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• August 5,1985 Des Moines, Iowa Vol. 14 No. 16 A B A Supports Loan Loss Reserve By BEN HALLER, JR. Publisher 0 ^ 0 0 # # • SPOKESMAN for the American A Bankers Association testified July 26 before the House Ways and Means Committee that the Adminis tration’s proposal to eliminate the reserve method of accounting for loan losses by banks is “ unfair, inequitable, and contrary to the na tional interest.” John R. Petty, chairman and CEO of Marine Midland Bank, New York, speaking for the A B A as a member of its Government Relations Coun cil, added: “ If a bank were not per mitted to deduct both its cost of funds and a recognizing interest from a loan, the bank would be paying taxes on phantom profits. Banks should pay taxes on an ongoing basis on their pretax profits after deducting the cost of funds and a p rov ision for exp ected credit losses.” All of this hassle over commercial banks’ loan loss reserve must be bringing a smile and a twinkle to the eye of a delightful Irishman named Emmett W. Rossiter, who is un doubtedly viewing these proceed ings from a comfortable vantage point in heaven. Mr. Rossiter was just a plain, old-fashioned “ country” banker who organized the Bank of Hartington in northeastern Neb raska in 1934. Mr. Rossiter died in April, 1951 at the age of 63. But before he died, Mr. Rossiter created a few ripples that have had lasting effect in the banking indus try. Single-handedly he doggedly pursued his concept of allowing banks to set up a loan loss reserve before taxes. Mr. Rossiter’s son, Vincent E. Rossiter, Jr., now chair man of the Bank of Hartington, re calls that his father was pursuing this idea just prior to W W II, but it was put on hold until the war ended in 1945. Emmett Rossiter again began stumping for his plan, gaining the support of the Nebraska Bank ers Association. Shortly after joining the maga zine in 1945, we had the privilege of meeting Mr. Rossiter and heard him address the 1946 N BA convention in Lincoln on the topic, “ Loss Re serves Before Taxes.” Part of our re port on his talk quoted Mr. Rossiter as saying, “ This legislation would aid bankers to more nearly attain impregnability of financial structure through providing a definite method whereby banks might establish loan loss reserves in years of good earn ings against losses in years of de pression and lean earnings.” Mr. Rossiter said further this bill was proposed unsuccessfully to the reso lutions committee at the national A B A convention in Chicago a month earlier. Our report quoted him as saying, “ the only way to get action on it is for small banks, which compose 80 percent of the A B A , to all become interested to act on the bill.” Mr. Rossiter was like a tenacious bulldog with his firm belief in the loan loss reserve concept. By con stant traveling back and forth to Washington and New York, tele phoning around the country and writing volumes of letters, Mr. Ros siter saw his idea come to life on De cember 7, 1947, as Mimeograph No. 6209 of the Commissioner of Inter nal Revenue, titled, “ Reserve Method of Accounting for Bad Debts in Case of Banks.” The for mula was based on the average loss experience on the loans of an indivi dual bank over the past 20 years. It was then embraced and endorsed by A B A , IB A A , and all banks in the nation. Today, very few people remem ber, know or care that a wise coun try banker from a small Nebraska town set the stage for a banking pro cedure that is playing a crucial part in today’s loan crisis in so many banks. Even fewer people know that after his idea was adopted, Mr. Ros siter added up his business expenses he paid from his own pocket in con nection with pursuing his idea and when they totaled $1,800.00, he entered that total on his income tax SPRENGER, ROWLAND AND Getting MESSINA it done for you. ^ ^ Bill Sprenger Frampton Rowland John Messina 234-2625 234-2485 234-2486 Commerce Bank ofKansascity' M E M B E R FD IC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T oTelephone lan h n n a I R OTd-Onnfl (816) 234-2000 » 2 Norwest Bank Des Moines, N.A. Call (515) 245-3131 or toll-free (800) 362-2514 NORMEST BANKS ammatt. Member FDIC nui f f Teamwork: one of the reasons we’re first in Iowa. Lowell Barkley return as a deduction. The IRS, which adopted his suggested loan loss reserve, promptly stamped his deduction—“ Rejected!" □ Iowa News Four one-day workshops will be held around Iowa to introduce the Residential Real Estate Forms and Procedures Manual. They will be Aug. 26 at the Ironmen Inn, Iowa City; Aug. 27 at the Airport Inn, Des Moines; Aug. 28 at Maxwell’s Harbor House, Storm Lake, and Aug. 29 at the Sheraton Inn, Mason City. Registration for each work shop will be at 8:30 with adjourn ment at 3:00. Fee includes refresh ments and lunch and if paid in ad vance is $60 for members, $75 for ASK TERRY MARTIN to make MNB work for you. Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A 'BANKS OF IOWA' BANK GRINNELL: Stanley C. Lubben has joined the Grinnell State Bank as assistant vice president in the loan department. He was previously as sociated with the Iowa State Bank in Clarksville for 17 years. subscribers and $90 for non-mem W ATERLOO: Otto W. Thomas has bers. A t the door the fee is $20 addi been elected president o f Waterloo tional. Register through the IB A of Savings Bank, effective August 19, succeeding Dale DeKoster, who re fice in Des Moines. tired recently. Mr. Thomas moves CEDAR FALLS: A t Norwest Bank from Youngstown, Ohio, where he Cedar Falls Mark A. Long has been was executive vice president of promoted to assistant vice presi Bank One o f Eastern Ohio, N. A., for dent-commercial banking and Duane the Bank One northern region. A. Amhof has been appointed com mercial banking officer. Mr. Long Nebraska News has been with Norwest since 1981 The Nebraska Bankers Associa and with the Cedar Falls bank since 1984 as a commercial banking of tion will host its annual NBA A g ficer. Mr. Am hof has been with Nor Credit Conference in Lincoln at the west since 1983 and with the Cedar Comhusker Hotel, September 5-6. Falls bank since 1984 as a commer Registration is at 8:30 a.m. Thurs cial banking representative and day; program starts at 9:00 a.m.; luncheon Thursday noon will have credit analyst. Nebraska Football Coach Tom CLINTON: Wayne V. Jungjohann, Osborne as speaker. After a recep vice president of Iowa State Bank, tion and open dinner hour, regis Clinton, announced his resignation trants may attend a special ap to the board last month. He joined pearance of “ Alabama." The confer the bank in 1958 and has served in ence concludes with a Friday lun various capacities. Since 1981 he has cheon that features the A g Recogni managed the 7th Avenue South of tion Awards. fice of the bank. He has indicated he * * * is leaving the bank to pursue other First National Bank of York, career and business interests. First National Bank of Bradshaw, DES MOINES: A t Norwest Bank The Blue River Bank, McCool Junc Des Moines, three were recently tion and the Farmers & Traders named vice presidents. Patricia L. Bank, Waco, Nebraska have filed Hanson, formerly vice president and with the Comptroller of the Curren controller for the bank, has been cy an application to merge the four named regional vice president and banks. The principal office of the controller for Region IV of the cor merged banks will be at The First poration and chief financial officer of National Bank in York and the other the bank. Mitchell A. Christensen three banks will operate as branches has been named senior vice presi at their present locations. All four of dent and cashier in charge of opera the banks are owned by First York •Personal • Prompt •Professional Toll free 1- 800- 332-5991 Merchants National Bank 151 tions. The Des Moines operation de partment includes the consolidated operations function of six Norwest affiliates in Region IV. Cara Heiden, previously assistance controller, has been named senior vice president and controller. H. PETER DEROSIER Vice President Count On Our Correspondent Bankers mm 1Ë1 MARK CHRISTEN Vice President Valley National Bank ■§■ DES MOINES, IOWA 50304 Member FDIC A BANKS OF IOWA BANK Call toll free (800) 622-7262 3 Call on the “Experienced Professionals” Ready to meet your correspondent needs. • ^ ^ 0 • • • ^ 0 0 • 0 0 Ban Corp, a bank holding company, which is owned by Robert V. Jones and C.G. “ Kelly” Holthus, who have been active in banking in York and York County for the past 35 years. FAIRFIELD: Hastings State Bank received approval July 11 from the Nebraska banking department to open an office here, replacing The Fairfield State Bank, which was closed by the banking director May 31. The new office is expected to open in the old Fairfield bank quarters in early August. Guide Rock State Bank also applied for an office in Fairfield, but its applica tion, filed two days after approval of the Hastings application, was then denied. LINCOLN: First National Lincoln will host its 25th Correspondent Bank Conference at the Comhusker Hotel September 6-7. There