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Federal Reserve Bank of St. Louis

If managing your investments is taking up
more time than you'd like it to, call Chase.
Instead of spending hours on the phone
talking to dozens of people, you'll talk to
just one person. Your Community Banking
Account Manager.
Your Manager will handle everything.
From telling you about our high yield, liquid
investment options to filling you in on how
events in the financial world may affect your
We do all this so you can make better
IBM is a registered tra d em ark of th e IBM C orporation.
© 1986 T he Chase M anhattan Bank, N. A ./M em b e r FDIC
Federal Reserve Bank of St. Louis

investment decisions.
And so you can make them faster.
But if this still isn't fast enough, Chase has
lust the thing. The Chase MicroStation. It
lets you manage your cash, information and
investments all from one location: your
IBM compatible PC. All at the speed of light.
Which makes it perfect for those of you
who are in a real hurry.
For more information, call Dave Larsen,
Vice President, Chase Community
Banking Division, (212) 552-4153.



Chances are, your bank has
been exposed m ore than once to
“bond service.”
I t’s transaction-oriented
service from people who know
bonds, not banks. So th e advice
you g e t too often goes no
fu rth er than offerings and oc­
casional bids.
Bond service is not w hat
L. F. Rothschild, U nterberg,
Towbin provides. O ur specialty
is BANK SERVICE.® O ver 25
years of service th a t combines
intim ate knowledge of bonds
w ith in-depth understanding of
your portfolio in th e sam e light
as you do: As a crucial com­
ponent of your b ank’s overall
position. N ot as an independent
Federal Reserve Bank of St. Louis

T hat’s why before we make
a recom m endation we conduct a
thorough study of your bank.
com m ittee m eets to discuss the
Bank R eport w e’ve p repared
specifically for you.
The recom m endations
from the com m ittee are tailored
to your bank’s p resen t position
and future objectives in a chang­
ing m arketplace.
O ur PMS system can help
you m onitor and m anage
your portfolio. W e’ll introduce
you to our Fixed Income Com­

p u te r Service, our investm ent
banking group, our fixed income
research, send you our new s­
le tte r and invite you to appro­
priate sem inars th a t we host in
your area.
All these services are de­
signed for one goal: To help you
achieve your bank’s overall
aims in a w ay no m ere bond
service can.
So, while you m ay be g e t­
ting bond service, w hat you
really need is BANK SERVICE.
Call M ark Rosen, Principal, at
(212) 412-2600.

Northwestern Banker, September, 1986



'j^ a m p u
SEPTEMBER 1986 • 93rd Year • No. 1476

The stylized logo on the cover depicting a well-deserved salute to the Iowa Bank­
ers Association on the occasion of its 100th Convention is a far cry from the more
formal, typeset treatment that was used by almost every business firm and asso­
ciation when the IBA came into existence a century ago. However, a comparison
of the “old-fashioned” logo with modern art techniques is a small example of the
tremendous changes and advances made in the banking industry in that same
century. This issue pays special tribute to the IBA and its 100 years of progress.



Across the Desk from the Publisher

A peek behind the scenes at preparing a Centennial Issue


A Century of Growth!

How the Iowa Bankers Association helped build the state


New Norwest Center

A jewel for Minneapolis in expanding crown of its skyline


“Renewal - Involvement - Celebration”— 100th Convention Program
Spouses’ Program Offers Variety of Interests
Interview with IBA Pres. Bruce Meriwether and E.V.P. Neil Milner
You Will See Them at the 100th Iowa Convention
IBA Officers Are Elected
Group Chairmen Report Area Conditions
Des Moines News





Twin Cities
South Dakota

North Dakota
Index of Advertisers

1535 Linden Street, Suite 201, Des Moines, Iowa 50309

Publisher & Editor

Associate Publisher

Ben Haller, Jr.

Robert Cronin

Phone (515) 244-8163

Associate Editors
Melinda Sauers

Diane Nelson

No. 1476 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$1.50 per copy. $18 per year. Second Class postage paid at Des Moines, Iowa. POST­
MASTER: Send all address changes to Northwestern Banker, 1535 Linden Street, Suite
201, Des Moines, Iowa 50309.
Banker, September, 1986
Federal Reserve Bank of St. Louis

□ Sell
□ Swap
□ All of the *
The gnomes ^
f know that
lenders have
I different
" needs at difl ferent times.
So Freddie Mac offers
two choice ways to par­
ticipate in the se c o n d a ry
When you want to raise
funds and lock in servicing
income, Freddie M ac’s O
Cash Program may be
the way to go. Using this
program to manage your
pipeline limits your e x p #
sure to interest-rate risk
and lowers your inventory
If you want securities^
with exceptional m arket­
ability that can also
serve as choice collateral,
Freddie M ac’s G u aran to r
Program is the answer.
You can swap as little as
$250,000 in loans for
Freddie Mac PCs. Our
timely principal guaran­
tee and exact decimal
point coupons raise their
collateral value even more
And you can always ar- ®
range for Freddie M ac’s
Security Sales and Trading
Group to sell your PCs
for cash.
Sell or Swap? Your
Freddie Mac representa­
tive can tell you why the
answer is a ll o f the abo\%
And that’s a piece of
gnome knowledge that is
just too good to file away.


30-Yeor Fixed Rote %

Second Wortgos®



W hatever the m ix o f m ortgages y o u ’re originating, the gnom es
o f Freddie M ac can put their hands on the program that
w orks best for you. E very Freddie M ac product line has
features that provide real flexibility. T h a t’s w hy lenders
know they can alw ays find the m akings o f a very choice deal.
Freddie Mac ■ Marketing Communications ■ 1776 G Street, JV.W ■ P.O. Box 37248 ■ Washington, D.C. 20013-7248
Federal Reserve Bank of St. Louis

©1986, FHLMC

Owned by America’s Savings institutions


Convention Calendar


Oct. 7-10— BAI Contemporary Issues in
Cash Management Conference, Wash­
ington, D.C.
Oct. 14-17— RMA Conference on Securities
Lending, Boca Raton Hotel and Club, Fla.
Oct. 19-22— BAI Asset Liability Manage­
ment Conference, Dallas, Tex.
Oct. 24-29—ABA Annual Convention, San
Francisco, Calif.
Nov. 16-19— BAI ATM9 Electronic Delivery
Systems Conference, Los Angeles, Cal.
Nov. 16-19— BMA Trust & Personal Finan­
cial Services Marketing Conference, New
Orleans Sheraton.
Nov. 16-19—ABA National Ag Bankers Con­
ference, Opryland Hotel, Nashville.
Nov. 16-19— BAI ATM 9, The Electronic
Delivery Systems Conference, Los
Angeles, Calif.
Nov. 17-21 — BMA Southwestern Essentials
of Bank Marketing School, University of
Houston, Houston, Tex.
Dec. 9-12— BAI Money Transfer/Corporate
Operations Conference, New York, N.Y.

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

National Conventions & Schools

Sept. 14-17— NABW National Convention,
Ceasars Palace, Las Vegas, Nevada.
Sept. 21-24—ABA National Conference on
Human Resources, Fairmont Hotel, San
Francisco, Calif.
Sept. 21-24— BMA Annual Convention,
Washington Hilton, Washington, D.C.
Sept. 21-26— KBA, NBA Professional Devel­
opment Program Intermediate School of
Banking, Holiday Inn, Manhattan, Kan.
Sept. 22-26— BAI Basic Bank Auditing Con­
ference, Minneapolis, Minn.
Sept. 23—The College for Financial Plan­
ning, Financial Planning Practice Semi­
nar, Part II, Atlanta, Ga.
Sept. 28-Oct. 1— RMA Annual Fall Confer­
ence, Shamrock Hilton, Houston, Tex.
Oct. 5-8— Microbanker Expo ’86, Hyatt Re­
gency at Peachtree Plaza, Atlanta, Ga.

State Conventions & Schools
Oct. 6-7—Asset/Liability Mgmt Seminar, Den­
Sept. 16-17—IBAA Commodity Marketing
Seminar, Chicago.

Sept. 14-16— IBA 100th Annual Convention,^
Convention Center, Des Moines.
Sept. 30—IBA Loan Documentation, Marriott,
Des Moines.
Oct. 19-25— IBA Consumer Credit School,
Drake University, Des Moines.
Dec. 4— IBA Bank Directors Seminar, Holi-^
day Inn, Ames.
Sept. 23-24—NBA Planning for Profits, Kear­
ney Holiday Inn.
Oct. 29-Nov. 1— NBA/ABA Convention Post-0
Trip, Monterey, Calif.
North Dakota:
Sept. 15— NDBA Northeast Group Meeting,
Veterans Club, Grafton.
Sept. 16— NDBA Northwest Group Meeting,#
Turtle Mountain Lodge.
Sept. 17— NDBA Southwest Group Meeting,
Golden West, New Salem.
Sept. 18— NDBA Southeast Group Meeting,
Eagles Club, Valley City.
Sept. 24-26—Independent Community B anks#
of North Dakota Annual Convention, Kirk­
wood Motor Inn, Bismarck.
South Dakota:
Sept. 15—SDBA Group II Meeting, Sheraton0
Inn, Aberdeen.
Sept. 16—SDBA Group IV Meeting, Wrang­
ler Motor Inn, Mobridge.
Sept. 17—SDBA Group V Meeting, Rapid
Sept. 18—SDBA Group III Meeting, Holiday0
Inn, Mitchell.

Another reason for selecting Swords Associates.
and an examination of the bank’s
operations, Swords Associates was back
within a week with what they considered
our most viable solution.
Swords Associates recommended
that our bank offer to exchange variable
rate preferred stock for our soon-to-be-due
debentures. An austerity program was to
be launched immediately to enhance our
profitability. With Swords Associates
assistance a prospectus was developed, a
meeting held with the Comptroller and the
exchange idea presented and approved by
the debenture holders.

“We as the directors of a $200
million national bank had to make some
drastic decisions. Our R0A had dropped
below .60% and our capital-to-assets ratio
stood at 4.8%. We had dismissed most of

the upper level management, and had
received a warning from the Comptroller’s
office. Swords Associates was called to
help us organize our chaos.
After a meeting with management

Today after carefully following
Swords Associates suggestions and further
consultations on other minor problems, our
bank has fully recovered. Our R0A is
presently running at a respectable 1.26%,
capital-to-assets ratio is up to 6.8%. We
have recently lifted our austerity program
and are viably competing for business in
the community.”


4900 OAK
Banker, September, 1986
Federal Reserve Bank of St. Louis













Sept. 19—SDBA Group I Meeting, Holiday
Inn City Centre, Sioux Falls.
Sept. 23— IRA (Beginner) Seminar, Sioux
Sept. 24— IRA (Beginner) Seminar, Holiday
Haus, Pierre.
Oct. 9-10— Installment Credit/Retail Banking
Conference, Holiday Inn City Centre,
Sioux Falls.
Oct. 22-23— Economics Seminar For Young
Adults, Holiday Inn, Mitchell.
Nov. 11— IRA (Advanced) Seminar, Sioux
Falls. .
Nov. 12— IRA (Advanced) Seminar, Holiday
Haus, Pierre.

Rocky Mountain Bank Note
Promotes W illiam Ellis
William J. Ellis has been pro­
moted to vice president and general
manager of the
Rocky Mountain
B an k N o te ’s
Forms Products
Division, accord­
ing to John H.
H olm an, company president.
Mr. Ellis was
previously direc­
tor of market­
The division, with 160 employees,
produces a wide range of MICR en­
coded business forms for financial
institutions and commercial organi­
Rocky Mountain Bank Note also
announced the promotion of Doris
Mullen to director of customer ac­
counting and assistant corporate
The company’s Check Products
Division also announces the follow­
ing promotions: Craig Vanderlain to
manager of product planning, custo­
mer check programs; Peg Smith to
services development manager; Ken
Bier to sales manager, and Walter
Derr to pricing administration man­

Yvonne Schell Joins
W ells Fargo Realty
Yvonne Schell has joined the Den0 ver regional office of Wells Fargo
Realty Advisors as vice president.
In her new position she will be re­
sponsible for reviewing and struc­
turing equity real estate investment
^ opportunities for Wells Fargo Real­
ty Advisors and for funds under its
advisement. Ms. Schell was former­
ly associated with Carley Capital
Group as vice president of develop0 ment in its Denver office.
Federal Reserve Bank of St. Louis

LaSalle National Bank supports you. With
more than halt a century of e x p erien ce...
innovative products... responsive service...
and deep commitment to the market.
Our goal is to help you enhance your over­
all performance. LaSalle takes a consulting
approach to correspondent banking, working
closely with you to develop strategies that
improve profits, growth and efficiency. We offer
individualized service an d comprehensive
capabilities, including:
• multiple investment consulting
• credit and financial services
• global trade finance
• merger and acquisition consulting
• trust, treasury an d m any other services
In addition, LaSalle ensures dependable,
cost-effective check processing, collections,
loan overlines and the other standards of cor­
respondent banking.
As your Midwestern neighbor, we share
your perspective an d regional loyalties. As a
Chicago bank with international resources,
LaSalle c a n share m oney-center b an k in g
opportunities as well. Through our affiliation
with ABN Bank, a leading global institution,
w e offer m a n y a d v a n ta g e s w ell w o rth
Get acquainted with LaSalle's Correspondent
Bankers. Call Wayne Bismark or Del Rogers at
312-443-2769. Wayne, Del a n d the LaSalle
Correspondent Banking team will give you
u n b e a ta b le support —with b etter service,
better products an d better ideas.
LaSalle National Bank
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
Member of the ABN/LASALLE group

Your Correspondent Banking Bridge
©1986 LaSalle National Bank

Northwestern Banker, September, 1986


Leading a discussion on “Devel­
oping and Enhancing Business Part­
nerships with Line Managers” will
The 1986 National Conference on be Irving R. Margol, executive vice
Human Resources, Sept. 21-24 in president, Security Pacific National
San Francisco, is designed to help Bank, Los Angeles, and William L.
human resources managers meet an Ricci, senior vice president and per­
important new goal.
sonnel director at Security Pacific.
“In Good Company: Human Re­
Another general session highlight
sources and the Bottom Line” is the is “Banking in a Turnaround Situa­
conference theme, with speakers in­ tion,” with G. Robert Truex, Jr.,
cluding William M. Issac, former chairman and CEO, Rainier Na­
FDIC chairman and now president tional Bank, Seattle. Also, Dr. War­
and CEO, Secura Group, Washing­ ren Bennis, Joseph DeBell Professor
ton, D.C., discussing current and of Management and Organization,
University of Southern California,
emerging industry trends.
San Francisco Hosts ABA
Human Resources Conference

Most lease programs lack
a certain flexibility.

Any leasing company can keep you from tying up your capital.
Bankers/Plus can keep you from being tied down to unwanted
In fact, we’re probably the most flexible leasing
company in the country.
Unlike other lease programs, ours
allows you to upgrade whenever you need
to. Because ours are designed with a
genuine understanding of your needs.
Call us today. (612) 331-1164.

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

will discuss the findings of his new
book, Leaders: The Strategies for
Taking Charge, and apply them to*
the human resources professional.
Concurrent sessions feature a
variety of experts, with topics in­
cluding “Bank Culture ChangeDanger or Hidden Opportunity?”,
“Mergers, Acquisitions, and Dives­
titures Update”; “Incentive and
Variable Compensation”; “Manag­
ing Non-Interest Expenses”; and.
“Enhancing Productivity Through1
Technology: New Tools of the
The 1986 conference also includes
expanded asset-size discussion^
groups and new “mini-workshops”
on “Strategic Planning for Human
Resources”; “Analyzing Benefits
Products” ; “ Staffing Strategies
That Pay Off”; “ Internal Consult-^
ing Skills for Human Resources”;
and “AIDS: Hard Facts on a Deadly
To register for the 1986 ABA Na­
tional Conference on Human Re-|
sources, contact the Conference Re­
gistration Coordinator, ABA Na­
tional Conference on Human Re­
sources, 1120 Connecticut Ave.
N.W., Washington, DC 20036, or^
call the ABA Banker Education
Network (BEN), (202) 663-5430. The
cost of the conference is $725; ABA
member discounted cost is $575. For
more information, contact A1 Hinkle^
in the ABA Human Resources Cen­
ter, (202) 663-5280.
United Missouri Bank
Announces Promotions
The following officer promotions
have been announced by United
Missouri Bank of Kansas City,
Thomas E. Brusnahan to senior
vice president in the business devel­
opment department. He joined the
bank in 1980 and previously was af­
filiated with Boeing Airplane Com­
pany, Wichita.
J. Robert Loar to vice president in
the commercial bank operations
division, managing wire transfer ac­
tivities. He joined the bank in 1984
after previous bank experience. He
attended the University of Missouri
—Kansas City.
Stephen R. Bates to assistant vice (
president in the business develop­
ment department. He joined United
Missouri Bank in 1984 after gradua­
tion from Babson College in Welles­
ley, Mass., with a marketing degree. |



Because you
want a banking
)artner who never
tops earning
)ur business.

i after we have it. That’s
* what relationship banking

Î 2 means to us. Building the kind
l? 4 \ V
closeness that earns your
I À trust. That’s why we placed our
C/Ze/if Executives close to you.
; To keep our ears tuned to your J
needs, and give you what you
as/c for. Even anticipate it
before you need it.
It may mean working a
I ? few /aie nights. It definitely


means not taking your busi­
ness for granted. And, it
means using all the resources
of Norwest for your benefit.
That’s what we mean by
I relationship banking. If you
l use our financial institutions
' services, you already know
what we’re talking about. If you m . \ ' ;
don’t yet, you will definitely
want to try us. Welcome a call
m .
from your Client Executive
very soon.
Financial Institutions Group

Members FD1C
Federal Reserve Bank of St. Louis


BAI Will Launch New
Executive School at Duke
Bank Administration Institute
and Duke U niversity’s Fuqua
School of Business have announced

plans to launch a new bank execu­
tive program that responds, accord­
ing to Ronald G. Burke, president of
the Institute, “to intense and grow­
ing demands placed upon banking

Douglas Austin & Associates, Inc. can provide you
with specialized marketing expertise to assist you and
your organization with becoming more competitive and
profitable. Our experience in working with both small
and large community-oriented financial institutions
enables us to diagnose quickly and effectively your
organization's marketing opportunities and challenges.
Whether it's strategic or marketing planning, product
development and pricing, advertising, shareholder
relations, sales training, or business development, w ere
the one to call.

(4 1 9 ) 8 4 1 -8 5 2 1
3178 Republic Blvd. N., Toledo, OH 43615______
_____Toledo * Chicago * Indianapolis___________

Downtown Chicago's

modern and


<xitip park.

Ê '¿MI ì
The Essex Inn's one-price $52 corporate peckage rata
gives the traveling executive everything he wants
guaranteed rate, a newly remodeled guest room (we'll
upgrade you to a suite if it's available), complimentary
Wall Street Journal w ith your Continental breakfast, and
your spouse can stay free w ith you. Free parking, too!
The corporate package is one of the new programs
designed to complement the Essex Inn's recently completed

New, modern, economical, informal

frie n d ly . . .and


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Another fine Aristocrat Inn of America



$3 million remodeling; new rooms, suites and lobby, New

1 1 1

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York style deli for breakfast, lunch, dinner, late snacks, a


Michigan Ave at 8th St
Chicaqo. Illinois 60605

comfortable lounge with entertainment, along with a
swimming pool and sun deck.


Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis


John Castillo, 3 1 2 9 3 9 2 8 0 0


Across from Chicago Hilton & Towers


for highly competent and versatile
general managers. The future of our^
industry rests with managements,w
ability to adapt to change, compete
aggressively and motivate an in­
creasingly diverse work force.”
The program’s inaugural tw o-^
week session, scheduled for fallw
1987, will draw senior bankers who
have had extensive experience man­
aging varied and complex busi­
nesses and who demonstrate poten-^
tial for greater responsibility, ac­
cording to Dr. Kurt Elster, senior
executive for Professional Develop­
ment at BAI.
The program, advised by a b o ard s
of top bankers, ensures its relevancy
to immediate and pressing manage­
ment problems through a careful fa­
culty balance between highly suc­
cessful bank executives and leading#
faculty members drawn from Fuqua
and other prestigious business
The Fuqua School of Business,
founded in 1970, has ra p id ly #
achieved recognition as one of the
country’s premier schools of busi­
ness and management. According to
Dr. Thomas Keller, Fuqua’s dean,
this executive program “should#
have a very positive and lasting ef­
fect on the entire banking industry.
We’re proud to bring his powerful
program to the banking communi­
Bank Administration Institute is
a specialized, professional organiza­
tion concentrating on research, fi­
nancial publishing, and professional/
m anagem ent development pro-©
grams for banking and other finan­
cial services executives.
Joins Kansas Bankers
Surety Company, Topeka
Peter W. (Pete) McDonald has
joined the Kansas Bankers Surety
Company, Topeka, Kan., as man­
ager, financial institutions.
Mr. McDonald is a graduate of
Rockhurst College with graduate
work at Emporia State University.
He has been a teacher and coach at
Wyandotte High School in Kansas
City and a parole officer for the Kan­
sas in Wyandotte County.
His great-grandfather, Peter W.
Goebel, was one of the original incor­
porators and directors of the Kansas
Bankers Surety Company, as well as
a past president of the Kansas
Bankers Association and American
Bankers Association.

Deregulation and today’s economy continue to increase
competition between institutions and open up competition
from outside sources, while squeezing margins to just
pennies per dollar. What’s the solution to bank survival and
growth in the 80’s?
Information that keeps you in touch w ith the impact of
past decisions, current conditions, and future considerations.
Information that allows you to meet and beat whatever
competition comes along. Information provided by an ITI inhouse computer system.
Contact Information Technology, Inc. for the solution to
the challenges you face today...ana tomorrow. Find out why
more banks are turning to ITI to weather the storm.

P. O. Box 2705 / Lincoln. NE 68502 / (402) 423-2682
Federal Reserve Bank of St. Louis


Knight, ME PC marketing director.
Occupancy is scheduled for falW
leading financial services company
Facing the downtown Minneapo­
and subsidiary of The Greyhound lis skyline, Travelers Express Tower
Corporation. Travelers Express, a will be the focal point of Minneapolis
company founded in Minneapolis in West Business Center with its soar®
1940, has been a Minneapolis West ing granite spire and gleaming,
tenant since 1977. The company will peaked roof. With aesthetic detail
occupy approxim ately 135,000 totally appropriate to its environ­
square feet in the new building.
ment, yet unique in Minnesota, Tra­
The signing of the Travelers Ex­ velers Express Tower will command®
press lease signifies that 60 percent visual respect in an elegant business
of the Tower is pre-leased, said Kym environment. The dramatic sculp­
tured facade with recessed, tinted,
reflective glass windows and pol­
ished Finnish red granite will boast®
a two-story mall of granite and soar­
ing skylights.
Tenant spaces will feature fullheight cherry wood doors with brass
hardware, fully carpeted interiors®
and stylistic vinyl and painted
walls. Off-white lay-in ceilings with
bi-level switched parabolic light fix­
tures will provide airy, spacious
work environments for tenants.
Travelers Express Tower will be
surrounded by a granite-paved plaza
and verdant landscaping, high­
lighted by park-like outdoor seating
at focal points for maximum v is u a l

Travelers Express Breaks Ground
r o u n d b r e a k in g

and con­

G struction of the new Travelers
Express Tower, centerpiece for the

Minneapolis West Business Center
(Minneapolis West), is under way,
announces David Gruber, president
of ME PC American Properties, Dal­
las and Minneapolis.
The nine-story Travelers Express
Tower will serve as corporate head­
quarters for Travelers Express, a

P erformance Speaks.
O v e r t h e y e a r s , B r o c k R e p o r t s u b s c r ib e r s h a v e




Brock Report Net Avg. Price


National Average Price










85- 86*

86- 87’

*Preliminary statistics as of July 7, 1986.

THE BROCK REPORT is America’s most complete farm marketing service. Each 32-page weekly issue
contains everything you need to make key marketing decisions. For your free three-week trial subscription
call 1-800-558-3431 (in Wisconsin call 414-351-5500).
For the years 1978-80, the numbers represent farms managed by Richard A. Brock individually before Brock Associates was formed. For the years 1980 to the present, the results are
the recommendations of T he B rock Report. Subscribers may or may not have taken every recommendation. For 1982-83, the average cash price includes sale of reserve com and
government deficiency payments. The results for 1983-86 do n o t include deficiency payments (approximately 48<t) or any government program benefits.

for FRASERBanker, September, 1986
Federal Reserve Bank of St. Louis


enjoyment. A six-level parking ramp
will provide completely-sheltered
pedestrian access to the building.
Architect is HMBH of Dallas,
Texas; M.A. Mortenson Company,
Minneapolis, is general contractor.
O The Travelers Express Tower will be
managed and leased by ME PC
American Properties as part of the
Minneapolis West Business Center.

Charles Barrow Retires
From Northern Trust
Charles H. Barrow, president and
a director, took early retirement
from The North­
ern Trust Com­
pany and North­
ern Trust Corpo­
ration effective
S e p te m b e r 1,
Mr. Barrow,
age 56, joined
Northern Trust
of Chicago in
through various positions of respon­
sibility in the banking department,
and became a member of executive
management in 1974. He has served
as president of the holding company
and the bank since 1981. In 1984 he
assumed responsibility for creating
the bank’s capital markets unit.
Commenting on his decision to
take early retirement, Mr. Barrow
said, “ I have thoroughly enjoyed
my 34 years with the bank. It has
been an honor to have served as
president, and I leave Northern
Trust with genuine regret. Unfortu­
nately, the opportunities for further
expansion of my responsibilities
within our present organizational
structure are limited. Under those
circumstances, it makes sense for
me to seek another challenge outside
the bank while I am still young
enough to do so. The corporation is
in a very strong financial condition
with record profits and this seems
like an appropriate time to make
such a move.”
Weston R. Christopherson, chair­
man, said: “Charlie is leaving North­
ern Trust with an excellent, well-ex­
perienced management team in
place and at a time when the com­
pany’s progress attests to its broad
strengths. He deserves his full share
of credit for all that he has contri­
buted to Northern Trust.”
Mr. Christopherson will assume
the additional title of president.
Federal Reserve Bank of St. Louis

S T A T E -O F -T H E -A R T
S T A T E -O F -T H E -A R T


9910 N. 48th St., Suite 201
Omaha, Nebraska 68152
(402) 451-8440
Toll Free-1-800-255-2255 ext. 8440

Northwestern Banker, September, 1986

United Missouri Bancshares Opens
Brokerage Services As Subsidiary
NITED Missouri Brokerage
Services, Inc. officially began
business July 1, 1986, as a whollyowned subsidiary of United Mis­
souri Bancshares, Inc., Kansas City,
The subsidiary is a registered'
broker dealer and is a member of the
National Association of Securities
Dealers and the Securities Investor
Protection Corporation. It effects
brokerage transactions for the gen­
eral public, including all United Mis­
souri affiliates and correspondent
“Our customers won’t see much
difference now that we are a subsi­
diary,’’ Sharon J. Johnson, presi­
dent of the subsidiary, said. “We
filed and received registration as a
broker dealer in order to be in com­
pliance with regulations from the Se­
curities and Exchange Commission
and State Commissioners of Securi­
ties. We will continue to offer bro­
kerage services to individuals, cor­
respondent bank and affiliate bank
Federal Reserve Bank of St. Louis

customers at substantially reduced
costs from full-service brokerage
United Missouri Brokerage Ser­
vices, Inc. is registered in the follow­
ing 10 states: Missouri, Kansas, Il­
linois, Tennessee, Kentucky, Iowa,
Nebraska, Oklahoma, Texas and
United Missouri Bank created its
Brokerage Services Department in
1983 as a section of its investment
banking division. The department
offered brokerage services for indivi­
duals who choose to designate their
own stock, option and corporate
bond purchases or sales. United
Missouri Brokerage Services, Inc.
continues to provide brokerage ser­
vices with lower commissions than
those charged by full-service brok­
ers. However, the company does not
provide any investment advice nor
does it conduct any investment re­
search for its customers.
As a department of the bank, the
brokerage services operation con­

ducted more than 18,000 transac­
tions in 1985 for individual and cor- £
porate customers from all United
Missouri affiliates and more than
280 correspondent banks. It aver­
aged $10 million in securities trades
each month last year. During t h e ^
first half of 1986, the division aver­
aged more than 11,000 calls a month
and had more than 13,000 open ac­
counts. The new company, under
current regulatory requirements, 0
hopes to match or exceed the bank’s
level of activity and service.
Ms. Johnson had been with
United Missouri Bank since 1972
when she was elected July 21 as ^
president of the new subsidiary.
Other officers of UMBS are: Chair­
man—Malcolm M. Aslin, president
of United Missouri Bancshares,
Inc., and United Missouri Bank; #
Secretary—David D. Miller, cor­
porate secretary of the holding com­
pany and executive vice president of
the bank; Treasurer—William M.
Teiwes, executive vice president of #
both the holding company and the
bank; Assistant Treasurer—Gary L.
Lasche, senior vice president of both
the holding company and the bank.
Ms. Johnson joined the commer- •




cial bank operations division in
1972, moved to the trust depart­
ment in 1975, then to the invest­
ment banking division in 1984 where
she was responsible for the opera­
tions area of the Brokerage Services

Central National Ins. Co.
^ Of Omaha Has Been Sold
A major investment organization
located in Puerto Rico has agreed to
purchase The Central National In­
surance Company of Omaha and its
0 affiliated companies, according to
Frank J. Barrett, president and
CEO of the Omaha-based insurance
companies. The sale price was not
disclosed by Champion Interna# tional, parent of the CN companies.
The purchasing firm, Professional
Underwriters Investment, Inc., is
headed by Hector L. Gonzalez, who
has a long-time affiliation with Cen# tral National since the company ini­
tiated operations in Puerto Rico in
1968. Mr. Gonzalez’ group of compa­
nies includes a number of diversified
firms in Puerto Rico ranging from
# insurance to container manufactur­

ing to real estate holdings such as
the popular Puerto Rican resort, Rio
Mr. Barrett said the purchaser
stated that current management
will be retained and future plans call
for some of the Professional Under­
writers’ national operations to be
consolidated and m anaged in

Tom King to Represent
Michigan H.C. in Illinois
Daniel R. Smith, chairman and
CEO of First of America Bank Cor­
poration, Kala­
mazoo, Mich.,
announced last
m o n th
th a t
Thomas M. King
has been elected
a vice president
of the company.
Mr. King, 59, re­
cently re tire d
from First Na­
tional Bank of
Chicago where he served as vice
president/head of community bank-

In making the announcement Mr.
Smith said Mr. King will assist in
First of America’s interstate bank­
ing expansion plans. Mr. King will
maintain a First of America Bank
Corporation office which is currently
located in Olympia Fields in Illinois.
Mr. King is a 1949 graduate of the
University of Notre Dame. He spent
ten years as an account executive in
the bank division of NCR Corpora­
tion before joining the LaSalle Na­
tional Bank of Chicago where he
served as an assistant vice president
in the correspondent division for
eight years. He had been with First
National Bank of Chicago for 19
years prior to retirement, where he
served in various managerial capaci­
ties of correspondent banking for 15
years and for four years as head of
the public funds division of the
For ten years Mr. King has served
on the Minority Bank Task Force of
Chicago United, the last year as its
co-chairman. The Minority Bank
Task Force group assists minority
banks with management ideas to en­
sure their success.

