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iker views d(
:onvention p
sto ck and a<
kers conven
Federal Reserve Bank of St. Louis

"A t MNB we will respond quickly and
accurately to your needs for overlines
and liquidity loans. Because we
realize the way these transactions are
handled can have a critical impact on
operational procedures and your ability
to serve customers.
"O u r first priority is to provide
superior customer service. To be a
partner in helping meet challenges
and goals. We begin by developing an
in-depth knowledge of each individ­
ual correspondent bank's objectives.
Then, we provide our expertise and a
wide range of services to help attain

these goals with profitable results.
"By consistently delivering a high
level of performance and generating
fresh new approaches to fulfilling
needs, we are able to build confidence
and that special bond of trust that
comes from working and succeeding
Learn more about how MNB can
work for you. Call 319/398-4320 or toll
free, 1-800-332-5991 and talk to Terry
or any of our other MNB
Correspondent Bankers: John E.
Mangold, Stan R. Farmer or Jerry N.

Merchants National Bank
Cedar Rapids, Iowa 52401


Member F.D.I.C.
Federal Reserve Bank of St. Louis

>en it comes to custom er preference’,
th er travelers cheques don’t stack up.
In fact, they d on ’t even
3me close. In a recent national
rvey, a majority o f travelers
que users said they want
lerican Express® the next
|me they buy travelers cheques.
W h ich isn’t surprising
hen you consider that only

Am erican Express offers five spe­
cial services to help protect your
customers’ vacation if their trav­
elers cheques are lost or stolen.
W e can help cancel lost credit
cards, issue a temporary ID, and
cash a personal check for up to
$200. W e even have a 24-Hour

Travel Service Hotline if your
customer needs help changing
travel plans. A n d an Emergency
Message Service if they want to
send a message hom e.
C om bine all that with our
60,000 refund locations and
nearly 1000 worldwide Travel

Service Offices and you’ll see why
most travelers cheque users feel
A m erican Express is the best brand.
S o d on ’t settle for less. A
majority o f travelers cheque users
want A m erican Express. A n d if
you d on ’t have them, they may start
asking around.

A m erican Express Travelers C heques

<2 .







Federal Reserve Bank of St. Louis


A recent study shows that 64% o f travelers cheque users want to buy
A m erican Express the next time they buy travelers cheques.
© A m erican Express Com pany 1982



SEPTEMBER 1982 • 89th Year • No. 1428

A typical midwestern prairie scene proclaims the fullness of a bountiful harvest
with which the land is blessed this year and the beauty of the midwestern skies
and sun that sustain its life for the use of mankind worldwide. This meditative
photo was made available for our readers through the courtesy of the Nebraska
Game and Parks Commission.



Annual livestock and ag outlook

Exclusive survey gives area bankers appraisal of market


ABA convention program

Atlanta convention will develop ‘competitive edge’


Community banker views deregulation

O. Jay Tomson looks at the system, what public wants


Banco announces major overhaul

Two vice chairmen, eight regional presidents named

95 96th annual convention program
98 You will see them
at the convention
108 Iowa group chairmen report
area conditions

116 Iowa bankers elect
1982-83 officers
120 IBA leaders look at
their industry
126 Des Moines News


Letters to Editor
Bank Promotions
Corporate News
What’s New


Twin Cities
North Dakota
South Dakota


Nebraska Group Report
Advertisers Index

305 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor


Ben Haller, Jr.

Steve Burch

Becky McBurney

Malcolm K. Freeland


Field Representative

Field Representative

Debbie Hlbbert

Glen Hicks

Paul Masters

N o. 1428 N orthw estern Banker (U SPS 397-620) is published m onthly b y the N orthw estern Banker Com pany, 306 Fifteenth Street, Des
M oines, Iow a 50309. Subscription $1.50 per copy. $15 per year. Second Class posta ge paid at D es M oines, Iow a and at additional mailing
office. P O S T M A S T E R : Send all address changes to N orthw estern Banker, 306 Fifteenth Street, D es M oines Iow a 50309.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

For a correspondent banking network
with services in over 150 countries,
look to Bank of America.

Through a single Bank o f America
account, you can do business virtually
anywhere in the world.

In Asia, we have branches from Japan to
India. In Latin America and the Caribbean,
we stretch from Uruguay to Guatemala. In
Europe and the Middle East, we cover 22
countries from Ireland to Pakistan. Plus, we
have affiliates, subsidiaries and representa­
tive offices around the world.
Here in the United States, BankAmerica
International, our wholly-owned subsidiary,
gives you coast-to-coast service with 12
offices from New York to San Francisco.

BankAmerica International is so large, in
fact, that based on deposits, it would rank
as one of the 50 largest banks in the U.S.
Dealing with us, you don’t need a dif­
ferent correspondent for every country With
Bank of America, you’ve got the world.
Bank o f Americas global network o f offices
can provide a broad range o f correspondent
services:from import-exportfinancing and
foreign exchange trading to special-purpose
loans in local currency, letters o f credit,
marketable acceptances and more.

Look to the Leader.™

B A N K of A M E R IC A
Bank of America NT&SA • Member FDIC
© Bank of America NT&SA 1982
Federal Reserve Bank of St. Louis

C o rre s p o n d e n t B a n kin g S ervices


Convention Calendar

Sept. 19-21 — IBA Annual C onvention,
Marriott Hotel, Des Moines.
Sept. 13-29— Minnesota District Meetings;
see schedule in Minnesota News s e c tio n ^

ABA—American Bankers Association
AIB—American Institute of Banking
BAI — Bank Adminstration 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. 19-21 — IBAA Commodity Marketing
Seminar, Chicago, III.
Sept. 19-22— NABW 6th Annual Conven­
tion, Los Angeles Bonaventure, Los
Angeles, Calif.
Sept. 19-Oct. 1—ABA National Instalment
Credit Schools, Univ. of Oklahoma,
Oct. 10-15— IBAA Bank Executive Develop­
ment Seminar, Muncie, Ind.
Oct. 16-20—ABA Annual Convention, A t­
Oct. 24-27— BMA 67th Annual Convention,
Phoenix Civic Plaza, Phoenix, Ariz.
Oct. 31-Nov. 3— RMA 68th Annual Fall Con­
ference, Sheraton, Bal Harbour, Fla.
Oct. 31-Nov. 3— IBAA Seminar Workshop on
the One-Bank Holding Company, New
Orleans, La.

Robert Wilmouth Heads
National Futures Association
Robert K. Wilmouth, president of
the Chicago Board of Trade, official­
ly assumed the presidency of the Na­
tional Futures A ssociation on
August 2. Mr.
W ilmouth was
appointed to be
p resid en t and
chief executive
officer of the
NFA in late A p­
ril. The NFA,
the futures in­
d u s t r y ’ s firs t
se lf-reg u la tory
association, was
approved as the industry-sponsored
organization in the fall of 1981 by
the CFTC. The association plans to
officially begin operations October
1, 1982.
The NFA staff is headquartered
at 200 West Madison Street, Chi­
cago, Illinois 60606. The telephone
number is 312-726-0070.
The NFA is designed to provide
consistent and effective self-reg­
ulation to the diverse segments of
the commodities industry.
Mr. Wilmouth has been president

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Nov. 7-10 — ABA National A gricultural
Bankers Conference, M arriott Hotel,
Nov. 14-17— BAI 58th National Convention,
Hyatt Regency, Houston, Tex.
Nov. 15-16— IBAA Spread Analysis and
Asset/Liability Management Workshop,
Dallas, Tex.
Nov. 15-19— BMA Essentials of Bank
Marketing School, Univ. of New Hamp­
shire, Durham.

State Conventions & Schools
Sept. 15-18—Colorado Independent Bank­
ers Association Annual Meeting and
Convention, The Lodge at Vail, Vail.
Sept. 15-16— IBA Ag Credit Conference,
Ramada Inn, Champaign.
Sept. 29-Oct. 1—AMBI Retail Banking Con­
ference, Indian Lakes Resort, Bloomingdale.
Oct. 5-6—IBA Trust Conferences, Holiday
Inn O’ Hare, Kennedy; Holiday Inn,
Nov. 14-18—AMBI Commercial Lending In­
stitute, Univ. of Illinois, Champaign.

Oct. 6-7— NBA M arketing Conference,
Ramada Inn, Kearney.
Nov. 4-5— Nebraska Independent Bankers
Association Fall Round-up, M id to w i^
Holiday Inn, Grand Island.
North Dakota:
Sept. 15-17— Independent C om m unity
Banks of North Dakota Convention, Holi­
day Inn, Jamestown.
Sept. 27— NDBA Northeast Group Mtg.
Sept. 28— NDBA Northwest Group Mtg.
Sept. 29— NDBA Soutwest Group Mtg.
Sept. 30— NDBA Southeast Group Mtg.
Oct. 26-27— NDBA Bank Women’s Con­
ference, Jamestown.
Nov. 17-18— NDBA Consumer Credit C o iw
ference, Mandan.
South Dakota:
Oct. 7-8—SDBA Instalment Credit & Retail
Banking Conference, Sheraton, Yankton.
Oct. 27-28—SDBA Economics Seminar fo ®
Young Adults, Holiday Inn, Mitchell.
Sept. 23-24—WBA Installment Loan Con­
ference, Hitching Post Inn, Cheyenne. _
Nov. 12-13—WBA Chief Executive O fficer™
Conference, Ramada Inn, Casper.

of the Chicago Board of Trade since ments along with the newly created
November, 1977. During his term, marketing department. This new d i#
he helped lead the exchange into a vision is completely separate from
more varied and diverse futures the examination/supervision and
market, including the traditional economic policy areas, with no func­
agricultural commodities and the tional overlap, according to Min­
booming financial instruments.
neapolis Fed officials.
Prior to his appointment to the
CBT, he concluded a 27-year career Deri Derr Heads Staff of
in the banking industry. Mr. Wil­
National Apple Institute
mouth spent two-and-a-half years as
Deri I. Derr was named last^
president and chief administrative
officer and a director of Crocker Na­ month to the senior staff position of
In tern a ­
tional Bank in San Francisco. He the
had worked for The First National
Bank of Chicago for 25 years in var­
v ic e
ious capacities and was executive e c u t iv e
vice president and a member of the president. Head­
board of directors before resigning quarters of the
to take the presidency of Crocker organization are
in McLean, Va.
Mr. Derr previ­
ously was asso­
Minneapolis Fed Creates
ciated for 22
Financial Services Arm
years as a staff
The Federal Reserve Bank of Min­ member of the ABA, most recently
neapolis has reorganized its services with the A g Bankers Division. H ^
area into a new operational division holds BS and MS degrees in ag eco­
and named it Federal Reserve Fi­ nomics from Cornell University,
served four years in the Korean con­
nancial Services.
The new division represents the flict as a jet fighter pilot and began
payment services, securities, ac­ his banking career as a farm rejP 1
counting services, and cash depart­ with an Albany, N.Y. bank

“It takes a pronounced edge in performance
to reach the top, and constant enhancements to stay there.
As the widely recognized leader in correspondent banking,
Manufacturers Hanover has added new strength by
form ing the Banking Group—an enterprising team o f
professionals devoted exclusively to thefinancial,
operational and technological needs o f the nation s
banks in an age o f incredible change



« I?

« PI

Assem bled a t the new w orld headquarters o f M anufacturers H an over a t 270 Park
A venue in N ew York a re the officers in charge o f the B anking G roup, under
D onald H. M cCree,Jr., E xecutive Vice P resident o f the N ation al D ivision.
They a re (left to right): R ichard H. M cCarthy, S enior Vice President;
M errill O. B um s, S enior Vice P resident an d D epu ty G eneral M anager;
Mr. M cCree; an d R. B ruce Brougham , S enior Vice President.
Federal Reserve Bank of St. Louis

From Peachtree Sire*
M anufacturers H anover is knot

Exploring every avenue to help the n a tion ’ s
bankers g row and prosper.
That’s the guiding p rin ciple behind the
Banking G roup o f Manufacturers Hanover.
And the continuing com m itm en t—in deeds,
not mere w o rd s—that makes us, year after
year, the num ber on e corresp on d en t in
Am erica’s num ber on e m on ey center.
Altogether, w e serve ov er 2 ,7 0 0 U.S.
banks—on the Main Streets o f rural Am erica
as w ell as on m ajor thoroughfares in urban
centers like Atlanta and Los A ngeles—and
m ore than 1,700 banks throughout the
w orld.
No other corresp on d en t anyw here
offers them a “ tally sheet” o f bank-tobank services as com p lete as ours (see
follow in g page).

Lending, the linchpin.
Credit is often the co n n e c tio n that fo s ­
ters a correspon den t relationship. And many
a b o rro w e r—banks and corp ora tion s alike— DM
know s Manufacturers H anover as a loyal and
imaginative source o f funds, w hatever the
e co n o m ic climate.
We have long been a leader in p rovidin g^
bank holding com panies w ith the interim
financing they need fo r expansion. Our
investment bankers can assist in private p la ce ­
ments dom estically and, through our merchamj
banking arm in L ondon, internationally.
W here still other form s o f specialized
financing are required—such as factoring,
com m ercial finance, leasing and equipm ent
finance—Manufacturers H anover affiliates
w ork closely w ith correspon den ts to satisfy
their needs.
We w ork hard, as a g o o d partner should,
to help banks w ith lending activities o n the
local scene. Such help runs the gamut from #|
traditional overlines to leveraged buyouts.
It’s not happenstance that our Banking G roup
is w ell staffed w ith officers w h ose ex ten ­
sive experience lies in the creative use
o f credit.
Federal Reserve Bank of St. Louis

) W ilshire Boulevard,
s A m erica ’s p rem ier “ban ker’s bank.

The electronic wonders
of our world. And yours.
W e’ ve been quick to d ev elop and refine
advan ced te ch n o lo g y fo r our operating sys­
tems. The result has been efficien cies that
w ere unheard o f just a few years ago.
Take our G eo Pac securities services.
Through a direct com pu terized link to
ou r securities “ nerve cen ter” in N ew York,
y o u ’re in form ed o f the status o f trades and
availability o f funds on a same-day, real-time
basis. Also, fo r electron ic certificateless p r o ­
cessing, th ere’s n o need fo r you to b ecom e a
direct participant o f the D ep ository Trust
Com pany. You can “ p iggyb ack ” on us,
on e o f the largest and m ost enthusiastic
DTC participants o f all.
Our cash management services also
em b o d y the Electronic Age. For same-day
m on itorin g o f you r p osition , nothing ou t­
perform s our com p u ter-to-com p u ter system
called TRANSEND. In addition, TRANSEND
form s the base o f our n ew system, the m ost
sophisticated o f its kind, fo r issuing CDs and
com m ercial paper—and tracking you r p o s i­
tions as w ell.

Our size fits all.
It’s true that Manufacturers Hanover, as
on e o f the w o r ld ’s largest banks, is in volved
in substantial dealings w ith many m on eycenter correspon den ts.
O n the other hand, w e serve com m unity
and regional banks w ith equal dedication.
For som e, our Edge Act offices act as their
“ international division.” And a g o o d num ber
rely o n us fo r our package o f group insurance
plans, plus a retirem ent program , to help
attract and keep key em ployees.
The w ay w e see it, correspon den t bank­
ing is not a sideline.
It’s a m ajor part o f our business.

Federal Reserve Bank of St. Louis

68 services from a single source:
the Banking Group o f Manufacturers Hanover
CREDIT SERVICES_________________


Real Estate Participations
Loans to Bank Holding Companies
Reserve Position Loans


5. Factoring
6. Commercial Financing


Tax Leases
Equipment Finance Structures


9. GeoPac Safekeeping
10. G e o Pa c Depository Processing
11 . G e o Pa c Information Exchange
12. G e o Pa c Securities Lending
13. Security Drafts
14. Coupon Collection

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

Corporate Trust Services:
1 8 . Debt Service Trustee
19. Debt Service Registrar and
Paying Agent
20. TRANSIFAC Equity Service
Transfer Agent
21. Equity Service Registrar
22. Equity Service Dividend
Reinvestment Agent
23. Municipal Paying Agent Services
24. Issuing Agent Services
(Certificates o f Deposit and
Commercial Paper)
25. Escrow Services
Institutional Services:
26. Professional Investment
Research/Computer Aided
27. Fixed Income Research Strategy
Trends (FIRST)
28. Trust New Business School
29- Personal Financial Planning
BANKING SERVICES_______________


Bankers Acceptances
Federal Funds
Repurchase Agreements
MHC Commercial Paper
Other Commercial Paper
Certificates o f Deposit
Municipal Securities
Federal Reserve Bank of St. Louis

37. U.S. Government Securities and
Federal Agency Issues
38. Investment Counseling Program
for Correspondents


Dental Assistance Plan
Group Life Insurance Plan
Group Medical Plan
Long-Term Income Protection
43. Retirement Program
44. Casualty Insurance

Export/Import Services and
45. Reimbursement Letters o f
46. Export/Import Letters o f Credit
47. Standby Letters o f Credit
Money Transfer Services:
48. Foreign Remittance
49. International Money Orders
50. Foreign Currency Banknotes
Bought and Sold
Other International Services:
51. Eurodollar/Eurocurrency

52. International Bank Statement
53. Foreign Credit Information
54. Foreign Exchange Trading
55. Foreign Exchange Advisory

56. TRANSEND (a communicationsbased Cash Management System)
57. Due From Account
58. Domestic Collection
59. Money Transfer & Wire
6 0. Bank Money Orders
6 1. Register Checks
6 2. Money Orders Reconcilement
6 3. Gift Checks
6 4. FINTECH (a library o f 35
analysis programs to assist in
financial planning)
OTHER SERVICES _________________ |

6 6.
6 7.
6 8.

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

G e o P a c , TRANSEND and TRANSIFAC are
service marks o f M anufacturers Hanover.

For m o re in fo rm a tio n a b o u t a n y o f these services,
o r f o r a copy o f o u r d e sc rip tiv e broch ure, c o n ta c t
the in d iv id u a l w ho serves y o u r a rea .

270 Park Avenue, New York, N.Y. 10017
Telephone: (2 1 2 )3 5 0 -3 3 0 0
Merrill O. Burns
Senior V ice President and D eputy General Manager

REGION I, Richard H. McCarthy, Senior V ice President
Northeastern District (Connecticut, Delaware, Maine, Maryland,
Massachusetts, New Hampshire, Pennsylvania, Rhode Island, Vermont)
Charles Treadway, Vice President and District Head
New York/New Jersey
Eldon Wallingford, Vice President and District Head
Great Lakes District (Illinois, Indiana, Michigan, Ohio, Wisconsin)
Mark Solow, Vice President and District Head

REGION II, R. Bruce Brougham , Senior V ice President
Southern District (Alabama, District o f Columbia, Florida, Georgia,
Kentucky, Mississippi, North Carolina, South Carolina, Tennessee,
Virginia, West Virginia)
William Ewing, Vice President and District Head
Southwestern District (Arizona, Arkansas, Colorado, Louisiana,
New Mexico, Oklahoma, Texas, Wyoming)
Gregory Helsel, Vice President and District Head
Midwestern/Western District (Alaska, California, Hawaii, Idaho,
Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, North
Dakota, Oregon, South Dakota, Utah, Washington)
Calvin Bumes, Vice President and District Head
1982, Manufacturers Hanover Trust Company, New York, New York




M ember FDIC



Letters to the Editor

“ DIDC Most Unfair”

“ Under the caption ‘M o n ey Funds
and M o n ey Supply, ' and from a national
magazine, Mr. B eryl Sprinkel, Treasury
Undersecretary for M onetary Affairs,
\has been quoted as making this asser­
tion. T see no reason for changes in
regulations in the Federal R eserve's
pow ers to impose reserve requirements
on M o n e y M arket fu n ds.'
“I t would appear to me that he is
9echoing the words and thinking o f the
chairman, Mr. Regan. A s a former chair­
man o f Merrill Lynch, Mr. Regan presid­
ed at the beginning o f the M on ey M arket
funds which perm itted security firms to
% act as depositories with checking p ow ­
ers, but giving them no regulations such
as we banks are required to contain. H e
is thereby making it impossible for the
D .I.D .C . to remove the regulations that
^p roh ib it banks and thrifts from com­
peting with his own firm.
“ This is one o f the m ost unfair things
I think a major industry has been asked
to undergo. Som e two hundred billion
dollars have been stricken from bank
G assets, and have gone into these funds.
A re these funds helping agriculture, or
the sick industry that any company now
p o ssesses?
“I do not understand how any banker
un this country could sustain the R e ­
publican party and its leaders who are
endeavoring to almost eliminate the
banking business."
W.P. Ronan
President, Decorah State
Bank, Decorah, la.

Nebraska Governor Writes
President About Money Funds
“I have enclosed a copy o f a mailing
i that went to our m em ber banks regard• i'n g - a letter sent to President Reagan by
Nebraska Governor Charles Thone,
ujiich deals with the com petitive ine­
quities within the financial services in­
dustry and the potential impact on rural
Q states like Nebraska. "


D a ve McBride, Director o f
Communications, Nebraska
Bankers Association.
Lincoln, Nebraska

(Ed. N ote: The Governor's letter follows.)

“Dear Mr. President:


“Adding to m y letter o f June 24th, I
want to emphasize the serious financial
Federal Reserve Bank of St. Louis

problems agriculture faces in Nebraska.
Operational funds needed by farmers,
ranchers and businessmen are being si­
phoned o ff by nonregulated intermed­
iaries and when the econom y does turn
around and interest rates do abate, loan
demands will become heavy. The avail­
ability o f funds in Nebraska and other
agricultural states will at that time
become critical.
“I share concern, as many others have,
in the apparent inability o f the D ID C to
effectively deregulate interest rates in
regulated financial institutions and al­
low those institutions to be competitive
in the m oney market with unregulated
institutions. The D I D C inaction has
perm itted a serious imbalance to exist in
the financial industry. Unregulated
m oney market mutual funds have attrac­
ted more than $200 billion from U.S.
savers; funds the traditional financial in­
stitutions no longer have available to
provide the capital needs o f local com­
munities. Nebraska alone has lost ap­
proxim ately two billion dollars, which is
alarming considering all deposits in
banks and thrift institutions in this
state approximate only fourteen billion.
“Nonregulated institutions offering
m oney market mutual funds do not have
the strong interest o f local communities
in mind. Consequently, few, if any, o f
these funds are recycled into Nebraska's
economy. Our financial institutions are
not opposed to savers receiving a fair
return on their investm ents; they simply
wish to com pete on an equal footing
with the m oney market funds as offered
by these nonregulated financial inter­
“A s Governor o f the State o f Nebras­
ka, I am deeply concerned by the lack o f
action by the D ID C . This body is not ful­
filling its responsibility to deregulate
the financial industry by permitting all
institutions to compete equitably. Spe­
cifically, the D I D C has not authorized
an account that Nebraska financial in­
stitutions and others throughout the
country find effective in competing with
m oney market mutual funds. While I re­
cognize the problems o f the nation's sav­
ings banks, I am also disturbed by the
apparent lack o f concern for those finan­
cial institutions which are struggling to
serve their community.
“Mr. President, I strongly urge you to
exert your leadership in order to make
sure the D I D C is responsive to the p o ­
tentially critical situation we face in
rural America. The Com mittee m ust
take positive actions to enable those
financial institutions with a sincere in­
terest in their communities to compete
fairly and serve the needs o f the farmers,
ranchers and businessmen o f our coun­
tr y ."
Charles Thone
Governor, State o f

Customized Newsletters
Offered for Bank Customers
Priority Publications of Minneap­
olis has recently introduced two
newsletters containing money man­
agement ideas for bank customers.
“ These newsletters are written
for key accounts - the 20 % that ac­
count for 80% of the deposits,” says
publisher’s representative, Mary
O ’Donnell. “ One is written for bus­
iness owners and professionals and
is called “ Personal Ledger.” The
other is for senior citizens and twoincome families and is called “ Easy
Street.” Of course, banks have the
option to use any name they wish be­
cause we customize the newsletters
for them.”
According to the publisher, key
accounts have not received enough
advertising support in proportion to
their share of deposits. Yet these are
the very accounts that are most vul­
nerable to competition from near­
banks, because their needs are more
The newsletters cover such topics
as: taxes, estate planning, fringe
benefits, shopping ideas, invest­
ments, real estate, cars, cash flow,
credit collections and other practical
“ W e’re seeing an increased inter­
est in newsletters,” says Ms. O’Don­
nell, “ as banks work to strengthen
their ties with existing customers in
the face of increased competition.”
Seven banks are on the bulk sub­
scription program now. Readership
surveys show that 90% of the cus­
tomers receiving it read every issue;
and 71% say they find it helpful.
The newsletters are written by ex­
perts who have worked with the
leading banks, insurance companies
and stock brokers in the Ninth Fed­
eral Reserve district. The company
also uses computerized links to data
banks nationwide to cross check all
items and verify their accuracy.
Each 4-page issue covers approxi­
mately 12 topics in succint, almost
telegraphic terms. Throughout the
editorial, references are made to re­
lated bank services.
By combining the issues of all
participating banks on a single press
run, Priority Publications can offer
this service to banks for as low as
9.8<t, depending on quantities. As a
result, the total cost is substantially
lower than can be achieved with
other media that could be used to
reach key accounts.
Northwestern Banker, September, 1982


The Public Response to IRA
By COLLIN W. FRITZ, Consultant
Des Moines, la.
RECENT report based on a survey of 5000 representative
households predicts that 33% of all households eligible to
open IRAs will do so during the 1982 tax year. The study further
reveals that most of the IR A s—57%—are expected to be set up
with banks. Are you prepared to open and administer these ac­
Last year the Economic Recovery Tax Act
of 1981 (ERTA) changed many of the rules
regarding IRAs, SEPs, and Keoghs. Now,
congress is debating a new tax law with addi­
tional changes for these programs.
During the past year there have been new
regulations by the Treasury Department and
Labor Department and IRS rulings - along
with a new Pension Equity Tax A ct (PETA).
The workshops we will be conducting in
coming weeks for many state banker associa­
tions, will review all aspects of the programs and provide new
forms along with a new booklet that will assist bankers in their
day to day operations.
Areas of review will cover: Types of IRAs, Eligibility re­
quirements, Investments, Distribution, Rollovers, Disclosure,
SEPs, Administration, Forms, Marketing, Keoghs, and ...
Building Long Term Deposits!!!


(Ed. Note: Mr. Fritz has scheduled workshops in a number of
states this fall. As soon as they are confirmed, along with loca­
tions and time, details will be publicized in following issues. All
forms needed for IRA s and Keoghs, as described by Mr. Fritz,
are available from T h e N o r t h w e s t e r n B a n k e r . Price sheets for
various IRA and Keogh supplies will be furnished on request. 306
15th Street, Des Moines, la. 50309. (515) 244-8163.

BMA Annual Conference Offers Two
Bonus Events for Community Bankers
COMMUNITY bank business
development seminar and a
community bank symposium are
two bonus events added to Bank
Marketing Association’s convention
format this year. The convention
will be held October 24-27 at the
Phoenix Civic Plaza.
The three-hour business develop­
ment seminar is aimed at both com­
munity bank CEOs and directors
and will be conducted by Jack W.
Whittle, chairman of Whittle, Raddon, Motley, & Hanks, Chicago, a
consulting firm serving the financial
services industry. (Advance regis­
tration to the seminar is required.)

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

The symposium is a means for
community bankers to share ideas
and experiences on a wide range of
specific topics with other communi­
ty bankers from across the country;
the topics have been suggested by
community banker registrants to
the convention. Bankers selecting
the same topic will be assembled in
groups of 5 to 10 and provided with
a discussion leader recognized for
his or her expertise in the particular
Also for community bankers:
“ Growth Opportunities from Brick
and Mortar — Bank Facility Service
Delivery” (what community banks

need to do to develop a more effi­
cient and profitable delivery system)
and “ Corporate Marketing Stra­
tegies: New Perspectives for All
Banks” (cash management needi^
from a buyer’s viewpoint, the new
middle-market potential and com­
munity bank efforts in the corporate
A new six-hour special session^
“ Marketing for the New Marketer,”
will be offered to persons who are
new to marketing or who are non­
marketers wanting to learn more
about the discipline.
General sessions at B M A ’s 67th
annual convention, built around the
theme, “ Competing in the Financial
Service Industry: Strategies and
Tactics for the ‘New Marketing’ ” in #
elude (1 ) a panel of top-level ex­
ecutives of non-bank competitors:
Merrill Lynch, American Express,
B eneficial Finance, and First
Nationwide Savings; (2 ) a panel ofl
CEOs from leading banks discuss­
ing their strategies and responding
to questions from attendees; and (3 )
a description of “ The New Market­
ing” and the changing priorities o i#
bank marketers by Leonard L. Ber­
ry, professor of marketing at Texas
A & M University.
BM A Convention keynoter is
F.G. “ Buck” Rodgers, vice presH
dent of marketing for IBM. He will
describe how IBM, with one of the
best marketing organizations ever
assembled, is able to stay ahead of
Additional program information
is available from BM A Convention
Director Gayle Fink. For registra­
tion information contact Shirley
Antenucci, convention registrar.
Bank Marketing Association, 309
W. Washington St., Chicago, 111.
60606; 312/782-1442.

Continental Illinois
Opens Geneva Office
C o n tin e n ta l I llin o is Banff))
(Switzerland) has established a
branch office in Geneva. CIB(S) is a
wholly-owned subsidiary of Conti­
nental Illinois National Bank and
Trust Company of Chicago.
The new Geneva branch of CIB(S)
is the result of the conversion of the
former offices of Continental Illinois
Investment Advisory Corporation
(Cl I AC), a former subsidiary o #
CIB(S) which had been in operation
in Geneva since 1977.


The love'em and leave'em school
of agricultural lending.

A correspondent bank that
loves the ag overline m arket one
year and leaves it the next is ju st the
kind of correspondent bank you don’t
need. Your agri-business cu stom ­
ers need credit they can depend on.
Continental B a n k is co m ­
mitted to the ag market. T h is year.
Last year. N ext year. N ot because
it’s a good crop year, or prices are
high, or loan dem and is d ow n in
other industries. W e ’re in it for the
sam e reason w e ’re in the correspon­
dent ban k in g business. To build
long-term banking relationships.
Continental B ank has always
provided correspondents w ith
seasonal loans and agricultural over­
lines. B eca u se con sisten cy is
som ething you have every right
to expect from you r bank.
You expect decisiveness,
also. A t Continental, y ou get it.
Credit requests go directly
to your a ccou n t manager.
T h e officer w h o can say
“y es” or “n o” on m ost loans. You get
a decision fast. From the person
w h o m ade it.
Call R obert C. V asko at
(312) 828-4046. Tell him y o u ’re in the
m arket for farm credit. You can bet
w e ’ll be in the m arket, too.

Continental Illinois National Bank and Trust Company of
Chicago, 231 South LaSalle Street, Chicago, Illinois 60693
Atlanta •Chicago •Cleveland •Dallas •D enver •Detroit
Houston •Los Angeles •Minneapolis •N ew York
San Francisco •Seattle •White Plains.
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982



Bank Promotions


ROMOTIONS and other an­
nouncements have been made
by the following banks:
Bankers Trust Company, New
York: New responsibilities for a
group of senior officers were an­
nounced recently by Alfred Brittain
III, chairman.
Carlos M. Canal, Jr., executive
vice president in charge of the world
corporate department and a member
of the management committee, was
appointed head of a new administra­
tion function.
Philip M. Hampton, executive
vice president in charge of the
United States department, was ap­
pointed to the management commit­
tee and named head of the banking
Ralph L. MacDonald, Jr., senior
vice president in charge of the em­
ployee benefit division of the fidu­
ciary department, was elected an ex­
ecutive vice president and named to
succeed Mr. Canal as head of the
world corporate department.
Joseph A. Manganello, Jr., senior


vice president and deputy head of
the United States department, was
elected an executive vice president
and appointed to succeed Mr.
Hampton as head of the United
States department.
John Tritz, senior vice president
and deputy head of the resources
management department, was elec­
ted an executive vice president and
named to succeed Charles S. San­
ford, Jr., as head of the resources
management department. Mr. San­
ford’s election as president of the
bank was announced last month. He
will succeed John W. Hannon, Jr.,
on January 1 , 1983, upon Mr. Han­
non’s retirement.
John L. Murphy, senior vice presi­
dent in the United States depart­
ment, will succeed Mr. MacDonald
as head of the employee benefit divi­
Centerre Bank, St. Louis: Steven
G. Balls, formerly with American
National Bank, has been appointed
assistant vice president and man­
ager, agri-business division special

Give Us a Couple of M inutes.. .We’ll
Give You Y ears of Great S ervice.
At G.D. VanWagenen
Company, we offer Blanket
Single Interest Insurance and
our Automated Insurance
Monitoring System. Prompt,
fair claims handling is our
#1 priority and has been for
over thirty years.
So talk to Don Miller or
Les Lukken about our
collateral protection
Spend a few moments
now . . . and relax for
years to come.

G.D. van W a g e n e n
C om pany
524 Plymouth Building
12 South Sixth Street
Minneapolis, Minnesota 55402
In Minnesota call:

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Don Miller
Director of Marketing

industries group. The appointment^
was announced by Clarence C. Barks­
dale, chairman and chief executive of­
ficer. Mr. Balls has been in banking
since 1975.
Four promotions were announced:
Ross C. Elford, Paul L. Gibbons and
Carolyn A. Kalmer, investment
banking officers, and Jean A. Welty,
operations officer.
Commerce Bancshares, Inc., Kan­
sas City: James B. Hebenstreit has
been named president of a subsid­
iary, Capital for Business, Inc.,#
which provides venture capital or
long-term financing to smaller bus­
inesses with growth potential. The
subsidiary was established in 1959 as
one of the first companies licensed#
as a Small Business Investment
Company. Mr. Hebenstreit formerly
worked for Butler Manufacturing
Company, where he had been presi­
dent since 1981 of the Terra-Light#
Division, a leading manufacturer of
solar energy equipment. He holds a
BA degree cum laude from Harvard
College and an M BA from Harvard
Graduate School of Business A d -#
The election of five new officers
and promotions for eight current of­
ficers at Commerce Bank of Kansas
City, N.A., the lead bank of the®
holding company, also were an­
nounced. They are:
Jerry M. Drewry to commercial
banking officer, regional banking de­
partment, with lending responsibil-®
ities in the energy field. He joined
the bank in 1978, earned a BA de­
gree from St. Louis University, and
a law degree from Washington Uni­
Hugh T. Forbes to commercial
banking officer and assistant man­
ager, commercial credit department.
He joined the bank in 1979 a n d ^
holds a B.S.B. in accounting a n d ^
business administration and an
M BA from the University of Kan­
Alden Farr King to international^
banking officer. With the bank since W
1980, she earned a BA degree from
Vanderbilt University of Nashville,
Bradford W. Sharpe to consumer ^
banking officer, bank card center,
where he is marketing manager. He
earned a BSBA and M BA from Cen­
tral Missouri State University and
joined the bank in 1981.
Elizabeth A. Kollmeyer to bond
officer. She worked previously for

ecutive vice president, Bank of
America, N.T. & S.A., San Fran­
ENNET A. Brown, chairman,
The RM A program will cover
In addition to Mr. Brown, major
Citizens and Southern National addresses will be given by economist such topics as the credit policy func­
Bank, Atlanta, will discuss “ Oppor­ David M. Jones; RM A President tion, incentive compensation for
tunity and Risk” during his keynote Douglas W. Dodge; bank analyst loan officers; uniform credit anal­
address at the 68th Fall Conference Alex Sheshunoff; Atlanta’s Federal ysis; working with corporate bank­
of Robert Morris Associates. The Reserve Bank President, Dr. Wil­ ruptcies; identifying and developing
0 annual meeting is scheduled for Oc­ liam F. Ford, and communications senior lenders for the future; the
tober 31-November 3 in Bal Har­ consultant Dr. Lyman Steil.
economic outlook and challenges for
bour, Fla., at the Sheraton Bal Har­
The plenary panelists will include 1983; asset/liability management;
bour Hotel. RM A is the national Malcolm T. Murray, Jr., senior vice high performance banking; credit
association of bank loan and credit president, First Union National review; and agricultural lending.
0 officers.
Bank, Charlotte; William E. Pike,
It also will focus on the dynamic
More than 2,000 RM A members chairman, credit policy committee, structure of commercial banking;
and their spouses are expected to at­ Morgan Guaranty Trust Company, new perspectives on credit admin­
tend this year’s event. The program New York; D. Bruce Adamson, istration functions; installment
will focus on a wide range of topics chairman and president, First Na­ credit; export finance; country debt
0 of interest to domestic and interna­ tional Bank and Trust Co., Joplin, rescheduling; credit review; credit
tional commercial lending officers.
Mo., and Lloyd J. Sugaski, ex- basics; and the art of listening.

RMA Will Meet October 31 in Florida


Atlanta Museum to Feature
^Chase Exhibit During ABA
The High Museum of Art in
Atlanta will present an exhibition
entitled CHASE M AN H ATTAN :
9 COLLECTING, 1959-1969 which
will open on October 5 and run
through October 31, 1982. One of
the best-known corporate art collec­
tions, Chase Manhattan’s fine art
^holdings now exceed 7,000 objects.
The exhibition in Atlanta will fea­
ture 25 pieces including works by
Alexander Calder, Sam Francis,
Adolph Gottlieb, Romare Bearden,
^ R ob ert Indiana, Louise Nevelson,
Jean Dubuffet, Larry Rivers and
several other grand names of con­
temporary art.
The exhibition serves as a docu®ment in the history of interior de­
sign and taste in the 1960s, focusing
on the kinds of art considered ap­
propriate for corporate settings. The
exhibition at the High Museum will
#m ake an attempt to convey a sense
of the original bank setting and fur­
The Chase Manhattan Bank be­
gan collecting in 1959 under the im­
p e t u s of David Rockefeller, then
president of the bank.
Although Chase Manhattan’s art
collection was not intended spe­
cifically as an investment, the collec­
t i o n has appreciated considerably
over the last two decades. The
38-foot-long mural by Sam Francis
was purchased in 1959 for $17,000.
The current market value of this
•painting is $300,000. The entire col­
lection at the present date is conser
Federal Reserve Bank of St. Louis

vatively estimated to be worth in ex­
cess of $9 million as opposed to the
total cost of just over $4 million.
Chase Manhattan’s collection is
one of the most extensive collections
of comtemporary art from 1959 to
the present. These art objects are ex­
hibited in Chase offices worldwide,
including 184 locations in New York
State, 22 other U.S. offices, and 86
overseas locations. The bank retains
its own fine arts department with a
curatorial staff. Collecting is even
more active now than in the early

nual convention Oct. 24-27 in Phoe­
nix. Formal election of the new of­
ficers took place in a recent mail
ballot among B M A ’s 4,300 profes­
sional members, with the election
results certified by B M A ’s Election

BMA Elects New Officers
Richard M. Rosenberg, vice chair­
man of Wells Fargo Bank N.A., San
Francisco, has been elected 1982-83
president of the Bank Marketing
Mr. Rosenberg, who is completing
a one-year term as B M A ’s first vice
president, succeeds Leonard W.
Huck, executive vice president of
the Valley National Bank, Phoenix.
Elected first vice president of
BM A for the ensuing year, succeed­
ing Mr. Rosenberg in that post, is
Barry I. Deutsch, senior vice presi­
dent and head of the marketing and
communications department of the
Mellon Bank N.A., Pittsburgh.
B M A ’s new second vice president
is Smith W. Brookhart III, presi­
dent and chief executive officer of
the Centerre Bank of Branson, Mo.
The 1982-83 treasurer is Kenneth J.
Pennebaker, executive vice presi­
dent of Twin City Bank, North Lit­
tle Rock, Ark.
All of the new officers will be in­
stalled during the Association’s an-


Committee late last month.
Mr. Brookhart is a native of Du­
luth, Minn., was graduated from
Iowa State University and began his
banking career with Plaza State
Bank in Des Moines. In 1967 he
joined Centerre Bank of Branson,
formerly Peoples Bank & Trust Co.
He was named president in January,
1974, and chief executive officer in
Mr. Pennebaker is well-known
among upper midwest bankers, hav­
ing appeared on marketing con­
ference and state convention pro­
grams a number of times.
Northwestern Banker, September, 1982

two western banks, earned a BA de­
gree from Arizona State University
and has graduate work from Arizona
State and the University of Utah.
Named assistant vice presidents
in the check processing division are
Stephen L. Hallier, manager of ex­
ception processing; James E. Hen­
drickson, manager of demand depos­
it accounting; D. Dean Jolliff, man­
ager of systems maintenance and
support section of item processing,
and Martha S. Tush, manager of the
transit division.
Janet M. Lassiter was promoted
to assistant vice president in the cor­
respondent bank division. She joined
the bank in 1972 and worked in in­
stalment lending and consumer
banking before joining the corres­
pondent department. She earned a
two-year degree from Northwest
Missouri State University in Marys­
ville and is presently completing her
BS degree in management at Wil­
liam Jewell College in Liberty, Mo.
Ellen M. McKenna has been pro­
moted to assistant vice president in
the international department and
continues as manager of foreign ex­
Dwayne K. White and Joseph C.
Williams III have been promoted to
senior trust officers in the trust
department. Mr. White is manager
of the fixed income section of trust
investments. Mr. Williams, who had
been trust officer, will continue with
his responsibilities in the trust in­
vestment area.
Detroit Bank & Trust, Detroit:
Under a restructuring of the United
States banking department, Thom­
as R. Johnson, senior vice president,
remains as manager of the depart­
ment, and D. James Watson, Jr.,
first vice president, has been made
assistant department manager and
manager of the Detroit group.
In addition, the following group
managers have been named: Doug­
las J. Cook, vice president in charge
of the west group; Charles F. Insley,
vice president in charge of the east
group; George W. Lindenburg, vice
president in charge of the north cen­
tral group, and David C. Bird, vice
president in charge of the energy
First National Bank of Chicago:
The bank recently announced the
naming of four division and group
heads as senior vice presidents.
They are: John A. Canning, Jr., head
Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

of the equity division, financial pro­
ducts department; Richard C. Hartnack, head of the personal financial
services group in the personal bank­
ing & trust department; Robert S.
Jepson, Jr., head of the U.S. capital
markets group in financial products,
and Benjamin F. Lenhardt, Jr., head
of the trade finance division, finan­
cial products.
Mr. Canning continues as presi­
dent of First Capital Corporation of
Chicago and First Chicago Invest­
ment Corporation, the two corporate
subsidiaries that make up the equity
division of financial products. Mr.
Lenhardt previously was a vice pres­
ident of First National Bank.
Mr. Hartnack and Mr. Jepson
joined the bank earlier this year. Mr.
Hartnack came from Interstate
Bank of Oregon, N.A., Portland,
where he was senior vice president,
corporate banking division. Mr. Jep­
son was vice president and manager
of the mergers and acquisition divi­
sion, financial services department,
at Continental Bank of Chicago.
First National Bank of Kansas Ci­
ty: John L. Spangler and Michael D.
Coil have been promoted to assis­
tant vice presidents, Jean Ann Nes­
selrode and Dyan C. Conway to in­
vestment officers, and Elizabeth R.
Bale and Denise O ’Donnell Nevinger to assistant cashiers.
Manufacturers Hanover Trust
Co., New York: John R. Torell III,
president of the bank and executive
vice chairman of the parent Manu­
facturers Hanover Corporation, has
been elected to the board of direc­
tors of American Home Products
Corporation, a leading manufacturer
and marketer of prescription drugs,
packaged medicines, food and house­
hold products and housewares.
National Boulevard Bank of
Chicago: Two promotions have been
announced. Hamilton Kerr III was
named vice president-manager of
Division A and William W. Thom­
son became a retirement services of­



Mr. Kerr received his BA degree
from the University of Dennison
and his M BA from Northwestern
University. He was employed by
Northern Trust Company for s i ^
years. He served there as a commer­
cial lending officer with responsibili­
ty for 80 correspondent bank rela­
tionships and corporate customers.
Mr. Thomson attended the U ni^
versity of Alabama and the Univer­
sity of Wisconsin for personnel man­
agement. After five years with Uni­
ty Savings he joined National
Boulevard and has been serving a^Q
an assistant vice president.
Northern Trust Company,
Chicago: John W. Hogge and David
R. Geis have been promoted to sen­
ior vice presidents in the trust d e #
partment and will serve as co-chair­
men of the investment policy com­



Mr. Hogge, formerly director o®
research, has assumed executive re­
sponsibility for the personal trust
investment divison, the investment
management service, investment re^
search division and trading.
Mr. Geis, in addition to his conti­
nuing responsibility for employee
benefit fund investments, has as­
sumed responsibility for the in stiti^
tional and fixed income division. He
will be responsible also for manage­
ment of the bank’s common and col­
lective funds.
R ob ert
Grant joined the
central division
of the commer­
cial banking de­
partment recent­
ly as a commer­
cia l
b a n k in g
He will be re­
sponsible for the
bank’s corporate
and correspondent business in
Nebraska and, along with Jeffrey B.
Early, also will serve Northern
Trust customers in Iowa. Mr. Grants
was graduated from Oakland Uni­
versity, Rochester, Mich.

