Full text of The Northwestern Banker : September 1983, 90th Year, No. 1440

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Federal Reserve Bank of St. Louis

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ual correspondent bank's objectives.
Then, we provide our expertise and a
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and that special bond of trust that
comes from working and succeeding
together."
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.
Trudo.

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Federal Reserve Bank of St. Louis

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HONOLULU .
BECKONS

STERN
SEPTEMBER 1983 • 90th Year • No. 1440
MEMBER OF AUDIT BUREAU OF CIRCULATION
MEMBER BANK MARKETING ASSOCIATION
OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES

COVER

By MARK S. SEREPCA
American Bankers Association ®
Washington, D.C.
ITH its intricate blend of
Polynesian charm and cos
mopolitan excitement, Honolulu,^
site of the 1983 ABA convention, is
unlike any other city in the United
States.
Where else can one ride an outrig
ger canoe in the afternoon and dance 0
at a glass-floored disco at night?

C. Robert Brenton, president-elect of the American Bankers Association, who is
scheduled to advance to the ABA presidency at the 109th annual convention in
Honolulu October 11, is pictured at his home in Des Moines, la., with his wife,
Babette. Mr. Brenton is president of Brenton Banks, Inc. An exclusive interview
with this midwest banker begins on page 34.

FEATURES

Livestock and ag outlook

Annual survey among veteran bankers looks at current problems

Banker and farmer

An exclusive interview with ABA President-Elect Bob Brenton

ABA convention program

109th annual meeting starts October 8 in Honolulu

HERO of the Hawaiians, Kamehameha I,
united the Islands into one kingdom and £
founded the mid-Pacific Kamehameha dy
nasty. This much-photographed bronze
statue of the great ruler wearing the cloak,
malo and helmet of early Hawaii stands be
fore the Judiciary Building in Honolulu’s
civic center. On June 11, Kamehameha Day, 0
Hawaiian societies drape thousands of
flowers about the statue in the form of leis
many feet long. (Hawaii Visitors Bureau
Photo)

Bond Swaps!

Three industry executives discuss technical plans

What’s new

Manufacturers reveal latest in bank products

CONVENTIONS
77
80
98
110

Program for annual meeting September 18-20
You Will See Them at 97th Iowa Convention
Group Chairmen Report Area Conditions
Des Moines News

DEPARTMENTS
8
10
14
49
51

Calendar
Bank Promotions
Corporate News
Illinois
Minnesota

52
56
60
62
63

Twin Cities
Montana
North Dakota
South Dakota
Colorado

67
69
70
74
114

Wyoming
Nebraska
Omaha
Lincoln
Index of Advertisers

NORTHWESTERN BANKER
306 15th Street, Des Moines, Iowa 50309

Phone (515) 244-8163

Publisher & E ditor

A ssociate Publisher

A ssociate E ditor

Consultant

Ben Haller, Jr.

Steve Burch

Becky McBurney

Malcolm K. Freeland

No. 1440Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.50 per
copy. $18 per year. Second Class postage paid at Des Moines, Iowa and at additional
mailing office. POSTMASTER: Send all address changes to Northwestern Banker, 306
Fifteenth Street, Des Moines, Iowa 50309.
DigitizedNorthwestern
for FRASERBanker, September, 1983
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Federal Reserve Bank of St. Louis

And the city has a diversity of ^
sightseeing attractions that stag- ®
gers the imagination: the Honolulu
Academy of Arts, with extensive
Western and Oriental collections;
the Waikiki Aquariam, with bril- ^
liantly colored tropical fish and omi- w
nous-looking sharks; the 100-yearold Falls of Clyde, the world’s only
surviving full-rigged four-master
sailing ship; the Queen Emma Muse- q
um, the restored summer home o fw
the 19th century Hawaiian ruler;
and Chinatown, where everything
from pastries to pearl jewelry can be
purchased.
^
There’s also: Pearl Harbor, with a
museum and the U.S.S. Arizona
Memorial; Aloha Tower, Hawaii’s
HONOLULU BECKONS ...
(Turn to page 41, please)

“WithFirstTèamwork,yourrelationship
withFirstChicagoisn’tjustbankto
bank.Itspartnertopartner” ~
Neal Thogdon

“ When you are a correspondent o f First
Chicago, it means having access to the vast
resources o f a money-center bank. It means
having teams o f specialists w orking together
to deliver the kind o f products your bank
needs. And it means a partnership that
supports instead o f supplants.
“ You w o n ’t find a bank in the Midwest
th a t’s organized to deliver its resources
m ore effectively than First Chicago. You’ll
w o rk w ith a relationship manager fro m our
highly trained specialty team s—the Com
m unity Banking Team, the Illinois Team and
the Midwest Team -a cco rd in g to your
specific needs.

“ When you’re a correspondent w ith
First Chicago, w e w o n ’tju s t be w orking w ith
yo u — w e’ll be w orking fo r you.
“ See how First Teamwork can w o rk
fo r you. Call me, Neal Trogdon, at

(312) 732-7780.“
First Chicago
Atlanta—Baltimore—Boston—Chicago—
Cleveland—Dallas—Denver — Flouston— Los
Angeles—Miami — New York—San Francisco—
Washington, D.C.

FIRST CHICAGO
The First National Bankof Chicago

Neal Trogám,
u
ILS. Financial Institutions

Thomas M. King.
Community Banking
Stan ley Nitzberg, Midwest Financial Institutions

Philip H. y Britt, / Illinois Banking,

FIRSTTEAMWORK WORKS

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Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1983

,,,

Im a g in e b u ild in g; a n e w h o m e
fo r y o u r b a n k w ith
s o m e o n e a th o u s a n d m ile s
a w a y fro m h o m e .
“ When you think about
building, you naturally consider
your own local resources firs t,”
says Frank Etheridge, president
of Perkins State Bank in Williston,
Florida. “ We had capable firm s
available, but we’d also heard
about the fine plan-design-build
reputation of HBE up in St. Louis.
We decided to investigate.”

“We found they knew a
lot more about banks
because they make
this business a
specialty at HBE.”
“ The best word for it, I think,
is professionalism. HBE really
knows what makes banks tick.
They work with so many they can
tell you right away if an idea will
work or if there’s a better way to
do it altogether. That’s the kind
of competence th a t can also save
you from somebody else’s naive
mistakes. Everybody can see i t —
we even have contractors on our
board, but we all became con
vinced th a t HBE’s superior
expertise made it the clear
choice.”

“The thousand miles
vanished when we got
HBE for neighbors
right here in town.”
“ When construction actually
began, HBE immediately moved
th e ir superintendent into our
area. He was here for the entire
time, working on a daily basis
w ith local subcontractors. And it
went so well, as a m atter of fact,
th a t the entire project was com
pleted almost sixty days ahead
of schedule.”

“They really have the
people— in force.'
“ Some organizations, despite
th e ir reputation, can leave you
with just a salesman to deal with.

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Federal Reserve Bank of St. Louis

But HBE is fully staffed with
architects, engineers, construc
tion managers, and so on. And
they’re always just a phone call
away. Any tim e you want to talk
to them, they’re all there under
one roof—real professionals, on
staff, who know what they’re
talking about.”

'We’re attracting more
business, too.”
“ HBE helped us increase our
customer appeal by developing
an entirely new and exciting
image program. It embraced not
only the concept of the building
and the site, but a new logo and
an entirely new corporate
identity. When we moved in, we
saw business increase by more
than 50% the firs t year. That’s
the kind of m arketing insight
you get from HBE.”

You can put your full
confidence in HBE.
We can underline what
Mr. Etheridge has said. HBE is
determined to make every project
work the way you want it to. Call
or w rite me, Sally Eaton, right
now at 314/567-9000. HBE Bank
Facilities, 11330 Olive Street
Road, St. Louis, Missouri 63141.

2 2 HBE
Bank Facilities

Our new building is all we wanted
it to be and more, thanks to HBE.”
Frank Etheridge, president of Perkins State
Bank, likes everything about his new HBEdeveloped facility at Williston, Florida.

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Federal Reserve Bank of St. Louis

8
r

Convention Calendar

V
ABA—American Bankers Association
AIB—American Institute of Banking
BAI —Bank Administration Institute
BMA—Bank Marketing Association
IBAA—Independent Bankers Association
of America
NABW—National Association of Bank
Women, Inc.
RMA—Robert Morris Associates

Head Island, S.C.
Nov. 2-5—IBAA 23rd Seminar on the OneBank Holding Company, Marriott’s Hilton
Head Resort, Hilton Head Island, S.C.
Nov. 13-16—ABA National Agricultural
Bankers Conference, Bonaventure, Los
Angeles, Calif.
Nov. 13-17—BMA Trust Marketing Con
ference, Fairmont Hotel, Dallas, Tex.

National Conventions & Schools

State Conventions & Schools

Sept. 18-21 —NABW Annual Convention,
Hyatt Regency, Dallas, Tex.
Sept. 18-21—BAI National Convention, Fair
mont Hotel, San Francisco.
Sept. 18-23—RMA Loan Management Sem
inar, The Ohio State University, Colum
bus.
Sept. 18-30—ABA National School of Retail
Banking, University of Oklahoma,
Norman, Okla.
Sept. 20-23—ABA National Bank Card Con
vention, Bonaventure, Los Angeles, Calif.
Oct. 8-12—ABA Annual ABA Convention,
Honolulu, Hawaii.
Oct. 23-25—ABA International Banking
Conference, Grand Hyatt New York.
Oct. 23-26—BMA 68th Annual Convention,
Atlanta Hilton, Atlanta, Ga.
Oct. 30-NOV.2—RMA 69th Annual Fall Con
ference, Fairmont Hotel, San Francisco.
Nov. 2-4—ABA Chief Financial Officer
Seminar, Hyatt on Hilton Head, Hilton

Colorado:
Sept. 22-24—Independent Bankers of Col
orado Annual Meeting and Convention,
Keystone Resort.
Sept.—CBA Caravan Meetings, (locations
throughout the state)
Illinois:
Sept. 21-22—IBA Agricultural Credit Con
ference, Ramada Inn, Champagne.
Nov. 16-17—IBA Bank Management Con
ference, Holiday Inn, O’Hara Kennedy.
Nov. 17—IBA Annual Meeting, Holiday Inn
O’Hare Kennedy.
Iowa:
Sept. 18-20—IBA Annual Convention, Mar
riott Hotel, Des Moines.
Minnesota:
Sept. 20—District 8 Meeting, Holiday Inn,
Fergus Falls.

How a banker keeps
borrow ers going
w hen he can't say“yes?
“I suggest
BarclaysAm erican/
Business Credit.”
Your most solid source of loan
business is from a healthy, growing
customer. Yet there are times when
a turndown is necessary.
This is when Barclays American/
Business Credit can help, perhaps
as no one else can. By analyzing
your borrower’s accounts receivable,
machinery and equipment, and
inventory — we can often discover
asset values that may have been
overlooked.
When a customer requires fund
ing for expansion, turnaround,
acquisition or
refinancing, we
can lend a hand,
either solely or
Business Credit in
participation
— .... E3BESSS
with you.
Call 1-800-BARCLAY
O ffices lo c a te d n a tio n w id e . C o rp o ra te H e a d q u a r te rs : 111 F o u n d e rs P la za , E a s t H a rtfo rd , CT 0 6 108

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Sept. 21—District 6 Meeting, Sunwood Inn,
St. Cloud.
w
Sept. 22—District 9 Meeting, Holiday Inn,
Duluth.
Sept. 26—Districts 3, 4 and 5 Meeting,
Registry Hotel, Bloomington.
Sept. 27—District 7 Meeting, Ramada Inn,
Rochester.
W
Sept. 28—District 2 Meeting, Orchid Inn,
Sleepy Eye.
Sept. 29—District 1 Meeting, Best Western,
Montevideo.
Nebraska:
^
Sept. 25-30—Schools of Banking Inter
mediate (2nd session), Rodeway Inn,
Overland Park, Kan.
Sept. 28-29—NBA Marketing Conference,
Kearney Holiday Inn.
Oct. 16-20—Schools of Banking Advanced #
School, Regency West, Omaha.
Nov. 3-4—NIBA Annual Convention, Mid
town Holiday Inn, Grand Island.
Nov. 16-17—NBA Bank Management Con
ference, Holiday Inn, Kearney.
North Dakota:
^
Sept. 26— NDBA Northeast Group Meeting,
Artclare Motel, Devils Lake.
Sept. 27—NDBA Northwest Group Meeting,
Andrew’s Steak House, Rugby.
Sept. 28—NDBA Southwest Group Meeting, £
Elks Club, Dickinson.
Sept. 29—NDBA Southeast Group Meeting,
The Ranch, Ellendale.
Oct. 25-26—NDBA Bank Women’s Confer
ence, Holiday Inn, Fargo.
South Dakota:
#
Sept. 19—Group I, Minnehaha Country Club,
Sioux Falls.
Sept. 20—Group III, Holiday Inn, Mitchell.
Sept. 21—Group II, The Galley, Webster.
Sept. 22—Group IV, Wrangler Motor Lodge & £
Moose Lodge #1685, Mobridge.
Sept. 23—Group V, Howard Johnson’s Motor
Lodge, Rapid City.
Wyoming:
Sept. 15-16—WBA Consumer Credit Con- ^
ference, Hitching Post Inn, Cheyenne.
^

Manufacturers Hanover
Expands Mortgage Unit
Manufacturers Hanover Mortgage
Corporation has purchased $1.7 bil
lion of the mortgage servicing port
folio of Genstar Mortgage. The ac
quisition brings MHMC’s total
mortgage servicing portfolio to
more than $9 billion, making it the
n atio n ’s largest bank-affiliated
mortgage banker.
The acquired portfolio is composed
of Government National Mortgage
Association pooled loans. More than
half of the loans are located in
California and a majority of the re
mainder are located in the southwestern U.S. It is the largest port
folio acquisition by Manufacturers
Hanover since 1980, when it pur
chased a $2.3 billion mortgage ser
vicing portfolio from First Pennsylvania Corporation.

^
w

all its cracked up to be.
People are talking about the profits to be made:
Investm ent tax credits, depreciation deductions, and
potential residuals can allow a 13% lease to yield a 33%
or higher loan equivalent.
People are talking about how big the market is:
Ag-leasing is part of a huge 150 billion dollar leasing market.
And they're talking about how the market is
growing: A new tax law favors the lessee of agricultural
equipment.
But they’re also saying that a leasing service is
costly: Start-up costs may approach $150,000 for legal
research, qualification requirem ents, data processing
programs, promotional materials, and an expanded staff.
It’s clear they're talking more than egg money.
So how can you break into leasing without breaking
the bank? The answ er is Bank Participation Leasing
from Collateral Financial Services. CFS takes care of the
details: billing, collecting taxes, marketing, documenting,
and financial reports. You take care of valued custom ers
on a direct, personal basis. You determine your investment
in each lease — from 10% to 75%.
Don’t wait. While you’re sitting on it, independent

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Federal Reserve Bank of St. Louis

leasing companies are getting fat on business that could
be yours. Call CFS today or send in the coupon below.

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10
r

Ms. Pendleton, former chairman
of United Missouri Bancshares’ af
filiate City Bank and Trust Com
pany, is being transferred with her
new position to United Missouri
Bank of Kansas City. She will work
First National CharterBank of in business development, customer
Kansas City: Roger M. Arwood has retention and marketing. Ms.
been named vice
Pendleton has more than 40 years of
president in the
banking experience, having joined
correspondent/
City National Bank, now United
re g io n a l
de
Missouri Bank of Kansas City, in
p a rtm e n t and
1942 as a messenger.
h a n d le s
ac
counts in Colo
rado, Nebraska,
Iowa and Arkan
sas. He received
his undergradu
R.M ARWOOD
BAI Manual Deals With
ate degree from
ATM Security Threats
Central Missouri State University
The potential risks involved in au
and his MBA from Northwest Mis
tomated
teller machines (ATMs) —
souri State University. Mr. Arwood,
from
possible
threats to customer
who recently joined First National,
formerly was with Bankers Trust and employee safety to the physical
security of the equipment and the in
Company in Des Moines, Iowa.
tegrity
of ATM transactions — are
In addition, named assistant vice
the
focus
of “ATM Security,” a new
presidents were: Peter J. Fiene,
Robin J. Bell and Elizabeth W. manual from Bank Administration
Jensen. Joyce L. Roderick was pro Institute.
“ATM Security” addresses both
moted to assistant cashier, Charles
L. Harper to contract services of internal and external security prob
ficer; Candace L. McCormick to pur lems, according to Richard G. Mc
chasing officer, and Rose M. Beyer Cormick, vice president and cor
porate director of security for Chem
to securities processing officer.
ical Bank, New York, and chairman
Manufacturers Hanover Trust of BAI’s Security Commission.
Company, New York: John R. Torell
“ATM Security” covers topics
III, president, and executive vice such as ATM crimes, ATM site se
chairman of Manufacturers Han lection, physical security measures,
over Corporation, has been elected to electronic security systems, surveil
the board of New York Telephone.
lance systems, data protection, in
Mr. Torell started his banking ternal and external fraud control,
career in 1961 and was elected to his and operating guidelines for ATM
present positions in 1982.
security programs.
The 183-page manual was written
N orthern T rust Company,
Chicago: Promoted to executive vice by William M. Boyle, in consulta
president were: Clyde W. Reighard, tion with Bank Administration In
head of the human resources depart s titu te ’s nine-member Security
ment, and John B. Snyder, general Commission. Mr. Boyle is director of
counsel and head of the legal and marketing, Proprietary Systems,
Diebold, Inc., Canton, Oh., a leading
corporate affairs department.
manufacturer
of ATMs, and of phy
Mr. Reighard joined the bank in
sical
and
electronic
security and
1955. Mr. Snyder joined in 1973.
surveillance systems.
United Missouri Bank of Kansas
“ATM Security” is available at
City: Peter N. Gabrovsky and Bar $45 for BAI members and $65 for
bara Pendleton have been promoted non-members. It will also be used as
to executive vice president status.
the textbook for the Institute’s
Mr. Gabrovsky will be in charge ATM security course, offered sev
of business development for the eral times a year at locations across
Kansas City metropolitan area. He the country. More information may
joined United Missouri in 1981 after be obtained from Keith Marshall,
ten years with IBM in research and principal research manager/security
development and two years with programs, Bank Administration In
City National Bank in Atchison, stitute, 60 Gould Center, Rolling
Meadows, 111. 60008, (312) 228-6200.
Kansas.

Bank Promotions

ROMOTIONS and other an
nouncements have been made
P
by the following banks:
Commerce Bancshares, Inc., Kan
sas City: Gary L. Callaway has been
elected vice president, responsible
for retail banking administration
and product development, including
the credit card operation of the Com
merce organization.
Mr. Callaway returns to the
holding company from Commerce
Bank of Joplin, where he has been
president and chief executive officer
since January, 1979.
Continental Bank, Chicago: Eight
senior vice presidents were recently
elected. They are: John Bleveans,
James P. Donohue, Steven G. Elli
ott, John N. Fix, Kevin J. Hallagan,
R. Lawrence Johnson, John E. Neal
and Drew E. Waitley.
Mr. Bleveans is an associate gen
eral counsel and heads the litigation
division of the law department. He
joined the bank in June of this year.
Mr. Donohue is based in London
where he is responsible for multina
tional banking activities in Europe.
He joined in 1966.
With the bank since 1977, Mr.
Elliott heads management accoun
ting in operations and management
services and is departmental con
troller for general banking services.
Mr. Fix heads the worldwide cash
management and product groups of
the financial services department.
He joined in 1977 from the Northern
Trust Company.
Mr. Hallagan, who joined in 1963,
is an associate general counsel and
assistant secretary.
Having started with Continental
in 1971, Mr. Johnson is assistant
manager of the credit risk evalua
tion division.
Mr. Neal manages the commercial
real estate department within real
estate services. He joined in 1974.
Mr. Waitley heads the Africa/
Middle East group of international
banking services. He joined in 1952.
Harris Bankorp, Inc., Chicago:
Daryl F. Grisham, 57, president and
chief executive officer of Parker
House Sausage Company in Chi
cago, was elected to the board of
directors.
DigitizedNorthwestern
for FRASER
Banker, September, 1983
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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

Our special function
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OR ADDITIONAL SELE

Today’s customers want fast, personal service from an ATM.
That’s why customers like the IBM 3624.
With the function-type keyboard, programmable keys and multiline dis
play, customers avoid the tedious, step-by-step transaction process and also
perform transactions programmed just for them.
The IBM 3624, for example, lets you offer fast cash, travelers checks, and
messages in four languages.
All of those features help your bank’s customers feel very comfortable
with the IBM 3624; and those features help to explain the reported volumes
of 8,000 transactions, 10,000, even 30,000 per month.
The IBM 3624. It’s our most advanced ATM, and we’ve been installing
finance communications systems around the world for more than 10 years.
Let us tell you more. Send us the coupon on the next page.

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Federal Reserve Bank of St. Louis

Mr. Jim Edwards
IBM Finance Industry, Dept. 762A
P.O. Box 10
Princeton, New Jersey 08540
Yes, I’m interested in attracting more customers. Please rush me more details on the
IBM 3624 ATM.
Name_

.Title.

Bank Name_

.Phone.

Address___
Do you have ATM’s?_

.State.
.How many____ What type?.

Name of servicer/in-house computer.

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Federal Reserve Bank of St. Louis

Corporate
ROMOTIONS and other an
nouncements have been made
P
by the following firms:
Associates Corporation of North
America, Dallas: Reece A. Overcash,
Jr., chairman and CEO, has been
elected a director of Chilton Cor
poration, which provides credit
reporting, collection and other ser
vices to credit grantors throughout
the United States. Mr. Overcash
also is a senior executive vice presi
dent of Gulf-Western Industries,
Inc., parent company of Associates
Corporation.
Cargill Incorporated, M in
neapolis: W.B. (Barney) Saunders,
an executive vice president since
1981, has been elected vice chairman
of the company’s board of directors.
He will continue to provide overall
direction to Cargill’s commodity
marketing and trading groups and
the human resources and public af
fairs departm ents. Along with
Chairman Whitney MacMillan and
President M.D. (Pete) McVay is a
member of the Office of the Chair
man.
Central National Insurance Group,
Omaha: Donald Nachtman has been
promoted to vice president of all the
member companies, it was an
nounced recently by Frank J. Bar
rett, president and CEO. Central
National is a subsidiary of St. Regis’
Insurance Group.
Mr. Nachtman joined Central Na
tional in 1982 and was promoted to
assistant vice president in the fall of
1982. Prior to joining Central Na
tional, he was president of Peters/
Reimen Casualty Agency and has
owned his own agency. He also has
extensive credit life and health in
surance experience, working with
financial institutions throughout
Nebraska and Iowa.
A native of Dubuque, la., Mr.
Nachtman attended the University
of Iowa and is a graduate of Loras
College in Dubuque. He holds a

ACORN

Registers

"Accepted Sale Registers by Bank
Clerks Everywhere"
For info rm a tio n

w rite

THE ACORN PRINTING CO.
O ak lan d , Iow a
DigitizedNorthwestern
for FRASER
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Masters Degree in Life Insurance
from Purdue University.
Collateral Control Corporation,
St. Paul Minn.: Edward A. Ames
has been promoted to national sales
m a n ag e r and
elected to the
board of direc
tors of the com
pany and its cor
porate parent,
Collateral Finan
cial S ervices,
Inc. CCC has
provided third
party collateral
E.A. AMES
management to
le n d e rs and th e ir b u s in e s s
customers since 1916 and markets a
participation leasing program to
banks and S&Ls for CFSI.
Mr. Ames joined CCC in 1971 as a
combined marketing representative
and collateral examiner in the Des
Moines territory, soon moving to
the Kansas City territory as assis
tant vice president. In 1976 he was
named manager/vice president of
the St. Paul region and subsequent
ly served in the same capacity in the
San Franciso region, where he was
promoted to senior vice president.
Mr. Ames returned to St. Paul in
1981 as regional manager.
As national sales manager, he will
be responsible for education and
training, pricing and financial tran
saction structuring, national ac
count coordination and interregional
business activity coordination.
FBS Business Finance Corpora
tion, Minneapolis: John E. Mc
Cauley, president of the FBS assetbased lending and leasing sub
sidiary of First Bank System, Inc.,
has announced the following promo
tions:
Raymond T. Pratt to assistant
vice president.
Stockton Forrest to marketing of
ficer.
Richard Smith to marketing of
ficer, Billings office.
Jay D. Hendrickson and Andrew
T. Rupprecht to credit officers.
Mr. Pratt joins FBS from Bank
America Lease Group, where his last
position was as district manager of
the Minneapolis office.
Mr. Forrest joined FBS from Lit-

ton Industries Credit Corporation,
where he was branch manager of the
Minneapolis office.
Mr. Hendrickson, has been part of
the First Bank System for the past
nine years and joined FBS Leasing
in November, 1981, as a credit
analyst.
Mr. Rupprecht has been a credit
analyst since joining the leasing
division in April, 1981.
At FBS Mortgage Corporation,
Geoffrey W. Stellmacher has been
elected assistant vice president, con
tinuing his duties as manager of the
Associate Lender-Conduit Program
and the train in g departm ent.
Formerly with First Bank Min
neapolis as a real estate officer, he
joined FBS Mortgage in November,
1982.
FBS Financial Corporation an
nounces the appointment of Kathy
D. Larson as personnel officer. She
recently held the same position with
FBS.
LeFebure, Cedar Rapids: Robert
Zawodny has joined the company as
product manager, automatic teller
m achines. He
will have total
responsibility
for m arketing
the company’s
new ATM pro
duct line pro
duced by Docutel/ Olivetti. Af
ter more than a
decade of bank
ing experience,
Mr. Zawodny has an extensive
background in operations, market
ing and ATM program manage
ment. Most recently he was a •
Docutel/Olivetti account manager
for Illinois and Wisconsin.
McGladrey Hendrickson & Co.,
St. Paul, Minn.: Robert E. Miller, a
partner in the St. Paul office, has
been named co
ordinator of ser
vice to the bank
ing industry. In
th at newly-cre
ated position, he
will coordinate
se rv ic e s p ro
vided to banks
by the public acC°V.n tin g

f i™ .'S

R.E. MILLER

offices w ithin
the Ninth Federal Reserve District.
Mr. Miller also will share ad-

When the founders of IAC Group earned
their first Credit Insurance contract more
than 30 years ago, it was a seller’s market.
Bankers wanted our services because we
made them money. Competition wasn’t
a problem... neither was regulation.
Business was good and there was plenty
of it to go around.
Sound familiar?
IAC’s experience so closely parallels the
history of the banking industry, our
stories are interchangeable.
As the marketplace has become more
complex, IAC has learned right along
with banks to ...g o farther, try harder,
learn a whole lot more.
We’re still the same people who may
have called on you 30 years ago—plus a
steady stream of new blood. We have
hired all the innovation and energy we
need to develop the broadest line of
bank insurance and investment services
available today—from any company.
If your bank has survived the past decade
of regulation, competition and
complexity, we know where you’re
coming from.
And we’d like the chance to help you
get where you’re going.. .to
increased income, minimized risk,
predictable profits.
Call IAC Group toll-free today and ask for
a free copy of our Products and Services
Checklist.
Missouri— 800-892-5890
Other States— 800-821-5434
Be a Part of Our Happy Ending.

"THE DIRECTION C O N N E C TIO N "

Kansas City, Missouri 64106. (816) 842-8842. (800) 821-5434

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

Northwestern Banker, September, 1983

in the second
*
"Whether a customer wants to buy loans or sell them, our
nationwide network can get the job done fast. I'm in
constant touch with all the other MGIC traders in major
cities from coast to coast. We use a closed-loop
telephone system that enables us to talk to each
other individually or to everyone in our network
at the same time. We can bring buyers and sellers
together in minutes, wherever they are in the
nation. Our network moved over $7.5 billion in
mortgages in the last twelve months alone.
"O ur CRT terminals also contribute to the
speed and efficiency of our matchmaking.
All active bids and offers are entered into
our network's computer system for ready
reference on terminal screens on every
trader's desk. The terminals also provide
instant access to current money market data,
including yields and rates on Treasuries, PCs,
Freddie Macs, Fannie Maes and Ginnie Maes.
This information is updated throughout the day so
we can constantly monitor the direction of interest
rates and advise our customers.
"Speed in making deals is important to my customers,
but it’s MGICs total secondary market expertise that
earns their business. We can evaluate and structure deals.
Recommend levels of insurance to enhance marketability.
Assist in Freddie Mac and Fannie Mae approvals. We have
special services and experienced people to help in so many
different ways.
"I was a mortgage banker for 17 years and appreciated what
MGIC taught me about the secondary market. Pm doing the
same for many of my customers today. I'm often asked by lenders
to help train their inexperienced personnel. I use the MGIC
Secondary Market Manual to give them a crash course. It is all
anyone really needs to understand the fundamentals
of the business. Afterwards, they use nne as a
consultant and call whenever they have a
question or a problem."

Louise Tarnecky
Secondary Market Account Executive
Atlanta, Georgia

\v.:

; >*> . *
■•v?

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

;

V-;

make better deals
“ My job is helping customers put deals together. But
advising them which deals not to make is just as
important. A customer recently asked me about a
package involving Federal RRMs that he didn't
fully understand. When I explained everything,
he realized the deal wasn't right for him.
My point is, there's more to this business
than dropping a deal in someone’s lap. You
really have to know what you're selling to
serve the best interests of your customers.
“ If 1can’t answer my customers’ questions,
MGiC’s research specialists can. For example,
I often get calls from customers who want to
know how the one year Treasury index tracks
against the Federal Home Loan Bank Board's
contract rate. Our research department always
has that information handy. They continually
compile all types of data pertaining to the
secondary market.
“ Anyone who wants to stay up-to-date should
read our weekly Secondary Market Newsletter.
It's a concise analysis of current conditions
together with a wealth of statistical data. A cus
tomer recently told me he takes the Newsletter
in to his investment committee meetings. He
says it answers all of his management's questions
about available products and rates.
“ Assistance in obtaining project approvals is another
valuable MGIC service. One of my customers was
going to bypass FNMA/FHLMC project approve
because he thought it was too difficult, expensive and
time-consuming. And it can be, if you don't know what
you're doing. He changed his mind when i told him MGIC
had Project Financing Specialists who would help him get the
job done quickly and efficiently."
For complete information on any of our services, contact your
MGIC Account Executive or call 800-558-9900 (800-242-9275
in Wisconsin),
Steve Snodgrass
Secondary Market Account Executive
Milwaukee, Wisconsin

Working hard to earn your business

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

ministrative and planning respon
sibilities for the firm’s overall bank
ing industry practice, which in
cludes more than 500 banks in 12
states.
Mr. Miller, 40, is a North Dakota
native, a 1964 graduate of James
town College in Jamestown, N.D.,
and joined McGladrey Hendrick
son’s St. Paul office in 1965 and was
admitted to partnership in 1974.
McGladrey Hendrickson is the
nation’s largest regional certified
public accounting firm and ranks
13th in size among all U.S. accoun
ting firms. It has 53 offices in 12
states from California to Indiana.
MISC Public Relations Corp.,
New Brighton, Minn.: Robert J.
Aronson has been promoted to vice
president of the company, according
to Ja m e s E.
L u k a s z e w s k i,
president. Mr.
A ro n so n c u r
rently is the ex
ecutive director
of MISC’s televi
sion sem inars
division. He is
the first non
family member Rj ARONSON
to be made an

Douglas-Guardian
WAREHOUSE CORPORATION
Home Office
P.O. BOX 5 2 9 7 8 , NEW ORLEANS, LA 7 0 1 5 2
( 5 0 4 ) 5 2 3 -5 3 5 3

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

officer in th is five-year old,
privately-held consulting company.
Mr. Aronson will direct the cor
poration’s marketing program, es
pecially in the television seminars
division. He and Mr. Lukaszewski
will continue to work together in the
area of executive voice/speech
coaching and in training executives
to have successful, effective news
media interviews, and to make effec
tive speeches and other kinds of
public presentations.
A former Minnesota governor’s
press secretary, Mr. Aronson has
also had a 25-year career as a broad
cast journalist. Since 1980 he has
anchored Minnesota Public Radio’s
“Morning Edition’’ news program, a
post he resigned to join MISC on
September 2.
Travelers Express Co., Min
neapolis: William G. Ennis has been
elected executive vice president of
the Puerto Rico subsidiary, Travel
ers Express Co. (P.R.), Inc.
C.A.E. Anderson, president of
both companies and of TRAV/ACT
Systems, Inc., also announced ap
pointments of Dennis C. Feit as con
troller and assistant treasurer;
William S. Howard and Jacqueline
P. Taylor as assistant secretaries,
and Michael P. Wraneshay to assis
tant treasurer.
Travelers Express Company, Inc.,
a subsidiary of The Greyhound Cor
poration, provides money order ser
vices to retail establishments and
the financial industry, draft clearing
services for depository institutions,
and consumer-oriented payment ser
vices.
G.D. van Wagenen Company,
Minneapolis: Kent R. Daley, presi
dent, has announced the election of
Donald W. Miller as vice president.
Mr. Miller joined
the firm in 1980
as its director of
marketing. Prior
to joining the
firm, Mr. Miller
was a marketing
re p re se n ta tiv e
for M innesota
Mutual Fire and
Casualty Comd .W. m il l e r
pany and also
for the St. Paul Companies. A native
of Clarkfield, Minn., he was
graduated in 1970 from Augustana
College in Sioux Falls with a BA
degree in Political Science.

The G.D. van Wagenen Company, ^
established in 1935, specializes in all
forms of single interest insurance
coverage. It has offices in Min
neapolis and Golden Valley, Minn.;
Phoenix, Ariz., and Billings, Mont. ^

BAI Trust Conference
Is Slated for Dallas
In a reflection of the many
changes occurring in the trust field,
the Bank Marketing Association
has chosen “The Trust Industry in
Transition’’ as the theme for its 12th
Annual Trust & Personal Financial
Services Marketing Conference to
be held Nov. 13-16 at the Fairmont
Hotel in Dallas.
This year’s program will place
particular emphasis on strategic
planning and product development
as well as on sales through a series
of general sessions, workshops and
early morning “dawndusters.’’
Keynoting this year’s conference
is BMA President Richard M. Ro
senberg, vice chairman, Wells Fargo
Bank, San Francisco, who will dis
cuss “The Emerging Financial Ser
vices Industry—Where Do We Go
From Here?” Other speakers in
clude G. Lynn Shostack, senior vice
president, Bankers Trust Company,
New York, who will cover “The
Trust Industry in Transition;” Martin E. Lybecker, an attorney with
the Washington-based Drinker Bid
dle & Reath on “Congress and the
Glass-Steagall Act;” and Joyce A.
Healy, senior vice president, Manu
facturers Hanover Trust Company,
New York, on “Priority Banking:
Meeting the Financial Needs of the
Middle Market.”
Other speakers include Roger W.
Thomas, a general partner with Ed
ward D. Jones & Company, Mary
land Heights, Mo., who will discuss
“Segmentation: A Success Story;”
Paul C. Bosland, president and chief
executive officer, Horizon Trust
Company, Morristown, N.J., on
“New Horizons in the Trust and
Financial Services Business;” Rich
ard S. White, Jr., chairman of the
board, RepublicBank Trust Com
pany, Dallas, on “Reorganizing the
Trust Department and Establishing
a Bank-Owned Trust Subsidiary;”
and Craig A. Madsen, director of
wholesale services, Security Pacific
Brokers, Inc., Pasadena, Calif., on
“The Formation and Implementa
tion of a Discount Brokerage Service.

•

W HEN you W ANT TO
GET IT DO NE,
• CALL A CORRESPONDENT
W HO HAS
B O N THERE.
•

And his knowledge is now
channeled into providing
services like fast, efficient
transit operations, bond
and investment services
and bank stock loans. The
same responsiveness he
provided to his bank cus
tomers is now offered
to you.

There are only a handful
of correspondents who can
say they’ve learned the
needs of community banks
firsthand.
Ernie Yake is one of them.

•

He successfully m an
aged Commerce Bank of
Moberly. And before
that, he headed a suburban Kansas City bank
on the Kansas side.

So give Ernie a call at
234-2483. He knows how
to get it done for you,
because he’s already done
it himself.

Today, Ernie runs the
Correspondent Depart
ment at Commerce Bank
of Kansas City. Ernie
knows w hat bankers need.