Yes, Drovers has money to lend to
correspondent banks. That’s no surprise.
But what may surprise you is just how
m uch Drovers has to lend. As part of the
Cole-Taylor Financial Group, Drovers has
a multi-million dollar lending limit. So if your
bank needs a small overline loan, Drovers can
cover it. And if your bank needs a large loanlet’s say a bank stock carry loan-chances are
good we can cover it, too. But you’ll never
know unless you pick up the phone and ask.
The call is free. Phone 1-800-621-8991. In
Illinois, call 1-800-572-2498. Remember,
you can ask a lot from Drovers.

1 2 / Drovers Bank

of Chicago
47th & Ashland Ave., Chicago, IL 60609 • 1-312-927-7000

Federal Reserve Bank of St. Louis

A Cole-Taylor Bank

When our graduates talk
bankers listen.


W rite o r call fo r y o u r a p p lica tio n
to the 1987 session:
Southwestern G ra d u a te School o f Banking a t
Southern M ethodist University, SMU Box 214,
Dallas, Texas 7 5 2 7 5
(214) 692-2991

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis


• Across The Desk from the Publisher
Dear Readers:
In preparing any kind of brief history of banking for
an individual state, and especially for all the United
States, there is such a wealth of information that it is
difficult to glean all the basic, important facts because
every page, every item exudes a nostalgic significance
that sings out, “Hey, include me!”
So it was with the process of getting ready to pre­
pare the fairly brief assortment of stories we are able to
present in this issue that honors the 100th Anniversary
Convention of the Iowa Bankers Association. This is
the second Association Centennial we’ve had the pleasure of preparing in the past few years. The first was
when the North Dakota and South Dakota Bankers
Associations joined together to celebrate the 100 th
Anniversary of the founding of their joint association
in 1885 when they were still the Dakota Territory.
When the territory was divided in 1889, the bankers in
each of the two new states formed their individual
state associations.
For this September issue honoring the Iowa Bankers Association Centennial Convention we had access

If you have personal recollection of important, or
equally interesting or humorous incidents from those
earlier years, no matter what state your banking exper­
ience is in, we invite you to send us some details that
can be shared with our readers in later issues.
I would be remiss if I did not also give proper credit
to two diligent associate editors, Melinda Sauers and
Diane Nelson, who pored over dusty old volumes for
many hours, frequently interrupting their chores with
a soon familiar refrain, “Wait ’til you read this!” Space
does not permit us to publish all their interesting arti­
cles in this issue, so some of them will be printed in the
October issue, which will give our staff report with ex­
clusive pictures from the Centennial Convention.
We hope these stories will give most of today’s
bankers—those who started after W WII—some in­
sights into those years that helped formulate the bank­
ing business as we know it today; not only here in
Iowa, but in all states, for similar stories and experi­
ences woven together from many states have formed
the fabric of today’s interdependent banking that has
come to serve the public so well.

to a wealth of information available through IBA re­
cords, various historical books from libraries, and espe­
cially our own files at the N o rth w estern B a n k e r . We
_ are especially proud of these in-house files because
9 they remind us that the N o rthw estern B an k er was
founded here in Des Moines 93 years ago to serve
banks in Iowa, Minnesota, Nebraska, North Dakota
and South Dakota initially, and it is thus the oldest
^ financial publication from Chicago to the Pacific
But this particular issue is dedicated to the 100 th
convention of the Iowa Bankers Association and its
Centennial Year of Service which will conclude next
0 July. We acknowledge with deep thanks the generous
cooperation of IBA President Bruce Meriwether and
Executive Vice President Neil Milner and their IBA
staff for all the story leads and assistance given.
We invited a number of senior Iowa bankers who
0 have anywhere from 50 to 75 years of active service to
share with our readers some of their insights into the
events, the legislation, the ups and downs of banking
from as far back as 1911! Those stories relating details
of some of the dark days, the good days and humorous
0 events are a treasure we have decided to share with
you in successive issues starting this month and con­
tinuing through 1987 until they are all published in a
“Vignettes of the P ast” column. We hope you will en­
joy them as much as we did in gathering them and pre0 senting them to you for your reading.

These and similar stories form the heritage for your
banking profession that has helped build America; the
profession through which all of you are serving admir­
ably the needs of this nation, and many foreign coun­
tries, in our own turbulent times of today. So, this re­
counting of a bit of history from a place called Iowa is
intended not only to pay tribute to those who built the
foundations of these past 100 years but also, by re­
counting how they successfully coped with their ad­
verse times and opportunities of growth, to give hope
and encouragement to you who are building further
foundations that will provide a stronger Iowa, a
stronger midwest, a stronger nation for all of our fol­
lowing generations.
We invite you to read these stories and enjoy them,
keeping in mind that someone else 50, 75 or 100 years
from now will walk down the dusty, distant, but excit­
ing pages of our own chapter of history, measuring you
and your times against the entire book of banking, but
from the perspective of a later time we will never ex­
perience. Considering that the God who created all of
us will someday ask for an accounting of our talents,
perhaps an occasion like this Centennial should give
each of us pause to ask, “What am I doing to make my
profession, my little corner of the world better than
how I found it?”





Federal Reserve Bank of St. Louis

Ben Haller, Jr.
Northwestern Banker, September, 1986

W ho’s the ATM network leader?

“We looked at all of them and
chose the Plus System* network.”
“We were introducing a new
debit card that we wanted to
tie into a national ATM
system,” cites William C.
Nelson, executive vice
president of InterFirst Bank
of Dallas.
“It was critical for us to be
able to issue these new cards
to our customers as soon as
possible. The Plus System*
network’s technology and
expertise proved to be what we
needed to meet our objectives.
“Another important factor
in our decision was the inter-
Federal Reserve Bank of St. Louis

national scope of Plus System,
Inc. which is unique among
ATM networks,” reports Mr.
Nelson. “InterFirst customers
like to travel and now with Plus
System'ATMs in England,
Scotland, Wales, Northern
Ireland, Puerto Rico and Japan,
as well as the U.S. and Canada,
they have safe, reliable access
to their funds on a truly world­
wide basis.”
Isn’t it time your financial
institution joined the Plus
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For complete information
regarding membership, please
contact your local Plus
System® member, or call
Plus System, Inc. at
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lu s


The premier choice.


A Century
of Growth!
How the Iowa
Bankers Association
Helped Member Banks
Build Their State
his 50 years as secretary; the third was the relatively
ESEARCHING the history of banking in Iowa,
short span from 1966-72 when banker Art Lindquist
especially for this occasion honoring the 100th An­
returned to the state as IBA secretary, and the fourth
niversary Convention for founding the Iowa Bankers








Association, can run the gamut of emotions. However,
one emotion that seemed to recur as more records were
uncovered was that elusive, haunting feeling of deja
vu. Whenever a page was turned in whatever history
book was at hand, the problems, the grief, the legiti­
mate concerns, the opportunities, the examples of
civic-minded and strong character bankers that were
recorded, all seemed to be experiences of our own
The distrust of banks by many people in the history
of Iowa up until the Civil War was not exactly un­
founded. Bankers in Iowa had an uphill battle from the
beginning of their state in 1846.
It is factual history that, except for the brief period
from 1859-65 when the State Bank of Iowa and its 15
branches brought stability out of earlier financial
chaos, that the real turning point for acceptance of
bankers as valuable, respected citizens of the community came with the founding of the Iowa Bankers Asso­
ciation at the formative convention in Des Moines on
July 26, 1887. Since that founding convention was the
first day of the IBA’s existence, that makes the 1986
convention in September the 100th annual meeting of
the IBA. In that 99-year span occurred a spectacular
period of growth, both for the banking industry and
the State of Iowa, as well as for the nation on several
specific issues.
This brief article will look first at the period of Iowa
banking history up to formation of the IBA in 1887,
and then the following years to the present. In addi­
tion, during the course of IBA’s nearly one century of
service four periods of growth seem evident. The first
was from 1887 to 1916; the second was 1916 to 1966
when Frank Warner compiled a phenomenal record in
Federal Reserve Bank of St. Louis

is the period from 1972 to the present, encompassing
the service of Neil Milner as executive vice president
during which new highs in member service have been

Birth of Iowa Banking
T WAS into this infant, basically unprobed land of
plenty that what was apparently Iowa’s first
came into existence. A historic source* tells us
The Miners’ Bank opened its doors for business in Du­
buque on October 31, 1837. “ Its history was made up
of one investigation after another,” the article states,
“charges, counter charges, and repeated attempts to
repeal the bank’s the Wisconsin Territorial
legislature.” After recounting a continuing series of in­
cidents revolving around Miners’ Bank failure to
redeem notes in specie as required, the article says “on
May 21,1845, an act repealing the charter was adopted
by the Iowa Legislative Assembly, unanimously in the
House and eleven to one in the Senate...For the next
three years the Miners’ Bank dragged out a shadowy
existence, while appeals were presented to the courts...
The last meeting of the board of directors was held on
February 25, 1849.”
Iowa officially gained statehood in 1846, when its
population totaled less than 95,000, and a parade of
banks came on the scene, primarily in the Mississippi
River cities where the centers of early population were
located. Major Hoyt Sherman, writing from Des
Moines on March 1, 1901, prepared an “Early Banking
in Iowa” essay.*
Major Sherman recounts that land agents were the
Northwestern Banker, September, 1986


“The general assem bly shall provide for the organization of all*
other corporations, except with banking privileges, the creation
of which is prohibited.” —Iowa’s first C onstitution-1846.
bankers of the day, buying up $1.25 per acre govern­
ment land and re-selling it to incoming settlers for
$1.75 per acre—“a 40 percent interest”—on one year’s
credit. He said a few of these early land agents “be­
came legitimate bankers by gradual development from
their land business, and thus were the founders of pros­
perous and well-established banks in existence today”
(1901). He said “Emigrants and speculators from the
far eastern states” came to Iowa with “drafts on New
York, Boston or Philadelphia banks” but found that
the land-agents and government land offices would
deal only in gold. Unfazed, those draft holders would
suffer huge discounts to obtain gold to buy Iowa’s
priceless land at $1.25 an acre. The shrewd land
agents, then, would make arrangements to present the
drafts at their origin and have them redeemed at full
price for “an important source of profit.”
Banking Prohibited By Law
In a second lengthy article titled, “The State Bank
of Iowa,” which was written June 1, 1901, Major Sher­
man took great pains to point out the difference be­
tween the scoundrels who called themselves bankers
and the land agents who were, in fact, the legitimate
businessmen forerunners of the bankers as we know
them today. In his inimitable style, Major Sherman
“The statesmen of that day did not look
with kindly interest on the banker. In their
eyes he was an outlaw—a maker of ‘wild-cat’
currency, a usurer, a man who robbed the
settler of his claim to a portion of Uncle
Sam’s domain, a usurper generally. The pio­
neers who formed our first constitution, in­
serted in it a stringent provision. ‘That the
general assembly shall provide for the orga­
nization of all other corporations, except
with banking privileges, the creation of
which is prohibited.’ And also, ‘The general
assembly shall prohibit by law any person or
persons, association, company or corpora­
tion from exercising the privileges of bank­
ing, or creating paper to circulate as money.’
“ In order to give force and effect to those
provisions of the constitution, the general
assembly enacted statutes under the head­
ing of ‘Offenses Against Public Policy,’
which included punishment for sale of lot­
tery tickets, selling liquor to Indians, bring­
ing paupers in the State and transacting any
business without license; that also provided
penalties of one year in the county jail, and a
fine of $ 1,000 , for any company or any per­
son who subscribed to, or became a member
of, or in any way interested in, any associa­
tion or company formed for the purpose of
putting in circulation any bill, check, ticket,
certificate, promissory note or other paper

Banker, September, 1986
Federal Reserve Bank of St. Louis

to circulate as money, etc., etc.; and other
sections were added, in which the words
were repeated, reversed, and others of simiO
lar meaning substituted, in the manner
familiar to all who are acquainted with the
proper legal way of stating things.”
Land Agents Were Bankers
Major Sherman then went on to explain the key role®
that land agents played in settling the state and treat­
ing new residents with honesty in his dealings. “This
description of these early land agents is given here at
some length,” he stated, “because they are at the v e ry ^
beginning and foundation of the banking profession in ®
this State today” (1901).
It was into this confusing mixture of transient note
bandits who called themselves bankers, and the land
agents who were, in fact, fledgling bankers, that th e ^
State Bank of Iowa and its branch offices developed.
Major Sherman recounts that the new Constitution of
Iowa was framed by a convention and went into effect
by proclamation of the Governor on September 3 ,
1857. That new constitution “provided, among other ^
things, that the legislature might create corporations
with banking powers.”
State Bank of Iowa Formed
The framework for the State Bank of Iowa was
fashioned after those of Ohio and Indiana. It autho- #
rized up to 30 branches, no more than one to a town,
and those towns had to be of 500 population or more.
When the initial commission of 10 determined that
“the stockholders, directors and officers were men of
responsibility and integrity,” they so certified to the •
Governor. The Governor then appointed three direc­
tors for the State and each branch appointed one direc­
tor to the controlling board of directors. Each branch
was required to assume responsibility for meeting the
obligations of the other banks.
Initially, branches were authorized in these eight
towns and each was called “Branch of” followed by the
name of the town-Muscatine, Iowa City, Des Moines,
Dubuque, Oskaloosa, Mount Pleasant, Keokuk and the
last called Merchants Branch of Davenport. They com- ®
menced business January, 1859. Seven other branch
offices were admitted as follows: Lyons City (2/17/59),
Burlington (3/18/59), W ashington (3/18/59), Ft.
Madison (8/11/59), McGregor (2/15/60), Council Bluffs
(11/60) and Maquoketa (2/10/64).
The State Bank of Iowa, headquartered in Iowa City
with the Governor, had no ownership of the branches.
Its authority encompassed the initial responsibility for
the printing and issuance of notes, which were backed
with substantial amounts of specie, and continuing ®
reports on a monthly and other basis that it required of
each branch, as well as examinations conducted by the
president of the State Bank of Iowa.
The State Bank of Iowa was dissolved January 2 , _
1865, because it had served its purpose. It brought ^


stability, integrity and confidence out of chaos to
Iowa’s early economy, thus allowing those who owned
and operated the branches to convert easily into the
new national banking system authorized by the Na­
tional Banking Act of 1863, or into state supervised
banks. The ensuing confidence between banker and
customer can be attributed in great part to the profes­
sional, statesmanlike way those officers and directors
conducted the affairs of the 15 branches. On only one
occasion, when “the Muscatine branch had made un­
safe investments, and weakened its standing financial­
ly,’’ were the other branches called in to shore up an ail­
ing branch. A reorganization of ownership and officers
followed “without the loss of a cent to its customers
and note holders of suspension of its regular business.”
One of the major accomplishments of the State
Bank of Iowa was its successful financing of Iowa’s
military forces in the Civil War and its assistance to
the United States Treasury in the purchase of and mar­
keting of U.S. Obligations to finance the war.
National Banking Act’s Impact
The other major factor that brought stability to the
banking scene in Iowa and the nation was the National
Banking Act of 1863, mentioned above. It did not pre­
clude the continuance of or the organization of new
private and state banks, but it set a standard for bank
conduct and operations, along with a nationwide cur­
rency that became accepted.

Birth of Iowa
Bankers A sso c.
WAS in this climate of growth that the Iowa
Association was conceived. G.L. Tremain,
president of the Peoples State Bank in Humboldt,
which he founded and opened December 23, 1881 with
capital of $25,000, wrote this account of the IBA’s
founding for the May, 1913 issue of the N orth w est ­
ern B a n k e r on pages 34 and 35 :
“I attended a meeting at Chicago of the American
Bankers Association. I there met Gov. Samuel Merrill
and R.E. Graves. The A.B.A. had urged state organi­
zations and the Governor and Graves had been autho­
rized to organize an Iowa Bankers Association...It was
understood I was to be a clerk, take up the details,
while Gov. Merrill and R.E. Graves would be the main
spokes in the wheel. I went at it by postal card to every
bank in Iowa and the response was general and
At the first meeting, which apparently was held in
Des Moines at the Grant Club, 516 Walnut Street,
where Valley National Bank now stands, Mr. Tremain
was elected the first president of the new Iowa Bank­
ers Association. Mr. Tremain was highly respected in
Iowa banking circles for many years for he continued
his interest in building the IBA. He was accorded
special recognition at the 1917 convention on the occa­
sion of the 30th anniversary of the association’s found­
ing and Mr. Tremain died the following year.
A History of the Iowa Bankers Association, written
by Howard E. Bell in June, 1950, for his M.A. degree
from the University of Iowa that year, states in his
Federal Reserve Bank of St. Louis

opening paragraph that Texas was the first state to
organize, in 1885, a state bankers association. N orth ­
w ester n B an k er records show that honor belongs to
the Dakota Bankers Association, which organized in
’84-’85 and the two states became separate associa­
tions in 1889 ûpon achieving statehood. They held a
joint 100th convention in 1984. Kansas was third in
February, 1887, according to this source, followed by
Early Progress Slow
Early progress for the IBA was slow—in fact, the
presidents didn’t even show up for the conventions in
1890-91 or ’92!!! Much has been written in textbooks
about the panic of 1893; however, out of some 1,000
banks in Iowa at that time, only four actually failed,
several temporarily suspended business but resumed
later. Banking gained in public confidence by weather­
ing the Panic of ’93 in such good shape.
Mr. Bell reports that the convention of 1898 noted a
continuing matter of non-bank intervention in the
banking business; i.e., the government and express
companies issuing money orders which they expected
banks to cash for customers. IBA achieved its objec­
tive when it got ABA help that pushed the express
companies out of the banking business in 1897.
IBA Establishes Groups
One achievement of lasting importance from this era
was the formation of groups within the IBA structure,
the same as the Missouri and Illinois Bankers Associa­
tion did earlier. After a year of discussion, during
which the argument was rejected that groups would
destroy the need for an IBA, it was voted in 1897 to
have nine groups, with the chairman of each group
serving on the Council of Administration as an execu­
tive council of IBA. This format continues today, near­
ly 90 years later. The numbers of IBA groups fluctu­
ated several times, then in 1905 was set at 11. That
number continued until 1942 when the groups were re­
duced to 10, the number existing today. An interesting
footnote to the history of IBA groups is that after they
were formed, attendance at the state convention went
up, reaching 1,192 by 1910.
Deposit Guaranty Insurance
Another subject of continuing, heated discussion
that lasted for three decades was the insurance of bank
deposits against failure of a bank. It was brought up at
the 1906-07-08 conventions and was discussed by the
1909 state legislature, all without avail. Emerson DePuy, then publisher of the N o rth w estern B a n k e r ,
wrote in the June, 1905 edition of the magazine that
“some day a practical plan along this line will be
worked out to the greater betterment and safety of the
banking business.” The debate continued for many
years, while such deposit guaranty funds were created
in several states, but all went broke eventually because
they insured all deposits.
Later, Clifford DePuy succeeded his father in 1912
as publisher after the senior DePuy died suddenly fol­
lowing surgery. Clifford DePuy continued the fight
against deposit guaranty insurance because it had no
limit, and also because he felt that wide open deposit
insurance encouraged loose banking practices when a
banker knew an insurance entity would bail out his de­
positors. In 1933-34, when the FDIC was born in the
Northwestern Banker, September, 1986


“At the 1910 convention, as a result
of the ensuing voting, Mr. R.W. Hall
of Sheldon was elected secretary.
His salary was the magnificent sum
of $2,400 (yearly).“
early days of the Roosevelt Administration, Clifford
DePuy editorially backed the concept of FDIC when
its initial insurance coverage was proposed to protect
up to $2,500 of a depositor’s money.
Full-Time Secretary Needed
The 1909 convention also took up the matter of a
full-time association secretary, a topic that had sur­
faced almost yearly since 1891. J.M. Dinwiddie, a
Cedar Rapids bank officer, became IBA secretary in
1889, holding that position for 22 years concurrently
with his bank duties until 1910. At the 1898 conven­
tion President Hannan suggested a full-time secretary
be hired when the membership would justify. The IBA
had reached the 1,000 mark of membership in 1905,
making it the largest state association in the nation,
yet much foot-dragging took place about employing a
full-time secretary.
It was recommended strongly at the 1909 conven­
tion but met with opposition and defeat of the motion.
However, after thorough reports were submitted to the
1910 convention that associations in “ Illinois, Mis­
souri, Wisconsin and Minnesota all had shown re­
newed growth and vigor as a result of the appointment
of a full-time secretary, the (1910) convention accepted
the committee’s recommendation and as a result of the
ensuing voting, Mr. P.W. Hall of Sheldon was
elected.’’ His salary was the magnificent sum of
$2,400. Des Moines was selected as headquarters and
an office secured in the Fleming Building. In 1921 the
office was moved to the Observatory Building, then in
1924 it was moved to the Liberty Building, where it
has remained to this day for 62 years.
Mr. Hall is reported to have done “splendid work” in
the six years he was on the job but he resigned shortly
after the 1916 convention. Little else is known or said
in various records about Mr. Hall, although his name
surfaced with regularity in N o rth w estern B ank er
news stories in connection with association matters.
Two Iowa Families Served ABA
One 1913 story that took this writer by surprise was
the fact that Iowa has had two family combinations
serve as presidents of the American Bankers Associa­
tion. We were well aware that W. Harold Brenton,
president of Brenton Brothers, Inc., followed his ser­
vice as IBA president in 1946-47 by later becoming
president of the American Bankers Association for
1952-53. Then, just 30 years later, his son C. Robert
Brenton, president of Brenton Banks, Inc., Des
Moines, followed his father as IBA president for
1976-77 and ABA president for 1983-84. It was written
at that time to be the first and only such family shar­
ing of ABA’s top job.
It was with great surprise, then, that we read in the
October, 1913 N o rthw estern B a n k er on page 22,
“Charles H. H uttig of St. Louis, president of the ABA,

Banker, September, 1986
Federal Reserve Bank of St. Louis

died last July. The honor of presiding at the Boston
convention will come to First Vice President Arthur
Reynolds, president of the Des Moines National
Bank.” The following issue in November reported that
the 4,217 delegates to the ABA convention in Boston
elected Mr. Reynolds of Des Moines as president. It
was recorded that Arthur Reynolds’ brother George M.
Reynolds, president of the Continental National Bank
of Chicago, had served as ABA president in 1908-09.
Iowa had 344 ABA members that year, sixth largest
number in the nation.
Birth of Federal Reserve System
By far the biggest story of that day was the fierce
struggle that was culminated by creation of the Fed­
eral Reserve System. Federal Act S 2639 and H.R.
6454 were introduced June 26, 1913 to create a central
bank through which all currency would be issued and
which would control the nation’s monetary affairs. An
extensive article reviewing the proposal was printed on
pages 7-9 and 23-25 in the August, 1913 N orth w est ­
ern B a n k er and authored by the noted James B. Forgan, president of the First National Bank of Chicago.
He sharply criticized two points. First, the seven-man
board consisted of four appointees by the President
and only one had to have a banking background. The
other three appointees to the seven-man board were
the Secretary of the Treasury, Comptroller of the Cur­
rency and Secretary of Agriculture, also Presidential
appointees. All seven were to serve at the pleasure of
the president and could be removed at any time, de­
spite the eight-year appointments. Second, the low
$10,000 salary for directors, with no extra remunera­
tion for the one appointed chairman, was a disgrace,
Mr. Forgan said.








“Changes were made in the bill and
the Federal Reserve System came into
being. Those later changes finally
gained endorsement for the Fed from
the IBA in 1918.“
Mr. Forgan decried such mixture of politics in such
an important matter to the welfare of the nation, add­
ing that the salaries offered would not attract people of
quality. He also urged that banks needed representation since their money and that of their stockholders
was being used to create the Fed.
At the 1913 ABA convention, N orthw estern
B an k er reported 2,000 country bankers voted in pro­
test against the Glass-Owens Currency Bill, as it was
called. George M. Reynolds, president of Continental
& Commercial National Bank of Chicago, wrote similar
articles and made similar addresses to Mr. Forgan’s,
one being at the Minnesota Bankers Association con­
vention, as reported in that issue.
Apparently, satisfactory changes were made in the
bill and the Federal Reserve System came into being
and has operated, with later changes, with distinction
to this day. Those later changes finally gained endorse­
ment for the Fed from the IBA in 1918.





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Frank Warner
Era Begins
ITH the Federal Reserve System fight resolved,
and WWI underway in Europe, the Iowa Bankers
Association quickly filled the vacancy of IBA secre­
tary with a young man from Waterloo named Frank
Warner. Mr. Warner had graduated from the State
University of Iowa at Iowa City in 1912, had taught
school for one and one-half years, then joined the staff
of the Leavitt and Johnson National Bank and Farm­
ers Loan and Trust Company of Waterloo. Although
they didn’t know it at the time, IBA members of 1916
were setting in motion a.phenomenal record of 50 years
of achievement for association service, a record of ac­
complishments that remains unmatched in banking
A quiet, diligent, relentless and totally dedicated
worker on behalf of the association, Frank Warner ini­
tiated one program after another for the benefit of the
people of Iowa and member banks. His unquestioned
integrity with State of Iowa officials and legislators
was gained by their knowledge that Frank Warner
never offered any proposal or bill that was adverse to
the public interest. Thus, when he sat down quietly
with legislators and governors, they listed respectfully
and attentively.
Early on, Frank Warner perceived the value of
IBA’s groups and their annual meetings. The year fol­
lowing his employment, he began a classic tradition of
the Group Train Special that was used yearly from
1917 until auto travel forced its discontuance in 1946.
Frank was well aware of earlier headaches among some
groups that scheduling of group meetings without re­
gard for dates selected by other groups was causing
problems, especially for association personnel and city
correspondent bankers who were trying to cover each
meeting. A system was worked out at an early date for
Groups 1 and 11 to meet in Sioux City and Burlington
respectively on Lincoln’s birthday February 12 and
Washington’s birthday February 22 . The other eight
groups met in the first full week and third week of
Vigilantes Formed By Counties
Frank worked tirelessly in WWI helping bankers
get organized in every part of the state to assist in the
marketing of U.S. bonds to support the war effort
against Germany. That successful experience led to
formation of county bankers associations in practi­
cally all of the state’s 99 counties. Their value as a
unified group in selling war bonds was pressed into ser­
vice within two years when Vigilance Committees were
formed by the IBA to combat increasing bank robber­
ies, within the state. The Vigilantes are described in
more detail in a separate article.
The N o rthw estern B an k er reported in 1923 that
this campaign stacked up results that grabbed the at­
tention of the entire United States. While other states
Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

continued to be harassed by bank robbers, the Vigilan­
tes, and tough anti-bank robber legislation Mr. Warner persuaded the legislature to adopt, brought robberies in Iowa to a screeching halt. Robbers knew they not
only faced a cordon of 3,000 armed police, bank offi­
cials and deputized citizens, but they were well aware
that if they got caught in Iowa they faced mandatory
life imprisonment for even attempting such a robbery.
As a result, while banks in other states faced rising
bond costs, Iowa banks received a 14% drop in theirs.
Taking note of this, surety company and government
officials took steps to have the Iowa plan emulated
IBA Founds Radio Network
As a follow-up this this, Frank Warner recognized
radio in its infancy as an ideal business communication
medium. He had a radio system installed in IBA head­
quarters. When a robbery did occur, details were
phoned by the robbed bank immediately to Frank’s of­
fice. He would radio police units all around the area of
the holdup so that dragnets were instantly formed to
catch escaping robbers. That radio alarm system was
so successful in its communications principle that it
was given by IBA to the State of Iowa in 1937 to
become the basis for the statewide network for the
Iowa Highway Patrol. Incidentally, only one Vigilante
was killed in all this lengthy program, and his family
was the recipient of a remuneration program Frank
Warner had earlier set up in anticipation of such an oc­
In 1938 it was suggested the Vigilantes be dis­
banded, for their work was accomplished. A few hung
on to them in a nostalgic sense, the most notable being
the Scott County Bankers Association which enter­
tained visiting bankers for years at its famed Vigilan­
tes Shoot, a yearly contest for marksmen.
Educational Programs Advance
While Vigilantes were doing their duty, Frank was
busy building a new program that would serve the
IBA exceedingly well in the years to come. As banking
advanced in its service to the public, to industry and to
nations, he and member bankers perceived that along
with the increasing number of young people attending
schools of business at the universities, there was a
need for two things—education for entry level bank
employes, and continuing education for bankers as
they progressed through their banks.
He strongly supported at all times the efforts of the
American Institute of Banking. In addition, he estab­
lished a Bankers’ Short Course at the University of
Iowa, forerunner of today’s Bank Management twoyear course at the same university.
A number of association-sponsored educational
seminars were conducted. One result was estab­
lishment of a Trust Conference in 1929.
During all of this period of the ’20s, the IBA concerned itself in establishing blue sky laws that cli­
maxed in 1927 when a law was enacted providing cri­
minal penalties for those who mislead Iowa citizens in
the description and sale of securities considered blue
law. Legitimate securities firms backed the IBA proposai.
History-Making Legislation
In his reports to members, Frank Warner considered
the decade from 1919 to 1929 as history-making for the










From the 1948 N orthwestern Banker:

Something to Think About...
1923, a very important meeting was held at the
I NEdgewater
Beach Hotel in Chicago. Attending this

meeting were nine of the world’s most successful finan­
ciers. Those present were:
The president of the largest independent steel company
The president of the largest utility company
The president of the largest gas company
The greatest wheat speculator
The president of the New York Stock Exchange
A member of the President’s Cabinet
The greatest bear in Wall Street
Head of the world’s greatest monopoly
President of the Bank of International Settlement
Certainly, we must admit that here were gathered a
group of the world’s most successful men. At least,
men who had found the secret of making money.
Twenty-five years later, let’s see where these men are:
The president of the largest independent steel com­
pany, Charles Schwab — died a bankrupt man and
lived on borrowed money for five years before his
The president of the largest utility company, Samuel
Insul —died a fugitive from justice and penniless in a
foreign land.
The president of the largest gas company, Howard
Hopson —is now insane.
The greatest wheat speculator, Arthur Cutten —
died abroad insolvent.
The president of the New York Stock Exchange,
Richard Whitney — was recently released from Sing
Sing Penitentiary.
The member of the President’s cabinet, Albert Fall
—was pardoned from prison so he could die at home.
The greatest bear in Wall Street, Jess Livermore —
died a suicide.
The head of the greatest monopoly, Ivar Kreuger —
died a suicide.
The president of the Bank of International Settle­
ment, Leon Frazer —died a suicide.
All of these men learned the art of making money,
but not one of them learned how to live.
association in that a total recodification of Iowa bank­
ing law was laid out carefully, piece by piece, for the
legislators of those days and they agreed to update
Iowa banking law to make it as current with the times
as possible. IB A history likens the 1929 legislative
achievements to the McFadden Act at the national
level, which was passed in 1927. A well-organized coun­
ty representative system assisted the IBA legislative
committee in keeping every Iowa legislator posted on
how bankers regarded each step of the bill. With this
unified support statewide, the recodification was final­
ly completed and became law April 17, 1929.
That legislation enabled the banking department to
function more efficiently by granting more examiners,
set a minimum of $25,000 capital for a bank charter,
gave the superintendent the authority to require a fi­
nancial statement for all loans of $500 or more, re­
quired monthly meetings of boards of directors, and re­
quired bank officers and employees to be bonded. Its
impact on the public by assuring more responsible
banking and more responsible supervision by the bank­
ing department, helped to further solidify legislative
Federal Reserve Bank of St. Louis

confidence in IBA integrity, an accolade that was to be
a key to another bank legislation crisis two years later.
Earlier, the IBA had convinced the state legislature
to enact a new law in 1923 that created a receivership
division within the department of banking. Prior to
1923, the courts appointed a receiver when a bank
failed, and that had been proven costly. The depart­
ment receivership division served admirably in the fol­
lowing years as numerous Iowa banks failed in the ag
depression of 1921 and ensuing years, as well as those
that failed immediately following the Stock Market
Crash of November, 1929. Within a short time in the
early part of 1930-31, 2,427 banks failed nationwide.
Iowa had 2,400 banks at one time and in the 16-year
period starting with January, 1919, the state lost
1,400 banks.
With diminishing returns on capital in the 1920s
and early ’30s, the IBA through Frank Warner per­
ceived a need “to ascertain the weaknesses in the
profit and loss structure of the banks’’ and thus “it
became the pioneer state association to undertake the
analysis of the earnings and expenses of its members.
This accomplishment was of immeasurable value to
each bank in that it could compare each item of its
earnings and expenses with that of other banks of com­
parable size in the state.” This procedure was soon
copied nationwide.
IBA Saves Banks with S.F. I l l
These statistics aided greatly in a leadership role the
Iowa Bankers Association next assumed in 1933. The
continuing bank closings created an acute problem
that demanded immediate diagnosis and surgery, for
“losses to Iowa bank depositors and stockholders alike
were great.” It was in this time of hysteria that the
IBA came forth with a “bank stabilization” bill that
had two objectives: to make banks “run proof” and to
avoid receiverships. Senior bankers who are still active
generally credit Frank Warner with conceiving and
carrying through with the legislature this “bank stabi­
lization” bill that became known as S.F. 111.
While the Senate was considering the bill on
January 20, 1933, shortly after it had been introduced,
time became of the essence for word reached the Se­
nate that more than 30 Iowa banks closed their doors
the day before on the 19th, and while they were deli­
berating that day of the 20 th “nearly a dozen had been
suspended.” After a few amendments, S.F. I l l passed
the Senate at 11:45 a.m., then went immediately to the
House, which passed it at 4:00 p.m., January 20, 1933.
It was published in Ottumwa and Des Moines news­
papers the following day. A special messenger who
took the Act to Ottumwa waited there until the paper
came off the press, grabbed the first copy and sped
back to Des Moines with the certified copy for the Sec­
retary of State, making the bill operative January 23,
S.F. I l l provided that if the banking superinten­
dent should determine a bank is in an unsafe condition,
or its directors asked the superintendent to step in, then
the superintendent could assume management of the
bank for one year with full power to continue the bank
with whatever changes were needed, liquidate it or re­
organize it. Half the bad, slow pay or otherwise nonac­
cruing loans were removed from the bank’s official re­
gister and held by the banking department. To balance
Northwestern Banker, September, 1986


