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Vol. 12 No. 36 Des Moines, Iowa December 26,1983 1984: A Blinker’s View B y JACK R. CRIGGER President, Robert Morris Associates, and Executive Vice President, American National Bank and Trust Company, Chattanooga, Terni. HE GEN ERAL consensus is that for the full four quarters of 1984, the econo my will continue to improve grad ually from its present status. T h e ra te o f growth will not be as aggressive as other recov eries have been, yet, with a rath J.R. CRIGGER er static and low rate o f inflation, the sustained growth will be relatively solid. In terest rates should follow in tandem with the inflation rate, and, with a continued strong monetary policy, should fluctuate within 10%-15% of present levels, in either direction. The fiscal policy, wherein large budgetary deficits are planned, could have an im pact on several sec tors o f the econom y. Yet, relative to the total income and expense stream, the overall deficit burden is not considered by some to have a very strong influence. Perhaps the pub lic’s reaction to that and the rate of inflation will be a determining factor in the consumer sector as to con T sumer spending or saving. Now there could be much rhetoric on each o f the various component parts that give rise to the economic cycle and/or cycles. Government, and private spending, the money supply, monetary and fiscal policy, along with real gut feelings of the present and future are some o f the econom ic areas that are receiving attention as the econom ists suggest what may happen in 1984. Corporate borrowings collectively today are static and are expected to increase slowly over the next year. A s corporations see the need to ex pand, there will be more loan de mand, either term or short-term, de pending on the com panies’ interpre tations o f the interest rate expecta tions. Industry now has unused ca pacity in many sectors. If technol ogy in those sectors is already state o f the art, then additional capital ex penditures may not be needed in the near future. A t best, with the many alternatives to financing either capi tal expenditures or short-term needs, bank borrowings will in crease. But loan demand is not ex pected to be exceptionally strong. Corporate executives have found it profitable to operate at subsistence levels of inventories, receivables, bricks and mortar, equipment and machinery, and human resources. This awareness will prevail. Unemployment will, and should, continue to show m odest declines but will remain high by historical standards. The figure suggested for unemployment for late 1984 is 8%8/4% . The decline will come about as industry absorbs productive hu man resources which are needed on ly at subsistence levels o f opera tions, and the level o f unemploy ment will be slow in reacting during 1984. Consumer spending will increase as the econom y recovers due, in part, to real needs created by ab stinence during the economic decline. Alternative and innovative con sumer financing in housing and transportation will add incentives to further an increase and should be reflective—lag time considered—in those industries. And on and on one can go—into the government and the interna tional arenas. A ny discussion o f the econom y for the future must be tem pered with “ all things being equal,’ ’ and that’s the scenario we’ve ob served. One or several outside in fluences could cause a quick, mid course correction in any forecast for 1984. These include, but are not lim ited to, an international crisis, either political or military; excessive un rest due to overseas loans and cur rencies; a m ajor im pact caused by a change in technology; or a com plete misalignment of monetary and fiscal policy. A s stated earlier, recovery will continue. Borrowings will increase CALL ON THE “PERFORMANCE TEA M ” where common transactions are handled uncommonly well. I ninnili FIRST N A T IO N A L L IN C O L N 1 3th & M S tre e t • L in c o ln , N e b ra s k a 68501 • M e m b e r, F .D .I.C . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Norwest Bank Des Moines, N.A. Call (515) 245-3131 or toll-free (800) 362-2514 NORWEST BANKS Member FDIC Team work: one of the reasons we're firs t in Iowa. Bernle Kersey M ark Conway at a rate which should mirror in terest rates, which will remain with in certain constraints brought about by monetary control. In other words, expect more o f the same for 1984 as we’ve experienced in 1983. □ Three Midwestern Automated Clearing Houses to Merge Three automated clearing house associations in the M idwest—MidAmerica Payment Exchange, St. Louis; M id-Am erica Autom ated Clearing House, Kansas City, and A rkansas A u tom ated C learing House, Little Rock—have agreed to merge, form ing the sixth largest automated clearing house associa tion in the United States. The new organization will be known as Mid-America Payment Exchange (M PX) and will be head quartered in Kansas City, with a re gional office in St. Louis. Executives o f the threee associa tions said they expect operational and legal aspects o f the merger to be com pleted during 1984’s first quar ter. John Borden, executive director o f Mid-America Autom ated Clear ing House, will be president o f the merged group and will manage its Kansas City headquarters office. C. Thomas Jeffrey, executive director o f the current Mid-America Pay ment Exchange headquartered in St. Louis, will be executive director of the new organization and will head the St. Louis regional office. Iowa News Credit Life Licensing School will be held January 23-24, with exami nations scheduled for the 25th, at the Iowa Bankers Insurance Ser vices, Inc. office located in the Fi nancial Services Building in Des Moines. Registrations must be received by January 10. Contact Jeanette M. El lington at 1-800-532-1423 or (515) 286-4371. ASK D O U G K E IP E R to make MNB work for you. Toll free 1- 800- 332-5991 Merchants A National Bank IS I Member F.D.I.C. A BANKS OF IOWA BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B E L L E V U E : A ndrew S avin gs Bank officially opened its new Bel levue office with open house cele brations December 1-4. Application was made for the charter m ove in April o f 1982, with approval being granted in October, 1982. Tem porary quarters were set up in the building next to the building site in April of this year. Over 1,800 at tended the bank’s open house on Sunday, December 4. C A R P E N T E R : Cedar N ational Bank received approval recently to m ove its main office to 345 W est Fourth Street in St. Ansgar and for a branch office o f the bank to be lo cated at its original office location on main street in Carpenter. CLARION: Warren E. Claussen re cently joined First National Bank as assistant vice president and com pliance officer and Doyle Van Dyne has joined as agricultural loan of ficer. Mr. Claussen form erly was with First National Bank in Waverly as assistant vice president. Mr. Van Dyne has been serving as branch manager o f Production Cred it Association in Sigourney. DES M OINES: Warren Ferguson, 68, died December 16 o f a heart at tack. Mr. Ferguson served as presi dent o f Hawkeye-Capital Bank & Trust, form erly Capital City State Bank, until his retirement in 1975. LOW DEN: Duane L. Lasack has been prom oted to executive vice president and M am ell E. Scheeper to ag representative and vice presi dent at American Trust and Savings Bank o f Lowden. Mr. Lasack joined the bank in 1974 and Mr. Scheeper joined in 1961. ON A W A : Gary L. Grote has been elected president o f Onawa State Bank. He succeeds Cliff Young, who will m ove to chairman o f the board. Mr. Grote had been serving as seni or vice president in charge o f loans for Hawkeye Bank & Trust o f Sioux City. He has 18 years o f banking ex perience. SIBLEY: First National Bank of Sibley has elected Lila F. Hatting to the position o f vice president. Ms. Hatting, a 20 year employee of the bank, manages the bank’s investor center and real estate loan depart ments. # 0* # SIBLEY: D. Duane Crockett, 60, vice president and cashier o f Sibley State Bank, died November 23. Mr. Crockett, who been battling cancer for the last year-and-a-half, began his career with the bank 31 years ago as a bookkeeper. SIOU X CITY: First National Bank has announced the prom otion of Doug Schmidt to vice president and com m ercial lender and Richard Nooney to assistant vice president and real estate department mana ger. Since joining the bank in 1978, Mr. Schmidt has served as cor respondent banking officer. A 30 year veteran in lending, Mr. Nooney has served in previous capacities in consumer lending and consumer credit counseling. VINTON : Douglas P. Johnson, president and chief executive officer o f the State Bank o f Vinton, recent ly announced the appointment of # # * Dennis P. W eiss as vice president and manager o f the bank’s agricul tural loan department. Mr. W eiss had been serving at Hawkeye Bank and Trust in Eldora since 1977. An important