€* Commerce Bank
of Kansas C ity 1

GETTING

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

Northwestern Banker, September, 1983

IBM Announces Resource Manager for
4700 Finance Communication System

such transactions as opening cer
tificates of deposit and daily jour
naling, as well as all teller monetary
transactions. They provide “menu’’
O MAKE it easier for financial office controller where they are ex screens for tellers and administra
institutions to develop and ecuted by the Controller Resource tive officers to select from and in
clude “help’’ screens that offer stepmaintain branch office applications, Manager.
IBM has announced a Resource Man
Along with the new Resource by-step instructions on how to com
ager for its 4700 Finance Commun Manager, IBM has announced an plete transactions.
The new Controller Resource
ication System. This extensive new enhanced system that can help
software system, a company spokes speed customer service and improve Manager and the Application Map
man said, was in response to an im the efficiency of teller and admin Generator programs will be avail
able in late December. The Control
portant need within the financial in istrative personnel.
dustry.
The IBM 4700 Advanced Branch ler Resource Manager has a one-time
“Developing computer applica Controller System consists of two charge of $1300; the Application
tions for banks and other financial licensed programs, the IBM 4700 Map Generator has a one-time charge
institutions has been a task often Advanced Branch Controller Sys of $21,000.
Both Advanced Branch Control
‘easier said than done,’“ the tem for the IBM 4700 Finance Com
spokesman said. “That’s because munication System and the IBM ler System programs will be avail
applications for branch office en 4700 Advanced Branch Controller able in October. The base program
vironments must be designed to ac System: Format Distribution Ser has a one-time full charge of $800
per controller. The Format Distribu
comodate a variety of different ter vices.
minal displays, keyboards, printers
These programs prompt tellers tion Services program has a one
and communication links used in and administrative officers through time charge of $11,000.
teller and administrative operations.
Writing, testing and de-bugging
these applications can prove to be
formidable and time-consuming pro
gramming efforts.’’
The new 4700 Resource Manager
ORWE ST Corporation announced fore spreading into the bank build
includes two programs which pro
August 1 that it has entered in ing. Oxford Properties, the owner of
vide a series of programming aids to to a premliminary agreement with that portion of the block, said that
help reduce the time required to Oxford Properties, Inc., Minneap by combining the two pieces of pro
develop new applications and im olis, to develop an entire city block perty “a more properly integrated
prove programmer productivity:
in downtown Minneapolis. The pro project is possible.
•Controller Resource Manager for posed project would include a new
C. Donald Love, chairman of Ox
the IBM 4700 Finance Com building to replace the 54-year-old ford Properties, said, “This develop
munication System.
Northwestern National Bank Build ment will be a focal point for the
•Application Map Generator for ing that was extensively damaged citizens of Minneapolis. We are de
the IBM 4700 Finance Commun by fire on Thanksgiving Day 1982. lighted to be a part of this develop
ication System
That building housed Norwest’s ment and to become partners with
The new Controller Resource largest bank, Norwest Bank Minne Norwest Corporation.’’
Manager operates on the 4700 con apolis, the corporate headquarters,
John H. Beal, president of Nor
troller and manages all the compon the headquarters of Norwest Mort west Properties, the corporation’s
ents of the branch system, including gage, Inc., and various other sub real estate subsidiary, said that no
terminals, printers and storage files. sidiary companies, and a major law architectural firm has yet been selec
It monitors applications which may firm.
ted. He said new construction would
run concurrently on the 4700 con
John W. Morrison, Norwest’s begin in the fall of 1984, “subject to
troller, allocates storage, performs chairman, said the corporation re the execution and delivery of
editing routines, and allows tellers gards the proposed project “as a un definitive agreements.”
and administrative personnel to ique opportunity to develop a facility
Norwest’s claims against its in
share the same controller applica with aesthetic, economic, functional surance carriers for damages caused
tion data using any 4700 terminal.
and institutional qualities to replace by the fire have not been settled.
The new Application Map Gener the former bank building and to en
Oxford Properties, which has its
ator enables programmers to devel hance the downtown business dis head office in Denver, together with
op “maps’’ on IBM 3270 terminals trict.’’
affiliated companies, is an interna
which describe how data will be for
He said, “Few other pieces of real tional property developer, operating
matted on terminals and printers in estate of comparable potential exist throughout Canada and the United
branch office locations. These maps in North America situated as this is States with assets in excess of $2.2
also can define formats for display at the very heart of a great city.’’
billion.
ing application data, accepting data
The block is bounded by 6th and
Norwest Corporation is a $19 bil
from keyboards, magnetic stripe 7th streets, Nicollet Mall and Mar lion diversified financial services or
readers and Personal Identification quette Avenue. The west half of the ganization with 86 commercial
Number (PIN) pads, and printing block is the site of the old Donald banks and several specialized finan
and editing data.
sons department store, where the cial companies operating in 42
Maps are then sent to the branch Thanksgiving Day fire started be- states and in five other countries.

Norwest Corporation and Oxford
Will Develop Entire City Block

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

E l

An Innovative Curriculum
For A Changing Industry
to meet the needs of the financial services industry’s next generation of top
managers, Stonier responds with an innovative educational approach.

Stonier offers participants two options for completing the graduation re
quirements. You can submit either a series of applied research projects on
specific bank performance areas or the traditional formal thesis. Many classes
are segmented by student experience, and the practice-oriented program
focuses on the concepts and tools needed by managers to deal with the
challenges of the next decade-microcomputers, individual management skills
training, retail banking, and more-electives and track courses add further flex
ibility, allowing students to tailor the program to fit their own career objectives.

Participants in this intensive management education program attend three
2-week resident sessions held each June at Rutgers-the State University of
New Jersey-and must also complete several between session extension prob
lems, in addition to the thesis or research projects.

Sponsored in cooperation with Rutgers University Stonier offers you a superior
faculty of over 150 experienced academicians, bankers, professionals and
government officials—many of whom have achieved national prominence in
their respective fields.

Since 1935 Stonier has built its reputation as banking’s most prestigious school
by providing the best in bank leadership training and education. 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 benefit tremendously from your Stonier
education.

They’ve successfully completed the industry’s finest bank management
program.
They’re motivated, knowledgeable high-performers who are on their way to
becoming tomorrow’s banking leaders. No one is better prepared to assume
a senior bank management position than the man or women with a Stonier
education. If you’re ready to join them and accelerate your career, Stonier is
now accepting applications for the 1984 Program. Applications submitted by
October 15, 1983, will receive first consideration for admission. Late applicants
who meet admission requirements will be accepted on a space available basis
only.
1984 Session Dates: June 3 to June 15

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

Bank Building Corporation
Announces Design Award Winners
INNERS of the 11th Annual
W
Design Awards Program have
just been announced by Bank Build
ing Corporation, St. Louis, the na
tion's largest designer and builder of
financial facilities.
Unique in the practice of architec
ture, the Awards were established in
1972 as part of an internal Bank
Building Corporation program of en
couraging design excellence through
peer recognition of quality perfor
mance. Each year, a select panel of
leading design professionals, not as
sociated with Bank Building Corpor
ation, is invited to judge, evaluate
and comment on the work of Bank
Building Corporation’s professional
staff.
“Rarely does an architectural cor
poration actively seek and encour
age outside examination and crit
icism,” commented Charles P. Guariglia, vice president of BBC’s archi
tecture and engineering, in announc
ing the awards. “But Bank Building
Corporation feels strongly that such
continual striving for excellence is
vital in maintaining our leadership

in the design of financial facilities,
and in sharpening the quality of our
response to client needs.”
Awards are made at two levels—
First Design Award and Awards of
Excellence. They encompass designs
for new construction, remodeling
and interiors. A synopsis of the en
tire judging process, utilizing both
audio and video tapes, enables the
Bank Building Corporation architec
ture and engineering staff to share
both the work being done by indi
vidual offices, as well as the reaction
and comments of the judges.
This year’s judges, representing
different geographic regions and
areas of expertise, included: Tai Soo
Kim, A.I.A., president of the H art
ford Design Group; Jack C. Durgan,
A.I.A., head of the Department of
Interior Architecture at Kansas
State University; and Howard Van
Heuklyn, A.I.A., vice president and
director of design, Verge-Clatworthy, Los Angeles.
Winner of the First Design Award
was The First Savings and Loan in
Borger, Tex. Architect John Suedel

and the Design Team were com
mended by the jury for a “unique in
tegration of disciplines producing a
distinctly unified whole - an out
standing example of total architec
tural design.”
Awards of Excellence went to the
Bank of Lake of the Ozarks, Lake
Ozark, Mo., and Architect Nicholas
Zeveski; to Hawaii State Employees
Federal Credit Union, Hilo, Hawaii,
Robert Sarnoff Architect; to Cen
tury National Bank, Washington,
D.C., Ed Bachtell Architect, and to
Good Samaritan Nursing Home,
Quincy, 111., Ron Arioli Architect.
Interested parties may obtain a
published summary of the Awards
Competition, with design plans and
judges’ comments, by writing to
Charles Weaver, 1130 Hampton
Ave., St. Louis, Mo. 63139, (314)
647-3800.

Chase Buys Chicago Broker
The Federal Reserve Board has
announced its approval of the appli
cation of The Chase Manhattan Cor
poration, New York, to acquire Rose
& Company Investment Brokers,
Inc., Chicago, 111., a retail discount
securities broker.

Relationship pricing and financial planning
are now at your fingertips
Relationship pricing on a customer-by-customer basis and complete financial reporting,
planning and control are at your fingertips with PRO -FIN and CustomerCalc, two new
computer software programs only from Microtech.
Professionals at Microtech have years of experience in writing financial
software programs for banks ranging in assets from $5 million to S350 million.
They understand the needs of financial institutions, and they know how to write
computer software programs that are easy to use. . . all you have to do is turn on
the switch.
PRO -FIN is the management information system designed by a banker for
bankers. This financial reporting and planning model allows you to create and
format your own accounts. From these you may maintain and report actual results,
comparisons to budget, perform projections and “what-ifs” . . .and so much more.
With PRO -FIN , you’ll spend less time analyzing the past because now you’ll have
help to control your future.
CustomerCalc, the customer relationship pricing and profitability system, allows
you to define the various products you offer. Then, by entering a customer’s total
account relationship, it will calculate your return on equity for that customer’s
relationship with your institution. CustomerCalc can also show you how to reach
target returns as well as give you pricing decisions on new products.
Best of all, CustomerCalc and PRO -FIN are designed to operate on Apple
computers, the largest selling microcomputer in the world today. That makes
financial planning and customer relationship pricing even easier. Put PRO -FIN
and CustomerCalc at your fingertips and control your future.
P r o fe s s io n a l C o m p u te r S o lu tio n s .

ill microtech

200 N . 66th S t ./L in c o ln , N e b r a s k a 6 8 5 0 5 /(4 0 2 ) 467-5521

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

If a b an k a n sw e rs, hang up.
As a correspondent of The Boulevard Bank, you don’t deal with a bank, you
deal with a person — a professional correspondent banker. Each one is a
senior Boulevard officer and each one is capable of making some seventy
Boulevard banking services available to you and your customers.
This unique Boulevard combination of “ big bank” service and personal
attention involves four basic areas - Loan participations, Assets-Liability
Management Services, Operational and Clearing Services and Management
and Marketing Services.
It also involves our day-to-day dedication to applying people and
state-of-the-art technology in helping our correspondent customers meet
the challenges and benefit from the opportunities of today’s and
tomorrow’s economy.
If you’d like to find out more about the Boulevard approach to correspondent
banking, call (312) 836-6868. And talk to a person, not a bank.

Earning your business every day.

National Boulevard Bank of Chicago

Boulevard
Bank
410 N. M IC H IG AN AVE., C H IC A G O , IL 60611

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Federal Reserve Bank of St. Louis

ONE ILLINOIS CENTER (111 E. W acker), C HIC A G O , IL 60601

(312) 836-6500

• MEMBER FDIC

Northwestern Banker, September, 1983

24
Senior Vice President Fran Wet
zel, head of business services for
BofA’s Global Systems Services
Division, said Managistics has a
state-of-the-art payroll processing
operation which will reinforce the
financial products offered by bus
iness services.

Agribusiness Loan Program
Offsets PIK Impact

Kirk Gross Receives National Honors
IRK Gross Company of Water
K
loo, la., has been selected as the
“ 1983 Remodeling Designer of the
Year” and has won first place in a
National Com
mercial Interior
Design Remod
eling Contest for
its work on the
re c en tly com
pleted First Na
tional Bank of
West Union.
Sponsored
jointly by Com
G. GROSS
mercial Remod
eling and Qualified Remodeler
magazines, the Remodeling Design
Award annually honors, recognizes
and publicizes nationally excellence
in remodeling design. Four coveted
design awards for first place are
selected; exterior and interior de
signs in both residential and com
mercial categories. Competition is
open to all professionals, architects,
designers and contractors. Entries
were received from all sections of the
United States.
According to Gerald L. Gross,
president of Kirk Gross Company,
the Remodeling Design Award pro
gram was established to recognize
those remodeling professionals who
do superb work, yet do not attract
the national attention they deserve,
to detail case histories of outstand

Northwestern
Banker, September, 1983
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Federal Reserve Bank of St. Louis

ing projects from conception through
completion illustrating how these
professionals handled obstacles
others also face, and to serve as a
forum for new ideas to help stir the
creative juices of remodelers nation
wide by highlighting innovative ap
proaches.
“Being selected as the best in the
nation by winning the 1983 Remod
eling Designer of the Year in the
Commercial Interior Category is the
direct result of a team effort,“ Mr.
Gross said. “Only the close interac
tion of architectural, interior design
and construction disciplines made it
possible,” he added.
The Kirk Gross Company has spe
cialized in the Turn Key develop
ment of financial facilities for the
last 12 years and has completed over
225 projects. While 90% of the firms
clients are from Iowa, Kirk Gross
Co. has done work in Nebraska, Wis
consin, and Illinois, and recently
completed a Turn Key project in
Lake City, Fla.

BofA Buys Chase Unit
Bank of America has reached an
agreement in principle with the
Chase Manhattan Bank under which
Bank of America will acquire Man
agistics, Inc., Chase’s payroll pro
cessing subsidiary. The acquisition
is subject to regulatory approval.

Agricultural-services businesses
adversely affected by the govern
ment’s Payment-In-Kind (PIK) program now can seek relief through a
loan program offered by Bank of
America and the U.S. Small Busi
ness Administration.
The bank and the SB A recently
announced a special SB A 90-percent
guaranteed loan program to assist
these small businesses.
The PIK program, adopted this
year by the U.S. Department of Agriculture, is designed to reduce goverment-owned commodity surpluses
by encouraging farmers to reduce
acreages of cotton, rice, wheat, corn
and sorghum. In return for not planting, a farmer will receive an amount
of the commodity as payment for
participating.
“Despite the obvious benefits to
U.S. agriculture from the PIK program,” said James C. Sanders, head
of the SB A in Washington, D.C.,
“some of the businesses engaged in
soil preparation, equipment and re
pairs, crop dusting, fertilizing and
such have been hurt by the reduc
tion in normal crop production.”
Joseph C. Angello, vice president
for Bank of America’s Community
Development-Statewide, said the
maximum loan under the program is
$150,000, with a maximum term of
five years. Interest will be at the
reduced rate of 1.5% over low New
York prime rate, using the SB A variable rate formula.
Proceeds may be used for:
1. Inventory and equipment
2. Accounts payable
3. Carrying receivables
4. Bringing payments on debt
term current
5. Restructuring existing debt
6. Operating expenses
To be eligible for these special
SBA loans, businesses must docu
ment that the deterioration of their
business is caused by the adverse af
fects of the USDA-PIK program,
Mr. Angello said.

•

^
®

We turn on a dime
so you can turn a larger
profit.
When money is expensive, so is the
time funds are idle. T h a t’s why so
many banks rely on Northern
Thist Bank for profit-enhancing
correspondent services. Our exper
tise in getting funds to work
quickly and profitably has earned
us the reputation of being a pre
miere processor for correspondent
banks. In fact, in independent
surveys, The N orthern Thist
consistently ranks among the top
three cash m anagem ent providers
in the industry.
The latest in computer tech
nology assures check collection
and safekeeping th a t’s accurate
and fast. Our Cashline Balance
Reporting System gives you elec

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Federal Reserve Bank of St. Louis

tronic access to your account for
maximum flexibility. You can get
a fresh update every 15 minutes
if necessary—and move money
within hours rather than days.
Add to our sophisticated
equipment the best in personal
attention and responsiveness, and
you get N orthern Thist’s ideal
combination of quality and effi
ciency. A dedicated staff of profes
sionals assures you personal
attention in all transactions.
We’re also ready to assist you
in handling your investments.
And our experienced Bond
D epartm ent representatives
are always on hand to provide
knowledgeable advice.
With N orthern Trust Bank
behind you, you can count on
better service for your customers.

And a better bottom line for your
bank. For more information,
contact Curtis E. Skinner, Senior
Vice President, Northern Thist
Bank, 50 South LaSalle Street,
Chicago, Illinois 60675. Telephone:
(312) 630-6000. Member F.D.I.C.

The more you want
your bank to do,
the more you need
The Northern.

Northern
Thist
h

It’s h elp in g a bank in A ppleton, W isconsin, to com p ly
w ith the N ew York Stock E xch an ge R ule 387 by
b rid g in g th e g a p fro m p h y s ic a l s e c u ritie s to e le c tro n ic
b o ok-entry.

It’s p ro v id in g bridge loan fin a n cin g to enable a
N ew E n glan d bank to expand through a cq u isition .

It’s su p p ly in g needed capital through our M erchant
B a n k in g Group. B etw een D ecem ber, 1982, a n d July, 1983,
w e h a v e a rra n g e d m o re p riv a te p la c e m e n t fin a n c in g
b a se d on d o lla r v o lu m e th a n a n y o th e r in v e s tm e n t b a n k
a g e n t/a d v is o r.

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Federal Reserve Bank of St. Louis

the

FINANCIAL
SOURCE:

It combines talent and
technology in answ ering the sophisticated
needs of Am erica’s bankers for credit
and operations services.
C o rre sp o n d en t b a n k in g h a s com e a lo n g
w a y sin ce tra n s a c tio n s by te le g ra p h and
d o cu m en t tra n s fe rs by ra ilro a d .
Today, c o m p u te rs h a v e sp aw n ed a new era.
A nd few h a v e done m ore th a n M an u fac tu re rs
H a n o v e r to a d v an ce the c o n te m p o ra ry w o rld
of b an k -to -b an k serv ices, w ith a c o m p re h en
siv e m ix of c red it and o p e ra tio n s serv ice s
an d in s ta n ta n e o u s g lobal co m m u n icatio n s.
O u r c o rre sp o n d e n t n etw o rk n u m b e rs over
2,700 b a n k s a c ro ss the U.S. and a n o th e r 1,700
b a n k s a ro u n d the w orld.
S ta tistic s aside, w hat m a k es M an u fac tu re rs
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q u ality, lo y a lty and c o n siste n c y w e b rin g to
c o rre sp o n d e n t re la tio n sh ip s.
B ut o n ly a c o m m itm e n t can produce
c ap a b ilities.
O u r c o m m itm e n t to c o rre sp o n d e n t b a n k
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an d a c c u ra c y in o u r “back office” w hich

allo w s c o rre sp o n d e n ts to act q u ic k ly and
confidently.
O u r co m m itm e n t is a p p a re n t as w ell in
o u r staff of p ro fe ssio n a ls w ho devote all
th e ir ta le n ts an d e n e rg ie s to s e rv in g c o rre
sp o n d en ts. N e v er do th e h u m a n re so u rc e s of
M a n u fa c tu re rs H a n o v e r ta k e a b a ck se at to
m a in fra m e s an d m e m o ry ban k s.
D iscover The F in an cial Source. C ontact any
one of th e B a n k in g G ro u p officers below at
M a n u fa c tu re rs H an o v er, 270 P a rk A venue,
N ew York, NY 10017. Telephone: (212) 286-4940.

Left to right: R. B ruce B ro u g h am , S e n io r V ice President;
D onald H. M cCree, Jr., E x e c u tiv e V ice P resident;
M e rrill 0. B u rn s, S e n io r V ice P resid en t and D e p u ty G eneral
M anager; an d R ic h a rd H. M cC arthy, S e n io r V ice P resident.

MANUFACTURERS HANOVER
The financial source. Worldwide.

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Federal Reserve Bank of St. Louis

Member FDIC

California to Host ABA Ag Conference
OR the first time in its 32 year
history, the American Bankers
F
Association’s National Agricultural
Bankers Conference will take place
on the West Coast, in Los Angeles
at the Bonaventure Hotel, Novem
ber 13-16, 1983.
“As the leading state for farm
cash receipts, growing the most di
verse crops from kiwi fruit to ar
tichokes, and with five of the
nation’s top ten agricultural lending
banks headquarterd there, it’s ap
parent that California should host
the nation’s most comprehensive ag
ricultural banking conference,” ex
plained Fred W. Greer, conference
planning committee chairman.
‘‘Today ’s Problems... Tomorrow ’s
Opportunities in Agribanking” is
the theme for the 1983 conference,
sponsored annually by the Agricul
tural Bankers Division of the ABA.
“Agri-bankers must look beyond
their industry-wide economic prob
lems and identify new opportunities
available to ensure a healthier in
dustry,” the conference chairman
explained. Mr. Greer is also senior
vice president of Citizens and South
ern National Bank, Atlanta, Ga. Ag
ricultural banks financed more than
34% of the nations’ non-real estate
farm debt as of year end 1982.
Representatives from the Admin
istration and Congress will partici
pate on the conference program to
discuss future farm programs and
policies for improving the profitabil
ity of agricultural customers.
C. Robert Brenton, president of
Brenton Banks, Inc., Des Moines,
la., and the ABA president-elect will
lead off the program, along with a
panel of Newsweek reporters who
will provide insights into current
domestic and international econom
ic events shaping world news.
Arkansas Senator David Pryor
will address the attendees as will
Gordon Van Vlaeck, California’s
Secrtary of Resources.
Others participating on the pro
gram inlcude Walter Minger, senior
vice president, Bank of America,
San Francisco; Michael Boehlje, pro
fessor of ecnomics, Iowa State Uni
versity; A. Gene Newson, extension
farm management specialist, Ore
gon State University; Arlan Tengwell, senior vice president, Norwest
Corp., Minneapolis, and Alan
Tubbs, president, First Central
State Bank, DeWitt, la.

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A current issues forum will deal
with results of a major research pro
ject sponsored by the Agricultural
Bankers Division on the cooperative
farm credit system and its compet
itive impact on commercial banks.
Industry experts and banking
peers will lead discussions on a
variety of specific issues and general
session topics that are keyed to sub
ject areas such as government and
regulatory directions, current is
sues, the economic outlook, market
ing insights and agribanking.
Topics for these in-depth discus
sion sessions include risk in pricing
credit and services, credit decision
making, effective loan monitoring,
turning problem loans into earning
assets, bankruptcy, helping agricul
turally related community business
es survive, financing agri-business
es, assisting the agricultural cus
tomer to reduce production risks,
marketing tips, bank marketing
strategies, and microcomputer ap
plications.
Rounding out the list of topics are
export financing, irrigation consid
erations for financing, farm labor
developments, microcomputer soft-

ware, helping the agricultural cus
tomer survive, banking in a dereg
ulated environment, export finan
cing opportunities and an agricul
tural commodities outlook.
Additional conference activities
include an exhibits area featuring
products and services associated
with agricultural finance and bank
ing, a diverse spouses program
which will take advantage of the
southern California location and a
post-conference tour of California
agricultural resources. •
For further details contact Steve
Brush at (202) 467-4850, or write the
American Bankers Association, Ag
ricultural Bankers Division, 1120
Connecticut Ave., NW, Washing
ton, D.C. 20036.

Fed Approves Holding
Company for Hayward Bank
The Federal Reserve Bank of Min
neapolis, acting under authority
delegated by the Board of Gover
nors of the Federal Reserve System,
announced its approval July 18 of
the application by Peoples Bancshares of Hayward, Inc., Hayward,
Wis., to become a bank holding com
pany through the acquisition of The
Peoples National Bank of Hayward.

BAI Announces Convention Program
£ £ I NCRE ASING Bank ProfitabilIity” is the theme of Bank Ad
ministration Institute’s National
Convention, scheduled for San Fran
cisco on September 18 through 21.
Convention sessions will address
the theme from the perspectives of
financial planning, new technology,
and the implications of emerging
bank issues.
Topics included in the financial
planning category will be asset/liability management, risk-rated de
posit insurance, loan pricing and the
maximization of shareholder equity
growth at community banks. Tech
nology sessions will cover video fi
nancial services, home retail bank
ing, supermarket banking, micro
banking, and improving float man
agement through operational pro
ductivity.
Emerging issues discussed will in
clude staffing to meet competition
in a deregulated market, use of man
agerial leverage to increase profits,
control of non-interest expense, and
bank performance.
The keynote address at the con-

vention will be delivered by Richard
J. Flamson, chairman and chief ex
ecutive officer of Security Pacific
National Bank, Los Angeles. Other
speakers include: William M. Isaac,
chairman, Federal Deposit Insur
ance Corporation; Anthony M.
Frank, chairman, president and
chief executive officer of First Na
tionwide Savings, San Francisco;
John H. Fisher, senior vice presi
dent, BancOne, Columbus, Ohio;
and Dr. Robert Schuller, a motiva
tional speaker.
Convention activities and ses
sions will be held in San Francisco’s
Mosconi Convention Center where
the Exhibit Hall will also feature the
displays of more than 100 firms sup
plying equipment and services to
the banking industry.
Convention headquarters will be
located at the Fairmont Hotel on
Nob Hill. Complimentary shuttle
bus service will be provided between
Mosconi Center and the Fairmont,
Mark Hopkins, Westin St. Francis
and Hyatt Regency Embarcadero
hotels.

Robb B. Kelley
Chairman, Employers Mutual Companies

“Insurance
is our business.
And we
intend to stay
0 a

That’s our com m itm ent to businesses throughout the
midwest; a com m itm ent we began in 1911 w hen the / 1
first workers' compensation law was passed in Iowa a I
Today, in addition to w orkers’compensation,
Em ployers M utual C om panies offers a full
range of insurance services tailored to your in
dividual business needs.
Our slogan says it best— We’ve Got What It
Takes.
W e’ve got the products. From general to
specific coverages, including commercial auto,

w orkers’ com pensation, all forms of property and
liability coverage and special package policies.
We’ve got the service, too. Personalized local
service through our branch and service offices
throughout the midwest, and the professional
independent agents w ho represent us in your
hometown.
Simply stated, w e’ve got the com m itm ent
to the business of business insurance-, a com
m itm en t that has helped us to grow, and
will help your business grow.

W E’VE GOT WHAT IT TAKES

Employers M utual Com panies
Des Moines, Iowa

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Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1983

ToSucceedInBusiness
OnemustBeUleUConnected

When your company is connected to the
N orthw estern Bell Inform ation N etw ork, it’s not
ju st connected to the biggest netw ork in town, o r
even the biggest in the nation.
It’s connected to the biggest inform ation
netw ork in the world.
In fact, it’s p a rt of a netw ork th a t moves
90% of all business inform ation. In addition
to voices, the NW B Inform ation N etw ork moves
com puter data, graphics and video signals.
You can use it to take orders electronically,

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®1983. NORTHWESTERN BELL

( O J Northwestern Bell The Information Network.

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Federal Reserve Bank of St. Louis

Annual livestock
and ag outlook
-A N orthw estern Banker Survey-

Among calves, the highest price projected was $75 and
HE continuing depressed farm economy, now given
T
two replies projected a low of $55. For yearlings, the
_
an added severe blow by the worst midwest drought
range was $67 and $50.
since 1936, will not change appreciably for the better in

•

coming months. That is the collective view of respon
dents to the N o r t h w e s t e r n B a n k e r Annual Live
stock and Ag Survey conducted among experienced
agricultural bankers in upper midwest and mountain
states and published year in this September issue.
The hopeful caveat reserved by some respondents for a
better crop outlook contingent on good rains by midAugust dried up and blew away when temperatures
consistently hovered from the mid-90s to over 100
degrees across a wide stretch of northern states through
the third week of August. Limited rainfall aided relative
ly few counties.
However, it should be pointed out that, in keeping with
agricultural tradition of always replaying on "hope” for a
better "tomorrow” or "next year,” it appears that the PIK
program will give a great many farmers guaranteed
income through grain they can sell at higher prices than
a year ago, due to the reduced yields this year.
The survey contained two parts — the Livestock and
Crop Survey and the Ag Financial Survey, each contain
ing four questions. Details of replies to those questions
follow:

Livestock and Crop Survey
• What price range do you expect for: steer calves
yearlings this fall, and the fat cattle market (steers)
next spring and fall?
Per ctw
Steer calves this fall
$65.88
Steer yearlings this fall
$60.30
Fat cattle next spring
$62.38
Fat cattle next fall
$62.32

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Federal Reserve Bank of St. Louis

Q * What do you anticipate in your area for hog prices
this fall: Feeder pigs; finished hogs?
Feeder pigs (40#)
Finished hogs

$35.00 each
$45.42 cwt.

The bulk of anticipated prices hovered around the
averages shown.
Q » So far as numbers of farm operators feeding cattle
in your area, are you experiencing: More feeding, less
feeding, no change?
None of the respondents checked "more feeding,” while
62% said "less feeding” and 38% replied "no change.”
One banker who said there is less feeding in his area
said "there is no enthusiasm at this time.” One who
stated "no change” from one year ago added, "dramat
ically down from 10 years ago.”
Q . How do you assess the crop outlook in your area at
this time? (These comments were submitted during the
first 10 days of August. As noted earlier, little or no rain
fell across the com belt by August 22, and temperatures
continued in the upper 90s and over 100 degrees of
temperature.)
Responses were mixed, but well below any normally
good crop. Those bankers in irrigation areas reported
their crops in much better shape — sugar beets, corn,
hay, etc., but those without irrigation were mostly dry.
Tfen percent of respondents listed area crops as excellent,

Northwestern Banker, September, 1983

30% as good and only 10% average. The other 50% was
distributed as 25% fair, 15% poor and 10% questionable.
Comments reflect a downgrading for the outlook in the
event of no rains by mid-August:
"Very questionable, since rains are spotty. Yields likely
from 65% to 90% of normal.”
"Our average much better than many areas in Iowa.
We have been getting timely rains. The month of August
will be very critcal in determining yields for both com
and beans, depending on rainfall. It has been very hot
and dry.”
"If no rain within the next week (received August 9),
crop prospects are very grim. Already cut 20% or more.”
Allan Larson, president of Farmers State Bank in
Winner, S. D., reported: "Excellent grain crop — row crop
will have a race with the frost.”
G. A. Redding, president of Windom State Bank,
Windom, Minn., said: "Fair. Late planting; slow emer
gence; late June rains drowned out 5-10% of the crop.
Drought now taking out high, light soils.”
Gene Noell, vice president at Omaha National Bank
in Omaha stated: "Eastern Nebraska crops look remark
ably well (August 5) considering the extreme heat that
we have experienced through late July and early Au
gust. Rainfall the past 30 days has been only slightly
more than one inch. If rain is received soon we will have
a good crop. At the present time we are on a day to
day basis.”
Ed Claussen, president of Farmers State Bank,
Schleswig, la., commented: "Looking good yet (August
8). Need a rain in the next 10 days to prevent substantial
reduction in yields.”
Tidly Vashus, president, First National Bank, Glen
dive, Mont., wrote: "1. Winter wheat average yields, but
protein down. 2. Spring wheat below average due to heat
and drought. 3. Com looking good; all of ours is irrigated.
4. Sugarbeets should make average crop; plenty of water
to date.”
Minnesota banker: Canning crops (peas and sweet
com) down substantially. Corn and soybean prospects are
down 20-25% and could be more if rain is not received
soon. Much of our crop has been late and uneven since
spring planting.”
K. R. Zandstra, president, Citizens Bank of Mobridge, S.D., reports: "Small grains are generally good.
Row crops are generally good now, but moisture needed
shortly (August 10).”
Illinois banker: "Poorer each day after six weeks of
only .40 inch of rain.”
Ivan E. Danner, president of Streator National Bank,
Streator, 111., observed August 12: "Severely stressed.
Average yield down 50% to 70%.”
Louis G. Titus, president, First National Bank,
Holdrege, Nebr., gave a typical report contrasting irri
gated land with dryland farming this year: "High per
centage of irrigated land which looks excellent. Remain
ing dryland crop fair, but deteriorating due to lack of
rainfall (August 12).”
Arlan V Tbngwall, senior vice president for agricul
ture with Norwest Corporation, Minneapolis, says: "We
essentially follow a six-state area (Minnesota, Iowa,
Nebraska, North and South Dakota, Montana). A gener
ally good grain crop has been hurt somewhat here and
there by the heat spell. Beans and corn are good, though
rains are crucial now (August 12). An exception here is

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

the area south of an east-west line through Ames, la., ^
where drought has hurt sizably, especially the southeast
quarter of Iowa.”
Daniel J. Lessard, president, First American Bank
and Thist, Grafton, N. D., has a different kind of report
for his area: "Small grain yields are going to be disap- q
pointing as much as 10 to 20% below average. Soybean
and pinto bean crops look in very good condition at this
time and will experience good yields if we do not
experience a frost before the middle of September. The
sugar beet crop has the best stand in a number of years £
and most producers are projecting at least a 20-ton yield.
Potato yields are expected to be about average in
comparison to the past years.”

Ag Financial Survey

Some farmers have been highly leveraged; some
have been less leveraged; others have little or no debt.
Amont the following groupings of customers, how would #
you assess their financial condition at this time com
pared to one year ago: highly leveraged, moderate to low
leverage, little or no debt?
The ag bankers rate those farm customers as shown in
this chart:
0
Chart No. 1
Among the following groupings of customers, how would
you assess their financial condition at this time compared
to one year ago?
Highly
Moderate to
Leveraged Low Leverage
Much better
5%
A little better
16%
38%
About the same
26%
43%
Slightly worse
42%
14%
Much worse
16%
100%
100%

Little or
No Debt
31%
53%
16%
100%

• What percentage of your ag loans dollar volume
Deen made to the three customer groups listed in the
above question?
Chart No. 2
What percentage of your ag loans dollar volume has been
made among the three customer groups listed in Chart No. 1?
Highly
Leveraged
27%

Moderate to
Low Leverage
58%

Little or
No Debt
15%

One bank reported 80% of its ag loans dollar volume is
tied up with highly leveraged farm customers; two
reported that figure at 50% and two at 40%. On the low
side, five banks reported only 10% tied up with highly
leveraged customers.
In the moderate to low leveraged category, 40% was
the low for three banks, except for the bank noted above
that has 80% tied up with highly leveraged people — it
listed 15% of dollar volume with moderate to low
leverage and only 5% with people who have little or
no debt.
In the little or no debt category, one Iowa bank is in the
enviable position of having 50% of its volume tied in with
those who have little or no debt. Most responses ran from
4% to 20%.

£
w

Ccj^e How do you rate the impact of the PIK program on
agriculture in your area?
Chart No. 3
How do you rate the impact of PIK on agriculture in your
area?
High
Medium
Value
Value
47.6%
42.8%
90.4%

Low
Value
4.8%

No
Value
—

Undecided
—

Not
Needed
4.8%

One banker noted, "With the dry weather, PIK has
become an even bigger factor because income is guaran
teed,” while another noted "negative for feeders and some
® ag suppliers.”

• Have any ag-related businesses in your town
folded in the past 12-24 months? If "yes,” how many and
folaei
what types of businesses were they?
Chart No. 4
Have any ag-related businesses in your town folded in the
past 12-24 months? If “ Yes,” how many and what types of
businesses?
No
Yes

47.4%
52.6%

Among businesses that closed their doors, half were listed
as implement dealers (12). A much smaller number included
fuel suppliers, fertilizer dealers, building contractors and
hardware stores (two each among the respondents). Shoe
repair, grain drying and storage, and livestock sales barn
were each listed once.

