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V o l.9 N o .8 Understanding the New Committee WIDE-ANGLE view of the activ ities of the Depository Institu tions D eregu lation C om m ittee— rather than a narrow focus on its deci sions day-to-day—may lend a better perspective on the financial commu nity’s progression toward deregula tion. (The Deregulation Committee is charged, under the recent omnibus financial deregulation law, with re sponsibility for phasing out deposit in terest limits between now and March 31, 1986.) While many bankers and various financial trade associations have been intensely interested in the complex ities and competitive implications of the Deregulation Committee’s actions, those who step back a pace or two and examine the Committee’s efforts more dispassionately may gain a better understanding o f the deregulation process. The anomaly inherent in the Dereg ulation Committee’s task is the fact that it must use the tools of regulation in order to move toward deregulation. Just as important, the Committee has inherited from the Congress all of the fiercely partisan atmosphere that heretofore dominated the lawmakers’ deliberations whenever the subject was Regulation Q and the interest rate gap between what banks and spe cialized thrift institutions are allowed to offer. A June 16,1980 Des M oines, Iowa Recent Decisions Decisions reached late last month by the Committee allow thrifts to re tain their one-quarter percent interest rate advantage for six-month money market CDs in limited cases, and for 30-m onth CDs as well. However, banks will be able to roll over matur ing money market CDs at least one time at the same interest rate as thrifts are allowed to offer. Banks also will have interest rate parity with thrifts for six-month CDs when the Treasury bill rate is 8% or more and 1X A or less. In other words, the differential applies to new sixmonth CDs in a sliding scale only when Treasury bill rates are in the IVa to 83A% range. When T-bill rates are 83A% or more, the rules allow all institutions to pay up to one-quarter percent more than the prevailing T-bill rate. And all in stitutions can pay up to 73A% on the six-month CDs even when prevailing T-bill rates are at 7V4% or less, though banks and thrifts may pay less than the ceilings in any case. Maximum interest rates on the 30month CDs were boosted by one-half percent. This means that thrift in stitutions can pay the same rate as 30-month Treasury obligations, and banks now can pay one-quarter per cent less. However, the "cap” on in terest payable on these CDs remains in place at 12% for thrifts and 113A% for banks. Also, even when 30-month Treasury obligations are paying less than 9V2%, thrifts will be allowed to pay up to 9V2, while banks will be allowed to pay up to 9V4%. E arly W ithdraw als Finally, the Deregulation Commit tee stiffened early withdrawal penal ties; in some cases, early withdrawal under the new rules may result in a reduction in principal. The new penal ty for early withdrawal when an in strument’s original maturity is one year or less is an amount equal to three months’ simple, nominal in terest. And the penalty is six months’ nominal, simple interest on certifi cates of longer maturity. T h e C om m ittee has b een ap proaching the deregulation process by making very small alterations of two highly important deposit instruments. The result is a pricing schedule which ranges from free competition at the low end of the interest rate range; to a sliding scale of discriminatory prices at the mid-point of the range; to an equitable price-fixing system intended to deal with peaks in interest rate cy cles. Even at the top end of the scale, traditional depositories probably would not be able to compete with money market mutual funds. How ever, a significant but little-noticed element of the Deregulation Commit tee’s decisions will make both the six- ASK JOHN MANGOLD to make MNB work for you. Toll free: 1-800-332-5991 Merchants National Bank i§i Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA' BANK 2 W e ’re p e o p le y o u c a n t u r n t o fo r in v e s tm e n ts . For investment services, data processing, ag lending and overlines . . . we’ re the people you can turn to. W e ’ re m o r e t h a n w e s te rn Io w a ’s la rg e s t b a n k . W e ’re p e o p le . Bank on a BANKERS’ BANKER Call 1-800-362-1688, toll-free in Iow a Jim H ongslo Vice President 712/277-6625 SECURITY