new profit center for your bank: Nebraska News DW IGH T: LaVem Fortik has been named president of the First State Bank o f Dwight. Mr. Fortik also will continue as executive vice president of the Bank of Brainerd, which he joined in 1966. He has worked in all areas o f the bank throughout his 17-year banking career. He also is a 1982 graduate o f the agricultural credit school held in Ames, Iowa. LINCOLN: First National Bank & Trust Company received approval from the Comptroller o f the Curren cy to open a branch office at 48th & Van Dorn Streets in Lincoln. OM AH A: Prom oted to vice presi dent at Omaha National Bank were: Stephen R. Lundholm and Jerome Schumacher. Mr. Lundholm joined the bank’s estate and trust division as an assistant trust officer in 1975 and currently manages the division’s business development department. Mr. Schumacher joined the bank in 1959 as an accountant and currently serves as a senior securities analyst/ portfolio manager in the investment department. Minnesota News M IN NEAPOLIS: On December 7, F&M Marquette National Bank un veiled for the first time its extensive collection o f antique savings banks. The exhibition, entitled A Penny Saved: A H istory o f Mechanical Coin Banks, 1860-1935, will run through February 4, 1984, at the Skyway Gallery, F&M Marquette National Bank, Sixth Street and Marquette Avenue. Hours are 8-5, M onday through Friday. Wisconsin News W AU K ESH A: Earlier this month, the Waukesha State Bank opened a branch in the General Electric Medi cal Systems Group headquarters com plex here. The branch will serve approxim ately 2,000 GE employees, and is the first branch opened by the bank. It is also the first branch bank to be opened in an industrial com plex in the state. North Dakota News The N orth D akota Bankers Association has scheduled a Bank ruptcy & Collection Seminar to be https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ■ Contact: Leroy Bell or Milt Hennick 319-291-5412 a computerized local billin^credit service National Bank of Waterloo 315 East 5th St. • W aterloo, IA 5 0 7 0 4 held at the Ramada Inn in Grand Forks on February 8, 1984. Registration will begin at 8:30 a.m. and the seminar will run from 9-4:30. Faculty for the seminar are W illiam R. M apother and Mary Kay Lush. Mr. Mapother has his docto rate o f law degree from the Universi ty o f Virginia and previously served Member Federal Reserve System FDIC as a judge in Louisville. He has writ ten several books and articles. Ms. Lush is director o f the Creditors Law Center and is a graduate o f the University o f Louisville. For more information contact North Dakota Bankers Association, P.O. B ox 1438, Bismarck, N.D. 58502. C iticorp A cquires First Federal S&L, I BA Expresses D isappointm ent HE LEAD ERSH IP o f the Illi nois Bankers Association ex pressed disappointment at the news that the Federal Home Loan Bank Board has given perm ission for Citi corp to acquire First Federal Sav ings and Loan Association o f Chicago. The acquisition o f the multi-bil lion dollar, 61-branch institution by the nation’s largest banking com pany marks the latest step in Citi corp’s interstate expansion program. IB A President Donald R. Lovett noted that “ since bidding for owner ship of First Federal began last June, our Association has vigorously sup ported a course o f action which would permit the institution to re main locally owned. W e have felt that such an outcom e clearly would represent the m ost favorable cir cumstance for the com m unity.’ ’ Mr. Lovett, president o f Dixon National Bank, indicated that the IB A would pursue a dual course of T action in an effort to insure that the eventual outcom e will be in the best interest o f the custom ers o f First Federal and the state o f Illinois. “ First, our attorneys have been ask ed to investigate the possibility that the acquisition violates state anti trust laws. In this regard we will be in touch with Attorney General Neil Hartigan’s office. Additionally, we will stay in close communication with officials of the Federal Reserve Board, since it appears that final ap proval o f the acquisition rests with that agency.” A s first reports o f the FH LBB’s decision were received, the IB A be gan contacting various members of the Illinois Congressional delegation to express dismay over that action. Many o f these individuals expressed similar feelings, and promised to make their sentiments known to Reagan Adm inistration officials and representatives at the