will be a reception in the First National across the street from the hotel Fri day evening. The Saturday program will feature the traditional A g Panel, followed by an 11:00 a.m. brunch, after which guests will adjoum to nearby Memorial Stadium for Nebraska’s opening football game with Florida State. ^ F irs t N a tio n a l L in co ln " '" m a , m fectively as commercial loan offi cers. Approximately 110 bankers are expected to attend this year. * * * BENSON: James E. Hella has been elected president of the First Securi ty State Bank. He previously served as president of Farmers State Bank o f Lake Benton. Donald C. Minchow was named vice president o f the bank. He previously was with Swift County Bank in Benson. H IGH LAND: American National Bank has named John D. Turner vice president and manager of its new detached facility in Highland. He most recently served as presi dent of The Highland Bank, where he was employed since 1969. M IN N EAPOLIS: Norwest Bank Minneapolis has appointed four vice presidents. Ronald T. Whitcomb has been named vice president, metro business banking. He most recently served as manager of metro busi ness banking and senior manager at the 615 N. 7th St. branch as well as manager of the Metro Business Banking Center at 1221 Nicollet Ave. Anthony M. Pasko has joined the bank’s corporate banking group as a commercial banking representa OM AH A: FirsTier, Inc., a Neb- tive in the real estate development raska-based financial services com department of the special industries pany, has formed a new subsidiary division. He was previously a vice that will offer consulting services to president for First National Bank of banks in the region, called FirsTier Chicago. Douglas S. Pearson was Management Consultants, Inc. Ron- named vice president in the corpo aid L. George will serve as president rate banking group’s regional corpo of the subsidiary. He was previously rate banking division. He joined the regional director of special surveil bank in 1983 as assistant vice presi lance for the U.S. Comptroller o f the dent and senior commercial banking Currency’s Kansas City office and is specialist. Garrett W. Boss was also a former employee of FirsTier named vice president in the trust in dividual services area of capital subsidiary Omaha National Bank. management and trust. He joined PAPILLION: J. Sid Dinsdale has the bank in April as senior portfolio been named president o f Bank of manager in trust capital manage Papillion. He was formerly execument services. tive vice president of the Fort Lupton State Bank, Fort Lupton, Colo M INNEAPOLIS: David G. Herzer, senior vice president of administra rado. tion for First Bank System and a Minnesota News former Wisconsin bank president, The Minnesota Bankers Associa has been named president of the tion Commercial Lending School First Bank System Foundation and (CLS) will be held August 11-16 at senior vice president of public af St. Olaf College in Northfield. Ac fairs. He succeeds Lloyd L. Brandt, cording to CLS Adm inistrator who retired July 31 after 12 years in Wayne Berthiaume, the p r o g r a m the company’s public affairs depart glims to prepare bankers to serve ef ment. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis streets, uncoin, ne e^ oT " South Dakota News The South Dakota Bankers A sso ciation will sponsor a Qualified Plan Seminar (formerly Keogh) on Aug ust 28 at the Holiday Inn in Mit chell. Reigstration will begin at 8:30 and the seminar will conclude at 4:30. Fee is $95; register through the SDBA office in Pierre. North Dakota News BISM ARCK: Steve Jacobsen has joined Norwest Bank Bismarck as senior vice president-loan adminis tration. He has been associated with Norwest since 1971, most recently as senior vice president at Norwest Bank Wahpeton. Wyoming News GLENROCK: First National Bank was closed July 23 on order of H. Joe Selby, Acting Comptroller of the Currency. The deposit liabilities of $17 million were assumed by Na tional Bank of Glenrock, a newlychartered bank, which paid FDIC a premium of $9,000. Montana News BILLINGS: Keith D. Cook has been promoted to vice president-commer cial loan department at First Inter state Bank o f Billings. He joined the bank in 1984 as an assistant vice president in commercial lending. BUTTE: A t First Citizens Bank of Butte, Erin Goosey, formerly vice president and cashier, has been named chief executive officer. Charles F. “ Bud” Brasier has been elected vice president, commercial loan officer. Both were formerly with Montana Bank System. FARM REAL ESTATE