPOSITS.................................... 513,319,544.99
Fed. Fds. Purch. & Sec. Sold
under Agreement to Repurchase . . . . 134,825,000.00
Accrued Interest Payable........................
Other L ia b ilitie s........................................
Long Term Debt - Mtg. B o n d s ............... 42,323,000.00
S u rp lu s...............................................
Undivided P rofits...............................
RESERVE & C AP ITA L...........................



Ranked as the 34th largest agricultural lender
nationwide and the tenth largest in the Great Plains
states by the ABA in 1980.




Attorney General

Comm, of Agriculture

H. L. TH O R N D A L
Federal Reserve Bank of St. Louis

N orthw estern Banker, Septem ber, 1981


N orth D ako ta N ew s

In d e p e n d e n t C o m m u n ity
B a n k s o f N o rth D a k o ta
Annual Convention
September 16-17
Holiday Inn, Dickinson


H E IN D E P E N D E N T Com m unity Banks of N orth
D akota will hold its A nnual Convention at the
Holiday Inn in Dickinson Septem ber 16-17. Topics to be
covered at the m eeting will include EEO Compliance,
E xtending A g B ank Services, IB A A and Independent
Banking in the ’80s, Corporation Farm ing and Employe
M anagem ent and Relations. O ther activities will include
a chuckwagon barbeque, dance featuring the Lloyd
Johnson Trio, a rt gallery, fashion show a t the luncheon
and convention banquet. The program follows:


Wednesday, September 16
A.M .

B reak fast—Executive Council and com m ittees
only (R em ington/W inchester Rooms).
R egistration opens (Lobby).
Call to order by ICBND President Ja ck Hoeven,
president, F irst W estern S tate Bank, M inot. All
sessions held in C olt/Springfield Rooms.
Welcome by Dickinson M ayor A rth u r E. B aum ­
Session I —Compliance.


Chairm an-Jim Jorgenson, Executive Vice President, S tate Bank of Kenm are.
“ EEO Compliance’’—Ron Green, attorney: E p ­
stein, Becker, Borsody, and Green, New York,
New York; also faculty member, ABA N a t’l
Compliance School.
Lunch on your own.
Session I —(Continued-Chairman Jorgenson.
“ Compliance: A CEO ’s Perspective’’—Tracy
Kelly, president and chairm an, Am erican National Bank, Bristow, Okla.; also faculty m em ­
ber, ABA N ational Compliance School.
‘‘E xtended Services to A ssociation M em bers’’—
C. Scott W illiams, executive director, Com m un­
ity Bankers A ssociation of Ohio, Columbus.
Coke and coffee break.
R eport-Bank of N orth D akota-H erb Thorndal,
Pres.; Bob Caudel, Senior Vice President.
ICBND Business Session—Jack Hoeven presid­
W atering Hole (Social Hour)-Poolside.
A rt Gallery open for view ing/V isits to exhibits.
Chuckwagon BBQ —Inform al; w estern theme.
Hoedown! Dance to the Lloyd Johnson Trio.





Thursday, September 17
AM .


Continental breakfast-B ankers Only.
R egistration continues.


1981 North Dakota School of Banking Graduates

RECENTLY graduating from the North Dakota Bankers A ssociation’s School of Banking at the University of North Dakota in Grand Forks
are Dan R. Anderson, pers. loan o ff., Walsh County Bk. & Tr. Co., Grafton; James W. DuBois, cash., Union St. Bk., Hazen; Marian K.
Dunn, inst. loan o ff., Amer. St. Bk. & Tr. Co., W illisto n ; Calvin R. Emerson, asst, v.p., First Natl. Bk. in Grafton; Carol M. Heintzman, ®
pers. bkng. o ff., Fargo Natl. Bk. — Tr. Co.; Terry A. Hendrickson, asst, cash., Sec. St. Bk., Dunseith; Tim Hennessy, inst. loan o ff., St.
Bk. ofB urleigh County Tr. Co., Bismarck; Delores James, asst, v.p., Bk. of N.D., Bismarck; Ranae L. Johnson, unit person, First Bk. of
Langdon; Barbara Lee Kittler, cash., Bk. of Turtle Lake; Robert J. Lindseth, asst, cash., Cit. St. Bk. of Ray; Duane Midboe, asst, cash.,
Northwood St. Bk.; Bev Mikkelson, asst, v.p., Garrison St. Bk.; Duane Pesek, asst, cash., First Natl. Bk. of Devils Lake; Evelyn O. Runck,
First Bk. of N.D.-Jamestown; Donna MaeSchaff, asst, cash., Dakota Western Bk., Bowman; Rodger Allen Schock, loan o ff., Farmers St.
Bk., Elgin; Linda Kay Simpson, First Bk. of N.D.-Fargo; Paul H. Skorheim, ag. loan o ff., First Bk. of N.D.-Wahpeton, and Faye Marie ®
Thompson, Fargo Natl. Bk. & Tr. Co.

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis




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( 612 ) 944-3900

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N orthw estern Banker, S eptem ber, 1987


P.M .


Session II —E xtending A g Bank Services
Chairm an-Robert E. Caudel, Senior Vice Presi­
dent, B ank of N orth D akota, Bism arck.
‘‘Commodity M arketing-H edging’’—Chairm an
-Ed Behrendt, broker, Piper, Jaffray & Hopwood, Bismarck; Lonnie Parsons, ag. rep.,
W estern S tate Bank, Devils Lake.
“ Corporation Farm ing” —Greg Larson, a tto r­
ney: W heeler, Wolf, Peterson & McDonald,
Bism arck.
Coke and coffee break.
“ IBA A W ashington Office R eport” —Weldon
B arton, IBAA A griculture/R ural Am erica Rep­
ICBND Business Session—Jack Hoeven pre­
Cocktails (Pre-Luncheon Cash Bar)
Cheese and fruit table (Compliments of IC B N D ).
Luncheon-Duane A nderson, ICBND president­
elect, presiding.
E ntertainm ent-M ens’ and L adies’ Fashion
“ IBAA and Independent Banking in the 80’s ” —
Arch G. M ainous, J r., IBA A treasurer; presi­
dent, Citizens Union N ational Bank & T rust
Company, Lexington, Ky.




Session I II —Personnel M anagem ent
C hairm an-Paul M archell, president, F irst State
Bank, Buxton.
“ Em ploye M anagem ent and R elations” —
Stanley L. Schmuckler, director of executive
resources, The Sun Company, Inc., Rabnor, Pa.
Coke and coffee break.
Session I II —(Continued). Speaker: Stanley L.
Brief Comments-Lee M. Stenehjem , J r., Com­
m issioner of Banking.
ICBND Business Session—Jack Hoeven pre­
B anquet social hour (Poolside).
A rt gallery open to view ing/V isits to exhibits.
Convention B anquet—A lbert A. Wolf, M .C.,
Executive Secretary & General Counsel,
“ W hy a Banker Needs a Sense of H um or” —
Introduction of D istinguished G uests.
Présentations-Installation of Officers.
Friday, Septem ber 18

A .M .

B reakfast-Executive Council and Committees

any other ATM network in the Rocky
M ountain region, including checking
and savings deposits and w ithdraw ­
als, transfers between checking and
savings accounts, cash advances on
credit cards, paym ents to credit card
accounts, and balance inquiries. The
range of banking services will
W. W . G rant, p re s ., Denver
to custom ers around the
D. A . C h ildears, exec, m g r., Denver
clock through the ATM s of all of the
participating financial institutions.
M essrs. H art, Baker and Lee said
the ATM s of their participating
institutions will carry a common
M inibank network identifier in
H R EE Colorado financial in sti­ Denver.
tutions will share an autom ated
They described a switch as a conjunction w ith the already estab ­
teller machine (ATM) netw ork th a t card-activated system th a t electron­ lished individual indentification ap­
will enable their custom ers to initiate ically routes transactions originating pearing on their machines and cards.
U nited B anks, F irst of Denver and
banking transactions a t 126 locations at the ATM of one financial
throughout the state.
institution to the card-issuing Columbia Savings currently have a
U nited Banks of Colorado, Colum­ financial institution. As a result, a combined total of more than 725,000
bia Savings and Loan Association cardholder of one participating firm cardholders, who will initiate approx­
and the F irst National B ank of D en­ may use an ATM of another im ately 11.6 million ATM tran sac­
ver are forming the network, or participant, and the switch will route tions in 1981. Their 126 ATM s are lo­
“ sw itch,” and expect it to be the transaction to the card-issuing cated throughout m etropolitan Den­
operational statew ide by later this institution for authorization. The ver and in more th an two dozen other
authorization is routed back to the Colorado comm unities, including
Details of the shared ATM system , machine being used —all in a span of a B righton, Broomfield, Golden, Boul­
to be called M inibank Switch few seconds—and the transaction is der, Longm ont, Loveland and E stes
Park; F ort Collins, Greeley, LaSalle,
Network, Inc., were announced completed.
Sterling, F ort M organ, B rush, Yuma
jointly by N. Berne H art, chairm an
Initial plans for the ATM network
and W ray; Akron, S trasburg and
and president of U nited Banks of
were revealed earlier this year by
Byers; Colorado Springs and Pueblo;
Colorado, Inc., Bob R. Baker,
U nited B anks and Columbia.
and Steam boat Springs, Carbondale,
chairm an and president of Columbia,
The new M inibank Switch will offer G rand Junction, Delta, M ontrose
and R obert E. Lee, president and
chief executive officer of F irst of more transaction capabilities than and Gunnison.

C olorado

Three Financial Institutions to Share ATMs


N orthw
Banker, Septem ber,
Federal Reserve Bank of St. Louis



Some Correspondent Banks are
notoriously slow movers. Picking the
best one for your money is tough. Sure,
experience counts. So does profession­
alism. But you’re also looking for fast
turnaround. And this is where we really
have the jump on the rest of the pack.
We’re Colorado National Bank. When
you call us we get moving. And not at a
snail’s pace. Getting a quick start and

following it through back to you is our first
priority. But it’s just the beginning of our |7th&Champa st.
complete Correspondent ¡Service. We hcive Member fdic
a team of officers covering your region.
Strong support areas. A reputation for
quality. And personnel knowledgeable
about Commercial Loan Participations.
Call on the faster bank with a proven
track record. Colorado National Bank.
At 893-1862.

We make big ideas happen.
Federal Reserve Bank of St. Louis

N orthw estern Banker, Septem ber, 1981


Colorado N ew s

In d e p e n d e n t B a n k e rs

Friday, Septem ber 18
AM .


o f C o lo ra d o


Annual Convention
September 17-19
The Lodge, Vail
HE IN D E PE N D E N T Bankers of Colorado will hold
its 1981 A nnual M eeting Septem ber 17, 18 and 19 at
The Lodge in Vail. Of special im portance will be
additional inform ation about IB C ’s m arketing program ,
new legislation effecting agri-banking, the introduction
of Colorado’s new Banking Commissioner, election of
officers and directors and entertainm ent by “ K irk”
K irkpatrick from A tlanta, Ga. The convention program
Thursday, Septem ber 17



3:00 p.m . —R egistration open in the lobby.
Business Sessions featuring:
P resident’s Report, E arl F. Lehigh.
IBAA Associate Director, Ken G unther, W ashington Report.
B ank Commissioner of A griculture, M organ
Sm ith.
H osted Cocktail P arty.
Luncheon—Speaker: IBA A President, W.C. #
B ennett.



H osted Cocktail P arty.
A nnual B anquet—S peaker/E ntertainer: “ K irk”
K irkpatrick.
Saturday, Septem ber 19

A.M .

4:00 p.m . —R egistration in the lobby.
Golf tee-off tim e. Tennis.
Singletree Barbeque for anyone wishing to


E xhibitor’s Cocktail P arty.
Dinner on one’s own.


Second business session featuring: Reports,
Elections, Resolutions, COIN PAC, Independent S tate Bank and Senator Bill A rm strong.
H osted Cocktail P arty.
Luncheon—Speaker: Newly-elected president,

A djourn the convention.

Energy Draft Collection Operation Begun
IR ST National B ank of Denver
has established a separate draft
collection operation because of a 150
percent increase in energy-related
business over the p ast 12 m onths.
“ Our volume of work from energy
companies has exploded,” said
Joseph P. McCann, vice president
and m anager of corporate services.
“A year ago, our June energy draft
collections were $5.8 million. -This
June they were $14.7 million and it
looks like the July figure could reach
$16 m illion,” he said.
In association with the b an k ’s
energy departm ent, headed by Senior
Vice President R obert B. M addox, a
special collections staff was desig­
nated to handle only energy company
transactions. Previously, energy
drafts were handled by the same
departm ent th a t processes the b a n k ’s
other collection item s.
Since M ay 1981, F irst of D enver’s
energy collections staff has more than
doubled. A m inicom puter system is
being installed to facilitate virtual
custom service in processing resource
developm ent firm s’ drafts, the
bankers said.
“ I t is a crucial function,” Mr.
McCann said. “ For example, oil and
gas companies m ust make prom pt,
accurate paym ents to lessors, usually
the farm ers and ranchers who lease
N orthw
Banker, Septem ber,
Federal Reserve Bank of St. Louis



the m ineral rights under their land.
I t is well recognized in the industry
th a t leasing agreem ents can carry
millions of dollars of liability if not
handled precisely. The reputation of a
petroleum company and the landm en
ride w ith a b an k ’s handling of the
lease p aym ents.”

Elected EVP in Loveland

Named President at LaSalle


M arian M. Peppier has been named
president of U nited Bank of LaSalle,
it has been announced by K. Edw ard
Saboe, chairm an. M s. Peppler’s
responsibilities will include super- <|l
vising overall bank operations,
including m anagem ent and planning.
Ms. Peppier has 17 years of
banking experience. She has served
as vice president and cashier of the #
LaSalle bank since 1970. Since 1976
she has been secretary to the board.

D ayton E. Johnson has been
elected executive vice president and
cashier of Am erican B ank in
Loveland. He was m ost recently vice Central Bank Changes Told
president of the U nited S tates Bank
Daniel H.
Wiedemeier, vice
in G rand Junction. He graduated president of M ountain Bell and
from the U niversity of N ebraska w ith
general m anager of its operations in
a BS degree in agronom y. Mr.
Colorado, has been elected to the
Johnson will also serve as a director. board of Central B ank of Denver,
according to Donald D. Hoffman,
Common Stock Offered
chairm an.
Also announced were the following
Colorado N ational B ankshares,
Inc. announced it has filed a promotions: Terry D. M artin to
registration statem ent for a public assistan t vice president-m ortgage
offering of 750,000 shares of its loans; Scott Brennan to retirem ent
common stock w ith the Securities planning officer; Eileen K. Dillon to
and Exchange Commission. The custom er service officer, and Joan
Company currently has 4.1 million M ohar to custom er investm ent
shares outstanding. B lyth E astm an officer.
M r. M artin recently joined the
PaineW ebberlnc. andD ainB osw orth
Inc. have been nam ed as m anagers of bank from the F ourth N ational Bank
a nationwide group of underw riters in W ichita, Kan. He holds a degree in
which expects to offer the securities business adm inistration from Wichita S tate U niversity.
in mid A ugust.






B a n k /a g serv ic e s . . .
(Continued from page 43)
® W eather Service can provide very localized weather
inform ation on frost, m oisture conditions, changes in
weather, hum idity and the like, which m ay m ean the
difference between a profit or loss for farm ers.
• Banks will make arrangem ents am ong them selves
and possibly w ith other financial institutions to
organize entities th a t can buy and sell commercial
paper, acceptances, and originate real estate loans th a t
can form the collateral for pass-through certificates.
• Electronic capability will provide access to
inform ation on docum entation and control system s th a t
a bank can utilize in the event its own system is
som ew hat lacking in certain aspects.
• Financial institutions will become financial
£ counselors who will be able to “ p lay ” w ith borrow ers’
balance sheets and the listed assets and liabilities to get
an optim um mix at best term s and prices which can
quickly be related to projected cash flows for reasibility.
• E sta te planning, w ith the continued inflation in real
q estate land value, will become a necessity even w ith
some m odest changes in the inheritance tax provisions.
The m anagem ent of retirem ent funds them selves will
offer opportunities for financial institutions. Farm ers
will increasingly be in b etter cash positions as the farm
• profits improve in the latte r half of the 80’s, and this will
perm it farm ers to make more short-term investm ents.
There is also an increase in concentration of farm land
ownership which offers opportunities for banks to be­
come agents for absentee landlords and get into the
• active m anagem ent farm s.
• The pressure on proprietary agribusiness from
cooperatives and the pressures on operations of both
these types of organizations from the high cost of money
we have seen for the last several years has been resulting
• in a dram atic change in the U .S. food system ,
particularly in some p a rts of the U nited S tates. M any
proprietary companies have come to the conclusion th a t
their best expertise is in m arketing agricultural
products. There has been a strong move by
• processors—to date, principally the food and vegetable
canners and freezers—to sell or divest them selves of
brick and m ortar. The m ajority of sales have been made
to farm ers who provide the raw product th roughput for
these processors.
• Increasing am ounts of intitial m argin and
m aintenance m argin will be needed by growers to hedge
their production or inventory positions in the futures
m arkets. Increasing am ounts of capital will be provided
by m eans of lines of credit as opposed to 90-day
® advances. Since m any farm ers are financially strong,
banks will provide more advised lines of credit; i.e.,
informing a borrower th a t he has X dollars available at
the local bank for his use, predeterm ined by reference to
a balance sheet and prior profit and loss experience.
• There will be more leasing of assets, such as dairy cows
and sows. Banks will collaborate w ith other institutions
to provide some m eans of handling low equity farm ers.
One m eans could be interest-only loans with little
am ortization of principal.
In sum m ary, financial institutions will be offering a
Federal Reserve Bank of St. Louis

greater range of products and services. Different types
of deposits and investm ent instrum ents will proliferate.
Jo in t ventures, corporations w ith m ulti-bank owner­
ship, and cooperative organizations will issue and
service these deposit/investm ent services.
Possibly the use of trade acceptances, banker’s
acceptances, and ineligible acceptances (finance bills)
will be more generally utilized.
There will be a quantum jum p in the num ber of
entities involved in inform ation collection and
dissem ination. The growing use of com puters and the
interactions perm itted by rem ote term inals w ith main
frame hardw are will encourage the b an k ’s and
custom er’s use of the latest inform ation relating to
finance, m arkets, weather, global economic and political
data. Proposals have been made to set up a national
system for m onitoring the U .S. inventory of livestock.
D ata on breeds, ages, ownership, location, transfers of
title, liens, etc., all keyed to a perm anent identification
num ber carried by each anim al will provide not only
better control of collateral for the lender bu t also
m anagem ent inform ation for the livestock operator.
As exports become more of a factor involving more
farm ers and agribusiness, banks will provide the bundle
of services required to initiate and consum m ate a trade
transaction. These services will come on stream quickly
if the Trading Company A ct is legislated into law .