The respondents then were asked: "What’s the imme
diate outlook for the rest of the ag-related firms in your
town? Here are some of the comments:
"Manufacturing firms producing products for major
suppliers of ag equipment are the hardest hit — for
example, foundries. The seed corn plant will be much
lower in production due to drought conditions. Yields of
some numbers apparently are very questionable.”
"Implement dealers are probably suffering the most
from lack of both used and new machinery sales.
Hopefully, the improved grain prices will improve the
agricultural economy. Unfortunately, most of our 1982
crops have been sold.”
"Guarded. Other equipment dealers are holding their
own at present. Farm supply businesses are going to see
a lot of red ink. If they stay or not depends on their
capital structure. If crop yields are severely cut back, the
result could be no PIK for 1984 and the farm supply
business volume would go back to or exceed normal.”
G. A. Redding, president, Windom State Bank, Windom, Minn.: "Farm equipment dealers will continue to
have hard going in the short run as big farmers will have
to reduce debt before they can think about buying.”
Ed Claussen, president, Farmers State Bank, Schles
wig, la.: "Those soundly managed will survive in good
shape.” Mr. Claussen then adds, "If grain prices hold and
we raise a good crop, farmers with debt problems surely
should cash in and reduce carryover debt and their
interest load. The livestock industry will not be what we

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Federal Reserve Bank of St. Louis

33
would like to see, but 'one in the hand is worth two in the
bush.’ ”
Tlilly Vashus, president of First National Bank in
Glendive, Mont., observes: "They must reduce their
inventory to survive lower sales volume and high inter
est rates. With proper management they should survive
for awhile.”
TWo Illinois bankers comment: "If weather will only
change and we get some good rain...outlook 15 days ago
was good (written August 12) but if present conditions
continue another week or 10 days — poor.” and "Difficult
times. Tbying to hold on. Outlook dim. Poor crops.”
Louis G. Titus, president, First National Bank in
Holdrege, Nebr., gives a different viewpoint: "Immediate
outlook is promising for improvement in our local
economy due to PIK, irrigation and improved prices.”
Paul Gandrud, president of Swift County Bank in
Benson, Minn., agrees with a brighter prospect: "We
think it looks much better considering good crop pros
pects and higher grain prices.”
Arlan Ttengwall, senior vice president, Norwest Cor
poration, Minneapolis, speaking from a several state
viewpoint, notes: "I believe those in wheat/cattle
economies will see little change; i.e., more slow and low
demand while repairing, 'make do,’ buying used stuff. In
contrast, excepting drought problem areas, corn/bean
economy dealers will see a turn-up in sales last quarter
1983 and into 1984, in my opinion. This results from
backlog of demand and a profitable 1983, considering
price rise on raised crop and PIK bushels. I also feel 1984
will see considerable land back into production, so input
supplies and sales will return accordingly. In my opinion,
there is a segment of producers who are quite able to
'step out’ and do some buying if they feel the timing is
right. They will feel more that way in late 1983 and into
1984 than they have for several years.”
Don Babbitt, president, Stockgrowers State Bank,
Worland, Wyo.: "This area depends heavily on malt
barley and sugar beets, which are both contract crops.
Even though prices are tight with both crops, farmers
are able to keep most machinery replaced, and purchases
of farm supplies are about what they were a year ago.
Our businesses that are dependent on the livestock
business are hurting, due to the poor livestock prices the
last several years.”
Dan Lessard, president, First American Bank and
Thist in Grafton, N.D., offers these comments: "Our agrelated firms are hurting for a variety of reasons. Over
the past two years, commodity prices caused an overall
poor economy. The PIK program also lowered purchases
made by our farmers. The price increases in some of our
row crops are expected to spur ag-related businesses.
Equipment sales should increase in these areas due to
conservative purchases by our farmers in the past few
years. Most of our farm suppliers were slightly hurt by
the PIK program, but not as much as expected.
"Because of the expected 1984 farm program, we
anticipate very few farmers to participate in any setaside program next year. This could result in a good year
for farm suppliers. We have a number of farm manufac
turers in our area who manufacture specialized equip
ment for row crops. Like the machinery dealers, these
ANNNUAL AG OUTLOOK SURVEY ...
(Turn to page 66, please)
Northwestern Banker, September, 1983

Meet the 1983-84 ABA president:

Bob Brenton—
Banker and Farmer
A

interview with
C. ROBERT BRENTON
President-Elect
American Bankers Association
President
Brenton Banks, Inc.
Des Moines, la.

N orthwestern B anker

HEN the new president of the American Bankers
W
Association for 1983-84 is installed in office during
the annual convention in Honolulu on October 11 , ABA

members will have a president who has:
• First-hand knowledge of today’s critical farm prob
lems as a life-long grain and livestock farmer.
• First-hand knowledge of the advantages, as well as
today’s critical problems, of community banks.
• First-hand knowledge of managing a 16-bank, near
billion dollar asset multi-bank holding company.
• First-hand knowledge of how ABA works for banks
of all sizes, in the legislative arena, in membership
services and in education.
• First-hand acquaintance with bankers from all sizes
of institutions coast to coast.
That is the broad, but deep and time-tested array of
talent that C. Robert Brenton will bring to the responsi
ble position of president of the ABA when he assumes
that post at the Honolulu convention after serving this
past year as president-elect.

A Sense of “Deja Vu”
For those older bankers who may have attended the
ABA conventions 30 years ago, this range of talent and
the name Brenton may bring a sense of "deja vu” and it
would be justified, for Bob Brenton will be starting his
term of office exactly 30 years after his father, W. Harold
Brenton, was finishing his term as ABA president in
1953! Harold Brenton was ABA’s top man for the 1952-53
term, the first Iowan so selected. His son, Bob, will be
only the second Iowa banker so honored by his fellow
bankers, and it will be the first father-son combination as
ABA presidents in the history of the organization.
Harold Brenton died in September, 1968, leaving a
legacy of the first bank holding company formed in Iowa,
three sons to manage the banks and holding company,
and a record of distinguished service to both the Iowa
Bankers Association and the ABA.
Harold Brenton was president of the Iowa Bankers
Association in 1947-48. Bob held that IBA post in 197677. Before being elected ABA President-Elect at the 1982

THREE Brenton brothers are pictured at left at entrance to Capital Square, the new head
quarters for Brenton Banks, Inc., and at right in the conference room discussing reports
from the banks at one of their regular meetings. From left to right, in both photos, are: J. C.
(Buz) Brenton, exec. v.p. & treas. of the holding company; Sob Brenton, pres., and William
H. Brenton, chmn.

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•

convention in Atlanta, Bob had served ABA on the
government relations and political action committees
and also as a BankPac regional chairman.
Harold Brenton always encouraged each Brenton staff
member to put something back into the banking busi
ness that supported them, particularly in each commu
nity. An offshoot of this is that Thomas R. Smith,
president of Fidelity Brenton Bank & Thist Company in
Marshalltown, the second largest bank in the Brenton
system, served as ABA treasurer for a two-year term
several years ago. The late Helen Rhinehart, who had
one of the longest tenures with the Brentons of any
employe, served as NABW national president, and then
a few years later Betty Steele, vice president and
corporate secretary of Brenton Banks, Inc., also was
elected NABW national president.
Bob Brenton not only inherited a share of his father’s
interests in Brenton Banks, Inc., but also his capacity
and desire for hard work, long hours and a strong sense
of duty to his customers, community and industry. Why
would a banker who has achieved financial success and
has plenty to do at home with his own organization want
to yield the time it takes to serve as ABA president? We
asked Bob that question and he responded:
"It’s a process. It happens by accident. I had no
thoughts of this years ago. The position of Iowa Bankers
treasurer was open so I thought it would give me a
chance to learn more and be a part of my association. It
grew from that by osmosis. I attended leadership meet
ings, went a few times to the halls of Congress and saw
how things were done. I guess I thought I had the same
beliefs in the banking business — the financial services
business — as my banker friends and that if I represent
the beliefs of others I might have just as much weight as
another person might.
"I’ve always been taught to be politically active, as
well as active in our business association. That’s been a
way of life for our family. It’s just the democratic system
at work. If you’re not part of the system directing your
life, then others will do it for you and you may not
like it.”
That philosophy motivated Bob Brenton through his
several years of service with the Iowa Bankers Associa
tion and, in more recent years, with ABA.
Three Brentons Share Responsibility
The road leading up to and continuing during that
association service tells ABA members what they will
have as their leader for the coming year.
First of all, Bob has two brothers, William H. Brenton,
58, and J. C. (Buz) Brenton, 48, with whom he works
closely on a day-to-day basis in management of Brenton
Banks, Inc., from Des Moines headquarters in the new
Capital Square Building they moved into when it opened
early this summer. With that move they brought their
flagship bank, Brenton National Bank of Des Moines, to
this new downtown location. The former location at 29th
and Ingersoll in a small business-residential area of the
city, has been retained as an office. The occasion also
culminated the merger of two other Brenton banks in
Des Moines into Brenton National, while retaining
offices at the three outlying locations. This three-bank
merger created a single bank with about $200 million in
assets. The other 15 banks in the Brenton system have
about $630 million deposits together.
Referring to the executive management of the holding

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35
company, Bob Brenton says, "We three brothers operate
as joint CEOs — rather unusual, but it works. We trade
jobs from time to time. This involves various aspects of
the holding company and its subsidiaries and the mem
ber banks. For example, we’ll each oversee certain banks
for a particular period of time. Right now I’m looking
after loan administration and personnel; my older
brother, Bill, has investments and the data center, and
Buz is in charge of the overall finances of the company.
We’re now a public company so this involves Buz closely
in relations with investment companies and the public,
so mainly he manages our internal financial affairs.
Because of that responsibility, Bill and I do most of the
job trading.
"The value of this is to keep all of us familiar with the
various parts of the organization. We don’t trade every
thing, of course; mainly the rotation is with the banks.
This keeps us familiar with the personnel and local
customers. We call this our third stage of growth.”

Bob Brenton examines some of the material he receives daily
from ABA on the wire machine installed in his office.

Family Enterprise Has Grown
Bob ruefully recalls, "I used to know every loan over
$10,000! I also used to figure our income tax on the back
of an envelope! Now, we have several auditors and
accountants on staff. As you can tell from this, we have
grown to the point where we must specialize, so at the
holding company level we have loan administration,
marketing and trust, and soon we will have investment
administration and personnel administration. Our mar
keting person does the sales training used at each of the
banks — this is a job officers of the holding company used
to do part-time.”
Brenton Banks, Inc., actually has five primary sub
sidiary companies:
1. Brenton Mortgages, Inc., a wholly-owned mortgage
banking service company.
2. Brenton Insurance Services, Inc., a newly activated
subsidiary serving the insurance needs of affiliate banks,
which pursues outside insurance business and manages
the company’s insurance agency.
3. Brenton Agri-Credit Corporation, wholly-owned by
10 of the banks and assists them in funding Brenton’s ag
lending needs.
4. Brenton Funds Transfer System, Inc., which owns
Northwestern Banker, September, 1983

agri-business as the strong part of our business now and
in the future. We have management by objective at the
holding company and all the banks, setting objectives
annually. Each bank has a plan that is agreed to and we
have a bonus plan that is related to it for top officers of
each bank. Also, each bank has its own officer staff and
board and it’s their job to meet those objectives.
"We meet quarterly with CEOs; sometimes more often.
However, Bill and I usually are in five to seven banks
each on a monthly basis. One of the things we’re very
proud of is that we still have many employees who have
been with us 25 to 30 years or more. Among our top
officers, this has been their first job, and that kind of
loyalty and experience is what gives our banks the
continuity that is so helpful.”
Agriculture a Key Part
That concentration on agriculture as the core of
Brenton banks’ business has been a part of Bob Brenton’s
Bob’s daughter, Jane, who worked at BBI this summer and now
has returned to college, visited her father during the accompany
life since he was a youth. Although bom in Des Moines
ing interview. The rolltop desk behind them came from the base
(April 24, 1930), he spent his summers on the farm with
ment of the original Brenton bank, Brenton State Bank in Dallas
grandparents
in Iowa. Throughout his high school and
Center, and belonged to Bob’s grandfather, Charles Brenton.
college years he worked on the Brenton farms, now a
That bank was founded a century ago by great-grandfather
William Brenton.
separate corporation from Brenton Banks, Inc., which
comprise more than 6,000 acres of good, mid-Iowa land,
and operates a network of electronic banking and pointand he continues to this day to spend as much time as
of-sale terminals.
5.
Brenco Automation Center, Inc., the data process possible at the farms where grain and livestock are his
hobbies. "Farming is my Saturday 'golf,’ ’’Bob explained
ing subsidiary which provides programming and com
with
a grin as we walked through dusty fields and
puter services for the holding company and its bank
examined market-ready cattle and hogs in Dallas Coun
affiliates.
ty, just 25 minutes from his modem, new office in
This network of 16 banks and five affiliates grew from
downtown Des Moines.
four banks when Brenton Brothers, Inc. (now Brenton
He is a 1949 graduate of Thft School in Watertown,
Banks, Inc.) was organized in 1948 with assets of about
Conn., and received his BS in Agriculture degree from
$30 million. Contrasted to that is the 1982 year-end
Iowa State University at Ames in 1953. That was
report, a 44-page, multi-color report to stockholders that
another Brenton tradition, for most of the ag graduates
showed assets of $864,073,000, deposits of $740,000,000.
the company has employed are ISU graduates. After a
By August 1 those figures had grown to $929 million
stint with the United States Army, he was discharged as
assets and $829 million deposits. There are now 800
a 1st Lieutenant in the Field Artillery in 1955 and went
employes. The first comment in that annual report by
directly
to work for the family enterprises. His interest
Bob Brenton is a key: "From a single rural bank in 1881,
was in helping manage the family farms, but he soon
Brenton has grown to serve Iowa’s prime agricultural
became more involved with the banking business of
and metropolitan markets.”
Brenton Banks, Inc.
The Brenton Philosophy
When his father, Harold Brenton, died in September,
1968, Bob became president of Brenton Banks, Inc.,
That report also outlines the guiding force of the
succeeding brother Bill, who followed his father as
company: "Our philosophy of banking has focused on
chairman. He continues to hold that position today.
working to help Iowans. We have strived to assist our
Bob is married to Babette Conner and they have five
customers to become financially successful. We are
children: Carroll B. Michalek, Babette Jane, William
committed to furthering our employees’ careers. And we
Harold, Mary Melissa and Babetta Christine.
are dedicated to improving the quality of life in the
communities we serve.”
Some Deep Feelings
The new Capital Square headquarters, and the con
solidation of the three Des Moines banks into one was
It is in the area of agriculture that Bob Brenton has
intended "to offer more corporate services, loans, funds
deep feelings. "Unless country banks can find some way
management, trust services and employee benefit funds
of competing with the Farm Credit System, especially
management services, in order to give the holding
the PCAs, they’ll wipe us out,” he emphasizes. "Espe
company more diversification,” Bob Brenton relates.
cially, because they can get advances of money on
"Presently, ag loan demand is low, but we still have
national markets much cheaper than we can normally,
distribution among all our banks of loans in almost
and besides they have a tax advantage. It isn’t that I
four equal parts — ag, commercial, real estate and
want to charge farmers more money. I want to have
personal loans.”
equality for banks in the ag lending area. I told Sen.
Staffing the management of 16 successful banks, as
(Roger) Jepsen (la.) two or three years ago when legisla
well as the five operating subsidiaries, is no small task.
tion on this was pending that some day when the Farm
The impact of agriculture at all levels on Iowa business
Credit System has all the farm business, we may have to
and industry is reflected in the fact that "we have 50 ag
say, 'Here, Senator, you run the bank now. We don’t have
graduates in our company,” Bob stresses. "We look on
any ag business!’

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Banker Brenton becomes Farmer Brenton, looking over a few
head of market-ready registered steers in the market lot at the
Dallas County farm.

"The PC As continue to have a major marketing
program to take customers from banks. It’s well-planned
and a well-financed program. I don’t know how to solve
the problem, but it’s one thing I’ll have a personal
interest in this year, on behalf of community banks. It
will take time. It’s a political issue and I wouldn’t expect
it to be solved in a year.”
Market Share Is Big Challenge
Bob’s forthrightness carries into other areas of banker
concern, including banking competition and the future.
"I see the biggest challenge to banks today is regaining
their market share,” he says. "In 1949, of the total
financial services assets, banks had 52%. Thirty years
later, in 1979, it was 37%. Three years later, by the end of
1982, it was down to 36%!
"In those areas where we were not allowed, others are
allowed, offering their activities plus ours — checking
accounts and so forth. Tbday you don’t have to have a
bank charter to be in the banking business. The world
has changed during these years. Look at the technologi
cal, communications and transportation systems, the
education of our customers. The number of financial
products out there that the public wants and uses has
changed dramatically and we’re excluded, of course, from
a great deal of that. The ABA since 18 to 24 months ago
has been driving toward allowing banks to have such
financial services as full insurance agencies, with under
writing and brokerage; real estate agencies, for both
brokerage and development; investment banking, in
cluding brokerage; telecommunications; data processing;
management consulting and more.”
He realizes some of these changes are controversial
within the banking industry itself. "However,” he notes,
"I have met with many bankers in many states and I’m
ever amazed by the progressiveness of bankers I meet in
both large and small banks, so I feel the ABA is serving
all of its members. You worry sometimes about how far
forward our bankers are looking. Well, I can tell you from
my experience that today they are younger, they’re

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educated differently, they’ve traveled world-wide, they
themselves have used other finanical services and under
stand them, and they’re progressive. I find that as these
changes become apparent they see opportunities for new
profit, new growth.
"It is going to take energy to achieve this, and those
with energy are going to seize the opportunities, and
those who lack energy are going to perceive this and not
like it.”
Nostalgia Amid Modern Scene
At this point, Bob leaned back in his chair and recalled
with a smile, "You know, when I was a boy I used to stay
with my grandparents on the farm in the summers. He
had no tractors, just horses. He did have a Model A to go
to town where he would trade staples for supplies. He
didn’t need a bank. He just didn’t need to change. My
grandfather used to say tractors pack the ground and
scare the livestock so they wouldn’t gain, and you’d have
surplus of hay that couldn’t be sold. Now, funds from that
same farm might be invested overnight in London in
Euro-dollars! We live in a world-wide market where 40%
of all our ag goods are exported, and 10% of all jobs in
this country depend on exports. So, change has to go on.”
After that nostalgic reflection, he got up from his chair
to look out his third floor window at the modernistic new
Civic Center Plaza just below his window, with the W.
Harold Brenton reflecting pool area where youngsters
were wading, and many adults were eating lunch or
resting. Just across the street a block away is Des
Moines’ beautiful Civic Center. He turned after a mo
ment and said, "I love to look out there and see people
enjoying this beautiful area. Did you know our bank
gives away ice cream cones down there once a week?”
Community Banks Will Survive
Returning to our discussion, Bob went back to his basic
point about the future of community banks. "ParaphrasBRENTON INTERVIEW ...
(Turn to page 66, please)

A major enterprise at the Brenton farm is the extensive hog
raising project. Here, John Thomas (left), veteran manager of
Brenton farms, shows Bob and his son, Bill, some of the market
grade hogs in the confinement barn. It took awhile to find Bill,
who works at the farm in the summer between semesters at Iowa
State University, where he Is now a junior. When Bob inquired for
his son, John said, “ He’s over cleaning out one of the hog barns.”
The temperature hovered in the high 90s. Bob turned with a know
ing smile and slight shake of the head and commented, “ That’s
how I started!”
Northwestern Banker, September, 1983

W.H. KENNEDY, JR.
President

C.R. BRENTON
President-Elect

A.R. PIKE
Treasurer

W.W. ALEXANDER
Exec. Vice Pres.

Honolulu will host ABA, October 8-12*
ITH BACKDROP reminders of war-time battles
W
of earlier years, Honolulu will be host for the
American Bankers Association’s 109th annual conven

tion, October 8-12. Among the expected 15,000 banker
and spouse registrants will be many whose military
service saw them stationed in or passing through
Hawaii in WWII, the Korean and Vietnam wars. This
time, those veterans and their fellow bankers will be
looking for answers to the serious challenges facing
banking in today’s rapidly changing social and eco
nomic environment.
They will find an exciting program that responds in
abundance with quality speakers to the practical, dayto-day needs of today’s professional banker. As ABA
President William H. Kennedy, Jr., states, “No one
should be fooled by this year’s idyllic setting. This will
be a no-nonsense, nuts-and-bolts convention from
which attendees will benefit for years to come.’’ Mr.
Kennedy is chairman of the National Bank of Com
merce in Pine Bluff, Ark.
He will preside at the two general business sessions
on Monday and Tuesday. The president-elect scheduled
to succeed Mr. Kennedy as ABA president for 1983-84
is C. Robert Brenton, president of Brenton Banks,
Inc., Des Moines, la., a statewide multi-bank holding
company. Mr. Brenton’s father, the late W. Harold
Brenton, who founded the holding company in 1948,
completed his term as ABA president just 30 years
ago in 1953. They are the only father and son to serve
as ABA presidents.
Serving as treasurer the past two years has been Al
bert R. Pike, chairman of Bank One of Northeastern
Ohio, N.A., Painesville. Heading ABA’s staff of associ
ation professionals at Washington, D.C., headquarters
is Executive Vice President Willis W. Alexander.
The nominee for president-elect is James G. Cairns,
Jr., president of People’s Bank of Washington, Seattle.
Mr. Kennedy will automatically move to chairman of
The ABA Council. The nominee for a two-year term as
treasurer is Harry R. Mitiguy, president and chief ex
ecutive officer, Howard Bank, Burlington, Vermont.
This will be the fourth time Honolulu has hosted the
ABA convention. The first was in 1969, then in 1974
the centennial convention, and again in 1978. Next
Northwestern
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year’s convention is slated for New York City and the
following year in New Orleans.
The grand opening ceremonies will be held at 8:30
a.m. Saturday, October 8, complete with Hawaiian en- §
tertainment, at the Hawaiian Hilton Village. This fab
ulous 20-acre complex also will be the site for the ex
hibit center where more than 80 companies will display
their services and products.
A convention tradition, the ABA reception, will be •
held at the same location Sunday evening and at the
Sheraton Waikiki and Royal Hawaiian Hotels on Tues
day. Complimentary transportation between ABA
convention hotels and all ABA functions will be via
one of the the most extensive, modern, air-conditioned •
shuttle bus systems ever engaged for a meeting of this
size.
The program outline follows:
A.M.
Friday, October 7
10:00 Registration opens, Sheraton Waikiki
A.M.
Saturday, October 8
8:30 Grand opening ceremonies, Hilton Hawaiian
Village.
9:00 Opening of exhibits and activity center, Hilton
Hawaiian Village
10:30 Concurrent Sessions: Fed pricing, outlook for
agricultural banking, credit risk, disinflation,
new technology for delivering consumer services, and other timely topics, Hilton Hawaiian
Village
P.M.
1:30 Concurrent COMPETITECH Sessions: Con
trolling bankruptcy losses, pricing bank services, increasing personnel productivity, secon
dary mortgage market, Hilton Hawaiian
Village.
1:30 Spouse Session: Stress and the Family, Dr.
William D. Brown, clinical psychologist, Hilton
Hawaiian Village.
A.M.
Sunday, October 9
8:30 ABA Fellowship Gathering, Neal Blaisdell
Center
Speaker: Rev. Abraham K. Akala

•

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

Sen. Daniel K. Inouye (D., Hawaii)
Hon. Andre de Lattre, managing director-desig
nate, Institute of International Finance
ABA Pres. Kennedy

HON. GERALD FORD
Former President

HON.PAUL VOLCKER
Chmn., Federal Reserve

W.B. WRISTON

M. FRIEDMAN

Music: Hawaiian Symphony Orchestra and two
Honolulu church choirs
10:00 Exhibits and activity center opening, Hilton
Hawaiian Village
10:30 Open Meeting of ABA Government Relations
Council: House Banking Committee members
Doug Barnard (D., Ga.), Norman E. D’Amours
(D., N.H.), Chalmers P. Wylie (R., Ohio) and
Stephen L. Neal (D., N.C.), and Senate Banking
Committee members Jake Garn (D., Utah),
chairman, and Alan Dixon (D., 111.), Neal Blaisdell Center.
10:30 Concurrent Workshops: Credit card fraud, ex
ecutive incentive compensation, challenging the
nonbank competition, potential new lines of bus
iness, Hilton Hawaiian Village
P.M.
1:30 Spouse Session: Positive Aspects of Stress, Dr.
William D. Brown, clinical psychologist, Hilton
Hawaiian Village
6:00 “Hawaiian Rainbows” ABA reception, Hilton
Hawaiian Village.
A.M.
Monday, October 10
7:30 “Early Bird” Concurrent Sessions: Strategic
planning, small business financing, utilizing
bank service corporations, new product develop
ment, risk management, loan disclosure, vari
able rate lending, Sheraton Waikiki and Hilton
Hawaiian Village
9:00 Exhibits and activity center opening, Hilton
Hawaiian Village
9:00 General Session: Presiding—ABA President
William H. Kennedy, Jr.
Hon. Paul Volcker, chairman, Federal Reserve
Board
Walter B. Wriston, chairman and CEO, Citi
corp, New York
Northwestern
Banker, September, 1983

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Federal Reserve Bank of St. Louis

P.M.
1:30 Spouse Session: Stress Following Major Family
Illness, Dr. William D. Brown, clinical psychol
ogist, Hilton Hawaiian Village
1:30 Panel: “Banking Deregulation and Agency Re
organization”
C.
Todd Conover, Comptroller of the Currency
William M. Isaac, chairman FDIC
2:45 Concurrent “Meet the Regulators” Sessions
(three)
Office of CoC—Brian Smith, chief counsel; H.
Joe Selby, senior deputy comptroller, opera
tions; Doyle Arnold, senior deputy comptroller,
policy and planning; Michael Mancusi, senior
deputy comptroller, national operations; Jim
Boland, deputy comptroller, industry and public
affairs
FDIC—Thomas Brooks, general counsel; James
Sexton, director, division of bank supervision;
Stanley C. Silverberg, director, division of
research and strategic planning; Margaret L.
Egginton, deputy to the chairman
Federal Reserve—Michael Bradfield, general
counsel; John E. Ryan, director, division of bank
supervision and regulation; Griffith L. Gar
wood, deputy director, division of consumer and
community affairs
A.M.
Tuesday, October 11
7:30 Concurrent “Early Bird” Sessions: Coping with
kidnappings, loan workouts, bank service cor
porations, etc., Hilton Hawaiian Village and
Sheraton Waikiki
9:00 Exhibits and activity center opening, Hilton
Hawaiian Village
9:00 General Session—Presiding—ABA Pres. Ken
nedy
Milton Friedman, Nobel economist
Hon. Gerald R. Ford, former president of the
United States
Willis W. Alexander, ABA executive vice presi
dent
Election and installation of officers, Neal Blaisdell Center
P.M.
1:30 Forum and Workshops: Microcomputers and
their evaluation, selection and applications
within banks
1:30 Spouse Session: Stress and Better Health, Dr.
William D. Brown, clinical psychologist, Hilton
Hawaiian Village
3:45 Exhibit grand prize drawing
6:00 “Polynesian Nights” ABA reception, Sheraton
Waikiki and Royal Hawaiian
A.M.
Wednesday, October 12
8:30 Economic Outlook Panel: David Jones, senior
vice president, Aubrey Lanston & Co., New
York; Dr. Jerry Jordan, professor, University of
New Mexico (formerly a Reagan economic ad
visor); Robert Parry, executive vice president
and chief economist, Security Pacific National
Bank, Los Angeles, Sheraton Waikiki
□

CURVING white Waikiki Beach stretches from the Ala Wai
Boat Harbor to world-famous Diamond Head. (Hawaii
Visitors Bureau Photo)

version of the Empire State Building, with spec
tacular views of the city and harbor; Castle Park,
a nearby 16-acre amusement park; the Bishop
Museum, with exhibits ranging from rare historic
Hawaiian artifacts to an ultra-modern science
center and planetarium, and Iolani Palace, the on
ly royal palace under the U.S. flag.
A stay in Honolulu also should include visits to
landmarks outside of the city as well. Highlights
of Oahu, the island on which Honolulu is located,
include: Hanauma Bay, an underwater park; the
Blow Hole, a geyser in the volcanic lava; Kaneohe
Bay, where glass-bottom boat rides are offered;
Byodo-In, a replica of the Japanese Buddhist
temple; and Waimea Falls Park, containing an arboritum, a bird sanctuary, hiking trails, picnic
sites and hula and cliff-diving exhibitions.
For the sportsperson, there are more than two
dozen golf courses and more than 75 public tennis
courts in and around Honolulu. In addition, one
can deep-sea fish for marlin and sailfish, hunt for
wild pigs and goats in the nearby mountains, skin
dive in Shark’s Cove, hike on dozens of trails, or
swim, surf, sail, hang-glide or even ice skate (at an
indoor rink, of course).

San Francisco W ill Host
RMA’s 96th Fall Conference
Stephen T. McLin, senior vice
president and director of Strategic
Planning for Bank of America,
N.T.&S.A., San Francisco, will dis
cuss “Financial Conglomerates in
the 1980s” during his keynote ad
dress at the 69th Fall Conference of
Robert Morris Associates. The an
nual meeting of this national associ
ation of bank loan and credit officers
will be held October 30-November 2
in San Francisco.
More than 1,800 RMA members
and their spouses are expected to at
tend this year’s event. The program
will focus on a wide range of topics

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Federal Reserve Bank of St. Louis

For those whose interests lean more toward
dining than diving, Honolulu offers numerous
native delicacies such as the traditional luau
(feast) specialities, roast pig and poi, a thick paste
made from taro root. Local seafoods include mahimahi (dolphin), moi (mullet) and ahi (yellowfish
tuna). Fresh tropical fruits like mangoes, papayas
and pineapples abound. There’s even a native cof
fee - Kona.
If one doesn’t want to dine Hawaiian, however,
the choice of cuisines includes American, British,
Chinese, East Indian, French, Greek, Irish, Ital
ian, Japanese, Korean, Mexican, Morroccan, and
Vietnamese. For the homesick, there are many fa
miliar American fast food outlets, too.
The weather should be grand in October, with
an average daily maximum temperature of 82
degrees F and an average daily minimum of 72.
“Honolulu” means “fair haven,” and although
the name is believed to refer specifically to the
metropolis’ excellent harbor, the name certainly
could apply to the entire city — an idyllic location
for the ABA Convention.
□

FREE HULA SHOW is staged every Tuesday, Wednesday
and Thursday morning by the Waikiki Shell especially for
camera fans by Kodak-Hawaii, featuring Hawaiian, Samoan
and Tahitian dances. (Hawaiian Visitors Bureau Photo)

of interest to domestic and interna
tional commercial lending officers.
In addition to Mr. McLin’s key
note speech, major addresses will be
given by RMA President Jack R.
Crigger and Olaf Isachsen, Ph.D.
Mr. Crigger is executive vice presi
dent, American National Bank &
Trust Co., Chattanooga, Tenn. and
Dr. Isachsen is president, Institute
of Management Development, Oak
land, Cal.
During panel presentations and
small group discussions, the follow
ing topics will be covered: “pools of
risk,” or the need to expand the
definition of risk traditionally
associated with credit; asset-based
lending; microcomputers and the

loan officer; the outlook for real
estate lending; the RMA/Omega
Commercial Loans to Business pro
gram and how it is being used to
train lending personnel; loan quality
control; the effects of new call report
requirements on loan policy and ad
ministration; bankruptcy predic
tors; problem loan workouts; coun
try risk assessment in international
loan portfolio management; the ef
fects of deregulation of lending; and
international loan rescheduling.
Hosted by RMA’s Northern Cali
fornia Chapter, the Conference will
be headquartered at San Francisco’s
Fairmont Hotel. General Conference
chairman is Charles L. Fritz, senior
vice president, Barclays Bank of
California.
Northwestern Banker, September, 1983

Bond Swaps!
Three experienced professionals give
their assessments of this important tool
from these perspectives:
•ABCs of tax loss trading
•Bond swaps and A/L management

f p S
'xs&s&y

•Tax implications of bond swaps

/í« ^ ; „»y

P repared especially for readers of
T

orthw estern

ABCs of tax loss trading
.. .o r

How you can win by losing!
By NEVIN BOWSER
Vice President
The First National Bank of
Chicago, 111.
F YOUR BANK is in the 46% tax bracket, tax-loss
Imove.
trading in your bond account can be a profitable
Tax-loss trading is selling securities out of your
portfolio at a loss and investing the proceeds and tax
savings into new, higher-yielding
bonds.
The idea of taking a loss still
does not set well with some bank
ers who conform to the old “buy
’em and hold ’em’’ philosophy.
However, with today’s volatile in
terest rates that practice has been
rendered obsolete. Successful port
folio management requires much
more. Constant monitoring of mar
kets, research of economic trends,
and a willingness to fine-tune investments, keeps a
bank’s portfolio operating at a high performance. For
example, an .05% improvement in yield on a 25 million

Northwestern Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

anker

dollar investment results in an increase of earnings of
$125,000.
Ultimate Objective Is Increased Return
The knowledgeable banker has been doing tax-loss
trading for years. When the First National Bank of
Chicago started such a program in the late ’60s, the re
turn on our portfolio increased significantly. That is
the ultimate objective of tax-swapping - to provide a
better total return on your portfolio by establishing
short-term tax losses and write-offs in return for future
gains.
By being in the 46% tax bracket the Federal Gov
ernment takes on nearly half of the loss, thereby reduc
ing your tax liability. Under new reporting rules, loss
es on portfolio securities reduce net income for that
year, but swapping into higher yielding bonds will in
crease net income in future years. If done correctly,
this increase in earnings will recover the loss before the
maturity of the present holding. In other words, had
you done nothing, there would be no such increase in
income.
Income Drop Slows Capital Growth
Keep in mind that any reduction in net income re
sults in slower growth of the capital base. You may
want to consult with your accountant before doing a
tax-loss trade.
Another advantage of tax-swapping is that your
portfolio becomes more liquid as you have, in effect,
“brought your portfolio to market.’’ Since tax-swapping is “fine-tuning’’ the portfolio to present market

•

values, you are able to exchange bonds that have de
preciated in value with current, higher-yielding secur
ities. Not only can you improve liquidity, but you can
take that opportunity to diversify or restructure the
portfolio.
Sample of Tax-Exempt Swap
The following is a sample of a tax-exempt swap as
done on our computerized program here at First
Chicago, which has been well received both by our
bank and individual customers.
Example
Is s u e

Am ount

Coupon

M a t u r it y

Y ie ld

T a x B a s ls

P r ic e

100000

5.900%

7/1/89

5.90%

100000

84.10

91000

9.000%

6/30/89

9.00%

S e ll

North Dak Stud Ln
Buy

North Slope
C o m p a r a t i v e S t a t i s t ic s

S e ll

91000
Buy

100.00
Change

Annual Accretion

5.90%
5.90%
5.87YR
5900
0
5900
0

9.00%
9.00%
5.87YR
8190
0
8190
0

3.10%
3.10%
0.00YR
2290
0
2290
0

Annual Return

5900

8190

2290

Average Coupon
Average Yield
Average Maturity
Annual Coupon Income
Annual Amortization

L o s s o n S a le

Tax Basis of Present Holdings
Sale Proceeds
Gross Loss
Tax Savings
Net Loss

100000
84100
15900
7314
8586

F u n d s A v a i l a b le f o r R e i n v e s t m e n t

Sale Proceeds
Tax Savings

84100
7314

Funda Available for reinvestment
Cost of bonds purchased

91414
91000

Remaining Funds

414

B r e a k -E v e n C a l c u l a t i o n s

Annual Return on Present Holdings
Net Loss on Sales (Annualized)
Amount to be Recovered Annually
Funds Available for Reinvestment
Break-Even Yield

5900
1462
7362
91414
8.05%

The best time to do tax-loss trading is the earliest
time of the year that your bank’s projections indicate
you will have sufficient earnings to shelter. The sooner
the better, since the quicker your earnings increase,
the sooner the loss is made up.
In the environment of volatile interest rates it is to a
bank’s advantage to have its portfolio at current val
ues and in a position to make the most of any oppor
tunities in the marketplace. If tax loss trading seems
interesting to you, then consult with your accountant
and tax specialist. If together you conclude your
bank’s position is such that this concept will provide
an additional tool to manage and increase your earn
ings, than by all means utilize it. And, hopefully, soon
you too can realize that taking a loss is not that bad;
and you can win by losing.
□

