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Vol. 11 No. 37

Des Moines, Iowa

Pricing New Accounts Key to Profit
| A f H I L E reports are still being
W gathered on results of the first
wo weeks of activity resulting from
introduction of the Money Market
Deposit Account on December 14,
the financial institutions of the na­
tion are gearing up for the Super
N O W which becomes marketable
January 5.
M ixed reviews have been given in­
troduction of the M M D A in mid-De­
cember. In some banks the account
has been positioned as an invest­
ment or savings vehiclé; in others, it
s touted as a higher yielding trans­
action account. Estimates of the
average balances required in the
M M D A s (with $2,500 the required
legal minimum) range from $3,000
to as much as $15,000 and $20,000—
practically all of the latter high
evels being in those accounts posi­
tioned as investment or savings
vehicles. A s a rule, people surveyed
by various methods have indicated
that if they are seeking a higher
return to maximize the value of their
money, they are more interested in
the safety and the enhancement of
that nest egg rather than accessing
it to spend the money. The fact that
r,he money is accessible if the need
should arise, without fear of penalty
as imposed by traditional CDs, is ac­
cepted as a valuable addition to the
arsenal of commercial banks and

The record so far at year-end ap­
peared to be between the dire predic­
tions of those who felt that the
money for the M M D A s basically
would all come out of the checking
and savings accounts at the depos­
itory institutions, thus increasing
interest costs dramatically without
the benefit of new money, and those
who thought the availability of the
new account would drain money
back in a hurry from the M M M F s
that sucked more than $200 billion
from the economy in the past two
years. Somewhere between lies the
true facts, but enough time hasn’t
elapsed to obtain an accurate pic­
ture. M any banks surveyed report
anywhere from 20% to 40% “ new”
money. Some profess to be able to
trace a certain percentage directly to
withdrawals from M M M F s and
state that money is “ coming home.”
Regardless of the source or vol­
ume of the funds deposited in the
M M D A s , banks and S& Ls must
face the January 5 account and de­
termine how they will offer i t .
W ith the obvious need to deter­
mine one’s true costs for sill phases
of banking activity, as emphasized
so strongly by experts the past few
months, there appears to be a dis­
tinct trend to actually tying in costs
with pricing, a fact of life avoided in
many banks in years past because
there were so many off-setting fac­

January 3,1983
tors to be considered, especially the
value of “ free” balances in checking
accounts. Now, experienced market­
ing executives and bank managers
are stressing the need to pin the new
accounts down to a bottom line of investable balance for the bank; i.e.,
“ after all is said and done, how
much do we have to invest after
reserves and expenses and how
much of a spread can we make after
paying a competitive market rate of
M any individual customers soon
will learn that their accounts will be
analyzed and assessed just as com­
mercial accounts have been analyzed
for activity for years. Various pric­
ing strategies and methods of com­
puting all costs can be arrived at
through consultation with city cor­
respondent banks or a specialized
marketing service. The essential
point for bank managers with the
new ceiling-free deposit accounts is
to know costs, the rate of return,
and what can be offered customers
as a fair, competitive market rate of
return. Reacting to a competitor’s
published rate, when his costs and
methods of operation differ, can lead
to a decline in net, the marketing ex­
perts point out.
The value of the M M D A and the
Super N O W can’t be judged for
some months yet, but at least banks
now have some tools to work with in
the fight for the consumer’s finan­
cial business.

to make M NB work for you.
Toll free: 1-800-332-5991

Merchants National Bank i§i
M e m b e r F.D.I.C.
Federal Reserve Bank of St. Louis


member of Hawkeye Bancorpora­

p ir s t in Iowa, by
putting Iowa first.
Bob Buenneke

10W A-.





