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/ol. 16 No. 38 Des Moines, Iowa January, 4,1988 M A President Cautions: loans Need Close Attention in ’88 B y W M . H. S A Y R E , President Robert M orris Associates Executive Vice President Fidelcor, Inc. and Fidelity Bank Philadelphia, Pa. * H E significant drop in the stock market since August will cause is in e s s a n d n su m e rs to ' * iuse and reflect / i how recent r ^ I ents will affect | j ?; - % 4em, their jobs, f nd th e eco* * • * )mic environ1 |ent in general. .lis pause will B8Bi ' 3aken economactivity in the W*H- SAYRE .S. and abroad but should not be ifficient to cause a recession. This ill affect the banking environment • particularly the priorities of comlercial lenders. The economy is expected to exand at a 2% real growth rate in the north quarter of 1987 and then slow ) approximately 1% growth in the rst half of 1988. Following this, the !onomy is expected to regain ;rength and resume a 2.5% to 3% "owth rate in the second half of the ear. However, the probability of a ¡cession in 1989 has risen as a re sult of the stock market crash and the reduced flexibility provided to the Federal Reserve. A lth ou gh the consumer and manufacturing markets in our coun try are so diverse and regionalized, our economy is now a subpart of a global economy. Moreover, financial markets have become international in scope. W e now are paying the con sequences of poor economic policies and “ spend now, pay later“ eco nomic behavior on the part of con sumers and the federal government. W e finance government deficit spending through foreign creditors, our reliance on foreign imports, and the enormous trade and current ac count deficit. In addition, excess dollars are inadequately low saving rate (coupled with high saving rates overseas), and the creation in the pri vate sector of significantly more debt have pushed us into an eco nomic structure in which our ability to control our own destiny is dimin ished. The players in credit markets have dramatically changed over the years and substantially expanded the source of loanable funds avail able to our customers. This means heightened competition for commer cial bank lenders. Sources of credit that impinge on traditional commer cial banking markets include com mercial paper, Eurodollars, junk bonds, nonbank companies, and foreign commercial banks. For ex ample, commercial paper now pro vides more than $80 billion to nonfinancial companies. So-called junk bonds provide about $157 billion in additional credit. Foreign banks as direct competitors also make loan volume very difficult to obtain. The growth of loans over the last 12 months varies significantly from region to region. For instance, com mercial and industrial loan growth for large commercial banks in the Boston, Philadelphia, Richmond, Atlanta, and St. Louis Federal Re serve Districts for the 12 months en ding September, 1987, grew in ex cess of 12% compared with the na tional average of 5.3%; for N ew York, Cleveland, and Chicago Fed Districts in excess of 4.5%, and for San Francisco 2%. The Minneapolis, Kansas City, and Dallas Fed Dis tricts showed declines. W hile these figures for certain re gions look healthy, don’t be mes merized: The gains since January, 1987, are significantly less. The Philadelphia, Atlanta, Richmond, and St. Louis Fed Districts showed gains above 2%, with none above 8%. Boston’s growth was relatively unchanged while the others had de clines ranging up to 17% for Dallas. This resulted in a net decline for C & I loans at large banks nationally of 4.1% since January. For all banks, C & I loans increased 1%, showing that smaller banks did reflect After more than 120 years of providing correspondent banking services to the Midwest, you can say we’ve had a chance to polish our trade. Find out for yourself. Count on Commerce. 