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b rask a vBanK E xperim ent# with A lternative Cr
D allas Will H ost
Federal Reserve Bank of St. Louis

• D r. Doug A u stin D is^ iissfes^ d rnirti^ jati^ e C

J erry Trudo

D ick Retí


D en n is Earhart

Terry M artin

A ndy A p p leto n

Correspondent Division

Merchants National Bank is i
C edar Rapids, Iowa 52401
Federal Reserve Bank of St. Louis

Member F.D.I.C.


D o u g Bass

Now Plus System' ATMs
Will Be Among The M ost Popular
Attractions In New Orleans.

New Orleans’ renowned French Quarter offers a unique experience for millions of tourists each year. Amidst this
old world charm and throughout New Orleans, visitors will soon be able to access PLUS SYSTEM Automated
Teller Machines (ATMs). Mr. Joseph V. Wilson III, executive vice president of First National Bank of Com­
merce, was instrumental in bringing First NBC into the internationally shared PLUS SYSTEM ATM network.
“Our decision was driven by the exceptional leadership we saw within the PLUS
SYSTEM organization,” cited Mr. Wilson. “Other factors included the recent Visa
affiliation and the PLUS SYSTEM network’s strong geographic coverage. We wanted
to give our customers the high level of service and convenience they now have through
our tie with the GulfNet regional network, but on an international basis. The PLUS
SYSTEM network’s broad coverage and continued rapid growth coupled with its
excellent service record satisfied our objectives extremely well.”
Isn’t it time your financial institution joined the leading ATM network as a
PLUS SYSTEM member? For complete details on all the options available, call
Ron Reed at Plus System, Inc., (303) 620-7318.

Federal Reserve Bank of St. Louis


Sayre Elected President of
Robert Morris Associates

SEPTEMBER 1987 • 94th year • No. 1488

John Chrystal, chairman and CEO of Bankers Trust Company, Des Moines ($550
million assets), and chairman of Iowa Savings Bank, Coon Rapids, la. (assets $31
million), recently completed his 14th trip in the past 27 years to the Soviet Union,
all at the invitation of what nation’s Ministry of Agriculture which has asked him
to critique Soviet agriculture and offer suggestions for improvement. Mr. Chrystal
is shown in the center of the cover photo (in plaid shirt) with Russian hosts show­
ing him a tea plantation in the Caucasus. His interesting story begins on page 22.



Agricultural update
Help your ag customers change

Nebraska banker Kelly Holthus leads way with alternative crop experiment


ABA convention program

Dallas will host nation’s bankers October 17-21


Association executives meet

Central States Conference leaders share productive ideas


Administrative orders— Part II

Dr. Doug Austin tells how they happen, what to do


Understanding interest cycles

Ron George analyzes how to cope with their changes


Twin Cities


South Dakota
North Dakota




101st Convention Program
You Will See Them at the Convention
Interview with IBA President Russ Howard
Bill Talen Flies His Plane to Munich
Group Chairmen Report Ag, Business Conditions
Des Moines News

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

Phone (515) 244-8163

Publisher & Editor

Associate Publisher

Associate Editor

Ben Haller, Jr.

Robert Cronin

Diane Nelson

No. 1488 Northwestern Banker (USPS 397-620) is published monthly by the Northwestern
Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309. Subscription
$2.00 per copy. $24 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.
Northwestern Banker, September, 1987
Federal Reserve Bank of St. Louis

William H. Sayre, executive vice
president, Fidelcor, Inc. and Fidelity
Bank, Philadel­
phia, was elected
p re s id e n t
Robert Morris
A sso c ia tes in
the association’s
annual election
on A ugust 7.
RMA is the na­
tional associa­
tion of bank loan
and credit offi­
Thomas E. Boland, vice chairman
and chief administrative officer,
First Atlanta Corporation and its
lead bank, The First National Bank £
of Atlanta, was elected RMA’s first
vice president. David L. Eyles, chief
credit officer, Chemical Bank, New
York City, was elected second vice
president. All terms are for one year. %

United Missouri Promotions
United Missouri Bank of Kansas £
City, N.A. has announced the follow­
ing promotion and elections:
Robert S. Harr has been pro­
moted to senior vice president in the
commercial banking department. He £
leads the commercial and residential
real estate lending for the bank. Mr.
Harr joined United Missouri in 1977
after being affiliated with other
banks in Maryville, Mo. He holds a %
bachelor’s degree in finance from
Northwest Missouri State Universi­
ty in Maryville, Missouri.
M. Diane Summers has been
elected an assistant trust officer in %
the employee benefits department of
the trust division, responsible for
administering retirement accounts
for employee benefit customers.
Ms. Summers joined United Mis- #
souri Bank in 1984 as a pension
trust administrator.
Theresa J. Wright has been
elected assistant corporate trust
officer in the trust division where •
she is responsible for the adminis­
tration of various corporate trust ac­
counts. She was previously associ­
ated with another financial institu­
tion before joining United Missouri •
in 1984 as an administrative trainee.
Mary A. Batson has been elected
a personal banking officer where she
is responsible for retail sales and
customer service.


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First Bankers Securities
Federal Reserve Bank of St. Louis

200 Brick & Tile Building • Mason City, Iowa 50401
Toll Free - (800) 952-7899 * In Iowa - (800) 325-3030


Across The Desk from the Publisher
Dear Readers:
Two events stand out in my life as the epitome of
what it means to be a real banker, one who can combine
good business judgment with a human understanding
of one’s genuine need at a crucial time. I have shared
these rather personal and emotional stories publicly on
only one occasion on the spur of the moment, but one
of the bankers involved died recently and that prompts
me to share with all of you these two special events in
my life.
The first occurred in 1935 in Omaha, where I was
born and reared. My father was a native of Blair,
Nebr., was graduated from Creighton University
School of Dentistry in 1913 and had been a successful
dentist in Omaha until he was sidelined with a crippl­
ing disability in 1927 at the age of 37. That was tough
for one who was a four-letter football player, a basket­
ball player, a former city tennis champion, an 80 golfer,
an avid hunter and fisherman, but he never com­
plained. He had more important things on his mind—
he had a family of 14 children to feed, clothe, house and
send to school!
Three months before he was disabled, he had finally
said “Yes” to an insurance agent patient of his and
had taken out a disability-for-life income policy that
paid him $4,800 per year—about one-third of his
former income. (At that time, disability was limited to
$10 per thousand of life insurance owned, and Dad had
$40,000 in coverage, a fairly large amount in those
days.) After three months in the hospital and in bed at
home, he was able to get around for about two years or
more with a body cast from his shoulders to his waist,
and with the help of crutches. Later, he carried a cane
most of the time in the event of fatigue.
After having paid Dad his $400 per month from the
time of his disability, the insurance company began
delaying tactics on monthly payments after the Great
D epression set in w ith a vengeance—about
1932-33—and finally in 1935 the company ceased
payments, declaring my Dad was faking, etc., and filed
a lawsuit against him stating he owed them the money
they had paid him already! My two oldest sisters were
completing their college education with two-year
academic scholarships both had won. I was the oldest
of eight sons, carried newspapers, had two minor parttime jobs and was barely 16. The big squeeze was on by
the big insurance company trying to force my Dad into
a settlement for a drastically reduced amount.
Dad had one angina attack after another from the
tension and worry. My mother, who could give lessons
to Congress and the Director of the Budget on how to
eke out one’s finances, held the family together finan­
cially and spiritually, while taking care of her ailing
Then, I remember the day Dad was called to the
telephone! It was J. Frank McDermott, vice president
at First National Bank of Omaha, and Dan J. Monen,
trust officer and head of the trust department at
Omaha National Bank. I recall vividly standing in the

Northwestern Banker, September, 1987
Federal Reserve Bank of St. Louis

big hallway watching Dad listening without interjec­
ting a word. At the end of the brief conversation h e ^
was able only to say, “Thank you, both of you, an d w
God bless you.” He turned from the phone to Mother,
who was standing by not knowing who was on the
phone and through his tears on that kindly, loving face
I heard him say merely, “Well, Mother, we’re saved!” q
When the emotions died down he related that those
two bankers, both long-time friends of his, had called
with a brief message: “Ben, we have every confidence
and trust in you. We know you’re going to win this
lawsuit and we’re going to see you through it. We’re ^
depositing $1,000 in your account (at First National, in
whose building he had his dental office since 1917).”
That’s all there was to it. No discussion of payback, no
discussion of collateral or formalities, just “We’ve
deposited $ 1,000 in your account!”
I have no knowledge of what discussion, if any, took
place prior to that phone call. All I can tell you is that
as a 16-year-old boy I was highly impressed with what
those two men did for my mother and father, and I was
impressed by the fact my parents had friends like that. 9
I can also recall they were among the very first to be
paid back from the judgment awarded my father when
he won that suit more than two very long years later.
It was my good fortune to know Frank McDermott
and Dan Monen personally after I joined this magazine £
in October, 1945.
The second event was an even more personal one and
took place about February 8, 1958, barely a week
before I was to sign a contract purchasing a partner­
ship interest in our magazine. Unexpectedly, I came up #
$5,000 short for the rest of the cash down payment I
was to make. I decided to go down to the Central Na­
tional Bank here in Des Moines (now First Interstate)
and confer with Ed Buckley, then president of the
bank, who had earlier told me to let him know if I need- #
ed help. I recall looking up at the big lobby clock over
the east door and it said 8:45 a.m. as I walked in. Ed
was in his office alone, just off the lobby, and when he
saw me out there he waved me into his office.
His first words were, “You look like you lost your •
last friend! Is there something I can do?” I explained
briefly, then told him we had paid cash for our lot and a
large share of the new home we had moved into just
nine months earlier, so I was cash poor right then. I
remember telling him all I could give him was my paid- •
for car as collateral and a second mortgage on our new
home. E d’s response was brief: “ I don’t want your
house or your car. All we need is you working. How do
you think you can pay it off?” When I told him pro­
bably in three years he said, “Come on with me.”
We walked out to the note cage across from his of­
fice. Ed reached through, pulled back a padded form
and wrote in the date and $5,000. He asked me to sign
(Turn to page 88, please)


. Profit from

The Correspondent Bank Division at United Missouri Bank has a staff
of experienced bankers. Craftsmen. Craftsmen who know the business of
handling correspondent accounts. Craftsmen who can help your bank with
everything from investment, brokerage and data processing services to
bankcards, asset/liability m anagem ent, loans, cash letters/transit and more.
So start to profit from our highly skilled people today. Call a United
Missouri Bank Account Officer today.

of Kansas City, n.a.
Member FDIC
Federal Reserve Bank of St. Louis

P.0. Box 226 Kansas City, Missouri 64141 (816) 556-7900


United Missouri Bank Signs Marketing
Accord with Modern Banking Systems
NITED Missouri Bank recently
signed a marketing agreement
with Modern Banking Systems, Inc.
of Omaha to offer an in-house data
processing system to banks.
United Missouri has exclusive
liscensing rights in Missouri to lease
a complete MBS software and hard­
ware package that will enable the
customer to process all internal ap­
plications. United Missouri will mar­
ket and service the system through-

out the Midwest region, including
Kansas, Iowa and Illinois.
“ This MBS package allows
United Missouri to enhance its fami­
ly of data processing facilities,”
states Gary Foltz, senior vice presi­
dent in the operations department of
United Missouri Bank of Kansas
City. “Many community and inde­
pendent banks need the capabilities
to process their daily transactions
for demand deposit, loans and other

CONFERENCE is coming to exciting...
and historic
Washington, DC
November 15-18,1987


accounts. This package has the flexi-1
bility to adapt to the specific needs
of these smaller banks, yet it is rela­
tively simple to operate and man­
United Missouri has been a recog-<
nized leader in providing data pro­
cessing needs for community banks.
The MBS package offers a cost ef­
fective alternative to the main­
frame processing that United Mis-i
souri continues to offer. The new
UMB system offers customers’ high
performance minicomputer tech­
nology not available on micro- or
personal computers. The software *
includes a central information file,
proof of deposit and MICR entry,
demand deposit accounting, applica­
tions for savings, individual retire­
ment accounts and certificates of*
deposits. In addition, the system
has loan, general ledger and audit
confirmation capabilities.
United Missouri provides its inhouse processing system customers*
with a complete package of mini­
computer hardware, the MBS soft­
ware, service and maintenance for
the entire system, installation and
Modern Banking Systems, Inc.
provides in-house data processing
systems specifically for financial in­
stitutions. The company, which is
headquartered in Omaha, Nebraska,
markets the software with computer
systems manufactured by Texas In­

Consumer Bankers Name
Joe Belew as President

Come to Washington and join your peers in thought-provoking,
educational, and profitable exchange of ideas. You will benefit personally
and professionally from the clearer, more practical perspective you
will gain.
For program, details and a registration packet, phone ABA Banker Education
Network (202) 663-5430
-------------- AMERICAN

Banker, September, 1987
Federal Reserve Bank of St. Louis

The Consumer Bankers Associa­
tion board of directors named Ex- 0
ecutive Vice President Joe Belew to
succeed Thomas E. Honey as presi­
dent, effective Aug. 31.
Mr. Honey, president of CBA for
the past two years, announced his II
resignation effective Aug. 31 to
become senior vice president and di­
rector of marketing at the Califor­
nia-based firm of DHL Worldwide
Express, an overnight document II
and small parcel delivery firm, with
annual sales exceeding $1 billion.
Before joining CBA, Mr. Belew,
38, served as chief aide to U.S. Rep.
Doug Barnard, D-Ga., a prominent #
member of the House Banking Com­
mittee. He previously served as a
staff aide in the Senate, and has
served in and directed several poli­
tical campaigns, including advance •
work for national candidates.


There is no substitute.
Find out why
more financial institutions
turn to
Information Technology, Inc
P.O. Box 2705
Lincoln, Nebraska 6 8 5 0 2
(4 0 2 )4 2 3 - 2 6 8 2

Federal Reserve Bank of St. Louis


George Beck Heads LaSalle’s^
Financial Services Area

LaSalle National Bank supports you. With
more than halt a century of e x p erien c e ...
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 and 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 and 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 an d the LaSalle
Correspondent Banking team will give you
u n b e a ta b le support —with better service,
better products and better ideas.
LaSalle National Bank
135 South LaSalle Street
Chicago, Illinois 60603
Member FDIC
Member of the ABN/LASALLE group

Your Correspondent Banking Bridge
© 1 9 8 6 L a S a lle N a tio n a l B an k

George J. Beck, Jr., the national
director of financial services with
Ernst & Whinney, was named
executive vice
president of ad­
ministration at
LaSalle National
Bank in Chicago,
effective Sep­
tember 1 .
After a long
career with the
public account­
ing firm, Mr. Beck will be in charge
of LaSalle’s financial planning, comp­
trollers, auditing and tax divisions.
He will direct these same activities ^
also as executive vice president o f ^
ABN/LASALLE North America,
Inc., the management company for
the North American banking net­
work of Algemene Bank Nederland, ^
Mr. Beck was made a partner at
Ernst & Whinney in 1986 and
became head of the firm’s midwest
banking practice. During his tenure ^
in Chicago, Mr. Beck’s client list in­
cluded LaSalle, Continental Bank
and Exchange Bank.
Homer J. Livingston, Jr., chair­
man and chief executive officer of £
ABN/LASALLE North America,
Inc., said, “George Beck is not only
a seasoned banking pro, but he is
also particularly well-versed on Chi­
cago banking. He will be a tremen- q
dous asset to the organization.’’
Most recently, as partner in
charge of the financial services
group in New York, Mr. Beck di­
rected the firm’s nationwide auditing, consulting and tax services to
financial institutions.
In addition, he was chairman of
the firm’s financial services industry
committee and co-chairman of the #
international banking committee.
Earlier in his career with Ernst &
Whinney, Mr. Beck helped write the
Original Bank Audit Guide for the
American Institute of CPAs.

Promoted at Heller, Inc.
Mitchell F. Vernick has been
named executive vice president of ty
the Leveraged Funding Group of
Heller Financial, Inc. He will be
based at the company’s headquar­
ters in Chicago. The appointment
was announced by Michael J. Lit- #
win, Group President.
Banker, September, 1987
Federal Reserve Bank of St. Louis












Chances are, your bank has
been exposed more than once to
“bond service.”
It’s transaction-oriented
service from people who know
bonds, not banks. So the advice
you get too often goes no
further than offerings and occasional bids.
Bond service is not what
L. F. Rothschild, Unterberg,
Towbin provides. Our specialty
is BANK SERVICE* Over 25
years of service that combines
intimate knowledge of bonds
with in-depth understanding of
your portfolio in the same light
as you do: As a crucial com­
ponent of your bank’s overall
position. Not as an independent
Federal Reserve Bank of St. Louis

That’s why before we make
a recommendation we conduct a
thorough study of your bank.
committee meets to discuss the
Bank Report we’ve prepared
specifically for you.
The recommendations
from the committee are tailored
to your bank's present position
and future objectives in a chang­
ing marketplace.
Our PMS system can help
you monitor and manage
your portfolio. We’ll introduce
you to our Fixed Income Com­

puter Service, our investment
banking group, our fixed income
research, send you our news­
letter and invite you to appro­
priate seminars that 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 way no mere bond
service can.
So, while you may be get­
ting bond service, what you
really need is BANK SERVICE.
Call Mark Rosen, Principal, at
(212) 412-2600.


Northwestern Banker, September, 1987


Names synonymous with correspondent
banking at Drovers. Almost 1 5 0 years
combined experience.

Frank Bauder
Chief Financial Officer

FBS Insurance Rises to
14th Place in the Nation

FBS Insurance, a subsidiary of
First Bank System, Minneapolis/St.
Paul, Minn., has risen to 14th largest among U.S. insurance brokers, 9
according to a recent survey by
Business Insurance, an industry
publication. FBS Insurance is both
the largest U.S. insurance broker ^
operated by a bank holding com- 9
pany and the largest broker head­
quartered in the Upper Midwest.
The firm was ranked 15th largest in
last year’s survey, which bases per- ^
formance on annual gross revenues.
In 1986, gross revenues increased
8.6 percent to $29.2 million in 1986
from $26.9 million the previous year.
Premium volume increased 28.5 per- ^
cent to about $166.5 million from
about $129.6 million in 1985.
FBS Insurance provdes both life/
benefits and property/casualty pro­
ducts through 296 employees in 19 £
agencies in Minnesota, North Da­
kota, Montana and Wyoming, as
well as in all First Banks located in
Minnesota, Wisconsin, North Da­
kota, South Dakota and Montana. ^

BAI Offers New Programs
John Crotty, Jr.
Sr. Vice Pres.

Knowledgeable years...handling Overline
Loans, Capital Requirements, Investments
and Safekeeping. So consider Drovers for
your correspondent needs. Y ou’ll find a
continuity of policy. And a continuity of
people. Like Frank. And [oe. And John. And

Call toll free 1-SOO-621-S991
In Illinois 1 -8 0 0 -5 7 2 -2 4 9 8

Cole Taylor Bank/Drovers
4 7th and Ashland Avenue
Chicago, Illinois 6 0 6 0 9
3 1 2 -9 2 7 -7 0 0 0

“Be sure to tear o ff the facing
information card which lists our
correspondent banking services.

Banker, September, 1987
Federal Reserve Bank of St. Louis



Bank Administration Institute
has announced a series of highly pro­
ductive, cost-effective in-bank train­
ing programs designed to bolster the *
total sales performance of financial 9
The new programs focus on pro­
ductive selling, customer develop­
ment, sales management, teller re- —
ferrai training and interpersonal 9
Each of the programs, which last
one to three days, can be custo­
mized to reflect an individual bank’s ^
special concerns. Professional train­
ers lead the sessions or can instruct
in-bank trainers on how to conduct
To produce challenging programs ^
for participants, a variety of teach­
ing aids are employed, including de­
tailed reference manuals than rein­
force ideas introduced in the ses­
sions; short video vignettes; com- q
puter-based performance tools and
videotape role plays.
For more information about the
programs call Stephen Rowe, man­
ager of in-bank training services, at ^

W hen it comes to financial service
companies, ours stands out. In many ways.

And one of the most important is the
personalized service you get through a team of
Field Representatives who are well aware that
banking has changed, and who know the needs
of today's banks. They offer you bank-designed
programs that build profits for you and are a
valuable service for your customers—a complete
line including Credit Life tailored to fit your
loans, Commercial and Real Estate protection
for larger loans, Collateral Protection, Financial
Planning, and Executive and Director Programs.
What's more, IAC gives you important service,
training and fee income advantages. To find out
more, give us a call. And find out for yourself
why so many thousands of lending institutions
in the United States and abroad agree that the
IAC Group is outstanding, in many ways.
A Full Service Company for The Full Service Bank

I 0^ ’up
Individual Assurance Company
1600 Oak St. • Kansas City, MO 64108
Phone toll free in Missouri (800) 892-5890,
other states (800) 821-5434.
Federal Reserve Bank of St. Louis

The program, designated “U ni-^
fied Facilities Development,” goes
well beyond the services offered by
any other architectural or design/
firms, according to Rex H.
NEW approach to financial fa­ broader range of research and plan­
cilities development — one that ning services — has been introduced Dunlap, Bank Building executive ^
vice president and chief operating
addresses industry demands for a by Bank Building Corporation.
Mr. Dunlap said the Unified Fa­
cilities Development approach re­
sponds to the growing demand from 0
financial institutions for help in
dealing with new operational and
marketing requirements. “Financial
The Superior Performance Information Network
executives are coming to realize that
in order to remain competitive #
they’re going to have to capture
every possible efficiency,” Mr. Dun­
lap said. “ Institutional performance
must be viewed from a more compre­
Through Professional Consulting
hensive viewpoint. Operations, mar- #
keting and facilities management
are inseparably interrelated.”
-Ronald L. George, President
The Unified Facilities Develop­
-David C. Melena, Executive V.P.
ment approach responds directly to
this new concern by supplying #
-Robert E. Neville, V.P.
authoritative analysis and recom­
mendations concerning operational
efficiencies, marketing objectives
and strategic planning before design
begins, Mr. Dunlap said.
^ Midwest M anag ement Consultants
“We’re getting into the process
9140 West Dodge Road, Suite 270 Omaha, Nebraska 68114 (402) 391-1344
much earlier than design firms have
traditionally done, providing a com­
prehensive framework for an institu­
tion’s facilities-related decisions. •
We’re also ‘getting out’ of the pro­
cess later, offering warranty pro­
grams that maintain our relation­
ship for years after the facility is
he stated.
NO Do you currently write more than SI million
As a result, Unified Facilities
Development does more than simply
annually of Credit Life and Accident and Health
produce an attractive, functional
Insurance through financial institutions?
facility, Mr. Dunlap said. “ It leaves
NO Can you m ove your m illion-dollar business
the institution itself with an in- ®
formed understanding of its own
to another insurer?
market, of its marketing objectives,
and of its present and future opera­
If you said “y e sf we m ay have a better deal fo r you.
tional structures. In an extremely
agents to represent us in Hawaii,
We’re Balboa Life and Casualty,
competitive environment, those are “
things this industry needs.”
Montana, or Wyoming. If you
an A+ /rated carrier writing

Bank Building Corp. Now Offers
Unified Facilities Development



Superior Performance Banking

Attention Agents:

qualify, we’re ready to offer you
more than S100 million nation­
an exclusive company relation­
wide, with a complete line of
ship in these states. We can grow
highly-successful credit-related
and prosper together. Let’s talk
coverages. We’re looking for
right away. Call or write:
reputable and financially-stable
Dave Bridges, Senior Vice President

3349 Michelson Drive
Irvine, CA 92715-1606
(714) 553-0700
(800) 854-6115 outside California
Banker, September, 1987
Federal Reserve Bank of St. Louis

BAI Names New Chairman
Philip F. Searle, chairman of the
board of Sun Bank/Naples, N.A.,
Naples, Fla., has been elected chair­
man of the board of Bank Adminis- #
tration Institute for 1987-88 fiscal
year. The new chairman-elect of the
Institute is Michael P. Esposito, Jr.,
executive vice president and chief fi­
nancial officer of Chase Manhattan #
Bank, N.A., New York.


• Phoenix Will Host BMA Conference
HE president and chief operating
officer of First Interstate Ban­
corp., Edward M. Carson, has been
added to the roster of those slated to
speak at the Bank Marketing Asso­
ciation’s 72nd National Marketing
Conference, to be held Sept. 27-30 at
the Phoenix Civic Plaza.
Mr. Carson, whose session is
titled “Don’t Look Back—Some­
body May Be Gaining on You,” will
discuss how First Interstate is posi­
tioning itself for success in the com­
ing years. During his career, Mr.
Carson helped pioneer bank fran­
chising and the national Cirrus
ATM network.
BMA’s Annual Conference is the
premier marketing event of the year
for financial institution marketing
executives across the nation. The
four-day conference is expected to
draw 2,000 participants.
Also headlining the BMA Na­
tional Marketing Conference as
speakers are: Lawrence Kudlow, chief
economist at Bear, Stearns, & Co.,
who is also editor of The Global
Spectator, the company’s economic

forecast publication; Michael Mescon, dean of the College of Business
Administration at Georgia State
University and head of a consulting
firm that has worked with busi­
nesses in areas ranging from organi­
zation redesign to arbitration; and
Charles Garfield, author of the best
seller Peak Performers and a mem­
ber of the clinical psychology facul­
ty at the University of CaliforniaSan Francisco.
On the National Conference’s en­
tertainment calendar is a special
presentation by Broadway-TV actor
James Whitmore who will present
his one-man show, “The Wit and
Wisdom of Will Rogers.”
Apart from the main general ses­
sion speakers, a special “hot topic”
session on the future of debit cards
is planned. Offering their perspec­
tives on the topic will be John F.
Fisher, senior vice president, Banc
One Corp., and Alex W. Hart, execu­
tive vice president, First Interstate
The above speakers will appear in
General Session presentations,

—___*____ -__ __________

which are intended to offer talks of
general interest from “name” pre­
senters. In addition to general ses­
sions, the BMA National Marketing
Conference will consist of strategic
sessions, which will focus on new
ideas in bank marketing, and tacti­
cal sessions, which will concentrate
on specific case studies and will be
offered in classroom-style settings.

Joe Orlando Dies at 77
Joseph (Joe) Orlando, 77, a long­
time St. Louis banker, died Wednes­
day, August 12, 1987 after suffering
a stroke at Depaul Hospital in St.
Louis. Mr. Orlando was widely
known in the banking industry in St.
Louis and throughout much of the
He was born in St. Louis in 1909,
and began his career at the First Na­
tional Bank in St. Louis (now Centerre Bank in St. Louis) in the collec­
tion department. He eventually as­
sumed responsibility for the bank’s
correspondent banking business in
Illinois, Indiana, Kentucky and
Iowa. Mr Orlando retired in 1974 as
vice president.

_________ !

The Foundation of the Southwestern G ra d u ate School of Banking is a nonprofit organization dedicated to edu cat­
ing bank executives at all levels of m anagem ent.
Interm ediate Banking School gives a one-w eek concentrated overview of the banking industry.
Southwestern G ra d u ate School of Banking offers three intensive tw o-w eek sessions for a professional diplom a.
Assem blies for Bank Directors hosts seminars on all aspects of a bank director's responsibilities.
For more information on the Foundation and its three educational programs, please write or call:
The Foundation of SWGSB at Southern Methodist University
Federal Reserve Bank of St. Louis

SMU Box 214

Dallas, Texas 7 5275

2 1 4 /69 2 -2 99 1

Northwestern Banker, September, 1987


Corporate News
ROMOTIONS and other an­
nouncements have been made
by the following firms:
The Kirchman Corporation, Or­
lando, Fla.: Tim Clifford has been
named president of the Dimension
1000 and 2000 product divisions. He
will be responsible for the market­
ing, education and customer support
aspects of the company’s principal
integrated computer systems for
banks ranging in size from start-up
to $500 million in assets. More than
6,000 banks depend on Kirchman
software for their daily processing.
The Kirchman Corporation is the
world leader in integrated bank in­
formation management systems and
was recently selected by IBM to par­
ticipate in joint, complementary
marketing efforts directed toward
the banking industry.
The company formerly marketed
its software under the names of
Omni Resources, Kencom, and
Florida Software Systems. How­

ever, with the introduction of the
Dimension product line, all activi­
ties were consolidated under the
Kirchman name.
John Paoloni has been named
senior vice president of sales for The
Kirchman Corporation.
* * *
Marketing Network, Inc., North­
brook, 111.: Alan B. Eirinberg and
M ichael
Greenberg have
formed Market­
ing N etw ork,
Inc., a full ser­
vice marketing
agency offering
a full range of
services includ- éêêÊ
ing merchandis- fflii™
ing, promotional
planning, turnkey prom otions,
direct response advertising, and
public relations.
The agency’s client roster includes: Marine Midland Bank, Buf-

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falo, NY; Chemical Card Services
Corporation; National Sporting
Goods Association; Capital Hard­
ware Corporation; Rand McNally
Map Company; Network Services
Company; Jewish Community Cen­
ters of Chicago; Fisher Pen Com­
pany; and Ultimate Foods, Inc.
Mr. Eirinberg, who is chairman of
the new firm, is a former feature col­
umnist for Advertising Age, a
former director of the Bank Market­
ing Association and the Chicago As­
sociation of Direct Marketing, and
past president of Chicago Financial
Advertisers. He was senior vice
president and marketing director for
the Exchange National Bank of Chi­
cago and the Cole-Taylor Financial
Group. Mr. Eirinberg also headed
Flair Communications’ banking and
finance division. He was vice presi­
dent-marketing at PGM, Inc. from
1983 to 1987.
Mr. Greenberg, Marketing Net­
work president, has had extensive
experience in account management
work with Wells, Rich, Greene Ad­
vertising; Kobs and Brady Direct
Response, and Marvin H. Grank Ad­
vertising. He was account super­
visor and media director at PGM,
Inc, for the past four years.


The results of a customer study commissioned by the Federal
Reserve Board and Comptroller of the Currency* indicates

40 percent say they w ill change financial institutions in order to consolidate
their financial affairs.
60 percent w a n t to consolidate their financial affairs at their local bank.
Compared to regional banks or national brokerage firms - less than 20%.
The majority o f the consumers, w hen looking for financial advice, turn to a

Most customers say they w ant to remain loyal to their local
bank, but they also insist on having additional service and
investment choices.
Join the participating Investment Center bankers who are:
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1986 by Kenneth Kehrer.

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Federal Reserve Bank of St. Louis

Trans Union Credit Information
Co., Oak Brook, 111.: The company
last month announced awards for
three persons and new staff posi­
tions for two others.



