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January 5,1987

Des Moines, Iowa

01.15 No. 38

Minnesota Independents Oppose
/ir s t Interstate Acquisition
|8J| IN N E S O T A 's reciprocal inter­
d i state acquisition law, enacted
*y the last state legislature and efective last July 1, is gettin g its first
'jquisition test b y the Independent
ankers o f M innesota. When M a­
ne Corp. o f M ilwaukee filed appliition w ith state commerce commisoner M ichael H atch to acquire
ommunity State Bank o f Bloomgton, which has nearly $200 milon assets, IB O M challenged that
'quisition, stating that M arine had
ot adhered to the new M innesota
w, which specifically requires an
it-of-state purchaser to specify the
et new funds it w ill bring into the
^ate and the developm ental loans it
i l l make.
N orbert M cCrady, executive vice
resident o f IB O M said his organiation is m erely asking the comíerce commission to require M arine
o follow the new law. H e said M a­
me is not answering those quesons at this tim e, givin g only
eneralized answers.
M r. M cCrady said it is im portant
>r IB O M and for the commerce
ommission to pursue the requirenents o f the new law w ith this first
pplication as a precedent-setting
ction. “ I f they get by w ith slipping
nder the ten t,” he said, “ everyone
lse w ill expect to do so and rightally so.” H e feels outsiders taking

advantage o f the new law should be
expected to perform as socially re­
sponsible as M innesota banks have
been known to do for decades.
M r. H atch agreed, indicating
guidelines would be needed, and
that the first application sets an im ­
portant precedent for those that
may follow.
M r. H atch extended the comment
period to January 21 and indicated
he would schedule a hearing within
30 days o f that date.
M r. M cCrady commented that
“ The M innesota legislature pro­
mised this would result in net new
funds and developm ental loans, and
until they show us they intend to act
at least as w ell as our M innesota
banks then I think they should pack
up their bags and go home.”

Moody’s Downgrades Citicorp,
Citibank Debt Ratings
M oody’s Investors Service low ­
ered the long-term ratings o f C iti­
corp, its lead bank Citibank, N .A .,
and certain other subsidiaries on
D e ce m b er 16. A m o n g o th e r
changes, C iticorp’s senior debt rat­
ing was lowered from A a l to A1 and
Citibank’s senior debt ratin g was
reduced from A aa to Aal. The rating
changes reflect M oody’s concerns
about Citibank’s asset quality and

about C iticorp’s capital adequacy
and capital structure.
W ith re s p e c t to C itib a n k ,
M oody’s expressed concern about
the outlook for significant im prove­
ment in the bank’s level o f problem
assets, which have remained high
despite rising charge-offs. The rat­
in g agency also cited its expectation
o f continued pressure on Citibank’s
core profitab ility, which has suf­
fered due to rising credit expense.
Although the bank’s reserve has
been augmented substantially, it
nonetheless remains low relative to
the reserves o f peers and to the
bank’s charge-offs, M oody’s stated.
W ith respect to Citicorp, the rat­
in g reduction reflects both M oody’s
revised opinion w ith respect to C iti­
bank and its concern about the hold­
ing com pany’s double leverage—
that is, the use o f parent company
debt to finance equity in its subsi­
diaries. M oody’s said that C iticorp’s
double leverage, which is expected
to remain at high levels, represents a
significant risk element, especially
in view o f the com pany’s modest
consolidated capitalization, the com­
p lexity o f its capital structure, and
an apparent willingness on the part
o f federal banking regulators to sac­
rifice bank holding company inter­
ests in order to conserve capital at
banking subsidiaries.
M oody’s said it recognizes the
significant progress Citicorp has
made in building a substantial retail
business base, which m ay offer more
predictable returns and more stable

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

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

Firslier Bank, N.A., Lincoln, M em ber F D IC

im m ediate inform ation, contact Lis
W alsh at the Farmers and Mer-.
chants Bank and Trust in Burling
D U B U Q U E : John K . Schmidt ha*
been prom oted to vice president, fi
nance, at Dubuque Bank and Trus
Company. H e joined the bank
1984 as auditor.

