Full text of The Northwestern Banker : January 10, 1966, No. 948
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
No. 948 Des Moines, Iowa January 10,1966 Randall Rules Against Advertising FDIC Coverage on Certain Deposits IV Y JY The FDIC ruled last week that Iowa banks may not adver tise that FDIC coverage is available for any funds on which interest in excess of 4 per cent is paid. The ruling was in the form of a telegram from K. A. Randall, FDIC chairman, to John Chrystal, Iowa superin tendent of banking, who had requested clarification earlier. Mr. Randall said that in view of the Iowa statutory provision limiting such interest to 4 per cent, and provisions of the Fed eral Reserve Act which limit interest paid on deposits in member banks to that permitted by state law, no Iowa bank should give any assurance to customers of the availability of FDIC insurance “ until fur ther announcement is made by the FDIC board of directors.” As reported here a week ago, First National of Council Bluffs recently obtained a rul ing from Comptroller of the Currency James J. Saxon that Iowa national banks may pay in excess of 4 per cent on time money, a ruling contrary to one he had issued earlier that they must abide by the state law. Wording of the law itself, how ever, has made the issue par ticularly confusing. How the conflict between FDIC and the Comptroller’ s ruling will be resolved was not determined at press time. Dale Ball, president of First Nation al in Council Bluffs, told the Northwestern Banker that he will, of course, abide by the FDIC ruling. Customers are being issued 4 per cent CD’ s with a letter of intent attached stating that if permission to pay more than 4 per cent is granted prior to expiration of the CD, that First National will pay the higher rate on the en tire span of that CD. The bank will continue issuing its First Savings Bond bearing 4% per cent interest, but without FDIC coverage. Across the Missouri River in Omaha, downtown banks and several others are paying higher than 4 per cent under Federal Reserve and state bank director authority. Last week First Na tional of Omaha also began offering a 5-year First National Savings Bond at 4% per cent. This bond is FDIC insured. Meanwhile, banks in northern Iowa were expressing concern because banks in southern Minnesota are advertising on north Iowa TV and radiostations with their higher than 4 per cent rates. Scattered reports of mon ey leaving the state had come in last week. Mr. Chrystal said, “ No matter what my opinion is, Iowa banks must be allowed to keep the money which they now have on deposit if they are to meet their obligations.” Loss of recently-gained deposits would severely hamper some of the state’ s banks, he said. * * * One rumor floating around the state was laid to rest last week when Iowa State Treasur er Paul Franzenburg told the Northwestern Banker unequivo cally that all money invested by his department in bank CD’ s has been placed only in Iowa banks and this now totals $33, 599,000. The unfounded rumor was that Iowa CD money was going out of the state for higher return. The $33.6 million is purposely invested in CD’ s of 106 Iowa banks who requested the funds so that the state’ s money will be used to support the economy of the state through normal financing and commercial outlets. We're here to help you get what you want Bob Buenneke, George Harnagel, Ben Eilders, https://fraser.stlouisfed.org Jerry and Dale Luckow. Federal Reserve Bank of St. Nelson Louis Iowa -Des Moines National SIXTH AND WALNUT • MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION • CH 3-1191 You can be sure your customers’ Sioux City collection items will have our careful attention. Send us those drafts, stocks, bonds, notes, coupons and all non-cash items for fast, personal service. 