Andrea O’Neill, account manager,
Philadelphia division, was recently
named the com­
pany’s 1986 Ac­
count Manager/
President’s Cup.
The award is
given annually
for outstanding
performance in
the areas of ter­
ritorial and ac­
count q u o tas,
sale s p ro fesS. DILLON
sionalism, and special marketing
challenges. She joined Trans Union

in 1983 as a customer service representative.
Lorie White, senior sales repre­
sentative, Kansas City division, was
recently awarded the company’s
1986 New Bureau Sales Person President’s Cup. This honor is earned an­
nually by the sales person from a
new Trans Union bureau who is
most instrumental in helping the
bureau develop its database and
market penetration within the first
three years of its new affiliation.
Sally Dillon, vice president and
head of human resources has re­
ceived the A ssociated C redit
Bureaus’ (ACB) Education Contri­
bution Award.
The award recognizes Ms. Dillon
for her leadership contributions to
ACB in the area of education. She
has conducted classes at ACB’s
Management Institutes, supported
state association educational ef­
forts, and been involved in the
development of specialized seminars, conferences, and training
materials. ACB also recognized the
instructional contributions she has
bestowed upon ACB members.








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Banker, September, 1987
Federal Reserve Bank of St. Louis


Robert L. Finney has been ap­
pointed vice president/general man­
ager of the Northwest division of
Trans Union Credit Information Co.
The announcement was made by Ed
Echt, western regional vice presi­
dent. Previously, Mr. Finney was
sales manager of the central region
and was responsible for its expan­
sion into the Texas, Louisiana and
Iowa markets. He will oversee the
operation of Trans Union’s Bellevue,
Wash., and Portland, Ore., divisions.
Chester Wiermanski has joined
the national services division of
Trans Union as product research
manager. He will be responsible for
researching and evaluating new pro­
duct opportunities for Trans Union
in their headquarters office, in Chi­
cago. He will also coordinate pro­
duct development and introduction,
and market planning.





Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

New T ools for Ag Banks:

• Loan loss amortization enacted
• Secondary ag market proposed
FTER 50 years, the effort continues unabated to
shore up the cyclical fluctuations of the critically
important natural resource called agriculture. As these











programs become effective through Congressional,
Presidential or USD A action, they have a distinct ef­
fect on rural banks. When the fortunes of the economy
regress, they generally have an adverse effect on banks
as we have learned from the bitter lessons in the midwest these past few years.
Two new efforts underway in this long chain of
events aimed at shoring up agriculture and those in­
volved in it are highly important to community bank­
ers directly involved in agricultural lending.
The first, listed as Title VIII in HR 27, which was
signed into law by President Ronald Reagan last
month, permits qualified ag banks to write down their
ag loan losses over seven years instead of having to
deduct the total amount of loss from capital at the
time the loss is recognized.
The second is an amendment to HR 3030, known as
the Farm Credit System rescue bill, and this amend­
ment would create a secondary market for long-term
farm real estate mortgages that could be accessed by
banks and life insurance companies, as well as FCS.
Of the two, the secondary market proposal probably
will affect and aid more banks than the loss amortiza­
tion section.
Loan Loss Amortization
HR 27 was a banking bill that originated in the Se­
nate as SB 790 with about a dozen subtitles. It pro­
vided a rescue plan (Title III) for the Federal Savings
and Loan Insurance Corporation, which was the sole
thrust of HR 27 when it came out of the House. How­
ever, in the conference committee, the contents of SB
790 were incorporated under the HR 27 label. Title
VIII of that measure, later signed by the President
August 10, was an amendment for loan loss amortization initially offered by Sens. Alan Dixon (D., 111.) and
Nancy Kassebaum (R., Kan.) as part of 790. It was re­
tained in the conference and is part of the new law.
To qualify for ag loan loss amortization over seven
years, a bank must be FDIC insured, have no more
than $100 million assets, maintain a percentage of ag
loans to the total portfolio at least equal to what it had
January 1 , 1986, and must have a plan approved by
FDIC or the OCC to restore its capital within the
seven-year amortization period. Losses to be amortized
cannot result from fraud or crime, must be for financ­
ing production of ag products or livestock in the
United States, or be secured by farmland or farm
machinery. Other qualifications, as deemed necessary,
may be added by federal regulators.
Losses that would have to be charged off for years
between December 31, 1983, and January 1 , 1992, may
Federal Reserve Bank of St. Louis

be amortized. Losses on property owned on January 1,
1983, or acquired before January 1, 1992, may be
The federal banking agencies were instructed by the
law to have written regulations 90 days after the Aug­
ust 10 signing by the President.
Secondary Market for Farm Real Estate Mortgages
HR 3030 was approved by the House Agriculture
Committee before August adjournment and is sche­
duled to be taken up promptly in mid-September after
the summer recess. The bill is basically the rescue bill
for the Farm Credit Administration. Title III of that
bill would authorize formation of a Federal Agricul­
tural Mortgage Corporation, thus providing a secon­
dary market for long-term farm real estate loans. It
would be available to commercial banks and life insur­
ance companies, as well as the FCS. The concept is the
result of extensive work done by an ABA Task Force
convened two years ago by then ABA President Don
Senterfitt and continued by current ABA President
Mark Olson. To make the Task Force truly representa­
tive of all commercial bankers, Mr. Senterfitt invited
the IBAA to have representation on the committee,
and IBAA graciously responded immediately with
then IBAA President B.F. “Chip" Backlund and cur­
rent IBAA President Tom Olson. Key roles were
played by a number of midwestern bankers, all of
whom supported the secondary market idea as a means
of permitting community banks to continue financing
their customers instead if seeing them forced to seek
long-term lending assistance from the quasi-federal
FCS agency.
As approved to date in HR 3030, the Federal Agri­
cultural Mortgage Corporation would have a 13-mem­
ber board. FCS tried from the beginning to place the
board under its control, a move obviously fought
tooth-and-nail by the ABA, IBAA and life insurance
companies (who had been invited to join in this endea­
vor and return them to viability in the farm real estate
market). At this time the bill would have seven
members of the board appointed by the President of
the United States, two of them would have to be
farmers. The FCS would have three members and the
private lenders—banks and life companies—would
have three members. Common stock to start up would
be $20 million.
Buying, pooling and securitization of mortgages
would be done by large banks or insurance companies
designated as poolers. The FAMC would certify these
poolers, set the underwriting rules and appraisal stanNEW TOOLS. . .
(Turn to page 94, please)
Northwestern Banker, September, 1987


Report on Russian trip sh ow s:


Gorbachev well
accepted; agriculture #
lags, but improvements
IOWA banker John Chrystal (second from right) poses with Rus­
sian hosts at site of egg pilot production plant in Byelorussia.

Editor's Note: John Chrystal’s uncle, the interna­
tionally known Roswell (Bob) Garst, had traveled sev­
eral times to Russia after World War II and observed
their farming methods. He met Nikita Khrushchev and
invited the latter for what became a historic visit of the
Russian leader to Coon Rapids, la., in 1959. The fol­
lowing year, when Mr. G arst’s poor health forced him
to decline the invitation to return to Russia, that gov­
ernment extended the invitation to his nephew, John
Chrystal, who had accompanied his uncle on an earlier
visit. Mr. Chrystal went there in 1960 and has returned
at the invitation of the Ministry of Agriculture about
every other year since then, now making 14 trips in all.
At the conclusion of each, he returns to Moscow where
he gives an in-depth honest critique to their ag leaders
of conditions as he saw them.
Mr. Chrystal does not speak or read the Russian lan­
guage but relates that “ I ’ve gone there enough now
that I can understand agricultural talk!’’
He still retains ownership in his family’s Iowa Sav­
ings Bank in Coon Rapids, where he retains his long­
time home, and has been CEO of the $500 million asset
Bankers Trust Company of Des Moines since 1984.

Chairman and CEO
Bankers Trust Company
Des Moines, la.
HIS WAS the most interesting and productive of
all my trips to Russia in my 27 years of traveling
there. I was taken initially on this visit to Byelorussia,
located in western Russia near Poland—a republic of
about 8.5 million people, with Minsk as its c ap italthen to Krasnodar near the Black Sea. After more than
two weeks in those areas I returned to Moscow for the
usual briefing and critique session with Soviet agricul­
tural leaders to discuss their agricultural situation as I
saw it, a procedure they have asked me to follow on
each of my visits.


Northwestern Banker, September, 1987
Federal Reserve Bank of St. Louis

Secretary Mikhail Gorbachev
I have known quite a few of the Soviet leaders from
Nikita Khrushchev to Mikhail Gorbachev. Mr. Gor­
bachev is well educated and has two college degrees. In
fact, he is the first college graduate to lead the nation
since Lenin. He was just 10 years old in World War II,
so he is also the first non-war leader. He’s perfectly
capable of criticizing his own country. He is able to
lead it because he hasn’t faced the same problems that
others have. His predecessors were all old, frequently
in poor health, who operated on cronyism, with accom­
plished corruption.
But General Secretary Gorbachev is an educated,
non-military man who is strong, intellectual and wellliked—even more so than when I was last there two
years ago. He sent me a letter while I was in Russia
and telephoned before I left to express his interest and
appreciation for my visit. We haven’t met personally
on the last two visits.

Historical Perspective
My first trip to Russia was in 1960. Their agricul­
ture was awful; it was basic. There was no chemical fer­
tilizer, no storage, none of the advances we had incor­
porated long ago into American agriculture. Their
country needed houses at that time. Since 65% of their
people were involved in agriculture, they needed to
feed only 35% of the others, so manufacturing got the
priority. Few of their people had education beyond
high school.
Now, they have great improvements. Their chickens
in 1960 laid 150 eggs, while most of ours laid 260. Now,
theirs lay 250 and ours 285. They have lots of all kinds
of products, but not enough. Their standard of living is
narrow and stable, but substantially less than ours.
But their economy has now lagged. Agricultural
production has dropped from a 4 or 5% gain to a 1%
In the past, the Russian state has always said it had
a contract to feed, house and employ all people in the
nation. Mr. Gorbachev has reversed the deal and is re­
structuring the way it will now be done. He is making
profound and meaningful change—not at all a drift
toward capitalism, but more a remodeling of Marxism.
He’s saying, “I ’ll get the government off your back
and out of your pocket.”











RUSSIAN hosts proudly display for John Chrystal (center) this tea plantation in the Caucasus.









Farm Visits
I went to a sturgeon farm where they hatched
sturgeons and then released them in the Caspian Sea
to keep up caviar production. I also saw a trout farm
where they were crossing trout with salmon, giving
them a coho type salmon.
One farm, in spite of bad soil, was quite productive.
The managers there had unbelievable authority to sign
contracts on their own initiative with foreign govern­
ments. They must give the Russian government 40%
of their production as return for inputs provided by the
government. Under this new arrangement, they must
pay for and account for tractors from the government—tractors they used to just requisition—so trac­
tor sales have plunged. Instead of buying new tractors,
they’re now repairing them!
My visit to Krasnodar this year was the first time
I ’ve been able to return to an area we visited on a previous trip. In my critique on that area I had suggested
a number of things, so it was interesting and hearten­
ing to find that many of those suggestions we dis­
cussed on that previous trip have now been implemented. I don’t want to infer they have all taken place
just because I was there, but at least our thinking was
in common on ways to improve their situation. In any
event, they have greatly improved grain storage; they
are now growing grain sorghum; fertilizers and irrigation are in much wider use, and they have reduced the
size of slaughter hogs from 260 pounds and more down
to about 200 to 210 pounds.
Krasnodar is one of 29 ag complexes in the nation, a
new idea. This one is made up of nine villages with
86,000 people, 36,000 of them employees, all getting
paychecks from the farm complex. Pay has gone up in
two years by 400 rubles, about a one-sixth increase.
In a factory—one where washing machines are
made, for example—they can put out 110 % of the
orders brought back. If they can’t make sales, the fac­
tory workers are let out.
Federal Reserve Bank of St. Louis

However, the state places a floor under all workers
wages and any worker laid off is paid by the govern­
Secretary Gorbachev has a vision that includes the
part played by workers in Russia and I think he’ll pro­
bably succeed. He has a substantial majority in the
Politburo and has control in the Central Committee,

1 inch = 1,420 miles
Area: 8,599,300 sq. miles (2.33 x Continental U.S.)
1,919,750 in Europe; 6,679,550 in Asia
Coastline: 27,600 miles
Pop.: 280,000,000 (est.)
191,000,000 in Europe; 89,000,000 in Asia
Distribution: Rural = 52%; urban = 48%
Pop. Density: 32.5 persons per sq. mile

= Republic of Byelorussia. Pop.: 8.5 m illion (1960)

• = City/area of Krasnodar. Pop.: 370,000 (1960)
Area: 3,675,633 sq. miles (Continental U.S. only)
Coastline: 4,993 miles (with Alaska & Hawaii: 12,383 mi.)
Pop.: 230,000,000 (est.)
Distribution: Rural = 30%; urban = 70%
Pop. Density: 62.5 persons per sq. mile

Northwestern Banker, September, 1987


John Chrystal finds Russian fishing can be as much fun as it is at

although he has not appointed them all, but I think
that will change this next spring.
Wrap-Up Critique Session
I suggested to my hosts during the critique session
in Moscow that they send people who have graduated
with a Botany degree to run the big farms of 86,000
people. I also suggested they use people with a busi­

ness degree to run those farms. They need a great increase in productivity, both in quantity and quality.
As another part of our discussion I suggested
further that they use irradiation of foods to increase
shelf life.
They keep referring to the war and what it did, but I
tell them to look at Germany and Japan and see how
those people have progressed. Secretary Gorbachev
agrees. They need refrigeration and many, many im­
provements. Their food quality and production is just
plain bad.
You cannot have scientific revolution without shar­
ing information. Mr. Khrushchev failed in part because
he didn’t have enough education to understand agricul­
ture. He planted corn from south to north when it
wasn’t geographically suitable. He was tough and
gross, and he lost his popularity.
This man (Mr. Gorbachev) is not like that. It will
take a long time. Their workers don’t work anywhere
near as well or as hard as ours do. They need trillions of
rubles to get up to speed. Two years ago the Russians
were consumed with an interest in the United States
and war, but that is different now.
On our part, we spend so much for defense we’re
hurting the economy we’re defending.
I think Secretary Gorbachev has a 70% to 80%
chance of success. He’s given the Soviets a chance for
hope and optimism. We spend 7% of our money on
defense; he spends 17% to 18%. He needs trillions for
infrastructure development. He now needs an arms
agreement with us and I think we’ll get it.
I have invited two people to travel here to Iowa from
Russia to take part in our Iowa Writers Workshop at
the University of Iowa. Also, I have invited Viktor
Nikonev, who is the ag czar of Russia, to visit us here
and he has accepted. We are planning joint ventures.
I met with Secretary of State George Schultz and
told him we should have several joint ventures to begin
with that will work. Because we are a leader in tech­
nology, we must maintain our world leadership posi­
tion. It will be a complicated affair, but the market is
so enormous that I don’t think we should avoid it.
I think the possibility of war with them is zip and if
we’re not going to war, then we should cooperate with
them on some projects. It will be an enormous gain for
our nation and for the world’s benefit.

p.m., with a reception that evening.
Business sessions run throughout
the day on Monday and conclude
The effect of Point-Of-Sale shop­ just prior to Tuesday noon.
ping on consumers, merchants and
bankers will be spelled out at the RMA to Meet in Honolulu
More than 1,600 members of Rob­
American Bankers Association’s
1987 Financial Network Workshop ert Morris Associates and their
on POS, October 4-6, at the Palmer spouses are expected to attend
House in Chicago. The focus of the RMA’s 73rd annual Fall Conference
workshop will be ABA’s final on-line convention at the Hilton Hawaiian
Point-Of-Sale Guidelines which were Village, Honolulu, November 1-4.
scheduled to be published in Aug­ The theme of this year’s business
ust. The guidelines are designed to program is “Charting Your Course
pave the way for POS systems for Survival and Growth in Commer­
which directly debit a customer’s cial Banking.” Over 20 different ses­
sions will show bankers how to allo­
bank account at the point of sale.
The workshop starts with regis­ cate the resources, design the sys­
tration Sunday, October 4 at 4:00 tems, and develop the products that

ABA Schedules Debit
Card Workshop in Chicago

Banker, September, 1987
Federal Reserve Bank of St. Louis

can lead to increased profitability
for their institutions, today and in
the future.
RMA is the national association
of bank loan and credit officers.
The keynote address for the Con­
ference will be delivered by Richard
J. Flamson, III, chairman, Security
Pacific National Bank, Los Angeles.
Also slated to give major addresses
are RMA’s President-Elect William
H. Sayre, executive vice president,
Fidelity Bank, Philadelphia; Lowell
L. Bryan, director, McKinsey &
Company, Inc., New York City;
George Weinwurm, partner, DurkeeSharlit Associates, Los Angeles;
and John Guaspari, author of I
Know I t When I See It.

















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Northwestern Banker, September, 1987


“Bankers must help
their ag customers
change with the times.’’*
“AT 1st National, we believe the way to solve
the problems of the banking community is to
help farmers solve their problems.”

An interview with
C.G. “ KELLY” HOLTHUS, President
First National Bank of York
York, Nebr.
William A. Hamilton, Lincoln, Nebr.

IS father started out as a tenant farmer, so C.G.
“Kelly” Holthus grew up farming someone else’s
land. Today, his father owns two farms and Kelly Hol­
thus is president and CEO of a $120 million bank. Last
May, Kelly completed a highly successful year as pres­
ident of the Nebraska Bankers Association.
Of late, farming and banking have not been growth
industries, but the 1st National Bank of York, over
which Kelly Holthus presides, has managed its way
through these difficult times to renewed profitability.
“For as long as anyone can remember, we have been
one of the top 100 banks in the nation in terms of agri­
cultural loans,” says Mr. Holthus. “Yet, in a way, our
survival during these hard times for agriculture is a tri­
bute to our borrowers and a tribute to our directors
and staff.
“At 1st National, we believe the way to solve the
problems of the banking community is to help farmers
solve their problems.
Cost Control Is a Key
“Because I grew up on a farm, and a tenant farm at
that, I know a little bit about what it takes to keep
overhead and production costs down and still have a
little money left over.
“Today, my Dad owns a couple of farms, but he
made the transition from tenant farmer to farm owner
by virtue of his willingness to work, to work with mini­
mum debt, and to work minus some equipment that
would have been awfully nice to have.
“A bank is simply a reflection of what’s happening
on the land around it. In 1986, our loans began to per­
form better, so our earnings are up slightly.
“Our farmers are adjusting to the realities of a new
Banker, September, 1987
Federal Reserve Bank of St. Louis

market place. They have learned to cut costs at almost
every opportunity. They are running with less debt.
Every farm does not need an $80,000 tractor and an
$80,000 combine. Some of our better operators hire cer­
tain jobs done or they can rent the equipment.
“Also, the farmers who will make it into the 21st
Century must be willing to break away from some of
the traditional ways of doing things and are willing to
try some alternative crops,” says Holthus.
Leader in Diversified Crops
Not one to say: do what I say and not what I do, Mr.
Holthus and eight of his loan officers have started
their own diversified crop operation.
The bank took 26 acres of land owned by 1st Trust
Company of York and, with the help of the loan offi­
cers, planted onions, cauliflower, broccoli, sweet corn,
lima beans and muskmelon.
“On evenings and weekends (and sometimes during
banking hours) our loan officers go out to move the irri­
gation pipes around and keep the weeds out,” states
Mr. Holthus.
“We planted a special kind of onion th a t’s ideal for
onion rings. We discovered an onion ring plant up the
road that imports its onions from Idaho. That’s ridicu­
lous! Nebraska farmers can grow the right kind of
onions better and cheaper. We don’t like to see the
onion ring plant exporting money to Idaho when that
money could be earned by Nebraska farmers and kept
here. ’’
“We’re not in the business of farming, so we’re just
(Turn to page 63, please)











No company, anywhere in the
United States, can do as much to
make your credit insurance
operations more profitable
and problem free
than North Central Life.
‘America’s Number One 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

Northwestern Banker, September, 1987


American Bankers Association
Annual Convention
Dallas Convention Center
October 17-21
HE AMERICAN Bankers Association will hold
its annual convention Oct. 17-21 at the Dallas Con­
vention Center. Presiding over the gathering will be
Mark W. Olson, president, Security State Bank, Fer­
gus Falls, Minn., who has served for the past year as
ABA president. Slated to succeed him is Charles
Pistor, chairman and chief executive officer, RepublicBank, Dallas. Thomas P. Rideout, senior vice presi­
dent, First Union Corporation, Charlotte, N.C., has
served as treasurer and will become the Association’s
new president-elect. Also serving on the Executive
Committee for the past year has been Donald G.
Ogilvie, ABA executive vice president.
Speaking at the meeting will be the new Federal
Reserve Board chairman, Alan Greenspan; U.S. Comp­
troller of the Currency Robert L. Clarke; FDIC Chair­
man L. William Seidman; ABC News anchorman Ted
Koppel; news commentator Paul Harvey; entrepreneur
H. Ross Perot; U.S. Sen. Phil Gramm, and a panel of
top-ranked correspondents from Time magazine.
Sunday’s fellowship gathering will feature Dr. Nor­
man Vincent Peale and the 100-member Texas Boys
Choir. Also that morning is the Government Relations
Forum featuring Federal Reserve Board member H.
Robert Heller.
New this year will be roundtable discussion sessions
on Saturday afternoon and a series of workshops for


Banker, September, 1987
Federal Reserve Bank of St. Louis


bank directors. More than 200 companies will have ex­
hibits in the. exposition center, which will also include
the ABA Technology Expo.
Sunday night’s reception at the Loews Anatole #
Hotel will star the Smothers Brothers, magician Harry
Blackstone, Jr. and comedian Freddie Roman. Tues­
day night’s reception at the Fairmont Hotel will
feature a salute to the 200th anniversary of the U.S.
A special treat during the spouses’ program will be
presentations by actresses Helen Hayes and Patricia
Neal. NBC “Today Show’’ news anchor John Palmer
will also appear.
The preliminary schedule is as follows:
Saturday, Sept. 17

Grand opening ceremony.
Exhibits open.
Banking industry sessions.
Banking industry sessions.
Peer group sessions.
Sunday, Sept. 18

8:00 Exhibits.
8:30 Fellowship gathering.


Exec. Vice Pres.





10:30 Government relations forum, banking industry
6:00 ABA reception, Loews’ Anatole Hotel.

8:00 Exhibits.

8:45 General session.
1:45 Banking industry sessions.
3:15 Banking industry sessions.

8:45 General session, Fairmont Hotel.
11:00 Convention adjournment.

Monday, Sept. 19

Tuesday, Sept. 20

General session.
Banking industry sessions.
Banking industry sessions.
ABA reception, Fairmont Hotel.
Wednesday, Sept. 21

FBS Capital Opens New Trading Room








HE NEWEST and largest trad­
ing room in the upper midwest
was recently put into operation by

Construction of the space re­
quired 474 miles of wiring, and air
conditioning capabilities triple the
typical office space to accommodate
the high concentration of screens
and keyboards and high activity
levels on the trading floor.
FBS Capital Markets handles origination/securitization, structuring
and distribution of a wide range of
tax-exempt and taxable fixed in­
come instruments in both the U.S.
and European markets. Invest­
ments available through the group’s
offices in Minneapolis, St. Paul and
London include government and
agency securities, money market in­
struments, municipal obligations,
interest rate products, certificates of
deposit, foreign exchange and re­
lated products and mortgage-backed

First Bank System’s computer net­
work; and a foreign exchange sys­
tem provides “real time’’ down­
FBS Capital Markets Group, the loading of data from satellite com­
capital markets arm of First Bank munication links into a microcom­
System, Minneapolis.
puter, which facilitates timely op­
Located at 100 South Fifth Street tions pricing.
in downtown Minneapolis, the
“Real time’’ market information
Group’s new headquarters occupies passes to the appropriate worksta­
square feet, employs 220 peo­
tion screens as soon as the source
ple and features the latest worksta- generates it, providing the most ac­
tion technology from Micrognosis, curate market and pricing data
Inc. Through a single keyboard, available. The trading force has ac­
traders and sales staff can access cess to Reuters News, Telerate, Dow
personal computers and online infor­ Jones and other market data sources
mation via as many as eight screens. to collect information needed for
“We are now using sophisticated trading decisions. Traders also use
technology th a t connects our the system to track house informa­
traders and sales staff with financial tion on securities and bonds avail­
markets worldwide,’’ said Gerald A. able in the group’s own inventory.
Kraut, executive vice president and
head of FBS Capital Markets. “This
technology improves our ability to
provide investment services to our
“Each trader can now manipulate
and display up-to-the-minute data
from broker services, news services,
quotation vendors, personal compu­
ters and inhouse databases, which
strengthens our investment capabilities. Geographic location is really
no longer a factor in accessing infor­
mation about global markets.’’
According to Mr. Kraut, the FBS
Capital Markets Group trading floor
has two unusual features: Every
workstation can be integrated into A work station in the FBS Capital Markets new
Federal Reserve Bank of St. Louis


trading room.
Northwestern Banker, September, 1987


THOSE attending the Central States Conference from state bankers associations within N orthwestern Banker readership area are shown
in the accompanying photos, reading from left to right in each row:
COLORADO—(Standing) Don Childears, CBA exec, v.p., Denver, and Tony Anderson, chmn. CBA and pres., Kiowa State. (Seated) Jean and
Dave Scruby, pres-elect CBA and chmn., Evergreen Natl.; Jon Coates, pres. CBA and chmn., Century Bank of Denver; Sheila Coates, and
Margaret Anderson. ILLINO IS— June and Bill Hocter (standing), IBA exec, v.p., Chicago, and Sandy and Jack Emmons, pres. IBA and pres.,
Security B&T, Mt. Carmel.

Stan M atzke P resid es at
Central S ta te s M eeting
HE Central States Conference, composed of 15
state bankers associations, met in late July at
Madden’s Resort on Gull Lake at Brainerd, Minn., for
the organization’s 76th annual meeting. Chairman of
the Conference this past year and presiding at the July
meeting was Stan Matzke, executive vice president of
the Nebraska Bankers Association.
He is succeeded as Conference chairman for the com­
ing year by Donald A. Booth, executive vice president
of the Michigan Bankers Association. Mr. Booth and

the MBA will host the Conference for the 1988 meeting
at the Grand Hotel on Mackinac Island next July.
During their two-day meeting, the managing execu­
tives of the associations and their elected state officers
exchanged ideas on projects, problems and opportuni­
ties experienced by each. Emerging as a definite trend
this year is the move away from reliance on dues to
fund all association activities to more fee-based income
from pay-as-you-go meetings for members, to subsidi­
ary activities developed by the associations. The most
widely developed subsidiary activity among the 15 as­
sociations is insurance.
All the associations are refining their activities to in­
clude those types of seminars and meetings that
banker members tell them are most needed, and with
registration fees charged for attendance at the meet­
ings, it is the users who pay for the service, rather than
being subsidized by the general membership fund. Leg­
islative activity continues to be the most important

IOWA— Lee and Russ Howard, pres. IBA and chmn., Mahaska Investment Co., Oskaloosa, and Mary and Clair Lensing, pres.-elect IBA and
pres., Farmers State, Marion. MINNESOTA— (Seated) Susan and Bill Sands, 1st v.p. MBA and chmn., Western Bank, St. Paul; Shirley and
Jim Jorstad, pres. MBA and pres., Citizens State, Hayfield. (Standing) Chris Sands; Leila and Truman Jeffers, MBA exec, v.p., and Mark
Olson, pres. ABA and pres., Security State, Fergus Falls, Minn.

Banker, September, 1987
Federal Reserve Bank of St. Louis


NEBRASKA— (Standing) Karen Miller, NBA dir. of educ.; Harley Bergmeyer, pres.elect NBA and pres., Saline State, Wilber; Ron Arrigo,
NBA conf. dir.; Don Blaha, pres. NBA and pres., 1st Natl., Ord; Mary White, NBA dir. of commun.; Stan Matzke, NBA exec, v.p., Lincoln, and
Bill Brandt, genl. counsel NBA. (Seated) Marcia Bergmeyer; Kolleen Hoover; Dorothy Matzke and Rose Marie Brandt. NORTH DAKOTA—
Roger Berglund, pres-elect NDBA and pres., Dakota Western, Bowman, with his wife Susan, and Don Childears, exec, v.p., Colorado BA.

work within each association.
Identifying the most needed types of programs has
been the job, in many associations, of special Task
Forces. The use of these Task Forces has been used ef­
fectively, the associations reported, for a variety of
undertakings. Chief among them have been Task
Forces devoted to studying statewide economic devel­
opment and long-range planning for the associations.
Economic development was a key topic at the 1987
Central States Conference meeting as association ex­
ecutives and elected officers alike said they perceive a
great opportunity for the banking industry to display
leadership in economic development at this time. This
assessment reflects banking’s desire, they said, to help
pull the economy of each state back from the low point
reached in the past four years due to drastic changes in
both the ag economy and energy industries that cut
across most of the 15 member states. Several of the
state associations gave interesting presentations on
how they are proceeding with this drive for economic
development, with Indiana, Kansas and Wisconsin of­
ficials relating their specific endeavors.

In addition to discussing a broad range of mutual as­
sociation functions, the Conference members heard an
address from Mark K. Olson, president of the ABA
and president of Security State Bank of Fergus Falls,
Minn. Mr. Olson reviewed federal legislation, especial­
ly H.R. 27, which was subsequently adopted with
modifications by the House and Senate and then
signed by President Reagan last month, and a pending
secondary market for ag real estate loans.
Other guest speakers included Justin Moran, who
heads his own research firm in Lansing, Mich., who
presented the “Credit Union Study” for the Michigan
Bankers Association.
In addition, leaders of The Graduate School of Bank­
ing at the University of Wisconsin, Madison, which
was founded and operated under auspices of the CSC,
gave reports on the school. These included William H.
Kennedy, Jr., president of the Graduate School, past
president of the ABA and chairman of National Bancshares, Corp., Pine Bluff, Ark.; Richard I. Doolittle, ex­
ecutive vice president of The Graduate School, and Dr.
Jim Pappas, academic dean of the school.