An Affiliate of Northwest Bancorporation
Member FD1C

Chase Prime to 11%
The Chase Manhattan Bank of
N ew York dropped its prime lending
rate December 28 to 11% from
/2%, the lowest level the prime
has hit for a major bank since
August, 1980. Other banks were ex­
pected to follow suit. The drop was
attributed to decreased borrowing
costs and lessening commercial loan
demand. The Federal Reserve Banks
dropped the discount rate recently
to 8 V2%. Some analysts forecast fur­
ther drops in both the discount rate
and the prime, probably to a 10%
level or lower for prime in the first
quarter 1983.

Iowa News
C E D A R R A P ID S : Brian R. Phil­
lips, president of Banks of Iowa
Computer Services, Inc., is scheduled
to speak at a February 17-18 exec­
utive conference in Palm Springs,
Calif. Phillips, a 20-year veteran of
bank data processing, will help pro­
vide what conference sponsor H og­
an Systems Inc. terms “ a perspec­
tive on the dizzying status of the
financial industry in today’s climate
of deregulation, an uncertain econ­
omy and competition from non­
banking sources.”

Don't gam ble
when choosing
o correspondent
bonk. Com e to
the professionals.
OF DES MOINES, N A ■ MEMBER FDIC ■ (515) 245-7111

(800) 362-1615
Federal Reserve Bank of St. Louis


Call (515) 245-3131 or toll-free (800) 362-2514

D E S M O IN E S : D avid G. W right,
president of Northwest Brenton N a ­
tional Bank, has been appointed
chairman of the Region V I I Des
Moines District Advisory Council of
the S B A by James Sanders, admin­
istrator in Washington, D.C., of the
S B A . H e also announced the ap­
pointment of Larry Wenzl, president
of Hawkeye Capital Bank & Trust,
Des Moines, as a member of the A d ­
visory Council.
D E S M O IN E S : United Central
Bank of Des Moines is placing 10
A T M s in operation this month in
Hy-Vee Stores in the Des Moines
area. W ith the six A T M s in U C B of­
fices and one at Mercy Hospital, this
will bring the bank’s total A T M s in
use to 17.
D U N L A P : Carol Mulligan, pre­
viously assistant cashier of Dunlap
Savings Bank, has been promoted to
D Y S A R T : The First National Bank
of Tama County opened here for bus­
iness December 20 in its new build­
ing. Formerly known as Clutier
State Bank, the charter had been ap­
proved for removal to Dysart some
time ago and the bank name was
changed. A n office has been retained
in Clutier in the old building. First
National also has an office in Vining.
The mailing address at the Dysart
location is B ox 700; the phone num­
ber is 319/476-5050.
R A K E : Oscar E. Quam was pre­
sented a plaque at a dinner held in
his honor, recognizing him for 50
years of service on the board of di­
rectors of State Savings Bank. Mr.
Quam has served the past 38 years
as president and chairman. The
plaque was presented by Executive
Vice President Gordon Swenson.
S P E N C E R : Clay County National
Bank of Spencer recently changed
its name to Hawkeye Bank and
Trust. Hawkeye Bank and Trust is a

W E S T B U R L IN G T O N : Charles N.
Gross has been named executive
vice president of the W est Burl­
ington Savings Bank. M r. Gross
succeeds E d H ass who has retired,
but will remain on the board of direc­
tors. M r. Gross joined the bank in
1978 after having been vice presi­
dent with First National Bank of
Rock Island, 111.

Nebraska News
D W IG H T : The Farmers State Bank
of Dwight is a newly-chartered state
bank authorized by Paul Amen, di­
rector of banking, to begin operation
in Dwight December 27 under the
department’s emergency powers.
This allowed the Dw ight Coopera­
tive Credit Association to merge
with the new bank, which has
assumed all deposit and share bal­
ances held by the Coop, which will
become deposits of the new bank.
Farmers State Bank of Dwight is
owned principally by Kermit W a g ­
ner and associates, who will offer
ownership interests to D w ight area
residents. M r. W agner has interests
in other area banks, including
F A L L S C IT Y : Merle L. Veigel has
been promoted from senior vice pres­
ident and trust officer to executive
vice president and trust officer at
the First National Bank & Trust
Company, Falls City. The bank has
also announced that Edwin J. Jackson has been appointed operations
G R A N T : Farmers National Bank
has been sold by F. W illard J ack-,,
man, chairman, and his brother,
Charles E. Jackman, executive vice
president, to Dale Stine and his son,
Greg, of Ord. M r. Stine is chairman

Leo Kane,

Correspondent Danker

American Trust
& Savings Dank
The Donk of Opportunity
To w n Clock Plozo,
D ubuque, lo w o
CALL 319-562-1841,


M onitoring collateral
shouldn’t be a guessing game.


