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Slimmer Continental Gets FD IC Aid M ASSIVE injection o f $4.5 bil lion in capital by the FD IC into Continental Illinois National Bank & Trust Co. o f Chicago will result in “ an exceptionally strong bank with a 7 per cent capital ratio and no nonperform ing loans.” The announce ment o f FD IC ’s expected plan was made by FD IC Chairman William Isaac on July 26. The step was taken to prevent having to declare Conti nental Bank insolvent, thus avoid ing a potential disaster in the na tion’s financial markets. In announcing the financial pack age to keep Continental as a slim mer, viable bank with $30 billion assets—down considerably from its point as one o f the nation’s top 10 banks—Chairman Isaac announced that John E. Swearingen, former chairman and CEO o f Standard Oil o f Indiana, would be the new chair man and CEO o f Continental Illinois Corp. He also said W illiam S. Og den, form er vice chairman and chief financial officer at Chase Manhattan Bank in New York would be presi dent and CEO o f Continental Bank. Mr. Swearingen and Mr. Ogden knew each other well when Mr. Swearingen was a director o f Chase Bank before his retirement from Standard Oil. Both men will be paid $600,000 salaries. Chairman Isaac said the FDIC A scores o f bank failures if this were handled differently. Principal benefi ciaries have been the small banks.” Chairman Isaac said 2,100 banks, m ostly small com m unity banks, had more than $6 billion in funds in Con tinental. FDIC will assume about $3 billion loans at book value at once, and another $1.5 billion over the next three years. FDIC will make its pay ments to the Fed from proceeds o f the loans it acquires. If those loan, proceeds don’t materialize, it will have to pay the Fed from its own funds. The immediate effect, some observers say, will be that banks na tionwide possibly w on’t have any FDIC refunds this year or next year, and could face the possibility o f hav ing FD IC premiums increased, re flecting the cost to all banks to keep the safety o f the banking system in place under FDIC. The previous $5.5 billion o f credit provided Continental last M ay by a group o f m ajor United States banks will continue indefinitely. Mr. Isaac stated sim ply that if Continental re quires more money to keep it going, FDIC will provide those funds. □ will not be running the bank, but will exercise the rights o f any m ajor ity stockholder. A ll present direc tors o f Continental Illinois Corp. have subm itted their resignations. It was not known what action would be taken on form ation o f a board. The FDIC package provides it will assume $4.5 billion o f Continen tal’s non-performing loans in ex change for repaying Continental’s $3.5 billion loan due to the Federal Reserve Bank o f Chicago. FDIC also will purchase $1 billion o f preferred stock in the Continental Illinois Corp. That effectively gives it an 80% position in the corporation. If, at the end o f five years, it has lost money, it may take over any or all o f its 80% position by conversion to com m on stock, which would dilute or wipe out present stockholder equity. Chairman Isaac stressed that “ W e are doing this transaction because we have the responsibility to ensure the safety and soundness o f the banking system . W e are doing the transaction at the lowest cost.” He added it was being done without governm ent tax dollars and was not special treatment o f a “ big bank,” ‘Market Day’ Is Sept. 5 as opposed to recent failures o f The First Stock Yards Bank and “ sm all” banks. He said the ripple, or First National Bank o f St. Joseph, tidal effect, o f a Continental failure M o., will sponsor their annual “ Mar was obvious—“ You would have had ket D ay” on September 5. It will ASK DOUG KEIPER to make MNB work for you. Toll free: 1-800-332-5991 Merchants National Bank isi Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA' BANK H k H Norwest Bank Des Moines, N.A. Call (515) 245-3131 or toll-free (800) 362-2514 NORWEST BANKS Member FDIC T e a m w o rk: one o f the reasons w e’re firs t in Iowa. Gary M cClim en Tom Quinlin open at 9 a.m. with the traditional continental breakfast in the First Stock Yards Bank lobby, followed by a tour o f a local industrial plant— possibly the newly reopened Swift packing plant. Noon luncheon will be served at the W ooden Nickel restaurant in the Yards (the venerable H oof and Horn burned down last winter!) at which time bankers will get the usual mar ket update. The m eeting then will adjourn to the St. Joseph Country Club where the traditional ag panel will discuss market trends and the