SOUTH DAKOTA— Diane and Larry Ness, pres. SDBA and pres., First Dakota Natl., Yankton. W ISCONSIN— Lana and Bryan Koontz, exec,
dir. WBA, Madison.
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1987


...h ow th ey happen and how
you can g et out from
underneath them

Special Reading for
Directors, Management

Written especially for
T h e N o r th w ester n B a n k er

President and CEO
Douglas Austin &
Associates, Inc.
Toledo, Ohio
Department of Finance
College of Business Administration
The University of Toledo
Toledo, Ohio

Part II
G. The Best Solution Don’t Get Under An Order in the First Place

OUR best defense, as a member of the Board of
Directors of your institution, is not to get under an
Administrative Order in the first place. As noted
earlier, these orders normally do not arise spontane­
ously, although they can, if the administrative agency
finds a significant embezzlement or misappropriation
of funds. However, assuming that your Administra­
tive Order arises out of a slow, but continuous degen­
eration of the quality of your performance and condi­
tion, your function as a member of the Board of Direc­
tors is to stop the slide prior to the administrative
agency’s order against your institution.
Preventive Steps to Take
How can this be done? First and foremost, you must
make sure your checks and balances are in line so that
the internal accounting procedures and controls, inter­
nal audit, external audit, and state and/or federal regu­
latory examination compliances are such that your
bank is not in a weakened financial condition. You can
save a lot of grief if you make sure that every time you
have a minor problem, you fix it before it becomes a
major hole in your financial condition. This is the first
line of defense, and the best.
How do you solve these problems early? The answer
Federal Reserve Bank of St. Louis

Editor's Note: This highly important article was pre­
pared by Dr. Austin as a chapter in a monograph on
“How to Be a Bank Director, " which has been funded
under the auspices of the Herbert E. Prochnow Foun­
dation, the Graduate School of Banking, The Universi­
ty of Wisconsin. Dr. Austin acknowledges gratefully
the financial auspices of the Foundation in the prepara­
tion of the monograph, which may subsequently be
published. Because of the critical importance of this
subject matter for bank directors at this time, Dr. A us­
tin has submitted this chapter on ‘Administrative
Orders" for his regular monthly pages in the N o r t h ­
w e s t e r n B a n k e r . S o that our thousands of bank direc­
tor and bank management readers may have the ad­
vantage of the full text of this important chapter, it
was decided to publish it in its entirety in three succes­
sive issues. Part I appeared in the August issue. The
concluding Part I I I will be published in our October
is simple: Whenever there is a question of inappropri­
ate accounting in terms of accounting principles and
procedures or internal/external audit questions, as to
the quality of your financial condition, you should im­
mediately remedy these situations. The audit commit­
tee of the Board, or the Board as a whole, should take
immediate action to remedy this situation. You, as a
member of the Board of Directors, are in charge of your
organization, and you should ask for compliance imme­
diately, if not sooner. You should not rely on manage­
ment to solve the problem.
Get Involved
Involve yourselves in the situation and make sure
that management reports to you on a regular basis and
is accountable for all of the conditions being complied
with immediately. Since it is obvious that most prob­
lems arise from the operations of the institution, which
is managed and administered by your management,
then there is a reluctance on behalf of the management
to realize that there is a problem and admit same.
Humans being humans, they will have a tendency to
“gloss-over” the problems. You, as members of the
Board of Directors and, thereby, representing the
shareholders, should ignore this type of pressure. You
should react adversely to the situation by forcing man­
agement to recognize weakened conditions and remedy
the situation in order to protect yourselves and the
shareholders against adverse financial conditions and
possible failure.
Northwestern Banker, September, 1987














Whenever there is an adverse written report con­
cerning the financial condition and performance of the
bank, regardless of what the cause is, the compliance
should be swift, and the compliance should be in writ­
ing. By forwarding the report to either the internal/
external auditor or the state/federal regulatory agency,
there will be a record of your compliance. The Board of
Directors should control this process, even if the man­
agement drafts the initial reply. It is the role of the
audit committee of the Board of Directors and the
Directors themselves, en masse, to make sure that the
compliance has been accomplished and that the techni­
cal and/or substantive violations have been cured.
How can the Board of Directors insure that such
compliance has taken place?
Know What the Problems Are
First, the Board of Directors must know exactly
what the problems are. They can only know that by
personally reading all of the internal/external audit
reports, and the examination reports submitted to the
Board by the state/federal regulatory agencies. It is
not enough to listen to a recitation or read a summary
of the violations. Each member of the Board of Direc­
tors should realize that he or she must know intimately
all of the details of the problems facing the banking in­
stitution, and should be extremely familiar with all
such problems, and know how to correct them.
This means that all such reports must be written
before the Directors sign off on same, and the Board of
Directors should establish a time table for correction
of all technical and substantive violations as quickly as
possible. The Board should also make sure that all
such conditions have been remedied, in writing, and
placed in the Board of Directors minutes. The Board of
Directors should never sign off on any examination or
audit reports without personally knowing what the
problems are, and all Directors should sign off on the
compliance reports so that he or she knows that such
compliance has taken place.
You Must Read Exam Reports
Examination reports are not to be disclosed to the
public, but should be intimately understood by the
Board of Directors. The authors have noted that in a
significant percentage of the cases, the Board of Direc­
tors did not even personally read the examination
reports. This can be a fatal flaw which may result in ac­
tual liability to the Directors in the long run. Further­
more, when the Board of Directors sign off on the examination report, and return such signatures to the
state/federal regulatory agencies, the Board of Direc­
tors are clearly indicating that they have actual notice
of the problems involved.
If you haven’t read the reports, then how can you know
how severe the problems are? You would be surprised
at the number of Directors who, in their depositions
after the failure of the bank, have indicated that they
did not have the slightest idea of how bad the bank’s
condition really was, and who, in all honesty, indicated
that they had not read the internal auditor’s reports,
the external auditor’s reports (if applicable), or the in­
creasingly severe examination reports by the regula­
tory agencies.
In most cases, the Board of Directors were culpable
in their failure to perform their duties of supervision
and direction. In many cases, the Board of Directors
Federal Reserve Bank of St. Louis

were responsible for the failure of the institution, or at
least its severely degenerated condition, due to their
failure to understand the true nature of the condition
and problems of the institution.
Believe me, if you read a severe state/federal exami­
nation report and you do not attempt to correct the
conditions immediately, you probably deserve all that
happens to you. On the other hand, if you react posi­
tively, quickly, and in good faith, you may not only
save the institution, but you may relieve yourself of
strong, personal liability and, at the same time, save
the shareholders’ investments. You have a choice - and
if you want to avoid the Administrative Orders, you
had better react positively and quickly to remedy the
situation promptly.

H. Panic!
F YOU receive any form of Administrative Order,
even the voluntary board resolution, then your best
is to panic. This doesn’t mean run around like
a chicken with your head cut off - it means react posi­
tively and quickly to solve the problem. Do not react
adversely by calling the administrative agency names,
assuming they are prejudiced against your Board of
Directors and management, and attempt to stonewall
the situation. As noted earlier, he who has the gold,
rules. Remember, you don’t have the gold — they do.
In the banking industry, working with the regulatory
agency and solving the problems is the only way to
save the ship. If you want to go down with the ship,
then fight the agencies the entire way.

“The regulatory agencies will look to
you, as Directors, to solve the
problems they have noted.”
One other thing is extremely important - don’t
believe your management. You, as Directors, are in
charge of the supervision and direction of the banking
institution, and the regulatory agencies are going to
look to you to solve the problems they have noted.
Your management is probably what has caused the
problems, regardless of what they say, and regardless
of what you feel about them. Your management is in
charge of the everyday operations of the institution, in­
cluding the managerial aspects of running the staff.
Also, they are responsible for the internal controls and
procedures within the bank.
Your management serves at your pleasure, and you
as Directors should quickly make sure that the man­
agement understands you want the problems reme­
died, and you really don’t care what their opinions are.
You desire to have the problem solved as quickly as
possible and as fully as possible. If that means four
management members have to go, staff has to be fired,
or whatever else is appropriate, you should do it imme­
A Serious Condition
What is meant by “panic” is for you to understand
that you are involved in a serious condition and not at­
tempt to “gloss over” the problem and assume that it
will go away. It will not go away - it gets worse. If you
really don’t believe that, talk to any banking examiner
who wanders through your institution over the next
several months and they will tell you how they conNorthwestern Banker, September, 1987

“There are very seldom surprise
Administrative Orders, because you
have ample warning they are going to
stantly go into banking institutions which are on a
downhill slide to failure. Those institutions which turn
around their significant problems through hard work,
capital infusion, managerial changes, or whatever else
is appropriate, are the ones that the examiners give a
great deal of credit too, and the ones they look to with
The bank examiners are there to assist in the public
safety of your institution and, believe me, there are no
examiners who delight in closing commercial banks. In
fact, the fewer number of problems they find in your in­
stitution, the better. When you turn a situation around
so that the problems disappear and you operate more
prudently and more profitability in the future, they
can look to your situation as an example of how the
bank examination function works within the banking
industry. It does not hurt to have friends in the state
and federal regulatory agencies, and by working with
them and quickly solving the problems, you can make
long-lasting friends.
If you stonewall the situation, react negatively to
the criticisms noted, and even contemplate or com­
mence legal action against the regulatory agencies,
then in the long run they’ll get you. They are there to
protect the depositors and creditors of your institu­
tion, not the shareholders. They will do everything
necessary to fulfill their obligations, even if they have
to steam-roll over you in the process.

I. Financial Conditions Beyond Your Control
N RECENT years, a new phenomenon in the com­
mercial banking industry has arisen. Where the
statistics from 1935 through 1975 indicated
clearly that 7 out of every 10 commercial bank failures
arose from embezzlement, fraud, self-dealing, and mis­
appropriation of funds, the preponderance of bank
failures today occur because of economic and financial
conditions beyond the control of the banking institu­
tion. This is reflected in the fact that L. William Seidman, chairman of the FDIC, has indicated that the
FDIC is currently only suing bank directors in 67% of
all bank failures, not 100% as was the original case.
Until recent years, the only three things in this world
that were absolutely certain were death, taxes, and
being sued by the FDIC in case the bank failed. Today,
you have at least a 33% chance of not being sued,
although you might not consider that much of a com­
What is happening is that because of economic and
financial conditions within the marketplace in which
your bank or bank holding company operates, there
may be economic and financial forces which affect the
safety and solvency of your bank. It is entirely pos­
sible that the condition occurred not from inappro­
priate lending but from the inability of your customers
to repay their loans. This could have occurred because
of significant agricultural price problems or energy
considerations. This is especially true for those two
fields (which are charitably called “oil patch” and “ag

Banker, September, 1987
Federal Reserve Bank of St. Louis

patch” problems). Many of the commercial banks have
failed, not because of illegal or inappropriate lending
accommodations, but simply because the borrowers
have been unable to repay on loans that were fore­
casted to be easily payable under previous economic
and financial conditions.
If this is your situation, you are really no different
than a bank or bank holding company that has gotten
into an Administrative Order condition on its own
without the declining economy around them. A capital
forbearance program may assist you, and you may be
able to raise debt capital because the basic condition of
the bank is better than others under Administrative
Orders. However, regardless of how the situation
arises, the Administrative Order that you face is an
Administrative Order and must be addressed as quick­
ly as possible.

J. What You Should Do When You Receive
an Administrative Order
DMINISTRATIVE Orders may arrive in the
mail, but they are very seldom going to arrive
without some warning. Almost all bank examinations
finish with an exit interview, and the senior examiner
in charge of the examination will most often give you a
clue that such an order will be coming. Furthermore,
you may be invited in to talk to the regulatory agency either at your state capitol or at some district office as a body, and you will then learn about the Adminis­
trative Order. There are very seldom surprise Adminis­
trative Orders, because you have ample warning that
they are going to arrive.
Assuming that you receive an Administrative
Order, what should you do?
React As a Team
First of all, you must react as a team, utilizing all
your resources, before you sign anything. It doesn’t
make any difference whether it is just a voluntary
board resolution, which is a unilateral agreement
signed by you, but does not have the signature of any
regulatory agency involved, or whether it is an MOU,
letter agreement, or a cease and desist order.
First of all, don’t sign anything until you have had
an opportunity to analyze the order carefully, negoti­
ate the terms, and make sure that all of your Directors
are in accordance with the terms of the order. There is
no reason to sign the agreement without a review. In
fact, the regulatory agencies have no legal right to
force you to sign [it] until you feel you have investi­
gated all legal remedies and conferred with counsel
prior to signing. You should listen carefully to what
the examiners and/or the regulatory supervisors tell
you concerning the Administrative Order, but you
should take the order back to your bank for a compre­
hensive review before negotiating to sign the agree­
Enlist a Professional Team
Second, you should have a team of professionals to
assist you in the evaluation of the Administrative
Order. The type of professionals that you will utilize
will depend upon the nature of the order. You should
utilize your local bank counsel or specialized legal
counsel to assist you in negotiating the terms of the
agreement. You should also utilize your professional
external auditors for any accounting related clauses,














and financial consultants if the Administrative Order
covers areas of expertise that your financial consul­
tants usually assist in.
You, as a Board of Directors, and senior manage­
ment, should never attempt to negotiate the agreement yourself. The more you utilize your professional
assistants to help you, the better will be the end result.
Always keep in mind that your professional counselors
have been involved in a large amount of Administra­
tive Orders and negotiations, while in most cases you
have expertise in only one case - your own. The bank­
ing supervisory agencies are placing scores of Admin­
istrative Orders and, in the case of federal supervisory
authorities, hundreds of Administrative Orders on
commercial banks and bank holding companies
throughout the United States. They know how to write
them, and they know how to negotiate them. If you
would attempt to negotiate on your own behalf, with­
out utilizing expert professional counselors, it would
be like the amateurs going into battle with a group of
professionals. If you use the analogy of having a high
school football team trying to play the Super Bowl
champions, you might have the type of analogy that
tells you what your chances are.
Utilize the Professionals
Third, utilize your professional team to analyze the
Administrative Order’s provisions and to determine
honestly which ones can be complied with and the tim­
ing for such compliance. If there are any provisions of
the Administrative Order which are not factually ac­
curate, they should be counteracted by factual infor­
mation and legal argument to indicate to the adminis­
trative agency that they are incorrect. However, the
Board of Directors and their counselors should be realistic as to the nature of the violations and/or conditions
which must be remedied.
If the Board of Directors and management agrees
that there is a problem, then it is up to the professional
counselors to assist the management and the Board of
Directors to determine what is necessary in order to
comply with the Administrative Order and how much
time is necessary to comply. In alternative language,
don’t fight the provision; work out a timing schedule
and an action plan to solve the problem and rewrite the
provision and negotiate same with the administrative
agency in order to comply as quickly as possible and as
fully as possible.
The purpose of utilizing your professional counse­
lors is not to fight the administrative agency. The pur­
pose is to utilize professional assistance who would be
familiar with all types of Administrative Orders and
know how they can be complied with and how much
time it takes. Furthermore, if there are provisions that
are not correct, they can be negotiated out of the agreement prior to signing. If the violations are substantive
and you agree that they are, then the professional as­
sistants can help you devise a plan for complying with
the remedy to the problem and also to determine the
timing necessary for such compliance.
You should always keep in mind that you have to
comply, and if you set a deadline for compliance, you
must meet that deadline. Therefore, if the administra­
tive agency requests a loan review to be submitted
within 30 days, and it is impossible to do so, you had
better negotiate that out of the agreement prior to the
signature, rather than later on. You cannot simply say
Federal Reserve Bank of St. Louis

“Your professional counselors should
assist you in negotiation with the
administrative agency.’’
to the administrative agency that you are not going to
comply because the loan review timing is too short;
you must comply and, therefore, you must counter
with a timing that you know you can meet. Once you
have agreed to meet that timing, you must comply on
Negotiate with the Agency
After you have thoroughly reviewed the Adminis­
trative Order, whether it’s a voluntary board resolu­
tion, MOU, or cease and desist order, your professional
counselors should assist you in negotiation with the
administrative agency. You should draw up clauses
that you can comply with, and then these should be
submitted to the administrative agency for their
review. You may wish to meet with the administrative
agency face to face to discuss any terminology and the
timing of such provisions. Your professional counse­
lors should accompany you in order to negotiate with
the lawyers for the state and/or federal regulatory
agency. After you have reached an agreement on the
provisions of the administrative order, then, and only
then, should you sign the order. If you do not agree as
to the terms, keep in mind that the state and/or federal
regulatory agency has the ability to change the Ad­
ministrative Order from a voluntary board resolution
or MOU into a cease and desist order in which your
bargaining power will diminish significantly. You
should bargain in good faith, but always keep in mind
that you are not the one that holds the gold.
The experience of this corporation in assisting our
clients over the past five years has indicated clearly to
us that when we negotiate Administrative Orders with
agencies, we seldom win on the types of terms and pro­
visions that are in the agreement, but simply win on
the timing necessary to comply with the various pro­
visions. First of all, we find out in most cases, our
clients agree that most of the provisions in the Admin­
istrative Order are factually correct and do not rep­
resent just technical violations, but significant viola­
tions of law and/or financial and managerial conditions
which must be remedied. Therefore, it is very unusual
for us to argue on behalf of our clients that the admin­
istrative agency is factually inaccurate and that their
provisions are inappropriate.
However, it is common for the timing of the compli­
ance to be far too short, according to the clients. Ad­
ministrative agencies do not know how long it takes to
accomplish a loan review within the commercial bank,
or how long it takes to comply to a lot of the opera­
tional provisions. It is up to you to determine exactly
how long it takes, and after such determination is
reached [agreed to], compliance of the Administrative
Order within that time is expected. The most latitude
in negotiating Administrative Orders is in this area,
and you must show good faith. Once the Administra­
tive Order has been signed, you must work diligently
in order to meet its timing.
Part I I I of Dr. Austin's article on Administrative
Orders will appear in the October issue.
Northwestern Banker, September, 1987


the interest
rate cycle

THE AUTHOR has 34 years of banking experience,
divided between a career with the Comptroller of the
Currency and the private sector. He was regional direc­
tor of special surveillance in the OCC Kansas City of­
fice. He has worked in bank consulting the past four
years. His firm of three professional specialists works
with banks in all areas of planning, loan administra­
tion, operations/performance review, software pro­
ducts, and regulatory compliance.
What is Rate Sensitivity?
The lack of consensus today on what is required in
prudent asset and liability management practices
leaves us all asking what is rate sensitivity? Is a
twenty-year term fixed rate loan at 15 percent really a
fixed rate when current rates are 10 percent? Is a threeyear certificate of deposit fixed at six percent if current
rates move to nine percent? How much of “Now” or
“Hi-Fi” or “Whatever the Name” accounts will roll
into instruments which move up with the market? In a
high rate cycle are they fixed or immediately rate sen­
sitive? What happens to CMO’s or other real estate
pools at the bottom of interest rate cycles and what is
their true maturity?
A Short History of ALM
A short history of the development of asset and lia­
bility management will help us understand what is
happening now. We started in the mid-to-late 1970s
with an attempt to analyze why interest margins
moved up or down. Interest Rate Margin Analysis was
a popular term and looked at volume, rate, and mix
changes to determine the primary reasons for changes.
Gap analysis was discovered by the industry and regu­
lators reacted to the S&L syndrome. So-called asset
and liability management experts more recently
started to talk about the absolute need to arbitrage
and guess on interest rate movements. Some have
tried to find good reasons to make fixed rate loans.
Others have even talked about using futures markets
to hedge, but have not come up with the exact vehicles
to accomplish a good hedge on gaps composed of dif­
ferent instruments. On the other side, variable rates
have been implemented by most financial institutions.
Duration factors have become more important to city
banks and more confusing to us all.
The Expert Opinion
Once again, the experts have done a one hundred
eighty degree turn and are saying that “Gap” is not
nearly as important a factor as originally thought. Yet,
Banker, September, 1987
Federal Reserve Bank of St. Louis

Written especially for
the N o r t h w e s t e r n B a n k e r
President, Midwest
Management Consultants
Omaha, Nebr.



their own programs start with rate sensitivity analysis
and the creation of Gap buckets.
It has become very obvious that no one has a magic
formula to completely guard against risks in rate O
movements or to take advantage of those same move­
ments. A banker recently related to me about a na­
tional asset and liability management seminar where
the instructor went through a lengthy discussion on
the importance of matching maturities. In the ensuing •
discussion of a case study the banker suggested selling
long term bonds to correct a liability sensitive problem
and was promptly told his suggestion was crazy. The
instructor gave no explanation but had a gut feeling
that was not a good strategy.
ALM Software
Because of all these factors, a number of very com­
plex and expensive computer programs have been writ­
ten. And, while some have several operating levels, ^
most are written for the large institutions which are
most affected by money market activity.
In order to reduce costs, time, and effort in ALM
software, our consulting firm offers easy-to-use PC
programs - The Gap Manager and Controller - to put ^
data in order and do “what-if” scenarios.
In order to perform adequate asset and liability
management we are called upon to accumulate all data
into a meaningful order and construct pro-forma finan- %
cial statements based on our best estimates of what
the markets will do. And, while it is true that we must
avoid high risks from serious mismatches involving
the investment of short term funds in long term assets
or vice versa, we must also resist the suggestion that #
our balance sheets be matched one-to-one based on
theories of rate sensitivity that were never actually
We now know that most balance sheet accounts
with an interest rate factor have some level of sensi- #
tivity. It is still basically true in community banks
that the market has more influence on liabilities than
on loans.
What seems to be required to accomplish mainte­
nance of, or improvement in, interest margins is to •
build knowledge of what happens at each point in the
interest cycle and to take advantage of movements
with an estimate, based on our best analysis of all fac­
tors. Hopefully, we will all get better at projection and
eventually want to build on our level of sophistication. •




Tlie Iowa Bankers
O nlO O iearsO f
Excellent Service

Student Loan Marketing Association
1050 Thomas Jefferson Street, N.W., Washington, D.C. 20007
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1987


James R. Jorstad, pres., Hayfield
T.L. Jeffers, exec, v.p., Minneapolis

Norwest Plans to Consolidate Its
Banks in Minnesota and North Dakota
retain existing offices. In other
parts of the state, the law increases
from two to five the number of de­
rency to consolidate 39 of its Minne­ tached facilities permitted per bank.
sota banks into nine new banks. The The law became effective August 1,
consolidations will include creation and the consolidations will be com­
of one Norwest bank for the seven- pleted as soon as possible after regu­
county Twin Cities metropolitan latory approval is obtained.
According to Mr. Kovacevich, the
area, combining 17 metro banks into
a single national bank to be called consolidations will allow customers
of Norwest banks to make deposits
Norwest Bank Minnesota, N.A.
Norwest also is applying to con­ and conduct other transactions at
solidate all nine Norwest banks in more locations. Norwest customers
North Dakota into one statewide in the seven-county metro area par­
bank called Norwest Bank North ticularly will benefit from this capa­
city, he said, because they will be
Dakota, N.A.
In Minnesota, outside the Twin able to conduct banking transac­
Cities, 22 Norwest banks will be con­ tions at all Norwest locations in the
solidated into eight new banks. Twin Cities.
Each of these banks will be named
In the Twin Cities, the consoli­
“Norwest Bank Minnesota,” fol­
lowed by a modifier indicating a geo­ dated bank will be Norwest Bank
Minnesota, N.A. Offices will be
graphical area.
There will be 42 offices of the con­ Arden Hills, Bloomington, Brooklyn
solidated metro area bank and 42 Park, Burnsville, Calhoun-Isles,
Norwest offices outside of the metro Camden, Central, Douglas Drive
area. Norwest Bank Northfield will (Golden Valley), Downtown Still­
not be part of the consolidations. It water, Eagan, East Bloomington,
will continue to be a Minnesota East St. Paul, Eden Prairie, 8th
Street & Portland Avenue, 48th
state-chartered bank.
Richard M. Kovacevich, Norwest Street & Chicago Avenue, Govern­
vice chairman and head of its Bank­ ment Center, Hastings, Jordan,
ing Group, said Northfield is not in­ Maple Grove, Maplewood, Metrocluded in the consolidations because South, MetroWest, Midland, Northholding a state charter could have town (Coon Rapids), Norwest Center
(downtown Minneapolis), Old St.
strategic advantages in the future.
Mr. Kovacevich said the consoli­ Anthony, Osseo, Plymouth, Ridgedations will bring greater conve­ dale, St. Louis Park, St. Paul, 7th. &
nience to customers. He emphasized Olson Highway, South St. Paul,
that the banks would “continue to Stillwater, Sycamore Lane (Maple
identify closely with their own com­ Grove), 3030 Nicollet Avenue South,
1221 Nicollet Avenue, Universitymunities and neighborhoods.”
Plans for the consolidations are Midway, Valley View, West H ast­
ings, West St. Paul, Woodbury.
the result of new state laws.
Outside the Twin Cities, the new
In Minnesota, a 1987 law permits
banks in the seven-county Twin banks and their offices will be (for
Cities metro area to consolidate and regulatory purposes, the charters
ORWEST Corporation filed ap­
plications last month with the
Office of the Comptroller of the Cur­

Banker, September, 1987
Federal Reserve Bank of St. Louis

will be located at the cities shown in 0
Norwest Bank Minnesota Mesabi,
N.A., Virginia, Ely, Eveleth, Hoyt
Norwest Bank Minnesota North, 0
N.A., Duluth, Denfeld (Duluth),
Miller Hill (Duluth) Grand Rapids,
Silver Bay, Two Harbors;
Norwest Bank Minnesota Central,
N.A., St. Cloud, Litchfield, Sartell, 0
Sauk Rapids, Westwood (St. Cloud);
Norwest Bank Minnesota West,
N.A., Moorhead, Fergus Falls,
South Moorhead, South Thief River
Falls, Thief River Falls, Westridge #
Mall (Fergus Falls);
Norwest Bank Minnesota South­
west, N.A., Marshall, Eastside (Mar­
shall), Northland Mall (Worthing­
ton), Worthington;
Norwest Bank Minnesota South
Central, N.A., Mankato, Albert Lea,
Austin, Mankato East;
Norwest Bank Minnesota South,
N.A., Faribault, Burnside (Red #
Wing), Medford (Owatonna), Owatonna, Red Wing, South Oak (Owa­
Norwest Bank Minnesota South­
east, N.A., Roches ter, Dodge Center, •
Goodview (Winona), Green Mead­
ows (Rochester), Northside (Roches­
ter), Winona;
Norwest Bank Northfield (exist­
ing state bank, not part of consolida- •

1988 MBA Officer
Nominees Named
The Minnesota Bankers Associa­
tion Nominating Committee met on
Aug. 6 to decide recommended offi­
cers for the Association for 1988-89.
The recommendations will be acted
upon at each of the nine MBA Dis­
trict Meetings in September.
Proposed candidates are:
President—A. William Sands,
chairman, Western Bank, St. Paul,
and current first vice president of
the Association.
First Vice President—James H.
Hearon, III, chairman, National
City Bank, Minneapolis, and current
second vice president for the MBA.
Second Vice President—Micheál
L. Lillehaugen, president, Communi­
ty State Bank, Alexandria.
Treasurer—Martin V. Chorzempa, president, Richfield Bank &
Trust Company.
Elections will take place at the
June 1988 MBA Annual Convention, t^> be held in Duluth.







the experience

* ' ; ■*
Experienced bankers and investment
specialists. That’s who will be working for you
at Marquette . . ./whether it’s a com plex bond
swap a needed correspondent service,
or just a routine transaction. Career bankers
working as a team to see that all your
correspondeni needs are m et
Chances are you’ve already seen these

folks in your bank. They have the mileage to
prove it. A nd they have the experience that
com es from over 200 com bined years in
the banking business. (That’s 73,109 days!)
You’ve made a career o f banking.
Doesn’t it make good sense to do your
correspondent banking and investment
activity with career specialists?

Correspondent Services Division/lnvestment Department

Correspondent Services 341-6561
MN Wats 800-862-1452
National Wats 800-328-8155
Federal Reserve Bank of St. Louis


Marquette Bank

Merrber -D iC

Investment Department 341-6558
MN Wats 800-642-7582
National Wats 800-328-8013


Norwest Corporation has an­
nounced that Leslie S. Biller, San
Francisco, executive vice president
and head of consumer markets at
Bank of America, has been named to
the new position of corporate execu­
tive vice president and head of stra­
tegic planning and acquisitions for
the Norwest Banking Group. Mr.
Biller will be primarily responsible
for coordinating interstate banking
Mr. Biller has been with Bank of
America since 1985. He previously
was senior vice president of interna­
tional consumer markets. Prior to
joining Bank of America, he was
with Citicorp for 12 years.
Norwest has named Daniel A.
Saklad, previously of Citicorp, as
Minnesota-W is­
consin regional
president for re­
tail and business
banking and ex­
e c u tiv e
president of Nor­
west Bank Min­
n e a p o lis. He
joined Citicorp,
in St. Louis, in
1974, and since
1985 was president of Citicorp Per­
son-to-Per son, Inc., a mortgage and
insurance subsidiary.
Gerald M. Kanne, current regional
president for retail and business
banking in the two states, has been
named to the new position of chief
administrative officer for the retail
and business banking group. He will
also continue to head Norwest’s
Minnesota merger task force. Mr.
Kanne joined Norwest in 1957 at
Norwest Bank Rochester. He served
also at Norwest Bank St. Paul and
Norwest Bank Minneapolis before
being named regional president in

Banker, September, 1987
Federal Reserve Bank of St. Louis

First Bank System, Inc., has an­
nounced the following promotions:
Anna Bagdasarian to vice presi­
dent, entertainment division, special
industries group. She joined the Los
Angeles loan production office of
First Bank Minneapolis in 1985, and
has most recently served as assis­
tant vice president, entertainment.
Susan Lackey Drake to vice presi­
dent, private capital. She has been
with FBS since 1981, when she
joined the executive banking divi­
sion at First Bank Minneapolis. She
has most recently served as assis­
tant vice president, private capital.
Bernard J. Weiss to vice presi­
dent, new ventures/products. He
most recently served as assistant
vice president of that department.
Dennis Dills has been hired as
head of FBS’s trust operations. He
has joined First Trust Company as
senior vice president and head of the
Trust Operations Group. He pre­
viously was employed by First
Wachovia, where he managed trust
operations since 1980.
* * *

Norwest Technical Services, Inc.,
a subsidiary of Norwest Corpora­
tion, has a n ­
nounced it has
c o n s o lid a te d
three of its tech­
nology units into
a new sales, mar­
keting and deli­
very organiza­
tion called Nor­
west Technical
Services Sales
Marketing. The
three business units transferred into
the new division are Norwest Elec­
tronic Delivery Services (NEDS),

Correspondent Data Processing and
Cash Letter Sales.
John A. Sikkink, senior vice president and a 25-year Norwest veteran,
has been named manager of the new
division. He has been head of NEDS
since 1984. Prior to that he served at
Norwest Bank Des Moines where he
eventually became executive vice
president of operations and adminis­
David Gibb, Dallas, will join Nor­
west as vice president and director
of technology sales for the new divi­
sion. He was director of a nation­
wide electronic business unit of
MoneyMaker EFT Services.
Other new vice presidents named
directors of the new company are
currently in the Norwest technology
group. They are Phillip J. Benson,
director of marketing; Albert Lewison, director of off-premise banking
products, and Susan Schoeneberger,
director of NEDS operations, custo­
mer service and systems staff.
Also joining Norwest is Kathryn
Reimann, marketing representative.
She was network marketing coordi­
nator for the Cash Station Network
of the First National Bank of Chicago.

Norwest Corporation announced
on July 29 that it will purchase from
time to time up to 900,000 shares of
its common stock. The acquired
shares will be used to meet periodic
stock insurance requirements under
the company’s employee savings
and investment plan, employee
stock options, shareholder dividend
reinvestment plan, conversions of
convertible debentures and for other
corporate purposes.







Marquette Bank Hosts Seminar

closed, and the agreement is pend­
ing regulatory approval. No staff
changes are anticipated.



