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July 27,1987 Des Moines, Iowa Bank Earnings Rise by 4.56 Percent cloud the profitability outlook for the banking industry in the second quarter and the rest of the year,” said Mr. Sheshunoff, adding that many thousands of banks, nonethe less, will perform extremely well for 1987. Total earnings before extraordi narily items for the first quarter were $5.19 billion for all 14,009 fed erally insured banks, compared with $4.96 billion for the same period last year. One of the industry’s key future indicators, non-performing loans, which rose by more than 10 percent in 1986, jumped 36.5 percent during the first quarter, from $48.2 billion as of Dec. 31,1986 to $65.8 billion at the end of March. Of the $17.6 bil lion increase in non-performing loans, $14.4 billion — or 81.7 percent — was concentrated in the nation’s 25 largest banks. Consumer loans currently are per forming significantly better than real estate and commercial loans. Of total non-performing loans, con sumer loans comprised just 5.7 per cent, while real estate loans came to 22.5 percent and commercial and other loans totaled 71.8 percent. “ It’s the commercial and the real estate loans that are causing the problems, not the consumer loans,” Mr. Sheshunoff said. “ However, overexpansion in credit card and home equity lending—particularly HE BOOMING East Coast eco nomy, coupled with improve ments in the Midwest, spearheaded a 4.56 percent first-quarter earnings increase for U.S. banks over the •sam e period last year. Yet the over all profit rise masked fundamental problems, particularly relating to Third World loans at major moneycenter banks, according to Sheshu# n o ff & Co., a leading information and consulting firm for the banking industry. S everal a g ricu ltu ra l sta tes showed a turnaround in bank per fo rm a n ce . Iowa, for example, had the quarter’s largest earnings in crease versus the first quarter of 1986, 108.13 percent, of any state, while Nebraska and Idaho had in• creases of 44.30 percent and 31.17 percent, respectively. It was noted that these profit increases reflect the extremely low earnings in those states during the corresponding ® period last year. “ The apparently strong earnings for the first quarter were actually not indicative of what to expect for the rest of the year because many ® banks were starting to experience in creasing weakness with domestic commercial and real estate loans,” said Alex Sheshunoff, president of Sheshunoff & Co. ® “ These problems, accompanied by major difficulties with loans to Third World countries, severely where it is based on soaring residen tial real estate values—are the sort of excesses that will come back to haunt borrowers and lenders in the future.” The growing magnitude of nonperforming loans underscores the more threatening problem of the enormous U.S. government, corpo rate and individual debt, which totals roughly $7 trillion, said Mr. Sheshunoff. “ The growth of the U.S. economy has been fed and sustained by debt,” he said, “ and servicing it in the future will inevitably put increasing pressure on individuals and corpora tions — in the form of both higher taxes and burdensome debt repay ment.” Reserves for loan losses have in creased steadily from $13.2 billion in 1982 to $28.5 billion for 1986, with the figure rising to $29.3 billion for the first quarter of 1987. This in crease does not reflect the major loan loss reserve additions by the major money-center banks in the second quarter to address their problem Third World loans. “ We definitely sense the begin ning of a broad-based retrenchment in the willingness to borrow by indi viduals and corporations,” said Mr. Sheshunoff, noting that total loans declined 1.1 percent from the pre vious quarter. “ This reflects both in creasing doubts about the funda mental strength of the economy and a widespread feeling that our debt Together We Can Accom plish Great Things S' 1 w ¡s F 1 II it * i l l M ^ ■ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Call Terry Martin, MNB Correspondent Banker 319-398-4320 or Toll Free 1-800-332-5991 The------------- \ " H li Strength of \ Eastern J Iowa ^ f Merchants National Bank m Cedar Rapids. Iowa 52401 Member F D IC ^ 1 :1 A BANKS OF IOWA BANK 2 Norwest Bank Des Moines, N.A. NORWESr BANKS Call (515) 245-3131 or toll-free (800) 362-2514 mamma Member FDIC W lfff transferred in 1986 from FirsTier Management Consultants where he ^ was a senior field consultant. Minnesota News 7"earn work: one of the reasons we're first in Iowa. Tom