Nebraska News
funding—both im portant and bene­ and guaranteed subordinated debt
ficial steps. The progress that the from Aa2 to A2, preferred stock
corporation has made in building re­ from “ aal” to “ a2” , and shelf regis­
serves and capitalization has also trations o f senior debt from (P )A a l
been beneficial, the ratin g agency to (P)A1, subordinated debt from (P)
noted. H owever, despite these posi­ Aa2 to (P)A 2, and preferred stock
tive steps, M oody’s expects that from (P )“ aal” to (P )“ a2.” C iticorp’s
C iticorp ’s perform ance measures Prime-1 ratin g for com mercial paper
w ill continue to be under pressure was not under review, and C iti­
and that its reserves and capitaliza­ bank’s Prime-1 ratings for short­
tion w ill continue to la g the indus­ term deposits and for commercial
tr y ’s.
paper program s supported by the
M oody’s lowered from A aa to A a l bank were also not under review.
In connection w ith the above ac­
the ratings on Citibank’s senior debt
and on long-term debt supported by tions, M oody’s lowered from A a l to
its letters o f credit. The bank’s rat­ A l the ratings o f Citibank (New
in g for long-term deposits was also York State) N .A . and Citibank
reduced from A aa to A al. The rat­ (South Dakota) N .A . for long-term
ings on C iticorp’s senior debt and deposits, in view o f the units’ close
guaranteed senior debt were lowered relationship w ith and partial depen­
from A a l to A l, subordinated debt dence on their parent, Citicorp.
Citicorp, is the largest bank hold­
ing company in the United States
and is based in N ew York City.

Iowa News

J e rry T ru d o
MNB Correspondent Banker

Together We Can
Great Things
Call 319-398-4306
or toll free 1-800-332-5991

Strength of \
|ow a_^f
Merchants National Bank m

Cedar Rapids. Iowa 52401
Member F 0 1C
Federal Reserve Bank of St. Louis

a ban ks

OF IOWA bank

The Iow a Bankers Association,
for the first tim e, w ill hold a Con­
sumer Credit School M ar. 22-27 at
Drake U n iversity in Des Moines.
The curriculum for the school has
been developed in cooperation w ith
the Am erican Bankers Association,
industry experts from throughout
the country, A B A s ta ff members
w ith extensive educational back­
ground, the school advisory board
and IB A sta ff members. Cost for the
school is $700, which includes room,
meals, casebook and study ma­
terials. Contact the IB A for more in­
form ation.
* * *
Chairman o f Group 11, E d John­
stone, president o f Keokuk Savings
Bank and Trust Company, has an­
nounced that the 1987 Burlington
Group M eetin g is scheduled for Feb.
22-23 at the H oliday in Burlington.
This date is not W ashington’s birth­
day holiday weekend. M ore inform a­
tion w ill be available later, but for

The Nebraska Bankers Associaf
tion ’s 1987 Bank D irector Forum;
w ill be held Jan. 13 at N orth P la tt
Stockman Inn; Jan. 14 at Columbu
H oliday Inn, and Jan. 15 at Omah
Red Lion. Featured speakers includ
Robert D. Dye, senior vice pres:’
dent, Financial Shares Corporation
Chicago, 111.; Charles H . P fa ff, fiel
office supervisor, FD IC , Grand Is ­
land, and James E. Tracy, director
Omaha field office, O ffice o f th
Com ptroller o f the Currency. Regis
tration fee is $95 per registrant an
w ill be accepted upon space avail
ability. A ll senior management;
presidents, CEOs and bank direc
tors are encouraged to attend.
* * *
“ Sharing Today...Shaping Tom or­
row ...” is the theme o f this year’s
N B A Bank E xecutive Conference^
which w ill be held Feb. 11-15, 1987
at M arriott’s M arco Beach Resort,
M arco Island, Fla. Dr. John Suther­
land, president, S R A Research and
Strategic Planning, a subsidiary o f
Swanson Russell Associates, Lin
coin, w ill present “ Service M arket­
ing-M aking the D ifference.” Speak­
in g on the bank and financial land­
scape for the 21st century w ill be Dr.
Robert M ayer Evans, senior associ
ate o f The N aisb itt Group in Wash-,
ington. Rick R. Sanders, senior vice
president o f A ffilia te d M idw est
Bancs, Inc., Bellevue, w ill speak on
“ Financial E state Planning for th
Banker and Spouse.” Gene Perre.
w ill entertain w ith “ Laughing M at­
ters.” R egistration fee for bot
bankers and spouses is $330 per pe;
son. The conference registrati
form must be returned to the N1
office by Jan. 23, 1987.