NATIONAL BANK IN SIOUX CITY, IOWA. month CDs and the 30-month CDs more attractive alternatives to com peting Treasury obligations. Q Iowa News BO O N E: K en n eth D an ilson has joined Citizens National Bank here as vice president o f the agricultural loan department. He was formerly county supervisor o f Boone and Story C ounties for the F arm ers H om e Administration. D AVEN PO RT: K enneth C. Hart man has retired as senior vice presi dent o f the Davenport Bank & Trust Co. after nearly 50 years o f service with the bank. Mr. Hartman helped open the bank’s trust department in early 1933, and his duties there had been primarily in investment and taxes. E L D O R A : T he Secon d N a tion a l Bank here has filed for permission from the department o f banking to M EM BER F .D .I .C . Hi xl BB j © 1980 Security National Bank co n v e rt to an Iow a sta te b a n k charter. FORT DODGE: The First National Bank has opened CBCT units at 146 S. 25th St. and 1513 Second Ave. North here. FREMONT: Joe Parrish has been named executive vice president and chief executive officer of the Farmers Savings Bank. He was w ith the Farmers National Bank in Webster City. Hugh Loudon, president of the Citizens State Bank, Clarinda, has been named president, but will con tinue to head the Clarinda bank. Both banks are owned by Don Dun can and associates of Lincoln, Neb. Bank of Creighton has filed for per mission from the regional adminis trator of national banks to change its location from 713 Main St. to 606 Main St. here. HUMBOLDT: Larry D. Curran has joined the First National Bank in H um boldt as vice president and cashier. Mr. Curran was formerly with the First N ational Bank in Ames for the past 10 years. Y O R K : The Y ork State Bank & Trust Co. has received consent from the department of banking and fi nance to move its charter and change its location from 626 Lincoln Ave. to 700 Lincoln Ave. here. SHENANDOAH: The 13th annual Southwest Iowa Bankers G olf Outing will be held here at the American Legion Course on June 19. D.B. Mul lins, vice president, City National Bank, is in charge o f reservations. SIOUX CENTER: Funeral services were held last month for Peter B. Mouw, 85, chairm an o f the First National Bank in Sioux Center. Mr. Mouw had spent 69 years with the bank in various capacities, retiring as president in 1977. Nebraska News ALLIANCE: The Alliance National Bank has received consent from the regional administrator o f national banks to exercise fiduciary powers. BELLEVUE: The Bank o f Bellevue has received consent from the depart ment of banking and finance to move its charter and change its location from 201 W. Mission St. to the north east com er of Harvel Drive and Gal vin Road here. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CREIGHTON: American National V !i Minnesota News MINNEAPOLIS: Victor Camso has been nam ed v ice p resid en t and treasurer of Northwest Bancorporation. Mr. Camso, who was formerly an assistant vice president at the First National Bank of Chicago, suc ceeds Steven A lm q u ist who has joined Northwestern National Bank here as a vice president in the bond department. ST. PAUL: Northwestern National Bank o f St. Paul has received consent from the Comptroller of the Currency to open a second detached facility to be located at White Bear Avenue and Beam Avenue. The office will be adja cent to the Maplewood Mall shopping complex. czHoCdzx and c / h io c ia tz i T <V §p> Bank Consultants S p e c ia liz in g in B a n k A c q u is itio n s P.O. Box 450 D o n ald 515-232-0814 405 Main Ames, Iowa 50010 E. H o ld er , Principal V Supplement to Northwestern Banker Newsletter 6-16-80 Carleton D. Beh Co. Investment Bankers/Financial Consultants NEW ISSUE SALE DATE: June 9, 1980 $3,600,000 CITY OF INVER GROVE HEIGHTS, MINNESOTA MOODY’S: A General Obligation Improvement Bonds of 1980, Series I Dated: July 1, 1980 Denomination: $5,000 Both principal and semiannual interest (February 1 and August 1, first coupon due on February 1,1981) payable at a bank to be designated. IN THE OPINION OF COUNSEL INTEREST ON THESE BONDS IS EXEMPT FROM ALL PRESENT FEDERAL INCOME TAXES. MATURITIES $250,000 250,000 250,000 250,000 250,000 200,000 200,000 5.50% February 5.60% February 5.70% February 5.80% February 5.90% February 6.00% February 6.10% February 1, 1983 5.50 $200,000 1, 1984 5.60 200,000 1, 1985 5.70 200,000 1, 1986 5.80 200,000 1, 1987 5.90 250,000 1, 1988 6.00 300,000 1, 