It’s more than just writing a check.



Financing an
acquisition or
management buy*
out is far from routiiiiif
It takes a dedicated 1
team of asset-based
lending specialists who
deal with this often complex
form of transaction on a dayto-day basis. It takes Associates
Commercial Corporation’s
Acquisition Financing Team.
Backed by over $6 billion in
resources, The Associates has devised,
developed and participated in numerous
acquisitions, mergers and management buy-outs all across
the country. And we will work in cooperation with banks,
insurance companies and other lending institutions. As a
leading source of money for business for over sixty years, The
Associates is in a unique position to provide funds through a
variety of asset-based lending programs.
To learn more of the role The Associates can play in your
future plans, contact the regional office near you. An officer will
be happy to discuss asset-based lending with you. Or, send for
our booklet discussing asset-based acquisition financing.


Associates Commercial
Business Loans
20 N. Clark St.
Chicago. IL 60602
(312) 781 -5837
Federal Reserve Bank of St. Louis

Get to know The Associates...People Worth Knowing!
Business Loans Offices in Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Los Angeles,
Miami, Nashville, New York, Philadelphia, St. Louis and Tampa.
Associates Commercial Corporation is a subsidiary of Associates Corporation of North America, a Gulf + Western


Walter E. Heller & Company, 105 W. Adams St., Chicago, IIL 60603 • Other Heller offices in: New York ■Boston • Philadelphia • Montclair, NJ • Baltimore

Syracuse • Minneapolis • Detroit • Cleveland • Cincinnati • Kansas City • Atlanta • Charlotte • Miami • Tampa • Birmingham • Columbia, SC • Houston

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis


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 place of business at 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 bad 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 their 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 I

Dallas • San Antonio • Albuquerque • New Orleans • Phoenix • Tucson • Boise • Salt Lake City • Los Angeles • Newport Beach, CA • San Francisco
Seattle • Portland • Spokane • San Juan, PR. Heller services also available in Canada and twenty-three other countries around the world.
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


ROMOTIONS and other an­
nouncements have been made
by the following firms:


Associates Commercial Corpora­
tion, Chicago: James A. Vanderventer has been elected assistant
vice president and appointed loan
development officer, and William E.
Andrzeicik has been appointed mar­
keting administrator for the busi­
ness loans division, according to
Harold D. Marshall, president.


Mr. Vanderventer, who will be re­
sponsible for loan development ac­
tivities in the Chicago region, joins
the Associates with more than four
years of commercial finance exper­
ience. A native of Waukegan, 111.,
Mr. Vanderventer received his BS
degree in business and agriculture in
1974 from Southern Illinois Univer­
sity, Carbondale.
Mr. Andrzeicik will be responsible
for developing and managing mar­
keting information systems as well
as various ongoing marketing pro­
grams for the business loans divi­
sion. He joins the Associates with
several years of commercial finance
and corporate marketing experience,
serving most recently as marketing
research analyst for BarclaysAmerican/Business Credit, Inc. in East
Hartford, Conn.
The following appointments were
also announced in the business loans
division: David Cralle, business de­
velopment manager, and John Far­
rell, loan development officer, Los
Angeles region; Richard E. Coffey,
vice president and regional man­
ager, Miami region; Floyd L. Burchard, Jr., assistant vice president
and loan developm ent officer,
Southfield, Mich.; R. Warren Baird,
district manager, Charlotte, N.C.,
and Arthur W. Gill, assistant vice
president and loan development of­
ficer, Atlanta, Ga.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Brandt, Inc., Watertown, Wis.:
The appointment of a new vice pres­
ident-sales and three area vice
presidents in a major restructuring
of the U.S. and worldwide sales
organization, has been announced.
Terry E. John­
son, the firm’s
d ir e c t o r
in t e r n a t io n a l
operations since
1980, was named
worldwide sales
activities, and
three former dis­
trict managers
have taken area
sales responsibilities over 42 other
district managers and their sales re­
presentatives throughout the na­
The new regional vice presidents,
who will remain at their present lo­
cations, are Ronald E. Doll, Minne­
apolis; Brendan P. (Pat) Macken,
Houston, and Roger L. Weinheimer,
Charlottesville, Va. All are recog­
nized by other Brandt district man­
agers “ for their outstanding sales
records and service to customers for
many years, and are ideally suited to
their new positions,” according to
Lawrence E. Johnson, president of
the Watertown-based manufacturer.
Mr. Doll, who is well-known to
Minnesota and North Dakota bank­
ers for his work as district manager
there for some years, now will be
regional vice president for an area
embracing 16 states and parts of
four additional states. These include
all of Wisconsin, Minnesota, Iowa,
Nebraska, South Dakota, North
Dakota, Montana, Wyoming, Col­
orado, Arizona, Nevada, Utah,
Idaho, Washington, Oregon and
Hawaii, as well as the northern half
of Illinois, western part of Michigan,
and northern Indiana and northern
part of Missouri.
The 92-year-old firm is a leading
producer of coin, currency and docu­
ment handling equipment and sys­
tems, for financial institutions, ven­
ding companies, retail stores and
supermarkets, and other large-vol­
ume money handlers.
Vice President-Sales Terry John­
son, said the president, will further
have overall management respon­

sibilities for marketing program ^
established and implemented by
Brandt’s two divisions, Coin Pro­
ducts and Currency Systems. Mr.
Johnson is now forming a staff of
market and product specialists, anc^
corporate marketing coordinators,
to serve division marketing direc­
tors and field sales personnel.
John H. Crowther, Inc., Denver^
The corporation has announced the
recent acquisition of the Denver
branch office of H&W Insurance
Services, Inc., with Fran DeAndrea,
former H&W manager, joining thq^
company as senior underwriter.
Also announced was the recent
merger with IWest Insurance Man­
agers. Mel Ferguson, former IWest
manager, has joined the company a?||
a senior underwriter.
Doremus & Company, Chicago:
Donald E. O ’Toole, Jr., former vice
president at First National Bank of,
C h ica g o ,
joined the Chi­
cago office of
Doremus & Com­
pany as vice
tisin g . A c c o r ­
ding to George
L. Fischer, vice
p resid en t and
general manager, D.E. O’TOOLE, JR.
Mr. O ’Toole will
concentrate his activities on the ex­
panded development of Doremus
services to the banking industry,g
particularly multiple-banking organ­
Mr. O’Toole, who has served as
vice president-marketing services at
First National since 1976, previous-^
ly was vice president-marketing at
Heritage Bancorporation in Chica­
go. He has also been associated with
major advertising agencies includ­
ing Tatham, Laird & Kudner and J.|
Walter Thompson.
Omaha Financial Life, Minne­
apolis: Lawrence F. Harr, Omaha,
has been elected to the board of
directors of Omaha Financial Life^
Insurance Company, Mutual of
Omaha’s affiliate specializing in
mortgage and credit insurance.
A graduate of Creighton Universi­
ty School of Law in Omaha, Mr.
Harr is vice president and general
counsel for Mutual of Omaha and
also serves as general counsel for
Omaha Financial Life.





S P E A K S ..
Kenneth H. Petersen
Vice President
Operations Manager
United States National Bank
Omaha, Nebraska

“The U. S. National Bank; is always interested in improving
employee productivity and reducing expenses.
The Return Item Processing system from Data Management
Products and the PERTEC XL40 computer enabled us to accom­
plish both.
In addition, the system has reduced research time, improved audit
controls and virtually eliminated overtime.
Data Management delivered a system to meet our needs and con­
tinues to provide us w ith new solutions.”



To receive fu rth e r in fo rm a tio n — Call to ll free . . .
Federal Reserve Bank of St. Louis

Data M an ag em en t
Products, Inc.
808 SOUTH 74th PLAZA

Northwestern Banker, September, 1982

waukee: Thomas I. Dolan, 55, senior
vice president of product divisions,
was recently elected president and
chief operating officer of the cor­
poration. He was also elected a
member of the board of directors.
He becomes the eighth president
in the 108-year history of A.O.
Smith and only the second non-long
service employee to hold the post at
the big Milwaukee-based diversified
L.B. Smith, chairman and chief
executive officer, and the fourth
generation of the Smith family to
head the firm, announced Mr.
Dolan’s election.
Mr. Smith also announced that
J.R. Parker, 64, president since
1975, was elected vice chairman of
the board. Mr. Parker, who is retir­
ing in October, will remain a mem­
ber of the company’s operating and
planning committees until his retire­
Mr. Dolan joined A.O. Smith as a
senior vice president in 1980 after a
30-year career with White Consoli­
dated Industries where he rose from
an appliance cabinet engineer to
senior group vice president. In his
last post at White he was responsi­
ble for several of that company’s ap­
pliance divisions.
When he joined A.O. Smith in ear­
ly 1980 he oversaw the company’s
consumer products division, which
manufactures water heating equip­
ment, and A.O. Smith Harvestore
Products, Inc.

managing partner of Insured Finan­
cial Services, an affiliate of the J.T.
Miller Company. He started his bus­
iness career at the First National
Bank of Minneapolis in the sales
finance department after graduating
from Macalester College in St. Paul.
The G.D. van Wagenen Company,
established in 1935, specializes in all
forms of single interest insurance
coverage with offices in Minneap­
olis, Golden Valley and Phoenix,

IBAA Elects Directors


Independent Bankers Association
of America members in five states
have elected directors to represent
them on the executive council of the_
7,149-bank organization.
Results of a special election to
name directors in five newly-created
districts were announced by Ken­
neth A. Guenther, executive direc-^
tor, Washington, D.C.
Directors were elected for threeyear terms through January of 1986.
The new districts were created by
action of the IB A A membership at^
Central National, Exchange the annual convention in Honoluhi
in March. Under the new bylaws,
National Merge in Chicago
any state having 400 or more IB A A
Merger of the Central National member banks is entitled to one ad­
Chicago Corporation, holding com­ ditional director.
pany for Central National Bank in
New directors were chosen as
Chicago, with Exchange National follows;
Bank of Chicago was approved by
ILLINOIS - District 1 : Gerald C.
shareholders of both firms August Meyers, president, Riverside Na­
tional Bank, Riverside.
Jackson W. Smart, Jr., chairman
IOWA - District 2 : John C. Dean,
and chief executive officer of Cen­ president, Glenwood State Bank,
tral, said Central common share­ Glenwood.
holders and Series A Convertible
KANSAS - District 2 : John C.
shareholders are to receive approx­ Tincher, president, Lyndon State0
imately $10.7 million par value of Bank, Lyndon.
Series B Preferred stock, on the
MINNESOTA - District 2: J.
basis of three shares of Central com­ Stephen Schmidt, board chairman,
mon for one share of the merged cor­ State Bank of Anoka, Anoka.
poration’s voting, convertible, nonTEXAS - District 1: Abe M. Turn- 0
cumulative preferred, Series B, with er, president, Haskell National
a par value of $18 per share. This Bank, Haskell.
will have an 8 % dividend subject to
an earnings base. No dividends will
be paid in paid years in which E x­
change International’s earnings are
Marketing Tip of the Month
G.D. van Wagenen Company, below certain levels. The Series B
Nearly everybody reads the comics, and
Minneapolis: Kent R. Daley, presi­ shares will be convertible into Ex­ some banks are using this fact to advan­
dent, announced last month that change International Corp.’s com­ tage when they want a particular message
Gerald L. Dreier
mon after January, 1991, at the to stand out from the crowd.
One New York bank developed a series of"
has been ap ­
greater of $47 per share on the then comic-strip
style statement stuffers de­
pointed to the
existing book value of Exchange In­ signed to educate credit card customers to
marketing staff.
ternational. Citicorp, which holds the most common types of fraud.
Short, easy-to-read copy, plenty of color
Mr. Dreier’s pri­
Central National’s senior preferred
mary responsi­
stock and other securities, and the to attract attention, and a design that allowed,
the stuffer to fit into an envelope unfolded*
bilities will be in
banks which hold Central’s $ 10.3 all increased the probability that customers
developing and
million of subordinated notes, will would read the message and distinguish
marketing a Mo­
receive non-voting preferred stock the stuffers from the usual statement lit­
bile Home In­
senior to the Series B preferred erature.
Additionally, a slide presentation for mer-.
su ra n ce
p ro­
issued in the merger.
chants groups used the same cartoon char-"
Central added $5 million to loan acters to describe the customer cardholder
Prior to joining the G.D. van losses in the second quarter, thus in­ identification procedure.
Did it work? According to the bank’s per­
Wagenen Company, Mr. Dreier was creasing loan reserve to $9.8 million,
and reported a second quarter loss of sonal credit division, calls reporting lost
cards increased noticeably after the first$6.8 million. At June 30, Central’s test mailing. The bank also received com-*
assets totaled approximately $543 mendation from the local police force for its
"Accepted Sale Registers by Bank
million and its capital funds totaled efforts.
Clerks Everywhere"
For more information, contact Sandra
$45.7 million, which includes the
Tor i nf or mat i on wr i t e
Carcione, Division of Communications,
$9.8 million reserve for loan losses Bank Marketing Association, 309 W est.
and the $10.3 million of subordina­ Washington Street, Chicago, Illinois 60606.*
Oakland, Iowa
Phone 312/782-1442.
ted debt capital.


Banker, September, 1982
Federal Reserve Bank of St. Louis


Your Banking Career
ABA’s Stonier Graduate School of Banking
S to n ie r G rad u ates A re on th e M ove—
They’re motivated, knowledgeable high-performers who are on their way
to becoming tomorrow's banking leaders.
They’ve successfully completed the industry’s finest bank management
They know how to pick a winner. . . that’s why they picked Stonier.
H e re 's w h a t S to n ie r c an o ffe r you:
A T ra d itio n o f Q u a lity — R e s p e c te d
T h ro u g h o u t th e B a n k in g In d u s try
Since 1935 Stonier has built its reputation as banking's most
prestigious school by providing the best in bank leadership
training and education to bankers nationwide. And Stonier's list
of graduates continues to read like a "Who’s Who" in banking.
Stonier is the only graduate bank management program
sponsored by the American Bankers Association and offering a
national industry perspective. You and your bank, holding
company or agency will tremendously benefit from your Stonier

A n In n o v a tiv e C u rric u lu m fo r a
C h a n g in g In d u s try




Courses and methodology are fine-tuned each year to insure the
most relevant educational experience. Students acquire
immediately applicable management skills. Beginning in 1982,
students can choose either a series of applied research projects
on specific bank performance areas, or the traditional formal
thesis as part of the graduation requirement. Each student
attends three 2-week resident sessions held each June at
Rutgers— The State University of New Jersey and also
completes several between-session extension problems . . . all
designed to thoroughly prepare them for management
responsibilities in banks of all sizes and organizational

A S u p e r la tiv e F a c u lty A b le to
P ro v id e a C o m p re h e n s iv e
P e rs p e c tiv e on B a n k s an d B a n k in g
Sponsored in cooperation with Rutgers University, Stonier offers
you a superior faculty of over 140 experienced bankers,
academicians, professionals and government officials— many of
whom have achieved national prominence in their respective
Federal Reserve Bank of St. Louis

If you're ready to accelerate your career, complete and
return the attached coupon and you’ll discover the
Stonier advantage.

R e tu r n to :
B a r b a r a S c o tla n d
T h e A B A S t o n ie r G r a d u a te
S c h o o l o f B a n k in g
Am erican Bankers A ssociation
1120 C onnecticut Avenue, N.W.
W ashington, D C 20036
O r Call 202/467-4265


Please rush me inform ation and an application to A B A ’s
S ton ier G raduate S chool of Banking.
Nam e__

S tate------------ Zip.

A p p lic a tio n s s u b m itte d b y O c t o b e r 1 5 , 1 9 8 2
w ill r e c e iv e f ir s t c o n s id e r a tio n f o r a d m is s io n
to th e n e x t J u n e 1 9 8 3 s e s s io n . L a te a p p lic a n ts
w h o m e e t a d m is s io n r e q u ir e m e n ts w ill b e
a c c e p te d o n a s p a c e a v a ila b le b a s is o n ly.


Northwestern Banker, September, 1982

Imagine getting only bare walls
when, for the same price,
ou could have had a
eautifully built, elegantly
furnished bank.


“ It just about happened to us,”
says Henry Kinberger, president of
Security 1st National Bank, in
Alexandria, Louisiana.
“ We listened to not one, but a
number of proposals for an important
building project for our bank. One
from an architect, another from a
leading plan-design-build firm. Both
would have offered us far less than
the solution we got from HBE.”

“A lot more value for
the dollar.”
“ Instead of remodeling our old
building, HBE showed us how we
could build a brand-new building
that would be much more functional,
for about the same cost, on the same
site, without any interruption of
business. And the HBE price included
a spectacularly beautiful, finished
interior, not just bare walls.”

“Other bankers couldn’t
believe how much we got
for the price.”
“When many of our banker
friends visited us, they were amazed.
One of them said, ‘I came here
expecting to be disappointed. I can’t
believe my eyes.’”
“What they saw were things like
floor-to-ceiling solid-oak doors,
marble floors, really nice furniture
and the like. All included at the
square-foot price they thought would
have been bare walls only.”

“They didn’t try to
boss us around.”
“We enjoyed an excellent working
relationship throughout the project.
HBE listened to our thoughts and
responded to what we wanted to do.
There was never any attempt to
impose formulas or rigid sets of ideas
on us. And we liked that.”

“Everything about it works
better for us.”
“We have such nice touches as
an exceptionally fine heating and air­
Federal Reserve Bank of St. Louis

conditioning system with a lot of
zone controls and real energy savings.
Better departmental and work flow
arrangements. And an employees’
patio on our drive-in roof. All the site
work was included, too. So was
demolition of our old building. Even
vault and security equipment. Plus
new sidewalks, fountains, and so on.
And throughout, HBE stayed with us,
directing all phases and weeding out
anything that proved inefficient.”

Practically no work
change orders.
Security 1st was so satisfied that
work change orders amounted to only
a tiny fraction of the industry average.
Better planning, closer personal
attention, and a more careful, more
concerned, more thoroughly pro­
fessional approach throughout made
the difference. A difference we feel
you can see in every HBE project,
whether bank, savings and loan or
credit union.
Stories like this are not just
once-in-a while happenings at HBE.
We make them happen all the time.
It’s our specialty, our point of difference,
our pride. We’d like to start making
things happen for you. Find out more.
Call or write me, Dave Specht, right
now at 314-567-9000. HBE Bank
Facilities, 717 Office Parkway,
St. Louis, Missouri, 63141.

H B E B ank
S Í Facilities

You can’t
afford not to
look at HBE.


"We achieved everything we wanted
and a lot more by working with HBE.’
Henry Kinberger, president of Security 1st
National Bank, is shown here iin the lobby of their
beautiful new facility planned, designed, and built
Federal Reserve Bank of St. Louis


Summer ■ Baseball Autographs!

Approximately 2000 participants *
are expected to attend this con­
ference and the A B A advises early
registration for choice accommoda­
tions at the Chicago Marriott Hotel.
For further information about the
1982 National Agricultural Bankers
Conference, contact the Agricultural
Bankers Division, American Bank­
ers Association, 1120 Connecticut
Ave., NW, Washington, D.C. 20036,
or call (202) 467-4850.

Credit Unions Award
Building Programs to HBE

BASEBALL FANS—close to 1,500 youngsters and adults—came out to Drovers
Bank of Chicago parking lot on a warm, sunny Saturday recently to get autographs
from White Sox players Salome Barojas and Tom Paciorek. The fans also were
treated to free ice cream.

ABA Ag Conference Will Focus on
Marketing of Farm Customer’s Products
bank products perience cash flow problems and
and services in a deregulated eroding financial positions,’ ’ Mr.
and competitive environment, as Swaim observed. “ The changing
well as improved marketing of pro­ banking and agricultural environ­
ducts produced by a bank’s farm ment, brought on by new competi­
customer, will be the focus for ses­ tion, efforts toward deregulation
sions at the 1982 A B A National and increasing costs for funds will
Agricultural Bankers Conference, have considerable impact on the
scheduled for November 7-10 at the agricultural lender and the farm
Marriott Hotel in Chicago.
customer. This new environment
Sponsored annually by the Amer­ will get full attention at this year’s
ican Bankers Association, this is the conference.”
only national conference designed
Unique this year to the conference
exclusively to address the specialized will be a session patterned after the
concerns of agri-bankers, providing A B A ’s Banking Leadership Confer­
a unique look at the future of Amer­ ence consensus process. Attendees
ican agriculture and banking’s role will caucus in small group round­
table discussions that will focus on
in that future.
“ Bankers today are stepping critical issues facing agri-bankers in
beyond traditional bounds of lend­ an effort to develop a consensus.
Additional conference sessions
ing money to their agricultural
customers,’ ’ said Robert O. Swaim, will concentrate on computer tech­
conference chairman and president nology in bank agricultural lending
of Citizen State Bank, Marshall, and will explore the profit center
Ind. “ A g bankers are counseling concept in bank agricultural lending
their farm customers and providing management. A full array of “ nuts
many more non-credit services. New and bolts” sessions will give prac­
technologies are being developed to tical information on such subjects as
assist and improve farm and finan­ stress management and dealing
cial planning management as well as with the farm customer, analyzing
complex loans, bankruptcy, land
marketing farm commodities.
“ The farm economy today bears issues, leasing, water and energy
serious watching as farmers ex­ issues and family farms.


a r k e t in g

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis


Credit unions in Poughkeepsie,
N.Y., and Valley Stream, N.Y, have
awarded contracts totalling $6.2
million to St. Louis-based H B E #
Bank Facilities. The announcement
of the contracts was made by Fred
S. Kummer, president of the design/
build firm.
HBE has designed and will b u ild #
a new two-story structure of 51,788
square feet for the new IBM Pough­
keepsie Employees Federal Credit
Union, the nation’s twentieth larg­
est credit union.
The $4.1 million building will
house both the credit union’s main
offices and its local Poughkeepsie
branch. In the past, all credit union
services were conducted in IB M ’s #
general offices in Poughkeepsie.
The Nassau Educators Federal
Credit Union in Valley Stream has
awarded HBE a $2.1 million con­
tract for renovations and addition s#
to its present building. HBE will
add a second story to the one-level
structure; a two-story addition of
12,000 square feet and extensive
renovation of the existing cre d it#
union will complete the project.

Bankers Trust Merges
Edge Act Subsidiaries
Bankers Trust Company, N.Y.,
has announced the consolidation of
its Edge A ct banking subsidiaries in
Chicago, Houston, Los Angeles and
Miami into a much larger Edge Act
banking subsidiary to be named
Bankers Trust Company Interna­
The head office of Bankers Trust
Company International will be lo­
cated in Miami, Fla. Bankers Trust
Company’ s previous Edge A ct
banking subsidiaries in Chicago,
Houston, and Los Angeles will
become branch offices of Bankers
Trust Company International.



W h at we sell, everybody’s selling!
W h at makes Westcap any better?
Our sales people sit in the same room
with our traders. They personally know
one another. When you call Westcap you
can reach your contact. He or she will
know your name; you’ll know his or hers.
I t’s a nice kind of attention we both

The Westcap Corporation is a
major regional distributor of cer­
tain types o f fix e d -in c o m e
securities to primarily small and
medium sized financial institu­
tions— nationwide.
A n d so are a lot o f other
What makes Westcap a better
option in this kind o f market?
In one overused w ord— service.
In another oversimplified phrase:
We are able to give our customers
the kind o f attention they deserve,
and quite frankly in the computer­
ized business world, the kind o f
attention they crave and appreciate.

There are simple reasons fo r our
Under one roof
Primarily it’s because we are a
“ one r o o f” operation. Sales persons,

Now let’s talk about size.
We are not the smallest firm o f
ou r kind by any means. We d on ’t
rank among the giants either.
We are a modest sized company,
capable o f perform ing every service
you ’ll need. And, though we have no
argument with the giants, we believe
ou r size favorably affects the quality
o f service we offer.
D. Ann Orr, Vice President-Trading,
keeps an ear to the ground to know
what and where the attractive invest­
ments are. That’s her job. “ My ability
to perform for our customers,” says
D. Ann, “ is directly related to my
knowledge o f what they are trying to
accomplish in their investment goals.
Through our sales people, I have
immediate and constant access to our
customers and can communicate to
them what is available in the market
relative to their goals at any given
time. This ‘dialogue is vital’.”

Because we’re not a Goliath, we strive
fo r a better and closer customer relation­
ship. That means putting our personal­
ities upfront in an honest effort to serve
our smallest customers as we would our
Anybody can sell securities! We
d o it just a little closer to our cus­
tomers. They appreciate the difference.

traders, operations and manage­
ment enjoy a physical proximity at
our Houston offices.

That means immediate execution over
the phone — buying, selling or trading.
It also means everyone’s available
at the Other end o f your phone— at
one number.
What is the Westcap advantage? Jim
O g g , First V ic e P residen t, Sales
points out that “ our trading desk is on
the sales floor. So when we ask a
trader for a bid, we often get it— now
while the customer is still on the
phone. In today’s volatile market that
kind o f service means more than
convenience— it could mean money.
T im e ix m oney where a customer
is concerned, whether he’s buying or
selling. W e ’re very much aware of
that, here at W estcap.”

And, the person you talk to on
M onday will be there Thursday
when you call again.
It eliminates the problem o f call­
ing New Y ork fo r one service,
C h icago fo r another and never
reaching the same person twice.
Even when in the same city, some
firms are so fragmented, you can
b e c o m e d is c o u r a g e d by b e in g
sw itch e d fr o m d e p a rtm e n t to
Not so at Westcap!

Mobley E. C ox, Jr., Executive Vice
President.............. “ The chore o f man­
agement is made easier when your
resources are close at hand. Our
resources are our people. And they’re
right here, sharing a rooftop, trading,
buying and selling together. We are
clo se-a t-h a n d people at W estcap.
That’s one o f the reasons manage­
ment, like everyone else, is available
to you with a phone call.”

The W estcap Corporation
1 3 0 0 M ain Street ! Houston, Texas 7 7 0 0 2 /7 1 3 :6 3 1 -1 1 1 1
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


ABA National Advanced Agricultural Banking School

A total of 247 bankers from 33 states attended the ABA sponsored National Advanced Agricultural Banking School held July 11-16 at Iowa
State University in Ames, Iowa. Pictured on the left are representatives of the first graduating class of the two year school. They are (left to.
right)— David Noffsinger, v.p., Wells Fargo Ag Credit, Englewood, Co.; Terry Martin, v.p., Merchants Natl. Bk., Cedar Rapids, la.; Bill DuToit,
sr. v.p., First Natl. Bk., Jamestown, N.D.; Virgil Lochtefeld, br. mgr., Citizens Commercial Bk. & Tr., Celina, Oh., and Bob Caudel, sr. v.p.,
Bank of North Dakota, Bismarck. RIGFIT—ABA Ag. Bankers Comm. Chmn. James Eatherly, chmn., First Natl. Bk., Tonkawa, Ok., presents
a diploma to Linda Collins, 2nd v.p., la.-Des Moines Natl. Bk. as ABA School of Banking Comm. Chmn. Chick Finson, chmn., Natl. Bk. of
Monticello, Monticello, II., looks on.

ABA to Conduct Two Operations and
Automation Workshops in October
TRATEGIC deregulation and
competition decisions for bank­
ing management will be the focus for
two Operations and Automation
Workshops to be held in October in
Atlanta and Dallas.
In distinctly different program
formats to reflect regional diversity,
the workshops, sponsored by the
American Bankers Association, are
designed to encourage banker par­
ticipation. Innovative approaches to
the challenges and opportunities of
the financial industry market place
will be offered.
The Southeastern Regional Work­
shop, entitled “ Operations’ Stra­
tegic Role in a Changing Environ­
ment,” is the first program and will
be held October 6-8 at the Hyatt
Regency Hotel in Atlanta.
Deregulation, integration of new
products and technology, and man­
aging the changing work force will
be given particular emphasis in a
series of general, special interest and
peer group sessions.
During the workshop, registrants
will also be able to attend three of
nine different special interest ses­
sions conducted by banking and cor­
porate experts in their given fields
as well as by key industry consul­
tants. Subjects for the sessions in­
clude: alternative approaches to in­
formation delivery systems, man­
agement - the key to productivity,

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

evaluating remote capture systems,
retail cash management services,
corporate electronic delivery sys­
tems, Fed pricing revisited - 1982
and beyond, shared ATM networks,
enhanced profitability through con­
trol of operating losses, and leader­
ship in action.
The second program, the Western
Regional Operations and Automa­
tions Workshop, will be held Oc­
tober 27-29, at the Hyatt Regency in
Participants will be able to attend
four special interest sessions out of a
list of subject areas that include:
new deposit instruments, managing
the spread, new retail product devel­
opments, the management of micro­
computers, the how-to of productiv­
ity, new systems, policy and pro­
cedure manuals - creating a system,
the key to long-range planning, EFT
security issues, and data processing
Enrollment for each workshop is
limited to insure maximum partici­
pation for each person attending.
The fee for each of the regional
workshops is $350 for A B A mem­
bers and $450 for nonmembers.
To register or receive futher infor­
mation about either of the regional
workshops, contact Robin Craighill,
Operations and Automation Divi­
sion, American Bankers Associa­
tion, 1120 Connecticut Ave., NW,

Washington, D.C. 20036, or call
(202) 467-4036.

American Express Co. to
Sell Payment Systems, Inc.
American Express Company has
announced an agreement to sell ai
majority of the business and assets
of Payment Systems, Inc., a whollyowned subsidiary, to The Reistad
Corporation of Clearwater, Fla. PSI,
based in Atlanta, is a leading ad-^
visor to the financial community on
U.S. and international payments
systems, financial service informa­
tion and electronic funds transfer.
According to Dale L. Reistad,^
president of The Reistad Corpora­
tion, a subsidiary to be renamed PSI
will continue to provide the full line
of research, publishing and educa­
tion services presently offered by*
PSI. These include the company’s
syndicated and proprietary research
studies, two financial industry
newsletters, and a payment system
conference program in Canada and*
The Reistad Corporation, formed
in 1981, provides a variety of con­
sumer and research services to.
organizations interested in home1
terminal business. Mr. Reistad
founded PSI in 1968. PSI was ac­
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the company’s financial institutions
services divison.




What’ s New
RANDT, Inc. has expanded its
product line through a newly
formed Business Products Group of
^ th e firm.
Among the new Brandt products,
which are sold and serviced through
the company’s authorized sales and
service representatives nationwide,
^ a re a 10-model series of high-speed,
top-quality document shredders and
shredder/balers, and a three-model
line of microprocessor teller ter­
Other new products now available
from Brandt include portable coin
counter/packagers and sorters, suit­
able for use by present customers
and other commercial users. Securi# t y products, and vault and cash
room supplies, fill out the broad new
line, which is detailed in a 32-page
catalog produced by the Business
Products Group.
The new Brandt document shred­
ders employ the latest technology in
paper and microform destruction,
and offer maximum security and
ease of operation. Top-quality de• sign and construction assure relia­
bility and long life, even in heavy


Brandt Model 2786 teller terminal

The new Series 2780 teller ter­
minals from Brandt are program­
mable to user requirements. They of0 fer from four to seven independent
totals and batch totals, and large,
Federal Reserve Bank of St. Louis

easy-to-read print and display.
Other common features include bat­
tery back-up, supervisor and teller
locks, audible error signals and
numerous others for time and cost
The three models also have the
following optional features: on-line
capability, check list on batch total,
automatic coin dispense, dual teller
operation, two-line imprint and twocolor ribbon.

tomers better service, often with
fewer tellers than before.
Cash Dispatch also provides a
complete record of transactions,
which makes end-of-day balancing a
simple procedure. The machine may
be operated on or off-line.

NEW performance-tested vault
door listed by Underwriters’
Laboratories for Class II and Class
III ratings was introduced last
month by Diebold, Incorporated.


OW there’s help for the most
critical part of a teller’s job —
dispensing currency. A new, auto­
mated cash counting machine from
LeFebure, Cedar Rapids, la., speeds
all dispensing transactions and elim­
inates teller shortages because of
manual counting errors.


Diebold Advanced Basic III door

LeFebure Cash Dispatch

Called Cash Dispatch, this elec­
tronic wonder dispenses 15 bills a
second at the touch of a button.
Equally important, up to six differ­
ent denominations can be combined
as needed to handle specific cus­
tomer requests. Bills can be old or
new in random mix.
One machine serves two teller sta­
tions. A teller simply enters the
amount needed on a compact count­
er unit. The Cash Dispatch does the
rest. It counts, recounts, and veri­
fies again, then assembles and dis­
penses the currency in one conve­
nient bundle, ready to hand directly
to the customer. All other cash is
out of sight, safely secured in the
Extensive use tests in a leading
Eastern bank have established that
Cash Dispatch increases teller effi­
ciency from 40 to 60%, and cuts
losses substantially. By reducing
transaction time, Cash Dispatch
shortens lobby lines and gives cus-

The new advanced Basic III, like
the line of Diebold Guardian Vault
Doors, passed U.L. specification
standards. U.L. technicians were un­
able to make a 96 square-inch open­
ing in the door or open it within the
rated time with several specified
tools including core drills and acety­
lene torches.
The Advanced Basic III, furnished
in stainless steel, features an ex­
clusive alarm contact and door pro­
tection system that not only senses
the position of the door but also the
mass of the door. In addition, it is
designed to monitor the integrity of
the heat activated thermos and in­
dicate whether or not the locking
bolts are in the proper locked posi­
tion after the door has been closed.
Other security features include
three independent relocking devices
located within the body of the door,
integral anti-lock-in protection,
recessed dual combination lock
dials, 120-hour timelocks and Super
Infusite — a proprietary Diebold
material providing additional pro­
tection against drill and torch at­
Several optional features offer a
variety of designs for daygate selec­
tion, steel cladding patterns and
trim arrangements.
Northwestern Banker, September, 1982


When you need the support of a money-center bank,
think first of First Chicago. Why? Because we’ll
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responses. Because we offer you a true partnership
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Tom King, Vice President, explains: “ Every
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We make it our business to back up your relation­
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Jack Clark, Vice President: “ First Chicago has
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Anytime!’ Adds Don Boreman, Assistant Vice
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all other members of The First Team directly to you
and your customers!’
Get The First Team working with you in
Kankakee, Kansas City, Kalamazoo, wherever you
are. Call Tom, Jack, or Don at (312) 732-4100.

The First National Bank of Chicago

Banker, September, 1982
Federal Reserve Bank of St. Louis

I i sTXî *rra ni



o rth w estern

OST agricultural bankers taking part in the 1982
Annual Livestock and A g Outlook survey con­
ducted by the N o r t h w e s t e r n B a n k e r are looking for
fat cattle prices to remain fairly stable for the balance
® o f the year, hog prices also very much in line with the
higher prices of the August period, and corn prices
that won’t return the cost of production, even though
that production is expected to near another record
All the replies from survey participants were writ­
ten in early to mid-August, but weather conditions
throughout the midwest didn’t change much in the en­
suing weeks up to press time. Here is how these ag
bankers look at livestock and grain conditions, the
9 money supply for ag needs, and their interpretation of
the effect of any grain agreements with Russia.



R.E. “ BOB” CAUDEL, Senior Vice President
Bank of North Dakota, Bismarck, N.D.

ROM the supply side, the outlook for North Da­
kota has seldom been any better. The spring mois­
t u r e produced a record supply of hay and an abundant
wsupply of grass. Pasture cattle have fared well since
April. Grain farmers who had their crops in early can

Federal Reserve Bank of St. Louis



S urvey

expect a much better than average yield. Late crops in
the southern half of the state have been hurt by lack of
rain in July.
Cattle numbers were declining in North Dakota in
1980 and 1981, but with the ideal conditions of 1982,
cow-calf pairs have increased. Yearling numbers are
down and quality feeders are $67 to $72 at local mar­
kets. Bred heifers are in short supply at $62 to $68.
Plenty of butcher cows available at $45 to $48. With
the ample supply of hay available many operators will
carry calves longer than normal for extra weight. I be­
lieve feeder prices will remain strong through year-end.
Cash grain prices are below the cost of production.
The alternative for those farmers that have approved
storage is to place the crop in reserve. This will permit
them to pay on the absolutely necessary bills and gam­
ble on an increase in price. Worldwide production
would indicate that it might happen very late this
Community banks in North Dakota are able to fund
the ag loan needs of their borrowers. Most banks went
into the 1982 season very liquid. Average ag rates are
floating at one to one and a half points over BND Base
Rate which has ranged from 161 / 2% to 15% in 1982.
(Reduced to 14%, a 1% drop, on August 20.)
The equity of North Dakota producers has deteriorNorthwestern Banker, September, 1982

ated in 1981-82. Increased costs, high interest rates,
modest decline in land values, marginal profits, all
have contributed to the overall problems that farmers
and ranchers face. Those producers who are highly
leveraged or are poor managers are looking at some
very grim prospects.
The opportunity of being able to export grain to
Russia and other parts of the world would certainly
have a positive effect on price. Somehow, through no
fault of the American farmer, importers have categor­
ized U.S. grain products as unreliable and inferior.
With this image, I do not see where the latest Russian
purchase will have any great influence. Quality supply
we have; the ability to market constructively and over
a long period of time, we lack. Nonetheless, things look
mighty good in North Dakota.
JAMES R. TANK, President
General Trust & Savings Bank, Eldridge, la.
ATTLE outlook: Supplies of feeder cattle will re­
main about constant, which means 4-500# feeder
cattle will run in the high 60’s to low 70’s. Yearlings
will run 65$ this fall and 64$ this winter. Fed cattle
prices probably will not show much change and remain
in the mid 60’s. Hog outlook: Due to present hog num­
bers, hog prices will stay fairly close to their current
levels but will trend downward to about 49$ by yearend.
Corn production in Scott County will be just a little
below previous years. Last year’s yield averaged 141
bu/a and 1982 will probably run 130 bu/a. With the
huge carryover of old crop corn, if we realize a national
crop of 7.5 billion bushels, we could see $2.10/bu corn.
A 7.0 billion bushel crop would probably result in $2.25
corn and a 6.9 billion bushel crop would give a boost to
around $2.40/bu corn. Southeast Iowa’s crop is in rel­
atively little danger of early frost. Bean production
will be up due to increased acreage planted. Frost may
play a more important role in this area. If no frost pro­
blems, will probably see $5.75/bu beans by year-end.
The severity of possible frost problems will affect the
price accordingly.


“Available funds in our bank
and in the community remain
at very high levels ... funds
availability will not be a
Community banks in our area will be able to fund ag
loan needs due to the priority they receive. Our current
interest rate is 16.25%. Overlines have not presented
problems in the past but I would expect correspon­
dents to tighten their guidelines.
The equity position of most of our customers is such
that 1982 will see no forced changes. However, yearend statements may change that!
A long-term agreement with the Russians would put
some stability and strength into the grain markets.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

The one year extension’s effects were already built into®
the markets. Lack of a long-term agreement will mean
lower costs of gain, but will also persuade more pro­
ducers to feed their grain resulting in higher com­
petitive prices on feeders, and the net result may not^
be much different.
LAUREN M. KAEMINGK, Senior Vice President
First National Bank, Sioux Center, la.
UR current status as far as cattle marketing is
concerned is that we are very current but also
very full. We must market during August, September,
and October approximately twice as many cattle as we
had for sale in April, May, and June. We were lo o k in g
for a market low from $10.00 to $15.00 per hundred
below the seasonal highs which turned out to be
$75.00. We anticipate those lows to be made some­
where late summer and early fall and we are then look­
ing for a $4.00 to $7.00 rally in prices into year-end;
depending on the pattern of feedlot placements. We
would expect the fat cattle prices for the first quarter
of 1983 to average between $63.00 and $66.00, with the
normal seasonal highs being set in the second quarter
of 1983. It would be surprising to us if the 1983 highs"
surpassed those of 1982. As for yearling prices, we see
yearling steers delivered into our northwest Iowa feed­
ing territory costing from $66.00 to $70.00. We see the
heifers delivered for prices ranging from $62.00 to.
$65.00. It is our opinion that the cattle sold in the early*
part of the fall will command the better prices.
The hog outlook up to year-end and through the first
half of 1983 appears very strong and should remain at
profitable levels through that entire period and eveiw
into the second half of 1983.
The crops look excellent in our area at present. We
need one more rain to assure us of a very good crop.
Some of our corn was planted fairly late and, therefore,
we do remain in jeopardy of some early frost problems^
It appears, however, that there will be no problem in
having feed available for livestock operations this fall.
Available funds in our bank and in the community
remain at very high levels compared to what we have
seen historically in this area and, therefore, funds^
availability will not be a problem.
The equity position of many of our borrowers this
fall will be as good or better than it was a year ago so
we do not anticipate any further cutback in cattle feed­
ing numbers. We did, however, see a fairly strong cu t^
back in the last two years and I would anticipate that
that trend would be leveling off this year.


H.L. GERHART, JR., President
First National Bank, Newman Grove, Nebr.


UPPLY and price outlook for cattle and hogs, par­
ticularly cost of a yearling this fall: Most hog pro­
ducers in this area are equipped to handle a certain
number of hogs in their facilities and do not fluctuate^
production numbers as much as was the case several
years ago. I expect hog prices to remain favorable the
remainder of the year. Fat cattle prices are more ques­
tionable and I think my cattle feeding borrowers will
be fortunate if their market stays where it is. The cost^
of yearling cattle this fall will depend a great deal on
whether the corn crop in this area can mature before


“There is no doubt that the equity position
of many farmers has deteriorated to the
extent that a curtailment of their livestck
feeding program has taken place.”

frost. Above-average rainfall in May and June in this
area has resulted in a considerable amount of late
planted corn and replanted corn which will have to
0 hurry to mature. The soft corn crop would increase the
demand for feeder cattle around here.
Probable grain production: Above-average moisture
is going to make for excellent corn and soybean yields,
assuming enough time to mature before frost. New
49 crop corn prices in local markets have dropped to $ 2.20
to $2.25, considerably below what it costs to produce
this grain. Many producers will not be able to pay all
the bills. Those carrying average or above-average
debt loads are extremely vulnerable at these low grain
# price levels and there will be some problems in debt
servicing at the end of this crop year.
Will community banks in this area be able to fund
agricultural loan needs?: Loan ratios in this area are
generally below average and this bank will certainly be
(9 able to fund agricultural loan needs. I see no problem
in overline financing so far as supply of funds. I do see
some real problems in loan quality and cash flow.
Has the equity of producers deteriorated?: Equities
are deteriorating in many cases but we are still en­
couraging cattle and hog loans for those operators who
have been in the business and know what they are do­
ing. Reduced borrowing is not so much a result of cut­
ting back on livestock production as in cutting back in
capital spending—equipment and land purchases—and
® in some cases, chemicals, etc. Some of the cutback in
capital spending is being done at recommendation of
the banker. Practically all cutbacks in crop production
are operator decisions.
What effect will Russian agreements have on local
® feed costs?: I hope these agreements will have a pos­
itive effect on grain prices; if so, cost of grain will go up
somewhat. However, grain prices are way below cost of
production and it’s been my observation that low grain
prices over the long pull eventually result in low
® livestock prices. This bank serves a very diversified
area and most of the grain is raised by the livestock
producer, so low grain prices are creating a lot more
problems than they are solving.

