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UaaL M sX/ Vol. 12 No. 15 Des Moines, Iowa Speaker tells independent bankers: (< More Factors Are in Your Favor LOOK A T “ The Future o f Inde pendent Banks—A P erspec tive” was given b y W . G rant G regory, chair man o f the board of Touche, Ross & C o ., N ew York, to mem bers o f the Iowa Independent Bankers and he stated that “ on W.G. GREGORY balance, looking at internal factors affecting indepen dent banks, I ’d say more factors are in your favor.” He spoke during the 12th annual IIB convention at Lake O koboji on July 22. Mr. Gregory was speaking from the broad perspective o f a dynamic young international executive who heads a staff o f 22,000 people in 60 nations, yet comes from the small town o f Tabor (1,000 population) in southwest Iowa. He was graduated from the University o f Nebraska with distinction, then completed graduate studies at New York Uni versity and the Harvard Business School. He joined Touche Ross in 1963 and prior to his selection by fe llo w p a rtn e rs to head th e prestigious world-wide accounting A August 1,1983 keep an inventory. Today’s ag managers and bankers face a perplexing picture that looks like a three-legged stool: 1. Govern ment regulation in agriculture both with P IK and export control. 2. Weather, which we can’t control. 3. Leverage, as oppposed to the ’50s, ’60s and early ’70s. W e have a huge ag debt, and were partly lulled into it by inflation. Chairman Paul V olcker’s reap pointm ent to head the Federal Re serve Board is im portant to you. I think he plans to de-sensitize infla tion. W e can’t cope with such ag debt with high inflation and high in terest rates. W e also have a high foreign debt. W e got out o f it a year ago by finessing the debt—waiving interest and principal paym ents— but you can do these things only once. So, we need a solution and that’s why Mr. Volcker was reap pointed, to continue to carry out this assignment because o f his interna tional credibility. Change is a critical factor for in dependent banks, such as the changes in the prime rate in recent years. Prime is a fictitious level. W e have a lot o f clients borrow ing at two or three and one-half points below prime. firm, he was managing partner of the Omaha office o f Touche Ross. He continues to keep in close touch with the needs and challenges of community banking through his ma jority ownership in the Citizens State Bank in Oakland and the Fre mont County Savings Bank in Sid ney, two southwest Iowa towns. Both banks are long-time members of the Iowa Independent Bankers. A summary o f Mr. Gregory’s ad dress follows: W e will address two main points: First, the environment o f indepen dent banking and banking in gener al, and second, how to compete with some o f the forces at work. Ask yourselves—how many o f you loaned money to Oklahoma oil drillers, to Brazil, M exico or Poland? How many o f you have a capital / as set ratio over 3% ? How many o f you want to earn 1% or more on assets? M y point is—independent bank ers can compete! It depends on management. Let’s look at some o f the external forces at work in our nation today. I spent a week in Detroit this past month, especially with Chrysler Cor poration, which is now paying o ff its debt early. Factories there can’t M ORE FACTO RS ... build cars fast enough; they can’t (Turn to page 4, please) Don't gam ble when choosing o correspondent bonk. Com e to the professionals. For any correspondent bonking need . . . overline assistance, data processing services, investment counseling . . . just give us a call. We're the professionals who put the response in correspondent bonking. ucb CENTRAL OF DES MOINES, N.A. • MEMBER FDIC • TOLL FREE NUMBER (800)362-1615 AFFILIATED W ITH UNITED CENTRAL BANCSHARES, INC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis wm W illiam D. Greaves, Vice Presidenr 2 Bank recently announced several title changes in its trust division. The follow ing trust officers were named to new positions: Verne C. Bates, vice president and senior trust officer; Larry R. Cobb, vice president and investm ent officer; Susan P. Cramer, vice president; Michael R. Hyzer, senior trust of ficer, and Charles H. Leibold, senior trust officer. E X IR A : Charles W endt has been elected president o f Exchange State Bank