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

Bond swapsand A/L management
By RICHARD C. SWANBERG
Senior Vice President
First Bank Saint Paul
St. Paul, Minn.
SSET-liability management and interest rate sen
sitivity have added a new dimension to bond swap
ping. Bond swaps are not foreign to the vocabulary of
the commercial bank portfolio manager. Swaps, includ
ing the traditional tax swaps, have provided excellent
opportunities for banks to increase earnings.
Banks have found that bond
swaps can accomplish many objec
tives. First, they can provide a
means to improve the quality of a
portfolio. Second, they can provide
a way to improve the maturity dis
tribution of the portfolio. Finally,
they can save taxes and increase
the net income from the portfolio.
In the final analysis, the payoff
should be the improvement of earn
ings for a bank over a period of
time. Rate sensitivity management combines many of
these traditional objectives of bond swapping with
modern asset-liability management techniques.
Banks have learned the hazards of buying long-term
bonds or making long-term fixed rate loans funded by
fed funds or short-term time money. The problems as
sociated with borrowing short and lending long have
forced banks to reevaluate their asset-liability manage
ment strategies. Many banks have found that their lia
bilities are more interest rate sensitive (subject to
repricing) than their assets.
For example, these banks have more liabilities than
assets that can be repriced in a given period such as 90
days, six months, or one year. Such a bank has a nega
tive gap, and depending on the size of the difference
between interest sensitive assets and liabilities, its
earnings can be significantly affected by changing in
terest rates.
If a bank’s interest sensitive assets and liabilities
were perfectly matched, earnings would tend to be im
mune to changing interest rates. Such a matched posi
tion sounds good, but is probably impossible to
achieve for most banks.
The ability of many banks to change their interest
rate sensitivity is limited by customer preferences.
For this reason, the investment portfolio is probably
the best tool the average bank has to start managing
interest rate sensitivity right away.
Bond swaps provide a unique opportunity to im-

Northwestern Banker, September, 1983

prove and manage rate sensitivity while at the same
time changing portfolio quality, changing maturities,
and improving earnings.
How can bond swaps help a bank with a negative
gap? A negative gap, or an excess of interest sensitive
liabilities over interest rate sensitive assets, could be
reduced through the sale of longer investments and re
investment in shorter term investments.
For example, assume a bank had a negative gap of
$1 million for a six month period. If the bank sold $1
million of one year bills and reinvested that amount in
six month bills, it would increase six month interest
rate sensitive assets by $1 million. The bank would
then be in a matched position with six month interest
sensitive assets and liabilities being equal. This swap
would help insulate bank earnings against an increase
in interest rates. The swap would probably be done
with the anticipation interest rates would increase.
A bank with a negative gap would also have another
option. Term investments could be sold with the pro
ceeds reinvested in securities with floating rates. Tax
able and tax-exempt securities are available with in
terest rates tied on a floating basis to treasury bill

yields or the prime rate. These variable rate instru
ments float daily, weekly or quarterly and provide the
rate sensitivity that banks seek.
How can a bond swap help a bank with a positive
gap? A positive gap, or excess of interest rate sensitive
assets compared to interest sensitive liabilities, could
be reduced through the sale of short-term investments
and the reinvestment in longer term securities.
For example, assume a bank has a positive gap of $1
million in a one year period. The bank could sell $1
million 90 day treasury bills and purchase a two year
treasury note with the proceeds. This swap would re
duce interest rate sensitive assets by $1 million so that
they would be equal to their interest sensitive liabilities. The bank would then be in a matched position
and earnings would be protected against a sudden drop
in interest rates.
Bond swaps, including tax swaps, provide profitable
opportunities for commercial bank portfolio managers.
Bond swaps cannot be effective today without consid
ering how the swap will affect the bank’s rate sensitivi
ty. Fortunately, bond swaps can complement sound as
set-liability management and rate sensitivity policies. □

Tax implications of bond swaps

ty. The wash sale rules do not apply if the securities
are sold at a gain.
Illustration of Rules
These rules may be illustrated by the following ex
amples:
•Example (1). The bank purchases ten $5,000 par
value municipal bonds on February 1, 1972 at a total
cost of $48,000. A decision is made to sell the bonds at
their current market value of $41,000 on December 19,
1983, thus realizing a $7,000 loss to be reported on the
bank’s calendar 1983 income tax return. On January
16, 1984 the bank purchases for $42,000 ten $5,000 par
value municipal bonds of the same community and
part of the same issue as the bonds sold on December
19. No loss on the December 19 sale will be allowed
since identical bonds were purchased less than 30 days
later. The basis of the bonds purchased on January 16
is $49,000 ($42,000 plus the disallowed loss of $7,000).
•Example (2). On September 21, 1974 the bank
purchases ten $5,000 par value municipal bonds at a
cost of $48,000. On November 21, 1983 ten additional
bonds are purchased for $40,000 which are identical to
those previously held. The first group of ten bonds are
sold on December 19, 1983 for $41,000, a loss of
$7,000. No loss will be disallowed on the sale since
identical bonds were purchased less than 30 days prior
to the date of the sale. The basis of the remaining ten
bonds is $47,000 ($40,000 plus the disallowed loss of
$7,000).
•Example (3). Assume the facts as in Example (2) ex-

By ROBERT E. MILLER
Partner
McGladrey Hendrickson & Co.
St. Paul, Minn.
F YOUR BANK is like most, you have a large port
Iwhich
folio of municipal bonds and other securities for
the market value of many may be less than the
bank’s basis. Frequently, a portion of these could be
sold to realize a loss for income tax purposes and
reduce the bank’s current tax
liability. Should your bank contem
plate such a sale, together with a
related purchase of similar securi
ties to retain the same relative in
vestment position, you should be
aware of the rules regarding wash
sales which may disallow the claimed
loss.
A wash sale will occur if a sub
stantially identical security is pur
chased within 30 days before or
after the date of the sale in which a loss is claimed.
This period is commonly referred to as the 61-day per
iod (30 days on either side of the transaction). Since the
loss on a wash sale is not deductible, the disallowed
loss is added to the basis of the newly acquired securi

Northwestern Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(fy

*
9

•

cept all twenty bonds are sold on December 19, 1983
for $82,000. No other transactions take place within 30
days of the sale. In this case the entire $6,000 loss will
be allowed even though a purchase was made within 30
days of the sale because the bank has closed out its
position with respect to this security and does not re
establish a position within 30 days.
What Courts and 1RS Look At
Because the securities sold must be substantially
identical to those purchased within the 61-day period,
it is important to understand which securities may fit
that description. The courts and the 1RS have generally looked to the following characteristics when evaluating bonds:
1. The identity of the issuer.
2. Any redeemability features.
3. The collateral or security.
4. The purpose of the issue.
5. The principal and interest payment conditions:
a.
Maturity
b. Purchase price
c.
Face value
d. Coupon rate and interest payment dates
e.
Date of issuance.
There is no rule of thumb to aid in determining
whether two securities are substantially identical, each
case must be decided on its own facts and circumstances. The 1RS has ruled that securities are not substan
tially identical “if they are substantially different in
any material feature...or because of differences in
several material features considered together (i.e., even
though each of such differences considered alone might
not be regarded as substantial).’’ They have further
ruled that “substantially identical property does not
include all of one kind or class of property... but is
limited to property which is substantially the same in
all important particulars.’’ There is substantial authority with respect to bonds which holds that two securi
ties will not be substantially identical if they have dif
ferent issuers or different underlying security.
If your bank is planning this type of transaction, it
would be advisable to contact your accountants and

regulatory agency regarding the proper accounting
and reporting treatment. The transactions can be
structured so that losses, although recognized for tax
purposes, will not be recognized for book purposes,
leaving the bank’s capital intact. This is usually
achieved by the sale and immediate purchase of similar
but not identical issues. This operation should be care
fully planned with the help of your tax advisor.
Other Variables to Consider
In contemplating any sale of municipal obligation,
other variables should be considered.
1. The bank’s effective tax rate - Generation of losses
should be timed to correspond either with a heavy in
come year, which results in a high marginal tax rate, or
a loss year with substantial income years open to net
operating loss carrybacks. Sales of loss obligation in a
low marginal tax rate year are certainly not the most
desirable situation from a tax point of view.
2. Interest expense reduction - Any municipals pur
chased after December 31, 1982 will be placed in a sep
arate account and the ratio of the average of that ac
count to the average total assets multiplied by 15%
multiplied by the bank’s interest expense will be an ad
dition to income. Therefore, careful planning should
precede any municipal sales.
3. “Underwater municipals” - In planning such
sales, the economic feasibility of such a move should be
contemplated. Recovery of the loss on the sale should
be the number one priority. If this cannot be achieved
within approximately two years, considering the in
creased yield on the proceeds together with the pro
jected savings from the tax loss, perhaps the sale
should not be made.
Taking into account the above factors, plus others
such as maturity dates and average yields on your
portfolio, will allow banks to make good portfolio deci
sions when dealing with loss securities.
There are many variables, both tax and economic, to
be considered in portfolio management. Although the
above discussion is a brief outline of some of the more
important considerations, each bank must develop and
utilize the investment strategy best suited to its own
characteristics.
□

and Trust Co., Boston, who steps
down from the office of president.
Elected to the NACHA vice presi
J. Robert Brubaker, senior vice dent’s seat is Merrill T. Miller, Jr.,
president of Equibank, Pittsburgh, senior vice president of California
Pa., was elected president of the Na First Bank in San Diego. Mr. Miller
tional Automated Clearing House will also serve on the NACHA ex
Association (NACHA) recently by ecutive committee.
Garry L. Singer was elected secits board of directors.
Having served as vice president retary/treasurer and is the NACHA
during the past year, Mr. Brubaker staff director. He is also a member
replaces James F. Lordan, senior of the NACHA executive commit
vice president of State Street Bank tee.

Brubaker Named
NACHA President

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Federal Reserve Bank of St. Louis

The board of directors approved
Brubaker’s appointments of chair
men of NACHA’s two working com
mittees: John Sikkink, executive
vice president, Norwest Bank Des
Moines, la.—rules/operations com
mittee; and William D. Travis, vice
president and director of marketing,
First National Bank of Toledo,
Ohio,—education/communications
committee. Both chairmen will be
members of the NACHA executive
committee.
Northwestern Banker, September, 1983

What’ s New
V_______

)

HE Model 866, a high-through
T
put currency counter, is another
in a line of new generation currency
counters from Brandt, Inc.
The Model 866 has been designed
for use by companies requiring the
highest productivity in their curren
cy counting/verification operations.
It will count up to 1,500 bills per
minute and batch at any selected
amount from 1 to 999. The unit ac
commodates items from 2 by 4 in
ches to 4 by 7 inches in size. The
machine, with a built-in handle and
weighing only 24 pounds, offers por
tability along with performance.
The new Brandt Model 866 fea
tures three selectable speeds, full er
ror detection to prevent miscounts,
power loss memory, cash settlement
interface and a built-in carrying han
dle.
An optional counterfeit detection
aid will identify suspect U.S. notes,
and, once identified, the suspect
note will stop the machine automat
ically.
* * *

Brandt Model 866 Currency Counter

large variety of currency handling
applications.
The Mosler/Toshiba CA 411, the

sists of five ads, each of which fea
tures a different financial product or
service: IRAs, Money Market Ac
counts, Agri-Business, Trust Ser
vices and Home Improvement
Loans. The individual ad v er
tisements can be personalized with
the name and logo of the bank buy
ing the series for exclusive display in
its market area. “Close-Up” is in
tended to be a continuing series,
with new bank services being added
periodically.
In addition to the newspaper ser
ies, BankVertising also has radio
tapes, outdoor boards, statement
Mosler/Toshiba CA 411
stuffers and other materials utiliz
ing
the “Close-Up” concept avail
first machine to be announced, is a
sophisticated, microprocessor-con- able for purchase, according to John
trolled currency arranger which per H. Schacht, marketing director.
The BankVertising Company is
forms fitness (separating worn and
located
at 3102 Research Road,
torn bills) sorting and counting func
tions. It is designed to recognize and Champaign, 111. 61820.
reject stuck together, counterfeit
* * *
and incorrect denomination bills and
can be programmed for the user’s
fitness level. After sorting, and
ANKERS Equipment Service,
counting the bills a minimum of four
located in Burnsville, Minne
times, the CA 411 stacks the notes sota, is now marketing the CERTEX
in bundles of 100 and automatically Company’s new Electronic Check
binds them with a paper strap on Writing Machine.
which is stamped the date, name of
Ten-key entry, digital display and
organization, machine number and total accumulation, with the ability
operator code. Unfit notes are di to print amount only, signature only
verted to a separate stacker where or date, amount and signature si
they, too, are counted. The compact multaneously, are a few of the ad
Mosler/Toshiba CA 411 can be in vanced features.
Executive and operator key con
stalled almost anywhere and its op
eration is simple. It performs sort trol, plus a non-resettable counter
ing and counting functions equiv and amount accumulation assure to
alent to eight to twelve persons per tal disbursement control.
forming the same task.
Also available is an optional
In addition to direct sales offices Transaction Printer which lists
across the country, Mosler has a na date, check number or counter num
tionwide network of technicians ber, check amount and total accumu
available for installation and service lation.
* * *
of the Mosler/Toshiba equipment.
For more detailed information
about M osler/Toshiba currency
handling equipment, write Mosler,
Department PR-283, 1561 Grand
Blvd., Hamilton, Ohio 45012.

* * *

OSLER, a leading manufac
HE BankVertising Company of
M
turer of electronic/physical se T Champaign, 111., has announced
curity and transaction equipment a new series of pre-produced adver
out of Hamilton, Ohio, has announced
an agreement to market the Toshiba
line of currency handling equipment
in the United States. Thought to be
the most automatic currency handl
ing machines being built today, the
Toshiba equipment is available for a

Northwestern Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

tisements to be used by commercial
banks. Titled “Close-Up,” the series
was created for BankVertising by
Heptagon, Incorporated, of South
Bend, Ind., a marketing firm spe
cializing in financial advertising.
The initial “Close-Up” series con-

CERTEX Electronic Check Writing Machine.

An Open
Invitation to
London

1 9 8 3 International F in ancial S em in ar
D ecem ber 1- 10 , 1983
Land Arrangements

T h e f ir s t N o r t h w e s t e r n B a n k e r I n te r n a tio n a l S e m in a r h a s
b e e n a n n o u n c e d by B e n H a lle r, J r ., p u b lis h e r o f T he N o r t h
w e s t e r n B a n k e r . T h is g a th e rin g o f b a n k in g e x e c u tiv e s a n d
a s s o c ia te s w ill p r e s e n t th e o p p o rtu n ity to enjoy L o n d o n in
e a rly D e c e m b e r, th e h e ig h t o f th e c o lo rfu l t h e a tr e a n d h o li
d ay se a s o n , w h ile p a r tic ip a tin g in p r o fe s s io n a l stu d y s e s
sio n s u n d e r th e a u s p ic e s o f L o n d o n S chool o f E co n o m ics.
T e c h n ic a l v isits a n d d isc u s s io n p e r io d s a t p a rtic ip a tin g
b a n k s , B u ild in g S o c ie tie s, a n d L loyds o f L o n d o n a lso a r e
p la n n e d , a s w ell a s so c ia l a c tiv itie s w ith B ritis h c o u n te r
p a r ts .

T h e p r o g ra m w ill in c lu d e d e lu x e h o te l a c c o m m o d a tio n s
a t L o n d o n ’s B r itta n ia H o te l fo r six n ig h ts , p lu s tw o n ig h ts
a t th e tr a d itio n a l W h ite H a r t In n in th e C a th e d ra l C ity o f
S a lisb u ry , a w o n d e rfu l w elc o m e to th e H o lid ay se a so n .
B r e a k f a s t e a c h m o rn in g , sp e c ia l d in n e rs , re c e p tio n s ,
s ig h ts e e in g a n d a u n iq u e a n d p r o fita b le e d u c a tio n a l ex
p e r ie n c e m a k e th is a n e v e r to b e fo rg o tte n tra v e l a d v e n tu re
fo r all. T h e la n d p a c k a g e is j u s t 054-9 p e r p e rs o n , b a s e d on
d o u b le o ccu p an cy o f ro o m s a n d th e s e m in a r fe e is 0 1 7 5
p e r p a r tic ip a tin g fin a n c ia l ex e cu tiv e.
Travel Arrangements

A ir f a r e s a r e now b e in g fin a liz e d fo r H o lid ay S e a s o n
tra v e l, a n d y o u r flig h ts w ill b e on re g u la rly sc h e d u le d
a irlin e s . Y our p r o m p t r e s p o n s e w ill b rin g you fu ll d e ta ils
a n d a ir f a r e q u o ta tio n fro m y o u r h o m e city.

A D ic k e n s ia n H o lid ay a tm o s p h e re w ill p re v a il th ro u g h
th is e x c itin g a n d e d u c a tio n a l w e e k w ith a sto p a t “T h e O lde
C u rio sity S h o p ,” a n d lu n c h a t th e D ic k e n s In n a s p a r t o f
th e p la n n e d a c tiv itie s. F a c e to fa c e m e e tin g s w ith y o u r
B ritis h p e e r s w ill p r e s e n t a view o f th e fin a n c ia l w o rld
fro m th e o th e r s id e o f th e A tla n tic . W ith o u t a d o u b t, th e
h o lid a y s p ir it a n d th e lig h ts a n d d e c o ra tio n s o f w o rld
fa m o u s r e ta ile r s su c h a s H e rro d s , F o rtn u m M a so n , a n d
S im p s o n s w ill b e te m p tin g to C h r is tm a s s h o p p e rs a n d
b ro w s e rs a lik e.
International Financial Seminar

c / o T ra v e l & P ro m o tio n s, L td.
8 5 2 7 U n iv e rsity Blvd. S u ite 7
D e s M oines, Io w a 5 0 3 1 1
D e c e m b e r 1-10, 1983

Tax Deductible Educational Expenses

T re a s u ry re g u la tio n s p e r m it a p p r o p r ia te ta x d e d u c tio n s
fo r e d u c a tio n a l e x p e n s e s u n d e r ta k e n to m a in ta in o r im
p ro v e s k ills r e q u ir e d fo r o n e ’s e m p lo y m e n t o r p r o fe s s io n ,
a n d C e rtif ic a te s o f A tte n d a n c e w ill b e p r e s e n te d to ac tiv e
p a r tic ip a n ts .
□
□
□

Y es, I ’m in te r e s te d in th e I n te r n a tio n a l F in a n c ia l
S e m in a r in E n g la n d .
E n c lo se d is m y c h e c k fo r th e S e m in a r R e g is tr a
tio n F e e o f 0 1 7 5 .
P le a s e s e n d c o m p le te d e ta ils w ith a ir f a re fro m
(h o m e c i ty ) _________________________ _____________ •

N am e(s)
A d d re ss
C ity ____
H om e Phone

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

S ta te

Z ip

O ffic e P h o n e
Northwestern Banker, September, 1983

48
O

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In a world filled w ith
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° we offer HUmfiflUJfiRE
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more perplexing than the computer side.
That’s why the Human Interest bank
offers you Humanware.
Humanware . . . people you can count on
for quick and concise answers to your
banking questions.
Humanware . . . people to help you sort
out the correspondent or corporate
services you need.
Humanware . . . people who have the
expertise and commitment to help you
with everything from cash letter
processing to estate and trust services.

Call us toll free (800) 322-2212. Give us
the opportunity to show you how our
Humanware can make a big difference in
your bank operation.

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Interest bank

Commercial National Bank
of Peoria

COMMERCIAL BANKING DIVISION

M e m b e r M id w e s t F in a n cia l G ro u p , Inc

301 S.W. Adams
Peoria, Illinois 61631
Phone: (309) 655-5000
M EM BER F.D .I.C .

o
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Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A rt Hippie

Dorothy Newlin

ranks among the top shared EFT
systems in the country. The system
processes over 5 million consumer
electronic banking transactions each
year.

Aurora Bank Offers “ 10x10”
Home Improvement Loan

1983 Annual Meeting and
1984 Convention Dates Set

EASY ANSWER Selects
ADP of New Jersey

The Illinois Bankers Association
board of directors has approved the
dates and locations for the 1983 An
nual Meeting and the 1984 Annual
Convention.
The 1983 Annual Meeting will be
held November 17 at the Holiday
Inn O’Hare Kennedy in conjunction
with the IBA Bank Management
Conference. The annual meeting will
be held for the purpose of electing
association officers and for conduc
ting any additional business.
The 1984 Annual Convention will
be held in Peoria on June 13-15,
1984. The Hotel Pere Marquette will
be the convention headquarters, and
all meetings, general sessions and
exhibits will be located in the Peoria
Convention Center.

The EASY ANSWER System,
the largest shared electronic funds
transfer system in Illinois, last
month announced that it has selec
ted Automatic Data Processing,
Inc. (ADP) of Clifton, New Jersey,
to own and operate its EFT switch
ing facilities.
The EASY ANSWER System,
headquartered in Springfield, com
prises over one hundred financial in
stitutions throughout central and
southern Illinois. With over 120
ATMs and point of sale devices—
including the nation’s first directdebit electronic gas pumps—de
ployed throughout this extensive
market area, EASY ANSWER

Midwest Financial Group
Acquisitions Announced
United Bancorporation, Inc., a
seven-bank Rockford-based holding
company, has reached an agreement
with Midwest Financial Group, Pe
oria, whereby Midwest would ac
quire United Bancorp., subject to
regulatory authorities approval.
United Bancorp, will continue to op
erate independently with no changes
in management, directors or staff.
Midwest Financial also announced
plans to purchase Pioneer Bank of
Peoria and Citizens National Bank
of Decatur.
Pioneer Bank has assets of ap
proximately $16 million. Citizens
National’s assets total $225 million.
Both acquisitions are subject to reg
ulatory approval.

Application Approved
The Federal Reserve Board re
cently announced its approval of the
application by Suburban Bancorp,
Inc., Palatine, to acquire Suburban
Bank of Barrington, Barrington.

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

The Old Second National Bank of
Aurora is offering a new type of loan
to its customers. I t ’s called a “ 10 x
10” home improvement loan. The
“10 x 10” will cover up to $ 10,000 of
materials and labor and can be paid
off over a period of up to 10 years.
Central air conditioning, provid
ing four-season comfort, generally
heads the list of home improvement
loans, Don Nelson, vice president,
points out. People become accus
tomed to air conditioning at work, in
automobiles and at places of amuse
ment.
So, Mr. Nelson says, work up an
estimate, then check with your lend
ing officer about the various types
of improvement loans available. You
can hire a general contractor, be
your own “general” and engage sub
contractors or buy needed material
and do the labor yourself.

“Time for a Commercial Break”

COMMERCIAL National Bank, Chicago, staffers (left to right) Mary Koehler, Jan
Tyda, Theresa Schaefer and Betsy Kopsian join bank Vice President Mikki
Holloway and President Burton N. Noah at an employee meeting celebrating the
kick-off of the bank’s new customer and community awareness campaign, “ Time
for a Commercial Break.” The objective of the campaign, according to Ms.
Holloway, is to assist consumers and businesspeople to better understand the
bank’s products and the financial marketplace generally. In addition to the internal
training and promotion, the bank will use newspapers, transit and outdoor
mediums, and sponsor several financial and money management seminars to com
municate financial and bank awareness.

Northwestern Banker, September, 1983

Howto be a biggerbank
for yourbest customers.
Start offering bigger services.
By adding our leasing and asset-based
financing programs to your current financing
plans you can give your customers the equip
ment or operating capital they need to prosper.
In addition to helping your customers with
these progressive financing services, you open
up highly profitable avenues for investment.
Leasing, for example, is often one of the most
profitable investments in a bank’s portfolio.
And includes substantial tax benefits.
By participating in our asset-based lending
programs, you gain a healthy return and add an
important service that provides your clients
with additional working capital.
So when conventional financing won’t
meet your customer’s demands, contact any
one of our representatives listed.

We’ll work with you to give your customers
the flexible financing they need. And you’ll
discover that it’s not the size of your services
that counts, it’s the size of those standing
behind you.
For full details on Norwest Business Credit call:
Bob Olson in Minneapolis (612) 372-7988,
Don Park in Denver (303) 298-0515,
Gary Hermann in Des Moines (515) 245-8406,
or Barry Krause in Dallas (214) 239-1555.
For information on Norwest Leasing contact:
John MacLeod in Minneapolis (612) 372-7416,
Bennie Gates in Omaha (402) 536-2310,
John Bailey in Des Moines (515) 245-3392,
Chris Hoss in Fargo (701) 293-4273,
or Steven Cozzens in Billings (406) 657-3581.

Norwest Business Credit, Inc.
Norwest Leasing, Inc.

NORWEST CORPORATION

mmmmm

ff^ n

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

Ashfeld Named President At
First National of Wayzata
Lee M. Ashfeld has taken over as
president of the First National Bank
of Wayzata following his election by
the bank’s board.
The past six
years Mr. Ash
feld has been
associated with
th e
C itiz e n s
Bank and Trust
C om pany
of
Hutchinson. He
m ost recently
was senior vice
L.M. ASHFELD
p re sid en t and
chief credit officer of that bank.
He succeeds Lowell G. Wakefield,
who will be assuming responsibil
ities as president of Anchor Ban
corp, Inc., holding company for the
First National Bank of Wayzata.
A native of Watkins, Mr. Ashfeld
graduated from the University of
Minnesota with a major in econom
ics. He is also a graduate of the
Stonier Graduate School of Banking
of Rutgers University and the
School of Mortgage Banking of the
Graduate School of Management of
Northwestern University.

ment banker and later that year
joined Sears Bank & Trust Com
pany in his current position.

Elected in Maple Grove
James Heig, president, Norwest
Bank Maple Grove, announced the
election of Debra Gray as commer
cial banking officer.
Ms. Gray joined Norwest Bank
Maple Grove in 1980 as a general
development trainee. Upon comple
tion of her training program, she
held positions of credit analyst and
commercial banking representative.

ly named vice president-operations
in May, 1973, and since January,
1978, has served as vice president
and cashier.
Mr. Seitz, associated with the
bank since 1966, has served as vice
president since August, 1980, and is
now senior vice president.
Also promoted to senior vice pres
ident is Bruce P. Wagner, who has
been vice president and trust officer
since January, 1980. He joined the
bank in 1972.
Mr. Potter joined in September,
1966, serving as assistant vice presi
dent and senior trust officer prior to
this promotion to vice president and
trust officer.
Mr. Sertich has been promoted
from personnel officer to assistant
vice president-human resources. He
joined the bank in July, 1979, was
promoted to customer service officer
in January, 1981, and to loan officer
later that same year. He has served
as personnel officer since January.

Joins Mankato Bank

Mark O. Dokken has joined
Security State Bank of Mankato as
assistant vice president.
Mr. Dokken has a total of ten
The promotion of five officers for
Norwest Bank, Duluth, N.A. were years of banking experience, four of
announced by President Dennis W. which are in agricultural lending at
Minnesota State Bank of Caledonia.
Dunne.
Vice presidents elected to new He is taking on agricultural and in
senior vice president positions were: stallment lending duties at Security
Joel W. Schmidt, James A. Seitz State Bank.
Also announced was the promo
and Bruce P. Wagner. Bruce W. Pot
ter was elected vice president and tion of John G. Kapsner from loan
trust officer, and Steven J. Sertich officer to assistant vice president.
was promoted from personnel officer Mr. Kapsner has had previous con
sumer lending experience with
to assistant vice president.
Mr. Schmidt, who was also elected Thorp Finance and at the bank. His
cashier, joined First National Bank present duties include retail and
of Duluth in 1957. He was eventual small business lending.

Five Officers Promoted At
Norwest Bank, Duluth

New President Named
Jay B. Walters has been elected
president of First Bank Milwaukee.
He succeeds David G. Herzer, who
was recently elected senior vice pres
ident of administration for First
Bank System, Inc. A1 K. Simpson
continues as chairman and chief ex
ecutive officer of First Bank (N.A.).
Mr. Walters has been associated
with Sears Bank & Trust Company,
Chicago, where he served as execu
tive vice president of the banking
group. He began his banking career
in 1970 at Harris Bank & Trust
Company, Chicago, where he held
various positions in commercial
lending, training, personnel and fi
nancial consulting. In 1981 he joined
E.F. Hutton, Chicago, as an invest

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

Lester Prairie Bank Remodels

OVER 1,100 people recently toured the newly remodeled facilities of Farmers State Bank of
Lester Prairie and helped the bank celebrate its 70th anniversary. People attending the
open house would have noticed several added features: a drive-up window, passive solar
heating and over double the original floor space. The bank’s exterior was also redone in
brick, stucco and glass.
Northwestern Banker, September, 1983

First Bank Security, St. Paul
recently announced the election of
Rodell L. Hofland as senior
vice president
and second offi
cer, and Therese
M. Mitch as op
erations officer
and cashier.
M r. H o flan d
began his career
in 1967 w ith
First Bank Edi
na as a management trainee. He
previously had been associated with
First Bank Northfield, where he was
elected president in 1978.
Ms. Mitch joined in January of
this year, having started her career
with First System Services in 1978.
* * *
Shirley Johnson has been named
assistant vice president and man
ager of the personal banking center
at First Bank
Southdale. Pre
viously she held
the position of
a s s is ta n t vice
p re sid en t and
manager of the
North St. Paul
office of First
B an k
M er
chants.
D uring Ms.
S. JOHNSON
Johnson’s 14 years at First Bank
Merchants she has held positions in
the operations, personal banking
and marketing departments.
* * *

responsible for all of the firm’s mun
icipal bond trading and under
writing.
With ten years of trading exper
ience, Mr. Plumstead most recently
was vice president, municipal
trading, with Dain Bosworth. Previ
ously he worked with The Ohio Com
pany and Folger, Nolan, Fleming &
Douglas.
* * *
Norwest Corporation has an
nounced that John D. Lauler has
joined the control division as vice
president of financial planning and
analysis, and John W. Schwegel has
been elected vice president of the
financial institutions group.

J.D. LAULER

J.W. SCHWEGEL

Prior to joining Norwest, Mr.
Lauler was vice president of finance
and administration for EMMCO,
Inc., Sedona, Ariz.
Before joining the corporate staff,
Mr. Schwegel was senior commer
cial banking specialist at Norwest
Bank Minneapolis, N.A.
* * *

George H. Dixon, president and
chief executive officer of First Bank
System, Inc., has been elected to
the additional post of chairman. He
Dougherty, Dawkins, Strand & succeeds Donald R. Grangaard, who
Yost, the Minneapolis-based invest retired July 31.
ment banking firm, announced that
Mr. Dixon has been associated
R. Tucker Plumstead joined its staff with First Bank System since 1968
as vice president, municipal bond when he joined First Bank Minne
trading and underwriting.
apolis as president. Following an ap
Along with Vice President John pointment as deputy secretary of
McDonald, Mr. Plumstead is jointly the treasury in 1976, he returned to

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

G.H. DIXON

D.R. GRANGAARD

First Bank System in 1977 as presi
dent and has served as the
company’s chief executive officer
since 1981.
Mr. Grangaard’s career with First
Bank System spans forty-six years.
He served as chief executive officer
from 1969 to 1981.
* * *
Two new Telecommunications De
vices for the Deaf (TDDs) have been
installed at First Bank Minneapolis
to aid hearing impaired customers
and bank employees.
A TDD in the personal banking
center on the bank’s main floor en
ables hearing impaired customers to
receive information on personal ac
counts and bank services over the
telephone.
A second unit on the fourth floor
of the bank building is used by bank

Debbie Wall, senior reconciler in the Item
Processing dept, at First Bank Minneapolis,
sends a message on one of the bank’s new
TDDs. In the background is the bank’s
World War II vintage teletypewriter.

Minnesota News

employees for business and personal
calls.
The new TDDs are compact, desk
top units capable of being used with
any telephone. They are completely
portable and be run on battery
power.
When a hearing impaired cus
tomer calls the personal banking
center, the bank’s phone operator
turns on the bank’s TDD, places the
phone receiver on the unit and reads
the message on a digital display. A
printout of the message is also pro
duced.
When the caller wishes a reply, he
or she types the letters “GA” for
“go ahead’’ and the bank employee
types a message in return.
* * *

p re sid en ts by
First Bank Min
neapolis.
M r.
K ra u t
now heads a
capital markets
and tr e a s u r y
g ro u p w hich
com bines th e
bank’s funding
and securities
G.A. KRAUT
sales functions.
He joined the bank in 1973 and had
been vice president and head of the
money market department since
1977.
Mr. Leary is assuming respon
sibility as head of the credit ad
ministration department, where he
had been been vice president since

N.J. JOHNSON

T.H. CHERRY

D.G. GUIMOND

National City Bank of Minne
apolis recently announced the fol
lowing changes in the bank’s official
staff. Promoted to new positions
were: Paula L.
Hasenberg, op
erations officer;
Wayne H. Peter
son, credit of
ficer, and Steven
J. Eckstein, com
mercial loan of
ficer and assis
tant manager of
the Southdale P.L. HASENBERG
Office.

G.N. OPHAUG

L.L. GROSS

W.H. PETERSON

J.S. GELBMANN

R.B. HUART

S.J. ECKSTEIN

Ms. Hasenberg is a graduate of
Northern Michigan University where
she received her BA. She has been
with National City Bank since 1980.
Mr. Peterson, a graduate of Win
ona State University, started with
National City Bank in 1980.
Mr. Eckstein has been with the
Southdale Office since 1982. He is a
graduate of Augsburg College where
he received his BA.
* * *
Gerald A. Kraut and Thomas E.
Leary have been elected senior vice

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

J.L. HAUSER

K.M. PARIS

J.F. FIGGATT

B.A. DINNDORF

1982. He joined the bank in 1957.
Also announced were the elec
tions of six vice presidents, 13 assis
tant vice presidents and nine of
ficers.
New vice presidents elected are:
William R. Cook, natural resources
division; John D. Gatzlaff, agribusiness/com m odities division;
Franklin L. Brosseau, commercial
Northwestern Banker, September, 1983

Minnesota News

loan workout division; Grant R.
Christenson, real estate finance divi
sion; Mary Ann Hansen, advertising
division, and Mary E. Koessel, hu
man resources division.
Assistant vice presidents were
elected in the following departments
and divisions: William J. Swanstrom, human resources; Karen M.
Paris, corporate division B; Jeffrey
F. Figgatt, national east; Nancy J.
Johnson, cash management; Thom
as H. Cherry and David G. Guimond, executive banking; Susan L.
Drake, business owners; Gary N.
Ophaug, North Washington office;
JoAnn G. Gelbmann, securities and
control operations; Linda L. Gross,
bank services; Richard B. Huart,
professional banking I; Jack L.
Hauser, corporate banking services,
and Beth Ann Dinndorf, special
loans.
Named to officer status were:
Jeanne P. Johnson, international
banking; Kenneth M. Duncan and
Timothy R. Lundgren, commercial
banking; Karyl H. Frye and John L.
Mattes, personal banking; Michael
T. Eidem, trust investment; Doro
thy J. Jachim, systems; John A.
Steenerson, career development, and
Kathryn L. House, professional
banking.

center of First Bank of South Da
kota as assistant vice president and
assistant manager and was pro
moted to vice president in 1983.
Mr. Herzog began his banking
career in 1950 and was elected presi
dent of First Bank Litchfield in
1972.
V. SMITH

R.B. LAMBERT

on July 31. Mr. Smith most recently
served as president of First Bank
Benson.
To succeed Mr. Smith, the board
of directors of First Bank Benson
has elected Richard B. Lambert
president. Mr. Lambert has been
serving as vice president of the Ver
million community banking center
of First Bank of South Dakota.
Mr. Smith began his banking car
eer in 1973 at the Vermillion com
munity banking center of First
Bank of South Dakota. He was pro
moted to loan officer in 1974 and to
assistant vice president in 1977. In
1979 Mr. Smith joined First Bank
Benson as vice president and was
elected president in 1980.
Mr. Lambert has been associated
with First Bank System since 1973
when he joined First Bank Fairmont
as an assistant cashier. He joined
First Bank Willmar in 1975 as an as
Jordan Officer Elected
sistant vice president in the lending
Norwest Bank Jordan has elected area. In 1979 Mr. Lambert joined
Jim Swiontek as assistant vice pres the Vermillion community banking
ident, commercial and ag loans.
Mr. Swiontek previously was ag
lending officer at Norwest Bank
Dawson. He started with Norwest in
1981 in its credit training program.