At American National Bank,
John P. Seidel has been promoted to
assistant vice president—correspon­
dent banking. He joined the bank as
a credit analyst in 1983, and was
promoted to correspondent banking
officer in 1985. Prior to joining
American, Mr. Seidel was a branch
representative and loan officer at
Household Finance Company.
Dean A. Junkans has joined the
bank as a trust investment officer.
He was previously employed at
Farm Credit Services in a variety of
positions, most recently as a funds
management officer.
* * *

Marquette Bank Minneapolis held its Correspondent/lnvestment Conference this past
month at the Minneapolis Athletic Club. Taking part in the one day meeting were, from left:
Ralph Nelson, v.p., inv. serv.; Carl Pohlad, pres, and Mark Schabert, v.p. & div. head, corr.
bkg. The conference included presentations on tax reform, director liability, bank regula­
tions and a look at the securities industry.
Mr. Pohlad welcomed bankers from around the area. He told them, “Times have changed
in correspondent banking and the environment is very competitive, however, Marquette
Bank will continue to make an effort in correspondent banking.”
In addition to the morning sessions, breakout sessions were available later in the day
and included a look at mutual funds and the Marquette Fee Sharing Program, financial in­
surance and consulting services and the Master Retirement Program. An economic out­
look concluded the business portion of the conference.
Entertainment during the seminar included a luncheon talk by Harmon Killebrew, mem­
ber, Baseball Hall of Fame, a “pre-game” party featuring dixieland band music and an
evening at the Twins’ baseball game.

Norwest Corp. has announced it
has transferred its automobile
dealer financing operations into re­
tail and business banking, from cor­
porate banking, and named John G.
Stumpf senior vice president. Don­
ald L. Swanson, manager of dealer fi­
nancing at Norwest Bank Minnea­
polis, will continue to manage dealer
finance as part of the new retail and
business banking unit.
Mr. Stumpf currently is vice
president and manager of Norwest’s
capital lending group. He joined
Norwest in 1982 as chief credit offi­
cer at Norwest Bank East St. Paul.
* * *
First Bank System will offer a
new investment banking service
through its FBS Merchant Banking
Group that capitalizes on the com­
pany’s experience with the bank
divestiture program it began in
Federal Reserve Bank of St. Louis

1985. The new function is called
Banking Financial Services and will
offer expertise in the areas of capital
generation, debt and equity place­
ments, mergers and acquisitions,
consolidations, divestitures, and
structuring for financial institu­
Robert J. Anderson, FBS execu­
tive vice president who was head of
special bank projects and imple­
mented the divestiture program,
will serve as senior managing direc­
tor of Banking Financial Services.



First Bank System announced re­
cently that it has signed a purchase
agreement to sell First Trust Com­
pany of Florida, N.A., a First Bank
System subsidiary, to Bank of Bos­
ton-Florida, N.A. The subsidiary
maintains one office in Sarasota,
Fla. Terms of the sale were not dis-

At Norwest Business Credit, Inc.,
Edina, John L. Matyi has been ap­
pointed senior vice president of the
loan administration department. He
replaces Lee Mork who recently re­
tired after 13 years with the com­
Mr. Matyi has been employed by
Norwest Bank Minneapolis for eight
years, beginning in commercial lend­
ing and working in the capital lend­
ing group since 1984.



The Marquette-Holm Insurance
Agencies have developed a new pro­
gram called the “Financial Insur­
ance and Consulting Services”
(FICS) program. Through FICS,
Marquette-Holm provides financial
institutions with insurance and lia­
bility coverages for their customers
and insurance management for
themselves, as well as opportunities
for the institutions to generate sig­
nificant fee income by way of creditrelated and investment-oriented in­
surance services. According to
Wayne Boysen, chairman and CEO,
FICS is “the first of its kind.”
* * *

American National Bank of St.
Paul will host a two day seminar,
“Financing and Managing Indepen­
dent Business: Practical Tools for
Advisory Banking” in St. Paul on
Sept. 21 and 22. The seminar is de­
signed for commercial bank officers.
Northwestern Banker, September, 1987

Steven C. LeFever, president of
Business Resource Services of Seat­
tle, Wash., will be presenter. Regis­
tration cost is $295, which includes
text, materials and lunches. For
more information, contact Pat Jans­
sen at the bank at 5th and Minne­
sota Streets, St. Paul, MN 55101, or
call 612-298-6212.
* * *
First Bank System is offering a
lower rate installment loan for Minneapolis-St. Paul area residents who
suffered damage to their property
from the recent record-setting rain­
fall. Flood damage resulted from up
to ten inches of rain which fell in the
area on July 24. The new loan offers
an annual percentage rate one and a
half percentage points lower than
the normal First Bank rate.

Advanced in Winona
Three employees of Merchants
National Bank in Winona have been
promoted to assistant cashiers.
Michael Speltz joined the bank in
1980 as an auditing assistant, and in
1982 was advanced to operations of­
Suan Hovell was hired by Mer­
chants in 1984 as an installment
loan officer trainee. She was pro­
moted to administrative assistant of
the real estate loan department in
1985 and later that year advanced to
mortgage loan officer. She has been
the compliance officer for the bank
since 1985.
Scott Strebe joined the bank in
1986 as a commercial loan officer.
Before coming to Winona, he was
employed by Marine National Bank
of Neenah, Wis. as a commercial
banking officer.
Dennis Herricks and Thomas
Czaplewski have been promoted
from administrative assistants to in­
stallment loan officers at the bank.
Mr. Herricks joined Merchants in
1986 from ITT Financial Services,
LaCrosse, Wis. Mr. Czaplewski pre­
viously served at Heights Finance
Corp. in Burlington, la., and also
joined the bank last year.

MBA District Meetings Offered
sociation will hold its 1987 Se­
nior Officer Workshops and District
Meetings throughout September.
Districts 3, 4 and 5 will meet jointly
on Sept. 14 at the Sheraton Inn
Northwest in Brooklyn Park, and
their meeting will conclude with a re­
ception. All the other districts will
feature dinners with a special
speaker: at Districts 1, 2 and 7,
David Landswerk, Wayzata Super­
intendent of Schools, will present
“ I t’s Up to You,” and at District 8,
9 and 10, Joe Griffith of Dallas, Tex.
will address the topic “Success is
Attitude.” Dates and locations for
these meetings are: District 1—
Sept. 8, Kahler Hotel, Rochester;
District 2—Sept. 9, Orchid Inn,
Sleepy Eye; District 7—Sept. 10,
Kandi Entertainment Center, Willmar; District 8—Sept. 22, Regency
Inn and Conference Center, Hibbing; District 9—Sept. 23, Best
Western, Thief River Falls; District
6—Sept. 24, Holiday Inn, Brainerd.
Complete fee for the meeting is

$28. You may register through the
MBA office. The advance program
is as follows:
1:00 Registration.
2:00 Call to O rder—D istric t
State and Federal Legisla­
tion, John S. Jackson, MBA
gen. counsel.
Strategic Planning—Peter
Brown, Peter Brown Associates, St. Paul.
District business meeting
and election of officers.
MBA Services Update—
Truman Jeffers, MBA exec.
Economic Development and
the M B A ’s M in n eso ta
Bankers Enterprise Net­
work-W illiam Sands, MBA
1 st v.p.
5:30 Reception.
6:30 Dinner and speaker, James
R. Jorstad, MBA pres., pre­
8:30 Adjourn.

Mr. Hanson was graduated from
Before joining MetroBank, Mr.
Welle held several positions with the Luther College in Decorah, la., in
First Banks, most recently as a com­ 1971.
mercial loan officer at First Bank
Security. He also served in that
capacity with First Bank Edina. Mr. Hoover Joins MBA Staff
Welle began his career with the First
Philip A. Hoover has joined the
Banks in 1977 as a bank examiner. Minnesota Bankers Association. He
serv es as an
agent for the
MBA Insurance
Agency, Inc., a
Pres. Named in Prior Lake
w h o lly -o w n ed
Directors of First National Bank subsidiary of the
of Prior Lake recently named Dennis MBA.
H. Hanson as
Prior to join­
ing the Associa­
Before joining
tion, Mr. Hoover
F irst National
spent ten years
Bank, Mr. Han­
with St. Paul
son was execu­
Fire and Marine Insurance Com­
tive vice presi­
pany as an underwriter and field
dent of First Na­
supervisor specializing in the blanket
tional Bank and
bond and directors’ and officers lia­
Trust Company
bility areas. He was a former branch
B arab o o ,
VP Named in Bloomington
Wis., and prior
Joseph M. Welle has been named to that he was vice president of
vice president of MetroBank Bloom­ Brenton National Bank in Grinnell, MINNESOTA NEWS. . .
(Turn to page 53, please)

Banker, September, 1987
Federal Reserve Bank of St. Louis









Illinois Independent Bankers to Meet
nity Banks in Illinois 13th An­
nual Convention and Exposition will
be held Sept. 25-28 at the Hamilton
Hotel in Itasca. “Projections and
Reflections” is the convention
Keynote speaker is Senator Alan
J. Dixon, and James Hagerbaumer,
president of Hagerbaumer Econom­
ics, Waukegan, will be featured as
well. A broad variety of topics will
be addressed during concurrent edu­
cational sessions, from responsibi­
ties of bank directors to legislative
Among other activities at the con­
vention will be dinner and theater in
Chicago, a “Speakeasy Party,” exhi­
bits and spouse tours.
For more information on the con-






vention, contact Barbara Blough at
the ICBI office, 300 West Edwards
Street, Springfield, IL 62704, (217)
The preliminary schedule is as fol­
Friday, Sept. 25
9:00 Golf Tournament
12:00 Tour of Long Grove Village
7:00 Evening Social Function
Saturday, Sept. 26
9:00 Opening Breakfast, Sen.
Alan Dixon
10:30 Shopping at Woodfield Mall
and Waccamaw Pottery
10:30 Education Sessions
11:45 Annual Business Meeting
and Luncheon


Education Sessions
Optional bus trip to Chicago
for dinner and theater
Sunday, Sept. 27
Educational Sessions
Chicago Speakeasy Party
Monday, Sept. 28

9:00 Drovers Breakfast and Rec­
ognition Program
11:00 Adjourn


Northwest Natl, to Open Elk Grove Office

READY to break ground for the new Elk Grove unit of Nothwest National Bank of Chicago,
a member of the Lane Bank Group, are these officers: Elk Grove Village President Charles
J. Zettek, Village Manager Charles A. Willis, Lane Bank President Scott K. Heitmann and
Chairman William N. Lane III, Northwest National Bank of Chicago President James W.
Aldrich, and new suburban facility Manager Allison Stevens. The ceremony was held July
29. The new facility is located at 70 Biesterfield Road, and will include four drive-through
lanes, an ATM and six lobby teller windows. Retail, commercial and trust departments will
also be located at the facility, which is scheduled for completion in November, 1987.
Federal Reserve Bank of St. Louis

Kevin W. Davis has joined Finan­
cial Shares Corporation as executive
vice president
and manager of
the training and
d e v e lo p m e n t
services d iv i­
sion. His pre­
vious position
was as vice pres­
ident and direc­
tor of market­
ing, training and
sales at the MidKW- DAVIS
State Bank, Altoona, Pa. He also
served as a coordinator of sales, ser­
vice and interbank advertising for
Keystone Financial, Inc., Harris­
burg, Pa.
* * *
Cole Taylor Financial Group, Inc.
has formally announced a new
(Turn to page 62, please)
Northwestern Banker, September, 1987

Hales Corners and for State Finan­
cial Services Corporation, a bank
holding company.

Promoted in Ellsworth

M&l Reaffirms
Offer to Marine
On July 30, Marshall & Ilsley Cor­
poration announced it has reaf­
firmed its offer to The Marine Cor­
poration to merge with the Marine
and will file an application with the
Federal Reserve Board.
Marine recently rejected the offer
in favor of a lower one from Banc
One of Ohio.
J.A. Puelicher, chairman and
chief executive officer of M&I,
stated, “We believe our offer to ex­
change 2.235 shares of Marshall &
Ilsley stock for each share of
Marine’s, together with a form of
price protection at $66.50, repre­
sents the most attractive proposal
for our respective shareholders, and
the State of Wisconsin.
“Our financial advisor, Saloman
Bros., agrees that M&I’s offer af­
fords Marine shareholders a poten­
tial difference in value from the
Banc One offer. We believe the
Marine shareholders should have
the right to choose between our offer
and Banc One’s. The filing of an ap­
plication with the Federal Reserve
Board will preserve Marine share­
holder’s option to consider our offer
on an equal basis with that proposed
by Banc One. Nevertheless, we do
not intend to increase our offer or
engage in a bidding contest that
would harm the interests of our
Meanwhile, M&I announced that
an agreement has been executed to
purchase Software Development
Corporation of Fort Lauderdale, a
privately-held software company,
subject to regulatory approvals.

Community, Valley Banks
to Merge
It was announced on July 20 that
approval has been received from the
Federal Reserve Board for the affili­
ation of Community Banks, Inc.
(Middleton) with Valley BancorporaNorthwestern
Banker, September, 1987
Federal Reserve Bank of St. Louis

tion, Appleton. The merger was ex­
pected to close on Aug. 28. Commu­
nity Banks owns six banks and has
85% of its assets in banks in the
greater Madison area.
Valley would issue about two
million shares of its common stock
and pay about $600,000 in cash in
the transaction. Valley currently
has about 7,900,000 common shares
The corporation has also pro­
moted Laurel A. Marquardt to audit
supervisor. She has been with the
organization for three years, most
recently as a senior auditor.
At Valley Trust Company, Appleton, Sue Bernarde, Michael A.
McMillan and Carol Irving have
joined the staff.
Ms. Bernarde has been named
operations officer/security process­
ing manager. Prior to joining Valley,
she was affiliated with Associated
Kellogg Bank, Green Bay for 11
years, most recently as accounting
section manager.
Mr. McMillan will serve as data
processing manager. Prior to joining
Valley, he was a computer opera­
tions manager at Speed Queen.
Ms. Irving has been named train­
ing coordinator. She previously
served as trust officer at Brenton
National Bank in Des Moines, la.

Four individuals were promoted
to officer status recently at Pierce
County Bank & Trust Company,
Evelyn A. Cannon is assistant
cashier and manager of the East
Ellsworth Branch. She joined the
bank in 1967.





Elfrieda L. Jennings was pro­
moted from assistant auditor to
auditor. She joined the bank in 1966.
Lori K. Donnelly was promoted to
installment loan officer. She has
been with the bank since 1977, most
recently as a personal banker.
Corinne M. Cardell, a member of
the bank staff since 1980, was pro­
moted to customer service officer.

University National Elects
President, Director

WBA Supports
Northwestern Wis.

Two months after beginning work
as executive vice president at Uni­
versity National Bank, Milwaukee,
Mark Zalewski has been promoted
to president. He succeeds Phillip
Hudson, who has retired. Mr. Zalew­
ski has been active in banking ad­
ministration for nearly 15 years and
has served as president of two banks
in Madison.
Meanwhile, J.J. Holz has been
elected to the bank’s board of direc­
tors. He is owner and CEO of Holz
Chevrolet in Hales Corners, and also
serves as chairman for State Bank

As part of Gov. Tommy Thomp­
son’s N orthw estern W isconsin
Week, the Wisconsin Bankers Asso­
ciation Executive Council held its
Aug. 14 meeting in Superior.
The 13 member council normally
meets in Madison but wanted to
support the state’s effort to recog­
nize the Superior area. Among other
activities, bankers have testified at
hearings of the Senate Committee
(Turn to page 62, please)


Norwest Announces
Norwest Corporation has an­
nounced that Truman D. Phelan, se­
nior vice presi­
dent for busi­
ness banking at
1Norwest Bank
South Dakota—
Sioux Falls, has
been promoted
to senior credit
a d m in is tr a to r
for N o rw e st’s
South D akota
region, effective
Sept. 1 . He succeeds Vance O. Wil­
liams, who recently was named
president of Norwest’s Montana
Mr. Phelan has been with the
Sioux Falls bank since joining Nor­
west in 1966. He was appointed
commercial loan officer in 1970,
named vice president and head of

business banking and commercial
lending in 1984 and promoted to se­
nior vice president last year. He
worked with Dun & Bradstreet in
Nebraska and South Dakota from
1952 until 1966, and was manager of
its South Dakota operations when
he joined Norwest.
Meanwhile, Norwest Bank South
Dakota has promoted Dale Hellevang, Jim M attern and Gary
Schw eitzer to a s s is ta n t vice
presidents in human resources and
Charlotte Bartels to regional human
resources officer.
Mr. Hellevang joined Norwest in
1980 in Madison. In 1981 he was
named a human resources represen­
tative in Sioux Falls and in 1983 was
promoted to district human re­
sources officer.
Mr. Mattern joined Norwest in
Owatonna in 1981. In 1984 he trans­
ferred to Duluth, and in 1985 was
named district human resources offi­
cer for the Black Hills and North

Central Districts of Norwest Bank
South Dakota, Rapid City.
Mr. Schweitzer joined Norwest
Audit Services in 1977 and in 1981
transferred to Norwest in Rapid
City. In 1984 he was named assis­
tant vice president, district opera­
tions. He succeeds Mr. Mattern.
Ms. Bartels joined Norwest Audit
in 1974 as secretary and administra­
tive assistant. In 1984 she trans­
ferred to Norwest Bank South Da­
kota as a regional human resources

Dacotah Declares
Stock Dividend
Rodney Fouberg, chairman, an­
nounced recently that the board of
directors of Dacotah Bank Holding
Co., Aberdeen, has declared a 3 %
stock dividend in lieu of its semi- an­
nual cash dividend. It will be paid on
Sept. 15 to shareholders of record on
Sept. 1 .

Bank Chartered in Viborg
The South Dakota Division of
Banking and Finance has issued a
certificate of authority to operate a
state chartered bank to Farmers
State Bank of Viborg, as well as a
certificate of authority for the bank
to operate a branch in Irene.

Woods to fill an unexpired term rep­
resenting the Southeast Group until
June, 1989. Mr. Woods is regional
president, F irst Bank System,

Promoted in Minot

Advanced in Fargo

At Norwest Bank Fargo, Harlee
Olafson has been promoted to vice
president/business banking at its
main office in Fargo. He previously
served as assistant vice president.
® Mr. Olafson joined Norwest in 1979
at Valley City, and transferred to
the Fargo bank in 1984.

Named in Valley City
Cheryl Klinger has been named
Federal Reserve Bank of St. Louis

assistant cashier and auditor at
First National Bank of Valley City.
She joined the bank in 1981 as in­
stallment loan secretary. In 1985,
she was named operations assistant.

NDBA Appoints Woods
Southeast Group Rep
At its meeting last month, the
North Dakota Bankers Association
Executive Council appointed Jerry

Gloria Hultberg has been pro­
moted to vice president/financial
services group
manager at First
Bank Minot. She
joined the bank
in 1966. Mrs.
H u ltb e rg had
held many posi­
tions, including
personal banker,
branch manager
and a s s is ta n t
head of retail
banking. Her most recent position
was as assistant vice president and
manager of retail banking.
Northwestern Banker, September, 1987

“Solutions For Profit and G ro w th ”
through “S oftw are E xcellen ce”
Financial C
Complete general ledger accounting
Provides budget comparisons for reporting
Allows for asset/liability management

Teller Management System
Provides customer information a cce ss to tellers
without expensive "on-line” teller equipment
Allows stops and holds
Improves customer service
Increases productivity

Proof of Deposit System
Attaches to variety of high speed reader/sorters
Includes statistical and management reporting
Supports float assessm ent by end-point
Full cash letter reporting capabilities
Offers high-speed manual entry

Loan Accounting System
Supports commercial, mortgage and installment lending
Allows for variable rate based on prime or index rates
Loan modeling capabilities allow platform selling
Ability to process participation loans
Provides for insurance cross selling
Provides full reporting capabilities
Provides Portfolio G ap Analysis

Safe Deposit Management System
Complete billing, reporting and inventory control
Query interface allows unlimited reporting capabilities
Supports up to ten container sizes

Customer Informa
Provides EFT Interfac
Contains all customer i
All ESI products inter®
Provides snapshot su
Includes consumer an
Easy to use with com
Federal Reserve Bank of St. Louis

A M essage From E SI’s President
Federal Reserve Bank of St. Louis

“ S o l u t io n s F o r
A Comprehensive Information Manag
Federal Reserve Bank of St. Louis


OFiT a n d G r o w t h ”
ent System For Financial Institutions
Federal Reserve Bank of St. Louis

S ystem /36
The IBM System/36 is an office system designed specifically for the special demands of
b u siness. It is a system that can help people work more productively; a system that can
help you a c c e ss , store and revise information rapidly and effectively. In short, it is a system
that can help increase productivity at every level of your financial institution.
The System /36 offers you:



of three









sm allest to the largest of institutions, IBM offers hardware designed to grow with you.
A professional range of business functions, including both word and data
processing, document distribution, m essage handling, business graphics, efficient
storage, retrieval of information and allows several programs or users to a cc e ss the system
simultaneously. This helps speed workflow through your institution.
Ease of use, with all system documentation on-line, easy-to-understand menus,
"H E L P ” keys and Computer-Assisted Training time will be kept to a minimum. The ability
to use IBM Personal Computers as workstations and as "smart terminals” sharing files
with the System/36.

Q uery/36
T h is System /36 office application is a true on-line reports generator, giving you the ability
to retrieve information easily from files built on the System /36. The package can be used
alone to retrieve information efficiently from up to five data files at once in your System /36.
It can also be used in conjunction with DisplayWrite/36 to help m anage, revise and then
distribute detailed or summary information where it’s needed.
Query/36 gives you flexibility in the way you retrieve either custom er or institution
information. You can "print” the data on display stations or printers or sa ve the information
in a disk file. You can also selectively retrieve information according to a wide variety of test
conditions such as equal, not equal, list range, etc. In addition, once a query has been
defined, it can be saved, allowing the query to be run many tim es. A new query can be
easily patterned after an existing one.

O ther Productivity Tools
DisplayWrite/36, a high-function word processing program that allows you to create and
revise documents and interchange documents with DisplayWrite 4.
PC Support/36, allowing the versatile IBM Personal computer to become an interactive
System /36 workstation for accessing and managing information.
Business Graphics Utilities/36, for the rapid and efficient creation of color and
monochrome charts and graphs. Working with DisplayWrite/36 you can include graphs
within text documents.
IBM is a registered trademark of the International Business Machines Corporation.
ESI is a participant in the IBM Marketing Assistance Program.

For More Information Call Or Write To:


1065 N. 115TH ST. • SUITE 210 • OMAHA, NE 68154 • (402) 493-7773
Federal Reserve Bank of St. Louis

Turn Key” Systems With
Complete On-Line Documentation
For Your Information Processing

trol System
Three months history on-line
Calculates key management ratios
• Information can be “rolled” to 5 levels


Deposit Accounting System
• Five-tier interest accrual capabilities
• Allows use of variable transaction codes
• Three methods of overdraft protection
• Tailored to in-house policies to generate fee income
• Account analysis and service charging

Savings Management System
• Handles complete passbook processing
■ • Allows setting of maximum withdrawals
• Provides automatic Christm as Club capabilities

Retirement Management System


• Includes self-directed plans, 401 (K )s, Keoghs and IRA s
• Available separately for the IBM Personal Computer
• Instantly answers variety of "what if” questions
• Provides full user and government reporting
• • Provides for automatic payment distribution
• Complete IRA accounting system

Time Certificate of Deposit Accounting

Management System
fjcation data
of customer balances
imercial credit applications on-line
help keys, on-line documentation
Federal Reserve Bank of St. Louis

• True book entry system
• Fixed and variable rate capabilities
• Ability to define your own product line
• Full maturity prediction reporting capabilities
• Add on deposit features


Lynn Duncan Promoted at
First Interstate Casper
Lynn B. Duncan has been elected
to the position of senior vice presi­
dent, in charge of business and eco­
nomic development at First Inter­
state Bank of Casper.
This appointment creates a new
position for the bank, according to
Charles E. “Chuck” Pedersen, presi­
dent and chief executive officer.



Duncan will coordinate the eco­
nomic development efforts of the
bank by helping to put bank custo­
mers in touch with various economic
development agencies throughout
the state. He will also act as the liai­
son between the bank and private
and public economic development
Duncan will also be in charge of
First Interstate’s business develop­
ment, coordinating various sales
programs and correspondent bank
Most recently Mr. Duncan has
served First Interstate of Casper as
vice president and marketing man­
ager. He brings more than 30 years
of business development and mar­
keting experience to his new posi­
tion. After attending the University
of Minnesota at Duluth, he served
from 1952-55 in military service
then returned to his native Duluth
to join Northern City National
Bank. In 1970 he moved to Des
Moines, la., where he joined Bank­

Banker, September, 1987
Federal Reserve Bank of St. Louis

ers Trust Company as vice president
for marketing. He returned to Min­
nesota in 1973 to join the Dick Stebbins Agency in Minneapolis, work­
ing there four years.
Mr. Duncan moved to Casper in
1977 to join Wyoming National
Bank (now a Norwest franchise),
then joined First Interstate of Cas­
per in July, 1984, as vice president
and marketing manager.
M. Michelle Wilkie will replace
Mr. Duncan as vice president and
marketing manager. Most recently
she has served as assistant vice
president in the commercial loan de­
partment. Previous to that, she was
assistant vice president and market­
ing officer for First Interstate Bank
of Great Falls, Mont.

$8.4 million. At June 30, 1987, equi-0
ty capital was $19.7 million and
primary capital was $28.5 million or
6.4% of total assets.
“While the losses incurred in re­
structuring our investment portfolio#
were higher than expected and loan
loss provisions have put us behind
our profit plan in the second quarter,
we are encouraged that non-interest
expenses are down almost 16% fo r #
the first six months. These improve­
ments combined with an anticipated
reduced level of loan loss provisions
in the second half should result in
profitable operations in the th ird #
and fourth quarters of 1987.”

Promoted in Laramie
First Interstate Bank of Laramie
has named E.J. (Woody) Haines^
chairman. He will remain CEO, and
his former position as president will
be filled by David L. Keithley, who
will also serve as chief operating of­
ficer. Mr. Keithley previously served
as senior vice president and credit
administrator at First Interstate
Bank of Idaho, Boise.
Also at the bank, Gordon W. Jen­
kins has been promoted from senior
vice president to executive vice
president and chief financial officer.

Affiliated Reports
Second Quarter Loss
Affiliated Bank Corporation of
Wyoming has reported its financial
results through June 30, 1987. R.W.
Miracle, president and chief execu­
tive officer of Affiliated, stated “for
the second quarter, 1987, Affiliated
is reporting a loss of $1,808,000
($1.52 per share). When combined
with earnings of $534,000 for the
first quarter, the year-to-date loss
through June 30 was $1,274,000
($1.07 per share) compared to a loss
of $8,930,000 ($7.53 per share) for
the first half of 1986.
“The loss in the current quarter is
attributable primarily to a restruc­
turing of the bank’s investment
portfolio, as a result of increases in
the level and volatility of interest
rates earlier in the quarter. New se­
curities losses in the quarter related
to this restructuring were $1,635,
“The provision for loan losses in
the second quarter was $1.3 million
while net charge-offs in the same
period were $2.9 million and the end­
ing allowance for loan losses was

WBA Announces
Committee Members


The Wyoming Bankers Associa­
tion has announced its 1987-88 com­
mittee members. Chairmen of the
committees are as follows:
Agriculture—Ed Garding, First
Interstate Bank, Sheridan. A u d itDon Doyle, Norwest Bank Casper.
Consumer Credit—Janet Julian,
Hilltop National Bank, C asper.#
Coordinating with the State Trea­
surer—Donald Swanton, First Inter­
state Bank, Casper. Credit Confer­
ence—Richard Niedling, First Inter­
state Bank, Casper. Insurance—#
Ralph Owen, First Wyoming BankEast Cheyenne, Cheyenne. Legisla­
tive-Charles E. Pedersen, First In­
terstate Bank, Casper. T rust—
Thomas A. “Rusty” Ward, Jr., N or-#
west Bank Casper.


MBI Session Completed
The Midwest Banking Institute
(MBI) concluded its 21st annual ses­
sion on July 24. About 66 students
completed the two one-week ses­
sions in two consecutive years. The
Institute is sponsored by the state
bankers associations of Minnesota,
Montana, North and South Dakota,
and Wisconsin.

James Bennett, pres., Billings
John T. Cadby, exec, v.p., Helena

Norwest Names President
for Region VIII
Norwest Corporation has an­
nounced that Vance O. Williams has
been named re­
gional president
for N o rw e st’s
R egion V I I I ,
comprising Nor­
west’s banking
o p e ra tio n s in
Mr. Williams
succeeds C.P.
B uck M oore,
who has been
named to the new post of regional
chairman for Montana, and who re­
mains Norwest regional president
for South Dakota.
Mr. Williams previously was ex­
ecutive vice president of Norwest
Bank South Dakota—Sioux Falls,
and senior credit administrator for
the South Dakota region, Region
VI. He joined Norwest in 1957 as a
credit analyst in the corporate office
in Minneapolis, and subsequently
served with Norwest banks in Fari­
bault, Minn., for 11 years; Fargo, N.
Dak., four years, and Rapid City, S.
Dak., for eight years. He moved to
Sioux Falls in 1984.

through the first quarter of this
year. We’ll know more when later
statistics are available.”

MBA 25 Year Club
Awards Scholarships
The Montana Bankers Associa­
tion reminds bankers whose careers
span 25 or more years that they may
join the MBA’s 25 Year Club
scholarship award program. To join,
bankers need only send a $25 con­
tribution and the year they entered
banking to the MBA office.
The contributions are used to
fund $500 scholarships to students
majoring in finance, business and ag
business at Montana state universi­
ties and colleges. Six scholarships
were awarded this year.

(Continued from page 42)
manager for the Huron Valley Na­
tional Bank in Ann Arbor, Mich.
Mr. Hoover’s primary duties will re­
late to the marketing of Banclnsure
products to MBA-member banks.

Economic Recovery Seen
According to a recent article in
The Billings Gazette, statistics con­
firm economic recovery is taking
place in Montana.
The newspaper has tracked vari­
ous economic indicators since 1984,
including housing starts, number of
oil rigs, visitation at Yellowstone
and Glacier national parks, savings
and loan deposits, prices for farm
commodities and unemployment
Phil Brooks, Montana state eco­
nomist, was quoted as saying: “My
overall judgment is that recovery
started last fall and has continued
Federal Reserve Bank of St. Louis

Changes Told in St. Cloud
The addition of John Reep as
trust officer has been announced by
John E. Leisen, president of Zapp
National Bank in St. Cloud. He was
previously associated with Iowa
State Bank.
In addition, Keith Finstad has
been named assistant trust officer.
He has been with the bank for four
years and previously worked in the
audit department.
Assistant Vice President Mark
Christianson recently received his
Certified Financial Planner status.
He has been with Zapp for six years.