APPRAISAL SERVICES We offer farm appraisal services throughout Iowa. Our senior appraiser has 22 years’ experi ence. Our services include (1) Fully documented appraisals, (2) Estimates of value, (3) Periodic valuation updates, and (4) Special use valuations. We also offer a complete professional Farm Management service, Farm Owner and/or Opera tor Consultation and Farm Transfer services. Our name is new but our Division has been serv ing agriculture for over 40 years. Farm Management and Land Services Division First Interstate Bank ol Des Moines, N.A. Sixth and Locust Des Moines, IA 50309 Telephone: (515) 245-7009 Iowa WATTS (800) 362-1615 4 Financial Careers POSITION AVAILABLE BANK PRESIDENT—$40 million bank located in southern Wisconsin in county seat town of 3,500 people. Candidate must have prior bank management experience either as president or as senior officer of a similar size rural bank. This Job requires strong leadership ability, salesmanship, as well as excellent lending experience. Send resume to file WDN c/o Northwestern Banker. (PA) Banking Specialists G cdl . . . hJe ¿Liten! Confidentiality Maintained • Employer Paid Fees MANAQER/OFFICER— Immediate position available for individual to manage our Detached Facility. Qualified applicants must have 3-5 years banking experience; col lege degree preferred. Excellent written and oral skills are necessary as well as previous supervisory experience. Marquette Bank Columbia Heights, (612) 574-9400. (PA) CEO for $60 million independent mid-west bank. Excellent opportunity for person with good track record Salary open. CEO for $20 million bank owned by multi-bank group. Re quires strong administrative and ag lending background . ............................................................................... Salary open NUMBER TWO person for western Iowa bank. Requires ag lending background and all around banking experience .. ..................................................................... Salary to $40,000 MORTGAGE BANKER for major multi-bank holding com pany. Must have knowledge of secondary market and com mercial mortgages.............................................Salary open. TRUST OFFICER with two or more years experience for $90 million bank in college community .. Salary to $32,000 INVESTMENT OFFICER for major multi-bank holding com pany. Requires experience in bank of $200 million or more ........................................................................... Salary $50,000 DON-SCH O O LER ]r. A N D (f f iW ) A S S O C IA fË S "Successful Banking is Quality Personnel" POSITIONS AVAILABLE SENIOR LOAN OFFICER $40mm country bank, strong bank, top town and location ...................... ..........................................................$40,000-$45,000 SENIOR LOAN OFFICER $50mm suburban bank, leader in peer grou p....................... $45,000-550,000 SENIOR LOAN OFFICER $200mm, 50,000+ popu lation, administrative background............ $60,000 CREDIT REVIEW OFFICER, COMMERCIAL LENDER Small Holding Company $40,000-$43,000 PRESIDENT $15mm outstate bank, non ag .......... ........................................................................$55,000 COMMERCIAL LENDER $50mm, 3-5 years experi ence, $10mm portfolio................................. $35,000 BARBARA J. RITTA PAMELA J. SWENSON BANKING OPPORTUNITIES AG LENDER—$75mm clean N.W. IL bank. Opty dept head in 2 yrs. $30K. Contact Barbara J. Ritta. NUMBER TWO person for bank in university town. Must have commercial lending and development experience . . . ..................................................................... Salary to $40,000. MANAGER for $20 million eastern Iowa bank. Requires some experience in commercial and real estate lending .. .............................................................................. Salary open. PRESIDENTS— needed for $40mm and $50mm bks in S. MN and S. Wl. Good oppty for a Sr. Lender to move up. Salaries open. Contact Pamela J. Swenson. AG LENDERS for communtiy.banks in a variety of loca tions............................................... Salaries range to $30,000. SENIOR LENDER—$40mm S. Wl bk. Will oversee $35mm port. 10 + yrs exp. $30’s. Contact Pamela J. Swenson. For Professional Assistance Call CHIEF EXECUTIVE OFFICER $15mm 1,500 popu lation, lake area ........................................... $40,000 1- 800- 225-2885 COMMERCIAL LENDER real estate construction background, $65mm b a n k ............................. OPEN In Nebraska 402-397-2885 Many years in bank management enables me to find the right banking