Announced in Blaine
First Northtown National Bank,
Blaine, recently announced that
J u d ith B la n
chard has joined
the bank’s staff
as vice president
and second of
ficer.
Ms. Blanchard
joins the bank
from First Bank
St. Paul where
she was a com
mercial banking J.B. BLANCHARD
officer. She also was with First Bank
System as a group human resource
officer and financial analyst for the
southern Minnesota group.

Tower Director Elected
Scott Kregness, who has been the
loan and security officer at the State
Bank of Tower since December,
1981, was named to the board of di
rectors.
He previously was employed by
First National Bank in Duluth.

Shakopee Bank Installs Solar Heating

Grand Opening Held
Farmers State Bank of Dorset
recently held a Grand Opening Cele
bration for its new facility in Park
Rapids, Minnesota. The new driveup and walk-up facility opened for
business on June 20, and is located
on East Highway 34 on the edge of
Park Rapids.
This is the 2nd detached facility
for Farmers State Bank of Dorset,
the first having been opened in
Nevis in 1978.

First Bank Elects Presidents
In Litchfield and Benson
The board of directors of First
Bank Litchfield has elected Vernon
Smith president, succeeding Leslie
E. Herzog, who retired as chairman

Northwestern
Banker, September, 1983
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Federal Reserve Bank of St. Louis

THE Citizens State Bank of Shakopee recently installed a Suncell Solar Air-to-Air Heating
System which is expected to save the bank $1,200 annually. The bank was designed by
Pope Associates of St. Paul with Boulevard Heating and Air Conditioning of Hopkins in
stalling the solar heating system. Consulting engineer was Lawler Swenberg & Assoc, of
Hilliard, Oh. The system consists of 66 #601 Suncell collectors, which total 1227.6 sq. ft.,
and is expected to provide 31% of the annual energy requirement. Back-up heat source is
an electric heat pump and the installation has a unique greenhouse incorporated in the
center lower portion of the array.

Minnesota News

Elected in Duluth
Larry L. Gilb, president and chief
operating officer of First BankD u lu th
was
recently elected
p re sid en t and
chief executive
officer. Mr. Gilb
jo in e d
F ir s t
Bank-Duluth as
p re s id e n t
in
1981 from First
B ank -B illings,
Montana, where
he served as vice
president and manager of corporate
banking.
Also announced was the election
of Mary E. Ryland and Duane A.
Rappana to the board.

St. Cloud Banker Elected
UMACC Secretary/Treasurer
T. Arthur Grove, vice president
agricultural loans, at The First
American National Bank of St.
Cloud, was elected Secretary/Trea
surer at the 29th Annual Conven
tion of the Upper Midwest Agricul
tural Credit Council (UMACC) held
in Spearfish, South Dakota, July 6,
7 and 8.
The three-day conference, “Farm
Credit Perspectives for the 1980’s,”
included sessions on long-term pro
spects for the agricultural sector;
computer technology in agricultural
lending; deregulation, agricultural
lending and profitability; improving
management skills, and coping with
stress.
UMACC is a 200-member organi
zation that provides an educational
forum for bankers who serve the
credit needs of rural communities in
the upper Midwest.

quire Swift County Insurance Agen
cy, Inc., Benson, a general insurance
agency operating in a community
with a population of less then 5,000.

Brainerd Staff Changes Told
Citizens State Bank, Brainerd
recently renamed the customer ser
vice department as the personal
banking department and announced
a number of staff promotions in con
nection with that change.
Stella Middleton, vice-president,
will assume supervisory responsi
bility for the newly named personal
banking department. Ms. Middleton
has been with the bank for more
than 25 years.
Isobel Richey was promoted to
personal banking officer. An 18 year
employee of the bank, Ms. Richey
has worked as a bookkeeper, teller,
vault teller, as well as in the cus
tomer service department for the
past eight years. Karen Schneider, a
22 year employee of the bank, will
exchange the officer title of assis
tant cashier for that of personal
banking officer.
Among the staff promotions, Bev
erly Marx has been named as the
personnel officer. She has been with
the bank for 13 years serving in a
variety of positions, most recently
as manager of the customer service
department.

Grand Opening Held

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Federal Reserve Bank of St. Louis

RMA Minnesota Chapter
Elects New Officers
The annual meeting of the Min
nesota Chapter of Robert Morris As
sociates was held in June. The fol
lowing were made officers and elec
ted to the board of directors: Presi
dent - Loren D. Herbst, senior vice
president, Norwest Midland; Vice
President - Robert L. Stehlik, presi
dent, First Bank Southdale; and
Secretary/Treasurer - Phillip J. Gallivan, senior vice president, F&M
Marquette. Also elected to the board
of directors were John F. Crinklaw,
senior vice president, National City
Bank of Minneapolis; Dale S. Han
son, executive vice president, First
Bank St. Paul, and John C. Roise,
senior vice president, NorwestMankato.

Dawson V.P. Named
Everett E. Kelley, president of
Norwest Bank Dawson, has an
nounced the electio n of G reg
Kuglin as vice
president.
Mr. K uglin
joined the bank
in 1980 and has
served as a loan
officer. Prior to
jo in in g
th e
Dawson bank,
G. KUGLIN
Mr. Kuglin was
a personal loan officer at Norwest
Bank Marshall, N.A. for five years.

Deluxe Boosts Dividend

Acquisitions Approved
The Federal Reserve Bank of Min
neapolis recently approved the fol
lowing acquisitions:
McGregor Banco, Inc., McGreg
or, to acquire the State Bank of
McGregor; Granite Holding Corpor
ation, Granite Falls, to acquire
Granite Falls State Bank; Anchor
Bancorp, Inc., Wayzata, to acquire
West St. Paul State Bank; First
Sleepy Eye Bancorporation, Inc.,
Sleepy Eye, to acquire the State
Bank of Butterfield; JDOB Inc.,
Naples, to acquire the Security
State Bank of Pillager, and Swift
County Financial Corporation to ac

NORWEST Bank Red Wing, N.A. held a
three-day grand opening last month for its
new Burnside office located at 3303 North
Service Drive, near the new shopping mall
in west Red Wing. The new full-service facil
ity features three drive-up lanes, four teller
windows, a 24-hour ATM and extended
hours.

The board of directors of Deluxe
Check Printers, Incorporated, St.
Paul, Minn., has increased the com
pany’s regular quarterly dividend
from 28 cents per share to 34 cents
per share. The dividend was to be
p aid S e p te m b e r 6, 1983 to
shareholders of record August 22,
1983.
In addition, the board authorized
the purchase of up to 1,500,000
shares of the company’s outstand
ing stock. Purchases will be made
from time to time at prevailing mar
ket prices. Shares purchased under
the program will be reissued in con
nection with employees’ stock op
tion plans or retained as treasury
shares for other corporate purposes.
The purchases will be made in the
open market or in privately negoti
ated transactions and will be managed
by Goldman, Sachs & Company.
Northwestern Banker, September, 1983

Montana
R. Sizemore, pres., Chinook
J.T. Cadby, exec, v.p., Helena

iness finance and economics at Mon
tana State University. He joined the •
bank in August of 1980 as a regional
credit trainee and is now an energy
loan officer.

Bozeman Changes Told

Craig N. Hveem has assumed new
responsibilities as assistant vice
president of the commercial loan de
partment, and Nancy Pierce, as real
Great Falls Promotes Three ing the agri-business department of estate loan officer, of First National
Bank of Bozeman, according to Harry
Marilyn K. Rose has been promot the bank in December, 1981.
W. Newlon, president.
ed to assistant vice president and
assistant manager of the real estate
Glendive Bank Adds One
department; Janis M. Lords to real
Steven L. Ohs has joined First
estate loan officer and compliance
officer, and Kevin P. Johnson to National Bank of Glendive in the
agricultural loan officer at First agricultural credit department, ac
cording to T.A. Vashus, president.
B ank
G re a t
Prior to his joining the bank, Mr.
F a lls .
T hese
Ohs
was assistant county supervis
th re e p ro m o
or
for
the Farmers Home Admini
tions were an
stration in Glendive and was also
nounced by Rob
associated with the local soil conser
C.N. HVEEM
N. PIERCE
ert L. Reiquam,
vation
service for one year.
president, fol
Mr. Hveem joined the bank in
lowing the last
1972 as an adjustor, and served
monthly meet
most recently as real estate depart
Norwest Bank Billings
ing of the bank’s
ment manager.
Part of New Energy Unit
board.
Ms. Pierce started with the bank
M.K. ROSE
Norwest Bank Billings, N.A. will in 1980 as a personal banking of
In addition,
be part of a new energy financing ficer. She previously has worked for
unit to serve the Rocky Mountain Oswego Community Bank in Illinois
and the northern plains states.
as assistant cashier and loan officer.
Norwest Energy Finance will be a
joint effort of Norwest Bank Bill
ings, N.A. and Norwest Bank Min Acquisition Approved
neapolis, N.A. and will serve as a
The Federal Reserve Bank of Min
focal point for energy financing for neapolis recently approved the ap
the entire Norwest Corporation.
plication by S.B.T. Financial, Inc.,
Todd Parchman, senior vice presi Townsend, to acquire the State
dent at Norwest Bank Minneapolis, Bank of Townsend.
will serve as manager of the Nor
J.M. LORDS
K.P. JOHNSON
west Energy Finance staff of 22 peo
Jack D. Satterwhite, vice president ple, including three petroleum engi
and general manager, western reg neers, a geologist and a documen Norwest Financial Offers
$50 Million in Notes
ion of the AgriBasics Company, a tation specialist.
ConAgra Agri-Products Company,
Headquarters for the joint effort
Norwest Financial, Inc. (formerly
has been elected to the board.
will be in Minneapolis, with offices Dial Financial Corporation), Des
Ms. Rose joined the bank in 1973, in Denver and in Billings. Doug Kraft Moines, Iowa, a unit of Norwest Cor
was elected a personal banking of will manage the Billings office of poration, has completed the public
ficer in 1977, instalment loan officer Norwest Energy Finance and will be offering of $50 million of IDA per
in 1979 and assistant manager/real joined by Mark Nyquist.
cent 10-year notes through an under
estate department in 1982.
Mr. Kraft graduated from the Uni writing group led by Salomon
Born in Great Falls, Ms. Lords versity of Montana with a degree in Brothers Inc.
entered the banking profession in business finance. He worked for
Norwest Financial said net pro
1966 at First Bank West Great Falls Northwestern Bancorporation in ceeds from the sale will be used to
and was elected its compliance of Minneapolis as a commercial credit support internal growth and for pos
ficer in 1982.
analyst before joining the commer sible bulk purchase of finance receiv
Mr. Johnson graduated from the cial department at First North ables.
University of Minnesota with a de western National Bank in Billings.
The offering was made under a
gree in agricultural business admini Mr. Kraft is currently an assistant shelf registration covering $200
stration. He worked as a district vice president at Norwest Bank Bill million of senior debt securities filed
manager for DeKalb Agricultural ings, N.A.
with the Securities and Exchange
Research for three years before join
Mr. Nyquist earned a degree in bus Commission in November 1982.
Northwestern Banker, September, 1983

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Federal Reserve Bank of St. Louis

We’ve Changed
O ur Nam e.
BREMER

Bremer Financial Corporation
Our previous name —the Otto
Bremer Company - suited us
perfectly for more than 40 years.
But today it no longer accurately
reflects what we do. That’s why
we changed our name.
Now we are BREMER
FINANCIAL CORPORATION, a
name which better describes our
activities in banking and
agricultural credit.

BREMER

Even our new name doesn’t tell
you that w e’re one of the largest
bankholding companies in the
Upper Midwest, or that 29 First
American Banks in Minnesota,
North Dakota and Wisconsin
belong to our system, or that our
assets exceed $1.3 billion.
But well tell you more about that
another time.

Bremer Financial Corporation
Suite 700
55 East Fifth Street
St. Paul, MN 55101
(612) 227-7621

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Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1983

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Federal Reserve Bank of St. Louis

60
ficer.
Having worked in the education
field for ten years, Mr. Kapfer most
recently served as commercial and
real estate loan officer at the
Williston Cooperative Credit Union.

North Dakota

Promoted in Bismarck

D. Petersen, pres., New Town
H.J. Argue, exec, dir., Bismarck

NDBA Group Meetings Agenda Announced
ANKERS attending the 1983
B
Group Meetings of the North
Dakota Bankers Association, Sep
tember 26-29, will have an opportun
ity to learn more about current
banking legislative and regulatory
issues, activities of the NDBA Ad
vertising program, status of the
North Dakota Bankers Political Ac
tion Committee, a unique new insur
ance program recently endorsed by
NDBA, and an update on plans for
the new 1984 Centennial of the
North and South Dakota Bankers
Associations.
As an added feature this year, a
two-and-one-half hour session on
“Microcomputers in Banking” will
be held just prior to the start of each
meeting. This seminar is for the
banker who is considering purchas
ing or has just bought a microcom
puter. It is designed to provide an
overview on the uses of micro’s in
banking and provide guidelines for
evaluating hardware and software.
Allen Wolfe of Charles Bailey and
Company in Bismarck will be con
ducting the microcomputer seminar.
P.M.
AGENDA
1:00 Opening remarks — group
president.
Northeast - Mike Hoffman.
Northwest - Dick Johnson
Southwest - Harvey Huber.
Southeast - Harley Jundt.
• “Microcomputers in Bank
ing”—Allen Wolfe, Charles
Bailey & Company, Certified
Public Accountants, Bismarck.
3:30 Break.
3:45 Federal legislative update
and 1984 centennial conven
tion plans — NDBA Presi
dent Darold Petersen, presi
dent, Lakeside State Bank,
New Town.
State legislative/regulatory
report — H arry Argue,
NDBA executive director.

Northwestern
Banker, September, 1983
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Federal Reserve Bank of St. Louis

NoDakBankPac Progress Re
port —
Northeast - Edward Olson,
First National Bank in Grand
Forks.
Northwest - Wayne Stroup,
Garrison State Bank.
Southwest - Roger Berglund,
Dakota Western Bank, Bow
man.
Southeast - John Breitbach,
First National Bank, Oakes.
Retired Lives Reserve In
surance Program — Chris
Morgan, C.L.U./Attorney,
Kansas City Life Insurance
Company, Kansas City, Mo.
NDBA Advertising Program
Presentation —
Northeast - Terry Rime, First
Bank of Langdon.
Northwest - Gary Lloyd,
First American Bank, Rugby.
Southwest - Ronald Keeley,
United Bank, Bismarck.
Southeast - Stan Taylor, Far
go National Bank.
Group business meeting and
election of officers/NDBA ex
ecutive council members —
group president.
5:30 Social hour.
6:30 Dinner.
7:30 Adjournment.

First Bank Bismarck recently
promoted Terry
Sawicki to agri
cultural loan of
ficer, according
to Bob Westbee,
president.
Mr. Sawicki’s
p re v io u s em
p lo y m e n t in
cludes loan ex
perience w ith
tk
T. SAWICKI
Farmer’s Home
Administration, Production Credit
Association and the Federal Land
Bank.

New President Named
At First Bank Cooperstown

The board of directors of First
Bank Cooperstown has elected Rob
ert W. Jorgensen president, effec
tive August 15.
Mr. Jo rg e n
sen, who suc
ceeds the late
H o w ard
E.
Brash, has been
associated with
First Bank Sys
tem, Inc., since
1970, when he
jo in e d
F ir s t
B an k
G ra n d R.W. JORGENSEN
Forks as a management trainee. He
joined First Bank Cando later that
year as manager of installment lend
ing and was appointed assistant
cashier in 1972. In 1975 Mr. Jorgen
sen joined First Bank Valley City as
assistant vice president of commer
O fficer Joins Oakes Bank
cial and agricultural lending. He has
Don Kapfer has joined the staff of held his current position as vice
The First National Bank of Oakes as president of First Bank Park River
instalment and real estate loan of- since 1978.

1983 North Dakota Group Meetings
Date
September
September
September
September

26
27
28
29

Group
Northeast
Northwest
Southwest
Southeast

Location
Artclare Motel, Devils Lake
Andrew’s Steak House, Rugby
Elks Club, Dickinson
The Ranch, Ellendale

Bank oí North Dakota
BUILDING A BRIGHT FUTURE...
...FROM AN INNOVATIVE PAST!

BANK OF NORTH DAKOTA
S TA T E M E N T O F C O N D IT IO N

Ju ne 30, 1983
RESOURCES

LIABILITIES

C ash a n d D ue fro m Banks
.$
U-S. G o v e rn m e n t S ecurities . . .
..
Federal A g e n c ie s S ecurities
B ankers A c c e p ta n c e s and
O ther In vestm ents
State and M u n ic ip a l S e c u ritie s ...............
Federal F u n d s S o l d .......................................
S ecurities P u rc h a s e d U n d e r A g re e m e n t
to Resell

4 8 ,9 3 9 .7 9 5 .5 5
1 2 9 .3 3 2 .3 3 8 67
9 1 ,0 6 5 .4 6 0 .2 7
10.8 5 0 ,1 4 5 .1 5
1 7 ,2 89,247.57
187 0 8 0 ,0 0 0 .0 0

D e m a n d Deposits:
Individuals. P artnerships
$
N e w A c c o u n ts - P u b lic .
D eposits o f B anks

6.470,341 24
1.003.461 11
3 ,7 5 3 .5 7 8 .1 4
2 9 .9 8 9 ,6 7 3 .0 6

State and Political
1 8 4 ,1 5 0 .0 0 0 .0 0

S u b d ivisio n s

4 5 .1 6 6 .9 8 1 .6 6
1 .956.465 17

O fficial C hecks, etc.

8 8 ,3 4 0 .5 0 0 .3 8

Loans
Fm FIA B usiness &
Industry G u a ra n ty
F m H A Flousing G u a r a n ty ......................
F H A a n d Gl
H o m e L o a n s .......................................
Farm R.E. L o a n s .......................................
R E. C o n tra c ts ......................
Loa n s to
State In s t it u t io n s .............................
............
B ank S tock L o a n s . .
N .D . B a n k P articipation
L o a n s .........................................................
Federally Insured
S tu d e n t L o a n s .......................................
O ther L o a n s ...............................................

6 .5 0 3 ,0 5 7 .0 4
1,1 7 2 .2 1 6 25
168 ,5 1 9 ,0 9 2 .1 0
1 8 ,1 3 9 ,5 8 1 .4 3
1 7 7 ,0 0 2 .2 3

Tim e and S avin g s D eposits
Individuals, P artnerships
a n d C o rp o ra tio n s
.
State and Political
S ubdivisions

3 9 3 ,7 8 8 ,1 9 0 26
4 2 3 .0 1 9 170.22

1 5 1 ,6 8 5 .7 5
6 ,3 0 8 ,4 7 4 .6 2
1 1 .5 0 7 ,7 3 6 .5 2

TO T A L D E P O S IT S ..........

8 9 ,2 8 1 ,5 1 3 .8 4

A c c ru e d Interest P ayable .
.
O ther L ia b ilit ie s .......................................

3 1 3 ,3 1 7 00
1 ,3 9 9 ,2 4 3 .3 2

2 9 .2 3 0 .9 7 9 96

511 3 5 9 .6 7 0 .6 0

Fed. Fds. P urch. & Sec Sold
U n d e r A g re e m e n t to R epu rch a se

L o n g Term D eb t-M tg . B o n d s ....................
R eserves .

.............................

. 3 8 1 ,5 1 6 .7 8 8 .2 4
5 ,7 0 1 ,3 0 3 .7 8
4 .0 9 0 ,3 5 9 .5 0
3 5 .1 5 8 0 0 0 .0 0
6 ,5 0 0 ,0 0 0 .0 0

...................... . . 1 6 .0 0 0 .0 0 0 .0 0
S u r p lu s .............................................................. . .1 8 ,0 0 0 ,0 0 0 .0 0
C apital

T O TA L L O A N S ..........................................
A c c ru e d Interest R e c e iv a b le ......................
B a n k B u ild in g and E q u ip m e n t
U n a m o rtize d B o n d Issue C osts
O ther A s s e t s ....................................................
T O TA L R E S O U R C E S .

. 3 0 3 ,4 7 2 ,9 2 0 .1 0
1 0 ,1 9 9 ,2 7 7 ,5 8
1 ,4 1 0 .4 3 8 66
9 8 6 ,5 0 5 13
4 ,8 1 8 ,0 4 5 .3 2
$ 9 8 9 ,5 9 4 ,1 7 4 .0 0

11,268,051 88
5 1 ,7 6 8 .0 5 1 .8 8
T O T A L LIABILITIES,
RESERVE & C A P IT A L

THE NATION S ONLY STATE OWNED BANK
North Dakota Industrial Commission
Allen I. Olson, Governor
Chairman
Robert O. Wefald, Attorney General
Member

H. Kent Jones, Agriculture Commissioner
Member

*** H.L. Thorndal, President ***

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

$ 9 8 9 ,5 9 4 ,1 7 4 .0 0

Bank of
M Dakota
Northwestern Banker, September, 1983

62
ing the program which guarantees
payment of the land loan to the
seller on contract-for-deed and con
North Dakota Industrial Commis ventional loan sales. The seller must
sion has approved a loan payment pay a nominal fee in order to be a
guarantee program for individuals part of the “Guaranteed Loan Pro
selling farm lands to beginning gram.” “In the event of default,”
farmers under conventional loan or Mr. Jones said, “the Bank of North
contract-for-deed arrangem ents, Dakota would then pay the seller,
that provides an additional form of deed-holder or lender.”
security on such loans that can serve
According to the Agriculture
to open new sources of credit for Commissioner, the guaranteed loanfarmers and ranchers in buying and payment program would pay 90% of
selling farmlands.
the outstanding balance on the prin
North Dakota Agriculture Com ciple of the loan in the event of buyer
missioner Kent Jones said the Bank default.
of North Dakota will be administer
Mr. Jones also reported the guar

Loan Program Approved
For Beginning Farmers

anteed payment program is ear
marked to assist only beginning
farmers in purchasing land, with the
payment guarantee being valid in
the first five years of the loan, giv
ing the buyer an opportunity to
build adequate equity and to also
protect the seller’s interest in the
first years of the arrangement.
He said beginning farmer qualifi
cations are the same as those for
Beginning Farmer Loan Program;
he must derive at least 50% of his
gross income from farming, have a
net worth of less than $ 100,000 and
be a North Dakota resident purchas
ing land in this state.
Manning started part-time at First
Bank Aberdeen in 1975.

SDBA Group Meetings
Agenda Announced

Sioux Falls Elects
Two, Advances Three
First Bank of South Dakota,
Sioux Falls, has elected two officers
and advanced three others.
Janice Lahr
was elected re
tail banking of
ficer,
Sioux
Falls-East
Branch; M ark
V eu rin k was
elected loan of
ficer,
W essington Springs;
T erry K appes
an d
M arv in
Doering were advanced to assistant
vice president, both at Sioux FallsMain Office, and M. Cory Manning
was promoted to product and train
ing officer, Sioux Falls-administra-

South Dakota Bankers Associa
tion Group Meetings will be held
this year beginning September 19
and running through the 23rd. The
afternoon session for each meeting
will begin at 3:00 with a top manage
ment seminar held in round table
tive services.
discusssion groups, similar to what
Ms. Larh’s career with First Bank was done in 1982.
has spanned 20 years. Mr. Veurink
An evening reception and social
will start at 6:00 with dinner at 7:00.
No dinner speaker has been scheduled
to allow all bank personnel atten
ding to share in fellowship.

New CEO for Yankton Bank
Larry F. Ness has been appointd
chief executive officer of First Da
kota National Bank, Yankton, effec
tive August 15.
M. DOERING
M.C. MANNING
Mr. Ness previously was with
began with First Bank in 1981 in the First National Bank of Volga, where
Madison office. Mr. Kappes started he served as executive vice presi
in 1977 in the Sioux Falls East dent since 1981. Prior to that he was
branch. Mr. Doering started work vice president of the First Mitchell
ing summers at Wessington Springs National Bank and a national bank
in 1973 while attending college. Ms. examiner.

South Dakota Group Meetings

M. VEURINK

T. KAPPES

Northwestern
Banker, September, 1983
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Federal Reserve Bank of St. Louis

Date
September 19

Group
I

September 20
September 21
September 22

III
II
IV

September 23

Location
Minnehaha Country Club,
Sioux Falls
Holiday Inn, Mitchell
The Galley, Webster
Wrangler Motor Lodge &
Moose Lodge #1685, Mobridge
Howard Johnson’s Motor
Lodge, Rapid City

Appointed in Littleton

—

Ann Zegob Hoffman has been ap
pointed assistant vice president of
United Bank of Littleton.
Prior to joining the bank in July
of this year, Ms. Hoffman was a
commercial banking officer with
United Bank of Denver.

Colorado
N.M. Dean, pres., Greeley
D.A. Childears, exec, mgr., Denver

Joins Greeley Bank
Eight Promoted At
IntraWest Bank, Northglenn
IntraW est Bank of Northglenn
has announced eight promotions, in
cluding that of Rocco Villani to sen
ior vice president and senior loan of
ficer.
Mr. Villani, with the bank since
1973, will be responsible for all com
mercial, real estate and consumer
lending in his new position.
Van T. Rametta, formerly assis
tant vice president, has been named
vice president and manager of con
sumer banking. He joined the bank
in 1978.
Bere S. Neas, a former assistant
vice president, has been appointed
president and manager of commer
cial and real estate lending. Mr.
Neas joined IntraW est Bank of Den
ver in 1976 and moved to IntraWest
Bank of Northglenn in 1979.
Lillian D. Alma, with the Denver
Bank from 1973 until 1979 when she
joined the Northglenn bank, has
been appointed assistant vice presi
dent in charge of personnel and
training.
Clayton L. Collier, who joined the
bank in 1979, was promoted to assis
tant vice president of commercial
lending. Krieg Failing, with the
bank since 1978, and Beverly J.
Fischer, an employee since 1970,
were named assistant vice pres
idents in the consumer banking de
partment. Lynda D. Barber also was
appointed marketing officer of the
bank.

Norman L. Eaton has joined Col
orado National Bank - Greeley as
Karl E. Kehmeier and Thomas C. vice president of loans, and will be
Patton have been named assistant responsible for loan administration.
Mr. Eaton brings with him to the
vice presidents of First Colorado
bank 18 years of experience with
Bank & Trust, Denver.
Mr. Kehmeier, who will be work banks in Eaton, Colo.; and Colby
ing in the real estate division of the and Scott City, both in Kansas.
bank, was previously with Intra
West Bank of Denver, where he
served as corporate loan officer and IntraWest Financial Corp.
correspondent broker.
Names Three New V.P.s
Mr. Patton, First Colorado’s new
Three new vice presidents have
director of marketing and training, been named by the board of Intra
has over seven years of banking ex West Financial Corporation, Denver.
perience with Colorado National
Fell L. Stubbs
Bank and Colorado National Bank- has been pro
shares, Inc.
moted to vice
president - af
filiate liaison.
Elected in Colorado Springs He joined the
company in 1973
Jerry Hayes has been elected and has served
senior vice president of The Western as assistant vice
National Bank
p re sid en t and
of
C olorado
assistan t trea
F.L. STUBBS
Springs, respon
surer of the cor
sible for all lend
poration since 1980.
ing activities in
the commercial,
installment and
m o rtg a g e d e
partments of the
bank.
M r. H ay es
j. HAYES
began his bank
ing career in Newport, Oregon in
1968.

Two Named in Denver

R.R. ADAMS

Promoted in Denver

First Interstate Bank of Denver
has announced the promotion of
Evergreen Names New Officer Gregory A.F. Skarda to assistant
Colorado National Bank - Ever vice president in the correspondent
green recently promoted James H. banking department. Lynn M. Jef
Hatch to the position of operations fries has joined the bank as assis
officer.
tant vice president in the metropol
Mr. Hatch joined the bank in itan banking department.
June, 1983, as administrative opera
Prior to his promotion, Mr. Skar
tions manager. Prior to joining the da was a correspondent banking of
bank, he was with Colorado Na ficer. He joined the bank in 1982.
tional Bank of Denver and the First Ms. Jeffries previously was with
National Bank of Tulsa.
First Colorado Bank and Trust.

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Federal Reserve Bank of St. Louis

S.K. KOONSMAN

Ralph R. Adams was named vice
president and senior credit manager,
a new post with responsibility for
administration of credit policies. For
the past 10 years he has served as
senior vice president in credit ad
ministration for IntraW est Bank of
Denver.
Susan K. Koonsman has been
named vice president and manager
of human resources. She previously
was assistant vice president and
manager of benefits administration
at IntraW est Bank of Denver.
Northwestern Banker, September, 1983

Colorado News

Elected in Denver
IntraW est Bank of Denver has
named R. Robert Smith, executive
vice president, and Gary DeFrange
and Frank E. Pierro, senior vice
presidents.
Mr. Smith, who manages the
bank’s treasury division, joined in
1963 as a credit analyst in the cor
respondent bank department.
Mr. DeFrange joined in 1979 and
currently is manager of bank ser
vices. Mr. Pierro previously was
with Wells Fargo Bank in San Fran
cisco as vice president and loan
supervisor. In his new position he
will serve in credit administration.

Boulder President Named
Colorado National Bank - Boulder
recently elected Gary G. Cassell
president.
Mr. Cassell has 19 years of bank
ing experience which includes serv
ing as president of Colorado Na
tional Bank - Fort Collins, and vice
president and director of Republic
National Bank of Englewood. He
has a BS degree in business admin
istration and economics from Colo

rado State University and attended
the graduate school of banking at
the University of Wisconsin.

United Banks of Colorado
Opens Two New Banks
United Banks of Colorado, Inc.,
has received Federal Reserve Board
approval for two new banks.
United Bank of Fort CollinsSouth, located at 3665 John F. Ken
nedy Parkway in Fort Collins, is ex
pected to open in November of this
year. Serving as chairman and chief
executive officer is Wesley G. Johnsen, president and chairman of
United Bank Fort Collins and chair
man of United Bank of Longmont.
Thomas S. Byington, a vice presi
dent at United Bank of Fort Collins,
will become president of the new
bank.
United Bank of Academy Place,
Colorado Springs, was opened last
month, temporarily located at 5360
North Academy Boulevard. Gar L.
Anneler, president and chairman of
United Bank of Colorado Springs,
will assume additional responsibil
ities as chairman and chief executive

What makes a banker good
enough to be a Better Banker? Skill,
knowledge and consistency,
for starters.

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Federal Reserve Bank of St. Louis

officer of the new bank. Craig A.
Ockers was named president. He ^
presently is senior vice president
and manager of lending at United
Bank of Arvada.

Texas Investors Purchase
Three Colorado Banks
Three Colorado banks have been
sold to a group of Texas investors.
Included are Dominion National
Bank and Market National Bank of
Denver and Alamosa Bank Corp. of
Alamosa. Purchasers are the KippRich Group of El Paso, Texas.
George L. MacGregor, Jr., chairman of the board of the three banks,
said, “Although 100 percent of the
stock was purchased, there soon will
be strong Denver ownership of the
banks, possibly up to 50 percent of
the stock.”
Principals in the Kipp-Rich Group
are brothers John and William Kipp
and Jack Rich. They own 15 medium-sized banks in Texas, New Mex
ico and Arizona.
Dominion National was founded
in August, 1981. Its assets total $28
million. Market National opened in

^
®

65
IntraW est of Highlands Ranch, by
late next year, will be located in per
manent quarters in a 79-acre com
munity activity center.
Colorado News

•

December, 1982 and has assets of
$8.2 million. Alamosa National is a
76-year old institution with assets of
$30 million.

IntraWest, Denver, Forms
Denver Investment Advisors
IntraW est Bank of Denver has
announced plans to spin off its in
vestment management group as an
operating subsidiary to be known as
Denver Investment Advisors, Inc.
The investment management group
currently manages more than $1 bil
lion in assets for corporate clients. It
also serves as advisor for individual
accounts and commingled funds
managed by IntraW est Bank’s trust
division.
Kenneth V. Penland, a 17-year
veteran of the investment management group, is chairman of the new
subsidiary, and Charles H. (Todger)
Anderson is president.
The board of directors will consist
of John M. Eggemeyer III, bank
president and chief operating of
ficer; W. Robert Alexander, execu
tive vice president and manager of
the bank’s trust division; Caleb F.

Two Named in Greeley
WiMMm,, gmkwsmmmm

K.V. PENLAND

m v

C.H. ANDERSON

Gates; Mr. Penland, and Mr. Ander
son, all of the new subsidiary.
Mr. Penland said, “There will be
no operating changes at Denver In
vestment Advisors. We will contin
ue to vigorously market our ser
vices, to serve our present client
base and to act as investment ad
visor to the bank’s trust division.

New Denver Bank Opens
IntraW est Bank of Highlands
Ranch, Denver, opened July 18 at
330 Plaza Drive.
Gerald W. Deland, previously sen
ior vice president and cashier at In
traWest Bank of Southglenn, serves
as president of the new bank.
Opened in temporary quarters,

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Cache National Bank of Greeley
recently announced the promotion
of Norma C. Loibl and the appoint
ment of Walter B. Clayton, both to
the position of vice president.
Formerly with First National
Bank in Cozad, Nebr., Ms. Loibl
joined Cache National in 1969.
Mr. Clayton started with the
bank in 1973 as a vault teller, joined
Greeley National in 1976 and later
transferred to Affiliated Bankshares
of Colorado, Inc. In 1981 he joined
Greeley National, where he has been
a loan review officer.

Appointed to the Board
Arthur M. Krill has been ap
pointed to the board of South Den
ver National Bank. Mr. Krill is man
ager of corporate planning for
Stearns-Roger, where he was also in
volved in business development.

I'm Don Echtermeyer, Senior Vice
President of correspondent banking
at Central Bank. Wnat I've just
told you is based 100% on objective
evaluation. And 100% biased pride
in the job our people do. We invite
you to call.

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Central
Bank
o f D enver

The Better Bankei
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Federal Reserve Bank of St. Louis

1515 A ra pa h o e S tre e t/D e n ver, C O 802'
(303)893-3456/M em ber FDIC.

1CENTRAL BANCORPORATION, !

BRENTON INTERVIEW ...
(Continued from page 38)
ing our old friend Mark TWain,” he said, "the reported
death of the Community Bank is premature!”
With that emphatic statement, he went on to say, "If
we can get these added services, the community bank
will still be a strong force. We may have to cooperate
with other banks or correspondents to deliver some of
them — for example, our Iowa Transfer System delivery
statewide — but if we can deliver them, we will continue
to be viable and profitable.” Here, he stopped and smiled,
"I sure hope so. All our banks are community banks!”
Continuing, he stated, "In the midwest ag area our
biggest problem is loss of population and loss of jobs. We
must work for employment and economic development.

During the photo session at the farm. Bob stopped with John
Thomas (left), mgr. of Brenton Farms, and his son, Bill, at right,
who worked there during the summer, and chatted with John Stajcar (second from left), who was busy with routine maintenance
painting all the metal buildings in the hog confinement area.

The numbers are just not needed on the farms that
probably will continue.”
How does ABA fit into this picture? "The Community
Bankers Division,” he stresses, "will help bring about a
delivery system for these new products for small banks.
MABSCO is an example of things that are good and can
be done. In the coming year we plan to pursue the ABA
legislative committee’s plan to seek these new financial
products. The Reagan administration has introduced a
bill to do this.
"In the next year, we may see legislation defining what
a bank is, and the powers, products and services it may
provide, and describe more definite lines between the
banking business and commerce. The ABA wants a bank
defined so we gain equality. The others should live by the
rules, or they aren’t a bank. Right now, the rules rule us,
and others can do anything they want. Congress can do
one of three things: 1. Nothing, which is likely in a
political year. 2. Impose a moratorium, which might be
bad because it would keep banks from these services but
would fail to keep unregulated ones from adding to their
services. So, ABA is against a moratorium, either
temporary or permanent. 3. Define what a bank is, its
powers and so forth.”
Bob Brenton agrees that "there will be many people
with strong opinions. This could take some time and
would be very controversial just before election. Another

Northwestern
Banker, September, 1983
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Federal Reserve Bank of St. Louis

fact is that market forces are shaping the financial
services buisness, and the states, with new laws or
regulations, are allowing new services to happen. Maybe
that’s the way it will happen if Congress is unwilling to
face change. At that point, Congress and the Administra
tion may find themselves like a General running to keep
up with the troops.”
New Problems Will Surface
"There are two long-range things in the wind in
Washington, Bob observes, that "ABA has not yet
tackled with its Leadership Conference. One is the
suggested merger of FDIC, FSLIC and the CUNA
insurance arm. The other is the proposed merging of
federal regulatory functions. These are very controver
sial. I expect they will be brought up to the Leadership
Conference this fall and will no doubt take several
conferences to achieve a consensus. The driving force
behind combining federal regulatory functions is to get
everyone playing by the same rules so thrifts have to live
by the same capital rules as banks and have the same
products, for example.”
There is an endless stream of priorities and interests
with which ABA must concern itself, he notes — among
them the ABA’s continuing dialog with USDA through
the ABA Ag Thsk Force, which he has headed. Other
topics include such studies as the IMF problem, bank
ruptcy legislation, new disclosure rules by the FDIC, and
new legislation almost weekly on a continuing basis.
Whatever the coming ABA year brings, bankers can
be assured that their interests will be represented by a
president who shares the same daily experiences as
community bankers, as well as the same challenges as
holding company corporate executives. Above all, he has
a prime concern and is a champion for the customers and
the communities their banks serve. Although city-bom,
he is truly a "man of the soil,” yet moves easily in
business circles and is at home in the corporate suite. It
is these qualities that will make the service of Bob
Brenton as president of ABA in the coming year another
proof of the adage, "like father, like son.”

