View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

•

Des Moines, Iowa

Vol. 14 No. 12

July 8,1985

Farm Credit System Problems Grow
The Farm Credit System board o f
ID ESPREAD problem s ex^
perienced by the Farmdirectors
Credit was m eeting in St. Louis
Banks o f Omaha, the Omaha Fed­ last week to review the reports com ­
eral Intermediate Credit Bank and piled since the Omaha FICB re­
its Production Credit Associations quested $680 m illion financial assis­
in Nebraska, Iowa, South Dakota tance from the other 36 banks in the
and W yom ing, continued to occupy nationwide Farm Credit System.
the headlines o f newspapers in re­ Each farm credit district must vote
independently and it is hoped the
cent days.
The headlines and their stories financial assistance will be ready by
tell o f the financial crisis that is af- September 1.
Alan R. Tubbs, president o f First
flicting the Farm Credit System
units in the midwest and officials o f Central State Bank in D eW itt, la.,
the Omaha based Farm Credit and chairman o f the A B A A g Com­
Banks don’t like what they’re read­ m ittee, in response to questions in a
ing. John Harling, president and brief interview with the N o r t h ­
CEO o f the FCB o f Omaha, said the w e s t e r n B a n k e r last week, com ­
$780 m illion loss figure attributed to mented briefly on the FCS situation.
his institutions by politicians being “ I agree that all ag lenders are
quoted in the D es M oines R egister is tainted to some degree with the
“ com pletely erroneous” and said same brush that is daubing the Fed­
such statem ents from public offi­ eral Land Bank and the PCAs to­
cials are “ inaccurate and com pletely day.” he said. “ It is not in the public
irresponsible.” Mr. Harling said the interest to see a viable lending
FICB and PCAs in the district had organization have difficulties.” In
experienced 1984 losses o f $68 mil- view o f the financial problem s exper­
lion and 1985 losses to date o f $26 ienced by commercial ag banks as
million.
well, Mr. Tubbs said, “ If any assis­
Two Nebraska PCAs were closed tance com es to the FCS we should
in the past year and nine o f Iow a’s make sure similar assistance is
PCAs have frozen their borrowers’ given to ag banks.”
stock to strengthen their faltering
Mr. Tubbs said the m ost recent
balance sheets. One experienced ag word he had was that the FCS so far
lender, after reading Mr. Harling’s had not asked for federal assistance.
assertion that the $780 m illion loss
Three weeks ago the FLB board in
was incorrect, commented that he Omaha voted three steps: 1. To raise
was certain the correct figure was its interest rate from 12.75% to
closer to the one cited by the politi­ 13.5%, effective July 1. 2. Freeze the
cians.
B stock o f its PCAs. 3. Enforce a

W

a

0

%

#

•

O

®

severe réévaluation o f the collateral
position securing loans, knocking
those standards down still further.
One source estim ated this would
eliminate 30% to 50% o f the bor­
rowers.
H.L. “ Bud” Gerhart, Jr., presi­
dent o f First National in Newman
Grove, Nebr., and chairman o f the
Independent Bankers Association o f
Am erica ag com m ittee, told the
N o r t h w e s t e r n B a n k e r in a brief
interview: “ First, it does no one any
good to have the Farm Credit Sys­
tem in difficulty. W e’re not in a posi­
tion to get into long-term lending, so
any deep difficulty is not good.
“ Second, the same kind o f prob­
lems afflicting the Farm Credit Sys­
tem and PCAs certainly are hurting
commercial banks as w ell.”
Mr. Gerhart said, “ W e’ll not go
out and solicit PCA business but if a
credit-worthy farm custom er comes
in with deposits and credit-worthy
loan, w e’ll take him. I don’t want to
prey on the problem s o f PCAs. Since
the two PCAs closed here in Neb­
raska, farmers have been getting
edgy.”
Both Mr. Gerhart and Mr. Tubbs
pointed out that many o f the farm­
ers now wishing to extricate them­
selves from the Land Bank and PCA
are not ones who can be taken on at
this time by commercial banks
because o f the poor credit ratings
they have right now.
It was in the late 1970s that bank­
ers fought tooth and nail with Con-

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

^ First N ational Lincoln
A FirsTier Bank

Member. F.D.I.C.

13th & M Streets, Lincoln, Nebraska 68501

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Sung W on Sohn, senior vice presi­
dent and chief econom ist o f Norwest
Corporation, Minneapolis, discuss
“ The Econom ic and M onetary En­
vironment for Agriculture.”

