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Voi. 8 N o. 50

Des M oines, Iowa

April 7,1 9 8 0

«4

Fed Extends Bank Stock Loans
EW guidelines for acquisition
debt used in the formation of
one-bank holding companies have
been announced by the Federal Re­
serve Board. The relaxed rules make
it easier to finance the costs of form­
ing small one-bank holding com­
panies by increasing, in effect, the
authorized period of debt repayment
from 12 years to 18 years.
The Board changed a policy in
effect since 1971 for the purchase of
banks w ith tota l assets o f $150
million or less. The change requires
the parent company to reduce its
debt-to-equity ratio to 30% within
12 years, and have little or no non­
banking activities.
The Fed Board also agreed to re­
ceive requests for applying the new
standard to acquisition of larger
community banks on an individual
case basis. Also, it will consider on
an individual basis the application
of the new standard on a retroactive
basis to bank holding companies of
less than $150 million to give them
relief for debt arranged under the old
12-year regulation. The rapidly
rising cost of interest is putting
extreme pressure on many of these
loans.
One large correspondent bank de­
partment manager has told his exec­
utive committee and board of direct­
ors that with the current rate of
interest, his department will be sat­
isfied with collecting its interest
alone during 1980. The extension o f

N

debt term to 18 years could ease this
burden to some degree. However,
¡the same officia l said notes are
written to provide the rollover at
regular intervals at newly negotiat­
ed interest rates, and such debt
would be placed again on an extend­
ed basis at the end of 12 years.
I The entire matter appears aca­
demic at this time with prime rates
of interest at 20 % , and extreme
pressure on earnings for banks in
1980 further creating a squeeze.
However, interested observers from

W A S H IN G T O N ,D .C ^
the Independent Bankers Associ­
ation of America, which has pursued
this goal for several years, and the
A m erican Bankers A ssocia tion
agree that such regulation will be
beneficial when the financing o f
bank stock loans becomes viable
again.
The A B A points out, also, that
Congress has already spoken
through the depository reform act
that it wants the Fed to loosen up
such loans to a 25-year term, and
Congress may not be satisfied with
the step just taken by the Fed.

In its initial proposed regulations
issued last year, the Fed offered to
extend the years from 12 to some
longer term, but in turn demanded
that no dividends could be paid out
until the remaining 30 % equity debt
was erased. That proposed regulat­
ion was withdrawn, but dividend
payment still is subject to three con­
ditions.
The Fed’s policy of requiring the
amount of acquisition debt to be
limited to 75% continues in force.
That 75 % is to include debt incurred
by the owners of the holding com­
pany to finance the acq u isition ,
even if the debt falls outside the
direct obligation of the holding com ­
pany. The Fed said this was includ­
ed to discourage “ off balance sheet’ ’
averaging by owners. An exception
will be if owners can prove their per­
sonally held debt can be handled
w ithout recourse to the holdin g
company.
□

Iowa News
The Iowa Bankers Association
will host its first CEO Conference
April 21-22 at the Gateway Center
Hotel in Ames. Am ong the topics to
be covered are NOW accounts, com­
petition for funds, spread manage­
ment and investments. Workshops
on compliance, personnel and sub­
poenas and confidentiality will be
included.
A L B I A : P eoples N ational Bank
here has received permission from
the regional administrator of na-

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Federal Reserve Bank of St. Louis

■H i
FI RST NATIONAL LI NCOLN
• Member, F.D.I.C.

13th & M Street • Lincoln, Nebraska 68501

2

tional banks to exercise fiduciary
powers.
A L T A V IS T A : The A lta V ista
State Bank recently transferred
$100,000 from undivided profits to
surplus. The bank’s total capital
accounts are now $600,000.
DAVENPORT: Richard R. Horst
has joined Davenport Bank & Trust
Co. as a correspondent officer. Most
recently he was executive vice presi­
dent of the Farmers Savings Bank,
Princeton.
H A M P T O N : The F irst N ational
Bank here has received consent from
the regional administrator of na­
tional banks to exercise fiduciary
powers.
M ARSH ALLTOW N: C. C. Hope
J r., president o f the A m erican
Bankers Association and vice chair­
man of the First Union National
Bank, Charlotte, N.C., will be the
featured speaker at the Iowa Valley
Chapter of the American Institute
of Banking’s annual dinner meet­
ing. The event will be held at the
Best Western Regency Inn south of
Marshalltown at 6:30 p.m ., April
16.
M A XW ELL: Patricia K. Scoville
has been appointed assistant cash­
ier at Maxwell State Bank, it was
announced by Morgan D. Monroe,
president. She has been with the
bank since August, 1973.
OSCEOLA: Forest T. Lewis, form­
er president and ch ief execu tive
officer of Plaza State Bank, Des
Moines, has been retained by the
Osceola State Bank & Trust Co. as