ANNUAL AG OUTLOOK SURVEY ...
(Continued from page 33)
manufacturers have experienced lower demand for their
equipment.
"In summary, most of our ag-related businesses have
suffered, but the financial future for next year looks
considerably better.”
A more tempered point of view about the future of
agriculture is offered in closing remarks by Mr. Tbngwall:
"Our concerns are longer m n as to what we will do with
the basic difficulty of over supply and lack of demand. We
seem to have geared our plant now so that our capacity
both in terms of acreage farmed and yield improvements
is outstripping our ability to sell, especially internation
ally. In the light of that sort of backdrop, we are not as
optimistic over the next several years as one might have
been when our share of exports was greater and when we
were actually farming less land, say six to eight years
ago. Certainly, 1984 may be a very crucial year in terms
of government policy (maybe every year is, any more)
and that will bear close watching by people in the
financial services business extending those services to
agriculture.”

Cheyene Executive Named

Wyoming banker, Paul A. Chris
tensen, has joined United Savings of
Wyoming, Cheyenne, as executive
vice president/lending.
Mr. Christensen, 43, joins Chey
enne-based United from Wyoming
National Bank of Casper where he
D.H. Babbitt, pres., Worland
was
executive vice president in
M.C. Mundell, exec, dir., Laramie
charge of all lending.
A 1961 graduate of the Universi
ty of Wyoming with a degree in bus
administration, Mr. Christen
WBA Announces Committee Chairmen iness
sen began his banking career with
Trust—E.L. Patrick, senior vice United Bank of Denver in 1964,
HE WYOMING Bankers Asso
ciation has announced chairmen president and trust officer, First Na moved to Valley National Bank of
and members of its various commit tional Bank & Trust Company of Phoenix in 1971 and has been in
Casper since 1972.
tees for the 1983-84 year. Listed be Wyoming, Cheyenne.
WBA
Support
of
4-H
Clubs—
low are the chairmen:
Donald C. Brayton, senior vice presi
Legislative—Cliff E. Kirk, ex dent of Commerce, Sheridan.
Casper Officer Promoted
Washington Trip—Hale Kreycik,
ecutive vice president, First Na
Brian Jones has been promoted to
president, Converse County Bank, assistant trust officer of First In
tional Bank of Gillette.
Chief Executive Officer’s Confer Douglas.
Bank of Casper, according
Nominating—Henry A. Hitch, terstate
ence—Robert Pappenheim, presi
to Henry A. Hitch, president.
dent, First Wyoming Bank, N.A. president, First Interstate Bank of
Mr. Jones started with the bank
Casper, N.A.
Rawlins.
as a trust administrative assistant
WBA Convention Athletic Direc in July, 1982. He previously worked
Agriculture—Lloyd Snyder, vice
president, American National Bank tor—John Easterbrook, president as an associate broker for Capital
and chief executive officer, Amer Realty and has a BS and Masters de
of Powell.
WBA Credit Conference—R.P. Fitz ican National Bank, Laramie.
from Colorado State University
Audit—David Wallen, admini gree
gerald, vice president, First In
in business administration.
strative vice president, First Inter
terstate Bank of Casper, N.A.
WBA Consumer Credit Confer state Bank of Laramie, N.A.
Resolutions—Hugh Caton, presi BAI Names New Officers
ence-B rad Pickering, loan officer,
First Wyoming Bank, East Chey dent, First National Bank of PineRayburn S. Dezember, chairman
dale.
enne.
of
the board of American National
State AIB Chairman—Mark KinCoordinating with State Treasur
Bank,
Bakersfield, Calif., and presi
er—Dick Van Pelt, president, First ner, vice president, First Interstate dent and
chief executive officer of
Bank of Casper, N.A.
Wyoming Bank, N.A.-Laramie.
Central Pacific Corporation, holding
company for American National
Bank, has assumed office as chair
Noel to Assume Presidency Elected to FWB Board
man of the board of directors of
John A. Guthrie, Jr., has joined Bank Administration Institute for
At Wyoming National Bank
Robert T. Noel, executive vice the board of First Wyoming Bancor- the 1983-84 fiscal year.
Mr. Dezember succeeds William
president of Affiliated Bank Corpor poration, following the merger of the
Bank
of
Laramie
with
First
Wyom
H.
Dougherty, vice chairman of
atio n , C asper
ing Bank, N.A.-Laramie.
Southeast Banking Corporation and
will assume the
Mr. Guthrie began his banking Southeast Bank, N.A., Miami, who
position of presi
career
in 1949 with the First Na continues to serve on the Institute’s
dent, chief oper
tional Bank of Laramie. In addition board as immediate past chairman.
ating officer and
he is a past president of the Wyom
Serving as BAI’s chairman-elect
a director of the
ing Bankers Association.
is Robert C. Isban, executive vice
W yom ing N a
president of Manufacturers Han
tio n a l B ank,
over Trust Company, New York. As
C asper filling
Future Convention Dates
chairman-elect, he serves on the
the post vacated
For a look at the future, the board’s executive and finance com
by the resigna
following dates have been set for mittees.
tion of Robert L.
The Institute’s 1'1 -member exec
Hays. Mr. Noel will continue to future conventions of the Wyoming
serve as executive vice president Bankers Association, as now sche utive committee also includes John
S. Poelker, president and chief finan
duled by Jackson Lake Lodge:
and a director of ABC.
cial officer of Citizens and Southern
1984— June 13-15
Mr. Noel joined ABC in 1982, fol
Georgia Corporation in Atlanta,
lowing a banking background that
1985— June 17-19
who continues as secretary/trea1986— June 16-18
included California, Colorado and,
surer.
1987— June 15-17
since 1971, Wyoming.

Wyoming

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Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1983

What we can do
behind the scenes
will help you
in front of
your customers.
The most efficient use of time,
the best possible day-to-day
clearing of items, and the least
costly methods of operation are
what distinguishes the exceptional bank from the ordinary.
The first step toward becoming
an exceptional bank is to know
an exceptional correspondent
processor. One who can help you
behind the scenes.
Norwest Bank Omaha has the
operational talent and processing
experience to help make a
difference in your bank.

_
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•

For a better idea of how we
can help you behind the
scenes, call Tom Jackson,

402/536-2083.

•

Norwest Bank Omaha
(formerly U.S. National Bank of Omaha)
Member FDIC

i f

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Northwestern
Banker, September, 1983
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Federal Reserve Bank of St. Louis

Nebraska
D.G. Johnson, pres., Pilger
S. Matzke, Jr., exec. v.p., Lincoln

900 Attend NBA Group Meetings
By BEN HALLER, JR.
Publisher
ORE THAN 900 persons regis
tered for the four group
m e e tin g s c o n d u c te d by th e
Nebraska Bankers Association last
I) month in Scottsbluff, Kearney, Lin
coln and Norfolk. The same program
was presented at each meeting.
NBA President Don Johnson,
president of Farmers National Bank
•
in Pilger presided at each session.
Appearing with him on the pro
grams were Stan Matzke, Jr., NBA
executive vice president; Bill
Brandt, NBA general counsel; Paul
# Amen, Nebraska director of bank
ing, and Lee Bachand, chairman of
the NBA correspondent banking
committee.
Mr. Johnson and Mr. Matzke
•
reviewed the two new booklets
recently made available to all NBA
members. One is the association
directory which lists all the officers
and staff, committee members, of•
ficers and directors of NETS, Inc.,
and Nebraska Bankers Insurance
and Services Company, Inc., the
past presidents’ club, associate
members, and all ABA affiliations
™ of Nebraska bankers working on
ABA committees.
The Service Book describes the
various services and functions that
^ NBA performs or fulfills for its
^ members. Examples are legislative
monitoring, professional develop
ment, videotape library, com
munications and statewide advertisH ing, legal counsel and compliance
handbook, EFT and insurance.
Mr. Amen discussed the com
ponents of LB241, stating the five
parts were more complicated than
^ intended. “ Its main tent,’’ he said,
“was to deal with failing banks.” He
advised taking sections one and two
together, which define a failing in
stitution
^
Basically, he said, “sections three
and four have two purposes. The

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Federal Reserve Bank of St. Louis

first is to keep out-of-state institu
tions from acquiring our Nebraska
institutions, and the second is to
have an exemption to the branching
law to keep the failed bank alive in a
community as a branch.” He said
that through the ability of the
Nebraska department to know
which banks are strong and well
managed and can take over a failed
bank in an emergency, it eliminates
going through the FDIC as receiver,
then the opening and bidding pro
cess.
Mr. Amen said section five deals
with “solvent” institutions and re
quires a public hearing where the ap
plicants must prove the need in con
nection with an acquisition.
Mr. Brandt discussed LB 343, a
bill sponsored by banks and PCAs,
to address the effort in the last ses
sion by elevator operators to change
the UCC law which requires the
buyer to check to see if grain being
sold to them has a clear title or if the
farmer has a lien against it. This was

69
a concerted effort in a number of
m id w est s ta te s by e le v a to r
operators. Mr. Brandt said 343
would require the State of Nebraska
to have computerized central filing
by January 1, 1985. Information col
lected at the local level would be fed
into the Secretary of State’s records
on the state computer. Any person
accessing the computer via another
computer, or calling the state office
by phone, would have an immediate
report on whether a financing state
ment is on file for a given customer
at the local Court House. The
system could by accessed by AgNet,
developed by the University of
Nebraska Ag College.
Mr. Bachand briefly discussed
LB58, the bill enacted last session
which authorizes multi-bank holding
companies in Nebraska. “The main
effect,” he noted, “has been to con
coct rumors...and we’ve all heard
many!” Mr. Bachand said he feels
LB58 “will shore up bank prices, I
feel they are depressed today due to
deregulation, resulting in narrow
spreads and asset quality. He
predicted some will benefit from
consolidation, but “the vast majori
ty of independent banks will remain
so. I would guess that chains of
banks will be consolidated to one
bank. There will be some acquisi
tions and mergers across the states
and within cities.
Ace Reid, noted cowboy car
toonist, was the after-dinner speaker
at each of the four groups. He ac
companied his light patter with
quick drawings of some of his car
toon characters, then handed them
out to bankers in the audience.
□

ADDRESSING each of the four Nebraska Bankers group meetings last month were, from
left: Paul Amen, Nebr. dir. of bkg.; Don Johnson, pres, of NBA and pres., Farmers Natl.,
Pilger, and Bill Brandt, NBA genl. counsel.
Northwestern Banker, September, 1983

Omaha
First National Bank of Omaha
has announced the recent addition of
Gerald J. Tomka
to the correspon
d e n t b an k in g
department as a
c o rre sp o n d e n t
banking repre
sentative.
M r. T om ka
graduated from
Creighton Uni
versity with a
G.J. TOMKA
degree in bus-

iness administration and has had
several years experience as an agri
cultural loan officer.
*

The election of Doe Cohn and
Elaine Dishman as commercial
banking officers, corporate financial
services, has been announced by
Norwest Bank Omaha, N.A.
Ms. Cohn graduated from the
University of Texas, Austin, with a
BA in economics. She joined Norwest’s bank card department in
1979 and worked in various credit

BO ND DEPARTMENT

Tom Grove

Karen Lee

Senior Vice
President

Bond Investment
O fficer

Investm ent Banking
O fficer

adjustment positions until her 1982
move to corporate financial services.
Mrs. Dishman is a native of Sioux
City, Iowa. She spent two years in
the marketing division of IBM be- #
fore joining Norwest in 1981 as a
marketing representative in cor
porate financial services.
*

Jim Kay

Darla Sorenson

Bond Investment
O fficer

CALL US...WE WANT TO BE YOUR BOND PEOPLE...
packers national bank
BO ND DEPARTMENT
402-731-4900
Nebraska WATS... 800-642-9980
Iowa WATS... 800-228-5398
4710 South 23rd Street

Northwestern Banker, September, 1983
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Federal Reserve Bank of St. Louis

O m ah a, Nebraska 68107

Darla M. Sorenson has joined
Packers Nation
al Bank as a
bond investment
officer.
A municipal
securities regis
tered representa
tive, Ms. Soren
son joined Pack
ers with several
y e a rs in v e s t
ment and trad D.M. SORENSON
ing experience at a Minnesota bank.
Douglas County Bank & Trust Co.
recently announced the following
promotions and elections.
Richard Kuhns has been promo
ted to vice pres
ident in the com
mercial loan de
p a rtm e n t. He
joined the bank
in May, 1982,
and is a grad
uate of the Wis
consin Graduate
School of Bankm g.

Bond Investment
O fficer

R. KUHNS
Marshall Hohman has been promoted to an assis
tant vice president in the instalment
loan division. Mr. Hohman joined in
1976 and is a graduate of the Uni
versity of Nebraska at Omaha.
Larry B. Good has been promoted
to assistant vice president, commer
cial loans. He joined in November,
1982. A Creighton University grad
uate, Mr. Good has a BS/BA degree
in finance and a MBA degree from
Creighton as well.
Newly elected members to the

mÊmmÊÊm.

Fred Kuehl

iiW

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« llr k

■■■■^■■1

Gerry Tomko

*■■

Mork Sorensen

THE
ANSW ER
MEN
CORRESPONDENT banking can be confusing, frustrating,
time-consuming. Not so at First National Bank of Omaha.
Just call to get the answers from one of our six experienced
correspondent bankers. Six men with the very latest
financial technology at their fingertips dispensing profession
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So call us for the answers to your correspondent
banking questions — on electronic data
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fed-fund transactions and more.
In Nebraska, call 1-800-642-9907. Outside
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answers from us, the answer men.

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Federal Reserve Bank of St. Louis

o f o m a h a
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Northwestern Banker, September, 1983

Nebraska News

Remodeling Completed at Schuyler State

Bank of Commerce, and Treasur- ^
er—Stan Wirth, Beatrice National
Bank.
The Chapter has scheduled three
program meetings for the 83-84
term. The first meeting is tentative- £
ly scheduled for October 11 or 18.
An update with more details can be
found in a forthcoming issue.

V.P. Joins Syracuse Bank

SCHUYLER State Bank and Trust held an open house July 28-30 to celebrate the comple
tion of the bank’s recent remodeling and newly constructed addition. Schuyler State,
which has been in business for 109 years, purchased an adjacent building in 1982 which it
in turn remodeled to provide new offices, an expanded work room and a computer room.
Future plans include the addition of an ATM. The above photo shows the bank interior after
remodeling was completed.

Darrell Legband has joined The
First National Bank of Syracuse as
vice president and senior loan of
ficer.
Mr. Legband’s banking career in
cludes 17 years at The First Na
tional Bank and First State Bank in
Fremont and eight years at Citizens
Bank of Oregon in Eugene, Oregon.

Promoted in Kearney

Platte Valley State Bank & Trust,
Kearney, recently promoted Mari
board are: Harry N. Andersen, presi for the Iowa-Nebraska Chapter of lyn Sukstorf to assistant cashier.
dent of Millard Electric Co., Inc.; the Bank Marketing Association
Ms. Sukstorf has been with the
Rex E. Ekwall, president and owner was held June 29 at the Omaha Mar Kearney bank since 1976 and in
of Rite Way Oil & Gas Co., Inc.; Wil riott Hotel. Ellen Wrend from the banking since 1959.
liam G. Hanley, president of Cum Bank Marketing Association in Chi
mins Great Plains Diesel, Inc., and cago attended the meeting and aided
P.J. Morgan, president of P.J. in the discussion of chapter by-laws, Applications Approved
Morgan Co.
election of officers and directors,
Paul J. Amen, director of the
discussion of potential meetings and State of Nebraska Department of
possible speakers for future meet Banking and Finance, recently ap
ings.
proved the application of American
The following officers were elec Savings Company, an industrial
ted: President—Don Petersen, Oma loan and investment company in
ha National Bank; 1st Vice Presi North Platte, to merge into Amer
dent—Dave Simmons, Fremont Na ican Security Bank, North Platte.
tional Bank; 2nd Vice President-Don
Lincoln Bank East, Lincoln, also
Slifer, Bank of Bellevue; Secre received approval to issue and sell
ta ry —Pam Hunzeker, National $200,000 in capital notes.

New Facility Completed for Ceresco Bank •
Edward A. Kohout, president of
Norwest Bank Omaha South, N.A.,
announced the
election of Rob
ert F. Stubble
field, president
and chief exec
utive officer of
the AAA Cornhusker M otor
Club, to serve as
a member of the
bank’s board of
R.F. STUBBLEFIELD
directors.

Iowa-Nebraska BMA Chapter
Holds Formation Meeting
The Chapter Formation Meeting

Northwestern Banker, September, 1983
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Federal Reserve Bank of St. Louis

FARMERS and Merchants Bank, Ceresco, recently completed construction on its new 0
banking facility which includes a drive-up teller window and brick exterior. Passive solar
heating was used in the window design and a translucent skylight provides daylight on
work areas. Inside, soft subdued colors with oak woodwork provides a warm, friendly at
mosphere for customers and employees both. Bank executives felt the need for a new
facility, with growth and expansion in the community increasing greatly in the past 10-15
years. Bank assets have more than doubled since 1976, with total deposits increasing more #
in the last six years than its first six decades.

“I need a correspondent banker
who’ll work as hard for my bank
as he does for his own.”
That’s just what a working relationship with NBC offers.
If you jud g e them by their ads, correspondent banks look
quite a bit alike. But the banks w e serve are looking for
m ore than a friendly smile and a passing know ledge o f
their special problem s. They’re looking for a professional
partnership they can count on.
O ur w orkin g relationship involves all the traditional
co rrespondent services plus program s that are uniquely
ours: from custom ized bank cash m anagem ent services, to
a clearinghouse for banking forms, to financial planning
software packages for banks and their custom ers. Vital
contact includes our “ News
Views’’ executive letter
citing industry trends and changing regulations.
In to d a y’s co m p etitive financial market, you need that kind
o f su p p o rt from yo u r correspondent. Call us to hear m ore
about w hat our clients mean w hen they say, “ NBC w orks
for m e.”

N SC ,

The Correspondent Banking Division of National Bank of Commerce
NBC Center, 13th & O St., L incoln, N eb rask a 68508, Telephone (402) 472-4321 / Member FDIC

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Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1983

The board of directors of National
Bank of Commerce approved two of
ficer promotions at its July meeting.
James T. Hitt was promoted to
vice president. He has held a posi
tion in trust investments since join
ing NBC in the summer of 1979. He
assumed the position of manager of
the trust investment department in
November of 1981 and was promot
ed to assistant vice president in
December of 1981. Mr. H itt is a
graduate of Iowa State University
and has done graduate work at the
University of Nebraska-Lincoln.

Randy A. Gould, assistant vice
president, automated customer ser
vices division; Charles F. Clifford,
III, cost accounting officer, and
Lavon Fossler, corporate tru st
supervisor.
Mr. Van Horn joined First Na
tional Lincoln in 1981 as an officer in
the municipal and government bonds
division. He has earned degrees
from Kearney State College and the
University of Nebraska.
Mr. Gould joined as a marketing
representative in automated cus
tomer services in 1979. He is a grad
uate of Kearney State College with a
degree in business.
Mr. Clifford is also a graduate of
Ann M. Carlson was promoted to
the
University of Nebraska. He be
assistant vice president. She joined
gan
his career with the bank in 1981
NBC in August of 1980 and was pro
as
a
staff auditor.
moted to trust tax officer in April of
Ms.
Fossler joined the bank in
1981. Ms. Carlson graduated from
1980
as
a staff auditor. She is a
Nebraska Wesleyan University and
graduate
of Nebraska Wesleyan
is a C.P.A. Prior to joining NBC, she
University.
was a senior accountant at Peat,
Marwick, Mitchell & Co.
*

William C. Smith, president of
First National Lincoln, recently an
nounced the promotion of James C.
Van Horn to assistant vice presi
dent and manager, public finance;

An FMA Account Executive can be
a banker’s best friend.
It makes sense to do business with people who know you and know
your territory.
First Mid America is a full-service investment firm which has served
Midwestern investors since 1911. We want to help our region grow
and prosper, just as you do.
So talk to an FMA Account Executive about our wide range of
offerings in municipal, corporate and government bonds, as well
as our many other brokerage services. It could be the start of a
rewarding friendship.

FIRST MID AMERICA INC.
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10306 REGENCY PARKWAY DRIVE, OMAHA, NE 68114 (402) 390-1900

Member New York Stock Exchange,
Chicago Mercantile Exchange and Other Principal Exchanges.

STOCKS, BONDS, OPTIONS, TAX SHELTERS AND COMMODITIES.

Northwestern Banker, September, 1983
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Federal Reserve Bank of St. Louis

Springfield Bank Sold

A group of Nebraska investors
who also own other Nebraska banks,
purchased, in July, all previously
owned interests in Springfield State
Bank.
New directors
of the bank are
Robert P. Hilt,
Jay L. Dunlap,
Robert D. Iske,
Keith May, My
ron K. Osborn,
new vice pres
ident and cash
ier, and Glenn
G.M. ADAIR
M. Adair, presi
dent. No other changes in the bank’s
or insurance agency’s staffs are an
ticipated. Former President E. Dean
Kugler has not yet announced his
future plans.
Mr. Adair has been employed by
the Springfield State Bank for over
33 years, starting as a teller in 1950
and eventually working his way to
executive vice president and cashier
in 1978.
Mr. Osborn previously served as
president of Gresham State Bank
from 1981 until his appointment in
Springfield.

Officer Promotion Told

John Morris has been promoted
to comptroller of First National
Bank of Grand Island.
Before joining the bank in 1981,
Mr. Morris was an assistant nation- Ü
al bank examiner.

The Experienced Professionals
of First National Lincoln.

Ready to meet your correspondent needs.
Put your trust in the correspondent specialists of The First
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of strength and experience as Lincoln’s largest bank.

The F irst Team.
FIRST NATIONAL LINCOLN
13th and M Streets • P.O. Box 81008
Lincoln, NE 68501 • Phone (800) 742-7462
M em ber, F.D.I.C.

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Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1983

Faster availab ility
can im prove
your profit picture.
Item availability can have a
significant impact on your bot
tom line. So, it's important to
choose a correspondent bank
with state-of-the-art data proc
essing services.
That's why so many Iowa
bankers rely on Bankers Trust for
fast, efficient data processing.
We have the resources — both
technology and people — to
provide rapid availability of
funds and data. We would wel

come the opportunity to handle
all of your EDP and cash letter
activities.
For complete information on
Bankers Trust EDP services, call
our Correspondent Banking De
partment, 800-362-1688 (toll-free
from anywhere in Iowa).

Bankers
Trust

co m eC ro w
W it h u s

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Member: FDIC/
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Use our toll-free WATS line

Northwestern Banker, September, 1983
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Federal Reserve Bank of St. Louis

•

L.C. “ BUD" PIKE

AL MASER

R.W. SPEARMAN

NEIL MILNER

President

President-Elect

Treasurer

Exec. Vice President

Iowa Bankers A ssociation
97th Annual Convention
Des Moines Marriott Hotel
Septem ber 1 8 -2 0

•

ORE THAN 3,000 bankers and spouses will be
attending the 97th annual convention of the Iowa
M
Bankers Association in Des Moines, September 18-20,
looking for new techniques that will help them in their
business and personal lives in “Pursuing Excellence,”
theme of this year’s convention. A program loaded
with quality topics, speakers and events has been ar
ranged to assure them success in that pursuit.
IB A President L.C. Bud Pike notes that many of the
registrants “will hit the ground running” as early as
7:30 a.m. on Sunday morning, September 18 when the
convention’s initial function, “Capital Pursuit,” gets
underway. This will consist of a three-mile fun run and
a 10-mile advanced run, co-sponsored with the IB A by
the Des Moines Register. One of those featured in the
run will be Dr. Art Mollen, author of the bestseller Run
for Your Life, whose regular column appears in The
Register.
Registration commences at the Marriott Hotel at
noon Sunday and an extensive exhibit area will open
there at 4:00 p.m. that afternoon and remain open until
7:30 p.m. In addition to a wide array of traditional
bank services and equipment, bankers will be able to
inspect the latest in high-technology equipment now
available to the industry.
An important segment of the convention that should
be of keen interest to all CEOs and other top manage
ment personnel is the Sunday afternoon sessions when

GOV. TERRY BRANSTAD

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Federal Reserve Bank of St. Louis

annual meetings will be conducted for IB A, IBIS,
IBMC and ITS, Inc. All these meetings will be in the
Marriott.
Scheduled to succeed Mr. Pike at the IB A meeting is
A1 Maser, president of the First National Bank in Le
Mars, who has served the past year are president-elect.
Unopposed as the nominee for president-elect for
1983-84 is William Logan, president, The State Central
Savings Bank, Keokuk. Also to be announced at that
time is the name of the new treasurer, who was to be
elected by mail ballot that was counted by a CPA firm
in late August. The new treasurer will succeed Russell
W. Spearman, president, Citizens Savings Bank, Sac
City. Neil Milner is executive vice president in charge
of the professional staff of IBA and its several sub
sidiaries, all located in Des Moines.
Entertainment includes Johnny Cash and June Car
ter in concert Sunday evening at the Civic Center in
downtown Des Moines, Nostalgia Night Monday eve
ning at Hotel Fort Des Moines, and the Inaugural Din
ner and Danny Gans Las Vegas Show Tuesday eve
ning at the Marriott.
The program itself, outlined below, features a
number of nationally known speakers along with a
talented array of businessmen and women from across
the nation, including ABA President William H. Ken
nedy, Jr., Governors Branstad of Iowa and Janklow of
South Dakota; Iowa Rep. Jim Leach and South Caro
lina Sen. Fritz Hollings. Three highly-talented women
also will appear on the program. The Hon. Elizabeth
Dole, Secretary of Transportation in President Rea
gan’s cabinet, will address the Tuesday morning gen
eral session. Her husband is Sen. Robert Dole (R.,
Kan), chairman of the Senate Banking Committee. Ad
dressing the final session Tuesday afternoon is Anat
Yalif, a native of Israel, now a United States citizen,
who headed up the research for Arthur Young & Co. on

GOV. WM. JANKLOW

REP. J. LEACH
Northwestern Banker, September, 1983

Iowa News

behalf of the ABA which identified 13 service markets
listed as profit potential for banks. Muriel Siebert, who
was widely known for her previous role as New York
State superintendent of banking will be a Monday
afternoon panelist.

N. CONOVER

R. KAUTZ

SEN. E. HOLLINGS

A. TUBBS

J. RUAN

G. GERLACH

H. KOEHN

P. DUNLAP
Northwestern
Banker, September, 1983

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

DR. A. LIPIS

A.M.
Sunday, September 18
7:30 “Capital Pursuit“ three-mile fun run, 10-mile
advanced run.
Noon Registration at Marriott Hotel, until 8:00 p.m.
P.M.
1:30 Annual meetings of IB A, IBIS, IBMC, ITS.
4:00 Exhibit Area open, Marriott Hotel, third floor.
5:00 Reception at Marriott, until 7:00 p.m.
5:30 Johnny Cash, Civic Center (1st performance).
8:00 Johnny Cash, Civic Center (2nd performance).
A.M.
Monday, September 19
8:00 Registration at Marriott, until 5:00 p.m.
8:00 Exhibit Area open, Marriott Hotel, third floor.
8:30 “Excellence in Ag Banking“—Marriott second
floor.
Presiding—Neal Conover, chairman, IB A Ag
Committee; vice president, Hayesville Savings
Bank.
Richard Kautz, chairman, Grain Processing
Corp., Kent Feeds, Inc.
Sen. Ernest “Fritz” Hollings (D., S.C.).
Ag Panel—Moderator, A1 Tubbs, president,
First Central State Bank, DeWitt.
John Ruan, president, Ruan Transporta
tion and Ruan Financial Corp.; chairman,
Bankers Trust Company, Des Moines.
Gary Gerlach, president and publisher, Des
Moines Register & Tribune Co., Des
Moines.
John Chrystal, president, Iowa Savings
Bank, Coon Rapids, la.
Rep. Jim Leach, Iowa Congressman, First
District.
12:00 Lunch
P.M.
1:30 “Excellence in a Challenging and Changing In
dustry”—Presiding, L.C. Bud Pike, IB A pres
ident.
Welcome—William H. Kennedy, Jr., president
of ABA; chairman, National Bank of Commerce,
Pine Bluff, Ark.
“Innovative Banking Laws“—Hon. William J.
Janklow, Governor of South Dakota, Pierre.
Panel—Moderator, Hank Koehn, vice president,
Futures Research Division, Security Pacif
ic National Bank, Los Angeles.
Paul Dunlap, president, Hawkeye Bancorporation, Des Moines.
Dr. Allen Lipis, president, Electronic Bank
ing, Inc., Atlanta, Ga.
John Evans, president and chairman, AID
Insurance Services, Des Moines.
Muriel Siebert, chairman, Muriel Siebert &
Co., New York.
8:30 “Nostalgia Night“—Hotel Fort Des Moines.
A.M.
Tuesday, September 20
8:00 Registration at Marriott, until 5:00 p.m.
8:00 Exhibit area open, Marriott Hotel, third floor.

Loan participation
through us can help
improve your bottom line
For that reason,
banks in Iowa depend on
Dick Flesvig and
First Bank Saint Paul.
When your customers rely on you
for financing, they don't have time for
lukewarm "maybes" or "ifs." They expect
a quick, decisive response. The same
kind of response you expect from your
correspondent. It's this kind of mutual
cooperation that is the basis for success.
So when Iowa bankers need a fast,
yet comprehensive solution to their
customers' needs, they look to Dick
Flesvig and First Bank Saint Paul.
And what is a comprehensive
solution? It means that Dick puts his
energies into working with you to
understand the unique financial needs
of your customers. And he is committed
to giving you total support throughout
the entire loan process.
It means responding to your loan
participation requests in all areas—
agricultural, commercial and industrial.
It also means respecting the relationship
you have with your customer.
Not competing for it.
But most importantly, it means that
First Bank Saint Paul will help you
thoroughly evaluate your current and
prospective customers' loan requests.
We can also help you analyze the
potential market for new customers in
your area. All in all, loan participation
through First Bank Saint Paul allows
you to provide total support for your
customers' financing needs. And this in
turn can be a great benefit to your
bottom line.
If you'd like to offer your customers
a comprehensive solution to their
financing needs, call Dick Flesvig at
(612) 291-5577.

First Bank
Saint Paul
Member First Bank System
Correspondent Banking Division
332 Minnesota Street
Saint Paul, Minnesota 55101

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Federal Reserve Bank of St. Louis

Iowa News

9:00 “Excellence in Management”—President, Presi
dent Pike.
Welcome—Hon. Terry Branstad, Governor of
Iowa.
Speaker—Dr. Spencer Johnson, co-author of
“The One Minute Manager. ”
Speaker—Hon. Elizabeth Dole, Secretary of
Transportation, Washington, D.C.
11:30 50-Year Bankers and Past Officers.
Noon Luncheon.
P.M.
2:00 General Session—Presiding, President Pike.
Introduction of 50-Year Bankers and Past Of
ficers.
“Expanded Business Opportunities for Bank
ing”—Anat Yalif, vice president, corporate
planning, Marine Midland Bank, New York.
“Personal Excellence”—Dr. Art Mollen, physi
cian, athlete and author.
5:30 Reception in Exhibit Area—cash bar.
6:30 Inaugural Dinner and Danny Gans Las Vegas
Show—Marriott Ballroom.
□

Convention Entertainment
HON. E. DOLE

A. YALIF

DR. A. MOLLEN

The Sunday eve
ning concert at the
Civic Center will
feature Johnny
Cash and wife June
Carter Cash in two
performances, 5:30
and 8:00 p.m.

presidents; Walter H. Kuntz and
M ary K. N ih lean , b a n k in g
associates; Pamela J. Windham,
banking officer, and Nancy T.
The 97 th annual convention of the Dick Retz, correspondent bank of Pollock, assistant account manager.
Iowa Bankers Association will be ficer.
Drovers Bank of Chicago: Frank
held September 18-20 at the Mar
Peoples Bank and Trust: John M. Bauder, chairman; James J. Carriott Hotel in Des Moines. Officers Sagers, president; Don G. Ellis, ex mody, president; John J. Crotty and
and representatives of larger banks ecutive vice president; Lawrence E. Max Roy, senior vice presidents;
from major banking centers in the McGrath, Gary D. Ernst and Earl J. Kathy Hardy, vice president; Ro
Midwest will be attending the con Caywood, senior vice presidents; bert Corey, executive vice president
vention.
David J. Paxton, Jr. and Marilyn and Daniel Bleil, correspondent
Following the list of bankers plan Jonas, vice presidents, and Elaine banking officer.
ning to attend is a list of personnel Ott, assistant vice president.
First National Bank: Thomas M.
from investment, service and equip
King,
Clarence E. Cross and Nevin
Chicago
ment firms registered for the con
G.
Bowser,
vice presidents; David J.
American National Bank: David
vention.
Killion and Michael Jump, vice Varnerin, assistant vice president
Cedar Rapids
presidents; Dennis Reher, second and Paul A. Gargula, commercial
Merchants National Bank: Jim vice president and Michael Harper, banking officer.
Coquillette, chairman; Henry Royer, correspondent banking officer.
Harris Trust: John A. Sivright,
president; Bob O’Meara, executive
Banque Nationale de Paris: senior vice president; J. David Cox
vice president; John Mangold, sen
and Harold F. Dillenback, vice
ior vice president; Terry Martin and Michael J. Byrne, vice president.
Continental Bank: Robert C. presidents, and Lewis C. Brown,
Jerry Trudo, vice presidents; Doug
Keiper, assistant vice president, and Vasko and Robert H. Holland, vice assistant vice president.

You Will See Them at the 97th
Annual Iowa Bankers Convention

Northwestern
Banker, September, 1983
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Federal Reserve Bank of St. Louis

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Northwestern Banker, September, 1983

Mason City

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Federal Reserve Bank of St. Louis

W hen Dick Holmes
isn't on the road calling on bankers,
he's on the phone talking to them .
Whether he’s on the road or in the office, Dick
Holmes keeps in close contact with his respondent
bankers. Dick knows that responding quickly to a
question or problem is his most important responsibility;
one he takes very seriously. That’s why he travels so often
. . . uses the phone so m uch. . . and gets back to his
bankers so fast.

•

Correspondent services you'd expect from a
bank our size.
When you work with Dick Holmes, you not only
benefit from his thirteen years of experience, you also
gain access to a wide range of Correspondent Banking
services. Check clearings, collections, wire transfers, Fed
Funds, investment services, bond portfolio analysis, ag
and commercial overlines, bank stock loans, leasing, lock
box service, and CashLine for efficient, up-to-the-minute
cash management are examples of the many services
Dick can offer you.

•

See how responsive w e are. Call us today.
If you think it’s time your Correspondent Banker
paid a little more attention to you, call Dick Holmes or
any of our experienced bankers at F&M Marquette’s
Correspondent Banking Department. At F&M Marquette,
we stay on top of your needs by staying in touch with you.