1989 6.10 300.000 300.000 6.25% February 1, 6.40% February 1, 6.50% February 1, 6.60% February 1, 6.75% February 1, 6.90% February 1, 7.00% February 1, February 1, 1990 6.25 1991* 6.40 1992* 6.50 1993* 6.60 1994* 6.75 1995* 6.90 1996* 1997* 7.00 7.00 ‘ Optional in inverse numerical order beginning February 1, 1990 at 100%. LEGALITY TO BE APPROVED BY DORSEY, WINDHORST, HANNAFORD, WHITNEY & HALLADAY, ATTORNEYS, ST. PAUL, MINNESOTA The City of Inver Grove Heights, Minnesota, is located in northern Dakota County. The City has an area of 19,000 acres. There are several large industrial concerns located in Inver Grove Heights which account for a major portion of the City’s assessed valuation. Those industries are, for the most part, located in the Pine Bend area in the extreme southern part of the City. Most of the industries are highly automated and consequently are major taxpayers but not large employers. The City’s major industries are: Northern States Power Company; Farmers Union Exchange; and Union Carbide. Other industries in the City are Mid-America Pipeline Company; Mid-Space Steel and Screen; Krech Iron and Wipline Incorporated. There are two m ajor banks in Dakota County which have opened branch facilities in Inver Grove Heights. As of December 31, 1979, these banks had total deposits in excess of $76,500,000. These bonds are being issued pursuant to Chapters 429 and 475, Minnesota Statutes, for the purpose of financing various street and utility im provements in the City. These bonds are payable primarily from special assessments levied against benefited property owners. In the opinion of counsel, these bonds are also legal and binding general obligations of the City of Inver Grove Heights, Minnesota, and all taxable property located therein is subject to the levy of sufficient taxes to pay the principal of and interest on the bonds without limit as to rate or amount should the assessments prove insufficient. FINANCIAL STATEMENT Indicated market value taxable property, 1979 Assessed value taxable property, 1979 $312,894,090 63,611,380 Direct debt, including this issue Net direct debt, excluding self-supporting Total direct, overlapping and underlying debt 17,025,031 12,288,400 20,018,274 Population, 1979 estimate: 17,750 Direct debt per capita: $ 959.16 Net direct debt per capita: 692.30 Total debt per capita: 1,127.79 Tax collections have approximated 98.70% of taxes levied for the past four years. The information contained herein is not guaranteed, but is derived from sources we deem reliable and is that on which our purchase of these bonds was based. Offered subject to prior sale and change in price. We own and offer subject to prior sale and change in price and subject to our attorney’s approving opinion Digitized forDes FRASER Moines Building • Des Moines, Iowa 50309 • 515-288-2152 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 607 Marquette Ave. • Minneapolis, Minnesota 55402 • 612-332-8825 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Model 31 32-3335-36 A fully reconditioned NCR Accounting Machine, programmed to per form your specific bookkeeping tasks, can offer time saving and ac curacy formerly available only at many times our price. 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FIRST NATIONAL LI NCOLN 13th & M S tre e t • L in c o ln , N e braska 68501 • M em b e r, F.D.I.C. Illinois News Jack D. Lemmerman, chairman of the National Bank o f Monmouth, was installed as president o f the Illi nois B ankers A ssociation at the group’s annual convention in St. Louis, Mo., on June 7. He succeeded Gavin Weir, chairman o f the Chicago City Bank & Trust Co. Elected first vice president was James A. Fitch, president, South Chi cago Savings Bank. Named second vice president was Donald R. Lovett, chairman, Dixon National Bank. The new treasurer is Thomas M. Rochford, president, B ank o f Illinois, Champaign. BU SH N ELL: T hree new officers have joined the Farmers and Mer chants State Bank here, including: Michael G. Steelman, compliance officer, assistant trust officer and in ternal legal counsel; Steve R. Farr, assistant farm manager, and Kath leen M. Bisbee, marketing officer. O’FALLON: Don Brown, president of the First Bank & Trust Co. o f O’Fal lon, recently announced that James M. Jackson and his family o f Green- ville have made arrangements to purchase a major interest in the bank effective January, 1981. The Jackson family is active in the management