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Vol. 9 No. 9 Des Moines, Iowa June 23,1980 Policy Supports Interstate Banking HE Association of Bank Hold ing Companies is the first na tional banking trade association to adopt a policy in support of inter state banking. Meeting at the Con ference Center in Williamsburg, Va., the member companies approv ed a new policy urging that bank holding companies be permitted to consolidate with other bank holding companies in contiguous states. A bank holding company with more than $500 million in assets would be limited to acquiring one bank holding company in each con tiguous state during the first five years of the proposed law. All such consolidations would be subject to approval by the Federal Reserve Board and review by the Justice De partment. T New Policy The new policy reflects the react ion of member companies to the de velopments of recent years includ ing the increased competition from foreign banks and non-depository financial institutions and the forth coming report of the President’s study of the McFadden A ct and the Douglas Amendment to the Bank Holding Company Act. The Association’s members reaf firmed their support for a national policy to permit bank holding com pany acquisitions across state lines in the case of large failing banks and bank holding companies. In addition, the Congress was urged to consider the desirability of permitting bank holding companies to cross state lines to acquire thrift institutions in severe financial diffi culty. Finally, the Association recom mends that the states utilize the present authority of the Bank Hold ing Company Act to establish recip rocal agreements permitting inter state bank holding company operat ions. Profile A profile of interstate banking was described by Frederick Deane Jr., chairman, Association of Bank H oldin g Com panies. He co m mented: “ First of all, economic realities may well cause a sharp decline over the next decade in the absolute number of commercial banks and thrift institutions, and the number of ‘bricks and mortar’ offices. But interstate banking itself will not cause this decline; in fact, it will facilitate a more orderly consolida tion and restructuring of the finan cial services industry. “ Because national public policy will not countenance widespread fi nancial institution closings or fail ures, it will employ institutional re structuring in interstate banking as a method for integrating the weak and the strong. With this perspect ive in mind, it is possible to sketch the outlines of tomorrow’s ‘playing field.’ “ Banks will be able to operate in a natural trading area which is suit able to the size, operational capa city, managerial and professional abilities, and capital structure of each particular type bank. They will have the ability to extend a full range of credit and related financial services and the ability to purchase any type of funds. Within this broad market place, banks or regional bank holding companies must posi tion themselves in a realistic manner so that they can carefully identify appropriate customer segments. “ How is this accomplished? It makes sense to utilize existing loan production offices or bank-related subsidiaries within a natural trad ing area to provide deposit and other funds acquisition services. A mini mum of de novo activity may be needed, and some downstream mergers and consolidations with smaller commercial banks and thrifts (including finance com panies). In addition, some mergers and consolidations may take place ‘among equals,’ probably in conti guous states. “ To round out its ability to pro vide a wide range of services to all sizes of customers, a regional bank ing organization will want to deINTERSTATE BANKING . . . (Turn to page 4, please) CALL ON THE “PERFORMANCE TEA M ” where com m on transactions are handled uncomm only well. IIIIHHillll FIRST NATIONAL LINCOLN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. 2 Don't gam ble when choosing o correspondent bonk. Com e to the professionals. Central National Bank & Trust Company DES MOINES • MEMBER FDIC TOLL FREE NUMBER (800) 362-1615 ABA Plans China Trip C. C. Hope Jr., president, and Willis Alexander, executive vice president of the American Bankers Association, and Norman Ross, senior vice president, First National Bank, Chicago, plan a trip to China August 4. The group will call on the Bank of China and other trade groups with the goal of promoting trade between America and China. Iowa News AKRON: The First National Bank here recently hosted an open house in their newly-remodeled facilities at 251 Reed St. regional administrator of national banks to open an office in the 1600 block of Lincolnway here. COLFAX: The First National Bank recently hosted an open house in their new facilities. Featured were