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Vol. 13 No. 17

Des Moines, Iowa

“ Behind Every Cloud . .
T IS certainly difficult to look for
any positive sign when consider­
ing a problem o f the magnitude posed
by the FD IC’s recent rescue plan for
the Continental Bank o f Chicago.
There is no question that FDIC
Chairman William Isaac handled
that pending insolvency differently
than his staff had been handling a
number o f smaller bank insolvencies
when d ep ositors in excess o f
$100,000 were put at risk with other
general creditors.
Because o f the magnitude o f the
effect a Continental failure could
have had on hundreds o f other
banks, and the econom ies o f all their
communities, as well as foreign na­
tions whose deposits were involved,
Chairman Isaac exercised an alter­
native that practically all bankers,
wholeheartedly or grudgingly, have
conceded was necessary.
However, one m ajor point seems
to have been overlooked in all the
trauma and gloom and doom talk
connected with the Continental
Bank situation: For exactly 50 years
the nation’s commercial banks have
paid insurance premiums into the
FDIC fund to make sure the depos­
its up to lim its set by Congress are
protected for bank depositors. The
system has worked, without fail, for
that entire half- century!


August 13,1984

— Real F acts

The fact that some banks and de­
positors were helped more exten­
sively than others is a separate dis­
The main fact is that the FDIC
concept has worked. Consequently,
the nation’s commercial banking
system has a m assive example in
Continental to show the public that
the commercial banking system
does, in fact, protect depositors.
Another fact is that one o f the ma­
jo r problem s facing banks today is
the com petition from non-bank enti­
ties with their incursions into the
various services offered traditional­
ly by commercial banks. An addi­
tional fact about them is that their
depositors or custom ers are not
FDIC insured!
From behind the dark cloud o f the
Continental rescue plan isn’t there a
silver lining displaying a message?
To me it says, “ American banks,
you have som ething really solid to
offer your depositors! You can offer
them what people have sought for
ages—security o f their earnings,
their savings, their investm ents.”
The message is clear and simple.
A t a time when they are being as­
saulted on all fronts by these non­
bank com petitors, banks have a su­
preme example and proof thrust
within their grasp—emphasize in a
massive and united campaign from
banks o f all sizes, through A B A and
IB A A , or in unity, hopefully, that


there is a difference and that differ­
ence for the average American is
safety o f their funds!
Perhaps the FDIC should or could
take part in such a campaign. It
would be an ultim ate beneficiary in
increased premium collections if the
deposits o f banks would increase
from those recognizing safety o f
If nothing more, such a hard-hit­
ting campaign by the banks would
help Americans face up to the deci­
sion they’re really making—do you
want to accept “ risk” o f all your
funds by dealing with a non-bank, or
do you want guaranteed “ safety” o f
the first $100,000 o f your funds in
whatever type o f deposit instrument
you choose with your commercial,
regulated bank?
For those o f the non-banks who
say, “ Y ou’re dealing with old-line,
solid, giant com panies,” one can
point quickly to the unfortunate
Continental to show that even the
great ones can have problem s—but
at least it belonged to a banking
system that was able to give it—and
its depositors—new life!
This opportunity is an immediate
one because the im pact o f FD IC ’s
Chicago action is still prominent in
the daily press. Perhaps from behind
that dark cloud has come some ray
o f positive approach that the na­
tion’s bankers should seize immedi­

AND Getting
it done for you.

Bill Sprenger


Frampton Rowland
-Z W O

John Messina
Z M -Z W o

Commerce Bank of Kansas oty A
Federal Reserve Bank of St. Louis



2 FDIC Proposes New Reg on
Minimum Capital Adequacy
The FDIC has issued for public
comment a proposed regulation to
be used in determining capital ade­
quacy o f insured nonmember com ­
mercial and savings bank. Deadline
for subm itting comments is Septem­
ber 18. It would apply to examina­
tions as well as new applications. It
would establish definitions and min­
imum requirements for primary and
total capital. The basic points are:
1. Minimum acceptable level o f
total capital to assets is 6%, o f
which 5Vz must be in primary capi­
2. Those banks below this level
will be given a reasonable time to
bring capital into compliance.
3. Higher capital levels will be
mandated for banks that exhibit
more than a moderate degree o f on
or off-balance sheet risk or other
characteristics that indicate the
need for maintenance o f higher capi­
tal levels.
4. The FDIC may require more
primary or total capital if conditions
Primary capital consists o f com ­
mon stock, capital surplus, undivi­
ded profits (less intangible assets),
reserves for contingencies and other

to make MNB
work for you.
Toll free
1- 800- 332-5991

National Bank 151

Member F.D.I.C.

