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Vol. 14 No. 45

Des Moines, Iowa

February 24,1986

Sen. Gam Seeks Regulators’ Comment
On A g Task Force Recommendations
e m b e r s o f the a b a —i b a a
A g Task Force (Jan. 13 issue)
held their second meeting in W ash­
ington, D.C., February 13-14 to reaf­
firm the recom m endations they
made at the initial m eeting in Dallas
January 14-15, and to meet with
bank regulators and Treasury repre­
sentatives to explain their program
and seek their support. This was
part o f the beginning effort to sell
the Task Force recommendations to
members o f Congress.
Sen. Jake Gam (Rep., Utah),
chairman o f the Senate Banking
Committee, has called for full com ­
mittee hearings on the ag crisis to
start March 6 and has requested the
Fed, FDIC and Comptroller o f the
Currency to send him a letter by
that date with their analyses o f the
recommendations. The FDIC has
given its response to Sen. G am and
the other two regulators are ex­
pected to do so at an. early date. An
A B A spokesman said “ at this time
there seems to be a unified front
developing,” referring to the join t
banker effort.
The A g Task Force was created
by A B A President Don Senterfitt,
vice chairman o f SunTrust Banks,
Orlando, Fla., under the chairman­
ship o f Randall A . Killebrew, vice
chairman o f A B A ’s Government Re­
lations Council and president o f


To remedy this, and keeping in
mind the Congressional massive
bailout o f the Farm Credit System
on December 23, 1985, the Task
First National Bank, Petersburg, Force states, “ Our first priority as a
111. There are nine bankers from four means o f preserving banks’ capital
related A B A divisions. In addition, is to change regulatory accounting
Mr. Senterfitt’s invitation to the In­ procedures and enable prudently
dependent Bankers A ssociation o f managed banks to amortize their
Am erica to join the Task Force to loan losses over a multi-year period.
present a unified front was accepted Such a procedure is relatively simple
and its three-man delegation is led to administer, would assist a broad
by IB A A President B.F. “ Chip” segment o f banks and their borrow­
Backlund, president, Bartonville ers, and would entail no direct gov­
Bank, Peoria, 111. (Names o f the full ernment cost.”
com m ittee were published in the
Two other options to maintain
January 13 issue.)
capital were listed as “ regulator-as­
A t their Dallas meeting, Task sisted injections o f capital into cer­
Force members adopted their formal tain troubled banks” (e.g., with
recom m endations and these in­ FDIC injection in the form o f debt
or equity), and “ unfunded capital
1. Stabilization o f Bank Capital.
certificates similar to net worth or
2. Stabilization o f Agricultural income capital certificates currently
used for certain thrift institutions.”
3. Stabilization o f Farm Real Es­
It was stated that careful atten­
tate Values.
tion would need to be given to some
The “ Recomm endations” docu­ proposed 1RS changes that would
ment dated February 4, points out eliminate carrying the net operating
that “ extraordinary charge-offs” for losses back 10 years and lim iting
ag loans losses, running at an an­ this to three years, with any excess
nualized rate in excess o f $1 billion loss being carried forward.
in 1985, “ are eroding the capital
On Recommendation 2, the Task
structure o f many agricultural Force says, “ we recommend further
banks as the loan losses are de­ expansion o f the Farmers Home A d­
ducted from the banks’ available m inistration agricultural loan gua­
capital.” The document points that rantee program s and authority. In
this reduces “ both the total capacity the current budgetary situation, the
o f the bank to extend credit and the Fm HA loan guarantee program is
size o f individual loans that the the least costly means o f stabilizing
bank can m ake.”
and extending agricultural debt. In

Call on the “Experienced Professionals”
Ready to meet your correspondent needs.

^zFirsTier Banks
First N ational Lincoln

13th & M Streets, Lincoln, Nebraska 68501
Federal Reserve Bank of St. Louis

Member FD IC


Norwest Bank Des Moines, N.A.
Call (515) 245-3131 or toll-free (800) 362-2514


Member FDIC

one of the reasons
we’re first in Iowa.
Dorothea Wolfe

M ark Conway

addition, expansion o f the $490 mil­
lion interest rate buy-down program
included in the 1985 Farm Bill
would provide m ajor cash flow assis­
tance to agricultural borrowers at
minimal direct cost. W e also need
clarification this year o f the Fm HA
preparedness to provide direct loans
to qualifying farmers who cannot be
financed in full by commercial lend99
On Point 3, the Task Force stated
“ W e seek the development o f an in­
stitutional secondary market for
longer term real estate loans origi­
nated by commercial banks. A se­
condary market would provide ac­
cess to additional funds and diver­
sify the risks and returns from farm
lending. One option is to pool