JOHN ROSE, Vice President-Agriculture
Western Bank & Trust, Marshall, Minn.

HOGS, supplies will show no major increase
■ and prices may not remain at current levels but
should remain good. With current hog prices and low
corn, we can expect a major expansion sometime next
year. Hopefully, cattle prices will see their lows in
® August and should move to the mid to upper 60’s by
year end.
Federal Reserve Bank of St. Louis

As our crops look now, yield will definitely be above
average. It is difficult to say where price will bottom
out at harvest but something major will have to hap­
pen in the market to develop any main strength.
Yes, banks will service needs. Our current rate is
171/2%. We have very few overlines and foresee no pro­
Many farmers are feeding fewer cattle more because
past losses and risk involved in cattle feeding than
equity position.
I feel Russia will use us as its last supplier, just as it
has since the embargo was lifted. I see no major in­
crease in grain prices based on what we can foresee
W.D. BOWEN, Senior Vice President
Packers National Bank, Omaha, Nebr.
N UPW ARD movement in hog supplies is evident
as farrowings are on the increase, though mod­
erate. Prices should remain fairly stable throughout
the year - $58 to $63 area. Short-term for fat cattle
prices will probably be under some stress for the rest of
the year. Yearling prices should remain steady, but an
early frost would definitely bring about an increase.
Crops look excellent at this writing. Dry land corn
and beans could set an all-time record, but bound to de­
press the price structure. Again, an early frost would
change the entire picture. But, if we have normal fall
weather, the reserve program is looking better and bet­
As a correspondent bank, we foresee no problem in
funding the overline requests. Our loan demand has
been relatively strong throughout the first half of this
year. At this writing, with downward pressure on
rates, it is difficult to predict what the future holds in
the rate area. Long-term points to rates going back up.
Undoubtedly, there will be continued short-term pres­
sure on interest reduction. It is an election year!
There is no doubt that the equity position of many
farmers has deteriorated to the extent that a curtail­
ment of their livestock feeding program has taken
place. Depressed grain prices, volatile cattle prices,
high interest rates, energy costs, a leveling off, and in
many instances a rather sharp drop in land prices, all
have impacted livestock production. The only bright
spot, as this is being written, is swine production.
Any long-term grain agreement with the Soviet Un­
ion would create a favorable price response - especially
corn. The short-term agreement that recently was ap­
proved by the Administration will probably have little
impact on prices if a favorable fall harvest is realized.
Feed costs to our livestock producers will be negative­
ly affected by any type of agreement. However, the
overall benefits will offset this negative factor.


Northwestern Banker, September, 1982


“One of the big factors in both the hog and
cattle markets will be the« economy and
what the American housewife will be willing •
to spend for red meat.”

Farm Loan Dept.
National Bank of Monmouth, Monmouth, 111.
T THE present time, we have a normal supply of
feeder cattle, which is causing the market to re­
main steady. The calf crop is in short supply and this
could cause a rise in the feeder market in the near
future. Fat cattle are in short supply for this time of
year, which should lead to a stronger market in the
next few weeks. This fall a 700 lb. yearling could cost
about $66.00 to $66.50.
The supply on fat hogs is at its lowest level since
1975. A t the present, the price is around the $62.00
mark with no indications that the market will be down
by the year end.
Corn production will be very high in this area. We
expect a slight rally in price early this fall, with a
decline following. By year-end, all corn will have a
home so the price will have to stay up somewhat to
keep grain moving. The estimated price on 12-31-82
will be about $2.35 a bushel.
As far as the financing of any loans is concerned,
this institution will have adequate funds available to
the prime rate customers. The current interest rate on
ag operating loans is 16%. We do not foresee any pro­
blems with overline financing in the coming year.
The cattle and hog feeding in this area have been
mixed, as some producers have kept their volume
steady with that of a year ago, while others are cutting
back due to the economic condition.
The present grain agreement with Russia, being
short-term with a lower number of bushels, will have
little, if any, effect on the cost of feeding. If anything,
we feel the cost will be down. However, if the U.S. goes
with the five year deal, it will increase the cost of
feeding, especially to the farmer who must buy his own


DAVID D. VASELAAR, Executive Vice President
Sibley State Bank, Sibley, la.

I F THE cattle reports that have been coming out are
correct, it would appear that the fat cattle market
should stay in the mid-sixties for the balance of the
year, especially if the hog numbers are down as has
been reported. Also, if the reports are correct, the fat
cattle market should remain in this area into 1983.
Right along with the cattle market will be the hog
market and the supply of hogs available for slaughter.
At this point, it looks like the hog numbers are down

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

substantially from previous years, if the reports are
correct. This should make for a good hog market into
I believe one of the big factors in both the hog and
cattle markets will be the economy and what the Amer -1
ican housewife will be willing to spend for red meat.
Another factor will be the new reports that might be
out regarding red meat and its effect on our health.
Due to the abundance of grass in the range lands,
the feeder cattle numbers being down and the cattle i
market for at least the first portion of 1983 being
brighter, the feeder market should be as high or higher
than what was paid last year for feeders.
Grain production in our area is very good. We have
some wet spots, but these are at a minimum. As of 1
now, our outlook for crops is excellent. The hay crops
have been superb. If we are fortunate enough not to
have any hard storms before harvest, our total outlook
for grain in this area is excellent.
In our immediate area, the community banks will be
able to fund the ag needs in the foreseeable future. We
aren’t having any problems with our overlines with our
city correspondents; and, in fact, we are receiving calls
from them asking for any loans we may have to sell
them. Our present interest rate on our loans is 16V2%.
We do have some producers in our area that have re­
duced equity to the extent that they are feeding fewer
or no cattle and are not willing to take the risk in either
cattle or hogs that they were willing to take in the
past. With the interest rates at the level they are, this
will be a continuing problem until we can get the grain
and livestock market to a more profitable level and
bring interest rates down.
This brings up the question of the Russian trade
agreements with the United States. It is of the utmost
importance that we have some outlet for selling our
grain in foreign markets as we are not able to use it all
ourselves. If we are unable to sell the grain, we have lit­
tle hope for improving our grain markets at this time.
With the grain markets at this level, we may see more
of our farmers feeding cattle and hogs, hoping to get a
better return than selling it on the market.
In our area, the total sign-up for the set-aside pro­
gram is approximately 26% of the farmers and 33% of
the land. Hopefully, this will have a positive effect on
the grain market. However, we still need some trade
agreements to export our excess grain.
Even with these problems and the high interest
rates facing the farmers on the agricultural scene, the
general outlook for the future appears relatively bright
for the farmers in our area.


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Northwestern Banker, September, 1982




Exec. Vice Pres.

ABA convention is aimed at
‘ Developing a Competitive Edge’
ONTINUED pressure on banks from powerful seg­
ments of the non-financial industry are reflected in
the theme for the 108th annual convention of the
American Bankers Association—“ Developing a Com­
petitive Edge.’’ The convention is scheduled for Oc­
tober 16-20 in Atlanta, Ga.
A B A President Llewellyn Jenkins, vice chairman of
Manufacturers Hanover Trust Company, New York,
will preside at the general sessions. Scheduled to suc­
ceed him for the coming year is President-Elect
William H. Kennedy, Jr., chairman of the National
Bank of Commerce, Pine Bluff, Ark. Treasurer of the
A B A is Albert R. Pike, chairman of Banc One of
Northeastern Ohio, N.A., Painesville, Ohio. Heading
the A B A professional staff at Washington, D.C., head­
quarters is Willis W. Alexander. Immediate Past Pres­
ident L.E. Gunderson, president, Bank of Osceola,
Osceola, Wis., is chairman of the A B A Council.
Nationally renowned speakers have been scheduled
to address the general sessions, filling in details of the
national and world scene of financial, political and
social events that mesh to form the arena in which
banks find themselves. A wide variety of special in­
terest sessions, which have become extremely popular
at the convention in recent years, will then focus on
ways to aid banks in formulating a strategy that will
enable them to develop a competitive edge against the
outside forces they find now invading their traditional
services and customer base. The thrust of these ses­
sions is to move bankers from the defensive posture
forced on them in recent years so they will learn how to
act, and not just react.
At a special community bankers forum on Saturday
afternoon and at many of the special interest sessions,
emphasis will be on successful strategies and tech­
niques attendees can apply in their own banks. “ We
must learn to capitalize on our opportunities rather
than react to events,’ ’ states Charles A. Bruning,
chairman of A B A ’s Community Banking Leaders
Council. Mr. Bruning is president of the Edgewood
Bank in Countryside, 111.


Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis


Featured speakers this year will include former U.S.
Secretary of State Henry Kissinger, who attracted a
standing-room only crowd to a session of the A B A con­
vention in 1979, and world-renowned newsman Paul
Harvey, who is carried by 897 radio stations, 100 tele-0
vision stations and 300 newspapers in the United
States and overseas. President Ronald Reagan and
Federal Reserve Board Chairman Paul Volcker also
have been invited.
This year, special attention is being given t o #
microcomputer usage by community bankers. A high­
light will be simulated bank operations, ranging from
teller duties to loan review to a board of directors
meeting, with printouts visible to the entire audience
on a large overhead screen. Shelly H. Collier, Jr., presi-#
dent of the Valley National Bank, McAllen, Tex., says,
“ I was among the skeptics at first, but as chairman of
the Microcomputer Task Force of A B A ’s Community
Banking Leaders Council, I soon learned that micro­
computers really can revolutionize most bank’s opera-#
tions and can be invaluable in the future.”
In addition to the microcomputer forum, many other
special interest session topics at the convention were
suggested by A B A ’s 183-member Community Bank­
ers Advisory Board.
The hub of A B A activity in Atlanta will be the Geor­
gia World Congress Center, which is only six years old.
Free bus shuttle service will be available between the
center and all A B A hotels.
As always the Exhibit Hall will be a gigantic shopp-#
ing center for banking needs, offering everything from
premiums to uniforms to correspondent services. With
more than 400 booths, this year’s exhibit area will be
the largest in the history of the A B A Convention.
A preliminary program follows:
Friday, October 15
Arrivals at Hartsfield Atlanta International Airport
receive a special welcome and bus transportation t o 1
their hotels.


Look for these
Commerce Bankers
attending the
ABA Convention.
They can help you
get it done.

James M. Kemper, Jr.
Commerce Bancshares, Inc.

David W. Kemper
Commerce Bancshares, Inc.

David A. Rismiller

P. V. Miller J r.
Vice Chairman

John R. Owen
Executive Vice President

Ernie Yake
Senior Vice President

# Commerce Bank
of Kansas City“


9th & Main
10th & Walnut
12th & Charlotte
89th & State Line
________ 234-2000______________________________________________________

Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Chairman ABA Council

Former Secy. State

Early bird registration is open all day at the Georgia
World Congress Center.
Saturday, October 16
Complimentary bus shuttle service begins between
A B A Atlanta hotels and the Georgia World Congress
9:00 A.M.: Ribbon-cutting ceremony occurs at the
front of the Georgia World Congress Center.
9:00 A.M.: Exhibits open. Complimentary pastry
and coffee will be available in the Exhibit Hall, and
prize drawings will be held.
10:30 A.M.: Concurrent special interest sessions will
be presented.
1:30 P.M.: Community banker-oriented forum will
focus on developing a competitive edge.
3:00 P.M.: Community banker breakout sessions will
highlight success stories. Attendees will hear opening
presentations, debate the subjects among themselves
in round table discussions, and then report back to the
session leaders.
Transportation will be available to Lenox Square, a
large shopping mall at which special events will be pro­
grammed, or to the Cyclorama, a multi-media depic­
tion of the 1864 Civil War Battle of Atlanta.
Sunday, October 17
9:30 A.M.: Marguerite Piazza, former lead singer
with the Metropolitan Opera House and a singing star
on Sid Caesar’s “ The Show of Shows,’ ’ will lead the
Fellowship Gathering. Ms. Piazza, who survived a
crisis with cancer, believes that the mind and faith
have enormous power to heal the body.
2:00 P.M.: An exciting program for both bankers and
their spouses will be presented.
Evening: A resplendent reception will be held at the
towering Atlanta Hilton Hotel.
Monday, October 18
7:30 A.M.: Exhibits open. Complimentary coffee and
pastry will be available.

FNB Dayton Seeks World
Record on ATM Usage
A w orld re co rd fo r A T M
(automatic teller machine) usage is
believed to have been set by First
National Bank of Dayton as a result
of the bank’s 24-hour ATM mara­

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Chmn., Federal Reserve


8:00 A.M.: Concurrent special interest sessions are
9:30 A.M.: General Session. Attendees will be wel­
comed by Georgia Governor George Busbee. Other
featured speakers will include Henry Kissinger a n d #
A B A President Llewellyn Jenkins, vice chairman of
Manufacturers Hanover Trust Company, New York.
Federal Reserve Board Chairman Paul Volcker has
also been invited.
Noon: A special demonstration of m icrocom puters,#
related activities and complimentary lunch will be at
the Exhibit Hall.
1:30 P.M.: Microcomputer applications in a bank will
be explored in a special forum.
3:00 P.M.: Microcomputer round table discussions#
will focus on such topics as evaluating equipment and
software and advanced microcomputer usages.
Tuesday, October 19
7:30 A.M.: Exhibits open. Complimentary coffee a n d ^
pastry will be served.
8:00 A.M.: Concurrent sessions are scheduled.
9:30 A.M.: General session. A B A officers will be
elected and installed. President Reagan has been in­
vited to address the convention by teleconference.#
Other speakers include A B A Executive Vice President
Willis Alexander and newsman Paul Harvey.
2:00 P.M.: Concurrent special interest sessions will
be held.
Evening: The Georgia World Congress Center w ill#
be the site of a grand reception, complete with enter­
Wednesday, October 20
9:00 A.M.: Feature session will present several n a-_
tionally known economists offering their outlooks forw
investments and the economy.
11:00 A.M.: The 1982 A B A Annual Convention ad­
journs. Begin planning to attend next year’s conven­
tion in Honolulu, October 8-12. (1984, New York City, ^
October 20-24; 1985, New Orleans, October 19-23.) □

T ran saction s to ta lin g 4,913
(verified by Ernst & Whinney,
Dayton) were performed between 4
p.m. Friday, June 11 and 4 p.m.
Saturday, June 12, on the bank’s
Total Automatic Banking
System ATM manufactured by Diebold, Incorporated. The figure repre­
sents the largest reported number of

transactions to be completed on an
ATM during a 24-hour period.
First of its kind, the marathon is ^
being considered as an entry for the
1982 edition of the Guiness Book o f
World Records. The bank expects to
receive confirmation from Guiness ^
publishers within the next few


The big com m itm ent from
one of the biggest.
Involvement. Support. Personal
contact. Awareness of
your concerns. A
genuine interest in you.
That’s quite a
commitment. But
that’s exactly what
you’ll get from us-the Correspondent
Bankers at United
Missouri Bank.
One of the
biggest banks in
Kansas City.
Staying abreast
of your needs and
goals is vital. So we
actively participate
in events important to
us both.
Like bankers’
A time to learn
what’s new in

banking. And an opportunity for us to
talk with you and listen
to you, one-to-one. In
an atmosphere
conducive to ideas,
questions and
At United
Missouri, we
pledge to stay in
tune with you.
Anytime, anyplace
we can.
Our commit­
ment often
requires a lot of
work, planning and
man hours. But
it helps keep
us the best we
can be.
To us, that’s
what being big is
all about.

of Kansas City, n.a.
M em ber FDIC

United we grow.Together.
10th and Grand, P.O. Box 226 • Kansas City, M issouri 64141 • 556-7900
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


A community banker’s view .

The Citizens National
Bank of Charles City
Charles City, la.
...a talk delivered at a recent Conference on Bank
Structure and Competition sponsored by the Federal
Reserve Bank of Chicago

HE economic trauma associated with the great
depression and the instability of the early 1930’s
served as the genesis for a very firm bank regulatory
posture that has existed in the United States for near­
ly half a century. With this statutory and regulatory
framework in place, our nation moved from a period of
economic turmoil through a world war and then on to
over twenty-five years of relatively quiet stability,
which provided for approximately 14,000 commercial
and banking institutions and 4,500 savings and loan
associations a rather long period of unabated growth in
deposit liabilities and capital accumulation.
Inflation was relatively low or non-existent during
much of this period, and management practices focused
heavily on asset soundness and liquidity. Little, if any,
anxiety existed regarding structural changes in the
banking system. The golden years of 1945 through
1970 were fun for the participants and most communi­
ty bankers remain nostalgic for those times. While
many would very much welcome their return, a much
more competitive and far less stable environment al­
ready is being experienced and realistically anticipated
to continue far into the future.
Now, in perhaps the most trying and turbulent eco­
nomic times that most of today’s community bankers
have ever witnessed, our institutions are visited by
deregulation which prompts significant structural
changes. What effect will this have on the community
banking institutions, a very significant and traditional
part of the commercial banking system of the nation?
More importantly, what are the implications for the
future performance of the whole banking industry in a
deregulated environment? And to what extent will the
public benefit from deregulation of this industry?


*The views expressed in this article are solely those of the author writing in an individual
capacity, and not as a director of the Federal Reserve Bank of Chicago, or in any official
capacity for that institution.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

I. Defining Deregulation
To define deregulation we must perhaps ask, “ W hat1
is it that regulation has meant to the industry?” The
areas of protection that have been of significant impor­
tance to commercial banking are threefold.
First and foremost, the demand deposit franchise
was the exclusive province of the banks.
Secondly, the marginal cost of funds attained
through the deposit mechanism was controlled through
the imposition of Regulation Q.
Thirdly, the charter franchise offered reasonable geo­
graphic market protection.
Federal Legislation
The featured article in the February, 1982, issue of
the Federal Reserve Bulletin, is entitled “ Develop­
ments in Banking Structure, 1970-81.” This study by<
Donald T. Savage of the Board’s Division of Research
& Statistics points out that the principal pieces of
federal legislation affecting our nation’s banking struc­
ture during this period were the 1980 amendments to
the Bank Company Holding Act of 1956 and the D e -'
pository Institution Deregulation and Monetary Con­
trol A ct of 1980.
He points out that the 1970 amendments provided
the mechanism to determine what non-banking ac­
tivities were to be permissible for bank holding com -1
panies and gave to the Board of Governors of the
Federal Reserve System the power to permit holding
companies to engage in these activities.
The 1980 monetary decontrol statutes legalized the
provision to consumers of third party payment ser-1
vices by the nation’s thrift institutions. Through the
nationwide authorization of NOW accounts, remote
service units and share drafts for credit unions, the
commercial banks’ exclusive role in the provision of
payment services was brought to an end. Also, the 1
gradual elimination of the ceilings on bank time depos­
it instruments was mandated. Mr. Savage goes on in
his article to state that it has been this latter aspect
that has raised serious questions regarding the future
structure of the banking industry, more particularly 1
the ability or inability of the small institutions to com­
pete effectively for deposits against the large institu­
Effect of Removing Ceiling
The proposition is that the large banking institu-


.of deregulation

tions, even when not permitted to expand geographi­
cally, might be successful in attracting deposit funds
• away from the smaller institutions through the pay­
ment of very high interest rates. Previous studies deal­
ing with the success of the small vs. large banks in de­
posit competition, Mr. Savage goes on to state, all
have been conducted when the Regulation Q ceilings
HD were effective.
The question is whether the eventual removal of all
ceilings on interest rates will significantly alter the re­
sults of previous studies. He leaves to speculation the
question of how much of the interest-rate sensitive
• funds of the smaller banking markets may have been
transferred away already. While none of us can accur­
ately assess the magnitude of that transition to date,
as it relates just to community banks, we must try here
to assess those factors which will tend to hasten this
• trend, if indeed it is a trend, and determine what fac­
tors will serve to support the community banking in­
stitutions as deregulation of the financial sector con­
tinues to affect the competitive environment.


II. Sources of Profit

Sanford Rose, in his recent article entitled the Pre­
sent & Future Shape of Banking,” which appeared in
the American Banker on March 23, 1982,2examines the
HD sources of profits of American banks. He points out
that there are four distinct sources of profits which they
enjoy. Two of these sources are market determined and
two are not. A review of these sources may help us to be
more knowledgeable regarding the ability of community
HD banks to compete in a deregulated environment.
Mr. Rose states that the profits derived from benign
bank regulation as well as those derived from subsidized
government deposit insurance premiums are not related
to competitive market factors, but rather are gifts from
H the government. As the government becomes less ac­
climated toward giving things away (i.e. as we ex­
perience the process of deregulation) the remaining two
sources will become increasingly important.
One is the profit which is generated from the pooling
• of credit risk. The bank is able, hopefully, to pay those
whose funds it utilizes at a lower cost than it derives
from its portfolio assets and, consequently, generates
a positive spread which results in the profit from inter­
mediation. Finally, a bank may enhance its earning
® capacity by the profit derived from properly fore­
casting interest rates and mismatching asset with lia­
Federal Reserve Bank of St. Louis

bility maturities to properly reflect anticipated in­
terest rate movements. Keep these in mind as we ex­
amine some of the characteristics of community bank­
ing institutions.

III. Characteristics of Community Banks
The physical brick and mortar presence of the com­
mercial bank always has proved effective, albeit expen­
sive, and such a presence traditionally carries with it a
commitment to and a strong identification with the lo­
cality it serves, which does not go unrecognized by the
relatively stable depositor and borrower base of these
institutions. Inherent advantages of the commercial
bank include product knowledge and marketing moxie,
i.e., where to go with its marketing efforts. It has the
advantage of personal contacts and cross selling tech­
niques from its tellers on up. Management opportuni­
ties include the ability to act very quickly in the deci­
sion making process, to take advantage of joint ven­
tures in areas such as EFTS, trust investment and
computer softwares. Trade associations offer continual
educational opportunities in improving management
skills as do CPA firms and a host of consultant firms
who target on the lucrative market offered by over
11,000 smaller sized commercial banks in this country.
These institutions enjoy an economy of scale in opera­
tions that is reached rather quickly in banking and is a
unique aspect of this industry, through which profits
are generated with lower overhead and significantly
less sophistication than is required by their large bank
However, regulation and stability in growth and
profits over the years have served to breed a degree of
complacency into these institutions and their manage­
ment. This is evident in the resistance to change asso­
ciated with this segment of the banking industry. Reg­
ulation also has required more and more time and tal­
ent, which it has not been able to delegate to staff func­
tions already in place in large institutions.
Burdensome Regulations
Regulation has fostered onerous capital requirements,
placing banks at distinct operating disadvantages
with the less regulated credit unions, thrifts and bro­
kerage firms. Consumer protection laws, such as state
usury statutes, have proven to be particularly painful
to the small community banks that rely most heavily
on small proprietary business, individuals and part­
nerships for a preponderance of their asset funding.
Banking regulations and invididual income tax laws
affecting shareholders also remain burdensome, leav­
ing transfer of ownership stacked in favor of the larger
multi-bank holding companies. Evolutionary trends in
this area alone will result in significantly fewer in­
dependent bank charters in the remaining years of this

IV. The Deregulated Marketplace
Of Community Banking
The deregulated marketplace toward which we are
evolving will certainly be a place of increased competi­
tion with all financial institutions going after the same
deposit and credit business. As traditional regulatory
(Turn to page 42, please)
Northwestern Banker, September, 1982

(Continued from page 41)
supports recede, we are witnessing a continuing techno­
logical revolution that marches forward with an increas­
ing cadence. Emerging national EDP networks will no
doubt make national retail banking a fait accompli and
put national banking on a much faster timetable than
most of us have anticipated, according to an article en­
titled “ Electronic Banking,’’ in Business Week, Janu­
ary 18, 1982.3 This periodical goes on to state that such
an environmemt also is palatable to politician and reg­
ulator alike. It may well be that because of such pro­
gress, combined with other events, the anticipated au­
thorization of interstate banking by Congress could
turn out to be a non-event when it comes to pass.
George Parker, of the Stanford University Graduate
School of Business, when writing for the Harvard
Business Review, November-December, 1981,4 stated
that the successful banking institution of the future will
find it necessary to place much more emphasis on man­
agement, while experiencing a painful learning process
similar to that of other deregulated industries. It is easy
to agree with his position. Winners, he states, will
demonstrate effectiveness over losers in six distinct
areas. These are:

Cost accounting and pricing
Management of interest rate risk
People management
Marketing and planning
Strategy formulation

Community banks have ample opportunity to excel
in each of these areas.
1. The effective utilization of the small computer of­
fers some real opportunities to management to be inno­
vative and market oriented. Hardware and software
costs in this area are becoming very acceptable, even
amazingly low. A much lower degree of sophistication
permits flexibility and change with much more ease
than larger institutions can experience.
2. Cost accounting and pricing are areas of tradi­
tional criticism toward our industry by qualified obser­
vers. However, regulators have played a strong role in
fostering sound accounting principles and encouraging
costing techniques. Those who want to participate in
programs such as the Federal Reserve’s Functional
Cost Accounting program can do so with little effort.
The Comptroller’s National Bank Surveillance System
is in and of itself highly beneficial to bank manage­
ment in assessing the efficiency of its operations with
that of its peers.
Pricing is of paramount importance. As the commer­
cial bank obtains the ability to price liability funding
competitively, it must overcome usury restraint and
cover funding costs with a reasonable margin. This is a
big hurdle. Eventually, if the small bank can price its
portfolio assests on just as much of a national scale as
its liabilities, the return on assets will no doubt drop to
that of the national market and this, of course, will re­
quire a drop in equity capital to prevailing national ra­
tios, if return on investment is to remain attractive.
3. Management of the interest rate risk also will
prove to be a very difficult aspect of managing smaller

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

banks. While the principle is easy enough to grasp, the
realities of the more limited market place make match­
ing and calculating mismatching of assets and liabil­
ities more onerous. If we refer back to Sanford Rose’s
observation, that this will be one of the two important
sources of bank earnings in the future, then it is even
more critical.
4.5.6. The final three areas, each of which is impor­
tant, can perhaps be treated here collectively. To recruit
and retain good managers and leaders is a recognized,
key ingredient to any successful business enterprise.
Certainly, marketing, planning and strategy formula­
tion are necessary implicit functions of alert manage­
Opportunities for Community Bankers
The community bank should be able, in a deregula­
ted environment, to retain the advantages inherent
with its physical presence, its personal knowledge and
contacts within its market. These institutions should
continue to offer excellent opportunities for manage-^
ment with the entreprenurial spirit if the economies of
scale, which are well recognized and, as stated earlier,
reached rather quickly in banking, continue to exist. It
is very questionable, however, whether enough good
talent will exist to perpetuate the number of institué
tions presently in existence.
Profitable institutions have been and will continue
to be fair game for the larger participants in the mar­
ket place. Competition for deposit liabilities among the
larger banks and bank holding companies will no doubt
be very keen and should provide a seller’s market for
community bank stock over the next several years, es­
pecially when the larger buyers can pay premium pri­
ces and enjoy the unique opportunity of improving
their capital ratios, return on assets and return on
equity simultaneously.
* * *



In conclusion, I would observe that the public’s con­
cern with the structure of our financial system stems
from a desire to obtain quality services at the most
competitive price level. The nature of this structure
will have much to say regarding the performance of'
this industry in terms of its services and prices and, ul­
timately, its profits, which in turn is very influential in
regard to the health and well being of our national
A progressive environment stimulates continual1
change. Witness retailing, transportation, agriculture,
manufacturing and communications. If community
banking is to survive and thrive, it must be able to do
so while demonstrating to the public that it can, in
fact, prosper under the type of competition and change 1
that deregulation will unquestionably intensify. While
this opportunity may well exist, the alternative oppor­
tunity of selling, or exchanging equity with a larger
banking institution, may prove in many instances to
be more compelling.
1. Donald T. Savage, “ Developments in Banking Structure, 1970-81,” Federal Reserve
Bulletin, Vol. 58, pp. 77-85, February, 1982.
2. Sanford Rose, “ The Present and Future Shape of Banking,” American Banker, March
23, 1982, p. 1.
3. “ Electronic Banking,” Business Week, January 18, 1982, pp. 70-80.
4. George G.C. Parker, “ Now Management Will Make or Break the Bank,” Harvard
Business Review, November-December, 1981, pp. 140-148.






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remains unsurpassed in service and execution. All of our 9 branch
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One of the industry’s leading dealers with daily volume in Govern­
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LOS ANGELES (213) 614-1121
Federal Reserve Bank of St. Louis

PHILADELPHIA (215) 567-6804 POMPANO BEACH (305) 786-0786 SAN FRANCISCO (415) 398-7600


Banco announces
major overhaul
MAJOR reorganization program
for Northwest Bancorporation
of Minneapolis was announced last
month by John W. Morrison, Banco
chairman and chief executive officer.
Mr. Morrison said the reorganiza­
tion, effective October 1, is to pre­
pare for an operating environment
that Banco expects will be less reg­
ulated and far more competitive.
In the first stage of reorganiza­
tion, Robert A. Krane and E. Peter
Gillette, Jr., have been named coMr. Morrison also announced the
chairmen. Mr. Krane is currently formation of four business groups in
president of Banco. Under the new the corporate headquarters to for­
program Banco will not have a cor­ mulate strategy and planning and
porate president. Mr. Gillette is cur­ be responsible for product develop­
rently chairman and chief executive ment and marketing across all re­
officer of Northwestern National gions for Banco’s major banking
Bank of Minneapolis, Banco’s lar­ business segments: consumer bank­
gest bank. He will continue as chair­ ing, commercial banking, agricul­
man of the bank but will relinquish ture and financial institutions.
his role as chief executive officer.
“ While the line management of
W. James Armstrong, president Banco’s banks will be organized on a
of Northwestern National, has been regional basis,’’ Mr. Morrison said,
elected by the bank board to succeed “ there is a need to provide a coor­
Mr. Gillette as chief executive of­ dinating strategy and approach to
ficer on October 1.
those major customer segments that
Mr. Morrison said the two new are common to all regions, and these
vice chairmen will have line manage­ four business groups are charged
ment responsibility for all Banco with the responsibility of accom­
banks and most of Banco’s financial plishing that objective.
services companies. In addition,
“ The consumer banking group is
Banco’s banking business will be or­ responsible for product and market
ganized into eight regions, each strategies for the retail, or consumer
headed by a regional president, customer; the commercial banking
headquartered in their regions, plus group has that reponsibility for cor­
Northwestern National Bank of porate customers, including local,
regional, national and international
Currently Banco manages its corporations. The agriculture bank­
banking operations through a bank­ ing group deals with both agricul­
ing business group, based in the cor­ tural producers and processors. The
porate office and consisting of a financial institutions banking group
number of banking officers, each is concerned with Banco’s relation­
with responsibility for 10 to 14 ships with other financial institu­
banks. Under the new organization, tions, including correspondent
that group will be disbanded, its banks, the savings and loan in­
personnel reassigned and its func­ dustry, credit unions and others.’ ’
tions will be taken over by the new
Mr. Krane will have responsibility
regional presidents, Mr. Morrison for five bank regions, comprising
banks in Iowa, Nebraska, North and


Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

South Dakota, Montana and western •
Minnesota and, in addition, will have
corporate-wide responsibility for two
of the four business groups—con­
sumer banking and agriculture.
Mr. Krane also will be responsible ®
for all of Banco’s financial services
companies, except Dial Corporation.
These companies, which operate
throughout the United States, are M
not a part of the regional structure. 9
Mr. Gillette will have responsibili­
ty for Northwestern National Bank
of Minneapolis and for three bank
regions, including banks in the Twin 0
Cities metropolitan area, northern
and southern Minnesota, Wisconsin
and part of Iowa. He will have cor­
porate-wide reponsibility for the
other two business segments—com- 0
mercial banking and financial insti­
Mr. Morrison explained that
Northwestern National Bank of
Minneapolis is separate from the #
eight regions because of its size and
involvement in all markets. The
bank operates eight branches in the
Twin Cities, has offices in New
York, Denver, London, Luxembourg •
and Mexico City and has correspon­
dent banking relationships in 112
Both Mr. Krane and Mr. Gillette
are members of the Banco board of ®
directors. Richard S. Levitt, Dial
chairman, will be nominated for elec­
tion to the Banco board, and will re­
port directly to the Banco chairman. ^
Northwest Computer Services, 9
Banco’s computer and information
processing affiliate, also will report
to the chairman.
“ The concept of community bank- 0
ing,’’ Mr. Morrison declared, “ will
continue to drive our banking opera­
tions and we will always be a highly
decentralized organization. He said
the new structure will enable Banco 0
•improve resource mobility
•improve utilization of new
•relate technology to business ®
•develop common systems with
economies of scale
•respond quickly as a “ singlepunch” organization.”
Mr. Morrison reported that one of
the four business groups is already
in place—consumer banking, headed
by senior vice president Walter R.
Miller, Jr. He said the executives ®
who will head the other three bus-

iness segments will be announced at
a later date.
He explained that reorganization
of Banco is necessary “ if we are to
meet the growing competition from
money center banks and the large
non-bank companies that are ex­
panding into the financial services
field. We need to strengthen our
ability to compete both with our
traditional competitors and the nontraditional competitors.”
Mr. Krane has been president of
Banco since 1980. He started with
the Banco organization at Iowa-Des
Moines National Bank, Des Moines,
in 1959, following four years in the
United States Army. He was presi­
dent of Iowa-Des Moines National
Bank from 1974 to 1976 and was
president of U.S. National Bank,
Omaha, also a Banco bank, from
1977 to 1979, when he was named
executive vice president of the
holding company.
A native of Fairfield, Iowa, he
graduated with honors from the Uni­
versity of Iowa in 1955.
Mr. Gillette joined the Banco or­
ganization in 1959 following three
years of service in the U.S. Marine
Corp. He started with Northwestern
National Bank of Minneapolis as a
securities analyst. He was appoint­
ed vice president in 1967, senior vice
president in 1973, executive vice
president in 1974, president in 1979
and chairman and chief executive of­
ficer in 1980.
A native of Minneapolis, Gillette
has an AB degree in history from
Princeton University and a law
degree from William Mitchell Col­
lege of law.
In the second phase of reorganiza­
tion, Banco announced the appoint­
ment of eight regional presidents to
head newly established regional
groups of its affiliate banks in seven
states and other key assignments.
Mr. Morrison said the eight new
regional presidents and the regions
they will head, effective October 1,
Charles A. Russell, Minneapolis,
currently a vice president in Banco’s
banking business group, to regional
president, Region 1, encompassing
Duluth, the Iron Range and most of
northern Minnesota. Mr. Russell
will establish regional headquarters
in Duluth.
Gerald M. Kanne, Minneapolis,
currently executive vice president
and head of Banco’s banking bus­
iness group, to regional president,
Federal Reserve Bank of St. Louis









Banco Buys Dial; Seeks New Name
HE acquisition of Dial Corporation of Des Moines by North­
west Bancorporation, accomplished through formal merger
ceremonies in Des Moines on August 31, is reported to be the
largest purchase in history of a non-bank company by a banking
organization, Banco officials said. On that date the two com­
panies merged through the cash purchase by Banco of approx­
imately 4.5 million shares of Dial stock for approximately $252
million. Payment took place in Des Moines at Iowa-Des Moines
National Bank, a Banco bank.
The original agreement for the purchase at $56 per share was
made last September and approved in March, 1982 by Dial share­
Dial, with more than 2,300 employes, has 466 consumer fi­
nance offices in 37 states. Its largest operations are in California,
Ohio, Texas, Pennsylvania, Iowa, Florida, Massachusetts and
Banco, with more than 13,000 employes, operates 87 banks in
Minnesota, Wisconsin, North and South Dakota, Montana, Iowa
and Nebraska; five trust companies; and 11 other financial ser­
vice companies.
Federal Reserve Board approval requires that Banco must
dispose of some of Dial’s insurance assets and five Dial offices, all
in Iowa. It was stated these divestitures are minimal.
At year-end 1981 Dial had assets of almost $1 billion, while
Banco had assets of approximately $15 billion. No management
changes at Dial are contemplated, according to Banco chairman
John W. Morrison and Dial Chairman Richard S. Levitt.
Prior to the final purchase, Banco completed a public offering
of 500,000 shares of adjustable dividend preferred stock having
an aggregate stated value of $25 million. That offering was in ad­
dition to the sale a week earlier of 2,000,000 shares of adjustable
dividend preferred.
* * *


It was revealed late last month that Banco plans to announce
in mid or late September a change of name for the holding com­
pany, apparently more in keeping with the expanded nature of
the regional bank holding company’s banking and financial ac­
tivities. The name change is scheduled to be voted on formally
this month and announced first to employes of the system.
Northwestern Banker, September, 1982


Region 2, comprising the Twin
Cities metropolitan area (excluding
Northwestern National Bank of
Minneapolis). Mr. Kanne will head­
quarter in St. Paul.
Ronald D. McLellan, Minneapolis,
currently senior vice president and
head of the eastern division in the
banking business group, to regional
president, Region 3, covering south­
ern Minnesota, western Wisconsin
and part of northern Iowa. He will
headquarter in Minneapolis.
Harry C. Benson, Minneapolis,
currently president, Midland Na­
tional Bank, to regional president,
Region 4, covering most of Iowa. He
will headquarter in Des Moines.
James R. Campbell, Omaha, Neb.,
president of U.S. National Bank of
Omaha, to regional president, R e­
gion 5, covering Nebraska and part
of western Iowa. He will headquar­
ter in Omaha.
C.P. (Buck) Moore, Sioux Falls,
5. D., currently president of North­
western National Bank of Sioux
Falls, to regional president, Region
6, comprising South Dakota and
part of southwestern Minnesota. He
will headquarter in Sioux Falls.
Daniel G. Beck, Minneapolis, cur­

rently senior vice president and head
of the western division in the bank­
ing business group, to regional pres­
ident, Region 7, comprising North
Dakota and part of northwestern
Minnesota. He will headquarter in
Jackson L. Schutte, London, cur­
rently managing director of Cana­
dian American Bank, S.A., a subsid­
iary of Northwestern National Bank
of Minneapolis, to regional president,
Region 8, comprising Montana. He
will headquarter in Billings.
Mr. Morrison made these addi­
tional announcements:
•Ernest C. Pierson, currently ex­
ecutive vice president of Midland
National Bank, is elected to succeed
Mr. Benson as president and chief
executive officer of the bank, effec­
tive October 1.
•Mr. Campbell will continue to
serve as president of U.S. National
Bank of Omaha after assuming the
new office of regional president of
Region 5. Donald J. Murphy, cur­
rent chairman and chief executive
officer at the bank, will turn over to
Mr. Campbell the duties of the chief
executive officer of the bank on
January 1, 1983, and then will con­

tinue to serve as chairman until his 9
scheduled normal retirement at the
end of March, 1983.
•Mr. Moore will relinquish his du­
ties as chief executive officer at _
Northwestern National Bank of ^
Sioux Falls but will remain asso­
ciated with the bank as chairman
after he assumes the new office of
regional president of Region 6. His ^
successor as president and chief ex­
ecutive officer of the bank will be an­
nounced at a later date.
•Walter C. Johnson, currently a
Banco executive vice president, will £
become president, financial services
companies, and will have manage­
ment responsibility for the following
affiliated companies: Banco Mort­
gage Company (mortgage banking); £
Northwest Growth Fund (venture
capital financing); Banco Financial
Corporation (asset-based commer­
cial lending); Banco Credit Life In­
surance Company and Union Invest- q
ment Company (insurance-related
activities) and Lease Northwest,
Inc. (equipment leasing). These com­
panies, which operate across the
United States, are not part of the 0
regional organization.
•Effective September 1, Colin T.
Kagel will become senior vice presi­
dent and chief administrative officer
for Banco with responsibility over 0
these functions in the corporate
headquarters: human resources, le­
gal, government affairs, commun­
ications, corporate responsibility
and loan administration. He current- O
ly is senior vice president, ad­
ministrative group at Northwestern
National Bank of Minneapolis.
David Jarvis continues as Banco
executive vice president and chief fi- •
nancial officer in an unchanged role,
responsible for finance, invest­
ments, property administration and
corporate strategic planning and
□ ®

Three Men Join Staff of
ABA Government Relations

regulatory matters, specifically in
the areas of consumer credit and
bankruptcy. Prior to his joining
ABA, Mr. Stanley was a practicing
attorney in Hartford, Conn.
Mr. Meyer, as federal legislative
representative, will be involved in
grass roots legislative contact and
in coordinating efforts with other
state banking associations.
He served previously as assistant
director of the state associations
division of ABA, and since 1979 has

served as treasurer of BankPac,
A B A ’s Political Action Committee.
Mr. Maguire, also federal legisla­
tive representative, will be handling
general banking issues for A B A ’s
legislative group. Before joining
ABA, Mr. Maguire was administra­
tive assistant and Ways and Means
specialist for Congressman John H.
Rousselot of California. Prior to
that, he was a professional staff
member of the House Banking Com­

William J. Stanley, Jr., Brian M.
Meyer and Frank Maguire, have
joined the government relations
staff of the American Bankers Asso­
ciation, according to Gerald M. Lowrie, executive director of govern­
ment relations.
As federal representative in retail
banking services, Mr. Stanley will
deal chiefly with legislative and

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis


before it'stoo late.
The energy and forces at work
in banking and the accelerating
dynamics of finance are adding
grey hair to the temples of
bankers across the country.
Advanced Planning Systems,
Inc. helps bankers!
Once, assets were king and you
could run a bank by the seat of
your pants.
Today, changes occur too
rapidly; in the industry, in rates,
in new instruments, new com ­
petition, even in the trends. The
new rulers are profitability,
return on assets and spread
management. These demand
comprehensive planning.
Advanced Planning Systems
provides asset/liability manage­
ment systems and profit plans
to bankers.
Don't go grey over those tough
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Call the professional bank
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Here is a list of services
Advanced Planning Systems offers today’s banker:
P rofit P la n n in g

Com puter T im e S haring

Long and short range. Balance
sheet forecasting on a rolling,
monthly basis.

For frequent analysis of
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fluctuations and changes in
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A ction Pl a n n in g

B a n k Stock E v a l u a t io n

Enables cost/benefit analysis
and promotes management
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Is the firm undervalued? Over­
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A sset /L ia b il it y M ix

M o n th ly V a r ia n c e Reports

Is it rate sensitive? What can
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How well are you succeeding
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An analysis of the variances.

M a n a g e m e n t I n fo r m a tio n

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trade opportunity programs.

Minimum account sizes, give­
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What are they costing you?

Com puter M od el

O perations

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Con ting e nc y Pl a n n in g

Computer assisted contin­
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changes in market assump­
tions enabling fast reaction.

S ervices & Charges

Are they efficient? Systems
vs. people . . . more personnel
is not always the answer.
M in i -computers

How can you benefit from the
new technology? What hard­
ware fits your needs? Is good
software available for you?
M arketing

Retail, commercial, wholesale
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UeO pifaQ (jV h A M lic d trUMtCLQMA (U v a A f^ th t pQAt,
O O fct/lo i tk t pA£Ae/tot Q A vdpicuh, th e (jO b u /ll.