L o n g range fo c u s . . .
(Continued from page 43)
continue to narrow. M arketing system s will be more
centralized, perhaps even to the point of greater
integration of the production - m arketing - processing or
exporting chain.
Deregulation will enhance the ability of the
agricultural banker to meet the needs of this changing
agriculture. I t will give him a greater capacity to enter
the national and international m oney-m arkets to obtain
the funds to meet the increasing needs of his farm
custom ers. Perhaps these funds will come a t a greater
cost and result in higher interest rates for farm credit,
b u t m ost farm ers today understand prime rate and
m any are already accepting money m arket rates from
supplier finance plans.
The new agricultural banker not only will be required
to furnish more credit bu t he will become an expert on
farm ing practices. His bank will supply supporting
services: computerized accounting system s, m arketing
inform ation and plans, investm ent and estate planning
counsel, and new approaches to finance and ownership
through tru sts, corporations, partnerships, joint
ventures, or cooperative approaches with other farm ers.
M ost of all, deregulation will remove the sameness
from banks. I t will enable the individual banker to make
his own bank a more creative, different type of bank - one
more able to m eet the changing needs of his custom ers one better able to m eet these changes than his
banker-com petitor across the street, the Farm Credit
System lender, the governm ent agency, or w hatever
new type of credit provider th a t m ay appear. I t will give
the individual banker the capacity to be, not ju st
another bank, bu t the one m ost geared to serve his
m arket area.
N orthw estern Banker, S eptem ber, 1981


C. Dorman Named President ^

W y o m in g
D. R. W assenburg, p re s ., Big Piney
M. C. M u n d e ll, exec. d i r . , Laram ie

Holding Companies Announce Merger
H E W YOMING N ational Cor­
poration and F irst B ankshares of
W yoming, the third and fourth
largest bank holding companies
respectively in the state, will through
m erger become the second largest
bank holding company in the state as
ranked by size. The W yoming
National Bank of Casper, lead
institution in the W yoming N ational
group, is the s ta te ’s largest bank w ith
to tal resources of $298 million.
They W yoming N ational Corpora­
tion was formed in 1970. A t th a t tim e
the W yoming N ational B ank of
Casper had resources of $65.7 million.
In addition to the Casper bank, the
corporation also includes the W yom ­
ing N ational B ank of Gillette, the
W yoming N ational B ank of E a st
Casper and the W yoming B ank of

Application for the m erger of the
two bank holding companies was first
announced in Septem ber of 1980. The
merger, approved Ju n e 8, has been
under study by the Federal Reserve
Board since th a t time. The combined
companies will have assets of $442
million. The W yom ing National
Corporation will be the surviving
F irst B ankshares of W yoming,
formed in 1979, includes one of the
oldest federally chartered banks in
the s ta te —the F irst N ational Bank
and T ru st Co. of Cheyenne organized
in 1882. O ther F irst B ankshares of
W yoming banks are: the W yoming
S tate B ank of Cheyenne and the F irst
N ational Bank of W heatland. Total
combined assets of the Cheyenne
group exceeds $144 million.

WBA Announces Committee Chairmen
H E W YOMING Bankers A sso­
ciation has announced chairmen
and mem bers of its
com m ittees for the 1981-82 year.
Listed below are the chairmen:
Legislative - Harm on H. W att,
pres., F irst In te rsta te Bank, N .A .,
R iverton.
Agricultural-General - Lloyd S ny­
der, v .p ., American National Bank of
Agricultural-Winter - Tracy J .
Swanson, pres., W estern B ank of
Agricultural-Summer - M .E. Aller­
heiligen, asst, v .p ., Shoshone F irst
National Bank, Cody.
Coordination with State Treasurer
Orin G. Geesey, pres., First
W yoming Bank N .A ., Kemmerer.
WBA Credit Conference - M ark
Kinner, v .p ., F irst In te rsta te Bank
N .A ., Casper.
Trust - Robert J . W yatt, v.p. & tr.

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


off., Bank of Commerce, Sheridan.
WBA Consumer Credit Conference
- Norman K. Brown, inst. loan m gr.,
First In terstate B an k N .A ., Laram ie.
Chief Executive’s Officer’s Confer­
ence - Don H. B abbitt, pres.,
Stockgrowers S tate Bank, W orland.
ABA Bankpac State Chairman Paul P. Jacques, pres., F irst
W yoming Bank N .A ., Cheyenne.
WBA Support of 4-H Clubs Donald C. B rayton, sr. v .p ., B ank of
Commerce, Sheridan.
ABA Task Force on AIB - Donn H .
D orsett, pres., B ank of Casper.
Nominating - George E. Cooke,
dir., American National B ank of
Audit - Beverly L. Sheen, v.p. &
cash., Bank of Laramie.
Resolutions - Jay F. Bordewick,
pres., F irst W yoming Bank, Casper.
WBA Convention Athletic Direc­
tor - John W. Easterbrook, v .p .,
F irst In te rsta te B ank N .A ., Laram ie.

John O stlund, chairm an of the
W yoming N ational Bank of Gillette,
has announced
th a t Charles E.
Dorm an has been
named president.
He succeeds Ted
E rn st who has
O stlund was for­
merly vice presi­
dent and senior
loan officer of the
Perry S tate B ank
in Perry, l a . , and since M arch of 1981
has been vice president of the
W yoming N ational B ank of Casper.
M r. Dorm an began his banking
career w ith the Perry S tate B ank in
1958, serving in nearly every area
including bookkeeping, operations,
personnel, instalm ent and comm er­
cial loans and tru st. He graduated
from Broward Junior College in F ort
Lauderdale, Fla.

Riverton Bank Acquired
W yoming Bancorporation and
American N ational B ank of Riverton
have announced th a t the two bankingorganizations have agreed to a stock
exchange whereby American N ation­
al B ank would become an affiliate of
W yoming Bancorporation. The affil- (|
iation is subject to the acceptance by
the shareholders of American N ation­
al Bank and the approval of the Board
of Governors of the Federal Reserve
System and other regulatory authorities.
As of June 30, 1981, W yoming
B ancorporation’s assets were $598.33
million and assets of American
National B ank of Riverton totalled i)
$44.94 million.
W yoming Bancorporation present­
ly owns 21 full-service banks located
in 19 W yoming comm unities. David
R. Johnson, president, announced D
the approval by the Board of
Governors of the Federal Reserve
System for the activation of the
charter of the F irst W yoming Bank,
N .A .-T orrington.

Sheridan Promotion Told
William H . Ruegam er, president of
the B ank of Commerce in Sheridan, | |
has announced the promotion of
M ary Lee Corley to assistan t cashier.
M rs. Corley joined the staff in 1979 as
an officer trainee. She received her
BA degree in governm ent from the
American U niversity in W ashington.

At United Bank of Denver we have
the best Correspondent Bankers
in the Rockies and Eastern Plains.
And to stay out in front, we’re
always trying to find ways to serve
our customers better.

on the road calling on you. Not sit­
ting behind their desks. The phone
company may not like our style,
but we’re sure our customers will.

In the field of Correspondent
Banking that means seeing our
customers more often. Getting to
know their banks and their needs.
In short, we believe the best
service comes from knowing the
customer best.

SSUnited Bank of Denver

Dorit call us.
We’re callingonyou.

That’s why our nineteen Corre­
spondent Bankers are going to be
spending up to 40% of their time
Federal Reserve Bank of St. Louis

Correspondent Banking Group
1740 Broadway
Denver, Colorado, 80217
National Associatbn,
Member FDIC


to become a bank holding company
through the acquisition of the
Culbertson S tate Bank.

M o n ta n a

Elected Officer in Billings

J. B. Wallander, pres., Froid


J. T. Cadby, exec, v.p., Helena

Kermit O. Hanson Honored
John Reichel, chairm an of the
board of the Pacific Coast Banking
School, has announced the establish­
m ent of a Kermit O. H anson
Professorship of Business A dm inis­
a t the
U niversity
W ashington. M r. H anson, dean of
the G raduate School of Business
A dm inistration a t the U niversity,
has given tim e and leadership to
PCBS for over 25 years.
M r. Hanson retired from the
U niversity in June and as educational
director of PCBS in Septem ber. Mr.
Reichel reports th a t more th an one
half of the fund goal of $500,000 has
been pledged as a m eans of
recognizing the contribution Dean
Hanson has m ade to banking
education and the banking industry.
The PCBS board honored Dean
Hanson a t a reception in Seattle
recently at the U niversity Tower
Hotel. The Advisory Board was at
th a t tim e presented with a contribu­
tion tow ard the chair from the banks
in sponsoring states. Income from the
endowment will be used to enhance
the level of education w ith noted
professors and program s in the
The M ontana Bankers Association
unanim ously adopted a resolution
expressing appreciation for Dr.
H anson’s service to business educa­
tion and PCBS at the association’s
annual convention held this summer
at Big Sky, M ont.

Miles City Changes Told
Richard G. M itchell and Thom as
Scott have been elected to the board
of F irst Citizens B ank in Miles City,
Larry W. Jochim , president, has
announced. M r. M itchell is president
of the Security A b stract and Title
Company and a principal owner of the
W .A. M itchell Co. M r. Scott is
president of Security B ank of
M ontana.
Elected directors em eritus were
Roy H anson and A strid Ross for their
N orthw
Banker, Septem ber,
Federal Reserve Bank of St. Louis



service to the bank since its opening
in 1974.
Also announced was the election of
Brenda Rickett to cashier. She joined
the bank in 1975 as a teller and was
promoted to assistan t cashier in

Advanced in Billings
F irst B ank Billings has elected
Michael J . Hickey assistan t vice
president - com­
mercial loans.
Mr. Hickey join­
ed the bank in
Jan u ary , 1979 as
a commercialloan
officer. Previous­
ly he was associ­
ated w ith F irst
Bank Lewistown
and F irst Bank
M inneapolis. Mr.
Hickey is a graduate of the
U niversity of W isconsin w ith em ­
phasis in political science and

Hamilton Bank Expanding
Citizens S tate B ank of H am ilton
has purchased and subsequently
demolished two buildings adjoining
its main bank to the west. New
building began in July, which will
give the bank an additional 6500
square feet of the ground floor. The
new addition will include a full second
story for future expansion plus
storage room and an enlarged lounge.
W hen the new addition is
completed in a few m onths the staff
will move into the new quarters and
the present quarters will be
remodeled. Completion of the entire
project is expected in M arch, 1982, at
which tim e the bank will occupy the
entire structure.

Jeanne C . Florez has been elected a ||,
real estate loan officer of F irst
N orthw estern N ational B ank of
Billings, Al W eingardner, president,
has announced. M s. Florez attended
E astern M ontana College and joined <||i
the bank in 1979.

Two Elected in Helena
E d Jasm in, president of the i| ) i
N orthw estern B ank of Helena, has
announced the elections of Curtis B .
Briggs to vice president-com m ercial
loans and Thom as E. M cGowan to
instalm ent loan officer.
M r. Briggs is a graduate of
M oorhead S tate College, and was
previously a vice president of the
F irst National B ank of M oorhead,
M inn. M r. McGowan is a graduate of #
M ontana S tate U niversity and
E astern M ontana College and worked
in the instalm ent lending area of the
N orthw estern B ank of Lewistown
before joining the Helena bank.

Thorndal Elected Trustee
William Thorndal, president of
C entral B ank of M ontana in G reat Q>
Falls, has been elected a trustee of the
M ontana
Groups 5A and 5B for the Insurance

MBA Plans Annual
Consumer Loan Conference

The M ontana Bankers A ssocia­
tion’s 1981 Consumer Loan Conference will be held Septem ber 16-18 at
the Outlaw Inn in Kalispell. Topics
will include Regulation Z-Simplification A ct & Model Form s, Problem
Credits, Basics of Consumer Lending, Variable Rate Financing and
UCC Lien Filing and Perfection.
A golf outing will begin a t 1:00
p.rri. Septem ber 16 a t the Buffalo
Hills Golf Course. Also on Wednesday, registration will begin a t 3:00
p.m . and a reception will begin a t 7:30
p.m .
The program will begin at 9:00
a.m . Septem ber 17 w ith a welcome by
Robert L. Reiquam, MBA president.
Holding Company Approved
Discussion groups will cover the
The Federal Reserve B ank of basics of consumer lending T hursday
M inneapolis has approved the afternoon. The m eeting will adjourn
application by Culbertson Ban Corp. at noon Septem ber 18.







comm itm ent
to service is
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strength in

First of Denver is the source you can
depend on
for prompt, decisive answers and
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for the newest, most comprehensive
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The First National Bank of Denver, Correspondent Bank Department, P.O. Box 5808 T.A. Denver, Colorado 80217
(303) 893-2211 Member First National Bancorporation
Federal Reserve Bank of St. Louis

N orthw estern Banker, Septem ber, 1981


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N orthw estern Banker, Septem ber, 1981
Federal Reserve Bank of St. Louis

° * ^ e tc e
V \ ^ S '***

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surround the secretarial area.
The second level board room
overlooks the banking lobby and is
connected to the first floor by a hold
cascading stair structure near the
The entire facility is newly
furnished in desks and millwork of
natural lacquer oak and chairs
covered in earthtone and pastel
fabrics. The brick-lined vault and
polished steel vault door visually
highlight the teller line and check
w riting stands.

Springfield State Sold

CEDAR shingle roof accents the recently-completed Hastings State Bank.

New Hastings State Bank Opens
H E site for the new H astings
S tate B ank was chosen because
of its visibility, its m ulti-vehicular
access, and its viability w ith respect
• to the downtown core of the city.
Located a t the northw est corner of
the site, the main structure is formed
of steeply-pitched cedar shingle
roofs, m irroring the sloped roofs of
® neighboring churches and housing.
Several features notable as one
approaches the building from the
south include a large greenhouse
w aiting area, trellis covered and
® brick-paved walks connecting the

brick and cedar shingle drive up
gazebo to the m ain facility, and the
24-hour teller module on the
southw est.
The main banking lobby is divided
into two areas: banking officers and
secretarial staff on the west; tellers,
vault, and bookkeeping on the east.
The public lobby is formed by a series
of vaulted wood trusses complimen­
ted by a wood ceiling and quarry tile
floor. The custom er w aiting area is
fram ed by the greenhouse w ith views
to the planted trellis arcade. Six
offices w ith large sliding glass doors

The sale of the Springfield S tate
B ank was consum m ated A ugust 3.
The bank and the Springfield
Insurance Agency were purchased by
the Springfield S tate B ank C o., In c .,
a holding company. E. Dean Kugler
and Glenn M. A dair are the principal
Resigning as directors of the bank
were former president Robert D. Iske
and Dewey Callaway, Hazel A.
L atham and Orville Nielsen.
Directors of the bank under the
new ownership are E. Dean Kugler,
Karen J . Kugler, Glenn M. Adair,
Virginia M. A dair, Elden A. Nielsen
and D .G . M cDonald.
B ank officers are:
President-E. Dean Kugler: execu­
tive vice president and cashier-Glen
M. Adair; vice president-M ary Ellen
Nielsen; assistan t vice presidentJohn A. Novotny, and assistan t
cashier-Stephen J . Ingram .

Changes Announced in Utica
Don B. Olson has joined the F irst
N ational Bank of U tica as a loan
officer. M r. Olson was associated
w ith L ancaster County B ank in
W averly the p ast 14 years.
Also announced were the elections
of Elaine H arvey, Aloa Franks and
Joyce Petersen to assistan t cashiers.

Jacob L. Kats Dies
Jacob L. K ats, president and
chairm an of the F irstN ationalB ankof
Lewellen, died recently. He was w ith
the bank for over 45 years and had
over 50 years of banking experience.

New President in Palmer

UNIQUE interior of the new bank includes a wood ceiling.
Federal Reserve Bank of St. Louis

The S tate B ank of Palm er has
prom oted Randy Helgren to presi­
dent, replacing Roy Dinsdale, who
rem ains as chairm an. M r. H elgren
has served as executive vice president
and cashier since Jan u ary , 1980.
N orthw estern Banker, S eptem ber, 1981

Leo A. Daly I I I has been elected to
the board of the U nited S tates
N ational Bank of Omaha, Chairm an
Donald J. Murphy has announced.
M r. Daly is president of Leo A. Daly
Company, an architectural firm in
Also announced were the prom o­
tions of C. Fred Mateer and Robert E .
Billmeyer to vice presidents. Mr.

