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December 24,1984 Des Moines, Iowa Vol. 13 No. 36 Fm HA Halts Farm Land Sales HE Farmers Home Administra tion was ordered by the USD A on December 19 to discontinue sell ing farm land taken over by the FmHA in nine midwestern states. Charles W. Shuman, administrator of FmHA sent the order to his state officials immediately and also di rected that real estate brokers with FmHA listing agreements be in formed of the action. The agency had already been act ing under the earlier request of Secretary of Agriculture John Block to adhere to strict guidelines before selling farm land assumed by the agency, because many industry observers felt these sales amounted to “ dumping” and were pulling land prices down further. It was reported that FmHA at last year-end had 2,089 farms in the United States, for a total of 488,000 acres. The nine midwestern states now affected by the new order prohi biting FmHA from selling farm land, accounted for these totals in farms and acres: Illinois, 34 and 6,000; Iowa, 75 and 15,000; Kansas, 73 and 22,000; Minnesota, 149 and 12,000; Mis souri, 198 and 42,800; Nebraska, 13 and 5,400; North Dakota, 49 and 14,000; South Dakota, 52 and 12,000, and Wisconsin, 88 and 18,000. Nebraska’s Repr. Doug Bereuter, at a December 19 press conference in T Lincoln, proposed that the state buy back from the FDIC the good and marginal loans of failed banks it takes over. Apparently, the state would then administer those loans until they could find a “ home” at an appropriate lending institution. Nebraska Gov. Robert Kerrey’s re sponse was favorable to the plan but said the federal government should perform this function, not the state. Earlier, 10 representatives of the FDIC, the Fed, the Comptroller, FmHA, USD A and Farm Adminis tration, held five meetings in the midwest with bankers and state offi cials to discuss the crisis resulting in those states from the closing of sev eral rural banks. They met in Grand Island and Lincoln on December 12, in Creston and Des Moines, la. on December 13, and in St. Joseph, Mo. on December 14. No decisions or promises were made since the participants from the regulatory and government offices were staff personnel and not policy makers. Plenty of testimony and comments were forthcoming from bankers attending, as well as from the regulators. Nebraska, for example, has lost banks in Cody, Kilgore, Verdigre (all in northern Nebraska) and David City (east central Nebraska) since Labor Day, and Niobrara late last year. All these banks were later re opened by other banks, but many of the loans were held by FDIC and those “ marginal” and “ delinquent” loans looking for a “ home” in other banks have been getting a lot of press and attention in the Cornhusker state because FDIC has been taking 100% of the proceeds of crop sales. It is estimated that $10 to $20 million in loans is involved, but the farm families affected by that proce dure are really hurting, which has re sulted in the concentrated attention in that state. Two PCAs in northern Nebraska counties also have failed. A.C. “ Skip” Hove, Jr., president of the Nebraska Bankers Associa tion and chariman of Minden Ex change Bank, Minden, said, For many, the Farmers Home Adminis tration is the only practical hope. If that agency fails to respond prompt ly to the needs in a community where an ag lending institution has failed, the entire community will suf fer an economic disaster. A multi tude of farm sales conducted during a relatively short period of time will cause irreparable damage.” He asked FmHA to take these actions: 1. The farm borrowers of failed agricultural lending institutions who apply for loans from the FmHA should be given a loan processing priority at least equal to the highest existing priority of the agency. Unless this is done, many will be li quidated, not because of a final de termination of ineligibility for loans, but because of the absence of prompt Call on the “Experienced Professionals” Ready to meet your correspondent needs. FIRST NATIONAL LINCOLN 13th & M Streets, Lincoln, Nebraska 68501 A F irslier C om pany https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member, F.D.I.C. 2 Professional ... Responsive... Call Mark Christen for any correspondent service. Call toll free (800) 622-7262 Valley National Bank i§l DES MOINES, IOWA 50304 A BANKS OF IOWA BANK Member FDIC attention to their distressed situa ka offices to handle the increasing tion. workload that they are experiencing 2. The FmHA should be directeddue to the farm crisis. to hire the temporary staff neces The ultimate objective of this aid sary to process these applications by the State to the Federal Govern without delay so that the farmers ment should be the resolution of at will know whether or not they will be least some of the producers’ financ able to operate during 1985. The ing problems in time to salvage their Nebraska Department of Agricul operations. This aid should not be ture and the Nebraska Bankers accepted unless the other steps are Association provided employee as taken which will assure the availa sistance to the FmHA for the bility of funds to make operating guaranteed loan program for a loans to new applicants who are period of eighteen (18) months which finally determined to be qualified for recently ended. The Nebraska loans. Department of Agriculture has of 3. Appropriate reallocations of fered similar assistance again to be FmHA funds should be made to ad used for any appropriate FmHA dress the crisis situation caused by programs. In addition, it is strongly failed ag lending institutions. recom m en ded that perm anent 4. Maximum cooperation between FmHA staff be assigned to Nebras- the FmHA and the FDIC, or other liquidating authority, should be mandated immediately. This is nec essary to assure that all alternatives available to each individual bor rower are given careful considera tion. 5. T h e p r o v i s i o n s o f t he President’s Debt Restructuring Pro gram for existing FmHA borrowers should be made available immedi ately to new FmHA loan applicants from these areas. In addition, the FmHA Economic Emergency Loan Authority should be renewed with appropriate safe guards against abuses to the pro gram. Another Nebraska banker told the gathering his state is getting only $89.5 million in direct loans of the $4.3 billion the FmHA has bud geted nationwide. Another banker said FDIC and regulators should be “ creative” with liquidation or take overs of community banks to the 1- 800 - 332-5991 same degree they were “ creative” in shoring up Continental Bank of Chi cago and Chrysler Corporation. In Iowa, John Chrystal, president of Bankers Trust Company, Des Moines, and a long-time ag banking Member F.D.I.C. A BANKS OF IOWA' BANK leader in Iowa, said the current farm situation is “ bordering on catas ASK JERRY TRUDO to make MNB work for you. Toll free Merchants ^ National Bank 151 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis trophe.” He pointed to high interest rates and low prices for farm pro ducts as two of the main culprits in the deteriorating farm scene. Iowa Superintendent of Banking Tom Huston pointed out that bank custo mers having difficulty translates in to banks having difficulty—and that is the scenario being witnessed in midwestern states today. The announcement by FmHA of the USD A action putting a hold on farm land sales followed those meet ings, but it is not known if that decison was a direct result or was al ready in progress. □ Iowa News CLEGHORN: The Cleghorn State Bank has announced the promotion of Bruce Schmadeke to vice presi dent and Susan Erickson to cashier. Mr. Schmadeke has been with the bank since 1982. Ms. Erickson joined in 1977. DAVENPORT: Perry Hansen has been elected executive vice president of Brenton Bank. He has served as senior vice president since 1980 and will now assume the daily manage ment of the bank. KNOXVILLE: Richard E. Magnuson has been elected assistant vice president at Community National Bank, primarily in agricultural lend ing. Previously Mr. Magnuson was with Columbus PCA in Osceola, Nebraska, as branch manager-loan officer, and with IBM Mid America Employees Federal Credit Union in Omaha, Nebraska. Nebraska News Roger L. Weiss, president and chairman o f Commercial National Bank in Ainsworth, submitted his resignation as president-elect of the Nebraska Bankers Association dur ing the NBA executive council