¿ V i?
Subsidiary of Clayton Brown & Associates, Inc.
605 E. Algonquin Rd. • Arlington Heights, III. 60005
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982



is as BS
00 IS ÖD
flB B 0 B B B E
fl B B S B B B
B 0 fl B 10 B

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Not b a n k -to -b a n k .
P erson-to-person.
That's the National Boulevard Bank approach
to correspondent banking. Each of our
correspondent customers enjoys the personal
service of an individual account officer
especially involved with his customers'
particular goals an d needs in today's
challenging business climate.
And, our very special kind of personal service
is a va ila b le across a broad range of functions

in four basic areas - Credit and Financing
Services, Assets-Liability M anagem ent
Services, Operational and Clearing Services
and M anagem ent and Marketing Services.
If you'd like that kind of personal service in
those kinds of areas, the person to call at
National Boulevard Bank is H. Peter DeRosier
at (312) 836-6868. M ake it person to person.

The Bank for the New Downtown.
400-410 N M IC H IG A N AVE . C H IC A G O . IL 60611
ONE ILLINOIS CENTER (111 E W a cke r), C H IC A G O . IL 60601
(312) 8 36 -6 5 0 0 • MEMBER FDIC

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

10:00 “ Bankruptcies, Divorces and
Other Problem Loans’ ’—Paul
Cation, attorney, Peoria.
10:45 Coffee break.
11:00 “ G ra in and L iv e s t o c k
Outlook’ ’—Dr. John Marten,
staff economist, Farm Jour­
nal Magazine.
Noon Adjourn.


D.R. Lovett, chmn. & pres., Dixon
W. J. Hocter, exec. v . p . , Chicago

Bank Makes Home Calls
On Flood-Stricken Residents

36th Annua! Ag. Conference—Sept. 15-16
O T HE Illinois Bankers Association
I is presenting its 36th Annual
Agricultural Credit Conference Sep­
tember 15-16 at the Ramada Inn,
Champaign. Erman Schairer, senior
# vice president, Woodford County
Bank, El Paso, served as conference
committee chairman. The program
schedule follows:
P.M. Tuesday, September 14
® 8:00 Early arrival get-together—
Iowa-Indiana Room.
A.M. Wednesday, September 15
8:15 Registration-convention cen­
ter lobby.
9:00 F irs t g e n e ra l s e s s io n —
University Hall.
•Presiding—Wink Schairer,
committee chairman, and sen­
ior vice president, W oodfood
County Bank, El Paso.
•Keynote Speaker—Frank
Naylor, United States Under
Secretary of Agriculture for
Small Community and Rural
9:45 •“ Advising Your Clients on
Marketing and Forward Pric­
ing’ ’—Howard H. Beermann,
director, Hedging Services
D iv is io n , H e in old C om ­
modities, Inc., Chicago.
10:30 Coffee Break.
10:45 •“ The Not-So-Peaceful Coun­
tryside: Help for the A g Cli­
ent Under Stress’ ’—Paul Barbick, associate, Vopatek &
Associates, Inc., Hinsdale.
Noon L u n ch eon —M idw est B a ll­
•Presiding—Warren Hanson,
president, IB A agricultural
division, and vice president,
W a tsek a F irst N a tion a l
Annual business meeting.
•Speaker—The H onorable
Kenneth G. McMillan, Illin­
ois State Senate, 47th Dis­
Federal Reserve Bank of St. Louis

2:00 Concurrent Workshops.
“ In-House Microcomputers—
What You Ought to Know” —
speaker to be announced.
“ Accounts Receivable Financin g -T h e FARM PLA N ” Rod Quisenberry, regional
sales manager, Associations
Credit Plans, Inc., Peoria.
“ Lending to Elevators: How
to A void Problem Situa­
tions’’—Ross Anderson, vice
president, St. Louis Bank for
3:00 Coffee and coke break.
3:15 Concurrent workshops re­
5:30 Complimentary reception—
Midwest Ballroom.
6:30 Banquet—Midwest Ballroom.
•Presiding—Warren Hanson.
•Remarks—Donald R. Lov­
ett, IBA president, and pres­
ident and chief executive of­
ficer, Dixon National Bank.
“ The Challenge of a Pro—Art
Holst, Peoria.
A.M. Thursday, September 16
7:15 Coffee and donuts—Conven­
tion Center Lobby.
7:30 Early bird sessions—Brundage, Zuppke & Illiniwek
“ In-House Microcomputers:
What You Ought to Know,
Part I I ” .
8:30 Coffee and donuts.
9:00 S e co n d
g e n e ra l
sion—University Hall.
•Presiding—Don Hopwood,
second vice president, IBA ag
division, and vice president
and assistant trust officer,
First National Bank of Pet­
“ The Future Informational
Needs of The A g Lender and
His Customer—Dr. Thomas
Frey, associate professor,
University of Illinois, Urbana.

In a four-day period following the
July 22 multi-million dollar flood,
residents of damaged Deerfield
homes were personally contacted by
representatives of First National
Bank of Deerfield offering immed­
iate loans to relieve their housing
“ When initial damage estimates
to local homes and businesses were
reported in excess of $9 million, we
knew that residents needed assur­
ance that loan money was readily
available to them,’ ’ said Alan M.
Meyer, bank president.
Bank service personnel made
more than 1,000 house calls on res­
idents in the flooded areas, expres­
sing compassion and describing the
available loan program.
“ Our message was ‘we are here
when you need our help,’ ’ ’ Mr.
Meyer said.
The bank reported receiving more
than 150 calls from residents follow­
ing the first day of the program.
“ While the responses varied, every
homeowner expressed appreciation
for our compassion and our will­
ingness to help them.’ ’ Mr. Meyer
One resident who suffered more
than $47,000 in estimated damages
was amazed by the bank’s prompt
response. “ I never expected that a
banker would personally visit me,
but after our experience, it certainly
provided a lift in getting started
once again,’ ’ he said.
Mr. Meyer commented that the
processing of both Federal disaster
loans to eligible residents and the
settlement of m ajor insurance
claims may take time. “ To restore
damaged homes to normalcy, we are
offering second mortgage loans,
home improvement and short-term
loans at lower than market rates,’ ’
Mr. Meyer said.
“ More than the loan monies, how­
ever,’ ’ he said, “ is that the homeowners know that we personally
r e s p o n d e d to th em in th is
northwestern Banker, September, 1982


Illinois News

OMNI ™Network Start-Up Announced
I NTERCHANGE Marketing Corp.
of Oak Brook has announced the
introduction of a new Illinois ATM
Network. The program is called the
OMNI™ 24 Hour Banking Net­
work, and will consist of installa­
tions in Union Station, the Fox
Valley Shopping Center plus eight
other off-premises locations in the
suburban Chicago area by year end.
Several additional machines in the
OMNI network will be cooperatively
deployed by IMC and participating
financial institutions.
Support for the OMNI Network is
to be provided by SATM Services,
through ATM Network Manage­
ment Corp.’s Downers Grove SATM
Center. This midwestern SATM cen­
ter presently provides live on-line
support for 138 ATMs, including
those in five regional ATM pro­
grams operated by financial institu­
tions. Under the agreement with
ATM Network Management Corp.,
IMC offers participating financial
institutions the support of SATM
Services and positioning in the na­
tional SATM Network. SATM parti-

V.P. Named in Galesburg
H. Ray Moore has been named to
the position of vice president of the
lending division
of First Gales­
burg N ational
B a n k , G a le s ­
S in ce 1973
Mr. Moore has
been vice presi­
dent of the mar­
keting division
at First National
and has overseen
the implementation of numerous
new services, including the Dimen­
sion 60 senior program and the
Money Market Draft Account.

Acquisition Announced
The directors of Central of Il­
linois, Inc., and the directors and
owners of Mt. Morris Banshares,
Inc. of Mt. Morris have announced
the consummation of an agreement
to sell the ownership of Mt. Morris
Banshares to Central of Illinois, Inc.
Central of Illinois, Inc. is a bank
holding company owning the stock
of Central National Bank of Ster­
ling, Illinois. Mt. Morris Banshares,
Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

cipants may also allow their cus­
tomers access to the shared OMNI
According to Dennis Gamradt,
president of Interchange Marketing
Corp., an OMNI 24 Hour Banking
logo applied to the machines of OM­
NI participants will facilitate con­
sumer recognition of ATM s in the
network. American Express green
and gold cards, along with M AS­
TERCARD debit, credit and gold
cards may be utilized in the OMNI
machines, and participants do have
the option of issuing an OMNI card
to their customers.
E.L. Smith, president of ATM
Network Management Corp., sees
the agreement as an expansion of
services which will greatly benefit
consumers. “ The OMNI programs
will provide customers of financial
institutions the access to off-premises A T M s—in areas where they
shop, meet the train and carry on
their business. SATM is pleased to
provide technical support to this
progressive new network.”
Inc. is the owner of the Citizens
State Bank of Mt. Morris. Don E.
Cousins, president of Central of Il­
linois, Inc., stated that this agree­
ment becomes final upon the ap­
proval of federal regulatory author­
ities which is expected in the near
future. They advise that all present
directors, officers and personnel of
the two banks involved indicated a
willingness to serve in their present
On June 30, 1982, Citizens State
Bank of Mt. Morris reported total
assets of $23,149,963. Central Na­
tional Bank of Sterling reported
total assets of $140,051,649. Com­
bined capital accounts of the two
banks total $13,060,928. The sale
price of the transaction was not

Bank of Yorktown Expands
Board from Seven to Nine
At a recent special stockholders’
meeting, the Bank of Yorktown elec­
ted six new members, increasing
board membership from seven to
nine. This follows the recent affilia­
tion of the bank with the Cole-Taylor Financial Group.
Edward J. Shaw, president of
Bank of Yorktown, announced the

following new board members:
C.J. Gauthier, chairman and pres­
ident, NICOR, Inc., a prominent
civic and business leader; Sidney J.
Taylor, chairman of the executive
committee, and Irwin H. Cole, depu­
ty chairman of the executive com­
mittee, both with Cole-Taylor Finan­
cial Group; Frank E. Bauder, chair­
man of Drovers Bank of Chicago
and Main Bank; James J. Carmody,
president of Drovers Bank of Chi­
cago, and James V. Tosto, deputy
chairman of Main Bank of Chicago.
Drovers Bank of Chicago and
Main Bank are also affiliated with
the Cole-Taylor Financial Group,
and the Bank of Yorktown brings
the number of affiliated banks to
three in the group.

Roselle Banker Honored
Paul F. Boehne, vice president,
public relations and marketing at
R o selle S tate
Bank and Trust
Co., Roselle, was
recently desig­
nated a Paul
Harris Fellow by
th e
R o ta r y
Foundation of
Rotary Interna­
Mr. B oehne
served as pres­
ident-elect of Rotary Club of
Schaumburg 1979-80 and president,

Northern Trust To Buy
Colonial Bank, Schaumburg
Northern Trust Corporation, ^
Chicago, has signed an agreement to w
purchase all of the shares of stock of
the Colonial Bank of Schaumburg in
Schaumburg. The action was ap­
proved today by Northern Trust’s £
board of directors.
Colonial Bank has leased office
space in the Schaumburg Corporate
Center at 1501 Woodfield Drive.
Following regulatory approval, the ^
bank will operate as Northern Trust
Northern Trust Corporation has
purchased O ’ Hare International
Bank, N.A., which was renamed £
Northern Trust Bank/O’Hare N.A.
It has also signed an agreement to
purchase the First Bank, Naperville.
Pending approval of that purchase,
The First Bank, Naperville will be %
renamed Northern Trust Bank/Naperville.



These are uncertain
times. W e have been
in a serious recession,
but w e’re not sure
how deep it has been
or how fa st 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 im ports which may or
may not prove dependable.
All of this uncertainty makes
business lending very difficult.

However, SLT can
eliminate some of the
uncertainty th a t lenders
face by guaranteeing
your custom ers’ inventory
as pledged collateral.
For over 5 0 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 14/241 9750 • Offices in Maior Cities
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Illinois News

Two Oldest Savings Account
Holders Meet to Reminisce

45th Annual Trust Conference — Oct. 5-6*

T HE 45TH ANNUAL Trust Con­
Judge Emanuel Rissman was 11
ference of the Illinois Bankers
years old and Lawrence Levin was
Association has been changed to
10 when their fathers opened sav­
two one-day conferences, the first
ings accounts for them at Amalga­
being held October 5 at the Holiday
mated Trust & Savings Bank in
Inn O ’Hare, Kennedy, and the sec­
ond October 6 at the Holiday Inn,
Their fathers helped found the
Decatur. The schedule is identical
bank, which opened on July 3 of that
for each day with slight changes in
year. Judge Rissman’s father, Sid­
the speakers presenting certain
ney Rissman, reserved for his son
workshops. The one day conference
savings account number 61, after
schedule follows:
Local 61 of the Amalgamated Cloth­
ing Workers of America, of which he A.M.
October 5 & 6
was a member and officer. Levin’s
8:30 R egistra tion , co ffe e and
father, Samuel Levin, also a union
member and officer, got account
9:00 Trust Investments Panel.
number 816 for his son Lawrence.
10:00 Coffee break.
Those two are the oldest savings
10:15 T rust In vestm en ts, co n ­
accounts remaining today at the
Amalgamated Bank. The two ac­ joined its rank, bringing the total
count-holders got together recently number of banks and savings and
to celebrate the bank’s birthday and loan associations to 67. Members in­
to reminisce. Judge Rissman sits in clude - 34 Chicago area participants,
Small Claims Court in Chicago. 27 Rockford area members and 6
Lawrence Levin is a vice president new members of the Central Illinois
of Amalgamated Bank.
Funds Transfer Association.
The bank was founded by a joint
Members of the C.I.F.T.A. in­
board of Chicago locals of the Amal­ clude, Millikin National Bank of
gamated Clothing Workers. Samuel Decatur, The First National Bank of
Levin was its first chairman, and Decatur, Northtown Bank of Deca­
Sidney Rissman was on its board. tur, Mt. Zion State Bank, The Amer­
On the first day of business, more ican Bank (Cerro Gordo) and Hick­
than 1,000 accounts were opened, ory Point Bank (Forsyth).
most by union members.
Money Network machines will al­
Almagamated Bank was bought so be available soon in the western
from the union in 1967 by a group suburb of Lombard as a result of
headed by its current chairman, Bank of Yorktown joining the net­
Eugene P. Heytow, who moved it to work.
its present location, One W est
Monroe, Chicago. Since that time Promoted in Oak Brook
it has gone from $40 million in
The First Security Bank of Oak
assets to over $230 million.
Brook has announced the promotion
of Nicholas D.
Keseric, Jr., to
the position of
a ssista n t vice
p r e s id e n t
Mr. K eseric
joined the bank
early in 1982.
His new respon­
sibilities will in­
clude the impieN D‘ KESER,C
mentation of marketing programs
and the fostering of growth of com­
LEFT: Judge Emanuel A. Rissman and
Lawrence Levin meet to celebrate the
mercial business through customer
bank’s birthday and to reminisce.

Seven New Banks
Join Money Network
Money Network recently an­
nounced that seven new banks have

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Support Agreement Announced
E.L. Smith, president of ATM
Network Management Corp., and
Greg Jones, president of the Central


11:00 Land Trusts.
12:00 Luncheon.
•Luncheon remarks—Donald
Lovett, president, Illinois
Bankers Association, and
president, Dixon National
1:30 Legislative update.
2:00 Concurrent Workshops.
“ The IB A M aster Plan
System: A Users Panel.”
“ Special Investments: Real
“ Estate Planning Update.”
3:00 Coffee and coke break.
3:15 Workshops repeated.
4:15 Adjourn.
Illinois Funds Transfer Association,
have announced the completion of a
new ATM Network support agree­
Under the terms described, SATM
will provide switching services for
C IFT A ’s new ATM network, opera­
ting in the Decatur area. The Net­
work will be issuing Money Network
cards to their customers, and par­
ticipants have all become members
of the PLUS Network, through
sponsorship of Chicago’s Continen­
tal Bank.
The Decatur Network will initial­
ly consist of 15 ATMs. Two data
centers will handle processing for
the group—Landmark Data Servi­
ces and Anacomp, both located in
Decatur. Proprietary and shared
transactions originating at the
ATMs will be authorized and record­
ed through the SATM Switching
Center in Downers Grove, with set­
tlement and sharing reports being
passed back to the financial institu­
tions daily.

Elmhurst V.P. Elected
Thomas F. Franklin, vice presi­
dent of corporate planning/mar- ^
keting for Elmhurst National Bank,
has recently been elected second
vice president of the Northern Il­
linois Chapter of the Bank Mar­
keting Association. He will assist in ^
the overall operations and program­
ming activities of the Northern Il­
linois Chapter.
Mr. Franklin joined Elmhurst Na­
tional in 1977 and was promoted to f
vice president and division head in




B a sic 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
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
d iffe 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 .
p a te n te d “ re 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
T r i p le d e s ig n a t io n th r o u g h c o lo rs , p r in t i n g a n d le tte rs .
a lw a y s in re 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
T a p e re d e dg e s.
a ll c o in s fro m l c to $1.00.
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
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.
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
P acked fla t. In s ta n t p a te n te d “ Pop O p e n ” a c tio n w ith fin g e r
n ic k e ls , $2.50 in d im e s , $5.00 in q u a rte rs .
t ip 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 co lo 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 c o d e d p a n e ls w ith in v e rte d a n d re v e rs e fig u re s . M a de
C o lo r co 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 . . .
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
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
d e x trin e g u m m in g used.
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 edg 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
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 m o u n t a p p e a rs o n to p a n d b o tto m o f p a cka g e . E xtra w id e
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
r m a rk in g a n d 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
e a se 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
a n d s to ra g e . P u re d e x trin e g u m m in g .
in h a lv e s . T a p e re d e dg e s.
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 .



L .

Federal Reserve Bank of St. Louis



H A N N I B A L ,



D E P T .

Northwestern Banker, September, 1982


Harris Bankcorp, Inc., parent
company of Harris Trust and Sav­
ings Bank, completed its purchase
of Argo State Bank, Summit, Aug­
ust 4. The final agreement was signed
by representatives of Harris and
CPC International, Inc., which had
owned the Argo bank since the
1930s. Approval of the transaction
by the Federal Reserve Board was
received in June.
The agreement calls for a cash
purchase price of $3.3 million, based
on year-end book value and subject
to certain adjustments for subse­
quent earnings. Argo State Bank’s
assets as of June 30 were $50 million
and total deposits were $43 million.The bank, located at 7539 W.
63rd Street in Summit, also has a
deposit service facility at 6343 W.
63rd Street in Chicago.
While no changes in staff are con­
templated, a representative of Har­
ris Bankcorp soon will be named to
the Argo board. The bank’s name
eventually will be changed to reflect
Harris Bankcorp ownership.
* * *
John F. Burns, founder and presi­
dent of Newport Press, Chicago, has
been elected to
the b oa rd o f
directors of the
Colonial Bank
and Trust Com­
M r.
B u rn s
had served as an
advisory board
member of Col­
onial Bank prior
to this election.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

He also serves on the board of First
Colonial Bankshares Corporation.
* * *

ago. He has been a member of the
Chicago Chapter since 1972.
* * *

Mid-Citco, Inc., holding company
of the Mid-City National Bank of
Chicago, has announced the signing
of the contract to purchase the First
National Bank of Morton Grove.
This acquisition is subject to reg­
ulatory approval and approval of the
shareholders of the Morton Grove
The bank holding company repor­
ted record first-half, ending June 30,
net earnings up 28% to $1,392,000
compared to $1,087,000 for the same
period in 1981. Assets during the
period rose to $222,000,000 from
In announcing the proposed ac­
quisition of the First National Bank
of Morton Grove, Kenneth A. Skopec, president of Mic-Citco and the
Mid-City National Bank, said the
Morton Bank will operate as a whol­
ly owned subsidiary of Mid-Citco,
Mr. Skopec said terms of the ac­
quisition call for Mid-Citco to pur­
chase for cash the 150,000 shares of
stock held by shareowners of the
Morton Grove bank at $41.50 per
In addition to its full-service
facility at Madison and Halsted, the
Mid-City National Bank operates an
executive banking center at III Il­
linois Center.
With the acquisition of the First
National Bank of Morton Grove,
which has assets of approximately
$120 million, Mid-Citco assets rise
to $342 million, making it one of the
top 20 bank holding companies in
the Chicago area.
* * *

James J. Martin has joined North 0
Bank as business development of­
ficer reporting to Mayo C. Walcott,
president. In his new position at the
bank’s headquarters at Lake Point
Tower, Mr. Martin will be responsi- #
ble for both internal and external
communications as well as the
bank’s overall business develop­
ment program.
Prior to joining North Bank, Mr. #
Martin was vice president of lending
at Community Bank and Trust,
Hanover Park, where he also direc­
ted marketing.

Americorp Financial to
Acquire Two Illinois Banks
David W. Knapp, president and
chairman of Americorp Financial,
Inc., recently announced that agree­
ments in principle have been reached
for the acquisition of First National
Bank of Woodstock, Woodstock,
and the acquisition of a controlling
interest in Carpentersville Savings
Bank, Carpentersville, for cash
amounts to be determined by for­
The proposed acquisitions are
subject to execution of definitive
agreements, shareholder approvals
as may be required, approval by ap­
propriate banking and regulatory
authorities and consummation of
the previously announced reorgan­
izations whereby American National
Bank and Trust Co. and Colonial
Bank of Rockford would become
wholly owned subsidiaries of Ameri­
corp Financial, Inc.

Joins Crestwood Bank
John A. Greathouse, administra­
tive vice president of Amalgamated
Trust & Savings Bank, has been
elected president
of the Chicago
Chapter of The
Robert M orris
M r. G rea thouse was elec­
fo r
1982-83 year,
having served as
first vice presi­
dent last year J.A. GREATHOUSE
and second vice president a year

William R. Bruin has recently
joined Crestwood Bank, Crestwood,
as chief executive officer and
Prior to coming to Crestwood
Bank, Mr. Bruin served as chief ex­
ecutive officer of Industrial Na­
tional Bank of East Chicago where
he was in charge of all bank opera­
tions. His 25 years of banking ex­
perience also includes service as
president of Thornridge State Bank
in South Holland and vice president
of First National Bank in Harvey
and Michigan Avenue National







L oss co n tro l e x p e r tise ,
sta te -o f-th e -a r t te stin g d e v ic e s, a n d



traits that makes Employers Mutual’s insurance
programs attractive to business owners seeking
improved profitability.
Employers Mutual makes a lot of sense to
independent agents, too. Our loss control expe­
rience and equipment and our common sense
approach to improving hazardous conditions in
the workplace can help you sell. . . and keep. . .
profit-minded commercial clients.

One of our policyholders sensed a potential carbon
monoxide problem. An EMC on-site test con­
firmed the danger. We recommended some simple
corrective steps to meet health/safety standards.
Said the policyholder: “It wasn’t intricate
or involved; it wasn’t expensive. . . he just mixed
his education with a bucketful of common
A bucketful of common sense is one of the



Em ployers M utual Com panies
Des Moines, Iowa
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


G ary R ohlîsen
Speaks Overlínes

When one of your customers needs to borrow
beyond your limit, or when you run into a com­
plicated credit situation, it’s helpful to talk with
an experienced banker who cares about com­
munity banks. That’s Gary Rohlfsen, and that’s
We are particularly sensitive to the needs and

pressures faced by independent community
banks. We believe in cooperation, not competi­
tion, for your customers.
We want to be your partner and help you solve
your problems. It’s easy to put an American
correspondent banker to work for your bank.
Just call (612) 298-6331.


Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis





Richfield Bank & Trust
Names Two Senior V.P.s

J.P. Ingebrand, pres., M ora
T. L. J e ffe rs , exec. v . p . , M in ne a p o lis

Officers Recommended for MBA Posts
sociation nominating committee
met recently and recommended Her­
bert A. Lund, Galen T. Pate, Clinton
D. Kurtz and James R. Jorstad for
endorsement for the top elected of­
ficers in the association for 1983-84,
according to Charles H. Cornell, Fi­
delity Bank & Trust Co., Minneap­
olis, and chairman of the 1982 nom­
inating committee.
Recommendations will be acted
upon at each of the nine M BA dis­
trict meetings in September.
Herbert A. Lund, president, Se­
curity State Bank, Albert Lea, is the
proposed candidate for M BA presi­
dent for 1983-84 to succeed John P.
Ingebrand, president, Kanabec
State Bank of Mora. Mr. Lund is
currently serving as first vice presi­
dent of the Association.
Galen T. Pate, president, Signal
Hills State Bank, West St. Paul, is
proposed for M BA first vice presi­
dent for 1983-84 to succeed Mr.
Clinton D. Kurtz, president, Cit­
izens State Bank of Norwood, is the
recommended 1983-84 candidate for
second vice president.
James R. Jorstad, chairman, Citi­
zens State Bank, Hayfield, is recom­
mended to serve a second term as
M BA treasurer in 1983-84.
The nominating committee in­
cludes the nine M BA district pres­
idents. The recommendations will be
presented at the M BA district meet­
ings and elections will take place at
the June, 1983, Minnesota Bankers
Association annual convention to be
held in Minneapolis.
Regulation Z, M B A ’s strategic
plans, legislative objectives and a
recap of current programs are topics
planned for the 1982 district meet­
Registration for all meetings is
from 2-3 p.m., with sessions begin­
ning promptly at 3 p.m. John Jack-

Federal Reserve Bank of St. Louis

son, M B A ’s general counsel, will
open the session with a discussion of
management issues relating to the
Regulations Z - Truth in Lending
rules which take effect October 1.
A report on M B A ’s strategic
planning progress is next on the
agenda. The Strategic Planning
Committee has spent the past few
months preparing a long-range road
map for the association and a draft
of that plan will be presented at the
The endorsement process for
M B A ’s 1983-84 officers and election
of district officers is the next item of
In addition to endorsing state of­
ficers, each district must elect dis­
trict officers and districts 1, 2, and 5
name new representatives to the
M BA board of directors.
Following the elections, a sum­
mary of current M BA programs will
be presented along with the intro­
duction of a new M BA endorsed pro­
gram called PEP, Personal Econom­
ics Program.
There is also time planned for dis­
cussion of topics suggested by in­
dividual districts.
Following dinner, M BA President
John P. Ingebrand will share his
views and objectives for M BA and a
motivational speaker will conclude
the session.

Robert N. Prentiss, Jr., has been
named senior vice president, trust/
investments, and Robert D. Miller,
CPA, has been named senior vice
p r e s i d e n t , finance/operations, for Rich­
field Bank &
Trust Co., Rich­
Mr. Prentiss
joined the bank
eleven years ago
as trust market­
ing representa­
tive, serving
most recently as vice president and
trust officer.
Prior to joining Richfield Bank &
Trust in January of this year, Mr.
Miller was employed as audit man­
ager in the Minneapolis office of
Alexander Grant & Company,

Elected President in Newport
The board of directors of Town &
Country Bank of Newport has an­
nounced the elec­
tion of Edward
G. Gutzmann as
presi dent and
chief executive
M r.
mann has been
associated with
m etropolitan
banks for over
20 years, having
spent a number of years with the
American National Bank of St.
Paul. He served most recently as ex­
ecutive vice president at Capital Ci­
ty Bank in St. Paul.

1982 Minnesota District Meetings





Maddens, Brainerd
Holiday Inn, Grand Rapids
Best Western, Thief River Falls
Sunwood Inn, Morris
Hilton Inn, Minneapolis
Orchid Inn, Sleepy Eye
Holiday Inn Downtown, Rochester

Northwestern Banker, September, 1982


When McNally Industries
needed a loan, we
m oved into high gear

Our overline participation
has been instrumental
in their success.
When a customer looks to you for a loan, he
doesn't want to hear that your loan committee
meets once a week. He wants a fast response.
And, when the loan requires participation, you
expect the same kind of response from your
At First Bank Saint Paul, we provide
comprehensive credit services to our
correspondents. Each of our calling officers is
trained to be as responsive as you are in meeting
and understanding your customers' borrowing
For example, when McNally Industries, a
precision gear manufacturer, decided to acquire a
new product line, they needed a decisive loan
response from First Bank of Grantsburg— not a
"wait and see" approach. That's why their bank
came to the Correspondent Banking Division of
First Bank Saint Paul. They knew they would get
prompt and total support.


Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Our correspondent banking team is headed by
Dale Hanson. Since 1968, Dale has been the
head of a commercial loan division and a member
of the senior loan committee. His experience has
taught him the value of total support for you and
your customer. And if that means joining you and
the calling officer in the field, to better understand
their needs, he'll do it.
It is this kind of concern from Dale Hanson and
our calling officers that sets First Bank Saint Paul
apart. We have the resources and lending
capabilities to help your customers grow. And
when your customers grow, we all benefit.
If you are interested in a correspondent
banking relationship that is committed to your
customers as you are, call our Correspondent
Banking Division at 291-5585.

F irs t B ank S ain t Paul
Member First Bank System

Correspondent Banking Division
332 Minnesota Street
Saint Paul, Minnesota 55101




to right Correspondent Bankers Dale
Mishou of First Bank
îtyqidyfiÉipigiL the needs of McNally
; with its President. A1 Sorensen, and
PresïaemVTirst Bank of Grantsburg.
Federal Reserve Bank of St. Louis


Twin Cities

Eight officers in the management
structure of First Bank Saint Paul
have been elevated to higher posi­
tions, along with 22 officers who
have been promoted, according to
Charles E. Arner, chairman and
chief executive
Elected to the
position of ex­
president are:
Dianne E. Ar­
nold, consumer
banking group;
John F. Mullen,
investment ser­
vices group, and
Gerald P. Nichols, operations group.
All three are members of the bank’s
management committee.
Elected to the position of senior
vice president and to membership on
the bank’s management committee
are: Roger W. Berg, personnel; Dale
S. Hanson, commercial lending
group II and correspondent bank­
ing, and Richard L. Shepley, com­
mercial lending group I and interna­
tional banking.





Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Elected as senior vice presidents
are: Richard C. Swanberg and John
M. Wooldridge, investment ser­
Named to the vice president post
are: Duane H. Wille, loan admin­
istration and review; Filmore G.
Enger, Valerie P. Heller, Eileen
Long, John C. Whitaker and Ran­
dall C. Wolf, commercial banking
group; Michael T. Mishou and
James A. Russell, correspondent
banking; Bruce W. Hebei and Clay­
ton L. Johnson, securities sales;
Anne G. Ferrell, private banking;
John K. Lukaska, international
banking; Robert J. Peroutka, bank
bond advisory; Duane A. Senneseth,
computer service sales/cash manage­
ment; Allan G. Vagstad, municipal
underwriting and trading, and Gary
A. Woeltge, consumer banking.
Named to assistant vice president
are: Frank J. Dutke, commercial real
estate; Michael J. McGroarty and
Daniel M. Quinn, commercial lend­
ing; John M. Schmillen, accounting;
Stewart M. Shacter, systems, and
W. John Wendler, metropolitan




First Bank board of directors also
elected DeWalt H. Ankeny, Jr. and ^
Ryal R. Poppa to its board of direc­
tors. Mr. Ankeny, vice chairman of
First Bank System, Inc., was for­
merly chairman and chief executive
officer of First Bank Minneapolis, f
where he had been associated since
1967. Mr. Poppa has been chairman
and chief executive officer of Buckbee-Mears Company since January,
* * *
James J. Hearon, III, president
and chief executive officer of Na­
tional City Bank of Minneapolis, o
headed a delegation of 13 bankers
from seven United States banks who
visited China recently. The trip was
made under the auspices of The Na­
tional Council for U.S.-China Trade, O
which headquarters in Washington,
D.C. Mrs. Hearon accompanied Mr.
Hearon on the trip.
Also included in the group were
John P. Finerty, vice president, #
First National Bank of Chicago, and
John R.G. Parsons, vice president
for trade finance-Asia, Hong Kong,



To the businessman who comes into your bank
looking for a loan, there’s very little middle ground.
He either gets what he wants or he doesn’t.
But sometimes it’s hard for your bank to say “yes”
to even a potentially profitable business loan. The size of
the request, high degree of leverage on the company’s
balance sheet, need to monitor collateral closely, or a
variety of other reasons may indicate the need for FBS
Business Credit’s asset-based lending capabilities.
We specialize in asset-based revolving credit and
other customized loan packages secured by accounts

receivable, inventory, equipment, or other assets.
Your bank retains all account balances and other banking
business, and participates in the loan to the degree
you wish.
And because our headquarters are here in your
region, we can move fast when you need a decision.
So call FBS Business Credit when you’re faced
with a loan application you’d really like to approve. We can
make your bank look a lot less like a stiff arm—and a lot
more like a helping hand.

(j||| FBS Business Credit
©1981 First Bank System, Inc.
Federal Reserve Bank of St. Louis

Member First Bank System

FBS Business Credit, Inc., 200 Soo Line Building, P. 0. Box 522, Minneapolis, MN 55480, (612) 370-4990

Member f d i c

Northwestern Banker, September, 1982


Minnesota News

for First National. Their bank was
the first to establish financial rela­
tions with the People’s Republic
Bank of China, in 1975.
The other delegates represented
banks from the east coast and Cali­
* * *
C. Roger Lundbeck has joined
Midland National Bank of Min­
neapolis as vice president and trust
investment o f­
ficer, according
to Harry C. Ben­
son, president
and chief e x ­
ecutive officer.
Mr. Lundbeck
joined N orth­
tional Bank of
Minneapolis in
1969 in the bond
department, serving most recently
as a portfolio manager.
* * *
W. Merton Dresser, president of
Northwestern National Bank South,
Minneapolis, has announced the
election of Gerald H. Hansen to vice
president in charge of installment
loans and manager of the new facili­
ty in Eden Prairie, scheduled for
opening in 1983, and Francie A.
Pumper to commercial lending of­



Ms. Pumper joined Northwestern
Bank South as a credit analyst
trainee in 1980.
* * *
Inter-Regional Financial Group,
Inc. has announced it has filed an ap­
plication with the Minnesota State
Banking Commission for a charter
to create the state’s first stock sav­
ings and loan association. The filing
is the first under a Minnesota stat­
ute passed in 1981, which permits
state savings and loan associations
to be organized in stock form.
If the application is approved, the
new subsidiary will be named Dain

Banker, September, 1982
Federal Reserve Bank of St. Louis

Savings Association and will begin
operating in early 1983 from offices
in downtown Minneapolis. It will be
the first new savings and loan to
serve the Twin Cities in decades.
Thomas E. Holloran, IFG chair­
man and chief executive officer,
noted that depositors’ funds would
be insured up to $100,000 by the
Federal Savings and Loan Insur­
ance Corporation.
Thomas R. Fritz, IFG vice presi­
dent of corporate development, will
become president of Dain Savings
Association. Prior to joining IFG in
1979, he was director of research for
Dain Bosworth Incorporated, one of
IF G ’s two securities and investment
banking subsidiaries.
James M. Burkholder will become
Dain Savings’ executive vice presi­
dent of finance and John G. Lohmann, Jr., will serve as executive
vice president of lending. Both have
served in senior capacities in the
savings and loan and commercial
banking industries.
* * *
Northwest Bancorporation has
elected Harold S. Webster as vice
president, corporate communica­
tions. He suc­
ceeds Josie Cor­
ning, who has
resigned to re­
turn to her home
state of Texas.
Banco also an­
nounced the con­
solidation of ex­
ternal communi­
cations func­
tions that pre­
viously operated independently at
both the corporate headquarters and
at Northwestern National Bank of
Minneapolis. The newly consoli­
dated corporate communications
division, in addition to its tradi­
tional role, will now also be respon­
sible for the major share of external
communications programs for its
largest bank. These programs in­
clude media relations, external
publications and general com ­
munications support for the bank’s
economics department and for the
bond, trust, international and
domestic banking groups.
Mr. Webster, a senior vice presi­
dent, joined Northwestern National
Bank in 1978. He was previously a
vice president and senior account ex­
ecutive with Padilla and Speer, a
Minneapolis-based public relations

consulting firm. Prior to that he was
director of corporate communica­
tions at D ATA 100 Corporation,
Minnetonka, and assistant manager
of shareholder relations at Investors
Diversified Services, Inc. (IDS),
* * *
James H. Hearon, III, president
and chief executive officer of Na­
tional City Bank of Minneapolis, re­
cently announced the appointment
of Charles H. Robbins to the bank’s
official staff.
Mr. Robbins
joined the staff
of National City
Bank as assis­
tant vice presi­
dent of the cor­
porate services
division of the
commercial bank­
ing department.
He was formerly
associated with Northwestern National Bank of Minneapolis and
Northwestern National Bank of St.
* * *
Northwestern National Bank of
South St. Paul has announced the
promotion of Marlys M. Robole to
assistant vicepresident.
M s. R o b o l e
began her bank­
ing career in
1953 at the
Ba n k,
Menomonie, W iscon­
sin. She joined
the Northwest- “
ern N a t i o n a l
Bank of South St. Paul in 1958 as a
teller. In 1976 she was elected per­
sonal banking officer, in 1978 mort­
gage loan officer and as assistant
controller in 1981.
* * *
Ronald M. Bosrock, group vice
president, American National Bank,
Saint Paul, has announced that #
Patrick M. Flynn has joined the
trust division as an assistant vice
Mr. Flynn, who will lead Amer­
ican’s trust new business effort,
previously was in private law prac­
tice in the Twin Cities and spent
over 3 years with First Trust Com­
pany of Saint Paul prior to joining
* * *


W hen the bank guaranteed that you
would only deal w ith one person,
you didn’t know they m eant one after another.

Perhaps it’s happened to you.
Just when you had built up a
working relationship with your
correspondent banker, the
bank moved him up the corporate
ladder and off your business.
All too often, a large bank
can be insensitive to the needs of
small respondent banks. Yet
smaller banks that can give you
plenty of personal attention can’t
always give you the expertise
and the clout you need. And
you’re caught in the middle.
You do, however, have an
alternative: Midland National

Bank. We’re big enough to
handle any of your correspondent
banking needs. But we’re still
small enough to respond to your
individual concerns.
We’ve deliberately kept
our Correspondent Division
small, so that you can deal

Midland National^
BANKOf Minneapolis | ^ Q g
M a in B a n k a4 0 1 2 n d Ave. S.
G o v ’t C e n te r O ffic e *3 rd Ave. S. a t 6 th S t.
S t. Louis P a rk B ra n c h -3 6 0 1 P a rk C e n te r B ivd.
Member Federal Deposit Insurance Corporation

directly with a decision maker.
Each of our correspondent
bankers has from 12 to 25 years
of experience in the business,
so they thoroughly understand
the needs of respondent banks.
They take the time to personally
call on both the respondent bank
and the respondent’s customers.
If you’re tired of banks
that are too large or too small,
come to Midland Bank.
You’ll develop a close working
relationship with one of our
correspondent bankers. Not one
after another.

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

Cash Line.
B ecause g o o d cash m a n a g em e n t
c a n ’t o p e r a t e o n y e s t e r d a y ’s
In fo r m a tio n .
F&M M arquette’s Cash Line is a new tool to improve your cash
management. Each day you are provided w ith up-to-the-minute
inform ation on your cash availability. It allow s you to be as e fficiently
invested as possible, through an autom atic sweep into Fed Funds.
About mid-day each day you call the Cash Line WATS line. A
com puter gives you the previous day’s closing collected balance. In
addition, and th is is the im portant part, the com puter then gives you the
am ount of your 1-day float — those funds uncollected yesterday that
are available today. At this point you enter your net figure for today’s
transactions that affect today’s availability. The com puter replies w ith
your current available balance.
Cash Line lets you know exactly where you stand — today. You have
the inform ation you need to be fully invested; to m inim ize your idle
funds and maximize your return. Cash Line autom atically sweeps
excess am ounts over a predetermined balance into Fed Funds. Cash
management has never been so exacting, nor so easy.
Cash Line. Now you don’t have to operate on yesterday’s inform ation.
This should be o f interest to you. To learn more about it please call
your F&M M arquette Correspondent Banker at 612/370-2161.

A F&MMarquette Naaonai BanK
777 M arquette Avenue, M inneapolis, MN 55480

Tog eth er,w e’re b etter.
Federal Reserve Bank of St. Louis



f d ic



Minnesota News

Commissioner of Banks Michael
J. Pint recently announced that an
application has been accepted to
charter a new stock savings associa­
tion to be known as Dain Savings
Association, Minneapolis. A hearing
on the application as required by
Minnesota Statutes will be held on
Wednesday, September 1.
Commissioner Pint indicated this
is the first application for a stock
savings association in Minnesota
since the law was amended in 1981
permitting this form of ownership.
All existing savings associations in
Minnesota are mutual form and
owned by the savings accountholders. The proposed incorporators in
the application are Thomas E.
Halloran, Minneapolis; Thomas R.
Fritz, Excelsior; John G. Lohmann,
Jr., Bloomington; James M. Burk­
holder, Shorewood, and John C.
Schreiner, Minneapolis. The majori­
ty of the capital stock is proposed to
be held by the Inter-Regional Finan­
cial Group, Inc., a financial services
conglomerate which provides a
broad range of financial services to
individuals, corporations, institu­
tions and governm ental units
through six wholly-owned subsid­
iaries. Securities and investment
banking are p rovid ed loca lly
through its subsidiary, Dain Bosworth Incorporated of Minneapolis.
The applicants propose to locate
the association at or within two
blocks of the corner of Seventh
Street and Marquette Avenue, Min­






First Bank Minneapolis recently
announced the promotion of one vice
president, four assistant vice presi­
dents and six to officer status.
Kathleen C. Scanlon, assistant
vice president,
has been named
vice president in
the trust secur­
ities and control
operations divi­
Promoted to
a ssista n t vice
president were:
Young, re ta il
bond sales division; James M
Gahlon, commercial training divi­
sion; J.P. Mansfield, correspondent
banking department, and Nancy
Cole, international banking depart­

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis



Northwestern National Bank of
Minneapolis has announced the elec­
tion of one vice president, 15 assis­
tant vice presidents and 16 officers.
In the admin­
istrative group,
Larry J. Wipf,
Ph.D., was elec­
ted vice pres­
ident in the cor­
p o ra te e c o n o ­
mics and plan­
n in g
d ep a rt­
ment. He joined
th e b a n k in
Elected as assistant vice pres­
idents were: Kelly A . Beenen, ser­
vice industries division; Gregg C.
Peterson, retail, wholesale and transportation division; Judith A. Owen,
national department; Lawrence A.
Brust, private banking centre; Ar­
nold N. Endresen and Everett A.
Hellickson, individual services department; David D. Sylvester and
James W. Burnstad, investment ser­
vices department; Barbara Sue Engstrom, Richard K. Hughes and
James. L. Montague, controllers department; Dawn M. Foss, James M.
Koziol and Lyle J. Wysocki, sys­
tems department, and Mildred J.
Nesbitt-McGowan, office services
Elected to officer status were:
Todd A Nieland, national accounts;
Kevin A. Mahoney, international
banking; Randy I. Prindle and Julie
D. Smith, investment; Rosalyn E.
Pennala and Janet M. Margotto,
trust investment; Paul W. Klis and
Jeanne C. Olsen, auditing; Marilyn
Schachtman, accounting; Sylvia
D’Angelo, Thomas A. Kraack, Mary
L. Nedry and Patricia A. O’Leary,
human resources; Mary Beth Cran­
dall, property management; Susan
M. Palm, systems, and Lauretta F.
Patrick, operations.