“The lesson of the entire exercise
(S.F. I l l ) was clear. The 1BA had
acted in the interest of the customer
first, the banker second.”

this, depositors were allowed access to only half their
deposits, the rest being held by the superintendent in a
separate account at the bank. As the bad loan portfolio
was gradually paid off, that money was returned to the
bank, which issued dividend checks to depositors, thus
restoring their withheld deposits by that amount.
“Warehousing” Proves Successful
The records show that in practially all instances,
this “warehousing” of loans proved that farm and
other loans were not bad but only that the borrower
needed time to pull through the depressed economy,
for 97 % of all these loans were paid off, mostly within
five to seven years! In effect, then, the IBA and S.F.
I l l had bought time for borrowers and depositors alike
so they would not lose all their funds as they would if
the bank had gone under as thousands did in the stock
market. In the end, Iowa bank depositors at S.F. I l l
banks, recovered 97% of their deposits, as well as
losing whatever interest they might otherwise have
gained on the funds. This was considered phenomenal
at the time and established statewide the reputation
for Iowa banks that they were after all the safest place
to have money. Bank depositors had funds, while
neighbors victimized by the stock market and earlier
bank failures had nothing.
The fallout from this swift, decisive IBA action was
stunning. It was immediately picked up by other state
legislatures and Mr. Bell’s interview with Frank War­
ner in 1950 states that S.F. I l l of Iowa “quite definite­
ly sowed the seed for the enactment of a law with like
principle by the Congress of the United States, ap­
proved by President on March 3,1933.” That was when
President Franklin D. Roosevelt declared the Bank
Holiday, during which time examiners certified those
banks capable of re-opening immediately, while others
were allowed to re-open with controls similar to S.F.
111. Many banks were forced to merge and never re­
The lesson of the entire exercise during a trying time
in the nation’s history was clear, however, and it was
that the IBA acted in the interest of the customer first,
the banker second. That credibility of IBA and Frank
Warner persuaded the Iowa legislature early in the
1930s to pass what became known as Iowa’s “bank of­
fice” law. Because 1,400 banks failed in Iowa between
1919 and early 1930s, many towns were left without
banking services. Frank Warner and IBA bankers felt
these people not only needed some type of banking ser­
vice, but bankers needed to be able to expand to the
customers. The “office” law was the compromise with
the long-standing principle of independent banking
adopted by IBA. It permitted a bank to open an office
in a non-banked community, but close it if a charter
should later be issued there. At a later date, IBA got
Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

the law amended giving the bank operating the office
first right of refusal for a charter.
Iowa banking department records (AnnualReport to
Governor, 1985, pg. 10) show that the 620 state-char­
tered banks on June 30, 1933, included 288 S.F. I l l
banks, indicating 46.5% of state banks were under
that protection. On June 30, 1934, the report shows
487 state banks, not including S.F. I l l banks, and a
year later in 1935 it shows 535 state-chartered banks,
so apparently 85 banks in the two-year interim were
either liquidated or were merged with other banks, a
small number compared to the 288 who might have
gone under without S.F. I l l assistance.
Membership Services Expand
The Iowa Bankers Association continued to expand
its member services and legislative activities. A year
after its success with S.F. I l l , the IBA showed the
public it was sincere about policing its own activities
in an effort to provide first-class banking service to all
Iowans. It adopted at the annual convention on June
27,1934, “a voluntary banking code of ‘fair trade prac­
tices’ for Iowa banks.” These “rules and ethics consti­
tuted a Code of ‘Fair Competition among Iowa
banks.,’ ” based on months of research.
Other IBA innovations and successes followed:
• In 1938 IBA sponsored the first annual meeting of
Iowa bank auditors and comptrollers.
• In 1938 the Iowa Junior Officers group appeared
at the convention for the first time.
• In 1940, IBA met in the fall for the first time to
avoid early summer heat, selecting September 8 .
• In 1943, IBA established its Income Tax Schools.
• In 1944, IBA organized county banker associa­
tions statewide as War Bond sales outlets.
• In 1944 IBA initiated life, accident and health in­
surance for bank employees, and it became effective
• In June, 1946, IBA began its now highly success­
ful Ag Credit School at Iowa State University, Ames.
• In 1946, IBA’s public relations committee insti­
tuted a statewide “spot” radio advertising campaign,
keyed to the slogan, “See Your Local Banker.”
• In 1946, IBA began exploring a pension plan for
bank employees, later adopted.
• In 1948, Harry W. Schaller, then president and
now chairman of Citizens First National Bank, Storm
Lake, was elected IBA president. His father, George J.
Schaller, had been IBA president in 1927-28 and was
later elected Governor of the Federal Reserve Bank of
Chicago, which his son, Harry, later served as a direc­
tor. They became the first father-son combination to
serve as IBA presidents. The only other one was W.
Harold Brenton in 1946-47 and his son, C. Robert
Brenton in 1976-77.
• In 1955, IBA was successful in establishing the
first parking lot office law.
Another of Frank Warner’s achievements was the
part he played in establishing what is considered to be
the mother of today’s regional banking schools. He
was president of the Central States Conference (made
up of executive officers of 16 north central state
banker associations) when the idea was worked out for
the Central States Conference to sponsor a School of
Banking at the University of Wisconsin, known today
as the Graduate School of Banking at the University of
Wisconsin. In the month of his retirement Frank was


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presented a special testimonial at Madison by the
Graduate School. All of the first bulletins on the
School were prepared and mailed by the Iowa Bankers
Association under Frank Warner’s direction.
The End of an Era
The end of a 50-year era with Frank Warner at the
helm as secretary of the Iowa Bankers Association
came with his voluntary resignation effective August
31,1966, or until a successor could be named. Since the
1966 convention was already planned and ready to go,
Frank Warner agreed to serve through the end of the
convention and he officially turned over the reins of his
office on October 19, 1966.
The 1966 convention was not without emotion for all
who had known, respected and admired Frank Warner
for the exemplary work he did on behalf of IB A and the
people of Iowa. This writer’s account of that conven­
tion, as reported in the November N o rthw estern
B a n k e r , attempted to capture the feeling of that fine
meeting. Retiring IBA President Ed Spetman, Jr., de­
clared October 19, the final day as “Frank Warner
Day” and the honors began pouring in.
J.F. “Rusty” Kennedy, former IBA president and
chairman of the special program committee and presi­
dent of First National Bank, New Hampton, stated,
“Frank is the essence of courtesy and old-fashioned
courtlines, but I would warn any who would attack the
Iowa Bankers Association that his glove contains an
iron fist...He is personally responsible for the Iowa
Bankers Association’s high standing in our own state
and in the nation. He would always stand up for the
small bank when it was in the right.”
After several other presentations, Frank was great­
ly moved when the president of the Iowa Bar Associa­
tion presented Frank Warner with a framed, honorary
membership in the Iowa Bar Association.
“Mr. Iowa Banker”
Ten years earlier, he had been honored by IBA mem­
bers at their 70th annual convention as “Mr. Iowa
Banker,” and they presented him a large bronze por­
trait plaque designed by Gilroy Roberts, chief en­
graver for the Philadelphia Mint. The handsome bas
relief plaque continues to be displayed in IBA offices
in a place of honor. In addition, the beautiful roll-top
desk Frank used throughout his 50 years at IBA,
which had been purchased several years before his
1916 arrival, occupies a corner of honor in the IBA
board room today. It was at that desk where this
writer had the first of many personal interviews and
visits with Frank Warner. In the 21 years of our ac­
quaintance he was always most gracious, never ruffled
by events of the day, and a man dedicated to detail so
that no one would have to backtrack later to find out
what was meant or needed yet to be done with any
matter at hand. His thoroughness was a trademark.
Frank Warner, in his typical humble way, withdrew
from the IBA scene as soon as he retired at the age of
78 so he would not interfere in any way with his succes­
sor. He lived in near seclusion at his long-time Des
Moines home and another home in Sun City, Ariz.,
until his quiet death on May 11, 1982, at the age of 94
in his Des Moines home. He is survived by his widow,
Dora Springer Warner, who was his secretary at IBA
for 40 years and retired when Frank did. She continues
to make her home in Sun City. Dora recently forNorthwestern
Banker, September, 1986
Federal Reserve Bank of St. Louis

warded to the IBA office some memorabilia of past
Iowa conventions for display this month at the Centen- 0
niai Convention. In addition, she has been invited by
IBA to be an honored guest at this convention.

IBA Hires
Art Lindquist

T THE conclusion of the 1966 convention on OctoA
ber 19, the IBA executive council elected Arthur •
E. Lindquist, Jr., as secretary. Art was a long-time
friend of Frank Warner and had worked on various
IBA committees, so he was familiar with the task at
hand. Art was a native of Gowrie, la., where he was
born October 29, 1911. After graduating from the University of Iowa in 1933 with a B.S. in Commerce
degree he went to work for the First National Bank
(now First State Bank), which was founded in 1883 by
his grandfather. A rt’s father, A.E. Lindquist, Sr., and
his father’s brother, Frank, worked in the bank for
more than 50 years.
Art joined the farm loan division of Metropolitan
Life Insurance Co. in Ft. Dodge in 1935, resigning in
1939 to join the Ft. Dodge National Bank. For three
years during WWII he was with the FBI, returning to
the Gowrie bank in 1945. In 1950 he went with the cor­
respondent bank division of Merchants National Bank
in Cedar Rapids, where he remained until the end of
1963, when he joined a Chicago bank. He moved back
to Iowa to accept the IBA secretary position.
He knew he was following a tough act, but with his
knowledge of Iowa bankers and the banking scene in
the state, he took up his duties promptly.
Speaking of that transition period, current IBA Executive Vice President Neil Milner told us recently,
“The heritage that Frank brought was recognition by
bankers that an awful lot of projects could be accom­
plished better through the association than as indivi­
dual banks. Because he did the job so exceedingly well,
many members figured it was best to ‘let Frank do it. ’
Art got involved with the membership in a discussion
of the issues, which required more personal involve­
ment by bankers.
“Those two approaches became the cornerstone for
the past 14 years of growth during which membership
services have expanded to serve member needs that
could be provided better—more economically and effi­
ciently—than by members alone. We were able to do
this in Iowa because of the good work by Frank and
Art, whereas many associations didn’t have this foun­
dation and sense of participation with their state
association that Iowa enjoyed.”
N o rth w estern B a n k er volumes for the six years
from 1966-72 show that Iowa banking underwent a
continuing period of expansion of physical facilities as
more and more banks constructed new buildings, re­
modeled and expanded old ones, and built additional
drive-up facilities as the changing laws permitted.
At the conclusion of his fairly short tenure as IBA












Tom Webster, Vice P resid en t Facilities M an ag em en t C om m ercial Feder­
al S avings & Loan, sp e a k in g from th e newly c o m p leted b ran ch in Lin­
coln, N ebraska.

"O ne S o u r c e R e lia b ility "
"With over a half billion d o llars in
p ro p erty an d an ag g ressiv e b u ild in g /
e x p a n sio n p ro g ram , I know th e h e a d ­
a c h e s of g e ttin g new facilities b u ilt on
tim e, on b u d g e t - w ith o u t h itc h e s an d
glitches," says Tom W ebster.
T h ey C an P ric e As T h ey D e sig n

"As N ebraska's le ad in g Savings
Loan, we have been u p d a tin g m an y of
o u r facilities, a d d in g fre e -sta n d in g
ATM buildings, a s well as d e sig n in g
a n d b u ild in g new b ra n c h facilities. I
b ecam e a c q u a in te d w ith th e p eo p le a t
H eritage In d u strie s w hen I h ad th e m
build so m e ATM K iosks for an e x is t­
in g site in O m aha, NE. I w as im ­
p ressed w ith th e ir d e sig n a n d c o n ­
s tru c tio n know ledge, so I knew they
were th e peo p le to work on a new fa­
cility in Lincoln, NE. In February we
pro cu red w h at w as a d ifficu lt site to
w ork w ith - th e ir s ta ff a rc h ite c t an d
d e sig n e rs b eg a n prelim in ary d e sig n s
th a t h ad to com ply w ith city o rdi­
n an ces. By w orking w ith a firm th a t
ca n price as they d esig n , we could
ch o o se a p lan to fit o u r site, m a in ta in
o u r im ag e c o n tin u ity a n d still fit o u r

c h a n g e s. They did all th e site work in ­
c lu d in g th e la n d s c a p in g a n d m a tc h e d
sp ecial b u ild in g m a te ria ls to o u r im ­
a g e sta n d a rd s. H aving th e m build it
w as a lm o st a p le a su re - 1 call it One
S ource Reliability."
L e s s T h an T h re e M o n th s

"S ta rt to finish - less th a n th re e
m o n th s of c o n stru c tio n h a s to be
so m e kind of record!" says Tom Web­
ster. "T heir se c re t - factory b u ilt m odulars! O ur 1800 sq u a re foot b ra n c h in
Lincoln w as b u ilt in th re e m od u les,
th e 14' x 3 6 ' can o p y an d th e 5' x 10'
Isla n d e r ATM in two m ore. All five
m o d u le s were s e t on th e fo u n d atio n
w ith a c ra n e in o n e day - c o m p lete
w ith S an sp ray S to n e Siding, 20 year
ru b b e r roof, w indows, d o o rs a n d all
ele c tric a l a n d p lu m b in g . Even th e
can o p y a n d sig n lig h ts were wired a t

th e factory. The telle r s ta tio n s, light
fixtures, ceilings, o ak cab in etry, oak
d o o rs an d trim a n d drywall w ork w as
b u ilt an d fin ish ed a t th e factory b e­
fore shipping."
"H eritag e In d u strie s h a s b u ilt over
1000 b u ild in g s in th e p a s t n ine years,
so I g u e ss you c an e x p e c t th e m to be
real p ro fessio n als. 1 did, a n d they d e ­
livered q u ality an d reliability a t a very
c o m p etitiv e c o st. They c an h an d le
yo u r b u ild in g n e e d s - j u s t m ak e one
call!" a d d s W ebster.
N ob od y D o es It B e tte r

H eritage In d u strie s h a s th e c o m p lete
d e sig n service, b u ild in g p ro fessio n als
a n d p ro m p t delivery to m ak e your
n e x t c o n stru c tio n jo b ru n sm oothly.
We re th e h igh p erfo rm a n c e b u ild er
you n eed . O ur m o d u la r b u ild in g sy s­
tem m e a n s we c an build w herever you
are! It's a b e tte r way to build.

Name: _
Firm: __

O ne S o u rc e R e lia b ility

"E lim in atin g c o o rd in a tio n p ro b lem s
h a s to save everyone!" c o n tin u e d Web­
ster. "H eritage In d u strie s h a n d le d th e
b u ild in g p e rm it an d so m e zoning

A ddress:
Phone: _

East Highway 35 • Wayne, Nebraska 68787 • 402-375-4772

n o b o d y D o es I t B e tte r
Bank Facilities
Federal Reserve Bank of St. Louis

P hoto Labs


It's O u r T r a d itio n !
M odular S ales O ffices
Northwestern Banker, September, 1986

secretary, Art Lindquist and his wife, Dean, were hon­
ored at his final IBA convention in October, 1972. The
story we wrote for the November issue reported that,
“Mr. and Mrs. Lindquist ‘kept their cool’ during the
ceremony until they were surprised by the entrance of
10 members of their family...Mr. Lindquist’s mother,
Mrs. Lindquist’s mother and brother, the Lindquist’s
three daughters and their husbands, and the youngest
grandson, livewire Ben...The happy ceremony was cli­
maxed by three-year old Ben who had restrained him­
self long enough, and finally raced from his front row
seat to the edge of the platform, threw his arms around
A rt’s neck and yelled out, ‘Hi Grandpa!’ ”

Neil Milner
Builds IBA
HAT same November, 1972 issue carries a separate
story about the selection of Neil Milner as execu­
tive vice president of IBA by a committee headed by
retiring president Thomas H. Huston, president,
Columbus Junction State Bank, and the newly-elected
president, John Chrystal, then president of Iowa Sav­
ings Bank, Coon Rapids, and now president of Bankers
Trust Company, Des Moines. Mr. Chrystal and Mr.
Huston both served as Iowa superintendent of bank­
ing and they were elected this July as president and
vice president respectively of Iowa Independent
Bankers. Mr. Milner’s appointment was effective
January 1, 1973.
Mr. Milner came to the IBA at the age of 36 from his
former position as executive director of the South
Dakota Bankers Association, a position he had held
since September 1, 1968. Previously, he gained his ini­
tial experience with the Ohio Bankers Association. A
native of Ohio, he was graduated from the Ohio State
University in 1958, majoring in ag economics with a
minor in marketing. He completed numerous banking
and management courses with AIB and the U.S.
Chamber of Commerce. While in South Dakota, he re­
ceived the Distinguished Service Award from the
Huron Jaycees in 1971.
Neil’s 14 years as chief staff officer for IBA have
been marked with a distinctly new growth period for
IBA: first, in the legislative arena; second, in member­
ship services; third, in relations with ABA and other
associations; fourth, in staff development and profes­
Many forces that trace their origins directly to the
technological and social developments that began with
the end of WWII have converged in the past decade
and a half with such speed that traditional concepts
and methods of doing business are challenged on all
sides legislatively.
Bankers Became Involved
As these issues directly affected Iowa’s bankers,
they have become deeply involved at all levels of IBA
in pursuit of newer ways to compete and to gain new
Banker, September, 1986
Federal Reserve Bank of St. Louis

legislation. Iowa bankers at the grass roots level have
taken part in this action in several ways.
First, they carefully select those who will represent
them as group chairman and secretary, for the 10
group chairmen continue to form the board of directors
with IBA officers, and the secretaries now form the
core of the IBA legislative committee. The latter innovation, begun a year ago, provides great continuity in
a continuing legislative scene. Second, another innova­
tion of the past two years has been formation of the
Committee of 99, which brings a banker representative
from each county together with the other 98 and the
group secretaries, providing grass roots contact with
bankers and their hometown legislators. Third, any in­
dividual banker may attend the IBA board meeting
and ask to be heard.
After the Committee of 99 and the Legislative Committee offer proposals, the board of directors meets
with the association president as presiding officer and
adopts a course of action. On state issues, IBA’s staff
legislative officer and outside legislative counsel re­
ceive their instructions on how to proceed as lobbyists
with the legislature on each issue. Similarly, IBA offi­
cers make the board’s position known forcefully at the
national level, both with Iowa’s Congressional delega­
tion and with ABA’s government relations division.
All of this process has mandated that IBA change
from quarterly to monthly board meetings due to the
speed and complexity of continuing change. These
meetings are held in the IBA board room in the head­
quarters at 430 Liberty Building, Des Moines. Because
of fast-paced action in Washington and in the Iowa legislature at times, board members also meet by telecon­
ference when all need to be informed simultaneously on
an issue or when a quick decision is needed.
Expanding Membership Services
Membership services have become a trademark of
IBA with its members and several of these are incor­
porated as for-profit subsidiaries to preserve IBA’s
tax-free association status.
• Iowa Bankers Insurance & Services, Inc., was
formed to deal with the rapidly expanding base of per­
sonal health and life coverages initiated in 1944 and to
add a widening variety of modern coverages both for
bank staff and the banks themselves. IBIS was incor­
porated in 1971. Art Lindquist introduced credit life
into IBIS at that time.
During Neil Milner’s tenure, IBIS has taken on a
truly professional status with the employment of ex­
perienced career insurance sales and executive person­
nel. Leading the principal development of IBIS to its
present high level has been A1 Tinder, who took retire­
ment as a regional executive of a major, national pro­
perty and casualty firm to accept the challenge of
broadening and building IBIS. The success of his ef­
forts and the professional staff of 32 employees he has
assembled is attested to by the fact that the company
now has annual premiums of $19 million, three times
more than when he started in 1978. Nearly 100% of
IBA members take advantage of one or more IBIS of­
ferings and the value of them is shown by the fact that
in excess of $600,000 will be distributed back to mem­
ber banks this year as dividends.
• ITS, Inc., the IBA’s statewide shared electronic
funds transfer system, had its origins in a 1974 study
aimed at determining whether the Iowa and Nebraska














Bankers Associations could operate EFT jointly to
compete with an s&l that was offering modified EFT
to attract bank customers. From this grew Iowa’s own
Iowa Transfer System in 1979, later incorporated as
ITS, Inc., the only truly statewide and shared EFT
system in the nation. Early on, Neil Milner hired Dale
Dooley, with the concurrence of the ITS board, as man­
ager of ITS. Under Dale’s guidance, ITS has grown
from a fledgling in the totally unchartered field of bank
electronics transfer to highly respected senior member
of a sophisticated industry serving the financial insti­
tutions of the nation.
ITS has nearly 100% participation among Iowa
banks and 100 % participation of the state’s banks in
IACHA—Iowa Automated Clearing House Associa­
tion—which ITS operates through the Federal Reserve
Bank office in Des Moines (six southwestern counties
operate the Fed of Kansas City).
ITS has extended its service beyond Iowa borders,
working currently with 48 banks, credit unions and
s&ls in the neighboring states of Nebraska, South
Dakota, Illinois and Missouri. On May 17, 1984, Presi­
dent Dale Dooley signed a contract at the direction of
the ITS board that interfaces ITS with CIRRUS, a
multi-state EFT system.
Earlier, Dale had done extensive work with his coun­
terparts at other regional systems and those halfdozen groups formed a new organization called Nationet. This allows any member of the group to access
the system of the others, so that a cardholder in one
group can use the card in ATMs (Automatic Teller Ma­
chines) of the rest of the group. Now, ITS has agreed to
act as the central switch for Nationet members. Thus,
through Nationet and CIRRUS, Iowa bank customers
can access their hometown bank accounts through an
ATM in virtually every state in the union.
ITS scored another major victory for the state when
it developed and put into use the first POS (Point-ofSale) device in the nation for automatic accessing of
bank accounts at a retail store location. The pilot pro­
ject was initiated through two Iowa grocery chains in
one supermarket of each chain in Des Moines in Sep­
tember, 1981. This was the first such POS in the na­
tion and was picked up immediately by other vendor
banks. ITS has since expanded POS use to numerous
other retail locations throughout the state, including
filling stations.
ITS now services 1,310 electronic terminals in Iowa
and the other four states mentioned earlier. Of this
number, 819 are ATMs, of which 714 are located in
Iowa and 105 in adjoining states. The other 491 units
are POS stations, 465 of them in Iowa and 26 in adjoin­
ing states. Together, these 1,310 terminals had annual
volume at the end of 1985 of 15,611,483 switch trans­
actions; i.e., transactions in which the customer was
using a terminal owned by a bank other than where the
account was kept. These switch transactions consis­
tently account for one-third of total volume, so the
total volume processed through the system for 1985
was more than 47,000,000 transactions and should
easily top 50 million for 1986, a leading number when
looking at the central switch operations of any other
single center.
• Iowa Bankers Mortgage Corporation, another sub­
sidiary, was organized by interested members in 1979,
as a response to their need for a secondary market for
Federal Reserve Bank of St. Louis

From former Publisher Clifford DePuy’s “ News and Views”
column, page 13 March, 1934 N o r t h w e s t e r n B a n k e r :

RECENT survey shows that the 10 most favored
A stocks
held by 78 leading investment trust compa­
nies are as follows:
1—General Motors.
2—American Gas and Electric.
3—Du Pont.
5—Union Carbide.
6—Standard Oil of N.J.
7—J.C. Penney.
8—Chesapeake & Ohio.
9—Public Service of N.J.
10—American Telephone.
Comparing this list with the 10 most favored stocks
in 1920, only Union Carbide, Standard Oil of New Jer­
sey, and American Telephone are still among the fav­
ored group.
Also, during the last five years, only the American
Telephone has appeared among the most popular 10 in
each of these years.
real estate mortgages developed by the banks.
Through this vehicle, IBMC now offers its members a
full range of conventional, FHA and VA loan products.
Such an undertaking is always at the whim of current
and volatile interest rates; nevertheless, IBMC now is
running an annual volume of $20 ,000 ,000 , and is work­
ing with 175 IB A members who belong to IBMC. Sam
Callahan is president of the company.
IBA Involved with MABSCO
An important involvement for IBA is its interest in
MABSCO, incorporated in September, 1981 by 12 midAmerica states to provide needed services that the in­
dividual associations felt could be done better by a con­
sortium. The Iowa Bankers Association was very ac­
tive in formation of MABSCO and Neil Milner was act­
ing secretary at its organization. It was at that time
that Money Market Funds, operated by securities
firms unfettered by the close regulation to which
banks are subjected, began invading the deposit ac­
counts of the nation’s banks, drawing off in excess of
$2 billion bank deposits in less than two years.
MABSCO responded to this non-bank incursion by es­
tablishing its American Money Market Fund, starting
January 4, 1982. This action brought a sudden end to
the wholesale invasion by securities firms, for Con­
gress then acted quickly to change the law, although
permanent damage had been done to many banking re­
MABSCO then organized MASI, an agricultural
subsidiary, that has become the centerpiece of activity
for MABSCO members. Several Iowa bankers, notably
Edward L. Tubbs, chairman of Maquoketa State Bank
and a past president of the IBA (1980-81), worked dili­
gently with other dedicated bankers from MABSCO
states in arranging a $100 million financing package
with Europe’s major ag bank, Rabobank of the Nether­
lands, to back up the ag financing offered by MASI to
member banks. MASI headquarters initially were

Iowa Banking History. . .
(Turn to page 54, please)
Northwestern Banker, September, 1986


O ur Correspondent
Commitment Knows
No Boundaries.
o us, the best thing about state
__1 __bankers association conventions is
that they give us the opportunity to continue
our commitment to regular personal
contact. The more we participate, the more
we can discover about your bank’s needs
and concerns.

Naturally, it takes a heavy commitment
of personnel and man hours. But, you’re
worth it. That’s why even members of
United Missouri’s top management will
be attending various conventions.
See you there!

Crosby Kemper

Mick Aslin

Lyle Wells

Phil Straight

Larry Russell

Chairman of the Board


Vice Chairman

Executive Vice President
Correspondent Bank Division

Executive Vice President
Investment Banking Division



George Crews
Kirk Vaughan
Noel Shull
Bob Chamberlain
Bob Hardin
Randy Klein
Matt Grzybinski
Ralph Lampton
Bob Heinsohn
Phil Youngs
Maxine Hahs
Dan Spencer
Hal Hollister
Joe Smith
Joyce Nelson

lack Beets
Bob Chamberlain
Rahn Tieman
Randy Klein
George Crews
Ralph Lampton
Maxine Hahs
Phil Youngs
Hal Hollister
Dan Spencer
Kirk Vaughan
Joe Smith
Joyce Nelson

Dick M uir
Jeff Coble
Alan Sack
Mark Bailey



Matt Grzybinski
Bob Heinsohn
Phil Youngs

Dick M uir
Jeff Goble
Mark Bailey



Joe James
Kirk Vaughan
Sean Doherty
Greg Bernard

Steve Loveless
Joe James
Kirk Vaughan

of Kansas City, n.a.

Member FD IC

11th and Grand ° P.O. Box 419226
Kansas City, Missouri 64141-9946 ° (816) 556-7000
Banker, September, 1986
Federal Reserve Bank of St. Louis


_ r

been with the bank since 1978, ex­
cept for a period when he was vice
president of the North Loup Valley
Jim Guptill has been hired as vice
president and loan officer. He was
employed by the Broken Bow Pro­
duction Credit Association, and also
worked for the Farm Credit System
in Martin, S.D., Ord and Broken
In addition, Steve Vech, a vice
president in charge of lending, has
assumed new duties at the bank. He
has been named to direct the newly
formed agricultural real estate lend­
presentation on current legislative ing division which will begin mar­
issues facing Nebraska bankers. In­ keting farm and ranch real estate
cluded in his talk were comments on loans in the central Nebraska area.
the Uniform Commercial Code and He has been with the bank for three
Prenotification problems, and the years and has a total of 11 years ex­
farm bankruptcy bill currently perience in ag finance.
being used which Mr. Brandt said
“allows a farmer to extend his filing Named in Bellevue
out to 240 days from the old 120-day
The Bank of Bellevue has named
Concluding the afternoon busi­ Rick R. Sanders senior vice presi­
ness session was a presentation by dent and senior
NBA Executive Vice President, trust officer.
He joined the
Stan Matzke, Jr. who told of the new
Nebraska bankers advertising slo­ bank in 1981 as
gan to be used soon. It will read vice p resident
“Nebraska Bankers — We want you and trust officer,
and in 1985 was
to know us even better.”
named to head
the bank’s finan­
Changes Announced in Ord
cial planning deJim Bodyfield, vice president in
p a r tm e n t. In
charge of operations, has been pro­
January he was
moted to executive vice president of
named an associate member of the
Nebraska State Bank, Ord. He has
management company’s (Affiliated
Midwest Bancs) executive commit­
Prior to joining the bank, he
served as a vice president and trust
officer at Centennial Bank and Trust
in Mission, Kan.