1=J SECURITY NATIONAL BANK 6TH AND PIERCE STREETS • SIOUX CITY, IOWA IOWA NEWS CRAWFORDSVILLE: Control ling interest in Peoples Sav ings Bank has been sold to William R. Bernau, Cedar Rapids attorney. Sale was negotiated by Reginald Figge A ssociates. DAVENPORT: First National Bank directors have promoted Jay M. Bennett to vice presi dent. He is manager of install ment loans. DES MOINES: James C. Enyart and John M. Kurtz have been elected directors of the National Bank of Des Moines. DES MOINES: Kenneth E. G lass, West Des Moines, has been pro moted to regional director of the U. S. Treasury’ s Savings Bond Division. IOWA CITY: Hawkeye State Bank opened last Monday in its new brick and concrete building. MT. PLEASANT: Open house is scheduled this afternoon from 4 to 6 p.m. at the newlyremodeled Mount Pleasant Bank and Trust Company. SPENCER: Chet Huntley, NBC news commentator, was in Spencer last Saturday to help celebrate the second anniver- SMALL BANK WANTED Our clien t, a native o f Minnesota and a su ccessful businessman, wants to buy a small bank for investment, willing to retain present management. A ll correspondence and negotiations will be strictly confidential. Submit current statement, number of shares offered and price net to you. BANKERS SERVICE Corporation Serving Banks & Bankers Since 1948 1301 Register and Tribune Building Telephone (515)244-3113 Des Moines, Iowa 50309________ MEMBER F.D.I.C. sary of the Spencer National Bank. NEBRASKA NEWS BIG SPRINGS: An educational trust fund for the orphaned sons of Mrs. Lois Ann Holthan totals more than $78,000. Mrs. Holthan, a bookkeeper in the Farmers State Bank, was one of three persons murdered when the bank was held up last June 4. Her husband had died less than a year earlier. OMAHA: Joseph Kennedy has been named assistant manager o f the Dean Witter and Company office. OMAHA: Clifford Hardin, Uni versity of Nebraska Chancellor, has been reappointed chairman of the Omaha branch of Federal Reserve Bank of Kansas City. John T. Harris of McCook was reappointed to a third two-year term on the Omaha board. Hom er A. Scott of Omaha was re appointed chairman of the Kan sas City Fed board. WAUSA: N. T. Tiemann, presi dent of Commercial State Bank, has officially filed as a Repub lican candidate for election as Governor of Nebraska next fall. MINNESOTA NEWS BIG LAKE: Ed H. Anderson, 70, former cashier, Citizens State Bank, died at his home in Montice llo recently. He had been in ill health since his retirement last year. COKATO: First National Bank has taken an option on a local building for the purpose of future expansion, but has an nounced no definite plans. MARSHALL: Dale W. Anderson L IN C O L N ssistant vice president, Donald I. Piehl, auditor, and Stanley E. R oll, assistant cashier, at the First National Bank recently. MINNEAPOLIS: Judson Bemis, Minneapolis, has been designa ted chairman and Federal Reserve agent of the Federal Re serve Bank of Minneapolis for 1966. Edwin G. Koch, president, Montana College of Mineral Science and Technology, Butte, has been reappointed a director of the Helena branch of the Minneapolis Reserve Bank for a two-year term which began Janu ary 1. MINNEAPOLIS: Stewart L. Stoesbery has been elected an assistant cashier in the corres pondent bank department at Marquette National Bank. MINNEAPOLIS: Ernest J. Tay lor has been elected assistant cashier at National City Bank. MINNEAPOLIS: Leroy H. Berg, vice president, Northwestern Bank, and manager of the bank’ s Lake Street office, has retired, ending a 47-year banking career. MINNEAPOLIS: Charles E. Corchran, vice president and cashier, and Walter A. Howe, assistant vice president, have retired at First National Bank. MINNEAPOLIS: Vice President Thomas V. Markle has been named treasurer of First Bank Stock Corporation, succeeding the retired Leonard 0 . Fredell. RICHFIELD: The new Summit State Bank of Richfield-Bloomington is expected to open for business in early April or May. SPRINGFIELD: N. V. Swanbeck, president, Farmers and Mer chants State Bank, was honored last month for his 45 years of banking in Springfield. VASA: White Rock State Bank last month celebrated its 50th anniversary in business. WATERTOWN: William F.M ass, vice president, Peoples State Bank, has retired following a banking career of 42 years. ZUMBROTA: M. C. Rockne, 65, president of the Farmers Security State Bank for the past ...Expert Administration o f Employee Profit Sharing Trusts FIRST NATIONAL BANK & TRUST COMPANY OF LINCOLN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 12th & N S tr e e t • L IN C O L N , N E B R A S K A • Member: F .D .I.C . ¿¡EtiifeSi££teii£i£££il A' 4r j f- * *n « NT1 £ A' ^ 4- y years, died last month foilowing a heart attack. SOUTH DAKOTA NEWS Hr y ABERDEEN: Duane Anderson has been elected vice president and trust officer of the First National Bank, effective Friday, January 15, succeeding Orley Rath, who resigned to enter private law practice. Dennis Bale, Norgrin Sanderson and Ron Rivett have been elected assistant cashiers at the bank. LAKE