And you thought you knew where the collateral

W hy run the risk of doing all your usual thorough
paper work and documentation and then find your
collateral has gone to market? Without your knowledge.
That’s where Collateral Control comes in.
Whether it’s agricultural products, manufactured goods
or anything that can be counted — Collateral Control
w ill help your bank secure working capital loans.
Today’s creative lenders are putting together
more and more loan packages that include a revolving
line of credit against receivables and inventory. And
in the process they’re discovering what some banks
have known all along. That asset-based lending can be
perhaps the most secure form of lending.
See how your bank— with the help of Collateral
Control — can grow and profit with asset-based lending.
Do not assume that you have a situation too
difficult to manage. If you can put a fence around it or
a roof over it, Collateral Control has the service to fit
specific need.

Federal Reserve Bank of St. Louis

W rite us today And get control of your loan

Now available — comprehensive all new collateral management booklet.
Send me a free copy.

NWB ■ 1/83

_________________________ T i t l e __________________ i

Address..................................... .......... .............................. ;
City________________________________ State.

___ _ Z i p _______________ |


Corporate Office
444 Lafayette Road
St. Paul, M N 55101

Supplement to Northwestern Banker Newsletter 1-3-83
Federal Reserve Bank of St. Louis

C A L L O N T H E “P E R F O R M A N C E T E A M ”
where com m on transactions are handled uncom m only well.

13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C.




and G reg Stine is president of N e­
braska State Bank in Ord. Dale
Stine will be chairman at Farmers
National. Philip E. Jossi, president
at Bank of Bride, has been elected
president of Farmers National. The
Jackman brothers and Donald W .
Sexson, who has been president of
the Farmers National, will continue
on the board and in active manage­
ment for some period of time in 1983.

Minnesota News



H O P K IN S : First National Bank of
Hopkins has announced the follow­
ing management changes: Jim Cory,
John McDonald, Delores Olen, and
Bruce W atson have been named sen­
ior vice presidents of operations,
credit administration, retail bank­
ing, and real estate division, respec­
tively. Three assistant vice presi­
dents named were Rod Brostrom,
manager of the personal banking
center; Brad Krogman, manager of
the sales finance department, and
Barbara Wheeler, personnel depart­
ment. The bank has also appointed
Richard A . Huckle and W endy Kimmer as personal banking officers and
Cindy Robinson as operations of­
M I N N E A P O L IS : Michael J. Pint,
Minnesota’s commissioner of banks
since 1979 and chairman of the M in­
nesota State Commerce Commis­
sion, will rejoin the Federal Reserve
Bank of Minneapolis on January 3
as senior vice president and chief
financial officer. H e was on leave
from the bank during his tenure as
state commissioner of banks.
P A R K E R S P R A IR IE : Richard C.
Westlund, president of the First N a ­
tional Baric, and his wife, Grace,

Call our
Getting it done for you.