#

Iowa News

gress over expansion and further
funding o f the FCS, stating that it
would position the System and its
PCAs to raid the custom er list o f
commercial banks. That intent was
denied at several A B A A g Confer­
ence meetings by the FCS Governor
and other officials. Time proved the
advance com plaint o f the commer­
cial bankers, who saw many o f their
custom ers defect to the Land Bank
and PCAs, lured by lower interest
rates at a time when bank costs were
clim bing during an inflationary
period.
Many o f those custom ers are now
back knocking on bank doors and
provide the potential for re-building
some o f the farm business base that
traditionally had been with banks. □

ASK
DENNIS
EARHART

Special Events Slated for
ABA’s Natl. Ag Bank School
Two special sessions have been
added to the schedule for the A B A ’s
National Agricultural Bank Man­
agement School being held this
week, July 7-12, at Iowa State Uni­
versity in Ames.
On Tuesday morning, July 9,
state banker association executives
from surrounding states have been
invited to attend a private meeting
and to bring several leading ag
bankers with them. The group will
meet with some ag leaders, in­
cluding Alan Tubbs, A B A ag com ­
m ittee chairman and president of
First Center State Bank in DeW itt,
la., and A B A ’s lobbyist. Other
speakers also are on the agenda.
The second part o f the Tuesday
program starts at 1 p.m. and con­
tinues through the dinner hour with
a closing speech. First speaker will
be Dr. John F. Marten, Farm Jour­
nal staff econom ist, W est Lafayette,
Ind., on “ Im plication o f Farm Poli­
cy: An Overview and O utlook.” Sec­
ond will be Don Powell, president,
First N ational, Am arillo, T ex.,
speaking on “ W orking Out o f W ork­
outs.” The third afternoon topic,
“ Governm ent Guaranteed Loan
Program s,” will be handled by two
men—James R. Eatherly, president,
and Dennis Buss, vice president,
both with First National, Tonkawa,
Okla.
A fter a 6:30 p.m. reception and
7:30 dinner, guests will hear Dr.

to make MNB
work for you.

Member F.D.I.C.

A BANKS OF IOWA BANK

•

OSCEOLA: Bernard Dubin was appointed vice president o f the Osceola
State Bank and Trust Company last
week. Mr. Dubin replaces Paula
Baker who is leaving the post for
duties with the Federal Deposit Insurance Corp.

£

H. P ETER D ERO SIER
V ice President

M IN N EAPOLIS: Arthur J. Rolnick
has been named senior vice president and director o f research at the
Federal Reserve Bank o f Minneapo­
lis. Mr. Rolnick joined the Fed in
1970 as an associate econom ist. In
1979 he was named assistant vice
president and manager o f regional
and b a n k in g studies, and in 1980
was prom oted to his m ost recent po­
sition as vice president and deputy
director o f research.
M IN N EAPOLIS: Lloyd P. John­
son, who became president and chief
executive officer o f Norwest Corpo­
ration in March, has been elected to
the additional post o f chairman of
the board. He succeeds John W.
Morrison, who resigned after serv­
ing in that position since 1981. Mr.
Johnson had an active banking career in California prior to joining
Norwest, m ost recently as vice
chairman and member o f the office
of the chief executive o f Security
Pacific National Bank and its holdm g com pany, Security Pacific Cor­
poration, Los Angeles.

C ount On O ur
C o rresp o n d en t B ankers

Member FDIC

A BANKS OF IOWA BANK

Call toll free (800) 622-7262

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

MARK CH RISTEN
V ice President

Valley National Bank ili
DES MOINES, IOWA 50304

#

£

Minnesota News

•P e rs o n a l
• Prom pt
•P ro fe s s io n a l

Toll free
1- 800- 332-5991

Merchants
^
National Bank 1 5 1

MOUNT PLEASAN T: The Henry
County Savings Bank recently an­
nounced the prom otion o f Steven K.
Brimhall and James E. Henss to the
positions o f vice president. Mr.
Brimhall joined the bank in 1973 as
an ag loan officer trainee. Mr. Henss
joined the bank in 1973 in the in­
stallment loan department.

#

#

•

%

#

•

Supplement to Northwestern Banker Newsletter 7-8-85

There's no substitute
M b r finely-tuned
hen it comes to investments—

R

long-term or short-term —nothing
outperform s quality.
And when it comes to quality, no one beats
the outstanding track record of United Missouri’s
Investment Banking Division. Sound bond
portfolio recommendations are our business.
They have been since the 1920’s.
You can rely on our ability to adapt in this
changing financial world. Today and tomorrow,
your bond portfolio will benefit from our
consistently high standards.
Call or write United Missouri Bank today.
W e’ve mastered the art of quality.