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Federal Reserve Bank of St. Louis

executive assistant to the president.
SIOUX CITY: Charles J. Tice re­
signed recently as senior vice presi­
dent of Security National Bank to
become executive vice president of
American National Bank in Springfield, M o., a member of First Chart­
er Bank Holding Co., Kansas City.
He was succeeded as head of Secur­
ity’s commercial loan division by
William Kabourek, vice president,
as announced in an earlier issue.

Grow with a
BANKERS’
BANKER

Call 1-800-362-1688, toll-iree in Iowa

Nebraska News
The Nebraska Bankers Associ­
ation executive council met March
27 in Kearney and ratified the slate
of officers proposed by the nominat­
ing committee for election at the
annual convention in Omaha May 5.
William W . Cook Jr., president of
the Beatrice National Bank, was
nom inated as president-elect for
1980- 81. He would automatically
become president of the NBA in
1981- 82. He would succeed Jerry
Roe, president of Bank of Benning­
ton, current president-elect, who
will move up to the NBA presidency
for 1980-81 at the May convention.
Mr. Cook’s father, William W . Cook
Sr., was NBA president in 1965-66.
Nominees for the executive coun­
cil are: L. J. Fox Jr., First National
Bank, Albion; Ronald J. Krejci,
Schuyler State Bank; Robert W.
Johnson, State Bank of Benkelman;
Joe J. Huckfeldt, Gering National
Bank; Harold Walton, Center Bank,
Omaha, and Thom as D. P otter,
N ational Bank o f Com m erce,
Lincoln.
H O W E L L S : Dana D annelly o f
Dodge has been named president of
The H ow ells Bank succeeding
Elmer L. Bradley Jr. who is retiring.
The appointm ent com pletes the
transfer o f bank con trol to the
Howells Investment Co. which pur­
chased the bank last July.
SOUTH SIOUX CITY: The 1980

Spring Conference of the Missouri
Valley Chapter of the Robert Morris
Associates will be held April 17-18
at the Marina Inn here. Featured
topics to be discussed include prob­
lem loan workouts, cash flow analy­
sis, energy and m otivation and
human resources.

Minnesota News
M IN N E A P O L IS : F&M Savings
Bank has announced the formation
of F&M Mortgage Corp., a resident­
ial and income mortgage banking
service corporation su bsid iary.
Miles C. Babcock, senior vice presi­
dent of F&M, has been elected presi­
dent of the new corporation.
PINE RIVER: The Pine River State
Bank has received consent from the
F D IC to establish a detached
facility in Emily.
RUTHTON: Buffalo Ridge State
Bank of Ruthton has received con­
sent from the FDIC to establish a

Single System
Banking

Now

National Bank of Waterloo
Waterloo, Iowa 50704 Member FDIC

Phone Max Cory
at 1-800-772-2411.

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Federal Reserve Bank of St. Louis

We’re Committed.
For ag overlines, data processing, investment ser­
vices and all your correspondent banking needs,
think of your Security
Banker. We’re committed
to helping you!
Wayne Johnson
Senior Correspondent Banking
Officer
712/277-6526

SECURITY N A TIO N A L B A N K
SIOUX CITY, IOWA 51101

MEMBER ED .I.C.

© 1979SNB

m oted from assistant cashier to
cashier.

detached facility in Holland.