meet ing in Lincoln December 13. He said, “ With the problems with agricul ture credits generally, and our area o f Northern Nebraska particularly, I feel that I am needed at home.” NBA President A.C. “ Skip” Hove appointed an 11-member search committee, made up of members of the N BA Executive Council. At the meeting, council members also voted to adopt the recommen dation from the recent NBA Bank ing Leadership Conference that the NBA will oppose any interstate banking legislation in the forthcom ing state legislature. Also, Max Cailen, who resigned as vice president t t at National Bank of Commerce, Lin coln , to become executive vice presi dent at City National Bank in Hast ings, resigned from the Council and his place is being taken by Tom Pot ter, NBC president. 3 An important new profit center for your bank: m 9 P • # # • 0 % ^ • ® P P BERTRAND: H.S. Kingsley, Sr. past president and past chairman of Bank of Bertrand, died November 20. Born and raised in Minden, Mr, Kingsley joined his father’s bank in Norman in 1928, and in 1939 transferred the bank charter to Bertrand, where he established the Bank of Bertrand. LINCOLN: The Nebraska State Claims Board ruled on December 18 that the State o f Nebraska is liable for deposits o f up to $30,000 for cus tomers of the failed Commonwealth Savings Company. That covers approximately 7,000 depositors. The board’s ruling was based on the state’s support of the Nebraska De pository Institution Guaranty Corp., an independent group that insured the deposits o f Commonwealth and other Nebraska industrial banks, but in fact only had a limited amount of dollars in it. This claim, estimated at $20-30 million, will go to the legislature for action. Roger Beverage, state banking director, was quoted as saying he was not op timistic for passage of the claim. OM AHA: William Dewhurst has been promoted to vice president at Norwest Bank Omaha. Mr. Dew hurst joined the bank in 1979 and in his new position will serve in the financial institutions group with re sponsibility for western Iowa, Lin coln and Omaha. OMAHA: Dallas P. Hogan has been named vice president and trust offi cer for Southwest Bank & Trust Company. Mr. Hogan previously held a similar position with First National Bank, Iowa City, Iowa. UEHLING: Uehling State Bank was closed Tuesday, December 18, by Roger Beverage, state banking director. A recent routine examina tion uncovered some disturbing records, the department stated, and this prompted follow up examina tion in the last few days, before clos ing the bank. The department dis covered “ apparent criminal irregularities,’’ according to Mr. Beverage, who in turn has contacted the appro priate authorities for further action. Uehling State Bank had assets of $4.7 million as of June, 1984, and deposits o f $3.77 million. A t press https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “ c i Contact: Leroy Bell or Milt Hennick 319-291-5412 a computerized local billing/credit service N ational Bank o f W aterloo 315 East 5 th St. • W a te rlo o , IA 5 0 7 0 4 Member Federal ReserveSystemFDlc Moines, Iowa. Mr. Levitt also an nounced that Patrick J. Kenneally, former vice president and regional manager at Norwest Financial, has joined Norwest Mortgage as execu Minnesota News The Minnesota Bankers Associa tive vice president, and William J. tion Human Resources Committee Brechtel, vice president at Norwest will sponsor a Supervisory Work Corporation, has been named senior shop Wednesday, January 9, 1985 vice president and assistant to the at the Holiday Inn Downtown, Man president of Norwest Mortgage. kato. The workshop is designed for Montana News bank personnel responsible for man BILLINGS: A t First Interstate aging and directing others. Bank of Billings, John H. Evans and Pat Coleman, president, The Keith D. Cook have been elected as Training Company, St. Paul, will sistant vice presidents. Mr. Evans, conduct the program. He is a train elected in sales and marketing, pre ing consultant with over 20 years of viously was district manager for the experience. F.W. Woolworth Company in the time it was not known if the bank would be reopened or sold. M IN N EAPOLIS: Norwest Bank Minneapolis has named Dharani P. Narayan as