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Vol. 13 No. 10 Des M oines, Iowa June 25,1984 Major Banks Still Have Troubles NTERNATIONAL markets con Imoney tinue to cause problems for major center banks of the United States. The Comptroller and the Federal Reserve have sent letters to a number of major banks in which, it was stated, the regulators made more clear the basis on which they want non-accruing loans carried on the bank books. The non-accrual loans, those with interest more than 90 days overdue, are stacking up at the major banks, but apparently are not being carried fully as non-accru al. In question is whether certain of those loans are genuinely non-accru al or are well secured and collectible. Loans to Argentina are the focal point of current negotiations, with that nation balking at entering into an agreement with the International Monetary Fund. Fed Chairman Paul Volcker made it known the Fed will not issue any guarantees unless the signing takes place. If it doesn’t, U.S. banks with Argentine loans would have to carry the overdue loans as non-accrual. Estimates for domestic non-per forming loans which are still shown as accruing interest range from 33% at one California bank to 20% for other banks. On the low range are several major banks showing only 1.3% non-accruing loans up to 5%. Prices of major banks stocks tumbled in recent days after the problem s of Continental Bank became known worldwide. Nervous ness in international markets has caused the U.S. banks to pay more for their European CDs, with their previous spread advantage almost disappearing. Consequently, the less favorable rates for selling CDs has meant a sharp pull-back by many of the U.S. banks from what had been an easy, favorable source of funding. On the domestic front, the Senate Banking Committee was to have the Gam Bill committee print available late last week. In the House, the St Germain-Wylie loophole closing bill was amended. Heads of the federal regulatory agencies—The Fed, Comptroller, FDIC—and Treasury Secretary Donald Regan all ap peared before the committee to voice their concern over the bill re-regulating banks but failing to offer ex panded powers to compete with non bank banks. Following Secretary Regan’s tes timony, the House bill went into markup with changes from the pre viously restrictive, loophole closing language that authorized no addi tional powers. These changes were made: • Dropped the provision to ban discount brokerage for financial in stitutions. • Added a provision to prevent banks from ever offering investment advice. • Grandfathers existing nonbank banks as of January 1, 1983. All after that would be subject to dives titure if the bill is not further modi fied. (This divestiture apparently would include all nonbank applica tions approved by the Comptroller in ‘83 and ‘84, including the four re cently approved for Dimension.) • Would benefit S&Ls by emascu lating the qualification for thrift lenders that would require 65% of S&Ls assets to be in mortgages or mortgage securities. It was still debatable last week whether either or both bills would be voted on this term. If they are, it ap pears certain they will go to the con ference committee for resolution of the diverse aims and language. While Congress debates whether to close interstate banking loop holes, Nebraska Banking Director Roger Beverage has scheduled a Ju ly 18 hearing into Citicorp’s opening of three offices in Omaha to solicit deposits for its subsidiary Citicorp Bank of Sioux Falls, S.D. □ CALL ON THE “PERFORMANCE TEAM” where com m on transactions are handled uncommonly well. FIRST NATIONAL LINCOLN 13th & M Street https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lincoln, Nebraska 68501 • Member, F.D.I.C. Norwest Bank Des Moines, N.A. NORWEST BANKS Call (515) 245-3131 or toll-free (800) 362-2514 Member FDIC T e a m w o rk : one o f the reasons w e're first in Iow a. Tom Quinlin Gary M cClim en BMA Sales Workshop Scheduled for Chicago port on the essential components of any sales program—corporate, retail trust, small bank or large bank, and will give a “ blueprint for action for banks to follow in developing a sales program or revitalizing an existing one,” according to Dennis J. Hillen, BMA director of training and pro fessional development department. The Chicago workshop is co-spon sored by the Northern Illinois Chap ter of BMA. Contact Mr. Hillen at BMA headquarters in Chicago (312 782-1442) for further information. A sales management workshop titled, “ Improving Selling Effective ness in Banking, will be conducted June 28-29 at the Drake Hotel in Chicago by the Bank Marketing As sociation. This is the last of four such workshops presented around the nation in June. At the workshops, Leonard L. Berry, professor of marketing and Charles M. Futrell, associate