LIN C O LN : Jay D. Callahan hbeen prom oted to vice presiden
municipal governm ent bond d r
sion, and Charles Greenway to v i
president, agricultural financial i
stitutions division at FirsTier Ba
Lincoln. M r. Callahan joined

W e ste rn




1 9 4 7 ------------------- —


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------ 1986

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For a detailed brochure of com pany
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S treet Address





4900 OAK • SUITE 301 • KANSAS CITY, MISSOURI 64112 • 816/753-7440
Federal Reserve Bank of St. Louis



Directors and Officers
Limited Liability
is now available
coverage up to $ 100,000

Call or Write
Now exclusively represented in Iowa by
Iowa Bankers Insurance and Services, Inc.
1-800-532-1423 (Iowa)

435 Kansas Avenue P.O. Box 1654
Topeka, Kansas 66601


Serving bankers for more than 75 years
Federal Reserve Bank of St. Louis

Supplement to Northw estern Banker N ew sletter 1-5-87
Federal Reserve Bank of St. Louis

bank in 1978, and M r. Greenway
joined the sta ff in 1974.
S TA M F O R D : M ark A . M ercer has
been prom oted from cashier to vice
president at the Stam ford Bank.
W A U N E T A : A n open house was
held at the W auneta Falls bank on
Dec. 17 to honor J. W iley Green,
chairman, for his 50 years o f service
* to the banking industry. Approxi­
m ately 120 people attended the oc­




Minnesota News
A D A M S : Robert D. Hanson has an­
nounced his retirem ent as president
from The Farm ers State Bank o f
Adam s. H e has been w ith the bank
since 1967, serving as president
since 1981. Succeeding him is Gor­
don K laudt who has been w ith the
bank since 1963, serving m ost recently as vice president-cashier.
Roland H o ffert has been named as
vice president-cashier. H e was for­
m erly president o f Am erican Bank,
Danube, and m ost recently was a
loan officer w ith Farm Credit Ser­
vices in Elkhorn, W is.

ga ll joined the bank in 1966 and
became president and chairman o f
the board in 1976. M r. Scuglik most
recently served as executive vice
president o f the bank.

South Dakota News
A B E R D E E N : Norw est Bank South
Dakota, N .A . has announced that
Kenneth D. Loken has been ap­
pointed senior vice president in the
bank’s Aberdeen branch. H e had
been president o f the Norw est Bank
operation in Groton since 1986. H e
began his banking career at N orw est
Bank Aberdeen in 1978.

Colorado News
B O U LD E R : Annette Taylor has
been elected a vice president o f Colo­
rado National Bank—Boulder. She
joined the bank in 1973 and is cur­
rently responsible for the bank’s
m arketing and business develop­
ment program s as w ell as its human
resources department.

D E N V E R : U nited Bank has an­
nounced that Sally J. K elly and Con­
rad W . Steller have been named vice
presidents. Ms. K elly, who joined
the bank in 1965, manages the con­
Illinois News
sumer bank’s seniors and profes­
• C H IC A G O : Stephen S. Cole has sional markets. M r. Steller works in
been named president o f M O N E Y real estate banking. H e joined the
S T A T IO N o f Illinois, Inc., the new­ bank in June.
ly consolidated automated teller net­
work o f M O N E Y N E T W O R K and
# C A S H S T A T IO N . H e m ost recently D E N V E R : The F D IC has approved
served as vice president and head o f the assumption o f the deposit liab ili­
the electronic banking division o f ties o f Landmark N ational Bank,
Denver, by O M N IB A N K Leetsdale,
First N ational Bank o f Chicago.
a newly-chartered subsidiary o f OMN IB A N C O R P , Denver. The failed
bank’s only office reopened Dec. 19,
W isconsin News
1986, as O M N IB A N K Leetsdale.
K E N O S H A : Rudolph F. Scuglik has Landm ark N ational Bank, w ith
been elected president and chairman total assets o f $10.7 m illion, was
0 o f the F irst N ational Bank o f Keno­ closed Dec. 18, 1986, by R obert J.
sha, succeeding K nox D. Corrigall Herrmann, senior deputy com ptrol­
who retired Dec. 31,1986. M r. Corri- ler o f the currency, and the F D IC

acri careers,inc.