Zapp Presents Free Movies
for Senior Citizens
Zapp National Bank, St. Cloud, is
once again sponsoring its “Senior
Cinema” program, in cooperation
with the Cinema Entertainment Cor­
poration. The bank makes free
movie tickets available for use at the
local Crossroads Cinema theater. Re­
freshments at 9:30 a.m. precede the
show, at 10:00. The bank recently of­
fered “Crocodile Dundee” and will
present “ Hoosiers” on Oct. 14.

Brainerd Bank Sponsors
Business Seminars
For the second year, First Ameri­
can Bank in Brainerd is co-operating
with the Brainerd Area Chamber of
Commerce to present a series of
seminars for small businesses called
“Business Sense Seminars.” A re­
cent program, offered on Aug. 25 at
the Brainerd Holiday Inn, featured a
CPA discussing how to “Manage
Your Business for Profits.”
The seminars are held monthly.
Future topics include tax laws, em­
ployee appraisals, computers and ac­

Bank Secrecy Seminars Held
Nearly 200 bankers attended the
first three meetings of the Bank Sec­
recy Act Seminar for Customer Con­
tact Personnel. The seminar is spon­
sored by the Minnesota Bankers
Association and 17 Minnesota
Study Groups and the Southwest
Chapter of the AIB, in cooperation
with the Internal Revenue Service.
The seminar is scheduled to be
held in 24 locations from July
through September. According to
MBA Administrative Vice Presi­
dent Wayne Berthiaume, “Response
has been tremendous.” 2000 total
attendees are expected.
Northwestern Banker, September, 1987


mid-market lending. Prior to that he ^
was employed by Affiliated Bankshares of Colorado, Inc. and First
National Bank of Denver.

1st Interstate Acquires
Bank of Casper

Colorado Natl. Announces Staff Changes
Colorado National Bankshares,
Inc., Denver, has announced recent
staff changes.
Robert G. Baker, Jr. has joined
Colorado N ational B ank—E x ­
change, Colorado Springs, as execu­
tive vice president and chief operat­
ing officer. He began his banking
career in 1964 at the former Colo­
rado Springs National Bank, and
held various positions there until his
election as president in 1985.
Pamela M. Kelsall has been
elected a vice president at Colorado
National Bank of Denver. She has
been with CNB since 1978 and man­
ages the banking division’s planning
and product development activities.
Stephen J. “Ched” Miller has
been elected a vice president of Colo­
rado National Bank—Lakewood. He
joined the bank in 1974 and is re­
sponsible for commercial lending.
Also at the Lakewood bank,
Nancy A. Harvey has been elected a
loan operations officer. She has been
with the bank since 1983.
Linda Brinson has been elected a
vice president of Colorado National
Bank—Arvada. She began with the
bank in 1978, and is responsible for
accounting, customer assistance,
bookkeeping, switchboard and proof
Also at the Arvada bank, Pat
Deegan has been elected a banking
officer. She joined CNB in 1980
and is responsible for new accounts.
Ronald K. Siegle has been elected
assistant vice president at Colorado
National Bank—Northeast, Denver.
He has been with CNB since 1983
and is responsible for commercial
and consumer loans and consumer
Chris A. Duran has been elected
an assistant vice president of Colo­
rado National Mortgage Company.
She joined the company in 1981, and
is responsible for all loan servicing
Banker, September, 1987
Federal Reserve Bank of St. Louis

E. Kinzie Gordon has been elected
an assistant vice president of Colo­
rado National Mortgage Company.
She joined the company in 1985, and
is responsible for commercial real
estate loan origination and investor

Central Bancorp.
Announces Promotions

First Interstate Bank of Denver
announced today that it has ac­
quired 100% of the stock of the
Bank of Casper. The stock was ac­
quired as a result of a bank stock
loan to Energy Banks, Inc., a Casper
bank holding company.
Chuck Pedersen, president and
CEO of First Interstate Bank of
Casper will become chairman of the
Bank of Casper. No other staff
changes are anticipated.

Arapahoe Banks to Merge
United Banks of Colorado, Inc.,
Denver, has filed an application with
the Comptroller of the Currency for
the merger of United Bank of Arapa­
hoe—East into United Bank of Ara­
Both banks are located in Englewood. Following approval, the
merged bank will be headquartered
in the United Bank of Arapahoe
William K. Soldan has been
elected president, chairman and
CEO of the bank. He previously
served as executive vice president of
United Bank of Littleton. He has
nearly 25 years of banking experience, including 15 years with United
Banks of Denver, Arapahoe, SouthPark and Littleton.

Kent D. Boyd has been elected
president of Central Bank of Aurora.
His 17 years of banking experience
include senior vice president for Cen­
tral Bank of Colorado Springs and
executive vice president for Central
Bank of Broomfield. He has also
served as interim president for two
Central banks, and most recently
was executive vice president of Cen­
tral Bank of Chatfield.
Meanwhile, Raymond L. Guerrie
has been elected president of Central
Bank of Westminster. He has served
other Central Banks in Battlement
Mesa and Glenwood Springs as
president and executive vice presi­
dent, respectively. He is currently
president of Central Bank of Broom­
field and will continue in that func­
Glen L. Ryland has been elected
to the board of Central Bank of
Denver. He is president of Ryco, CMBA Elects Officers
Inc., and aviation and general man­
At its recent convention in Vail,
agement consulting service.
the Colorado Mortgage Bankers As­
sociation elected its 1987-88 officers
and board members.
D.L. “Dutch” Franz, senior vice
president of United Mortgage ComNamed in Denver
pany, was elected president; David
Rick Regan has been named se­ C. Harder, president and CEO of In­
nior vice president of commercial terstate Lending Corporation, vice
lending at First Interstate Bank of president, and C.W. “Chuck” Lent,
Denver. He joined the bank in 1986 Jr., vice president of National Mort­
as vice president and manager of gage Company, secretary/treasurer.







If we're not your
bank, you're
writing off
the best service
in the region.
Frankly, you’re short-changing your­
self and your custom ers by not using First
Interstate Bank of Denver as a correspon­
dent bank.
That's because no other bank in the
Rocky M ountain region approaches our
experience, resources, and breadth of
You're missing the business know­
how of the region’s oldest bank, one that
understands your m arket and has helped
large and small financial institutions suc­
ceed for over 127 years.
You’re missing the strength and flex­
ibility of the m ultistate First Interstate
Bank system, w ith m ore than $55 billion
in assets.
And you're missing a range of com­
prehensive and technically advanced
products that can be tailored to your
needs today and tomorrow.
Specifically, you're overlooking:
Cash letter processing that gives you
excellent availability and competitive
A proven com m itm ent to extending
cre d it

Participations that offer flexibility
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Investment products and expertise
from the region's leading investment
dep artm en t
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The m ost advanced cash m anage­
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consulting and support.
Third-party cash m anagem ent ser­
vices that will m eet the needs of your
And you can buy federal funds at
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$50,000 on approved credit.
To learn more, call Bob Swartz now
at (303) 293-5600. W hether your operation
is large o r small, you have a lot to gain
from the best correspondent banking
services in the Rocky M ountain region.

First Interstate
First Interstate Bank of Denver
633 Seventeenth Street, Denver, Colorado 80270
Member FDIC
Federal Reserve Bank of St. Louis

Here’s One Line
That Says More About Us
Than Anything.
When it comes to gauging success, one of the key indicators is total assets.
First National Bank of Omaha1* has one of the best records of any financial institution
in Omaha.
We’re proud of our solid growth. And proud to serve you — and assure you —
with our strength, financial expertise and experience.
Few institutions offer you what we can in performance and stability. Wouldn’t
you rather trust your money to the people who consistently prove they know how to
manage it?
In 1986 we achieved $1,118,046,000.00 in total assets. That’s why we’re proud
of our name.
* First National of Ncbr., inc.

No Wonder They Call Us First.


firs! naNonal bank
of omaha
Member FDIC
Federal Reserve Bank of St. Louis


Legislation Dominates Area Meetings
berg, who manages the NBA em­
ployee benefit program.
Mr. Blaha stressed the need for
development of a good image of
REA MEETINGS conducted banking, as well as the need for
a strong Contact Banker
at six locations around thedeveloping
last month by the Nebraska Bank­ committee. He reviewed an almost
ers Association drew excellent weekly series of meetings he and the
crowds of bank officers.
other staff had been involved in
The meetings were held Tuesday, since his election to head the NBA
0 Wednesday and Thursday in succes­ at the convention last May.
sive weeks—August 11, 12 and 13 in
A major portion of the program
Omaha at Ross’ Steak House; Bea­ was devoted to the “Government
trice Elks Club, and in Columbus at Relations Report,’’ reviewed in
the New World Inn; August 18, 19 depth by Mr. Brandt. He stressed
HI and 20 at Scottsbluff Country Club; again the need for a strong Contact
McCook Elks Club and the Kearney Banker committee because it will be
Ramada Inn.
needed in coming months as key
NBA President Don Blaha, presi­ issues important to banking are pre­
dent and CEO at First National sented to the legislature.
# Bank, Ord, presided at the meet­
Mr. Brandt stated up front that in
ings. Speakers at each meeting in­ his opinion, “Usury could be the
cluded Bill Brandt, NBA general most dangerous issue facing us in
counsel; Stan Matzke, NBA execu­ the legislature, notwithstanding the
tive vice president; Roger Fleury of emphasis on structure and other
# Nebraska Senator Karnes’ office in issues. It will take the united effort
Washington, D.C., and Bill Oster- of all financial institutions in Neb­




ADDRESSING th e s ix area m e e tin g s c o n d u c te d la s t m o n th by th e N e b ra s k a B a n ke rs
A s s o c ia tio n w e re th e above, le ft to rig h t: Bill Brandt, N B A g enl. c o u n s e l; Stan Matzke, NBA
exec. v .p .; Roger Fleury, a id e to N e b ra s k a ’s U.S. Sen. K a rn e s, and N B A Pres. Don Blaha,
pres. & ceo, 1st N a tl., Ord.
Federal Reserve Bank of St. Louis

raska, and that means all Nebraska
banks as well. If you can assist as a
Contact Banker, please come for­
ward now to help make this a united
On the issue of Public Funds, Mr.
Brandt said law changes over the
years mean that “Our argument for
a level playing field gets weaker.’’
LB488 that was proposed last ses­
sion in Lincoln demands divestiture
of 50% of state funds from banks.
Mr. Brandt said Nebraska is the last
state having such restrictions
against s&ls.
He reported that “We have just
received a compromise offer’’ on the
Public Funds issue from leaders of
the top five s&ls in the state. This
compromise would remove the re­
strictions; would allow deposit of
funds in stock s&ls only; would defer
the startup date to January 1, 1990.
“This may not be enough,” Mr.
Brandt stated, “but down the road
is coming a bill to pool all insurance
through one place for several coun­
ties going together. Now they want
to pool public funds to go into one
place and we see possibly a state
bank like the one in North Dakota...
A positive result of compromising
on the Public Funds issue is from
gaining an ally that will help fight
the pooled funds issue to operate a
state bank, and they would help
fight this.” In response to a ques­
tion, Mr. Brandt said the 50% dives­
titure is not a part of the compro­
mise offer made by the s&ls.
Mr. Brandt said “The Public
Funds issue was discussed with the
NBA committees at their retreat re­
cently and they agreed unanimously
to seek compromise.”
On the issue of interstate bank­
ing, Mr. Brandt reported that NBA
has sent out to five firms requesting
a proposal to conduct a survey. Two
questions apparently will be asked:
The first will ask the banker’s per­
sonal preference on interstate bank­
ing—for, against or neutral. The sec­
ond will ask what the NBA’s posi­
tion should be—for, against or neu­
tral. The results, according to Mr.
Matzke, will be used by the execu­
tive council in determining a posi­
Mr. Brandt said Nebraska is bet­
ter off with voluntary rather than
mandatory mediation such as pre­
vails in Minnesota and Iowa. He
said as of September 1, former
Judge Sam Van Pelt and his firm
will provide voluntary mediation
Northwestern Banker, September, 1987


Nebraska News

He also said that on the issue of
branch banking, the NBA has voted
not to take a position so long as the
bill is confined to Douglas, Sarpy
and Lancaster counties. He also
stated NBA’s opposition to tamper­
ing with the usury limits, or allow­
ing any annuity loophole as a means
for evading debts in bankruptcy.
Mr. Fleury recapped Congres­
sional work leading to the passage of
H.R. 27, which was signed into law
August 10 by President Reagan. He
also reviewed current negotiations
that brought the Farm Credit Sys-

Talk To The Municipal
Bond Professionals

William March

Robert E. Rob


Exec. Vice President

Patrick H. Rensch

C.W. (Chuck) Poore, Jr.

Sr. Vice President

Sr. Vice President

Bill Abts, Jr.

Wayne A. Rasmuss

Vice President


Micky Krupinsky

John Trecek



For municipal bond OFFERINGS,
BIDS and APPRAISALS, call on
the professionals who specialize
in tax-free bonds.

Municipal Bond
Underwriters, Inc.
Investment Bankers • Underwriters
208 South 19th Street, Omaha, Nebraska 68102
(402) 341-1144
In Nebraska Call Toll Free (800) 642-4413

Banker, September, 1987
Federal Reserve Bank of St. Louis

tern rescue bill and the ag secondary
market out of committee and before
the House in mid-August.
Mr. Matzke reported that Presi­
dent Blaha had reactivated the Eco­
nomic Development Task Force ini­
tiated a year and a half ago by for­
mer NBA President Kelly Holthus.
In the material handed out to all reg­
istrants at the area meetings was a
page asking individual banks for a
commitment to the NBA’s Lender
Commitment Program in connection
with local economic development. It
is a non-binding commitment but
serves to focus each bank’s atten­
tion on the need for such local
development, while also focusing
community attention on the com­
mitment of the local bank(s).
In a related area of activity, Mr.
Matzke reported that the NBA mar­
keting committee will underwrite
the approximately $ 12,000 cost for
producing a half dozen newspaper
ads for local placement that have
been developed by Bailey & Lewis
advertising agency of Lincoln. The
ads are taglined “Your Home Town
Bank,” and are aimed at economic
development in cooperation with the
Nebraska Department of Economic
Mr. Matzke also reported on a
customer study to be handled by the
Rozmarin firm in Omaha. It will con­
sist of two parts. Two personal inter­
view focus group studies will take
place in Lincoln and Kearney, con­
sisting of 10 to 12 people in each
case. The state also has been divided
into five areas by the marketing
committee for 1,000 telephone sur­
veys. The results will be presented
to CEOs in October at the Senior
Management Conference.
The business meetings concluded
with an explanation of new details of
the NBA insurance programs by
Bill Osterberg, who services the Vol­
untary Employees Beneficiary As­
sociation that provides coverage to
nearly 400 Nebraska banks.
A reception and dinner, featuring
Oklahoma humorist Dan Baker, con­
cluded the evening at each meeting.

first meeting will be held in early Oc­
tober. The purpose of the meeting
will be to recommend a target year/
date for the first Ag Lending School,
plus begin curriculum planning.
Committee members are: Jack
Meyers, exec, v.p., First National
Bank, Cunningham, Kan.; Galen
Nelson, v.p., American State Bank,
Great Bend, Kan., James L. Darrah,
pres./CEO, Chapman State Bank,
Chapman, Kan.; Becky Tongish,
Dir. of Ed. and Human Resources,
KBA; Jone Beer, Schools of Bank­
ing administrator; C.G. Holthus,
pres./CEO, First National Bank,
York, Neb.; Homer Pierce, pres./
CEO, Seven Valleys State Bank,
Callaway, Neb.; Dale Goff, v.p.,
Richardson County Bank, Falls
City, Neb.; Don Blaha, pres./CEO,
First National Bank, Ord, Neb., and
Karen Miller, Dir. of Ed., NBA.

Elected in Tecumseh
Terrence L. Geiger has been
elected president of the Johnson
County Bank of
T ecu m seh , a
w h o lly -o w n e d
s u b sid ia ry of
A m erican N a­
tional Corpora­
tion. Active in
banking since
1972, Mr. Geiger
had served as
the president of
other banks prior
to joining American National in

Promoted in LaVista

The Bank of Nebraska in LaVista
has named Robert J. Hearron its
president. He previously served as
senior vice president of Mid City
Bank of Omaha.
Other promotions at the bank
were: Dick Janowski, senior vice
president, to senior loan officer; Cur­
tis D. Brown, to loan officer/consumer loans; Anthony J. Horacek to
□ cashier; Ethel J. Stamm to assistant
cashier in charge of mortgage loans,
Ag Lending Committee
and Cindy Luukkonen to assistant
Established by KBA/NBA
cashier in operations.
Under the direction of the KBA/
NBA Schools of Banking board of
directors, a special Agricultural Banks to Merge
Application has been filed to
Lending Advisory Committee has
been established. Chaired by C.G. merge Dalton State Bank into First
“Kelly” Holthus, the committee’s National Bank of Sidney.
Federal Reserve Bank of St. Louis


At Norwest Bank Nebraska,
Michael Drahota has been promoted
to vice presi­
loan administra­
tion and Marcy
Long and Diane
Robinson have
been advanced
to assistant vice
Mr. Drahota
joined Norwest
in 1985 as a
special loan administration officer.
Prior to that he worked as an admin­
istrative legal council for another
Ms. Long is manager of the 96th
and L Street facility. She joined the
bank in 1967 and has managed the
discount department, was assistant
facility manager and a personal
banking officer.



Several officer appointments have
been announced by FirsTier Bank
Ronald H. Bielenberg was named
vice president. He joined the bank in
February and is serving as the city
executive for the Kearney facility.
Nancy K. Johnson was promoted
to vice president. She joined the
bank in 1973 and is a personal trust
administrator III in the estate and
trust division.





to vice president. He transferred to
the bank in 1986 from FirsTier Man­
agement Consultants where he was
a senior field consultant.
Named assistant vice presidents
were: Gerald J. Cook, manager of
the credit card—credit department;
Howard James Cunningham, trust
systems analyst in the operations
area of the estate and trust division;
Karry A. Johnson, manager of account services for the operations
division; Thomas H. Rogers, lending
officer II in the corporate team of
the commercial lending division;
Robin A. Sgroi, manager of credit
card operations in the retail division,
and Bruce Stacy, a lending officer II
in the leasing department of the
lending division.
Other officer appointments were:
Christine L. Brown, lending officer;
John C. Brown, credit officer; Susan
K. Fleetwood, credit officer; Dan K.
Gomez, lending officer; Virginia
Hughes, trust investment officer;
Wood A. Hull, personal trust officer;
Linda Mason, operations officer;
Susan Moreland, operations officer;
Mary Theresa Ringwalt, trust in­
vestment officer, and Philip D.
Wolf, lending officer.

Ms. Robinson is the manager of
the Cash Center at 20th and Farnam
Street. She joined Norwest in 1974
and has been manager of the savings
section, DDA section and tellers.
She has managed the Cash Center
since 1971.
Banker, September, 1987
Federal Reserve Bank of St. Louis









FirsTier Financial, Inc. net in­
come for the first six months of 1987
totalled $9,418,000, a 35.3% in­
crease over the $6,959,000 earned
during the same period of 1986. On a
per share basis, earnings were $ 1 .88,
compared to $1.40 a year ago.
Second quarter earnings totalled
$4,409,000, or $.88 per share, up
62.5% from the comparable 1986
According to William C. Smith,
president and CEO, the corpora­
tion’s improved performance pri­
marily resulted from its ability to re­
duce the monthly provision for loan
losses to a level that is consistent
with current requirements.
The primary capital ratio of Firs­
Tier Financial, Inc., was 7.69% at
mid-year. FirsTier Bank Omaha’s
ratio was 8.62% and FirsTier Bank
Lincoln’s was 9.12%.

Also named v.p. was Mark J. Matthes. He is division manager of the
new created operations division. He
transferred in June from FirsTier
Bank Lincoln, where he served as
vice president and operations man­
John S. Morris was also promoted









Kirkpatrick, Pettis, Smith, Polian
Inc. has announced the appointment
of Robert D. Northrop as senior vice
president, business development, in
its Lincoln office.
KPSP, a full-service investment
banking and securities brokerage, is



Nebraska News

an affiliate of Mutual of Omaha with
offices in Omaha and Lincoln.
Mr. Northrop has many years of
banking an investment experience.
From 1979-83, he served as presi­
dent and chief executive officer of
First Mid America, Inc., a Lincolnbased brokerage firm. Prior to this,
he served as executive vice presi­
dent for First National Bank of Lin­
coln (now FirsTier).
Most recently, he has served as
administrator of economic develop­
ment for the City of Lincoln.
* * *
At American National Bank,
Chris J. Murphy and Albert Pinho
have been elected assistant vice
presidents. Mr. Murphy joined the



bank in 1980, and will continue his
responsibilities with the marketing
and loan departments. Mr. Pinho
joined the bank’s loan department in
* * *
First National Bank of Omaha
has filed an application with the Of­
fice of the Comptroller of the Curren­
cy to open a branch office at 114th &
Dodge Streets in Omaha.
* * *
Mrs. Elizabeth Robbins, 58, who
retired from the First National Bank
of Omaha last spring after 20 years
of service there, died last month of
cancer in an Omaha hospital.
Liz Robbins was known to bank­
ers throughout Nebraska, Iowa and
other states for her two decades of
work in the correspondent banking
department where she worked as
secretary and administrative assis­
Mrs. Robbins is survived by her
husband, W.J. Robbins, Nebraska
area manager of the U.S. Treasury
Savings Bonds division; a son,
Steve, of San Francisco; and two
daughters, Jeanne Harrington and
Kay Peterson, both of Omaha.
Federal Reserve Bank of St. Louis

John Cochran, president of Norwest Bank Nebraska, has an­
nounced that Norwest scholarships
have been given to the following
Nebraska students: Marcia Hild,
Lori Ann Krajicek, David Arkfeld,
Teresa Ann Luedke and Tracey
Newby of Omaha, Andre Leigh Hitz
and Donald Fendrick of Norfolk and
Michael J. Farrell of Hastings. A
total of 94 college scholarships were
given by Norwest this year.


Lexington Banks to Merge
Farmers State Bank & Trust Co.,
Lexington, has filed application
with the Nebraska Department of
Banking to acquire First Savings
Company of Lexington. The latter is
an industrial bank owned by basical­
ly the same stockholders as Farmers
State Bank, and it will be merged
into the bank.

Krejci Moves to Hickman

Ronald J. Krejci has resigned as
president and CEO of Schuyler
Don Bell has resigned as presi­ State Bank & Trust Company. He
dent and chief operating officer of and a group of investors have ac­
the Crawford State Bank to pursue quired the First State Bank of Hick­
other business interests. Ben Nor­ man. Mr. Krejci will serve as that
man has been appointed executive bank’s chairman and chief executive
vice president and chief operating officer.
officer. He previously served as vice
president at Security National Bank
NBA Members Encouraged
in Harrison.
Max Hasselbring has resigned as to Attend ABA Convention
the bank’s installment loan officer,
First choice for hotel accommoda­
in order to accept a position with the tions
at the ABA Convention has
Casey Insurance Agency in John­
by the NBA to be
son. His successor is Scott Haskell,
Dallas at Re­
who was formerly assistant cashier
at the First National Bank of Fair- NBA members are encouraged
mark this hotel on their convention
registration form.
The NBA Post-Convention Trip,
Ownership Change
Oct. 21-24, will take you to the San
Filed in Minatare
Antonio Marriott Riverwalk. Call
A group of investors headed by the hotel at (512) 224-4555 and ask
Gary L. Kelley has applied under the for the NBA Post-Trip room block.
Change in Bank Control Act to ac­ Current rates for single or double
quire 100% of the voting shares of are $95-$105. Contact the NBA of­
Minatare State Company, the hold­ fice for more information on the
ing company for Minatare State Post-Trip.
Bank. Mr. Kelley is the bank’s presi­
dent. Application is on file with the
Federal Reserve Bank of Kansas Trust School Announced
City, awaiting approval in late Sep­
The KBA/NBA Schools of Bank­
ing will offer their 1987 School of
Present owner of the holding com­ Trust & Financial Planning on Nov.
pany is bank Chairman H.L. McKib- 2-6 at the Holiday Inn—Central in
According to Mr. Kelley, no staff
Registration will begin at 11:30
changes are anticipated in connec­ a.m. on Nov. 2; classes officially
tion with the ownership change.
begin with an orientation at 1:00
p.m. The school adjourns on the 6th
at approximately 12:15 p.m., follow­
Merger Application
ing the post-test.
Filed in Schuyler
Enrollment fee includes registra­
Schuyler State Bank & Trust Co. tion, instruction, four nights lodg­
has filed an application with the ing, breakfasts, lunches, coffee
Nebraska Department of Banking breaks, one reception and all class­
to acquire State Savings Company room materials. Fees are $700 for
of Schuyler. The two organizations single housing, $600 for double, and
share some common stockholders. $550 without housing.
State Savings Company would be
For an application, call Jone Beer
merged into the bank and operated or Pam Bartak at (402) 474-3313.
as an office of Schuyler State Bank. Deadline for applications is Oct. 5;

Changes Told in Crawford

Northwestern Banker, September, 1987


The new benefit is in addition to 0
other benefits already provided for
Cole Taylor employees—a 401(k)
plan, profit sharing, medical and
dental insurance, and life and dis­
ability insurance.

Donald R. Campbell was elected
president of Commerce Savings Lin­
coln, Inc. by the board of directors
at their July meeting. Mr. Campbell,
who was formerly senior vice presi­
dent, remains a member of the board
of directors.
Mr. Campbell began his banking
career at the National Bank of Com­
merce in 1972. He transferred to
Commerce Savings in 1974 shortly
after the bank was acquired by First
Commerce Bancshares, Inc.
At First Commerce Bancshares,
Ann Emanuel Hovis has been pro­
moted to audit manager. She joined
the audit staff in 1983. Her previous
experience includes employment
with First National of Kearney.
* * *
FirsTier Bank Lincoln has an­
nounced several promotions:
Alan R. Eveland was promoted to
assistant vice president, underwrit­
ing, municipal and government bond
division. He joined the bank in 1979.

BAI Officers Announced
The 1987-88 officers of the East
Central Nebraska Bank Administra­
tion Institute are as follows: Presi­
dent-T erry Novak, First National
Bank Omaha, David City branch;
Vice President—Daryl Wilton, First
National Bank, Schuyler; Secretary/
Treasurer—Robert Frehrichs, First
National Bank, Columbus. Past
President—Jayne Shack, Albion Na­
tional Bank.

Receives Scholarship
The KBA/NBA Schools of Bank­
ing has named Max L. Dibble reci­
pient of The Prochnow Educational
Banker, September, 1987
Federal Reserve Bank of St. Louis



The Construction and General
Laborer’s District Council of Chi­
cago and Vicinity, in cooperation 0
with Amalgamated Trust & Savings
Bank, Chicago, will offer a no-fee
12.5% annual rate MasterCard to its
16,000 members. Said Council Presi­
dent Ernest Kummerow, “Ours is #
among the best credit card affinity
not only in the construc­
Michael G. Harlander was ad­
vanced to assistant vice president tion trades, but possibly the coun­
and investment officer, municipal try.’’
* * *
and government bond division. He
joined FirsTier in 1984.
In connection with the recent
Daniel S. Black was named ag and
in the Cole Taylor Financial
financial institutions officer, and
corporate identity, a special
Carolyn A. Sharp, operations man­
children’s art contest was held by all •
ager at the 13th and “L” branch.
member banks. Artwork submitted
* * *
was to answer the question, “ If you
Robert R. Rossel has been elected changed your identity, what would
correspondent banking officer at the you look like?”
Winners were selected in the 8-11 ®
National Bank of Commerce. He
joined NBC in 1979 as check pro­ year age group and the 12-14 year
cessing manager after spending nine group at each member bank. Judges
years with an Omaha bank as cost were a panel of three members of the
accountant officer. After serving as School of Art Institute’s non-degree
check processing officer and assis­ program.
Winners received scholarships to
tant vice president, Mr. Rossel left
the bank to spend the past two years the Studios Program of the Art In­
in private business.
* * *
FirsTier Bank Lincoln has closed (Continued from page 44)
its Bellwood branch, located at
Broadway and State Streets.
on Aging, Banking, Credit and Tax­
ation and the Senate Committee on #
Agriculture, Health and Human
Services on the availability of credit
for rural economic development.
Foundation PDP Scholarship. Mr. Bankers also testified before the
Dibble, an operations officer at the joint committee on Northwestern #
First National Bank of Phillipsburg, Wisconsin’s special listening session
Kan., will receive a full scholarship on the economy of Northwestern
for the first-year session at the Wisconsin with special emphasis on
Graduate School of Banking in tourism.
Madison, Wis.
(Continued from page 43)
Employee Stock Ownership Plan
(ESOP). All of the initial 7,923
shares in the ESOP were purchased
without incurring debt, meaning
Cole Taylor’s initial contribution to
the ESOP amounts to about $1.47

Named in LaCrosse
Arthur S. Holmes, president and
founder of ALTEC International,
Inc., has been named to the board of #
directors of First Bank LaCrosse.
Prior to forming ALTEC, he was
vice president and manager of the
gas processing division of Koch Pro­
cess Systems, Inc., Westborough, !»

(Continued from page 26)

trying to make the point that Nebraskans can grow
other things besides feed grains,” Mr. Holthus empha­
In-House Data Processing
Innovation comes naturally to Kelly Holthus. In
1966, 1 st National Bank of York was the first Neb­
raska bank (outside of Omaha and Lincoln) to hire a
service center to do its data processing. The First Na­
tional Bank of York was also the first small-town bank
in Nebraska to install automated teller machines
‘‘Our latest innovation is to do our data processing
in-house,” says Mr. Holthus. ‘‘We were happy with the
service center but, after a thorough study, we decided
we could save a significant amount of money by doing
our own data processing. Not only that, we are now the
service center for our branch banks in Bradshaw, McCool Junction and Waco.
‘‘Best of all, our entire bank is running on a software
system developed and produced by Information Tech­
nology Inc. of Lincoln.
Midwest Firms Are Leaders
“And that brings up a pet peeve of mine,” he inter­
jected. “Too many people out here on the Great Plains
have this notion that sophisticated computer systems
have to come from the big cities on the coasts.
“ I remember having breakfast with some bankers at
a meeting back East. This one bank president was
from New England and he was raving about how much
he liked the banking software he was running on his inhouse data processing system. Then, a bank president
from Virginia chimed in and said he was using the
same software and started telling everyone how his
staff loved this particular system.
“Since we were thinking about doing our own data
processing, I broke in to ask the name of this software
company. I found out it didn’t come from Boston or
Silicon Valley. It came from 50 miles down the road in

Kelly Holthus points to 26 acres of land where 1st National Bank
of York officers have planted onions, cauliflower, broccoli, sweet
corn, lima beans and muskmelon as part of the bank’s “Alterna­
tive Crops Demonstration Plot.”
Federal Reserve Bank of St. Louis

IN 1st National’s computer room, Kelly Holthus discusses a data
processing procedure with Ronald Winquest, manager of EDP at
the bank.