to succeed Ray M. Andersen, who will be retiring from the bank in September after a 50-year banking career. Mr. W endt m ost recently MM ASK T E R R Y M A R T IN to make MNB work for you. ing in 1979. Prior to that he was with First W hitney Bank & Trust Co. in Atlantic, la., for eight years, and had earlier banking experience with 1st National in M onticello, 111. FT. M ADISON : Ken Baker has been elected president and a director of Iowa State Bank. He m oves from Jefferson, la., where he was vice president-com m ercial lending at Home State Bank. Mr. Baker suc ceeds D oyle Hoyer, who was inac tive as president but continues as a director. KELLOGG: A t the Kellogg-Sully Bank & Trust, Bob Terlouw has been named executive officer in charge o f the Sully Bank; Ron De N ooy and Rodney Jansen were pro m oted from loan officers to assistant vice presidents, and Diana M ick from assistant cashier to cashier. STANTON: W illiam J. Grotenhuis, 82, died July 19 in a Red Oak hospi tal. Mr. Grotenhuis was in banking over 50 years and at the time o f his death was chairman o f Security State Bank here and Thurman State Bank. His son, Jim, is president o f the Security State Bank. TRAER : Darlys M. Hulme has been named senior vice president of Farmers Savings Bank. She has been with the bank 23 years, serving as vice president since 1973. Colorado News DEN VER: The correspondent bank ing department o f United Bank of Denver is offering another in its series o f training program s entitled, “ Survival Training — New National Bank Lending Lim its” to be held August 17. The workshop will begin with registration at 9:00 a.m. and run until 3:30 p.m. Location will be the Community Room (located on Lincoln Level o f new tower) of United Bank o f Denver, 1700 Broad way. Nancy Johnson, com pliance of ficer at United Bank o f Denver will serve as faculty for the workshop. Her career spans 11 years, two states and three banks. F O R T C O L L IN S : D on a ld O. Johnson has been elected president o f Colorado National Bank. Mr. Johnson, who will also serve as chief executive officer, has been with the bank since 1977, serving as vice president and senior vice president o f loans. R prinp fo r « n rrp j» _ V ____________________________ ■*4 jflp b ' VWÈmË: Toll free 1- 800- 332-5991 Merchants ^ National Bank 151 Member F.D.I.C. A BANKS OF IOWA' BANK ; "' yI Am< „M em b ec^D IQ .ancU B S ------- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bemie Miller, Correspondent Banking Officer, has over ^O^ears^oflranking experience, and the recipe for success. Help yourself by calling Bemie Send Your News Today to the NORTHWESTERN BANKER TELL US ABOUT. . . 306 Fifteenth Street DES MOINES, IOWA 50309 Staff Changes Business Campaigns Mergers, Consolidations New Departments at the Bank Remodeling or New Building BANK ............I ...................................................................... .......... OFFICER .......................................... ............................... . TITLE CITY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATE Open Houses Anniversary Parties Deaths or Retirements Speeches Made by Bank Officers Special Announcements to the Public M ORE FACTORS ... (Continued from page 1) Technology is another key factor. The art to this is knowing when to go with it. Technology is vitally im portant to banks in serving custom ers. It runs in cycles. I believe the art in studying cycles is not only to know when cycles are com ing, but their amplitude. The next m ajor external factor is the quality o f credit. I have seen a m entality o f loaning on the balance sheet o f assets. Some were bailed out due to inflation, but when infla tion came down and the econom y came unglued, many such loans eroded. Cash flow will have to be the name o f the game. Through August last year we saw 17,600 companies nationwide file for bankruptcy. M ost ju st ran out o f cash flow. Look carefully at your tax-exempt securi ties and municipals to avoid sur prises. M anufacturing custom ers o f banks used to live on a 20-year life cycle o f products—tools, equipment, etc. These cycles now are getting shorter and shorter. In services and high tech areas the product life cycles can go 36 months from start to finish. You must undertand three things on such loans: 1. W hat’s the rela tion sh ip betw een com pany management and the governm ent? 2. W hat’s the marketing capacity? W e’re short o f salesmanship in this nation. 