O m aha
T a recent news conference Don
Murphy, chairm an of U .S.
National Bank, announced th a t the
bank will be the new ten an t of the
first and second floors of the N orth
Tower, C entral Park Plaza. U .S.
N ational will lease 20,000 square feet
of the building. Initially, 8,000
square feet will be sublet and held as
a reserve for future expansion.
The new facility, tentatively
scheduled to open April 1, 1982, will
be a full-service branch. On the main
floor, facilities will include a main
lobby, Personal Banking area, teller
windows, 24-hour A utom atic Teller
Machine a t the main entrance,
commercial banking representatives
and a safe deposit box area.
A spiral staircase will connect the
main floor w ith the second floor. The
second floor is imm ediately adjacent
to the skyway entrance connecting

the two towers. Facilities on the
second floor will include teller area
and an ATM ju st off the 750-car
parking garage.

CHAIRMAN Donald J. Murphy, U.S.
National Bank, and Chip Kabrud, Omaha
division manager of Murdock Management
Co., after lease was signed for new U.S.
National Bank office in Central Park Plaza,
North Tower.





M ateer joined the bank in Jan u ary of
this year as a second vice president.
He was previously vice president of
F irst N ational B ank of Aberdeen,
S.D. M r. M ateer completed under­
graduate work at the U niversity of
Illinois-U rbana.
M r. Billmeyer joined the bank in
1974, and was prom oted to invest­
m ent officer in 1979 and second vice
president in 1980. He has a degree in
business adm inistration from the
U niversity of Iowa and an MBA from
the U niversity of N ebraska-Om aha.
* * *
H. David Neely, president of F irst
N orthw estern T ru st Co. of N ebraska,
has announced
promotions: Lar­
ry T. Eischeid,
Richard H. S id ­
ing and Harry P.
Yosten to second
vice presidents
and Janet M.
Keyser to invest­
m ent
Susan M. Joe
was elected assistan t operations
F irst N orthw estern T ru st Co. was


24th & “L”

Omaha, Nebraska 68107
Member FDIC


N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



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Affiliate of First Midwest Bancorp., Inc.

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


Member F.D.I.C.




incorporated in 1977, consolidating
all N orthw est Bancorporation tru s t
* * *

Omaha N ational Corporation re­
ported net income of $4,105,065 for
the first six m onths of 1981, Board
Chairm an John D. Woods announced
This six-m onth figure compares to
$4,309,051 during the first half of
1980. E arnings per share were $2.63,
compared to $2.68 in 1980.
Omaha N ational Corporation is the (D
holding company for the Omaha
N ational Bank, Realbanc, Inc., and
other financial subsidiaries.
The com parative results are
partially attributable to an elevation #
in 1980 earnings due to non-recurring
interest income stem m ing from the
collection during the first quarter of
1980 of a m ajor loan th a t had been
carried in a nonaccrual sta tu s, Mr. •
Woods said.

Lloyd R. Kitrell Elected
President of Indiana Bank


Security B ank & T rust Co. of
Vincennes, I n d ., has elected Lloyd R.
Kitrell president and chief executive
officer. M r. Kitrell was m ost recently
president and chief executive officer
of City N ational B ank & T rust Co. of
H astings since 1973. In Vincennes he
succeeds Richard J . Bond, who is
retiring from active bank m anage­
m ent to become board chairm an.
M r. Kitrell has a degree in business
adm inistration from the U niversity
of Nebraska-Lincoln. He has served
as a national bank examiner and has
held executive positions w ith the 0
Beatrice N ational B ank & T ru st Co.
and the American N ational B ank of

Trust Company Approved


Paul J . Amen, D irector of Banking
and Finance, approved the Bank of
Bellevue’s application to amend its
charter to allow the transaction of ( |
tru s t company business.

Executive V P

Vice President and

Vice President


WM. (Bill) ABTS
Assistant VP


Assistant V.P



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M e m b e r o f th e S e c u r itie s In v e s to r P r o te c tio n C o r p o r a tio n
Federal Reserve Bank of St. Louis

S ilt

N orthw estern Banker, Septem ber, 1981

years service




Promoted at Scottsbluff
Jack Selzer, president of S co tts­
bluff N ational B ank & T rust C o., has^
announced the promotion of Sharon
Koch to tru s t adm inistrative assis­
tan t. M s. Koch joined the bank three
years ago as tru s t departm ent

4 Key Executives Promoted
To New BAI Posts

L in c o ln
Havelock B ank has announced the
promotion of P atrick Gibbons from
operations officer
to assistan t vice
Gibbons joined
the bank in 1977.
He had previous­
ly been employed
with the F irst
N ational B ank of
Fairbury, where
he worked in
various d ep art­
m ents. M r. Gibbons has a degree in
business adm inistration from the
U niversity of N ebraska at Lincoln.

T. Cummings New President
Of First National-Chadron
Tom Cummings has been named
president of F irst N ational B ank in
Chadron, succeeding Bill J . Blough,
who has moved to Am erican S tate
B ank in McCook. His 23 years in
banking include experience as a state
bank examiner, vice president of the
Lexington S tate B ank and president
of the F irst B ank & T rust Co. of
M r. Cummings joined F irst
N ational seven years ago as executive
vice president. He then took a
position as president a t P latte Valley
Federal Savings and Loan A ssocia­
tion. L ast Jan u ary , M r. Cummings
became semi-retired, b u t will be
coming out of retirem ent to work
full-time as president.

m anaging officer in 1923 and
president in 1940. He retired from the
bank in 1950 b u t remained on its
board until 1980.
In 1951, he was employed by the
Livestock N ational B ank of Sioux
City (now N orthw estern National)
and was a field representative w ith
the correspondent-bank division.
In 1960, he and his son, Richard
J r., purchased the B ank of Elgin,
where he was president and, a t the
tim e of his death, chairm an of the
board. M r. D raper also had been a
real estate broker since 1917.
The N ebraska Bankers Association
in 1967 gave him an award for 50

To better serve its constituency
and to thoroughly address key
industry issues, B ank A dm inistra­
tion In stitu te President and Chief
Executive Officer Ronald G. Burkean
recently announced the creation of
four directorates and prom oted key
executives to head the new ly-estab­
lished posts.
Reporting directly to M r. Burke<||>
Eire: David Van L. Taylor, executive
vice president, banking services;
W ayne B. Lewin, executive vice
president, education; R. Gerald Fox,
executive vice president, communica- #
tions, and Michael G. Glass,
executive vice president, finance and

First State-Scottsbluff Celebrates Opening *
IR ST S tate B ank of Scottsbluff
recently celebrated the opening
of its new building a t 2002 Broadway.
Special event for the grand opening
was an “ In sta -P a y ” game in which
comm unity members inserted a card,
which they received in the mail, into
an In sta-P ay machine which selected
winners. Prizes included a fiberwoven
blanket, a floating lantern flashlight
and an 18 inch plaid travel bag.
Everyone opening a new savings
account of $250 or more during the

grand opening also received one ol
these gifts.
The new building provides 8,700
square feet of operations space on one1®
level. B ank Building and Equipm ent
Corporation of America, of St. Louis,
M o., designed and built the
energy-saving features. A large®
skylight which runs the length of the
bank lobby adds architectural
interest to the contem porary design
of the building.

Richard Draper, Sr. Dies
Richard K. Draper, Sr., chairm an
of the B ank of Elgin, died recently at
age 84.
M r. D raper started his banking
career in 1917 a t the F irst National
B ank of Belden and became its
N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



FIRST State Bank of S cottsbluff recently completed its new facility.


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lllllim illllll FIRST N A T IO N A L LIN C O LN
13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501
Phone: (800) 742-7462
Mem ber, F.D.I.C.
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981

Conventional wisdom:
visit w ith us when
you're in Dos Moines.
When you’re in town for
the Iowa Bankers Associ­
ation Convention this month,
we hope you’ll spend a few
minutes visiting with our
Correspondent Bankers.
We’d welcome the op­
portunity to talk with you
about the many correspond­
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Bankers Trust. And we’ll be
glad to show you how the
strength and resources
of Iowa’s largest locally
owned, independent bank
can help you improve your
bank’s efficiency and profit.
Welcome to Des Moines.
Welcome to Bankers Trust!

/ / /
/ / / /

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


Come Crow
W ith us

Des Moines, Iowa 50304
Member: FDIC/Federal
Reserve System
Iowa’s largest locally
owned, independent bank
Use our toll-free WATS
line: 800-362-1688

Bankers Trust
Bankers (I. to r.)
Roger Arwood,
Ben Eilders and
Don Jordahl at the
Des Moines Marriott
Hotel, site of the 1981
IBA Convention
September 20-22.


Iowa Bankers Association
95th Annual Convention
D es M o in e s M a r r io t t H o te l
S e p te m b e r 2 0 - 2 2


H E 95th annual convention of the Iowa Bankers Association promises to
be an exciting, inform ation-packed m eeting for the more than 4,000
registrants expected to attend. The convention will be held Sunday through
Tuesday, Septem ber 20-22, w ith the new M arriott Hotel in downtown Des
Moines as convention headquarters and the site of the business m eetings. (For
those guests registering at the M arriott for the first tim e, a separate story in
this convention section gives directions to reach the check-in door of the hotel
and the two parking garages.)
This y ear’s convention will feature a spectacular array of entertainm ent, as
well as the traditionally high level of platform speakers. Noted composer
M arvin Ham lisch will perform at the piano w ith songs he has created,
presenting two performances Sunday night at the Des Moines Civic Center. A
Black and W hite Ball will be held M onday night, affording an opportunity for
a return to the elegant G rand Ballroom at the F ort Des Moines Hotel. Guests
m ay dress in either formal or semi-formal attire for this 8:30 p.m . to m idnight
dance to the music of the Mike Day orchestra. The closing feature of the
convention will be the “ Spotlight on Iow a’’ dinner Tuesday evening in the
M arriott Ballroom. This will offer Iowa food, Iowa entertainm ent and Iowa
hospitality. Live musical entertainm ent will feature the M aquoketa Peace
Pipe Players, and the nationally-know n M ackinaw Music Show, which has
played w ith noted entertainers.
A record num ber of exhibitors will be displaying a wide variety of services
and products used by banks, all on the third floor of the M arriott. H ospitality
rooms hosted by correspondent banks also will be featured in the downtown
hotels. S huttle bus service will be provided continuously between downtown
hotels, Merle H ay mall and Younkers Tea Room.
IB A President Edw ard L. Tubbs, chairm an of the M aquoketa S tate Bank,
will preside at the business sessions. Scheduled to succeed him as president is
Tom C. Dunlap, chairm an and president of South Story Bank & T rust
Company of Slater, who has been president-elect this p a st year. L.C. “ B ud”
Pike, president of the Farm ers Savings Bank, G rundy Center, has been IBA
treasurer. Chief staff officer is Neil Milner, executive vice president and
secretary, Des Moines.
The complete program follows:

Sunday, September 20

Federal Reserve Bank of St. Louis

-6:00, Convention R egistration — M arriott Second Floor.
A nnual M eetings — M arriott Ballroom.
IBA A nnual M eeting.
IB IS A nnual M eeting.
ITS A nnual M eeting.
ABA Iowa M embers M eeting.
-7:30, A N ight W ith M arvin H am lisch — Des Moines Civic Center.
-9:30, A N ight W ith M arvin Ham lisch — Des Moines Civic Center.

Monday, September 21
A gricultural Program — M arriott Ballroom. Presiding — Dave Kingland, chairm an, IBA A g Division; vice president, F irst National
Bank, M ason City.
N orthw estern Banker, S eptem ber, 1981


Iowa News

Bookman Peters — Chairm an and CEO, City N ational Bank of Bryan,
IBM C Report.
Pete Stubben, local trader, New York Futures Exchange.





General Session — M arriott Ballroom.
“ Outlook for Business and B anking” — Dr. William C. Freund, senior®
vice president, and chief economist, New York Stock Exchange.
IB IS Report,
“ Com petitive Factors in the 80s: A Panel D iscussion”
M oderator: Neil Milner, executive vice president, IBA.
Thom as H. H uston, Iowa Superintendent of Banking.
Lawrence Connell, chairm an, N ational Credit Union A dm inistration.
Russ Browne, senior vice president, and m arketing director.
Commercial Federal Savings and Loan, Omaha.
“ Black and W hite Ball” — G rand Ballroom-Hotel F ort Des Moines.
E ntertainm ent: The Mike Day O rchestra.

Tuesday, September 22
A.M .





General Session — M arriott Ballroom.
“Your Banking Custom er of the 80s — Peter Francese, Editor,
American Demographics magazine.
Lee Gunderson, President, American Bankers Association; Presi­
dent, Bank of Osceola, Wis.
Iowa ABA Report.
ITS Report.
“ America and the Rest of the World: W here Did We Go W rong?” —
A m bassador Douglas M acA rthur II.
Noon Reception and Luncheon — 50 Year Bankers and P a st IBA Officers.
M arriott Hall of Cities.
2:00 General Session — M arriott Ballroom.
George H. Lawrence — President, American Gas Association.
J.G . Cairns, J r., President, Peoples N ational B ank of W ashington,
Seattle, W ash.
IBA Report — Edw ard L. Tubbs, President.
George Plim pton — Internationally-renow ned author, editor, and
sportsm an.
6:30 “ Spotlight on Iow a” Dinner — M arriott Ballroom.

You Will See Them at the 95th
Annual Iowa Bankers Convention

H E 95th annual convention of
the Iowa Bankers Association
will be held Septem ber 20-22 a t the
M arriott Hotel in Des Moines.
Officers and representatives of larger
banks from m ajor banking centers in
the m idwest will be attending the
Following the list of bankers
planning to a tten d is a list of
N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


personnel from investm ent, service
and equipm ent firms registered for
the convention.

Cedar Rapids
Merchants National Bank: Jam es
O’M eara and Jo h n M angold, senior
vice presidents; Terry M artin and
Jerry Trudo, vice presidents, and

Dale Froehlich,

assistan t


Peoples Bank and Trust: John M.
Sagers, president; Don G. Ellis,
executive vice president; Lawrence
E. M cG rath, senior vice president/
cashier; Gary D. E rn st, senior vice
p re sid e n t/tru st officer; Melvin J .
McCalley and David Paxton J r . , vice
presidents; M argaret E. Billings,
assistan t vice president, and Lila M.
Helms, tru s t officer.


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Phone: 319/582-1841
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thanks to the help
they 're getting from
American Trust.

W ell see you in
Des Moines at the
Iowa Convention.

Federal Reserve Bank of St. Louis



Iowa News


An Evening With Marvin Hamlisch

American N ational Bank: Keene®
H. A ddington, president; George K.
M etzger, executive vice president;
Robert F. Sherm an, senior vice
president; Robert D. Regnerus and-^
Dennis F. Reher, correspondentw
banking officers, and Philip C.
Simmons, bond investm ent officer.
C ontinental Bank: John B. Tingleff, Thomas E. Elyea and Lawrence®
H. Frowick, vice p residents—finan­
cial In stitu tio n s m idwest division;
Delmar Rogers J r., second vice
institutions m idwest division; M. H annah J u d y #
Duncan, banking associate—finan­
cial institutions-m idw est division;
Chris D. Maxwell, bond officer—
portfolio advisory services; M argot
J . Shockey, municipal bond represen- O
tative; How ard J . Beckstom , second
vice president—governm ent bonds;
Bruce Langille, governm ent bond
representative, and Eric G. Wilson,
bond officer.

“ A Night w ith Marvin Ham lisch” w ill bring one of America’s top
singer-composers to the Iowa Bankers Association annual
convention. At 5:30 p.m. and 8:00 p.m. performances, he w ill play
and sing such famous Hamlisch hits as “ The Way We Were,” “ A
Chorus Line,” “ The S tin g ,” and “ The Spy Who Loved Me.”

Committed to
making your
bank stand
apart from the

Drovers B ank of Chicago: Frank
E. Bauder, chairm an of the board;
Jam es F. Carmody, president;
Robert F. Corey, executive vice®
president; John J . C rotty J r ., and
M ax A. Roy, senior vice presidents,
and Kathleen T. H ardy, assistan t
vice president.
F irst National Bank: Thomas M.
King, vice president and m anager;
Clarence C. Cross, assistan t vice
president; David J . Varnerin, loan
officer, and Paul A. G argula ,1
commercial banking representative,
all w ith correspondent bank division.
Nevin Bowser, vice president, and
Andy Lam pert and Meillyn Donahue,
sales representatives, all with bond*
departm ent. Tom Cooke, assistan t
vice president, and Jane Blom quist,
investm ent advisor, both with Fed
Funds division.
H arris Trust: John A. Sivright,
executive vice president; Jerry H .
Pearson, Jam es W. Hill, Gerlad R.
O’Connor and Stephen P. D ustm an,
vice presidents; Thom as P. M artin, ®
assistan t vice president; Robert E.
Stenbeck and Edm ond M. Kennedy,
investm ent officers.
LaSalle N ational Bank: Edw ard R.
Gran t, chairm an of the board; M. Hill
Hammock, executive vice president;
William F. Love, vice president/
division head; Richard G. Brown,
vice president, and Richard K. Fiesvig, assistan t vice president, all from

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis




Lynn Horak

Barbara Estey

Charlotte Heaberlin

Rita Pirrello

Dick Pedersen

Group Vice President
and Manager,
Investment Services

Investment Officer

Money Market Specialist

Money Market Specialist

Vice President & Manager,
Funds Management Services

The lowa-Des Moines now has a FUNDS
with experts working full time to help you
make the most of your money in short-term
These people combine know-how with
up-to-the-minute money market information
to handle investments including:
• Fed Funds • Commercial Paper
• Repurchase Agreements
• Negotiable CD’s • Banker’s Acceptances

Of course, we have always offered funds
management and investment services. But
we think our new approach — a separate,
full-time department — will be of even
greater benefit to banks and corporations
trying to cope with today’s fast-changing
money markets.
Give us a call — you’ll find the bank that’s
first in Iowa is first with help for your money,


First in Iowa. . . by putting Iowa first.
A dr

7th and Walnut, Des Moines, Iowa 50304 (515) 245-3131 or toll-free (800) 532-1820

© 198 1 lowa-Des Moines National Bank
Federal Reserve Bank of St. Louis

Member FDIC

An Affiliate of Northwest Bancorporation


Io w a N ew s
correspondent bank division; R u­
dolph H. Frank, vice president,
investm ent departm ent; M arc B.
Benson, senior vice president;
William V. Crawford, vice president,
and Jam es W. Griffin, sales
representative, all from bond d ep art­
m ent.