NORDEN: L. A. Lohr, veteran Lake Norden banker, has retired as cashier of the First State Bank, effective January 1. PHILIP: Gregor A. Weber has been advanced from cashier to v ice president and cashier and Robert A. Payton has been named assistant vice president at First National Bank. RAPID CITY: John T. Vucurevich has sold majority interest in United Corporation, which owns approximately 84 per cent of the Rushmore State Bank, to Billy 0 . Phillips and MauriceL. T est, both of Des Moines, Iowa. Mr. Phillips will be chairman of the board. Present bank per sonnel will continue in their same positions to operate the bank. Mr. Phillips is a building contractor in the Des Moines area. Mr. Test is an attorney. Both men also have interests in Fort Lauderdale * Florida. Mr. Vucurevich’ s other banks in South Dakota, Montana and Wisconsin were not affected. SIOUX FALLS: A. E. Friday has been elected vice president and Donald A. Isaacson and Richard Pruitt have been e le c ted assistant cashiers at Na tional Bank of South Dakota. NORTH DAKOTA NEWS BERTHOLD: A hearing will be held January 14 at 1 p.m. in the office of State Examiner Eugene Rich on application of First Western State Bank, Minot, for a paying and receiving station at Berthold. American State Bank of Minot recently opened such a facility in Berthold. BISMARCK: The North Dakota Banking Board has authorized all banks to pay up to 4% per cent compounded quarterly on time deposits. The previous https://fraser.stlouisfed.org limit was 4 per cent. Federal Reserve Bank of St. Louis Municipal I j / r //// A gencies Bonds Stocks In v e stm e n ts , FARM CREDIT BLDG. PHONE 345-2241 OMAHA CARSON: Lloyd Kempf, presi dent of the Grant County State Bank,resigned his position last month. A successor is to be named at the bank’ s annual meeting this month. GRAND FORKS: Pershing Boe has been elected president of First National Bank. He was vice president and trust officer of First National Bank and Trust Fargo. He succeeds Fred R. Orth, who continues as chair man of the board. Mr. Boe takes office in February. VALLEY CITY: Arthur I. Nel son, assistant cashier, First National Bank, Marshall, has been named cashier of the American National Bank, Valley City, effective January 1. MONTANA NEWS BILLINGS: First Bank Stock Corporation, Minneapolis, has transferred $1.3 million to a sub sidiary bank in Billings, Mont ana, to cover bad loans dis covered after a vice president of Midland National Bank, B il lings, died in an automobile fire. John A. S illers,. 39, the vice president of the Montana bank, died December 20 when his automobile exploded and burned while parked on the rim rocks overlooking Billings. Bank of ficials initiated an investigation of the bank’ s financial condition following the vice president’ s death. BILLINGS: Directors of First National and Billings State banks voted merger of the two banks last month. Approval of stockholders and Comptroller of the Currency still must be obtained. The resulting bank would have about $42 million in assets and would be part of the Northwest Bancorporation, with which Billings State is now affiliated. BUTTE: Robert M. Pancich has been elected assistant cashier and assistant operations officer at Metals Bank & Trust Com pany. Mr. Pancich had been cashier at First Westside Na tional in Great Falls. Inc • CUT BANK: R. R. Bartschi has been named to succeed H. M. Emerson, Jr., who re cently resigned as vice presi dent and cashier of the First National Bank. Art Wiedeman, Jr., assistant cashier, First National Bank, Glendive> has also joined the staff of the First National in Cut Bank. GREAT FALLS: John S. Hart well has returned to First Westside National from First Bank Stock Corporation in Minne apolis as cashier. He succeeds Robert M. Pancich, who moved to the Metals Bank and Trust C o., Butte, as assistant cashier. WYOMING NEWS CHEYENNE: Norris E. Hartwell, 77, state examiner since 1941, retired January 1, and was suc ceeded in that post by Dwight Bonham, who has been deputy state examiner. LARAMIE: At University Na tional Bank, Mrs. Edward Mayfield has been named auditor, and Mrs. Charles F. Yeoman, Jr., and Bill C. Prowell II, have been elected assistant cashiers. COLORADO NEWS COLORADO SPRINGS: Plans for what could be the 18th com mercial bank in the area have been disclosed. A letter of in tent has been filed with Harry Bloom, state bank commissioner, proposing a Bank of Woodmore near