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

FmHA-guaranteed loans for resale
as m ortgage-backed securities to in­
The Task Force also said ware­
housing o f problem ag loans and/or
acquired assets deserve further
study, as well as perm itting banks
to hold real estate assets for a longer
period o f time to stabilize the mar­

lunch is at noon, and the afternoon
presentation is at 12:30. Registra­
tion, which includes handouts, exhi­
bit hall entrance, refreshments, the
reception, two breakfasts and two
lunches, is $100 for IB A members,
$125 for subscribers and $150 for
nonmembers. Register through the
IB A office.
AM ES: Robert O. Grathwohl, who
was executive vice president at
United Bank & Trust until late last
year, recently joined Citizens Bank
and Trust Company o f Chillicothe,
M o., as president. Mr. Grathwohl
was president o f U niversity Bank &
Trust Co. in Am es at the time o f its
merger last June with Union Story
Trust & Savings Bank to form the
new United Bank & Trust.

CED AR FALLS: Recent prom o­
tions at Cedar Falls Trust & Savings
Bank include tw o vice presidents.
D orothy D. Heine has been pro­
Iowa News
m oted to vice president and cashier.
A t the Group 11 m eeting in Bur­ She joined the bank in 1963 and pre­
lington February 17, Edward K. viously was branch manager o f the
Johnstone, president o f Keokuk College Square office and head o f the
Savings Bank & Trust Co., Keokuk, consumer loan operations. Thomas
officially took over as Group chair­ Damgaard has been prom oted to
man. He replaces W illiam R. Ber- vice president and head o f the con­
nau, president, Peoples Savings sumer loan operations. He joined the
Bank, Crawfordsville, who was ap­ bank in 1976.
pointed in January as Iowa superin­
tendent o f banking. Succeeding Mr. CLINTON: Prom otions at Iowa
Johnstone as Group secretary is State Savings Bank in Clinton in­
Daniel H. Doyle, president, W ell­ cluded two prom otions to vice presi­
dent. Richard J. Carlson, who joined
man Savings Bank.
the bank in 1979, was prom oted to
♦ # *
The Iowa Bankers Association executive vice president and secre­
will sponsor its 1986 A g Credit Con­ tary. Jurgen R. Duhr, who came to
ference on March 17-19 at the Sche- the bank in 1981, was prom oted to
man Center at Iowa State Univer­ vice president cashier.
sity in Ames. Registration on the DES M OINES: W illiam A . Wish17th begins at noon with afternoon man has been elected senior vice
sessions starting at 1:00 p.m ., an ex­ president and com ptroller o f Valley
hibit hall reception at 5:00 and din­ National Bank. He has been with
ner on your own at 6:30. Continental the bank for 25 years, m ost recently
breakfast on the 18th is at 7:30 with as vice president and com ptroller.
sessions beginning at 8:15, noon
lunch, workshops starting at 1:30 PATON: Isabelle Nuckolls, widow
p.m ., and dinner on your own at o f Denver Nuckolls, who died Janu­
5:00. On the 19th breakfast is at ary 26 o f cancer, has been advanced
7:30 a.m., sessions begin at 8:00, to succeed him as president o f Com-

Inquire about FLEX-O^PAY®
■ a com puterized billing/credit system
■ generates additional incom e from
present staff and equipment
■ means o f increasing your local
comm ercial business
■ plan developed by bankers for bankers


L eR oy Bell
The National Bank o f W aterloo
315 East 5th Street
W aterloo, IA 50703

full power.

The performance of your bank’s bond portfolio is based on sound
thinking and quality investments, investments that will consistently
work at full power to contribute to the earnings of your bank. Bond
portfolio recommendations have been our specialty since the 1920s,
and our track record is enviable.
Although investment vehicles and markets have changed, we’ve
maintained our high standards. The result is success for our customers
and a reputation that precedes us.
For confidential consultation about the benefits of investment
banking at United Missouri, call (816) 556-7200 today.

of Kansas C ity, n.a.
Member FDIC
Federal Reserve Bank of St. Louis


P.O. Box 226 Kansas City, Missouri 64141
Supplement to Northwestern Banker Newsletter 2-24-86
Federal Reserve Bank of St. Louis


Estate Appraisals
Purchase of

* * * BANKERS * * *
Qualified bankers available. Experience ranging from
ag/commercial lenders, operations and top level bank
executives. Call or write.