Federal Reserve Bank of St. Louis

capital reserves, net worth certifi­
cates issued to the FDIC, m inority
interests in consolidated subsidi­
aries, allowances for possible loan
and lease losses, and certain manda­
tory convertible instruments lim ited
to 20% o f the other primary capital
com ponents.
* * *
Another fact that will be imping­
ing on FDIC and/or Congressional
decisions in the near future is that
foreign deposits in United States
banks are not currently subject to
F D IC prem ium charges. That
makes no difference to the m ajority
o f the nation’s banks, except that a
m ajor share o f Continental Bank’s
deposits were from abroad; there­
fore, any potential adjustm ent in
premium charges to the nation’s
banks makes them pick up the pre­
mium tab for those deposits which
were not insured.
O f the 22 banks with more than
$10 billion in deposits, it is esti­
mated by FDIC that they would
have paid $120 million additional
yearly in premiums, or a total o f
$400 million, if foreign deposits had
been included. Yet, those foreign de­
posits are, in effect, being protected
by FDIC.
It is estim ated the highest
amount, about $28.5 m illion addi­
tional, would be paid by Citibank. It
actually paid about $13.8 million,
while 74%, or $47.7 billion o f its
total deposits, were foreign depos­
its. If it had paid FDIC premiums o f
about $42.5 million on the entire de­
posit base, it is estim ated Citibank’s
net incom e would have been reduced
by 3%.
Similar reductions in net would
have resulted at a dozen o f the other
leading banks, whose foreign depos­
its range from 38% to 64% o f their
total deposits.

Iowa News
H ARTLEY: Jack Cuttell has been
appointed vice president o f the Se­
curity State Bank. He previously
was with Everly State Bank, Everly, for 12 years as a vice president.
HORNICK: State Savings Bank in
H om ick has made application to the
Iowa Banking Department to relo­
cate its main office to Onawa and es­
tablish a bank office in H om ick. A
hearing will be held August 15 to de­
cide on the application.
M ANCHESTER: Eric C. Anderson
has been prom oted to assistant vice
president o f the Farmers & Mer-

OSKALOOSA: John Pothoven, ex­
ecutive vice president o f Mahaska
State Bank has been named president. He succeeds R ussell S.
Howard, Jr., who will remain as
chairman. In addition, Rex Blom
has been advanced to executive vice
president from senior vice president.
Mr. Pothoven joined the bank in
1976 as vice president and loan offi­
cer. Mr. Blom has been with the
bank since 1966 and has served the
past five years as head o f the loan
RENW ICK: Two applications in­
volving Renwick Savings Bank will
be decided on at a hearing scheduled
for August 15 by the Iowa Banking
Department. The first is for Ren­
wick Savings Bank to dissolve its
corporate existence. The second is
for Hawkeye Bank & Trust o f Humboldt to purchase and assume the
assets and liabilities o f Renwick
Savings Bank and establish an of­
fice in Renwick.
STANW OOD: July 30 marked the
com pletion o f a merger o f the
Clarence Savings Bank with the
Union Trust and Savings Bank o f
Stanwood and Olin, form ing Com­
munity State Bank. The merged
bank, which will have facilities in
Clarence, Stanwood and Olin, has
total assets o f $50 million. Only one
personnel change has occurred with
the merger, according to Bob Bunn
president, and that is the hiring o f
David Detwiler from Amboy* 111., to
serve as vice president and office
manager at the Stanwood branch.
Loren M ortvedt will remain in Olin
as vice president and office manager
and Tom Jepson, executive vice
president, will manage the Clarence
W H EATLAN D : Douglas A. Gibson
has joined the staff o f First Trust
and Savings Bank as assistant vice
president and office manager at the
Dixon Branch. Mr. Gibson m ost recently was a loan officer at the
Grand Mound branch office o f First
National Bank o f Clinton.












Nebraska News


The Nebraska Bankers Associa­
tion is conferring with State Bank­
ing Director Roger Beverage about
the assessments announced by the
banking department for state char-


Supplement to Northwestern Banker Newsletter 8-13-84

There's no substitute
for finely-tuned
investm ents!
hen it com es to investm ents—
long-term or short-term -r- nothing
outperform s q u ality.. ;
And when it com es to quality, no one beats
the outstanding track record of United Missouri’s
Investm ent Banking Division. Sound bond
portfolio recom m endations are our business.
They have been since the 1920’s.