“Later, we learned Nebraska has at least three com­
panies producing computer software for the financial
services industry. With a little more digging, we found
three of these companies virtually dominate the pro­
duction of financial services software in America.
“And th a t’s my point. If we can write some of the
most sophisticated and innovative computer software
in the world out here on the Great Plains, we also have
what it takes to gear our farming operations to the
realities of a changing economy.
Farmers Rely on Computers
“More and more, our farmers come in with their led­
gers and cash-flow projections on computer printouts.
Recently, I read that today’s farmers are adapting to
the micro-computer more quickly than their grand­
fathers took to the tractor after World War I. The use
of computers means our customers have a better fix on
their costs, day-to-day.
“A sure way to go broke is to sell low and buy high.
Shipping out raw materials at low prices and buying
back high-priced manufactured or processed goods is a
cycle we must break by learning to convert whatever
we produce to cash either on or near the farm.
“ I think the successful bankers of the future will be
those who are willing to invest in on-farm or near-thefarm food or fiber processing plants. If a bank is a re­
flection of the community it serves, bankers have to be
willing to help their customers change with the times,”
says Mr. Holthus.
Farm/Bank Teamwork Needed
“Long ago,” he continued, “ I learned you really
have only two choices: you are either part of the prob­
lem or part of the solution.” So, as president of this
bank I ’ve tried to get everyone in our industry to be
part of the solution. Farming has to change and bank­
ing has to change right along with it.
“Working as a team, we’ll make it into the 21st Cen­
tury and be stronger than ever,” Mr. Holthus con­

■ ABOUT THE AUTHOR—William A. Hamilton,
Ph.D is a Lincoln-based free-lance writer and syndi­
cated columnist. Dr. Hamilton’s column, “Central
View,” appears in almost 450 newspapers.
Northwestern Banker, September, 1987


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 and
Don Jordahl.

Banker, September, 1987
Federal Reserve Bank of St. Louis

Des Moines, Iowa 50304
Member FDIC, Federal Reserve System


* “Forging Ahead with Confidence”
Iow a Bankers A ssociation 101st A nnual Convention
Des Moines Convention Center
September 20-22








Exec. Vice Pres.

OMPLETING a century of activity and service,
the Iowa Bankers Association will hold its 101st
annual convention September 20-22 in Des Moines.







Once again the city’s beautiful convention center will
host bankers from all over the state.
With the theme “Forging Ahead with Confidence,”
the convention will focus on the new optimism rising
throughout the banking industry.
Russell S. Howard, chairman of the Mahaska Investment Company, Oskaloosa, will preside over the
gathering. Scheduled to assume the presidency is Clair
J. Lensing, president of Farmers State Bank, Marion.
IBA Treasurer for the past two years has been Fred
Hagemann, president of the State Bank of Waverly.
Neil Milner has continued to serve as the Association’s
executive vice president.
“Bank Day at Living History Farms” will begin the
festivities on Sunday the 20th. Highlighted by ribbon­
cutting ceremonies at the Walnut Hill Bank, the day
will also feature a church service at Church of the Land
and an old-fashioned picnic. Bankers and their families
may visit Living History Farms free of charge for the
Two special performances of “South Pacific” with
Robert Goulet will be presented for bankers at 3:00
and 7:30 on Sunday at the Civic Center.
Outstanding speakers are scheduled for the general
sessions on Monday and Tuesday. Internationally
known economist Paul McCracken, “Wall Street
Week” ’s Louis Rukeyser, ABA President Mark Olson
and University of Iowa basketball coach Tom Davis
will be featured. Forums for both Republican and
Democratic presidential candidates will be offered, and
the following are scheduled to appear: George Bush,
Pierre DuPont, Ben Fernandez, Alexander Haig, Kath­
leen Heslop, Jack Kemp, Paul Lexalt, Pat Robertson,
Federal Reserve Bank of St. Louis

Joseph Biden, Michael Dukakis, Richard Gephardt,
Albert Gore, Jr., Jesse Jackson and Paul Simon.
The popular concurrent sessions will be offered
again this year, with topics including mergers and ac­
quisitions, banking regulators, marketing, products
and services, and bankruptcy.
The President’s Dance, “Some Enchanted Even­
ing,” will be held Monday night at the Marriott Hotel
and feature The Big Band Sound, formerly the William
Tell Band. Midwest Marketing Consultants will be
taking portraits in order to provide bankers with com­
plimentary picture packages.
The Ag Breakfast Tuesday morning will include
speakers Dean Kleckner, American Farm Bureau
Federation president, and cowboy humorist Baxter
Entertainment for the traditional Inaugural Dinner
will be the West Des Moines Dixieland Band.
The convention program and spouse program fol­

Sunday, September 20

Bank Day at Living History Farms.
Church services.
Dedication of Walnut Hill Bank.
IBA and IBIS annual meetings, Church of the
Registration Desk open at Convention Center.
“South Pacific,” Civic Center.
Exhibit hall open at Convention Center.
Reception in exhibit hall—cash bar.
“South Pacific,” Civic Center.
Northwestern Banker, September, 1987


Iowa News



Monday, September 21
8:00 Registration desk and exhibit hall open.
8:30 Opening ceremonies.
9:00 Paul McCracken, member, President Reagan’s
Economic Policy Advisory Board.
10:00 Republican presidential candidates forum.
11:15 Tom Davis, U. of Iowa basketball coach.
11:45 Lunch.
1:30 Concurrent sessions.
“Unraveling the Mysteries of M&As’’
“Realizing Profits From Expanded Bank Ser­
“Straight Talk From the Regulators”
“Creative Portfolio Strategies”
“Bits and Bytes of Computer Wizardry”
3:00 Break.
3:15 Concurrent sessions repeated.
8:30 “ Some Enchanted Evening,” President’s
Dance, Marriott Hotel.
Tuesday, September 22
7:00 Registration desk open.
7:00 Ag Breakfast.
Dean Kleckner, pres., American Farm Bureau
Baxter Black, cowboy poet.
8:00 Exhibit hall open.
9:00 Concurrent sessions.
“Don’t $ell Your Bank Short”
“State-of-the-Art Approach to Loan Documen­
tation Preparation”


Banker, September, 1987
Federal Reserve Bank of St. Louis



“With Opportunity Comes ResponsibilityGuidelines to Home Equity Lending”
“Secrets of a Bankruptcy Fighter”
10:30 Break.
10:45 Concurrent sessions repeated.
11:30 50-Year Banker and Past Officer Luncheon,
Sa very Hotel.

12:15 Lunch.
1:30 Democratic presidential candidates forum.
2:30 “W hat’s Ahead for the Economy?” Louis
Rukeyser, economist and host of “Wall Street
4:30 Convention adjourns.
6:30 Inaugural Dinner and Show, Marriott Hotel.

S p ou ses’ Program
Monday, September 21
8:30 Opening Ceremony—General Session.
9:00 Paul McCracken—General Session.
10:00 Republican presidential candidate forum—General Session.
Skywalk tour.
11:30 Younkers luncheon & style show.
1:30 General Convention—Concurrent sessions.
2:00 Educational and craft workshops:
Pre-death/Financial Planning.
Jazzing Up Your Jewelry Box.
Kitchen Cover-ups.
Tone’s Presents: Variety Is The Spice of Life.
3:00 Concurrent sessions repeated.
8:30 “Some Enchanted Evening’’—President’s Dance.
Tuesday, September 22
7:00 Ag Breakfast.
9:00 General Convention—Concurrent sessions.
9:30 Brunch—Iowa Ballroom/Marriott Hotel—Tipper Gore.
10:45 Concurrent sessions repeated.
1:00 Democratic presidential candidate forum.
2:30 Educational and craft workshops:
Rape Prevention.
Gourmet Goodies, Gadgets & Grounds.
Hats Off To The Hat Lady.
Busy Hands/Happy Heart.
2:30 Louis Rukeyser.
4:30 Spouse program grand prize drawing.
6:30 Inaugural Dinner and Show.




• I



j A


I 4 C



ver 4V2 Million Dollars in Dividends returned
to Iowa Banks in the past ten years.

i^ S S

Iowa B ank ers In su ran ce & Services, In c.
1 0 4 E. L o cu st S tre e t
(Effective O c to b e r 1, 1987)
3 0 0 L iberty B u ild in g
D es M oines, Iow a 5 0 3 0 8 (515) 2 8 6 -4 3 0 0
Call o u r toll TREE WATS n u m b e r 1 -8 0 0 -5 3 2 -1 4 2 3

Owned by Banks in Iowa for the Benefit o f Iowa Banks
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1987


Iowa News

idents; Joel Warland, loan officer.
Davenport Bank and Trust Co.:
James K. Figge and Thomas K.
vice president and cashier; Peter B. Figge, office of the president; Rich­
Welch, senior vice president and se­ ard R. Horst and Robert G. Lenertz,
nior trust officer; Margaret E. Bill­ senior vice presidents; Michael A.
Bauer and John W. Schricker, first
ings, vice president.
vice presidents; Barry A. Richards,
vice president; David C. Howell, cor­
American National Bank: Peter S. respondent banking officer.
Hilton, correspondent banking offi­
Des Moines
cer; Craig C. Grannon and Meg GagBankers
Trust Company: John
liardo, second vice presidents.
Ruan, chairman of executive com­
Continental Bank: Robert C. mittee; John Chrystal, chairman
Vasko, senior vice president; Zed S. and CEO; Dennis R. Wood, presi­
Francis and Philip C. Adams, vice dent and COO; Thomas D. Smith,
presidents; Mary K. Nihlean and executive vice president; Larry FroJames E. Honan, Jr., second vice wick, Ben G. Eilders and Joseph J.
presidents; David U. Drake, bank­ Bustin, senior vice presidents;
ing officer; Barry L. Bobrow, bank­ Donald H. Jordahl, vice president;
ing associate; Marybeth Jones, vice Steven D. Brewer, assistant vice
president, treasury and securities.
First National Bank of Chicago:
First Interstate Bank of Des
Jack Clark and Clarence Cross, vice Moines: Robert G. Millen, president;
president; Dennis Duffy, corporate James W. Eiler, executive vice presi­
banking officer.
dent; Randy P. Steig and William V.
LaSalle National Bank: Delmar Mullins, vice presidents, Iowa divi­
Rogers, Wayne Bismark, Rudy sion; Dean A. Roth, assistant vice
Frank and Peter McGuire, vice pres­ president, investments; Joan A.

You Will See Them at the 101st
Annual Iowa Bankers Convention
HE 101 ST annual convention of
the Iowa Bankers Association
will be held September 20-22 at the
Des Moines Convention Center. Of­
ficers and representatives of larger
banks from major banking centers
in the Midwest will be attending the
Following the list of bankers plan­
ning to attend is a list of personnel
from investment, service and equip­
ment firms registered for the con­

Cedar Rapids
Merchants National Bank: Henry
Royer, chairman and president;
Robert S. DeWaay, executive vice
president; Jerry N. Trudo, Terry M.
Martin, Richard E. Retz, Dennis O.
Earhart and Robert J. Louvar, vice
presidents; Douglas R. Bass, corres­
pondent banking officer; Andy B.
Appleton, ag loan trainee.
Peoples Bank & Trust Co.: Ken­
neth A. Strother, senior vice presi­
dent; Lawrence E. McGrath, senior

to the
Iowa Bonkers Association
os it begins a second century
of outstanding service

American iïïu s t
C tSavings Danl^
The Danl^qf Opportunity

Executive Vice President
Commercial and Correspondent Bonking

Banker, September, 1987
Federal Reserve Bank of St. Louis

Member FDIC



That’s Right...

In less th a n e ig h te e n m onths w e have solved th e b o n d in g
needs for over o n e -h a lf o f th e banks in Iowa.



W e are p ro u d to b e rep rese nted in Iowa exclusively by

1-800-532-1423 or (515) 286-4344


611 Kansas Avenue
P.O. Box 1654
Topeka, Kansas 66601
Phone 1-913-234-2631

Serving the Heartland of America since 1909
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1987


Iowa News

Thompson, investm ent officer;
Brian J. Hughes and Nancy Tierney,
investment representatives; Jeff
Sims, commercial banking officer,
Iowa division; Stuart Becker, com­
mercial banking representative,
Iowa division.
Norwest Bank Des Moines, N.A.:
George F. Milligan, chairman and
CEO; H. Lynn Horak, president and
COO; John Sampson, senior vice
president; John P. Rigler, Richard
Pedersen, Larry Reding, Gary
McClimen, Kathleen M. DeLucca,
Colleen Monahan, William VanLent
and John D. Hunt, vice presidents;
Mark E. Conway, Thomas L. Quinlin, John J. Cretzmeyer and Jay
Nichols, second vice presidents;
Dorothea A. Wolfe, administrative
officer; Michael Trafton and Lyle
Hiatt, investment officers.
Valley National Bank: J. Locke
Macomber, chairman; Marvin E.
Mazie, president; Will J. Hoekman,
Verne C. Bates and William A.
Wishman, senior vice presidents;
Mark L. Hamilton, James F. MacLean and H. Peter DeRosier, vice
presidents; E. Howard Hill, director.
Kansas City
Commerce Bank of Kansas City:

Tom R. Jennings, assistant vice
president; Joe Nixon and Jim Steer,
bond officers.
United Missouri Bank of Kansas
City: J. Lyle Wells and Lawrence E.
Russell, vice chairmen; Phillip D.
Straight and Kirk W. Vaughan, ex­
ecutive vice presidents; Richard H.
Muir and Jeffrey P. Goble, vice
presidents; Mark S. Bailey, assis­
tant vice president.

First Bank Minneapolis/St. Paul:
Dewey Seneseth, Chris Wilson and
Ken Bezdicek.
First National Bank of Minneapo­
lis: Kenneth A. Wales, senior vice
president; Allen G. Highum, vice
Marquette Bank Minneapolis,
N.A.: Dick Holmes, assistant vice
president; Rob Pope, investment
First National Bank of Omaha:
Mike Foutch.
Norwest Bank Nebraska, N.A.:
Charles Undlin, president; Howard
Nielsen, vice president, financial in­
stitutions group; Robert Zaback, se-

Committed to
making your
bank stand
apart from the

Banker, September, 1987
Federal Reserve Bank of St. Louis

nior vice president/manager, finan- £
cial institutions group; Tim Tewes,
financial institutions officer.
Sioux City
First National Bank: Max J. Lar­
son, president; Gary W. Stevenson, ®
vice president.
Security National Bank: Richard
A. Waller, senior vice president; Ron
E. Kiel, correspondent banking offi- £
National Bank of Waterloo: R.
Scott Fetner, president; William J.
Rickert, Erl Schmiesing, Byron Lov- •
ing, James Freet, Willis Créés and
Curt Kyhl, senior vice presidents;
John Cunningham, Kendall B. Mes­
ser and Dale Zimmerly, vice presi­
dents; LeRoy Bell, assistant vice •
president; Dennis Thoren, assistant
director—data processing; Chuck
Yagla, data processing officer.

Investment, Equipment
and Service Firms
AGRIcareers, Inc., New Hamp­
ton, la.: Sandi Garner.
American Express, West Des ®
Moines, la.: Mark Bliss.
Bank Building Corporation, St.
Louis, Mo.: Roy J. Wingers, senior
Banking Careers Ltd., Des
Moines, la.: Jean Eden.
Banks of Iowa Computer Ser­
vices, Cedar Rapids, la.: Brian C.
Scott, president; Larry Clore, vice
president—sales; Randy Johnson,
Darrell Elkins and Anna Lee Scott,
executive account managers; Tom
Anderson, marketing executive;
John Meehan, business develop­
Bell & Howell, Waukesha, Wis.:
Gary K. Nickerson, regional sales
manager; Robert Lidgett and John up
Bailey, sales representatives.
Brandt Systems, Omaha, Neb.:
Jim Grimes, David Grimes, Herb
Duysen, Dennis Steele and Scott
Central States Health, Omaha,
Neb.: John Benson, assistant vice
president; Brenda Frey, regional
Copy Systems, Inc., Des Moines,
la.: Bill Paterson, president; Rich
Apenzeller, sales manager; Jim Binnie, Pat Logan, Tom Gardiner, Gor­
don White, Jay Daly and Kraig f
Bougher, sales representatives.

Left to right: John Oliger, Correspondent Banking Officer; Mike Bauer, First Vice President; Dave Howell, Corres­
pondent Banking Officer; Jim Perkins, Assistant Vice President; Barry Richards, Vice President.

Portrait of Achievement
Our correspondent team
will help you meet your
most important objectives.
Our state-of-the-art technology and experi­
enced team of banking professionals give you
the expertise you need to excel in every aspect
of your operations and investments. And we do
it by giving you the personal attention you de­
Watch your money grow. Our Federal
Funds investments and competitive rates on
certificates enhance your profit picture. And
our service is backed by strength and safety sec­
ond to none.
Federal Reserve Bank of St. Louis

We’ll show you results. Call us today to set
up an appointment or talk to one of our corres­
pondent officers at the Iowa Bankers Convention
September 20-22 in Des Moines. We’ll show you
how we can help you achieve all your goals.

Phone (319) 383-3429

A k / E IN P O R T B A IN K
------------ A N D T R U S T C O M P A N Y -----------MEMBER


2 0 3 W E S T T H IR D S T R E E T , D A V E N P O R T , IO W A 5 2 8 0 1 - 1 9 7 7


Iowa News

Creditor Resources, Inc., Atlanta,
Ga.: Bob Okerstrom and David Carl­
son, account representatives; Jim
Woolard, marketing manager.
Crest Microfilm Inc./Eastman
Kodak Co., Cedar Rapids, la.: David
Airy, business imaging specialist;
Brad Goulding, micro image sales
Cummins-Allison Corp., Des
Moines, la.: Ralph M. Haskins,
branch manager; Timothy S. Determan, sales representative; Michael
Emig, Allison national accounts
Data Business Equipment, Des
Moines, la.: Waldo F. Geiger, presi­
dent; Tom Kolb, marketing man­
ager; Lynn Groen, manager, compu­
ter systems division; Jim Landuyt,
Marcus Wilson and Parker Schmitz,
marketing representatives.
Evergreen Systems, Inc., Omaha,
Neb.: Ralph G. Noren, president;
Ronald K. Hill, vice president.
Federal Deposit Insurance Corpo­
ration, West Des Moines, la.: Don
Drewel, Dennis Whitlatch and Rob
Yancey, liquidation assistants,
asset marketing; Thomas Matkin,
credit manager; Stephen Post, de­
puty bank liquidation specialist;
Russ Lair, section chief, asset mar­
Financial Information Trust, Des
Moines, la.: Greg Lawler, service
coordinator; Mark Havemann, busi­
ness development manager; Susan
Fairchild, account manager; Bruce
Christensen, director, northern re­
First Interstate Information Sys­
tems of Iowa, Des Moines, la.: Rich­
ard Davis, president; Larry Glass
and Rich Bro, senior vice presidents;
Dave Akehurst, director, customer

support; Steve Turner and Walt
Astor, financial marketing officers;
Evan Branson, commercial product
Hamilton A ssociates, Des
Moines, la.: Thomas M. Hamilton,
president; David L. Hansen, divi­
sion manager.
HBE Bank Facilities, St. Louis,
Mo.: Arnold Goodman, regional
IAC Group, Des Moines, la.:
Craig Ross, state director; Kathryn
Foster, financial insurance specia­
Iowa Bankers Association, Des
Moines, la.: Marsha Raisch.
Iowa Bankers Mortgage Corp.,
Des Moines, la.: Sam E. Callahan,
president; Daniel Vessely, vice president/treasurer, and entire staff.
Iowa Bankers Insurance & Ser­
vices, Inc., Des Moines, la.: Frank
Gleeson, president.
Iowa College Aid Commission,
Des Moines, la.: Laurie A. Wolf,
director, field services; Bob Red­
man, field representative.
Iowa Transfer System, Inc., Des
Moines, la.: Dale A. Dooley, presi­
dent and CEO; James W. Jorgensen,
manager, customer service and mar­
keting; Lyanna Kline, customer ser­
vice assistant.
The Kansas Bankers Surety Co.,
Topeka, Kan.: Don Towle, president;
Dave Abendroth, senior vice presi­
Kirk Gross Company, Waterloo,
la.: Gerald L. Gross, chairman;
Robert T. Buckley, president; Rob­
ert H. Jamerson, director of archi­
McGladrey, Hendrickson & Pul­
len, Des Moines, la.: John McCune,

Œ1 i t imperial Ibouöe
Restaurant anb Hounge


c h a ir m a n w ants convenient.

T h e p r e s i d e n t w a n t s p r e s t ig io u s .
T h e office m a n a g e r w a n t s a f f o r d a b l e .
T h e s a le s m a n a g e r w a n t s a g o o d b a r .
S o u n d s lik e th e y a ll w a n t

ff it ^Imperial House
1901 1n g e r s o ll

R e s e r v a t io n s S u g g e s t e d

Banker, September, 1987
Federal Reserve Bank of St. Louis


Kevin Prust, Mike Wheeler and Paul #
Hayes, partners; Linda Cottington,
principal; Cindy Ramsell, Jack Ingle
and Tim Hansen, managers.

Midwest Marketing Consultants, #
Inc., Lenexa, Kan.: Jeff Squire, president/account director; Dick Schutze
and Dale Demoss, vice presidents/
account directors; Rich Zankel, vice
president; Jim Tingle and Kevin #
Evanowski, master photographers;
Chris Hammond, operations man­
Modern Banking Systems, Inc.,
Omaha, Neb.: M.J. Reynolds.
NCR Corporation, West Des
Moines, la.: Robert C. Lapinski, re­
gion director; Steve Kregsa, district
Office Concepts, Ltd., Waterloo,
la.: Harold W. Schoonover, presi­
dent; Ross D. Schoonover and Jerry
B. Spurgat, vice presidents; Michael
D. Mahaffey, designer, project coor- #
dinator; Tim Jones and Geoffrey
Grimes, architects.
Omaha Financial Life Insurance
Co., Panora, la.: George Foster, as­
sistant vice president; Bill McCarty, ®
general agent; Roger McCarty, mar­
keting representative; Al Thomp­
son, CPA, marketing representa­
Pioneer Hi-Bred International,
Inc., Farm Information Manage­
ment Services Division, Johnston,
la.: Tom Gray, sales manager; Bill
Alexander, area sales manager.
Safeguard Business Systems, Des
Moines, la.: Dick Bain, Ed Leistad,
Jordan Jaeger and Skip Skalinski,
distributors; Greg Bade, branch
manager; Steve Bauer, automated <§
payroll; Mike Corcoran, computer
Swords Associates, Kansas City,
Mo.: Tom C. Cannon, associate.
Unisys Corp., West Des Moines, #
la.: Jeff Williams, branch manager;
Larry D. Eilers, Ron Pieracci, John
Washburn and Mark Stuck, senior
account representatives; Glenn Ans- 0
pach, Chris Gunnare and Denise
Cowan, account representatives;
Ron Campbell and Chris Kakert,
marketing support representatives.
U.S. Check Book Co., Omaha, #
Neb.: Edward S. Batchelder, presi­
dent; John D. Finlay son, vice presi­
dent-sales manager; Glen Altfillisch, John Kohring, Thomas Potthoff, Randy Roan and Chuck Strat- #
tan, sales representatives.


Two Strong
Iowa Banks To Serve
Correspondent Banks





The National Bank
of Waterloo

Peoples Trust
and Savings Bank

The National Bank put’s its financial strength
and outstanding correspondent banking
services to work for most of the banks in
Northeast Iowa.
Our state of the art computer processing
equipment is designed to meet all your
needs and is one of the largest processing
centers in the state.
Even more important, the experienced
management team can provide advice and
banking expertise for all financial questions.
We are responsive to your needs.
Put our unmatched com bination of
experience and services to work for all your
correspondent banking needs.

Now the sam e financial strength and
services in correspondent banking are
available to banks in Southeast Iowa
through Peoples Trust and Savings Bank
of Indianola, an affiliate of Iowa National
Bankshares and the National Bank of
We offer full services including purchase
of excess funds, bond advisory, data
processing services, automated accounts
receivable billing system s and other
com plete correspondent bank services.
Working together, Iowa National
Bankshares can put over one half billion
dollars of financial strength behind your bank.
Put our financial strength, our financial
performance and our financial growth to
work for you — call any member of our
experienced team today.

Build On Our Strength

Bill Rickert
Sr Vice President


Vice President

Erling Schmiesing
Sr. Vice

James Freet
Sr. Vice

T h e N ational Bank

Leroy Bell

Charles E. Yagla

Everett Brown

Milt Hennick

Assistant Vice

Data Processing

President, Indianola

Sr. Vice President,

P eoples IkusT
and Savings Bank

100 East Park ■ Waterloo, IA 50703 ■(319) 291-5200

114 N. Howard ■Box 279 ■Indianola, IA 50125-0279
(515) 961-6241

Subsidiaries of Iowa National Bankshares

Members FDIC
Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1987


Iowa News

“Our state needs
to diversify itself”

interview with
Mahaska Investment Co.
Oskaloosa, la.

N o rthw estern B a n k e r

“ IT is critical for the future of Iowa to develop alternative employ­

ment as the agricultural revolution continues. This will have the
greatest impact on banking.”

S A THIRD generation banker, Russell S. Howard
has brought a solid background of bank manage­
ment and demonstrated community leadership to his
demanding job as president of the Iowa Bankers Asso­
ciation this past year. Mr. Howard took over the key
post as IB A leader during the annual convention in
Des Moines last September. He will conclude his
duties by presiding at the annual convention in Des
Moines this month.
Before assuming the IBA presidency, Russ Howard
had been very active in the IBA. He served as trea­
surer in 1973-74, and two terms as chairman of the as­
sociation legislative committee. He was in on the
ground floor of electronic banking development in
Iowa as a member of the Iowa-Nebraska Joint EFT
Study Team in 1974. That study resulted in Iowa’s
unique electronic funds transfer system that formally
became the Iowa Transfer System. He served as its
first president from 1975-77, continuing on the ITS
board until 1982.
With that background of association work, Russell
S. Howard decided to devote another period of time to
the important work of the Iowa Bankers Association,
first as its president-elect in 1985-86, then as president
in 1986-87. His combined years of IBA work gave him
the necessary background to set some goals for IBA,
as required of any association leader.

A Look Back
Reflecting on the rapidly passing scene of the past
12 months, Russ said: “I guess my overall assessment
of this past year is positive with the exception that in
my inaugural speech last September, I called for the
IBA to take a leadership role in developing a strategic
plan for the state that would lead us out of the eco­
nomic crisis we are in. Although considerable work has
been done and there are numerous groups working on
the state’s redevelopment, unfortunately the IBA is
not at the forefront of these efforts. From a public

Banker, September, 1987
Federal Reserve Bank of St. Louis

image standpoint alone, commercial bankers need to
impress upon everyone our desire to see our state re­
cover and that the people displaced from farming do
not leave, but find employment. Our state needs to di­
versify itself so that we do not suffer so tremendously
during future economic cycles.”
The topic of statewide economic development is a
critical one in Russ’ mind and he stressed the point
again by stating, “ I will just re-emphasize that I think
it is critical for the future of Iowa banking to be in­
volved heavily in the redevelopment of Iowa, especial­
ly to diversify our state from a single industry and to
develop alternative employment as the agricultural
revolution continues. To me, this will have the greatest
future impact on banking.”
These strong feelings are in keeping with his eco­
nomic development goal he urged consistently
throughout the past year in every speech he made.
P e rs o n a l B a c k g ro u n d

Russ Howard was born into a banking family March 5,
1931. His grandfather, Harry S. Howard, founded Mahaska
County State Bank in 1883 and served as its managing offi­
cer from opening day until his retirement in 1934. He died in
1940 at the age of 86. His son, Russell S. Howard, Sr., who
joined the bank in 1920, became managing officer in 1934.
He was named chairman and president in 1945. He retired as
president in 1969, when he was succeeded by his son, Russell
S. Howard, Jr., but continued as chairman until his death in
1978 at the age of 86.
The younger Russell Howard was graduated from Dart­
mouth College at Hanover, N.H., in 1953, then completed
graduate work at the University of Iowa. He joined the fami­
ly bank at that time, then succeeded his father as president
in 1969 and was also named chairman at the time of his
father’s death in 1978. He continues as chairman of the bank
today, as well as chairman of the holding company, Mahaska
Investment Company.

“ At First National
Bank in Sioux City, we’re
proud of the productive
relationships we’ve devel­
oped with many banks
in our area. Through these
partnerships, our staff of
professional bankers
9ockw ise
Patty Stansbury, Gary Stevenson, Phyllis Foster, Ed Den Beste,
provides our friends with
Evey Thompson, Mark Paradise, Jan Foresee, Lon Kelling.
a competitive edge
in their local marketplace with services like loan
overlines, investments, credit card services,
and data processing.
While many people refer to these banks as
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“See you at the
Iowa Bankers Convention! ”

First National Bank in Sioux City
Member FDIC • Sioux City • A 'BANKS OF IOWA’ BANK • (712) 277-1500

Stængth\5uCan BankOn.
Federal Reserve Bank of St. Louis


Iowa News

“Bankers need to impress
on everyone our desire to
see our state recover and
that farmers do not leave,
but find employment.”
Banker Volunteers Are Essential
Making the work of any association president easier
is the dedicated work of so many IB A banker volun­
teers. Recalling the countless hours spent for IBA by
fellow bankers, Russ said, “Membership involvement
seems to be improving, and attendance at various
meetings and seminars has increased by and large. All
of our committees did an excellent job of developing
their programs and seeing that they were imple­
mented. They proved again their professionalism by
their high quality committee accomplishments.“
The area where bankers devote hundreds of volun­
teer hours in every association is legislation, and IBA
is no exception. These past several years have been
difficult ones for bankers everywhere, especially in leg­
islative halls and, again, Iowa has not been an excep­
tion. Russ has devoted much time to this process dur­
ing the past year as required of the president. In doing
so, he has experienced again the agonizing truth about
the legislative process and makes this observation:
A Legislative Review
“As with most legislative issues, we seem to be
forced to take our programs in very small increments.
We were unable to get the Double Jeopardy Law com­
pletely amended to allow central filing, but we did get
some commitments from the leadership that it could
probably be accomplished this coming year. The Tort
Reform bill was a major step in potentially reducing
the cost of liability insurance for banks. The tax bill
was a major unrecognized accomplishment in that the
state would have tremendous windfall taxes from
banks if our tax laws had not been amended to tie into
the new federal law. Iowa bankers should feel very
good about the fact that our state is one of the few that
allows expanded powers that are so much sought after
on a national level.”
The federal scene, as he relates, is more of the same:
“On a national legislative basis, HR27 probably will
have very little impact on Iowa banks. However, it is
significant in that it does give us an indication of Con­
gress’ attitude toward commercial banking as a whole.
Again, I guess we have to count our accomplishments
in various small increments. Of much greater impact
on rural banking will be the secondary market for ag
real estate. With the tremendous decline in loan de­
mand for most banks in Iowa, this new outlet could
give us access to credit lines that presently are not
available to us because of our inability to make long­

“Of much greater impact
on banking (than HR27)
will be the secondary
market for ag real estate,”
Banker, September, 1987
Federal Reserve Bank of St. Louis

term, fixed-rate farm loans. We are all aware that the
Farm Credit System’s long-term plans are to become
the premier ag lender in the United States. We can ill
afford to become competitively disadvantaged at this
Staff Function and IBA Future
The cement that holds together all of the banker
volunteer involvement is the IBA staff. Each officer,
committee chairman and committee member develops
a greater understanding of and appreciation for the
role of the full-time, professional staff when they
become involved in association activities. Here is how
Russ assesses the staff role and the long-term goals of
the IBA.
“I think that the IBA has an excellent staff, one
that is very dedicated and hard working. My experi­
ence as an officer is that our board needs to take a long
look at what the IBA’s function will be in the future. I
would like to see a comprehensive long-term plan
developed that would address what banking will look
like in the future; where IBA can best serve its
members by helping us cope with the tremendous
changes that we will be going through. Whether we
want to accept it or not, banking is changing rapidly
and we small bankers need all the help we can get in
learning to cope with this environment.