Quinlin Jay Nichols problems must be faced sooner or later. The larger implication here is that simply lowering interest rates in the future may not act as a stimu lant for increased economic activity. It may merely result in refinancing of debt by individuals and corpora tions — not increased borrowing and spending." Bank failures for the first two quarters of 1987 have come to 95, plus five more banks who received federal assistance to avert failure. This is well ahead of last year’s pace, which totaled 66 as of June 30,1986 and 145 for all of last year. □ SPIRIT LAKE: L.A. Schultz, 35, vice president and chief loan officer of The State Bank in Spirit Lake, was killed in a boating accident on West Lake Okoboji on July 15. He was son-in-law of Bank President and CEO Chuck W. Wetzeler. WATERLOO: The Waterloo Sav ings Bank has announced the ap pointments of E. James O’Connor as the bank president and new member of the board, and Frederick Koch as president of the Metro Bancorporation. Mr. O’Connor joined the bank in 1950 and most recently was ex ecutive vice president. Mr. Koch Iowa News joined Waterloo Savings Bank in Thomas M. Awtry has resigned as 1957. He will continue to serve as chairman of Group 12 in northwest the bank’s senior vice president and Iowa to devote more time to his trust officer. duties as president of Valley State Bank in Rock Valley. M oving up to Nebraska News complete Mr. Awtry’s term as group OMAHA: Four have been named chairman is James L. Cuttell, presi vice presidents at FirsTier Bank dent, George State Bank, who is cur Omaha. Ronald H. Bielenberg rently group secretary and was joined the bank in February and is slated to become chairman at the 1988 spring meeting. A new secre the city executive for the Kearney facility. Nancy K. Johnson has been tary will be elected by Group 12 with the bank since 1973 and is a bankers. personal trust administrator III in DES MOINES: Lou Anderson has the estate and trust division. Mark joined West Bank as a first vice J. Matthes is division manager of president in the lending area. He has the newly created operations divi spent the last four years as a vice sion. Last month he transferred president with an Ottumwa bank. from FirsTier Bank Lincoln, where Prior to that he was a vice president he was vice president and operations with Bankers Trust Co. of Des manager. John S. Morris was also Moines. promoted to vice president. He The Minnesota Bankers Associa tion has announced its 1987 D istricts Meetings. The meetings will feature a special afternoon program fol lowed by a reception, dinner, and evening speaker, except District 3,4 and 5 which will feature a reception 0 only. Dates and locations are: 1— Sept. 8—Kahler Hotel, Rochester; 2—Sept. 9—Orchid Inn, Sleepy Eye; 7—Sept. 10—Kandi Entertainment Center, Willmar; 3, 4, 5—Sept. 14—0 Sheraton Inn Northwest, Brooklyn Park; 8—Sept. 22—Regency Inn & Conference Center, Hibbing; 9— Sept. 23—Best Western, Thief River Falls; 6—Sept. 24—Holiday Inn, 0 Brainerd. BLOOMINGTON: Joseph M. Welle has been named vice president of MetroBank Bloomington. He pre viously held several positions w ith 1 the First Banks, most recently as a commercial loan officer at First Bank Security. He had been with First Banks since 1977. MINNEAPOLIS: John L. Matyi has been appointed senior vice presi dent of the loan administration de partment at Norwest Business Credit, Inc. He replaces Lee Mork • who recently retired after 13 years with the company. Mr. Matyi pre viously served for eight years at Norwest Bank Minneapolis. ST. PAUL: Colleen C. Lamey has ^ been elected vice president/senior operations officer at St. Anthony Park State Bank. She most recently was accounting supervisor at f American National Bank of St. Paul. Illinois News CHICAGO: William S. Ogden, chairman and CEO of Continental Illinois Corporation and a director of its subsidiary, Continental Illinois For Professional Correspondent Service Call 1-800-622-7262 ThereJs A Difference In Banks... Valley National Bank ft Main Office - Sixth and Walnut DES MOINES, IOWA 50304 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA BANK Member FDIC JAMES F. MacLEAN Vice President H. PETER DeROSIER Vice President Jean 712/779-3567 Masseria, la. 50853 Annette 515/394-5827 New Hampton, IA 50659 Confidential. Employer paid fees IOWA BANKERS PROBLEMS WITH YOUR BANK’S BOND? ARE YOUR UNDERWRITERS DEMANDS EXCESSIVE? HA VE YOUR PREMIUMS SKYROCKETED? We have been solving Bankers bonding problems for over 75 years . . . AND AT THE LOWEST POSSIBLE PREMIUM! CALL OR