1800892*7100 1800821*2182 * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * (Outside Missouri) ¿2¡itCommerce Bank o f K ansas City 2 Norwest Bank Des Moines, N.A. To: Bank President... Call (515) 245-3131 or toll-free (800) 362-2514 NORWEST BANKS mmmmm mmymm We can help you maximize the perfor mance of your people. We specialize in: • Testing • Recruiting • Compensation Plans Call Us! Member FDIC Teamwork: one of the reasons we’re first in Iowa. David L. Hansen, CCPf ft. HAMILTON Tom Quinlin John Rigler growth — most likely due to their being the single source of supply. It is interesting to note that real estate loans at large banks increased approximately 10%. I anticipate this real estate growth to moderate in 1988. To me, the recent pattern of less C & I loan demand, the belief that pension funds will shift from the stock market to debt issues, and the softening of our economic pic ture signifies a bleak loan demand picture in 1988. Stockholders expect earnings to grow. I f loan demand is weak and spreads from increased competition are narrower, then gains will have to come from the re duction of expenses. W e as commercial lenders have a difficult challenge ahead. Our cul- ASSOCIATES ture drives us to increase volume. However, before we decide to do that, we should stop, look, and listen and determine whether the jud g ments we make to maintain or gain volume are prudent. W e should beware of lengthening terms, relax ing loan agreement standards, not insisting on collateral, or permitting our loan policy standards to slip. Let us not fall into the trap of issuing commitments to industries we don’t know, or granting larger commit ments than usual to single bor rowers. W e should concentrate this year on reassessing the creditworthiness and resilience of existing and new customers to ensure that the port folio does not deteriorate. □ Chicago Fed Schedules Expedited Funds Seminars / k . J Jerry Trudo MNB Correspondent Banker Together We Can Accomplish Great Things Call 319-398-4306 or toll free 1-800-332-5991 Seminars for financial institu tions on Expedited Funds Availabil ity proposals will be held at loca tions throughout the Federal Re serve Bank of Chicago’s Seventh District during the month of Janu ary. Each four-hour seminar will ad dress the key provisions of this criti cal Act, including schedules of funds availab ility , disclosure require ments, and the optional implications and responsibilities regarding the collection of checks. Illinois: Contact Keith Motycka, 312/3222195 or Diana Schwertfeger (2347). Two ses sions each day—8:00 a.m. to noon and 1:00 p.m. to 5:00 p.m. Jan. 4 & 5—Chicago A.I.B., Insurance Ex 100 Court Ave., Suite 308 Des Moines, Iowa 50309 1 515/282-0221 change Bldg., 22nd Floor (two days). Jan. 6—Northbrook, Allgauers Hotel | Jan. 7—Oak Brook, Stouffers Oak Brook* Jan. 8—Harvey, Holiday Inn Jan. 11—Rockford, Best Western - Cloe Tower Jan. 14—South Bend, Ind., Marriott Jan. 15—Joliet, Holiday Inn k Jan. 19—Springfield, Holiday Inn/Holidom Jan. 20—Rantoul, Holiday Inn Jan. 21—Peoria, Ramada Hotel Iowa: Contact Kim Johnson, 515/284-88CT X239. If two sessions daily, same hours ar above. If one session, it is 1:00 p.m. to 5:0} p.m. Jan. 6—Sioux City, Hilton Hotel Jan. 7—Ft. Dodge, Best Western Sta Village Jan. 8—Des Moines, Hotel Savery (2 set sions) Jan. 11—Cedar Rapids, Stouffer Five Sea sons Hotel Jan. 12—Davenport, Blackhawk Hotel (; sessions) Jan. 13—Dubuque, Best Western Midway Motor Lodge Jan. 14—Waterloo, Holiday Inn Civic Center Jan. 15—Clear Lake, Best Western Holiday Motor Lodge Jan. 20—Ottumwa, Days Inn. Wisconsin: Contact Holly Silva, 414/276f 2323 X250. One session each city, 7:30 a.mj to noon. Jan. 11—Green Bay, Embassy Suites Jan. 12—Madison, Concourse & Governor’s Club Jan. 14—Stevens Point, Holidome Jan. 15—Milwaukee, Hyatt Regency MiM waukee. □ Iowa News W A T E R L O O : A t W aterloo Saving^ Bank, assistant vice presidents t's easier to talk Iowa banking with people w h o live it — people like Steve Brewer and the corre spondent staff at Bankers Trust. I C a ll 1-800-362-1688 or 515/245-2424. Strength Eastern |owa National Digitized forMerchants FRASER -D IC Cedar Rapids. Iowa 52401 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Steve Brewer Bank i3 A BANKS OF IOWA BANK Des Moines, IA Member FDIC Commercial Banking Officer U nited M issouri Bank announced Investm ent Banking Services in ’28. It didn’t m ake national headlines. It did make a difference. Since then, U