Jeffrey B. Early and Frank M.
Lockhart, commercial banking offi­
cers, and Patricia Kaczar, adm inis­
trative assistan t. Michael J . Furey,
second vice president, —tru st; E d ­
ward J . W alsh, vice president—
bonds, and John P. Drawer, bond
investm ent representative.

H orst, vice president /cashier; Michael A. Bauer, correspondent banking w
officer; Glen W. Piotter and Robert J .
H artm an, com puter services officers;
Jack R. McDonnell, senior com puter
services officer, and John W. 0
Schricker, credit card officer.

N orthw est Bank and T rust Com­
pany: Larry M akoben, vice presi­
D avenport B ank and T rust Com­ dent.
The N orthern T rust Company: pany: John K. Figge, president;
Stephen B. W hite, senior vice Jam es K. Figge and Thomas K. F ig ­
president/division head; Curtis E. ge, executive vice presidents; Robert
American T rust and Savings
Skinner, senior vice president; G. Lenertz and Jam es E. Shrader,
Nicholas J . Schrup, chairm an
E rnest P. W aud III, vice president; senior vice presidents; Richard R.
of the board; Christy F. A rm strong. fl)>
president; Leo F. Kane, executive
vice president, and Bernard D. Miller,
assistan t vice president.
National Boulevard Bank:
Peter DeRosier, vice president.


D avenport

K ansas City

“The largest,
most complete
in East Central



Peoples full financial services...

Helping build your good life.
IT! Peoples Bank
and Trust Company
Cedar Rapids


Commerce Bank: John J . W il­
liams, senior vice president, and
Dennis C. Riffle, correspondent
banking officer.
U nited M isouri Bank: Richard C .®
King, president; E.L . Burch and
Alan B. Collins, executive vice
presidents; Richard H. M uir, vice
M inneapolis
F irst B ank Minneapolis: Robert J.
Anderson, executive vice president;
Glen R. W alters, Michael E .0
Boncher, Fred H. Squires, Larry C.
Nelson and Lee C. H am ilton, vice
presidents; William W. H am ilton,
assistan t vice president.
M arquette N ational Bank: William #
J . A ddington, vice president and
Richard E. Holmes, assistan t vice
N orthw estern N ational Bank: E .0
Peter Gillette J r ., president; D onaldw
G. Pederson, senior vice president/
correspondent banking, and Richard
C. Storlie, vice president/correspondent banking.
New York
Chemical Bank: John A. Robb,
assistan t vice president.


F irst N ational Bank: Phil Giltner,
president; Jack Canaday, executive
vice president; Bruce Lauritzen, Bill
Henry, Don O strand and Ralph #
Peterson, vice presidents; Jim
Flodine and Bob Meisinger, second
vice presidents, and Diane C asart.
The Om aha National Bank: John(|||>
D. W oods, chairman; Thomas H.

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis







John Sivright

Jerry Pearson

Jim Hill

Ed Kennedy

Why a Harris Banker? Because Harris has the resources, the
economic expertise, and the operational excellence to solve just
about any problem a correspondent bank might have. Because
Harris has a strong management commitment to setting up
mutually profitable working relationships with correspondents.
And because Harris has the professionalism of John Sivright,
Jerry Pearson, Jim Hill and Ed Kennedy to bring our expertise
to every corner of Iowa. Come and meet John, Jerry, Jim and Ed
at this year’s convention in Des Moines. Or if you need help
faster, call (312) 461-2121. See you at the convention!


Harris Trust and Savings Bank, 111 W. Monroe St., Chicago, IL 60603. Member F.D.I.C., Federal Reserve System.
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981

1 04

Io w a N ew s

Allen, president; John E. M artin, colm Erickson, vice p resident/
Daniel F. Boehle, Delmar J . Olson, cashier, and Tom Pohlman, corres­
John Furrow and Ralph Noren, vice pondent banking officer.
presidents; John F. W ear, corres­
Security National Bank: R .E .
pondent loan officer; Tish Selk,
“ Gene” H agen, president; Jim
assistan t m arketing officer; Mel
Hongslo and Steve H atz, vice
Lancaster and Sherry Hulme, client
presidents; Ken Roeder, correspon­
dent bank officer, and Scott Otis,
U .S. National Bank: Jam es correspondent bank representative.
Campbell, president; Lee Bachand,
Toy National Bank: Leslie H.
Howard Nielsen and Robert BillOlson, president; Jam es Tritz, Rich
meyer, vice presidents; William
Breyfogle and S tan Fredericks, vice
Dew hurst, card services officer.
St. Joseph

First National Bank: Bill M anring,
assistan t vice president.
First Stock Yards Bank: John
K ara, president; and Bob Azelton,
assistan t vice president and ag rep.
St. Louis
Mercantile Trust: Jerry Fleschner,
vice president; Jerry B. Carman,
assistan t vice president, and Charles
A. E vans, banking representative.

St. Paul
First National Bank: Michael T.
Mishou, Clayton L. Johnson and
Robert J . Peroutka, assistan t vice
p residents.

Sioux City
First National Bank: Richard C.
Taylor, president; Gary W. Steven­
son, vice president, and Douglas A.
Schm idt, assistan t vice president.




Doug Brown, vice president; M al­


Investment, Equipment and
Service Firms

*Burroughs Corporation, West
Des Moines: Terry Sm ith, Glenn®
Anspach, Dale B eaty, M arv McElvain, Chuck Taylor, Ron Pieracci,
Joe Graziano, Jerry Ross, Jeff
Gebauer, D an Reed, John W ashburn,
Ed M angold, M ark Stuck, Tom ®
Ham ilton, C urt Brown, Bob English,
Jack Steck, Randy Luebe, Lee
Meuler, Dawn Sherbeyn-Flick and
Rick B archard.

*Business Systems Corporation,
Des Moines: Sue DeVrieze, Rita
Shuey, Larry

Roling and


*Karma Cahill Fine Art and®
Framing, Cedar Falls: Karm a Cahill.
The asterick (*) indicates those
Chiles, Heider & Company,
firms registered as exhibitors.
Omaha: Fred Douglas, Tad D unham ,
Automated Systems of Iowa, Jon Narmi, Jeff M oran, Mike Sparks <|j|i
Ankeny: Jon Grindle, president.
and David Van M etre.
*Bank Building Corporation, St.
Credit Bureau of Greater Des
Louis: Roy W ingers, senior consul­ Moines: Jerry A. Jackson, president;

ta n t.

T .J. Driscoll, vice president/secre-

*Banks of Iowa Computer Servi­ tary; P a tty Collette, adm inistrative #
ces, Cedar Rapids: Brian Phillips, assistant; Kelly M. G ruber, Vali-

president; Brian Scott, vice president Chek m anager, and Valerie F raas,
—m arketing; Steve Boes and John credit reporting m anager.
M eehan, m arketing representatives,
*Cummins-Allison Corporation, (|||i
and Annalee Scott, executive account Chicago: Keith Jung.
m anager.

Dain, Bosworth, Inc., Des Moines:
*Bell& Howell, Des Moines: Norm Paul H . B artlett and Howell R oberts,

L ust, sales manger; Glenn Klein, vice presidents.
Gary Nickerson, Bob W eatherly and
*Daktronics, Inc., Brookings, SD:
Mike McMullen.
Jim Thom as.
*Brandt, Inc., Peoria, 111.: Bill
*Data Business Equipment, Des
Welch, Dick M artin, Dan Thiewes
Moines: A rthur N. Joura, president
and David Crew.
Donald F. Jones, vice president,
Lynn Groen, program m ing; Karen
Riesenberg, custom er support; C urt
Paul and Jam es B. Kelley, sales.


*Deak-Perera, New York: Jerri®
Schwartz, Gerald L. M arquard.

Qhaw, jy jc D e rm o tt & (^ o .
Underwriters, Distributors, & Consultants
General Market Municipal Bonds
and Industrial Revenue Bonds
518 Stephens Bldg.

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



Phone 515—243-6119


*Des Moines Stamp Manufactur­
ing Company, Des Moines: Tom
Child, Dave Child, Frank Child
Randy Miller, Ken D ular and John

Diebold, Des Moines: John
M urphy, regional m anager; Bill Osier
and Curt U ngs, sales representatives.®
*Durham and Associates, Edina,
MN: Ed Koscic.

Statem ent of Condition

Board of Directors

J u n e 3 0 ,1 9 8 1

Chairman of the Board


Lee Enterprises

C ash and Due From Banks
F ederal R eserve Funds Sold
U.S. G o vern m en t and its A gency S e cu rities
O th er M a rk e ta b le C o rp orate O b lig a tio n s
M u n icip a l S ecu rities
F ederal R eserve Bank S tock
Bank P rem ises and Eq u ip m en t
In terest A ccru als

$ 78,372,938.79

C u sto m ers L ia b ility for Letters of C redit
O th er A ssets


C ap ita l S to ck
U ndivided Profits


Total C ap ita l Funds


$ 56,321,480.93

Reserves for In terest, Taxes, and O th er L ia b ilitie s
Banks L ia b ility for Letters of C red it
Federal Reserve Funds Purchased
D ep o sits



Senior Vice President

Executive Vice President


Executive Vice President

Mel Foster Company

Deere & Company

Lee Enterprises

lowa-lllinois Gas & Electric Company

Petersen-Harned-Von Maur

Lane and Waterman

Kahl Properties

D avenport Bank
and Trust Company

M em ber FDIC
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



Know your
Look around. Banking has become one of
today’s most competitive businesses.
Your customers are being wooed by every
financial institution in your market area.
The trick to keeping your customers loyal,
and to increasing your profits, is knowing as
much about them as possible and keeping
that information updated daily.
Unfortunately, complete up-to-the-minute
customer profiles are rare. Background in­
formation is often gathered randomly and
stored in many different places, making it
difficult to obtain for useful purposes.
Until now. Until Banks of Iowa Computer
Services Central Information File (CIF).
With Banks of Iowa Computer Services’
CIF, complete information on your custom­
ers can be obtained in moments, either on a
display terminal or as hard copy.

The operative word is exhaustive. Since
every possible piece of information gathered
is centrally stored, you have immediate ac­
cess to such things as the status and history
of a given customer’s account and his ac­
count relationships. The businesses he’s in
and how they’re doing. And any pertinent
family information.
This information is critical in making quick,
knowledgeable, profitable decisions.
CIF is the most economical, efficient and
sensible way to gather all this information
and to use it for increased profits.
Don’t kid yourself.
There aren’t many new
customers around. What
you need to do is expand
the ways your existing cus­
tomers use your bank.

Because a lot of other financial institutions
would like them as customers. And are trying
to get them.
Can you trust your customers? Yes — if
you can trust your information retrieval sys­
And that means CIF.
Contact us today for an appointment.
We’ll be glad to explain our system at your
For more information call BICS marketing
at (319) 399-3600.

Banks of Iowa Computer Services^
A “ B A N K S O F IO W A ” S U B S ID IA R Y
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


Io w a N e w s

*E astm an Kodak Company, M in­
neapolis: Dennis Colburn, Steve
Penisten and Gary Sauerteig, sales
representatives/m icrographics m ar­
Financial Institu tio n Services,
Inc., Omaha: Lom e Newhouse.
*Financial Products, Inc., Eau
Claire, W is.: Les H. L iptak, vice
president; John Lawder, Randy
Johnson and William Lundbohm ,
sales representatives.
*Financial System s, Inc., K ear­
ney, Nebr.: Ken M eredith.
*General B ank E quipm ent &
System s, Inc., Omaha: Thom as C.
Sternberg, John T. Say les, B .J.
Gehrki and M ark C. Vandem ark.
*Greenleys Iowa Supply Com­
pany, Sigourney, la.: Terry Greenley.
*Kirk Gross Company, W aterloo,
la .: R.T. Zahn, chairman; Gerald L.
Gross, president, and Robert Jam erson, architect.
Tom H agan & Associates, N orth
K ansas City, Mo.: Tom H agan,
owner, and Linda Blue Sm ith,

*Hawkeye Bancorporation, Des m anager, Omaha;
Moines: Paul D. Dunlap, president; Collins, sales engineer, Omaha, and
M yron Weil, executive vice presi­ George Vinson, sales engineer, Sioux
dent; R obert M urray and Jim City.
Bullard, senior vice presidents, and
*Life Investors, Cedar Rapids:
Stephan L. Jones, vice president.
Don N achtm an, Bob O kerstrom and®
Bob Kesselring.
*HBE B ank Facilities, St. Louis:
*M & M Sales Company, Des
M artin Goldberg and Gary Gauger,
Moines: Larry Perry, B art C hristian­
account executives.
son, Ed Simmons, M ark Clarke,
Holder and Associates, Ames: Don Larry W arren, Tom Dunn, Dick^*'
and P a t Holder.
Haire, Larry Collins and Steve
*Iowa Bankers Insurance and H uy ette.
*McDonald Business Services,
Services, Inc., Des Moines: The
entire staff! A1 Tinder, executive Des Moines: Jim McDonald.
director; Bill Carr, Larry Gille, Jim
*Merlin Inform ation System s,
Jensen, Gary Livesay, Ron Meyer, Visalia, Calif.: Dan Sims.
M argie Schaefer and Millie Uding,
*MGIC, Des Moines: Ed Kallevice presidents.
myn, vice president/m arketing rela­
*Kooker & A ssociates, Spencer, tions; Dennis Grogan, regional #
la: Earl F. Kooker.
director of m arketing; Ted Miller and
*A ustin P. Lawler & Associates, Gordon Chapm an, account execu­
tives .
Lom bard, 111.: A ustin P. Lawler.
*M idwest Calculator, Des Moines: ^
*LeFebure, Cedar Rapids: Frank
R. Volesky, regional sales m anager, Thomas L. W eaver, executive vice
Cedar Rapids; Lon W arren, sales president, and Randy Forburger,
engineer, Cedar Rapids; Richard vice president.

*Money Handling Machines, Inc.

Wilson, sales engineer, Des Moines;
Jack D uD ash, sales engineer, M ason
City; Finley Jackson, regional sales

(B randt Sales & Service, Omaha: Jim



Jon Narmi

Ken Ferrarmi

Jim Kelly

Jim Fox

Tad Dunham

Jeff Moran


Bill Carver

Fred Douglas

Bill Beavers

Jim Foley

Dave Van Metre

See You at the Iow a Convention

Chiles, H eider &Co, I nc.
1300 W OODMEN TOWER ■ OMAHA, NEBRASKA 68102 ■ (402) 346-6677
612 LIBERTY BUILDING ■ DES MOINES, IOWA 50309 ■ (515) 243-0833

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



We take the foreign intrigue
out of international banking.
We’ve simplified international banking
services for our correspondent banks and their
customers. For example, instead of dealing
with one person when you open a letter of
credit, and a different person the next day,
you deal with one individual. An international
specialist who handles your letters of credit
and collections from beginning to end.
Our bankers make every aspect of

international banking easier. They untangle
the complexities of trade finance, foreign
payments and money transfers, foreign
exchange, and more for you and your
Take the mystery out of international
banking. Call Bob Sherman, Correspondent
Banking Division or Jerry Langley, International
Banking Division at (312) 661-5000.

National Bank
and Trust Company of Chicago
33 N. L a S a l l e

6 0 6 9 0 / L a S a lle a t W a c k e r / 2 2 2 S . R iv e r s id e P la za / ( 3 1 2 ) 6 6 1 - 5 0 0 0

Branch offices in London and Cayman Islands. International offices in Argentina, Brazil,
Colombia, Germany, Holland, Hong Kong, Mexico. Peru and Singapore.
Federal Reserve Bank of St. Louis

1 10

Io w a N ew s

*Money Processing C onsultants,
Cedar Rapids: Kim Ballew.

*Nesper Sign A dvertising, Cedar
Rapids: Larry Sovern.

Monroe Calculator, Des Moines:
Norm Greenwald, branch m anager;
Dal H uston, Roger Oakland and
John Trave, sales representatives.

Newlin B ank Sales, Des Moines:
Richard C. Newlin, president;
William D. Newlin and M artha J .
Newlin, vice presidents.

*Northwestern Bell, Des Moines:
*Mosler Safe Company: Doug
Moore, regional sales m anager, and Keith Arneson, Bob DeYoung, Mik
Jim Bell, regional service installation Lucas, Robin Nixon and Dennis
m anager, K ansas City. Bob Hood, Spurgeon, account executives. Paul
branch m anager, and Darwin F est, Blum and Joe Hobbs, custom er
sales representative, Des Moines. service representatives.
Terry Froelich, sales representative,
*Omaha N ational Bank: John
Minneaolis. Lindsey M ichalski, sales Furrow, vice president; John C ar­
representative, Omaha.
michael, product planning m anager;
*NCR Corporation, Des Moines: Mel L ancaster, assistan t operations
Jam es Schulte, M arcus W ilson, officer, and Sherry Hulme, client
Linda W ignall and Lori B ents, Des consultant.
Moines; John Peglow, Cedar Rapids;
*Pinger System -M idw est Credit
Leonard Fagen, Sioux City; Bob Bureau, Des Moines: Jerry A.
Lapinski, M inneapolis. Mike M ur­ Jackson.
phy, W aterloo. Glen Simpson,
*A.O. Sm ith H arvestoreP roducts,
Dubuque. Steve P atterson and John
E vans, D avenport. Don Frazer, Inc., Ames: Stephen K. Sullivan.
Bonnie Gray and Steve M arrison,
*The T R W -Fujitsu Com pany, Oak
Omaha. Dave Bublitz and Dave Brook, 111.: W in Tripp.
H eath, M ason City.
*U nited B ank Services, Grand
*National Fidelity Life Insurance Island, NE: H arry E oriatti.
Company, Des Moines: Craig Ross
*United Business E quipm ent &
and John Wolf.