WRITE IOWA BANKERS INSURANCE AND SERVICES, INC. 104 EAST LOCUST STREET DES MOINES, IOWA 50308 1-800-532-1423 or (515) 286-4344 KANSAS BANKERS SURETY COMPANY P.O. BOX 1654 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOPEKA, KANSAS 66601 (913) 234-2631 SOUTH DAKOTA BANKERS PROBLEMS WITH YOUR BANK’S BOND? ARE YOUR UNDERWRITERS DEMANDS EXCESSIVE? HAVE YOUR PREMIUMS SKYROCKETED? Are you FORCED to write one type of insurance with a company at a higher premium, just so they will write another type of policy for you? IF SO... PLEASE CONSIDER THIS We have been solving Bankers bonding problems for over 75 years . . . AND AT THE LOWEST POSSIBLE PREMIUM CALL OR WRITE KANSAS BANKERS SURETY COMPANY P.O. BOX 1654 TOPEKA, KANSAS 66601 (913) 234-2631 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OWNEP BY BANKERS SERVING BANKERS F irs T ie r More o f what it takes Correspondent Services to serve you well. ^ FirsTier Banks Lincoln • Omaha FirsTier Bank, N.A., Lincoln and FirsTier Bank, N.A., Omaha, Members FDIC National Bank and Trust Company, will resign those positions on Aug. # 1 3 . He will also resign as a director of Continental Illinois Corporation and as president and a director of Continental Illinois Holding Corpora tion. No replacement has been named. # M r. Ogden's responsibilities will be assumed by John E. Swearingen, Continental Illinois Corporation chairman and CEO. Mr. Swearingen will remain in his present posts with # Continental Illinois until a new man agement team is selected. Mr. Ogden was asked by U.S. banking regulators to join Continental in 1984. Prior to that, he served for 31 •years at The Chase Manhattan Cor poration. president. Mr. Olafson joined Nor west in 1979 at Norwest Bank Valley City. He transferred to the Fargo bank in 1984. South Dakota News The South Dakota Bankers Asso ciation 1987 Group Meetings will be held during September. Registra tion begins at 1:00 p.m. at each meeting. The program, which begins at 1:30, will feature a workshop by consultant Art Pulis entitled “ Nego tiations.” There will be a reception at 6:00 and a dinner at 7:00. Dates and locations are: Group V —Sept. 14—Howard Johnson’s, Rapid City; Group IV —Sept. 15—W rangler Motor Inn, Mobridge; Group II— Sept. 16—Guest House, Watertown; Wisconsin News MILWAUKEE: Two months after Group III—Sept. 17—Holiday Inn, # assuming the position of executive Mitchell; Group I—Sept. 18—Air vice president at University Na port Holiday Inn, Sioux Falls. Fee is tional Bank, Mark Zalewski has been $50 for the workshop and $22 for the promoted to president. He replaces dinner. Phillip Hudson, who has retired. Mr. Wyoming News # Zalewski has been in banking admin CASPER: Affiliated Bank Corpora istration 15 years and previously served as the president of two banks tion of Wyoming has announced sev eral staff changes. A t Norwest Bank in Madison. Gillette, Richard M. Schell has been # North Dakota News appointed vice president—loans. He FARGO: Harlee Olafson has been was most recently with Norwest promoted to vice president/business Bank Casper in commercial loans. banking at Norwest Bank Fargo. He A t Norwest Bank Kemmerer, Con previously served as assistant vice rad G. Flohr has been elected presi- We Can Help With Your Employment Needs! FOR SALE RECONDITIONED BRANDT Currency Counters New Warranty 402-571-5577 Specialists in Bank Recruiting and Consulting Since 1971 □avid L. Hansen, CCP HAMILTON / / ASSOCIATES & 100 Court Ave., Suite 306 Des Moines, Iowa 50309 515/282-0221 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Serving bankers quietly and efficiently. dent. He previously was senior vice president and cashier at Norwest Bank Gillette. Norwest Bank Cas per has recently had O.K. Walkingstick join the staff as vice presi dent-retail banking. He has experi ence at banks in Texas and Minne sota. Colorado News ARVADA: Linda Brinson has been elected a vice president of Colorado N ational B a rk —A rvad a. She started with the bank in 1978 and has held various positions. She is responsible for accounting, custo mer assistance, bookkeeping, switchboard and proof departments. LAKEWOOD: Stephen J. “ Ched” Miller has been elected a vice presi dent of Colorado National Bank— Lakewood. He joined the bank in 1974 as an assistant vice president and is currently responsible for com mercial lending. “ TH E RIGH T FIT” Banking Placement Specialist For Your Staff: □ Top Professional Bankers who are confidentially screened to find “The Right Fit” □ We recruit nationally through our over 200 independent affiliates as well as locally for our clients □ Contingency or Retainer Fee arrange ments □ Contact Sue Lundquist or Mel Hansen, CPC Banking Specialists im iif ...... ELLS CAPITAL PERSONNEL SERVICE 714 First Interstate Bank Building Des Moines, Iowa 50309 515-283-2545 Ells Personnel Systems 1129 Plymouth Building Minneapolis, MN 55402 612-333-1131 CELEBRATING OUR 75th ANNIVERSARY BY SERVING OUR BANKING CLIENTS WELLl 4 POSITIONS AVAILABLE POSITION AVAILABLE POSITIONS AVAILABLE Walker State Bank, Walker, IA seeks CEO. Insurance ex perience helpful. Friendly community. Good bank. Send resume to Terry Engelken, Iowa State Bank, Center Point, IA 52213. (319)849-1838.