Notice is hereby given that, by virtue o f the de­
fault o f ASCO, Inc. and the payment o f certain in­
debtedness w hich exceeds $1,193,000.00, 7,784
shares o f common stock o f Rock Rapids State
Bank, Rock Rapids, Iowa (“ Bank” ) (the "bank
shares” ) w ill be sold by First National Bank in
Sioux C ity (“ Secured Party” ) at a public sale on
January 21, 1987, at 10:00 A.M. at the o ffices of
First National Bank in Sioux City, 5th and Pierce
Streets, Sioux City, Iowa 51101, all subject to the
provisions hereof. ASCO has stated that the bank
shares represent all but 216 of the outstanding
shares of Bank.
Any shares sold pursuant to th is notice w ill be
sold In a single block only to a single purchaser.
The Secured Party reserves the right to bid and to
become the purchaser at the sale and to credit
against the purchase price any and all lia bilities
due it from ASCO. The Secured Party reserves the
right to reject any bid and w ill not be obligated to
make any sales pursuant to th is notice.
The purchase (If other than the Secured Party)
w ill be required to provide an investment letter
stating that the bank shares are being acquired
for the purchaser’s own account and not w ith a
view to resale or distribution. The purchaser must
also establish to the satisfaction o f the Secured
Party that purchaser is knowledgeable and experi­
enced in banking, business, and financial affairs
and is capable o f evaluating the m erits and risk of
its proposed purchase. Purchaser must comply
with conditions or requirements which may be im­
pose^ by state o f federal banking regulatory
This notice does not constitute an offer to sell
or so licit an offer to buy the bank’s shares in any
state to any person to whom it is unlawful to make
such offer to solicitation in such state.
There are additional term s and conditions of
the sale. For a copy o f such additional term s and
conditions and inform ation concerning Bank,
please contact Gary W. Stevenson, Vice Presi­
dent, First National Bank in Sioux City, Iowa, (712)
277-0618 at the address stated above.
First National Bank in Sioux City
5th and Pierce Streets
Sioux City, Iowa 51101

was named receiver. O M N IB A N K
Leetsdale w ill assume about $9.1
m illion in 1,600 deposit accounts
and has agreed to pay the F D IC a
purchase premium o f $37,500. It
also w ill purchase certain o f the
failed bank’s loans and other assets
for $7.2 million. The F D IC w ill ad­
vance $3.1 m illion to the assuming
bank and retain assets o f the failed
bank w ith a book value o f about $3.5
PU E B LO : K evin S. M cCarthy has
been elected a vice president o f Col­
orado N ational Bank-Pueblo. H e
joined the bank in 1983 as a com­
mercial loan officer.

t's easier to talk Iowa banking
with people w ho live it — people
like Ben Eilders and the correspon­
dent staff at Bankers Trust.


C a ll 1-800-362-1688 o r 515/245-2424.
Jean 712/779-3567
Massena, la. 50853

Sandl 515/394-5827
New Hampton, la. 50659

C onfidential. Em ployer paid fees
Federal Reserve Bank of St. Louis

Trust Des Moines, IA
Member FDIC

Ben Eilders
Senior Vice President



This is a dream Job! A western Wise bank w ith a clean loan
portfolio within 45 minutes o f the Twin C ities needs a mar­
ket motivated President. Desire 6 + yrs coml lending exp,
proven mgmt and marketing abilities that w ill make you
visible in the community.
To $60K.
Job #NW9501.

Do you enjoy the outdoor activities o f northern Minn? A
med sized bank needs a #2 person to oversee the loan
portfolio and assist in the mgmt of the operations area.
Desire 5 + yrs coml lending exp, strong interpersonal
skills and willingness to be a key civic leader.
Job #NW9502.

Are you ready to manage an ag loan dept? A proven profit­
able Minn bank needs a manager o f ag loan department.
Desire 4 + yrs ag lending exp, strong analytical abilities.
This position is part o f the executive mgmt team.
To $35K.
Job #NW9503.

3636 IDS Center
Minneapolis, MN 55402

(612) 339-9001


AG LENDER/V.P. FmHA Guarantee loan experience j
w ill place you on the s ta ff o f th is $98mm bank. I
| Documentation and analysis is also important to 1
this well diversified loan portfolio. A full package of §
I benefits enhance this County Seat com m unity.........3
.......................... $35,000.............................. Call Steve.
| BANK LOAN REVIEW OFFICER. Strong capital and ’
: few loan problems make this attractive! D ocum en-1
! tation and analysis put you in charge of loan quality |
[ in th is $80mm bank. A performance based profit i
sharing plan make this com m unity of 5,000 even jj
i more relaxing................ $40,000................. Call Steve. I
i regulation knowledge makes you a s ta ff member in ;
I this $100mm bank. Start w ith a $4mm portfolio to \
| become fam iliar w ith this 110,000+ population j
• community. Fishing and water sports make this very >
'p le a sin g ! ................ $25,000..................... Call Steve.
I BRANCH MANAGER. 10+ years banking with ,
j heavy commercial loan emphasis, supervisory ex- \
| perience, and degree for $60 + mm holding company <
i bank branch................To $45,000................ Call Marj.
| AG LOAN OFFICER. 1 + year ag lending, FmHA J
guaranteed loan fam iliarity, ag degree to land posi| tion in aggressive holding company bank. Upward (
| m o b ility !................ To$18,500....................Cali Marj.
\ PRODUCT MANAGER. V.P. in charge of commercial
| loan department. 5 + years loans and business deI velopment, good documentary skills for $90mm +
bank.......................To $37,000...................... Call Marj.
| PRIVATE BANKING OFFICER. Major bank holding ;
i company! 2 + years commercial lending for you to
: handle their professional clients. Advancement pos- i
| sibilities within department and throughout metro! j
! .................... To mid $30’8......................... Call Bruce. |
| AG LOAN OFFICER. At least 2 years ag lending and j
| ready for something better? This bank wants your
! involvement in com m unity activities and soliciting |
new business. Bank is clean, no w o rk o u ts !.............. I
.......................... $28,000..............................Call Bruce.





