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Vol. 15 No. 11 Des Moines, Iowa Hawkeye Plans to Sell 17 Banks BR IE F announcement was A made last week by Paul D. Dun lap, president and chairman of Hawkeye B ancorporation, Des Moines, that 17 of the holding com pany’s 36 banks would be sold off to reduce Hawkeye’s approximately $100 million of debt. Acknowledging that “ It’s very painful to downsize a company,” Mr. Dunlap’s announcement also said Hawkeye would sell its mort gage banking and insurance units and four other non-banking subsi diaries. The proposal has not been formal ly reviewed by Hawkeye’s creditors. They include Continental Bank of Chicago, First Bank System and Norwest Corporation of Minneapo lis, Bankers Trust Company of Des M oines, Credit Suisse, Merrill Lynch and several-insurance compa nies. Mr. Dunlap said “ an accord with respect to a number of material is sues has been reached with most of (Hawkeye’s) institutional lenders. A final accord with such lenders is sub ject to resolution of other material issues, execution of definitive docu ments and regulatory approval. No definitive discussions have been had with preferred stockholders. De pending on certain factors, a meet ing of common stockholders may be required.” Mr. Dunlap and Robert W. Mur ray, executive vice president and treasurer, said late last week that “ considerable activity has already been generated” since the announce ment earlier in the week of the plan ned sale of the 17 banks. This re sponse came from officers and direc tors of many of the 17 banks, as well as from a number of interested bank ers and other investors outside the Hawkeye family. Correspondent bank departments of major Iowa banks reported last week they had a number of calls from individuals wishing to discuss the possibility of such a purchase and to determine if bank stock loans would be available. Mr. Dunlap said first preference would be given to officers and direc tors of the local banks so the banks could continue as locally owned in stitutions by those people most fa miliar with them, and who have worked for some years to serve thenrespective communities. Mr. Dunlap’s announcement said further: “ Proceeds will be used to retire $22.5 million of installment notes without interest, all due by June 30, 1988. Any excess proceeds will be applied to other debt. Installment payments on these notes are due $10 million by December 31, 1986; $5 million by June 30, 1987; $5 million by December 31, 1987 and $2.5 mil lion by June 30,1988. Term notes of $15 million will be issued at prime June 30,1986 rate, with a 12% cap, payable in terest only for five years, renewable if no default exists for an additional five years with principal amortized during 1991 through 1996. Default in payment of the installment notes or term notes, or other loan cove nants, will accelerate all debt obliga tions. Substantially, all the com pany’s remaining assets will be pledged to secure the obligations. “ The creditors will receive $30 million of subordinated capital notes, bearing prime interest rates with a 12% cap and due in three equal payments of $10 million each on December 31, 1989, 1991 and 1993. A t Hawkeye’s option, pay ment of the first year’s interest can be paid by delivery of an additional note due on June 30, 1989. Addi tional future interest can be paid by delivery of Hawkeye shares at then market price, at Hawkeye’s option. If payment is not made on the prin cipal of the capital notes, the credi tors may elect to receive 25% of the common stock on a fully diluted basis at the time of the first due date, 1989, and an additional 15% at each of the second and third pay ments in 1991 and 1993.” Total assets of Hawkeye Bancorporation at 1985 year-end, as re ported in the N o r t h w e s t e r n B a n k e r ’ s 1986 Iowa Bank Direc tory, were $1,820,532,000. At the end of May, those assets were ap proximately $1.65 billion, with most of the decrease resulting from plan- Call on the “Experienced Professionals” Ready to meet your correspondent needs. ^FirsTierB ank Lincoln 13th & M Streets, Lincoln, Nebraska 68501 ________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Firslier Bank, N.A., Lincoln, Member FDIC Norwest Bank Des Moines, N.A. Call (515) 245-3131 or toll-free (800) 362-2514 NORWEST BANKS SS"SS Member FDIC Yearn work: one of the reasons we're first in Iowa. m & id Mark Conway Dorothea Wolfe ned shrinkage, as many banks have done. The 17 banks now up for sale had year-end book value of approxi