free bar-b-que pork sandwiches and beverages in the bank’s parking lot. JEFFERSON: Funeral services were held last week for Harlan Sterk, 44, president of the Jefferson State Bank. Mr. Sterk, who died of cancer, joined the bank in 1965 and was appointed president last De cember. He was a member of the board of Brenton Banks, Inc. KALONA: Farmers Savings Bank recently hosted a public open house in their newly-remodeled facilities. The event was preceded by a special event for area bankers and princi pals in the construction, according to Jan M. Skola, president. MARION: The First National Bank here has filed for permission from the regional administrator of na tional banks to open an office at Southgate and 33rd Avenue in Cedar Rapids. SAC C ITY : Daryl J. Stalzer will be joining the Citizens Savings Bank here as insurance agency manager on July 1. He is presently an insur ance agent with the Farm Bureau in Marshalltown. CLINTON: The First National Bank has received consent from the SPENCER: The Spencer National Bank has received consent from the administrator of national banks to open an office at 901 11th St. SW. Grow with a BANKERS’ BANKER W AVERLY: Rodney Drenkow has joined the First National Bank of Waverly as trust officer. He was formerly associated with the W est ern State Bank in Sioux Falls, S .D ., and recently completed his law de gree and M BA degree at the Univer sity of Iowa. Call 1-800-362-1688, toll-free in Iow a Roger Arwood Correspondent Banking Department Bankers Trust Com e C row W ith Us Des Moines, Iowa 50304 Member FDIC, Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska News F A IR B U R Y : Funeral services were held recently in Fairbury for Ivan C. Riley, 80, a Nebraska banker for over 50 years. He joined the First National Bank here in 1938 and was elected president in 1940, serving in that capacity until retiring in 1972. IM PERIAL: Roy D. Beckett has resigned as senior vice president of the Chase County Bank & Trust Co. to pursue business interests in Colo rado. Chan Schwartz has joined the bank as assistant vice president. He I BANKERS PARTICIPATING l£ a s e P la n ,ln c . 545 - 31st Street Des Moines. Iowa 50312 R. L. “DICK” SELLON • P.D. “DUANE” DEVAULT was formerly with the Bank of the Panhandle in Guymon, Okla. LINCOLN: The National Bank of Commerce has filed for permission from the regional administrator of national banks to open a CBCT unit at 17th and Court here. OVERTON: Funeral services were held in Overton for longtime banker John L. Carter, 85. He had been associated with the Bank of Overton in Dawson County. Minnesota News DULUTH: Richard Gandrud was elected president of the Minnesota Bankers Association at the 90th annual convention here. He is presi dent of the Pope County State Bank, Glenwood, and he succeeds Jim Gowan, vice president, First National Bank, St. Paul. Elected first vice president was Robert J. Welle, chairman, First National Bank, Bemidji. The new second vice president is John Ingebrand, presi dent, Kanabec State Bank, Mora, and the new treasurer is Donald Sirek, president, State Bank of New Prague. An on-the-spot picture and news report of the convention will be featured in the July issue of the magazine. W EST ST. PAUL: Signal Hills Associates, Inc. has received con sent from the Federal Reserve Bank. Estate Appraisals k~ k M- r* Purchase of Collections Sale of Rare Coins Reliable and respected service for over 20 years Used by bankers throughout the midwest Ben E. Marlenee Coins 913 Locust Des Moines, Iowa 50309 515-243-8064 ' V rkzm Carleton D. Beh Co. Supplement to Northwestern Banker Newsletter 6-23-80 Investment Bankers/Financial Consultants PRELIMINARY CIRCULAR — Selling Tuesday, June 24,1980 at 11:00 A.M. $11,000,000 DES MOINES WATER WORKS, IOWA Water Revenue Bonds MOODY’S: Requested S & P: AA Dated: June 1, 1980 Denomination: $5,000 Both principal and semiannual interest (June 1 and December 1, first coupon due on December 1, 1980) payable at a bank to be designated. IN THE OPINION OF COUNSEL INTEREST ON THESE BONDS IS EXEMPT FROM ALL PRESENT FEDERAL INCOME TAXES AND ALL PROPERTY TAXATION IN THE STATE OF IOWA. $650,000 675.000 725.000 775.000 825.000 875.000 December December December December December December MATURITIES 1, 1 9 8 1 _______________ $ 925,000 December 1, 1987 ___________________ 1, 1982 _______________ 975,000 December 1, 1988 ________________ 1, 1983 _______________ : 1,050,000 December 1, 1989 ________________ 1, 1984 _______________ 1,100,000 December 1, 1990 ________________ 1, 1985 _______________ 1,175,000 December 1,1 9 9 1 *________________ 1, 1986 _______________ 1,250,000 December 1,1 9 9 2 *________________ ‘ Optional in inverse order beginning December 1, 1990 at 100%. LEGALITY TO BE APPROVED BY AHLERS, COONEY, DORWEILER, HAYNIE & SMITH, ATTORNEYS, DES MOINES, IOWA The Des Moines W ater Works provides retail water service to the residents of Des Moines and some unincorporated areas surrounding the City. The W ater Works also provides all of the water, on a wholesale basis, to the Cities of Clive, Johnston, Norwalk, Pleasant Hill, Urbandale, W indsor Heights, and Cumming, as well as two rural water districts and several benefited water districts. The Cities of Ankeny and W est Des Moines are also served on an intermittent basis. The estimated population of the service area (270,000), equals about 10% of the State’s population. Des Moines is the capital of the State of Iowa and also the County seat of Polk County. Since its incorporation in 1851, it has served as the commercial, industrial, governmental and financial center for the State. Des Moines is the home of Drake University (enrollment 6,600) Grand View College (enrollment 1,200) and several other smaller colleges and business schools. Des Moines is an important insurance center with sixty home offices located in the City. The largest is Bankers Life Company with 2,500 employees. Also important is the printing and publishing industry; the largest employer in this category is Meredith Corporation with 2,920 employed in the printing of Better Homes and Gardens and other periodicals. Besides insurance and publishing, there are an estimated 4 0 0 factories in the area with combined sales in excess of $500,000,000. Major industrial employers in the area include John Deere (farm equipment, 2,700 employees); Firestone Tire (tires, 2,950 employees); and Pioneer Hybrid Seed Co. (seeds, 1,700 employees). Large commercial employers located in Des Moines include Northwestern Bell Telephone (3,200 employees); Younkers Department Stores (2,000 employees); and Iowa Power & Light Co. (1,500 employees). In addition, it is estimated that the various levels of government provide employment to 17,500 people in the area. The population of Des Moines, according to the 1970 Census, was 201,404 and is presently estimated at 200,000. Des Moines is served by five airlines, six railroads and 67 truck lines. Interstate Highways No. 35 and 80 intersect in Des Moines. The area included within the City limits is approximately 65 square miles. There are twelve banks in Des Moines with total deposits in excess of $1,770,000,000. These bonds are being issued under the provisions of Chapter 384, Code of Iowa, 1979, as amended. The proceeds of this issue will be used to construct an intake in the Des Moines River ($1,000,000); to construct a raw water pumping station ($2,300,000); to construct a raw water transmission main ($6,700,000); and to partially fund a debt service reserve fund ($1,000,000). In the opinion of counsel, these bonds are legal and binding obligations of the Des Moines W ater Works, Iowa, payable from the future net revenues of the water system. This issue represents the only bonded indebtedness of the W ater Works. On May 2 0,1980, the Board of Trustees authorized, by Resolution, a rate increase of approximately 30% to become effective January 1, 1981. EARNINGS STATEMENT 1979 Pro-forma* $11,349,306 6,921,735 $ 4,427,571 Gross revenues Expenses Net revenues 1979 Actual $8,795,009 6,921,735 $1,873,274 1978 Actual $5,977,258 6,551,773 ($ 574,515) 1977 Actual $6,075,565 5,414,054 $ 661,510 *As if 1981 rates had been in effect. Average principal and interest Coverage of average requirement COVERAGES (Based on 1979 pro forma net revenues) $1,329,688 Maximum principal and interest 3.33 x Coverage of maximum requirement $1,337,500 3.31 x The information contained in this circular is not guaranteed, but is derived from sources we deem reliable. Des M oines B u ilding • Des M oines, Iowa 50309 • 515-288-2152 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 607 M arq u e tte Ave. • M in ne a p o lis, M in ne so ta 55402 • 612-332-8825 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,000« s & S I G N S o n s $26700 7 (INCLUDES TITLE STRIPS & LOBBY PLACARDS!) Red & Black Art on White Sign Stock — Plus $10.00 Set Up Garage m o G «g ii a o C # lisi ■ ■ rB h h h h h ■ V; S e w ffi 1 #?I' 1"\?5Í * * ' tÄi W ÈÊIIÊÈÈmI S® B Wm r & _ . m eayot Courtesy of ■ saR :4iù/t- . Il COUNTY BANK 'Ml IM |si 11Ml'ANI C ’mon, Guys... we all know Garage Sales are a big thing! And women will drive miles to get free signs! Y ou’ll have lobby traffic you wouldn’t believe! Give ’em two or three signs . . . or charge 25<P each! They tack ’em up all over town, and love you for it! Great advertising . . . fine P.R. And we send a good stock of conversion strips, so the girls can change the header to “Rummage”, “Yard”, “Porch”, and so forth. Enclose a velox, letter head, or something with your art on it, please! Order before prices go up! Our signs are in great demand nearly everywhere they are offered! Hey, Sue . . . W ell take a shot at this! Bill us later! Bank Street. City/State_ SB Name & T itle _______________________!