nited M issouri has helped thousands o f banks build th eir investm ent portfolios. It has done it b y thorou gh ly analyzing th e m arket, skillfully w eigh in g y ield versus risk and carefully avoiding inappropriate investm ent strategies. A s a result, U nited M issouri custom ers have consis te n tly e x p e rie n c e d p o s itiv e resu lts th rou gh yea rs o f econom ic change. Tbday, U nited M issouri’s Investm ent Banking D ivision still makes a difference. It can m ake a differen ce fo r you. Call U nited Missouri concerning your bank’s investm ent portfolio. A n d, pick the proven perform er. lb U N ITE D M ISSOURI B AN K of Kansas C ity n.a. Member FD IC # https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m w P.O. Box 419226, Kansas City, Missouri 64141-6226 816-556-7200 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 FirsTier Correspondent Services More of what it takes to serve you well. F irs T ie r B an ks Lincoln • Omaha FirsTier Bank, N.A., Lincoln and FirsTier Bank, N.A., Omaha, Members FDIC D avid A . Fegley, Randall G. Ledger and James H. Jensen were promoted to vice presidents. They serve in real ^ estate lending, ag lending, and w Metro Realty and farm management respectively. Controller Rick A. Thuesen was also promoted to vice president. BANKING 'Professional assistance in hiring and career advancement" C R E E E S quality service by experienced professionals Nebraska News 525 Merle Hay Tower Des Moines, Iowa 50310 515-276-1151 Jean Eden 515-276-1151 The Nebraska Independent Bank ers Association will host its Legisla tive Dinner for members of the Neb• raska legislature on Monday, Janu Minnesota News ary 11, at 6:30 p.m. in the Nebraska Thomas P. Schepers has been ap Club in downtown Lincoln. N I B A pointed vice president—education of members from over the state have the Minnesota Bankers Association. been invited to make reservations H e previously served as training ® with the N I B A office in Lincoln to and development officer for First attend this im portant dinner. Bank System. Speaker of the Legislature Bill B ar ret, Lexington, will make brief com- M IN N E A P O L I S : Norwest Corpora ^ ments and introduce state senators tion will merge all 17 Norwest banks ® and their spouses. N I B A President in the Twin Cities metro area into a Jim Bohart, vice president and cash single bank today, January 4. Also ier of H arvard State Bank, will pre being merged are all Norwest banks and a trust company in North D a side at the dinner. kota into one bank, and three banks * * * in northwestern Minnesota into one The Nebraska Bankers Associa bank. The Twin Cities Bank, called tion will offer its 1988 Lending Con Norwest Bank Minnesota, N .A ., will ference, “ The Key to Profitability,” have total deposits of about $5.5 bil on January 20-21 at the Kearney lion, and a lending limit of $95 mil • Holiday Inn. Banking consultant lion. A rt Pulis will speak and there will be M I N N E A P O L I S : A t R esource a number of breakout sessions. Bank & Trust, Grey ton I. Becker Banker/humorist Steve Feu-son will has been promoted to senior vice be dinner speaker and address the president. H e previously served as y topic of stress. Schedule on the 20th vice president, corporate secretary begins with registration/continental for Resource Companies and Re breakfast at 8:30 and ends with din source Bank & Trust. He joined the ner at 6:00. The session on the 21st company in 1975. _ is from 8:30 to noon. Fee is $110 and • the cost for guests to attend the din ST. P A U L : Am ong recent promo ner is $20. Contact the N B A to tions at American National Bank register. was the advancement of Ronald W . Sandi Garner 515-832-1258 Tues / Wed / Fri Confidential. Fees Paid by Employer. Duffey to vice president—bonds & investments. H e joined the bank as assistant vice president in that de partment in 1975 after over 30 years with First Bank St. Paul. W isconsin News M I L W A U K E E : First Wisconsin Corporation will acquire Rose Hold ing Co., a one-bank holding company in Roseville, Minn., following regula tory approval. This is the third bank acquisition agreement First Wiscon sin reached in Minnesota