have sold their controlling interest
in the bank to Roger O. Johnson,
Carl V . Lind and Dennis J. Zaun.
The sale was effective December 3.
M r. Johnson is president and C E O
of First National Bank of Fergus
Falls. M r. Lind until recently was
president and majority stockholder
of the First National Bank of Vem dale, which merged in November
with First National Bank of Bertha.
M r. Zaun is a C P A in St. Cloud. M r.
W estlund will continue as president
and C E O at Parkers Prairie bank.
The three new owners have joined
the board of directors.
ST. P A U L : Andreas R. Behrendt was
recently advanced to vice president
at the Minnesota State Bank of St.
Paul. For the past year M r. Beh­
rendt served as an assistant vice
president of Corporate BancServices, Inc., an affiliated bank man­
agement firm.
ST. P A U L : Governor-Elect Rudy
Perpich has appointed John D. Chis­
holm, chairman of the Marquette
Bank & Trust Company, Rochester,
as commissioner of banking. He
served in the same capacity under
former Governor Rolvaag. M r. Chis­
holm succeeds Michael J. Pint, who
announced recently he will rejoin the
Federal Reserve Bank of M in­
neapolis, from which he had taken a
leave of absence. He returns to the
Fed as senior vice president and
chief financial officer.
ST. P A U L : Michael M . Pouliot has
been elected senior vice president
and cashier of Eastern Heights
State Bank. Previously he was vice
president and cashier. He joined the
bank in 1968 from 3M, which owns
the bank.

Illinois News
The Bank Marketing Association
will sponsor a seminar January 19 in
Chicago to help banks address op­
portunities and problems created by
the new money market accounts.
“ The N ew Accounts: Where D o W e
G o From Here” will be held at the
O ’Hare Hilton. Registration for the
seminar can be made at 312/782-1442.
R O C K F O R D : James H. Boeger has
been named vice president-data pro­
cessing at the First National Bank
and Trust Company, Rockford. Mr.
Boeger was manager of Manage­
ment Information Services of DeK alb AgResearch, Inc., DeKalb,
before joining the bank.
W IL L O W B R O O K : LaVerne E. Cor­
bin has been promoted to vice presi­
dent and manager of the loan de­
partment at First Security Bank.

North Dakota News
F A R G O : Richard H. W alstad has
been appointed to the board of direc­
tors of the Fargo National Bank and
Trust Company. M r. W alstad is pres­
ident and a majority stockholder of
Cook Sign Company, Fargo.

Colorado News
D E N V E R : Richard A . Kirk, presi­
dent, chairman and C E O of United
Bank of Denver, announced recently
that the bank’s directors have
elected Charles R. Hazelrigg as
president of the bank and as a
member of the board. M r. Kirk will
continue as chairman and CEO. Mr.
Hazelrigg, 49, has been with the
bank since 1958.

Tom Steffens
Vice President

John Henderson
Vice President

Tony Paugoulatos Jim McLaughlin
Asst. Vice President Asst.Vice President

Dave Wittenborn
Bond Officer

Rick Patton
Bond Representative







f iijSjr C om m erce B ank o f Kansas City 10th and Walnut
Federal Reserve Bank of St. Louis

(816) 234-2000




^ alar eS
Serving Banks
and Their Customers
In Iowa and Minnesota


Now filling ten openings in Iowa banks for experienced
bankers. Salaries range from $15-$40,000.

Four Nebraska openings range from $18-$36,000 plus
bonus of $10,000. Banking experience required.

Two Minnesota bank openings in the $14-$25,000 area.
Related experience required.
All our openings require good references. Some require
degrees. Your information will be treated confidentially.
Ag bank personnel specialists. Since 1968.
Employers pay us to find the people they need.
Call either office today. Ask for Linda at New Hampton
and Jeannie or Georgia at Massena.

(5 1 5 )3 9 4 -3 1 4 5
N EW H A M P T O N , IA 5 0 6 5 9
(7 1 2 )7 7 9 -3 7 4 4
M A S S E N A , IA 5 0853

P.O. Box 171 • Albert Lea, MN 56007
Rates are $5.00 per line per insertion. Add $3.00 tortile
letters per insertion. Identity of file letter advertisers
cannot be revealed. N O R TH W E S TE R N B A N K E R , 30615th Street, Des Moines, Iowa 50309. Phone 515/

46 YEAR OLD self employed lawyer desires career in
commercial banking. Presently advisor to 2 banks. Ex­
perienced in commercial law. Believes he would develop
into loan officer or bank manager after a short training
period. Desires South Dakota location but would consider
others. Write file SBA, c/o Northwestern Banker.