NBA Conducts Area Bankers Meetings

Associate Publisher





HE Nebraska Bankers Associa­
tion held its 1986 Area Bankers
M eetings last month. In all, there
were six meetings across the state
beginning in Omaha at R oss’ Steak
House, followed by meetings at Bea­
trice Country Club, Norfolk Country
Club, Scottsbluff Country Club, Mc­
Cook Elks Club and ending at the
Kearney Holiday Inn.
NBA President, C.G. “Kelly”
Holthus, welcomed bankers to each
meeting. He said, “One of the top
priorities of the NBA is legislative
action—-even at the Federal level.”
Mr. Holthus foresees a lot of future
informational meetings, “because
bankers have told me they want
them .”
Bill Brandt, general counsel for
the NBA, gave a very informative

Bid Made in Farwell
Sherman County Bank in Loup
City has made a bid to take over the
deposits and assets of the Farwell
Credit Union, which was closed last
month by the State Banking De­
partment. The FDIC is expected to
approve the application, which
would permit the bank to establish a
branch office in Farwell, which is 20
miles east of Loup City.

Elected in Wisner


PARTICIPATING in the Area Bankers Meetings were, from left: NBA Pres.-Elect, Donald E.
Blaha, pres., First Natl., Ord; William B. Brandt, general counsel, NBA; NBA Exec. Vice
Pres., Stan Matzke, Jr., and NBA Pres., C.G. “ Kelly” Holthus, pres., First Natl., York.
Federal Reserve Bank of St. Louis

Mike Edelman has been elected
vice president at The First National
Bank of Wisner. He has served as
loan officer for the past three years
at The Bank of Clarks.
Northwestern Banker, September, 1986

Jim Fougeron has been named se­
nior vice president/loan support ad- q
ministration manager at the bank in
Omaha. He began his Norwest ca­
reer in Minneapolis in 1963. In 1972
he moved from the bank to the cor­
porate office in loan administration. (|,
After ten years at the bank in Bill­
ings, Mont., he became senior vice
president/loan administration for
the Grand Island and H astings Nor­
west Banks. He will office in the Ser- 0
vice Life Building in Omaha.

The Packers Bank & Trust Co. of
Omaha has named Edward A. Ro­
llout as presi­
dent and CEO,
to replace Jay L.
The appoint­
m ent follow ed
an a n n o u n c e ­
m en t th a t a
group of inves­
tors has offered
to buy at least
$3.5 million of
Packers’ stock. The offer was made
at the invitation of the board of di­
rectors of Packers Service Group, a
one-bank holding company that
owns Packers Bank stock.
Mr. Kohout has resigned his for­
mer position as senior vice president
for Norwest Bank Nebraska, where
he was in charge of the financial in­
stitutions and agricultural business
groups. Prior to that he was presi­
dent and chairman of Norwest Bank
In addition, bank director Rodney
P. Vandeberg was named chairman
of Packers’ loan committee. He is
president and CEO of the First Na­
tional Bank & Trust Co. in Falls
City. The position is newly created.
Mr. Dunlap already had an­
nounced his intention to leave Pack­
ers Bank and return to the Union
Bank in Lincoln, which he headed
before joining Packers about 18
months ago.
Duane Acklie, president of LRC
Inc. of Lincoln, leads the group of in­
vestors. According to him, they
have promised to pay $18 a share for
the stock. They have put up $3.5
million for the deal, or 50 to 56 perNorthwestern
Banker, September, 1986
Federal Reserve Bank of St. Louis

cent of the company’s book value of
$7 to 8 million.

Various staff changes have been
announced by Norwest Bank Neb­
raska, N.A.
H a r o ld
Walton has been
promoted to the
new ly created
position of exec­
utive vice presi­
dent at the bank
in Omaha. He
began working
for Norwest in
1956 in Mason
City, la. In 1969 he was advanced to
vice president of bank relations for
the corporation. In 1974 he became
president of Center Bank in Omaha,
which later became Norwest Bank
Omaha W est and merged with the
Millard Bank in 1985.
Timothy J. Coughlon has been
promoted to president of Norwest
Bank in Millard. He joined Norwest
in 1973 as a management trainee in
Mason City. He served in various
positions in Billings, Minneapolis
and Sioux City before moving to
Omaha in 1984 as senior vice president/special loan administration.

Robert Zaback has been promoted
to senior vice president/administrative services manager in Omaha. He
started in banking in 1956, and
moved to the Norwest Bank in H ast­
ings in 1964. Since then he has
headed up almost every department
in the bank, and m ost recently was
senior vice president/administration. His new responsibilities will in­
clude management of property man­
agement, security, purchasing and
Ken George has been promoted to
vice president/consumer credit man­
ager at Norwest in Omaha. He
began working at the Grand Island
bank in 1962. Since then, he has
worked in nearly every department
in the bank including managing a
facility. He became manager of in­
stallment loans in 1984. He will
manage sales finance, credit adjust­
ment and consumer credit from his
office at 2 0 th & Farnam Street.











Donald Lee Jorgensen and Janet
M. Keyser have been promoted to
assistant vice presidents/trust de­
partment. Mr. Jorgensen joined the
Omaha bank in 1952 and has held 0



various positions there. He is an account administrator, handling large
institutional accounts. Ms. Keyser
joined Norwest in 1969 and was
m ost recently corporate trust offi­
cer. Both will office at 20th & Farnam in Omaha.
* * *



FirsTier Bank Omaha has an­
nounced several officer appointments.
James E. Stewart was named vice
president. He joined the bank in
1984 as assistant vice president and
senior commercial banking officer in
the corporate group department. He
went to the Metro II banking de­
partment last September, and is cur­
rently team leader.

The Old
P instripes Ain’t W hat
They Used To Be.


It’s the hard truth. Because operating a successful
bank today is unquestionably different than it was 10
years ago. Or 10 months ago. Today you’re faced with
uncertainty. Increased competition. New laws and
regulations. The list goes on.
And, there are countless questions concerning
directions to take. The answers to which are critical.

FirsTier Management Consultants can help.


We offer fully-independent, fully-confidential
consulting to provide you with the answers you need.
Answers that are based on proven, workable solutions;
on a changing financial environment; and on our more
than 100 years of combined experience as bankers.
Specifically, we offer a full range of services
tailored to meet your needs. Some of which include:
• Strategic Planning
• Loan Administration Review
• Asset/Liability Management





Thomas D. Clabaugh, John S.
Morris, Jean M. Paul, Robert J.
Riley and Steve A. Scanlan were
promoted to assistant vice presi­
dents. Mr. Clabaugh joined the bank
in July as lending officer in the fi­
nancial institutions department. Mr.
Morris started in March with


To find out more about the experience, expertise
and advice we can bring to your bank, contact Pat
Reisdorff at FirsTier Management Consultants today.
In Nebraska call (800) 223-4489
Outside Nebraska call (800) 443-1142

FirsTierM anagem ent
Ron George, President

(Turn to page 36, please)
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1986

1985. Mr. Scanlan came to the bank
in 1982 as an investment represen- #
tative in the bond sales department,
and was appointed officer in 1984.
Other officer appointments were
as follows: Nancy Delong, human re­
sources officer; Tony John, personal ®
banking officer; Cheryl Miller,
human resources officer; Cindy
Phipps, operations officer; Jerry
Schweiger, commercial real estate
officer, and Shirley Smulling, trust ®
tax officer.
* * *

Several promotions have been an­
nounced at FirsTier Bank Lincoln.

M ichael J.
Thrasher, for­
merly assistant
vice president,
real estate lend­
ing, has been
e le c te d
v ic e
p r e sid e n t. He
joined the bank
in 1983 as a real
e s ta te len d in g
Mj t h r a s h e r
Three officers were elected to as­
sistant vice president positions:
Donna M. Dudney, municipal & gov­
ernment bond division, and Gerald
D. Ficke and Steven L. Schmidt,
commercial lending division. Ms.
Dudney joined the bank in 1985 as
an underwriting officer. Mr. Ficke
joined the bank in 1981 as a com­
m ercial b a n k in g officer. Mr.
Schmidt began his FirsTier career in
1978 working part-time.
Other officer promotions include:
Susan R. Staehr, collections depart­
ment operations officer; Sharon L.
Strate, administrative accounting
operations officer, and Ed Woolman,
III, assistant collections manager,
consumer lending. Ms. Staehr has
been with the bank since 1976. Ms.
Strate joined the bank in 1980. Mr.
Woodman joined the bank in 1984.



Michael J. Balters has been pro­
moted to trust investment officer of
National Bank of Commerce. Prior
to joining the bank in 1983, he was a
professor at the University de Con­
cepcion in Chile.
Kathy L. Christensen has been
promoted to bank investment offi­
cer. She worked at a savings and
loan prior to joining NBC in 1980.
A number of promotions has been

Banker, September, 1986
Federal Reserve Bank of St. Louis

announced at NBC computer ser­
vices corporation.
P r o m o te d to s e n io r v ic e
presidents were Duane Drahota and
Daryl Irmer. Mr. Drahota was pro­
gramming and operations manager
at Union Insurance prior to joining
NBC/CSC in 1983. Mr. Irmer joined
the company in 1983 as a manager
of customer support.
Michel Cobb has been promoted
to assistant vice president. He
joined the organization in 1974 and
is currently manager of computer
In addition, Craig Slaby has been
promoted to customer services offi­
cer, and Bob Heydon and Dennis
Brown to system s officers. Mr.
Slaby joined NBC/CSC in 1981, Mr.
Heydon joined in 1985, and Mr.
Brown in 1985.
* * *
F irsT ier B rokerage, Inc., a
wholly-owned subsidiary of FirsTier
Bank, N.A., Lincoln has announced
the commencement of its operations
as a registered broker dealer. The
organization is a member of the Na­
tional Association of Securities
Dealers and Securities Investor Pro­
tection Corporation.
Jerry A. List is manager of the
new FirsTier subsidiary.

(Continued from page 35)
FirsTier Management Consultants
as senior field consultant, and
moved to credit services in June.
Ms. Paul came to the bank in 1972,
and is manager of personal banking
and teller operations in the personal
banking department. Mr. Riley
joined the bank in 1983, and was ap­
pointed both officer and branch
manager at the Grove Plaza office in

A.J. Canaday, who resigned re­
cently as chairman of the American
N ational Bank
in St. Joseph,
M o., h a s r e ­
turned to Omaha
and h a s a n ­
nounced forma­
tion of Jack Can­
aday & Associ­
ates, Inc. The
bank consulting
firm will offer a
fu ll ran ge of
bank management and operational
consulting services, including all
phases of management and loan re­
view, investm ents, personnel, com­
munications, operations at all levels,
and handling of bankruptcies.
The new firm is located temporari­
ly at 6701 Davenport, Omaha
68132, phone 402-551-7005, while
new offices are being readied in Re­
gency in west Omaha.
Mr. Canaday resigned three years
ago as executive vice president at
First National Bank of Omaha to ac­
cept the American National post.
Previously he had been president at
Bank of Independence in Missouri
from 1958 to 1967 before moving to
First National of Omaha. A native
of Springfield, Mo., he joined the
FDIC in 1952.
Mr. Canaday said associates of
the new firm are located in Pitts­
burgh, St. Louis, Houston, Kansas
City and Denver, in addition to

Retired in Falls City
An open house was held recently •
in honor of Evelyn Krug, who has re­
tired from First National Bank and
Trust Company, Falls City, after 40
years of service. She most recently
served as operations officer.


We’ve been doing it for twenty years.

F u ll L ine of P roducts
CSC offers a com p lete lin e of p r o c e ssin g
s e r v ic e s for banks of all siz e s . T h is
in clu d es on -lin e and ATM support,
a p p lic a tio n s y s te m s , and fin a n c ia l
p la n n in g p ack ages.

Y ou can r e ly on the k n o w led geab le staff
of CSC to p rovid e the kind of s e r v ic e and
back-up that you need in tod a y ’s fastm o v in g b an k in g en viron m ent.

E sta b lish ed C om pany

CSC a lso m a n a g es data p r o c e ss in g
c o s ts w ith a v a r ie ty of product d e liv e r y
m ethods, in c lu d in g M icro B an kin g,
R em ote C apture and B alan ced Bank.

D ependab le S e r v ic e
The h ig h le v e l of se rv ic e provided after
c o n v e r sio n s h a v e been m ade h a s kept
CSC a data p r o c e ssin g
lead er for banks in the
m id w e s t . T e c h n i c a l
back-up and cu stom er
su pp ort are provided
throu gh s ix com puter
c e n te r s s t r a t e g ic a ll y
lo c a t e d in L in c o ln ,
G rand Isla n d , N o rth
P latte, S co ttsb lu ff and
N orfolk, N ebraska; and
in D enver, Colorado.

CSC h as been in the data p r o c e ssin g
b u sin e ss sin ce 1966. The com p an y is the
la r g e s t p r o v id e r o f b a n k d a ta
p r o c e ssin g s e r v ic e s in N ebraska. A n
a ctiv e e x p a n sio n p o lic y h as opened up
n ew m ark ets in Colorado, K a n sa s and
W yom ing.

B an k ers W orking for B an k ers
CSC und erstands banking. F in a n cia l
softw are is d evelop ed by bank ers for
bankers, u s in g the trad ition al form at
bank ers are alread y fa m ilia r w ith. They
are r e sp o n siv e to banker’s needs, and
h a v e the e x p e r tise and
the back-up to keep
b ank s efficien t.
■ If y o u ’d lik e a CSC
r e p r e s e n t a t i v e to
c o n ta c t y o u fo r a
c o m p reh en siv e
an a l­
y s i s o f y o u r d a ta
p r o c e ssin g needs, c a ll
1-800-245-3103 in C olo­
rado. In N ebraska, c a ll

N S C /C S C
N a t io n a l B a n k o f C o m m e r c e
C o m p u te r S e r v i c e s C o r p o r a tio n
P.O. Box 82408
Lincoln, Nebraska 68501
NBC/CSC is a w h olly owned subsidiary of
N ational Bank of Commerce
Federal Reserve Bank of St. Louis

iilF irst C ommerce bank.

Northwestern Banker, September, 1986


Get a correspondent relationship
that’s as individual as you are.

No two banks are exactly alike. And the same
can be said for their correspondent banking
needs. That’s why we develop each and every
one of our correspondent bank plans on an
individual basis.
Whether it’s loan participations, computer
services, discount brokerage, MasterCard/Visa,
or our new and improved cash letter proc­


Ç »

essing service, you can depend on the fact
we’ll work with you to adapt that service to
better meet your individual needs. And we’ll
be around to make sure it fits your needs in
the future, too.
Experience correspondent banking on a truly
“individual” basis. Call one of our correspon­
dent bankers today.


Commercial National Bank of Peoria
Member M idwest Financial Group, Inc,

Phone: (309) 655-5423

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

301 S. W. Adams • Peoria, Illinois 61631
WATS LINE 1-800-322-2212

Member FDIC


President Elected in Peoria





Donald S. Robinson has been
elected president and chief executive
officer of Madi­
son Park Bank,
Peoria. He was
also elected to
th e
M a d iso n
P ark
B a n k ’s
M r.
R o b in s o n r e ­
p la c e s
Busey, who became a principal
owner and presi­
dent of Community Bank of Maho­
Mr. Robinson has over 20 years
banking experience, joining First
Galesburg National Bank in 1969.
He most recently served at the
Galesburg bank as senior vice presi­
dent and vice president of First Illini
Bancorp, Inc.

Changes Made in Galesburg

ager of the Sandburg Drive office.
Lynn Stevenson has been pro­
moted to personal loan officer of the
bank. She joined the bank in 1980
and most recently served as per­
sonal loan representative.

IBA Elects New Members
Five new members have been
elected to the board of directors of
the Illinois Bankers Association.
Marvin Boyer, president and
CEO, The First Bank & Trust Com­
pany of Murphysboro, William Mit­
chell, chairman and president, Lake
Shore National Bank, Chicago, and
Michael Travelstead, president, DuQuoin State Bank, have been elected
for terms ending June 30, 1987. Leo
F. Mullin, executive vice president,
First National Bank of Chicago and
Kenneth Ozinga, president, First
National Bank of Evergreen Park,
have been elected for terms ending
June 30, 1988.

Marvin H. Dahl berg has been
named senior vice president of lend­
in g a t F ir s t
G alesburg N a­
tional Bank and
Trust Company.
He has been a
banker for the
past six years.
P reviou sly, he
has served as
bank consultant,
assistant profes­
sor of business at Sauk Valley Col­
lege, and as credit manager for Borg
Warner and Montgomery Ward.
Diane E. Larson has been pro­
moted to manager of the bank’s
Sandburg Drive office, and Connie
M. Shryack has been promoted to
manager, retail financial services.
Ms. Larson has been with the bank
First Colonial Bankshares Corpo­
since 1978 and most recently served ration has announced it has com­
as m a rk etin g a s s is t a n t. M s. pleted its purchase of the $243 mil­
Shryack joined the bank in 1972. lion asset Avenue Group Bank.
She most recently served as manThe Group includes the $170 mil­
Federal Reserve Bank of St. Louis

lion asset Avenue Bank & Trust
Company of Oak Park; the $35 mil­
lion asset Avenue Bank Northwest,
Niles; the $20 million asset, The
Northlake Bank, Northlake, and the
$18 million asset Avenue Bank of
Elk Grove Village.
The acquisitions involved a cash
transaction of approximately $30
million which was funded by private
sales of debt and equity securities,
$15 million of which was subscribed
to by European investors.
This acquisition brings First
Colonial’s assets to nearly $1 billion
in 10 Chicago and suburban loca­
* * *

Robert F. Sherman has been
named chairman and chief executive
officer, and Thomas A. Caravello
has been named president and chief
operating officer of All American
Bank. In addition, Mr. Sherman has
been named vice chairman and chief
executive officer of the Community
Bank of Edge water and vice chair­
man and CEO of Avenue Bank
Northwest, Niles.



Mr. Caravello, who will succeed
Mr. Sherman as president and COO,
was previously senior vice president
and senior lending officer at All
American. Prior to joining the bank,
he served as manager of the com­
mercial loan department at Colonial
Bank & Trust Company, Chicago.
* * *

Maryanne C. Kennedy has been
appointed vice president in the
training division of Financial Shares
Corporation. She joins the company
from Burroughs Corporation, where
she was an account executive.
In addition, Susan V. Heuer and
Dr. Robin Pratt have been ap­
pointed as senior consultants in the
firm’s training division.
(Turn to page 56, please)
Northwestern Banker, September, 1986


As President of First State Bank of Apple Valley,
Joe Nordlund’s philosophy is simple—the com­
munity you serve determines what type of bank you
have to be. In his fast growing, suburban community,
that means anticipating rapidly changing needs,
filling them, and doing so with absolutely top quality
personal service.
Recently, First State Bank moved their
correspondent business to American, because our
philosophy is the same as Joe’s, and because we
don’t compete for his customers. For Joe, top quality
personal service means professionals like Jim
Russell, Vice President and Manager of Correspon­
Federal Reserve Bank of St. Louis

dent Banking, who brings value to a correspondent
relationship that goes far beyond quality products.
That value includes a personal commitment to
exceptional service and a real desire to help
correspondents, like Joe and the First State Bank,
If you’re looking for a partner to help you
succeed, perhaps it’s time for a change.


B A N K .



cashier in 1982 and currently is
manager of the insurance agency.
In addition, Randall A. Jones has
joined the bank as assistant cashier
and auditor. He was previously as­
sociated with Norwest Bank, Des
Moines, la. as financial analyst and
First Interstate of Iowa Inc., Des
Moines as staff auditor.

Candidates Recommended for
MBA Top Elected Officials
The Minnesota Bankers Associa­
tion nominating committee has re­
commended James R. Jorstad, A.
William Sands, R. James Gesell and
James H. Hearon, III, for endorse­
ment for the top elected officers in
the association for 1987-88.

succeed Mr. Jorstad.
Recommended for the 1987-88
candidate for MBA second vice
president is Mr. Hearon, III, chair­
man, National City Bank, Minnea­
Mr. Gesell, president, Cherokee
State Bank, St. Paul, is recom­
mended to serve a second term as
MBA treasurer for 1987-88.





President Elected in Duluth



The nominating committee in­
cludes the nine M BA district presi­
Recommendations will be acted
upon at each of the nine MBA dis­
trict meetings in September. Elec­
tions will take place at the June
1987 M BA convention in Minneapo­
Mr. Jorstad, president, Citizens
State Bank, Hayfield, is the pro­
posed candidate for 1987-88 MBA
president to succeed Roy W. Terwilliger, president, Suburban National
Bank, Eden Prairie. Mr. Jorstad is
currently first vice president of the
Mr. Sands, chairman, Western
Bank, St. Paul, is proposed for MBA
first vice president for 1987-88 to
Federal Reserve Bank of St. Louis

J. Joseph Lindsley has been
elected president, chief executive of­
ficer and a direc.,,
tor of First Bank
Duluth. He re­
places Larry L.
Gilb, who was
named m anag­
ing director of
First Bank Sys­
t e m ’s N o r th /
Central Minne­
sota region June
1, 1986. Mr. Gilb
has also been named chairman of
First Bank Duluth and will have
management responsibility for First
Bank Cloquet.
Mr. L indsley m ost recently
served as executive vice president of
regional banking for First Bank Sys­
tem. He began his banking career in
1965 at the United Bank of Denver.
In 1973, he joined the First National
Bank of Stillwater, Okla., until 1978
when he joined the United Bank of
Fort Collins, Co., as executive vice
president and COO. He joined First
Bank System in 1983 as president of
First Bank Billings, Mont.

Changes Made in Bayport
The First State Bank of Bayport
has elected Carolyn Willet and Peter
J. Clem ents to a ssista n t vice
Ms. Willet joined the bank in
1976. She was elected to auditor in
1981 and assistant cashier in 1982.
Mr. Clements joined the staff in
1976. He was elected to assistant

Astrida Peterson has also joined
the bank. She brings many years ex­
perience in real estate loan origina­
tion, closing and supervision. She
was previously employed by Nor­
west Title.

Named in Hutchinson
Richard R. Wilhelmi has joined
The First National Bank of Hutchin­
son as vice presi­
dent and senior
commercial loan
He was for­
merly employed
as vice president
of The F ir s t
B lu e
Earth, and prior
to that, as assisR WILHELMI
tant vice presi­
dent of First Bank Park River,
North Dakota.

Elected in Rochester
Norwest Bank Rochester has an­
nounced the election of A1 Moschner, Rochester system s plant man­
ager, IBM, to its board of directors.
He replaces Stephen Shewbrooks
who has recently moved to New
Northwestern Banker, September, 1986


Twin Cities
Kim W. Dorland has been named
president of First Bank Lake. He
succeeds New­
ton R. Fuller,
who will become
vice chairman at
First Bank Lake
and is assuming
new responsibili­
ties within the
metropolitan di­
v isio n of the
First Banks.
Mr. Dorland
most recently served as senior vice
president and manager, credit ad­
ministration and commercial bank­
ing at the bank. He will continue as
head of commercial banking in addi­
tion to his responsibilities as presi­
He began his career with First
Bank System in 1974 at First Bank
Western of Missoula, Mont. In 1981
he joined First Bank Bloomington
Lake, which merged with First Bank
Lake in 1984, as vice president of
* * *
Norwest Bank Minneapolis has
named Richard C. Westergaard se­
nior vice presi­
dent and head of
its national de­
p a r tm e n t. He
had been with
Morgan Guaran­
ty Trust Com­
pany, New York,
since 1968, most
recently as vice
p r e s id e n t
s p o n s ib le

re fo r


worldwide business development
with large corporations in Minne­
sota and Wisconsin.
In his new positions, he will have
responsibility for Norwest Bank cor­
porate customers with annual sales
Banker, September, 1986
Federal Reserve Bank of St. Louis

of more than $250 million located in
the Twin Cities area and throughout
the U.S.
* * *
The First Banks have promoted
the following individuals to vice
president status: Calvin C. Meury,
Jr., corporate marketing administra­
tion; James K. Thornes, special de­
p o sit se rv ic es a d m in istration ;
Frederick T. Green, telecommunica­
tions; Michael J. McGroarty, corpo­
rate asset funding, and David M.
Thompson, syndications. John N.
Norris has joined the bank as vice
president in the transportation,
equipment leasing group.

most recently served as assistant
vice president in corporate D emerg­
ing industries. Mr. McGroarty has %
been associated with the bank since
1978, and had been assistant vice
president in corporate asset funding
since 1984. Mr. Thompson joined
the bank in 1981, most recently ser- #
ving as assistant vice president in
the syndications division. Mr. Nor­
ris has been with Manufacturers
Hanover Leasing since 1979, most
recently as branch manager.
* * *

Marquette Bank Minneapolis has
announced that Marcia S. Hanson
has been a p ­
p o in t e d
v ic e
president of re­
tail banking for
the three Mar­
quette banks in
the dow ntow n
She has an ex­
tensive banking
background. She
Mr. Meury joined the bank in worked for the
1971 and had been assistant vice First Bank System since 1979,
president in corporate marketing where she held a number of positions
and marketing research since 1978. before being promoted to vice presi­
Mr. Thornes, who joined the bank in dent and manager of the First Bank
1975, most recently served as assis­ St. Paul office in Shoreview in 1982.
tant vice president and division M ost recently, she served as vice
head in special deposit services. president and commercial lender for
Joining the bank in 1982, Mr. Green First Bank St. Paul.


The First Banks have promoted

investm ents in 1985. Mr. Carlson

Douglas E. Barnes and Carlene joined the bank in 1976 and was pro­
Crnkovich to
moted to investment officer in 1981.
Ms. Donath joined the bank in 1974,
serving most recently as personal
banker II.
* * *

vice presidents
and have named

Duane A. Senneseth vice presi­
dent in the FBS
Capital Markets
Mr. B a rn es
joined the First
Banks in 1980
and had been as­
sistant vice president and manager
in the professional dealing unit/in-



ternational money markets. Ms.
Crnkovich, who joined the bank in
1977, had been assistant vice presi­
dent in international money mar­
kets. Mr. Senneseth, who joined the
bank in 1979, had been vice presi­
dent and group manager in data pro­
cessing sales, FBS information ser­
vices, since 1983.
* * *
American National Bank of Saint
Paul has promoted Diane L. Quinn
to vice president-executive and pro­
fessional; Bruce C. Bennett, vice
president, investment; William J.
Carlson, assistant vice president, in­
vestm ents, and Joy J. Donath, per­
sonal banking officer.


Douglas A. Peterson, vice presi­
dent, will manage the newly created
mortgage banking division of Na­
tional City Bank of Minneapolis. He
has worked in the banking industry
for 33 years and has been with Na­
tional City Bank for 17 years.
Mark E. Johnson, vice president,
has been appointed manager of the
real estate division. He has been
with the bank since 1984.
Brian K. Whitemarsh has been
named assistant vice president of
real estate division. He joined the
bank last year.
Sheila M. Fleming has been
named executive & professional
banking officer. In the banking in­
dustry for nine years, she has been





with the bank for five years.
Paul A. Alexiu has been named
credit officer of the credit and loan
accounting division. He joined the
bank in 1983.
Named personal banking officer
and assistant manager of the per­
sonal banking department, Phyllis
J. Strand has been with the bank for
nine years.

American National Plans Larger Facility


Ms. Quinn has been with the bank
since 1968, most recently serving as
assistant vice president, executive
and professional. Mr. Bennett began
his career with the bank in 1978. He
was promoted to investment officer
in 1981 and assistant vice president,
Federal Reserve Bank of St. Louis

Edward A. Klun has been elected
a commercial banking officer at Norwest Bank Old
S t. A n th o n y ,
jo in e d
N orw est Bank
M in n e a p o lis ,
N.A. in 1983 as a
senior commer­
c ia l
b a n k in g
auditor. In 1985,
he participated
in the Norwest
banking training program at Nor­
west Bank St. Paul, N.A.
* * *

AMERICAN National Bank & Trust Co. of St. Paul is moving its Highland Village office to
new, larger quarters on Cleveland Ave. Refurbishment of the 12,500 sq. ft. building on that
site is scheduled for completion in the fall. Remodeling will include a new facade on the ex­
terior and the addition of a clock on the front of the building. The office will also have two
drive-up banking lanes and a large parking lot. The interior of the building is also being
Northwestern Banker, September, 1986

SDBA Group Meeting Agenda Announced
HE agenda for the five South
Dakota group meetings has re­
cently been announced by the South
Dakota Bankers Association’s head­
quarters in Pierre. The program will
be as follows:

1:30 Registration.
2:00 Call to Order
B. M ich a el B ro d erick ,
SDBA president; president
of First American Bank,
Program: *
• “M ainstreet” - A video of
the South Dakota banking
• PEP - A personal econom­
ics program.
• “ 1986 Federal Tax Law
Review” - McGladrey, Hen­
drickson & Pullen, CPA
• “ IRA Products & Services

Dakota State Bank
Of Tripp Acquired
Mr. H. Lauren Lewis, chairman of
First State Bank of Armour-Delmont, has announced that the FDIC
and the South Dakota Banking
Commission have approved the ap­
plication of the First State Bank of
Armour-Delmont to acquire the Da­
kota State Bank of Tripp. Dakota
State Bank became First State
Bank, Tripp branch during the first
week of September.
The election of Jon Klatt to the
board has also been announced.
LeRoy Hofer, president and CEO of
First State Bank of Armour-Del­
mont will continue in that capacity,
with Gerald Wenzel as senior vice
president and manager of the Delmont branch; Jon Klatt, vice presi­
dent and manager of the Tripp
branch, and Jerry Altenburg, vice
president and manager of the main
Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

A vailab le Through The
SD B A ” - Collin Fritz & A s­
• “South Dakota Update:
1985 Federal Farm B ill”
-May Adams Gerdes and
Thom pson, S D B A legal
• “Bonding & Chapter 12
B a n k r u p tc y
R e v ie w ”
-Gerdes and Thompson.
• “SD BIS & Bancinsure
Products” - Russ Hendrix,
SD BIS vice president.
5:45 Adjourn.
6:00 Reception and Social.
7:00 Dinner.
The group dates and locations will
be as follows:
Sept. 15-Aberdeen-Group II
Sept. 16-Mobridge-Group IV
Sept. 17-Rapid City-Group V
Sept. 18-Mitchell-Group III
Sept. 19-Sioux Falls-Group I

his new position he will serve as
senior credit officer.
Vic W. Anderson has been elected
operations officer, First System Services-South Dakota region. He joins
First Bank from Citibank South Da­
kota where he has been employed for
the past two years. Prior to joining
Citibank, he worked for 10 years at
Republic Bank in Dallas, Tex. as as­
sistant vice president.
In addition, Alan Zwart has been
elected as loan officer of First Bank
Corsica. He worked most recently as
the Nor west Agencies office in Dell

Norwest Changes Told
Norwest Bank South Dakota,
N.A., has announced the promotions
of Vicki Sieck to system s analyst in
Sioux Falls, and Sharon De Jong to
personal banking officer in Mitchell.
Ms. Sieck joined Norwest in 1975
in Lake Preston. In 1979, she was
transferred to the Sioux Falls Colo­
nial branch, where she most recently
served as account maintenance
supervisor for deposit operations in
Sioux Falls.
Ms. De Jong joined Norwest in
Mitchell in 1974 and most recently
served as personal banking super­

Named in Huron

Farmers & Merchants Bank,
Huron, has elected Judy Boetel
operations officer. She will supervise
the input/output and proof depart­
ments as well as balancing of certifi­
office at Armour. Other officers at cate of deposit and savings applica­
Tripp will be: Harrison Brosz, vice tions.
president; Maynard Hieb, agricul­
The bank also announces the addi­
ture loan officer; Candyce Mogck, tion of James D. Laird, trust officer,
assistant cashier, and Connie Rei­ and Martha Fullerton, personnel di­
ner, administrative assistant.
rector to its staff. Mr. Laird man­
Mr. Lewis said the board does not ages the operations and services of
anticipate any major changes in the trust department in downtown
policy or in personnel at Tripp.
Huron. Ms. Fullerton coordinates
After the acquisition of the Tripp performance review and new em­
Bank, total assets of First State ployee orientation program.
Bank, Armour-Delmont-Tripp are at
$39 million.
SDBA Seminar Offered

First Bank of South Dakota
Announces Elections
The board of First Bank of South
Dakota has elected Don Wenell as
senior vice president of First Bank
Aberdeen. He rejoins the bank from
an affiliate, First Bank System
Credit Services, Inc. where he has
served as the Aberdeen site man­
ager for the past seven months. In

The South Dakota Bankers A sso­
ciation, in cooperation with the ac­
counting firm of McGladrey, Hen­
drickson and Pullen, will hold The
Bank Director’s Dilemma, Septem­
ber 30 at the Holiday Inn in Mit­
The one-day seminar will be pre­
sented by a group of highly skilled
and competent professionals. Cost is
$25 per registrant.