executive vice president, reporting to James R. Campbell, president. Mr. Narayana is respon sible for the bank’s national and in ternational departments, and will continue to manage the financial in stitutions business group. He origi nally joined Norwest bank in 1969. M I N N E A P O L I S : R o b e r t V. Gorsche has been named president of Norwest Mortgage, Inc., an nounced Vice Chairman Richard S. Levitt, who has been serving as the mortgage company’s president since August. Mr. Gorsche previously was a senior vice president at Nor west Financial, based in Des Billings area. Mr. Cook, commercial loans, previously served as an officer of Montana Bank of Billings and Montana Bank of Great Falls. G REAT FALLS: LaVonne R. Kirkhorn has been elected vice president in the commercial lending division at First Bank West. Most recently an assistant vice president, Ms. Kirkhorn has worked the past two years in credit review and compli ance functions. HELENA: Jerry Overmier has been elected vice president, cashier and chief administrative officer of First Bank Helena. He joined the bank in 1973 as a trainee and most recently has served in personnel and opera tions. Wishing You A Happy and Prosperous 1985 from: Northwestern Banker 306 15th St. Des Moines, Iowa 50309 WANTADS Rates are $5.00 per line per insertion. Add $3.00 for file letters per insertion. Identity of file letter advertisers cannot be revealed. NORTHW ESTERN BANKER 306 - 15th Street D es M oines, Iowa 50309 Phone 5 1 5 /2 4 4 -8 1 6 3 Positions Available Season’s Greetings ADMINISTRATOR of chain of 5 banks totaling $100M. Responsibilities include: checking of credits, new bus. devel. and operations of banks. FULL OF ENERGY. $35-$40,000. to AG LOAN OFF. • $95MM bk. in northern Illinois town of 30,000. Will be #2 in $10MM ag dept. Loans in good shape, and spend 20% of time in farm mgmt. and new bus. dev. Excellent advancement oppor. and full ben. pkg. Requires 1-5 yrs. ag lending exp. (Bk., PCA or FLB). 4 yr. ag degree, farm mgmt. exp. helpful. to $30,000 Linda 515/394-5827 New Hampton, la. 50659 I Jean 515/263-9598 (T/W/F) 712/779-3567 (M/TH) Massena, Iowa 50853 dnn CAREERS, INC. J AG BANKING SPECIALISTS Our Banking Friends Malcolm Freeland Cy Kirk FREELAND FINANCIAL SERVICE, INC. 1010 Equitable Building Des Moines, Iowa 50309 _ LOAN WORKOUT SPECIALIST Available on a temporary or an intermediate basis in an on line or advisory capacity for: • LOAN WORKOUTS • LIQUIDATIONS • DOCUMENTATION 22 years experience in acquisitions and liquidations, write: WBX c/o Northwestern Banker — All Replies Confidential — (PW) Let’s not DISCUSS the ag situation Let’s FIX what’s not working — Help yourself by helping your customer — Keep track of how you’re doing I’m a banker Dwayne Streeter Call me (515) 224-1223 Buy Direct From Factory — and Save! CALENDARS (1986) ADVERTISING SPECIALTIES (Serving The Banking Industry Since 1947) Send Sample - Indicate Quantity - We will quote — You Be The Judge — Standard Advertising Service, Inc. Box 432 • Council Bluffs, Iowa 51501 THANKS FOR ALL YOUR SUPPORT IN 1984 MERRY CHRISTMAS AND HAPPY NEW YEAR SEE YOU IN 1985 Richard Beam and Dorothy Minister GUMBERT EXECUTIVE EXCHANGE, INC. 11246 Davenport Street Omaha, NE 68154 Phone: 402/330-3260 POSITION AVAILABLE SENIOR VICE PRESIDENT—The individual will supervise all loan departments. Requires Bachelor’s degree plus minimum five years’ lending experience. Salary commen surate with experience plus excellent benefits. Excellent career opportunity. Contact: Steve Afdahl, President Hewkeye Bank and Trust, P.O. Box 4068, Spencer, Iowa, 51301. Member Hawkeye Bancorporatlon. Phone 712/262-1940.