The following were named to of­
ficer status: Kimberly Bittner and
David A. Johnson, cash manage­
ment division; David D. Fansler,
professional banking division; Anne
D. Burkholder, financial planning
and analysis division; Dina K.
Brooks, human resources depart­
ment, and Marian E. McDonald,
compliance division.





First Bank System, Inc., has an­
nounced the promotion of David R.
Hetterick to assistant vice president
and director of market research;
Kathy D. Larson to parent company
employment officer; Stuart A. Sedlacek to financial analysis officerNorth Dakota and South Dakota
Groups, and Melvin A. Arnold to
corporate insurance officer.
Mr. Hetterick joined FBS in 1981
as a senior market research analyst
and was appointed a marketing of­
ficer in 1982. Ms. Larson has been









Financial Corp. Northwest
jr *

Use Your Asset Power.

Get more mileage out of each dollar.

Your assets can secure a tailor-made revolving
credit line. Accounts receivable, inventories,
machinery, equipment, land and buildings can be
turned into Asset Money™ It’s the smoothest route
for companies short on working capital, those look­
ing toward expansion or growing firms eager to
increase sales. Or money for buy-outs, mergers
and acquisitions. Bank participations.
Banco Financial Corporation can help get your
company off to a great future with Asset Money.
Contact John Olson, Lee Mork, Robert Olson or
Bill Breit, (612) 372-7988, 780 Northstar Center,
Minneapolis, Minnesota 55402. Or Jack Hart,
(303) 571-0515, One Denver Place, Suite 1512,
999 18th St., Denver, Colorado 80202.

Clients with considerable working capital may wish
to conserve it by leasing needed equipment.
Decide on a Lease Purchase Contract with a
guaranteed purchase option at the end of the term.
Go with a leverage lease or purchase
equipment outright.
Whatever your clients’ business, whatever the
equipment they need-Lease Northwest, Inc. has
the financing options that put it to work.
Contact John McLeod in Minneapolis at
(612) 372-7416, Bennie Gates in Omaha at
(402) 536-2310, Jim Sheedy in Des Moines at
(515) 245-3392, Chris Hoss in Fargo at
(701) 293-8136, or Jim Fetzer in Billings at
(406) 657-3581.



An Affiliate of Northwest Bancorporation


B anco
Federal Reserve Bank of St. Louis

Affiliated with Northwest Bancorporation n


m s

B anco

Northwestern Banker, September, 1982


Minnesota News

associated with FBS since 1980. Mr.
Sedlacek joined in 1981. Mr. Arnold
has been with the System since



Carl R. Pohlad, president of F&M
Marquette National Bank, recently
announced the following officer pro­
motions and appointment: Terri
Nygaard to in­
stalm ent loan
op eration s o f­
fic e r ;
Peiffer to credit
m anager, and
Madelaine Silins
to operations of­
Ms. Nygaard
jo in e d
M ar­
quette in 1975

Haugland, Robert D. Lacey and
Lyman E. Wakefield, Jr., and they
are named as the original five direc­
tors of the proposed bank and trust.
Resource Trust Company was origi­
nally chartered as a nondeposit
trust company by the state on Feb­
ruary 28, 1975, and is currently con­
ducting its trust operation in the
First National Bank Building, Min­



Alfred V. Alliegro, vice president
and editor-in-chief of West Pub­
lishing Co., has been named to the
board of directors of Eastern
Heights State Bank of St. Paul.

Institute Economist Advocates
Reduced U.S. Grain Trading

Farm exports may be costing
Americans more than they suspect,
said Otto Doering, a Purdue Univer­
sity ag-economist and featured spea­
ker at the Midwest Banking Insti­
tute held July 25-30 at the Uni­
versity of Minnesota, Morris, cam­
In an address to 200 Midwest
bankers, Mr. Doering suggested
that American taxpayers, in effect,
subsidized the nations who buy U.S.
grain to the tune of $1.00 to $1.50 a
and has held several positions in the bushel for wheat, and as much as
500 to $1.00 a bushel for corn.
mortgage loan areas.
Mr. Doering reached his conclu­
Mr. Peiffer, who recently joined
Marquette, began his banking car­ sion after completing a year-long
eer in 1950 at the First National study of production costs for corn
Bank of St. Paul. From 1973-1982 he and wheat. His study is unique be­
was with American National Bank cause, in addition to adding tradiand Trust Company of St. Paul as
credit manager and was promoted to
vice president in 1978.
Ms. Silins has been with the bank
since 1980 and holds a degree from
the University of Colorado. She was
previously with First National Bank
of Grand Junction, Colo.

tional on-the-farm costs, he calculated the dollars the government
kicks into grain production in the
form of transportation and research
subsidies, tax advantages, grain
management, and other costs.
Mr. Doering’s remarks break
sharply with most of the ag-economists and recognized agricultural
experts in government and industry.
Edward Schuh, head of the University of Minnesota Department of
Agriculture and Applied Econom­
ics, also lectured at the Institute
this week saying foreign trade al­
lows farmers to sell their surplus
crops, thus improving overall profit­
ability as well as improving the na­
tion’s balance of payments outlook.
He says Mr. Doering’s production
cost estimates—particularly the
government portion—need further
investigation before they can be con­
sidered completely reliable.

Winona Officers Named



Chairman of the Minnesota Com­
merce Commission Michael J. Pint
has announced approval for Re­
source Trust Company, Minneap­
olis, an existing trust company, to
assume full banking powers and to
relocate its main office to Bren
Road, just east of County Road 18,
in Minnetonka, within the Opus II
industrial complex. The name of the
institution will also be changed to
Resource Bank and Trust, Minne­
tonka. Applicants for the expanded
banking charter included David E.
Cleveland, Richard E. Gilbert, Gene

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis






Promoted to officer status at
First Northwestern Bank, Winona,
were Timothy Bennick instalment
loans; Deloris Lueck, personal bank- £
ing, and Deborah O ’Donnell, real
estate loans.
Mr. Bennick joined the bank in
1980 as instalment loan collector.
Ms. Lueck joined the bank’s trust 0
department in 1970, was transferred
to real estate in 1978 and named per­
sonal banking rep in 1980. Ms.
O’Donnell joined in 1980 and was
named real estate lending rep in 0
April, 1981.

New Golden Valley Facility Opens



FIFTH Northwestern Bank officially opened the doors of its new 55-on-Douglas office in
Golden Valley recently. The new 7,500 sq. ft. facility features five teller windows, five drivein lanes, safe deposit vault and 24-hour Instant Cash and night depository center. The bank
had been operating a temporary office at 650 Douglas Drive since last September. The new
facility also has a community room which is to be made available for use by local organiza­
tions and residents. Fifth Northwestern Bank is one of 87 affiliate banks of Northwest Bancorporation.


M a r c h is a m o n th th a t n o b o d y q u ite k n o w s w h a t
to do w ith in W is c o n s in . It sn o w s , it ra in s , it
free ze s, it th a w s , w ith the tem p era tu re sw in g in g
as m u ch as 70 degrees in a sin g le day. B u t the
11 oth er m o n th s are p u re p a ra d ise , w ith the m o st
h e a ven ly pla ce the a rea a r o u n d H a y w a r d , u p
in the n o rth e a st corner. H a y w a r d is deep in the
N o r th W o od s. It is C h ip p e w a c o u n tr y a n d to u rist
co u n try . It ha s a w in te r tim e p o p u la tio n o f 1670,
a n d a su m m ertim e on e o f 2 5 ,0 0 0 . H a y w a r d w as
on ce a lu m b erja ck to w n , a n d its w ild w a y s
w ere celebrated in a legend th a t h a d H a y w a r d
a sto p o n a ra ilro a d th a t ra n fr o m “ H a y w a r d to
H u r le y to H e ll.” H a y w a r d is the hom e o f T h e
Peoples N a tio n a l B a n k o f H a y w a r d , w hose
e x e c u tiv e vice p re sid e n t is G reg Jo h n s o n , a 32year-old g ra d u a te o f V a lp a ra iso U n iv e r s ity .
Jo h n s o n rece n tly ch a tte d a b o u t life in H a y w a r d
a n d a b o u t the b a n k ’s c h ie f co rre sp o n d e n t,
N o r th w e s te r n N a tio n a l B a n k o f M in n e a p o lis.
N o r th w e s te r n in tro d u c e d T h e Peoples B a n k to
E D P ba ck in 1970. In fa c t it w a s the fir s t
b a n k o u tsid e the T w in C itie s f o r rem ote jo b e n try
a n d the I B M S y s te m 34.

I grew up in Hayward. It hasn’t changed that
much over the years. The deer have moved out a
litde farther. But the air is still fresh, the partridge
hunting good, and the fishing classic.
I’m a banket; but more than a banker I’m a
Lion, a Jaycee, and assistant fire chief. My beeper
will go off right in the middle of a bank m ee tin g
and off I’ll run to a fire. In this part of the
Federal Reserve Bank of St. Louis

“wjorld everybody gets
j t JK pg& .\ \
involved when there’s t r o u b l ^ ^ ^ ^ ^ f l à l
We have assets o f $50
million so w e’re not THAT
small. We have twice as many^iNcSp^Hfc |
depositors as we have
population. About 3800 total.
And o f course we have strong competition.
A state bank. An S&L. A credit union. We
have to stay up with the times. W ho’s got
the choice?
This is exactly where Northwestern
National Bank of Minneapolis has helped
us. We use every EDP service and system
Northwestern offers. And when something
new in EDP com es up, we go off to
Minneapolis for a Northwestern seminar.
I don’t think we could meet competition
or take advantage o f opportunities if it were
for Northwestern’s help in the EDP
area. Maybe, but I don’t think so.
One thing is sure. Without
Northwestern Minneapolis as
our EDP correspondent (and
without the involvement o f
Jerry Tovsen and Bob Ziem er)
I wouldn’t have the peace
o f mind to enjoy the Hayward
^ = 3» = ^
area as m uch as I do.
-=*~- ^
W hy not visit us sometime?
-- - gá
Winter or summer. The place
will knock your eyes out.

M N a t io n a l B a n k
Xj J Of Minneapolis
An Affiliate of Northwest Bancorporation



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


Minnesota News

F&M CashLine Sweeps Correspondents’
Surplus Balance into Federal Funds
NEW cash management pro­ time and better flow of information
duct called CashLine is being to the cashier. CashLine also avoids
marketed by F&M Marquette Na­ problems with balance volatility by
tional Bânk of Minneapolis for the spreading balance requirements out
bank’s correspondent bank custom­ over a 90-day period.
ers. CashLine provides up-to-the
CashLine customers receive all
minute computerized balance repor­ the forms needed for efficient use of
ting and sweeps respondent banks’ the system, a procedures manual trainee and was elected a credit of­
surplus funds into Fed Funds over­ that describes its step-by-step use, a ficer in January of 1982.
Mr. Ogram joined the staff as a
touch tone adaptor for customers
estate loan originator in April,
William C. Rosacker, senior vice with rotary dial phones, and Fed
1982, and prior to that time was
president in charge of the F&M Mar­ Funds transfer services.
quette department of banks and
In addition to the basic product, with Banco Mortgage Company for
bankers, said the new product was Mr. Rosacker noted, enhancements six and one half years. Ms. Baril
created initially by his department also are being developed to allow began her banking career with Bankas an experiment for Kanabec State multiple location bank operations West in 1978 as special services
clerk. In 1979 she was advanced to
Bank in Mora. The success of the simple, consolidated reporting.
special services surpervisor and in
program there led to development of
1981 became a consumer banking re­
a pilot project with four additional Four Elected in Hopkins
p resen ta tive at N orth w estern
banks. Following the success with
In recent action by the board of
the pilot, Mr. Rosacker said, Cash- Northwestern BankWest, Hopkins, BankWest Plymouth.
Line then was offered to other Anne Hall and Mary McMahon were
banks. He said 10 more banks elected commercial banking officers; Mankato President Elected
adopted the program in the first William Ogram, real estate banking
A.C. Norland, chairman of Securi­
three weeks, bringing to 15 the officer, and Val Baril, consumer
ty State Bank of Mankato, has an­
number using it by mid-August.
banking officer.
nounced the elec­
Mr. Rosacker said CashLine is
of Glenn M.
more than a balance reporting sys­
p so n as
tem, since it provides maximum use
o f the c o r r e s p o n d e n t’ s d aily
Mr. T hom p­
available balance, identifies a func­
has been
tional balance level and sweeps any
en t and
overage into Fed Funds. The func­
chief executive
tional balance level or target balance
officer of the
is determined by the correspondent
First State Bank
customer and F&M Marquette, he
o f Waseca fo r
said, based on historical correspon­
the p a s t six
dent account activity.
Ms. Hall joined BankWest in De­ years. He began his banking career
Carl R. Pohlad, president of F&M
of 1981 as a credit officer. in 1958 with the First National
Marquette, stated, “ CashLine can
improve our customer banks’ invest­ Ms. McMahon come to BankWest in Bank of Minneapolis.
ment efficiency because they’re deal­
ing with today’s availability today.’’
Describing details of how CashLine works, Mr. Rosacker said the
correspondent customer accesses a
computer daily via a toll free
telephone line. One telephone call
gives the correspondent his previous
day’s collected balance and his oneday float figure. He then completes
the CashLine worksheet to compute
the accurate balance available for in­
vestment in Federal Funds. With
CashLine, he said, there is no need
to place additional long distance
calls to determine the correspon­
dent’s Fed Funds position.
Mr. Rosacker said other advan­ THE EAGLE Lake Office of the American State Bank of Mankato recently held its grand
opening, providing an opportunity for customers to view the new facility and participate in
tages of CashLine include more effi­ prize drawings held throughout the day. The new office is approximately 1,200 sq. ft. and
cient use of the respondent cashier’s offers the public a drive-up window and three teller stations.


Eagle Lake Office Opens Its Doors

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis


Speed. Accuracy. Performance.
That’s what impressed my boss
about Bells Digital Data Network.
We transmit data, and we’re always
looking to improve response time, reduce
errors and costly downtime. That’s why
we switched to digital transmission on
Northwestern Bell’s Digital Data Network.
It serves over 350 cities across the country.
Through Bell’s DATAPHONE®
Digital Service (DDS) we can transmit
at speeds up to 56,000 bits
per second with 99.5%
guaranteed error-free
seconds of transmission
per day. To one station
or a hundred, across
town or across the
country. And an
atomic clock keeps all
DDS system elements
on precise time.
That’s not all. Bell’s

DATAPHONE Digital Service has a
design objective of 99.96% availability
with a long-term average downtime of
no more than 3V2 hours per circuit year.
Bell can maintain this high availability
because the network has centralized
testing, protective switching, and back-up
channels located at Bell Control Centers.
Now all this sounds great, but what
does it mean in bottom line results?
Well, Bell DATAPHONE Digital
Service speeds response, reduces
downtime and repeated transmissions.
And that means saving time and
To find out m ore about Bell’s
DATAPHONE Digital Service, call your
Northwestern Bell A ccount Executive.


Northwestern Bell
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Minnesota News

National City Offers Fixed Rate Loans,
Financial Futures Advisory Service
N AGGRESSIVE campaign has
been launched by National City
Bank of Minneapolis to expand its
financial futures service. It is being
marketed through the bank’s recent­
ly approved subsidiary, NCB Finan­
cial Futures Inc. Officers of the new
subsidiary include James H. Hearon
III, president, who is also president
and chief executive officer of Na­
tional City Bank.
NCB Financial Futures offers
three services, Mr. Hearon stated.
One is fixed rate loans to commer­
cial lending customers, with NCB/
FFI hedging the risk itself on the
financial futures market. The second
is interest rate management con­
sulting service for “ corporate clients
in the use of financial futures to
transfer their interest rate risk ex­
posure to the futures market.” The
third is an asset-liability manage­
ment consulting program “ aimed
primarily at the ‘G A P ’ management
of banks and other financial institu­


Jordan President Elected

For customers placing fixed rate
loans directly with the National City
Bank, the fee is about 1% of the loan
balance, paid in advance, on a one
year loan, and between 1% and 2%
for locking in the rate on a two-year
loan. Mr. Hearon said NCB/FFI also
will provide its advisory services on
a fee basis.
Walter E. Meadley, Jr., executive
vice president, said National City
Bank began using interest rate fu­
tures last October for its own asset
and liability management after stu­
dying the program for two years.
After several months of experience
with the program internally, it was
decided to form the subsidiary to
market the advisory services to
those corporate customers the bank
could not accommodate with its le­
gal lending limit. Mr. Meadley said
National City Bank’s fixed rate
lending program makes it one of on­
ly three banks offering such a pro­
gram by late summer.
two and a half years was a public
relations associate at Minnesota
Mutual Life Insurance Company.
He will have responsibility for the
state banking association’s media
and public relations, advertising
programs and member communica­

Richard D. Hofer has been elected
president and chief executive officer
of Northwestern
State Bank of
Jordan. He suc­
ceeds Robert L.
Bue, who recent­
ly accepted a
position as presi­
Elected in Dawson
dent of North­
Everett E. Kelley, president of
w estern State
the Northwest­
Bank in Austin.
ern State Bank
Mr. Hofer has
of Dawson, has
been with the
announced that
Banco organization since 1973 when James J. Swionhe started as a trainee at First Na­ tek has been
tional Bank in Aberdeen, South Da­ elected a loan of­
kota. He most recently had been ser­ ficer e ffe ctiv e
ving as vice president at First August 10.
Northwestern National Bank in
Mr. Swiontek
joined the bank
on A ugust 1,
1981, and served as a Banco trainee.
MBA Names lacovino As

Communications Director
John lacovino has been named
communications director for the
Minnesota Bankers Association, ac­
cording to an announcement by Tru­
man Jeffers, executive vice pres­
Mr. lacovino is a former weekly
newspaper editor and for the past

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Edina Promotions Told
Jennifer R. Williams has been pro­
moted to assistant vice president
and Joseph Welle has been elected
as commercial loan officer, announced
H.J. Wogsland, president of First
Bank of Edina.



Ms. Williams joined the bank in
1975, serving as marketing officer,
manager of the Vernon Avenue of­
fice and human resource officer. Mr.
Welle began his banking career in
1977 with First System Services,
Inc. He was promoted to an exam­
iner in 1979 and supervising ex­
aminer in 1980.

Lawsuit Settled Against
Newport Insurance Agency
Attorney General Warren Spannaus and Commissioner of Banks
Michael J. Pint announced that a
Newport insurance agency specializ­
ing in mortgage insurance has
agreed to change its business prac­
tices in settlement of a lawsuit
brought against it by the state.
Consenting to a stipulated agree­
ment was Midwest Bankers Finan­
cial Services, Newport. The agree­
ment was approved in Washington
County District Court.
According to the settlement, the
agency will stop telling consumers
that it is affiliated with banks or
financial institutions unless there is,
in fact, such an affiliation. The agen­
cy will also stop using the words
“ bank,” “ banker,” or “ banking” in
its name and has agreed to use a
name other than Midwest Bankers
Financial Services in all contacts
with the public. Terms of the settle­
ment also require the agency to stop
using certain sales material which
imply an association with financial
Attorney General Spannaus and
Commissioner Pint sued Midwest
Bankers and three of its managers
last December, contending that the
firm’s business practices violated
Minnesota’s banking and consumer
fraud statutes. A temporary re­
straining order was obtained
against the parties at the time.
The stipulation agreement just
signed is not an admission of any
wrongdoing. Its terms, however, are
enforceable as a court order.


V hi earn
incom e from outgo

when the PaperTiger handles
your Official Checks.
Your disbursements earn reimbursements—substantial cash incom e—when you have
Travelers Express—the Paper Tiger—handle your Official Checks.
Y ou’ll make a substantial profit while we perform all the reconciling, storing, tracing,
filing and payment stopping. You free up expensive employee time, you don’t pay for your
customized drafts and you maintain financial control.
You should see what we can do for your M oney Order program, too!
For more information call T800-328-5678 and ask for Gene Lewis.
Travelers Expressly working fo r you.

Travelers Express

r r iM p a m y


5075 Wayzata Boulevard, Minneapolis, MN 55416
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Hopkins V.P. Elected
The board of directors of First
Bank Hopkins has elected John D.
McDonald vice
p r e s id e n t
credit adm ini­
Mr. M cD on ­
ald has been
with First Bank
S y s te m sin ce
1959. His most
recent position
was vice presi­ J.D. MC DONALD
dent in the com­
mercial banking division of First
Bank Minnehaha.

Waseca President Named
First Bank Waseca has elected
William G. Draeger president and
managing officer, succeeding Glenn
M. Thompson, who recently ac­
cepted a position as president of
Security State Bank of Mankato.
Mr. Draeger previously was serv­
ing as president and managing of­
ficer of First Bank Lakefield.

President Named in Buffalo
Howard G. Luick has been elected
president of Oakley National Bank
of Buffalo. Mr. Luick, who had been

executive vice president, succeeds
V.G. Hegeholz, who died suddenly
on May 31, 1982.
Mr. Luick joined Oakley National
in 1977, prior to which he served as
vice president with the Northwest­
ern National Bank of Minneapolis.
Also at the bank, Arley Watne
was promoted to executive vice
president; Mike Parker and Larry
Schwahn were elected senior vice
presidents, and Betty Gibbs was
named assistant cashier.

Joins Elbow Lake Bank
Willard Duda has joined the staff
of First National Bank of Elbow
Lake as vice president and ag rep.
He succeeds Luther Quist, who re­
cently retired.

Two Banco Banks Consolidate
The U.S. Comptroller of the Cur­
rency recently authorized two Iron
Range banks affiliated with North­
west Bancorporation to consolidate,
effective August 1. The two banks,
in Eveleth of Hoyt Lakes, were con­
solidated as First Northwestern Na­
tional Bank of Eveleth-Hoyt Lakes.
Robert B. Hatten, president of
the Eveleth bank, serves as presi­
dent of the consolidated bank.

North Dakota
J.M . M cG inley, pres., W illis to n
H. J . A rg u e , exec. d i r . , B ism a rck

NDBA Group Meetings — Sept. 27-30
ANKERS attending the 1982
Group Meetings of the North
Dakota Bankers Association Sep­
tember 27-30, should plan on each
meeting beginning promptly at 2:30
p.m. local time. Keeping in mind
that New Salem is in the Mountain
Time Zone, while the other three
locations are in the Central Time
Zone. Agenda for the meetings
2:30 O pen in g rem arks —grou p
•Federal Legislative and
NDBA Update—NDBA Pres­
ident John M. McGinley, pres­

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

ident, American State Bank
& Trust Co., Williston.
•A Report from the State

Acquisitions Approved

The Federal Reserve Bank of Min­
neapolis has approved the following
applications for bank holding com­
panies: Americana Bancorporation £
of Alden, Inc., Edina, to acquire
Americana State Bank of Alden;
Trimont Bancorporation, Inc., to ac­
quire Triumph State Bank, Trimont;
Frost Bancorporation, Inc., Frost, 0
to acquire the State Bank of Frost;
Town and Country Banshares, Inc.,
Newport, to acquire the Town and
Country Bank-Maplewood; NBC
Bancorporation, Inc., Newport, to £
acquire National Bank of Commerce
in Mankato; Pine River Holding
Company, Pine River, to acquire
Pine River State Bank; Gibbon Bancorporation, Inc., Gibbon, to acquire
Citizens State Bank of Gibbon, and
Capitol Bancorporation, Inc., Pierre,
to acquire First National Bank in
East Central Holding Company, “
Cambridge, received approval to be­
come a bank holding company
through the acquisition of the First
State Bank of Isanti, and to indi­
rectly engage in general insurance •
agency activities in a town of less
than 5,000 population through the
acquisition of the Isanti Agency, Inc.
Banking D epartm ent—Lee
Stenehjem, Jr., State Bank­
ing Commissioner, Bismarck.
•Utilizing MABSCO Agricul­
tural Services, Inc.—speaker
to be announced.
•Effective Management of
Personal Stress—Kathy Fish­
er, human resources consul­
tant, Des Moines, la.
Group business meeting and
election of officers/NDBA ex­
ecutive council members.
5:30 Social hour.
6:30 Dinner.
7:30 Adjournment.

1982 North Dakota Group Meetings
September 27
September 28
September 29


September 30



Legion Club, Grafton
Eagles Club, Harvey
Golden West Shopping
Center, New Salem
Redwood Room Student
Union, N.D. State School of
Science, Dinner at the Elks
Club, Wahpeton


Bank of North Dakota
June 30, 1982


Demand Deposits:
Individuals, Partnerships
and Corporations................................
Now Accounts - Individuals....................
Now Accounts - Public............................
Deposits of B anks......................................
State and Political
Subdivisions ........................................
Official Checks, etc...................................

Cash and Due from B anks........................ $48,838,527.06
U.S. Government Securities........................ 76,299,957.75
Federal Agencies Securities ...................... 83,325,715.17
Bankers Acceptances and
Other Investments ..................................
State and Municipal Securities....................
Federal Funds S o ld .................................... 134,330,000.00

FmHA Business &
Industry Guaranty...........................
FmHA Housing Guaranty...................... 1,452,603.79
FHA and Gl
Home Loans................................... 173,087,789.26
Farm R.E. L o a n s ............................... 48,987,948.78
R. E. Contracts...................................
Loans to
State Institutions.............................
Bank Stock L o a n s ............................. 10,161,575.48
SBA Participation Loans..................... 13,528,311.21
N.D. Bank Participation
L o a n s ............................................. 118,029,599.99
Federally Insured
Student Loans.................................
Other Loans.......................................


Time and Savings Deposits:
Individuals, Partnerships
and Corporations ................................ 20,677,455.26
State and Political
Subdivisions........................................ 437,059,933.00

TOTAL LOANS .......................................... 375,273,761.07
Accrued Interest Receivable......................
Bank Building and Equipment....................
Unamortized Bond Issue Costs..................
Other Assets ..............................................
TOTAL RESOURCES................................... $756,775,576.90

TOTAL DEPOSITS...................................... 549,476,781.03
Fed. Fds. Purch. & Sec. Sold
Under Agreement to Repurchase.......... 108,165,000.00
Accrued Interest Payable ..........................
Other Liabilities ..........................................
Long Term Debt -Mtg. Bonds.................... 35,158,000.00
Reserves .................................................... 3,500,000.00.
C apital......................................................... 16,000,000.00
Surplus......................................................... 16,000,000.00
Undivided Profits......................................... 13,531,095.46
RESERVE & CAPITAL................................ $756,775,576.90

North Dakota Growth
for 63 years
Ranked as the 27th largest a g ricu ltu ra l lender nationw id e
and th e fifth la rg e s t in th e G reat P lains s ta te s by the
A B A in 1981.


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

The Bank of N orth Dakota is owned, operated and co n tro lle d by the State of North Dakota under the
supervision of the State Industrial C om m ission:


Robert O. Wefald

H.L. Thorndal

Kent Jones

Attorney General


Commissioner of Agriculture
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Grand Forks Advances Two
R.O. Wold, president of First Na­
tional Bank in Grand Forks has an­
nounced the advancement of Elaine
Lee to administrative officer and
Warren Berg to branch manager at
First National Bank’s Air Force
Base facility.

Halliday Elections Told
The directors and stockholders of
The Union Bank, Halliday, have
elected James Walth president and
Gordon Hoffner senior vice presi­
dent. This action follows the resig­
nation of Gerald Bogers, president
of the bank for the past 13 years.

THE above drawing illustrates the theme for the Independent Community Bankers of North

Dakota Annual Convention Sept. 15-16.




m m m æ sm

& m SSm m


Mr. Walth, who had been serving
as senior vice president, began his
banking career at the Valley Bank &
Trust Co. of Grand Forks in 1964. In
1973 he purchased an interest in the
Union Bank.
Mr. Hoffner served in various ca­
pacities at banks in South Dakota
before being elected a vice president
at Union Bank in 1979.
Also at the bank, David Walth
was elected an assistant vice presi­
dent and to the board. He had been
serving as administrator of Dunn
Community Health Centers. Earl
Pelton, an area farmer, has also been
elected to the board.

From 1975 to the present he has
been vice president and manager of
the Spink County Branch, Redfield,
S.D., of First Bank Aberdeen.

State Bank of Fargo
Elects New President

Richard H. Solberg has been
elected president and chief executive
officer of State Bank of Fargo.
Mr. S olberg
started his bank­
ing career with
the First Nation­
al Bank in Grand
Forks. In 1970
he started work
at Citizens State
Bank of Finley,
Landgon President Named
becoming presi­
The board of directors of First
d en t o f th a t
Bank Langdon, has elected William
bank in 1978.
F. Pich president and managing of­
of Concor­
ficer, effective
August 16. Mr.
the University of Wisconsin Grad­
Pich su cceeds
uate School of Banking.
Densel M. Mas­
on who was re­
Four Appointments Made
cen tly elected
At Bank of North Dakota
p resid en t and
managing officer
H.L. Thorndal, president, Bank of
of First Bank
North Dakota, Bismarck, has an­
nounced the appointment of four
Mr. Pich has
F p|CH
bank employes to new positions.
been associated
The new appointments include
with First Bank System since 1967 Thomas Tudor, general counsel, to
at which time he joined First Bank vice president and general counsel;
Miller, S.D., as an officer trainee. Dale Eberle, assistant vice presi­

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

dent, to vice president; Joyce Wel­
der, assistant comptroller, to assis­
tant vice president and assistant
comptroller, and Rodney Anheluk,
assistant cashier, to assistant vice

Acquisition Approved
The Federal Reserve Bank of Min­
neapolis has approved the applica­
tion by Oliver Bancorporation, Inc.,
Center, to become a bank holding
company through the acquisition of
the State Bank of Oliver County,

First Bank Jamestown
Elects New President
The board of directors of First
Bank Jamestown has elected Densel
M. Mason president and managing
office and H.F. Buegel chairman.
Mr. Mason is currently associated
with First Bank Langdon, where he
has served as president and manag­
ing officer since 1979.
Mr. Mason began his career with
First Bank System in 1958 when he
joined First Bank Highmore, South
Dakota. Prior to serving in Lang­
don, he was vice president and se­
cond officer of First Bank Virginia,
Mr. Buegel has been associated
with First Bank System since 1949
and has served as president of
Jamestown since 1966.

South Dakota
D.O. Mehlhaff, pres., Eureka
J. M. Schwartz, exec. m g r., Pierre

SDBA Instalment Loan Conf.— Oct. 7-8
HE SOUTH Dakota Bankers
Association will be conducting
their instalment loan and retail
banking conference October 7 & 8 at
the Sheraton Inn in Yankton. The
program schedule follows:


Thursday, October 7
9:30 Registration.
10:00 “ Bankruptcy as it Pertains to
Chapters 7, 11 and 13, With
Special Emphasis on Chapter
7“ —William R. Mapother, at­
torney at law, Creditors Law

Elected in Sioux Falls
Mark W. Wahlstrom has been
elected assistant vice president and
manager of the
m ortgage loan
origination de­
p a rtm e n t
Western Bank,
Sioux Falls, ac­
cording to T.J.
Reardon, presi­
dent and chief
e x e c u t iv e o f ­
M r.
W a h l­
strom joined Western in June with
six years mortgage banking exper­

Sioux Falls Bank Names Two
United National Bank, Sioux
Falls, has announced the promotion
of Jeff Van Den Berg to assistant
vice president and branch manager
of United’s 41st Street Branch. Mr.
Van Den Berg joined the bank in
1976 and has served as assistant
branch manager of the Main office
since 1981.
Bob Stowell has joined the Main
office staff as commercial loan of­
ficer. Mr. Stowell previously served
as division finance manager for
Coast to Coast Central Organiza­
tion, Inc., and most recently as
disaster loan specialist for the Small
Business Administration.
Federal Reserve Bank of St. Louis

Center, Louisville, Ky.

Mapother continued.
Questions and answers.

Friday, October 8
9:00 “ What Impacts Health, Pro­
d u c tiv ity
P e r fo r ­
m ance’ ’ —Michael J. Hennessy, Aurora, Colo.
12:00 Adjourn.

CEO Round Table Discussions
Planned For Group Meetings
The South Dakota Bankers Asso­
ciation Group Meetings are slated to
be held September 13-17. Each meet­
ing will begin at 3:00 p.m. with chief
executive officer round table dis­
cussions running until 6:00. Three
topics will be discussed: federal
legislature, state legislature, and how
the association can best serve its
A reception will be held at 6:00 and
banquet at 7:00, with all bank em­
ployes welcome.

Seattle Bank Seeks to
Move Credit Cards to S.D.
Seattle-First National Bank, based
in Seattle, Wash., has filed an appli­
cation with federal regulatory au­
thorities to move its bank credit
card operations to South Dakota,

probably locating in Rapid City.
A spokesman for the bank said
the potential unfavorable climate in
Washington, which would clamp a
greatly reduced interest rate ceiling
on bank credit cards, has caused the
bank to seek this possible alterna­
tive. He said the bank has not fully
committed itself to such a move,
even if federal regulatory permission
to move the facility is granted.
An initiative proposed for the
Washington ballot next November
would roll back bank credit card in­
terest rates, retail credit and retail in­
stalment credit to 12%, or 1% over
the Fed discount rate. The current
law, enacted in 1981, indexed the rate
to 4% over the coupon rate for sixmonth T-bills, based on the preced­
ing month. The effective rate has
been in the 17% range.
The labor movement in Washing­
ton reportedly sponsored the in­
itiative, and apparently has gath­
ered the 138,000 signatures needed
to place the measure on the Novem­
ber ballot. The spokesman said
retailers will just build into their
costs the added charges needed to
offset the lower interest rate, while
banks will have to move their credit
card operations to a free market

Joins Mitchell Bank
Cindy Berndt has recently joined
Commercial Bank, Mitchell, as aud­
itor, according
to Ron Jenkins,
Prior to join­
ing the bank,
Ms. Berndt was
e m p lo y e d
Martin & Asso­
ciates as an ac­
countant. She is
a 1979 graduate
of Dakota Wes­
leyan University with a degree in ac­
counting and economics.

South Dakota Group Meetings



Minnehaha Country Club, Sioux Falls
Holiday Inn, Mitchell
Bavarian Inn, Custer
Moose Lodge, Mobridge
Sheraton, Aberdeen

Northwestern Banker, September, 1982


WBA Trust Committee
Holds First Meeting

WBA Announces Committee Chairmen
HE W YOMING Bankers Asso­
ciation has announced chairmen
and members of its various commit­
tees for the 1982-83 year. Listed
below are the chairmen:
Legislative - Cliff Kirk, executive
vice president, First National Bank
of Gillette.
Agricultural - Lloyd Snyder, vice
president, American National Bank
of Powell.
Coordination with State Trea­
surer - Don James, vice president
and senior trust officer, First In­
terstate Bank of Casper, N.A.
WBA Credit Conference - Andy
Millikin, vice president, First In­
terstate Bank of Casper, N.A.
Trust - Robert Wyatt, vice presi­
dent and trust officer, Bank of Com­
merce, Sheridan.
WBA Consumer Credit Confer­
ence - Dan Oliar, vice president,
American National Bank of Chey­
Chief Executive Officer’s Con­
ference - Robert Noel, president,

First Wyoming Bank, N.A., Chey­
ABA Bankpac State Chairman
-Paul P. Jacques, president, First
Wyoming Bank, N.A., Laramie.
WBA Support of 4-H Clubs
-Donald C. Brayton, senior vice
president, Bank of Commerce,
State AIB Chairman - Grace
Brown, vice president, First Na­
tional Bank & Trust Company,
Nominating - Donald R. Wassen­
berg, president, State Bank of Big
Audit - David Wallen, admini­
strative vice president, First In­
terstate Bank of Laramie, N.A.
Resolutions - Hugh Caton, presi­
dent, First National Bank of Pinedale.
WBA Convention Athletic Direc­
tor - John W. Easterbrook, vice
president, First Interstate Bank,
N.A., Laramie.

ABC Merger Announced

land, which was announced on May
28, but without foreclosing possible
future resumption of discussions
concerning that bank.


Affiliated Bank Corporation of
Wyoming, headquartered in Casper,
announced recently that its board of
directors has entered into an agree­
ment in principal with John D. Mur­
chison, Jr., of Dallas, Texas, by
which the company, also called
“ ABC ,” would be acquired in a mer­
ger with a newly formed corporation
for a cash price of $50.00 per share,
subject to potential upward adjust­
ment based upon A B C ’s earnings
during part of the period before clos­
ing. The proposed transaction is
subject to several conditions, includ­
ing execution of a definitive agree­
ment, approval by shareholders and
approval by the Federal Reserve
Board. It is estimated to be com­
pleted in the spring or summer of
ABC also announced that it has
terminated the proposed acquisition
of Stockgrowers State Bank in Wor
Banker, September, 1982
Federal Reserve Bank of St. Louis

The first organizational meeting
for the Wyoming Bankers Associa­
tion Trust Committee was held re­
cently at Wyoming National Bank.
The chairman for the committee is
Robert Wyatt, vice president of the
Bank of Commerce in Sheridan. Sub­
committee chairmen appointed are:
Dan Guerttman, vice president,
Wyoming National Bank of Casper;
Scott Murdock vice president, First
Wyoming Bank of Cheyenne; Mick­
ey Zanoni, senior vice president,
American National Bank of Chey­
enne; D.L. Preston, vice president,
First Interstate Bank of Laramie;
Mike Bohl, trust officer trainee,
Bank of Laramie, and E.L. Patrick,
senior vice president, First National
Bank and Trust of Cheyenne.
The focus of the first meeting was
establishing the role of the commit­
tee to the banks of Wyoming for the
1982-83 year.

Two Named in Shoshoni
At First State Bank at Shoshoni
Ann DePue was promoted to opera­
tions manager and Madelyn Eads
was named as loan officer, according
to Robert Crocker, president. Both
have been employed at the bank
since 1980.

Two Promoted in Wheatland
Mike C. Daly, president of
American Bank of Wheatland,
recently announced the appoint­
ment of Stephanie Brown to loan of­
ficer and Janice Miller to operations

Buffalo Bank Opens New Facility

GRAND OPENING ceremonies were recently held for the new bank building of Security
Bank of Buffalo. The day-long festivities included a free family barbecue, drawings for
special gift certificates and merchandise from local businesses held every hour, free
T-shirts for youngsters registering for the “ balloon release” and special gifts for all new ac­
counts of $50 or more, opened at the bank during that day. Security Bank is located at the
corner of Main Street and U.S. 16 east.

fourth member of the corporation’s
recently formed Office of the Chair­

First Natl. Bank of Denver
Elections & Promotions Told

Independent Bankers to Meet in Vail
HE LODGE in Vail will be the
site for the 9th Annual Conven­
tion of the Independent Bankers of
Colorado, scheduled to meet Sep­
tember 16-18.
Slated to succeed Earl F. Lehigh,
president of Pueblo Bank & Trust,
as chairman is W. Richard Jorgen­
son, president of First National
Bank, Las Animas, and current IBC
president. Nominated to succeed
Mr. Jorgenson as president is Gene
Rock, president of Bank of Denver,
and current ICB vice president.
Nominated to succeed Mr. Rock as
vice president is Theodore C. Muel­
ler, president, Bank of Cripple
Creek. Jack Devereaux, chairman,
Home State Bank, Loveland, has
served this past year as treasurer.
His successor will be appointed by
the board.
The complete three-day program
schedule follows:

and techniques,


A.M. Thursday, September 16
9:00 Registration, Lodge lobby.
9:00 Golf tee-off time; tennis
11:30 L eave for luncheon at
Whiskey Creek.
1:00 Exhibitors may begin set­
up. Complete by 5:30 p.m.
6:00 Exhibitors’ cocktail party,
International Room.
7:30 Dinner on one’s own.
A.M. Friday, September 17
8:00 Registration, Lodge lobby.
9:00 1st business session, Inter­
national Room.
President and Treasurer re­
•Jack Pottle, “ The Electronic
Future.’ ’
•Matt Taylor—“ The Media
and the Banker.’ ’
Political review with Pancho
9:00 “ Cardiovascular Pulmonary
Resuscitation’ ’ for ladies.
An overview of the problem
Federal Reserve Bank of St. Louis





Cocktails, hosted by Peat,
Marwick and Mitchell.
»Luncheon. Speaker—Robert
M c C o r m ic k ,
p r e s id e n t
Second session, a hands-on
demonstration of CPR.
Discussion of the formation
of an AgriCredit Corp. spon­
sored by the Independent
State Bank.
Cocktail party hosted by
Kirchner, Moore.
Annual banquet.
Dancing to live music.
Saturday, September 18
Registration, Lodge lobby.
Second business session.
•Len Rubin, IB A A attorney,
Washington, D.C.
Committee reports
CCIP Presentation
• C om m ission er R ich a rd
COINPAC review.
Resolutions/awards, election
of officers.
Organizational meeting of
the 1983 board of directors.
Cocktail party hosted by
Sun Country Financial,
Colorado Springs.
Luncheon. Speaker—new
IBC president.
Adjourn the convention. □

Joins First Natl. Bancorp.
John M. Eggemeyer, currently
senior vice president of Chemical
New York Bank, has joined the Den­
ver-based First National Bancorporation, Inc., as executive vice pres­
ident of finance and administration.
Mr. Eggemeyer has also been
named a member of the holding com­
pany board of directors and the

The board of First National Bank
of Denver has recently elected John
R. Wells, executive vice president of
administration and human resour­
ces. Mr. Wells joined the bank in
1978 as a senior vice president and
director of personnel.
Larry Martin, senior vice presi­
dent, has been named director of
marketing. He joined First of
Denver in 1979 and was named sen­
ior vice president of retail product
mangement in January of this year.
Susan Ashby, vice president of
product management in individual
financial services, will assume Mr.
Martin’s responsibilities in that
group. Mr. Martin replaces Art
Lucey, who resigned to become a
Promoted to vice president were
Charles R. Hall, Jr., Robert M.
Swartz and Thomas M. Foncannon.
Mr. Hall, formerly assistant vice
president of agribusiness, has been
named vice president of the depart­
ments of cash management and loan
analysis and training. Mr. Swartz, a
member of the correspondent bank
department, formerly was accoun­
ting instructor for the American In­
stitute of Banking. A former bank
examiner for five years, Mr. Foncan­
non will be serving in the energy
banking department.

Golden Announcements Told
Golden State Bank recently an­
nounced the election of Donald O.
Eckburg as vice president and Karl
Earner as assistant vice president.
Formerly with Golden Savings
and Loan, Mr. Eckburg will serve in
public relations for the bank. Mr.
Karner joins the bank with nine
years of banking experience. He is in
charge of the bank’s consumer
credit department.
Also at the bank, H. Robert McKendry, executive director of ath­
letics and activities for the Jefferson
County School District R-l, and Wil­
liam G. Parfet, Jr., executive vice
president and general manager of
George W. Parfet Estate, Inc. of
Golden, have been elected to the
board of directors.
Northwestern Banker, September, 1982


Colorado News

Denver Appointments Told
Five have recently been appointed
to vice president status at United
Bank of Denver.
Appointed as vice presidents
were: Janice L. Campbell, Patrick E.
Green, Roger C. Parker, J. Robert
Ward and Gerald M. Berenstein.
Ms. Campbell manages a portion
of U BD ’s correspondent banking ac­
tivity. She joined the bank in 1972.
Mr. Green was appointed a commer­
cial banking officer in 1979 and an
assistant vice president in 1981. He
manages the contractors and build­
ing materials lending group. Mr.
Parker joined the bank in May,
1981, and was named assistant vice
president in June, 1981. Mr. Ward,
who joined in 1979, manages the
commercial finance area. Mr. Beren­
stein joined UBD in June after serv­
ing as a vice president at United
Banks Service Company.
Other officer appointments in­
cluded: Claudia M. King, John H.
Vogt, Nancy J. Swanson, Richard
Choffel, Marilyn M. Lockner and
Marie Zoeller to the position of
assistant vice president.
Named to officer status were:
Gene J. Sullivan, commercial bank­
ing; Donald K. Dodge, executive
banking; Wayne G. Nielsen, public
finance, and David L. Pitts, legal ad­

been a personal trust officer in the
trust division since 1973. Former
commercial loan officer, Mr. Thomp­
son joined Central in 1979.
Mr. Campbell, elected trust in­
vestment officer, joined in 1975.
Elected customer service officer,
Mr. Karcher joined Central in 1975.