Some things have to change
At Marquette Bank Minneapolis, we feel
some things should endure.
Pride in a job well done. A high standard of
performance. A tradition of excellence.
These are the foundations of Marquette’s
Correspondent Services Division.
And it sh o w s . . . in our ability to pinpoint
and analyze your problems and oppor­
tunities. Our w illingness to roll up our
sleeves, to work w ith you, to deliver all the

resources of a billion dollar bank to help
you meet the challenges of today, and
Technologies and services change, but our
attitude hasn’t. Because Marquette Bank
Minneapolis w ill never put aside our oldest
promise to our customers: professional
service with a personal difference.

Marquette Bank

Member FDIC

Correspondent Services Division
Federal Reserve Bank of St. Louis



HE 19TH annual convention of
the Independent Community
Bankers of North Dakota will be
held September 23-26 at the Kirk­
wood Motor Inn, Bismarck.
This year’s convention theme,
“A t the Crossroads and Growing
Stronger,’’ focuses on ICBND’s goal
to move its member banks forward
into the future while preserving
local ownership and control.
The convention will be enhanced
by excellent speakers such as Dr.
D.D. Warrick, professor of manage­
ment, U niversity of Colorado;
Jerome C. Darnell, professor of fi­
nance, University of Colorado, and
William A. Lovett, professor of law
and economics, Tulane Law School,
New Orleans, La.
A mexican accent will add to this
year’s festivities. The program fol­
Tuesday, September 23

1:30 Men’s and Women’s Golf
Riverwood Golf Course
8:00 Executive Council Meeting Cologne Room
Wednesday, September 24

8:00 IC B N D
A p p r e c ia tio n
Gary Nelson, ICBND Presi­
dent presiding
Invocation and Welcome:
Kelly Dakken, ICBND Pres­
“The Story of Independent
Banking’’—Gene Hamilton,
v.p., Farmers & Merchants
Bank, Beach
“Current Issues of Indepen­
dent Banking’’—A1 Wolf,
Wheeler Wolf Law Firm.
9:00 Exhibit Booths to be A s­
11:00 Registration Desk O p e n Courtyard

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

12:00 Welcome Buffet R eceptionCourtyard
1:30 “Moving Bankers From the
Crossroads to the Highroads
—Of Marketing and Selling”
—Jerry Simmons, pres., The
Idea M anagem ent Com­
pany, Sioux Falls, S.D.
2:30 Bankers Centennial Pioneer
P r o g r a m —“ B u s k s h o t ”
Hoffner, ND Centennial
2:40 Ice Cream/Soda Break
2:55 ICBND Annual Business
Session—Gary Nelson, ICB­
ND President presiding. Of­
ficer and committee reports.
4:00 Recess—Visit to Exhibits
and Exhibitors Hospitality
6:00 Social Hour—Courtyard
7:00 South of the Border Festival
Thursday, September 25

7:45 Prayer Breakfast
Terry Zeltinger, pres., Tow­
ner County State Bank, Cando, presiding
Speaker and Music: Trish
Lenihan, Circle C Ranch,
Bismarck, N.D.
8:30 R egistration C on tinues—
9:00 General Session—Dresden
Call to Order—Gary Nelson,
pres., Scandia American
Bank, Stanley.
I n v o c a tio n —P a sto r Ted
Heaston, Evangel Temple
Color Guard P resen tation Century High School
9:15 Jam es Jorgenson, IBA A
S ta te Director, Kenmar
Address: Tom H. Olson, In­
dependent Bankers Associa­
tion of America pres.-elect,
pres. Lisco State Bank,
Lisco, Neb.
9:35 “You Know Us, We Know


You” Video view of the
IBAA Marketing Program Tom H. Olson
“Interstate Financial Insti­
tu tions: E v o lv in g P ros­
pects”—William A. Lovett,
Prof, of Law and Economics,
Tulane Law School, Tulane
University, New Orleans,
Coffee and Muffin Break
“What You Have Always
Wanted to Know About the
Benefits of ICBND General
Services—And Have Been
Afraid to A s k ” —Myron
Pfeifle, chmn., General Ser­
vices Committee; pres., B is­
marck State Bank.
“ If Banking is Contagious, I
Hope You Never Get Well!”
—Janie Jasin, pres., Creati­
vity No-Limits, Minneton­
ka, Minn.

12:15 Bankers Luncheon
“Sharing Profitable Ideas”
—Peer Group Discussions
Speaker: Dr. D.D. (Don)
Warrick, Prof, of Manage­
ment University of Colo­
2:00 General Session—Dresden
Greetings: Governor George
Sinner, State of North Da­
2:15 ICBND Business Session
Election of Officers
Adoption of Resolutions
Adoption of By-Laws
Greetings: Jane Lundberg,
Commissioner, Department
of Banking and Financial In­
3:00 Coffee and Fresh Fruit
3:15 “How to Achieve Organization/Bank Excellence”—Dr.
D.D. (Don) Warrick, Prof, of
Management University of
Colorado and Pres, of The
Warrick Agency Training
and Development Company,
Colorado Springs, Colorado.
4:30 Visits to Exhibits and Exhi­
bitors’ H ospitality Suites—
6:30 Reception—Courtyard
7:15 C o n v e n tio n B a n q u e t —
Frankfurt-Essen Room
8:30 Entertainm ent: Comedian
G len n H a y w o o d — ‘ ‘The
Haywood Happening”

(Turn to page 55, please)


New Norwest
A Jewel
for Minneapolis
ONSTRUCTION of the new Norwest Center, a 57story office tower being built in downtown Min­
neapolis, has gotten underway.
Located on Marquette Avenue between Sixth and
Seventh Streets, Norwest Center is being constructed
on the site of the old Northwestern National Bank
•B uilding, which was destroyed by fire on Thanksgiv­
ing D ay 1982. The 772.5-foot tower will contain
1 , 1 0 0 ,0 0 0 rentable square feet above street level, plus
2 0 0 ,0 0 0
square feet of parking and storage space on
four levels below ground level. Of the 57 stories, 55 will
• b e occupiable.
Lloyd P. Johnson, Norwest chairman, president and
CEO, said the primary objectives in the project planning
were “to have an architecturally significant building
that would be an asset to us and this community and
•co n stitu te a sound financial undertaking for Norwest.”
Gerald D. Hines, whose firm is the developer and
manager of the property, said the structure is more
than 65 percent leased. Norwest Corporation, Norwest
Bank Minneapolis and other Norwest affiliates will oc•c u p y approximately 450,000 square feet, housing
1,900 Norwest employees. The law firm of Faegre &
Benson will have about 160,000 square feet of office
space. Deloitte, Haskins & Sells, an accounting firm,
will lease approximately 46,000 square feet. Other ten­
a n t s will include major financial services, legal and ac­
counting firms.
The exterior facade of the Norwest Center tower will
feature a combination of glass and beige-colored “Kasota” stone, accented with white marble. Kasota stone
®is quarried at Mankato in southern Minnesota.
Architect Cesar Pelli said there will be a series of
well-defined setbacks at the lower levels, matching the
heights of surrounding buildings and additional set­
-b a c k s toward the top of the building. The setbacks
w start occuring about one-third of the way up, occur
again about two-thirds of the way to the top and finish


.(Please tu rn to page 54)
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis

ÊSs i





E ffectiv e leadership is a p u zzle
with m any p ieces. You’ve already
d isco v ered that a lead er doejs the right
things, with a clear se n s e of direction
and the ability to com m unicate it.






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

A. lead er listen s m ore than sp ea k s
The m astery of com m unication is
in sep arab le from leadership.

A lead er is*consistent, reliable,
and trustworthy —
lead in g for the ben efit of your people.

A lea d er ulses power w isely, know ing
p eo p le support that w hich they create.
And w hen your work is done, your
p eo p le say, “ We
did it o u rse lv e s.“
Federal Reserve Bank of St. Louis


1 here are m any m ore p ieces to the
ead ersh ip puzzle. And a good lead er
lisco v ers new o n es every day.

These thoughts on leadership are broûght to you by the
correspondent banks of Banks of Iowa Inc.
M erchants N a tio n a l B ank
C edar R apids

* 1-800-332-5991

Mattonai B ank
s M oines


M e m b e rs o f

A Statewide Banking Corporation
Federal Reserve Bank of St. Louis

520 W alnut
Des Moines. Iow a 50306

First N a tio n a l Bank
S io u x C ity



(Continued from page 47)

THE history of the old Northwestern National Building will live on
in the new Norwest Center. Several chandeliers were saved from
the old building and will be hung in the rotunda of Norwest center,
and installed in the elevator lobbies.


with a succession of closer setbacks towards the top.
The tops of the setbacks and the top of the tower will
be crowned with polished gold-colored elements. Mr.
Pelli said the tower will “gleam like a jewel” from t h ^
center of the city.
The building will have two main entrances, one on
Sixth Street and the other on Seventh. The Sixth
Street entrance will lead to a great hall, or rotunda,
almost seven stories high, that will serve as a gath er^
ing place and entrance to Norwest’s retail banking fa­
Many artifacts saved from the old Northwestern
National Bank building have been incorporated into
the design of Norwest Center. These include six m onu^
mental 1 0 -foot high chandeliers to be installed in the
elevator lobbies, sculptured bronze plaques that will
serve as decorative elements in the lobby, and cast
plaster commemorative medallions forming a frieze on
the fifth floor level of the rotunda.
The Minneapolis skyway system will connect to the
project at the second floor level adjacent to the rotun­
da. The Norwest Center skyway system will include a
“skybridge” across Marquette Avenue. The center of
the skyway will be filled with color and light as theft
space will be enclosed in yellow-tone glass that will be
very strong and glassier than the rest of the skyway.
The building is scheduled to be ready for occupancy
during the summer of 1988.

Iowa Banking History. . .
(Continued from page 31)
operated in the offices of the IBA, but for the past
three years have been in separate offices in Des
Leading the present staff of 105 people, including
the subsidiaries, requires the talents of a dedicated
professional association executive and Neil Milner has
brought those qualifications to his job as IBA execu­
tive vice president. Recognizing the growing complexi­
ties of the task of properly serving a large, professional
association, Mr. Milner soon began his own separate
program of self-improvement that would enhance his
ability to give IBA the kind of staff direction it would
need in a rapidly changing political and economic cli­
mate. Few members know how many hours he spent
nights and weekends studying courses furnished by
the American Society of Association Executives, and
traveling weekends to appointed locations for written
His executive talents and organizational abilities
were recognized by his fellow ASAE members when
they elected him to the ASAE board in 1982, an as­
signment he completed last month. In addition, fellow
ASAE members awarded him the Golden Key Award
as one of the only three members recognized for out­
standing executive management. He was the only
state executive so honored that year. Neil also served
on the ASAE executive committee in 1985-86.

Professional Staff Developed
A s economic pressures drove IBA members to ask
Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

and expect more from their association, services were
expanded to meet those needs. This made it incumbent
to initiate a search for the m ost qualified personnel
who could be added to the staff to address each of
those specific needs. Neil Milner carefully designed®
each step in staff formation, always in close consulta­
tion with the president and the board. The result has
been assembly of a professional staff at every level,
with a continuing monitoring plan in place to make
sure IBA goals and budgets are being met. After hir-ft
ing these professionals and making sure they receive
continuing education of their own as needed, Neil lets
them handle the tasks at hand in their own way, but
obviously each being accountable for the end results. A
strong mark of his tenure has always been his willing-#
ness to recognize each individual for accomplishments
on the job.
This ability to fashion a team that provides IBA
with first-class legislative, educational, marketing and
other services has further enhanced the reputation of®
IBA, not only within the state but in national circles of
banking and legislation. Evidence of this high stand­
ing came when it was made known that Neil was one of
the five finalists being considered for the post of A BA
executive vice president in 1984 when that position®
became vacant. When any discussion arises on accom-

Iowa Banking History. . .
(Please turn to page 98)



Assumption in Sheridan






The board of the FDIC has ap­
proved the assumption of the deposit liabilities of The First National
Bank of Sheridan by First Wyoming
The First National Bank of Sheri­
dan, with total assets of $65.9 million, was closed July 17, 1986 by
Robert J. Herrmann, deputy comp­
troller of the currency and the FDIC
was named receiver.
The failed bank’s office reopened
July 21, 1986 as First Wyoming
The FDIC had announced initially
that a direct payoff of insured de­
p ositors would be undertaken
because no acceptable bids were re­
ceived for the failed bank.
First Wyoming Bank-Sheridan
will assume about $59.8 million in
11,300 deposit accounts and has
agreed to pay the FDIC a purchase

(Continued from page 46)






9:30 Last Visit to Exhibits and
H ospitality Suites
(Piano sing-a-long music in
th e C ou rtyard —H a rriet
Friday, September 26
8:30 C on tin en ta l B r e a k fa s t—
Dresden Room
9:00 In vocation : “ Old Farm
W ives’ Tales”—Pat Leimbach, Vermillion, OH.
9:45 “America Under Deregulation”—Jerome C. Darnell,
Prof, of Finance, University
of Colorado; pres., Darnell
Associates, Inc., Boulder,
10:45 Coffee Break
11 :0 0 Drawing of Prizes
11:30 Convention A djournm entKelly Dakken, ICBND President
Federal Reserve Bank of St. Louis

premium of $185,000. It also will
purchase certain of the failed bank’s
loans and other assets for $37.6 mil­
lion. The FDIC will retain assets of
the failed bank with a book value of
about $28.3 million.
In lieu of making a cash advance
to the assuming bank, the FDIC will
provide a note receivable of about
$ 2 2 million, payable in one year and
bearing an interest rate of 7 percent.
The assuming bank elected this op­
tion instead of receiving the custo­
mary cash advance.

Pay Off Approved
In Medicine Bow
The FDIC has approved paying
off insured depositors in Medicine
Bow State Bank. The bank, with
total assets of $4.6 million, was
closed on August 8 , 1986 by Wyom­
ing State Examiner Stanley R.

Named in Bismarck
Lenae Iverson has been named as­
sistant vice president, credit depart­
ment manager of Norwest Bank B is­
marck, N.A.
She was previously assistant vice
president, commercial loans for the
bank. Ms. Iverson has also worked
as an accountant for the city of Bis*
marck and as a bank examiner for
the North Dakota department of
banking prior to joining Norwest in

NDBA Group Meetings Planned
The North Dakota Bankers A sso­
ciation has recently announced the
agenda for the four North Dakota
group meetings. The program fol­
2:30 Opening remarks - group
2:30 Address: Ray Pritchett, re-

Hunt, and the FDIC was named re­
A payoff of insured depositors
was required because no bids were
received for the failed bank.
Deposits in Medicine Bow State
Bank totalled about $4 million in
900 accounts, including about
$4,000 in 11 accounts that exceeded
the federal insurance lim it of
$100,000. Owners of such uninsured
deposits will share proportionately
with the FDIC in the proceeds rea­
lized from liquidation of the failed
bank’s assets.

V.P. Retires in Casper
Howard Bauder, vice president of
Norwest Bank, Casper, is retiring,
after 46 years in
Beginning as
an auditor in
19 4 0 a t th e
H a s t in g s N a ­
t io n a l B a n k ,
Hastings, Neb.,
Mr. Bauder, in
turn, served as
vice president of
P u e b lo B a n k
and Trust, Pueblo, Colo.; president
of Boulder National Bank, Boulder,
Colo.; vice president of First Na­
tional Bank, Fort Dodge, la., and
most recently as vice president of
the Norwest Bank.

view examiner, FDIC, Kan­
sas City, Mo.
3:15 Association update - ND BA
President Harvey Huber,
p resid en t, U nion S ta te
Bank; N D B A PresidentElect John Pierson, Norwest
Bank Minot.
3:30 Presentation on benefit pro­
grams available through
NDBA Insurance Services,
4:00 “ The Thrill of M anage­
m ent” - J.N. Chris Chris­
tianson, Idea M ountain,
Inc., Scottsdale, Ariz.
5:30 Social Hour
6:30 Dinner
7:30 Remarks by group president
7:45 Adjournment
The group dates and locations are as
Sept. 15-Park River-Northeast
Sept. 16-Lake Metigoshe-Northwest
Sept. 17-New Salem-Southwest
Sept. 18-Valley City-Southeast
Northwestern Banker, September, 1986


other things, the tender of at least
51% of the common stock of FNB
Bancorp, Inc., and to regulatory ap­
* * *

Three Named in La Crosse
Aaron J. Hanson, vice president
of the Exchange State Bank in La
Crosse, has been appointed presi­
dent of the bank, succeeding Donald
Rice, who died recently.
Mr. Hanson joined the bank in
1962 and was appointed vice presi­
dent in 1964. He has also worked
with the First National Bank of
Dekalb, 111. and the Dakota National
Bank in Fargo, N.D.
Howard T. Mills and Richard O.
Peterson, assistant vice presidents
of the bank, have been appointed
vice presidents.
Mr. Mills joined the Exchange
State Bank in 1978. He worked pre­
viously as a bank examiner for the
Office of Commissioner of Banking
for Wisconsin for 10 years.
Mr. Peterson joined the bank in
1985. Prior to that he worked for the
Office of Commissioner of Banking
for Wisconsin as a bank examiner
for three years, and was vice presi­
dent of the Bank of Onalaska for 12

Staff Changes in Madison
New staff responsibilities have
been announced by First Wisconsin
N ational Bank
of Madison. Ron­
ald E. Roder,
senior vice presi­
dent, has been
named manager
of th e r e ta il
b a n k in g d iv i­
sion. He will be
responsible for
the Money Cen­
ter and the facili­
ties management department. Wil­
liam O. Steinberg, who previously
headed the retail banking division,
has left the bank to pursue other in­
Norbert J. Christopher, vice presi­
dent, has transferred to the retail
banking division to coordinate the
Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

lending activities of that division.
Kenneth A. Poniewaz has been
named to replace Mr. Roder as con­
troller and manager of the control­
ler’s and operations division and
promoted to first vice president.



David D. Sullivan has joined First
Colonial Bankshares Corporation as
vice president of
investments. He
joins the bank
from Paine Web­
ber, Inc., Chi­
cago, where he
was a regional
investment sales
e x e c u tiv e . He
was also vice
president of ino.D. SULLIVAN
v e s tm e n ts for
the Millikin National Bank of
* * *
William H. Samuels has joined
Affiliated Banc Group as manager
of commercial real estate. Previous­
ly, he was executive vice president
and chief credit officer for Heller Fi­
nancial, Chicago.



In addition, Londa J. Dewey,
manager of First W isconsin’s West
Towne office, has been promoted to
assistant vice president.

Three employees of the Bank of
Commerce & Industry have been
elected to officer positions. Newly
elected are: Linda D. Ciasnocha,
Joined in Appleton
teller operations officer; Anna Marie
John D. Brewster has joined the Dwyer, building services officer, and
Valley Trust Company, Appleton, as Bernice Pacholski, personal banking
vice president, sales. He will be re­ officer.
sponsible for the marketing of retire­
Ms. Ciasnocha and Ms. Dwyer
ment plans in the Fox River Valley has been with the bank since 1980.
Mr. Pacholski joined the bank in
Prior to joining Valley, he was 1973.
with John M. Floyd and Associates,
* * *
Inc. as midwest marketing represen­
Lake View Bank & Trust Co. of
Chicago has completed an extensive
Named in Brown Deer
expansion and remodeling of its Lin­
Ann Horning has been named a coln Park facility, located at 538 W.
commercial banking officer by Diversey.
Brown Deer Bank. She joined the
The renovation, which nearly
bank as a credit analyst in 1985.
doubled the size of the facility, pro­
vides for additional teller and per­
sonal banking stations.
(Continued from page 39)
First Oak Brook Bancshares,
Inc., an Oak Brook based multi­
bank holding company, has offered
to purchase up to 1 0 0 % of the com­
mon stock of FNB Bancorp, Inc.,
holding company for First National
Bank in Chicago Heights, for $72
per share cash.
The offer is subject to, among

Two Promoted in Elmhurst
Peter S. Groninger has been pro­
moted to vice president, and Cheryl
Giacobbe to assistant vice president
at Illinois Marine Bank, N.A., Elm­
Mr. Groninger joined the bank in
1982. Ms. Giacobbe has been with
the bank for almost eight years.

in the industrial products market of
metropolitan banking. Mr. Carlson
joined the bank in 1981 and is man­
ager of asset management services’
securities movement and control de­
Ms. Hoffman joined United Bank
in 1974 and is a securities trader
with United Capital Management.
Ms. Kaboth has been with the bank
since 1981 and is a loan analyst in
loan administration services.

United Banks to Acquire
IntraWest Financial Corp.











into the present First Interstate
Bank of Denver.
The remaining banks in Intra­
West and other subsidiaries have
continued until now as a separate
holding company. IntraW est’s larg­
est bank at this time is the $152 mil­
lion asset IntraW est Bank of
Greeley, N.A.

United Banks of Colorado, Inc.,
and IntraWest Financial Corpora­
tion, both based in Denver, have
signed a definitive agreement for the
acquisition of IntraWest by United
Banks. The agreement provides for
the issuance by United Banks of
shares of its common
stock in exchange for all IntraWest CNB Makes Staff Changes
stock, which will result in an exMichael J. Matthews has been
change of approxim ately .7234 elected president of Colorado Na­
shares of United common stock for tional Bank—Southwest, Littleton.
each share of IntraWest common He replaces Edward B. Sturges, who
stock. The acquisition is subject to is pursuing other banking interests.
approval by both IntraWest stock- Mr. M atthews has ten years bank­
holders and the Federal Reserve ing experience, most recently with
Columbine Valley Bank & Trust.
The transaction will be in the
At another CNB affiliate, in Pueb­
form of a merger, and is intended to lo, Debbie Valdez has joined the
qualify as a tax-free reorganization, bank as mortgage loan officer. She
accounted for as a pooling-of-inter- has nine years of experience in mort­
gage loans.
IntraWest, organized in 1967, is
the fifth largest bank holding com­ Promoted in Denver
pany in Colorado, with total assets
At Cherry Creek National Bank,
of $1.15 billion at June 30, 1986. The
Patricia Cook and Ronald
company currently operates 16
been promoted to vice
banks in Colorado, a mortgage bank­
ing company, an insurance agency, a president in the lending division,
reinsurance company and a leasing and Marena Tharnish was appointed
loan operations officer.
Ms. Cook and Mr. Reich both
United Banks, with $4.7 billion in
assets, is one of the largest multi­ joined the bank in 1985 and had
bank holding companies in the been assistant vice presidents in
Rocky Mountain region, with 32 af- commercial lending. Ms. Tharnish
filiate banks in the state and several joined the bank in 1975 and held
positions in customer service, loan
non-bank subsidiaries.
executive secretary and
IntraWest formerly was a part of
loan processing.
First N ational Bancorporation,
whose principal subsidiary was
First National Bank of Denver, then United Bank Names Five
the largest bank in Colorado. The
At United Bank of Denver, Eve
name was changed to IntraWest M. Dann has been named vice presi­
about five years ago, then in 1982 dent and Andrea G. Burton, David
the lead bank, IntraWest of Denver, M. Carlson, Leona F. Hoffman and
was sold to First Interstate Bancor­ Linda P. Kaboth were named assis­
poration of Los Angeles. First Inter­ tant vice presidents.
state had earlier acquired the Ameri­
Ms. Dann joined the bank in 1979
can National Bank of Denver, so it and works in the corporate banking
merged the former American Na- group. Ms. Burton has been with
tional and the former First National United Bank since 1978 and works
Federal Reserve Bank of St. Louis

* School Honors Denver Banker
At its commencement exercises
held last month, The Graduate
School of Banking at Colorado pre­
sented a special award in memory of
Merlin C. Williams to his widow,
Marguerite Williams.
Mr. Williams, who died last year,
was president of the Colorado State
Bank in Denver. Throughout his 40year career in banking, he had been
very active in the educational pro­
grams for commercial bankers. He
was a 1956 graduate of The Gradu­
ate School of Banking at Colorado
and a 1961 graduate of the Stonier
Graduate School of Banking at Rut­
gers University.
He taught “Bank Management’’
at the American Institute of Bank­
ing in Denver, was president of the
Suburban Clearing House Associa­
tion, chairman of the Rocky Moun­
tain Chapter of Robert Morris,
chaired several Colorado Bankers
Association committees and served
on the board of trustees of The
Graduate School of Banking at Colo­

Three Named in Englewood
First Interstate Bank of Engle­
wood has announced the addition of
Joan Adkins as vice president, cash­
ier and manager of operations. Ms.
Adkins moved to Englewood from
Hobbs, N.M., where her most recent
position was vice president, opera­
tions administrator for the First In­
terstate Bank of Lea County. She
has over 13 years experience with
the First Interstate system.
Jan Nevers has joined the bank as
vice president and manager of per­
sonal financial services. She has nine
years experience with First Inter­
The bank also announced the ap­
pointment of Ron James as control­
ler. He has eight years experience
with First Interstate Bank of Engle­
Northwestern Banker, September, 1986


Welcome from the Bankers' bankers
Whether you come to talk
business, to renew long-term
friendships, or to make new
ones, the Iowa Bankers Associ­
ation convention is a valuable
While you're here, we hope
you'll take time to come in
and visit with our Bankers'
bankers — Steve Brewer, Patti
Campbell, Ben Eilders, Brad
Hansen and Don Jordahl.

Banker, September, 1986
Federal Reserve Bank of St. Louis

Des Moines, Iowa 50304
Member FDIC, Federal Reserve System


* “ Renewal-Involvement-Celebration”
Iowa Bankers Association 100th Annual Convention
Des Moines Convention Center
September 14-16
ROMISING to be one of the m ost celebrated, the
Iowa Bankers Association’s
th annual conven­
tion will be held September 14-16 in Des Moines. The

convention center will serve as the official headquar­
ters for the festivities and offers a convenient, central
location in downtown Des Moines.
“Renewal, Involvement, and Celebration’’ is this
year’s theme. The opening ceremonies on Monday
morning will begin the convention festivities with a
bang and are something you won’t want to miss. The
convention will look back on the last century of service
and look forward to the beginning of another.
In announcing the convention program, IBA Presi­
dent J. Bruce Meriwether noted the strength of the
IBA over the last 100 years. Although there have been
hardships to overcome - two world wars, the Depres­
sion, the issues of the 1960s, the current ag crisis and
criticism from the press - Mr. Meriwether says the as­
sociation remains strong, and what better way to cele­
brate than at the convention.
Working with Mr. Meriwether this past year as IBA
president-elect has been Russell Howard, chairman of
Mahaska Investm ent Company, Oskaloosa. He is sche­
duled to assume the presidency during the annual busi­
ness session. Treasurer this past year has been Fred
Hagemann, president of the State Bank of Waverly,
Waverly. The IBA full-time staff is headed by Neil Mil­
ner, executive vice president, who is assisted by Wes
Ehrecke, vice president, government relations; Marva
McCarty, vice president, membership services, and
John Sorensen, vice president, administrative services,
in the Des Moines headquarters.
Highlighting this year’s convention will be “ Sunday
In The Park,” an evening of musicial celebration
planned especially for Mr. Meriwether and his wife
Shirley. Held at Hoyt Sherman Place, the casual even­
ing will be a return to nostalgia as a kick-off to this
centennial celebration. Entertainment will be per­
formed by “Liberty,” a 150-member choir and 35-mem­
ber orchestra who also performed at the Statue of
Liberty presentation.
Roger Williams will perform two concerts on Mon­
day evening at the Des Moines Civic Center.
A new feature has been added to this year’s conven­
tion. Concurrent sessions have been scheduled for
Monday and Tuesday afternoons. Topics are varied
and highlight such important subjects as product pric­
ing and non-interest income; sales strategies; asset/liability management; the federal tax reform plans; hand­
ling regulators effectively; banking in stressful times;
EFT/POS and their impact; the double jeopardy issue,
and managing problem agricultural loans. Twelve con­
current sessions will be offered, and everyone is en­
couraged to participate in four sessions.
Federal Reserve Bank of St. Louis








Exec. Vice President

A number of education sessions have been planned,
including talks from native Iowans Hugh Sidney, con­
tributing editor for T im e Magazine, and Steve Bell,
ABC-TV newsman. Johnny Orr, Iowa State Univer­
sity ’s basketball coach will also speak.
The grand finale of the 1 0 0 th convention will be the
Tuesday Night Inaugaral dinner and show. The evening
will include dinner, formal installation ceremonies for
IBA officers, entertainment and a drawing for fabu­
lous prizes.
Following the dinner, incoming IBA president, Rus­
sell S. Howard will be introduced, along with the new
president-elect, Clair J. Lensing, and treasurer Fred
Providing the evening’s enterainment will be “The
Great Pretenders,” a four-man Minnesota group fea­
turing country and gospel music, sprinkled with come­
The convention program follows, along with the
spouse program. Spouses are invited to attend any of
the general sessions.
Northwestern Banker, September, 1986


Iowa News




Sunday, September 14
1:00 Registration desk opens, first floor, Conven­
tion Center.
1:00 Exhibit Hall opens, second floor Convention
4:30 “Sunday In The Park,” Hoyt Sherman Place.

Monday, September 15
8:00 Registration desk and Exhibit Hall open.
8:30 General Session; second floor Convention Cen­
ter; Opening Ceremonies.
9:15 Nancy Austin, co-author of the book “A Pas­
sion for Excellence.”
10:00 Steve Bell, news anchor, ABC’s “World News
This Morning” and the news segments of
“Good Morning America.”
1 1 :0 0 Entertainment and prize drawing, Exhibit
Hall. Lunch available at your own expense in
the Exhibit Hall.

1:00 Concurrent Sessions; second floor Convention
• “Product Pricing and Non-Interest Income”
—Mike Moebs, G.M. Moebs & Associates, Lin­
coln wood, 111.
• Regulator Panel
Representatives from the FDIC, Comptroller
of the Currency, Federal Reserve and the State
Department of Banking.
• “McDonalds and Banking?”—Peter Vergis,
Sales Earnings Group, Inc., Greenlawn, New
• Asset/Liability Management—Phillip Rowley, senior vice president and chief financial of­
ficer, First Interstate Bank of Des Moines,
• Profitable Investment Portfolio Manage­

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis




m ent—Nick De Leonardis, senior vice presi­
dent and treasurer, and Joan LaPiana, trea­
sury officer, LaSalle National Bank, Chicago.
• When the Media Knocks, Don’t Panic—Arch
Lustberg, president, Arch Lustberg Communi­
cations, Washington, D.C.
Concurrent Sessions repeated
General Session; President’s Report
Johnny Orr, Iowa State University Head B as­
ketball Coach
Approximate adjournment
Roger Williams, Des Moines Civic Center
Roger Williams, Des Moines Civic Center

Tuesday, September 16
7:00 Registration desk and Exhibit Hall open
Ag Breakfast
• “The Grain Outlook: Storage or Fire Sale?”—
Lawrence De Witt, president, Flour Milling Di­
vision, Cargill Inc., Minneapolis
• “The Transition in Agriculture”—A1 Tubbs,
president, First Central State Bank, DeWitt,
and former chairman, A g Division of American
Bankers Association, Washington, D.C. and
Mike Fitch, current A BA A g Chairman, and
vice president, Agri Business Affairs, Wells
Fargo Bank, San Francisco
9:00 General Session; second floor, Convention Cen­
ter “Futureview: A Look Ahead”—Daniel Burrus, science futurist, Waukesha, Wis.
10:00 “The Presidency”—Hugh Sidey, Washington
contributing editor for T im e magazine
11:00 Fifty-year banker/past officer reception and
luncheon; entertainment and prize drawing in
Exhibit Hall. Lunch at your own expense in
the Exhibit Hall.