pro fessor of marketing, both at Texas A&M University, College Station, Bank Directory Correction will present their findings from a The toll free number on the United major research project they under took on the critical success factors Missouri Bank of Kansas City, n.a. needed to develop a “ bankwide” ad on page 217 of the 1984 Iowa sales program. The findings will re- Bank Directory and page 48 of the 1984 Nebraska Bank Directory has been changed. The new toll free number is 1-800-821-2171. Please make note of this change. Iowa News ASK JOHN MANGOLD to make MNB work for you. Toll free 1-800-332-5991 Merchants ^ National Bank 151 Member F.D.I.C. A ‘BANKS OF IOWA' BANK CANTRIL: The Van Buren Bancorporation, Keosauqua, has purchased controlling interest in the State Sav ings Bank of Cantril, with offices in Pulaski and Milton, from Mona G. Norris of Cantril. The Van Buren Bancorporation also purchased $750,000 in additional shares of the State Savings Bank. Assets of the bank are $15 million. The Van Buren Bancorporation also owns Farmers State Bank in Keosauqua. CRESTON: In a joint announce ment, H.C. Houghton, president of First National Bank in Creston, and Paul D. Dunlap, president of Hawkeye Bancorporation, disclosed plans for the proposed acquisition of the bank by Hawkeye Bancorporation. Terms of the proposed cash acquisi tion were not disclosed. The acquisi tion is subject to regulatory appro val. DENISON: Thurman Aarestad, 80, retired Denison banker, died at the Crawford County Memorial Hospi tal June 2 after a lingering illness. Mr. Aarestad served as president of the First Northwestern National Bank from 1947-1969. DES MOINES: John A. Sikkink, ex ecutive vice president at Norwest Bank Des Moines, N.A., is moving to Minneapolis to become senior vice president and manager of Norwest Electronic Delivery Systems, a sub sidiary of Norwest Corporation. NEDS handles the marketing, sales and delivery of all Norwest electro nic programs, including access to various nationwide networks. WINTERSET: James W. Mease has been elected president of Farmers and Merchants State Bank here. He will assume his duties July 1. For merly executive vice president, Mr. Mease succeeds Eugene W. DeRaad, who resigned to accept a position with United Bank of Arizona in the Mesa Regional Office. Nebraska News ARAPAHOE: Well-known Arapa hoe banker R. Finch Emmett, 92, died last month at the C.A. Mues Memorial Good Samaritan Center in Arapahoe, where he had been a resi dent for some time. Associated with the Citizens State Bank for over 70 years, Mr. Emmett served as an offi cer of the bank until 1972 and re- Professional ... Responsive... Call Mark Christen for any correspondent service. Call toll free (800) 622-7262 Valley National Bank S§i DES MOINES, IOWA 50304 A BANKS OF IOWA BANK Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mained on the board of directors un til January of this year. # • • • # # • ® * £ # 0 ^ LINCOLN: Nebraska Attorney General Paul Douglas, who was^acquitted recently by the Nebraska Supreme Court on a 4-3 vote, was in dicted June 14 on charges of perjury and obstruction of government oper ations in connection with testimony he gave on his business transactions with the now defunct Common wealth Savings Co., Lincoln, and one of its former officers. The secret in dictment by a Lancaster County grand jury that was formed to inves tigate possible wrongdoing in Com monwealth’s failure, resulted in Mr. Douglas’ indictment on June 18. If the felony charge is sustained the 56-year old Attorney General could be barred from office. 3 An important new profit center for your bank: - F L tV ® ■ a computerized local billing/credit service was in charge of the Lake Mills oper ation of Commonwealth Credit Union. 319- 291-5412 Member Federal Reserve System FDIC Wyoming News Robert T. Noel was elected presi dent of the Wyoming Bankers Asso ciation for the 1984-85 year during the annual convention business ses sion June 14 at Jackson Lake Lodge, Moran. Mr. Noel is president and chief executive officer of Wyoming National Bank of Casper. He suc ceeds Don H. Babbitt, president, Stockgrowers State Bank, Worlarid. New first vice president is Hale Kreycik, president, Converse Coun ty Bank, Douglas. N.P. VanMaren, Jr., president, Hilltop National Bank, Casper, was named second Iowa Independent Bankers Annual Convention July 19—July 21 Lake Okoboji Wisconsin News Featured Speakers Include: • Alice Rivlin, Director of Economic Studies, Brookings Institution, Wash ington, D.C. • Patrick Buchanan, political strategist and syndicated col umnist, Washington, D.C. • Dr. William Freund, Senior Vice President, New York Stock Exchange, Inc. • Dr. Karl Scheld, Senior Vice President, Federal Reserve Bank, Chicago • IBAA President Jack King, Kalispell, Montana • Bonnie