3. W hat are the financial con trols and condition o f the com pany? Another im portant factor for in dependent banking is that you m ust make the case for the dual banking system ! It’s demise would mean a restructuring o f our delivery system o f money. In many o f the countries where I travel, I perceive that the basic problem in many is that their centralized banking system has such exclusive power it lim its the flow of money, as opposed to our system. It is vital that you sell the concept and need for a dual system. Let me mention agriculture again. How many o f you saw Japanese in your state last year? (A number o f hands went up.) How many o f you went to Tokyo? (Only one went up.) This is an inherent weakness. When the Japanese were here they were always selling something. W e’re not over there selling. In Japan, if an ar ticle appears in the newspaper on a new product or service, people will read that article and immediately go see the person mentioned to get the distributorship rights or to manu facture it. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis It appears to me that with the in stability o f com ing o ff a high infla tion period, we need a revitalization o f human resources. People will find that with a high technology genera tion they may have to have two or three career changes. On balance, looking at the inter nal factors affecting independent banks, I ’d say more factors are in your favor. In larger firm s there are more layers between the decision makers and the custom ers, whereas in independent banks you ’re closer to your custom ers and that is a distinct advantage. Another advantage you have as an independent bank is that you can deal easier directly with your cus tom er at one-quarter or one-half per cent to close a deal. A n additional advantage to independent banks is that inventory control on loans is easier; that is, checking collateral. Many people com ing into your markets won’t be able to stand up long-term against you because o f this. And also, the more de-centralized a large firm becom es in smaller communities the more difficulty it has. They help increase the value o f your shares, whether you are selling out or not. elements o f the future o f this coun try and that our nation needs this delivery mechanism for small bus inesses. I ’m excited about your future. Y ou’ve nothing to worry about so long as you pursue excellence in your banks. □ 0 0 Illinois News A N D A LU SIA : Gene Riley has been elected president o f Andalusia Com m unity Bank. He has m oved from W aterloo, la., where m ost recently he was managing officer o f the Teamsters Credit Union and previ ously was executive vice president o f the Evansdale State Bank in the same area. He succeeds Charles W endt, who returned to Iowa to becom e president o f Exira State Bank. Rita Buckrop was prom oted to cashier, to fill the vacancy created by the death in June o f Rita Jackson, 34, who helped open the bank when it was founded four years ago. ARLIN G TO N H EIG H TS: The ac quisition o f Northwest Trust & Sav ings Bank was com pleted July 20 by First Illinois Corporation o f Evanston, and the bank now is known as First Illinois Bank o f Arlington Heights. The W ilm ette Bank is ex pected to join the First Illinois Cor poration in August and should bring the holding com pany assets to more than $650 million. I would list four points for win ners: 1. Have a strategic plan. Pick the kind o f bank you want to be; identify your market and what your main thrust will be. 2. Select good people. The advan CHICAGO: Gordon Carlson has tage is a long-term staff. A disad been appointed vice presidentvantage is having to keep geared to correspondent banking at Sears re-training for change. Bank and Trust Company. 