________________________ (PA) BANK OFFICER. Due to pending acquisition & promotion, an immediate opening exists for a lending officer. In confi dence, contact Jerry Tack, VP, Hawkeye Bank & Trust, Mason City, IA 50401. (515) 423-2457.______________ (PA) EXECUTIVE VP. $16MM bank, seeking an aggressive #2 person. The challenge involves working with loans, peo ple, and a knowledge of bank operations. Send resume to: Ivan D. Husa, Security State Bank, Stanton, IA 51573. (PA) TRUST OFFICER. $125MM bank has an excellent oppor tunity for a Trust Officer in a growing department. Candi date will be responsible for managing & expanding the current $4.5MM assets. Prefered candidate will have a law degree with 1-3 years of trust experience. Send resume to Peoples Trust & Savings Bank, Box 279, Indianola, IA 50125 Attn: Personnel. EOE/M-F (PA) AG LENDERS—2-5 years exp. Degree preferred. $45 million bank and $80 million bank. North Cen tral and East Nebraska. $25K Range. TRUST DEPT. MANAGER—Need 5-7 yrs exp. - J.D. Marketing a strong plus - 2 pos., Omaha & K.C. To $50K. LOAN EXAMINER—Need several yrs as examiner and some ag lending would help. Central IA. To $35K. All fees are paid by our client employers. Richard L. Beam, CPC GUMBERT EXECUTIVE EXCHANGE, INC. 11246 Davenport Street Omaha, NE 68154 Phone: 402/330-3260 Member National Personnel Associates We’re Nationwide SENIOR LOAN OFFICER with 5 years plus experience. Solid rural bank. Advancement to CEO and stock purchase possible. Will help relocate. Salary open. Send resume and salary history to Charles J. Neuroth, EVP, Farmers Sav ings Bank, Remsen, Iowa, 51050. (PA) Estate Appraisals Repossession of complete fixtures for a 4000 square foot clothing store include CASIO 32 department electronic cash register. Purchased new in 1984. Original value $12,500.00, will sell for $5,000.00. Contact John or Frank, National Bank of Canby, Canby, MN, 507-223-7231. (FS) 1 WHITE POWER FILE for check size media & bank notes and 1 DIEBOLD POWER FILE for 6x4 media (microfische). Call John Hrupek @ (402) 339-9671. (FS) SR. OPS OFFICER Growing bank wants 5 + year ops cashier-type. Reliable and respected service for over 20 years B enE . Marlenee Coins 913 Locust Des Moines, Iowa 50309 515-243-8064 ASSOCIATES POSITIONS AVAILABLE $30K. COMM’L LENDER Clean bank in metro area. 3+ years comm’l exp. New bus development. $36K. AG LENDER #2 person in small town bank will have chance to be #1. $Mid-20's. SR. AG LENDER Head-up strong department. 6 yrs ag and good mgmt skills for 2500 person town. $40K. COMM’L HEAD Take charge of $20M portfolio and 3 lender dept. $50K. AG LOAN OFFICER Quit dreaming about a better job, take action! One of sev eral great positions for 3-5 yr ag banker who would enjoy a position of responsibility in a rural bank. Will become president in near future, ops and insurance bkgd a plus. Mid-$20's. FOR FURTHER INFORMATION CONTACT KURT R06ENCRANTS ROBERT HALF O F IO W A . M C . 317 6th Ave, Ste. 650 Des Moines, IA 50309 (515) 244-4414 ALL FEES COMPANY PAID • POSITION WANTED POSITIONS AVAILABLE "Successful Banking Is Quality Personnel" POSITIONS AVAILABLE Financial Careers, Inc. Two Ruan Center/Suite 1000, Des Moines, IA 50309 515/245-3786 Employer pays fee. Sale o f Rare Coins DOÑm CHOQLER Ir Donald E. Holder, Principal EDP AUDITOR with two or more years EDP audit experi ence. IBM, DOS, MVS......................................... To $30,000 3 yr. AG/COMMERCIAL LENDER desires new opportuni ties. FmHA, FBA, workout & fin. stmt, analysis experience. IA. St. Univ. grad. Send replies to File No. WJU c/o Northwestern Banker.