________________________________ (PA) AG LOAN OFFICER—with three to four years banking ex perience. Must be familiar with microcomputers, cash flow, and documentation. Please send resume and salary requirements to: Eugene Schulke, Cashier, Corn Belt State Bank, Box N, Correctionville, IA 51016. (PA) SENIOR AG LOAN OFFICER — Salary to $50,000. Oppor tunity for life-time employment. Send resume to Board of Directors, Bank of Elgin, 2nd and Pine, Elgin, Nebraska 68636. Phone: 402/843-2228._____________________ (PA) AG LOAN OFFICER — Southeastern Minnesota. Immedi ate opening in $100 million bank to work with experienced ag lender in servicing large portfolio. Ag degree required. Salary open. Applicant should have 1 - 3 years ag lending experience. Send resume and salary requirements to: President, Ndrwest Bank Faribault, N.A., Faribault, Minnesota, 55021._______________________________ (PA) CASHIER - OPERATIONS OFFICER. $40 + MM bank in Northwestern Illinois is looking for an individual with a minimum of three years experience. Accounting back ground a plus. Rèsponsibilities include tellers, bookkeep ing, Call Rèports, accruals, personnel, etc. Excellent ca reer opportunity. Send Resume’ and salary requirements to file WCN c/o Northwestern Banker. (PA) UNITED BUSINESS EQUIPMENT CORP. GLIDE FILE—36 trays and 3 levels. $1,300.00 Contact: Ruth Politsch, Hawkeye-Ankeny Bank, Box 10, Ankeny, IA 50021. Phone 515/964-8800. (FS) BANKING OPPORTUNITIES AG LENDER—2 years experience with a bank or FDIC. Bank Holding Co. opportunity, some travel To24K DO N-ÎSIcHOOLER Ir AND @ ) V) ASSOCIATES "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, 417-862-2265, 2508 East Meadow, Springfield, Missouri 65604. 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. POSITIONS CURRENTLY AVAILABLE AG LENDER—marketing emphasis To 30K NO. 2 EXEC.—in Nebraska Bank, Can buy in To50K SR. LENDING OFFICER—Nebraska Bank, Heavy workout OPEN EXEC.—$70 Mill Midwest Bank OPEN I have many other search assignments. Please call in confidence to discuss your career goals for 1985. As a banking specialist, I can assist you in that move up. Phyllis S. Lynch, President STAFF AMERICA, INC. 900 Commercial Federal Tower 2120 South 72nd Street Omaha, Nebraska 68124 (402) 391-2065 or (402) 895-1997 (evenings) Missouri, Iowa Oklahoma, Kansas, Arkansas, Illinois, and Nebraska POSITIONS AVAILABLE METRO SUBURBAN PRESIDENT, $50mm bank .. ..........................$50,000 - $55,000 (Enc. Benefits) HEAD OF COMMERCIAL, $100mm + bank OPEN COMMERCIAL LENDER, $60mm bank, 12,000 population.................................$35,000 - $40,000 COMMERCIAL LENDER, $80mm bank, 10,000 population.................................$35,000 - $40,000 HEAD OF LENDING, $120mm ba n k.................... .................................................. $50,000 - $55,000 PRESIDENT, small bank, growth area, excellent location ......................................................OPEN Serving bankers quietly and efficiently. BURROUGHS S-558 and S-595 SINGLE POCKET PROOF MACHINES. Both currently under maintenance agreement and in good working condition. Available immediately, price negotiable. Contact Mike Mattson at First State Bank, Fremont, Nebraska, Phone 402/721-2500. (FS) SR. COMM’L LOAN • $100MM community bank desires ex perienced commercial lender with administrative ex perience to oversee all lending functions................... $50K CEO - $35MM bank with majority of loan portfolio In Agri credits. Work out situation with strong capital position. .. ................................................................................... $45K PRESIDENT - small Agri bank with few classified loans. Previous administrative experience required..............$35K AGRI LOAN • branch situation. Minimum five yrs. Agri len ding experience in bank environment required.......... $35K #2 MAN, $35mm bank, small town $40,000 - $45,000 COMM’L LOAN ■prefer 5-7 yrs. comml lending experience in medium size community bank. Could be second officer within one year....................................... $35K HEAD OF COMMERCIAL LENDING, $45mm bank Metro Suburb.............................$40,000 - $45,000 Additional opportunities available in midwestern states. CAPITAL PERSONNEL SERVICE HEAD OF OPERATIONS, $300mm Metro bank . . . ...................................................................OPEN 714 U.C.B. Building, 515-283-2545 DOs Moines, Iowa 50309 PRESIDENT, $25mm bank, Agriculture oriented .. ...................................................$40,000 - $45,000 TOM HAGAN & ASSOCIATES 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970” Vol. 13 No. 36 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 dll 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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