3. Operations is a key. Keep geared to low -cost operations, but PEO RIA : United Bancorporation, you must stay on top o f technology Inc., a seven-bank Rockford-based holding com pany, has agreed to beand market decisions. com e a member o f the M idwest Fi 4. Capital. Your advantage is that you have more o f it — at 8 % you nancial Group, headquarters in have more than 3%, but o f what? A t Peoria. Addition o f the $386 million 3% capital, m ajor banks can go to United Bancorporation would make the capital markets for what is need the M idwest Financial Group the ed. Your capital is driven by earn sixth largest banking institution in ings so you must keep up those earn Illinois and the largest downstate, ings for capital generation or else with more than $ 1.6 billion in assets. regress. Capital will continue to be im portant. A little hole in your ar Wyoming News mor is capital and you must cover that chink. The m ajor challenge for CASPER: Robert L. Hays, presi independent banks o f raising capital dent o f W yom ing National Bank, can be resolved with some newly-de has announced the election o f vetsigned securities like participation eran banker Roger Trupp as assis debentures that independent banks tant vice president, commercial loan can sell to local companies to raise department. Mr. Trupp has nearly capital. 14 years o f various banking exper L egisla tively, you m ust get ience, m ost recently serving in a across the idea that independent credit management capacity for a banking is one o f the im portant private Casper industry. • • 0 ^ m ^ 0 0 CALL ON THE “PERFORM ANCE TEAM ” where com m on transactions are handled uncomm only well. FIRST NATIONAL LINCOLN 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. Nebraska News CURTIS: John W ilkinson has been elected executive vice president and cashier at Curtis State Bank. He was vice president and cashier. Michael L. Jorgensen was advanced to vice president from assistant vice president. GRAN D ISLAN D : Jerry P. Jensen has joined Overland National Bank as vice president and head o f the commercial loan division. Previous ly, he held a similar position with City National Bank o f Hastings. LINCOLN: James T. H itt was elected a vice president at the Na tional Bank o f Commerce directors m eeting July 19. He has been manager o f the trust investm ent department since November, 1981. Ann M. Carlson, trust tax officer since April, 1981, was named assis tant vice president. S P R I N G F I E L D : A g rou p o f Nebraska investors who own other Nebraska banks has purchased the Springfield Bank Co., which owns Springfield State Bank and Springfield Insurance Agency. Glenn M. Adair, form erly executive vice presi dent and cashier, was named presi dent. M yron K. Osborn was elected vice president and cashier. New directors o f the bank are both of ficers and Robert P. Hilt, Jay L. Dunlap, Robert D. Iske and Keith May. SYRACUSE: Darrell Legband has joined The First National Bank as vice president and senior loan of ficer. Minnesota News BENSON: Richard B. Lambert has been elected president o f First Bank Call our Bond Department Getting it done for you. Benson, effective August 1. He has been vice president, Vermillion of fice, First Bank o f South Dakota. He succeeds Vernon Smith, who has been named president at First Bank Litchfield. Portable ModularBankBuilding DULUTH: Larry L. Gilb, president o f First Bank-Duluth, has also been elected chief executive officer. He has been president since September, 1981. James H. Claypool, managing director o f the northern region o f First Bank System, previously held the title o f CEO at the bank, where he form erly served also as president. DULUTH: Dennis W. Dunne, presi dent, Norwest Bank Duluth, N .A., announced these prom otions: Joel W . Schmidt, James A . Seitz and Bruce P. W agner to senior vice presidents; Bruce W . Potter to vice president and trust officer, and Steven J. Sertich to assistant vice president. LITCH FIELD : Vernon Smith was elected president o f First Bank Litchfield to succeed Leslie E. Her zog, who retired July 31. Mr. Smith previously was president o f First Bank Benson. W A Y ZA TA : Lee M. Ashfeld has been elected president o f the First National Bank. For the past six years he has been with Citizens Bank and Trust Company o f Hutch inson, m ost recently as senior vice president and chief credit officer. He succeeds Lowell G. W akefield, who will be assuming responsibilities as president o f Anchor Bancorp, Inc., holding com pany for the First Na tional Bank. South Dakota News The South D akota Bankers General Bank Equipment & Systems, Inc. RR 45, Box 115 Hiway 73,3 V2 Miles North of Int. 680 Omaha, Nebraska 68152 (402)453-3000 Lease • Rent • B u y ____ A ssociation