environment for you, com pletely confidentially. Send your resume or phone: AG LENDER for $40 million ag bank in Iowa. Position leads to number two person in the bank ................... Salary open. OPERATIONS OFFICER—Clean $30mm IA bank. 5 yrs exp. $28K. Contact Barbara J. Ritta. COMMERCIAL LENDER Metro area, 3-5 years ex perience, $20mm portfolio ........... $35,000-$40,000 PRESIDENT $70mm bank, outstate/independent, ag & commercial c re d its ............... $50,000-$55,000 COMMERCIAL LENDER with five or more years experi ence for bank of $125 million located in a city over 35,000 . ..............................................................................Salary open. CEO for independent bank in north central Io w a ................ .............................................................................. Salary open. Where will you be in your present job in five, ten or fifteen years? In a rut? Maybe you should contact Malcolm Freeland or Cy Kirk at Freeland Financial Service, 1010 Equitable Bldg., Des Moines, Iowa 50309. Phone 515/282-6462. Employer pays fee. Ag Banking Specialists PROFESSIONAL RECRUITERS Let us help with your career advancement or staffing needs. Call in confidence, without obligation. Employ ers pay our reasonable fee to hire the best. BOX 24227 • OMAHA, NEBRASKA 68124 DON W. SCHOOLER 2508 East Meadow Springfield, Missouri 65804 (417) 882-2265 BANK CONSULTING FOR LENDING BANK SALES AND PURCHASES EDDIE A. WOLF Eddie Wolf Bank Sales 7202 Maple Drive, Des Moines, la. 50322 Phone: 515/278-2271 Loan risk-rating, bank risk-rating, work-out loan assistance, documentation audit, training. 8 yrs. exp. loan review/loan officer/bank counsel. Daniel W. Hansen 3827 Llndlavlsta, Des Moines, la. 50310 Phone: 515-278-9174 POSITIONS AVAILABLE POSITIONS AVAILABLE CEO/PRES • Strong bank in healthy community seeks rural lender with leadership exp for #1 spot. Great oppty for sr man who finds career path blocked despite being well qualified to run a $20mm+ facility. $45K. AQ LENDER - Growing dept of $70mm + bank is looking to add a deg’d ag lender with 3 + yrs of ag exp in a banking environment. Some workout exp a plus but committment to job most important. $25K. RE LENDER - Excellent position in white collar college town for a experienced RE and comm’l lender. Must have mgmt skills, be a motivator, a leader and a desire for pro motion to pres. $38K. ALL FEES COMPANY PAID PARTIAL LIST OF AVAILABLE POSITIONS FOR FURTHER INFORMATION FOR THESE AND OTHER POSITIONS RESPOND IN CONFIDENCE TO: KURT ROSENCRANTS AT (515) 244-4414 AG LENDER -1-2 yrs experience. N. Central Iowa. Low $20’s TRUST OFFICER - Head a $45 million trust dept. Need 3 or more years experience. To $35K. Richard L. Beem, CPC GUMBERT EXECUTIVE EXCHANGE, INC. 11246 Davenport Street Omaha, NE 68154 Phone: 402/330-3260 Member National Personnel Associates We’re Nationwide Serving bankers quietly and efficiently. Jean 515/263-9598 (W/F) 712/779-3567 (M/T/TH) Massena, Iowa 50853 30/7 CAREERS, INC. -J AG BANKING PEFÌSONNEL SPECIALISTS POSITIONS AVAILABLE COMM’L LOAN - $100MM suburban bank with aggressive new ownership. Prefer five to seven yrs. experience in sim ilar size bank. $40K COMM’L LOAN/BIZ DEV - $80MM suburban bank affiliated with major holding company. Emphasis on new business development but need solid credit background. $35K SENIOR LENDER - $150MM suburban bank with large comm’l and real estate portfolio. Second position in bank with opportunity to advance. $Open REAL ESTATE LOAN • junior position in large suburban bank. Will assume some duties in construction and comm’l real estate depts. plus handle residential loans. $23 K AGRI-LOAN • $25MM community bank with 50% of loans in agri-credits. Prefer background in cattle financing. $30K Additional positions available for experienced bankers. K it OOII lion E.V.P. - Need 10 years or more in banking. Heavy in ag lending. Some knowledge in all areas of lending. Small Eastern Nebraska town. Will lead to CEO upon retirement of current president. $40-50K Package. Linda 515/394-5827 New Hampton, la. 50659 I 317 6th Ave, Ste. 650 Des Moines, IA 50309 (515) 244-4414 ALL FEES COMPANY PAID CAPITAL PERSONNEL SERVICE TOM HAGAN & ASSOCIATES 714 First Interstate Bank Building Des Moines, Iowa 50309 515-283-2545 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970” Vol. 14 No. 16 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 1535 Linden Street, Suite 201, 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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