______________________________ (PW) ^ c^Hoidsx a n d c d h io a ia tz i Specializing in the Purchasing and Sale of Banks 515-232-0814 405 Main Ames, Iowa 50010 COMMERCIAL MORTGAGE—Growing department lo o k - ^ ing for an experienced lender with the desire and dedica tion to achieve success. Degree plus 2-3 years experience. ........................................................................... To $25,000 Purchase of Collections Used by bankers throughout the midwest FOR SALE TRUST OFFICER—Profitable financial group needs an ex perienced Employee Benefits Officer to provide leadership and serve as consultant for their member banks. Requires a blend of technical and business development. ........................................................................... To $45,000 - Please contact Lorraine Lear or Malcolm Freeland con cerning these and other Midwest banking opportunities. Additional AG LOAN OFFICER with degree and some ex perience. NE Iowa County seat. $47MM bank. Send resume to File No. WJR c/o Northwestern Banker. (PA) SR. LENDER needed for recently acquired $49MM bank. Position could lead to Pres/CEO. Looking for that aggres sive & analytical leader. Send resume to File No. WJS c/o Northwestern Banker. (PA) BANK AUDITOR—CPA/CIA or CBA with bank audit experi-® ence and supervisory skills.................................To $28,000 VICE PRES. COMMERCIAL REAL ESTATE, 90,000,000 metro bank. 10 or more yrs. experience. Degreed. Technical expertise in analyzing, nego tiating, documenting, perfecting, and dispensing. Background in multi-family, construction, shop ping centers, strip centers, and subdivision.......... . . . $45-55,000 S&K options, ESOP, 401K, medical. COMMERCIAL HEAD, 100,000,000 + metro. De greed (major univ and top honors a plus.) Forward looking strong growth organization. Must want higher management position. Social and civic background must be strong. Likes business devel opment. Trains lenders.......................................... .......................... $50-55,000 + excellent benefits. V.P. & LOCATION MGR., #1 rated bank, strong re spected organization. 80,000,000. Likes small towns. Dislikes poor credits. Good with new busi ness contacts. Likes teamwork concepts............. .............$35,000 top benefits, good future growth. PRESIDENT, 40,000,000 independent. Degreed. Complete & solid track performance in past. Small town lender in community projects. Solid relationship with regulators.................$50-55,000. SVP #2 OFFICER, 75mm +. Degreed. Solid bank ing school. Hands on operations and accounting expertise. Solid community leader. A/L mngmnt, long range planning, cost control, budgeting, in vesting. Tandem leader with bank president......... ............. $45-50,000 excellent retirement benefits, strong town. DON W. SCHOOLER 2508 East Meadow Springfield, Missouri 65804 (417) 882-2265 SENIOR LENDER Are you ready for the #2 spot in a S. Minnesota Holding Co. Bank? Excellent career building move! Great benefits! _ Must be degreed with 3 + years Com’l Lending exp. 9 To $45K. Job #NW2006. PRESIDENT Do you feel passed over? A rapidly growing $15MM inde pendent bank located in S. Minnesota needs a president. Desire a proven manager with excellent lending skills. Must be able to operate independently in a decentralized A environment. To$38K. Job #NW2007. ^ CASHIER Does constant reorganization have you depressed? A $70MM bank 1 hour N.E. of the Twin Cities needs a cashier to direct all operational functions. This position will man age all “ Non-lending” areas. Must be degreed with 3 + yrs operation exp. & proven management. To $30K. Job #NW2008. FOR MORE INFORMATION CONTACT PAUL GENTZKOW OR JEAN TODD ROBERT HALF OF MMNEBOTA, M C. 3636 IDS Center Minneapolis, MN 55402 (612) 339-9001 POSITIONS AVAILABLE COMML LOAN - $50MM suburban bank with excellent growth and earnings history. Handle majority of commer cial credits. Report directly to President. $38K CEO ■suburban de novo bank. Experience as CEO or COO required. Strong commercial loan and business develop- £ ment skills desired. Open LOAN REVIEW - large urban bank affiliated with major midwestern holding company. Degree and 2-3 yrs. loan review/workout experience desired. $30K TRUST OFFICER • medium size community bank with growing trust dept. JD preferred but not mandatory. $27K COMML LOAN • $100MM community bank. Supervise com- w mercial lending function. Future advancement possible. $45K Additional positions available in midwestern states for experienced bankers. TOM HAGAN & ASSOCIATES 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 £ “ Serving the Banking Industry Since 1970”_______ Vol. 16 No. 15 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 St., #201, Des Moines. Iowa 50309. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis •
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