M A N A G E M E N T ,

I N C .

Consultant to Bankers

(personnel Search

• Loan Review and
Credit Administration

1126 So. 72nd St. Om aha, Ne. 68124

• Profit Planning

\ _ 4 0 2 - 3 9 7 - 2 9 8 0 _____ —

773 Spruce Street
P.O. Box 159
Ocheyedan, Iowa 51354
Phone: 1712] 758-3440

3-5 yr AG LENDER needed for solid $25MM Bank. Located
near Metro area. Excellent advancement opportunities.
Send resume to File No. WHT c/o Northwestern Banker.
'________________________________________ (PA)
SENIOR LENDING OFFICER. S.W. W isconsin. Seeking in­
dividual to direct and manage all lending functions. Port­
folio includes commercial, consumer, agricultural and real
estate credits. Sr. management position. Salary and bene­
fits commensurate with experience. Send resume to File
No. WHP c/o Northwestern Banker.
AG LOAN OFFICER $50MM bank in eastern South Dakota
needs Ag Loan Officer with at least three years experi­
ence. Excellent career opportunities inth is four bank
group. Send resume to File No. WHR c/o Northwestern

D Q N - S C H Q O L E R In

y S jw J


"Successful Banking is Quality Personnel"



SR AG VP— Lrg ag bk in cty seat town needs good w/o.

bank, 50,000 pop................

SR COMM’ L LENDER—#2 spot in bk w/18m comm’l port.
W ill lead to pres.


AG LOANS—3-4 yr lender who has strong FHA loan knowl­
edge for $90m bk.

OPERATIONS OFFICER, $50MM bank, suburban
location ................................................. $25-$30,000

COMM’ L LENDER— Metro area bk has opening for strong
comm’l lender w/credit anal skills.

S u b u rb a n ............................................... $35-$40,000
CREDIT REVIEW HEAD, $20MM bank, Suburban .

VP—Oppty for well-seasoned VP to supv 2 in both ag &
comm’l w/5 + yrs exp.
CONSUMER LOAN DEPT—200m + bk in lrg SE city has
opening for 7 yr consumer head w/proven mgt to head
$30m dept.
AUDIT MGR— Progressive bankers bk needs audit mgr to
head up area.

BUSINESS DEV. OFFICERS, proven track record,
suburban ................................................$25-$30,000
PRESIDENT,$20MM bank, 1 hr. from metro ........

JR COMM’ L— Light com m ’l lender pos in $50m bk in
300K + community.

loans, strong ag Presidential b a ckg ro u n d ............
................................................................. $40-$45,000

HEAD OF LENDING— Run all lending in lrg 700m + bk.
Oversee comm’ l, R/E, & retail.

REAL ESTATE, $80MM, 20,000 pop.............$30,000

BRANCH MGR— Fast, growing S&L seeks mgr o f pros­
perous br/supv 5 w/10m dept. S&L exp a must.

2508 East Meadow
Springfield, M issouri 65804
(417) 882-2265


CASHIER - $25MM Ag Bank. Requires background with inhouse m inicomputers and some knowledge of Agri Loans.
PRESIDENT ■Agri Bank w ith problem loans. Should have
administrative experience and solid Agri Loan skills. $40K
OPERATIONS • manage department of 35 for large urban
bank. Experience with deposit accounting and account
services required.
AGRI LOAN - com m unity bank with large Ag portfolio.
Seven yrs. or more Ag Lending experience needed.
COMMERCIAL LOAN • large suburban bank w ith $100MM
loan portfolio. Degree and minimum 3 yrs. comml lending
experience with six figure credits.
Additional positions available in Midwestern states.

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

(515) 244-4414



The N orthwestern Banker

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

Vol. 15 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
Digitized for St.,
#201, Des Moines, Iowa 50309.
Federal Reserve Bank of St. Louis