Three Named At
Colorado Springs Bank
Russell L. Truitt, president and
chairman of the Western National
Bank of Colorado Springs, has an­
nounced the promotion of John H.
Schafer to senior vice president,
responsible for
the commercial,
instalment and
m ortgage loan
departments of
the bank, Doug­
las L. Truitt to
vice president in
the commercial
loan department
and R. David
Swales has been

V.P. Named at Colorado Natl.
James D. Steeples has been
elected vice president of commercial
loans at Colorado National Bank,
Mr. Steeples joined the bank in
1981 as assistant vice president in
the commercial loan division.

Denver Natl. Promotes Three
C. Gale Sellens, chairman and
chief executive officer of Denver Na­
tional Bank, recently announced the
promotion of Wayne D. Kramer to
assistant vice president and cashier,
Karee D. Carpenter to senior opera­
tions officer and Angie R. LynesNolin to cash management officer.



named vice president, instalment

Two Appointed in Montrose
Duane H. Cunningham has been
appointed vice president and loan of­
ficer and Beth Davis has been ap­
pointed cashier of the United Bank
of Montrose.

Five Promoted at Central
Central Bank of Denver has pro­
moted Don M. Clary, Harlan L. Cy­
phers and Mark E. Thompson to as­
sistant vice president, and John B.
Campbell and Cary A. Karcher to of­
ficer status.
Mr. Clary joined Central in 1980
and was elected commercial loan
officer in 1981. Mr. Cyphers has

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis



Mr. Cunningham joined the bank
in 1974 and has served as assistant
cashier and vice president/cashier.
Ms. David succeeds him as cashier.
She joined the bank in 1968 and has
been serving as assistant cashier
since 1976.

Four Officers Named at
First Denver Mortgage Co.
An executive vice president and
three vice presidents have been
named by First Denver Mortgage
Company, according to Robert G.
Boucher, president and chairman.
M.J. Mastalir,
senior vice presi­
dent, was pro­
moted to execu­
tive vice presi­
dent and elected
to the board.
Mr. Mastalir is a
1971 graduate of
the University
C o lo r a d o
School of Law
and member of the Denver and Col­
orado Bar Associations.
Also named vice president were
Barbara L. Elkins, former assistant
vice president and graduate of the
University of Denver; Stanley G.
Jones, a 1972 graduate of the Uni­
versity of Kansas and a former sec­
retary of the Northern Colorado
Mortgage Lenders Association, and
James W. Moore, named vice presi­
dent and treasurer, a University of
Denver accounting graduate.
Milton C. Iverson, Jr., senior vice
president of marketing, has been
elected to the board of directors.

United Bank of Cherry Creek
Opens at Ptarmigan Place
United Bank of Cherry Creek, the
newest affiliate of United Banks of
Colorado, Inc., has opened banking
facilities in the Ptarmigan Place
building, located at 3773 Cherry
Creek North Drive.
As part of a recently structured
strategy in launching affiliate
United Banks, Robert J. Mitchell,
formerly vice president of United
Bank of Skyline, has been appointed
president and chief operating officer
of the Cherry Creek bank, while Ter­
rance J. Ryan, chairman and chief
executive officer also of the Skyline
bank, will serve in the same capacity
for the Cherry Creek bank.
Mr. Mitchell joined United Bank
of Skyline in 1978 as an assistant
vice president and previously was
assistant vice president of First Na­
tional Bank of Lake Forest, Illinois.
Mr. Ryan further noted that Theo­
dore B. Washburne, a leading Den­
ver banker who has supervised the
lending and investment activities at



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Northwestern Banker, September, 1982


Colorado News

United Bank of Skyline for the last
three years, has been named presi­
dent and chief operating officer. Mr.
Washburne was formerly a senior of­
ficer at United Bank of Denver and
in private investment prior to join­
ing the United Bank of Skyline in

Boulder Bank to Be Restored

Promoted at First Natl.
Bank of Bear Valley
John L. Kerst, senior vice presi­
dent and cashier of the First Na­
tional Bank of Bear Valley, Denver,
has been promoted to executive vice
president, according to Kyle McClaugherty, president.
James S. Snow, vice president
and senior operating officer, has
been promoted to vice president and

NABW Colorado State
Council Chairman Named
Jeanean Hornyak, auditor for The
Western National Bank of Colorado
Springs, has been named chairman
of the Colorado State Council for the
National A ssociation of Bank
Women, Inc.
As chairman,
M s. H o rn y a k
serves as the link
b e tw e e n
C o l­
orado’s N ABW
m em b ers and
N ABW ’s nation­
al and regional
officers to bring
m ore
program s and
activities to members.
She has been an active member of
N ABW since 1976.

RESTORATION recently began on the historic Citizen’s Natl. Bk. building in Boulder as part
of a $3.1 million restoration project. Van Schaack & Co. and Rieder Development Inc.
bought the building at 1426 Pearl St. and plan to make available 25,000 sq. ft. of office
space and 5,000 sq. ft. of retail space. Included in the plans is a four-story pillared facade
and extensive interior wood treatments, with green marble lining the walls of the 12-ft. high
lobby. The project is expected to be finished in late fall.

Thomas, who resigned to pursue
other banking interests.

Central Bancorp. Elects One

George B. McKinley, president
and chief executive officer of Central
Bancorporation, Inc., has announced
the election of Boyd Lindquist as
vice president and regional admin­
istrator for nine of CBI’s Easter
Slope banks.
Prior to joining CBI, Mr. Lind­
quist was senior vice president for
the northern division of First Securi­
Southglenn Board Elects One ty Banks in Salt Lake City, Utah.
Also announced was the finalizing
Ronald L. Kahler, vice president
the acquisition of Centennial
and director of the G.H. Bryant
Companies, including Resource Ex­ Bank of Pueblo. Concurrent with the
ploration and Mining, Inc., and finalization, the name of the bank
Rampart Exploration Company, has changed to Central Bank of Pueblo,
been named to the board of directors N.A., making it the 16th member
of The First National Bank of bank in the CBI organization.
Southglenn, according to R.K. Mc­
Coy, president and chairman at Greeley Promotions Told
Ronald T. Hinman, president of
Cache National Bank of Greeley, re­
cently announced the promotion of
Tech Center President Named Shirley Hanson to vice president
Travis N. Townsend has been and cashier and Sue A. Fouts to
named president of Colorado Bank- assistant cashier.
Tech Center, Denver, according to
John A. Nigh, vice president of
Will F. Nicholson, Jr., president of Affiliated Bankshares of Colorado,
Colorado National Bankshares, Inc. Inc., has been appointed to the
Mr. Townsend replaces Garth board of directors of Cache National.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Two Named in Denver
Larry Meier and Marilyn Jordan
have been named officers of Univer­
sity National Bank, Denver, accor­
ding to Charles L. Ferguson, presi­
dent and chairman.
Mr. Meier, who was promoted to
commercial banking officer, joined
University National as a credit ana­
lyst in 1981. Ms. Jordan was named
advantage banking officer. She
joined the bank in 1976.

Acquisition Plans Reversed
Colorado National Bankshares,
Inc., has announced that as a result
of economic conditions, its agree­
ment for the acquisition of Republic
Bancorporation Inc. has been ter­
The agreement was approved by
the two parties in September, 1981,
with a contemplated exchange of ap­
proximately 184,000 shares of Col­
orado National Bankshares stock
for all of the stock of Republic Bancorporation, a one-bank holding
company which owns the Republic
National Bank of Englewood. The
proposed acquisition was approved
by the Board of Governors of the
Federal Reserve System on June 8,

ceiling and all new furniture on the
main floor of the bank. A large mur­
al of a landscape scene adorns one of
the large walls and L.A. Huffman
photographs are displayed through­
out the bank.


Promoted at Billings Bank
R. L. Reiquam, pres., Miles City
J. T. Cadby, exec, v.p., Helena

Miles City Bank Celebrates 100
ULY 7 marked the 100 th Anni­
versary since the chartering of
First National Bank in Miles City,
according to R.L. Reiquam, presi­
dent and chairman. The bank cele­
brated this momentous occasion
with a three-day Open House for its
customers and friends, which was
highlighted on July 7 by a visit from
the Governor of Montana, Ted
Schwinden, who issued a proclama­
tion commemorating the event and
made remarks to the large crowd in
attendance, praising the banks of
Montana for their part in the devel­
opment and progress of the State,
mentioning that First National in
Miles City was one of the examples
of this endeavor.
The three-day Open House was a
great success, with over 1,200 reg­
istrants receiving Centennial cups
and historic booklets. The final day
a huge birthday cake was cut and
served to the nearly 400 visitors. On
Saturday, July 10, a huge barbecue
was held at the Range Riders Mu­
seum and park, as a Customer A p­
preciation Day.
The bank concluded its Centen­
nial celebration on Sunday evening,
July 11, with a tour of the bank and
a dinner at the Crossroads Inn for all
employees and spouses, former em­
ployees and directors and spouses,
special guests, and visiting bankers.


Featured guest was Claude Jones,
First National president from 1938
to 1960 and chairman of the board
from 1960 to 1968. This date also
was Mr. Jones’ 88th birthday, and
he was pleasantly surprised by a
huge birthday cake, later served to
all the guests.
Another featured speaker was
Bruce Thomson, president of the
bank from 1970 to 1974. George Dix­
on, president and chief executive of­
ficer of First Bank System, the par­
ent holding company of First Bank
Miles City, spoke of the contribu­
tions of the bank, not only to First
Bank System but to all of Miles City
and Montana.
Concluding remarks were made
by Bank President R.L. Reiquam,
who praised the staff and their
spouses for work on the Open House
and Centennial celebrations, and
also the board of directors for their
assistance in the remodeling pro­
gram and the development of the
The bank completed a major re­
modeling project in early July,
which included new lighting, heat­
ing and ventilating fixtures, as well
as removal of a good share of the
windows, replacing them with insul­
ation and heavy rockwork and in­
sulated windowpanes. This reno­
vation included new carpeting, new


Al Winegardner, president of
First Northwestern National Bank
of Billings has announced the pro­
motion of Kenneth D. Carson to vice
president and manager of agricul­
tural loans and the election of Jack
Howe as an instalment loan officer.
First Northwestern Bank along
with Northwest Bancorporation,
The American Linen Company, Bur­
lington Northern, Inc., and Rauenhorst Corporation have donated an
original sculpture titled “ Trough,”
by John Van Alstine, to the city of
Billings as a gift commemorating
the city’s centennial.

Missoula President Elected
The board of directors of First
Bank Western Montana, N.A., Mis­
so u la ,
elected Michael
J. Wangen presi­
dent and George
M. Leland chair­
man, effective
S e p te m b e r 1.
Mr. Leland con­
tinues as the
bank’s chief ex­
ecutive officer.
Mr. Wangen is
currently serving as vice president
and senior lending officer of First
Bank Great Falls. He began his
banking career in 1967 as a trainee
at First Bank Grand Forks, North

Retires After 46 Years
Walter Sells, assistant cashier for
First National Bank, Butte, retired
last month completing a 46-year car­
eer in banking, according to Bill
Tait, bank president.
A native of Butte, Mr. Sells has
served First National more than 31

Bancard Corp. Names One

Newly remodeled First National Bank in Miles City.
Federal Reserve Bank of St. Louis

Charlotte Gray has been named
acting manager of Bancard Corpora­
tion of Montana according to an an­
nouncement made by Samuel R.
Noel, executive vice president of
Bank of Montana System.
Northwestern Banker, September, 1982


When you need the capability
th a t only a leader in bank
data processing can provide,
you can depend on US.

For more information, call
Tom Jackson. 402/536-2083

Main Bank
20th & Farnam
Regency Office
Central Park Plaza Office

Nearly every financial activity occurring in
banks has some link to a computer. For example,
in U.S. National correspondent banks, advanced
data processing systems handle the big jobs
such as electronic funds transfer, item pro­
cessing, application accounting, and on-line
processing. And they do so with a proven
It’s part of our reputation of providing quick
turnaround, and immediate attention to chang­
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National, through our affiliation with Banco’s
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computer service. A good
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O N ^T T^
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Member FDIC
Affiliate of Northwest

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis


were $596 million, up 4.4% over the
same date one year ago.

Fremont Bank Charter Filed

ICBN Offers Brokerage
Service to Member Banks

Independent Community Bank
Network, an organization initially
providing a cash management soft­
ware product to community banks,
announces its association with First
Mid America, Inc. of Lincoln, a
midwest based securities firm. With
the association, member banks of
ICBN may offer to their customers a
means of purchasing and selling
stocks while at the same time retain­
ing a discounted fee.
ICBN currently has 22 member
banks located in eight states. Mem­
bership in ICBN includes the above
mentioned discount brokerage ser­
vice as well as a copyrighted bank
in-house cash management program
known as Money Market Checking,
initially developed by the Bank of
Norfolk. The Bank of Norfolk was
one of five ICBN member banks par­
ticipating in a four-week brokerage
service pilot program.
ICBN currently has joint mar­
keting agreements with Financial
Systems Inc., of Kearney and Lin­
coln, as well as SISK Company of
Ft. Worth, Tex.

Grand Island Appoints Two
Dennis L. Barkley has been ap­
pointed vice president in loan ad­
ministration and Lloyd L. Brown
was appointed to the board of direc­
tors of Commercial National Bank &
Trust Company, Grand Island, ac­
cording to E.J. Thayer, president.
Mr. Barkley received his higher
education at South Dakota State
College and for the past nine years
has been affiliated with the North
Platte State Bank in its lending divi­
Mr. Brown is president of Nebras­
ka Truck Center, Inc., a company
that he organized in 1970.

Net Income Increase Noted
James Stuart, Jr., president and
Federal Reserve Bank of St. Louis

chief executive officer of the Com­
merce Group Companies, announced
consolidated first six months’ net in­
come for the total Commerce Group
organization of $3.9 million, up 2.2%
over the first six month period of a
year ago.
Mr. Stuart commented that con­
solidated earnings would have been
up nearly 10%, but the impact of the
poor economy required more than
planned charges against earnings to
maintain prudent reserves for loan
Consolidated loan volume at June
30, 1982, was $435 million, 7.4%
ahead of last year, and total deposits

A group of organizers has filed an
application with the Comptroller of
the Currency for a new national
bank charter to be located in Fre­
mont and called American National
Bank of Fremont.
Organizers of the new charter in­
clude John R. Young, Jr., agent for
the group, John M. Shonsey, chair­
man of American National Bank,
Omaha, Wendell D. Bruner, William
L. Monke and Larry J. Bert.
The new charter, which would be
located at 502 North Broad Street,
has a proposed capital structure of:
capital - 500,000; surplus - 500,000,
with a total of 1,000,000.

CBCT Approval Received
First National Bank & Trust Com­
pany of Lincoln recently received ap­
proval from the Comptroller of the
Currency to establish a CBCT branch
at 1265 South Cotner Boulevard,

Omaha Bank Markets Super NOW Account
Douglas County Bank & Trust
Co., Omaha, has introduced a new
has prompted enthusiastic reactions
from corporate and individual cus­
tomers, according to Dale Heimann,
president. In response to requests
from other bankers, the bank is li­
censing the program to other finan­
cial institutions, he stated.
Mr. Heimann
sa id
C O U N T fu n c­
tions as a com­
b in a tio n
a c­
count, enabling
c u s to m e r s to
m on ey
market rates of
interest on their
invested funds,
while allowing them immediate ac­
cess to their funds through unlim­
ited draft writing privileges.
Minimum opening balance for a
The balance in an established ac­
count can go below that figure,
however, and drafts may be written
for any dollar amount. Interest is
paid on the idle balance in the ac­
count, above a $500 minimum.
“ W e’re pleased,’ ’ Mr. Heimann
stated, “ that the funds invested in

remain here in the community. They
don’t become part of the outflow of
cash into a handful of major metro­
politan money centers.’’
The agency agreement which es­
tablishes the SUPER NOW AC­
COUNT enables the bank to invest
new dollars in high yield funds,
through the bank’s repurchase
agreements collateralized by its
portfolio of U.S. Government and
Agency securities.
Mr. Heimann noted that, unlike a
standard NOW account, SUPER
NOW ACCOUNT is available not
only to individuals and non-profit
organizations, but to corporations,
partnerships and businesses.
p rog ra m is a d m in iste re d b y
DCB&T’s trust department, headed
by Richard D. Mullin. The market­
ing division with Harlan O. Falk as
senior vice president, has assumed
primary responsibility for attrac­
ting new accounts through an ag­
gressive print and broadcast ad­
vertising campaign. The division
also has coordinated a successful of­
ficer call program in which bank
management has been making per­
sonal contact with a broad range of
Northwestern Banker, September, 1982

sen and Co. for five years, Mr. Smol- ^
sky specialized in auditing of finan­
cial institutions.



Donald J. Murphy, chairman and
chief executive officer of the United
States National Bank of Omaha, has
announced the election of David F.
Malone to second vice president,
correspondent banking; Robert A.
Meyer, second vice president;
Charles A. Cooper, investment of­
ficer, and William J. Hoelting, per­
sonal banking officer.
Mr. Malone joins the bank with
extensive experience in agricultural
lending and agribusiness, having

awrence A. Carlson has joined
Omaha National Bank as a vice
president in its investment depart­
ment, according to John D. Woods,
board chairman
and ch ief e x ­
ecutive officer.
Mr. Carlson will
be managing the
sales and under­
w riting a ctiv i­
ties of the de­
fo r m e r
O m ah an , M r.
C a rlson m o st
recently has been fixed income coor­
dinator and an investment executive
with Shearson/American Express in
Greenwich, Conn. Prior to that he
was assistant vice president in the
municipal bond department at Kid­
der, Peabody & Co. in New York.
Mr. Carlson is a member of the
Municipal Bond Club of New York.
While in Omaha, Mr. Carlson was
an executive with First Mid Amer­
ica, Inc., serving as Omaha branch
manager and later as senior vice
president and manager of First Mid
America’s municipal bond depart­
ment. He is a graduate of Creighton
Mr. Woods also announced that
Steve A. Scanlan has joined the in­
vestment department as an invest­
ment representative. A graduate of
Northwest Missouri State Universi­
ty, Mr. Scanlan previously was a
broker in the Omaha office of Piper,
Jaffray & Hop wood, Inc., and prior
to that with Bache, Halsey, Stuart,
Shields, Inc., in Omaha.





Delwyn K. Bowden has been named
president of Realbanc, Inc., an Oma­
ha-based mortgage banking firm,

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

succeeding Keith L. Morphew, who
has retired.
The announcement was made by
John D. Woods, board chairman and
president of Omaha National Cor­
poration, Realbanc’s parent com­
pany. Realbanc originates, packages
and services commercial and resi­
dential mortgage loans and other
types of real estate investments.



Mr. Bowden, who has been senior
v ice p re sid e n t in ch a rge o f
Realbanc’s loan production division,
joined Omaha National Bank’s
mortgage loan department in 1972
as a second vice president. He moved
to Realbanc later that year when
Omaha National Corporation, the
bank’s holding company, formed the
mortgage banking subsidiary.



John M. Shonsey, chairman of the
American National Corporation, has
announced the
election of John
Smolsky to the
n e w ly -c r e a te d
position of assis­
tant vice pres­
of American Na­
tional Bank.
A s s o c ia te d
with the Omaha
office of the ac­
counting firm of Arthur and Ander­



spent the last five years as area loan
manager for the Equitable Life A s­
surance Society in Kearney.
Mr. Meyer joined the bank in
1978 as a credit trainee and was
named manager of the credit depart­
ment in 1980. In 1981 he was elected
commercial banking officer.
Mr. Cooper has served the last
three years as a stock broker, most
recently with Piper, Jaffray & Hopwood, Inc., of Omaha.
Mr. Hoelting joined the bank’s
credit adjustment department in Ju­
ly, 1980, and was named personal
banker for the Regency Office in
November, 1980.



The executive committee of the
First National Bank of Omaha re­
cently announced the appointment
of Kenneth R. Nimmo to vice presi­
dent, data processing; Robert G.
Eastman and W. Scott Morris to se­
cond vice president, leasing, and


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Nebraska News

James E. Senter, second vice presi­
dent, data processing.
Mr. Nimmo, a retired. U.S. Air
Force Colonel, joined the bank in
June, 1982. He received a master of
science degree in computer science
from Texas A&M University.
Mr. Eastman has been with the
bank since 1971 and with the leasing
department since 1976. Mr. Morris,

Geneva Bank Holds Open House


FILLMORE County Bank in Geneva recently completed the remodeling and expansion of
its 15 year old banking facility. Open house was held August 23-28, with drawings d a ily .#
The expansion provided for additional private office space, including a new financial
center and agricultural center. A greenhouse at the front of the building sets off the beauty
of the bank and provides a passive solar energy system. Glass paneling follows through
the single-level, 7,200 sq. ft. building and office spaces.



a graduate of the University of
Nebraska at Lincoln, joined the
bank in 1977. Mr. Senter, recently
retired from the U.S. Air Force,
managed the Air Force data auto­
mation shops for the past nine




The proposed Nebraska National
Bank has received preliminary ap­
proval to establish a new bank in
Omaha, according to Omaha attor­



Tom G ro ve

D o n D w o ra k

Vice President

Vice President

ney Virgil J. Haggart, Jr.
Preliminary approval was granted
by the Office of the Comptroller of
the Currency in Washington, D.C.,
on July 20, Mr. Haggart said. The
bank will now begin the organiza-1
tional process under the supervision
of the Comptroller’s office and ex­
pects to commence business in a
temporary facility near 140th and
Center Street by December 1.
Organizers of the bank are An­
thony B. Cudahy, a cattlefeeder;
George E. Lemen, Jr., owner and
president of Western Printing Com­
pany; Dr. John W. Pemberton, op- <
thamologist; Thomas W. Thompson,
owner and president of Fontenelle
Springs Bottled Water Company,
and Virgil J. Haggart, Jr., partner in
the law firm of Gaines, Otis, H ag-(
gart, Mullen and Carta, and acting
agent for the organizers.
The bank will offer a full line of
banking services including loans;
checking, savings, and NOW ac-(
counts; credit cards; certificates of
deposit, and safety deposit boxes.

Deluxe Check Sales Gain

Karen Lee

V irgil W ie s n e r

Bond Investment

Bond Investment

packers national bank
O r TOLL FREE In Nebraska

4710 South 23rd Street

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Omaha, Nebraska 68107


Deluxe Check Printers, Incorpor­
ated reports that sales for the first
six m onths of 1982 reached
$ 2 6 7 ,4 1 1 ,2 2 3 , up 8.7% from
$245,955,168 a year ago. Net earn­
ings for the period were $28,645,276
or $1.25 per share, up 16.7% from
last year’s $24,544,482, or $1.07 per
Eugene R. Olson, chairman, presi­
dent and chief executive officer, also
announced that the Deluxe board of
directors increased the regular quar­
terly dividend to 284 per share on alL
outstanding common stock, up from
the previous 254 per share.

Nebraska News




NBA OFFICIALS held eight group meetings in six locations last month. Pictured from left to right are: Harold Stuckey, pres. NBA and
pres., Lexington State B&T; Don G. Johnson, v.p., NBA and pres., Farmers Natl., Pilger; Stan Matzke, recently appointed NBA exec, v.p.,
Lincoln; Dave McBride, NBA dir. of communications and educ., and NBA geni, counsel Bill Brandt, who is also pres. 1st Natl., Unadilla.

Group Meetings Draw Big Attendance
Editor and Publisher
PPARENTLY, Nebraska bank­
ers were ready for a renewal of
their annual group meetings after a
lapse of seven years since the last
round of meetings was held. NBA
President Harold Stuckey, president
of Lexington State Bank and Trust
Co., announced the renewal of the
meetings with only one month’s no­
tice and found from the response of
about 900 bankers attending that
the state’s bankers are anxious to be
kept informed about the current
status of state and federal legisla­
tion, as well as continuing NBA ac­
tivities. The last meetings were held
in 1975. The 1974 group meetings
drew 1,635 attendance, an all-time
Mr. Stuckey was joined on the
group meeting circuit by Don G.
Johnson, NBA vice president, and
Stan Matzke, the recently appointed
executive vice president of NBA
who heads the staff of Lincoln head­
quarters offices. Mr. Johnson is
president of Farmers National


Bank, Pilger. Joining them from the
NBA staff were General Counsel
Bill Brandt and Dave McBride, di­
rector of communications and edu­
Mr. Stuckey, Mr. Johnson and
Mr. Brandt took part in each of the
six meetings, along with Nebraska
Director of Banking Paul Amen.
The banquet speaker at each dinner
was Bob Devaney, athletic director
at the University of NebraskaLincoln.
Three meetings were held in each
of two successive weeks. Groups 6,
4, and 5 met the first week in Scottsbluff, Hastings and Gothenburg.
Groups 1, 7 and 8 met together in
Lincoln on August 23, and were
followed with Group 2 in Columbus
on Wednesday and Group 3 in Nor­
folk on Thursday. Groups 7 and 8
were formed in recent years from
Lincoln and Omaha banks to allow
for greater representation on the
NBA executive council by these two
heavy population centers.
Mr. Amen reviewed various as­
pects of the work his office handles
in connection with banks and other

financial entities. Describing the
current CAMEL exams followed by
his department as well as federal
regulators, he said only six Nebras­
ka state chartered banks now have a
three rating (“ of concern” ) and only
four of them have been considered
serious enough to date to be sent a
memo of understanding about steps
that must be taken to rectify that
At each meeting, reports were
given by each of the eight NBA
standing committees. These were
given by a committee member resi­
dent in each group. Those reports
were given on agriculture, bank
management, government relations,
loans and investments, marketing,
personnel, planning and BankPac.
Bill Brandt also gave a review of
legislation pertinent to Nebraska
bankers and reviewed in detail the
new forms that will be used under
the new Reg Z that becomes effec­
tive October 1.
The program at each location
started at 3:00 p.m., concluded at
6:00 p.m for a social hour, followed
by the evening dinner and Mr. Deva n ey’ s talk to conclude the

The group meetings gave new NBA exec. v.p. Stan Matzke an oppportunity to get acquainted with bankers statewide. In photo at left he is
pictured (center) with Robert L. Zabawa (left), pres., American Natl., Omaha, and G. Allen Dunlap, pres., Farmers & Merchants Bank,
Milford. RIGHT—Visiting at one meeting were Lloyd Schepler, v.p.; C.A. Noble, cash, (both at left), and Jim Kenner (right), pres., all with
Thayer County Bank of Hebron, and Arnold Otten (second from right), pres., Nebraska Security Bank, Deshler.
Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis


First National
h a sa new
source of funds
for cattle and
grain loans.

Lincoln News
HE BOARD of directors of Na­
tional Bank of Commerce Com­
puter Services Corporation has elec­
ted William R. Ligo to the post of
president, chief
executive officer
and to the board
of directors of
one of the larg­
est c o m p u te r
service organ ­
izations in the
state, servin g
over 200 banks,
and having an asset base of $3
billion. Prior to coming to NBC/CSC
in 1979, Mr. Ligo was manager of
Worldwide International Banking
with Sperry Univac in Philadelphia.
Dana L. Henricksen, the outgoing
president and chief executive officer,
will continue to serve the corpora­
tion as chairman of the board.



agricultural credit corporation that is
a wholly owned, non-banking sub­
sidiary of First Midwest Bancorp., Inc.
First Agcorp is another of the
many correspondent services available
through the First National Bank of
St. Joseph. Just call John Kam,


e .r r Where your
success is a

First National
St. Joseph, Missouri 64502

Call: (816) 279-2721
A ffiliate of First Midwest Bancorp., Inc.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Member F.D.I.C.



N W H AT is believed to be the
largest limited partnership fund­
ing ever for vertical market micro­
computer software products, HTS
Partners, Lincoln, has announced
completion of a $1,750,000 offering
to develop 16 additional AgDisk and
BankDisk microcomputer software
First Mid America, Inc. of Lin­
coln was the sponsoring dealer for
the offering, which sold-out on July
23. Harris Laboratories, Inc. will
serve as the general partner. AgDisk
products will be developed and
marketed by HTS (Harris Technical
Systems - an affiliate of Harris
Laboratories, Inc.) while BankDisk
will be the responsibility of FSI
(Financial Systems, Inc., - a sub­
sidiary of Harris Laboratories, Inc.).
The extensive number of AgDisk
products already on the market to­
day will be joined by the first of
these new products in February,
1983. The final AgDisk partnership
product is scheduled for completion
in July, 1984.
The specific BankDisk products
to be developed by the partnership
include: Asset/Liability Manage­
ment, Safety Deposit Accounting,
Installment Lending, Credit Anal­
ysis, Repo Contracts, Fixed Asset
Accounting, and General Financial



Specialists in
fulfilling your every
correspondent need...

Vice President & Manager
Correspondent Bank Division

Vice President

Correspondent Bank Officer

Correspondent Bank Officer

Correspondent Bank Officer

Correspondent Bank Officer

Correspondent Bank Officer

Correspondent Bank Officer

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

Northwestern Banker, September, 1982


Conventional wisdom:
visit with us when
you're inDes 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
ent services available from
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!

/ / / ;
/ / / i
/ / / /

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Come Crow I
With Us I

f l |O T
I U O l

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,
Tim Kyndesen,
Ren Filriere


Iowa Bankers Association
96th Annual Convention
Des Moines Marriott Hotel
September 19-21




ARTNERS Progressing Together” will be the theme for the 96th
annual Iowa Bankers Association convention September 19-21 in
Des Moines. For the second year, headquarters will be at the new Marriott
Hotel in downtown Des Moines. More than 3,000 registrants are expected.
IB A President Tom C. Dunlap, chairman and president of South Story
Bank & Trust Co. of Slater, has announced a program that features wellknown banking and business executives, as well as some noted motivational
speakers. Scheduled to succeed Mr. Dunlap at the convention as president
for 1982-83 is IBA President-Elect L.C. “ Bud” Pike, president of the
Farmers Savings Bank in Grundy Center. Serving as treasurer the past
year has been Russell W. Spearman, president, Citizens Savings Bank, Sac
City. Heading the full-time staff at the IBA headquarters in Des Moines is
Neil Milner, executive vice president.
A top feature of the convention will be the opening speaker at the ag pro­
gram on Monday morning, during the first general session. He is Dr. Victor
Lishchenko, who heads the food and agriculture department, the Institute
of the USA and Canada, and the Academy of Science of the USSR. As
Russia’s top ag expert, Dr. Lishchenko will bring to Iowa bankers a per­
sonal view of how Russia’s ag production is progressing and the relation­
ship between Iowa grain production and his country.
On several occasions, Dr. Lishchenko has hosted John Chrystal, presi­
dent of Iowa Savings Bank, Coon Rapids, who was invited to Russia to take
a first-hand look at Soviet agriculture, then offer top ag leaders a critique
and suggest better ways of doing the job there. At the request of IBA, Mr.
Chrystal invited Dr. Lishchenko to come to Des Moines to present this im­
portant address. Mrs. Lishchenko, who is a graduate biologist, was schedul­
ed to accompany him, but it was learned last month she has been ill and can
not make the trip.
A special feature in the August N o r t h w e s t e r n B a n k e r , page 58, gives
more detail about Dr. Lishchenko.
U.S. Secretary of Agriculture John Block has been invited to address the
ag session. Also speaking then will be Dean McKee, director of market
economics at Deere & Company, and Alan R. Tubbs, president, First Cen­
tral State Bank, DeWitt, who is a member of A B A ’s special ag executive
Political speakers include Iowa Governor Robert D. Ray, and the two
candidates seeking the office he plans to leave at the end of this term—Rox­
anne Conlin, Democrat, and Terry Branstad, Republican.
Other speakers include A B A President Lew Jenkins; Dr. Paul Nadler, the
noted economist well-known to Iowa bankers; Capt. Gerald Coffee, U.S.N.;
G. Gordon Liddy; Glen Lemon, chairman of First Bank & Trust Co.,
Booker, Tex., and Ron Luciano, former baseball umpire and author of “ The
Umpire Strikes Back,” one of the top 10 best sellers.
Capt. Coffee is a navy pilot, now Fleet Air Operations Officer with U.S.
Pacific Fleet headquarters. His inspirational address relates how his seven
years as a POW in Vietnam renewed and reenforced his faith. Gordon Liddy
is the mastermind behind the ill-fated Watergate burglary, who later served
eight years of his 20-year sentence.
A large exhibit area will be available again in the Marriott’s third-floor
ballroom. Entertainment features include two performances on Sunday






Exec. Vice Pres.
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Iowa News

night by the old ballad singer himself, Burl Ives; the President’s Ball o n ®
Monday night at Hotel Ft. Des Moines, featuring two bands, and a Country
Hoe Down Tuesday night at the Marriott. Shuttle bus service will be
available throughout the convention to move registrants among the hotels
and to activities listed in the Spouses’ Program.








Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Sunday, September 19
3:00 -6:00 Convention Registration—Marriott Second Floor.
Annual Meetings—Marriott Ballroom.
1:30 IB A annual meeting.
2:00 IBIS annual meeting.
2:30 Iowa Transfer System annual meeting.
3:00 IACH A annual meeting.
3:30 A B A Iowa membership annual meeting.
5:30 Burl Ives Concert—Civic Center.
6:30 -8:30 Reception at Marriott.
Monday, September 20
9:00 Welcome—IBA President Tom C. Dunlap, chairman and president,
South Story Bank & Trust Co., Slater.
9:10 IBA A g Report
9:25 “ Russian Agriculture Today’ ’—Dr. Victor Lishchenko, head of food
and agriculture department, the Institute of the USA and Canada,
and the Academy of Science of the USSR.
10:05 IBMC Report.
10:10 Dean McKee, director of market economics, Deere & Co., Moline, 111.
10:45 IACH A Report.
10:50 M ASI Report—Ed L. Tubbs, M ASI President; chairman, Maquoketa State Bank.
11:00 Hon. John Block (invited), U.S. Secretary of Agriculture.
Alan R. Tubbs, member, A B A ag executive committee; president,
First Central State Bank, DeWitt.
11:40 Iowa Governor Robert D. Ray.
Noon Lunch.
2:00 Roxanne Conlin, Democrat candidate for Governor.
2:15 “ Faith: The Key to Survival and Triumph” —Capt. Gerald Coffee,
U.S.N., Fleet Air Operations Officer, U.S. Pacific Fleet Head­
2:50 IBIS Report and Annuity update.
3:05 G. Gordon Liddy, author and lecturer.
4:00 Adjournment.
8:30 President’s Ball—Grand Ballroom, Hotel Fort Des Moines. Music
by: “ Flip Side” (contemporary), and “ Valley Jazz I ” (big band
Tuesday, September 21
9:00 General Session—Presiding: IBA President Dunlap.
Introduction—Audio Visual, Wes Ehrecke.
Invocation—Lord’s Prayer.
9:10 “ Report from the A B A ” —Llewellyn Jenkins, A B A President; vice
chairman, Manufacturers Hanover Trust Company, New York.
9:50 “ Iowa A B A Report“ —Richard W. Buxton, A B A vice president for
Iowa; president, Peoples Trust & Savings Bank, Indianola.
10:05 “ Small Bank Marketing” —Glenn Lemon, chairman and chief ex­
ecutive officer, First Bank & Trust Co., Booker, Tex.
10:50 ITS Report.
11:00 Legislative Update.
11:10 “ Productivity Begins With Y ou” —Lee Shelton, Lee Shelton &
Associates, Denver, Colo.
Noon Luncheon—Past IBA Officers and 50-year Bankers—Hall of Cities.
2:00 General Session—Presiding: IBA President Dunlap.
Introduction of Past Officers and 50-Year Bankers.
2:20 “ The Dollar and Y ou” —Dr. Paul S. Nadler, professor of business ad­
ministration, Rutgers University.

W e've got
Correspondent Banking Services
in the bag.
Whether you need over-line loan
participation, help with collec­
tions, or assistance on compiling investment port­
folios, you can depend on getting it from American
Trust, your full-service correspondent bank.
You can also count on Bernie Miller, our cor­
respondent banker, for a full range of Federal
Reserve System services: inexpensive
and easy procurement of currency
and silver, direct deposits of Federal
checks through an Automatic

Clearing House, and domestic and
foreign wire transfer of funds.
In addition, our Trust Department backs up
Bernie with trust services to enable you to establish
your own bank pension plan, profit-sharing plan
and a wealth of other inflation-fighting programs.
You may even wish to offer these same services to
your own customers. T o find out how easily you
can provide more services, call Bernie today at

American mTrustO Savings Danl^
The Danl^qf Opportunity
Town C lock Plaza Dubuque, Iowa 52001
Phone: 319/582-1841
Member F.D.I.C. & F.R.S.

"More batiks are
offering their customers
more services
thanks to the help
they're getting from
American Trust. "

W e ll see y o u in
Des M oin es at the
Iow a C on v en tion .
Federal Reserve Bank of St. Louis


Iowa News


3:00 IBA Report.
3:05 Iowa Young Bankers—Gerald T. Burke, IYB president; vice presi­
dent, Farmers & Merchants Savings Bank, Manchester.
3:20 Terry Branstad, Republican candidate for Governor.
3:35 President’s Report—Tom Dunlap.
3:45 “ The Umpire Strikes Back” —Ron Luciano, former baseball umpire
and author of the best seller book (top 10) by the same name.
5:30 -6:30 Cocktail Hour in Exhibit Area.
6:30 Country Hoe Down Dinner & Dance—Marriott Grand Ballroom.
Casual or western wear. Country dinner. Music: Bluerock band from
Spooner, Wis.
Installation of new officers.

Monday, September 20


Spouse Activity Center Open
Homes Tour — $11.00
Bill Young, Financial Survival for Women
Craft Seminar — $10.00
Crafters Gallery
Charlie’s Luncheon & Theater — $13.50
Marriott Luncheon & Fashions — $12.00
Makeovers & Hair Style Show
Safety & Extortion “ Lady Stay Alive’’
Food Demonstration

Tuesday, September 21


Spouse Activity Center Open
Cultural Tours & Luncheon — $15.00
Nutrition & Healthy Eating
Bill Reichardt, “ Effective Dressing”
Christmas Crafts Workshop — $10.00
Crafters Galley Opens
Younkers Luncheon & Style Show — $10.00
Marie Wilson, Stages in a Woman’s Life

First National Bank: E. Neal
Trogdon, senior vice president;
Stanley Nitzberg, John M. Clark,
Thomas M. King and Nevin G. Bow­
T HE 96th annual convention of st, senior vice presidents; Donald J. ser, vice presidents; Clarence “ Bud”
the Iowa Bankers Association Melichar, James L. West and Har­ Cross, assistant vice president, and
will be held September 19-21 at the lan D. McCaw, vice presidents; John David J. Varnerin and Paul A.
Marriott Hotel in Des Moines. Offi­ H. Hinrichs, assistant vice pres­ Gargula, commercial banking of­
cers and representatives of larger ident, and Lila M. Helms, trust of­ ficers.
banks from major banking centers ficer.
Harris Trust: John A. Sivright,
in the midwest will be attending the
executive vice president; J. David
Cox, James W. Hill and Stephen P.
Following the list of bankers plan­
American National Bank: George Dustman, vice presidents; Edmond
ning to attend is a list of personnel
Metzger, executive vice president; M. Kennedy, investment officer, and
from investment, service and equip­
Robert F. Sherman, senior vice pres­ Milledge C. West, commercial bank­
ment firms registered for the con­
ident; Dennis F. Reher, second vice ing officer.
LaSalle National Bank: Edward
president, and Guy Rich, correspon­
Grant, chairman; M. Hill Ham­
Cedar Rapids
executive vice president; Rein
Merchants National Bank: James
and Marc Benson, senior vice
C oq u illette, president; R ob ert
O ’Meara, executive vice president; ert E. Wahlgren, Lawrence H. Fro- presidents; William Love, James
John Mangold, senior vice presi­ wick and Robert C. Vasko, vice pres­ Daly, Rudolph Frank, William
dent; Jerry Trudo and Terry Martin, idents; Robert G. Morlan, second Crawford and Richard Brown, vice
vice presidents, and Stan Farmer vice president; Douglas S. Kim, presidents; Richard Flesvig and
and Doug Keiper, assistant vice Penne R. Milliken, Mary K. Nihlean Karen Roden, assistant vice pres­
and Pamela J. Windham, banking idents, and Randall A. Lehne, loan
Peoples Bank and Trust: Don G. associates; Bruce E. Langille, bond
National Boulevard Bank: H.
Ellis, executive vice president; Law­
Peter DeRosier, vice president.
rence E. McGrath and Gary D. Ern- representative.
The Northern Trust Company:
Drovers Bank of Chicago: Frank
E. Bauder, chairman; James J. Car- Stephen B. White and Curtis E.
mody, president; Robert F. Corey, Skinner, senior vice presidents;
executive vice president; John J. Ernest P. Waud, III and Edward J.
Crotty, Jr., and Max A. Roy, senior Walsh, vice presidents; Jeffrey B.
vice presidents; Bruce W. Taylor, Early, commercial banking officer;
correspondent banking officer, and John P. Drawer, bond investment
officer; Corrine E. McClintic, investKathleen T. Hardy.

You Will See Them at the 96th
Annual Iowa Bankers Convention

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

The names and faces in your downtown multi-billion dollar correspondent business bank
keep changing because your correspondent business isn’t as important to them as it was
ten or twenty years ago. The young fellow you talked to last month has been transferred
to the International Department, Trusts, Investments, or whatever. Who'll answer your
phone call today? Will the new man know or care about your bank? Will he have influence
with his bank’s top echelon people?
At Drovers Bank of Chicago, you always know whom you're dealing with. Top level
banking professionals you’ve come to know and respect over the years. We're one of the ten
largest correspondents in Illinois, and it isn’t just a sideline. It's one of the most important
aspects of our business. That's why you have direct, daily access to our Board Chairman,
our President, and our staff of correspondent banking career professionals. Tell us your
needs. We'll see to it that you get fast action and quick decisions.
We offer a full range of services that include overline loan participations, Federal Fund
Transactions, safekeeping of securities, cash letters, bond and money markets —these and
more correspondent services. Call me, John Crotty, toll-free at 800-621-8991 (in Illinois,
800-572-2498). I’ll fill you in on all the ways we can help.