Illinois News

South Dakota News

BLOOMINGTON: Peoples Bank of
Bloomington has received consent
from the FDIC for federal deposit
insurance upon withdrawal from the
Federal Reserve System.
HOMEWOOD: The Bank of Homewood has received consent from the
FDIC to establish a facility in Hazel
Crest.
M IL A N : The Blackhaw k State
Bank here has received consent from
the FDIC to open an office in Rock
Island.
MOUNT VERNON: Security Bank
& Trust Co. has received consent
from the FDIC to establish a remote
service facility in General Tire and
Rubber Company’s industrial plant
here.
PECATONICA: The Bank of Pecatonica has announced a 100% cap­
ital increase, from 2,000 to 4,000
shares of stock. The bank’s capital
is now $400,000.

North Dakota News
DICKINSON: Dennis White has
joined the Liberty National Bank &
Trust Co. as vice president. He
formerly was senior vice president of
Farmers State Bank of Minnewaukan. Leon Schaible has been pro­

LEMMON: The Bank of Lemmon
has increased its number of shares
from 2,500 to 3,000, each with a par
value of $100.

to m a k e M N B
w o rk fo r y o u .

Colorado News

T o ll fre e
1-800-332-5991

AURORA: The First National Bancorporation, Denver, has received
consent from the Federal Reserve
System to acquire all the outstand­
ing shares of Buckingham Square
National Bank here. The acquisition
would bring to 13 the number of
banks in the holding company.
DENVER: Century Bank and Trust
has received consent from the FDIC
to establish a remote service facility
at 77 Madison St. here.
D E N V E R : T ed R. Johnson has
been elected chairman of Boulevard
Colorado National Bank. He has
been a director since 1963 and has
been active in banking for 50 years.
G O L D E N : Joe L . W illiam s has
been named v ice president and
cashier of the Golden State Bank.
He formerly held the same position
at Weld Colorado Bank in Greeley.
G R E E L E Y : Sam L. Leeper has
been named executive vice president
o f the F irst N ational Bank of
G reeley. He form erly served as

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712/277-1500

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JERRY TRUDO

Sioux City • A ‘BANKS OF IOWA’ BANK

Merchants
dfifa
National Bank 151
Member F.D.I.C.

A BANKS OF IOWA’ BANK

executive vice president o f the
Champaign (111.) National Bank.

Montana News
B IL L IN G S : K enneth D . Carson
has been elected assistant vice pres­
ident-agricultural loans at the First
Northwestern National Bank here.
He formerly was branch manager of
the Eastern Idaho PCA in American
Falls.
GREAT FALLS: Fred Sodomka
has joined the Northwestern Na­
tional Bank of Great Falls as human
resources officer, and Charley Swit­
zer was recently appointed an agri­
cultural loan officer.
GREAT FALLS: The First Nation­
al Bank of Great Falls has applied
for permission from the regional ad­
ministrator of national banks to
locate CBCT units at H oliday
Village and the Westgate Shopping
Center here.

Wyoming News
CHEYENNE: Larry L. Hassler re­
cently joined W yoming Bancorporation as corporate auditor. He had
been a commissioned national bank
examiner residing in Grand Island,
Neb.

4

I

LEas6Plan,lnc.

545 - 31st Street

Des Moines. Iowa 50312

R. L. “DICK” SELLON • P.D. “DUANE” DEVAULT

Prime Hits 20%
Chase Manhattan Bank of New
York led the way to a prime of 20 %
April 2. The highest prime rate in
history, it was the ninth increase in
one m onth and the 15th since
January 1. The prime was 13 V&%
when the Fed announced its first
credit restrictions last October 6.

Monfort President Resigns
Samuel D. Addoms has resigned
as president of Monfort of Colorado,
Inc., citing “ management differ­
ences” over recent decisions. He will
remain as a director of the firm.
Kenneth W . Monfort will resume his
former post as president. Mr. A d ­
dom s is w ell-know n to m idw est
bankers in his previous capacity as
an officer in the correspondent bank
d ivision o f Continental Bank,
Chicago.