Microfilm, Lincoln: Bill H ardt,
Lucile Hoffman, Ron Wick, R o r#
Brotherson and Rex Luse.
U nited S tates Check Book Com­
pany, Omaha: E d Batchelder, vice
president/sales; Glen A ltfillisch^|
Bernie Burger, John Kohring, Tom
Potthoff and Chuck
S tra tta n ,
*U SLIFE Credit Life Insurance
Company, Des Moines: Bob A tess. #
*Winn International Corporation,
Chicago: Ira Kaplan.

Brenton Banks Tells Income (|)i
Brenton Banks Inc. of Des Moines
said its net income for the first six
m onths of the year totaled nearly $3.1
million or $2.61 per common share, an
increase of 24 percent over the $2.11®
per share from the same period a year
The bank holding company also
reported an 11 percent increase in
assets, an 8 percent increase in®
deposits and a 3 percent increase in
Chairm an William H. B renton
projected a continuation of the*
favorable trend.


Carleton D. Beh Company
Investment Bankers/Financial Consultants
1300 Des Moines Building/Des Moines, Iowa 50309

Division of

estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



& Company Inc.



Ready with
Single System
Banking with
all of its
Cost Saving

The newest innovations in banking are ready
for you at the N ational Bank of Waterloo
Computer Center. This new facility, staffed
by experienced bankers, is ready to serve you
w ith practical, efficient data processing
services . . . at significant savings.
You'll find our correspondent banking and
data processing professionals responsive,
helpful and ready to m eet your needs.
Call or write us today.

. National BankofWaterloo
Bank Data Processing Professionals


Phone 1-800-772-2411 Waterloo, Iowa 50704
Federal Reserve Bank of St. Louis

Member Federal Reserve System F D I €
N orthw estern Banker, Septem ber, 1981


Io w a N e w s

Directions To Convention
Headquarters and Parking •
Marriott Hotel—7th & Grand
• Approach Marriott westbound on
Grand Ave. to entrance just west of
7th St. intersection.
• Check-in and unloading area at en­
trance area.
• Limited underground parking at
check-in area.
• Downtown Des Moines maps avail®
able from hotel doorman.
Locust St. Mall—7th & Locust
• Right onto 7th St. from hotel check­
• IV2 blocks South to Walnut.
• Right on Walnut 1 block West to
8th St.
• Right on 8th 1 block North to
• Right on Locust Vi block East to
• Sky walk to Marriott.
Grand Ave. Garage—7th & Grand

F ir s t

S tr in g .

• R ight onto 7th St. from hotel checlo*
in to left land.
• V2 block South to Locust.
• Left on Locust 1 block E a st to 6th

Bob Azelton

H. H. “Beanie” Broadhead

John Kara

T hat’s what you get from the First Stock Yards
Bank. Our correspondent bankers are real pros when it
comes to financial expertise and personal attention.
Their specialties are bank stock loans, commercial
loans, agricultural loans, and data processing. Together,
they make millions of dollars worth of loans every year.
Team up with a first string correspondent banker
-o n e of the pros from First Stock Yards Bank of St.

Joseph, Missouri. W here your su ccess
is a tradition
First Stock Yards Bank
St. Joseph, Missouri 64504

Call: (816) 238-0651
A ffilia te of First M idwest Bancorp, Inc.
Member F.D.I.C.

w e s tern Banker, Septem ber,
Federal Reserve Bank of St. Louis


A ve,
T. A
• Left on 6th 2 blocks N orth to H iglr
• Left on H igh St. 1 block W est to
7th St.
• Left on 7th V2 block South to em~
• Sky walk to M arriott.
For convenience, the hotelm anagem ent recommends using the Locust.
Street Mall facility.


Iowa’s fertile lap is a
patchwork of peace and plenty.
T he pork grows lean and the com grows tall.
Communities hum with prosperity.
Iowa bankers keep them humming.
We salute you.
Federal Reserve Bank of St. Louis


M in n e a p o lis
We ll be there.
First Bank Place
Minneapolis, M N 55480
Phone: 6 I2 /3 7 0 -5 4 7 4
Member FDIC

N orthw estern Banker, S eptem ber, 1981


Io w a N ew s

Assistant to President
Hired in Shenandoah

Were interested in handling
ag credit needs.

t Security Bank, we’re peoi pie with an interest in
your success. People you can
count on for ag lending and all
your correspondent needs.
Our Correspondent
Banking Officers have a special
commitment to agriculture.
And we have our own Security
Agri-Credit Corporation to
help you with increased credit
So, start corresponding
with Security for ag lending,
data processing, overlines and
investments. You’ll discover
we’re people with an interest
in you.


Security Correspondent Bankers
Top to Bottom
Jim Hongslo
Steve Hatz
Ken Roeder
Wilma Weeks
Scott Otis

People with
an interest
in you.

Western Iowa’s Largest
7 1 2 /2 7 7 -6 5 5 4


© 1 9 8 0 Security National Bank

estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


Robert S. Ross, president of the
City N ational B ank in Shenandoah,
has announced
th a t George H.
Perry has recent­
ly joined the
bank as assistan t
to the president.
M r.
m arried to the
M r.
graduated w ith a
BA degree from the U niversity of"
Iowa and earned his JD degree from
Drake U niversity Law School. He
was A ssistan t U nited States A tto r­
ney and then U nited S tates A tto rn e j#
for the southern district of Iowa from
1974 to 1977. For the past four years
he has been a trial lawyer in Algona.

New Mingo Banking F acility#
C onstruction has been completed
on a new banking facility for the
Mingo T rust and Savings Bank,
according to Jerry Schierm eister.
The new 3500 square foot facility
has four teller stations, three
executive offices, a directors confer­
ence room and a drive-up window^
th a t serves one lane of traffic. A large*
com m unity room in the basem ent will
be available for use by the general
The use of locally supplied n atu raL
oak and w alnut throughout the*
interior adds a special dimension to
the facility. A lbert A. Pacelli of
Oaklawn, 111. provided architectural
services. Office Concepts, L td. oU
W aterloo was responsible for the*
A recent open house for area
bankers was attended by 140 guests.
The public open house was attended^
by more th an 400 people.

Ottumwa Officer Election



John S. Zdychnec, president and
chief executive officer of F i r s #
N ational B ank of O ttum w a, has
announced the election of Cheryl
Simplot to compliance officer.
Prior to joining F irst N ational
B ank in February, 1981, M s. S im p lo #
worked as bank examiner for the
S tate of Iowa. She is a graduate of the
U niversity of Iowa where she
received a BBA degree in business
adm inistration.


T here’s no way to compromise
quality. So when we review your invest
m ent portfolio, we stress quality first.
Although it is more dif­
ficult to discern than
yield and maturity, the
quality of an investm ent
is what does the earning.
We’ve developed
an outstanding
record of earnings

U nited we grow. Together.

through careful, sound investm ents—
high-quality investments.
W hile we are a bit conservative by
some people’s stan­
dards, we are very suc­
cessful by everyone’s.
We welcome you to
meet our Investm ent
Division staff. Your
investments will be in
very qualified hands.

Member FD IC

10th and Grand, Kansas City, Missouri 64106, (816) 556-7200
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981

1 16

Io w a N ew s

H o w IB A T o p E x e c u tiv e s
V ie w A s s o c ia tio n P ro g re s s


B a n k e r interview with
ED TUBBS, President

o r t h w e s t e r n


_T -w-v „ „ . .

_r .


N E IL M IL N E R , Exec. Vice Pres.
Iowa Bankers Association

H EN a banker takes on the
heavy responsibility as presi­
dent of his state banker association,
he not only accepts a rushed, harried,
at tim es frustrating, b u t exciting 12
m onths, b u t he receives a bonus in
the new friendships he develops with
other bankers
and a greater
appreciation of the real w orth of each
one of those m embers to the welfare of
the entire association. And, as an
added value, both the president and
the association full-time executive
develop a special bond as they work
together over a two-year period of
tim e, learning the personality of each
other, how the other’s m ind works,
his am bitions and expectations.
Such a unique sharing experience
th a t develops into a lifelong
friendship has been the good fortune
of Edw ard L. Tubbs, president
during 1980-81 of the Iowa Bankers
Association, and Neil Milner, IBA
executive vice president. M r. Tubbs
is chairm an of M aquoketa S tate
B ank in M aquoketa, and will cap this
association year Septem ber 20-22
when he presides at the 95th
annual convention of the IBA in Des
In between busy sessions last
m onth at which they m et w ith groups
of Iowa bankers to explain the
proposed purchase of a Des Moines
building as the new IBA headquar­
ters, M r. Tubbs and M r. Milner
joined forces for this interview,
giving their frank responses to these
Q. In w hat ways do you feel the
Iowa Bankers Association has had
any real input or inpact nationally on
the ABA, federal regulators or

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


Ed Tubbs (left) and Neil M ilner review the program for the^|,
95th annual Iowa Bankers Association convention.

Ed: We feel our association is
the m ost respected state association
in the country. A large p a rt of the
reason for th a t is Neil M ilner, who
has been president of the National
Association of S tate Banker Execu­
tives and has had great experience in
the legislative arena and in providing
services to members. Our endeavors
are looked a t frequently as an
example for other state associations.
I ’m sure other state associations
would feel the same way about their
Legislatively, we have strong
representation at the ABA level, w ith
C hristy A rm strong, president of
Am erican T ru st & Savings B ank in
D ubuque, serving as one of the 27
bankers nationwide who make up the
ABA board of directors. Neil’s strong
standing and input are again evident
in this area. Dale DeK oster,
president of the W aterloo Savings
Bank, and Dick B uxton, president of
Peoples T rust & Savings Bank in
Indianola, have done outstanding
work a t the ABA level on the
Governing Council.
On the ABA governm ent relations
comm ittee we have had very able
representation by Bob Brenton,
president of B renton Banks, Inc.,
Des Moines, and Dick Summerwill,
president of Iowa S tate B ank & T rust
Co. in Iowa city. In addition, Neil and
I are in there constantly, so Iowa has
a lot of opportunity for input to the
Certainly, it is my impression Iowa
takes a leadership role. This is
especially pronounced in the projec­
ted 12-state association organization
being developed now.
Neil: A specific example of Iow a’s

input nationally occurred some
m onths ago when the Fed sent an
urgent request for data reflecting the
percent of deposits in six-m onth CDs.-.
We got the request Wednesday**
night, sent a m ailgram to each Iowa
bank (657) Thursday night, then our
staff fielded the return phone calls
from the banks Friday, Saturday andgw
Sunday. D uring th a t tim e, more than**
500 of the 657 banks responded and
our office staff stayed on duty
throughout the weekend. This
inform ation was compiled by ou r^
staff and sent to the Fed prior to its
Tuesday m eeting. The results of th a t
up-to-the-m inute survey had a
dram atic im pact.
W hen the DIDC was discussingn
removal of the quarter percent
differential recently, we asked our
members to respond to Treasury
Secretary Regan, then the federal
regulators and also the Chicago F e d ||
We were told by the Chicago Fed th a t
its office had over 200 replies from
Iowa banks alone the day prior to the
DIDC m eeting. T hat again was a
“ short fuse” deal on a T hursday#
night. Our bankers received the
request from us on Friday and the
replies had to be in prior to the DIDC
m eeting the following mid-week.
I should also m ention th a t w e#
m aintain excellent rapport w ith our
Congressional delegation in W ash­
ington and meet w ith them regularly.
Some are in key positions.
A t the state level, my impression is#
th a t we have a communications
relationship so th a t our views are
heard and considered. I would say we
have high credibility.
The real strength of all o u r#
endeavors goes to m embership


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D o u g S c h m id t

Vice President
Correspondent Banking

Assistant Vice President
Correspondent Banking



Look for us at the IBA
convention and S. Dak.
group meetings to find out
how our complete
correspondent services can
benefit your bank.

transfers and balance inquiries
(only account deposits are
excluded by law between states
or non-contiguous counties). A
transaction initiated in Sioux
Falls, South Sioux City or
Yankton takes just 11 seconds
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First National Bank


Member FDIC • Sioux City • A BANKS OF IOWA’ BANK
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981

1 18

Io w a N ew s

Neil and Ed listen intently to a banker’s question at a recent meeting.

participation in the process of
contacting legislators. I think it is
fair to say th a t on any substantive
issue which we can’t see is clearly in
the public interest,
reevaluate our position.
We know th a t the legislator in a
comm unity often seeks his local
banker’s views on a broad range of
economic issues.

Q. What are some of the concerns or
initiatives you feel have not been
completed this year? What are some
of the accomplishments?
Ed: One would be our effort to
acquire a new building location for
IBA headquarters. (This was to be
voted on by members by late
A ugust.) A nother would be the
12-state Mid America Banking
Services Co., Inc., still in the process
of being formally organized.
One accom plishment was over­
hauling the Iowa B ankruptcy Law.
A nother was passage of the Omnibus
Banking Bill, which included elimina­
tion of the state reserves requirem ent
and providing one additional banking
office for each bank. Passage of the
Public Funds deposit bill was
another, for it keeps those deposits in
banks, although they are now on a bid

Q. How are banks in this state
meeting competition from all types of
competitors? How are country banks
faring internally; with their farm
business; can they continue to meet

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


loan demand; can their farm
customers continue to meet their
obligations at the bank?
Ed: Our bankers are resourceful.
Our job in the IB A is to make them
aware of w hat they need to do to
compete. I t ’s hum an nature for some
not to act until the decision is forced
upon them .
We are still the largest lender to
agriculture, although our percentage
of the m arket is slipping. We have a
severe challenge from the unregula­
ted Farm Credit System on one hand,
and the th reat of losing our deposit
base to Money M arket Funds on the
other hand. The key to me is th a t
bankers do a responsible job of credit
analysis and lending w ith ag
custom ers. I believe th a t the bank
th a t follows th a t kind of program will
successfully compete for the farm
loan business.

Q. Are we on a pendulum of public
interest in seeking out high return
investments? Is this likely to swing
back more to savings? Isn’t this
increased economic sophistication by
the public at least partially a result of
years of banker education?

Ed: We are definitely not on a^
pendulum b u t on a new plateau. W e r
never go back. People perceive this
and recognize the need to consider
how to m anage their money. Higher
rates of capital now are a fact of life^
b u t hopefully will settle a t a low er
There is no question th a t people are
more knowledgeable. I t ’s a develop­
m ental process, though, and not
goal we reach. Deregulation creates
the need for m aking decisions and
having to look at alternatives.
Banking has been fortunate and
successful in educating is own s t a ^
people, as well as the public over the*
past three decades so th a t more
people are perceptive of this change
and capable of m aking these
economic decisions for their o w ^
So far as loyalty to an institution is
concerned, I ’ve seen m any people
who usually w on’t leave
one-quarter to one-half percent, buj||,
over th a t you run the risk of losing
your custom ers, especially older
people on fixed incomes who need the
best return.
Neil: There is also a relationship 1
between the num ber of services a
custom er uses and his willingness to
stay. Y ou’ll see less movem ent in a
com m unity bank than in a money
center or regional bank. I think P
caution is in order to each bank
m anager. I t is not safe to assum e he
can get by w ith less than com petitive
rates. E ach person has a different
threshhold of loyalty.
Q. Neil, what are the expanded
services that have been offered to
IBA members in the nine years since
you joined the association?
Neil: F irst, it is only right to statl®
th a t the grow th of IBA and its
services is a direct result of the
leadership of the officers and
m em bers.
• The new program s developed inr
the past nine years include a dram atic
expansion of the insurance program s.
The IB IS actually was formed in 1971
ju st before I came here. The em ploy^
benefits plan for member banks has®

“There is a relationship between the number
of services a customer uses and his willing- ^
ness to stay. I think a caution is in order to
each bank manager. It is not safe to assume
he can get by with less than competitive

"T h e Bull
stops here”
Straight Talk and Fast A ction.
That’s right. The Bull stops here.
Because at Drovers we know what our correspondents want.
Straight talk and fast action.
When you correspond with us, you have a ready-line to Drovers’ full senior
management team; a team that knows what’s happening out where you are.
With them goes the muscle, brain power and experience that have made the
name “Drovers” so highly respected with correspondent bankers throughout
the midwest for over 95 years.
The Bull stops here. No if s, and’s or hut’s. That’s why we say, “Drovers
Country is your kind of country, and Drovers Bankers are your kind of
bankers.” Put us to the test.