of banks in Greenville and Vandalia. No personnel or policy changes are planned at the O’Fallon bank. M O R T O N : M o rto n C om m u n ity Bank has received consent from the FDIC to establish a facility in the Morton Superfoods Store here. SPRINGFIELD: Jack Marantz, pres ident of the Bank of Springfield, was recently elected president of the Inde pendent Community Banks in Illi nois. Mr. Marantz was one of the principal founders of the organiza tion six years ago, which now has a membership of 450. SPRINGFIELD: The Senate Finance Committee defeated SF 1299 by a vote of 7 to 4 last week. The sponsor of the bill has now filed a motion re questing that 1299 be discharged from committee, and this motion will be voted on by the Senate. If the mo tion receives 30 favorable votes, 1299 will be taken up on the Senate floor. The House passed the multi-bank holding bill earlier by a vote of 91 to 60. READY NOW North Dakota News IOWA-NEBRASKA BANK DIRECTORY Published bif No r th w es ter n Ba n k er O E S M O IN E S COMPLETE INFORMATION ON ALL BANKS IN IOWA and NEBRASKA ACCURATE' DEPENDABLE POCKET S IZ E A T h e c o m p le t e ly r e - e d it e d 1 9 8 0 e d itio n s o f th e Io w a B a n k D ire c to ry a n d th e N e b ra s k a B a n k D ire c to ry a re a v a ila b le n o w . U p -to -d a te U s in g s o f o ffic e rs , s ta te m e n t fig u re s , a n d o th e r v ita l fa c ts a b o u t a ll Io w a a n d N e b ra s k a b a n k s . N o w o n ly $10 fo r th e Io w a e d itio n a n d $6 fo r th e N e b ra s k a e d itio n . W r ite th e North western Banker to d a y fo r y o u r c o p ie s . T h e a d d re s s is 306 F ifte e n th S tre e t, Des M o in e s , Io w a 50309. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The North Dakota Bankers Asso cia tion , in cooperation w ith the American Institute of Banking in the state, has scheduled three N OW Accounts W orkshops next month. Dates and locations include: Dickin son, July 15; Jamestown, July 16, and Fargo, July 17. Lee Nelson of the Bank of Tioga is this year’s chairman of the NDBA education committee. ELLENDALE: Harley D. Jundt has been named the new president o f the First National Bank & Trust Co. here su cceed in g G erald M an gin . Mr. Jundt has been with the bank since 1971 and served as a vice president since 1973. Mr. Mangin will serve as a field representative for the Produc tion Credit Association in LaMoure. N O RTH W OOD: Funeral services were held in Northwood for Ted H. Tufte, 78. Mr. Tufte was instru mental in starting the Northwood State Bank in 1930 and in 1948 was elected president, a position he held for 30 years. He was active in the NDBA and community activities. RICHARDTON: A ribbon cutting ceremony on May 27 opened the new modem facility of the Farmers State Bank here. A public open house is planned for July 11 and 12. South Dakota News SIOUX FALLS: Northwestern Bank of Sioux Falls and First Northwest ern Trust Company of South Dakota co-sponsored a one-day "How to . . . Business Seminar” on May 20. Over 220 business people from central and southeastern South D ak ota and southwestern Minnesota attended the various sessions including gov ernment regulations, insurance and risk, financing and business and taxes. Keynote speaker was Dr. Sung Won Son of Northwestern National Bank of Minneapolis. Wyoming News J A C K S O N : B ern a rd R. W eb er, chairm an o f First Bankshares o f W yom in g , C h ey en n e, and F elix B uchenroth Jr., president o f the J a c k s o n S ta te B a n k , r e c e n t ly announced that an agreem ent in principle has been reached for the ac quisition of the J ackson bank by First Bankshares. The acquisition is sub ject to various conditions, including Federal Reserve Board approval. Grow with this pro!Kp III a I I I » Nh HL D ick M uir UNITED MISSOURI BANK OF KANSAS CITY, N.A. 10th and Grand o Kansas City, Mo. 816-556-7903 Member FDIC P A R T IA L LIST OF A V A IL A B L E POSITIONS ASST. VP—Good spot fo ra generalist. Small bank in rural community wants a person that can help them grow. $20,000 LENDING—Great opportunity to join a solid bank and grow w ith it. Responsibilities are general in nature and you w ill be groomed for the #2 spot. $18,000 TRUST—Senior officer. Experience needed. W ill eventually take full responsibility for department. $22,000 EVP—Must have sol id experience and be able to run a small bank. Should have experience in commercial and ag. $28,000 #2—Ground