Investm ent Banking D ivision

UNITED MISSOURI BANK
Member FDIC

n .a .
mm
United w e grow. Together.IBIIIII

1Oth and Grand u l
Kansas City, Missouri
11ill
— I
iH i I «
■

las


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

■BIKB


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3

RISMILLER,
WEAVER
AND YAKE
G e t t in g it d o n e f o r y o u »

David Rismilier

Warren Weaver

Chairman

President

Ernie Yake
Senior
President
Vice Preside

Commerce Bank Kansascity
W

W

^

NA

■tucuDCD FDIC
em o
MEMBER

Nebraska News
LIN COLN : G atew ay Bank an­
nounced the recent addition o f Bud
Olsson to the position o f vice presi­
dent and commercial loan manager.
Prior to joining the bank, Mr. Ols­
son was associated with the Na­
tional Bank o f Commerce in Lincoln.
O M AH A: American National Bank
o f Omaha has elected Barry S. Ma­
jor as vice president-credit manager
and James W . Besore as vice presi­
dent o f commercial lending. Mr. Ma­
jor is a former vice president in com ­
mercial lending o f the Brenton Bank
and Trust Co. o f Urbandale, la. Mr.
Besore is a former employee o f the
Omaha office o f the FDIC.
SCRIBNER: Delwin J. Rumery, se­

Telephone (816) 234-2000

nior vice president o f the Scribner
Bank, passed away on June 3,1985.

Illinois News
CHICAGO: Steven Schm oldt has
been elected vice president, finance,
o f First Colonial Bancshares. He
was form erly assistant vice presi­
dent, finance o f Colonial Bank and
Trust Co., Chicago’s the group’s
lead bank. He joined the bank in
1976.
H IG H LAN D : Herbert G. Rautenberg has been elected president and
chief operating officer o f the Eagle
Bank. Rayhill J. Hagist, chief execu­
tive officer, was elected chairman o f
the board and Elvin M. Foehner, se­
nior board chairman. Mr. Rautenberg is also a senior vice president o f
the Eagle Bancorporation, Inc., a
holding com pany o f which the Eagle
Bank, Highland is the lead bank.

FEATURE LISTINGS FOR JULY
14 Jobs for LO . @ $45L to $50L
26 Jobs for Ag. L.O. @ $25L to $35L
22 Jobs for Cm. LO . @ S27.5L to $40L

1- 800 - 821 - 1926 2»
(In IL1-800-621-8433 ext 300)
for the
executive
quest . ..
the right
chemistry
The Discount Brokerage for Banks
2 offices, 7 affiliates
Dial our 800 number. An officer of
the firm will return your call.
Clients: Why pay more? Ask for our
comparative fee charts averaging
13% of 1st year’s salary
Candidates: Current listings, 4 up­
dates per year gratis.
Get on our computer: we’ll keep
you up-to-date.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

*

elected president o f the Montana
Bankers Association at their annual
convention held June 26-28 in Sun
Valley, Idaho. He succeeds Charles
E. Pedersen, president and CEO of
First Interstate Bank, Great Falls.
W .E. Schreiber, president o f Moun­
tain Bank, W hitefish, advanced to
vice president and Jim Bennett,
chairman, president and CEO, First
Citizens Bank, Billings, was elected
treasurer. John T. Cadby will retain
his position as executive vice presi­
dent and Robert H. Sizemore, presi­
dent, W estern Bank o f Chinook, will
remain as immediate past president
because the out-going president,
Charles Pedersen, will be m oving to
W yom ing. For com plete M B A Con­
vention coverage see the August
N orthw estern B

anker.

□

Banking Specialists

Wyoming News

G a il ud- . . . We- Itite n !

CASPER: Charles E. Pedersen has
been elected president o f First Inter­
state Bank o f Casper. He succeeds
Henry A . Hitch, who has retired
after a 27-year career with the bank.
Mr. Pedersen was chairman, presi­
dent and CEO o f First Interstate
Great Falls, M ont, for the past 11
years. He has been with First Inter­
state since 1948.

Confidentiality Maintained • Employer Paid Fees

GREEN RIV E R : John Horne has
been named president o f First
W yom ing Bank o f Green River. He
served m ost recently as vice presi­
dent o f commercial loans at First
W yom ing Bank o f Evanston. Prior
to that, Mr. H om e was vice presi­
dent and manager o f the main
branch o f the American Bank o f
Commerce o f Louisiana and served
as vice president—loan officer at
First W yom ing Bank o f East Chey­
enne from 1975-1980.