D ro v e rs B a n k

o f C h ic a g o

47th Street & A shland A venue, C hicago, IL 60609 (312) 927-7000
Federal Reserve Bank of St. Louis

Member FDIC
Member Federal Reserve System


Io w a N ew s

“Our bankers are resourceful. Our job in the
IBA is to make them aware of what they need
to do to compete. It’s human nature for some
not to act until the decision is forced upon
them .”

evolved from individual policies to a
group policy to the present selfinsured program . There were 137
banks in the medical program in 1972
and now there are over 400. Total
prem ium s for IB IS in 1972 were
$500,000; in 1980, all lines exceeded
$8 million. The num ber of banks
served is very high for member
b a n k s, their employes and custom ers.
The ID EA annuity is another
innovation w ith IB IS and now has
over $20 million in the plan.
• Form ation of the Iowa Transfer
System was another m ajor step. This
statew ide electronic funds transfer
system was researched in 1974-75,
then formed in 1976. We moved our
own com puter center in-house in
1979. The IBA staff also played a key
p art in developm ent of IA CH A . The
ITS staff, headed by Dale Dooley,
now provides staff support for
• The Iowa Bankers M ortgage
Corporation was started in 1979 to

provide a secondary m arket. The
IBA and IBMC boards are totally
convinced th a t this concept is vital to
the banking industry, especially in
view of the fact th a t S&Ls have
increased their banking powers and
credit unions have share drafts. This
is a particularly difficult tim e for
m ortgage companies. Several of the
national ones have merged or
liquidated. The IBMC board faces a
m ajor challenge in m ortgage finan­
cing—the challenge of the current
m arket to m aintain this tool for
future use of the Iowa banking
• A nother innovation was our
H R -10 prototype developed w ith the
use of outside consultants. The new
tax bill greatly expands banking’s
m arket. I t gives the opportunity to
expand the core of deposits, since
Iowa banks have access to the H R -10
prototype and the counseling and
m aterials available through the
association, which are valuable tools

F u n d in g ag loan s . . .
(Continued from page 42)
Under continued 8-10% inflation conditions, it has
been estim ated th a t the farm credit needs will increase
three to four tim es in the next decade. Growth in ag loan
demand is higher than the grow th rate of deposits.
Today, a num ber of country banks are experim enting
with retail repurchase agreem ents, while they continue
to urge regulators to authorize a deposit vehicle which
would be rate com petitive for smaller am ounts. Selling
C .D .’s to existing money m arket funds is being
accomplished in a limited way, b u t is gaining more
acceptance, while other groups of banks are examining
the initiation of a fund them selves. Suggestions have
been consistently made urging banks to set up an agency
to sell bonds or commercial paper into the m arket. This
should continue to receive consideration.
Cooperation w ith the Farm Credit System needs
further exam ination in light of the recently passed
legislation expanding the authority of the System .
Participation w ith Production Credit Associations or
direct discounting to the Federal Interm ediate Credit
Banks have funding possibilities, b u t banks continue to
wait to see how the new regulations will be interpreted
by the Farm Credit System . A t least one group of state
bank associations, the Mid America Banking Service
Corp., is exam ining the possibility of establishing a
DigitizedN orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


to assist local banks. Iowa and a few
surrounding states are the only ondf
to adopt this prototype.
Ed: A m ajor accom plishment of
IBA has been the revision of all
banking forms to meet regulations
with which we m ust comply. The fir ®
two of these are done. This is really
the purpose of the association—to
provide these services to members so
they can serve their custom ers and
• The H um an Resources program
initiated by IBA , and headed by
K athy Fischer makes IBA the only
association in the country with sl
qualified professional working ful®
time for the banking industry. This
has been accepted enthusiastically by
banks which have used this service.
Neil: We should point out thaL
association dues have not b e e *
im pacted by all these special services.
These services are based on a “ user
p ay s” concept.
Before we end this, I ’d like tc^
comment th a t our toll-free W A T»
lines are one of the membership
services which have been enthusias­
tically received, as dem onstrated by
the W ATS line usage. These lines ar|k
affiliates. All calls are fully cost
affiliates. All calls are fully cost
allocated by com puter tapes supplied
by the phone company at the end of
each m onth to IBA so we can show*
the am ount of usage by each
departm ent or affiliate.

corporation for the discount of loans to the Farm Credit
System .
The need for an outlet for participations or a source
purchased money will be im portant for a num ber of
F irst, it will give banks interested in m aintaining their
involvement in agriculture the ability to participate,
loans, lending m ajor help w ith individual loan lim ir
problems. Loan lim its per custom er have been a m ajor
concern of rural banks for some time and the problem
increases over tim e as per custom er loan volume has
grown a t a significantly greater rate th an bank capitate
Second, if local deposits are a b a n k ’s only dependable
source of funds then, in a purely com petitive
environm ent, any interm ediary less regulated w ith
regard to earnings and capital, or a poorly m anaged
institution soliciting com m unity deposits a t any c o ste
could force an otherwise sound institution to pay more
for deposits than it should or could afford to pay.
Third, it would give rural banks the ability to compete
with other institutions which presently have excellent
access to the money m arkets; principally, the Farqjj,
Credit System .
Fourth, it m ay be a more efficient way to fund loans.
Time may show th a t gathering deposits in $10,000 and
smaller quantities, and combining them to fund a
$250,000 credit line m ay be quite inefficient relative top
buying a piece of a billion dollar bond sale.

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D e a k - P e r e r a in t r o d u c e s th e P r e c io u s

© D eak-P erera 1981

M e t a l s P r o g r a m fo r b a n k s . T h i s i s a p r o g r a m

------------------------------------------------------ I

y o u c a n s t a r t i m m e d i a t e l y . B u t y o u d o n 't h a v e

M s. P a m S te p h a n y , D e a k - P e r e ra

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29 B r o a d w a y

N e w "fo rk , N . Y


T h r o u g h D e a k - P e r e r a , y o u c a n o ffe r y o u r
N am e.

c u s t o m e r s g o l d , s ilv e r , p l a t i n u m o r p a l l a d i u m .
T h e y m a y t a k e p h y s i c a l d e l i v e r y o r i n v e s t in

T i t le __

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A program that's e a sy to adm inister.

S tre e t.

W h e n y o u h a v e a c u s t o m e r , y o u c a l l o u r to llf r e e n u m b e r . Tfou'll t h e n h a v e i m m e d i a t e a c c e s s to
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c u s t o m e r s in s t a n t ly . W e d o a l l t h e w o r k . W e 'll e x e ­
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C ity —

.S t a te .

A rea C od e.

.T e le p h o n e .


L Deak-Perera. 1

Federal Reserve Bank of St. Louis


Io w a N ew s

Group Chairmen Report Area Conditions

ROUP chairmen of the
Bankers Association have
m itted the following reports on
and business conditions in


replacem ents, high inputs, and low
m arket prices have destroyed profit
potential. M ost have cut back
substantially and others have locked
their doors. M any won’t reopen!
The family sized cattle feeding
of the future will be a highly
Group 3
and profit oriented
Chairman Donald E. Sabbann,
program utilizing feeder cattle
Chairman Donald E. Sabbann, futures for replacem ent, corn and
president, Corwith S tate Bank, protein futures for feed inventory and
Corwith: W eather, dropping grain m arketing futures on the day they go
prices, mediocre livestock prices, and in the pen. Prim e and choice will be
continued high interest rates make it meaningless by traditional standards
hard to know which of them is having and we’ve seen the last of “ H igh
the greatest economic im pact on the priced m anure.’’ The m arket gamble
Group Three area. I ’m sure these will be left to the speculators and we’ll
comm ents will be similar to those all be ingesting more substitutes. We
from other areas of the state.
continue to look a t the hog industry
The w eather p attern was one of as our m ortgage lifters b u t white
extrem es, w ith crops in general in the m eat is price com petitive and
western counties appearing to be changes are developing in the pork
heading toward bum per yields, the industry, too. We see m any deep
southern counties nearly too dry until seated adjustm ents in agriculture.
m id-July, and the northeast counties Commercial activity in northeast
experiencing the largest hail belt ever Iowa parallels the rest of the country.
seen in th a t area, a t a date nearly too
We all feel the bite of the new “ pay
late for replanting. I t appears now as you go’’ philosophy in W ashing­
the areas not dam aged by hail will ton. We don’t like to take the
have very good yields, b u t price medicine b u t we like the getting
prospects certainly are not im prov­ better. The adjustm ents are working
when the European Common M arket
The interest rates and the grain countries, our international allies,
prices are reflecting in the activity on complain th a t our high interest rates
main street, w ith implement dealers, and tig h ter spending policies have
auto dealers and contractors still strengthened the dollar abroad and
experiencing the least activity, but have affected the ability of the rest of
business in general is quite slow. We the world to sell their products
have seen some improvement in the against us in the world m arket,
employment picture from a year ago thereby voiding their ability to inflate
when two of our counties had the their purchasing power against us. I t
unw anted distinction of being in the is a complicated world, getting
highest unem ploym ent percentages smaller by the day and our little share
in the state.
of “ Gods C ountry” is not an island.

Group 4
Chairman John E. Mangold, senior
vice president, Merchants National
Bank, Cedar Ra­
pids: The eight

Group 5
Chairman David N. Walthall,
president State Bank and Trust,
Council Bluffs:

county Group IV
areanorth, n o rth ­
east of Cedar R a­
pids, is a little
share of “ Gods
C ountry.’’ Late
July crops are
good to excellent.
A few spotty
areas have been
hail dam aged or missed the rains and
a few rem ote thunderstorm s have
caused damage. Our cattle feeders
face some tough decisions. H igh

D rought condi­
tions in S outh­
west Iowa have
taken a lot out of
the agricultural
economy. A dry,
warm spring sap ­
ped m uch of the
top m oisture in
April and May
and left very
little m oisture reserve for crops.
Conditions throughout the summ er
have been somewhat spotty as far as

DigitizedN orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


m oisture is concerned, b u t a large
p art of this area suffered from lack o®
rain and very hot w eather at corn
tasseling time.
Pastures have been hit the hardest
«1.1 season and m any farm ers have
been feeding hay to their c a ttl®
during late June and all of July. H ay
crops also have suffered.
I t appears now with the recent
rains th a t the soybean crop will be
about normal while the corn m ay b ™
slightly below average.
Hog farm ers have been in a
financial squeeze, especially because
of w inter and spring low prices. The
cattlem en have had an up and down®
m arket w ith some losses of $50 to
$100 per head during the w inter
m onths, b u t some profits have been
made in June and July.

Group 7
Chairman William J. Beohm,
president, Tama State Bank, Tama:
D uring this per®
iod of push-pull
inflation, our area
of the state is
holding its own.
In an effort to
m aintain a solid
standard of living
during this infla­
tionary time, the
farm com m unity
is spending its
money for dayto-day necessities while w aiting for
interest rates to stabilize before
investing in large capital item s.
This situation brings poor retail
sales to some of our business
comm unity (e.g. auto dealerships,
machinery and large ticket c o n su m e ^
goods). Businesses, however, that®
turn over inventory several tim es a
year are doing fairly well.
In spite of a dry spring and low
subsoil m oisture, we have a goocU
crop. We received tim ely rains in®
June and Ju ly and our crops look
excellent a t this time.
C attle feeders and cow-calf opera­
tions in this area are suffering due to.
low prices and high interest rates.
Hopefully, prices and interest rates
will tu rn around and p u t these
operations back on a profitable basis.
H og prices were low earlier t h i ^
year, bu t have shown a steady
recovery during the second quarter of
1981 and should continue into 1982,
bringing hog producers favorable
p rofits.
We look forward to improved long


When it comes to
*correspondent banking services. . .

O ver 100 b an k s in a 4 -state area are re ­
ceiving these and m any m ore services th ro u g h
th e financial expertise of Toy N atio n al’s
O correspondent b an k in g d ep artm en t.

Call on one of our financial ex p erts. . .

Rich Breyfogle
35 Yrs. of Service

Stan Fredericks
15 Yrs. of Service

Leo Stavas
16 Yrs. of Service

Sue Packard
5 Yrs. of Service

Toll Free Iowa Wats

Banking for your future.
M a in B a n k , 4 th lr N e b ra s k a • M id -T o w n O ffic e , 17 03 P ie rc e St.
M o r n in g s id e O ffic e , H ig h w a y 75 & G le n n
M e m b e r FDIC
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


Io w a N e w s

term conditions as the President’s
economic program takes effect.
Group 6
Chairm an Robert E . Chittenden,
president, Farm ers Savings Bank,
The crops in our
area have never
There has been a
June 1st. We
started w ith near
drought condi­
tions and
sub-soil m oisture
but, since the 1st of June, have had
rains alm ost every week. However,
additional rainfall will still be needed
in A ugust to complete the crop due to
continued low sub-soil m oisture.
Even though there should be good
crops in both corn and beans, the
m arket prices and world production
will be the determ ining factors in
w hether a profit will be realized.
Farm ers will, however, be able to
take less per bushel because of larger
production per acre.
H og and cattle producers are in a
break even to small profit position.
Every tim e prices s ta rt up, the
dem and slips and consumers tu rn to
other sources of protein.
Our overall economy has been flat
w ith farm ers and rural businessm en
buying only w hat is necessary.
In terest rates are crippling our farm

Advanced in Sioux City
R .E . Hagen, president, Security
N ational B ank of Sioux City, has
announced the following promotions:


economy. We are still looking for the
ease in interest rates th a t h asn ’t

hold off on capital outlays until rates
H ousing sales and construction are
alm ost non-existent, and prices in the
real estate m arket are beginning to
soften, especially for buyers who can
Group 11
pay cash.
Chairm an William Logan, presi­
Consumers are looking for b a r­
dent, S tate Central Savings Bank, gains and delaying purchases as long
Keokuk: Group
as possible.
11 businessm en
All together, business and agricul­
and farm ers are
ture in Group 11 are stream lining an£P
feeling the severe
consolidating while optim istically
strain of continu­
looking to the coming years under the
ing high interest
Reagan adm inistration.
rates and slug­
Group 12
M any farmers are
Chairm an Ed Norland, vice
still reeling from
president, Iowa T rust & Savings
the blow inflicted
Bank, Em m etsby the failure of a
burg: Crop condi­
local grain eleva­
tor. Autom obile dealers are selling tions look very
out and closing up shop. A large good.
departm ent store is even now holding rains all sum m er
have made for
a going out of business sale.
Times are tough, and those who are very good crop
not able to ad ju st are being driven prospects. Live­
stock operations
On the more positive side, farm ers have not had a
had a very good year last year which good year; how­
provided a dim light during a very ever,
im prove­
dark period. This year also looks to be m ent in the hog m arket the last few
pretty good for farm ers in our area, m onths has helped the hog producers.
although some have been badly hurt
The demand for feeder cattle loans
by early rains. New industrial plants is much lower th an normal because of
in our area have been able to make losses suffered the p ast two years i ^
efficient use of their technological feeding operations, and high interest
advantages over older plants to rates. Our area is very dependent on
develop their m arkets and strengthen the health of the agricultural
the bottom line, while the older plants economy.
William O. W ogstad to vice
president-investm ents, Scott Otis to
correspondent bank representative
and Diane L. Spain to m anaging
officer of the b an k ’s N orthside
M r. W ogstad joined the b a n k ’s
investm ent departm ent in 1978, and
in 1979 was prom oted to senior
investm ent officer. He is a graduate
of Bradley U niversity in Peoria. Mr.


Can't leak, can't dry out.
S ta m p s
crisp and clean every time.
be m ade any size. Purple, red or
black ink.

Manufacturers of Marking Products Since 1880

DES M O IN E S. IO W A 5 0 3 0 6
PHONE 1515) 2 8 8 -7 2 4 5

estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



Spain has been w ith the bank since
1979 as teller operations supervisor,
and was elected an officer in 1980.

Anita Remodeling Completed
A m ajor remodeling has been
completed at the A nita S tate Bank,
according to Jim Chelesvig, p re sk
The to tal interior was re-organized
to improve space utilization and
operating efficiency. The newly remodeled facility now has five office^
and a directors’ conference room on
the main level.
A distinctively traditional design
was used to compliment the original
architecture of the building. Tha*
main lobby features oak woods ana
three large brass chandeliers.
Office Concepts, L td. of W aterloo
was in charge of the entire project.
Local contractors and suppliers w e r ||
used throughout the project.


A Growing Iowa
Banking Company
Adds A

$44 Million Bank


,Disqm ban



is i

As of July 1, 1981, the Fort Madison
Bank & Trust Co. became a part of
Banks of Iowa, Inc. Making this
large and strong banking organiza­
tion in Iowa even more substantial.
As of June 30, 1981, $1.36 billion in
assets (plus the $44 million added as
of July 1, 1981) stands behind each
of the ten Banks of Iowa, Inc. banks.
That’s financial capability!