The Responsive Correspondent

Drovers Bank

o f C h iC Q Q O

4 7 th & A s h la n d A v e n u e , C h ic a g o , Illin o is 6 0 6 0 9 , 3 1 2 -9 2 7 -7 0 0 0

Member, Cole-Taylor Financial Group— Independent Banks Working Together
Member Federal Reserve System and F.D.I.C.
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982

Iowa News
ment officer; Robert F. Grant, com­
mercial banking representative, and
Patricia R. Rose, administrative
Davenport Bank and Trust Com­
pany: John K. Figge, president;
James K. Figge and Thomas K.
Figge, executive vice presidents;
Robert G. Lenertz and James E.
Shrader, senior vice presidents;
Richard R. Horst, vice president and
cashier; Michael A. Bauer, senior
correspondent banking officer; Glen
W. Piotter and Robert W. Hartman,
computer services officers, and John
W. Schricker, senior credit card of­
Northwest Bank and Trust Com­
pany: Larry Makoben, vice presi­
American Trust and Savings
Bank: Nicholas J. Schrup, chairman;
Christy F. Armstrong, president;
Leo F. Kane, executive vice presi­
dent; Robert G. Scott, senior vice
president, and Bernard D. Miller,
assistant vice president.
Kansas City
Commerce Bank: Tom Jennings,

Bill Carver

correspondent banking officer.
United Missouri Bank: E.L.
Burch, executive vice president;
Richard H. Muir and Patrick G.
Boyle, vice presidents, and Thomas
G. Atkins, assistant vice president.
First Bank Minneapolis: Kenneth
A. Wales, senior vice president;
William W. Hamilton and Allen G.
Highum, assistant vice presidents,
and Michael P. LaVigne, correspon­
dent banking officer.
Marquette National Bank: Jack
Campion, vice president; Dick
Holmes, assistant vice president,
and Craig Bishop, investment de­
Northwestern National Bank:
Donald G. Pederson, senior vice
president; Kenneth J. Vegors, assis­
tant vice president, and Scott A.
Faris, correspondent banking of­
New York
Chemical Bank: John A. Robb,
vice president, and Philip M. Glazer,
assistant vice president.
First National Bank: Phil Giltner,

Fred Douglas

Bill Beavers

president; Jack Canaday, executive
vice president; Bruce Lauritzen, Bill
Henry, Don Ostrand, Ralph Peter­
son and Dennis O ’Neal, vice pres­
idents; Jim Flodine, Scott Morris
and Bob Meisinger, second vice
presidents; Fred Kuehl, marketing
officer, and Diane Casart, VISA.
The Omaha National Bank: John
D. Woods, chairman and chief
executive officer; Thomas H. Allen,
president; John E. Martin, Ralph
Noren, John C. Furrow, Daniel F.
Boehle and Delmar Olson, vice pres­
idents; John F. Wear, second vice
president; John M. Carmichael, pro­
duct planning manager, and Linda
Boehle, Karen Stoney and Sherry
U.S. National Bank: Donald J.
Murphy, chairman and chief execu­
tive officer; James R. Campbell,
president; Lee J. Bachand, Howard
W. Nielsen and Robert E. Billmeyer,
vice presidents; David F. Malone,
second vice president, and William
J. Dewhurst, correspondent banking
St. Joseph
First National Bank: Wm. Man­
ring, vice president.

Jim Foley

Dave Van Metre

See You at the Iowa Convention
C h il e s , H

e id e r

& C o ., I



1300 WOODMEN TOWER - OMAHA, NEBRASKA 68102 ■ (402) 346-6677
612 LIBERTY BUILDING ■ DES MOINES, IOWA 50309 ■ (515) 243-0833

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis



Open 350 branches
for less than $50,000.

Joe Broders
Correspondent Banking

Gary Stevenson
Vice President
Correspondent Banking

Mark Paradise
Account Manager
Banks of Iowa Computer Services (BICS)

W e can show you how .. .with Instant A ccess!
For an initial investment of ap­
proximately $50,000, your cus­
tomers can have access to their
accounts 24 hours a day at 350
locations in Iowa, Nebraska and
South Dakota.

account deposits are prohibited
by law between states.)

You, too can become the domi­
nant EFT financial institution in
your community by establishing
terminal locations and issuing
your own Instant Access cards.
With Instant Access, your cus­
Let Gary, Joe and Mark show
tomers can access their ac­
you how the Instant Access
counts at hundreds of locations
system can be implemented in
— banks, hospitals, grocery
your bank. Give them a call at
stores or shopping malls — in
the three-state area. It takes just (712) 277-0618 for additional
seconds for deposits, withdrawals, information.
transfers and balance inquiries
These banks are recognized leaders
to be routed through the Iowa
in electronic banking in their com­
Transfer System (ITS), confirmed munities, and you can be too:
with BICS and sent back to the
Steele State Bank
Cherokee, IA
originating ATM or POS. (Only

Valley Bank of Union County
Elk Point, SD

First National Bank
Le Mars, IA

Valley Exchange Bank
Lennox, SD

Pioneer Valley Bank
Sergeant Bluff, IA

Citizens State Bank
Sheldon, IA

First National Bank
Sioux City, IA

Valley National Bank
Sioux Falls, SD

Dakota County State Bank
South Sioux City, NE

Valley State Bank
Yankton, SD

First National Bank m
Member FDIC • RO. Box 3248, Sioux City, Iowa 51102 • A BANKS OF IOWA’ BANK
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Iowa News

St. Louis
Mercantile Trust: Jerry Carman,
assistant vice president; Charles
Evans, banking officer, and Mark
Edwards, banking representative.

Taylor, president; Gary W. Steven­
son, vice president, and Joe D.
Broders, correspondent banking
Northwestern National Bank:
Doug Brown, vice president, and
Tom Pohlman, assistant vice presi­
Security National Bank: Edward
C. Thompson, chairman; R.E. Gene
Hagen, president; Steve Hatz, vice
president; Ken Roeder, correspon­
dent bank officer; Ron Kiel, cor­
respondent bank representative, and
Wilma Weeks, correspondent bank
operations officer.

St. Paul
First National Bank: Charles E.
Arner, chairman and chief executive
officer; Dale S. Hanson and Richard
C. Swanberg, senior vice presidents,
and Clayton C. Johnson, Michael T.
Mishou and Robert J. Peroutka, vice
Sioux City
First National Bank: Richard C.

“The largest,
most complete
in East Central



Peoples full financial services...
Helping build your go o d life.

Peoples Bank
and Trust Company

Cedar Rapids

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Toy National Bank: John W. Van
Dyke, Jr., chairman; Leslie H. Ol­
son, president, and Richard A.
Breyfogle and Stanley W. Fred­
ericks, vice presidents.

Investment, Equipment and
Service Firms
The asterisk (*) indicates those
firms registered as exhibitors.
*Bank Marketing Association,
Chicago, 111.: Ellen Wrend.
*Banks of Iowa Computer Ser­
vices, Cedar Rapids: Brian Phillips,
president; Brian Scott and Dick Or­
mond, vice presidents; Steve Boes
and John Meehan, territory man­
agers; Annalee Scott, director of ac­
count management, and Sally Eg­
gleston, director of education.
*Bell & Howell, Des Moines:
Norm Lust, regional sales manager,
and Mary West, Gary Nickerson,
Mick McMullen and Bob Weatherly,
sales representatives.
*Brandeis Travel, West Des
Moines: Dennis Liddy and Kaydee
*Brandt, Inc., Peoria, 111.: Bill
Welch, district manager, and Dan
Thiewes, sales representative.
Omaha: James O. Grimes and Herb
*Burroughs Corporation, West
Des Moines: Don Janssen, Ed Man­
gold, Don Hicklin, Ron Cambell and
Cathy Durand, branch managers;
Chuck Taylor, Mark Stuck, A1 Grill
and John Washburn, marketing
managers, and Dale Beaty, Glenn
Anspach, Joe Graziano, Randy
Luebe, Jack Steck, Jeff Gebauer,
Bob English, Rich Barchard, Lee
Mueller, Steve Holmes and Mike
Barsema, account representatives.
*Karma Cahill Fine Art and
Framing, Cedar Falls: Karma Z.
Cahill, owner, and Onalee J. Reeves,
art consultant.
*Cardpro/Magtek, Westmont, 111.:
William Kelly.
Chiles, Heider & Company,
Omaha: David Van Metre, senior
vice president, and Fred Douglas,
Jon Narmi, Jeff Moran and Tad
Dunham, vice presidents.
*Cummins-Allison Corporation,
Chicago: Keith H. Jung, Rich M c­
Coy, Pat Cummiskey and Richard
Dain, Bosworth, Inc., Des Moines:
Paul Bartlett, vice president, Des


Let’s all get together
at this year’s
Iowa Bankers Convention.

Jerry Pearson

ih.___ M

Bob Stenbeck

Jerry OConnor

Jim Hill

Deborah Wilson

Ed Kennedy

Hubert and his team of Harris Bankers for Iowa
look forward to greeting their old friends and
meeting new ones. We’ll see you at the Iowa
Bankers Association Convention in Des Moines
from September 19th through 21st.

¡ y

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

Northwestern Banker, September, 1982


Iowa News

Moines, and Howell Roberts, vice
president, Omaha.
*Daktronics, Inc., Brookings,
S.D.: Susan Almhjeld, sales and
*Data Business Equipment, Des
Moines: Art Joura, Jim Kelley, Don
Jones, Lynn Groen and Leonard

la.: R.T. Zahn, chairman; Jerry
Gross, president, and Bob Jamerson, architect.
Tom Hagan & Associates, North
Kansas City, Mo.: Tom Hagan,
owner, and Linda Blue Smith, presi­

Dal Huston, Roxanne Landman, 1
Roger Oakland and John Trave.
*NCR Corporation, Des Moines:
Jim Schulte, Lori Bents, Marcus
Wilson, John Peglow, Steve Patter­
son, John Evans, Bob Lapinski, Don
Frazer, Cathy Vanhaeur, Mike Mur­
phy, Dave Heath, Glen Simpson,
Leonard Fagans and Dave Bublitz.
*National Fidelity Life Insurance (
Company, Des Moines: Craig Ross
and Jerry Caligiuri.
*Nesper Sign Advertising, Cedar
Rapids: Larry Sovern, vice presi­
dent, and Bernie Wright, sales i
Newlin Bank Sales, Des Moines:
Richard C. Newlin, president, and
Martha J. Newlin and William D.
Newlin, vice presidents.
*Northwestern Bell, Des Moines:
Bob DeYoung, Denny Spurgeon,
Alan Ball, Rick Goos, Glen Fox and
Paul Blum.

*Hawkeye Bancorporation, Des
Moines: Paul D. Dunlap, president;
*Des Moines Stamp Manufactur­ Myron Weil, executive vice presi­
ing Company, Des Moines: Frank dent; Robert Murray, Lewis Lowe,
Child, Tom Child, Dave Child, Ran­ Donald Runger and James Bullard,
dy Miller, John Higgins and Ken senior vice presidents; Stephan L.
Jones, vice president; Steven B.
Diebold, Des Moines: John T. Barger, director of sales and
Murphy, regional manager; Roger marketing, and John C. Foley, assis­
Swanson, ATM account manager, tant vice president.
and Bill Osier, sales representative.
*HBE Bank Facilities, St. Louis:
*Docutel Corporation, West Des Martin Goldberg and George Gerza.
Moines; Greg Byerly.
Holder and Associates, Ames:
*Eastman Kodak Company, Min­
neapolis: Steve J. Penisten, sales
*Information Management Inter­
*Electronic Office Systems, Des national, Inc., Kansas City, Mo.: Ed­
*Office Concepts, LTD., Water­
Moines: Edgar A. Herrman, presi­ ward Baker, regional manager, Tom
la.: Dan Hanson.
dent, and Rhonda Griffiths, repre­
Frank Lewis, regional manager.
*PCA, International, Inc., Mat­
*Iowa Bankers Insurance and Ser­ thews, N.C.: Don Noe.
Financial Insurance Associates,
vices, Inc., Des Moines: Bill Carr,
Inc., Ankeny, la.: Jon M. Grindle.
*Priority Publications, M in-'
*Financial Systems, Inc., Kear­ Larry Gille, Jim Jensen, Merritt neapolis: Bob Larranaga and Mary
ney, Nebr.: David T. Waldron, chair­ Krause, Gary Livesay, Ron Meyer, O ’Donnell.
man, and David Stochl, Iowa sales­ Margie Schaefer and Millie Uding,
*Prestige Business Fashions,
vice presidents, and A1 Tinder, ex­
Marlin, Tex.: Marlene .
ecutive director.
General Bank Equipment & Sys­
*A.O. Smith Harvestore Pro­
*Kooker & Associates, Spencer,
tems, Inc., Omaha: Tom Sternberg,
ducts, Inc., Ames: Stephen K. Sul­
Jim Rogers, Larry Toole, Fred Hol- la.: Earl F. Kooker, Rick Dean and livan.
bert, Mark Vandemark and Tom Vernon Hinkeldey.
*TLS Company, Cedar Rapids:
*Lease Northwest, Inc., & Banco Bob Pentico, A1 Cross and T o m 1
Greenleys, Corporation, Sigour­ Financial Corp., Des Moines: Gary Wilkerson.
ney, la.: Terry Greenley, LaRue Hermann.
The TRW-Fujitsu Company, Oak
Kephart and Terry Schroeder.
*LeFebure, Cedar Rapids: Larry Brooks, 111.: Norbert Badowski, ac­
*Kirk Gross Company, Waterloo, Stewart, regional manager, Omaha; count manager, and Max Borris.
John Me Area vy, Cedar Rapids; Rich
Collins, George Vinson, Lon War­
ren, Jack Dudash, Richard Wilson Bill Dawdy, Rich Davis, Larry
and Richard Huston, sales engi­ Glass, Walt Astor, Bill Engel, San­
dy Lamb, Mary Beck, Frank Widneers.
Margaret Noblin, Jim Mitchell, 1
*Life Investors, Cedar Rapids:
Steve Turner, Dave Akehurst, Glor­
Chuck Krant, Bob Akerstrom and
ia Johnson, Je Baumgartner, Mardy
Bill Reilly.
Lind, Bob Bevins and Scott Mitch­
*Life Investors Insurance Com­ ell.
pany of America, Cedar Rapids: Bob
*Union Planters Bank of Mem­
Okerstrom, Mason City.
phis, Memphis, Tenn: Don Knight.
*M & I Data Services, Milwaukee,
United States Check Book Com­
Wis.: Kathy Caveney.
pany, Omaha: Ed Batchelder, vice
MGIC, Des Moines: Gordon president, and Glen Altfillisch, Ber­
Won’t leak or dry out. Imprints crisp & clean
Champman and Ted Miller.
nie Burger, John Kohring, Tom
every time. Available in all sizes. Black, red
or purple imprints.
*Money Processing Consultants, Potthoff and Chuck Strattan.
Des Moines: Kim O. Ballew, William
*USLIFE Credit Life Insurance
D E S M O IN E S S T A M P M F G . C O M P A N Y
P. Crane and Craig W. Welch.
Company, Des Moines: Bob Eller,
Manufacturers of Marking Products Since 1880
*Monroe Calculator, Des Moines: Joe Zearing, Bob Atess, Roger JerDES MOINES, IOWA 50306 • PHONE (515) 288-7245
Jim Finnegan, Norm Greenwald, rick and Scott Votava.



Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Iow a
Hard working people. Carefully cultivating today’s dreams
for an endless green sea o f tomorrows. With the help o f
Iowa bankers. We salute you.
We look forward to seeing you in Des Moines, September 19-21,
at the Iowa Bankers Association Convention.

First Bank Minneapolis

flnrrpcnnnrlpnt Rankinn
Banking DfinartmiPnt
First Bank Place, Minneapolis, MN 55480 (612) 370-4762
Federal Reserve Bank of St. Louis


Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis


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Banks of Iowa Computer Services
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Iowa News

Group Chairmen Report Area Conditions
ROUP chairmen of the Iowa
Bankers Association have sub­
mitted the following reports on farm
and business conditions in their


Group 1
Chairman Harold H. Harms,
senior vice president, LeMars Sav­
ings Bank, LeMars: Weather in North
west Iowa and
G rou p 1 has
been wetter than
usual but most
crops were in the
ground on time
and now look to
be e x c e lle n t .
This is also an
intensive liv e­
stock area and
with im proved
prices for both cattle and hogs most
of our customers are showing a pro­
fit on their overall operation.
Main street is still hurting and
especially those businesses that are
100 percent farm oriented. Most
businessmen are optimistic that if
livestock prices continue to be pro­
fitable that will be reflected in more
business activity by fall or early
Group 2
Chairman Douglas McDermott,
president, Home State Bank, Jeffer­
son: The crop outlook has improved
c o n s id e r a b ly
since the very
wet spring con­
ditions. An early
frost is still a
real p o te n tia l
risk. The price
outlook on corn
and soybeans is
well below pro­
du ction costs.
Livestock opera­
tions have shown improvement over
a year ago, with hogs being the most
profitable commodity in farming so
far in 1982.
The problem of high interest rates
for the second consecutive year is
creating continuing erosion in agri­
culture financial positions and is a
serious concern to our banks.
The business economy, which re­
lies on the health and profitability of
the agricultural section, is obviously

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

suffering, too. We need lower in­
terest rates and a strong and reliable
market for the corn and soybeans.
Group 3
Chairman Glenn O. Emmons, ex­
ecutive vice president, Northwood
State Bank, Northwood: The area
that is included
in Group 3 is
about as agricul­
turally oriented
as any in the
State of Iowa.
of the crops in
this area, at this
date, is excel­
lent. G row ing
conditions have
been exceptionally good, with timely
rains and plenty of good warm wea­
ther. The early planted corn can be
expected to give bumper yields,
while the corn planted in late May,
after all the rains, has made good
progress and barring an unseas­
onable frost can be expected to be a
fairly good crop. Soybeans are pro­
gressing normally and on schedule.
Hog prices are excellent and cus­
tomers in the hog business are doing
very well. Cattle prices also are some
better than they have averaged in
the past few years, and while we do
not have many feeders in our area,
generally there is a profit in cattle.
With interest rates that have been
high during the past year and grain
prices greatly depressed, the out­
look for many of the grain farmers is
pessimistic. With another good corn
crop coming, storage capacity for
many will be at a premium. Much of
the 1981 crop has not been sold and
capacity for storing the new crop is
lacking. It is likely that much of the
grain on hand or the new crop will
have to be sold at prices below the
cost of production.
As a result of these factors busi­
ness in our rural communities has
been just so-so. There is practically
no activity in housing and business
at the implement and auto dealers is
below expectations.
Despite the depressed farm prices
and slow activity in our rural towns,
the economy is basically sound.
With interest rates coming down
there is still cause for optimism that
activity will increase.

Group 4
Chairman J. Bruce Meriwether,
president, First National Bank,
Dubuque: The Northeast Iowa area,
may be able to
r e w rite
books on sur­
vival techniques
in at least parts,
if not all, of the
eight county ar­
ea. E xtrem ely
high unemploy­
ment in several
m e tr o p o lita n
areas has im­
pacted all segments of the economy
to a recessed, if not depressed situa­
tion. And yet, there is a high sur-<
vival rate in the business communi­
ty and shreds of optimism are begin­
ning to appear as interest rates
soften somewhat and inflation
seems under control. There is great)
hope that Reagonomics if allowed to
work, will work, and a gradual re­
building of a strong economy is in
the offing.
Leo Mallie, vice president-«
agricultural lending at First Na­
tional Bank of Dubuque, offers the
foilwing as his perspective of our
Group IV Agriculture economy.
“ Northeast Iowa agriculture con-«
tinues to get a wary eye from both
farmers and agricultural lenders.
Continued high interest rates are a
major disappointment as 1982
moves into the third quarter. Th
continued impact of high rates on
net farm income is one of the most
serious problems farmers are facing.
It follows, therefore, that those farm
operators that are highly leveraged^
face serious problems. This is com­
pounded by increases of other farm
expenses and a slide in corn and milk
prices. Dairy income has declined
due to price pressures and an unus-*
ually severe winter, which increased
disease problems and reduced pro­
“ Higher than expected hog prices
lead bullish pressures for a turn m
Northeast Iowa farm economy. Four
or five of the state’s leading hog pro­
ducing counties are in Northeast
Iowa. This has a very favorable im­
pact for this area and is certainly a’
turn-around from the previous year.
“ Lower corn prices are a negative
factor. The increasing amount of
cash corn sales in this area over the.
past few years will be a depressing
factor of lower farm income in the


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Chicago, Illinois 60603
(312) 443-2769

Member FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Iowa News

area. However, a large portion of
corn is fed in this livestock intensive
part of the state. Thus, the impact
of lower corn prices this fall on farm
income will be blunted. A g lenders
are concerned with specific farm
operations as they review spotty
crop conditions, amount of debt and
lack of containment of farm opera­
ting expenses.”

duced record yields because of the City: Crops in our area are behind
early rains.
but coming on
The hog farmer is experiencing a well now. Spot­
much better return on their hogs as ty, but heavy
compared to one year ago. Unfortu­ rains th rou gh
nately, most of the marginal farmers the middle of Ju­
are low on hog numbers and unable ly hurt. Low
to capitalize on this improved mar­ spots are beyond
replanting. De­
The cattle feeder is able to realize spite early sea­
profit on his slaughter cattle, espe­ son problems my
cially if they were purchased when farmers predict
feeder prices were depressed last average to above
Group 5
winter and spring. Because of the se­ average yields by season end. The
Chairman Donald L. Curry, presi­
vere winter, the rate of gain has been current price levels and the future i
dent, Farmers Savings Bank, Maslowered and many are not ready for outlook does not promise much in
sena: After the “ monsoon” this
slaughter as fast as usual. They are the way of profits and storage ap­
spring, the crops
requiring more feed than normal pears to be a going concern as we
were p la n te d .
which has reduced these profits near the harvest season.
They look like
somewhat from anticipated net re­
Livestock inventories are on the i
excellent crops
turns based on prices.
but hog inventories ap­
for the first of
The weakest spot in the farm pear to be gaining as prices increase
July. However,
economy is the high leveraged and we have cheap grain for feed.
it is the first of
farmer with high debt and high in­
Farmers are looking at a break­
August. There­
terest to service. Hopefully, we are even year and there is a feeling th a t1
fore, we must
in the the correct direction at this the deferred crop acres program is
have a late fall to
time, which will bring some relief for not working as hoped for. High in­
mature corn and
terest rates continue to be a problem
beans and bring
for the farmer and lack of price in­
these crops to the bins and banks.
relief is a growing concern. 1
Grain prices continue to be depressed
seems to be grad­
with not much relief in sight.
Chairman Robert J. Miller, presi­
which spells no
Pasture and hay ground has pro­ dent, Polk City Savings Bank, Polk
relief for the businessman whose
sales are already down. The recent
downward movement in interest
rates may be the brightest light on
the horizon but there may be more
pessimism about that continuing
than confidence that a solid recov­
ery is at hand.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Group 7
Chairman William J. Beohm,
chairman and president, Tama State
Bank, Tama: The general economy
is much like that
of last year. Bus­
inesses are redu­
cing inventory
or have turned
to mail order or
order on demand
type of business
to cut down on
overhead costs.
Pork p ro d u -1
cers have en­
joyed a strong first half of 1982 with
good prices and lower feed costs.
Even higher prices are projected for
the rest of the year.
Cattle feeders have felt the same
kind of high fat cattle market and
low prices for replacement cattle
purchases in the past winter. Beef



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Cedar Rapids, Iowa 52499
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Iowa News

prices are somewhat in question
with live cattle markets falling $10
in the past month.
Because of unfavorable weather
conditions, a large percentage of the
corn and bean crop was planted in
late May and June. The problems as­
sociated with an early frost are on
the minds of most farmers. The low
grain prices will probably force more
farmers to be dependent on the gov­
ernment grain programs to market
their 1982 crop.
Group 8
Chairman David J. Malloy, vice
president, Farmers Trust and Sav­
ings Bank, Williamsburg: Due to
the above av­
erage rainfall in
the Group 8 ar­
ea, it is probably
safe to say that
crops are good
unless there’s a
low spot in the
field. Late July
rep orts
v a ry
from spotty to
excellent expec­

ted yields. It looks as though the
overall yield will be a little less than
last year’s, however. One of the ma­
jor problems in this area has been
soil erosion due to the overabun­
dance of rain. In addition, many far­
mers have given up their livestock
operations and no longer need grass­
land or oats, two good soil pre­
Cattle numbers in our area are
down. There are a few replacements
being purchased, although it’s been
slow. The only ones buying cattle
are the established farmers who
have equity to fall back on. Hog
numbers are still strong due to the
present good prices, the cash flow
hogs provide and the present greater
return for a bushel of corn. Slaugh­
ter houses report that farmers must
be holding back gilts, which could be
detrimental to the longevity of the
good pork prices.
Implement and automobile deal­
erships are feeling the squeeze. The
ones that seem to be doing well are
those dealerships with good shop
business, low inventories and little
borrowed money. Some business
people have resorted to using the

Committed to
making your
bank stand
apart from the

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

equity in their homes for additional
capital. Any business that utilized
the theory that “ you have to be lev­
eraged to the hilt” has now either
closed its doors or is in serious trou­
In the area of housing, sales are
very low; construction has been vir­
tually non-existent. Some cities re­
port the greatest number of homes
for sale ever. Inevitably, this has
softened the prices of homes.
The major complaint in this area
has been the high interest rates.
People are not making any large cap­
ital improvements unless they have
the liquid cash. In contrast to all
this, things seem to be progressing
quite well at the home base of the
Rose Bowl Iowa Hawkeyes!

Group 11
Chairman William Logan, presi­
dent, State Central Savings Bank,
Keokuk: Group 11 businessmen
and farmers are
feeling the se­
vere strain of
continuing high
in terest rates
and sluggish de­
Farmers are
concerned about
prices they re­
ceive which com­
pa re
Great Depression. Still everyone
feels President Reagan is on the
right track by cutting federal expen­
ditures and working toward a bal­
anced budget.
We see progress made by the Fed­
eral Reserve in controlling money
supply, and while tough on capital
intensive business should eventual­
ly prove the lubricant for Reagan­
Group 11 banks are working very
hard to bring back funds which have
drifted to the money markets. Ques­
tions such as ‘ ‘Will Merrill Lynch
finance my next tractor? Combine?
How about next year’s crop ex­
pense?” all point out the fallacy of
the DIDC in their lack of response to
provide a competitive instrument to
MMC and bring back funds neces­
sary for any community to grow.
All together business and agricul­
ture in Group 11 are streamlining
and consolidating while optimis­
tically looking to the coming year
under the Reagan administration.


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Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Iowa News

Group 12
Chairman E.J. Leahy, president,
Northwestern State Bank, Orange
City: The most encouraging and
brightest news item on the financial
scene in several months has been
Mr. Henry Kaufmann’s prediction
that long-term
in terest rates
will drop to the
single-digit lev­
el. Although a
drop in interest
rates alone will
not be the salva­
tion to the bus­
iness conditions
that we are ex­
p e rie n cin g , it
certainly will be a big assist.
Overall in the northwest Iowa
area that Group 12 covers, we have
found ourselves with the livestock
farmers who were able to continue
with their enterprises having a good
year in both cattle and hogs. The
hog prices have been at record levels
due to the cutback in production.
Fat cattle prices have been at pro­
fitable levels since the first part of
this year with a lower production

and a steady demand, it appears
that the prices will remain on a pro­
fitable level throughout the rest of
the year.
Crop prospects in our area are ex­
cellent. However, the prices that will
be available at harvest time will be
considerably lower than what they
were a year ago, especially for those
people who are not in the reserve
acreage program and who sell grain
during harvest. However, in the bulk
of our area, we are fairly intensive in
livestock production and with the
livestock prices being at the present
levels which are profitable, the grain
will be fed and it would appear that
we will be able to have a good year
next year from the livestock enter­
An insight as to why our meat
products have been moving very
well at these prices is the fact that it
would appear the consumers have li­
quidated their short-term indebted­
ness and they are definitely not buy­
ing new cars and building new
homes. Therefore, it seems they
have a certain amount of additional
discretionary income which they are
evidently spending on food items,

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Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

V.P. N am ed in Cedar Falls
The board of directors of Midway
Bank & Trust, Cedar Falls, has elec­
ted Steven E. Pape to the position of
vice president. He will replace Dale
J. Diamond, senior vice president,
who recently resigned.
Mr. Pape had been employed by
the Iowa Department of Banking
since 1976 and held the title of Bank
Examiner IV. For the past five
years he concentrated in the area of
credit analysis.

N ew President N am ed at
First N ational, W averly

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which include our red meat pro­
ducts. We will need this continued
purchasing of our red meat products
for sometime in order for our live­
stock producers to regain some of
the equities that have been eroded
during the past two years.
Business on main street has been
relatively good when you consider
the total economic condition of the
area. With the lowering of interest
rates and a possible pick up in the
economy, it would appear that some
of our younger business people with
lower equities in their businesses will
be able to survive and continue to be
in business as the economy picks up.
Overall, the business atmosphere
and conditions are better this year
at this time than they were last year.
Possibly, we are seeing a repeat of
history in which agriculture and the
agricultural areas go into a recession
first and come out of it first.

Craig Ross

Jim Arens has been named presi­
dent of First National Bank of
Waverly. He succeeds L.G. “ Jack”
Hix, who has served as president
since 1970.
M r.
A re n s
s ta r te d w ork
with the First
National Bank
in Waverly in
1958 as an assis­
tant cashier and
was promoted to
cashier in 1964.
In 1971 he was
promoted to his
most recent position as senior vice
president and cashier.
Mr. Arens graduated from the
University of Iowa in 1958 with ma­
jors in accounting and economics.
While attending the university, he
worked as a note teller at the Iowa
State Bank and Trust in Iowa City.
Federal Reserve Bank of St. Louis


Iowa News

Iowa Bankers Elect 1982-83 Officers
HE FORMAL installation of
new officers for the 1982-83 year
of the Iowa Bankers Association
will take place during the 96th an­
nual convention in Des Moines, Sep­
tember 19-21.
“ L.C. “ Bud” Pike, president of
the Farmers Savings Bank in Grun­
dy Center, is scheduled to become
president of the
IB A . He has
been president­
elect the past
year and will
succeed Thomas
C. Dunlap, chair­
man and presi­
th e
S o u th
S tory
Bank & Trust at
, r piKE
Slater. Mr. Pike




had earlier served as IBA treasurer.
The only announced candidate for
the office of president-elect for the
mail ballot election held late last
month is A.L. Maser, president and
chairman of the First National Bank
in Le Mars.

Russell W. Spearman, president
and trust officer of Citizens Savings
Bank in Sac City, will complete the
second year of his two-year term as
IB A treasurer.
L.C. “ Bud” Pike
Mr. Pike is a native of Brownsdale, Minn, where he was born Oc­
tober 20, 1922. He began his bank­
ing career with First National Bank
in Austin, Minn., in 1940, working
there until he joined the United
States Navy in 1942. During World
War II he was in the submarine ser­
vice, serving aboard the USS Sailfish in the Pacific Fleet.
Upon his return to Austin in 1945
he joined Geo. A. Hormel & Co., re­
joining First National Bank in Aus­
tin a year later. From 1948-57, Mr.
Pike was with Travelers Insurance
Company, starting as a farm loan
appraiser, then serving as assistant
manager for a four-state area before
resuming his banking career.
He joined the Farmers Savings
Bank in Grundy Center in October,
1957, became a director of the bank
in 1964, and has served as president
and chief executive officer since
1972. He served in several posts
with bankers associations before be­
ing elected IB A treasurer. He is a
past president of the Grundy Coun­
ty Bankers Association, past chair­
man of IBA Group 7 and served on
the IB A legislative council. As
group chairman and later as trea-

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Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

surer, Mr. Pike has been a member ^
of the IBA board of directors and ex­
ecutive committee. He has also been
very active in civic endeavors in
Grundy Center.
A.W. “ A l” Maser
Mr. Maser is a veteran of 30 years
in the banking business. Upon com­
pleting his studies at the University
of Iowa he joined the Iowa banking^
department in 1952 as a state bank
examiner. In 1958 he joined First
National Bank in Le Mars as cash­
ier. He was named executive vice
president and cashier in 1964 and*
was elected president a year later
when he purchased controlling in­
terest from the retiring owner.
In 1972, Mr. Maser was the foun­
der and sole organizer of the Lakes*
National Bank in Arnolds Park at
Lake Okoboji. He also serves as
president and chairman of Lakes
National, a member of the Iowa In-,
dependent Bankers.
During his banking career, Mr.
Maser also has been associated with
First National Bank, Sibley; First
National Bank, Oelwein, and Amer-|
ican State Bank, Sioux Center.
He has held various appointments
with the Iowa Bankers Association
and serves currently as a member of
the Legislative Division. He is also a|
member of the board of directors of
United Central Bancshares, Inc.,
Des Moines, and continues as chair­
man of United Central Bank of
Sioux City (formerly Valley States
Mr. Maser has taken advanced fi­
nancial studies, including Harvard
Graduate School of Banking and the
Graduate School of Banking at the(
University of Wisconsin. His civic
activities include serving as chair­
man of the board of trustees at
Westmar College and as a trustee of
the American Institute of Business(|
in Des Moines.
Russell W. Spearman
Mr. Spearman was born in Mt.
Pleasant on July 3, 1931, and grew
up on a Henry County farm near Sa-*
lem. He attended Iowa Wesleyan
College and served with the Iowa
National Guard from 1948 to 1956
at Mt. Pleasant.
Mr. Spearman began his banking*
career in 1952 with the Hillsboro
Savings Bank. He was associated
with the First National Bank in
Mason City from 1957 to 1961, them
joined Farmers State Bank at Plainfield. In 1966 he moved to the Clarke


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Northwestern Banker, September, 1982


Iowa News

Grand Opening Held in Alton

Bank in Sioux City, has been elected*
secretary of the Big Soo Chapter of
the data processing management as­

Fort Dodge Bank
Acquires New Name

OVER 1,500 persons attended the grand opening of the new building of the Commer­
cial State Bank in Afton. Located on the northwest corner of the town square, the
new facility encompasses 8,184 sq. ft. and makes possible a community room, a
drive-up window and an after hour depository, services all new to this small town.

County State Bank at Osceola, and a Iowa Bankers Mortgage Corpora­
year later in 1967 was named presi­ tion. Mr. Spearman also has been ex­
dent of Citizens Savings Bank in tremely active in civic life, including
Sac City, the post he continues to serving as president of the Country
hold at this time.
Club, Chamber of Commerce and KiMr. Spearmen is a past president wanis Club there in past years.
of the Sac County Bankers Associa­
tion, served on the IBA legislative Toy Natl. Employee Named
committee for 10 years and is a
Terry Nelson, systems and pro­
member of the board of directors of gramming manager of Toy National

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

Division of
Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

B u tto n

& Company Inc.

The State Bank in Fort Dodge of­
ficially changed its name to First
American State Bank July 16, withfl
locations in Fort Dodge and Dayton.
This action came after a special
meeting at which shareholders of
The State Bank voted unanimously
to exchange their shares of The^
State Bank stock for shares of First
American Bank Group, LTD, a new
holding company, and after approv­
al by regulatory authorities.
“ This is definitely not a sale to a*
third party,” Richard L. Smith,
chairman and chief executive officer
of the bank, stated, “ rather a stock
transferral which may enable The
State Bank to remain as the only in-*
dependent bank in Fort Dodge and
one of the strongest in the United
States. Remaining independent and
still being able to compete is very,
important to us as we plan our fu­
ture to serve the people of Fort
Dodge, Dayton and surrounding

Iowa News

>1982—Year to Remember for
Department of Banking
The Iowa superintendent of
banks, Thomas H. Huston, and his
l^ ta ff at th e
departm ent of
banking, are not
likely to forget
events of 1982
|for many years.
•Earlier in the
year the sudden
closing of the
First N ational
ank of Hum......... .
b old t hit the
Iowa banking scene unexpectedly.
The loss of approximately $16 mil­
lion in government bonds at the
pbank was uncovered by federal au­
thorities, who declared the bank in­
solvent. That was on a Friday. After
a weekend of frantic phone calls, in­
tervention by Iowa Congressmen
•with the FDIC, and the help of Mr.
Huston’s staff, a new bank was
chartered by the Iowa department
to take over the remains of First Na­
tional. The new, state-chartered
•Hawkeye Bank & Trust was opened
the following Monday morning by
Hawkeye Bancorporation so that
customers could walk in to take care
of banking needs without missing a
•day. Gary Llewellyn, a Des Moines
stockbroker, awaits trial on charges
of allegedly appropriating the miss­
ing bonds to finance his personal in­
' »The Mt. Pleasant Bank and Trust
Co., which had been victimized by $2
million in losses in connection with
demise of Prairie Grain Co. of Stockport, struggled to come back from
Those wounds, but they proved fatal
when Iowa examiners finally had to
close the bank and turn it over to the
FDIC for liquidation. After its an­
nounced plan to pay off insured
'depositors (up to $100,000 per ac­
count) FDIC changed its mind and
allowed the Iowa department to
charter a new state bank to rise from
.the ashes. Quick trips to the FDIC
in Washington by Herman Kilpper,
president of Bankers Trust Co., Des
Moines, succeeded in gaining that
intervention with FDIC by Iowa
kRepr. Jim Leach. Bankers Trust had
earlier in the week found itself the
controlling stockholder of Mt. Plea­
sant Bank & Trust through foreclos­
ure proceedings. Again, the new
fstate bank charter was awarded
through a bidding process to Hawk
Federal Reserve Bank of St. Louis

eye Bancorporation, Des Moines,
which opened Hawkeye Bank &
Trust after missing only one bank­
ing day after the closing.
•Following close on the heels of
the Mt. Pleasant failure was news
that Bankers Trust had to foreclose
on a stock purchase loan at Citizens
State Bank in Donnellson. That
bank is totally viable and was not
reported to have any examination
problems. Bankers Trust thus has
controlling ownership of the Citi­
zens State Bank. Jerry Harkins, Jr.,
chairman, has resigned and Herman
Kilpper, president of Bankers Trust,
has been elected to the board in his
place. Mr. Kilpper said Doug VanDyke, president, will continue in
that position and as chief executive
•Various legal actions have oc­
cupied an inordinate amount of time
for the Iowa department all year.
First, the department in late 1981
filed suit against an assortment of
nationally known investment firms
and several major banks from out­
side Iowa in its All-Savers suit. Bas­
ically, it asks the Court to declare
that the investment firms illegally
engaged in gathering deposits in
Iowa without having authority of
act in such capacity. The suit fur­
ther alleges the banks named did ac­
cept such illegally obtained depos­
its. The suit is still “ in progress.”
Second, the department is oppos­
ing action taken by First Bank Sys­
tem of Minneapolis late last year to
buy Banks of Iowa, Inc., a Des
Moines-based multi-bank holding
company which owns 11 Iowa
banks. Iowa Superintendent Huston
requested the Federal Reserve
Board a number of months ago to
rule that the FBS move contravenes
Iowa law. So far he has not received
a direct answer. The FRB did pub­
lish new rules recently that say such
transactions by an out-of-state hold­
ing company to set up a purchase
conditioned on change of present
banking law may not unilaterally tie
up shareholders’ stock; i.e., the
holding company being “ purchased”
or wooed must have equal opportuni­
ty to buy back such conditional rights
and respond equally well to any
other proposals that may ensue. The
matter has not been resolved for the
department and probably won’t be
until definite word is issued by the
Third, the Iowa department asked
the federal regulators one year ago


to rule whether the Red, White and
Blue Saver plan offered by National
Bank of Waterloo is acceptable or if
it violates Reg Q. “ W e’re certainly
not against National Bank of Water­
loo,” Mr. Huston said, adding, “ all
we wish to know is that if it’s legal it
be made available by ruling to all
Iowa banks.” Last month, the Na­
tional Bank of Waterloo was asked
by the FRB to withdraw the plan,
and the bank did so immediately.
Fourth, one complaint by an Iowa
banker has asked the superinten­
dent to determine whether the de­
posit-gathering activities of Diners
Club International for Citibank
(South Dakota), N.A. are illegal.
Diners Club, owned by Citicorp, of­
fers three savings & checking plans,
all at higher rates. Mr. Huston said
it appears at this time that the
Diners Club plan is different from
the All Savers squabble and has
been put on the back burner while
the other suits are being handled.

Fort Dodge Elections Told
United Central Bank & Trust Co.
in Fort Dodge recently announced
three staff changes. Michael B.
Scacci has been promoted from as­
sistant cashier to assistant vice
president-manager Crossroads Of­
fice. John W. Bruner has joined the
bank as an assistant vice president,
with primary responsibilities in the
marketing of the bank’s financial
services, and Peter M. Wolters has
joined as an assistant trust officer.
Mr. Scacci joined the bank in
1979 as an instalment loan officer.
Mr. Bruner previously was em­
ployed as a principal and teacher at
Sacred Heart Junior High and as a
dean of students, teacher and coach
at St. Edmond’s High School. Mr.
Wolter had been employed as an
estate planning specialist with the
Federal Land Bank of Omaha and as
an associate county judge in Kear­
ney, Nebraska.

Libertyville Promotes Three
Robert B. Stump, formerly ex­
ecutive vice president and cashier,
has been promoted to president and
cashier of Libertyville Savings
Bank, Libertyville.
Also announced was the promo­
tion of Carol M. Wisecarver and
Janet Bickford from assistant cash­
ier to assistant vice president and
Linda J. Dougherty from teller to
assistant cashier.
Northwestern Banker, September, 1982


Iowa News

ity that the bank customer had td|
follow, and we felt we should do the
A S THE Iowa Bankers Associa­ support in the legislature. Most of same. Even with this, we found we
tion was approaching its 96th the legislators were ones who knew can provide all the necessary pro­
annual convention, President Tom the background of the legislation be­ grams and stay within the austerity
Dunlap and IB A Executive Vice cause they were there when it was budget. I think it was significant!
President Neil Milner visited with first enacted. Also, our local bankers that the survey we sent out asking
the N o r th w e ste r n B a n k e r editor developed good rapport with legisla­ for the membership's candid opinion
about highlights of the past associa­ tors, regardless of party. More and of our programs and IB A ’s admini­
tion year, the status of Iowa bank­ more we see legislators looking to stration of them came back with
ing and the direction the industry is the local banker as a community 95% approval. Also, we conducted M
leader who can give sound counsel, closed door session with 150 chief
Here are some of their comments reflecting the welfare of the entire executive officers of Iowa banks—no
staff, no tape recordings-and gave
from that interview:
every opportunity to express
Q. What were your principal goals
for the 1981-82 year?
Q. How do you judge the health of themselves from the floor or privately®
Q. What are you doing to assure
Mr. Dunlap: Solving our associa­ the Iowa Banking industry today?
programs that will be in tune
tion office space problem and work­
Mr. Dunlap: So far as the banks of
ing on legislation.
Iowa are concerned, we recognize
Mr. Dunlap: Each IBA affiliate
has formulated a long-range strateg®
ic plan. These were approved by the
“One way of looking at whether a state
individual boards, then by the IBA
board itself. One way of looking at
association is of r e a l value or not is to
whether a state association is of real
consider where the member banks
value or not is to consider where the®
would be without their association.”
member banks would be without
their association and the variety of
training it offers. For example, we
Earlier, we had gone through the the need for a sound capital base and had 475 bankers turn out last w eek,
exercise of examining carefully the I can tell you the health of Iowa to attend seminars where they couler®
ramifications of purchasing a build­ banks is strong, with capital well look at the new Reg Z forms. We
ing for use by IB A staff because of over 9%, among the best in the na­ have 110 to 120 phone calls to the
the greatly expanded services tion. Also, our banks have main­ association each Tuesday to learn
through our various subsidiaries. tained loan loss reserves on a contin­ the new rate.
There was opposition voiced to the uing basis through the good years
proposal when it was presented to just to be able to meet any emergen­ Q. What are some of the problems
groups of bankers around the state. cies that might come with times like you anticipate for banking to which
I felt that criticism was a healthy these. To me, this is sound manage­ individual banks and the association
thing for all of us and the fact that ment, and I believe it is typical of must respond?
190 banks opposed the project led Iowa banks.
Mr. Dunlap: I would say here in
the board to reevaluate and decide
Mr. Milner: Iowa bank state­ Iowa the short-range problem of our
that where the association was ments actually are holding up in ex­ depressed farm economy is one that
located was not a critical matter cellent shape and earnings have will pass away. There’s no question
that warranted alienating a large been good. The two recent bank fail­ about it—we bankers will have toQ
number of banks. If the difference ures we’ve experienced do not reflect keep our farm customers alive and
had been over a major policy issue conditions of the economy in Iowa. hanging in there so when business
on legislation, for example, our They represent unique conditions turns around they can be there to
board has already demonstrated in not found in other banks.
take advantage of it. For example,
the past that it is willing to take a
stand on an issue that has less than
unanimous support.
“More and more we see legislators looking
In the area of state legislation, we
the local banker as a community leader
managed to have the sunset provi­
sion eliminated from the usury part who can give sound counsel, reflecting the
of the Financial Institutions Bill.
We helped get it into a form work­ community.”
able and acceptable to the financial
industry, recognizing that savings
and loans had problems that needed Q. If the banks are basically in hog farmers now have a high profit®
to be dealt with. The usury ceiling sound condition, how about the IBA per head so that marketing their
had been lifted in 1980 and would itself?
grain through $60 hogs they are now
have expired in 1983 and reverted to
Mr. Dunlap: Within the IBA we getting about $4.50 per bushel for
a floating rate of 2% over the have staffed and operated according their corn. On the open market that
10-year bond rate.
to the budget set by our board. The corn is only bringing in about $2.0C®
Mr. Milner: We had good partisan board this year felt a need for auster­ or so. The long-range outlook for

IBA Leaders Look at Their Industry

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis


Fifty Years Of Successful Banking
Davenport Bank Is Observing
Its Fiftieth Anniversary
July 5, 1932— July 5, 1982

Davenport Bank and Trust Company opened its doors for business on
July 5, 1932 in the depths of the Great Depression. Very few people living
today, especially the younger generation, can possibly comprehend the
tragedy and the grief which was prevalent on all sides.
The bank commenced business with a staff of forty-three people and an
annual payroll of $63,600. This, in itself, was indicative of the times. Today,
this same institution is staffed by four hundred people, and its latest
payroll on an annual basis was $5,293,000.
The bank’s initial capital was nine hundred thousand dollars ($900,000),
which has now grown to what might be termed a record figure of sixty
million dollars ($60,000,000).
In addition to the accumulated capital, the bank over the years, has paid
to stockholders, dividends in the amount of $25,500,000.
When the bank opened its doors, its total resources were approximately
eight million dollars ($8,000,000). Today, that figure is six hundred million
dollars ($600,000,000).
W ith an ever expanding clientele, it has been necessary to provide addi­
tional working space for the bank itself, and also additional rental office
space, and, importantly, a sizable parking ramp for the convenience of
customers and tenants. A s the expansion continued, the bank also added
several branches, and drive-up facilities in strategic and convenient loca­
tions to better serve its customers.
The bank has always been well known for its leadership in all worthwhile
community affairs, and it has been a generous contributor. During the past
fifty years, it has been our aim to provide the community with a sound
banking institution, and at all times to care for the needs of our customers
and the general territory which we serve. W e will continue to provide them
with the utmost in safety, modern conveniences and a knowledgeable staff,
keeping abreast of the ever changing world of banking.

