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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 S&Ls. 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 return?” 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. □ ASK STAN FARMER 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A B A N K S O F IO W A B A N K member of Hawkeye Bancorpora tion. p ir s t in Iowa, by putting Iowa first. Bob Buenneke 10W A-. nesivtoines U 1 m I W O N A L BANK 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 ll1 /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. UNITED CENTRAL BANK OF DES MOINES, N A ■ MEMBER FDIC ■ (515) 245-7111 AFFILIATED W ITH UNITED CENTRAL BANCSHARES, INC. TOLL F R E E N U M B E R (800) 362-1615 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banco 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 cashier. 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 Brainard. 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 officer. 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 "Opportunity Colls../' 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, COLLECT » M onitoring collateral shouldn’t be a guessing game. t And you thought you knew where the collateral was. 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 your specific need. ê https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W rite us today And get control of your loan collateral. COLLATERAL CONTROL CORPORATION Now available — comprehensive all new collateral management booklet. Send me a free copy. Name NWB ■ 1/83 _________________________ T i t l e __________________ i Institution_________________________________________________________________ Address..................................... .......... .............................. ; City________________________________ State. ___ _ Z i p _______________ | MaUto; COLLATERAL CONTROL CORPORATION Corporate Office 444 Lafayette Road St. Paul, M N 55101 012/222-7792 Supplement to Northwestern Banker Newsletter 1-3-83 https://fraser.stlouisfed.org 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. FIRST NATIONAL LINCOLN 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. t » t 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 # t » 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 ficer. 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 Bond Department 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 234-2462 234-2463 234-2647 234-2691 234-2877 234-2673 f iijSjr C om m erce B ank o f Kansas City 10th and Walnut https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (816) 234-2000 AG BANKERS W ANTED <£• © Employee 4 Benefit Consultants ^ alar eS Serving Banks and Their Customers In Iowa and Minnesota INDEPENDENT SERVICE COMPANY IOWA Now filling ten openings in Iowa banks for experienced bankers. Salaries range from $15-$40,000. NEBRASKA Four Nebraska openings range from $18-$36,000 plus bonus of $10,000. Banking experience required. MINNESOTA 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 507/373-8216 W A N T ADS 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/ 244-8163. POSITION WANTED 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. (PW) POSITION AVAILABLE 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) JUNIOR COMMERCIAL LENDING O FFICER for a $75 mil lion west central Minnesota bank. Educational back ground in credits and several years lending experience preferred. Send resume to file RBS, c/o Northwestern Banker. (PA) 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. (PA) Thinking about selling your bank? Consult with Homer Jensen or Dick Buenneke Over 50 years’ banking experience 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. (PA) 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. (PA) Happy 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 SITLER’S SUPPLIES INC. Box 10 - 702 E. Wash. Washington, la. 52353 Phone: Iowa 800/272-6459 or 319/653-2123 FREELAND FINANCIAL SERVICE 1032 Carriers Building Des Moines, Iowa 50309 I NATIONW IDE dqn G4REB2S, INC. J THE ORIGINAL AGRICULTURAL RECRUITER BANK PLACEM ENT SPECIALISTS (Our 34th year) Call experienced professionals to locate the right candidate for your vacancy ... or the right “ move-up” for yourself. CORPORATE RECRUITERS MIDWEST BANKING DIVISION 202 S. 71st Street 402/393-5515 Omaha, Nebraska 68132 FOR SALE 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 AN EQUAL O PPO R TUN ITY EM PLOYER POSITIONS A V A IL A B L E COM M ERCIAL LENDER— senior position in $70MM subur ban bank. Supervise all lending activities. Good growth op portunity. $38,000 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. $28,000 EXECUTIVE VICE PRESIDENT— manage $15MM rural bank for absentee owner. Background in agri-credits and operations required. $30,000 CASHIER /CON TR O LLER — handle accounting, internal and regulatory reports for$40MM suburban bank. Accoun ting degree preferred. $26,000 COMM ERCIAL LO AN— staff addition to $200MM urban bank. Should enjoy business development and have 3-5 years commercial lending experience. $28,000 AGRI-LOAN— manage Ag portfolio for $30MM rural bank. Prefer Iowa native with Ag degree. $26,000 TOM H A G A N & ASSOCIATES of Kansas City 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “ 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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