has announced the pro gram for its Commercial Loan Con ference scheduled for A ugust 30 at the H oliday Inn in M itchell. It begins at 8:30 a.m. with “ Cash Flow Lending” by D avid Gaddie, vice president, First Bank o f South Dakota, Rapid City, and follow ed by “ Bankruptcy and Its E ffect and R a m i f i c a t i o n s ” b y V a n c e R. Goldammer, attorney, Boyce, Mur phy, M cD ow ell and Greenfield, Sioux Falls. A fter the noon lun cheon, Mr. Goldammer will continue with his presentation. The last seg ment is “ W orking Out o f Problem Loans,” presented by Ronald E. Brue, senior vice president and se cond officer, First Bank o f South Dakota, Rapid City. Tom Steffens John Henderson Tony Paugoulatos Jim McLaughlin Rick Patton John Shrader Vice President 234-2462 V ice President 234-2463 Vice President 234-2647 Vice President 234-2673 Bond Representative 234-2877 Bond Representative 234-2674 Com m erce Bank o f Kansas G ty 10th and Walnut https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (816) 234-2000 W ANT ADS POSITIONS AVAILABLE Rates a re $5.00 per lin e per inse rtio n . Add $3.00 to r tile letters per inse rtio n . Id e n tity o f file le tte r advertisers cannot be revealed. Commercial Lender for $300 m illion bank in Upper Midwest. Requires college degree and demonstrated lend ing ab ility ...............................................................Salary open NORTHWESTERN BANKER 306-15th Street Des Moines, Iowa 50309 Phone 515/244-8163_______________ Number Two Person fo r $30 m illion com m unity bank. Re quires ag background and proven executive ability. .Salary to $45,000 Commercial Lender to head commercial loan department and supervise installm ents in $60 m illion bank. Requires 5 or more years bank lending experience... Salary to $40,000 POSITION AVAILABLE Senior Ag Lender w ith college degree and minimum o f 5 years bank lending experience needed by major midwest bank. Some travel........................................ Salary to $40,000 First National Bank of Clarion is interviewing for the posi tion of COMMERCIAL LOAN OFFICER. Need strong ex perience in agricultural lending. Send resume to Mr. R.B. Bartholomaus, c/o First National Bank o f Clarion, P.O. Box 268, Clarion, la. 50525.____________________________ (PA) Commercial Lender for com m unity bank in tow n of 15,000. Requires 5 or more years experience in a bank of at least $40 m illion ................................................................... Salary to $35,000 Commercial Lender fo r multi-bank holding company in bank located in city over 100,000. Requires 3 or more years bank lending experience........................................... Salary to $30,000 INSURANCE SALES MANAGER—At least tw o years bank ing experience desired - not necessary. Base salary plus commission. Send resume to Frank Osowski/EVP, Na tional Bank of Canby, P.O. Box 70, Canby, MN 56220. (PA) Ag Lender w ith sales and promotional ability for bank in outstanding northwest Iowa com m unity of 3,000. Requires m aturity....................................................................... Salary to $28,000 Locally owned independent bank seeking SENIOR LOAN OFFICER. Experience in ag and commercial lending. Op portunity fo r professional growth. Send resume and salary history to file UBO, c/o Northwestern Banker. (PA) Ag Lender for central Iowa bank. Requires 3 or more yearsexperience in a com m unity bank...............Salary to $26,000 Sales/Operations person for major bank supplier. Quad cities location. Car furnished................................... Salary to $30,000 The National Bank of Waterloo, Iowa, has opening for a CORRESPONDENT BANK OFFICER. Need strong exper ience in lending and operations. Send resume to Diane Good, National Bank of Waterloo, 100 E. Park Ave., Water loo, Iowa 50704. (PA) W rite or call Malcolm Freeland, Freeland Financial Ser vice, Inc., 1032 Carriers Bldg., Des Moines, la. 50309. Phone 515/282-6462. Employer pays fee._______________ THe National Bank of W aterloo has opening for an AUD ITOR. Need CPA plus tw o to three years audit experience. Banking experience would be helpful. If interested, please send resume to Diane Good, National Bank o f Waterloo, 100 E. Park Ave., Waterloo, Iowa 50704. (PA) BANK PLACEMENT SPECIALISTS (Our 34th year) Call experienced professionals to locate the right candidate fo r your vacancy ... or the right “ move-up” for yourself. CORPORATE RECRUITERS MIDWEST BANKING DIVISION 202 S. 71st Street 402/393-5515 Omaha, Nebraska 68132 $10 m illion east central Iowa bank needs AG LENDING OFFICER. 