Sale of Rare Coins
Reliable and respected service
for over 20 years
Used by bankers
throughout the midwest

Ben E . Marlenee
913 Locust
D es M oines, Iowa 50309



munity State Bank. Mr. and Mrs.
Nuckolls had worked together for
the bank for 45 years and had owned
the bank a number o f years. Charles
Sarazen recently joined the bank as
executive vice president and CEO.
He was form erly executive vice president and trust officer at First Inter­
state Bank in Algona. In addition,
the Community State Bank board
elected Richard Happe as assistant
vice president.

Nebraska News



ELK CREEK: Approval has been
received to change the name o f State
Bank o f Elk Creek to Johnson Coun­
ty Bank, Elk Creek, with an office in
Tecumseh. The State Bank, as re­
ported in last week’s issue, pur­
chased the failed Johnson County
Bank o f Tecumseh from the FDIC
February 7 when the latter bank was
closed. State Bank o f Elk Creek,
with $6 m illion in assets, assumed
Johnson County Bank’s $18 million
in deposits and loans o f about $10.5

Minnesota News


* * * Professional Service
** * Confidentiality
• ‘ •Competitive Fees-Employer Paid



(515) 394-2325

Banking Specialist
Route 3-Box 48

New Hampton, IA 50659

Farin & A ssoc., and Tom Christen­
sen, sales and marketing director. It
will begin at 9:00 a.m. and conclude
at 4:00 p.m. Contact the M B A for
more information.

been elected president and a director
o f Norwest Bank Old St. Anthony,
N .A. He has been with Norwest
since 1963, m ost recently as a senior
vice president o f the bank.

* *

The M B A will hold a Productivi­
ty/C ost Containment W orkshop on
March 13 at the Sheraton Airport
Inn, Bloom ington. Two speakers
will conduct the program. Karen A.
A lf, president o f Karen A lf & A sso­
ciates, is the former manager o f the
financial institutions consulting
practice o f Peat, Marwick, M itchell
& Co. Richard Franzmeier, vice
president o f The Highland Bank of
St. Paul, is chairman o f the M B A
operations committee.
DULUTH: A t First Bank Duluth,
Helena Jackson was prom oted to
vice president, trust—legal. She
joined the bank in 1980 and m ost
recently served as assistant vice
president and trust officer. In addi­
tion, Dan Wallin was prom oted to
vice president, com m ercial loan
manager. He has served at First
Bank Duluth and First Bank Duluth
W est since 1970, m ost recently as
vice president, com m ercial loan

The Minnesota Bankers Associa­
M IN N EAPOLIS: Thomas A . W elch
tion will present a Strategic Plan­
has been elected president and a di­
ning Seminar in three locations:
rector o f Norwest Bank Camden,
March 10 at the Brainerd Holiday N .A. He has been managing Nor­
Inn, March 11 at the Bloom ington
west Bank Camden since 1983, hav­
Em bassy Suites Hotel and March
ing joined the bank in 1981. In addi­
12 at the North Mankato Holiday tion, Gary Boylan has been elected
Inn. The seminar, specially geared
vice president/retail banking.
for community bank CEOs, will fea­
ture Tom Farin, president o f Easley, M IN N EAPOLIS: Don Johnson has
Federal Reserve Bank of St. Louis


M ORA: M .D. “ Pete” M cVay has
been elected a director o f Kanabec
State Bank, filling the vacancy
created by the recent death o f Rus­
sell Strandlund, according to Chair­
man O. Jay Tomson. Mr. M cVay,
who is the retired president o f Car­
gill Co. in Minneapolis and a former
director o f Norwest Bank Minneapo­
lis, owns and manages a large farm­
ing operation in the M ora area. A d­
ditionally, it was announced Janu­
ary 30 (February 3 Weekly News­
letter) that Mr. M cVay heads a
group that has purchased Norwest
banks in Dawson, Luvem e, M onte­
video and Ortonville. Mr. M cVay
also has extensive ranch holdings in
Kansas and a 7,000 acre ranch in
Australia, where he will spend the
month o f March.

South Dakota News
The South Dakota Bankers A sso­
ciation is sponsoring an IR A Semi­
nar to be held on March 25 at the
Rapid City Ramada Inn and on
March 27 at the Sioux Falls Ramada
Inn. Presenter is Randy Heidmann
o f Collin W. Fritz and Associates.
Registration is at 8:00 a.m. with the
morning session starting at 9:00
a.m., lunch at noon, and afternoon
sessions from 1:00 to 4:30 p.m. Fee
is $95, and includes breaks, lunch
and materials. Register through the
SDBA office.