Banks of Iowa

520 Walnut, P.O. Box 10317
Des Moines, Iowa 50306
Member Banks:

Burlington — First National Bank
Cedar Falls — Cedar Falls Trust and Savings Bank
Cedar Rapids — The Merchants National Bank of Cedar Rapids
Council Bluffs — Council Bluffs Savings Bank
Davenport — First Trust and Savings Bank
Des Moines — Valley National Bank
Dubuque — Key City Bank And Trust Company
Fort Madison — Fort Madison Bank & Trust Co.
Ottumwa — Union Bank and Trust Company
Sioux City — First National Bank in Sioux City
Non-Banking Subsidiaries:

Banks of Iowa Computer Services, Inc. — Cedar Rapids,
Des Moines, Sioux City and Waterloo
B1 Mortgage Company, Inc. — Omaha and Lincoln, Nebraska:
Cedar Rapids, Iowa
Federal Reserve Bank of St. Louis

N orthw estern Banker, Septem ber, 1981


Io w a N ew s

Iowa Bankers Use Mail Ballot to
Elect New Officers for 1981-82 Term

joined Farm ers S tate Bank a t
Plainfield. In 1966 he moved to th®
Clarke County S tate Bank at
Osceola, and a year later in 1967 was
ESU LTS of a mail ballot conduc­ with a BS degree in business named president of Citizens Savings
ted in A ugust to elect new adm inistration. He returned to his Bank in Sac City, the post h ^
officers of the Iowa Bankers native town of H opkinton and
continues to hold a t this tim e.
Association for 1981-82 will be worked in the Citizens S tate Bank for
Mr. Spearm an is a p ast president
announced Septem ber 22 during the 6x
/2 years. In 1954 he started the of the Sac County Bankers A ssocia­
annual IBA convention in Des South Story Bank & T rust in Slater tion, served on the IBA legislative
and has been its chief executive comm ittee for 10 years and is a
Scheduled to advance from presi­ officer throughout th a t period.
member of the board of directors or
dent-elect to president of the
The bank a t 1980 year-end had Iowa Bankers M ortgage Corpora­
association is Thom as C. Dunlap, deposits of $11,500,000.
tion. Mr. Spearm an also has been
chairm an and president of the South
extremely active in civic life,
Story Bank & T rust at Slater
including serving as president of th a
pictured with convention program .
Mr. Pike is a native of Brownsdale, Country Club, Chamber of Com m ercé
He will succeed Edw ard L. Tubbs,
and Kiwanis Club there in past years.
chairm an of the M aquoketa S tate M inn., where he was born October 20,
Bank in M aquoketa and chairm an of
the executive com m ittee a t F irst
Council Bluffs Elections
Central S tate Bank in D eW itt, where M inn., in 1940, working there until he
M arilyn H ughes has been ele c te d
joined the U nited S tates N avy in
his son, Alan Tubbs, is president.
of the F irst N ational B ank of
1942. D uring World W ar II he was in
Council Bluffs.
the subm arine service, serving
M rs.
H ughes
aboard the USS Sailfish in the Pacific
joined the bank
in 1979 as adm in­
Upon his return to A ustin in 1945
he joined Geo. A. Hormel & Co.,
ta n t in the ac­
rejoining F irst N ational B ank in
counting dep art­
A ustin a year later. From 1948-57,
m ent. She was
Mr. Pike was with Travelers
elected account­
Insurance Company, startin g as a
ing officer in
farm loan appraiser, then serving as
assistan t m anager for a four-state
The following
area before resum ing his banking
The announced candidate for the career.
office of president-elect is L.C.
He joined the Farm ers Savings
“ B ud” Pike, president of the Bank in G rundy Center in October,
Farm ers Savings Bank in G rundy 1957, became a director of the bank in Yochum to branch m anager; Vern
Center. Mr. Pike has been IBA 1964, and has served as president and Knop to personal banking area
treasurer the p ast year. Nom inated to chief executive officer since 1972. He supervisor; Charlene M artin a n (^
succeed him as treasurer is Russell served in several posts w ith bankers M ary W ay to personal bankers; Jan e
W. Spearm an, president and tru s t associations before being elected IBA Tedesco to adm inistrative assistan t,
officer of Citizens Savings Bank in treasurer. He is a p ast president of and Susan W hite to supervisor of
Sac City. Candidacies of both men the G rundy County Bankers Associ­ personal banking support staff.
were endorsed a t the group m eetings ation, past chairm an of IBA Group 7
earlier this year.
and served on the IBA legislative Capital Stock Increases
council. As group chairm an and later
Thom as C. Dunlap
The following banks have increased
Mr. Dunlap is a past president of as treasurer, M r. Pike has been a capital stock recently: Brenton B ank
the Story County Bankers A ssocia­ member of the IBA board of directors & T rust Co., Adel, from $500,000 t<^
tion, served as secretary and then and executive committee. He has also $1 million by transfer from surplus;
chairm an from 1976-78 of Group 2 of been very active in civic endeavors in Commercial T ru st & Savings Bank,
the IBA , and in th a t office was a G rundy Center.
Charles City, from $200,000 to
Russell W. Spearm an
member of the IBA executive council.
$400,000 by transfer from undivided
He also served for three years on the
M r. Spearm an was born in M t. profits; W est Des Moines Statap
executive council of the Iowa Pleasant on Ju ly 3,1931, and grew up Bank, from $1.44 million to $2.88
Independent Bankers, serving as on a Henry County farm near Salem. million by transfer from surplus;
president of the body in 1976-77. He He attended Iowa W esleyan College Cleghom S tate Bank, from $50,000
is presently serving a second term on and served w ith the Iowa National to $200,000 by transfer from
the Iowa Transfer System board of G uard from 1948 to 1956 at M t. undivided profits, and Le M a r ^
Savings Bank, from $400,000 to $1.2
A native of H opkinton in eastern
Mr. Spearm an began his banking million by transfer from undivided
Iowa, M r. Dunlap attended the career in 1952 w ith the Hillsboro profits. Bankers T rust Company of
U niversity of Dubuque following Savings Bank. He was associated Des Moines increased capital stock
World W ar 11 service in the Naval Air w ith the F irst N ational B ank in $500,000 by sale of 5,000 shares o | |
Corps, and was graduated in 1948 M ason City from 1957 to 1961, then $100 par preferred stock.


N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


we Have What No Other
Correspondent Bank Has!
It’s easy to talk in generalities about a correspondent
bank’s “expertise,” but when you get right down to it,
a bank is only as good as its people. Specifically
speaking, at Valley Bank, we have three of the top
professionals in the field. Our specialized bankers

are available to give you the informative answers
you need to produce maximum results. W e have
what no other correspondent bank has — Verne
Bates, Alton McGlothlen, and Dennis Hagedorn.
Call today, or stop by and meet them personally.

Valley N ational B ank ili
Member F D I C


Main Office — Sixth and Walnut ■ Des Moines, Iowa 50304

Verne C. Bates
Vice President
and Trust Officer

Allon McGlothlen
Vice President
Operations Division

Dennis J. Hagedorn
Vice President
Money Desk

T rial B a la n c e -P r e p a re d B y & B a n k s o f Io w a C o m p u te r S e rv ic e s Inc.

Check Processing
and Transit Services


Personal Trust

S e rv ic e s

Fed Funds

Excellent Availability
Of Funds

a"d Sold

B e n e f it P la n

E m p l°y e e
S e rv ic e s

Collection Services

|e r v « c e s


V a te y N atio n al B ank Ä
Federal Reserve Bank of St. Louis


Io w a N ew s

Stand Alone ATM Building in Fort Madison

FORT MADISON Bank and Trust Co. has installed a free standing ATM building. The
building was purchased from a bank in Galesburg, III., and was originally built by Diebold.
The ATM is an NCR to match existing in-bank machines. Fort Madison Bank & Trust was
recently purchased by Banks of Iowa.

ree in industrial adm inistration a n ^
political science from Iowa State
U niversity, and a law degree from
Drake U niversity School of Law. He
was m ost recently with the firm of
A bbott,
Silver and
D avenport.
Mr. Sleep started his banking
career w ith the Citizens Savings
Bank in Anam osa in 1969, and was
later named cashier of the C it^
National Bank of Cedar Rapids. He
joined the bank in M ason City as
correspondent banking officer in
Mr. Knapp has a BS degree i #
business adm inistration from the
U niversity of Nebraska-Lincoln. In
1981 he attended the U niversity of
N ebraska-Om aha as
candidate m ajoring in banking a n #
finance. He was previously a loan
counselor w ith Postal T hrift Loans in
Council Bluffs.

ITS, Credit Union League Reach Agreement


N IN T E R IM agreem ent was
reached July 14 by the Iowa
Transfer System (ITS) and the Iowa
Credit Union League, according to O.
Ja y Tomson, ITS president and
president of Citizens National Bank,
Charles City, enabling Iowa credit
unions to hook-up to the s ta te ’s
electronic banking network and
provide electronic funds transfer
service to thousands of credit union
members statewide.
Mr. Tomson said th a t the
ITS-credit union agreem ent is one of
the first of its kind in the United
S ta te s —a statew ide credit union
organization joining a banking-affili­
ated switch.
ITS executive director Dale Dooley
said th a t he expects several of the
sta te ’s larger credit unions to actively
participate in the system w ithin the
first year of the agreem ent. He also
said th a t U niversity of Iowa Credit
Union, Iowa City, would be the first
credit union participant.
“ Our agreem ent shows the contin­
ued potential for a statew ide
electronic financial network such as
ITS and the need for all financial
institutions to share facilities for
electronic funds tra n sfe r,’’ said Mr.
Tomson. “ Credit union members will
be able to access all tem inals for
personal business 24 hours a day. We
look forward to a long and m utually
beneficial relationship with the
s ta te ’s credit unions.’’
ITS, which earlier this year began

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


sharing arrangem ents with bank
groups in South D akota and
N ebraska, currently serves 103 banks
in 60 communities with
autom ated teller term inals located in
banks and off-premise leocations
such as grocery stores and shopping
m alls.
ITS is an affiliate of the Iowa
Bankers Association.

Manly State Bank Buys
Hanlontown, Retains Office

The Citizens Savings Bank
Hanlontow n has been merged into
the M anly S tate Bank and an office is
being retained at Hanlontow n,
according to Tom W. M asey,
president of M anly S tate Bank. Mijp
M asey also announced th a t directors
have approved a change in name for
M anly S tate Bank and it is now
known as F irst S tate Bank. The
m erger and name change has b e e ^
Mason City Elections Told
approved by the Iowa departm ent of
F irst N ational Bank of M ason City banking.
has announced the following elec­
The M anly S tate Bank offices a t
tions: Gary K.
K ensett and Plym outh will continue
Koos to vice
as they were before, under the n e #
F irst S tate Bank name.
tru s t
Hanlontow n
Robert Sleep to
purchased from the Hall family,
assistan t
long-time owners of Citizens Savings
Bank. R obert W. Peterson, who h a #
Steven R. Knapp
been executive vice president of
Citizens Savings, will continue in
loan officer.
th a t capacity as m anager of the
M r. Koos re­
Hanlontow n office, Mr. M asey
ceived a BS degstated.
A t m id-year, M anly S tate Bank
had $19.8 million deposits and
Citizens Savings had $6.3 million
deposits, giving the merged bank a
base of $26.1 million com bine#
Mr. M asey also announced th a t the
building adjoining the M anly bank
has been acquired and remodeling is
underway to increase available offic#
space for the bank staff.


< ^ ' S -K $



O ^ & JP * y^>

' <£-eV * ft«*



Over 180 Iowa financial
institutions have used
Kirk Gross Co. services!
Do they know something
you don’t?
Kirk Gross Co. has a solid reputation in Iowa
for designing new financial institutions and re­
modeling present ones. If you are thinking abI out a new facility, put the responsibility and
¡0 worrying in the hands of the TURN KEY proL
fessionals. We keep up on the latest ideas on
planning, designing, construction and fur­
nishings. That’s why we have completed more
than 180 projects since 1971. The best part of
this unequaled record is that so many are re­
peat, satisfied customers. Let Kirk Gross Co.
explain how our complete TURN KEY prog­
ram will save you time and money.
_______: ________ I _

l « / _

If you’d like to know what other bankers know
about Kirk Gross Co., call at your earliest
opportunity. (How about right Now! Phone

I _________ __ . ~
Federal Reserve Bank of St. Louis

4015 Alexandra Drive
P.O. Box 2097
Waterloo, Iowa 50704

electronic banking programs. M^
Quigley joined Bankers Trust m
June, 1978 as a management trainee.
He received his BBA degree from the
University of Iowa.

Raymond G. Johnston, president
and chief executive officer of United
Central Bank of Des Moines, N.A.
has announced the election of Martin
C. Sprock as financial planning
officer of the trust department.
Previously, Mr. Sprock was associ­
ated with Coopers and Lybrand
Certified Public Accountants in Des
Moines as a tax supervisor.
Mr. Sprock received his bachelors
degree at Drake University where he

majored in economics and account­
ing, and his JD degree at Drake
University Law School. He is also a
certified public accountant.



Herman C. Kilpper, president and
chief executive officer of Bankers
Trust Company, has announced the
promotion of Steven L. Quigley to
corporate services officer, responsible
for the management of the bank’s

John Ruan, chairman of the board
and chairman of the executive
Bankers Trust,
has announced
the election of
Jack C. Pester,
chairman of the
board of Pester
Corporation, to
Trust board of
Before assum_
ing chairmanship of Pester Corpor­
ation, Mr. Pester was president of
that group of corporations which
refine and market petroleum products
throughout the Midwest and Rocl#
Mountain states.
Mr. Pester holds a bachelor’s
degree from Drake University.

United Central Bancshares, Inc.,
has announced the appointments of
Gene L. Johnson as president of
United Central Bank & T ru #
Company of Estherville, and of Allen
R. Kloess as president of United
Central Bank & Trust Company of

visit OUÏ booth

Stephens Bldg
Des Moines
5 1 5 /2 8 4 -1 9 3 0

N orthw estern Banker, Septem ber,
Federal Reserve Bank of St. Louis



Mr. Johnson was elected to the
Estherville position to succeed
George H. Shadle, who has résigné^
to pursue other interests. Mr.
Johnson formerly was president of
the Kalona bank, a position he has
held since 1972.
Mr. Kloess, who was elected t#
succeed Mr. Johnson at Kalona,
formerly was vice president, cashier
and secretary of the board of United
Central Bank & Trust Company of
Marengo, a position he has held sine#




Raymond G. Johnston

Robert G. Millen

Ivan L. Johnson

Eddie A. Wolf

President and
Chief Executive Officer

Executive Vice President

Senior Vice President

Senior Vice President
Correspondent Banking

William B. Greaves

Cyrus D. Kirk

Raymond A. Schneider

Max W. Evans

Vice President
Correspondent Banking

Vice President
Correspondent Banking

Correspondent Bank Officer

Vice President
Farm Management

Gene E. Loverink

Jack R. Schreiber

Ronald W. Nienow

Harry A. Wilmer

Vice President

Vice President and
Senior Trust Officer

Vice President

Senior Vice President
Senior Loan Officer

We have changed our name since last year’s
convention, but one thing hasn’t changed . . . our
commitment to provide Iowa’s banks and bankers
with the best correspondent services possible.
The United Central Bankers pictured will be
at the convention to talk to you about how UCB can
help you.

By the way, one other thing has not
changed. We are still located at Locust and Sixth in
downtown Des Moines, only one block from the
Marriott Hotel. So stop by and see us when you are
in town or call us any time at 1-800-362-1615.




DES MOINES, N.A. ■ (515) 245-7111 ■ M EM BER FDIC
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


Iowa News

Mt. Pleasant B&T Names
Don Carmody as President
Donald F. Carmody, 33, has been
appointed president of the Mt.
Pleasant Bank & Trust Co.,
according to Gerald L. Nordbrock,
chairman of the bank. Mr. Carmody
formerly was vice president in the
correspondent banking department
at Bankers Trust Company, Des
Moines. He succeeds R. J. Bontrager,
who resigned September 1 to pursue
other interests.
Mr. Carmody
is a native of
Melrose, la., and
attended Center­
ville Junior Col­
lege and Drake
University. He
joined Bankers
Trust Company
in 1969 and held a
variety of posi­
tions with that
bank in commer­
cial loans, instalment lending and
correspondent banking. He is a
graduate of the ABA Commercial
Lending School at the University of
Oklahoma in Norman.
Don and Mary Lou Carmody will
move to Mt. Pleasant as soon as
housing accommodations are ar­
New Examination Supervisor
N. Dean Rowland has been named
bank examination supervisor for the
ment of B anking.
Mr. Rowland has
been with the
Banking Depart­
ment since 1974
and has most
recently served
as a bank exam­
ination analyst
worked in the
Denison, Le Mars, West Union and
Des Moines examining districts.
His new duties will include
responsibility for bank holding
company applications, changes in
controlling interest and the examina­
tion of 554 state chartered banks. Mr.
Rowland succeeds Randy Steig, who
has accepted a position with the Iowa
Bankers Association.
Named Office Manager
Kimberly Tierney Keller, a loan
officer at Peoples Trust and Savings

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


There were 560,460 more average
shares outstanding during the 198#
Other income increased 46 %
during the first six months to $6.611
million primarily benefitting from
higher income from Hawkeye’s no£
bank subsidiaries and other fee
climbed at a slower pace than other
income amounting to $18.928 million
in the first half, a 32% increase
Fed Approves Application
Higher salary expense accounted for
The Federal Reserve Board has the largest share of the increase.
announced its approval of the
application of First Security Ban- Neil Milner to Receive
shares, Inc., Lake Park, to become a ASAE Key Award
bank holding company by acquiring
Security State Bank, Lake Park, and
Milner has been named a recipient of
Security State Bank, Hartley.
Society of Asso­
ciation Execu­
Mt. Ayr Bank to Join
tives’ (ASAE)
Hawkeye Bancorporation
Key Award, the
It was announced recently that highest honor the
majority stockholders of Security national associa­
State Bank of Mt. Ayr have reached tion bestows on a
an agreement with Hawkeye Bancor­ member who is a
poration, Des Moines, to become the chief staff officer
company’s 28th affiliate bank. Terms of an association.
of the proposed cash acquisition, The IBA office
which is subject to Federal Reserve was notified in August with word of
approval, were not disclosed.
the award.
Security State Bank has assets of
ASAE annually gives the Key
over $34 million. It is one of three Award to “those who demonstrate
banks in Ringgold County and exceptional qualities of leadership #
represents nearly two thirds of the their own association, and who
market share. Ringgold County, of display exemplary devotion to
which Mt. Ayr is the county seat, is voluntary membership organizations
located in extreme southern Iowa as a whole.’’ Robert L. Skinner,
bordering on Missouri. This is a new executive president of the Iowa F e #
geographic market for Hawkeye.
and Grain Association, initially
Hawkeye Bancorporation, with nominated Mr. Milner for the award.
assets of over $1.2 billion, presently
Letters of recommendation fol­
has 26 affiliate banks. In addition the lowed from U.S. Senator Charles
acquisition of Jackson State Bank, Grassley, U.S. Representative Jam #
Maquoketa, was recently approved Leach, U.S. Representative Tom
and will be completed in the third Harkin, Governor Robert Ray, ABA
executive vice-president Willis W.
Alexander, and IBA general counsel
A. Arthur Davis.
Hawkeye Reports Income
Hawkeye Bancorporation’s income
after securities transactions for the earned designation as a Certifieed
second quarter of 1981 was $3.202 Association Executive (CAE) will be
million, an increase of 29% over the recognized, along with other Key
$2.479 million earned in the same Award recipients, at ASAE’s annu#
period of 1980. This amounted to $.64 meeting to be held October 10-14.
per share compared with $.60 a year
earlier, according to Paul D. Dunlap, Elected to Boone Board
Robert F. Scott, president
Hawkeye’s chief executive officer.
For the first six months of 1981 net Boone State Bank and Tru
income was $6.126 million, 26% Company, has announced the
higher than the $4.852 million earned election of Jim J. Anderson to the
in the prior year period. Earnings per board of directors. Mr. Anderson is a
share for the first six months were prominent Boone County farmer a i^
$1.31 versus $1.18 a year earlier. cattle feeder.
Bank, has been named office manager
of the new office being constructed by
the bank at the Westroads Center on
Highway 92 West in Indianola.
Ms. Keller joined the Peoples Bank
staff in 1978 as a consumer loan
officer, following her graduation from
Simpson College. At Simpson she
received a BA degree in English and
American studies.