2 to 3 year banking or equivalent experience. W rite file UBM, c/o Northwestern Banker. (PA) $300 m illion NW Iowa bank has immediate opening for CORRESPONDENT BANKER. Need two-three years len ding experience or correspondent banking background. Some overnight travel. Excellent advancement and benefits. Submit confidential resume to Personnel Depart ment, Security National Bank, P.O. Box 147, Sioux City, Iowa 51102. Equal Opportunity Employer.___________ (PA) V.P.-AG LENDING— Number tw o position in rural SW Iowa bank near metro area. Several years’ ag lending ex perience necessary. Salary commensurate w ith ability. Send resume and salary requirements to Mike Keim; 9691 Meadow Drive; Omaha, Nebr. 68114. (PA) Marketing Bank Services Since 1974 SENIOR OPERATIONS OFFICER $180 million core bank of growing holding com pany. Ideal candidate will be from related size bank with seasoned experience in general operations; particularly in customer contact areas, DP, plan ning and product/service development. Salary com mensurate. Aggressive northeast Iowa locale. Send resume/salary needs to Peoples Bank & Trust, P. Petersen, AVP Human Resources, P.O. Box 360, Waterloo, IA 50704. (PA) AA/EOE B . « . MATT SCOTT Serving Banks in Iowa and Minnesota INDEPENDENT SERVICE COM PANY P.O. Box 171 • Albert Lea, MN 56007 507/373-8216 POSITION WANTED POSITIONS AVAILABLE LOAN OFFICER—eight years experience. Assistant vice president level. Desires relocation. Recent commercial lend ing emphasis. Write file UBN, c/o Northwestern Banker. (PW) Estate Appraisals AGRILOAN—manage Ag department in $50MM communi ty bank. Prefer degree and 4 yrs. + experience. $28K BANKERS AVAILABLE Purchase o f Collections COMMERCIAL LOAN— large suburban bank affiliated w ith multi-bank holding company seeks addition to staff. W ill supervise junior officers. $36K CEO w ith proven high performance record in community bank seeks new opportunity......................... Salary $45,000 Commercial Lenders w ith experience ranging from three to 20 years..................................................Salary to $50,000 Sale o f Rare Coins Senior Ag Lenders w ith experience ranging from 5 to 20 years........................................................... Salary to $40,000 Reliable and respected service for over 20 years Junior Ag Lenders w ith one to five years experience. ..................................................................... Salary to $25,000 Administrative Officers w ith major banking experience. ..................................................................... Salary to $50,000 Installment Lenders w ith over five years banking ex perience......................................................Salary to $25,000 Operations people w ith over five years experience............. ...................... ..............................................Salary to $30,000 If you are considering an additional officer, we have dozens of qualified applicants listed in most job cate gories. W rite or call Malcolm Freeland c/o Freeland Finan cial Services, Inc., 1032 Carriers Bldg., Des Moines, IA 50309. Phone 515/282-6462. Employer pays reasonable fee. Used by bankers throughout the midwest Ben E . Marlenee Coins 913 Locust Des Moines, Iowa 50309 515-243-8064 INSTAL. LOAN—handle all Consumer loans and some Commercial lines fo r $25MM com m unity bank in central Missouri. $20K OPERATIONS OFFICER— responsibility fo r all operational departments plus regulatory reports. $55MM bank. $32K PRESIDENT—medium size com m unity bank needs strong CEO w ith Commercial and Ag background. Degree de sired. Open REAL ESTATE LOAN—generalist Real Estate loan back ground and some experience w ith secondary market. Man agement position. $30K Resume' and salary inform ation requested. TOM HAGAN & ASSOCIATES of Kansas City 2024 S w ift - Box 12346 North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970” Vol. 12 No. 15 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $18.00 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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