future, and the afternoon m eeting will conclude with a well-known speaker. “ Market D ay" will conclude with the outdoor grill steak dinner. Iowa News DUBUQUE: Robert F. Neuwoehner has been appointed senior vice presi dent for business developm ent o f Dubuque Bank and Trust Co. Mr. Neuwoehner has been em ployed the past 45 years by the St. Regis Cor poration, m ost recently as general manager o f the St. Regis Dubuque facility. W A LL LAK E: Neil Steinkamp has been prom oted to executive vice president in charge o f loan adminis tration and Dan Rodman was pro m oted to vice president o f W all Lake Savings Bank. Mr. Steinkamp has been with the bank since 1972 and was also elected to the board o f di rectors. Mr. Rodman joined the bank in 1978 as agriculture repre sentative. Nebraska News Roger Beverage, Nebraska direc tor o f banking, will conduct a hear ing in his offices August 16 concern ing the rules that would govern any implementation o f the Nebraska law perm itting a holding com pany or groups o f banks, either within or from outside the state, to obtain a charter for operating a “ credit card bank” within Nebraska. The charter could be national or state, and would be only for operation o f a credit card center, according to Nebraska law. The law was passed in 1983 and cod ified as 8-905-906. When LB1076 was passed in 1984 it expanded the law by allowing groups o f banks to be eligible for such a charter. Also, the actual operation o f such credit card services could be farmed out to a service center; e.g., First Data Re sources o f Omaha, which does na tionwide credit card operations for various card issuers. M ANN ING: James R. Johnston has been named president and a director o f Manning Trust & Savings Bank. He previously was with First Trust & Savings Bank, Alta, for seven CLEARW ATER: E. James Haggart has accepted the position o f years as chief executive officer. Professional ... Responsive... Call Mark Christen for any correspondent service. Call toll free (800) 622-7262 Valley National Bank m DES MOINES, IOWA 50304 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA BANK Member FDIC president o f the Citizens State Bank, Clearwater. Previously em ployed by the City National Bank and Trust Company in H astings for 15 years, Mr. H aggart m ost recently has served the past tw o and one-half years as president o f the Bank o f Verdigre and Trust Company, Verdigre. LINCOLN: A hearing will be held August 16 at 9:00 a.m. in Judge Cheuvront’s court to determine if he will approve a tentative agreement reached between D irector o f Bank ing Roger Beverage and FirsTier holding com pany for the latter to purchase certain assets o f the de funct Commonwealth Savings Co. Under that agreement, FirsTier would buy perform ing loans o f $307,379.77 and pay that amount, which would go to the receivership that pays former depositors. Firs Tier would have an option to pur chase within 12 months a second group o f loans totalling $2,388,306.94 which are basically delinquent, or do not have com plete credit files, or have not been contacted for some time. I f these loans can be reacti vated or restructured properly, Firs Tier also will buy those good loans. A third group o f loans, which Firs Tier will not buy, amounts to $2,679,639.70, and are flawed by al leged criminal activity, fraudulence or improper processing. FirsTier will assist Mr. Beverage in the collection o f these loans for no fee but reim bursement o f expenses only. A fourth category o f $20,690,362.44 (estimated) also will n o t be bought by FirsTier, but the holding com pany will assist in the collection/sales effort on them for pay ment o f expenses incurred, but no fee. Under the proposal, FirsTier also would purchase the Commonwealth building if it will have use o f the land lease where it stands. FirsTier would charter an S&L, insured with FSLIC and would set up accounts in it for whatever deposits the receiver ship can pay back to former deposi tors. Those custom ers could with draw the funds or leave them in the new, insured institution at com peti tive market rates o f interest. Future paym ents to form er depositors would be handled in the same fash ion. The receivership would have of fice space in the building, provided at no charge by FirsTier. O M AH A: A t Norwest Bank Omaha, N .A., Edward A . Kohout and Jack 3 CALL ON THE “PERFORMANCE TEAM” where comm on transactions are handled uncomm only well. FIRST NATIONAL LINCOLN 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. L. Shafer were prom oted to senior vice presidents. Mr. Kohout will be in charge o f the agricultural banking group