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Iowa News


12:30 Anniversary Party, Exhibit Hall
1:00 Concurrent Sessions
• “Banking in Stressful Tim es“—Dr. Stephen
Douglas, psychologist, W hetstone Medical
Center, Columbus, Ohio
• “EFT/POS — Their Impact on Tomorrow’s
Banking“—Dale Dooley, president ITS, Inc.,
Des Moines, and vice president, IB A
• “ M anaging A g Problem Loans“ —Dr.


Michael Boehlje, Head of the Department of
Agricultural and Applied Economics, Univer- ^
sity of Minnesota, St. Paul
• “When Push Comes to Shove: Controlling
Your Regulator“—Mary Curtin, attorney,
Lindquist & Vennum, Minneapolis
• “L et’s Talk Double Jeopardy’’—(speaker to q
be announced)
• “The Impact of the Tax Reform B ill“—
Charles Orr, tax partner, McGladrey Hen­
drickson & Pullen, Iowa City
Concurrent Sessions repeated
General Session; second floor, Convention Cen­
Executive vice president’s report
“State of the Economy’’—Murray Weiden- q
baum, former chairman of President Reagan’s
Council of Economic Advisors; director, Center
for Study of American Business, Washington
University, St. Louis.
Approximate adjournment
Inaugural Dinner and Show featuring the
Great Pretenders.

S p o u ses’ Program
Tuesday, September 16
8:00 Exhibit Hall and Crafters Gallery Open
8:00 Scherenschnitte workshop
Mushroom Baskets workshop
8:30 Village Welcome Sign workshop
Tin Punch Luminary workshop
9:00 The Art of Accessories workshop
10:00 Kate Kasten Brunch
11:45 Neil Simon’s “Sunshine Boys,”
Luncheon Buffet Dinner
P.M. 1:00 Shopping at Southridge Mall
1:30 Your Personal Creation workshop
Ribbon Roses workshop
1:30 Santa With Toys workshop
1:45 Reception with Iowa’s First Lady and
Terrace Hill Tom4:15 Spouse Program Closing Ceremonies and
Grand Prize Drawing
6:30 Inaugural Dinner and Show featuring
Great Pretenders




Monday, September 15
8:00 Exhibit Hall and Crafters Gallery Open
8:15 Church and Synagogue Tour
8:30 Tin Punch Luminary workshop
Village Welcome Sign workshop
Rag Basket workshop
Smocked Christmas Ornament workshop
9:00 Your Personal Creation workshop
11:45 Younkers Luncheon & Style Show
1:45 Shopping at Valley Junction
(If rain, Valley West Mall)
1:45 Stenciled Lampshade workshop
2:00 International Wine Tasting Seminar
2:00 The Art of Accessories workshop
Ribbon Roses workshop
4:00 Johnny Orr, head basketball coach,
Iowa State University—General Session
6:00 Roger Williams concert
8:30 Roger Williams concert



Banker, September, 1986
Federal Reserve Bank of St. Louis

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Northwestern Banker, September, 1986


Iowa Newa

“My thrust was to remain positive in
seeking a solution for our ag crisis”
A N orthwest ern B a n k e r interview with
Executive Vice President
Iowa Bankers Association
THINK when I decided I might
I be a candidate for president of
the Iowa Bankers Association that I
had really little actual perception of
what the timing was going to be
when I actually became president.
Especially, relevant to the economy
of the state and particularly as it af­
fects banking, but driven, of course,
by the deterioration of the ag eco­
nomy. I have to be very honest and
say that had I known that, or had I
foreseen the severity of that, then in
all honesty I probably might have
had second thoughts about my abili­
ty to serve as president because I do
not come from a real strong agricul­
tural background.”
That frank assessm ent of the situ­
ation in Iowa as it affects the IBA
presidency is typical of Bruce Meri­
wether’s always open, frank discusion of any situation. He analyzes
carefully and speaks directly. Con­
tinuing with that same openness, he
“ I think one of the other things
that was a great concern to me, one
of the disappointments, was the ap­
parent need to re-do the image of
banks and bankers, because I
thought that was something, at
least, that was not necessary or was
a bad rap.
“It became very apparent to me
that if we—and when I say ‘w e,’ that
Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

goes for the ABA, the IBA, the inde­
pendents or any other group con­
cerned with the problem—if we
spent the entire year defining the
fault of the whole thing w e’d com­
pletely waste our time. What had
happened, had happened. We had to
get on with the attack on the solu­
tion. So, I guess my hope is that my
thrust as president of the associa­
tion was to remain positive in an ap­
proach for rebuilding the credibility
of the banking industry as well as the
economic future of this state, maybe
even the midwest, because I did
have an opportunity to participate
on a national scale relative to agri­
culture and its problems.”
The regional and national level
participation was described as fol­
lows: “We had spent time in dialo­
gue with the Central States Confer­
ence group, which are all midwestern bank association executives and
presidents, on the midwest problem
and, of course, the ag crisis has been
the Number One subject with that
group. Then, on perhaps a farther
reaching level than just totally re­
gional discussion was my participa­
tion on the A BA Special Presiden­
tial A g Task Force, which included
representatives from all the midwestern states.
“ It was a joint effort between the
ABA and the IBAA. That Task

Force operated primarily at the fed­
eral level, where we tried at times it
seemed in vain, to present a pro­
gram we had established to the regu­
lators in particular, as well as mem­
bers of the Congress; but, I say in
vain, trying to emphasize the seri­
ousness of the agricultural situation
in all of the states represented. It
was our combined feeling that the
impact was n o t being measured pro­
perly in Washington. We asked for
capital forbearance consideration by
the regulators, for which we ulti­
mately received some success by the
later joint resolution of the FDIC,
Comptroller and the Fed to allow
some capital forbearance under
some rules. That in itself was a
breakthrough in attitude, I think,
which gave banks some hope that
there would be more understanding
between the regulators and bank
management people.”
Neil Milner interjected by saying,
“I might mention that a bank could
be in a problem situation and it
would not be a reflection on the man­
agement of the bank. The economic
conditions were such that even a
well-managed bank could be having
problems with their bottom line.”
Bruce picked up on this point by
stating, “We made it clear that we
were not asking for a bailout of poor
management, but only recognition
that there were some adverse eco­
nomic influences there. We wanted
to give banks that had earning capa­
bilities the opportunity to earn their
way out of these problems.”
Neil added that “The same kind
of assistance we felt the farmers and
businessmen needed to work their
way out was needed by the banks
that were financing them .” Bruce
agreed, noting, “That’s the same ap­
proach we used in our Task Force
meetings. But the fact remains that
it was ‘not fashionable to make di­
rect assistance to banks.’ If we could
have contrived a way, and we were
to ld this, to structure assistance for
farmers, then that would be more
politically acceptable, particularly
in an election time frame here. We
were told that the capital forbear­
ance program, even though accep­
table by the regulators, would have
problems if it became a legislative
question; so, thereby, the political
process gets involved in all of this,
you see.”
With all of this frustrating, ad­
verse reaction from Congress and
other bodies, how did an IBA plea

Io w a N e w s

for optimism and a positive attitude
set with IBA members? Bruce com­
mented readily on that.
“In regard to the Phil Donahue
Show (special broadcast last Febru­
ary from Cedar Rapids on the farm
issue), there was one thing about the
experience a fte r the show which
made a great impact on me. Any­
body who was there after the lights
were off could have observed that
there was literally a line of people
waiting to come up to me and say
something and I was wondering,
‘My goodness, what is that going to
“There were obviously all farm
people at this program and every
one of them—and I think there were
about 50—came up and expressed
first, their gratitude for our partici­
pation in that program and second
to make sure that I understood and
could tell somebody that they were
‘not mad at bankers, just the countrary. W e’re relying on you bankers
as we have for so many years, just
as our fathers did before us, to exer­
cise your contacts and your abilities
to get us out of this crisis.’ And
some of them—and I don’t mean to
be traumatic here—but some even
with tears in their eyes said, ‘If you
bankers don’t help us, because you
understand us the best, then who
can we turn to? The government
isn’t going to do it, the activist
groups aren’t going to do it. We
need your influence on not
be discouraged.’
“That made a significant impact
on me because it would not have sur­
prised me if all those 50 people had
come up to me and said, ‘You no­
good, rotten banker! You got us into
this problem because th at’s what
I ’ve been reading all along!’ That
was one experience that was most
significant to m e.’’
What was the reaction of bankers
around the state to their president’s
call for positive action! “They appre­
ciated the fact that the Iowa Bank­
ers Association was diligent in its ef­
forts to look for solutions and not
dwell on the problems. They compli­
mented us many times on our will­
ingness to meet with the social
groups that had become involved in
this problem, and rightfully so.
“That, I would have to say, was
another major part of the year that I
felt very good about, that we did
reach out and create a dialogue with
the Prairie Fire people, Rural Life
Conference, the mental health group
Federal Reserve Bank of St. Louis


“50 farm people told me
after the Donahue show:
‘We’re not mad at bankers
...we’re relying on you
...if you don’t help us,
who can we turn to?’ ’’
—Bruce Meriwether
people and all the genuinely inter­
ested farm groups. And, I think that
although it takes a long time for
those kinds of activities to sift out,
that we still made a difference in the
attitude out there, that neither the
banking side nor the social group
side could any longer say we weren’t
interested in the people portion of
the problem. The people on the other
side could not say they hadn’t been
exposed to the economic side of the
Was this dialogue with the Ag
Social Concerns Group of short-term
or long-term duration? Bruce said,
“That needs to be taken further, in
my opinion. It needs to be put in a
priority mode so that a meaningful
agenda can be established by the
group because I think they can do
great things. We can do great things
together. I can recall in one instance
that on legislation in regard to the
mediation bill in the part dealing
with m a n d a to ry mediation, that it
almost blew the legislators away
when they saw the IBA and all those
groups working together in agree­
ment, addressing this particular
issue from that standpoint. It can be
done. There are things we can agree
on. There are things we will probab­
ly n e v e r agree on.’’
Neil Milner, who was actively
part of that group with Bruce Meri­
wether and a couple of other IBA of­
ficers and staff people, recalled also
that “the farm group members of
the A g Social Concerns Group sup­
ported the IBA in the legislature on
another important issue. That was
to authorize foreign loan protection
in the event of real estate loans fore­
closed in the event of default. It was
a change in the Corporate Farm Bill,
which is sacred to those groups.
That was a direct result of what
Bruce was talking about. The fact
was that we recognized the need for
mediation and the Hot Lines, both
of which we supported not only
philosophically, but financially, in
their need to work with people, and

they recognized this change we
sought was one of the tools we were
asking for as a way of helping us to
be able to work with people. This
enabled Rabobank, for example, to
take over loans in default that had
been through M ASI by banks in
Iowa and other midwest states a
part of MABSCO.’’
Bruce stated emphatically, “ I be­
lieve we bankers would never have
considered mediation, even seen the
importance of mediation, had we not
been meeting with these groups,
particularly with the mental health
people at that organization. Is that
saying we’re short-sighted? Some­
times we are, but I just don’t think
w e’d have gotten to where we are
now without the dialogue. Other­
wise, mediation would have been
another red tape involvement for us
that normally, as bankers, we would
not have perceived as in our interest.
“Finding that we could agree with
them was a direct result of just sit­
ting down and talking. Not arbitra­
tion, you understand, but mediation,
and Mike Thompson, who is in
charge of the mediation process,
made that distinction clear—that ar­
bitration is n o t a part of this pro­
Bruce chimed in again, “But with­
out visiting with him and those
other groups we would never have
defined it that way. W e would have
defined it, I think, in a negative way.
Because of those contacts with Mike
and others in that Social Concerns
Group, I was also personally able to
refer three bankers who were having
real stress difficulties to the right
people. You always wonder if that
may have saved another tragedy
like the one that we all lived under
this year, too, which happend to oc­
cur in my year as president.’’ (Bruce
referred to the senseless shotgun
slaying of popular John R. Hughes,
46, president of Hills Bank & Trust

(Turn to page 8 8 , please)
Northwestern Banker, September, 1986


Io w a N e w s

You Will See Them at the 100th
Annual Iowa Bankers Convention

dent; Peter H. McGuire, Wayne L.
Bismark, Delmar Rogers, Jr., James
R. Daly and William Crawford, vice
presidents; Therese Kammholz, as­
T HE 100TH annual convention of Lawrence E. McGrath, senior vice sistant vice president; William Mouthe Iowa Bankers Association president and cashier, and Harlan cka, investm ent officer, and Ken­
will be held September 14-16 at the D. McCaw and Margaret E. Billings, neth Petropoulos, assistant to offi­
Des Moines Convention Center. Of­ vice presidents.
ficers and representatives of larger
Northern Trust Company: Mr.
banks from major banking centers
and Mrs. John V.N. McClure, senior
American National Bank: Dennis vice president; Mr. and Mrs.
in the Midwest will be attending the
F. Reher, second vice president and Michael L. Kubacki, vice president;
Following the list of bankers plan­ Peter S. Hilton, correspondent bank­ James F.T. Monhart, second vice
ning to attend is a list of personnel ing officer.
president; Susan Lang Berry, com­
from investment, service and equip­
Continental Bank: Robert C. mercial banking representative, and
ment firms registered for the con­ Vasko, senior vice president; Philip David Bishop, bond sales represen­
C. Adams, vice president; Mary K. tative.
Nihlean and David C. Johnson, sec­
Cedar Rapids
Des Moines
Merchants National Bank: Henry ond vice presidents; James E.
Bankers Trust Co.: John Ruan,
Royer, president; Robert S. De- Honan, Jr., banking officer; Wil­ chairman; John Chrystal, president
Waay, executive vice president; liams W. Buford, treasury and se­ and CEO; Dennis R. Wood, execu­
Jerry N. Trudo, Terry M. Martin, curities officer, and Barry L. Bob- tive vice president; Ben G. Eilders,
Richard E. Retz and Dennis O. Ear- row and David U. Drake, banking senior vice president; Donald H. Jorhart, vice presidents, and Stanley R. associates.
dahl, vice president; Bradley J. Han­
Drovers Bank: Frank E. Bauder, sen, assistant vice president, and
Farmer, Gary L. Bartlett and
Robert J. Louvar, assistant vice chairman; Robert F. Corey, execu­ Steven D. Brewer, commercial bank­
tive vice president, and John J. ing officer.
Peoples Bank and Trust Co.: Ted Crotty, Jr., and Max A. Roy, senior
First Interstate Bank: Robert G.
J. Welsh, chairman; John M. Sagers, vice presidents.
Millen, president and CEO; James
president and CEO; Don G. Ellis, ex­
LaSalle National Bank: Nicholas W. Eiler, executive vice president;
ecutive vice president and COO; J. De Leonardis, senior vice presi- Randy P. Steig, Kenneth D. Danilson, William V. Mullins, vice presi­
dents; Kenneth R. Malecha, corres­
pondent banking officer; Eric Paul,
manager, investm ents; Dean E.
Roth and Joan Thompson, invest­
ment officers, and Brian Hughes, in­
B an k In s u ra n c e S p e c ia lis ts
vestment representative.
8555 Harbach Blvd., Des Moines, IA 50311 • (515) 223-6205

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Into Investm ent

Mark Havemann

Banker, September, 1986
Federal Reserve Bank of St. Louis

Ask us how
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Sept. 14-16

Norwest Bank Des Moines:
George F. Milligan, chairman and
CEO; H. Lynn Horak, president and
COO; John P. Rigler and Gary

McClimen, vice presidents; Mark E.

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----------------------A N D

T R U S T C O M P A N Y ----------------------



Northwestern Banker, September, 1986


Io w a N e w s

Conway, Tom Quinlin and Jay D.
Nichols, second vice presidents;
Dorothea A. Wolfe, administrative
officer; Kent C. Mericle, assistant
vice president, NIB and, Lowell
Barkley and Bill Kloberdanz, NIS.
Valley National Bank: H. Peter
De Rosier, vice president.

American Trust & Savings Bank:
Nicholas J. Schrup, chairman; Wil­
liam D. McGeehan, president, and
Leo F. Kane, executive vice presi­

Kansas City
United Missouri Bank: Mick
Aslin, president; Lyle Wells, vice
chairman; Phil Straight, Larry Rus­
sell and Kirk Vaughan, executive
vice presidents; Dick Muir, Janet
Kelley and Jeff Goble, vice presi­
dents; Mark Bailey, bond invest­
ment officer, and Steve Loveless, in­
vestment representative.

First National Bank: Richard C.
Swanberg and Kenneth A. Wales,
senior vice presidents; Sally Laux,
vice president; Donald D. Mikelson,
assistant vice president; Christo­
pher Wilson, bond investment repre­

sentative, and Peter J. Mehlhaff,
correspondent banking officer.

Marquette Bank Minneapolis,
N.A.: Jack Campion, vice president,
and Craig Bishop, investment offi­

merly, vice presidents, and Leroy
Bell, assistant vice president.

Investment, Equipment and
Service Firms
AGRIcareers, Inc., New Hamp­
ton: Jean Eden and Sandi Garner, ag

Norwest Bank Nebraska, Omaha: banking personnel specialists.
Chuck Undlin, president; Bill DewBell & Howell, Waukesha, Wis.:
hurts and Howard Nielsen, vice
presidents; and Tim Tewes, financial
institutions group officer.

Gary K. Nickerson, regional sales
manager and Byron Williamson,
Robert Lidgett, and John Bailey,
sales representatives.
Sioux City
Brandt, Omaha: Jim Grimes and
First National Bank: Max J. Lar­
son, chairman, president and CEO; Ed Bruns, district managers; Steve
Mr. and Mrs. Gary Stevenson, vice Bruns, Herbert Duysen, and Kent
president, and Mark R. Paradise, Marcek, sales representatives, and
Dick Martin and David Grimes,
correspondent banking officer.
Security National Bank: R.E. sales managers.
Central State Health, Omaha:
Hagen, president; Dennis A. Nahnsen and Michael Moreland, vice John Benson and Brenda Frey, re­
presidents, and Wilma Weeks and gional managers.
Ron Kiel, correspondent officers.
Creditor Resources, Inc., West
Des Moines: Frank Shimsky, presi­
National Bank of Waterloo: R. dent; Joe Grabenstein and Jim
Scott Fetner, president; William J. Woolard, directors; Tim Bird, man­
Rickert, Erl Schmiesing, James aging agent; Robert Okerstrom, ac­
Freet, Milt Hennick, Willis Crees count executive, and Dave Carlson,
and Byron J. Loving, senior vice account representative.
Cummins-Allison Corp., Des
p residents; John Cunningham ,
Everett P. Brown, and Dale T. Zim- Moines: Tom Faunce, regional man-

Committed to
making your
bank stand
apart from the
N o P a ra c h u te
That’s how most companies
release or retire employees.
Soften the blow.
Give your employees
outplacement services and
career consulting from

2330 Lincoln Way
Ames, Iowa 50010
Banker, September, 1986
Federal Reserve Bank of St. Louis


From one “old tim er”
to another.



First National Bank of Omaha
is pleased to salute the Iowa
Bankers Association on its 100th
anniversary of service to die
people of Iowa.
We have much in common.
We both know responsive bank­
ing service is vital to the stability
of our communities and our
regions. We’ve both stayed close
to o u r roots, devoted to the
interests of our customers. And
while we both maintain die
Federal Reserve Bank of St. Louis

values and traditions of our suc­
cessful past, w ere both pursuing
our visions of excellence in the
banking industry for die future.
Since 1863, the First National
Bank of Omaha has provided
strength and dependability for its
customers. Since 1886, the Iowa
Bankers Association has provided
leadership and responsive serv­
ice to the banking industry and
the people of Iowa.
And that’s something to be

proud of.
Congratulations, from one
old-timer to another.


first n a tio n a l b a n k
of o m a h a
one first national center, om aha, nebraska 68102
m em ber FDIC • 341-0500
Toll-free In Nebraska 1-800-642-9907
Surrounding states 1-800-228-9533

Northwestern Banker, September, 1986


Io w a N e w s

First Interstate Information Sys­
ager; Ralph Haskins, branch man­
ager, and Tom Catton, representa­ tems of Iowa, Inc., Des Moines: Jim
Fogt, president; Richard Davis, ex­
Data Business Equipment, Des ecutive vice president and COO;
Moines: Waldo F. Geiger, president; Larry Glass, Richard Bro and
Tim Kolb, marketing manager; Jim C lau d e D a w so n , se n io r v ic e
Landuyt, marketing representative, presidents, and Gerry Graff and Bill
Heinzig, vice presidents.
and Lynn Groen, manager.
Kirk Gross Company, Waterloo:
Deluxe Check Printers, Inc., Des
Moines: Bruce A. Christensen, sales Gerald L. Gross, president; Mike
manager, and Dave Roy, sales repre­ Schaefer, sales representative, and
Bob Jamerson, architect.
HBE Bank Facilities, St. Louis:
Diebold, Inc., Des Moines: Roger
Swanson, regional manager; Tim Dennis Whittington, account execu­
Messamer, customer services man­ tive.
ager, and David Brown, sales repre­
IAC Group, Des Moines: Craig
Ross, Kathryn I. Foster and Mark
Douglas Austin & Assd., Toledo, S. Havemann, sales representatives,
Oh.: Dr. Douglas V. Austin, presi­ and Mark Kessel and Mary Quigley.
dent and CEO, and John E. MacArIowa College Aid Commission,
thur, vice president.
Des Moines: Gary W. Nichols, act­
Electronic Office Systems, Des ing executive director; Robert W.
Moines: Edgar A. Herrman, George Paton and John Heisner, directors,
Cochran, and Gary Walther, repre­ and Robert Redman, JoAnn Barnes
and Rose Chapman, field representa­
Evergreen Systems, Inc., Omaha: tives.
Kansas Bankers Surety Co.: Don
Ralph Noren, president, and Ken
Towle, president, and Dave AbendMeredith, sales manager.
roth, vice president.

M & I Leasing Corp., Des Moines:


Gene Monroe, vice president, and

McGladrey, Hendrickson & Pul- ®
len, Des Moines: Kevin L. Prust,
John L. McCune, Paul D. Hayes,
and Michael D. Wheeler, partners.

Modern Banking Systems, Inc., ^
Omaha: M.J. Reynolds, sales man­
ager, and Jim McCormick, account

NCR Corporation, Des Moines:
Nancy Shaver, Margaret Kuble, %
John Peglow, Kalon Sarby, John
Evans, Kevin Fields, Lori Bents,
Jay Deinst, Dan Lein and Robert
Office Concepts, Waterloo: Har- ®
old W. Schoonover, president; Ross
D. Schoonover, vice president; Jerry
B. Spurgat, vice president/senior de­
signer, and James H. Jones, sales

PCA International Inc., Mat­
thews, N.C.: Geoff Squire and John
Phillips, regional account directors.

Swords Associates, Kansas City, #
Mo.: Tom C. Cannon, associate.
US Check Book Co., Omaha: Ed
Batchelder, president, and Chuck
Strattan, Glen Altfillisch, Tom Potthoff, Jim Kohrin, Mike Strattan and ®
Randy Roan, representatives.

Congratulations to the
Iowa Bankers Association
on its 100th Anniversary



Tim Mercer, leasing officer.

Farmers Savings Bank
Traer, Iowa

,ÿî-uÂuAw, ¿fc4wa 52333

1 0 0

D ES M O IN E S , IO W A 5 0 3 0 9

Banker, September, 1986
Federal Reserve Bank of St. Louis


2 4 3 -1 2 0 3
1 -8 0 0 -5 3 2 -1 4 4 3

Over 250 Iowa financial
institutions have used
Kirk Gross Co. services!
Do they know something
you don’t?
Kirk Gross Co. has a solid reputation in Iowa
for designing new financial institutions and
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Federal Reserve Bank of St. Louis



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


Io w a N e w s

I BA Off icers Are Elected
USSELL S. Howard, chairman
of Mahaska Investment Com­
pany, Oskaloosa, holding company
for Mahaska County State Bank,
will be advanced to the presidency of
the Iowa Bankers Association dur­
ing the 1 0 0 th annual convention in
Des Moines on September 16. Mr.
Howard, who has served as IBA
president-elect the past year, will
succeed J. Bruce Meriwether, presi­
dent of the First National Bank of
In the mail ballot submitted to
members last month according to
IBA by-laws, the only candidate for
1986-87 president-elect was Clair J.
Lensing, president of Farmers State
Bank in Marion. Under the present
procedure of officer succession, Mr.
Lensing would assume the IBA


re e
l^ e ó t a u r a n t
%n J

J o u rich e

Visit the Crystal Tree Restaurant
where fine food is served in an
elegant atmosphere. Serving
groups up to 70. Serving dinner
Sun.-Th., 5 P.M.-10 P.M.
Fri.-Sat., 5 P.M.-11 P.M.
• N ew ly D ecorated
• 1986 ★ ★ ★ ★ Rating by
Grumpy G ourm et

6111 Fleur Drive
Across from the Airport
Banker, September, 1986
Federal Reserve Bank of St. Louis



presidency in September, 1987, and
would be the presiding officer at the
102nd annual convention in Septem­
ber, 1988.
Fred Hagemann, president of the
State Bank of Waverly, was named
treasurer in the 1985 election for a
two-year term, so will continue in
that office until the 1987 conven­
Mr. Howard was born March 5,
1931, into a distinguished Mahaska
County family who has served the
banking interests of Oskaloosa and
surrounding area for 103 years. His
grandfather, Harry S. Howard,
founded Mahaska County State
Bank in 1883, serving as its manag­
ing officer from opening day until
his retirement in 1934 as president.
He died in 1940 at the age of 8 6 .
Russell S. Howard, Sr., who joined
the Mahaska County State Bank in
1920, became managing officer in
1934 when his father retired. He was
elected chairman and president in
July, 1945. He retired as president
in 1969, continuing as chairman un­
til his death in 1978 at the age of 8 6 .
Russell S. Howard, Jr., was grad­
uated from Dartmouth College,
Hanover, NH, in 1953. After com­
pleting graduate work at the Univer­
sity of Iowa, he joined the family
bank and was elected a vice presi­
dent in 1963. He succeeded his
father as president in 1969 and then
was named chairman also at the
time of his father’s death in 1978.
He is a 1962 graduate of the Grad­
uate School of Banking at the Uni­
versity of Wisconsin and has com­
pleted several management schools
of AMA.
Mr. Howard has been extremely
active in the Iowa Bankers Associa­
tion. He served as treasurer in 197374, and two terms as chairman of
the IBA legislative committee. As a

member of the Iowa-Nebraska Joint
EFT Study team, he took part in the
initial development of electronic
funds transfer in Iowa. When the
Iowa Transfer System was formally
organized, he served as its first
president from 1975-77, continuing
on the ITS board until 1982.
He served also with the American
Bankers Association’s Fund for
Economic Education from 1981-83
and was chairman of the Fund in
Mr. Lensing attended the Univer­
sity of Iowa and graduated from the
Graduate School of Banking in Mad­
ison, Wis. He also attended the
Agricultural Credit School in Ames
and the School of Bank Examining
in Urbana, 111.
Mr. Lensing spent 10 years as a
banking examiner for the State De­
partment of Banking in Des Moines.
He was a senior examiner for five of
those years.
His association with Farmers
State Bank in Marion has spanned
20 years. He has been president of
the bank for the past three years and
is also on the board of directors. He
is also president of Citizens Savings
Bank in Hawkeye and Maynard Sav­
ings Bank in Maynard.
Mr. Lensing has been chairman of
Group 4 for the past two years and
has served on the IBA board of di­
rectors. He is also an ex-officio
member of ITS, Inc. He currently
serves on the board of the Marion
Chamber of Commerce and the
Marion Industrial Developm ent
Commission. He is a past president
of the Linn County Bankers A sso­
In addition, Mr. Lensing pre­
viously served as treasurer for Kirk­
wood Community College, and as a
director for the Cedar Rapids Cham­
ber of Commerce, Indian Creek
Country Club and the Cedar Rapids
Symphony Orchestra.
Mr. Hagemann has served as
chairman of Group 3 and has served
on the IBA board of directors. He is
chairman of the IBA Finance Com­

Named in Manning
Howard H. Hansel, executive vice
president of Walnut State Bank has
been named president and chief ex­
ecutive officer of Manning Trust &
Savings Bank. Mr. Hansel served in
various capacities at Walnut State
Bank for eight years.

Hills Bank & Trust Company, Hills.
He was shot Dec. 9 by Lone Tree
farmer Dale Burr, who also shot and
killed his own wife and a neighbor­
ing farmer, and then took his own
Io w a N e w s

Sanford, Elbert Win Hughes Scholarship
HE John H ughes Memorial
Scholarship winners for this
year, chosen to attend the Iowa
School of Banking, were Michael
Sanford and David Elbert.
Mr. Sanford is a banking and fi­
nance major at Buena Vista College,
Storm Lake. He was recommended
for the scholarship by his economics
professor, Paul Russell, who is also a
board member for Commercial Trust
& Savings Bank, Storm Lake.



Mr. Elbert is a business writer for
The D e s M o in e s R e g is te r , assigned

to cover the banking beat. He holds
a B.S. degree in journalism and poli­
tical science from Iowa State Uni­
versity, Ames. Before joining the
staff of the R e g is te r , ten years ago,
Mr. Elbert was employed with the
Q u a d -C ity T im es, Davenport.
The John Hughes Memorial Fel­
lowship will be awarded annually to
a representative of an Iowa news or­
ganization, to enhance his/her under­
standing of the commercial banking
industry, and to a junior business
major attending a four year Iowa
college or university who has ex­
pressed an interest in banking as a
career. Recipients of the scholarship
are chosen by the Iowa School of
Banking Advisory Board of which
Mr. Hughes served as both a mem­
ber and chairman.
Member banks have, to date,
donated $ 2 0 ,2 0 0 to endow the fel­
lowship. The IBA is continuing to
accept contributions to the fund and
plans to use additional donations for
other special projects of interest to
the industry.
In a letter to the IBA, Mr. San­
ford praised the course material and

Congratulations to IBA for a
job well done from all the staff
at the
Federal Reserve Bank of St. Louis

instructors at the Iowa School of
Banking. “ I probably gained more
from the school than any of the
other students,” he wrote, and
spoke of the benefits to his future
career. Mr. Elbert also wrote prais­
ing the school for augmenting his
knowlege of banking. He acquired a
page full of story ideas, he said,
“which have nothing whatever to do
with bank failures.” He was grateful
for the opportunity to learn banking
basics, pick up a little history, and
make friends.
The Iowa School of Banking is
sponsored by the IBA in coopera­
tion with the University of Iowa Col­
lege of Business Administration. It
was held at the University of Iowa,
Iowa City on June 22-27.
Because of Mr. H ughes’ devotion
and contributions to the Iowa
School of Banking, IBA President J.
Bruce Meriwether felt a scholarship
fund was the best way to com­
memorate a lost friend.
Mr. Hughes was the president of

Appointed in Waterloo
Kendall Messer has been ap­
pointed to assistant vice president
in the farm divi­
sion at The Na­
tional Bank of
He brings to
the bank many
years of ag-related experience,
which includes:
s a le s ,
G reen
C ounty, Farm
Service, Monroe,
Wis.; district sales manager, Asgrow Seed Company, Des Moines;
branch manager at Southeast Iowa
Product Credit Association, and
assistant vice president and ag rep­
resentative at the First National
Bank of New Hampton.