Montana News
Richard C. Timmerman, president
and CEO o f First Bank, Butte, was

BARBARA J. RITTA

PAMELA J. SWENSON

BANKING OPPORTUNITIES
Commercial Lender—#2 in large ND bank, $38K.
Contact Pamela J Swenson.
Sr Ag Lender—#2 in $45mm MN bank. Credit analysis &
problem workout skills required.
Contact Pamela J. Swenson.

$45K.

Sr VP/Retail —head of retail banking dept, large MW bank.
$50-60K.

Contact Barbara J. Ritta.

Ag Lender—near Des Moines, Healthy bank.

$30K.

Contact Barbara J. Ritta.

For Professional Assistance Call

1- 800- 225-2885
In Nebraska 402-397-2885

PROFESSIONAL
RECRUITERS
BOX 24227 • OMAHA, N EBR A SK A 68124

Ag Banking Specialists
Let us help with your career advancement or staffing
needs. Call in confidence, without obligation. Employ­
ers pay our reasonable fee to hire the best.

Financial Careers
CEO for $60 million independent mid-west bank. Immedi­
ate opening ......................................................... Salary open.
COMMERCIAL LENDER with five or more years experi­
ence and college degree for $125 million midwest bank.
Excellent futu re...................................................Salary open
COMMERCIAL LENDER with three years experience and
college degree for $50 million midwest b a n k ......................
............................................................................Salary $30,000
COMMERCIAL LENDER with five or more years experi­
ence and college degree for bank in university community
............................................................................Salary $40,000
AG LENDER with college degree and limited PCA or bank
experience for Northern Iowa bank ........ Salary to $25,000

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

I

Jean 515/263-9598 (W/F)
712/779-3567 (M/T/TH)
Massena, Iowa 50853

aqri oirœrs, inc .
-J

COMMERCIAL LOAN OFFICER—excellent career oppor­
tunity. Contact: Larry Gelslnger, Senior Vice President,
Hawkeye Bank and Trust, Spencer, Iowa at (712) 262-1940.
_______________________________________________ (PA)
SENIOR LOAN OFFICER for $10 million bank In central
Nebraska. Contact: Joe Dressel house, 1400 American
Charter.Center, Lincoln, NE.
(PA)
$20 million North Central Iowa bank needs BRANCH MAN­
AGER with agri related experience. Contact: Harlan Klave,
Belmond, IA Phone (515) 444-3965.
(PA)
Rural bank In county seat town, South Central Nebraska,
needs a VICE PRESIDENT with 2-3 years ag experience.
Contact: Jim Goering Phone (402) 759-3124
(PA)

A G BANKING PERSONNEL SPECIALISTS

AG LENDER for $23 million bank in northern Iowa ............
..................................................................... Salary to $35,000
COMMERCIAL LENDER with three to five years experi­
ence in both commercial and mortgage lend ing ................
............................................................................Salary $32,000
AG LENDER with five or more years proven ability for
northern Iowa bank ....................................... Salary $32,000
Write or call Malcolm Freeland or Cy Kirk in care of
Freeland Financial Service, Inc., 1010 Equitable Bldg., Des
Moines, Iowa 50309. Phone 515/282-6462. Employer pays
fee.

BANKING OPPORTUNITIES
EVP • $33 Mill Nebraska bank. Prefer 15 years ex­
perience In all phases of lending. Excellent oppor­
tunity and package of
$50K + .
EVP • $50 Mill Iowa bank. Prefer 8 years in
ag/coml. Good credit, management skills and de­
gree required.
$38K + .
COMMERCIAL LOAN OFFICERS - Minimum 3
years experience - positions in many states.
to $45K.
We have Just completed a very successful year in
business as Staff Mid-America. My 16 years in
financial placement has been very rewarding.
Thank you for your continued support.
Call in confidence:
PHYLLIS S. LYNCH
STAFF MID-AMERICA, INC.
900 Commercial Federal Tower
2120 South 72nd Street
Omaha, NE 68124
(402) 391-2065 or (402) 695-1997 (Evenings)

FOR SALE
Omaha National Bank is offering for sale for
cash, pursuant to written bids, 98.43% of the out­
standing common stock of City Bank & Trust Co.,
Lincoln, Nebraska, and 98.76% of the outstanding
common stock of Havelock Bank, Lincoln, Neb­
raska. Bids must be received by Omaha National
Bank by August 14,1985. The bids will be opened
and a public auction conducted to complete the
sale of the shares of each of the banks In the sec­
ond floor conference room at Omaha National
Bank, Farnam at Seventeenth, Omaha, Nebraska,
on Thursday, August 15,1985 at 10:00 a.m.
For further information, write or call Gary
Parker, Omaha National Bank, Farnam at Seven­
teenth, Omaha, NE 68102, (402) 348-6260.