Peterson, President, Nebraska Independent Bankers and President, Campbell State Bank, Campbell, Nebraska. Panel: • “ The Farm Economy In Congress” Rep. Berkley Bedell and Rep. Cooper Evans BARABOO: Greg L. Lindner has been elected executive vice presi dent and a director of Baraboo Na tional Bank. Previously vice president at the bank, Mr. Lindner cur rently serves as president of the Sauk County Bankers Association. Special Concurrent Sessions: LAKE MILLS: Todd Schneider has been appointed vice president of the Bank of Lake Mills. He previously For Complete Details Contact: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Leroy Bell or Milt Hennick National Bank of W aterloo 315 East 5th S t • W aterloo, IA 5 0 7 0 4 WAUKESHA: The Marine Bank of Watertown has consolidated with Marine Bank West, according to George R. Slater, chairman and CEO of the Marine Bank Corpora OMAHA: The recently chartered tion. The consolidated bank, which First Continental National Bank will be based in Waukesha, is part of opened June 11 for business in its a plan announced in 1982 to merge temporary facility at 5332 So. 138th 22 Marine banks into 10 facilities. St. in suburban Millard, then Philip J. Loritz will continue as pres promptly changed its name after one ident of the Watertown office and all day of business to River City Na other Watertown officers will con tional Bank. Ron Beran, 36, presi tinue in their present capacities. dent of the new bank, said it was decided some time ago to change the bank’s name, but it was easier to open under the charter name and change the name after one day than to refile papers prior to the opening. The bank opened with $1 million capital and $1 million surplus. Ron Sladek is vice president and Loran Harpin is assistant cashier. John W. Johnson, president of Bank of Spring Green, began his term as president of the Wisconsin Bankers Association following their annual convention held June 10-13 in Milwaukee. He succeeds William J. Morrissey, president of the Inde pendent Bank, Elkhom. Dean A. Treptow, president of the Brown Deer Bank, was advanced to vice president. The new treasurer is Rich ard J. Roesler, president of the First National Bank, Platteville. K Contact: • IAC Credit Life & Credit Disability Plan • AFI Equipment Leasing Pro gram • JORM Microfilm Package • InnerLine • Community Banker Insur ance Agency Plus: • Young People’s Gathering • Couple’s Golf Tournament • Annual Golf Tournament • Barbecue • Lots of Fun Diane Gibbs, Executive Director Iowa Independent Bankers vice president. M. Clare Mundell, executive direc tor the past 12 years, retired follow ing the convention and was elected honorary executive vice president of the WBA. The new executive direc tor is Gretchen Tea, formerly of M ontana Bankers A ssociation. Complete details and pictures ap pear in the July N o r t h w e s t e r n B anker Ag Banking Personnel Let us help you. Call the ag lending personnel specialists without cost or obligation. Confi dential. Employers pay us to hire the best. Number Two banker w ith commercial and ag lending record fo r Iowa bank in $50 m illion deposit range.............. ................................................................................ To $42,000. Cashier for $30 m illion southern Iowa bank. Ideal working conditions and recreational area.......................To $28,000. Number Two person for southern Illinois bank. Excellent s itu atio n ................................................................. To $35,000. Ag Lender for $60 m illion northern Iowa bank. Opening due to retirement. Nice com m unity.................. To $28,000. Commercial Lender fo r southern Minnesota, multi-bank holding company bank.........................................To $30,000. . SHERIDAN: Effective July 9, affil iate banks of Commerce Bankshares, Sheridan, will change their names to include First Interstate, under a recent franchise agreement. The banks and their new names are: Bank of Commerce - First Interstate Bank of Sheridan; Security Bank, Sheridan - First Interstate Bank of Sugarland; Security Bank of Buffalo - First Interstate Bank of Buffalo; Security Bank of Gillette - First In terstate Bank of Gillette, and First National Bank of Greybull - First Interstate Bank of Greybull, N.A. Financial Careers President for $50 m illion Illinois bank. Must have proven re cord......................................................................... To $70,000. Commercial Lender for large western Iowa bank. Requires at least 5 years experience w ith larger b a n k .. .To $35,000. aqncareers, in c . J AG BANKING SPECIALISTS Number Two person for northeast Iowa com m unity bank. ................................................................................ To $35,000. Lender fo r $50 m illion bank located in lake areaTo $28,000. Loan Review Officer for major bank holding com pany___ ................................................................................ To $35,000. Ag Lender for northeast Iowa community bankTo $30,000. Ag Lender for community bank located on M ississippi........ .................................................................................. To $25,000. Commercial Lender with five or more years experience for $300 million Illinois bank................................................ Salary Open. Mortgage Lender with knowledge of secondary market for major Iowa b a n k ................................................. Salary Open. CEO for small northern Iowa bank................................ Salary Open. Write or call Malcolm Freeland or Cy Kirk at Freeland Financial Service, Inc., 1010 Equitable Building Des Moines, Iowa 50309. Phone 515/282-6462. Employer pays fee, and we have many other opportunities. MODULAR FINANCIAL BUILDING 1,300 S.F., Completely equipped. Phone 402/453-6600 (FS) IBM MEMORY 100 TYPEWRITER w ith dual capacity, con tinuously in service. Call 515/295-3595, Iowa State Bank, Algona, Iowa. (FS) DOCUTEL TOTAL TELLER. 612-631-1300. C ontact Diane Nelson (FS) WANT TO BUY DIEBOLD 906 OR 910 FREESTANDING ATM—Contact Ken or Ron at 402/288-4242. (WTB) B A N K IN G PLA C E M EN TS “ Successful Banking is Quality Personnel” SENIOR COMMERCIAL LOAN OFFICER—$100 m illion as set eastern Nebraska bank desires seasoned commercial loan officer to manage portfolio. Salary commensurate w ith experience. Contact 402/727-1100. (PA) VICE PRESIDENT/AQRICULTURAL LOANS— Excellent career opportunity. Requires bachelor’s degree (emphasis in agricultural subjects preferred) and a minimum of 3 to 5 years experience in ag lending. The individual must pos sess a working knowledge of agriculture, including the production of grain and livestock. Salary commensurate w ith experience, plus excellent benefits. Contact: Steven L. Afdahl, President, Hawkeye Bank and Trust, P.O. Box 4068, Spencer, Iowa, 51301. Phone (712) 262-1940. Member Hawkeye Bancorporation. (PA) CASHIER—$20 m illion central Iowa bank near Ames and Des Moines. Should have a minimum 3-5 years bank exper ience. Would also make loans. Salary based on ability and experience. Good fringe benefits. W rite file WBM, c/o Northwestern Banker. (PA) LOAN OFFICER— Promotion creates opening for experi enced lender to handle sound portfolio o f small to medium retail, wholesale and manufacturing accounts in a pro gressive bank located in a solid agri-business community. Send resume in confidence to: First National Bank, Box 658, Montevideo, MN 56265.. (PA) SECOND OFFICER—$15 m illion asset broadly owned com munity bank in Butte, Montana, seeks person w ith several years operations experience who is w illing to assume substantial responsibility. Send resume to Jerry James, C.E.O., First Citizens Bank of Butte, P.O. Box 3149, Butte, MT 59701. (PA) Eighteen years banking experience serving as president o f rural and m e tro po lita n banks enables me to fin d th e " rig h t” banking p o s itio n fo r you as a banker o r the “ rig h t” o ffic e r fo r yo u r bank. D O N <ScH O O LER |r AND (jjrlW associates 2508 East Meadow • Springfield, Missouri 65804 417/882-2265 COMPLETELY CONFIDENTIAL ______________"E m p lo y m e n t Service” _____________ FOR LEASE MOBILE BANK UNIT— 12’x62’ complete banking equip ment. Includes drive-up window, night depository, tw o tel ler stations, private o ffice o ff lobby. AVAILABLE NOW. Drommer Leasing, 401 Queens Court, Sioux City, IA 51104. Phone 712/239-2315. (FL) cA ÎoLAeZ unA cA hiociatis. Bank Consultants Specializing in Bank Acquisitions P.O Box 450 515-232-0814 405 Main Ames, Iowa 50010 Donald E. Holder , Principal POSITIONS A V A IL A B L E COMMERCIAL/INSTL. LOAN - $80MM bank with large con sumer loan portfolio seeks experienced lender to under study senior loan officer. $25,000 CASHIER - $25MM community bank. Handle operations, personnel and regulatory reports. Third man position. $25,000 AGRILOAN - senior position in $35MM rural bank. Some experience with commercial credits desired. $35,000 COMMERCIAL LOAN • $60MM suburban bank. Requires three or more yrs. commercial lending experience and good business development skills. $33,000 PRESIDENT - major midwestern holding company seeks experienced CEO with strong agricultural loan back ground to manage $45MM affiliate bank. $ Open All inquiries confidential. Resume’ requested. TOM H A G A N & A SSO C IATES P.O. Box 12346 - 2024 Swift North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970” Vol. 13 No. 10 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306 Fif teenth Street, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $15.00 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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