The Omaha National Bank In Fort Collins, Colorado, seeks
an AGRICULTURAL LOAN OFFICER to develop new busi­
ness, maintain bank portfolio and service customers. Qua­
lified candidates should have 3-5 years experience in all
phases of lending and bank operations with an emphasis
in livestock and crop production. A degree in finance or
related area, the ability to communicate effectively and
strong marketing skills are required.
If qualified, submit resume and salary history to:

^ Omaha National
A FirsTier Bank

1700 Farnam St.
Omaha, Ne. 68102
$55MM Northeast Iowa Bank needs an experienced EX­
Northwestern Banker.
BANKING OFFICER— Positions available In the Rocky
Mountains, southwest and midwest. All fees employer
paid. Contact Dunhlll of Fort Collins, 2120 South College
Avenue, Fort Collins, CO 80525. Phone: (303) 221-5630. (PA)
AQ LOAN OFFICER—$25M bank In southwest Minnesota
town of 2,500 needs Ag Loan Officer Immediately-minlmum of 2 years experience necessary-salary commensu­
rate with experience-excellent opportunity for career ad­
vancement. Send resume to file No. WEK c/o Northwest­
ern Banker.
COMMERCIAL LOAN OFFICER—position with progres­
sive Iowa City Bank. Minimum 3 yrs. lending experience
with college degree. Excellent benefit package with salary
commensurate with experience. Send resume and salary
requirements to File No. WEJ, c/o Northwestern Banker.
______________________________________________ (PA)
SENIOR MANAGEMENT position In small, but growing,
Colorado bank. Must be experienced in commercial lend­
ing. Send resume to file WEL, c/o Northwestern Banker.
______ _______________________________________ (PA)

3-BURROUQHS L-9000—2-NCR 8 Pocket proof machines;
1 - Bell & Howell Director II Microfilmer; 1 - Bell & Howell
SRM Microfilmer; 1 - Bell & Howell Classic Microfilmer. All
for sale due to mergers. Contact Dale L Adams at
402-362-7411 or P.O. Box 69, York, NE 68467.

BANK ExVP - $60,000
$80mm Rocky mountain Bank. SrLO-Commerclal
& Ag. Must have CEO potential. Employee Stock
Plan. Excellent Perks.
Contact Barbara J. Rltta at
P.O. Box 24227
Omaha, NE 68124
1-800-225-2885, In NE (402) 397-2885

People oriented, aggressive Indiv with 2 + yrs FHA exp
and good knowledge of ag needed for high quality Institu­
tion in excellent location. Great benefits and career poten­
Senior trust spot In $200m + com’l bank. Profitable dept
has an opening due to promotion and growth. Located in
key fln’l community. Offers excellent growth potential.
Overall bank mgmt In a $30m + rural bank located near
large community offers great oppty for proven profes­
sional looking to move Into top notch organization. Part of
strong holding co looking for progressive leaders. $40-50K.

Equal Opportunity Employer

(515) 244-4414

TRUST OFFICER for northern Iowa, prefer law degree . . . .
......................................................................Salary to $35,000
years experience preferred..................................... Salary to $35,000
EXECUTIVE VICE PRESIDENT for$60M Iowa bank. Should
be qualified to become C E O ........................ Salary $50,000
position. Good loan experience record preferred ..............
......................................................................Salary to $40,000
EXECUTIVE VICE PRESIDENT for community bank In
northwest Io w a ............................................................. Salary$35,000
TRUST OFFICER for central Illinois bank, prefer law de­
gree ..................................................................Salary $35,000
EXECUTIVE VICE PRESIDENT for $50M bank. Requires op­
erations and leqdlng experience ................. Salary $40,000

Growth opportunity for individual ready to
assume responsibility for operations manage­
ment for metropolitan bank with branches. Candi­
dates must be degreed with minimum of 7 years
experience. Our client, headquartered in Des
Moines, Is part of a financially solid multi-bank in­
stitution, respected throughout the state. For con­
fidential consideration, direct your resume to T.W.
Textor and include salary history. No fees, we are
retained by management.
Personnel, Inc.
2626 Ruan Center
Des Moines, Iowa 50309

company bank. Must know secondary market procedures
................................................................................Salary open
VICE PRESIDENT RETAIL BANKER for major holding com­
pany bank ........................................................... Salary open
SENIOR COMMERCIAL LENDER for key Iowa bank, excel­
lent opportunity for right person.......................Salary open
PRESIDENT A CEO for $50 million asset midwest bank.
Good earner with a clean po rtfo lio.................. Salary open
PRESIDENT A CEO for $40 million asset bank. Requires
ability to handle some problem loans ............ Salary open
AG LOAN OFFICER for eastern Iowa bank. Requires 2-5
years lending experience............................................. Salary$25,000
AUDITOR/CPA for Iowa holding company Salary to $30,000

cdfoCctsx a n d c^ f’5.±oaiats.±
Bank Consultants
Specializing in Bank Acquisitions
P.O. Box 450 405 Main Ames, Iowa 50010
Donald E. Holder, Principal