mately $50 million, and total assets o f $556,986,000, according to figures in the Iowa Bank Directory, as furnished by the individual banks. As noted earlier by Mr. Dunlap, proceeds of the sale of the 17 banks, with book value of $50 million, would be applied to the debt out lined above. If all 17 banks are sold, those proceeds would retire the $22.5 million of installment notes and all or a major share of the $30 million in capital notes. The remain ing debt, based on such assumption, would be between $15 and $25 mil lion, with present creditors holding 2.6 million shares, or 25%, of Hawk- eye’s stock. That eventuality is not a foregone conclusion, however, since creditors would be accepting Hawkeye stock at $12.50 per share for $32.5 million of current debt. A t the present market value of Hawkeye stock at about $3.25 per share, the 2.6 million shares are valued at $8, 450,000, a difference of $24 million. Creditors have not yet commented on the latest Hawkeye proposal. Mr. Dunlap stated, “ We hope counsel will be able to work out the remaining issues quickly. We are very pleased with the agreements which we have reached so far, which will reduce debt and spread the re mainder over a term of ten years. The ‘new’ Hawkeye will have over $1 billion of assets with improved potential for earnings.” He concluded his statement by thanking Hawkeye employees, di rectors and customers for their understanding, patience and loyalty during these difficult times. “ The re ward of our hard work is a ‘new’ Hawkeye Bancorporation, a healthy company ready to return to the task of b u ild in g a b e tte r Iowa.” Hawkeye Assets to Be Sold ASK DENNIS 1 EARHART to make MNB work for you. Toll free 1-800-332-5991 Merchants National Bank Member F.D.I.C. Total Capital (000s) $18,961 1,452 11,790 990 30,889 2,834 71,442 5,671 15,996 1,443 29,232 2,088 65,641 5,010 21,620 1,403 18,623 1,716 23,042 1,767 25,285 2,431 22,340 3,146 61,237 6,115 63,089 4,628 17,597 1,451 23,592 1,723 36,610 2,518 $556,792 $46,386 Nonbank Activities: Hawkeye Bancorporation Mortgage Company Hawkeye Information Systems, Inc. Hawkeye Insurance Services, Inc. Hawkeye Farm Management Hawkeye Credit Card Center Iowa Higher Education Loan Program Iowa News DES MOINES: First Interstate of Iowa, Inc. and two of its subsidi aries, First Interstate Bank of Des Moines, N.A. and First Interstate Building Corporation of Iowa, have entered into an agreement to sell the First Interstate Bank Building and retail/office parking structure, Locust at Sixth Avenue, to Graham Investment Co. The sales price has not been disclosed. It is expected the closing will take place on or before September 30, 1986. DUBUQUE: Key City Bank and Trust Company has announced the appointment of John V. Walsh as vice president-lending. He was a real There Is A Difference In Banks... For Professional Correspondent Service Call 1-800-622-7262 H. PETER De ROSIER Vice President ISI A BANKS OF IOWA BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State Bank of Allison Allison Hawkeye Bank & Trust Camanche Hawkeye Bank & Trust Chariton Total Assets (000s) First National Bank Clinton Hawkeye Bank & Trust Eldora Hawkeye Bank & Trust Grundy Center Hawkeye Bank & Trust Humboldt Hawkeye State Bank Iowa City Lake City State Bank Lake City Hawkeye Bank & Trust Lake Mills First National Bank Lenox Hawkeye Bank & Trust Mason City Hawkeye Bank & Trust Maquoketa Houghton State Bank Red Oak First National Bank Sibley Hawkeye Bank & Trust Sioux City Waukon State Bank Waukon Valley National Bank ill Main Office-Sixth and Walnut D ES M OINES, IOWA 50304 A BANKS O F IOWA BANK Member FDIC . • Bond portfolios working at full power. The performance of your bank’s bond portfolio is based on sound thinking and quality investments. Investments that will consistently work at full power to contribute to the earnings of your bank. Bond portfolio recommendations have been our specialty since the 1920s, and our track record is enviable. Although investment vehicles and markets have changed, we’ve maintained our high standards. The result is success for our customers and a reputation that precedes us. For confidential consultation about the benefits of investment banking at United Missouri, call (816) 556-7200 today. UNITED MISSOURI BANK of Kansas City, n.a. M em ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P.O. Box 226 Kansas City, Missouri 64141 Supplement to Northwestern Banker Newsletter 6-30-86 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ATTENTION