floor opportunity with new charter. W ill be involved with all aspects of the bank. $25,000 on union representation June 27, according to the National Labor Re lations Board. If the workers vote for the union, they will be represented by Retail Store Employees Local 782, which also represents clerks in supermar kets and some other retail stores. Hole-ln-One for Chicago Banker N evin Bow ser, vice president, First N ational B ank o f Chicago, scored a hole-in-one on the 148 yard par 3 hole at the Northshore Country Club in Milwaukee during the Wis con sin B an kers C on ven tion last week. Executive Officer to manage new head office of Landmands National Bank in Audubon, Iowa. Contact Bruce Lauritzen, Box 3128, Room 525, Omaha, NE 68103; or phone (402) 341-7030._____________________ (PA) Head of Audit Dept. — Eight-bank holding company in Montana, major bank, $250 million assets. Salary open. Excellent fringe benefits. Qualifications: CPA, minimum 3 years experience. Send resume to Thomas R. Cover, Security Bank-NA, Box 30918, Billings, MT 59116, E.O.E.___________________________________ (PA) POSITION WANTED Christian banker, with 19 years experience in operations and lending, seeks new opportunity. Write or call Free land Financial Service, Inc., 306 15th St., Des Moines, IA 50309; or call (515) 244-8163. Employer pays fee. EVP—Minnesota bank. Must have BA degree w ith 5 + years experience. Ideal background w ill have both commercial and ag lending. $32,000 ALL FEES PAID BY MANAGEMENT For further Information respond in confidence to: T 1 Bank Division 9 <i ROBERT HALF of Iowa, inc i l 317 6th Ave. Des Moines, IA 50309 (515) 244-4414 FOR SALE OR LEASE One Olivetti P-603 posting machine with a BRD disc. $1,800. Call (515) 245-7222._____________________ Saxon Bond Copier. $800. Call (515) 245-7222. _________________________________________ (PW) Trust Officer in major midwest bank seeks new oppor tunity. Excellent references and qualifications. Contact Malcolm Freeland, Freeland Financial Service, Inc., 306 15th Street, Des Moines, IA 50309. Call (515) 244-8163. Employer pays fee.________________________ (PW) CEO in north central community bank seeks new oppor tunity. Excellent track record and references. Contact Malcolm Freeland, Freeland Financial Service, Inc., 306 15th Street, Des Moines, IA 50309. Call (515) 244-8163. A G B A N K IN G C AREERS SENIOR LOAN OFFICER. . .In d ia n a ........$16-23,000 CREDIT MANAGER. . .O h io ...................... $23-25,000 AG LENDING OFFICER. . .SE Minnesota $16-18,000 COMMERCIAL. . .Io w a .............................. $20-25,000 LOAN OFFICER. . .Io w a ............................ $15-20,000 CREDITSUPERVISOR. . .Ohio ................$17-21,000 Since 1968, banks and other ag-related employers have been paying us to find the personnel they need. For more information, give Linda (our banking spec ialist) a call today. (515394-3145 New Hampton, IA 50659 PO SITION S A V A IL A B L E EXECUTIVE VICE PRESIDENT— New charter in excellent suburban area. Opportunity for#1 spot in 2-3 years................................ 30K AGRI LOAN— Position will be second officer in Rocky Mountain bank. Prefer 5-7 years experience................................................... 25K INVESTMENT OFFICER— Manage entire port folio fo r $50MM midwestern bank. Finance degree desirable..............................28K SENIOR ANALYST— Background in analysis of banks and related financial institu tions required. PreferCFA. 28K OPERATIONS OFFICER—3-4 years experience with a large bank desired. This is the #2 spot with opportunity to advance to top spot................................................................ 22K COMMERCIAL LOAN—$30MM suburban bank seeks lending officer with commercial and real estate experience. W ill advance to executive vice president........................... 25K JUNE IS JR. OFFICER MONTH We are featuring experienced officers in the 14M to 18M range. If you are in the salary bracket and want to make a change or If your bank is looking for a junior officer, please call us. TO M H A G A N & A SSO C IA TE S OF K A N S A S C ITY P.O. Box 12346 / 2024 Swift North Kansas City, Missouri 64114 ____ (816)474-6874 Vol. 9 No. 8 Northwestern Banker Newsletter [USPS 873-300] is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 25 cents per copy, $8.00 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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