Money Handling Machines, Inc.
10607 Bondesson Circle, Omaha, NE 68134 402-571-5577

President John B. Keeline — 77th IBA President
1958 - 1959
Northwestern Banker, September, 1986


Io w a N e w s

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


Group 1
William C. Hess, Iowa Savings
Bank: From Coon Rapids to Sioux
City the report
on farm condi­
tions for Group
1 are the same.
O v e r a ll
grain crops for
the entire area
will result in ter­
rific yields and
s to r a g e p ro b ­
lems. Excellent
yields will soften
the impact of poor grain and until re­
cently poor livestock prices, but will
not be sufficient to spur farm spend­
ing for anything but essential and

necessary items.
Our land values continue to be
something to wonder about. More
people talk about the good values
available but only a few want to fi­
nalize a purchase considering poor
grain prices and huge surpluses, and
lower interest rates a good possibili­
ty. The consensus on land values
seems to be that we m u s t be close to
the bottom.
On the commercial side, top re­
gional shopping centers of the area
report satisfaction for the times we
are in but smaller communities with
their main street merchants are find­
ing the cash flows difficult at best in
too many instances. Unwanted
changes in our rural communities
which cannot be reversed easily are
evidenced by empty store fronts,
closed dealerships, talk of school
mergers, and declining values.
Neither state or national policies
or world markets are expected to
change and provide the near term

improvement we seek for our farm/
business economy. The consensus is 0
that we do have difficult times
ahead that require we “hunker
down” a bit longer.

Group 2
Norm Skadburg, First State
Bank, Webster City: Rainfall in our
area has been ex­
c e lle n t
t h is
spring and sum­
mer leading us I H
to believe we will WÊÊ
have record corn
an d
soyb ean
crops this fall.
There are a few
iso la te d areas ■ ■
w here rain fall
has been too
heavy and yields will suffer, but ^
these areas are few and far between.
The current prices of $1.75 for corn
and $5.00 for soybeans leave a lot to
be desired. Until these prices im­
prove we will continue to see a per- ^
centage of our farmers leaving the
farm or cutting back their opera­
Storage for the bumper crop this
fall is a top priority now. The drama- Q
tic shortage of storage space means

1 0 0 YEARS
IBA President
G.L. Tremain

IBA President
R.S. Howard

Best W ishes for the Next 1 0 0 Years!
Mahaska Investment Co.
Mahaska State Bank
Oskaloosa, IA
First National Bank
Sumner, IA
Farmers Savings
North English, IA

Banker, September, 1986
Federal Reserve Bank of St. Louis

U.S. Financial Institutions Division
Community Banks
Jim Meehan
Jack Clark
Bud Cross
Garth Dunn
Keith St. Pierre
Art Stake
Federal Reserve Bank of St. Louis


The First National Bank of Chicago


Io w a N e w s

that millions of bushels of Iowa
grain may be unhoused. Due to the
low market prices and government
price support programs, existing
storage facilities and many country
elevators are full of 1984-85 crops.
Many elevators have added storage
space that is now fully allocated to
farm customers. Some farmers are
constructing new storage facilities
on their farms, but many farmers
can’t support any more capital debt.
They will have to seek other alterna­
tives to their storage problems. The
Cooperative Extension Service is
now conducting meetings to inform
farmers of these alternatives.
The bright spot in the agricultural
picture in our area is the $60 -f hog
market. The profitable situation in
the swine industry will help retire
some carryover debt, which should
insure that many of our hog produ­
cers will still be in business for a
while longer. The producers with low
debt or no debt situations can now
look at some possible purchases of
low cost land or additional equip­
Communities in our area are con­
tinuing to seek new jobs to help off­
set some of the problems the sag­

ging agricultural econom y has
caused. We are all vying for new in­
dustry to come to our towns, but the
competition is keen. Many commu­
nities are buying industry. This may
be a short-term solution that could
be a problem in the long run. More
realistically, many of us need to see
if there is a possibility of job expan­
sion within some of our present in­
dustries. Whether the new jobs
come from within our communities
or from new industries moving in,
the jobs are badly needed. Main
streets are showing signs of deterio­
ration even in the most progressive
towns. Em pty storefronts are very
evident and are a depressing sight
for most of us. Our communities
have the labor pools available.
We have displaced farmers or
farmers seeking off-farm equipment;
we have young people who want to
stay in their home areas. We have
spouses who are willing to work for
needed additional family income,
and we have others who would like
to move to our communities from
cities if a job existed.
There is no finer place to live,
raise and educate a family, and work
than in rural Iowa. The next year is

a crucial year for Iowa. The next
year is a crucial year for Iowa agri­
culture and for banking in our state.
We need to be as positive as possi­
ble. “Tough times don’t last, tough
people do!”

Group 3
Donald E. Snyder, president,
Manufacturers Bank & Trust Com­
pany, F orest
City: Crop yield
prospects in the
Group 3 coun­
ties are general­
e x c e lle n t .
While crops got
off to a slow
start in many
areas, tempera­
ture and mois­
ture conditions
have allowed them to catch up. In
fact, in some places the corn is ma­
turing faster than normal. Current­
ly, corn prospects appear better
than soybeans.
In contrast to a year ago, hog pro­
fits have been good and look good
for the next several months. There
are relatively few cattle feeders left,
but the numbers would indicate the

to the
Iow a Bonkers Association
on 100 years of
outstanding service

Amcr kan rust
0 Savings Dan<
T h e B enk^of O p p o r tu n ity
Member FDIC

Executive Vice President
Commercial and Correspondent Bonking

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

A m tru s t


From one
centenarian to
Happy Anniversary
Iowa Bankers

Extra effort. Expect it from Brenton.
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1986


Io w a N e w s

potential for higher prices.
in my opinion, comes in the area of cial area, but on the other hand, new
Grain storage capacity is going to customer attitude or attitude ad­ housing construction is up consi­
be a real problem with many farmers justment. There seems to be some derably, as much as 30% in some
scrambling to make a place for the bright signals flashing in many seg­ areas.
Confidence is strengthened by
coming crop. If the excellent yield ments of the economy, which is very
prospects materialize, producers encouraging to all of us concerned, some favorable aspects within the
have storage, and livestock prices the banker and the customer. This economy such as lower interest
hold, 1986 should be less painful within itself creates a great amount rates, increasing housing markets,
of encouragement and optimism etc. It is vital to keep the ag
than previously thought.
The retail sector of the area is flat that will eventually produce even economy healthy in order to keep
the Iowa economy prosperous.
to weak with the exception of the greater results.
The agricultural outlook is superb
major trade centers where volume is
Group 5
growing. This is an extension of a as the crops are excellent with pos­
Thomas D. Whitson, Council
long-term trend.
sible record grain yields in several
The industrial base of the Group 3 counties and very favorable live­ Bluffs Savings Bank: This year I am
area is doing reasonably well. While stock prices, particularly the hog happy to report
there are ups and downs among the market. The majority of the agri­ some very good
individual companies, the area’s in­ cultural newsletters indicate that we things happen­
dustrial component is relatively will continue to see livestock prices ing in southwest
at the current level for both cattle Iowa. In Council
To repeat a statement from last and hogs. In addition, land values B lu ffs, B lu ffs
year, “Agriculture and all that it are decreasing in valuation at a Run, the dog
touches is undergoing dramatic much larger percentage rate and track, has opened
changes. But given time we can and even some experts are saying that and employs ap­
land values have bottomed-out. The proximately 550
will adjust.’’
T he
only unfavorable condition at this p e o p le .
time are the lower grain prices. We track itself is
Group 4
Clair J. Lensing, president, Farm­ would all agree that the grain mar­ breaking all projections and expec­
ers State Bank, Marion: It is gratify­ ket is too low in relation to produc­ tations. Our pork plant in Council
tion cost and other related expenses. Bluffs is open, and it is employing
ing to report
H opefully, we w ill see som e 350 people. The pork plant was re­
that in eastern
strengthening in the markets within opened by IBP, Inc. In addition to
Iowa the econo­
these two things, a new shopping
the next six months.
my in general is
U n em ploym ent figu res have center will be opened in Council
fairly h ea lth y
shown some improvement in the last Bluffs this fall, which will employ an
and has even
year, down 0.3% from approximate­ additional 500 to 600 people. With
show n further
ly 4%, which is a favorable indicator the addition of these jobs to our
im p r o v e m e n t
for the Group 4 area. We hope this economy, it will do a lot to alleviate
over the past
trend will continue in future years.
year. One of the
The construction industry seems
more significant
to be lagging behind in the commerchanges, at least

on 100 Years

“Visit our hospitality room at the Savery.”
United States
Check Book Company
Looks Forward to
Seeing You
September 14-16
During The
Iowa Bankers
Association Annual

JgL United States Check Book Company
In Nebraska Call 402-345-3162 Out of State Call WATS Line 1-800-228-9246

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

Ida Grove

Congratulations To
Iowa Bankers
On Their
100th Anniversary
Security State Bank
Hubbard, Iowa





















We have been able to
solve many bonding problems
for bankers at the lowest possible premium.

Call or Write
435 Kansas Avenue P.O. Box 1654
Topeka, Kansas 66601


Serving bankers for more than 75 years
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1986


Io w a N e w s

some of our unemployment prob­ and held in bins on their farms.
Because of the record corn crop last
The agricultural scene remains year, practically all storage facilities
somewhat cloudy. In recent weeks are full. With the impending crop
fat cattle prices have made a re­ coming, there will be a real problem
covery which are allowing small pro­ as to storage.
fits on feeder cattle. Hogs have also
I have been advised by various
been reasonably good property this bin dealers that they already have
construction scheduled through this
The big challenge facing south­ fall and probably would not be able
west Iowa, and I am sure the rest of to complete construction in time for
the state of Iowa in the next few harvest.
I am certain both bean and corn
months, will be the grain storage
situation. A large number of farmers prices will suffer because of the stor­
will have their 1985 corn crop sealed age problem.

First National Bank
Of Dubuque
122 Years of Service
To Our Banking Friends:
The First National Bank of Dubuque has been serving the
needs of our community and market area continuously for
over 122 years. We are well positioned with top profes­
sionals and a corporate structure that will allow us to ex­
pand our financial delivery system throughout our market.
We are in step with the times and excited about the oppor­
tunities that will challenge us in the years ahead.
The Iowa Bankers Association is to be congratulated for
their ability to proficiently serve the many needs of Iowa’s
banks and bankers for the past 100 years. And we are proud
to have our President, J. Bruce
Meriwether, serve as President
of the Iowa Bankers Associa­
tion during its 100th year cele­
bration. Best wishes to the IBA
for another 100 years of suc­
cessful service.

William G. Kruse
Chairman of the Board &
Chief Executive Officer
Seventh at Town Clock Plaza
Kennedy at Wacker
Jackson and White at 22nd
Asbury at Hales Mill Road
Mem ber F.DilC

Banker, September, 1986
Federal Reserve Bank of St. Louis

Generally, I think the attitude of
agriculture is much better this year #
than it has been in recent years.
When one reads about the terrible
drought situation in the southeast­
ern United States, we should be glad
we have what we have.

Group 6
James M. Schipper, president,
Lamoni National Bank: The economy
of South Central
Iowa appears to
be showing signs
of at least stabi­
lizing and possi­
bly even some
im p ro v em en ts,
especially com­
pared with last
year. We are
again experienc­
ing an excellent
growing season for crop develop­
ment. Most planting was completed
on time and we have had adequate
rains throughout the summer.
It looks as if many farmers have
the potential of matching or improv­
ing last year’s record crop yields,
and livestock market prices are con­
tinuing at very favorable levels. Vir­
tually all farmers are participating
in the government program, and will
place their crop under commodity
loan providing they can arrange
storage. Our most serious problem
may be the lack of adequate storage
to participate in the commodity loan
program. M ost producers and grain
elevators are unwilling to invest in
new storage structures, and existing
storage is already full from last
year’s crop.
Most mainstreet businesses are
continuing to do okay, and some are
operating very profitably. However,
any business that is highly lever­
aged, either farm or commercial, is
continuing to have difficulty in gen­
erating adequate profit to service
high debt loads.
It seems as if the banking indus­
try in our area has found itself in a
rather unusual environment. We
have certainly seen our share of
bank closings in Group 6 , and many
banks are operating at very low
earning levels, trying to digest loan
losses and non-earning assets. How­
ever, at the same time, several
banks are enjoying the benefits of
lower deposit costs and favorable
positions in bond portfolio’s.
Group 6 also includes the Des
Moines market area. Many of the
medium and larger banks in the


“What a pleasure it is to shop where people
who serve you know what they’re doing.”
T h a t’s w h at one of our custom ers said about th ese m en in our m en ’s
c lo th in g d e p a r tm e n t. W e a d v e r tis e w e h a v e c o m p e te n t a n d
know ledgeable personnel who will give you th e ir courteous and undivid­
ed atten tio n w hen you shop a t R eich ard t’s. In this im personal com puter
age, and w ith such know ledgeable m en to help you as m y associates
p ictured here, th a t is indeed a prim e exam ple of an added value for you.

f Herb
l HeinÉ

R eich ard t’s has alw ays sold top quality clothing a t fair prices b u t you g et
added values in m any w ays w hen you shop here. H ere a re o th er ex­
am ples.

Example 2
No sale is ever final a t R eich ard t’s.This m eans if you’re dissatisfied in
any w ay a t any tim e, b rin g th e m erchandise back and w e’ll replace it
F R E E . I believe th is is th e only clothing sto re in th e U nited S tates th a t
offers you such an added value.

Example 3
Don O’Brien

W e ’ll a lte r y o u r c lo th in g fro m R e ic h a rd t’s fo r th e life of th e
g a rm e n t-F R E E . Did you ev er h e a r of such an added value? I haven’t.

Example 4
W e’ll re p a ir (while you w ait if necessary) buttons, zippers, o r o th er n eed ­
ed re p a irs for life of yo u r R eich ard t g a rm e n t-F R E E . A n o th er excellent
exam ple of added value.

Example 5
John Reese

If we don’t have w h at you w an t o r if you’re difficult to fit, w e’ll have your
suit m ade to your m easu re a t re g u la r rack prices. An added value in
com plete satisfaction for you.

Example 6
F o r over 30 y ears w e’ve k ep t all th e prom ises w e’ve m ade and people
know it. E v ery th in g we sell m u st m easu re up to yo u r expectations not
ours. W e keep our trad e.
Mike Millin

The en tire R eich ard t’s organization has a passion for excellence seldom
found in businesses now adays. Yes you g e t added values w hen you buy
from R eich ard t’s. I prom ise you will be satisfied for a long tim e w hen
you shop here. I ’ll see th a t you a re because I ’m here. I ’m Bill R eich ard t
and I own th e store.
s j^

S rirh a rò t’s
Local telephone 274-1558
Federal Reserve Bank of St. Louis

Just off the Freeway at 42nd St.
Des Moines
IA Toll Free 1-800-652-9602

Northwestern Banker, September, 1986

Io w a N e w s

metro area are reporting a rather price. Generally m ost agree that
strong and active business environ­ government programs provide the
ment. Those banks with a large con­ best possible strategy in farming
sumer base, and commercial ac­ and banking plans - even though
counts representing retail and ser­ many bankers resent government in­
vice industries are enjoying favor­ tervention.
Deposits appear to be holding
able performance this year.
with weak loan demand causing
heavy investm ents in the fed fund
Group 7
William J. Rickert, National Bank market. Weaker yields on govern­
of Waterloo: The worst is over! Pro­ ments are putting pressure on rates
paid to customers. Bankers know
bably not for
they have to keep bringing rates
every customer
down - even with smaller spreads - to
or every banker,
keep from having legislative pres­
b u t g e n e r a lly
sure on rates changed.
this is the feel­
One banker reports having some
in g o f m a n y
people moving back into the area Group 7 bank­
and getting area jobs - perhaps at
low pay. Apparently, they didn’t
O verall p e s­
like the quality of life in some other
simism of a year
parts of the country.
ago has been re­
With the proliferation of bank of­
placed - not by
optimism - but a cautious expecta­ fices, there is a concern about an
tion of hope and a more realistic ap­ equitable dues structure for IBA.
proach to problems. I doubt if many There is a strong concern about the
bankers or customers expect a future of small independent banks return to the careless, carefree days with no apparent help to be derived
of the 70’s, but rather a feeling of from permitting interstate banking.
operating with smaller margins and Generally there is a feeling that
more consolidation will occur and
improved efficiency.
Crops universally are good to ex­ that there will be more merged
cellent with concerns for storage and banks with more full-service offices.

Most banks have found that the
slow process of litigation is frustra- •
ting and expensive and probably
negotiating, even with the help of
mediation, may be a better answer
for both banker and customer.
Alm ost every banker talked to •
reports much higher legal expense
and non-productive officer time in
problem solving. The legislature
surely has not made our job any
Generally, however, Group 7
banks are performing well - with
only a few showing higher classifica­
tions than state averages.

Group 8
Donald M. Kout, Farmers & Mer­
chants Savings Bank, Lone Tree:
The eight coun­
ties in our group
have excellen t
look in g crops.
We did not get
very much fall
work done in
1985. However,
the spring work
was timely and
it paid to have
th e corn and
beans in early.

Federal Reserve Bank of St. Louis

Io w a N e w s

Soybean yields have more poten^ tial than earlier this year and have
improved in the past two weeks. The
lack of sunshine will have some lim­
iting yield effects and could be con­
ducive to soybean diseases.
The corn crop looks good from the
road. Field checks indicate many
ears have 14 kernel rows which will
limit the yield to 155 bushels per
acre on what looks like 175 bpa
• while driving by. This is due to
stress conditions of early plant de­
velopment and during extremely
wet spring conditions in May and
June. Local seed corn company agro• nomists stated 1985 test plots aver­
aged 18.7 kernel rows per ear. We
have more stalks with two ears and
the seed corn companies feel they
have excellent yields in their seed
• fields. The senior ag officer who
brought me the above figures quali­
fied them by commenting that with
all the early noise the katydids are
making, we could have an early frost
• which would cut yields...
In visiting with banks of our
group, m ost feel we have an excel­
lent crop that will have a low cash
sale value. The majority of our pro• ducers are in the government pro­
gram, so most of this crop will be

sealed under government loan. This
will compound the storage problem
as the storage is being used for 1985
crops. Banks that have loan re­
quests for storage bins have been
slow to respond. With the change
announced for the lowering of stan­
dards for storage with ASCS, the
producers will attempt to store
grain wherever they can.
Livestock prices are better than
projected in our cash flow this
spring. The numbers must not be
out there or the markets would ad­
just. We don’t see much expansion
to create numbers at this time.
Retail sales in the small towns are
down and our merchants will have to
be innovative to exist. Even the
number of people using the malls in
the larger towns seems less. Our cus­
tomers are being very careful and
will come through this time frame
better managers and better in­
formed of their cost of doing busi­
Banks are reporting slower de­
posit growth. Earnings will not be
strong as reserves are being
strengthened and all m argins
watched. The regulators have gotten
their message across and banks are

In regard to FmHA programs, we
have submitted for 90% guaranty
operating loans and interest rate
buydowns on several customers. We
work with three field offices repre­
senting six counties. Each office we
found to be different in its view of
the buydown program. Field repre­
sentatives of FmHA varied as to
how the regulations were to be im­
plemented. We did contact Cooper
Evans and Jim Leach for support.
Both of their staff were very knowl­
edgeable and did what they could to
speed processing delays.
We currently have three approved
and closed interest rate buydowns
and two more tenatively approved
pending rule changes that were to be
written into the Federal Register
(“any day now”) since July 1st. Con­
gressional intent concerning the in­
ter e st buydow n program and
FmHA administration of the pro­
gram have not always followed the
same vein. Supportive local FmHA
offices were very helpful in imple­
mentation, the opposite is also true.
We have actively utilized the Level
II IAD A State interest buydown
program. William Greiner’s office
and John Judge in particular have
been excellent to work with. They


First Banks
Members First Bank System
Federal Reserve Bank of St. Louis


Members FDIC


Io w a N e w s

have moved quickly with minimal ery will take a number of years.
General business conditions vary
turnaround time. We feel the State
of Iowa did a good job of administer­ widely in the Group 11 region.
ing the legislature’s intended pro­ Where the economy is wholly depen­
gram. Banks need to pursue this dent on agriculture, the business
program. It is a viable effort by the community is presently suffering
legislature to help ease the pressure perhaps more than the farmers.
Elsew here, b u sin ess conditions
on farm operating interest costs.
One thought that I received when relfect the degree of non-agricultural
visiting in our group—We need more diversification in the local econo­
active participation from ALL bank­ mies. Some communities are seeing
ers on the state level. We did not the positive results of the emergence
fare well in 1986 and have to get of new local leadership in seeking
more involved in 1987 or we will solutions to these continuing eco­
again be left out. We need to support nomic problems.
the state buydown programs and
Group 12
support our- local legislators. Wes
Thomas M. Awtry, president,
and the other people supporting our
Valley State Bank, Rock Valley: The
industry in Des Moines cannot do
general farm and
the job alone...
business econo­
my in the Group
12 region con­
Group 11
Edward K. Johnstone II, presi­ tinues to be de­
dent, Keokuk Savings Bank & Trust pressed with lit­
tle possibility of
improving great­
Group 11 bank­
ly w ithin the
ers in southeast­
very near future.
ern Iowa report
Crop p r o s ­
t h a t g r o w in g
pects over most
crops look uniof the area are good to excellent with
form ally good
above average production antici­
throughout their
pated. This is good news for the
part of the state.
farmers. Grain prices however are
This good news
way below production costs, and if it
is offset to a
were not for U.S. Government defi­
large degree by
low grain prices and the inability of ciency payments, many additional
many farmers to take advantage of producers would be forced out of
government programs because of business.
Livestock producers have had
the lack of adequate storage facili­
some relief from the low prices over
ties on the farm.
Land prices remain very soft gen­ the past couple of years. Hog produ­
erally; a glimpse of stability and cers have been experiencing some
even some buying interest is seen in excellent marketing opportunities,
the northwest corner of the group both near-term and into the first
region. Bankers seem to feel that quarter of 1987. It would appear
major losses are now behind them, that feeder cattle and hog prices will
but that overall agricultural recov­ continue to be extremely high this

fall due to the low price of corn and
overabundance of roughage available around the area. New tax laws
being considered by the U.S. Con­
gress could also have a positive and
lasting economic effect on our live­
stock producing areas, if they are
enacted as proposed.
Land, machinery and equipment
prices have appeared to stabilize for
the near term. If the USD A does not
measurably change the farm program for the next couple of years, we
may have seen the bottom in land
and machinery prices. I see one other
positive thing for land values, and
that is the decline in short and longterm investment rates. Real estate
loan interest rates continue to be
high based on the inflation rate but
show signs of coming down and re­
maining down for some time. This is
encouraging as it will allow new
capital to be brought back into agri­
In conclusion, economic times are
not favorable in the area and probably will not improve greatly in the
near term, but if we can just stabi­
lize them it would be a big improve­






Two Named in Iowa City
Terrence N. Vorbrich has been
promoted to vice president and head
of the commercial loan division of £
Iowa State Bank & Trust Company,
Iowa City. He has been with the
bank for three years as second vice
president, commercial lending.
Also, Jo Anne M. Lick has joined £
the bank as auditor. Ms. Lick is a

“Happy 100th Birthday” #




Our congratulations and
appreciation for a job well done!
Banker, September, 1986
Federal Reserve Bank of St. Louis


{s e r v ic e )




Credit Life and Disability Insurance Specialists
4333 Edgewood Rd.
Cedar Rapids, IA 52499
(319) 398-8511

2700 Westown Pkwy.
West Des Moines, IA 50265
(515) 225-2051


Creditor Resources, Inc.


Helping “Celebrate Iow a” for over 25 years!
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1986

m oday more than ever, Iowa banks
depend on a strong correspondent rela­
tionship to thrive in the ever-changing
world of banking.
At First Interstate Bank, our Iowa Corre­
spondent Services Division offers the
highest level of expertise and service to
assist you in managing an efficient and
profitable community bank.
Because of our ability to anticipate and
react to the changing needs of Iowa
banks, we’re setting the pace in achiev­
ing results. Results that translate into a
strong bottom line...your bottom line.


Compare us to the correspondent you
now use, then make the right choice.
First Interstate Bank. The bank that’s
setting the pace.

Randy Steig
Vice President
and Manager
(515) 245-7251

F irs t
® In te rs ta te
We’re setting the pace
First Interstate Bank of Des Moines, N.A.

Locust at Sixth

Des Moines, Iowa 50309
Federal Reserve Bank of St. Louis

Randy’s experience as Vice President and
Executive Director of the Iowa Banker’s Asso­
ciation and ten years experience in various
positions with the Iowa Department of Bank­
ing, including responsibility as Assistant
Superintendent of Banking make him an
excellent resource for questions you may
have regarding your bank’s financial struc­
turing, asset quality and compliance with
state and federal regulations. You will find
his knowledge valuable to you in your
daily management of a community bank.




Ken Danilson
Vice President

Bill Mullins
Vice President

(515) 245-7148

(515) 245-7157

Ken has spent three years managing our
agricultural production and farm real estate
lending programs. His previous eleven years
managing a county seat bank ag department
and as a FmHA county supervisor gives Ken
the experience that you can utilize to retain
and solicit your top area farmers.

Bill has spent two years serving your corre­
spondent needs at First Interstate Bank of Des
Moines. His seven years prior experience as
a bank examiner gives him first hand knowl­
edge in credit analysis, banking laws and all
bank examination procedures and reports.
You will find Bill a valuable resource to
your bank’s management, operations and
auditing staff.

Ken Malecha
Vice President
(515) 245-7262

Ken’s background in commercial and agricul­
tural lending in Minnesota and Iowa will be
valuable to you when analyzing your bank’s
loan portfolio needs. His experience in cash
letters and end point analysis can assist you
in optimizing your cash availability.

Joan Thompson
Investment Officer
(515) 245-7069

Joan’s previous experience with a securities
brokerage firm and her four years experience
in the investment department at First Inter­
state Bank is valuable to your bank’s invest­
ment area. Joan is a licensed Principal of
the Municipal Securities Rulemaking Board
and is ready to assist you in government
and municipal bonds and money market

Diane Grotenhuis
(515) 245-7173

Diane’s support experience in the correspon­
dent division requires her to be knowledge­
able in all bank areas and functions. Her
background in this area will prove valu­
able in answering your specific operations

Brian Hughes
Investment Services
(515) 245-7295

Brian’s experience in government securities
and municipal bonds, as well as his certifica­
tion as a Municipal Securities Representa­
tive, brings you a correspondent banker with
expertise to assist you with investment and
portfolio decisions.
Member FDIC
Federal Reserve Bank of St. Louis


Io w a N e w s

“The members of the Ag
Social Concerns Group
supported IBA in the
legislature to change
the Corporate Farm Bill.”
—Neil Milner
(Continued from page 65)
Co., in the Hills bank last December
9 by a crazed bank farm customer.)
“Following that, and seeing the
militancy that had been reported on
both sides out there, or unrest or
whatever you want to call it, I felt it
was necessary to address that issue.
I’ve done a couple of other inter­
view s—U S A T o d a y and W all S tr e e t
J o u rn a l—on the stress of banking in­
dustry and I was continuing to get
some direct calls and evidence that
the problem was growing rapidly
out th ere—the lender/borrower
fights in the parking lots, threaten­
ing phone calls requiring guards for
children to go to school, and all that
sort of thing. So, we had to do some­
thing. I am hopeful that what we did
slowed that process down, or maybe
just talking to those people brought
it some visibility that lessened the
problem somewhere. I don’t know if
it did everywhere, but hopefully it
helped someone, and the reports are
that understanding did help.”
The m ed iation process was
worked into law by the Iowa legisla­
ture last spring, with time frames
worked out in cooperation between
IBA and other farm group members
of the Ag Social Concerns Group.
Not content with what is being
done at the regional and national
level, Mr. Meriwether has appointed
his own Iowa Special Task Force,
composed of eight to ten bankers,
whose mission is to identify and
describe the options IBA might deal
with. “One thing they did,” Bruce
noted, “and which has been sent to

the ABA Task Force, was to state
the need for a secondary market for
farm real estate loans. ABA now has
this under study.” Neil Milner
added that “The Graduate School of
Banking at Madison has funded a
study of this at another university.”
Returning to a discussion of IBA
itself, Bruce commented, “We are
fortunate in maintaining our mem­
bership level at 600 plus of the 620
banks in the State of Iowa. There is
still a strong belief in the viability of
IBA. I think the problems we’ve
operated under in this state have
made it more difficult for some
bankers to participate who would
otherwise have done so. They are
needed at home, and this is too bad
because these often are the people
we need. However, we certainly un­
derstand th e ir need to be at home at
this particular time.
“In legislation, where we are
usually successful, we got beat upon
pretty good. The reasons? I don’t
believe we had the grass roots parti­
cipation we needed and have had in
previous years when the issues real­
ly got hot. Perhaps that is a commu­
nications problem we need to ad­
dress at the association level; I don’t
know. W e’ve developed the Commit­
tee of 99. I don’t know that we’ve
had the most successful combina­
tion yet, but we’ll find it. For my
part, I ’m pleased with the support
from the membership.”
Neil added, “One thing w e’ve
noticed in the IBA office is that as
banks reduce staff to meet their eco­
nomic needs, they’re calling on the
IBA more and more to assist them
in operating their institutions.”
On the legislative front again,

CONGRATULATIONS to Iowa Bankers Association for a
job well done,


ST. ■ ■ ■ ■ ■



b a n k

Stacyville, Iowa 50476

St. Ansgar, Iowa 50472
Since 1891
for FRASER Banker, September, 1986
Federal Reserve Bank of St. Louis

s t a t e

Bruce stated, “Our request for grass
roots participation is more than ju st^
asking bankers to do something for
their association. Regardless of
whether we are bankers or not, we
need to hold our legislators account­
able. I think the legislature needs to^
re-identify its process. I think w e’ve
been too apathetic in not really hold­
ing our legislators’ feet to the fire!
Legislators are s till accountable to
those who ch oose to hold them ac-^
countable. Find out from your legis­
lator how he studied an issue, even
beyond our banking perspective;
what he considered; why he voted
the way he did. The bridge from#
bankers to the legislature breaks
down if legislators tell us they have
no calls from bankers; then it be­
comes an irresponsible system . The
legislators n eed to a sk their people#
and vice versa.”
In concluding this interview,
Bruce said, “One thing I wanted to
get sold and didn’t start was devel­
opment of a Charitable Trust th at#
bankers could put together for farm
family needs. We’ve been waiting for
an IRS letter, but we don’t have de­
tailed goals or objectives. Perhaps
earnings from such a fund should g o #
to young farm people for scholar­
ships, or perhaps as contributions to
Prairie Fire, the mediation service
and similar groups.”
Every president’s term of office is #
marked by successes and some dis­
appointments, some work left un­
done, but th at’s why the association
has officer continuity so there will
be a continuing effort in the sam e#
direction. The past term will be re­
membered by Iowa bankers for
Bruce Meriwether’s leadership in
addressing unusually deep economic
problems head-on, but maintaining a®
positive attitude that kept IBA
faced to the front to address the
problems, rather than looking back
to find out the causative reasons
that everyone already knew so well.®

Happy 100th to IBA
From 2 Old-Timers
Page County State Bank
Clarinda, Iowa
Since 1866
Okey Vernon
First National Bank
Corning, Iowa
Since 1900


B A N K S IN S U R A N C E A G E N C Y !