the interchange of Inter- WORLD’S FINEST complete line of financial equipment from one reliable source. CEDAR RAPIDS, IOWA 52406 Man of the Year by the St. Louis Globe-Democrat. state 25 and Colorado Highway 50, 15 miles north of Colorado Springs. DENVER: The First Colorado Banks hares, Inc., four banks— Security National, First Na tional of Englewood, University Hills and Lakeside N ationalare offering 4.85 per cent on 2-year CD’ s , 4.75 per cent on 1-year CD’ s and 4.5 per cent on 6-month CD’ s. DENVER: Louis W. Gnam has been elected assistant vice president of J. K. Mullen Invest ment Company and has been placed in charge of sales activ ities. DENVER: John T. Reagan has been elected assistant vice president at Denver U. S. Na tional Bank., J. Harvey Ander son, Jr. has been named as sistant comptroller, Jack P. E llis, assistant trust officer, and Alvin W. Haggerty, as sistant cashier. DENVER: Cris Dobbins, presi dent, Ideal Cement Company, has been appointed to the board of the Denver branch of the Kansas City Federal Reserve Bank. LAKEWOOD: Charles R. Pyle has been named assistant cash ier at Rocky Mountain Bank. LAKEWOOD: John S. Heilman has been elected as assistant cashier at First Westland Na tional Bank of Lakewood. NATIONAL NEWS CHICAGO: Arthur T. Leonard last week retired from Conti nental Illinois National Bank and Trust Company as chair- man of the executive committee of the bank’ s board of directors. KANSAS CITY: Newt W. Jones and Dulcie(Mrs. Frank L .) F itz gerald, vice presidents, First National Bank of Kansas City, have retired effectiv e1 Decem ber 31. LOS ANGELES: Joseph U. Streeter has been promoted to vice president of Security First National Bank’ s national and metropolitan banking depart ment, head office. LOS ANGELES: Clifford Tweter became president on January 1 of Western Bancorporation, suc ceeding M. E. McMillen, who retired. Fred S. Huber was e le c ted executive vice president. Mr. Tweter will continue as president of United California Bank, with his principal duties being with Western Bancorpora tion. NEW YORK: Wilbur C. Baldwin and William W. Flanagan have been named vice presidents of First National City Bank. PHOENIX: Patrick F. Keig and L. G. Kennedy have been e le c ted vice presidents at Valley National Bank. Forrest G. Pear son, Jr., has been named trust officer, Nathan C. C ollins, as sistant cashier, and Charles H. Koozer, purchasing officer. ST. LOUIS: James P. Hickok, chairman, First National Bank in St. Louis, has been named SAN FRANCISCO: Francis X. Scafuro has been elected senior vice president of Bank of Amer ica (International), New York subsidiary of California’ s Bank of America. Robert T. Shinkle has been named senior vice president and chief adminis trative officer for the trust department of the Bank of Amer ica. Edgar H. Canfield has been named vice president. m V- WASHINGTON, D.C.: Effective December 31, the Federal Home Loan Bank Board adopted a resolution permitting Federal savings and loan associations, which distribute earnings from the first of each month on sav ings received up to the 10th of the month, to distribute earnings from the date of receipt on sav ings received after the 10th of the month. V* WANT ADS Rates 25 cents per word per insertion. Minimum: 12 words. NORTHWESTERN BANKER 306 15th St., Des Moines, Iowa y FOR SALE Late model NCR Postronic with fee-posting attachment, under main tenance and in excellent condi tion. Serial #6378591. FirstNational Bank of Davenport, Brady at Locust Street, Davenport, Iowa. BANK WANTED Experienced banker wants to pur chase controlling interest in bank with deposits of 2-4 million. Re ply File KBR, in care of the NORTHWESTERN BANKER, 306 Fifteenth Street, Des Moines, Iowa, 50309. EQUIPMENT WANTED 4 Á 4 Need N.C.R. 7-Tape Proof ma chine, 18 or 20 compartments, model #22010 (123). Write File TMV, c /o THE NORTHWESTERN BANKER, 306 Fifteenth Street, Des Moines, Iowa, 50309. MOVE AHEAD WITH (¡ktaròsmanICifrJnsuraorr (En 808 FIFTH AVENUE DES MOINES. IOW A Specializing in Bank Plans, including Credit Life, Credit Disability and the new Depositors Security Plan. No. 948 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription 50tf per copy, $4 per year. Second c la ss postage paid at Des Moines, Iowa. Address all mail https://fraser.stlouisfed.org subscriptions, change o f address, Form 35 79, manuscripts, mail items to above address. Federal Reserve Bank of St. Louis f