I COMMERCIAL LENDER for $ Vi billion bank. Handle
ij $10-15mm In diverse portfolio. Large bank holding
M company with excellent benefits. Large, beautiful
| city .....................To $35,000 ..................... Call Bruce
CORRESPONDENT BANKER. Strong lending back: ground? Major holding company In metro area
needs you. Travel within 100 mile radius. Excellent
benefits.................... $40,000 ..................... Call Dean
| VICE PRESIDENT/CLO MANAGER. Solid commer| clal lending can qualify you for excellent opportuni| ty! Supervise six people in $150 + mm bank located
^ In cultural university oriented community . To $40,000
.........................................................................Call Mar]
| COMMERCIAL BANK OFFICER. Large metro bank.
Major holding company that promotes from within.
Use your credit marketing techniques to land this
S one! ...................... $40,000 ..................... .Call Dean
i; experience to work in this resort area bank. Real esI tate, commercial or Installment lending background
........................ To $40,000 ......................... Call Bruce
$80mm+ commercial department. Commercial
| lending, loan review and other administrative func­
tions will enable promotions In this $190mm +
I holding company bank . . . To $40,000 . . . Call MarJ
„ VICE PRESIDENT. #3 person. $45mm ag bank. Grow
| Into #2 spot-President retiring. Located near univer­
sity. Excellent compensation program ..T o $40,000
I , .......................................................................Call Bruce ;
AG OFFICER. Chance to move into a larger bank. Be
i one of the group and handle $8 + mm In your own i
portfolio. Solid bank. Good benefits ___ To $30,000
| ......................................................................Call Dean J
: SENIOR VICE PRESIDENT for major holding com -;
pany bank. Oversee all lending with ultimate respon- i
: sibility for operations. Major city. Benefits are one
of the b e s t!.......... . .To $50,000 .............. Call Bruce I
Toll Free #1-800-638-1996-025757

317 6th Ave, Ste. 650
Des Moines, IA 50309

AG LOAN OFFICER for eastern Iowa bank, should have 3-5
years experience ....................................... Salary to $35,000

*P ersonnel Search
1126 S o . 72nd St. Om aha, N e. 68124

Please call Malcolm Freeland or Cy Kirk In care of:

Freeland Financial Service
1010 Equitable Bldg. Des Moines, IA 50309
_________________Employer pays fee.

E.V.P. - For a western Nebraska bank of $85 mil­
lion. Need heavy ag loan experience. Will be
supervising 6. Will lead to CEO In 3 years. To $60K
+ 20% Bonus
LOAN REVIEW OFFICER - Need both ag and com­
mercial lending experience. Omaha. To $35K.
AG LENDER -3-4 years experience. N.C. Illinois.
To $32 K.
All fees are paid by our client employers.
Richard L. Beam, CPC
11246 Davenport Street
Omaha, NE 68154
Phone: 402/330-3260
Member National Personnel Associates
We’re Nationwide

Will be responsible for planning organizing, and
directing the banks overall lending operations.
Applicant must have excellent track records.
Send resume to File No. WEG c/o Northwestern

REAL ESTATE LOAN - manage dept, for large suburban
bank. Construction lending experience a must.
LOAN REVIEW • assist senior loan review officer of
$200M M bank. Prefer degree.
COMMERCIAL LOAN • Junior position with $200MM subur­
ban bank. Requires degree and experience with large
AGRI-LENDER - senior position which requires strong
background In financing of cattle operations.
TRUST OFFICER - manage small dept, for $40MM subur­
ban bank. Does not require Law Degree.

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

e Ü L l* S V 5o?e0rtrTWÄ^ rn Ba,nker
(USPS 873-300) Is published weekly by the Northwestern Banker Company, 1535 Linden
Street, Suite 201, Des Molnee, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $18.00 per year. Second claee postage paid at
Moines, Iowa. Address all mall subscriptions, changes of address (Form 3579), manuscripts, mall Items to above address.
Digitized forDes
Federal Reserve Bank of St. Louis