PARTIAL LIST OF
AVAILABLE POSITIONS

FOR SALE

BANKERS PARTICIPATING

Five-window teller counter, walnut and marble (will
s e p a ra te ). A ls o , used M o s le r drive-up w in d o w .
Farmers Savings Bank, Kalona, Iowa 52247. (319)
656-2265.____________________________________ (FS)
Burroughs L9000 Minicomputer Model 9944-200 with
two cassette drives Model A9490-25, stripped ledger
reader. E x c e lle n t c o n d itio n ; under m a in te n a n c e .
C o n ta c t C oop er H anson at D ata S y s te m s , (402)
426-4117.____________________________________ (FS)

Cal 1515-223-1044

Homer Jensen

—

DickBuenneke

3737 Woodland Ave.
Executive Suitel 20
West Des Moines, Iow a50265

W ANT ADS
Rates 50 cents per word per insertion.
Ad $2 for file numbers. Identity of file
number advertisers cannot be revealed.
Payment in advance, please.
NORTHWESTERN BANKER
306-15th St., Des Moines, Iowa 50309

Modular bank buildings: 12’x56’ mobile, 12’x40’ wood
with two DUW’s, and fully equipped wood permanent
buildings (up to 3000 s.f.); occupy within 45 days.
Over250 installations. SON CORPORATION, Box 684,
Wichita, K S 67201. Orcall collect (316)942-8167.

UPDATE YOUR SEC U R ITY
Professionally Installed closed circuit
television and 35mm auto cameras.
A utom atic tape dialers and police
panel connection are available to suit
your needs.
SECURITY SYSTEMS, INC.
3920 Delaware
Des Moines, IA 50316 [515] 265-1161

LENDING— Work in ag, commercial & real estate.
Position is with Illinois bank. $14,000

TRUST OFFICER— South Dakota bank. Be respons­
ible for administration, investments, reporting & mar­
keting. A good position.

Banks For Sale— Southern and southwest Minnesota;

OPERATIONS— Will oversee operations, personnel &

$4 m illion in footings each. Good management; insur­
ance agencies; good communities, and good earn­
ings. W rite file JBW, c /o Northwestern Banker. (FS)
Savings & Loan For Sale— Northern Kansas. State
charter. Home office, one branch, three service offices
and real estate development; $36 million in footings.
W rite fileJ B X , c /o Northwestern Banker.________ (FS)
Twenty-two NCR 279-200 on-line teller machines with
controllers and couplers. All less than one year old
and on m a in te n a n c e . $2200 each. P hone (512)
258-7101.____________________________________ (FS)

its ag department. Spot offers excellent promotability.
reports. EDP experience a strong plus. $15,000

TRUST— JD a must; estate planning experience very
important. $25,000
#1— Rural Iowa bank. Outstanding opportunity. Must
be capable of running the bank completely. $30,000

AG OFFICER— Livestock experience is a must for this

m

southwest Iowa bank. $20,000

ASST CASHIER— New position. Experience a must;
charge card experience a big plus. $13,000

LOAN OFFICER— Must have commercial experience

Two Lefebure drive-up window units (mod. #BK664D)
with heater, defroster and speakers. One B.R. window
3’x5’. One P602 Olivetti magnetic program card com­
puter. Contact John or Doug at State Bank of Worthlngton(M inn.); phone (507)376-3141.___________ (FS)

In a $ 1 5 0 M M + bank. $35,000

Dictaphone Ansafone unit, model #1650. Good condition. Call (319)652-2487._____________________ (FS)

experience needed. Experience in both a big plus.
$19,000

LENDING— N o rth w e s t Io w a bank. O u tsta n d in g
opportunity; will be groomed for #2 spot. $15,000

$&

LOAN OFFICER— Solid installment or commercial

VP— Work In commercial and direct junior officers.
Looking for strong experience. $28,000
Bank Division

cdroidsx an d
Bank Consultants
Specializing in Bank Acquisitions
P.O. Box 450

£-

EVP— Responsibilities will cover all areas for this
small bank. Must be a generalist. $28,000

AG OFFICER— Growing Nebraska bank is expanding

515-232-0814
405 Main Ames, Iowa 50010

ROBERT HALF

of Iowa, Inc.