in 1987. Terms call for First Wisconsin to pay $19.2 million in First Wisconsin common stock for the $127 million Roseville Bank in Roseville. Wyoming News S H O S H O N I: The F D IC has ap proved the transfer of insured de posits and fully secured or preferred deposits of the First State Bank at Shoshoni to First State Bank of Thermopolis. The $5.1 million asset Shoshoni bank w as closed on December 18. N o bids were received for the failed bank. M iM iilllllWiB [First Interstate Bank We’re setting the pace[ 1- 800 - 362-1615 Bill Mullins Correspondent Services https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nancy Tierney Investment Services WANT ADS— Rates are $5.00 per line per insertion. Add $5.00 for file letters per insertion. Identity of file letter advertisers cannot be revealed. NORTHWESTERN BANKER, 1535 Linden Suite 201, Dee Moines, Iowa 50309. Phone 515/244-8163 POSITION AVAILABLE SR. LENDER needed for recently acquired $43MM Bank. Position could lead to PRES/CEO. Looking for that aggres sive and analytical leader. Send resume to File No. WLV c/o Northwestern Banker. (PA) EXECUTIVE VICE PRESIDENT for expanding suburban/ rural bank. Looking for that individual that likes smaller communities that are within a reasonable distance of a major metro area. Salary commensurate with experience. Send resume to File No. WLW c/o Northwestern Banker. _______________________________________________ (PA) TRUST INVESTMENT OFFICER Northeast Iowa bank seeks an experienced trust in vestment officer to manage client portfolios in its $140MM Trust Department. The position has invest ment responsibility for some 300 discretionary ac counts, including personal trusts, managed and advi sory agencies, employee benefit accounts and com mon trust fund totaling approximately $55MM. This highly visible position requires six or more years experience in equity and fixed income portfolio management, preferably in a trust department. Excel lent written and oral communication skills are re quired, and a MBA or CFA is preferred. Business development is an integral responsibility. Excellent compensation and benefit package com mensurate with experience. Forward resume, includ ing salary history to File No. WML c/o Northwestern Banker. (PA) AG/COMM. LOAN OFFICER. 3-5 yrs. experience in ag lend ing and general banking. Western Neb. bank. Send resume to File No. WLU c/o Northwestern Banker. (PA) FOR SALE RECONDITIONED BRANDT Coin Sorters-Counters BRANDT Currency Counters New Warranty 402-571-5577 FOR SALE PORTABLE BANK BUILDING. 14’ x 65’ with Mosler vault & drive-up equipment + miscellaneous other equipment. Contact Wilton Savings Bank, Wilton, IA (319) 732-2077. (FS) Paul W . Olander Company Bank Stock Appraisals and Loan Reviews 1073 Plummer Lane S.W. Rochester, M N 55902 (507) 285-9271 INSURANCE CAPITAL PERSONNEL SERVICE 714 First Interstate Bank Building Des Moines, Iowa 50309 515-283-2545 AGRIcareers, Inc. Marty 712/779-3567 Massena, IA 50853 Annette 515/394-5827 New Hampton, IA 50659 BANKERS AVAILABLE SR LOAN OFFICER Tireless performer has overseen all lending in prosperous $42M bank looking to move ahead. Seasoned manager currently has $16M portfolio that covers all aspects of community banking. Degreed, several banking schools. $43K. CASHIER Efficiency expert! Has worked all over the bank to lower costs and increase profit. Dead-end in current position due to lack of opportunity, ready to move ahead. $27K. CREDIT ANALYST Outstanding credentials. Broad range financial back ground that includes 2 + years in loan review and analy sis. Trained in holding co. environment and currently work ing with the latest software available. $22K. P rofessional A uc tio n ee r Real E s tate Broker and A ppraiser is lÉË.. 1 317 6th Ave, Ste. 650 Des Moines, IA 50309 (515) 244-4414 ALL FEES COMPANY PAID Dwayne Smith Banking, Insurance and Leasing Specialist (515) 224-0830 SALES CONSULTANTS 1501 50th Street #210 West Des Moines, IA 50265 POSITIONS AVAILABLE EXECUTIVE VICE PRESIDENT Fill a vital role with A Northern Iowa bank seeking senior management continuity. Desire 10+ yrs banking experi ence with emphasis in ag/com’l lending and proven busi ness development skills. A terrific opportunity! To$50K. Job #NW2682 Be part of the management team! Small outstate Mon- A tana bank desires a senior ag lender. 