> You can rely on our ability to adapt in this
changing financial world. Today and tomorrow,
your bond portfolio will benefit from our
consistently high standards.


C all or w rite United Missouri Bank today.
W e’v e m astered the art of quality.


Investm ent Banking Division

of Kansas C ity n.a.
Member I DIC

United we grow. Together.
10th and (irand o P.O. Box 22b
Kansas City, Missouri 64141 o{816) 556-7200
Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis









tered banks in the 1984-85 fiscal
The new schedule boosts the hour­
ly charge by 25%, from $24 to $30
an hour, and the asset-based assessment by 300%, from 5$ per $1,000
to 15$ per $1,000.
G RAN D ISLAN D : Omaha National
Bank recently com pleted the acquisition o f Commercial National Bank
& Trust Co. o f Grand Island and
its branches, effective August 3.
This follow s Omaha N ational’s re­
cent acquisition o f Commercial Savings Co., both which were owned by
Commercial Bankshares o f Nebras­
ka. The operations o f Commercial
National and Commercial Savings
have been consolidated and reopened as full-service branch offices
o f Omaha National. Lawrence Com­
ine, Jr., has been named to serve as
senior officer in charge o f the Grand
Island operation, as well as being in
charge o f the recently acquired First
Investm ent Co., Kearney, now oper­
ating as Omaha National Bank
Kearney, a branch office.
O M AH A: John F. K otouc has been
elected president and chief executive
officer o f American National Bank.
He succeeds Harold G. Haver, who
resigned. Mr. K otouc will continue
with his present duties as president
o f three K otouc fam ily banks—
Home State Bank & Trust Com­
pany, Humboldt, State Bank o f Elk
Creek, and The Dawson Bank.

Minnesota News




BLUE EARTH : August A. W il­
liams has been elected president o f
First Bank Blue Earth. He succeeds
Peter L. H ollister, who has accepted
a position with Security State Bank
o f Cannon Falls. Mr. W illiams pre­
viously was senior vice president o f
agricultural lending at First Bank
Rochester, where he had been associ­
ated since 1962.

ties o f Guaranty State Bank have
South Dakota News
been assumed by Shelard National
Bank, St. Louis Park. Guaranty ALCESTER: W illard J. Lenners has
State Bank was closed July 19 and been appointed vice president and
reopened July 20 as a branch o f senior loan officer o f the State Bank
Shelard National Bank. Shelard Na­ o f Alcester. He previously served
tional has agreed to pay the FDIC a tw o years as the senior loan officer
purchase premium o f $1,710,000 at First National Bank, Council
and purchase G uaranty S tate Bluffs, Iowa, and 12 years as vice
Bank’s instalment loans and certain president o f Bank W est, N .A.,
other assets. The FDIC will advance Pierre.
cash amounting to $14.4 million to VERM ILLIO N : Ron W right has
Shelard National and retain assets been named vice president and man­
o f the failed bank with a book value ager o f American State Bank in Ver­
o f approxim ately $17.3 million.
million. He replaces Jerry Paulsen
who is returning to American State
in Yankton. Mr. W right joined the
Illinois News
Vermillion bank from Oakland Sav­
The Illinois Bankers Association, ings Bank in Oakland, Iowa. He pre­
along with the Independent Commu­ viously was with American State in
nity Banks in Illinois, Illinois Farm Yankton for seven years before m ov­
Bureau, Farmers Home Adm inistra­ ing to Iowa.
tion, Illinois Cooperative Extension
Service and Farm Credit Banks will
Wyoming News
be co-sponsoring tw o Agricultural
Neal T. Allred has been
Lender conferences to be held Tues­
president and man­
day, August 21 at the Ramada Inn,
department at
Rock Falls, and W ednesday, August
29 at the Holiday Inn, Jacksonville. W yom ing National Bank. Mr. AllEach o f the two conferences will red previously was vice president
include a presentation by extension and manager o f the real estate de­
specialists and federal bank exami­ partment at First Interstate Bank
ners. Attendees will also be chal­ in Kalispell, M ont.
lenged by sample case studies,
which will involve credit analysis.
The conferences will be held from 1-8
p.m. on each day.
W H EELIN G : Cole-Taylor Financial
Group, Inc., based in Chicago, has
signed a letter o f agreement to ac­
quire W heeling Trust & Savings
Bank. Under terms o f the agree­
ment, Wheeling Trust would be
merged into Main Bank o f Chicago
and assume the Main Bank name,
according to a join t statement by
Chairman Sidney J. Taylor and De­
puty Chairman Irwin H. Cole.