___________________________________________________ __ ______________ (Be sure to enclose a velox, letterhead, or something with your art! Delivery takes about three weeks from time we receive your order!) Fill O u t . . . Send Coupon to Us Today! Bob Tucker • Box 1222 • Pt. Arthur, TX 77640 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “SINCE 1958” Supplement to Northwestern Banker Newsletter 6-23-80 SEND US □ 1,000 Signs @ $267.00 □ 2,000 Signs @ $436.00 □ 3,000 or More @ $216.00/M □ 500 Signs @ $161.00 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tional banks to open a facility at 901 N. Gilbert St. HOFFMAN ESTATES: An appli cation for a charter for the new First National Bank of Hoffman Estates has been approved by the Comp troller of the Currency. The bank’s agent is Arthur Raphael. Montana News ASK DALE FROEHLICH to make MNB work for you. Toll free 1- 800 - 332-5991 M erchants ^ National Bank 151 M e m b e r F .D .I.C . A B A N K S O F IO W A BANK of Minneapolis to become a bank holding company by acquiring the Signal Hills State Bank here. Illinois News The Senate Finance and Credit Regulations Committee in Springfield recently defeated H B 1299. The bill which would have allowed multi bank holding companies and a third banking facility was defeated by a vote of 7-4. The Illinois Bankers Association has opposed the pro visions in this bill since its intro duction into the House in March, 1979. D ANVILLE: The First National Bank of Danville has received con sent from the administrator of na Call our Bond Department For up-to-the-minute, accurate information MISSOULA: George Henry, senior vice president, State Bank & Trust Co., Dillon, is in St. Patricks H os pital here following a stroke. Mr. Henry was formerly vice president and head of the correspondent de partment at First National Bank, Minneapolis. SIDNEY: William A. McIntosh has been appointed vice president and cashier of 1st United Bank of Sid ney. Most recently he owned a drive-in business and worked as a financial investigator for the De partment of Institutions in Billings. He was previously associated with the Sidney National Bank. Colorado News AURORA: Buckingham Square National Bank here has received consent from the administrator of national banks to change its name to the First National Bank of Aurora. DENVER: Boulevard Colorado Na tional Bank has received consent from the administrator of national banks to open a CBCT unit at Leetsdale Drive and Monaco Avenue here. North Dakota News FARGO: Marjorie Klug has been elected vice president in charge of personnel and corporate invest ments at the First National Bank of Fargo. Pat Sandvik and Connie Pederson have been appointed instalment loan officers, and Mar garet Williams was named a collect ion officer. Tom Steffens New officers of the Wyoming Bankers Association for 1980-81, elected at the 72nd annual conven tion at Jackson Lake Lodge June 12, are: President—George E. Cooke, director, American National Bank Powell; 1st Vice Pres.—A l E. Bradbury, president, First National Bank, Evanston, and 2nd Vice Pres. — Buzz W assenberg, president, State Bank of Big Piney. Also, M. Clare Mundell continues as execu tive director with headquarters in Laramie. A full report with pictures will appear in the July magazine. CHEYENNE: Robert T. Noel has been named president and chief ex ecutive officer of the First W yoming Bank, N.A.-Downtown Cheyenne. Most recently he was executive vice president of Wyoming Bancorporation where he was involved in new bank activities and served as ad ministrative officer. CHEYENNE: Joseph Kasper Jr. has been appointed senior vice pres ident of lending at the First W yom ing Bank, N .A.-East Cheyenne. He had been serving in various capa cities at the First Wyoming BankDowntown. POWELL: Organizers of the pro posed First Wyoming Bank, N .A.- Terry Mercurio Jim McLaughlin Vice President Vice President Asst.Vice President Asst.Vice President 234-2462 234-2458 234-2673 Tony Paugoulatos 234-2647 Rusty Reese Bond Representative 234-2463 wn C ommerce Bank ofKansascity *10*a„d¿iLt https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M e m b e r FDIC ' 234-2674 (816) 234-2000 4 SERVING PROFESSIONALLY AG BANKING CAREERS Banking, Financial & Business Personnel Iowa and Nationwide SENIOR LOAN OFFICER. . .In d ia n a ........$16-23,000 CREDIT MANAGER. . .O h io ...................... $23-25,000 CAPITAL PERSONNEL SERVICE AG LENDING OFFICER. . .SE Minnesota $16-18,000 714 Central National Bldg. 515-283-2545 Des Moines, Iowa 50309 COMMERCIAL. . .Io w a .............................. $20-25,000 LOAN OFFICER. . .Io w a ............................ $15-20,000 CREDIT SUPERVISOR. . .Ohio Powell have filed for a national bank charter from the Comptroller of the Currency. The proposed bank, which would be capitalized at $1 million, is being organized by five men who are officers of Wyoming Bancorporation. INTERSTATE BANKING . . . (Continued from front page) ................$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. 3 Ctrl'G4REERS, INC. m j AGRICULTURAL PERSONNEL RECRUITERS (515 394-3145______________New Hampton, IA 50659 PARTIAL LIST OF AVAILABLE 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 with 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 solid 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 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: Bank Division I f > > ROBERT HALF \ v 1 317 6th Ave. velop and maintain a presence in certain markets outside its natural trading area, such as New York, Chicago, San Francisco or Atlanta. Finally, since foreign banks are at our doorstep, we must operate over seas and be on their doorstep. Types “ Exactly which types of institu tions will be involved in interstate banking? The full-service players will include traditional depository institutions, foreign banks, ‘near banks’ like Sears, Merrill Lynch and Beneficial Finance, and some unex pected intruders such as AT&T, IBM and RCA which will become in volved in financial services through fee-based information communica tions. “ Some of these ‘ financial super markets’ will result from mergers between commercial banks and thrifts. A handful of banking organizations will become truly na tional banks —Chase, C itibank, Bank of America and a few others. “ Lastly, this scenario does not preclude a continuing and very suc cessful role for smaller financial in stitutions. There may not be as many independent ones as there are today, but the well-managed and aggressive smaller institutions will adopt on a smaller scale strategies similar to those being pursued by the regional holding companies. ’ ’ □ ® of Iowa, Inc. Des Moines, IA 50309 (515) 244-4414 UPDATE YOUR ALARMS S e c u rity a n d v id e o s y s te m s p ro fe s s io n a lly d e s ig n e d to f it a ll y o u r n e e d s . F o r in fo rm a tio n a n d c o m p le te s u rv e y c a ll: SECURITY SYSTEMS, INC. 3920 Delaware Des Moines, IA 50316 [515] 265-1161 AG LOAN OFFICER—We prefer a person with some college and who has had good ag lending experience. A major responsibility w ill be to perform farm budget ing and financial planning assistance. Our starting salary could range from $20,000 to low $30,000, depending upon qualifications. If you have an interest in this position, please send an application or a resume to: Bob Hadland, EVP, Farmers & Merchants State Bank, Lamberton, MN 56152. We are an equal (PA) opportunity employer. FOR SALE Two Burroughs L-8500 series computers each with cassette. One Burroughs auto reader. Machines under Burroughs service contract. One NCR-6 pocket proof machine also under NCR service contract. Machines available October 1,1980, or before. Exchange State Bank, Collins, Iowa50055. (515)385-2304. (FS) Burroughs Model TC 3631-104 terminal w ith controls and cable. Four years old in excellent condition. $2,500. Also, NCR Model 481 proof machine. Average condition. Ideal for branch proof operation. $150. Contact Keith Jones, Cashier and Vice President, Uni bank & Trust, Coralvllle, Iowa 52241. Or phone (319) 351-8000._________________________________(FS) Order Now! LET US MAKE YOU a dazzling mirror-glass name plate, deeply etched, filled in gold-and-blue! A work of art for desk, office door. Every staff member will want one! Send logo, name. No title, please. Size 16" x 3" x V /. Billed on delivery, $35 f.o.b. BOB TUCKER, BOX 1222 PT. ARTHUR, TX 77640 “Since 1958” Packages 1. B lanket Bond, D irecto r & O ffic e r, T rust E & O A U T D m A T E D S Y S TE fTIS 2. A u to m o b ile s □ F iD L U A J ilC . 3 . S ingle Interest 301 n . A n k e n y B lv d ., S u ite 220 4. Fire & L ia b ility A n k e n y , la 50021 5 15-964-1358 5. C rim e (safe d e p o s it, cash le tte r, e tc .) □ I would like to sell my majority bank stock. □ I would like to buy ma jority bank stock. I Please Contact: J . Mason Henry l Charles E. Walters Co., Inc. I I P.O. Box1313, Omaha, Nebraska68101 Phone: (402)553-6400 | I I________________________________ ' POSITIONS AVAILABLE EXECUTIVE VICE PRESIDENT— New charter in excellent suburban area. Opportunity for#1 spot in 2-3 years................................ 30K AGRI LOAN— Position w ill 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. TOM HAGAN & ASSOCIATES OF KANSAS CITY P.O. Box 12346 / 2024 Swift North Kansas C ity, M issouri 64114 ________________ (816)474-6874________________ Vol. 9 No. 9 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