and financial institutions group in addition to being president and chairman o f Norwest Bank Omaha South. Mr. Shafer is regional vice president o f human resources and will also be senior vice president o f human resources for Norwest Bank Omaha. # # ^ A 0 # • • 0 0 O M AH A: Omaha National Bank has acquired the Commercial Sav ings Co. o f Grand Island, according to John D. W oods, chairman and CEO o f Omaha National. The indus trial loan and investm ent com pany opened July 31 as Omaha National Bank Grand Island, a full-service branch o f Omaha National. W A K E FIE LD : W akefield National Bank has announced the election o f Randy Lanning as executive vice president. Mr. Lanning has been associated with Nebraska State Bank in South Sioux City for the past nine years. Donald H. Kuhl will be assuming the duties o f vice president, lending and custom er service. He has been with the bank since 1975. Illinois News SKOKIE: First National Bank o f Skokie has announced the prom o tion o f James R. Slack to senior vice president o f the support services division o f the bank. Mr. Slack has been with the bank since 1968. Wisconsin News ABBOTSFORD: Ronald D. Stephens has been elected president o f A b botsford State Bank. Mr. Stephens joined the bank in 1977 after a nine year association with M ound City Bank o f Platteville. DRUM M OND: Harvey E. Lorfeld has been named president and chief executive officer o f State Bank o f Drummond. He succeeds Raymond J. Rudnicki, who has resigned to ac cept a position with a bank in Okla homa City. Mr. Lorfeld has been serving as president o f the Dairy State Bank in Rice Lake and presi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis dent o f Citizens State Bank in Birchwood. EAG LE RIVER: Paul Jensen was recently named president o f First National Bank here. Previously with Valley Bank Green Bay for 18 years, Mr. Jensen stepped into his new po sition July 9, succeeding M elvin L. Brown who is retiring. first part o f Mr. Barrickman’s talk on the first day. To register contact the SD B A of fice in Pierre. SIO U X FALLS: Dennis Holzwarth and Stephanie Mundhenke were re cently named vice presidents at F irst Bank o f South D akota’s trust department in Sioux Falls. Mr. Holzwarth joined the bank in 1974 M ILW AU K EE: LeRoy C. Gust, and was advanced to assistant vice president o f Heritage Bank Beloit, president in 1983. M s. Mundhenke has been prom oted to president o f began her banking career in 1979 Heritage Bank’s main bank in M il when she was elected trust adminis waukee. He replaces Roger Dirksen, trator. She was named assistant vice who m oves up to president o f Heri president in 1983. tage’s holding company, Heritage W isconisn. Mr. Gust joined the Be North Dakota News loit bank in 1977 as executive vice president, was elected president o f CASSELTON: R.J. Klinkhammer the bank in 1978 and appointed se has been named president o f First nior vice president o f Heritage W is Am erican Bank o f Casselton. He consin that same year. succeeds R.T. Carley, who has served as president since 1957. Mr. Carley will continue to be active in the bank as chairman. Mr. Klinkhammer, who also was elected to the board, had South Dakota News The South Dakota Bankers A sso been serving as vice president in ciation is sponsoring a Commercial charge o f operations since January, Loan Seminar August 28, 29 at the 1983. This is the first tim e that the bank’s president has been someone H oliday Inn, M itchell. The first day o f the seminar will outside the Carley fam ily. The bank run from 1-4:30 p.m ., and from 8:30 was founded in 1920. a.m. to 3:00 p.m. on the second day. Montana News John Barrickman, senior vice president o f Bank Earnings Interna G R E A T FALLS: Jerome S.C. Nel tional, Atlanta, Ga., will open the son has been named vice president seminar with a presentation on and senior credit officer at First “ Loan Origination and Documenta Bank Great Falls. He has 20 years o f tion.’’ He will continue with his pre banking experience and has spent sentation through all o f the second his entire career with affiliated day. A presentation on “ Loan Origi banks o f the First Bank System in nation and Docum entation with the areas o f retail banking and real M icro Computer Dem onstration” estate finance. He joined First Bank by Don Cheatham, Computech, Inc., Great Falls in 1975 as manager o f Minneapolis, Minn., will follow the the real estate loan department. An important new profit center for your bank: ■ Contact: Leroy Bell or Milt Hennick 319-291-5412 a computerized local blllins/credit service National Bank of Waterloo 315 Esst 5th St. * Waterloo, IA 50704 Member Federal Reserve System FDIC W A N T AD S Rates are $5.00 per line per insertion. A dd $3.00 for file letters per insertion. Identity o f file letter advertisers cannot be revealed. N o rth w estern B anker 306 - 15th Street Des Moines, Iowa 50309 Phone 515/244-8163 Ag Banking Positions Let us help you. Call the ag lending personnel specialists w ithout cost or obligation. Confidential. Employers pay us to hire the best. CEO for Nebraska com m unity bank. Excellent opportunity ................................................................................ Salary open V.P.—$60 m illion bank in E. Iowa. pop. 10,000. Promis ing advancement opportunity. Requires 3-6 years cur rent bank ag lending experience. $30,000 plus benefits. Number Two person with strong ag lending background. Requires loan and collection ability in $50 million b a n k ... ..................................................................... Salary to $40,000 A.V.P.—$30 m illion Central Iowa bank, member o f ma jor holding co., choice location and position, good chance for rapid advancement. Requires 3-10 years current short term ag lending experience plus 4 year ag degree. $30,000-35,000 plus com plete benefit pack age. Ag Lender for Northwest Iowa com m unity bank. Must be experienced loan person and like small town environment ..................................................................... Salary to $29,000 Linda: 515/394-5827 New Hampton, la. 50659 ■ CORRESPONDENT BANKER We are looking fo r someone w ith 3-5 years of com mercial lending experience to work in our corre spondent bank area. Additional requirements are correspondent banking experience (or extensive AG lending experience) and a college degree w ith at least 1 year of accounting. For more informa tion phone Mary Nerhaugen 612/341-6579. Jean 515/263-9598 if no answer, 712/779-3567 Massena, Iowa 50853 aonGARraSJNC. J AG BANKING SPECIALISTS COMMERCIAL LOAN OFFICER AND CREDIT MANAGER, west central Minnesota, Independent bank. Reply to file WBV, c/o Northwestern Banker. (PA) LOAN OFFICER, $14 m illion central Illinois Bank. 2-5 years experience. Entails some operations duties. Good career opportunity. Send resume and salary requirements to State Bank of St. Joseph, L.J. Nelson, Exec. Vice-Pres., Dr. G, St. Joseph, Illinois 61873______________________ (PA) “AQ LOAN OFFICER fo r a $20 m illion bank in Central Nebraska. Minimum 3-5 years ag lending experience w ith Bank, PCA, or FmHA. Must know cash flow and farm oper ations. Salary dependent on qualifications. Send resume to: Dennis Utter, Adams County Bank, Kenesaw, NE 68956.” (PA) BANK SALES AND PURCHASES EDDIE A. WOLF Eddie W olf Bank Sales 7202 Maple Drive, Des Moines, la. 50322 Phone: 515/278-2271 AG LOAN BANKING POSITIONS We have several ag loan positions in the Midwest, in the salary range of $25-35,000. In all positions a degree is needed, plus tw o or more years o f ag loan experience. Call 402-330-3260, or send your resume to: Richard Beam, C.P.C. - Dorothy M inister, C.P.C. Gumbert Executive Exchange, Inc. 11246 Davenport Street _________________ Omaha, NE 68154_________________ SERVING PRO FESSIO NALLY Banking, Financial & Business Personnel Iowa and Nationwide CAPITAL PERSO NNEL SERVICE 714 U.C.B. Building, 515-283-2545 Des Moines, Iowa 50309 Trust O fficer to handle tru st and estates and make up tax reports. Investment experience not required. Illinois loca tio n ................................................................... Salary $35,000 CEO for $25 m illion S&L located in good Iowa com m unity. ........................................................................... Salary $35,000 Commercial Lender for large central Illinois bank. Must have three to five years experience in handling larger cred its ......................................................................... Salary open W rite or call Malcolm Freeland or Cy Kirk at Freeland Financial Service, Inc., 1010 Equitable Building, Des Moines, Iowa 50309. Phone 515/282-6462. Employer pays fee. We have many other opportunities. POSITION AVAILABLE COMMERCIAL LENDING OFFICER— Immediate opening for an experienced commercial lender to fill number two spot in $16MM bank. Knowledge o f bank operations useful but not required. Send resume and salary requirements to President, P.O. Box 5003, Great Falls, Montana 59403. (PA) Ag Lender for Southern Illinois bank o f $60 million. Bank or PCA experience. Must know cash flow and farm opera tio n ........................................................................ Salary open Number Two person for central Illinois com m unity bank of $30 m illio n ................................................... Salary to $38,000 (PA) SENIOR AQ LOAN OFFICER for a $50-mlllion bank in Western Nebraska. Minimum o f 5-10 years o f ag lending experience, salary is dependent upon qualifications. Send resume to: Commercial National Bank, Roger Weiss, P.O. Box 6, Ainsworth, Nebraska 69210. (PA) Ag Lender for northern Iowa com m unity bank. Must be self-starter with possibility of becoming second person in tw o years..............................................................Salary open Commercial Lender for m ajor Northern Iowa bank. Must have practical commercial experience.. .Salary low $30’s F & M MARQUETTE NATIONAL BANK 6th & Marquette Minneapolis, MN 55480 Affirm ative Action Employer Financial Careers CEO for bank In midwest city o f 35,000. Must know com mercial lending and have adm inistrative experience........ ..................................................................... Salary open IBM S/34 • 256 K, 128 MB. Configured fo r 1255 reader/sorter and 3262 line printer. Approx. 18 months old, under main tenance agreement. C ontact Dan Cooney, phone: 815/338-3131. (FS) Computer Services Representative Major Quad C ity financial institution has an im mediate requirement for someone to market com puter services & provide on-going service to exist ing customers. Computer sales and banking ex perience required. Send resume, including salary history to: Personnel Department, P.O. Box 77, Davenport, IA 52805. (PA) Equal Opportunity Employer. M/F DON-yScHCXXER In AND- Ciu) U ASSOCIATES "Successful Banking is Quality Personnel" If you would like to be informed o f 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 w ill be kept confidential until you are Inter ested in a specific position. Eighteen years o f banking serving as President of rural and metropolitan banks enables me to match you, technically and personally, w ith the right bank ing environment. POSITIONS CURRENTLY AVAILABLE Missouri, Iowa Oklahoma, Kansas, Arkansas, Illinois, and Nebraska DIRECTOR, HUMAN RESOURCES, metro b a n k .......... ...............................................................$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 C harter............ $50,000 Minimum INSTALLMENT, #2, large bank, over 100,000 popula tion ...................................................$25,000 Minimum COMMERCIAL VICE PRESIDENT, $50-$100mm 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 b e n e fits ...........................................$40,000 Minimum LUCY HUBER "Banking Specialist” 7625 Metro Boulevard • Suite 350 Minneapolis, Minnesota 55435 Phone (612) 835-4466 M AN A G EM EN T RECRUITERS OF MINNEAPOLIS THE SEARCH AND RECRUITING SPECIALIST BANKS FOR SALE BANK OWNERSHIP CHANGES —Our Specialty— SELLERS - if you already have a buyer for your stock and there is a question of whether or not it is a fair price • we can make an independent ap praisal. BUYERS • if you are about to purchase controll ing interest in a bank and there is a question of whether or not it is a fair price -we can make an in dependent appraisal. Those wishing to buy or sell - we can do the job for you if you are serious. CROWN BANKING SERVICES 325 W. Prospect Avenue Mt. Prospect, Illinois 60056 (312)392-5151 POSITIONS AVAILABLE AGRI/COMMERCIAL LOAN • $25MM com m unity bank affi liated w ith major holding company. Prefer degree and 2-3 yrs. bank lending experience..........................................$25K COMMERCIAL LOAN - $150MM bank seeks commercial lender with 2 yrs. commercial lending experience for mid dle management opening................................................$25K SECOND OFFICER • position requires superior agriloan skills and previous management experience. $40MM agorlented b a n k ....................................................................$36K REAL ESTATE LOAN - manage dept, for large suburban bank. Must be fam iliar with secondary market operations . ............................................................................................ $30K RETAIL BANKER - supervise consumer lending division and market consumer oriented services for $80MM subur ban bank............................................................................ $25K Several commercial loan opportunities in community banks in Iowa, Missouri, North Dakota and Nebraska. TOM HAGAN & ASSOCIATES 2024 Swift • Box 12346 North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970“ Vol. 13 No. 16 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, $15.00 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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