“I would like to see a
comprehensive, long-term
plan developed to address
what banking will look
like in the future.”
“Perhaps a further way IBA can help its very small
bank members is to develop the educational programs
and tools needed to help the smallest banks cope with
these constant changes and thus retain the vibrancy of
our commercial banking system in rural communi­
IBA’s Outside Relationships
The IBA maintains close working relationships with
many groups. In addition to inviting the Iowa Inde­
pendent Bankers to have a representative on the IBA
board of directors, and having a decades-old close rela­
tionship with the American Bankers Association and
its membership programs, the IBA maintains close
contact with regulatory bodies—in Iowa, with regional
federal officials and with their national offices in
Washington, D.C. Russ points out that it was common
several years ago for most banks to sense an adversial
position with the federal regulators especially, and
their examiners. He has strong, positive feelings about
the subject now, as he states:
“I attribute the soundness of our Iowa banking sys­
tem to the quality of our regulatory bodies. We Iowa
bankers all recall how diligently and persistently Tom
Huston (Iowa superintendent of banking from Septem­
ber 1, 1975 to January 10, 1986) called for state-char­
tered banks to build and maintain high capital levels in
order to withstand unforeseen shocks. Because of his
persistence, Iowa banks built a capital/deposit ratio
second to none in the nation—around 10%. As a result

Community Bank Division
J a c k C la rk
Bud Cross
Keith St. P ierre
Skip D u ffy


The First National Bank of Chicago

Suite 0162 C h ic a g o , IL 60670-0162
Federal Reserve Bank of St. Louis



Iowa News
of this direct leadership by Tom, and notwithstanding
the fact that two dozen Iowa banks failed in the past
several years, many Iowa banks survived a bad loan
loss period because they had that extra capital. It is
now recognized by federal regulators and others that
Iowa banking withstood the devastatingly bad farm
economy of the past few years because of that high
capital ratio he espoused.
“By comparison, banks in Texas were allowed to
‘wheel and deal’ and they are now suffering the conse­
quences to a greater degree than Iowa did.
“Not only have both the FDIC and the OCC been
rigorous in their enforcement in pursuit of the safety
and soundness of our industry, but they now have a
constructive approach aimed at helping banks improve
their overall quality. I t ’s refreshing that all of our
regulators are doing more now to maintain integrity
and professionalism not only in their own staffs but

within our industry.”

The agricultural economy has not been kind to farm­
ers, their community business and bankers the past
several years. The role of the IB A and other state #
banker associations in the midwest became complex in
that time—new legislative efforts and new types of
programs were called for, all with tighter budget con­
straints that reflected the belt-tightening at all levels
of the midwest economy. Leading the IBA through #
what, hopefully, may be the last of those “down
economy” years has been difficult for Russ Howard
and his fellow presidents of neighboring state associa­
tions. But, with the help of many dedicated, volunteer
bankers and a responsive IBA staff, he has given his •
leadership to help launch IBA into its second century
of service to its industry and the people of Iowa.

Fetners Donate Land for Youth Camp
HANKS to the family of R. Scott
Fetner, president and CEO of
the National Bank of Waterloo, the
Waterloo Boys-Girls Club will have
a new camp.
Mr. Fetner and his wife Joann
have donated 88 acres in Fayette
County as the site for an educational
camp. The largely underprivileged
urban youth of the club will use the
camp not only for outdoor enjoy­
ment but also to develop their com­
munications skills. Camp activities
will emphasize development of read­
ing, writing, speaking and listening
The camp will consist of a lodge,
three tent sites and recreational
areas. Cost for the project will be
about $ 100,000 , and a major gift by
the Ray Sulentic family of Waterloo
is among funds already raised. The


lodge should be ready for use this
Meanwhile, Mr. Fetner was re­
cently selected to receive the “Gov­
ernor’s Award” for outstanding
volunteer service to the state of
Iowa. He was presented with the
award by Gov. Branstad at a cere­
mony in Cedar Rapids on May 29.
Mr. Fetner had recently made a
humanitarian trip to Honduras with
the Iowa National Guard Medical
Unit, and regularly supports the ef­
forts of the Guard.

Kanawha Bank Closed
Farmers State Bank of Kanawha
was closed July 30, and reopened as
a branch of First National Bank of
Clarion. “Mismanagement of the
loan portfolio and poor loan selec­

tion” was cited by Banking Superintendent William Bernau as cause of ®
the bank’s failure.
It was the fifth Iowa bank to fail
this year, and brought nationwide
closings to 106, compared with 138
at this time last year.
First National paid a premium of
$226,200 to buy Farmers State. The
Clarion bank will assume over $4.4
million in assets, while the FDIC ^
will .take over the bank’s loans,
totalling roughly $11 million. The
FDIC will give the bank $ 10.2 mil­
The bank failure occurred while ^
Farmers State president James
Mallen was serving a 60-day sentance in Leavenworth, Kan. for mak­
ing false statements to the FDIC.
The charges related to more than q
$400,000 in loans the bank made in
1981 and 1982 to four men who, like
Mr. Mallen, had stakes in a limited
partnership. He successfully fought
an attempt by the FDIC to suspend q
him from the bank following the in­
dictment last December, but he was
ordered removed shortly after the

Retired in Grinned

DISPLAYING plaques recognizing their contributions to the Waterloo Boys-Girls Club are,
from left, Scott and Joann Fetner and Anne and Ray Sulentic.

Banker, September, 1987
Federal Reserve Bank of St. Louis

Helen Hargrave, vice president
and assistant trust officer at Grinnell State Bank, has retired after 60
years with the bank. During her •
career, Mrs. Hargrave worked in all
capacities and has been actively in­
volved with the training of many
employees. Her most recent respon­
sibilities have included trust, real •
estate loan processing operations
and personnel.
Mrs. Hargrave has been named
honorary secretary of the bank’s
board of directors in recognition of •
her many years of service.

After attending the Rotary Inter­
national convention in Munich, the
Talens visited other western Europe
nations. In the course of that tour,
they visited Dieter Krings, Mayor of
Wallmerod, West Germany, and his
wife, Ingabord, who have traveled
extensively in this country, includ­
ing several visits to Northfield.
They also flew to Switzerland and
Denmark, with one of their more
harrowing, exciting instrum ent
landings taking place in Denmark.
They also visited Czechoslovakia,
Poland and Hungary, but took a
commercial airliner to those nations.
During their stay in Denmark, the
Talens visited another old friend,
Arne Nielsen, who is president of the
$65 million asset Hadsten Bank in
Hadsten, Denmark. Bill says of his
friend, Arne, “That guy is really en­
thusiastic! He runs an independent
bank that makes over $1 million a
year in net profit. He really outdis­
tances the branch of one of the giant
banks in Denmark and has a real
message for independent bankers.”
On the return trip, after flying
12,000 miles and 58 air hours from
the airport at Fairbault, Minn., near
their home in Northfield, Minn., the
Talens decided to conclude their per­
sonal flying jaunt at Reykjavik, Ice­
land, and they flew the rest of the
way home to the Minneapolis air­
port on a commercial jet. A retired
Air Force Colonel at the U.S. Air
Base in Reykjavik flew their plane
back to Minnesota for them.
Bill Talen is involved with bank­
ing in the states of Minnesota, Iowa
and Wisconsin. He is owner, chair­
man and president of the $45 million
assets Farmers Savings Bank in
Traer, la.; owner, chairman and
president of the $20 million assets
First State Bank in Edgerton, Wis.,
and has family banking interests in
both Rochester, Minn., and Menomi­
nee, Wis.
Iowa News

Caroline Talen wore the special survival suit necessary in case of ditching into the frigid
waters of the North Atlantic.

* Bill Talen F lies Own Plane A cro ss
A tlantic to Munich Rotary M eeting

| UST 60 years after Charles LindW bergh made his historic, non­
stop 3,600 mile solo flight in 33 V2
hours from New York City to Le
^ Bourget Field in Paris, France on
May 20-21 , 1927, banker William
Talen pointed his twin-engine Cess­
na Skymaster from Minnesota to
Munich, Germany, this past June to
0 attend the Rotary Club Interna­
tional convention.
Bill Talen, who was accompanied
by his wife, Caroline, flew the same
Atlantic Ocean as the famous Lind0 bergh, but by a safer, more extended
route than the noted aviation pio­
neer. Bill flew in a group with six
other planes, took six days and
made 19 landings on the four-week,
^ round-trip jaunt, 11 of them instru­
ment landings in difficult weather.
But, it was a feat few private pilots
have achieved.
The Great Circle Route that took
0 the small group of private planes
across northern Canada, Greenland,
Iceland, the Faroe Islands, Scot­
land, then on across England and to
the continent, is a relatively lonely
0 one. The route generally sees only
four or five airplanes a day during
the good flying months that last
from May 1 to November 1, and
most of those planes are being fer£ ried abroad by professional pilots
for delivery to European buyers.
“But the scenery was fantastic,”
Bill enthused, “especially because of
the continuous summer daylight in
% that northern region, and it certain­
ly added to our sense of security to
Federal Reserve Bank of St. Louis

be able to see what we were flying
For further security on that part
of the trip, Bill and Caroline donned
survival suits in the unlikely event
of having to ditch in the North At­
lantic or the North Sea.
A highlight of the trip for WWII
veteran Bill Talen came when they
concluded a two-day stay on the
island of Jersey in the English Chan­
nel. On June 6 , the day of takeoff
from Jersey, Bill’s climbing pattern
took him directly over Omaha Beach
where Allied forces landed just 43
years earlier on June 6 , 1944, to
begin the invasion of Europe in

Changes Told in Dubuque

bank in Traer displays this model of his
Cessna Skymaster.

At First National Bank of Dubu­
que, William H. Callahan has been
appointed personal banking officer.
He previously worked at Mera Bank
and Associates Financial Services
Corporation in Phoenix, Ariz.
Peggy Hudson has joined the
bank as marketing assistant. She
previously worked as production/
promotion manager at KDUB and in
advertising at H artig’s Drug in
Northwestern Banker, September, 1987


Iowa News

Group Chairmen Report Area Conditions
ROUP chairmen of the Iowa
Bankers Association have sub­
mitted the following reports on farm
and business conditions in their
Group 1
James Miller, Pioneer Valley Sav­
ings Bank, Sergeant Bluff: When
asked to com­
ment about the
current and fu­
ture outlook of
agriculture and
business condi­
tions of Group 1,
I devised a sur­
vey th a t was
m ailed to a
banker in each of
the counties in
Group 1. This report is a consolida­
tion of those surveys and the
thoughts of other bankers tele­
phoned for additional input.
The most dramatic statements
concerned the increase in land
values. All respondents were of the
opinion that land prices had stabi­
lized and that prices were up. Cur­
rent prices quoted ranged from


$530.00 per acre for rather steep hil­
ly unimproved farms to $ 1, 100.00
per acre for good production land.
Most buyers are farmers who are
paying the highest prices. Investors
with local ties are also buying. The
speculator seems to be absent from
the market. Some respondents indi­
cated that inventories of land for
sale are diminishing rapidly; how­
ever, few believe that land prices
will accelerate in the near future
because of the relationship between
net return and the farm program.
Cattle and hogs are making good
money which in turn has fostered
some expansion. It appears that pro­
ducers are utilizing existing facili­
ties by retaining gilts. With the high
cost of feeder cattle, replacement
has slowed considerably even with
the lower cost of grain. The profits
from livestock has helped many pro­
ducers pay off old debt which in turn
improves the attitude of their bank­
Group 1 respondents expect one
of the best crops ever from corn and
soybeans. Adjectives such as very
good, excellent and outstanding

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Banker, September, 1987
Federal Reserve Bank of St. Louis

were used to describe prospective q
crop yields. So far the crop year has
been almost problem free, except for
some spotty hail damage. Two bank­
ers expect some storage problems.
Others feel that because of PIK ade- q
quate storage is available.
When asked about the effect of
payments from government pro­
grams, all bankers responded that
loan demand was down. Borrowers £
have been able to pay current ex­
penses from payments made by the
farm program. What will happen as
government payments taper off?
Some respondents felt that loan de- £
mand would pick up. One was philo­
sophical and said, “We will face that
when the time comes and roll with
the punches.”
The general economy of the 0
Group 1 area has improved particu­
larly in the agriculture area. Many
small businesses are struggling, but
are improved over a year ago. The
outlook then is good but with some #
pessimism. This is reflected in one
banker’s response: “Government
withdrawal of farm price supports
will trigger another major adjust­
ment in the farm economy.”

Group 2
Joe E. Hutchinson, Union State q
Bank, Rockwell City: (This report
was prepared by
U nion
S ta te
Bank’s ag repre­
sentative, Rich­
ard R. Bahls.)
Economic con­
ditions in the
Group 2 area
have been mixed.
While the agri­
cultural sector
has experienced
a healthy rebound compared to their
depressed condition 2 years ago, the £
business community continues to
Farmers generally had a profit­
able year due to excellent crop
yields, good livestock prices and low £
feed costs, and the income stability
provided by the Farm Program.
However, most farmers have used
these profits to make an overdue re­
duction in their intermediate and •
long-term debts rather than to
spend it in the small-town communi­
ty. Some farmers have made some
replacements or additions to their
line of machinery that may have #
been overdue, but very little new

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S e e a S p e c ia lis t.
Federal Reserve Bank of St. Louis

Iowa News
machinery was purchased. The
reduction in debt and a more costconscious attitude has laid the foun­
dation for further recovery in the
farming sector.
The larger shopping centers have
experienced a moderate increase in
business, but the businesses in the
small-town majority of our area
have not seen this increase. Con­
sumers from rural areas seem to
make an outing out of a shopping
trip to the larger shopping centers.
A few shops with the higher debt
loads have closed, and a few store
owners have closed their stores in
favor of an earlier retirement or a
better paying job elsewhere.
If the small-town stores could
coax some of the local consumers
back from the larger shopping cen­
ters, they may be able to begin mak­
ing some progress. Disposable in­
come in the area should improve
slightly as the area farmers are look­
ing forward to another excellent
corn and soybean harvest. Profits in
the livestock industry have also
been the best in a few years and
should continue for at least a few
more months. However, without a
reversal in the shopping center
trend, small-town stores and more
highly leveraged shops will continue
to close.
As far as the farming community
is concerned, most of the highly
leveraged farmers should again be
able to make their scheduled pay­
ments while the farmers with less
debt could again make advance pay­

ments or use the extra cash to
operate on next year. Farmers with
very little debt and those with
money in CD’s, as well as investors
convinced that land prices have hit
bottom, have been responsible for
slightly firmer land prices. Top
farmland has been selling from
$1200 to $1350 per acre. Real estate
brokers say that they hardly have
time to advertise a farm listing
before an offer is made on a newly
listed property. More stable land
prices and the farm income stability
provided by the Farm Program has
also led to cash rental rates level­
ing off in the $75 to $85 per acre
range for the better land. However,
if the farm income supports pro­
vided by the Farm Program were
substantially reduced, I would look
for some renewed weakness in land
prices and cash rental rates.
With about four weeks to go
before harvest begins, yield pros­
pects for corn appear to be 10 to
15% better than 1986 yields as
many farms with the better land will
average in the 155 to 165 bu. per
acre range. Soybean yields may be
held back by spotty stands this
year, but excellent growing condi­
tions has allowed the plants to set a
good number of pods and we have
plenty of moisture available to fill
those pods. Yields should be about
as good as last year’s excellent
yields with the better farms averag­
ing in the 50 bu. per acre range.
The swine breeding herd in the
area may have seen a small increase


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Banker, September, 1987
Federal Reserve Bank of St. Louis

(perhaps around 5%) in the past 12
months, with most of the increase
coming in the custom hog feeding
activity. With talk of lower hog
prices in the next 12 months, expan­
sion in the breeding herd will pro­
bably be minimal. The number of
cattle feeders has increased as a
result of the desire to feed the hay
harvested from the set-aside acres.
However, the total number of cattle
on feed in our area has probably not
increased that much because several
of the more established cattle feed­
ers have resisted the higher replace­
ment prices being paid for feeder
cattle in the past few months.
A few loans mainly for used
equipment were made this past year,
but most cash flows would not allow
term loan payments of any major
significance. Overall annual operat­
ing debt was down about 20 % as a
result of the reduced acres and the
advance government payments that
farmers used to cover part of their
operating expenses or debts. Some
banks offset this reduced loan de­
mand by accepting new FmHA
Subordination Loan customers that
came in as a result of the cut in
FmHA direct loan funds.

Group 4
James P. Lage, Citizens State
Bank, Postville: We must assess the
agricultural and
business condi­
tions of our area
with renewed op­
timism for sev­
eral reasons. In
v is itin g w ith
b a n k ers from
Group 4, I found
the morale im­
proved and their
attitudes better.
Does this mean that economic condi­
tions have improved drastically?
No, this means that we have wit­
nessed some positive changes dur­
ing the past year to compensate for
the reversals we had been observing.
Livestock prices have contributed
significantly to the positive changes
we are experiencing. Hogs, during
the past year, have once again
become “mortgage burners.” The
hog/corn ratio is presently at one of
the best levels that I can ever recall.
The fed cattle market has been pro­
fitable during most of the past year.
As a banker, I feel the urgency of
contracting or hedging any replace­
ment feeder cattle this fall. Because

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Iowa News
of the fat cattle market and the sup­
ply and demand for feeder cattle, the
replacements appear too expensive
to finance without a hedge or con­
tract. The well-managed, efficient
dairymen of our area continue to
generate profitable operations, even
with the government intervention.
Most of the crops in Northeast
Iowa appear to have the potential
for record yields. However, we have
some localized areas in this eight
county area that are suffering from
inadequate moisture and, conse­
quently, reducing crop yields. Crop
prices appear below cost of produc­
tion. Government payments have
subsidized these enterprises and
continue to show support to our
grain farmers. Without the pro­
gram, crop production loans would
certainly be in jeopardy. Most of the
crops in this area are maturing
ahead of schedule and with the con­
tinuation of good weather condi­
tions, should create an early har­
vest. Storage facilities appear very
limited for the crop production of
our area.
Land values in the area have sta­
bilized during the past year. Good,
productive land is attractive to buy­
ers and commanding prices above
the levels of the past couple of years.
In some areas, prices are showing a
10 % increase from the low side of
The agricultural economy does in­
deed create an impact on the main
street businesses of Northeast Iowa.
Main street businesses are adjust­
ing inventories, collecting receiv­
ables and operating more efficient­
ly—the depressed ag economy cer­
tainly forced these businessmen to
be more competitive and better enterpreneurs. The increases in live­
stock prices have created a reduc­

tion in loan volume in most of the
area banks. It appears that our
customers are paying off their in­
debtedness and are reluctant to
create new debts for capital im­
Agriculture is and will remain the
lifeblood of our communities. The
positive livestock prices, the pros­
pects for an excellent crop, and the
more positive attitude of main street
businessmen, including bankers,
have all helped to impart a much
more optimistic economic attitude
in our area. We hope it continues.

ings about the continuance of this f
program are strongly in favor, and
when asked about the effects of the
declining support provided by the
program, most felt the scheduled de­
creases were manageable but a dras- £
tic cut in support prices would be
disastrous. One observer stated
there is “a long ways between the
$1.43 old crop price and $2.50 pro­
duction costs.” A few area bankers %
thought the continual reduction in
crop acres would affect crop prices,
but a couple dissenters said world
trade and set asides still would not
make corn growing profitable with- #
out government subsidies.
Group 5
The most enjoyable question in
Michael Guttau, Treynor State my interviews of area bankers ad­
Bank, Treynor: Moisture and grow­ dressed attitudes and local economic
ing conditions
conditions. All bankers reported a #
have been re­
very positive improvement in com­
ported good to
munity (and banker) attitude. Sev­
eral locations could report new in­
throughout the
dustry, plant expansions, hospital
growing season
expansions, research facilities, etc. •
across S o u th ­
Specifically related to agriculture,
west Iowa. Crop
one machinery dealer reported he
m aturities are
was having his best year ever.
g en erally one
Again and again the prevailing at­
and a half to two
titude that came through was “we •
weeks ahead of
can make this work.” The positive
schedule with an early harvest and spirit and concern for the communi­
exceptional yields expected.
ty is still present in our area’s com­
Land sales throughout the area munity banks.
have been slow. Most areas report at
least stable land sales prices with a
Group 6
few areas quoting land that was in
Jim Schipper, American State
the $600-$650 range last year, now Bank, Osceola: Many banks in
selling for $150-$250/acre more. Southern Iowa
Marginal land continues at lower are now begin­
values with no recovery.
ning to realize
When area bankers were asked some re s u lts
about the cash flow generated by from the severe
farm program payments, comments adjustments and
included: “keeping us going,” “our c h an g e s th a t
salvation,” and “like a transfusion have occurred
when you’re dying.” Obviously feel­ over the past
few years. Al­
though some of
Welcome To The I BA Convention
these results are
In banking, getting the right position and advancing
not the most positive, we are begin­
one’s professional career is a very im portant endeavor.
ning to notice some very encourag­
At MIDWEST PERSONNEL, we have the professional
ing signs of better opportunities in
know-how and the experience to give you the edge.
the future.
Progressive bankers pay our fee to hire the RIGHT
person they need.
Many banks have found ways to
reduce overhead and generate addi­
•Professional, Confidential Service
tional non-interest income, and, at
• ‘ Friendly and Reliable Assistance
the same time, have taken steps to
•••C om petitive Fees-Employer Paid
reduce the risk of continuing loan #
losses. Consequently, many banks
Banking Specialist
are beginning to enjoy significant
improvement in net earnings, in
spite of increased competition for
New Hampton, IA 50659
deposits and soft demand for quality #


Banker, September, 1987
Federal Reserve Bank of St. Louis

! Over 50 years of
. banking experience
. at your fingertips.
Just pick up the phone and call First Interstate Bank. You’ll
connect with the experienced, professional correspondent
banking services that Iowa banks have come to depend on.
And you’ll get results — results that translate into a strong
bottom line.
For correspondent banking, choose the bank with over 50
years of experience — First Interstate Bank. We’re setting
the pace.
Randy Steig
Vice President and Manager
(515) 245-7251
Randy has 11 years experience
as a bank examiner including
responsibility as assistant
superintendent. In addition, he
served as vice president and
executive director of the Iowa
Banker’s Association.

Stuart Becker
Commercial Banking
(515) 245-7191
Stuart has 3 years
experience in the
correspondent and
commercial/corporate areas.

Ken Danilson
Vice President
(515) 245-7148

Bill Mullins
Vice President
(515) 245-7157
Bill has seven years experience
as a bank examiner. For the past
four years, he has effectively
served Iowa banks’ correspondent
needs offered through First
Interstate Bank.

For 15 years, Ken has been
intensely Involved with
agriculture-related banking,
including 11 years managing a
county seat bank ag department
and four years managing our
agriculture production and farm
real estate lending service.

Jeff Sims
Commercial Banking Officer
(515) 245-7262
Jeff has spent 3/2 years as a
bank examiner and most recently,
2 years in loan review with First
InterstatgfGf lowa< Inc.

Lisa Ver Mulm
Administrative Assistant

(515) 245-7173
Lisa has intern experience in
banking. Her background in this
area will prove valuable in
answering your questions.
Federal Reserve Bank of St. Louis


Iowa News

Agricultural credit seems to have
established some stability, largely
as a result of government payments
from the feed grain program and the
conservation reserve program. Vir­
tually all grain producers are partici­
pating in the set aside program,
even those farmers who have histori­
cally not participated. The CRP has
been used extensively in Southern
Iowa, many counties have reached
the 25% of eligible acres enrolled in
the program with most bids near
Adding to the improvement in the
Southern Iowa economy are the
prospects of another good crop this
year. We are experiencing the third
consecutive year of excellent grow­
ing conditions, hampered only by
three weeks of extreme hot, dry
weather in late July.
Continuing favorable livestock
prices are also giving support to rea­
sonable levels of net farm income.
Feeder cattle raised locally have
been selling $10 to $15/cwt higher
than a year ago. Hog prices have
also remained favorable.
The banks in and around Des
Moines also are experiencing im­
provement from a year ago, with
some banks reporting record earn­
ings for the first six month period.
The Des Moines business activity is
continuing at a healthy pace, caus­
ing extensive construction activity,
both for residential and commercial
purposes. There has also been a sig­
nificant amount of real estate loan

are being received sooner than in-^
come would be realized from sale of
crops, has made a sizeable impact on
the borrowing needs of farmers.
Loan to deposit ratios are down
from normal levels for most country^
banks and the lack of loan demand
has also put downward pressure on
interest margins. Many farm opera­
tors have improved their financial
position because of farm program ^
payments and improved earnings.
Net profit for the grain farmer is
almost entirely dependent on the
Group 7
Arnold Schultz, Grundy National government farm program. Manage­
Bank, Grundy Center: The attitude ment practices that affect the b o t-^
tom line have also changed because
of most farmers
of the farm economic crises. For ex­
and agri busi­
ample, we are seeing better controls
nesses in our
over crop input expenses and more
area can best be
pencil pushing to determine affor- 0
described with
dable cash rent payments.
th e
w ords
Livestock operators are also bene­
“guarded opti­
fiting from the government pro­
m is m .” L a s t
gram, in that they get the double
year was a good
benefit of realizing a high price for 0
year for many
their grain by using the government
farm families,
loan program and in addition have
especially those
without debt levels. 1987 has the po­ the advantage of cheap feed for their
tential to be another good year. livestock feeding program. In our
However, many of the fundamental area, there is more interest in feed- #
problems facing the rural economy ing cattle in 1987 when compared to
are still unresolved and there seems recent years. Feeder costs have risen
to be some skepticism concerning dramatically but with cheap feed in­
the future, in that the profitability puts, projected breakeven levels
now being enjoyed is primarily due have been mostly in the $58 to $62 #
to the government farm program. range, which has allowed feeders to
The amount of government farm buy put options to eliminate the
program payments coupled with the downside market risk in feeding.
Farm land values have rebounded
fact that some of these payments
10 to 15% from the lows of 1986. #
Volume of land sales increased dur­
ing the late winter and early spring
and there appears to be continued
interest in the purchase of good
refinancing this year as a result of
declining interest rates. The high
level of real estate loan activity has
generated excellent fee income for
those banks that have been active in
real estate lending. Commercial
lending has been unusually competative in recent months, limiting
profitability. Overall, however, the
Des Moines banking market is
strong, with prospects of good pro­
fitability in the future.


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10607 Bondesson Circle, Omaha, N E 68134 1-800-228-2581
Banker, September, 1987
Federal Reserve Bank of St. Louis

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Iowa News

^ farm land by those farm operators
who are in excellent financial condi­
tion. This may present an opportuni­
ty for some that are still struggling
with excessive debt to now sell land
^ to reduce debt and ultimately be a
survivor of the ag recession.
Main street businesses are also
seeing improvement but it is a far
cry from the “go go” days of the late
D seventies and early eighties. Con­
trolling inventories, overhead ex­
penses, and debt levels seem to be
the main ingredients for success for
the main street businessman.
0 In summary, the optimism of the
current ag recovery is clouded by
the uncertainty of trying to plan 3-5
years in the future without knowing
the details of the future farm pro41 gram. The fundamentals of many
problems related to agriculture are
still unresolved. As bankers, we still
see those with excessive debt strug­
gling to survive while his neighbor is
0 experiencing an excellent return on
his investment. But the most plea­
sant change of the past year has
been the marked improvement in at­
titudes. On most days, it is again a
% pleasant experience to be recognized
as a country banker.

Group 8
J. Robert Bunn, Community State
^ Bank, Clarence: The extremely hot,
dry weather has
taken us from
what we thought
^ of in April as a
turn upwards to
now a very nega­
tive outlook for
ag ricu ltu re in
0 our Group 8 . As
we took financial
statements early
in the year, we
were very encouraged by the im0 provement in most of our borrowers’
financial picture. We realized this
was true because of the government
program, but needless to say, it put
money in the bank. Then as we
^ planted the crop so early with plenty
of sub moisture, it looked like
another great year, with hog and
cattle prices being very good and
prospects for livestock prices to con41 tinue high most of 1987. The grains
came up great in May and by June
we thought we had really turned the
corner. Then came July with 90 and
100 degree weather for far too many
0 days, and the crop deteriorated by
the hour. So with the short crop,
Federal Reserve Bank of St. Louis


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use to describe how they feel toward Valley
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Valley Bank is experiencing substantial growth
... in deposits,, and
... in earnings.
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Main Office-Sixth and Walnut

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call 1-800-622-7262

Northwestern Banker, September, 1987


Iowa News

most Group 8 banks are going to be
hurt, some very bad. This will affect
the business people as much as the
farmers, so all in all things do not
look too bright right now. Even
before the short crop there were still
farmers with too much debt to ser­
vice, and there will continue to be
many more problem lines facing us
all. It will take several more years
before we can even begin to get back
to the “good old days” and we will
never see those days if the govern­
ment takes away the farm program
that we have today. Sorry to be so
pessimistic, but it is hard to be

Group 11
Daniel Doyle, Wellman Savings
Bank, Wellman: It appears that the
b u s in e s s and
agricultural out­
look for th e
Group 11 area is
improving. How­
ever, we have a
long way to go
before we see the
improvement we
all would like.
A g ric u ltu ra l
areas show a bet­
ter level of profitability than do
many non-ag commercial rural busi­
nesses. Although cash flow has in­
creased dramatically, primarily due
to better livestock prices as well as
government dollars, this has not
helped small town rural businesses
enough to make them very profit­
able. If the ag economy continues on
its present course, better cash flow
will eventually revitalize our rural
areas. However, with the number of
farmers continuing to fall, the re­
covery will be limited until agricul­
ture begins to attract new people.
Farmland prices in our area are
approaching their low and some
prices have actually rebounded. Pro­
perty can, in some instances, be pur­
chased and paid for from positive
cash flow. More land is moving, but
the cloud on the horizon here is the
potential reduction in farm support
payments which I think is inevitable
given the present federal budget
In the more industrial areas of
Group 11, reports are that the eco­
nomy is greatly improved, particu­
larly in manufacturing, with steady
employment and even some new in­
In summary, it appears condiNorthwestern
Banker, September, 1987
Federal Reserve Bank of St. Louis

tions in Group 11 are improving,
both in the agricultural and commer­
cial areas. Bank profits are expected
to increase as we swallow our
charge-offs and go back to profit­
ability. However, we still need to
deal with a monumental federal bud­
get problem that threatens all of us
in Group 11 and around the country.