POSITIONS AVAILABLE
MORTGAGE LOAN • 3 positions. No degree - 3-5
years experience. Southern Dakotas $25-30K.
OPERATIONS • V.P. - Degreed. Need 5 years or
more of operations plus some lending experience.
To $35K.

BURROUGHS S558 AND S595 SINGLE POCKET PROOF
MACHINES. Both currently under maintenance and in
good working condition. Available immediately - $2,000
each or buy them both for $3,500. Buy now - we need the
space! Contact Mike Mattson at First State Bank, Fre­
mont, NE (402) 721-2500.
(FS)

AVAILABLE POSITIONS
CEO - Ag bank near good sized community is searching for
a high-quality banker with comm’l ag and mgmt expertise.
$20mm + institution with healthy portfolio and new facili­
ty.
$40K.
CONSUMER LENDER - Fast-paced, rapidly expanding or­
ganization has opening for indiv who Is looking to play a
mgmt role In the near future. 2 + yrs of consumer analysis
and lending could be your key to a position offering long­
term career oppty.
$20K.
CASHIER • Growing holding co seeks organized indiv with
3 + yrs exp in operations looking to move upward. Visible
position with high level of responsibility in $40mm bank.
$25-35K.
TRUST DEPT HEAD • Rural bank in retail oriented com­
munity seeks JD with 2 + yrs in rural trust area. A great
oppty to gain valuable exp.
$30-35K.
ALL FEES COMPANY PAID
FOR FURTHER INFORMATION
FOR THESE AND OTHER POSITIONS
RESPOND IN CONFIDENCE TO:
M. KURT ROSENCRANTS AT (515) 244-4414

Í
r—

M>
H>
M>
m
®

R O B E R T H H IF
317 6th Ave, Ste. 650
Des Moines, IA 50309
(515) 244-4414
ALL FEES COMPANY PAID

EXDN-ScHOOLER Ir
A N D t p o W A S S O C IA T E S

"Successful Banking is Quality Personnel"

POSITIONS AVAILABLE
SENIOR LOAN OFFICER $40mm country bank,
strong bank, top town and location .......................
..........................................................$40,000-$45,000
SENIOR LOAN OFFICER $50mm suburban bank,
leader in peer grou p ....................... $45,000-$50,000

COMMERCIAL LENDER • 3-5 years - central Iowa.
To $40 K.
COMMERCIAL LENDER - 2-3 years - Omaha. To
$30K.
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 $200mm, 50,000+ popu­
lation, administrative background............ $60,000
CREDIT REVIEW OFFICER, COMMERCIAL
LENDER Small Holding Company $40,000-$43,000
PRESIDENT $15mm outstate bank, non ag ..........
........................................................................$55,000
COMMERCIAL LENDER $50mm, 3-5 years experi­
ence, $10mm portfolio................................. $35,000
COMMERCIAL LENDER Metro area, 3-5 years ex­
perience, $20mm portfolio ........... $35,000-$40,000
CHIEF EXECUTIVE OFFICER $15mm 1,500 popu­
lation, lake area ........................................... $40,000
COMMERCIAL LENDER real estate construction
background, $65mm b a n k ............................. OPEN
PRESIDENT $70mm bank, outstate/lndependent,
ag & commercial c re d its ............... $50,000-$55,000
Many years in bank management enables me to
find the right banking environment for you, com­
pletely confidentially. Send your resume or phone:
DON W. SCHOOLER
2508 East Meadow
Springfield, Missouri 65804
(417) 882-2265

POSITIONS AVAILABLE
COMM’L LOAN • $100MM suburban bank with aggressive
new ownership. Prefer five to seven yrs. experience in sim­
ilar size bank.
$40K
COMM’L LOAN/BIZ DEV • $80MM suburban bank affiliated
with major holding company. Emphasis on new business
development but need solid credit background.
$35K
SENIOR LENDER - $150MM suburban bank with large
comm’l and real estate portfolio. Second position in bank
with opportunity to advance.
$Open
REAL ESTATE LOAN - Junior position in large suburban
bank. Will assume some duties in construction and
comm’l real estate depts. plus handle residential loans.
$23 K
AGRI-LOAN • $25MM community bank with 50% of loans
in agri-credits. Prefer background in cattle financing. $30K
Additional positions available 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. 14 No. 12 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, $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