Wisconsin News

RICE LAK E: Alan G. Cronk has
been prom oted from senior vice pres­
M IN N EAPOLIS: The Federal Re­
ident to chief executive officer o f the
serve Bank o f Minneapolis recently
Dairy State Bank. A s the bank’s top
named Theodore E. Umhoefer, Jr. as
executive officer, Mr. Cronk suc­
vice president, responsible for the
ceeds Harvey E. Lorfeld, who re­
bank’s personnel department. Mr.
signed as president in M ay. Mr.
Umhoefer joined the bank in 1974 as
Cronk joined the bank in 1976 and
a management science analyst.
was advanced to vice president in
ST. PAUL: The deposits and liabili­ 1982.
Federal Reserve Bank of St. Louis

BIG PIN EY: Dale Smith has been
named vice president and senior
loan officer o f First W yom ing Bank,
N .A. - B ig Piney. He started with
First W yom ing Bancorporation in
1981 at the Kemmerer affiliate.

Montana News
The Montana Bankers A ssocia­
tion, in cooperation with the Am eri­
can Bankers Association, will pre­
sent an Insurance and Risk Manage­
ment Seminar September 13 at The
Colonial Inn, Helena.
Instructor for the seminar is
Stephen L. Marley, president o f
Marley & Associates, Inc., Coral
Springs, Florida, and a nationally re­
cognized bank insurance expert, se­
curity management educator, au­
thor and consultant.
The seminar will begin at 8:30
a.m. with registration and run until
4:30 p.m. Registration fee is $150 for
the first registrant and $95 for each
additional registrant from the same
bank. For more information contact
the Montana Bankers Association.

Rates are $5.00 per line per
insertion. Add $3.00 for file
letters per insertion. Identity of
file letter advertisers cannot be

orth w estern


Ag Banking Positions
Let us help you. Call the ag lending personnel
specialists without cost or obligation. Confidential.
Employers pay us to hire the best.

Sr. Ag Lender for large Minnesota bank. Must be experi­
enced in handling large ag credits........ Salary to $45,000.


Sr. Ag Lender for major Illinois bank. Must be experienced
in working with large ag business customers and larger ag
c re d its ........................................................Salary to $49,000.

Jean 515/263-9598 if
no answer, 712/779-3567
Massena, Iowa 50853


Commercial Lender/Mgtmt, No. 2 in $45mm bank
near twin cities,
Trust Officer, Employee Benefit Administration
and Investments in $120mm bank, Central IA,$30K
Ag Lenders, 8 openings in MN, IA, SD, NE, to $40K
All inquiries are held confidential. Contact Bar­
bara Ritta
6818 Grover, Omaha, NE 68106 (402) 397-2885

Banking, Financial & Business Personnel
Iowa and Nationwide

714 U.C.B. Building, 515-283-2545
Des Moines, Iowa 50309

Confidential Consulting, including:
LOANS—Ag & Commercial: Prob­
lems, Workouts, Documentation,
Act now—save Capital!
Chris Pappas, Principal
27 Years’ Banking Experience
4020 Woodland Plaza #12
West Des Moines, la. 50265
515 225-1625

Estate Appraisals
Purchase of
Sale of Rare Coins
Reliable and 'respected serviee
for over 20 years
lised by bankers
throughout the midwest

Ben E . Marlenee
913 Locust
Des Moines, Iowa 50309
. 515-243-8064

CEO for Nebraska community bank. Excellent opportunity
............................................................................. Salary open.
Sr. Ag Lander for large Wisconsin bank. Must have experi­
ence in major ag credits and ag degree .Salary to $45,000.

306 - 15th Street
Des M oines, Iowa 50309
Phone 515/244-8163


Financial Careers
CEO for $60 million bank in midwest city of 35,000. Experi­
ence in commercial lending and administration essential
............................................................................. Salary open.

for an experienced commercial lender to fill number two
spot in $16MM bank. Knowledge of bank operations useful
but not required. Send resume and salary requirements to
President, P.O. Box 5003, Great Falls, Montana 59403. (PA)
AG LOAN OFFICER-lmmediate opening for ag loan officer
in $24 million western Nebraska bank. Salary and benefits
commensurate with experience and background. Farm
credit system experience a plus. Emphasis on cash flow
lending and ability to analyze credits. Insurance licenses a
plus with good opportunity to earn substantial premiums.
Send resume and salary requirements in strict confidence
to: file WBW, c/o Northwestern Banker.

