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                                                                    Exhibit 10.7

                     [BANKERS' BANK OF THE WEST LETTERHEAD]


                                                         October 20, 1997
Max Revell, Vice President
First State Bank
PO Box 730
Kimball, NE 69145

Dear Mr. Revell;

We are pleased to inform you Bankers' Bank of the West (BBW) has approved the
renewal of the Federal Funds purchase line for First State Bank on an unsecured
basis with a maturity of 10/31/98. All federal funds purchase lines are
accessible as funds are available. The maximum amount of the established line is
$3,5001,000.00. All Federal Funds lines are subject to quarterly review as well
as annual renewal, and terms may be altered in the event of a significant change
in the financial condition of the bank. Please continue to provide BBW with Call
Reports on a quarterly basis.

BBW's policy of the sale of funds to respondent banks is outlined in our Federal
Funds Sale Agreement, a copy of which should be in your file Once executed, the
signed agreement is continuing in nature and need not be re-executed annually.
Your bank should keep this annual re-approval letter in your file as well.

The staff at BBW is pleased to provide this service to your bank. Should you
have any questions or need additional service, please feel free to call me.


Sincerely,

/s/ Dale W. Utley


Dale W. Utley

Vice President