IOWA BANKERS PROBLEMS WITH YOUR BLANKET BOND? ARE YOUR UNDERWRITERS DEMANDS EXCESSIVE? We have been able to solve many bonding problems for bankers at the lowest possible premium. Call or Write THE KANSAS BANKERS SURETY COMPANY 435 K a n sa s A ve n u e P.O. B ox 1654 T o p e ka , K a n sa s 66601 1- 913- 234-2631 Serving bankers for more than 75 years https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Supplement to Northwestern Banker Newsletter 6-30-86 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 Serving bankers quietly and efficiently. CAPITAL PERSONNEL SERVICE 714 First Interstate Bank Building Des Moines, Iowa 50309 515-283-2545 estate lending officer at a Dubuque financial institution since 1967. Inquire about FLECO-PAY« a com puterized billing/credit system generates additional incom e from present staff and equipment means o f increasing your local commercial business CALL: 1-800-772-2411 WRITE: L eR oy Bell The National Bank o f W&terloo R O . B ox 90, Vfeterloo, IA 50704 plan developed by bankers for bankers WEST DES MOINES: Nick R. Clark has been elected as vice presi dent and manager of First Inter state Bank’s West Des Moines of Minnesota News North Dakota News fice. Before joining the bank he MINNEAPOLIS: Purchase agree FARGO: Dan M. Carey has been served as vice president o f Memorial ments have been signed for the sale named executive vice president of Bank, N.A. in Oklahoma City, Okla. lending at Dakota Bank & Trust Co. of four First Bank locations: Blue He joined the bank in 1976, serving Earth and Waseca, Minn, and HighNebraska News more and Miller, S.D. The sales are HASTINGS: Richard L. Harms has most recently as vice president. pending regulatory approval. First been promoted to vice president/ GRAND FORKS: The board of Bank Blue Earth had year-end as agricultural banking at Norwest First National Corporation recently sets of $33.5 million. First Bank Bank Nebraska, N.A. Mr. Harms declared a cash dividend of 15 cents Waseca had assets of $42.3 million. joined Norwest Bank at Omaha in per share. The dividend will be paid First Bank Highmore had year-end 1985 and was promoted to vice pres to all shareholders of record as of Ju assets of $27.4 million, and the Mil ident of special loan administration ly 1, 1986 and will be payable July ler office of First Bank of South later that year. He will assume his 22, 1986. Dakota had year-end assets of $41.1 new duties at Hastings on July 1. million. Specific purchase terms South Dakota News PALMER: Kirk R. Riley has been have not been disclosed. named the new executive vice presi GREGORY: Joe Duling has joined dent of the State Bank of Palmer. the Gregory branch of First Fidelity ST. PAUL: Robert C. Beck has He was previously with The Farm Bank as vice president and man joined Midway National Bank as ers National Bank at Central City as ager. He was a loan officer at vice president operations. Prior to another South Dakota bank. He re joining the bank, he was vice presi vice president. places Wayne Pauli who has joined dent and cashier at Independent High Plains Bank of Elizabeth, N.A. State Bank of Minnesota. Wisconsin News in Colorado. Illinois News MILWAUKEE: William M. Cun ningham and James H. Haberstroh RAPID CITY: Four officers have CHICAGO: Continental Illinois have been prom oted to vice been elected to vice presidents at Corporation has announced that presidents of First Wisconsin Trust First Bank of South Dakota. Ronald Bruce M. Brenn has been named se Company. Mr. Cunningham joined Evenson comes to First Bank from nior vice president in the interna the organization in 1985 and most First Interstate Bank in Great tional banking department. He recently served as assistant vice Falls, Mont., where he served as vice joined the organization on June 1 as president. Mr. Haberstroh most re president. Rollie R. Hill joined the head of the Asia/Pacific group. cently served as assistant vice presi bank last year as assistant vice dent, joining the trust company in president and credit specialist. ROCKFORD: Kenneth E. Edge has Barry Martin, who has been with been named executive vice president 1977. the bank since 1980, most recently of AMCORE Bank Colonial, effec- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WANT ADS—Rates are $5.00 per line per insertion. Add $3.00 for file letters per insertion. Identity of file letter advertisers cannot be revealed. NORTHWESTERN BANKER, 1535 Linden Suite 201, Dee Molnee, Iowa 50309. Phone 515-244-3163 FOR SALE RECONDITIONED BRANDT Coin Sorters-Counters BRANDT Currency Counters New Warranty 402-571-5577 BANK PRESIDENTS Positions now available in Iowa and Minnesota in banks w ith deposits in $30 m illion range. Salary to $45,000. M A N A G E M E N T , Positions now available in three choice locations in Upper Midwest. Require minimum of 3 years experience and col lege degree. Salary to range from $35,000 to $60,000. • Profit Planning Multi-bank group seeks qualified real estate lender. A bility to package for sale to secondary market a plus. Salary Open depending on experience. 