Trust Officer to handle trust and estates and make up tax
reports. Investmentexperience and law degree not neces­
.Salary to $35,000.
Commercial Lender with experience in handling larger
credits. Texas location. Excellent opportunity..................
......................................................................Salary to $50,000.
Commercial Lender for major Oklahoma institution. Must
have experience in large credit lines, cash flow, etc...........
......................................................................Salary to $50,000.
Number Two man for $30 million Illinois community bank
located on major duck flyw ay................ Salary to $38,000.
Ag Lender wanted by southern Illinois bank of $60 million
located on major goose fly w a y !.............. Salary to $26,000.
Number Two person for larger northern Iowa bank. Must
have both commercial and ag lending experience. Former
examiner background a p lu s ................... Salary to $42,000.
Operations person with experience. To head all operations
in $60 million bank in Io w a ....................... Salary to $35,000.
Installment person with a year or so experience wanted by
community bank in eastern Iowa for compliance/collections and lending..................................... Salary to $18,000.
EDP Auditor for billion dollar bank. Wisconsin location . . .
......................................................................Salary to $35,000.
We have many other opportunities. Call or write Malcolm
Freeland or Cy Kirk at Freeland Financial Service, Inc.,
1010 Equitable Building, Des Moines, Iowa 50309. Phone
515/282-6462. Employer pays reasonable fee.

Available on a permanent or temporary basis in an
on line or advisory capacity for:
22 years experience in acquisitions and liquidations,
write: WBX
c/o, Northwestern Banker
— All Replies Confidential —

ONE MOSLER WALK-UP WINDOW 26” x 56” W/Built in
microphone and speaker. Contact: Mary Jo Meyer, Waukon
State Bank P.O. Box 246 Waukon, IA 52172. Phone


A N D - Q j J J ) A S S O C IA TES

"Successful Banking is Quality Personnel"

If you would like to be informed of positions as they
become available and if you are interested in chang­
ing your present position, send your resume or
phone Don Schooler, 417-882-2265, 2508 East
Meadow, Springfield, Missouri 65804. Information
on you will be kept confidential until you are inter­
ested in a specific position.
Eighteen years of banking serving as President of
rural and metropolitan banks enables me to match
you, technically and personally, with the right bank­
ing environment.

Missouri, Iowa Oklahoma, Kansas, Arkansas,
Illinois, and Nebraska
DIRECTOR, HUMAN RESOURCES, metro bank..........
.............................................................................. $40,000-$ 50,000
PRESIDENT, CEO, $15,000,000 bank..........................
........................................................ $35,000 Minimum
ASSISTANT CONTROLLER, population approx.
50,000................................................. $20,000-$25,000
PRESIDENT, New Charter.............. $50,000 Minimum
INSTALLMENT, #2, large bank, over 100,000 popula­
tion ................................................... $25,000 Minimum
Bank, ideal to w n ..............................$40,000 Minimum
COMMERCIAL LENDER, $60mm bank, population
approx. 35,000.................................$30,000 Minimum
HEAD CASHIER, $35mm bank, high growth area . . .
.........................................................$25,000 Minimum
PRESIDENT, $40mm bank, small town, excellent
benefits............................................ $40,000 Minimum

Omaha National Bank has a unique opportunity
available for an individual with a strong back­
ground in accounting and/or commercial banking.
Position involves marketing and servicing of true,
conditional sale and tax exempt leases. Success­
ful candidate will preferably possess: CPA and/ or
2-3 years bank operations experience including
leasing or commercial banking; a degree in ac­
counting, finance, or related area; customer con­
tact experience and abilities; effective oral and
written communication skills; ability to market
bank products and services required. Position of­
fers excellent compensation and benefits pro­
gram. If qualified, please apply to:
17th & Famam
Omaha, NE 68102
Equal Opportunity Employer

PRESIDENT - $30MM community bank. Requires ag and
commercial lending background................................. $Open
COMMERCIAL LOAN - $100MM + bank with growth poten­
tial. Need five yrs. or more comml. lending and good busi­
ness development skills...................................................$35K
JR. COMMERCIAL LOAN • background in instal. credit,
with some exposure to commercial lending for $25MM
bank.................................................................................... $25K
SR. AGRILOAN - responsibility for all agricredits in $40MM
rural bank. Opportunity for promotion to EVP...............$38K
Additional opportunities available in midwestern states
for experienced bankers.

2024 Swift - Box 12346
North Kansas City, MO 64116
“ Serving the Banking Industry Since 1970”

Vol. 13 No. 17 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306 Fif­
teenth 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.
Federal Reserve Bank of St. Louis