B il



Visit our booth at the Iowa Bankers Convention Sept.
14-16 and find out how your bank can take advantage of
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104 E. Locust
Des Moines, Iowa 50308 (515) 286-4300
Call our toll FREE WATS number 1-800-532-1423

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

Northwestern Banker, September, 1986


Io w a N e w s

He would succeed O. Jay Tomson, Adel, and six years as president of
chairman and CEO of Citizens Na­ Brenton National Bank of Des ^
tional Bank in Charles City, who has Moines. He has been in charge of
Arnold Schultz, president and served on the Fed board for the max­ loan administration for the Brenton
chairman of The Grundy National imum of six years. Mr. Schultz Banks for the last one-and-one-half
Bank in Grundy
joined Grundy National in 1959, years.
Center, is a can­
serving as president since 1972. He
didate for elec­
is presently secretary of Group 7 of Banks of Iowa Chairman
tion to the board
the IBA. He is a member of the leg­ Forbes Olberg to Retire
of directors of
islative committees of the IBA and
the Federal Re­
F. Forbes Olberg will retire Janu­
I IB. Mr. Schultz also was president
serve Bank of
1, 1987 as chairman of the board
of the IIB in 1983-84.
C h ic a g o .
of B a n k s of
elected during
Iowa, Inc. Mr.
President Named in Waverly Olberg, who will
m ail b a llo tin g
Robert D. McKee has been ap­ be 63 in October,
that begins Oc­
pointed as president and chief execu­ will retire after
to b er 31, he
would represent Class A (banks) in tive officer of The First National 34 years of asso­
Group 3, which is banks with capital Bank of Waverly. He succeeds Jim ciation with The
and surplus of less than $3 million. Arens, who served the bank in vari­ M erchants Na­
The term as a director is for three ous capacities for more than 28 tional Bank of
years, elected by all Group 3 banks years.
Cedar R a p id s
Mr. McKee has been affiliated and Banks of
in the 7th Fed district, and he may
be re-elected for one additional with Brenton Banks, Inc. for more Iowa, Inc.
than 30 years. He served 15 years as
three-year term.
After practicing law in Cedar
Mr. Schultz has been endorsed by president of Brenton Bank & Trust Rapids for three years, Mr. Olberg
both the Iowa Bankers Association Co. of Clarion, five years as presi­ joined The Merchants National
and the Iowa Independent Bankers. dent of Brenton Bank & Trust Co. of Bank trust department in April,
1953. He transferred to the commer­
cial loan division after five years and
served as executive vice president of
the bank.
In 1968, he was a founding direc­
tor of Banks of Iowa, Inc. and
served as president and chief execu­
tive officer from 1971 to 1981.
Although not involved in the day-toDRINKS
day operation of the bank, or hold­
ing company since that time, he has
been chairman of the board since
Long active in the civic affairs of
Cedar Rapids and the state, he will
Restaurant anb lounge
continue to maintain his offices on
1901 Ingersoll
Reservations Suggested
the ninth floor of The Merchants Na­
tional Bank building. He is current­
ly serving as Chairman of the Iowa
Department of Economic Develop­
ment. Mr. Olberg is president of
Greengate Farms, Inc., a family
Fort Madison, Iowa 52627
farming corporation in Jones Coun­
ty Iowa.

Arnie Schultz Candidate
For Chicago Fed Board

b eca u se you enjoy
going first c la ss

uty? J m p m a l Miniar

Mem ber FDIC




Newton, Iowa 50208
Member F.D.I.C.

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis


of Sioux Center
Iowa Bankers Association
100 Years of Service

lo w a N e w s






A.V.P Joined in Davenport

Elected in Gilman

Cindy S. Hall has joined Brenton
Banks, Inc. as assistant vice presi­
dent, region al
marketing direc­
tor. She will be
officed at the
B ren ton F ir st
N ational Bank
of D a v e n p o r t
and will also assist the market­
ing staffs of the
Brenton Banks
in Cedar Rapids
and Marshalltown.
Prior to joining the bank, she was
marketing officer for First National
Bank of the Quad Cities, Rock Is­
land, 111. Her career experience in­
cludes marketing and advertising
positions with First Bank Lacrosse,
Wis., and Davenport Bank and
Trust Co.

Timothy J. Marcsisak has been
promoted to cashier at the Citizens
Savings Bank, Gilman. He is in
charge of the operation department.
John Hlas has been elected to the
bank’s board. He is in charge of Citi­
zens Insurance Agency.

Agreement Signed in
Marshalltown For Eldora Bk.


cies, should be completed by early
next year.
In addition to its main bank in
Marshalltown, Security also has
banking locations in Gladbrook,
Laurel and Prairie City.

Bus Trip Planned For
1986 Farm Progress Show

Farmers State Bank of Marion is
offering a one day bus trip to the
Security Bank of Marshalltown 1986 Farm Progress Show at Allehas signed an agreement to acquire man. The trip will be made on the
Hawkeye Bank & Trust of Eldora, show’s first day, September 30.
which will be operated as an office of
Plans are for the bus to depart
the Security Bank.
from Collins Road Square Shopping
Hawkeye Bank & Trust has Center, Marion at 7:30 a.m. and re­
assets of $16 million. Upon consum­ turn at 6:30 p.m. Show programs
mation of the purchase, Security will be available for $1 each.
Bank will have total assets of $200
For reservations, send $10 per
million, according to bank president person to Farmers State Bank,
Ronald Fenton. The transaction, P.O. Box 569, Marion, Iowa 52302.
which is subject to approval by state Checks are made payable to the
and federal bank regulatory agen- bank.

^ Staff Changes in Spencer





Jack Easter has retired as CEO
and chairman of Farmers Trust &
Savings Bank, Spencer. He was with
the bank for 19 years, and will remain as a director of the bank.
Gary Tolzmann, president of
Farmers Trust & Savings, has been
selected to replace Mr. Easter as
chairman on a temporary basis.
Dale L. Peters has joined the bank
as vice president in the commercial
and agricultural loan area. He was
with the Ludlow National Bank in
Ludlow, Mo.
Dale Boswell has joined the bank
as assistant vice president in the ag
department. He joins the bank from
the Newton office of the Farm Cred­
it System.
In addition, Debbie Sundall, an
employee of the bank since 1974, has
been promoted to trust officer.

^ Joined in Belie Plaine


Ben Morris has joined the Chelsea
Savings Bank, Belle Plaine, as vice
president and senior trust officer.
He has served on the board for 16
years. He joins the bank from Tama
where he practiced law for 29 years.

417 Sixth Ave.
Des Moines, Iowa
‘A Tradition in Des M oines”
Federal Reserve Bank of St. Louis


Welcome You To The Iowa Bankers
Association’s 100th Convention
Be Sure To Stop By
Our Booth And Visit
With Jean Eden
And Sandi Garner


Hwy. 92 W., Masseria, Iowa 50853


Hwy. 63 S., New Hampton, Iowa 50659

Our Congratulations and Sincere Thanks
to the Iowa Bankers Association
for 100 Years of Service.

F ir s t N
Io w a City, Iow a

a t i o n a l B a n k MemberFDIC

D o w n to w n






Northwestern Banker, September, 1986


Io w a N e w s

assistant cashier in 1948 when he 1958. He has served two one-year
joined the FDIC as an examiner in terms on the IB A Correspondent
Iowa. He continued in that position Bank Relationship Committee.
The appointment of Bernard D. until 1953, leaving to join the corres­
Miller as vice president-correspon­ pondent bank department of Drov­ Two Named in Kellogg
dent banking at
ers National Bank of Chicago (now
A promotion and an election have
Dubuque Bank
Drovers Bank of Chicago).
been announced at Kellogg- Sully (
& Trust Com­
Mr. Miller worked with Drovers
Bank and Trust, Kellogg.
pany, was an­
Bank 24 years and was a vice presi­
Ronald G. DeNooy has been pro­
nounced in Du­
dent at the time of his resignation in
to vice president of the bank.
la st
1977. In that year he joined Ameri­
He has been with the bank since
month by Lynn
can Trust & Savings Bank of Dubu­
1982. Prior to that, he was with the i
S. Fuller, presi­
que as a correspondent banking offi­
Land Bank Association of
dent and CEO of
cer and remained with American
the bank.
Trust until resigning in recent
weeks as second vice president in
Mr. Miller is a
native of Wil­
the correspondent bank division.
liams, la., where he was born Febru­
While he was with FDIC, Mr. Mil­
ary 1,1926, and where he started his ler attended a number of AIB
banking career in 1945 with Wil­ classes. Later, he was graduated
liams Savings Bank. He was drafted from the Iowa Bankers Associa­
into the Army shortly thereafter but tion’s A g Credit School at Ames in
was discharged after seven months 1955 and was also a graduate of the
when WWII ended. He joined Liver­ Graduate School of Banking at the
more State Bank and was serving as University of Wisconsin, Madison in

Bernie Miller Joins
Dubuque Bank & Trust


T I T^





Hotel Savery
4th & Locust 28-



James C. Anderson has been
elected to cashier and vice president
of the bank. Most recently, he has
served as president of Peoples Bankshares, Melbourne Savings Bank.

Assumed in Prairie City

We are pleased to announce
that AID Securities
Corporation a member of
the ALLIED Group has
changed its name to
Securities Corporation

S e c u r itie s

ALLIED Group S ecurities C orporation
380 C apital Square
400 Locust Street
Des Moines, Iowa 50309-2334
Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis

The FDIC has approved the as­
sumption of the deposit liabilities of <
The First National Bank of Prairie
City by Security Bank, Marshall­
The bank, with total assets of
$18.9 million, was closed July 24, i
1986, by Robert J. Herrmann, comp­
troller of the currency, and the
FDIC was named receiver.
The failed bank’s only office re­
opened on July 25, 1986 as a branch <
of Security Bank.
Security Bank will assume about
$18.3 million in 4,900 deposit ac­
counts and has agreed to pay the
FDIC a purchase premium o f 1
$102,000. It also will purchase cer­
tain of the failed bank’s loans and
other assets for $11.6 million. The
FDIC will advance $6.9 million to
the assuming bank and retain assets
of the failed bank with a book value
of about $7.3 million.



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When you compare the costs of
EFT systems, and you should,
you’ll discover the familiar
magenta lightning bolt of
SHAZAM. Our transaction fee for
withdrawals is the lowest in the
midwest. Just 28 cents! But don’t
stop there. Compare ATM support
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Host costs. File maintenance
charges. Sharing fees. Once again,

ITS, Inc., SHAZAM’s provider,
offers you an EFT system de­
signed for cost efficiency. Effi­
ciency that will certainly enhance
the overall profitability of your
financial institution.
Couple that cost efficiency with
SHAZAM’s marketing support,
record of success, POS technology
and unique managerial approach
and you’ll discover why ITS, Inc. is

ITS, Inc.
200 Financial Services Building ■ 508 Tenth Street
Des Moines, Iowa 50309 ■ 1-515-286-4377 ■ In Iowa: 1-800-532-1423
Federal Reserve Bank of St. Louis

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EFT providers in operation today.
Through recent expansion
efforts, w e’re able to offer these
exclusive ITS, Inc. features to
even more midwestern financial
institutions. So to find out how
your financial institution can
profit from “The 28<t With­
drawal,” call ITS, Inc. today. And
discover SHAZAM.

Northwestern Banker, September, 1986


Io w a N e w s

Creative Space Planning Provides
More Room in Cedar Falls Bank

MIDWAY Bank & Trust, Cedar Falls, will soon have a new atrium entrance which will pro­
vide convenient after hours access to ATM and night depository.

HEN Midway Bank & Trust,
Cedar Falls, was built nearly
25 years ago, it was half the size it is
today. An addition to the building in
1975 increased its size by 40% which

satisfied the needs of customers at
that time. In recent years, however,
continued growth and the addition
of new services and equipment has
filled the bank.

Welcome To The I BA Convention
Qualified bankers available. Experience ranging from
ag/commercial lenders, operations and top level bank
executives. Call or write.
“ ‘ Professional Service
“ ‘ Confidentiality
‘ “ Competitive Fees-Employer Paid


(515) 394-2325

Banking Specialist

Route 3-Box 48

New Hampton, IA 50659

“Growing With Crestón...
Helping Crestonland Grow”

W e Are Proud of our Mem bership and Association

Northwestern Banker, September, 1986
Federal Reserve Bank of St. Louis


Kirk Gross Architect Bob Jamerson analyzed the situation and de­
termined that a zoned approach*
would solve the existing problems
without adding on to the building.
The first step was to study inter­
action among the bank’s depart-,
ments and the flow of customer traf­
fic and then design a plan to increase
efficiency and offer maximum pri­
vacy to both customers and bank
A study of traffic through the*
bank determined that customers use
the south entrance most of the time.
Convenient parking was added to
that side of the bank when the addi-|
tion was built in 1975. The new plan
calls for adding an atrium-type ves­
tibule on the southwest corner of the
bank. The atrium provides a conve­
nient after hours access to the ATM^
and night depository. The atrium’s
glass enclosure also adds natural
light and created the illusion of a
much larger space.
By closing off the north end door^
and small vestibule area, additional
space is made available for work sta­
tions and another enclosed office on
the main floor.
Grouping the teller stations and<
the customer service area at the
south end, close to the public’s en­
trance, provides easy access to the
customer service area. Additional
privacy for custom ers’ business <
transactions is provided by attrac­
tive screens and the arrangement of
furniture in the loan and new busi­
ness area. On the lower level, the
bookkeeping space was evaluated (
and consolidated into a more effi­
cient arrangement.
Additional insulation will be
added to the building during the re­
modeling and windows along both<
sides of the building will be made
smaller to increase energy efficien­
Outside, a minimum amount of
lighting needs to be added to the*
new atrium entrance. All new land­
scaping is planned to enhance the
south side parking lot. Islands be­
tween sections of parking will be
planted with trees and flowering
shrubs to enhance the appearance of
what is now a huge expanse of as­
phalt. New signage at the north end
of the building will increase visibili­
ty from the street.
Total cost of the 4,300 sq. ft.
remodeling job, including the atrium
entrance, furnishings, signage and
la n d s c a p in g is e s tim a te d at

Io w a N e w s

Kirk Gross Company has earned
national recognition for its design
work, being named the 1983 Re­
modeling Designer of the Year. The
architectural and interior design
£ staff work together under the turn­
key philosophy to provide func­
tional, attractive work place design
with one-source responsibility. For
more information on the design
0 work, contact Jerry Gross, presi­
dent, Kirk Gross Company, 415
Alexandria Drive, Waterloo, Iowa,

• Graettinger Bank Fails




The Graettinger State Bank was
declared insolvent August 7 by
state banking superintendent Wil­
liam R. Bernau. The bank was sold
for a $32,000 premium to the lone
bidder, Swea City Bancorporation,
which re-opened it the following day
as the Graettinger branch of Swea
City State Bank. The purchaser assumed deposits of $11.4 million in
2,600 accounts and just over $9 mil­
lion in assets, and the FDIC ad­
vanced $2.3 million in cash. Swea
City State’s assets will now stand at
about $25 million. The FDIC re­

tained problem loans and other
assets with a book value of $ 2 .8
million. Mr. Bernau said the bank
failure was due not to ag loans, but
to out-of territory commercial loans.

Appointed in Hudson
Hudson State Bank has an­
nounced the appointment of Thomas
H. Witry to as­
sistant vice pres­
ident and cash­
Prior to join­
ing the bank, he
w as
w ith
another area fi­
nancial institu­
tion for eight
years where he
was loan officer,
staff appraiser and manager of the
Traer branch.


with Hawkeye Bank & Trust in Bur­
lington, most recently as vice presi­
dent, senior loan officer. He began
his banking career in 1960, serving
for five years as a senior bank ex­
aminer for the Iowa State Banking

Two Named in Marcus
Walter Sterrett, Jr. has joined the
Farmers State Bank of Marcus as a
vice president. He started in 1955
with the First Trust and Savings
Bank in Anthon and remained there
until 1985. He then became associ­
ated with Carleton C. Van Dyke’s
American Bank Services office in
Sioux City.
Also, Steve Kunzweiler has been
promoted to assistant cashier at the
bank. He joined the staff in 1984.

Promoted in Clarion
Elected in Muscatine
The board of First National Bank
of Muscatine has elected Jerald A.
Eckerson vice president, commercial
For the past 10 years, he has been

Kevin Geis has been promoted to
vice president of Brenton Bank &
Trust Co., Clarion. He has been asso­
ciated with the bank since 1984 and
has had previous loan experience
with the Farm Credit System in
Nevada and Iowa Falls.


Edward L. Tubbs, Chairman
Maquoketa State Bank
former IBA President




Barbara R. Marcus, V.P. & Cashier
Maquoketa State Bank
former IYB President



We’re proud to have played a small part in IBA’s progress
and success. Over the years, MSB has provided personnel
to serve on IBA boards and committees, including an IBA
President and an Iowa Young Bankers President.


Main Bank
203 North Main
Federal Reserve Bank of St. Louis


Westside Office
McKinsey Drive
Northwestern Banker, September, 1986

Norwest Corporation has an­
nounced that George F. Milligan has
been named regional president of its
Iowa banking group, effective Aug­
ust 4, 1986, succeeding Harry C.
Benson, who will be retiring in 1987.
Mr. Milligan, based in Des Moines,
will continue to serve as chairman of
Norwest Bank Des Moines.
Prior to retiring, Mr. Benson will
undertake a number of special as­
signments involving strategic and
acquisition planning and interstate
banking while serving as regional
administrator in Norwest’s retail
and business banking division. He
has returned to corporate headquar­
ters in Minneapolis, Minn.
A former president of Norwest
Bank Midland, Minneapolis, where
he began his banking career in 1940,
Mr. Benson had been regional presi­
dent in Des Moines since Norwest
organized its banking group into re­
gions in 1982. Besides Des Moines,
Norwest banks in Iowa are in Atlan­

tic, Bettendorf, Cedar Falls, Deni­
son, Fort Dodge, Keokuk, Marion,
Mason City, Ottumwa and Sioux

ly-chartered subsidiary of Green
Belt Bancorporation, Iowa Falls, £
has assumed the deposit liabilities
of Citizens State Bank, Iowa Falls.
Citizens State, with total assets
of $51.9 million, was closed on July
31, 1986 by Iowa Superintendent of £
Banking William R. Bernau, and the
FDIC was named receiver.
The failed bank’s two offices re­
opened on August 1, 1986, as Green
Belt Bank & Trust.
Green Belt Bancorp, is principally
owned by Iowa Falls businessman
Merle R. Weaver. Green B elt’s presi­
dent is William Hurd, who was re­
cruited as a troubled loan specialist •
by the failed bank’s former owners.
The assuming bank has agreed to
pay the FDIC a purchase premium
of $1,060,000 and will assume about
$50.9 million in 10,000 deposit a c - #
counts. It also will purchase certain
of the failed bank’s loans and other
assets for $31.1 million. The FDIC
will advance $19.3 million to the as­
suming bank and will retain assets •
of the failed bank with a book value
of about $20.8 million.
Citizens was the largest of the 10
Iowa banks that have failed so far
this year.

Advanced in Cedar Rapids


Mr. Milligan, a former Iowa state
representative and senator, has been
with the Norwest organization since
1961. He was president of Norwest
Bank Des Moines from 1981 until
January 1986, when he was elected

Iowa Falls Bank Assumed
Green Belt Bank & Trust, a new­

Gary Maiden has been appointed
cashier at City
N ational Bank
in Cedar Rapids.
He had been as­
sistant cashier,
vice p resident
since 1985, and
assistant cashier
since 1982. He
joined the bank
in 1978 as a
bank trainee.

Peoples National Bank of Columbus Junction
and Community National Bank of Muscatine
Extend Our Best To The Iowa Bankers Association
For 100 Years Of Outstanding Service To The

peoples national bank
of columbus junction

Banker, September, 1986
Federal Reserve Bank of St. Louis

Banking Industry.

THIRDS MULBERRY . BOX 699 • MUSCATINE. IOWA 52761 • (319)263-1122 • Member FOIC


Dunshee, cashier, and other person­
nel of Exchange State will continue
in their present positions, he said.
Mr. Hested was graduated from
the University of Iowa in 1972 and
joined the Iowa department of bank­
ing as an examiner for three years,
then joined the staff of Norwest
Bank Atlantic, N.A., where he re­
mained until joining Farmers State
Bank in Jewell four years ago.
Mr. Rude is a graduate of the
University of Northern Iowa and
worked for ITT Commercial Credit
before joining the Jewell bank four
years ago.
Io w a N e w s

Dubuque Bank Names Three

Patrick H. McGraw has been
elected as executive vice president
and senior loan
officer of Ameri­
can Trust and
# Savings Bank,
Dubuque. Prior
to joining the
bank, he was
vice president
• and commercial
loan manager for
First Bank of
South Dakota,
Sioux Falls.

Collins Bank Is Sold
Gary Hested and Mike Rude of
Jewell head a group of investors who
have purchased Exchange State
Bank of Collins. The bank was pur­
chased from Bankers Trust Com­
pany, Des Moines, which had taken
title in 1985 from former owner
William W. Burrell.
Mr. Hested has been elected presi­
dent of Exchange State Bank, but
will remain in Jewell, where he is ex­
ecutive vice president and cashier of
Farmers State Bank. Mr. Rude has
resigned from the Jewell bank as
vice president to become executive
vice president of Exchange State.
William C. Hamilton, who has
been president and trust officer of
Exchange State Bank, will continue
as senior vice president, Mr. Hested
announced. In addition, Dorothy C.

Cherokee Banker Dies
Lawrence C. French, vice presi­
dent and director of the Central
Trust and Savings Bank, Cherokee,
passed away recently.



Daniel C. Willenbring has been
elected as vice president and officer
in charge of the bank’s office in
# Dyersville. He was associated with
Security State Bank in Guttenberg
as vice president previously.
Robert I. Peacock has been
elected as business development and
• community affairs officer. Prior to
joining the bank, he was general
manager for Armstrongs depart­
ment store in Dubuque.


Oliver A. Hansen
President - I.B.A. 1967-1968
86th President of I.B.A.

* IBA Consumer Credit School

Thanks to Ollie
40 Years of Service
To Liberty Trust

Set For Oct. 19-24
The Iowa Bankers Association
consumer credit school will be held
® October 19-24 at Drake University
in Des Moines.
Cost of the 200-level consumer
credit school is $700, which includes
room, meals, casebook and study
® materials.
The curriculum has been de­
veloped in cooperation with the
American Bankers Association,
industry experts from throughout
the country, ABA staff members,
the school advisory board and IBA
staff members.
Our Thanks to
IBA, for a Century
of Excellence!!!
Federal Reserve Bank of St. Louis

O ffice at New Liberty, Iowa

The directors, officers and staff of First National
Bank of Muscatine congratulate the Iowa Bankers
Association on its 100th Anniversary.


National ofBank
Northwestern Banker, September, 1986


Io w a N e w s

Iowa Banking History. . .
(C ontinued fro m page 54)

plishments of IBA today, Neil is quick to point out,
“You know, this wouldn’t have been possible without
the solid foundations and structure built by Frank
Warner and Art Lindquist.’’

Truly, it has been a long, arduous, exciting, some­
times volatile, but never dull journey for Iowa’s bank­
ing industry since it set forth with one institution, The
Miners’ Bank of Dubuque in 1837. That was an inaus­
picious beginning, considering the extremely adverse

public opinion of that bank and its owners. It was
another 50 years before solid, public-minded bankers 0
formed the Iowa Bankers Association at a founding
convention July 26, 1887.
It seems poetic justice, therefore, that the strong
leader who will preside at IBA’s Centennial Conven­
tion this month should be a most capable, professional 0
banker from Dubuque, the birthplace of Iowa’s bank­
ing industry. It is truly fitting that J. Bruce Meri­
wether, president of the First National Bank of Dubu­
que, the oldest chartered national bank (1864) in Iowa
to continue in operation under the same name, should 0
preside at the meeting that will launch IBA into a
year-long celebration not only of the association’s
100th year, but also of the entire industry’s 150th year
of serving the people of Iowa!

Named in Cedar Falls

Appointed in Waterloo

Appointed in Winterset

Donald D. Lindaman, chairman
and president of Cedar Falls Trust
S a v in g s
Bank, has an­
nounced the ap­
p o in tm e n t of
Bryon J. Huff as
Mr. Huff, a
1985 graduate of
Sim pson Col­
lege, was former­
ly affiliated with
First Interstate
Bank of Des Moines.

Larry D. Fox has been appointed
to director of community relations
of The National
Bank of Water­
Mr. Fox is
also a teacher in
the business de­
partment at Cen­
tral High School
in Waterloo and
will continue to
teach on a parttime basis, as
well as perform his bank duties.

Jeanne Utsler has been appointed
assistant cashier of the Union State
Bank, Winterset. She has been with
the bank for 18 years.

In d e x o f
A d v e rtise rs


Advanced Resource Technologies, Inc...............................13
AgrICareers, Inc..................................................................... 91
Allied Group Securities, Des Moines................................. 92
American National Bank, St. Paul ..................................... 40
American State Bank, Sioux Center................................... 90
American Trust & Savings Bank, Dubuque....................... 76
Austin, Douglas & Associates, Inc...................................... 10
Babe’s Restaurant, Des Moines......................................... 91
Bankers Plus, Inc.................................................................. 8
Bankers Trust Co., Des Moines ..........................................58
Bank Loan Management, Ocheyedan............................... 84
Banks of Iowa, Inc............................................................ 48-53
Brandt Money Handling Machines, O m a h a ..................... 73



Central State Bank, Muscatine..............
Central Trust & Savings Bank, Cherokee
Chase Manhattan, New Y o r k ................
Commercial National Bank, Peoria . . . .
Community National Bank, Muscatine .
Creditor Resources, Inc...........................
Crystal Tree Restaurant, Des Moines ..


Data Business Equipment, Inc...............
Davenport Bank & Trust Co.....................
Decorah State Bank................................


U lellm an Savings b an k
Wellman, Iowa






Farmers Savings Bank, T ra e r..............................................70
Farmers State Bank, Marion................................................62
Farmers Trust & Savings Bank, Earling............................. 84
Federal Home Loan Mortgage Corp................................... 4-5
First Bank Minneapolis/St. P a u l................................... 82-83
FirsTler Management Consultants, O m a h a ..................... 35 0
First Interstate Bank, Des Moines................................. 86-87
First National Bank, C hicago..............................................75
First National Bank, Dubuque ........................................... 80
First National Bank, Iowa C ity ........................................... 91
First National Bank, M uscatine......................................... 97
First National Bank, New Hampton................................... 92
First National Bank, O m aha...................................................... 69
First National Bank, W averly............................................. 97
First Newton National B an k............................................... 90
First State Bank, Ida Grove..................................................78
Gross, Kirk Co., W aterlo o .................................................. 71
Guido’s Restaurant, Des M oines....................................... 92
Heritage Industries..............................................................29



IAC G roup...............................................................................23,66 ®
Imperial House Restaurant, Des Moines........................... 90
Information Technology, Inc................................................ 11
Iowa Bankers Insurance & Services, Inc.............................89
Iowa State Savings Bank, Creston..................................... 94
ITS, Inc.................................................................................... 93
Kansas Bankers Surety Co...................................................79
LaSalle National Bank, Chicago ....................................... 7
Lee County Savings Bank, Fort Madison ......................... 90
Liberty Trust & Savings Bank, D u ran t............................... 97
Mahaska State Bank, Oskaloosa....................................... 74
Maquoketa State B a n k ........................................................95
Marquette Bank, Minneapolis ........................................... 45
Melvin Savings B an k ............................................................73 —
Midwest Personnel ..............................................................94 w
Mt. Auburn Savings B a n k ....................................................70
National Bank of Commerce, Lincoln............................... 37
National Bank of W aterloo................................................. 63
North Central Life, St. P aul................................................. 99
Norwest Bank, Des Moines................................................100
Norwest Corporation, Minneapolis................................... 9
Office Concepts, Ltd., Waterloo................................................. 68^
Okey-Vernon First National Bank, Corning....................... 88

Iowa Bankers Association
100 years of service
to your Members

. - i ^ W e ’re working on 84 years.

“Oldest Bank in Story C ounty”
Banker, September, 1986
Federal Reserve Bank of St. Louis

E.F. Hutton & Co., Inc............................................................ 70
Essex Inn, Chicago .............................................................10
Exchange State Bank, Collins ........................................... 98


Brenton Banks, Des M oines.............. .. .
Brock Associates, Milwaukee ..............


Deems Associates, A m es....................................................68
Des Moines Stamp Mfg. Co.................................................. 66
Drovers Bank of C hicago................................................14-15

Page County State Bank, Clarinda..................................... 88
Peoples National Bank, Columbus Junction ................... 96
Plus System, Inc., D enver....................................................18
Reichardt’s Clothing, Des M oines..................................... 81
Rothschild, Unterberg, Towbin, L.F., Inc........................... 3
Security State Bank, Hubbard ........................................... 78
Southwestern Graduate School of Banking..................... 16
St. Ansgar State B an k ..........................................................88
Swords Associates, Inc., Kansas C ity .............................. 6
United Missouri Bank, Kansas C ity ................................... 32
U.S. Check Book Company, Om aha................................... 78
Wellman Savings B a n k ........................................................98

VtfeTake Care of the Paperwork...

So You Can Take Care of "four Custom ers.
At North Central, years of experience working with
thousands of banks, have taught us the value of
sim plicity. H ow to e lim in a te th e hassles an d
administrative red tape of most typical credit insurance
programs. And, how to free up the energies of your
bank’s loan officer for what they do best—banking.
We call our approach, “A BETTER WÆT. And it
m eans just that.
It m eans generating profits—not problems.
It m eans installing a proven, loan-related insurance
program that can protect your entire loan portfolio.
It m eans a com puterized claims system that settles
your custom ers’ claims nearly 50% faster than the
industry average.

It m eans a “BETTER WAf DESK” that puts solutions
to complicated rate calculations and approvals for
overlimit loan applications, just a quick, toll-free phone
call away.
It m eans training your loan officers and adminis­
trative people to make them m ore productive and
And it m eans that we take care of the paperwork
so that y o u ’re free to take care of your customers.
And that’s what banking’s all about. Right?
We d o n ’t have the answer to headaches caused by
the com m on cold. But if you’re looking for a rem edy
to headaches caused by the com m on credit insurance
program, call

“Am erica’s #1 Credit Insurance Service Organization.’’

North Central Life Insurance Company

In Minnesota Call 800-792-1030, all other states 800-328-9117.
Protection all ways
Federal Reserve Bank of St. Louis

Top row: George Milligan, H. Lynn Horak, John Rigler, Mark Conway.
Bottom row: Tom Quinlin, John Cretzmeyer, Jay Nichols, Dorothea Wolfe.

Iowa Bankers Convention
September 14-16,1986
Marriott Hotel of Des Moines

will be there. We look forward to seeing
you and hope you’ll pay a visit to our bank
while you’re in Des Moines.

The winds of change are b lo w in g in the economy, in agriculture, and most
certainly in banking.
We’ve never had more pressing reasons
to get together, discuss these changes, and
listen to some expert opinions on topics
vitally important to our business future.
All of us from Norwest Bank Des Moines

Norwest Bank Des Moines, NA.
7th & Walnut,
Des Moines, Iowa 50304
Federal Reserve Bank of St. Louis

We KnowTheWky We Are Norwest.