^ F&MMarQuetteNaflonaleank
6th & Marquette
Minneapolis

Dick Holmes
6 1 2 / 3 4 1 -6 5 7 2

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6 1 2 / 3 4 1 -6 5 8 8

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Phil Gallivan,
Senior
Vice President

Northwestern Banker, September, 1983

84
Iowa News
LaSalle National Bank: M. Hill
Hammock, executive vice president;
Rien Huizer, senior vice president;
William F. Love, James Daly, Rich
ard Brown, Rudolf Frank and Wil
liam Crawford, vice presidents;
Wayne L. Bismark, assistant vice
president, and James Griffin, invest
ment officer.
National Boulevard Bank: H.
Peter DeRosier, vice president.
The Northern Trust Company:
Steven B. White and Curtis E. Skin
ner, senior vice presidents; Edward
Walsh, vice president; Jeffrey B.
Early and Frank M. Lockhart, com
mercial banking officers; Robert F.
Grant and James F. Monhart, com
mercial banking representatives;
Patricia Rose, administrative assis
tant; John Drawer, bond officer, and
Corinne McClintic, trust officer.

Scott, John W. Schricker, Michael
A. Bauer and Glen W. Piotter, first
vice presidents; Walter F. Buettner
and James R. Peterson, correspon
dent officers, and Robert J. H art
man, vice president.
Des Moines
Bankers Trust Company: Herman
C. Kilpper, president; Lawrence H.
Frowick and Ben G. Eilders, senior
vice presidents; Donald H. Jordahl,
Arnie Ripperger and Michael L.
Feeney, vice presidents; James M.
Shrader and Kay D. Backman, cor
porate banking officers.
Norwest Bank: E. G. (Bud)
Precht, chairman; George F. Milli
gan, president; Lynn Horak and
John Sikkink, executive vice
presidents; Voldy Vanags, Walter
Pirnot and Merlin Foreman, senior
vice presidents; J.L. (Lanny) Little,
Bernard H. Kersey, R.L. Buenneke,
Davenport
Davenport Bank and Trust Com Garry Frandson, Dennis Nahnsen,
pany: John K. Figge, president; Gary McClimen, Lowell Barkley,
James K. Figge and Thomas K. Hans Schulze, Roger Dahlstrom and
Figge, executive vice presidents; Pat Hanson, vice presidents; Mark
Robert G. Lenertz, James E. Shra Conway and Tom Quinlin, financial
der, Edward L. Carmody, Richard institutions officers, and Dorothea
E. Kautz and Richard R. Horst, A. Wolfe, administration officer.
senior vice presidents; Russell W.
Norwest Corporation, Region

Jon Narmi

Ken Ferrarini

Bill Carver

Fred Douglas

Jim Bullock

Four Office: Harry C. Benson, re
gional president, and Stephen L.
Byrnes, regional vice president
marketing.
United Central Bank: Robert G.
Millen, president and CEO; Gene
Loverink and Ivan L. Johnson, sen
ior vice presidents; James Eiler,
senior vice president and senior len
ding officer; Phillip S. Rowley,
senior vice president and chief financial officer; William B. Greaves,
Cyrus D. Kirk, Kenneth Danilson
and Michael Austin, vice presidents;
Jack Schreiber, vice president and
senior trust officer, and Margo Foxhoven and Judy Willis.
Valley National Bank: J. Locke
Macomber, chairman and president;
Will J. Hoekman, senior vice presi
dent, and Mark Christen, William A.
Wishman, Richard C. Remer and
Mark L. Hamilton, vice presidents.
Dubuque
American Trust & Savings Bank:
Nicholas J. Schrup, chairman;
William D. McGeehan, president;
Leo F. Kane, executive vice presi
dent; Bernard D. Miller, assistant
vice president, and Christy F. Armstrong, director.

Tad Dunham

Jeff Moran

Dave Van Metre

Paul Waters

See You at the Iowa Convention

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Northwestern
Banker, September, 1983
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Federal Reserve Bank of St. Louis

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Iowa News

Kansas City
Commerce Bank of Kansas City:
Ernest A. Yake, senior vice presi
dent; Tom R. Jennings, assistant
vice president, and John Shraner,
bond officer.
First National Bank: Roger M.
Arwood, vice president.
United Missouri Bank: Phillip D.
Straight, senior vice president;
Richard H. Mueir, vice president,
and Jeff Goble and Dave Dickens,
bond investment officers.
Minneapolis
F&M Marquette: William K.
Klein, vice president, correspondent
banking; Jim Senske, vice president,
Marquette Lease Services, Inc.;
Craig Bishop, investment consul
tant; Mike Hay, IRA/Keogh opera
tions, and Michele LeCuyer, trust
administrator.
First National: Robert J. Ander
son, executive vice president; Mich
ael E. Boncher and Donald J.
Bergum, vice presidents, and Mich
ael P. LaVigne, David O. Williams,
Anthony J. Créa Jr. and Donald D.
Mikelson, assistant vice presidents.
Norwest Bank: Larry M. Lange
and Scott A. Faris, correspondent

banking officers, and Larry Nelson,
investment officer.
New York
Chemical Bank: John A. Robb,
vice president and Crystal M.
Phillips, assistant manager.
Manufacturers Hanover Trust:
S c o tt R. B en so n , a s s is ta n t
secretary.

Omaha
First National: Bruce Lauritzen,
Bill Henry and Dennis O’Neal, ex
ecutive vice presidents; Chuck Fries
and Don Ostrand, vice presidents;
Jim Flodine, second vice president;
Fred Kuehl, marketing officer, and
Mark Sorensen, ag representative.
Norwest Bank Omaha, N.A.: James
R. Campbell, regional president;
John R. Cochran, president; G.W.
“ Sam” O’Keefe, executive vice
president; Lee J. Bachand, senior
vice president; Howard W. Nielsen,
Robert E. Billmeyer and David F.
Malone, vice presidents; William J.
Dewhurst, Thomas C. Jackson, and
Richard H. Bangston, second vice
presidents, and John H. Westering,
card services officer.
The Omaha National Bank: John
D. Woods, chairman; Thomas H.

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Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ask us how
at the
Iowa
Bankers
Convention
Sept. 18-20

' /
Rick Wolf

Allen, president; John E. Martin,
Daniel F. Boehle, Del Olson, Ralph
G. Noren, Dave Conroy and Larry
Carlson, vice presidents; John Wear,
second vice president; John M. Car
michael, product manager; Kenneth
M. Parrish, systems officer; Gary
Rowe, marketing officer; Linda
Dirksen, credit card sales; Steve
Scanlan, sales representative, and
Loreene Lane, staff assistant.

St. Paul
First National Bank: Dale S. Han
son and Richard C. Swanberg, senior
vice presidents; Michael T. Mishou
and Clayton L. Johnson, vice
presidents, and Richard K. Flesvig,
correspondent banking officer.
Sioux City
Security National Bank: R.E.
Hagen, president; Steve Hatz, vice
president; Ron Kiel, correspondent
bank representative; Mike More
land, senior investment officer; Tom
Hromatka, information systems of
ficer, and Wilma Weeks, correspon
dent cash management officer.
Toy National Bank: John W. Van
Dyke, Jr., president and chairman,
and Stanely W. Fredericks and
Steve Drennan, vice presidents.
Waterloo
National Bank: R. Scott Fetner,
president; William J. Rickert, Erling
Schmiesing, Byron J. Loving, Willis
Crees and Milton Hennick, senior
vice presidents, and LeRoy Bell,
data processing officer.
Investment, Equipment and
Service Firms
AGRIcareers, Inc.: Linda R. Heit
and Jean M. Eden, ag banking spe
cialists.
Associated Credit Services, Inc.,
Pinger Systems, Des Moines: Jerry
Jackson.
Bank Building Corporation, St.
Louis, Mo.: Roy Wingers, senior
consultant-Denver.
Bankers Video Service, Inc.,
Cedar Rapids: Dennis Gettler, direc
tor of marketing, and Keith Warff,
regional vice president.
Banks of Iowa Computer Ser
vices, Inc., Cedar Rapids: Brian
Scott, president; Mark Budensiek,
director of marketing; Keith Grimm,
director of corporate planning; Kirk
Laalberg, market analyst; Terry
Kettering, management systems
analyst; John Meehan and Steve

Iowa
People.
Hard working people. Carefully cultivating today’s dreams
for an endless green sea of tomorrows. With the help of
Iowa bankers. We salute you.
We look forward to seeing you in Des Moines, September 18-20,
at the Iowa Bankers Association Convention.

(| | l First Bank Minneapolis
Correspondent Banking Department.
First Bank Place, Minneapolis, MN 55480 (612) 370-4762

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Federal Reserve Bank of St. Louis

Iowa News

Boes, territory managers.
Benchmark Computer Systems,
Inc., Omaha: Joe Soltis.
Brandt, Inc., Wayzata, Minn.: Bill
Welch, district manager-Peoria;
Dick Martin, sales representativePeoria; Jim Grimes, district mana
ger- Omaha; Dave Grimes, sales
representative-Omaha; John Bruns
and Steve Bruns, Sales representatives-Madison
Burroughs Corporation, West Des
Moines: Ron Pierracci and John
Washburn, marketing managers;
Mark Larson, branch manager, and
Dale Beaty and Glenn Anspach, ac
count representatives.
Karma Cahill Fine Art and Fram
ing, Cedar Falls: Karma Z. Cahill,
owner , and Elaine Kamerick, art
consultant.
Cardpro Services, Inc., West
mont, 111.: Bastian Knoppers.

Data Business Equipment, Des
Moines: Arthur Joura, president;
Donald Jones, vice president; Jim
Kelley and Lynn Groen.
Deloitte Haskins & Sells, Des
Moines: Jeff Fletcher.
Deluxe Check Printers, Inc., Des
Moines: Bruce Christensen, zone
manager; Bob Duff, Steve Spark,
Steve Conlin and Ralph Stolp, sales
representatives.
Des Moines Stamp Manufactur
ing Company, Des Moines: Tom
Child, Ken Dular, John Higgins and
Randy Miller.
Diebold, Inc., Des Moines: John T.
Murphy, regional manager; Roger
Swanson, automatic banking sys
tems manager; Bill Osier, sales rep
resentative.
Eastman Kodak Company, Roch
ester, N.Y.: Nicholas L. Ritter.
Electronic Business EquipmentCPT, Des Moines: G.A. Kerr.
Electronic Office Systems, Des
Moines: Edgar A. Herrman.

First Mid-America, Inc., Lincoln,
Neb.: Gary Fenster and Mike Moen, ®
vice presidents; Sherm Higgins, as
sistant vice president; Roy Schlachtenhaufen, account executive.
First National Leasing Corpora- ®
tion, Oak Brook, 111.: Gene Monroe.
General Bank Equipment &
Systems, Inc., Omaha: Tom Stern
berg, president; Jerry Kruntorad, 0
systems specialist; Marilyn Frank,
tele-marketing representative.
Kirk Gross Company, Waterloo:
Jerry Gross, president; Bob Jame- £
son, architect; R.T. Zahn, con
sultant.
Hawkeye Bancorporation, Des
Moines: Paul D. Dunlap, president; £
Myron Weil, vice chairman; Robert
W. Murray, executive vice presi
dent; Ronald R. Runger, Lewis L.
Lowe, and Stephan L. Jones, senior
vice presidents; Steven B. Barger, <0
vice president (marketing/sales), and
John C. Foley, assistant vice presi
dent.

Chiles, Heider & Company,
Omaha: David Van Metre, senior
vice president; Fred Douglas, Jon
Narmi, Tad Dunham and Jeff
Financial Systems, Inc., Kearney,
Moran, vice presidents.
Neb.: Ken Meredith, sales and sup
HBE Bank Facilities, St. Louis: f
Cummin-Allison Corporation, port coordinator; Dave Stochl, Iowa Gerry Sano and John Bodnar, ac
Chicago: Keith Jung.
count executives.
sales representative.

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

Iowa News

Holder and Associates, Ames:
® Don Holder, Patt Holder and Chuck
Cross.
IAC Group, Des Moines: Craig
Ross, Ron Roberts and Rick Wolf.
# Independent Service Company, Inc.,
Albert Lea, Minn.: Matthew K.
Scott.
Iowa Bankers Insurance and Ser
vices, Des Moines: A1 Tinder, presi® dent; Bill Carr, Larry Gille, Jim Jen
sen, Merrit Krause, Gary Livesay,
Ron Meyer, Margie Schaefer and
Millie Uding, vice presidents.
0
Iowa Public Records Search, Inc.,
West Des Moines: Elaine B. Bump.
Kooker & Associates, Spencer,
Iowa: Earl F. Kooker, president.
LeFebure Corporation, Cedar
Rapids: Larry Stewart, regional
manager; Jim Burritt; Rich Collins,
Jack DuDash, Rick Huston, George
Vinson, Lon Warren, Dick Wilson,
• sales engineers.
Life Investors, Cedar Rapids:
William A. Reilly, director of finan
cial marketing; Bill Gibson, national
m marketing director; Bob Okerstrom,
9 sales representative, and Chuck
Kraut, claims manager.

Norwest Bank Des Moines Opens Office

NORWEST Bank Des Moines, N.A. opened its newest office at 100th & University Ave. last
month. The 6,000 sq. ft. facility is a full-service office equipped with a state-of-the-art com
puter system to provide for efficient and timely service. Randall L. Wade, 2nd v.p., and
Frances V. Colston, oper. mgr., manage the office and staff of 20.

M&I Data Services, Milwaukee,
Wis. (Division of Marshall & Ilsley
Bank): Kathy Caveney.
M&M Sales Company, Des
Moines: Larry Perry.
Maynard Printing, Des Moines:
Carolyn Shannon.
MGIC, Des Moines: Allen C.
Wardenburg and Gordon M. Chap
man, account executives.

Medical Screening Services, Inc.,
Niles, 111.: Michael E. Bagan.
Money Processing Consultants,
Des Moines: Kim O. Ballew.
Music Service Inc./Sound
Systems, Inc., Des Moines: Ron
Purcell.
NCR Corporation, Des Moines:
Robert C. Lapinski, regional direc
tor; James A. Schulte, district

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Federal Reserve Bank of St. Louis

MEMBER FEDERAL RESERVE SYSTEM AND FDIC

90
Iowa News
manager; Loretta D. Bents, ATM
specialist; Marcus A. Wilson, John
E. Evans, Leonard A. Fagan, David
M. Heath, John F. Peglow, Glen J.
Simpson, Cathy Mahon Vanhauer,
account managers.
Norwest Leasing, Minneapolis:
David Michael, senior vice presi
dent; Michael Olauson, financial ser
vices officer; James Sheedy, vice
president-financial services.
Office Concepts, Ltd., Waterloo:
Harold Schoonover, president; Jerry
Spurgat-IBD, senior designer; Ross
Schoonover, contract furniture
representative; Bob Jordan, finan
cial institutions representative;
Geoffrey C. Grimes-AIA, architect
and Marc S. Emerson, marketing—
Stenson, Warm Grimes, Port Ar
chitects.
PCA International, Inc., Mat
thews, N.C.: Kim Mastman.
PCA International, Inc., Elkhorn,
Neb.: Jeff Squire.
Sendero Corporation, Phoenix,
Ariz.: Ted Craver.
Sooner Life Insurance Company,
Ponca City, Okla.: Groda Sooner.

Bill Dawdy, president/CEO; Rich
Davis, executive vice president;
Larry Glass, vice president, market
ing; Walt Astor, data center mana
ger (Cedar Rapids); Claude Dawson,
director of customer support; Gene
Ketchmark, director of product
development & support; Rich Bro,
director of technical operations; Joe
Baumgartner, service delivery of
ficer; Dave Akehurst and Gloria
Johnson, customer support officers;
Steve Turner, EFT officer; Bob
Bevins, data comm, officer; Daryl
Miller, Sue Andersen and Don
Jacobs, product managers; Barb
Gunson, Billie Logan, Jim Mitchell,
Denise Ralph, John Cook and Mike
Kenne, customer support represen
tatives; Bill Engel, microcomputer
advisor; Lisa Taylor, executive sec
retary, and Lorna Bolt, secretary.

Schaumburg, 111.; Robert Milinsky,
field vice president, Des Moines;
Bob Atess, district manager, Des
Moines; Roger Jerrick, district
manager, Iowa City; Scott Votava,
district manager, Lincoln.

Services Held for Carroll
Bank Chairman’s Wife
Mrs. Joe H. (Ruth) Gronstal, 63,
wife of the chairman of the board of
Carroll County State Bank in Carroll, died July 20 after an extended
illness.
Mr. Gronstal and his wife were
living in Spirit Lake at the time of
her death.

Maquoketa Addition Told

Kevin L. Burns has joined Ma
quoketa State Bank as an assistant
United States Check Book Com vice president.
pany, Omaha: Ed Batchelder, sales Mr. Burns, who
manager; and Chuck Stratton, Glen is a 1978 grad
Altfillisch, Tom Potthoff, Bernie uate of the Uni
Burger and John Kohring, sales versity of Du
representatives.
buque, has served
U.S. Life Credit Life Insurance as a state bank
Company, Schaumburg, 111.: Robert examiner in Des
UCB Systems, Inc., Des Moines: Eller, regional vice president, Moines the past
five years. In his
new position he
K.L. BURNS
will be involved
primarily in commercial and real
estate lending.

Independence V.P. Retires
Farmers State Savings Bank, In
dependence recently announced the
retirement of Vice President Rich
ard E. Cone after 37 years. Mr. Cone
will remain on as a director.

to o th

Retired Banker Celebrates
50th Wedding Anniversary

during the
/
I N

S te p h e n s Bldg

5^5/ 284*1930

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Mr. and Mrs. Conrad Aronson of
1310 Jennings Street, Sioux City,
Iowa 51104, celebrated their 50th
wedding anniversary on August 2,
1983.
Mr. Aronson retired from Toy Na
tional Bank, Sioux City, in 1968.
During his banking career he was as
sociated with the correspondent
banking department at Toy and was
known by bankers throughout Iowa,
Nebraska and South Dakota, as well
as Minneapolis, Omaha, Kansas Ci
ty and Chicago.
A surprise party was given by the
Aronson’s sons, with close friends
attending from Wisconsin, Illinois,
Kansas and Iowa.

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Northwestern Banker, September, 1983

Iowa News

IBA Pres. Bud Pike (left) and Exec. V.P. Neil Milner enjoy a relaxing moment together while
discussing plans for the annual convention to start in Des Moines September 18.

“Legislation is IBA’s No. 1 priority”
A

N orthw estern B anker

L.C. BUD PIKE
President
Iowa Bankers Association
President
Farmers Savings Bank
Grundy Center
OR A YEAR that was supposed
to be “ quiet and non-conF
troversial,” Bud Pike has left his
own imprint across the records of
the Iowa Bankers Association just
as the other men before him who
served the IBA as president. The
personable “country boy/’ as he
describes himself, is not only a
sound banker with a proven record
in his job as president of the $30
million asset Farmers Savings Bank
in Grundy Center, but he has earned
the respect of his fellow bankers for
his leadership as IBA president the
past two years.
We visited last month with Bud
Pike and Neil Milner, IBA executive
vice president, about the past asso
ciation year—their expectations for
the 1982-83 term, their view of its
accomplishments, and some hopes
for the future.
With all the other activities,
needs, competitive crises and tech
nological innovations that continue
to interject themselves into associ
ation discussions, Mr. Pike says,
“Legislative activities are still our
Number One priority and we will

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

interview with

NEIL MILNER
Executive Vice President
Iowa Bankers Association
Des Moines

continue our efforts here on behalf of
all the membership.”
It is in the area of legislation that
he voices a personal opinion that he
says is of deep concern to him. “We
need to do a lot on bank structure,”
he states, “or we’re going to get faked
out of our socks. These big banks
around the country are already cross
ing state lines and negotiating big

“ I don’t believe this stuff about community
banks not going to survive!” —Bud Pike.

mergers.” He acknowledges the fact
that his bank is part of one of the
largest multi-bank holding compan
ies in the state, Hawkeye Bancorporation, but points out that his is
still a community bank in a twobank community seat town (pop.
3,000) and he’s anxious to have both
the banks, as well as other communi
ty banks continue their personal ser
vice to Iowa customers.
A unique event surfaced recently
when Bud Pike’s long-time personal
friend and local competitor, Arnold
Schultz, president of the Grundy
National Bank, was elected president of the Iowa Independent Bankers at the I IB convention at Lake
Okoboji in late July, which Bud at
tended as guest of I IB in his posi
tion as IBA president. This is the
only time since IIB was organized
that the presidents of both associa
tions came from the same town and
held office at the same time. Both
are strong local banks in a state
where among the 648 chartered
banks the majority are classified as
community banks.
“These are the banks providing
basic financial service to Iowa agriculture, local businesses and hun
dreds of thousands of individuals
and families,” Mr. Pike points out,
“and I don’t believe this stuff about
community banks not going to survive! They have two legs up on hold
ing companies and big banks. By the
same token, if these banks are poor
ly run, if they have poor manage
ment, they won’t survive, just as
some holding companies won’t. The
8% limitation needs to be looked at;
this impedes growth.” He was refer
ring to Iowa law that limits a hold
ing company from holding more
than 8% of commercial bank depos
its in the state.
“ If community banks continue to
put up these blockades,” he says, I
fear this may cause a fracture in our
Iowa Bankers Association.”
Neil Milner added that “Bud has
tried to get an evaluation accom
plished this year by our board of
what they feel banking structure
should be or will be by 1990, then
work out a plan on how to get there.
A joint meeting with the leadership
of IIB (all of whom are members of
IBA) and a separate meeting with
holding companies have been held to
begin to put together such a task

INTERVIEW ...
(Turn to page 96, please)

•

^
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;§

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Northwestern Banker, September, 1983

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96
Iowa News
INTERVIEW ...
(Continued from page 92)
force. I t ’s in the formative stage and
there’s no final decision on how to
select neutrals.”
On other association matters, Mr.
Pike said, “One thing we didn’t ad
dress this year is putting the IBA
offices under one roof. We may have
made a mistake in not buying that
building (at 5th and Keo in down
town Des Moines) a couple of years
ago. I think separate offices loses ef
ficiency and contact. I t’s OK at the
management level, but when it gets
down to association with people
making contacts then we see a loss
of daily contact with them.”
The Professional Development
Program developed by ABA for sys
tematic, formally structured banker
education is a project both Mr. Pike
and Mr. Milner are enthusiastic
about. PDP offers three levels of
adult education for bankers. Mr.
Milner said, “The 100 series covers
all AIB classes, the 200 series
covers state banking schools and the
300 series is concerned with grad
uate banking schools. A person nor
mally would proceed from 100 right
through the 300 series, but can test

classes pertinent to the type of lend
ing found here in our area.”
Mr. Pike added, “The PDP is
designed to meet the criteria for col
lege credits and will be reviewed by
accrediting organizations. Comple
tion of the state program, in this in
stance, then would qualify the
banker-student to be eligible for the
ABA graduate level Commercial
Lending School now conducted at
the University of Oklahoma in Nor
man.”
Speaking of another effort under
taken this year by the IBA, Mr. Pike
said, “We started this year to de
velop good relations with the Iowa
“ If a member calls our office (for help)...we Development Commission. An off
want to be able to assist that member right
shoot of this was a meeting with the
now.” —Neil Milner.
Des Moines Chamber of Commerce
to help bring in the National Corn
out of preliminary series. Right now Growers Council office to Des
our office is working with Dick Moines. They have a lobbying office
Doolittle, executive vice president of now in Washington, but no national
the Graduate School of Banking at office as yet. If they open a national
the University of Wisconsin to office here it could mean 100 jobs
develop a prototype for the midwest here in Des Moines and would in
for a 200 series commercial lending clude a research office.”
school. This is being done with the
When asked what IBA is doing in
assistance of Pennsylvania, which is its own long-range planning for the
putting one together with the ABA. association, Mr. Milner said, “We
Iowa then would specialize in a com started a strategic plan two years
mercial lending school that has ago and the staff presented it to the
board, requesting those people to set
priorities. The board set its prior
ities in this order: First, legislation.
Second, education. Third, R&D. We
want the capability to do research
on legislative and regulatory issues,
as well as services.
“For example,” he added, “this
gets into the whole compliance area
on a fast moving basis. If a member
calls our office and says, ‘With this
specific set of circumstances can we
do this, or within what range can we
operate?’ then we want to be able to
assist that member right now.”
Mr. Pike pointed out, “This for
mal strategic plan is reviewed each
year. Just recently, the office sent a
comprehensive survey to members,
and I mean comprehensive! This
whole exercise on behalf of the mem
bership gets back to our original
point that, without question, legis
lative activity is still our state asso
ciation’s Number One priority!” □

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Northwestern Banker, September, 1983

Iowa News

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

Group 1
Chairman Bruce M. Kolbe, presi
dent, United Central Bank & Trust
Company, Sioux City: As is often
th e case, we
have a “ good
news-bad news”
situation in our
area with the
farm and busi
ness economy.
Crops apparent
ly will yield well,
even with the
early wet weath
er and the pro
longed late summer heat. Total pro
duction, of course, with the PIK pro
gram in effect, will be considerably
below a year ago.
Commodity prices are favorable.
With carry over supplies being
decreased and generally hot, dry
weather covering the Midwest, corn
prices may very well go higher.
Hog prices are a different story.
With supplies still high and feed
prices up, it may very well be late
1984 or 1985 before we see any
return to acceptable prices.
Main street is still suffering the
effects of the unsettled conditions in

the farm economy, and this will con
tinue in the near future. However,
the increase in employment and in
retail sales in the metropolitan areas
are a very positive sign of economic
recovery.

Group 2
Chairman Douglas McDermott,
president, Home State Bank,Jeffer
son: As I write this report concern
ing the area of
Group 2, there is
still some doubt
as to the crop
prospects. We
have had ample
ra in fa ll
in
general, but the
extrem ely hot
w eather could
still take its toll
on the final pro
duction outcome. We have certainly
been more fortunate than other
areas to date. The prices have been
very bullish on grains because of the
weather and spreading drought
areas. This should help our general
economy if harvest projections
materialize.
The flip side is that the increasing
grain prices hurt livestock profits.
The outlook is much more pessi
mistic than when I wrote this
report a year ago.
Retail and commercial business

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conditions have been mixed. The
business places completely relying
on the farmer, such as seed and her
bicide dealers, fertilizer dealers, and
machinery dealers, have been hurt
by the PIK program. They, how
ever, are looking to benefit from
the increased price of grains and the
prospect of farmers going back to
full production in 1984. Main street
businesses are having a hard time
making profits and are cutting costs
they can control and hoping the
general economy will keep improv
ing.
I believe the economy is becoming
stronger and along with less infla
tion, we will begin to see more
stabilization of the business and
agriculture economy throughout our
area.

Group 3
Chairman Fred W. Hagemann,
president, State Bank of Waverly,
Waverly: The agricultural economy
in N o rth e a s t
Iowa, due to the
P.I.K. Program,
rising commodi
ty prices, and
good yield ex
pectations, ap
pears to be in
b e tte r sh ap e
than in the past
y e ar.
A d d i
tionally, lower
interest rates have also had a major
impact on reduced farm operating
expenses. All the above, together
with the possible foriegn grain
orders and some drought situations
in the United States and foreign
growing areas should provide for
strengthening grain prices and con
sequently an improvement in the
Group III agricultural economy.
The question mark, of course, is the
recent down trend in hog prices. If
these prices continue to decline, they
may more than offset the im
provements due to the increase in
grain prices and have a major im
pact on the agricultural economic
health.
The retail business, although
showing some signs of life, has not
fully recovered from the effects of
the past recession. Direct agri
culturally related retailers, spe
cifically farm equiment dealers,
have continued to suffer and their
recovery will surely be much slower
than other retail businesses. Most
main street retailers are rather op-

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100
Iowa News
timistic, as they have seen some
significant increases in retail sales
over the past three to four months.
The ominous cloud is, of course,
the tremendous budget deficits that
are currently being forcast. These
deficits are beginning to have an
adverse effect on interest rates,
which will in turn have a very
damaging impact on all aspects of
the farm and retail economy in
group III. Lower and more stable
interest rates are the keys to a suc
cessful and solid recovery.
Group 4
Chairman J. Bruce Meriwether,
president, First National Bank,
Dubuque: There is a great optimism
in n o r th e a s t
Iowa that the
“ recovery” is
real. Retail sales
have responded
somewhat and
there is minor
evidence of some
expansion
thoughts in the
commercial com
munity. Not un
like the rest of the nation, the in
terest rate stability holds the key to
revitalization. There has been some
activity in the real estate market
and it is hopeful that this could be
sustained, if not increased in
volume.
Hopefully the lingering labor
disputes around the area can be
satisfactorily resolved and the in-

dustrial sector can begin to play a
key role in our employment con
cerns.
Leo M. Mallie, vice presidentagricultural lending, at First Na
tional Bank, offered to me the
following observations on the ag
economy in and around Group IV:
The weather has moved into first
place as the dominant factor of
economic impact.
Higher corn
prices prompted by lower than ex
pected supply has set the stage for
greater return for cash corn moving
to market this fall. Although yields
will be reduced due to adverse
weather conditions, 1983 production
should be within 25 percent of nor
mal yields.
There are several factors that will
impact fourth quarter 1983 and year
1984. Feed grains and hay supplies
will be closely watched by farm
lenders as financial arrangements
are made in the fourth quarter for
1984. Northeast Iowa, an intensive
livestock raising area, particularly
dairy and hogs, will be adversely af
fected by reduced corn and hay
yields. Adequate rain and near nor
mal frost occurrence is necessary to
prevent severe financial problems
for some individual farming opera
tions alread y su fferin g from
operating losses. It is much too ear
ly to predict what the fall out will be
for 1984 from the severely reduced
yields of less fortunate drought
areas. Dairy support prices and
total corn supply are factors
unknown at this time. These are ex-

We are pleased
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the appointment of
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as Vice President
in our Correspondent
Department.

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tremely important to farmers as
they plan their financial activities
for 1984. An extremely important
factor, too. is better cooperation and
understanding by bank examiners of
ag credit lines to allow a certain
amount of forbearance for distressed
credit lines.
It is possible and even probable
th at the right combination of
positive occurrences of the above
w ill e n ab le n o r th e a s t Iow a
agriculture to begin a gradual and
sustaining improvement prompting
renewed capital improvements,
machinery purchases and demand
for farm land.

Group 6
Chairman Robert J. Miller, presi
dent, Polk City Savings Bank, Polk
City: The Polk City area was blessed
with two- andone- fourth inch
es of rain at a
c ritic a l tim e.
With the kind of
wet spring and
lateness in plan
ting our corn
and beans look
very good.
Livestock in
v e n to rie s are
still on the down
side as are the prices. Grain prices
are active and may change the meat
industry again.
The PIK Program, as in most
areas, cut down on grain production.
It appears as though the net result
to the farmer will be better than it
appeared twelve months ago along
with better management.
The economy recovery is being
felt by the area businessmen and the
decrease in unemployment has im
proved the general attitude of the
businessman and the consumer.
Group 5
Chairman Donald L. Curry,
president, Farmers Savings Bank,
Massena: July was a very dry month
in the area after
a very wet June.
Most of the area
re c eiv e d ra in
last week, but
we are badly in
need of another
rain at this time
in early August.
First cutting
of hay was good,
but pasture and

101

When LaSalle Listens.
A job well done always starts with a finely
tuned ear. Someone listening to your
needs, plans and concerns. Someone who
learns your point of view. And assists in
building your banking business.
Wayne Bismarck, our Correspondent
banker, has years of experience. And for
him service is more than a concept, it’s
the only way he does business. It means
getting answers and results.
W hether your needs are in Safekeeping,
W ire Transfers, M unicipal Bonds,
Governm ent Investments or other
C orrespondent Services, talk to the
LaSalle Banker, W ayne Bismarck. H e ’ll
listen. Y ou’ll benefit from his service.
M eet Wayne Bismarck and other LaSalle
representatives at our Hospitality Suite
during the Iowa Bankers Convention at
the M arriott Hotel, September 18, 19
and 20th.

L aSalle N ational h ank ©
LA SALLE BANK BUILDING, 135 SOUTH LA SALLE STREET
CHICAGO, ILLINOIS 60690
PHONE 443-2000 • MEMBER F.D.I.C.

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Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1983

102
Iowa News
hay ground now are producing
almost nil. Oats in the area were
generally light in weight and yield.
Beans and corn look very good, but
both are showing stress because of
high temperatures and lack of rain.
Weeds in PIK ground grew well.
Cattle and hog feeders are not
happy with PIK and higher feed
costs. This combined with lower
market prices have almost elimi
nated all profits.
Business on main street is
depressed from last year, but
hopefully this will improve later this
year. Most businesses in small town
Iowa are hurting because of lack of
profit.

good with some cities seeing new in
dustry with unemployment at a low
figure, however, housing starts are
not the most encouraging and farm
machinery sales continue to be off.
Even with grain prices at a very
good figure, farmers are not moving
m uch g rain nor c o m m ittin g
themselves to date on future sales.
Cattle feeding is lagging and hog
producers are not having a good
year. The continued extreme heat
has affected the weight gain in all
animals. It would appear to be a
buyers market in regard to all
livestock.
Bank deposits growth is also mix
ed with some banks witnessing good
growth while other banks are show
ing little if any growth. Bank earn
Group 7
ings
appear reasonably good, but
Chairman Gordon Wold, presi
dent, Poweshiek County Savings potential loan problems cast a
Bank, Brooklyn: At the time of shadow on the bottom line for the
year 1983.
writng this con
dition report of
Group 7, the
Group 8
general farm pic
Chairman David J. Malloy, vice
ture is mixed.
president, Farmers Trust and Sav
The n o rth e rn
ings Bank, Williamsburg: Group 8
part of the area
has had abnor
has w itnessed
mally dry weath
adequate mois
er. Corn yields
ture and crops
have been re
crops look good,
duced a mini
w h e rea s, th e
mum of 30% and
southern part is in desperate need of will only get
rain. The corn is stressed. Con worse if we do
siderable amount of the corn is roll not receive any
ed with some firing. The beans have rain. You can
few pods in certain areas, however, defin itely tell
areas to the south of Group 7 are who put on ferti
much worse.
lizer this year. PIK is looking better
Retailing is generally encourag every day. Soybeans will be as
ing. Auto dealers are having a good critical as the corn if we do not
year. Manufacturing is generally receive rain soon. Needless to say,
livestock weight gains are down due
to the severe hot and dry weather.
There has been a substantial
amount of breeding livestock li
quidation, most likely due to the
MAKES BETTER IMPRESSIONS
higher grain prices and no grass.
One local farm news statio n
reported that there has been 43%
more sows sold this year than
around this time last year. A con
SAVES TIME! SAVES M ONEY!
cern right now is what will happen
• NO INK PAD
• THOUSANDS OF
to the price of feeder cattle if more
NEEDED
IMPRINTS
farmers are forced to chop their
• THE INK IS IN • NO RE-INKING
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Federal Reserve Bank of St. Louis

aged to the hilt” has now either clos
ed its doors, or is in serious trouble.
Contrary to the implement dealers,
the automobile dealers all seem to be
experiencing an excellent year.
Housing has picked up a little
from a year ago. although there are
still a lot of homes for sale. Ju st the
recent slight increase in mortgage
interest rates has tempered the
thinking of potential home buyers.
According to a survey taken of the
23 largest cities in Iowa, Iowa City
has over one-third of the new
residential bulding. This informa
tion was compiled by the Iowa
Development Commission and
represented the first five months of
1983.
Competition for money is increas
ing. More customers are looking for
investments other than those that
offer a direct interest return. They
are shopping around for these, be
that bank or non-bank institutions.
Depending on their tax bracket,
they are looking for investment
where there are real after-tax
dollars.
Employment is stable if the area
is well diversified. If the industries
are solely ag-oriented, employment
is somewhat more unstable.
In summation, the economic
situation in Group 8 resembles that
of the entire nation, when the
agricultural industry prospers, so
does evey other business.

Group 11
Chairman John F. O’Neill, chairman and president, Firat National
Bank, Burlington: Dry conditions in
our group area
have hurt our
c ro p s n o tic e
ab le.
W e’ll
be fortunate if
we lose only 40
bushels per acre
from the corn
crop,
u n le ss
good rains fall
soon (by mid to
la te A u g u st).
If we get rain, beans can get 25-30
bushels per acre compared to the
35-40 bushels last year. An additonal complication this year has
been the spider mite damaging
crops.
We expect c attle and hog
numbers around here to be down.
We look for some liquidation of sow
herds due to the price of feeder pigs.
The livestock people who hang in

•

103

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Northwestern Banker, September, 1983

104

Iowa News

National Bank of Waterloo Celebrates 50th Anniversary

LEFT— National Bank of Waterloo Pres. Scott Fetner (far right) stands with Mr. and Mrs. Albert Sundt after the R u n o n t h e V a u lt, July 9th.
Mr. Sundt’s winnings totaled $3,160. RIGHT— Mr. Sundt carrying one armload of money during his R u n o n th e V a u lt. He had five minutes to
carry a maximum of $10,000 from the vault to an armored car.