Davenport Bank and Trust Company
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Iowa News

agriculture is still good. W e’re going
to be the main provider to the world.
It’s been stated that farm land will
double in value in 10 years. The
farmer today who is not highly lev­
eraged is still making money. The
ones with big debt are in trouble, the
same as in large or small corpora­
tions—just look at International
Harvester and Massey!
The long-range problem for banks
is maintaining the deposit base of
our own customers. This is of great
concern in the entire United States.
Customers toady are more sophis­
ticated and know they can get better
rates of return on their money than
banks can pay. We can attribute
some of this greater sophistication
to the media, for interest rates have
been of great news the past couple of
years. The saver realizes that for
years he was subsidizing the bor­
rower, but now he won’t do that. I ’m
not arguing there shouldn't be
change, but we in banks today in­
herited these legislated controls.
W e’d have no problem in meeting
the competition if they didn’t
publish the maximum and minimum
rates. Each person expects the peak
rate to be the minimum.

“Another point is that management’s
perceived goal should be realistic and
done in the light of realistic figures and

inessmen have found they were hav­ latory restrictions imposed on
ing to compete with New York cor­ banks?
porations on the same rates because
Mr. Dunlap: If we can compete!
our banks were having to buy funds evenly, I think we can outperform
in the same market. By the same all these others. Our customers still
token, our depositors knew daily like to be able to come in and talk
what those rates of return were and directly to the people owning and
have gone for the higher rates, running the bank.
which is natural and expected.
Mr. Milner: An important element
All of this has made a decided of this is the IB A and A B A alliance
change in bank management, and I in a recognition of the common con­
think this is a critical point for all stituency of the two and also a re-g
bank owners today. The kind of cognition of the fact that federal leg­
management needed in banking to­ islation and issues are a significant
day is one that has a sound, well- portion of the new impact on banks.
informed board of diretors, and is To be effective in the legislative
aggressive in doing long-range plan­ arena, whether in D.C. or De&i
ning and looking at long-range mar­ Moines, it takes local, grass roots
ket share. Proof of this is we have so support and state associations
many bankers taking part in all working with A B A in establishing
these programs of IBA and A B A to policies. The A B A Leadership Con­
accomplish this.
ference mechanism is in the best po-g
Mr. Milner: August 21 is my 20th sition to coordinate those grass
anniversary with the banking busi- roots policies. Iowa has eight
bankers on the Leadership Confer­
ence so we have input in national
policies and we have the opportunity^
“We’ve been inundated with calls as never
to work directly for Iowa bankers on
before showing a growing awareness of the
national policies.
need to be trained in marketing and selling.’ Q. What are you doing specifically
at this time to meet this other com­
Mr. Milner: Tom Dunlap has been
Q. Don’t you think the banks them­ ness and I can tell you we’ve been in­ involved with MABSCO since the
selves have helped the public undated at the Iowa Bankers A sso­ study stage in early 1981. The
achieve this degree of sophistication ciation office as never before with development of MABSCO as a re­
in their finances?
calls showing a growing awareness search and development arm for|
Mr. Milner: No question about it. of the need to be trained in market­ banks in a 13-state area has been
The past 25-30 years of economic ing and selling.
most helpful to those banks; for ex­
education by the A B A and state
Mr. Dunlap: Another point is that ample, the new Money Market Fund
associations has been a great factor. management’s perceived goal should and the new ag corporation—MASI.
PEP, for example—Personal Eco­ be realistic and done in the light of
Mr. Dunlap: I ’m impressed with!
nom ic Program sponsored by realistic figures and projections. I the close harmony these 13 states
A B A —is going very well today, and just hope our bankers don’t get have developed. They have gotten
other programs in past years have caught up in “ go-go banking.” I ’ve close to each other for the good of
done the same in high schools and never felt I had to apologize to any­ banking. State rivalry has disap­
colleges nationwide.
peared—they are working for the!
one for making a profit.
Mr. Dunlap: The past three years
Mr. Milner: One must be aware of good of the industry, and what we
of higher rates also have added what the market is when planning a need today is unity in the industry.
greatly to this increased awareness. market share. For example, Sears Q. What are some of the other sig­
News traveled fast! If inflation can and others must be taken into con­ nificant things about the work of
stay at a low, one-digit level, then I sideration—are they factors in one’s IBA?
think we can see rates staying at a area? W hat’s their market penetra­
Mr. Milner: From the staff stand­
point, it’s unbelievable the inordi­
lower level.
Since the onset of skyrocketing
nate amount of time our Presidents
rates, community banks have been Q. How do you compete with these are required to spend on behalf of
thrown into direct competition with non-financial institutions that seem the association. I estimate 200 days"
money center banks. Our local bus- to have free rein without the regu- have been devoted to IB A by Tom.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis






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If you’d like to know what other bankers know
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4015 Alexandra Drive
P.O. Box 2097
Waterloo, Iowa 50704


Iowa News

He tells me he has traveled 70,000
miles in this job but he still smiles
and says ‘it’s an interesting time to
be involved!’
Also, another important event for
us is that Bob Fenton (president of
Brenton Banks, Inc., Des Moines,
and a past president of IBA) is the
nominee for the office of PresidentElect at the A B A convention in A t­
lanta in October. His father was
president of the A B A 30 years ago!
In addition, another significant

event to Iowa banking was the re­
cent death of Frank Warner. Special
note will be taken of his passing at
the state convention. Frank Warner
has truly left a legacy to the Iowa
Bankers Association and to every
person involved in an Iowa bank.
Many things we are doing today can
be done because they’re based on the
foundation built earlier by him that
supports the new and needed pro­
grams of today. He is definitely a
permanent part of IB A history.

C.R. Bank Underwrites Job-A-Thon
Bank of Cedar Rapids under­
wrote program costs for the unique
Job-a-Thon that was aired by
KGAN-TV in Cedar Rapids and
gained nationwide attention. One of
the highlights of the three-hour pro­
ject was a telephone call from Presi­
dent Reagan commending the peo­
ple responsible for the undertaking.
The July 9 program provided an
opportunity for men and women
seeking work to appear on television
and discuss their qualifications. The
interviews were conducted live from
the KGAN studios in Cedar Rapids,
a shopping center in Waterloo and
on a delayed basis from a shopping
center in Dubuque.
Mayor Leo Rooff of Waterloo and
Mayor Donald Canney of Cedar
Rapids appeared on the program.
Sen. Charles Grassley also made an
appearance offering a job in his
Washington, D.C. office.
Bob Jackson, news director at
KGAN-TV and originator of the pro­
ject, reported that 319 jobs were of­
fered on the air. More than 700 peo­
ple walked in front of the cameras to
talk about their skills.

“ Job matching is still going on at
Job Services of Iowa,” Mr. Jackson
said. “ Final figures are not available
on how many people were placed but
we expect it to be a substantial
Volunteers from Merchants Na­
tional Bank and from Job Services
of Iowa manned a bank of tele­
phones to record information both
from persons seeking jobs and from
employers with job openings.
As part of its contribution, the
bank purchased time to run public
service announcements about the
availabiltiy of funds for college edu­
cation under the Iowa Guaranteed
Loan Program.
Both UPI and AP carried stories
about the Job-a-Thon on their na­
tional wires, newspapers across the
country carried the story, and both
NBC-TV and CBS-TV aired stories.
In a telephone conversation with
master of ceremonies Barry Norris,
President Reagan said, “ This is
such a great example of what some­
one can do to help and I wanted to
wish you all success.”
President Reagan said on the tele­
cast that his father during the De­

pression carried out a similar one^
man project in Reagan’s hometown.
“ He (Reagan’s father) went out
and rounded up all the possible jobs,
temporary or otherwise, that were
available,” President Reagan recalled?
“ He then booked everyone who had
to accept relief alphabetically and
when their names came up then he
could send them for some work and_
they had work in addition to tlk
other help that they were getting.”

Bankers From 3 States Attend
Accrual Accounting Seminar
The correspondent banking divi­
sion of the Security National Bank,
Sioux City, in conjunction with the
Bank Administration Institute, re­
cently conducted an indepth, twoday seminar on Accrual Accounting
and Financial Reporting. The sem­
inar was presented at the Hilton
Inn, July 20 and 21.

CPA Joseph Schlemme explains the regula­
tions mandate on the conversion to accrual

The FDIC and the Office of thd
Comptroller of the Currency man­
dated that all banks over $10 million
must adopt accrual accounting for
book and report purposes by Janu­
ary 1, 1983. This seminar was d«
signed to help banks implement ac­
crual accounting and was presented
by: Karl Walewski, program man­
ager, BAI; Bill Kristofek, vice
president-controller, Commercial
National, Chicago, and Joseph
Schlemme, senior accountant, CPA,
Deloitte Haskins and Sells, Des
Following the evening reception*
Zane Blackburn, CPA, Director of
Bank Accounting for the Comptrol­
ler of the Currency in Washington,
D.C., explained why the accrual ac­
counting proposal was submittec
and approved, and how it will facil­
itate further deregulation.
The seminar was attended by
bankers from Iowa, South Dakotf
Barry Norris interviewing job seeking applicant on KGAN JOB-A-THON, sponsored by Mer­ and Nebraska, as well as local ac­
chants Natl. Bank, Cedar Rapids.

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis




Visit our booth at the Iowa Bankers Convention Sept.
19-21 and find out hotv your bank can take advantage of
our services.

Iowa Bankers Insurance & Services, Inc.
400 Financial Services Building
508 Tenth Street
Des Moines, Iowa 50308
(515) 286-4300
Call our toll FREE W A T S number 1-800-532-1423

IB IS —Owned by ALL Iowa Banks.
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Eugene G. Precht, chairman and
chief executive officer of the IowaDes Moines National Bank recently
announced the following promtions
following the July meeting of the
bank’s board of directors.
James E. Woodsmall, controller,
has been named second vice presi­
dent, card services. Prior to joining
the Iowa-Des Moines, Mr. Woodsmall was the controller for Mid
American Body and Equipment



Nathan L. Hanson, credit man­
ager, has been named card services
officer. Mr. Hanson joined in 1977
and has held various positions in the
collections and credit department of
the card services division.
Norma J. Keeney has been named
human resources officer. Ms. Keen­
ey joined the human resources de­
partment of the bank in 1969, and


Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

has held various positions including
human resources administrator and
office and payroll manager.
Patricia F. Rourke has been
named international operations of­
ficer. Ms. Rourke joined the IowaDes Moines in 1975 and has held
various positions in the human re­
sources and international depart­
ment of the bank.
John W. Westering, Omaha sales
office manager, has been named card
services officer. He joined the bank
in 1981 as account manager in the
Omaha Sales Office of the card ser­
vices division.
* * *
J. Locke Macomber, president of
Valley National Bank, announced
that Daniel W.
Hansen has been
named vice presiden t/loan ad­
m inistration.
Mr. Hansen had
previously been
an officer with
United Central
Bancshares, Inc.
He gra du a ted
from Iowa Wes­
leyan College with a bachelor of arts
degree and received a law degree
from Drake University.
* * *
W. Michael Heilbronn has been
named director of marketing for
Brenton Banks, Inc., an 18-bank
holding company.
Mr. Heilbronn was formerly asso­
ciated with Michigan National
Bank, Lansing, Michigan, as direc­
tor of marketing.
* * *

Larry L. Wenzl, president of
Hawkeye-Capital Bank & Trust, re­
cently announced R. Douglas Fisher
has been hired as
executive vice MBI
president. Mr. “
Fisher, 31, re­
places John Jor­
genson who was
named president
of 1st National
Bank in Sibley, a
Hawkeye Banmm m
corporation af­
Mr. Fisher comes to HawkeyeCapital after six and one-half years
at Jasper County Savings Bank, a
Hawkeye affiliate in Newton, where
he was vice president and head of
the commercial loan department. He
graduated last year from the Stonier
School of Banking at Rutgers Col­
lege and has also graduated from the
Commercial Lending School held a|
the University of Oklahoma in Nor­
Mr. Fisher attended Central Col­
lege in Pella and graduated with a
degree in Business Management ir<|
* * *
Marcene Oberholtz has been ap­
pointed auditor of United Central
Inc., succeeding
Douglas Gulling
who has joined
the United Cen­
tral B a n k &
Trust Company
of Mason City as
vice president.
Mr s . O b e r ­
United Central
Bancshares in September, 1980, as
audit manager. Prior to joining
UCB, she was an internal auditor foil
Banco Incorporated.
She graduated from Iowa State
University in 1976 with a BS in in­
dustrial administration with an ac­
counting and marketing emphasi^
and passed the Certified Internal
Auditor examination in 1980.
* * *
Lyle W. Hulke, George Montgom­
ery and James E. Fletcher have
recently joined West Des Moines
State Bank as vice presidents, accor­
ding to David L. Miller, chairmam
and president.
Mr. Hulke, who formerly was a



Robert G. Millen
President and Chief
Executive Officer

Gene E. Loverink
Senior Vice President

Eddie A. Wolf
Senior Vice President
Correspondent Services

William B. Greaves
Vice President
Correspondent Services

Cyrus D. Kirk
Vice President
Correspondent Services

Jack R. Schreiber
Vice President and
Senior TVust Officer

Ronald W. Nienow
Vice President

Max W. Evans
Vice President
Farm Management

September 19-21 brings with it the
annual big event. And we’ll be there.
Our commitment is to provide
Iowa’s banks and bankers the best
correspondent services possible year
round. And we have the people who can

Ivan L. Johnson
Senior Vice President
Iowa Commercial Services

Vemon L. Hoskinson
Vice President


Harry A. Wilmer
Senior Vice President and
Senior Lending Officer

Michael Austin
Vice President
Iowa Commercial Services

stand by that commitment. The United
Central Bankers pictured would like to talk
with you about how UCB can help you with
all your banking needs. So stop by and see
us when you are in town or call us any
time at 1-800-362-1615.



Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Iowa News

vice president in the commercial
loans department at Bankers Trust
Company, comes to West Bank from
First Westside Bank, Omaha, Neb.
Mr. Fletcher previously was a
vice president at Brenton National
Mr. Montgomery formerly was a
vice president and member of the
board of First Federal State Bank.
* * *
Robert G. Millen of United Cen­
tral Bank of Des Moines, N.A., has
been elected to membership in the
Young Presidents’ Organization,
Inc., a worldwide educational asso­
ciation of more than 3,900 success­
ful young chief executives who have
become presidents of sizable com­
panies before the age of 40.

Hawkeye-Capital To Expand

CONSTRUCTION will soon begin on the
2426 Hubbell Ave. office of HawkeyeCapital Bk. & Tr. The 26 x 40 addition will
allow needed space for banking operations
due to growth, plus room for Inman Realty’s
East Side office. Robert Durbin, a.v.p.,
serves as branch mgr., and Lois Warren,
ass’t. mgr., Inman Construction is in charge
of the addition, scheduled for completion
October 10.

Davenport Bank and Trust Observes
50th Year with $600 Million in Assets
HEN Davenport Bank and
Trust Company reached its
50th anniversary recently, it was
more than the ordinary observance
of passing the half-century mark.
For thousands of Davenport resi­
dents, it was a time to pause and
note, on that special day of July 5,
1982, their pride in the accomplish­
ment of Iowa’s third largest bank.
That accomplishment, growing in
50 years to become a half-billion
dollar bank, didn’t come easily. The
story behind it is worth telling, es­
pecially in light of severe problems
surfacing in some banks today.
American Commercial and Sav­
ings Bank, founded in 1869, became
a victim of the Great Depression
when it had to close its doors on
September 29, 1931. The first edi­
tion of the Iowa Bank Directory
that year, published by the N o r th ­
w e st e r n B a n k e r , showed Ameri­
can Commercial had deposits of
$ 3 1 , 2 5 4 , 0 1 5 and c a p i t a l o f
$1,500,000, making it the second
largest bank in deposit size listed in
that book.
Frantic efforts to save the bank
were led by E.P. Adler, publisher of
the Davenport Daily Times and a
director of the Union Bank in Dav­
enport (which closed one day later).
Those efforts failed, then Mr. Adler
became chairman of an executive
committee which raised funds to
tide Davenport families over during
that first real Depression winter, ac­
cording to the recounting of that


Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

event in the Quad-City Times last
Mr. Adler formulated a reorgan­
ization plan that reportedly “ later
became a model for other bank reor­
ganizations in the Middle W est.”
Under his leadership, $1.5 million in
new capital stock was raised and the
new bank, Davenport Bank and
Trust Company, was born just nine
months and one week after the
demise of its predecessor. Mr. Adler
served as president from opening
day on July 5, 1932, until relin­
quishing that post nine years later.
His successor was V.O. Figge, the
third generation
on an Iowa bank­
ing family in Ossian. Mr. Figge
attended Notre
Dame Universi­
ty, then joined
his father at Ossian State Bank
in 1920. In May,
1924, he joined
the Iowa depart­
ment of banking as an examiner,
later working on the last American
Commercial examination in Daven­
port. He teamed with Mr. Adler on
the reorganization plan and was ex­
ecutive vice president at the age of
32 of Davenport Bank and Trust
when it opened in 1932. Mr. Figge
became president in March, 1941,
holding that position until becoming
chairman and chief executive officer
in February, 1980, the position he

continues to hold as an active oM
Mr. Figge was succeeded by his
son, John K., as president. His se­
cond son, James K., serves as chair­
man of the executive committee,"
while his third son, Thomas K., is ex­
ecutive vice president.
During Mr. Figge’s 50 years with
Davenport Bank and Trust Com­
pany he has led the bank back to the*
preeminent position of Iowa’s third
largest bank. Never forgetting the
lessons he learned from the exper­
iences of other banks in the 1920s
and through the Depression, Mr.
Figge has continued through the
years to build Davenport Bank and
Trust Company capital as the bank
grew. A t last year-end, whei
deposits stood at $411,305,000, the"
bank’s capital, surplus and undivid­
ed profits and reserves totaled
$58,820,000, for a whoppiing 14.3%
capital/deposit ratio!
This far exceeds the ratio of about"
9.2% for all Iowa state-chartered
banks, and far exceeds the recently
announced capital/deposit ratios of
about 6% as prescribed by federal
regulatory authorities for national
banks. By mid-year, 1982, assets of
Davenport Bank and Trust Com­
pany stood at $609,261,700, just
about $600 million more than wher
the newly-chartered bank opened
just 50 years ago!

Colorado Banker Elected
To Meredith Corp. Board
Robert E. Lee, president and chief
executive officer of The First Na­
tional Bank of Denver, was electee
to the board of
directors of Mer­
edith C o r p o r ­
D es
Moines, la.
Mer edi th is
primarily en­
gaged in pub­
lishing, commer­
cial p r i n t i n g ,
direct marketing
and real estate marketing and fran­
Mr. Lee, 47, has been presiden
and chief executive officer of the
Denver bank since early last year.
During the previous two years, he
was president and chief executive of­
ficer of the Iowa-Des Moines Na^
tional Bank.


A Growing Iowa
Banking Company
Adds A
$22 Million Bank
As of May 26, 1982, The Avoca
State Bank became a part of Banks
of Iowa, Inc., making this large and
strong banking organization in Iowa
even more substantial. As of June
30, 1982, $1.5 billion in assets
(including the $22 m illion added as
of May 26, 1982) stands behind
each of the eleven Banks of Iowa,
Inc. banks. That’s financial

1:1 B a n k s of lowae
520 Walnut, P.O. Box 10317
Des Moines, Iowa 50306

Member Banks:
Avoca — The Avoca State Bank
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.
Ottum wa — Union Bank and Trust Company
Sioux City — First National Bank in Sioux City

Non-Banking Subsidiary:
Banks of Iowa Computer Services, Inc. — Cedar Rapids,
Des Moines, Sioux City and Waterloo
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1982


Iowa News

New Facility For Independence Bank

specifically for bankers to help them"
master the consultative skills which
enable them to recognize and max­
imize sales opportunities.

New President at Fonda

A UNIQUE new facility is under construction for Security State Bank, Independence, with a
completion date set for spring, 1983. The project involves razing three buildings west of the
bank, as well as the existing bank, and constructing an entirely new building, expanding
the bank’s area by almost 60%. With energy efficiency the keynote for the design, the new
building will feature a daylit lobby, and landscaping and reuse of granite salvaged from the
existing structure on the site. Also included will be three drive-up lanes, front and rear ac­
cess, additional tellers, a safe deposit vault with increased capacity, an expanded book­
keeping area and improved officer accommodations. Architects for the project are Flinn,
Saito, Anderson, Waterloo.

IBA to Present Seminar
On Consultive Banking
The Iowa Bankers Association
will conduct a two and one-half days
seminar on “ Consultive Banking”
October 5-7 at the Des Moines Mar­
riott Hotel. The entire seminar will
be presented by Linda Richardson,
director of Resources for Sales, a
member of the Hay & Associates
Group, Pittsburgh, Pa.
Ms. Richard­
son d e s crib e s
banking as a
sales e n v iron ­
ment which pro­
duces positive
benefits for the
cu s to m e r and
the bank, based
on knowing and
u n d e rsta n d in g
the customer’s needs, the competi­
tion and the bank’s products. “ To­
day,” she states, “ the issue of sales
in banking has become a matter of
To assist Iowa banks in being
among the survivors, the two and
one-half days of sessions will feature
25 sales tips, ranging from such
basic issues as presenting materials
to the customer to more complex
suggestions on how to plan and con­
duct a call on a customer with

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

another member of the bank.
The seminar itself will place spe­
cial emphasis on the sales interview,
including the opening, the linkage of
product features to customer bene­
fits, the use of probing questions,
how to field objections successfully
(including price, competition and
product objections), identifying cus­
tomer needs, the use of an incre­
mental closing, and the action step.
Techniques for teaching these stra­
tegies will involve modeling, prac­
ticing and critiquing of sales inter­
Ms. Richardson’s credentials in­
clude her experience in developing
product knowledge tools and in
training bankers for some of the
leading domestic and international
banks, ranging in size from $50 mil­
lion to $55 billion in assets. For each
organization with which she coun­
sels, she develops and implements
customized sales training, product
knowledge and negotiating pro­
Her previous experience includes
positions as president of the Rich­
ardson Group, a company special­
izing in developing sales and pro­
duct knowledge systems, and as
manager of research and develop­
ment of the Sales and Product
Knowledge Center. She is author of
Bankers in the Selling Role, a com­
pact guide that is the first designed

Directors of First National Bank,
Fonda, elected Tom Awtry presi­
dent at their meeting in late July.
Mr. Awtry previously had been
executive vice
president and di­
rector, the posi­
tions he has held
since joining the
bank M ay 1,
1979. A grad­
uate of Simpson
College with a
B A degree in
1968, Mr. Awtry joined the Iowa
department of banking as an exam­
iner following graduation. He was a
senior bank examiner stationed irr
Mason City before joining the Fon­
da bank in 1979. In addition to at­
tending various regulatory schools,
he is a graduate of the Agricultural
Credit School at Ames.
Mr. Awtry replaces Harry A. Her­
mann, who resigned recently as
president of First National Bank to
become vice president and manage^
of a new Des Moines office for Bancm
Financial Corp., a subsidiary of
Northwest Bancorporation, Minne­
An agreement to purchase con^
trolling interest in First National1
Bank by a group of Fonda residents
and Walter Clark, Omaha, is await­
ing regulatory approval.

Appointed in Mason City
Harold G. Haver, president and
chief executive officer of United Cen­
tral Bank & Trust Company, Mason.
City, has announced the recent ap­
pointment of Jim Vigars as an as­
sistant vice pres­
ident and compli
ance officer. His
duties will in­
clude overseeing
the bank’s com­
pliance with gov­
ernment banking
regulations and
handling com ­
mercial loans.
M r. V i g a r s
was previously employed as a banl^|
examiner for 10 years and at Iowa
Falls State Bank for a year.


' !»i"

Iowa News


aterloo Holding Company
Announces Merger Agreement
R.K. Sverdahl, president of
Peoples Bankshares, Ltd., of Wateroo, has announced agreement to
merge with the Kellog-Sully Bank &
Trust with locations in Kellog and
The holding company, Peoples
ankshares, Ltd., will own 100% of
the common stock of the KellogSully bank. The planned merger is
subject to approval from the Board
of Governors of the Federal Reserve
ystem and other regulatory author­
Mr. Sverdahl stated that no
changes in officers, staff or board
members at the bank are planned.
he new acquisition will be the
fourth bank held by Peoples Bankshares, Ltd., which currently owns
the Parkersburg State Bank and
Peoples Bank and Trust Company of
Waterloo, and has an application
pending with the Federal Reserve to
acquire the Melbourne Savings
Bank in Melbourne.
Last month, Peoples Bank and
rust in Waterloo announced an
agreement that would result in the
acquisition of the La Porte City
State Bank by Peoples Bank and
Upon approval and completion of
these transactions, Peoples Bankshares, Ltd. will have eleven bank­
ing locations serving Iowa and
assets in excess of $250 million.

With today’s rapid changes in
banking technology, data
processing is becoming an even
more important management tool.
That’s where I come in. • •
Ken Roeder
Correspondent Bank Officer
Security National Bank

When Ken Roeder talks about how the advances in
the field of data processing can affect your operations,
he’s speaking from experience— 15 years’ experience as
a data processing specialist.
Ken knows data processing. More important, he
knows how to put it to work for the individual needs of
his correspondents. As a Security correspondent bank
officer, Ken is also equipped to provide you with the
best in ag lending and overline services.
Today, your continued profitability is as important
to Security National as it is to you. Through experts like
Ken Roeder, w e’re determined to help you protect it.

Dunlap Staff Changes Told
Jay T. Randall was recently
elected vice president and William
W adsworth
was prom oted
from cashier to
vice president
and cashier of
‘unlap Savings
Bank, according
to Richard Ran­
dall, president.
Mr. Randall
urrently is an
officer at the
Iowa Trust and Savings Bank in

"Osceola Election Told
Marley Wubbena was recently
named assistant cashier at Osecola
State Bank. He is a 1982 graduate of
entrai College in Pella with a BA
degree in business management.
Federal Reserve Bank of St. Louis

Sioux City, Iowa 51101 (712) 277-6554

© 1982 Security National Bank

Member FDIC

Northwestern Banker, September, 1982


Iowa News

Two Promoted in Sioux City
R.E. Hagen, president of The
Security National Bank, Sioux City,
has announced the promotion of
Robert A. Peterson to senior vice
president in charge of asset manage­
ment. This is a newly created posi­
tion in which Mr. Peterson will be
responsible for the commercial
banking, correspondent banking
and investment divisions. This new
position was created in order to im­
prove coordination between these
three principal asset divisions.

Mr. Wogstad has been with the
bank’s investment department since
1978. In 1981 he was elected vice
president and named chairman of
the asset/liability committee.
The board of directors has de­
clared a cash dividend of 171A cents
per share payable on September 17,
1982, as well as a 10 percent stock
dividend payable on August 20,
Mr. Hagen announced this will be
the 12th stock dividend paid by the
corporation since its formation in

President Retires, Fourth
Generation Joins Bank




In other changes, William O.
Wogstad was promoted to head of
the investment division. Steven
Hatz will continue to be responsible
for the correspondent bank division
and Robert Krumwiede will contin­
ue to head the commercial banking
division, along with assuming addi­
tional responsibilities as chairman
of the loan and discount committee.
Mr. Peterson joined the bank in
1975 as a trust investment officer.
He was elected senior investment of­
ficer in 1976 and was later named
vice president in investments in

R O B E R T J. K I R K E , Pres.

T.M. Kerndt retired August 1 as
president of Kerndt Brothers Sav­
ings Bank, Lansing. He is the third
generation Kerndt to head the bank.
He joined the bank force in 1948 and
became president in 1964, succeed­
ing his father, Moritz. He will re­
main associated with the bank as
vice chairman of the board.
In other action, A1 Lynes, exec­
utive vice president, has been named
president, and Harold Kerndt, ex­
ecutive vice president. Mr. Lynes
has been with the bank since 1977,
having served in banking since
1948. Harold Kerndt joined the staff
in 1971.
Gus Kerndt, son of the retiring
Tom Kerndt, was named vice presi­
dent and represents the fourth gen­
eration Kerndt in a financial insti­
tution that has served the communi­
ty for well over 100 years. He is a

R O B E R T P. D O R W E IL E R , Vice President

$haw, jyjcDermott & (^o.
Underwriters, Distributors, <&Consultants
General Market Municipal Bonds
and Industrial Revenue Bonds
518 Stephens Bldg.


Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Phone 515— 243-6119

50 30 9

1977 graduate of the University
Iowa law school and is a member of
the Iowa Bar Association. He most
recently received a masters degree
in business administration from the
University of Wisconsin at Madisoi
with an emphasis in banking and

Three Named in Cedar Rapid!
Merchants National Bank, Cedar!
Rapids, has announced three promo­
tions following a regular meeting of
the board. Robert H. O ’Meara was I
elected ex ecu ­
tive vice presi­
dent of the bank,
with both Den­
nis R. Haines
and J o h n R.
Taylor promoted
to vice presi­
Mr. O ’Meara
joined the bank
in 1961 and has



been a senior vice president in
charge of the loaning function. Mij»
Haines, formerly an assistant vice
president, handles the bank’s invest­
ment portfolio, and Mr. Taylor, also
a former assistant vice president,
operates the bank’s check p rocès^
ing center.

Joins IAC Group to Call
On Western Iowa Banks


Jerry Caligiuri, 44, has joined the
IAC Group, a midwestern insurance
group headquartered in Kansas City
as an Iowa group representative to
serve banks in the western part <:Pl
the state. A native of Des Moines,
Mr. Caligiuri joins Craig Ross, who
has represented IAC with eastern
Iowa banks for a number of years.
Prior to joining IAC Group, M ®
Caligiuri served the past 10 years as
a marketing representative for Blue
Cross/Blue Shield.
IAB Group represents National
Fidelity Life in the sale of credit lii®
insurance to banks.

Iowa News

BA Names Ehrecke as V.P.
Wes Ehrecke was recently pro­
moted to staff vice president at the
Iowa Bankers Association. Mr.
Ehrecke is direcor of govern­
ment relations
and marketing
at the IBA with
a ddi tional reponsibilities in
He works with
the IB A market­
in g com m ittee
n advertising
and public relations efforts for the
banking industry. He also coordi­
nates all of the IBA ag committee
ctivities including an exhibit at
owa’s Farm Progress Show and the
annual A g Credit Conference.
Mr. Ehrecke joined the IBA in
1978 as a legislative representative
nd continues to serve as lobbyist.

tory authorities.
The merger will result in the La
Porte City State Bank becoming an
office of Peoples Bank. As of June
30, 1982, Peoples Bank had assets of
$159,929,974, and the La Porte City
Bank had assets of $16,070,026, giv­
ing combined assets of $176,000,000.
R.K. Sverdahl, president of Peo­
ples Bank and T.P. McDermott,
president of the La Porte City Bank,
stated that no personnel changes are
Peoples Bank is currently a bank
subsidiary of Peoples Bankshares,


Ltd., which currently owns the Par­
kersburg State Bank and has appli­
cations pending with the Federal Re­
serve to acquire two other banks in
central Iowa. Mr. Sverdahl in­
dicated that upon completion of the
acquistion and mergers, Peoples
Bankshares, Ltd., will have eleven
banking locations in Iowa.
Mr. McDermott stated that the
merger would allow the La Porte Ci­
ty bank to offer additional services
to the community and also will pro­
vide a larger loan capacity to assist
local business and farmers.


EMC Insurance Group
hows First-Half Gains
Net income after taxes for EMC
Insurance Group Inc., Des Moines,
for the first half of 1982 amounted
to $2,185,140, com pared with
1,832,855 for the first half of 1981.
Income per share, fully diluted,
was forty-five cents ($.45) through
June 30, 1982, compared with fortytwo cents ($.42) for the like period of
Premiums earned by EMC Insur­
ance Group Inc. in the first half of
1982 totaled $21,285,324, compared
with $12,645,571 in the first half of
Net investment income for the
alf year amounted to $5,284,329 in
1982, compared with $3,108,158 a
ear ago.
Assets of EMC Insurance Group
Inc. totaled $126,798,16 on June 30,
1982, an increase of $30,425,528
ince December 31, 1981, when the
otal was $96,372,988.

aterloo and La Porte
anks Merger Planned
Peoples Bank and Trust of
aterloo and the La Porte City
tate Bank of La Porte City have
nnounced plans to merge, subject
the approval of the State Départ­
ent of Banking and other regula
Federal Reserve Bank of St. Louis

Tom Pohlman
Northwestern’s Correspondent Banker
Is On Your Side!
712/ 252-4141


Of Sioux City

An Affiliate of Northwest Bancorporation

Member FDIC

Northwestern Banker, September, 1982


Iowa News

Elected to Board in Farley i

Proposed new facility for First Trust and Savings Bank, Fenton Office.

New Facility for Fenton Office
AM ES O ’Neil, president of the
First Trust and Savings Bank in
Armstrong, has announced that a
new facility will be built for the Fen­
ton office, 15 miles south. It will re­
place the former office which has
been outgrown by increasing busi­
Scheduled for completion in No­
vember, the new Colonial structure
will have two private offices, a new
accounts area, two teller windows,
convenient work areas and storage
space. A coffered ceiling in the lobby
will create an unusual point of in­
terest and will follow the teller
counter diagonal location. Addi­
tional safety deposit boxes are also
Office manager is Harris Mortenson, who recently joined First Trust
after a number of years of experi­
ence in Iowa and Minnesota banks.
The architectural and interior
design work was prepared by Kirk
Gross Company of Waterloo and
construction will be provided by Bill
Bruhn, owner of Bruhn Builders, a
local customer of the bank.


C.R. Banker Joins SCI
Dale C. Froehlich has joined SCI
Financial Group as institutional in­
vestment officer for its Securities
Corporation of Iowa subsidiary. He
will serve com­
mercial banks in
m unicipal and
fixed income in­
vestment activ­
Mr. Froehlich
most recently
served as vice
president of the
banking division D.C. FROEHLICH

Northwestern Banker, September, 1982
Federal Reserve Bank of St. Louis

Doctor Earl J. Goerdt, DVM, was
recently elected to the board of
directors of Farley State Bank. Mr.
Goerdt has been a veterinarian im
the Farley community since 1973. *
It was also announced that Rob­
ert J. Wilwert has joined Farley
State Bank as an ag loan officer
trainee. Mr. Wilwert was recently
graduated from Iowa State Univer­
sity with a major in ag-business and
a minor in farm management.

Appointed in Manchester

of Merchants National Bank, Cedar
Rapids. Prior to Merchants, he served
as vice president of Bennett State
Bank in Bennett and as assistant
vice president for Farmers Savings
Bank in Princeton.

Wyoming Employee Retires
Raymond L. Nordurft, assistant
cashier at Citizens State Bank,
Wyoming, for the past 20 years, re­
cently retired.
A recognition dinner was held in
his honor by the directors, officers
and staff.


Eric C. Anderson has been ap­
pointed assistant cashier of the
Farmers & Mer­
chants Savings
Bank in Man­
Mr. Anderson
joined the bank
in 1981 after
graduating from
Iowa State Uni­
versity with a
BS degree in
business. He will head the Flex-GQ
Pay Billing System along with other
lending duties.

Acorn P rin tin g ......................................................................22
Advanced Planning Systems, Inc........................................47
American Bankers A s s o c ia tio n .................................. 23, 35
American Express, Travelers C he q u es............................ 3
American National Bank & Trust, St. P a u l....................... 56
American Trust & Savings Bank, D ubuque....................... 97
Associates Commercial Corp.............................................. 17

Harris Bank, C h ic a g o ........................................................103
Hawkeye Bancorporation, Des M o in e s ........................ 110
Heller, Walter E. Co.......................................................... 18-19
IAC G ro u p .......................................................
Iowa Bankers Insurance & Services, Inc. . .
lowa-Des Moines National B a n k ................
Karma Cahill Fine Art & F ra m in g ................
Kooker, E.F. & A s s o c ia te s ..........................

. .98

LaSalle National Bank, C h ic a g o ................
Life Investors, Cedar R a p id s ......................


Manufacturers Hanover Trust Co...............
Merchants National Bank, Cedar Rapids . .
Midland National Bank, M in n e a p o lis........


Carroll McEntee & McGinley, Inc........................................43
Chiles, Heider & Co., Inc.................................................... 100
Colorado National Bank, D enver....................................... 83
Commerce Bank of Kansas C it y ....................................... 37
Continental Bank, C h ic a g o ................................................13

National Bank of Commerce, L in c o ln ........
National Boulevard Bank, C h ic a g o ............
Northwestern Bell Telephone Co.................
Northwestern National Bank, Minneapolis
Northwestern National Bank, Sioux City . .

. .135
. . .48
. . .73
. . .69
. .133

Data Management P ro d u c ts ............................................. 21
Davenport Bank & Trust Co................................................ 121
Des Moines Stamp Mfg. Co................................................ 104
Downey Co., C.L.................................................................... 53
Drovers Bank of C h ic a g o ................................................... 99

Office Concepts, W a te rlo o ..........................
Omaha National B a n k ................................


Banco Financial/Lease N o rth w e s t................................... 67
Bank of A m e ric a ................................................................. 5
Bank of North D a k o ta ..........................................................77
Bankers Trust Co., Des M o in e s ......................................... 94
Banks of Iowa, Inc.....................................................
Banks of Iowa Computer Services, Inc......................106-107
Beh, Carleton D. Co., Des M o in e s ................................... 118

Employers Mutual Co., Des M o in e s ................................. 55
F & M Marquette National Bk., M in n e a p o lis............... 64-65
FBS Business Credit, M in n e a p o lis ................................... 61
First National Bank, C h ic a g o ............................................. 30
First National Bank, L in c o ln ............................................. 93
First National Bank, M in n e a p o lis ....................................105
First National Bank, O m a h a ............................................. 89
First National Bank, St. P a u l......................................... 58-59
First National Bank, Sioux C it y ........................................101
First National Bank, St. J o s e p h ......................................... 92



Packers National Bank, O m a h a ..................
Peoples Bank & Trust, Cedar R a p id s ........

. . .90

St. Louis Terminal W arehouse....................
Schweser, Robert E. Co.................................
Security National Bank, Sioux C it y ............
Shaw, McDermott & Co., Des M o in e s ........

. . .51
. .117

Toy National Bank, Sioux C it y ....................
Travelers Express Co.....................................
United Central Bank, N.A., Des Moines . . .
United Missouri Bank of Kansas C it y ........
United States National Bank, O m a h a ........

Gross, Kirk Co., W a te rlo o ..................................................123

Valley National Bank, Des Moines ..
Van Wagenen, G.D. Co., Minneapolis

HBE Bank F a c ilitie s ........................................................24-25

Westcap Corporation



1J 7


service choice
should be
based on

Computer Services Corporation
A wholly-owned subsidiary of the
National Bank of Commerce Trust & Savings Association
NBC Center, 13th & O Streets, P.O. Box 82408,
Lincoln, Nebraska 68501/Telephone (402) 472-4440
Federal Reserve Bank of St. Louis

Computer technology has produced
a telecommunications network thats
becoming a vital part of bank data
processing. The EFTS environment
demands a nationwide network of on­
line terminals offering “state of the art”
convenience to your customers.
Just keeping up will be a challenge
for every bank . . . a challenge that
will be hard to meet with any inhouse system and software package
you install today.
Flexibility will be the key to your
competitive edge. And that's what
NBC/CSC guarantees you . . .
flexibility that will keep your data
processing capabilities up to speed, up
to the minute.
O ur history dates back to 1964.
We're among the Midwest's computer
leaders in size and experience.
We've built the area's premier data
processing service, offering every
capability and the full range of
products your bank needs today.
And tomorrow . . . NBC/CSC will
continue to offer you every vital
service under the sun.

For more information about NBC
Computer Services Corporation and
our complete product manual, call Rod
Morten or Mike Sorensen at 402/4724440.
Demand deposit accounting
Savings accounting
Certificate of deposit accounting
Commercial loan accounting
Personal loan accounting
Individual retirement accounting
General ledger accounting
On-line and central information systems
Asset participation system
Mortgage loan accounting
Payroll accounting system
Bond accounting
On-line multipocket proof system
Administrative CRT/Investment Hotline

As bankers,we’ve
neverhad so much
to talk about.
Iowa Bankers Convention
September 19, 20,21

The winds of
change are
blowing — in the
economy, in
agriculture, and
m ost certainly in banking.

our business

All o f us from
the lowa-Des
Moines will be
there. We look forward to seeing you
and hope you’ll pay a visit to our bank
while you're in Des Moines.

Marriott Hotel of Des Moines

We’ve never had more pressing
reasons to get together, discuss these
changes, and listen to some expert
opinions on topics vitally im portant to

We promise you a warm welcome!



Member FDIC


An Affiliate of Northwest Bancorporation

7th & Walnut, Des Moines, Iowa 50304

Bernie Kersey
Federal Reserve Bank of St. Louis

Bob Buenneke


Dennis Nahnsen

Garry Frandson

(515) 245 -3131

Mark Conway

Tom Quinlin

Dorothea Wolfe