4 + yrs ag lending exp and strong work-out expertise required. To $30K. Job #NW2683, COMMERCIAL LENDER Do you feel taken advantage of? Has another year passed and still no career movement? Start the new year with a fresh start! A major Eastern SD bank needs a com’l lender with 2 + yrs exp. Must be degreed. To $30K. Job #NW2684 “THE RIGHT FIT” FOR MORE INFORMATION CONTACT PAUL GENTZKOW OR JAN PETERS B anking Placem ent Specialist CANDIDATES OF THE WEEK: SR. LENDER - Degree and nearly 8 years in banking with strong commer cial and ag skills. Presently #2 in bank over $100 million - a cash flow lender who knows the tools. Very community conscious. $ to 50K (Incentive oriented). AG LOAN OFFICER - B.S. Ag Eco nomics with distinction and over 5 + years ag loans (sat on loan commit tee for all loans) and attended com mercial lending school. Big system trained. Super references. $25-30K. Members of a nationwide recruiting network for top selection. Contact our Sue Lundquist Bank specialists Mel Hansen CPC FOR FURTHER INFORMATION CONTACT KURT ROSENCRANTS ROBERT HALF Employer pays fee. AG LENDER N. Iowa bank. Ownership potential. Good town. $40-$50,000. CONTROLLER Financial Careers, Inc. Two Ruan Center/Sulte 1000, Des Moines, IA 50309 515/245-3786 COL. GORDON E. TAYLOR CEO Seek person with bank controller and operations ex perience. N. III. $30-$40,000. COMMERCIAL LENDER— Polished professional with fc mal credit training and proven leadership ability. Wil, supervise and direct 3 loan officers in a large commercial department of a metro bank................................. To $50,000. Serving bankers quietly and efficiently. Box 949 - M aso n C ity , la. 50401 515/423-5242 Insurance and lending. Minn. bank. Excellent poten tial! $25-$35,000. TRUST OFFICER—Will supervise and direct the Employee Benefits department of a large Trust division. JD preferred but not required......................................................To $40,000. Please contact Lorraine Lear or Malcolm Freeland con cerning these and other Midwest banking opportunities. COMMERCIAL LOAN OFFICER—$300MM bank. Iowa. Re quires 2-5 years commercial lending experience & formal training in same. $25-$32,000. Contact File No. WLK c/o Northwestern Banker. (PA) SENIOR LOAN OFFICER with experience in commercial real estate and SBA loans. College community. Send resume to File No. WLT c/o Northwestern Banker. (PA) POSITIONS AVAILABLE AG LOAN OFFICER—Community bank needs an aggres sive, promotable lender who has the desire to move up. Degree plus excellent people skills.................... To $30,000. --^= ELLS Ells Personnel Systems 1129 Plymouth Building Minneapolis, MN 55402 612-333-113I CELEBRATING OUR 75th ANNIVERSARY BY SERVING OUR BANKING CLIENTS W ELL! m ROBERT HALF 3636 IDS Center Minneapolis, MN 55402 (612) 339-9001 ALL FEES COMPANY PAID POSITIONS AVAILABLE TRUST MARKETING - large urban bank. Requires degree and trust experience. $35K REAL ESTATE LOAN - single family residential and secon dary market experience required. Proximity of major metro area. $40K LOAN REVIEW - large bank experienced required. Both junior and senior level positions available. $28-$40K COMMERCIAL LENDING • V.P. positions in urban and large suburban banks. Personal portfolios from $20MM to $50MM. $40 K BRANCH MANAGER - handle small business and con sumer credits. Med-size community affiliate of multibank holding company. $24K Additional listings for commercial lending and trust officers. Resume’ requested. TOM HAGAN & ASSOCIATES P.O. Box 12346/2024 Swift North Kansas City, MO 64116 816/474-6874 “Serving the Banking Industry Since 1970” Vol. 16 No. 38 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $24.00 per year. Second class postage paid at Des Moines, Iowa. Address all mail subscriptions, changes of address (Form 3579), manuscripts to Northwestern Banker, 1535 Linden https://fraser.stlouisfed.org St., #201, Des Moines, Iowa 50309. Federal Reserve Bank of St. Louis
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