317 6th Ave.
Des Moines, IA 50309
(515) 244-4414

D o n a l d E. H o l d e r , Principal

POSITION AVA ILABLE

Ag Loan Officers & Operations Officers are needed by
Iowa, Nebraska and Illinois banks. Salary range from
$18,000 to $26,000. Insurance license required in
some positions. Employer pays fee. Write or call
Malcolm Freeland, Freeland Financial Service, 306
15th Street, Des Moines, IA 50309. (515)244-8163.(PA)
Loan Officer/Representative— Immediate opening for
a loan officer with one or two years of loan experience
fo ra south central South Dakota branch of Northwest­
ern National Bank of Sioux Falls (Banco). Ag back­
ground desired. Send resume and salary history to:
Steve Johnson, Northwestern National Bank, Box
1028, Sioux Falls, S.D. 57101.
(PA)
_________ Equal Opportunity Employer M / F_________
Executive Vice President— South M in n e so ta $20
million bank looking for aggressive individual with a
strong lending and operations background. Heavy in
all types of agricultural lending, especially with cash
flows. Excellent salary and benefits. Send resume to
file KBA, c /o Northwestern Banker.____________ (PA)

W ANTED — In d iv id u a l w ith a ll In su rance and real

FOR SALE OR LEASE

keepers, tellers and do all reports. $17,000

NCR 481 P roof M a ch in e in e x c e lle n t c o n d itio n .
Pleasantville State Bank, Pleasantville, Iowa 50225.
(515)848-5741.________________________________ (FS)

Loan Officer— Central North Dakota bank has opening
for a loan officer with agriculture degree or ag background. W rite file JBY, c /o Northwestern Banker.(PA)
Independent Management Services
Specializing in Bank Acquisitions
By Independent Investors
No Broker Fees

OPERATIONS— South Dakota bank. Supervise book­

estate licenses to manage a new insurance agency in a
$20 million Iowa bank. Send resume and salary requirements to file KBB, c/o Northwestern Banker.(PA)

AG BANKING CAREERS
AG LE N D IN G . . . E. Iowa ..........................$14-17,000
AG LOAN R E P . . . O h i o ............................ $25-30,000
C O M M E R C IA L. . . Iowa ............................ $20-28,000
AG C RED IT. . . D e n v e r .............................. $17-22,000
AG LENDING O F FIC E R . . .Io w a

...........$16-18,000

AG LENDING O F FIC E R . . . Minn. & III.

. $16-22,000

Since 1968, banks and other ag-related employers
have been paying us to find the personnel they need.
For more information, give Linda (our banking spec­
ialist) a call today.

aqricAREEKS,\HC.
m J

AGRICULTURAL PERSONNEL RECRUITERS

(515)394-3145______________ New Hampton, IA 50659

SERVING PRO FESSIO NALLY
Banking, Financial & Business Personnel
Iowa and Nationwide

CAPITAL PER SO N N EL SERVICE
714 Central National Bldg. 515-283-2545
Des Moines, Iowa 50309

W ANTTOBUY
Investor wants to purchase $20 million (approx.) de­
posit bank in live community. Long term investment.
Need good management. No brokers. Write file FBX,
c /o Northwestern Banker.___________________ (WTB)

POSITION W ANTED
Thirty-one-year-old attorney seeks bank position.
Licensed to practice law In Oklahoma and Nebraska.
Nebraska real estate broker. Contact Robert L. Hardt,
P.O. Box1463, Norfolk, Nebraska68701._______ (FW)

BANKING POSITION WANTED— Experience as loan
officer for finance company and Insurance sales.
Business and economics degree. Will relocate. Write
file JBV, c /o Northwestern Banker.____________ (FW)

BANKERS WANTED
INST. L N .— Wyoming

........................................... 16/18

INS. M G R .— W y o m in g ......................................

18 +

AGRI. LN .— Nebraska ........................................... 16/18
CR. C D .— Colorado

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

25

EXEC. V .P .— M is s o u ri.........................................

35

C .E .O .— Kansas ....................................................
INS. M G R .— Iowa

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

C .E .O .— Newcharterin Missouri

75
18 +

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

. &

25

Just a sample of current orders; others aval table. Send
resume and salary history to:

TOM HAGEN & ASSOCIATES
Box12346 / North Kansas City, Missouri 64116
(816) 474-6874

“I t takes a banker to know one ”

Vol. 8 No. 50 Northwestern Banker Newsletter [USPS 673-300] is published weekly by the Northwestern Banker Company, 306
Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 25 cents per copy, $8.00 per year. Second class postage paid at Des Moines,

Iowa. Address all mail subscriptions, changes of address [Form 3579], manuscripts, mail items to above address.
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Federal Reserve Bank of St. Louis

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