] Marquette’s
' resourceful team
Dick Holmes. Jack Campion. They come backed by the
resources of Marquette to help you satisfy your customer’s needs
and your own investment goals.
Dick Holmes, veteran correspondent banker, can help you
answer today’s tough banking questions; how to compete in
today’s fluctuating markets and how to operate within new
regulations. He also can give you fast response to your needs for
overlines and participations, wire transfers and collections.
Jack Campion, of our Investment Department, can advise on your portfolio needs,
based on your assets, liabilities, tax management and goals. He will help you develop
strategies best for your bank and its unique situation.
Marquette is acutely aware that these are complex and difficult
times for bankers. Especially Iowa bankers whose customers are
charged with feeding the United States and the world in the face
of uncontrolled costs.
Our team was chosen for professional skill and understanding
of your problems and needs. They’ll be in Des Moines and at your

See you September 20, 21, 22!

A Marquette National Bank

M e m b e r FDIC

777 Marquette Avenue, Minneapolis, MN 55480

Your Complete Correspondent
Federal Reserve Bank of St. Louis

N orthw estern Banker, Septem ber, 1981


Iowa News

Six Hawkeye Bancorporation
Appointments Announced
Paul D. Dunlap, president of
Hawkeye Bancorporation, has an­
nounced the appointment of Donald
R. Runger and Lewis L. Lowe to sen­
ior vice presidents and James M. Earley to vice presidents-trusts. KeithD.
Engquist, president of Hawkeye
Insurance Services, Inc. and Central
Life Insurance Co., will assume
responsibility for developing a Nebraska, and is a member of the
state-wide farm real estate operation National Association of Realtors
as part of Hawkeye’s expansion into and the Farm and Land Institute.
farm management services.
Denis G. Wilcox has been named
president and chief executive officer
of Jasper County Savings Bank in
Newton, replacing Mr. Runger. Mr.
Wilcox joined the Bank in 1964 and
most recently has been executive vice
president-commercial, real estate and
instalment loans.
Jack Hoogeveen is the new
president and chief executive officer
of Lyon County State Bank in Rock
Rapids. He has been with the bank 19
years and most recently was
executive vice president and trust
officer. Mr. Lowe will remain



Mr. Runger will assume responsi­
bilities for corporate administration
of the company’s 26 affiliate banks.
He has been president and chief
executive officer of Jasper County
Savings Bank in Newton since 1971,
and has been named chairman of the
Mr. Lowe has been president of
Lyon County State Bank in Rock
Rapids since 1970 and has been
associated with Hawkeye since 1959.
He is a graduate of the University of
In his newly-created position, Mr.
Earley will be responsible for
statewide trust services for Hawkeye
affiliate banks. He earned both his
undergraduate and JD degrees from
the University of Iowa. He has been
senior vice president, senior trust
officer and director of United State
Bank in Cedar Rapids.
Mr. Engquist has been a broker
since 1960 and has been associated
with Hawkeye since 1971. He is a
graduate of the University of
Digitized Nfor
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


period of 1980. For the second
quarter, income before securiti®
transactions was $3,904,000 or $1.68
per share compared with $3,438,000
or $1.48 per share in the second
quarter of 1980.
These figures reflect the tot®
financial statements of the member
banks and non-banking subsidiaries
in nine metropolitan communities
located throughout Iowa. Banks ^
Iowa, Inc. is a publicly-held bam!
holding company with approximately
80% of its stockholders residing in
Net income for the six months w^|
$6,580,000 or $2.83 per sha®
compared with $6,403,000 or $2.76
per share for the same period a year
ago. Net income for the second
quarter was $3,339,000 or $1.44 p ^
share compared with $3,294,000 or
$1.42 per share in the second quarter
of 1980.
Earnings per share were computed
for the periods, giving effect to tlm
10% stock dividend paid March 15^

Advanced in Davenport
Davenport Bank and T ru ^
Company has announced the promo­
AIB Programs Featured
tion of Richard R. Horst to vice
president-cashier. Mr. Horst joined
At IBA Convention Booth
The American Institute of Banking the bank in 1980 as corresponde^
has recently introduced a new banking officer.
volunteer structure which will
facilitate increased expertise in
planning for the organization, course
offerings, and publication of the
groups educational programs. Iowa’s
state committee is chaired by Doug
Brown, vice president at Northwest­
ern National Bank in Sioux City.
Bankers from around the state will
be able to discuss A.I.B. course
offerings and see recently introduced
new texts during the Iowa Bankers
M. Shrader was promoted
Association annual convention Sep­ to James
correspondent banking officer. Mi^
tember 21st and 22nd. The A.I.B. Shrader, who joined the bank in 197®
will have a booth stocked with has held several positions, most
information on courses and the recently as assistant marketing
simple procedures necessary to form officer.
a study group. Anyone interested in
discussing A.I.B. is invited to stop
by the booth in the Exhibit Hall at Branch Bank Remodeled
the Marriott Hotel.
The Jasper County Savings Bank
of Newton has announced the recent
First Half Income Reported
remodeling of its local branch facility
Banks of Iowa, Inc., reported according to Denis G. Wilcox,
income before securities transactions president. The new look includes the
for the six months ended June 30, use of large graphic murals, similar to
1981, of $7,601,000 equal to $3.27 per those chosen for the main facility.
share, up 11.5% from $6,815,000 or Office Concepts, Ltd. of Waterlq^
$2.93 per share during the same handled the project.

IBIS does it all.

Because bank insurance
is all we do.
Over a decade ago, Iowa
Bankers Insurance and Services was
created for a single purpose. To serve
the insurance needs of Iowa banks.
And that’s just what we’ve done.
With traditional coverage such as
credit life and D & 0 liability. With
special employee benefit packages
such as health and life. And by
creating beneficial new services for
banks such as the IDEA Annuity.
Our years of experience have
taught us that no two banks have the
same insurance needs. So we tailor all
our coverages, making sure precise
insurance needs are being met at an
affordable cost.

We’ve also developed strong
working relationships with many
major insurance companies, making us
an independent agency. It’s our job to
find the best product at
the best price.
And, most importantly, we’ve
cultivated a staff whose expertise
in the fields of banking and insurance
are unmatched by any other bank
insurance agency in the country.
658 Iowa banks own IBIS. Your
bank is one of them. So why not give
us a call today and compare?
You’ll be surprised at how
affordable the best coverage
can be.

Iow a B ankers Insurance Services, Inc.
430 Liberty Building, D es Moines, Iowa 50308 (515)286-4300
Call our toll FR EE WATS num ber 1-800-532-1432

The rig h t com bination.
Federal Reserve Bank of St. Louis


Iowa News

La Crosse, W is., Bank
Names New Director
Terry C. Gillette was named to the
board of directors of First Bank
(N.A.), La Crosse, Wis. at the recent
quarterly meeting.
Mr. Gillette, 43, is president of
Gillette Industries, a manufacturer
and sales organization of Bill Blass
downfilled outer wear, with sales
offices in New York and London. He
is associated with the law firm of
Johns, Flaherty & Gillette, La
First Bank La Crosse is a division
of First Bank (N.A.) which, with the
Milwaukee division, represents Wis­
consin’s fourth largest bank with
assets of more than $600 million.
First Bank (N.A.) is part of First
Bank System, Inc., the regional bank
holding company headquartered in
Minneapolis-St. Paul.



'Accepted Sale Registers by Bank
Clerks Everywhere"

info rm a tio n

w rite

O akland, Iowa

Gross, KirkW aterloo....................................................129

September, 1981
Acorn P rin tin g ..............................................................130
American Bankers A ssociation.................................... 31
American Express Money Orders ............................... 9
American Express Travelers Cheques.......................... 25
American Nat’l Bk. &Tr. Co., Chicago ...................... 109
American Nat’l Bk. & Tr. Co., St. P aul.......................... 71
AmericanTr. & Sav. Bk., Dubuque .............................. 99
Associates C om m ercial................................................27
Banco Financial/Lease N orthw est.............................. 65
Bank Building Corp...................................................... 139
Bank of North D a ko ta ....................................................77
BankersTr. Co., Des M o in e s........................................ 96
Banks of Iowa............................................................... 125
Banks of Iowa Computer S e rvice ....................... 106-107
Beh, Carleton D.............................................................110
Chase Manhattan Bank..................................................13
Chiles, Heider& Co., Om aha...................................... 108
Chilton Corp................................................................... 7
Colorado Nat’l Bk., Denver............................................81
Commerce Bank N .A ., Kansas C ity .............................. 33
Continental Bank, C h ic a g o .......................................... 21
Davenport Bk. & Tr. Co................................................. 105
Deak P ere ra..................................................................121
Dean, Witter, Reynolds..................................................12
Des Moines Stamp ......................................................124
Downey, C.L., Co........................................................... 69
Drovers Bank of Chicago ............................................119
Financial Institution Services ...................................... 53
First Nat’ l Bk., Denver....................................................87
First National Bank, Kansas C ity.................................. 51
First Nat’ l Bk., L in c o ln ..................................................95
First Nat’ l Bk., M inneapolis........................................ 113
First Nat’ l Bk., Omaha ..................................................91
First Nat’ l Bk., St. Joseph ............................................92
First Nat’ l Bk., St. P a u l..................................................63
First Nat’ l Bk., St. Paul (Bonds).................................... 73
First Nat’ l Bk., Sioux C ity ............................................ 117
First Stock Yards Bk., St. J o s e p h .............................. 112

Harris Bank, C h ica g o .................................................
Hawkeye Bancorp......................................................... 130
Heller, WalterE., Chicago........................................ 10-11
Hummer&Co., Wayne, C hicago................................. 8
Insured Credit Services.................................................. 49
Iowa Bankers Ins. & S ervices...................................... 135
lowa-Des Moines Nat’l Bk............................................ 140
lowa-Des Moines Nat’l Bk., B o n d s ............................ £¡1
E.F. Kooker& Associates............................................ 104
LaSalle Nat’l Bk., C h ica g o ............................................35
LeFebureCorp............................................................... 3
Life Investors, Cedar Rapids ...................................... 137
Manufacturers HanoverTr. Co., New York
Marquette Nat’l Bk., M inn eap olis............
MercantileTr. Co., St. Louis ...................
Merchants Nat’l Bk., Cedar R apid s..........
Midland Nat’l Bk., M inneapolis................
Minnesota Protective L ife .........................
Mortgage Guaranty Insurance Corp..........

. . .55
. . .79
. .

Office Concepts, W aterloo.......................
Omaha National B a n k ...............................




. . .61
. .136


. . .90
SLTCorporation, St. Louis............................................59
Schweser & Co., Robert, Om aha.................................. 93
Security Nat’l Bk., S iouxC ity...................................... 114
Security Pacific Nat’l Bk., Los A ngeles................. 46-47
Shaw, McDermott & Co., Des M oines........................ 104
StonierGraduateSchool of B anking............................ 29
Packers Nat’l Bk., Omaha.........................
Peoples Bk. & Tr. Co., Cedar Rapids........

Toy Nat’l Bk., Sioux C ity .............................................
Travelers Express Co., M inneapolis............................ 67
United Bank of Denver....................................................85
United Central Bank of Des M oines............................ 131
United Missouri Bk., K an sa sC ity.............................. 115
United States Nat’l. Bk., Omaha.................................. 4-5
Valley Nat’l Bk., Des Moines
Van Wagenen, G.D., Minneapolis

Tom Pohlman

Ba n k
Of Sioux City
An Affiliate of Northwest Bancorporation


... 2

Nat’l Bk. of Commerce, Linco ln...............
Nat’l Bk. of W aterloo.................................
Nat’l Boulevard Bank, C h ic a g o ...............
Northwestern Bell Telephone Co..............
Northwestern Nat’l Bk., Minneapolis
Northwestern Nat’l Bk., Sioux C ity ..........

Your Direct Line to Prom pt, Personal
Correspondent B anking Services

N orthw
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis




Do You Want . . .


Increased Bank Profits?
More Satisfied Customers?
Improved Employee Performance?
All With No Added Cost?

If So Contact Life Investors!
Life Investors can help you in each of these
important areas through our proven . . .

Training Programs.

These Programs Concentrate On:
• TRAINING in Selling Each Bank’s Services
• TRAINING in Effective Selling Techniques
• TRAINING in Cross-Selling Techniques

If Your Answer Is Yes
Call us for assistance at: 319-398-8625





Life Investors Credit In su ra n ce D ivision
4333 Edgewood Road N.E.
Cedar Rapids, Iowa 52499
Federal Reserve Bank of St. Louis

N orthw estern Banker, S eptem ber, 1981


Iowa News

Toy Nat’l Data data processing personnel provided equipment dem onstrations on various
system functions for attending bankers.

Central Information File services and
revealed that in preparation Iot
providing on-line services, Toy began
totally centralizing its data proces­
sing facilities early in 1980.
Being aware of the advantages of
on-line system services since the micP
1970’s, Ken Brooke, vice president,
data processing, related Toy’s
history of “strong and deliberate
approaches to new technical servic^
prior to offering them to custom s
banks.’’ Mr. Brooke emphasized the
bank’s continued attitude of not
necessarily being the leaders in the
introduction of technical develop
ments but rather being certain of
the market needs and demands before
entering the competitive market.
Focusing on management report
capabilities, Leo Stavas, vice p r e ^
dent, correspondent bank depart­
ment, pointed out that during the
time that Toy was analyzing the
marketplace, not only had computer
capabilities improved, but equipmeq^
and software prices had become more
economical as well.
Dale Dooley, executive director,
Iowa Transfer System, up-dated the
guest bankers on developments qf
EFT and ATM services through Iowa
Transfer. Mr. Dooley welcomed the

Toy Will Offer On-Line EDP to Banks
ES Olson, president, Toy National Bank, Sioux City, welL
corned representatives from 60 banks

to a data processing seminar July'
23rd in Sioux City. Mr. Olson
announced Toy’s expansion into

Dale Dooley, exec, dir., Iowa Transfer
System, provided up-date on ITS s e rv ic ^
and capabilities.



Rich Breyfogle, v.p., Toy Nat’l., welcomes Russ Bonander, v.p. and Lyle Impecoven, v.p.
Security Sav. Bk., Larchwood, la., to processing system seminar.

Digitized Nfor
estern Banker, Septem ber,
Federal Reserve Bank of St. Louis


South Dakota and Nebraska bankers
present and informed them of the
co-operative programs between ITS
and neighboring states.
The services introduction portion
of the seminar was followed by
equipment demonstrations conduc­
ted by Toy’s data processir^
personnel. Equipment exhibitors
were IBM, NCR and Northwestern
Following the seminar, guests were
treated to a buffet dinner and fe a tu re
of the Sioux City Rivercade festival.□

This 1958 building doesn’t
look or act its age.
Inside and out, both the form and
function of this bank were recently
updated by Bank Building
Decades of success and growth
had committed Citizens National
Bank to their established location,
and they'd outgrown their building
in the process. Total redesign was
needed. Both inside and outside
wall surfaces were removed and
replaced. Floor area was doubled.
In the process of becoming a more
use-filled building, the new Citizens
has made a strong visual impact on
its community.
This project was completed on

Bank Building

budget and on time, with minimum
inconvenience to customers and
employees. Which comes with
practice: since 1913, Bank Building
Corporation has completed over
8000 projects—many of them
remodeling assignments.
We know' that some older
buildings are right for remodeling,
while others are not. And we’ve
learned to know the differences
between them.
Before your need to remodel or
build becomes acute, please call
Tom Spalding at 314/647-3800. Let’s
become acquainted and share
more information.
Ask us to show you a new
beginning or two.

1130 Hampton Avenue
St Louis, Missouri 63139

Perform ance According to Plan.
Federal Reserve Bank of St. Louis

As bankers,we’ve
never had so much
to talk about.
The winds of
change are
blowing - in the

Iowa B<UlkerS Convention future.
S e p te m b e r 2 0 ,2 1 ,2 2

5 r ic Z r e .'a n d M a m 0 t t H O t e l ( i f
most certainly in banking.
... ,
. ,
We ve never had more pressinq
reasons to get together, discuss these
changes, and listen to some expert
opinions on topics vitally important to

All of us from

D e s M o in e s

the Iowa-Des
Moines will be
there. We look forward to seeing you
and hope you 11 pay a visit to
, , ...
, . ~ »« .
our bank while you re in Des Moines
We promise you a warm welcome!



F irst in Iowa by p u ttin g Iowa first.
M em ber FDIC

An Affiliate of Northwest Bancorporation

7th & Walnut, Des Moines, Iowa 5 0 3 0 4

Lance Davenport
Federal Reserve Bank of St. Louis

Bernie Kersey

Bob Buenneke

John Rigler

Linda Collins

(515) 2 4 5 -3131

Gariy Frandson

Mark Conway

Dorothea Wolfe