HE National Bank of Waterloo
T
celebrated its 50th anniversary
with a week of activities. On Sun

tion. The winner of the drawing had
five minutes to carry as much cash
as possible from the bank to a wait
ing armored car. Ten thousand
dollars was the maximum amount to
be taken from the vault by the win
ner.
The run on the vault took place
Saturday, July 9th. In the five
minutes alloted, Albert Sundt of
Waterloo literally grabbed $3,160
from the vault. A crowd gathered to
cheer Mr. Sundt on amidst the PM
Magazine and other news cameras.
Other prizes in drawings were a
Las Vegas vacation for two, a week
end get-a-way to Kansas City for
two, and a $1,000 Certificate of
Deposit.

quate and timely rains which should
produce good yields at harvest time.
The livestock prices, both cattle
day, June 12, the bank kicked off the
and hogs, have been under some
celebration with a birthday party in
pressure during the past few
the NB W park. A cake made in repli
months. With the increased price of
ca of the bank, turned out to be one
corn and soybeans, the returns on
of the biggest cakes Waterloo has
feeding are in the negative column.
even seen. Bill Shephards Big Band
Either the price of replacement cat
entertained in the park as hot dogs
tle will have to go lower or the price
and coke were sold at 1933 prices.
of grain and protein will have to go
Over 2,000 people came into the
down in order to make the returns
bank for a tour. Most registered for
on livestock feeding return to the
the drawing and received a pictorial
profitable side. It is questionable
history of the bank and a commem
whether that wll take place during
orative key chain.
the balance of this year.
The highlight of the celebration
As far as business on main street
was a drawing for a chance to make
in our community is concerned, it
a run on the vault at the National
has been very good this year. With a
Bank of Waterloo’s downtown locagood harvest and the grain prices
where they are at, it looks like
business should continue to be very
there may make some money.
in the area that
good for our businessmen for the
Manufacturing is down nation Group 12 encom
balance of this year.
wide, of course, and the midwest has passes have been
The one big question mark at this
been the hardest hit. Caterpillar and very favorable
time is how much higher interest
Deere are in our area and th a t’s a for crop produc
rates will be going. This will put
sick industry right now, with tion this year.
some pressure on the economic
unemployment high.
Early in the spr
recovery and slow things down
I think banks have done a good ing there were
somewhat compared to what the ex
job keeping their own financial c o n s i d e r a b l e
pectations were this spring when
houses in order as well as carrying areas and fields
rates were coming down.
many customers. I ’m afraid we’ll th at were too
All in all, we feel fortunate in our
have to see a forced liquidation of wet in order for
area that we have had a decent
some bank customers, but bankers the crops to be planted. Consequent business climate during the past few
generally are carrying them through ly, there is a certain percentage of years of economic recession.
these hard times and will probably the crop land that will not be
do so for another year because these harvested for grain this year.
people are our customer base.
The compliance with the PIK pro Appointed in Wever
gram has been about the same here
Farmers Savings Bank of Wever
as it has in other areas of the state. recently announced the appoint
With the increased price of corn and ment of Walter (Bud) Hayles, Jr., as
soybeans in the past couple of executive vice president; Daniel
Group 12
Chairman E.J. Leahy, pres months, it would appear that our Jessen, assistant vice president;
ident, Northwestern State Bank, grain farmers will have a very fine Roberta M. Sandbothe, cashier, and
Orange City: In general, conditions year this year. We have had ade- Charles D. Helt, assistant cashier.

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Iowa News

105

Clear Lake Bank
Remodeling Project Begins

Clear Lake Bank & Trust Co. has
announced the start of a major in
terior remodeling program. Kirk
• Gross Company of Waterloo is in
charge of the project which is
scheduled to coincide with the
bank’s upcoming 50th anniversary.
When completed, the main bank
# will contain seven private offices,
six teller windows and a semi-pri
vate file room. A new fascia to
follow the unique curved teller
counter will accent a fourteen foot
# wide, floor to ceiling mural.
New interior features include ac
cent lighting, carpeting, wall vinyl
and a counter complete with Diebold
undercounter equipment.
4D
The second level board room, ex
ecutive office and employee lounge
will also be redecorated, with new
carpeting and acoustical wall treat
ment going in the bookkeeping de• partment.

Count
on
Ron
Kiel.

Dividends Declared
0

Gene Hagen, president of Security National Corporation, Sioux City,
announced that 10% stock dividend,
as well as an 18 cash dividend, was
declared at the quarterly meetng of
the board of directors held in July.

Joins Waverly Staff

Scott Whitcome has joined the
staff of State Bank of Waverly as
assistant cashier.
Hi
Previously Mr. Whitcome was
employed at the First State Bank of
Chariton as consumer loan officer.

•

Iowa City Bank
Addition to be Built
The Iowa State Bank and Trust
Company of Iowa City has awarded
a contract to Bank Building Corporation, headquartered in St.
Louis, to design and construct an
addition to the bank’s main office.
The interiors of both the new build
ing and the existing have been designed in a contemporary style.

Marion Bank Adds O fficer
Glen Subra has joined Norwest
® Bank Marion as assistant vice president/commercial loan officer, accor
ding to Larry Hansen, president.
Mr. Subra has 14 years banking
experience, five of those at Peoples
• Bank and Trust in Cedar Rapids.

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

Ron Kiel’s agricultural ex
perience and recognized expertise
in the area of cash management
has given him a unique under
standing of community banking
needs.
It’s also given him a personal
commitment to his correspondent
bank customers. They know they
can count on Ron to provide not
only the best in ag overline, data
processing and cash management
services, but the information,
advice and guidance necessary for
a better, more profitable operation.
If that’s the kind of service
you’d like to be able to count on
from a correspondent banker, call
Ron Kiel at Security National today
7 1 2 /2 7 7 -6 5 5 4 .

People with
an interest
in you.

SECURITY NATIONAL BANK
Sioux City Iowa 51101 M em ber F.D.I.C.

Northwestern Banker, September, 1983

106

Iowa News

Two Join Ottumwa Bank

pany of Des Moines for over seven
years as vice president in charge of
its instalment loan division.
Dick C. Stoffer has also joined the
bank as assistant vice president,
agricultural and commercial lending
areas.
Mr. Stoffer most recently served
at Peoples Trust & Savings Bank in
Indianola, where he has been the
last eight years.

Louis H. “Lou” Anderson has
jo in e d U nion
Bank & Trust
Co., Ottumwa,
as vice presi
dent. He will
h ead up th e
b a n k ’s newlyrev ised re ta il
division.
Prior to join
Wm. J. Grotenhuis Dies
ing Union Bank,
L.H.
ANDERSON
M r. A n d e rs o n
William J. Grotenhuis of Red Oak
had been with Bankers Trust Com died July 19 at the Montgomery

County Memorial Hospital in Red
Oak at the age of 82.
Mr. Grotenhuis had been in the
banking business more than 60
years, starting at the age of 21 in
California. In 1950 he organized the
Security State Bank of Stanton, la.,
serving as its chairman of the board
at the time of his death. Mr. Groten
huis also was chairman of Thurman
State Bank in Thurman when he
died.
In addition to his wife, Mr. Gro
tenhuis is survived by one son,
James W., who is president of Farm
ers State Bank in Stanhope and vice
president of Thurman State Bank.

Cedar Rapids Bank
Elects New President

IFHutton
Regional Municipal Bond Department
Robert Jam es Beh
Vice President

Robert J. Kirkendall
C hristopher Koegel
Asst. Vice President

F. A rthur Reynolds
Asst. Vice President

R. A. Stegh
Asst. Vice President

Gregory S. W olfe
Asst. Vice President

Public Finance Department
Carleton D. Beh, Jr.
Vice President

Raymond J. Allender
Consultant

Robert S. DeWaay has been
elected president and a director of
United State Bank, Cedar Rapids,
according to Charles Cebuhar, the
bank’s chairman.
Mr. Cebuhar,
who has been
p re sid en t and
chairman of the
b o a rd
since
1977, is retiring
as president but
remains on as
chairman.
For the past
five years Mr.
DeWaay served
as executive vice president of
Hawkeye Bank & Trust of Des
Moines. He is a graduate of Iowa
State University and Stonier Grad
uate School of Banking. His pre
vious banking experience has been
with Clay County National Bank,
Spencer; Jasper County Savings
Bank, Newton, and the State of
Iowa Department of Banking.

Mark J. Eveloff
Mark McClurg
Rex W. Ramsay
Asst. Vice President

EF Hutton & Company Inc.
Member New York Stock Exchange
One Carriers Building
Des Moines, Iowa 50309
Telephone: (515) 288-2152
WATS: (800) 532-1468

Northwestern Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Two Join Iowa City Bank
Ben E. Summerwill, chairman of
Iowa State Bank & Trust Company,
Iowa City, has announced the fol
lowing addition to the bank’s staff:
Martin C. Robinson joined the
bank as agricultural loan officer. He
formerly was farm representative
with the Commercial Trust and Sav
ings Bank of Charles City.
Terrance N. Vorbrich has been
elected second vice president, com
mercial loans. He returns to Iowa Ci
ty from Norwest Bank of Mason Ci
ty where he served as assistant vice
president in the commercial loan de
partment.

Iowa News

107

Named in Traer
Darlys M. Hulme has been named
senior vice president of Farmers
Savings Bank, Traer. Ms. Hulme
has been with
the bank for 23
years and has
served as vice
president since
1973.
Currently
NABW N orth
C e n tra l Iow a
Group chairman
and incom ing
D.M. HULME
1983-84 NABW
State Membership chairman, she is
a graduate of the Iowa School of
Banking and the School for Bank
Administration at the University of
Wisconsin, majoring in community
bank management.

For C o rrespo ndent Bank
se rv ice s, there’s a big
advantage to w orking with
Valley B an k’s Professional
B ankers.
In fact, there
are two.
These two professionals make up our Correspondent Bank and
Money Desk Departments. We’re not the biggest in Iowa but we
think you’ll agree our service is the best.

Keystone Director Dies
J.H. Milroy, 89, director of the
Keystone Savings Bank, passed
away on June 20, 1983. Mr. Milroy
was elected to the board in 1944 and
served as chairman from 1970 until
1982. He was an active member at
the time of his death.
The vacancy will be filled by his
son, Jack N. Milroy, a Vinton at
torney.

F. Lewis Named Assistant
To President at Polk City
Forest Lewis has been named
assistant to the president, Robert J.
Miller, at Polk City Savings Bank,
Polk City.
Mr. Lewis be
gan his banking
career in 1933.
Following ser
vice in World
War II, he joined
the Iowa State
B ank in Des
Moines in 1946.
In 1965 M r.
F. LEWIS
L ew is jo in e d
Plaza State Bank in Des Moines,
was advanced to executive vice pres
ident in 1966 and elected president
in 1975, serving in that post until
his retirement from Plaza State in
1979. He then joined Osceola Bank
& Trust Co. as executive vice presi
dent where he had served until he
resigned at year end 1981.
Mr. Miller is recuperating from a
recent illness and surgery at Meth
odist Medical Center in Des Moines.

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

Mark Christen
Vice President and Head
of our Correspondent
Bank Division
Mark Christen is Vice Presi
dent in charge of the Corre
spondent Bank Division. He’s
responsible for helping you
with Overlines, Transit Ser
vices, and Investments.

Dennis Hagedorn
Vice President and
Money Desk Manager
Dennis Hagedorn manages
Valley Bank’s Money Desk.
He’s the one to count on to
help with Federal Funds, Cer
tificates of Deposit, Safekeep
ing, Securities, and Wire
Transfers.

Mark and Dennis make a good team. Both are dedicated bankers.
They’re always ready to give you their undivided attention, regard
less of how small or large your request. And what’s more, they
consider it a privilege to work with you.

There’s Nothing Like Money in the Bank...
The Valley Bank

Valley National Bank ill
DES M OINES. IOW A 50304

M em berF D IC

A BANKS OF IOWA BANK

Discover the Valley advantages.
Call TOLL FREE (800) 622-7262 (Iowa, only).
Northwestern Banker, September, 1983

108

Iowa News

Knoxville Bank Purchases Race Car

ment, John Augustine, president of
Hawkeye Insurance Services, Inc.,
an affiliate of Hawkeye Bancorporation, said, “We are excited about the
new association of Hawkeye banks
with ISBE, because we can now of
fer tremendous savings on health
and workers’ comp, coverages to em
ployers throughout Iowa. In addi
tion, we are in the process of devel
oping a property/casualty package
than can provide even greater sav
ings to ISBE membership.”
Last July ISBE started its own
workers’ compensation plan, offer
ing members an upfront 15% dis
count on premiums. The plan is de
signed to share dividends with many
members in years when members’
individual safety records and the
FOR a good many years, Knoxville has been known as the racing capitol of Iowa because
of the super modified sprint car races held there. Because of this, Iowa State Savings Bank group’s safety record are good.
“Our ISBE Workers’ Comp. Group
has decided to show more active participation in this very important part of the community
by purchasing and leasing to the Knoxville raceway organization, a 1970 Plymouth Super Plan has the potential to save an
Bird, and designating it the official pace car for the race track. The car features a 440 inch
employer a great deal of money,”
Chrysler engine and has won many honors in various car shows throughout the midwest. It
Mr. Collison said. “The experience
was restored by R.C. Long of Knoxville.
of other self-insurance groups like
ours—in Iowa and other states—is
ISBE and Hawkeye Bancorp. the group’s marketing agency.
Haweye’s banks together current very encouraging.”
ISBE, a division of Small Busi
Join to Provide Insurance
ly have 65 agents in 36 Iowa coun
ness
Employers of America, Inc.,
Iowa’s largest small business as ties and operate their insurance
sociation and Iowa’s largest finan agency activities under the trade- was formed in 1978 to provide lob
cial organization are working to name of Hawkeye Insurance Servi bying, information, consulting and
gether to provide low-cost health ces. According to Mr. Collison, “We benefit services to small employers
and workers’ compensation insur have more than 2,000 members in Iowa.
ance to small employers. Jim Col across the state, and Hawkeye’s sys
lison, president of Iowa Small Busi tem provides an effective vehicle for
ness Employers (ISBE), has an the delivery of local, personalized Davenport Bank Elects
nounced the appointment of Hawk- services to our members.”
New Executive V.P.
eye Bancorporation’s state banks as
In connection with the appoint
Thomas M. Carpenter was elected
executive vice president and chief
Plaza State Bank Acquisition Announced lending officer of
First Trust and
Savings Bank,
Davenport at its
re g u la r board
meeting held in
August.
Mr. Carpenter
recently resigned
his position as
vice president T.M. CARPENTER
and senior loan
officer of the Marine First National
Bank in Janesville, Wis. He has served
that bank in various capacities since
1976.
Mr. Carpenter graduated from the
Western Michigan University, Kala
mazoo, Mich., in 1975. He received
his MBA from the University of
THE acquisition of Plaza State Bank, Urbandale, was completed last month by United Cen Wisconsin-Whitewater in 1980. He
tral Bancshares, Inc., Des Moines, according to an announcement by bank officials (left to also graduated from the National
right): John R. Harmeyer, pres., and John J. McLaughlin, chmn., Plaza State Bank, and Ken
Commercial Lending School in Nor
neth M. Myers, pres., United Central Bancshares, Inc. Plaza State Bank, as of mid-year
1983, had assets of $93,998,000 and conducts business from its main office at 6200 Aurora man, Okla., in 1980 and is a certified
commercial lender.
Ave., Urbandale, and at three offices in Des Moines.

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Iowa News

109

Collins Announcements Told
At the annual stockholders’
meeting of Exchange State Bank,
Collins, Royce A. Nelson was elected
assistant vice president and ag re||l presentative. He had been a loan of
ficer trainee.
Eight directors were also elected.
Among them were: Harold D. Brinkman of Nevada, William W. Burrell,
4 1 Grainger P. Buck, W.C. Hamilton,
Joseph L. McKlveen, Jerry D.
Rhodes and Carl C. Riggs.

We’re not just
fair weather funds.

Jefferson Bank Adds One
Kevin Brooks has been added to
the staff of Home State Bank of Jef
ferson as an agricultural loan officer.
He formerly was with the Federal
Land Bank Mt. Pleasant Associa
tion, Washington branch.

Bill Manring
Vice President

Three Appointments At
Bettendorf Bank and Trust

B ettendorf Bank and T rust
recently announced the appoint
ment of Thelma Ehredt as vice presi
dent, cashier and manager of the
# State Street of
fice; Elaine Bartholom e, vice
president, retail
b a n k in g , and
# Sue W illm an,
loan servicing,
and support of
ficer.
Mrs. Ehredt
# joined the bank
in 1954 and has
R. EHREDT
served in supervisory and manage
ment positions in all areas of bank
ing operations.
Since joining the bank in 1977,
Ms. Bartholome has held responsi
bilities in all lending areas of the
bank, with special emphasis in com
mercial and corporate lending and
® regulatory compliance.
Mrs. Willman has had extensive
experience in real estate, consumer
and commercial loan servicing since
joining the bank in 1977.

Bob Holt
Ag Representative

M ark Thompson
Loan Representative

No matter what #
the economic climate, you can
count on us for ag loans. We know
your customers’ financial needs aren’t always determined
by the economy. And at First National, we don’t think ag
loans should be either.
That’s why we often make crop loans when grain prices
are poor... or livestock loans when the livestock market is
down. Because your farmer customers don’t need loans just in
the good times.
At First National, we have the resources you need to
help you make ag loans when they’re needed. In 1982, we
loaned millions of dollars to farmers. It’s all part of our continu
ing commitment to agriculture.
First National. You
First National Bank
can count on us. Anytime.
P0 Box 147_st Josephi M0 64502
(816) 279-2721
M em ber FDIC

E. BARTHOLOME

A ffilia te of F irst M idw est Bancorp., Inc.

S. WILLMAN

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

Northwestern Banker, September, 1983

Æi

Des Moines

John A. Sikkink, executive vice
president and manager of the opera
tions administration division of Norwest Bank Des Moines, N.A., has
been elected to
the board of di
rectors of the
National Auto
mated Clearing
House Associa
tion (NACHA)
and chairman of
the Rules Opera
tions Commit
tee.
J.A. SIKKINK
Mr. Sikkink is
a member of the executive commit
tee for NACHA and is currently
president of the Iowa Automated
Clearing House. He joined the staff
of Norwest Bank Des Moines, N.A.,
in 1962 and has served in a number
of managerial positions for the bank.
* * *

S.L. ALLEN

R.A. SHELQUIST

S. POERTNER

D.C. SCHEMMEL

Shirley Poertner has been elected
training officer. Prior to joining the
Four officer changes at United company, she served as director of
Central Bancshares, Inc., were an training for the lead bank, United
nounced last month.
Central Bank of Des Moines, having
Steven L. Allen was elected vice joined the bank in 1978 as a super
president, credit administration. visor. In this newly created position,
Since joining the company in 1982, Ms. Poertner will have the training
he has served as loan review officer. responsibility for the company’s 13
Previously he was associated with Iowa banks, as well as the other nonHakweye-Capital Bank & Trust as banking affiliates.
vice president of correspondent
Dennis C. Schemmel was elected
banking.
compliance officer of the loan review
Robert A. Shelquist was elected division. Mr. Schemmel joined the
assistant controller. Mr. Shelquist company in 1982 as loan review
previously was employed by Galin- assistant.
sky & Company, Certified Public
* * *
Accountants in West Des Moines,
having joined that firm in 1979 and
George F. Milligan, president and
serving most recently as audit chief operatimg officer of Norwest
manager.
Bank Des Moines, N.A. announced

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

the introduction of a new concept in
providing investment management
services.
Through an agreement with the
Frank Russell Investment Manage
ment Company, Norwest Bank will
offer its customers access to seven
investment funds: three equity funds;
two fixed income funds; one interna
tional fund, and a money market
fund.
Unlike conventional investment
companies which usually have a sin
gle advisor, each fund available to
Norwest customers will have two or
more asset managers selected from
the best in the world. This multi
manager approach provides quality,
consistency and diversification by
using 25 managers whose perfor
mance is monitored by the bank and
the Frank Russell Company.
James D. Kempkes, senior vice
president and manager of the bank’s
capital management and trust divi
sion stated, “This exclusive service,
which is not available from other
Iowa banks, brings to our customers
the advanced investment alterna
tives that previously have been
available only to those with very
large pools of capital to invest.”
Norwest Bank Des Moines, N.A.
has $1.2 billion in assets and is the
second largest in the 86-bank net
work of Norwest Corporation.
The Frank Russell Investment
Management Company is a wholly
owned subsidiary of the Frank
Russell Company which was found
ed in 1936.
* * *

David N. Walthall, president of
Hawkeye-Capital Bank & Trust, re
cently announced the following
eight promotions:
Gregory L. O’Hara, new vice
president and senior trust officer,
joined the bank in 1981. Mr. O’Hara
had been working for the IRS in the
estate tax division since 1979.
James Mohni, named vice presi
dent and cashier, joined Hawkeye
Bancorporation’s audit staff in 1979
before accepting a job as accounting
officer at Hawkeye-Capital in 1981.
He was named cashier in 1982.
Named vice president and office
manager, Robert Durbin has been
with the bank 30 years. Primarily
serving in consumer lending, Mr.
Durbin has worked in every area of
the bank and for the past four years

111

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OF DES MOINES, N.A. AFFILIATED WITH UNITED CENTRAL BANCSHARES, INC. MEMBER FDIC

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Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1983

112

Iowa News

has managed the bank’s office at
2426 Hubbell Ave.
William Ites was promoted to
vice president and instalment loan
manager. He joined the bank in 1978
and was named manager of the in
stalment loan department in 1981.
Robert Dunlap, named assistant
vice president, commercial loans,
joins Hawkeye-Capital’s commercial
loan department from State Bank &
Trust in Council Bluffs, where he
most recently was manager of the
consumer loan department.
Newly elected to officer status
were Mark Rathbun, marketing;
Ted Economos, investments, and
Diane Plym, operations.
Mr. Rathbun joined the bank
three-and-a-half years ago and has
worked primarily in retail banking
and marketing.
Mr. Economos joined the bank in
1982 as an officer trainee.
Ms. Plym joined in 1978 and has
supervised bookkeeping and proof
departments.
* * *
The Brenton Bank and Trust
Company, Urbandale, recently pro
moted two members of the bank’s
staff. Marc S. Johnson has been
elected senior vice president in
charge of all the bank’s lending ac
tivities. He has been with the bank
since 1973 and is a graduate of Dart
mouth College. He is currently at
tending the graduate school of bank
ing at the University of Wisconsin
and has completed the commercial
lending school at the University of
Oklahoma.
Also announced was the election
of Mark A. Schill as vice president
and cashier. Mr. Schill has been with
Brenton Banks since 1973. He is a
graduate of Buena Vista College and
has completed the bank operations
school at the University of Wiscon
sin, the commercial lending school
at the University of Oklahoma and
the ABA personnel school at the
University of Colorado.

M.S. JOHNSON

M.A. SCHILL

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Net income of United Central
Bancshares, Inc. for the six months
ended June 30 was $3,045,555, an in
crease of 31% over the $2,317,400
earned for the first half of 1982, ac
cording to an announcement made
by Kenneth M. Myers, president.
Net income per share for the first
six months of 1983 was $0.29, com
pared to $0.22 for the same period
last year. For the three months end
ed June 30, net income was
$1,397,753, down 11% from net in
come of $1,570,487 earned in the se
cond quarter of 1982. Net income
per share for the second quarter of
1983 was $0.13, down from $0.15
per share earned in the comparable
quarter of 1982.
* * *

Holmes Foster, president and
chief executive officer of Banks of
Iowa, Inc., recently announced the
appointment of
Jim H. Olson as
loan administra
tion officer.
A native of
Hartwick, Mr.
Olson is a grad
uate of Iowa
S ta te U n iv er
s ity ,
A m es,
where he ma
jored in indusJH- 0LS0N
trial administration/accounting. He
has been with the Iowa Department
of Banking for the past five years,
most recently as a bank examination
analyst.
* * *

J. Locke Macomber, president of
Valley National Bank, recently an
nounced several title changes in the
trust division:
Verne C. Bates was named vice
president and senior trust officer;
Larry R. Cobb was named vice presi
dent and investment officer; Susan
P. Cramer was named vice president
and trust officer, and Michael R.

V.C. BATES

L.R. COBB

S.P. CRAMER

M.R. HYZER

C.H. LEIBOLD

S.K. GRAFFT

S.D. PONTIER

J. TANNATT

J. HURST

D.A. BAUMAN

Hyzer and Charles H. Leibold were
named senior trust officers.
New trust officers include: Sharon
K. Grafft, Sharon D. Pontier and
Jean Tannatt. Jill Hurst was named
trust operations officer and Delores
A. Bauman was promoted to trust
administrator.
* * *

Brenton Banks, Inc. reported net
income for the first six months of
1983 increased 6.9% to $2,983,895
from $2,791,372 earned during the
same period a year ago. Earnings
per share for the six-month period
were $1.69, compared to $1.57 earned
a year ago.

AMONG those present for the dedication of Mosler’s new William A. Marquard Education
center were, from left: Roy C. Satchell, sr. v.p.-security and graphic products, AmericanStandard; Robert F. Murphy, pres., Mosler Safe Co.; W illiam B. Boyd, pres. & ceo.; Mr. Mar
quard; Keith D. Bunnel, vice chmn.-adm., and Alan C. Root, sr. v.p.-oper. serv., all of
American-Standard. Also present was Joseph McDonald, sr. v.p., Mosler Safe Co.

Mosler Dedicates Education Center
OSLER has opened the Wil
M
liam A. Marquard Education
Center in Hamilton, Ohio. Mr. Mar

quard, chairman and chief executive
officer of American-Standard, Inc.,
Mosler’s parent company, and a former Mosler president, cut the ribbon

officially dedicating the 90,000
square foot structure.
At the opening ceremonies, Mr.
Marquard remarked that “the new
facility represents a sizable, tangible
investment by American-Standard
and will further ensure that Mosler

BMA Expects 2,000 Bankers in Atlanta
HE BANKING industry’s chal
lenge from non-bank competi
tion as well as marketing’s orienta
tion toward bottom-line perfor
mance are areas to be highlighted at
the Bank Marketing Association’s
68th annual convention to be held
October 23-26 at the Atlanta Hilton.
As estimated 2,000 bank market
ing professionals from around the
world are expected to convene in
Atlanta for the four-day conclave.
Among speakers for the meeting
are some of the nation’s leading
practitioners of marketing. Keynot
ing the conference will be Archie J.
McGill, Jr., former president of
AT&T’s Advanced Information Sys
tems Division, who recently joined
Rothschild Ventures, Inc., a venture
capital subsidiary of the Wall Street
investment banking firm, Roths
child, Inc., as president and CEO.
Other convention speakers in
clude R.A . M cK innon, vice
president-m arketing, Delta Air
Lines, Inc., Atlanta; John Naisbitt,
author of the best-selling book
Megatrends; and Miles A. Nelson,
director of marketing information
and communication, 3M Company,
Minneapolis.

III

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Federal Reserve Bank of St. Louis

A. MC GILL

J. NAISBITT

Among the convention panel dis
cussions wil be “Status Report:
ATM National Networks,” with D.
Dale Browning, president, Plus Sys
tem, Inc., Denver; Bruce A. Burch
field, president, Cirrus System, Inc.,
Oakbrook, 111.; George J. Fesus, ex
ecutive vice president, MasterCard
International, New York; and John
O. Smith, director, ATM Network,
Visa USA, Inc., San Francisco.
Also planned for the convention
are two special panels — one com
posed of presidents of Federal Re
serve banks discussing economic,
regulatory, and pricing issues, and a
second panel of prominent bank
stock analysts who will view the
outlook for bank profitability.

113
remains the top quality supplier of
goods and service in the security in
dustry.”
The new Education Center, with
its modern classrooms and labora
tories, was designed to meet the ever
increasing need for high-tech train
ing resulting from the development
of new security systems and tradi
tional product enhancements. The
new Center will allow Mosler at least
to double its previous capabilities in
the training of its nationwide sales,
installation and service groups. In
addition, Mosler provides product
training for customers.
A complete operational represen
tation of the Mosler product line is
a ttra c tiv e ly exhibited in the
Center’s huge display area for cus
tomer viewing and demonstration.

W isconsin H.C. Approved
The Federal Reserve Board has
announced its approval of the ap
plication of Citizens Financial Cor
poration, Fort Atkinson, Wis., to
become a bank holding company by
acquiring Citizens State Bank, Fort
Atkinson, Wis.
Three members of the Fed panel
include: William F. Ford, president
of the Atlanta Fed; E. Gerald Cor
rigan, president of the Minneapolis
Fed, and Anthony M. Solomon, of
the New York Fed.
Convention sessions are scheduled
on all phases of bank marketing, in
cluding product development, pric
ing, sales development/management, positioning and distribution.
Workshop sessions will provide the
new practitioner or experienced
bank professional an opportunity to
profit from the experience of others,
to be better informed on current
issues facing bank marketers, and to
become familiar with the process in
volved in developing profitable fi
nancial services.
This year’s convention theme is
“Managing for Profitability: The
Marketing Challenge.” According to
Robert Perdue, convention chair
man and vice president, South Caro
lina National Bank, Columbia, the
theme was chosen to acknowledge
the marketer’s increasing respon
sibility within the management
team. Other subjects to be addressed
include product portfolio analysis,
matching liabilities to assets, and
discount brokerage.
□
Northwestern Banker, September, 1983

114

Iowa News

Hawkeye-Capital Ribbon Cutting Held

M. ZROSTLIK

R. BELL

Mary Zrostlik, who was honored
for 30 years service in July, was
elected as safe deposit officer.
Rock Bell was elected instalment
loan officer. Mr. Bell previously was
an officer with the First National
Bank of Hampton.
AS Board Chairman Larry L. Wenzl (left) and Senior Vice President Thomas J. Clark (right)
hold the ribbon, Mayor Pete Crivaro cuts a ribbon of $100 dollar bills to officially open the
new Hawkeye-Capital Bank & Trust building at East Fifth and Locust Streets in Des Moines
on July 19. Davil N. Walthall, pres., looks on. At a total cost of more than $3.5 million and
with nearly 47,000 sq. ft. of space, the new building will also house several Hawkeye Ban
corp. subsidiaries, including Hawkeye Insurance Services, Hawkeye Bancorp. Mortgage
Company, the Hawkeye Credit Card Center and Iowa Higher Education Loan Program.

Appointed in Davenport

Davenport Bank and Trust Com
pany
also announced the appoint
Davenport Bank and Trust Com
pany recently announced the ap ment of Carl F. Becker to the posi
tion of vice president, operations.
p o in tm e n t of
Mr.
Becker will oversee the bank’s
James R. Peter
retail banking relationships. He is a
son and Walter
graduate of the Illinois School of
F. Buettner as
Banking, Southern Illinois Universi
c o rre sp o n d e n t
ty and the School of Bank Admini
banking officers.
stration, University of Wisconsin.
B o th officers
He comes to the position with nine
will work with
teen
years of prior banking exper
banks in Iowa
ience in the Quad-City area.
and Illinois.
Also announced were the follow
Mr. Peterson
J.R. PETERSON
ing
promotions: Michael A. Bauer,
is a graduate of
first
vice president, correspondent
the University of Iowa, holds an
MBA from Central Missouri State banking; Glen W. Piotter, first vice
University and will graduate from president, and Robert J. Hartman,
the Stonier School of Banking in vice president, both in the computer
May of 1984. He has had eight years services division.
of prior banking experience with fi
nançai institutions in Iowa.
New President Elected
Mr. Buettner has been with Dav
Ken Baker has been elected presi
enport Bank and Trust Company for dent and a director of Iowa State
nine years. He most recently wras an Bank, Fort Madison. Mr. Baker has
officer in the credit card division been associated with Home State
where he acted as a merchant bank Bank of Jefferson since 1973, most
representative.
recently as vice president of com
mercial lending.
He succeeds Doyle Hoyer, who
was inactive as president but con
tinues as a director.

Mason City Bank Elects Two

W.F. BUETTNER

C.F. BECKER

Northwestern
Banker, September, 1983
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

United Central Bank & Trust
Company of Mason City recently re
ported the election of two new of
ficers.

IlNDEX OF ADVERTISERS
SEPTEMBER, 1983
Acorn Printing ................................................................ 14
American Bankers A ssociation...................................... 21
American Trust & Savings Bank, Dubuque..................... 93
BANCVEST............................................................................... 91#
Bank of America.............................................................. 39
Bank of North D akota.....................................................61
Bankers Trust Company, Des Moines.............................76
Banks of Iowa Computer Services.................................. 99
Barclays American/Business C re d it................................ 8
Bremer Financial Corporation, St. Paul...........................57
Central Bank of Denver.............................................. 64-65
Chiles Heider & Company, Omaha................................. 84
Collateral Control Corp., St. Paul...................................... 9
Commerce Bank of Kansas C ity...................................... 19
Commercial National Bank, Peoria................................ 48
Des Moines Rubber Stamp Co........................................102
Douglas Guardian Warehouse........................................18
Drovers Bank of Chicago........................................... 88-89

A
W

Employers Mutual Co., Des Moines................................ 29
F & M Marquette National Bank, Minneapolis............82-83
First-Mid America .......................................................... 74
First National Bank, Chicago......................................... 5
First National Bank, Kansas C ity .................................. 100
First National Bank, Lincoln............................................75
First Bank, Minneapolis ................................................. 87
First National Bank, Omaha........................................... 71
First National Bank, St. Joseph.................................... 109
First Bank, Saint P a u l..................................................... 79
First National Bank, Sioux City ......................................97
Gross, Kirk Co., W aterloo............................................... 85
HBE Bank Facilities, St. Louis........................................6-7
Hawkeye Bancorporation, Des Moines...........................90
E.F. Hutton & Company, Des Moines............................. 106
IAC G roup.................................................................. 15,86
IBM Corporation.....................................................11-12-13
Iowa Bankers Insurance & Services, Inc......................94-95
Kooker, E.F. & Associates............................................... 96
LaSalle National Bank, Chicago .................................. 101
LeFebure Corporation, Cedar R apids............................ 3
Manufacturers Hanover Trust Co................................ 26-27
Merchants National Bank, Cedar R apids...................... 2
Microtech, Omaha.......................................................... 22
Mortgage Guaranty Insurance Corp............................ 16-17
National Bank of Commerce, Lincoln
National Boulevard Bank, Chicago ..
Northern Trust Company, Chicago ..
Northwestern Bell Telephone Co. . . .
Norwest Bank Des M oines...............
Norwest Bank Omaha......................
Norwest Business Credit/Leasing . ..
Office Concepts, W aterloo...............
Omaha National Bank ....................

.. .73
.. .23
. . .25
. . .30
. .116

. . .68
. . .50

. . .96
. 58-59
Packers National Bank, Omaha...................................... 70

Rocky Mountain Bank N o te .......................................... 115
Security National Bank, Sioux C ity ..............................105
Shaw-McDermott & Co., Des Moines..............................98
UCB Leasing Corporation, Des Moines........................ 103
UCB Systems, Inc., Des Moines...................................... 81
United Central Bank, N.A., Des Moines........................ 111
Valley National Bank, Des Moines.................................107

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®1983 Rocky Mountain Bank Note

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

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WEIL SEE YOU
IN SEPTEMBER

Kersey

Garry Frandson

Bob Buenneke

Mark Conway

Dennis

Tom Quinlin

Dorothea Wolfe

1983 IOWA BANKERS CONVENTION
September 18, 19, 20
The 97th annual convention of the Iowa Bankers Association
is sure to be one of the best. While you are in Des Moines,
stop in the bank and see us...at our Bankers Reception,
Monday, September 19 from 5:00 to 7:00 RM. in the main
lobby of the Financial Center.

NORWEST BANKS

666 Walnut Street
Norwest Bank Des Moines, N. A.

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Federal Reserve Bank of St. Louis

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