AG LOAN O FFICER — Minimum two years banking exper­
ience required. Ag degree a plus. $60 million central Iowa
bank. Send resume to file RBR, c/o Northwestern Banker.
____________________________________________________ (PA)
lion west central Minnesota bank. Educational back­
ground in credits and several years lending experience
preferred. Send resume to file RBS, c/o Northwestern
LENDING O FFICER — Commercial lending experience.
New position with opportunity for growth in a progressive
$36 million bank in east central Iowa town of 3,000. Send
your resume to file RBU, c/o Northwestern Banker.

Thinking about
selling your bank?
Consult with

Homer Jensen
Dick Buenneke
Over 50 years’ banking

INSURANCE O FFICER — wanted for small agency in east­
ern Nebraska town of 1,400 population. Good potential for
growth and development. Will also be able to assume
banking duties. All Inquiries confidential. Reply to file
RBX, c/o Northwestern Banker._____________________ (PA)
NUMBER 2 PERSON— for two year old, rapidly growing, in­
dependent bank located in university town. Looking for in­
dividual with solid lending experience. Knowledge of oper­
ations helpful. Send resume to: Charles Kragel, president,
Citizens Bank, P.O. Box 1027, Laramie, Wyo. 82070.
AG D EPARTM ENT— Immediate opening for agricultural
loan officer (or trainee) with a minimum of 3 years bank ex­
perience. Potential for advancement. Good compensation
and fringe benefits. Growing independent bank ($29
million) in central Minnesota town of 1,000. Send resume
to file SBB, c/o Northwestern Banker.

New Year| ^ | p ^

No fee to seller
1031 Carriers Building
Des Moines, Iowa 50309
Phone: 515-243-7434

Our Banking Friends
Malcolm Freeland, Pres.

35-45% Discount on Lamps For
Your Micrographie Equipment
Box 10 - 702 E. Wash.
Washington, la. 52353
Phone: Iowa 800/272-6459 or

1032 Carriers Building
Des Moines, Iowa 50309



dqn G4REB2S, INC.


(Our 34th year)
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right candidate for your vacancy ... or the right
“ move-up” for yourself.
202 S. 71st Street
Omaha, Nebraska 68132

Burroughs S-3200 12 Pocket Proof Machine. Only used 2 Vi
years and in very good condition. Available anytime. Priced
to sell! If interested, please call: Bradley A. Eck, First
State Bank of Clearbrook, MN. Phone: 218/776-3151. (FS)

Managem ent Opportunities
Mid-level and top management
positions open in agricultural lend­
ing with Production Credit Associ­
ations in Kansas, Oklahoma,
Colorado and New Mexico. Ag
loan experience desirable. Send
resume to:

Production Credit Associations
% Ja m es L. Grauerholz
Federal Intermediate Credit

Wichita, K S 67202


COM M ERCIAL LENDER— senior position in $70MM subur­
ban bank. Supervise all lending activities. Good growth op­
O P E R A T IO N S — $50MM com m u nity bank. Strong
background in budgeting, costing and asset/liability
management desired.
bank for absentee owner. Background in agri-credits and
operations required.
CASHIER /CON TR O LLER — handle accounting, internal
and regulatory reports for$40MM suburban bank. Accoun­
ting degree preferred.
COMM ERCIAL LO AN— staff addition to $200MM urban
bank. Should enjoy business development and have 3-5
years commercial lending experience.
AGRI-LOAN— manage Ag portfolio for $30MM rural bank.
Prefer Iowa native with Ag degree.

of Kansas City
2024 Swift - Box 12346
North Kansas City, MO 64116
“ Serving the B anking Industry Since 1970”

Vol. 11 No. 37 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306
Fifteenth 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 all mail subscriptions, changes of address (Form 3579), manuscripts, mail items to above address.
Federal Reserve Bank of St. Louis