FHLBB and Federal Reserve. Professional ... Responsive... Call Mark Christen for any correspondent service. Call toll free (800) 622-7262 Valley National Bank SÜ A BANKS OF IOWA BANK DES MOINES, IOWA 50304 Member FDIC Portable Modular Bank Building Wishing You A Prosperous 1984 from: Northwestern Banker WANT ADS Rates are $5.00 per line per insertion. Add $3.00 for file letters per Insertion. Identity of file letter advertisers cannot be revealed. NORTHWESTERN BANKER 306-15th Street • Des Moines, Iowa 50309 Phone 515/244-8163 Today's Research Brings Tomorrow's Cures POSITION AVAILABLE COMMERCIAL LOAN OFFICER—$30 million community bank located in the NW corner of Illinois. Minimum 5 years experience. Salary commensurate with background. Good benefit package. Send resume and salary history to file VBO, c/o Northwestern Banker. (PA) COMMERCIAL LOAN OFFICER— Requires degree plus 3 years commercial loan experience. Some operations ex perience helpful. Salary open. Contact Steven L. Afdahl. E.V.P., Citizens National Bank, Boone, IA 50036. Phone 515/432-7611. (PA) G e n e r a l B a n k E q u ip m e n t I S y s t e m s , In c . RR 45, Box 115 Hiway 7 3 ,3 1/2 Miles North of Int. 680 Omaha,.Nebraska 68152 (402)453-3000 Lease* Rent• Buy BANKING If you would like to evaluate your career, my clients across the country have a wide range of needs in operations, lending, and trust. Salaries are in the $20-80,000 range. Clients pay our service charge. Call or write: Walt Heyne, Dunhill of Fayetteville Box 1570, Rogers, Arkansas 72756 Phone: 501/636-8578 St. Jude Children’s Research Hospital is a national resource not just for today, but for tomorrow. Children come to St. Jude to re ceive the best available care, whether for leukemia, other childhood cancers, or one o f the rare childhood diseases being studied here. St. Jude Hospital continues its search so tomorrow’s children can live. St. Jude offers hope to all children, everywhere, regardless o f race, religion or financial condition. Please send your tax-deductible check or request for information to St. Jude, 505 N. Parkway, Box 3704, Memphis,TN 38103. FOR SALE NCR 775 PROOF MACHINE WITH 12 POCKETS. Under .? vice maintenance agreement. Home Trust & Svgs. B Osage, IA. Phone 515/732-3763. NCR 499 POSTING MACHINE. Presently under main ance. Phone 319/728-2226. ( BANK MICRO COMPUTER PROGRAMS—Apple (tm) l\PC/Franklin Ace and other micro computers. We are di butors for over 50 bank programs. Send/Call for comp list. Phone 308/384-5995. Bankers Electronic Equipn Inc., 380 N. Walnut, Grand Island NE68801. D a n n y T h om as, Founder ST. JUDE CHILDRENS RESEARCH HOSPITAL B A N K POSITIONS B A N K IN G PLA CE M EN TS “ Successful Banking is Quality Personnel” Eighteen years banking experience serving as president of rural and metropolitan banks enables me to find the “ right” banking position for you as a banker or the “ right" officer for your bank. TRUST OPERATIONS— manage all trust operations small department located in major midwestern urban a* $. AGRI/COMMERCIAL LOAN—$30MM community b located within 30 miles of large metro area. Requires yrs. agri loan experience. $ D O N -S cH O O LE R k AND V ASSOCIATES COMMERCIAL LOAN—$100MM suburban bank affilis with major multibank holding company. Degree and cc mercial lending experience in large bank desired. $: 2508 East Meadow • Springfield, Missouri 65804 417/882-2265 REAL ESTATE LOAN—supervise all lending functions $200MM S&L. Ten yrs. or more experience required. O COMPLETELY CONFIDENTIAL __________ “ Employment Service”____________ (^HoCcisX and <^f±±oaiai£,± Bank Consultants Specializing in Bank Acquisitions 515-232-0814 P.O. Box 450 405 Main Ames, Iowa 50010 D onald E. H older , Principal SKI THE SUMMIT One, two and three bedroom units for sale or rent. Most with hot tubs. Phone 1-800/922-2590. Dwayne Smith PARADISE PROPERTIES Box S Dillon, Colorado 80435 ASST. CONTROLLER— large suburban bank desirer dividual with 1-2 yrs. financial institution experience accounting or finance degree. $ Additional opportunities available in midwestern bat All inquiries confidential. TOM H A G A N & A S SO C IA T E S 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970” Vol. 12 No. 36 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 3C< Fifteenth Street, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $18.00 per year. Second class postage paid r 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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