773 Spruce Street P.O. Box 159 Ocheyedan, Iowa 51354 Phone: [712] 758-3660 POSITION AVAILABLE EXECUTIVE VICE PRESIDENT Progressive large bank dedicated to professional commercial lending techniques. Average length of service is over 15 years per employee. Salary is open depending upon experience. Send resume to File No. WFY c/o Northwestern Banker. BANK PRESIDENT—$20MM Bank seeks CEO. Commer cial and agriculture lending experience required. Excellent opportunity for salary and benefits including investment in bank if desired. Send salary requirements and resume to Gene Eaton, 1712 Firstier Bank Bldg., Lincoln, NE 68501._________________________________ (PA) PRESIDENT—for $60 M south central W isconsin bank. Very profitable, expanding bank. Successful candidate w ill have strong background in farm credit. Good manage ment skills and enjoy living in small conservative commu nity. Salary $45-$50,000 + heavy incentive package. Send resume to File No. WFV c/o Northwestern Banker. (PA) AG LENDER #2 position. 2-5 years ag credit experience with real estate lending experience a + . Send resume and salary requirements to: Galen Reading, V.P./Ag Rep., C/O First Nat’l Bank o f Mapleton, (Box 306), Mapleton, MN 56065. (PA) cdfoC dsx a n d c ^ n o a i a t z i . Bank Consultants Specializing in Bank Acquisitions 515-232-0814 P.O. Box 450 405 Main Ames, Iowa 50010 D o n a l d E . H o l d e r , Principal FINANCIAL BUILDINGS Temporary/permanent, new/used, purchase/lease, available now 14’ x 60’, 24’ x 60’, 24’ x 70’, fully equipped w ith vaults, depositories, DUW, teller equip., pneumatics, safe deposit boxes. Call 316263-4557. SON CORPORATION, Box 684, W ichita, KS 67201. POSITIONS AVAILABLE SENIOR AG Aggressive, hard charging bk w/soiid support sta ff seeks future leadership. 5-6 yrs exp w ill work at taking charge of $20m + ag portfolio w/eventual goal of CEO in 2-5 yrs. This grooming spot has supplied hold co w/2 of 3 key leaders. $30K + . COMMERCIAL LENDER 3 + yrs com’l lending exp can pay o ff BIG. Well recognized finl institution seeks indiv w/$8-10m comm’l portfolio exp who feels they deserve a better future. Upper 30’sSUPER BONUS. OPERATIONS/CASHIER Rural bk of $20m seeks oper person to train for pres for next 3 yrs. Finl reporting skills, knowledge of teller func tions & enjoymt of rural environments are musts. $25K. FOR FURTHER INFORMATION CONTACT: KURT ROSENCRANTS 317 6th Ave, Ste. 650 Des Moines, IA 50309 (515) 244-4414 WORLD’S LARGEST BANKING, ACCTG & EDP SPECIALISTS ALL FEES COMPANY PAID COMMERCIAL LENDERS INC. Consultant to Bankers • Loan Review and Credit Administration REAL ESTATE LENDER TRUST OFFICERS Positions now available in tw o major banks in Nebraska and Iowa. Law Degree preferred. Experience in personal trust and/or employee benefits a plus. Salary range to $35,000. Freeland Financial Service WANT TO BUY 1010 Equitable Bldg. Des Moines, IA 50309 515/282-6462 WANT to move into com m unity in northern half of Iowa to purchase control and manage good com m unity bank. Have 20 years successful farm ing experience and five years as successful CEO/owner of com m unity bank in midwest. Would consider #2 position w ith option to pur chase. W rite File WGA c/o Northwestern Banker. (WTB) Please contact Malcolm Freeland concerning these quali ty applicants or for other types of banking officers. Employer pays fee. COMMERCIAL LENDER Splendid opportunity w ith lead bank in a highly re garded, financially sound Iowa m ulti-bank net work. Growth position for talented person with credentials, and minimum 3 yrs. exp. & 1 yr. formal credit training. For confidential consideration, contact T.W. Textor. No fees: We are retained by management. PERSONNEL INCORPORATED 2626 RUAN CENTER DES MOINES, IA 50309 BANKING FOR SALE TEXAS INSTRUMENT COMPUTER MODEL NO. 990 com plete w ith a terminal and tw o printers. Make offer (712) 523-2171. (FS) USED 2400 BAWD MODEM—make an offer. Contact First Community Bank & Trust, Traer, IA. (319) 478-8746. (FS) BURROUGHS 1000 posting machine and auto reader has been under maintenance contract. Price is negotiable. Call (319) 372-1134____________ (FS) POSITIONS AVAILABLE VP/MGR COMMERCIAL LENDING Play a vital role w ith a dom inant TC Bank! Expanding TC Bank desires commercial loan mgr w ith 5 + yrs com ’l lend ing exp, strong analytical abilities and a bility to develop new business. This high profile position is a great opportu nity! To $49,000. Job #NW8670. AGRICULTURAL LENDER ■ SR. VICE PRESIDENT. Oversee all lending and § |§ supervise ten lending officers. Portfolio is prim arily B commercial/real estate; background In either area. . p I ........ ................To $50,000 ......................... Call Bruce I ■ TRUST DEPARTMENT HEAD. Holding company i |J bank is $270 + mm located in a historic setting. 5 + | I years general tru st and good s ta ff development I ■ skills....................... To $55,000 ..................... Call Marj I ■ COMMERCIAL LOAN OFFICER. Rapid movement to if r* #2 possible. M ainstreet commercial business along 3 ¡1 w ith participations and real estate. Benefits, p rofit I « s h a rin g .................. Mid $30’s ................... Call Dean | E V.PJAG DEPT. MGR. Responsible for ag portfolio at | I this $50 + mm bank. Progressive, county-seat town jf 1 w ith good growth in last decade................High $20’s 1 I ....................................................................... Call Bruce I ■ C.L.OJV.P. If you can handle a $20mm commercial f| B portfolio and have 5 + years in commercial, th is fj É $500 + mm holding company bank offers tremen- I B dous upward m obility quickly! Bank is located in re -1 ■ cession proof, progressive com m unity . .To $50,000 | I VICE PRESIDENT. If you are CEO material and th is jj If is your goal, this highly rated bank near metro city is i 8 for you! Knowledge of ag and small commercial . . . 1 .............................$30’s ............................. Call Dean I I CREDIT REVIEW MGR. Retirement of existing man- ■ j j ager opens this spot! Commercial, installm ent, and ‘ 8 real estate portfolio. Loan review background ........ P I .............................$40’s ............................. Call Bruce ■ CORPORATE TRUST OFFICER. $370mm lead bank j| 9 for viable holding co. Experienced employee beneI fits person w ith business development skills, salary 1 j j plus in c e n tiv e ............ To $47,000 ............. Call Marj 1 j j SR. VICE PRESIDENT. Take charge of loan dept., ¡1 50% ag. Supervise five loan officers. Experienced ^ ■ lender .................... $40,000 ..................... Call Dean j§ (personnel Search 1126 So. 72nd St. Omaha, Ne. 68124 Tired of taking a back seat? Central MN com m unity bank offers a giant step forward as the #2 person. If you have 5 + yrs ag lending exp, a positive personality and a strong desire to succeed, call immediately on Job#NW8686. COMMERCIAL LENDER In no tim e you w ill be managing the department! Leading outstate MN bank desires com ’l lender w ith 3 + years lending exp, formal credit training, and degree. This bank is growing rapidly and is located in a super city! To M id$30’s. Job #NW8673. FOR MORE INFORMATION CONTACT PAUL GENTZKOW IIM I Hill (H I 3636 IDS Center Minneapolis, MN 55402 (612) 339-9001 ALL FEES COMPANY PAID POSITIONS AVAILABLE LOAN REVIEW - lead bank of major midwestern holding company. Requires degree and minimum of tw o yrs. loan review experience in large bank environment. $28K COMML. LOAN - $100M suburban a ffilia te of large m ulti bank holding company. Strong technical skills and 3 yrs. or more experience. $30K INSTL. LOAN - manage consumer department for $80MM suburban bank. Ideal candidate w ill have five yrs. instal. lending background including dealer paper. $30K CEO - small rural bank located close to recreational area. Work out situation. Ag credits not the problem. $38K AGRI LOAN - primary responsibility for all Ag credits in $25MM com m unity bank. Assist w ith commercial loans. $35K Additional opportunities available. Resume requested. TOM HAGAN & ASSOCIATES 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 _______ “ Serving the Banking Industry Since 1970” Vol. 15 No. 11 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 Moines, Iowa. Address all mall subscriptions, changes of address (Form 3579), manuscripts, mail items to above address. Digitized forDes FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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