Group 12
James L. Cuttell, George State
Bank, George: Outlook from Group
1 2 , w hich is
Northwest Iowa,
is all around
p r e tty good.
R a in fa ll,
a l­
th o u g h som e­
what spotty, has
been adequate
and in certain
a re a s peo pie
have had those
two to three inch
Hog and cattle customers have
smiled all spring and summer as
they bring in checks representing a
decent return for their labor and in­
vestm ent. Feeder prices have
jumped as farmers have harvested
their set-aside acres and now are
chomping at the bit to put some­
thing in the yard. Seventy-five cent
650 pound heifers are somewhat
difficult to put the pencil to and
make work. I question the rationale
for the harvest of set-aside when the
whole idea is to take corn acres out
of production. I doubt if there will be
much corn chopped this fall.
Corn and bean yields appear good,
although not as good as last year.
Two weeks of extreme temperatures
have hurt the yields and the con­
tinued heat will cause further drop
in yield and test weight. Customers
are again talking bin construction
and PIK premiums are at 110%.
Land prices appear to have bot­
tomed out about a year ago in the
$1,000 per acre range and have re­
turned to the $1,200/$ 1,300 area. A
large portion of the land sales have
been to cash buyers. These buyers
like the land investment compared
to the 6 % Bank Certificate. Any fur­
ther price increase would now de­
pend on the government farm pro­
gram. Loan demand has remained
weak and there is no indication of
any increase in demand. Main street
merchants continue to struggle for

(Continued from page 6 )
it, then tore off the form, handed it
to the teller and said, “Put that ini
Ben’s account.” With that, he mere­
ly turned to me, put his arm around
my shoulder and said, “ I t ’s all taken
care of. I really meant it when I told
you to come see me if you need help, i
Good luck with your purchase.” We
shook hands and he returned to his
As I walked out the door I
glanced up at that lobby clock again i
and it said 8:54 a.m. Those nine
minutes changed my life because a
banker like Ed Buckley believed in
me and trusted me. Because he
helped me at a critical juncture in^
my business life, I was able to com­
plete the original partnership con­
tract and then, some years later, to
acquire total ownership of our firm.
The last time I saw Ed was at din- *
ner one evening about two years
ago. On the spur of the moment I
went over to his table and recalled
the above story, which pleased him.
Ed was in poor health and it was to
be the last time I ever saw him.
Ed Buckley died a couple of
months ago while I was away cover­
ing banker conventions and I didn’t
know about it until a friend told me
later of his death.
I cried a little, because I had lost a
good friend who cared about me.
But, I was happy as well, for I knew
that God who gives each of us spe­
cial talents and asks only that we
use them properly, must have been
very pleased when he welcomed
home Ed Buckley, who had used his (
talents so wisely and compas­
sionately to assist others.
All I can wish for you, our read­
ers, is that you may share the same
joy and sense of fulfillment that be- (
longed to Frank McDermott, Dan
Monen and Ed Buckley. I thank
them now for what they did for my
parents, my family and me. I hope
that each of you will have fond ,
memories of the times you have tru­
ly helped people in your communi­
ties in time of critical need.
Ben Haller, Jr., Publisher

Lloyd Johnson (left), chmn., pres. & CEO of Norwest Corporation, Minneapolis, was wel­
comed to Des Moines Norwest meeting by George F. Milligan, chmn. & CEO of Norwest

Bank Des Moines.

« Norwest Board Meets in Des Moines
KEEPING with their tradition
Iin Nofcities
holding meetings periodically
outside of Minneapolis, the
D Norwest Corporation board of direc­
tors traveled to Des Moines for a Ju ­
ly 28 meeting. Lloyd P. Johnson,
chairman, president and CEO of the
corporation presided at the meeting.
Chief executives of Norwest affili­
ates in Des Moines co-hosted a re­
ception and dinner party at Wakonda Country Club for the visiting
Norwest Corporation directors,
| | presidents of Norwest affiliates in
Iowa, directors of Norwest Bank
Des Moines, and a number of area
civic and business leaders. George
F. Milligan, chairman and CEO of
f | Norwest Bank of Des Moines, N.A.,
and regional president for Iowa, ex­
tended a welcome to the visiting
board and other guests on behalf of
the Des Moines executives, who in# eluded H. Lynn Horak, president
and COO of Norwest Bank Des
Moines; Richard J. Brinkman, presi­
dent of Norwest Financial, Inc., and
Robert V. Gorsche, president of Nor# west Mortgage, Inc.
Mr. Johnson addressed the group
briefly before the dinner meeting
was adjourned so the Minneapolis
contingent could board planes for
® home. Mr. Johnson, a native of Min­
nesota and a graduate of Carleton
College there, returned from a west
coast bank executive post to head
Norwest in March, 1985. He recalled
^ that Norwest Corporation had its
roots in Iowa when Northwestern
Bancorporation was formed in 1929
and the First National Bank of
Mason City was one of the first
^ three banks forming the holding
company. Des Moines and Sioux
Federal Reserve Bank of St. Louis

City banks were incorporated a few
years later. Norwest now has 50
banking and financial service offices
in Iowa, he noted, including the
state’s largest bank and largest
holding company.
Regarding future expansion, Mr.
Johnson said, “We’re awaiting ap­
proval for our purchase of Toy Na­
tional Bank of Sioux City. While we
have good coverage in Iowa now, it
is no secret there are some places in
which we’d like to acquire a position.
There have been some bad times in
Iowa, and typically, Iowans have
not taken them sitting down, but are
moving ahead. I refer to the biotech­
nology leadership at Iowa State Uni­
versity, the development of Des
Moines, including a $100 million in­
vestment in downtown. Des Moines
is becoming a regional pool of data
card specialists. Amoco is moving
its entire credit card operation here,
creating 200 more jobs.”
Mr. Johnson continued, “But,
there is one area that is not up-todate and that is in bank structure for
branch banking. This enables custo­
mers to deposit their funds any­
where, then move anywhere to use
them; also, to do all their lending
under one roof and at one time. We
wouldn’t have to file 11 SEC reports
either, a savings we could pass
along. I t ’s not fair. There are so
many advantages to having all our
banks consolidated into one. We’ll
be back next year and try it.”
Mr. Johnson recalled that 1986
was Norwest’s second highest earn­
ings year in history. “We took a
$126 million loss in the first six
months of 1987,” he reported, “after
setting aside reserves against

Iowa News
foreign loan losses of $240 million, a
decision that met with very strong
approval. Excluding that action,
earnings were up, and strong earn­
ings will reduce that loss to $30
million by year-end.”
He added that “non-performing
loans in the domestic economy are
dropping rapidly.”
In closing, Mr. Johnson stated,
“Like many other corporations,
we’ve had to revise and change to re­
main successful. We have consoli­
dated our back room operations for
efficiency, and reduced layers of
management between the customer
and our top people. I ’m proud of our
9,000 employees in the banking
group—proud of them for the way
they’ve adapted as we’ve become
more market driven and market
In total, throughout the Norwest
system, Mr. Johnson said the corpo­
ration has 900 locations in 44 states.


Banks of Iowa Will
Purchase Ames Bank
Banks of Iowa, Inc. and Great
Midwest Financial, the parent com­
pany of United Bank and Trust,
Ames, announced August 4 that
they have agreed in principle that
the bank will become affiliated with
Banks of Iowa. Completion of the
transaction is subject to approval of
a definitive agreement by the board
of directors of both companies and
to approvals by various regulatory
At June 30, 1987, United Bank
and Trust had assets of $139 mil­
lion, loans of $72 million, deposits of
$121 million and capital of $13 mil­
lion. The bank is profitable, well
capitalized and serves the prosper­
ous central Iowa community of
Ames which includes Iowa State
University. Banks of Iowa, Inc. had
previously announced its intent to
take advantage of growth opportu­
nities and expand its existing mar­
Banks of Iowa, Inc. is Iowa’s larg­
est statewide banking corporation
with fourteen affiliate banks and a
data processing company. At June
30, 1987 Banks of Iowa, Inc. had
assets of $2.2 billion, loans of $ 1.1
billion, deposits of $ 1.8 billion and
capital of $162 million.
Other area banks owned by Great
Midwest Financial are not included
in the Ames agreement.
Northwestern Banker, September, 1987


Iowa News

I BA Convention Event Sponsors
ACS—Credit Bureaus of Iowa and Associated Credit Services, Inc.:
Grand prize for inaugural dinner and show.
Dataplex: West Des Moines Dixieland Band for inaugural dinner and
Deluxe Check Printers: Flowers for registration area and exhibition
hall stage.
Federated Investors, Inc: Co-sponsors for President’s Dance.
Midwest Marketing Consultants, Inc: Co-sponsors for President’s
Dance, pictures for complimentary package at President’s Dance.
Safeguard Business Systems: Flowers for registration area and exhibi­
tion hall stage.
Student Loan Marketing Association (Sallie Mae): Exhibit hall cock­
tail reception on Sunday evening.

Central Iowa BAI
Elects Officers
The Central Iowa Chapter of the
Bank Administration Institute has
elected officers for 1987-88.
Elected president and CEO was
Tom Quinlin, second vice president
at Norwest Bank Des Moines. He
succeeds Marie Vranich, vice presi­
dent and cashier at East Des Moines
National Bank.
Remaining as vice presidents are
Don Fatka, vice president, City
State Bank of Madrid, and John
Walther, president, South Story
Bank and Trust, Slater. Elected as
new vice president is Joyce Buck,
vice president, Central State Bank,
State Center.
Directors elected are: Mike Wiskirchen, senior manager, Peat Mar­
wick Mitchell, Des Moines; Dorothy
L. Coffey, assistant cashier and ac­
counting officer, Jasper County Sav­
ings Bank, Newton, and Larry
Glass, senior vice president, market­
ing, First Interstate Information
System of Iowa, Des Moines.
Elected to serve on the Planning
Committee are: Craig Meyers, assis­
tant vice president, Iowa State
Bank, Des Moines; Jerry A. Young,

assistant vice president, Security
Savings Bank, Marshalltown; John
Seddon, vice president, First Inter­
state Bank of Urbandale, Des
Moines, and Donna Fickes, cashier,
G uthrie C ounty S ta te Bank,
Guthrie Center.

Added in Waterloo
Dennis E. Egel has joined the
staff of Peoples Bank and Trust
Company of Waterloo as vice presi­
dent and trust division head. He pre­
viously served as a trust officer at
Waterloo Savings Bank, where he
served for 11 years. He has also
practiced law in Oelwein and was
the assistant city attorney there.


quality service by experienced professionals
Confidential. Fees Paid by Employer.

Banker, September, 1987
Federal Reserve Bank of St. Louis


Jerry K. Tack has joined Peoples
Bank and Trust as vice president in
charge of commercial loans. Pre-

viously, Mr. Tack was a vice presi- 0
dent at Hawkeye Bank and Trust in
Mason City. He was also the capital
lending officer at Norwest Bank and
a lending officer at Farm Credit Sys­
tem in Mason City.

Added in Eldridge
Jim H. Olson has joined Central
Trust and Savings Bank of Eldridge'
as executive vice
president. His
most recent posi­
tion was as as­
sistant vice pres­
ident in charge
of loan review
for the corporate
office of Banks
of Iowa, Inc., in
Des M oines.
C entral T ru st
became an affiliate of Banks of Iowa
in June. Prior to joining B of I, in^
1983, Mr. Olson served for five years
with the Iowa Department of Bank­
ing as a bank examination analyst.

50th Anniversary
Observed in Worthington

The State Bank of Worthington
celebrated its 50th anniversary on
August 6 with a reception and din-0
ner held in the W orthington
Memorial Hall. Bank directors and
staff hosted the event for bank cus­
Assets of the bank were $ 8 4 0
323.70 when it opened on Aug. 7,
1937. As of Aug. 7, 1987, they stood
at $14,118,444.51.
Honored on the anniversary were
the following bank employees: Olan0
F. Tegeler, president and CEO, 50
years in banking; Verla Sue Tegeler,
vice president, 25 years; Alan J.
Tegeler, vice president and cashier,
21 years; Sue R. Burger, operations#
officer, 20 years, and Joyce M. Dud­
ley, teller, five years.

"Stop By Booth #716 During The
IBA Convention"

Jean Eden

525 M erle H ay Tower


Sandi Garner
515-832-1258 T/W/F
276-1253 M /TH

Des M oines, Iowa 50310 • 515-276-1151

Iowa News


United Missouri Hosts Investment Seminar for lowans

United Missouri Bank, Kansas City, held its 5th Annual Iowa Investment Seminar in Des Moines recently at the Wakonda Country Club.
Taking part in the one day seminar were, from left: Larry Russell, exec, v.p.; Sean Doherty, inv. off.; Alan Sack, inv. off.; Janet Kelley, v.p.;
Jeff Goble, v.p.; Mark Bailey, a.v.p.; Dick Muir, v.p.; Andy Trovillion, inv. repr.; Lyle Wells, Jr., vice chmn.; Becky Herman, inv. acct. off. and
Hal Hollister, exec. v.p.
The seminar included golf, an investment program and a social hour followed by dinner and awards. The investment program included
key insights on mortgaged backed securities, alternative bank investments, bank investment strategies and an economic outlook. Chuck
Orr, partner, McGladrey, Hendrickson & Pullen, CPA’s, gave a bank tax update. Mr. Russell, who gave the introductions, called the invest­
ment seminar “ an informal day to reflect on ideas and to give investment strategies through a hard hitting program.”

Brandt Appoints Manager
Brandt, Inc. has recently an­
nounced the appointment of James
O. Grimes as its authorized district
manager for the entire state of Iowa.
Mr. Grimes, president of Money
Handling Machines, Inc., has been
the authorized Brandt representa­
tive and doing business in western
Iowa since 1953. His organization
brings a wealth of experience to the
banks of eastern Iowa. Specific sales
and service personnel have been as­
signed to cover eastern Iowa banks.
Service points will be at Daven­
port, Des Moines and Waverly. The

two salesmen covering the counties in Des Moines.
east of Des Moines will be Herbert
Seminar leader John Moye, a se­
nior partner in the Denver law firm
Duysen and Dennis Steele.
Moye, Giles, O’Keefe, Vermeire and
Gorrell, is a national recognized ex­
on the UCC.
IBA to Offer
Registration is at 7:45 a.m. and
Documentation Seminar
the seminar runs from 8:30 to 4:15.
In an effort to keep bankers up-to- Fee is $120 for IBA members, $150
date on the most recent documenta­ for subscribers and $180 for non­
tion issues, the Iowa Bankers Asso­ members, with $15 additional after
ciation is sponsoring “Loan Docu­ Sept. 25. The fee includes manual,
mentation and Analysis of Article continental breakfast, lunch, breaks
Nine of the Uniform Commercial and materials. For more information
Code.’’ The one-day seminar will be contact Barb Lowe at the IBA of­
held October 7 at the Savery Hotel fice.

ler counter with a sit down station
will provide additional work area for
the tellers. Private coupon booths
ARRY Riveland, president and feet when the project is completed to for safety deposit inventories will be
located close to the vault. The ex­
CEO of the Luana Savings better serve its customers.
Bank, has announced that construc­
The full service facility will main­ panded facility provides additional
tion has started on a major remodel­ tain the drive-up on the west and space for storage, bookkeeping and
ing program. Expanding to the east, will have four private offices and a larger lobby area in addition to the
the bank will have over 3,550 square two conference rooms. A revised tel­ private offices. A basement under
the addition will contain much
needed storage space and double the
size of the bank’s present Communi­
ty Room. The exterior appearance of
the building will be enhanced by a
new roof line that encompasses both
the original and new structure.
The Kirk Gross Company, Iowa’s
largest specialist in the design and
development of financial institu­
tions, is in charge of the project and
will utilize local trades where pos­
sible. Barring unforeseen delays, the
project should take six to seven
months, Mr. Riveland said.

Luana Savings Bank Is Expanding

Federal Reserve Bank of St. Louis

Northwestern Banker, September, 1987


Iowa News

Gerald Gross Named Chairman, Robert
Buckley President at Kirk Gross Co.
ERALD L. Gross, president of
Kirk Gross Company of Water­
loo since 1971, announced recently
that he has assumed the duties of
chairman of the board and Robert T.
Buckley has been elected president
and managing officer of the com­
pany. Mr. Buckley has been with the
firm since 1979 and has held posi­
tions of sales representative and
sales manager.



Mr. Gross said this move, which
was effective July 1, provides Kirk
Gross Company with continuing ex­
perienced management, while giving
him more personal time to develop
further his Kirk Gross Company
bank building and remodeling busi­
ness in Florida, which has expanded
greatly in the past year.
Mr. Buckley said, “We’re com­
mitted to expanding the business
and providing the same quality ser­
vice and careful attention to detail
that has made Kirk Gross Company
a leader for the past 51 years. We’re
a company old in experience and
young in enthusiasm, and th a t’s a
winning combination. ’’
Mr. Gross echoed his sentiments
and added, “The philosophy at Kirk
Gross Company has always been to
emphasize service and do what we
say we’re going to do. This service
starts with the initial contact and
continues until every last detail is
completed. Under Bob Buckley’s
leadership, this same philosophy
and commitment to service will con­
Kirk Gross Company is the
largest full service turn-key firm in
Iowa, having built or remodeled
more than 290 financial institutions
in the state. Its greatly expanded
list of projects for 1987 over 1986
emphasizes the strong economic re­
covery experienced in Iowa banking
in the past year. Mr. Buckley said

Banker, September, 1987
Federal Reserve Bank of St. Louis

Kirk Gross has completed or has
under construction 14 projects
already this year, with another halfdozen on the drawing board at the
end of July.
These include a just completed
new branch building at New Hart­
ford for the Iowa Savings Bank of
Dike. Open house was held in the
New Hartford building on August
18. One of the major remodeling
jobs completed this year was the ex­
tensive work done by Kirk Gross
Company for First National Bank of
Dubuque. In addition, all the archi­
tecture and design for the beautifully
done Depot Office of Midway Bank
and Trust in Cedar Falls (featured in
the August issue) was performed by
Kirk Gross professionals. A major
remodeling for the Gilbertville office
of the National Bank of Waterloo
also was completed in recent
Six jobs in progress for architect,
design or remodeling work are: ma­
jor remodeling for Security Bank &
Trust in Decorah; renovation in
Grundy Center for Grundy Na­
tional’s main building and also the
bank building it obtained through
the recent acquisition of Hawkeye
Bank there; remodeling and expan­
sion for Luana Savings Bank; re­
modeling and new addition for Com­
munity Savings Bank in Edge wood,
with groundbreaking September 1;
interior design and remodeling for
United State Bank in Cedar Rapids,
and interior design and remodeling
for Farmers Savings Bank in Traer.

IBA Sponsors Consumer
Bankers Conference
“A Harvest of Consumer Pro­
ducts,” a conference sponsored by
the IBA, will be offered on Oct. 13
and 14 at the University Park Holi­
day Inn in West Des Moines. The
meeting will address new develop­
ments in the lending field and offer
successful techniques for selling new
products and services.
A highlight of the gathering will
be an Octoberfest celebration at Liv­
ing History Farms. Beer and brats,
a polka band, hayrides and a chance
to see the Walnut Hill bank make up
the festivities.
Registration is $150 for members,

$190 for subscribers and $225 for £
non-members before Oct. 2. After
that date, fee is $20 additional.
The agenda is as follows:
Tuesday, Oct. 13
8:00 R e g istra tio n /c o n tin e n ta l
9:00 “Home Equity Lending: The
Second Phase,” Michael
Moebs, pres., Moebs Ser- ®
vices, Lincolnwood, 111.
11:50 “Competing with the Auto
Lending Market,” Michael
12:00 Luncheon with Chuck “Iowa
Boy” Offenburger.
1:30 “Major Issues in Consumer
2:30 Roundtable discussions.
3:45 “The Role of Bankers in Im­
proving the Bankruptcy
System,” Richard Stageman, of counsel, Davis, ^
Hockenberg law firm, Des
6:00 Octoberfest.
Wednesday, Oct. 14
8:30 Continental breakfast.
9:00 Concurrent sessions:
1. “Building a More Effec­
tive Sales Team,” John
Pratt, Pratt and Assoc., #
Lakewood, Colo.
2. “The Dos and Don’ts of
Property M anagem ent,”
Jo h n Leavengood, Des
3. “ Non-Interest Income:
Panacea and Peril,” William
F. Staats, prof, of banking,
Louisiana State U., Baton
Rouge, La.
10:45 C oncurrent sessions re­
12:00 Luncheon with Jim Gib­
bons, wrestling coach, Iowa
State U.
1:30 “Getting the Ear of Top
M a n a g e m e n t,” W illiam
3:00 Adjourn.

Appointed in Clinton
Clinton National Bank has an- •
nounced the appointment of Chris
E. Fenimore as vice president and
trust officer. He joins the bank after
serving as vice president and senior
trust officer of the American Na- #
tional Bank in Omaha.

served in the retail lending division.
Mr. Strutzel was previously an
examiner with the Department of
Bank. Mr. Fisher formerly served as
an examiner with the FDIC.
* * *





First Interstate Bank has an­
nounced the following personnel
Richard L. Reis has joined the
bank as senior vice president, retail
banking. He previously served Norwest Corporation, Minneapolis, as
vice president, consumer asset manager.
Dale Klauss was promoted to
manager of the Ingersoll office. He
joined the bank in 1970 and most re­
cently served as manager of metro
retail banking.
Maggie Hoogerheide was ad­
vanced to vice president and man­
ager, personal trust division. She
joined First Interstate in 1985 as a
trust officer. She also serves as vice
president of the Estate Planners
Federal Reserve Bank of St. Louis

Larry Cobb was promoted to vice
president and manager of trust in­
vestments and operations. He joined
the bank in 1983.
Jeffrey A. Simms was elected
commercial banking officer in the
Iowa division. He was previously a
loan review officer for First Inter­
state of Iowa, Inc.
Jo Lynn Gilchrist has joined the
bank as a corporate trust officer.
She will manage the employee bene­
fit and corporate trust areas of the
trust division. She previously was
employed by Ernst & Whinney,
where she was a tax consultant.
Steven J. Augspurger, Craig E.
Strutzel and Richard B. Fisher are
new loan review officers for the
bank. Mr. Augspurger joined First
Interstate in 1984 and most recently

Donald R. Runger, president of
Hawkeye Bank & Trust of Des
Moines, has an­
nounced the elec­
tion of Steven G.
Patterson as ex­
e c u tiv e
p re sid en t and
chief operating
officer. He will
also serve on the
board of direc­
tors. Mr. Patter­
son most recent­
ly was president and CEO of Citi­
zens National Bank of Boone.
Mr. Patterson began his banking
career with First Federal State
Bank of Des Moines, then became
executive vice president of Hawkeye
Bank & Trust of Sioux City. After
serving in this capacity for four and
a half years, he became president of
the First National Bank of Sibley.
He then moved to Boone.
Carol T. Stone has been elected
vice president and trust operations
officer of the bank.
Darrell Hughes was promoted to
vice president and senior loan offi­
cer, and Steve Anderson to assistant
vice president and consumer loan
officer. Other new officers elected in­
clude Brenda Hansel, assistant man­
ager, Hickman office, and Jessica L.
Rubes, assistant accounting officer.
* * *
Edwin F. Buckley, 91, died recent­
ly in Des Moines after a lengthy ill­
ness. Mr. Buckley had been a Des
Moines banker for 53 years.
He was born in Des Moines in
1895. He started his banking career
in March, 1914, as a messenger for
the old German Savings Bank. He
was w ith the R econstruction
Finance Corporation in the Chicago
office for a short time in the early
1930s, and also held positions with
the Des Moines National Bank and
its successor, Iowa-Des Moines Na­
tional Bank, before joining the Cen­
tral National Bank (now First In­
terstate Bank) in 1935.
Mr. Buckley was elected presi­
dent of Central National in 1941,
and then was moved to chairman in
1962. He retired as chairman and a
member of the board in January,
1967, at the age of 71.
Northwestern Banker, September, 1987

Iowa News
(Continued from page 21 )
dards for loans sold, and guarantee to investors the
safety of their investment.
Local banks originating loans to a pooler would have
to contribute to a 10% reserve to stand behind each
pool of loans. That local bank’s contribution would be
accessed to cover losses before any other pool mem­
ber’s reserve is accessed. The contribution of the 10%
reserve is a matter of contractual arrangement be­
tween local lender and the pooler and may be decided
by any agreed upon method.
The pooler would submit a pool of loans to FAMC
for its guarantee and FAMC would collect a fee for an
additional reserve pool to be used in the event the indi­
vidual pooler’s 10% reserve should be exhausted. Only
if the FAMC reserve is exhausted would the $1.5
billion line of credit from the U.S. Treasury be used by
FAMC. This Treasury guarantee should allow the
FAMC guaranteed securities to sell competitively in
the market.
As ABA and IBAA stressed, allowing banks to par­
ticipate in a solid secondary market means that, for the

September, 1987
American Bankers A s s o c ia tio n ........................................ 8
American Express Travelers Cheques................................19
American Trust & Savings, D ubuque................................. 68
Balboa Life & C a s u a lty ........................................................ 14
Banking Careers, Ltd.............................................................90
Banks of Iowa Computer S e rvice s..................................... 83

first time in many years, the local bank may offer its
professional farm customers complete lines of credit,0
both long-term real estate and shorter-term production
and equipment loans, restoring community banks’
vitality as one-stop lenders.
There will no doubt be a fight when Congress takes
up HR 3030 in the days ahead, for FCS undoubtedly^
wants to expand its role to take as much business
away from the private sector in long-term and short­
term lending as possible. The involvement of every
community bank in the nation will be vital to winning
this one in the Congress.



In addition to the special agricultural articles read­
ers will find in this issue, two additional, important
ones will be featured in the October issue. One is a ^
survey among a group of leading ag bankers on wherew
agriculture and ag lending is headed in the future. The
other relates how the Iowa FmHA/Banker Advisory
Board, the first ever in the nation, is helping bring
understanding and harmony between the two groups, ^
and how USD A plans to expand the concept to other

Bankers Trust Co................................................................... 64
Brandt, O m aha...................................................................... 86
Brock R eport.......................................................................... 16
Daktronics, Inc....................................................................... 94
Davenport Bank & Trust Co.................................................. 71
Des Moines S ta m p ................................................................86
Drovers Bank of C hicago...................................................... 12
Evergreen Systems, Inc....................................................46-51
First Bankers Securities Corp............................................. 5
First Interstate Denver..........................................................55
First Interstate Des Moines ................................................85

First National C h ic a g o ....................................................... 77
First National Omaha .........................................................56
First National Sioux C ity .................................................... 7 5 0
Financial Information Trust ...............................................25
Gross, Kirk Co.
IAC G ro u p ..........................
Imperial House Restaurant
Information Technology ..
Investment Centers of ND .

13, 80
.. .67
. . .72

Kansas Bankers Surety Co.................................................. 69
LaSalle National B a n k.........................................................10
M B U ...................................................
Marquette Bank Mpls.......................
Merchants National B a n k ..............
Midwest Management Consultants
Midwest Personnel ........................
Modern Banking Systems, Inc........



National Bank of Com m erce................................................59
National Bank of W a te rlo o ................................................. 73
North Central Life ...............................................................27
Norwest Bank Des M o in e s ................................................. 96
Norwest C orp o ra tion ............................................................20^
Office Concepts, Ltd............................................................. 70
Plus System, Inc.................................................................... 3
LF Rothschild

Seize a marketing advantage
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and proven method of image
building. Increasingly popular electronic
information displays by DAKTRONICS will
Yellowstone State Bank
inform the public of your presence and
Lander, Wyoming
willingness to serve their needs. Indoor and
outdoor displays from DAKTRONICS allow
you to effectively communicate your messages
both inside and outside your facility. In addition to your
messages, you can also offer your display for civic announcements
and community programs. Whatever the use, DAKTRONICS displays will enhance
your image and increase awareness of your business, putting you a cut above the
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FAX 605/697-5171
TOLL FREE 800/843-9879 (exc. AK, HI, and SD)

Northwestern Banker, September, 1987
Federal Reserve Bank of St. Louis


Sallie M a e .............................................................................. 37
Southwestern Graduate School of B a n k in g ..................... 15
Swords Associates, Inc., Kansas C ity ................................18^
United Missouri Bank ......................................................... 7
US Check Book Co.................................................................82
Valley National B a n k ............................................................87

Joins West Bank
Ronald H. Bishop has joined W est|
Des Moines State Bank as a first
vice president in
the lending area,
w orking wi t h
commercial and
consumer loans.
His extensive
banking experi­
ence includes,
most recently,
employment at
Bankers T rust
Company as vice
president—commercial loans. Prior
to that he was with a Chicago bank. (

T his bank cut processing costs 30%
w ith aT I com puter system.
When J. Sid Dinsdale decided that there
had to be a way his bank could operate
more effectively, he did the smart thing.
He turned to a TI computer Value-Added
Reseller (VAR) that specializes in bank­
ing financial system configuration
and software.
“When we committed to computeriz­
ing, we knew we’d save money by bring­
ing our processing in-house. We figured
the payback would take 30 months, but
with our TI system, we’re already well
ahead of schedule.”

Now, all they have to do is upgrade
their software and add processing power
and terminals where appropriate.

TI service and support won’t leave
you short.

Texas Instruments has been making and
marketing reliable computer systems for
almost 20 years and offers a coast-to-coast
network to back them.

An easy transition.

Project Manager Steve Zey explains.
“Now our TI computer handles all the
transaction accounting in the bank.
Our transition to in-house processing
was smooth.
“Most of our people were using the sys­
tem within a few hours of installation.”

Call 1-800-527-3500.

Find out how your bank’s operations can
benefit from a TI computer system and a
TI reseller’s specialized bank accounting
software. Call the number above for the
TI reseller nearest you.

Investment protection you can take to
the bank.


Protecting the bank’s computer invest­
ment was a key factor in their decision to
go with a TI system.

In s t r u m e n t s
Federal Reserve Bank of St. Louis





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

Iowa Bankers Convention
September 20-22,1987
Des Moines Convention Center

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 blow ingin 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, N.A.
7th & Walnut,
Des Moines, Iowa 50304
Federal Reserve Bank of St. Louis

We KnowTheW ky We Are Norwest.