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Vol. 10 No. 3 Des Moines, Iowa Many Area Banks Below 19% Prime £ 0 # # • • IN AN unexpected, perverse I fashion, the money supply shot up 13.7% in three months, with the inevitable result—The Federal Re serve Board raised the discount rate to 14 % , plus a 5 % surcharge to major borrowers, and major banks raised their prime lending rate on May 4 to 19 % . The upward direction was opposite to trends of recent weeks, when some pundits had been looking for it to drop as low as 14% by mid-year. The Fed discount rate had been at 13% since last December 5. That all-time high rate was hit in February, 1980, then fell back until hitting 13% again in December. The Fed Board voted 7-0 for the 14% discount rate, acting at the request of 11 of the 12 Reserve Bank presidents. Chicago was the sole holdout. The 5% surcharge applies basically to banks of $500 million deposits and above. The discount rate was 5.25% in August, 1977. A survey by the N orthwestern B anker of cities and smaller communities showed that in cities ® such as Des Moines, Chicago, Denver, Minneapolis-St. Paul, Kan sas City and St. Louis, the prime moved May 4 to 19% following the level set earlier in the day by New May 11,1981 Colorado: Richard Chenoweth, executive vice president, Platte Valley Bank, Brighton. Denver prime of 19% to 2 points above on commercial; 19% generally to V2 point lower on ag loans. Wyoming: Harold R. Hand, president, American National Bank, Powell. Denver prime of 19% to 2 above on commercial loans. A g loans at 17% in bank’s A g Loan Corporation, but may have to move up. Nebraska: Jerry Roe, president, Bank of Bennington, and president, Nebraska Bankers Association. Raised to 16% % - 17%. Mostly ag loans. Heavy competition from area PC As and banks at reduced rates. Heavy competition for funds continued with Money Market Mutual Funds continuing to drain deposit funds out of banks and savings and loans, while both of the latter groups remain handcuffed by regulations administered by a lethargic and apparently disinter ested Depository Institutions Dereg ulation Committee that follows the Fed lead in refusing to authorize them to compete for their own funds. □ York banks. In community banks, the prime rate lags 1 to VA points behind that figure in most places. The banks of the state bank association presidents in each of the nine primary states covered by the N orthwestern B anker were con tacted, with these results: Illinois: H.E. Gladfelter, presi dent, National Bank of Monmouth. Rate is now 17 to 17 VS % . Iowa: Edward L. Tubbs, presi dent, Maquoketa State Bank, and president, Iowa Bankers Associa tion. Rate moved to 17% May 4. First National Bank, Marion (Banco bank). Moved to YIV2 % . Minnesota: R.E. Gandrud, presi dent, Pope County State Bank, and president, Minnesota Bankers A sso ciation. Moved to 17*4 % . South Dakota: John W . Thomson, president, Bank of Centerville, and president, South Dakota Bankers Association. Rate floats at three points above Money Market Certifi cate rate (15.38 on May 5). North Dakota: W .N. Forgey, president, First State Bank of Cando. To 17x/2 % for commercial and ag Midwest Associations loans, adjusted monthly. Montana: Don Wallander, vice Plan June Meeting president and cashier, First State Tentative plans have been made for Bank of Froid. From 17% to 18% on a meeting in Minneapolis in the first May 5, and may be adjusted further. week of June for 11 state banker Don't gam ble when choosing a correspondent bonk. Com e to the professionals. For an y correspondent bonking n e e d . . . overline assistance, d a ta processing services, investm ent counseling . . . just g ive us a call. W e're the professionals w h o p ut the response in correspondent banking. CENTRAL Eddie A. W olf, Sr. Vice President OF DES MOINES, IM.A. • MEMBER FDIC • TOLL FREE NUMBER (800) 362-1615 AFFILIATED W ITH UNITED CENTRAL BANCSHARES, INC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ir s t in Iowa, by putting Iowa first. Lance Davenport IOWA-. nesMpines M m NATIONAL BANK An Affiliate o f Northwest B an corporation M em ber f d ic associations who have been meeting informally to pursue projects of common interest and benefit. The states involved are Illinois, Iowa, Kansas, Michigan, Minnesota, Mis souri, North Dakota, Oklahoma, South Dakota, Texas and Wisconsin. Iowa Mews Banco Call (515) 245-3131 or toll-free (800) 362-2514 available until July 1,1983. Banks in cities under 100,000 could now have three offices, those in cities between 100,000 and200,000 would have four, and in cities above 200,000 banks could have five offices. DES MOINES: Paul P. Gergen has resigned as president and chief executive officer at University Bank & Trust Company in Ames to become executive vice president and chief operating officer of American Federal Savings & Loan Association here. He will supervise restructuring of the banking division and oversee the finance, loan and business division. to make MNB work for you. Toll free 1- 800 - 332-5991 Merchants A National Bank 151 Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA BANK MARION: Larry D. Eilers has joined the First National Bank as vice president-marketing. He was former ly associated with Banks of Iowa Computer Services, Inc. PARKERSBURG: Controlling in terest in Parkersburg State Bank has been purchased by Rollie K. Sverdahl, president of Peoples Bank GEDAR RAPIDS: Joseph F. & Trust Co., Waterloo, and his Phemetton has resigned as president associates. of Banks of Iowa Computer Services, SEYMOUR: Jean Elliott Hall has Inc., to accept appointment as senior been elected director and president of vice president at First National Bank Seymour State Bank. Ms. Hall is a of Denver, Colo. Mr. Phernetton, 43, sister of John C. Elliott, past will manage First of Denver’s data president and director who died in services. March. Robert G. Alexander, exec, vice president, will remain chief exec, DES MOINES: James I. Mackay officer in charge of operations. Carl has resigned as senior vice president G. Riggs has resigned his position as for loan policy and administration at chairman. Succeeding him will be United Centred Bancshares, Inc., to long-time director R.F. Malmberg. join R.G. Dickinson & Co. invest The Omnibus Banking Bill (S.F. 300), which clarifies a number of existing statutes anci phrases in banking law, was passed by the Iowa House 97-0 on April 26 after being amended to authorize an additional detached office for each Iowa bank. It went'back to the Senate, which is to consider the House changes in the Senate-passed version. The House tacked on a two-year delay, so the office authority would not be ment firm here at the end of May as vice president in charge of corporate finance. ASK DALE FROEHLICH DEW ITT: A t DeWitt Bank & Trust Co., Roger Hill has been named vice president and trust officer and Gene Frey has been named vice president. Mr. Hill was most recently vice president and trust officer at Clinton National Bank. Mr. Frey has been exec, vice president and c.e.o. at First Trust & Savings Bank of Wheatland. DES MOINES: Peat, Marwick, Mitchell & C o.’s local office will sponsor its Fourth Annual Bank Seminar May 27 at the Marriott Hotel here, starting at 9:30 a.m. and concluding at 4:15 p.m. There is no charge for attending the program for executive and financial bank mana gers to help them stay abreast of current and future developments which will affect financial planning for their bank or holding company and their banking customers. Topics to be covered include interest rate futures, diagnostic employe benefit reviews, strategies for bank invest ment, tax planning, marketing techniques and a presentation relative to assisting the banker’s business customer. W EBSTER CITY: Norman D. Skadburg has been elected president at First State Bank here to succeed Jack Marget, who has resigned that position. Mr. Skadburg is moving to Webster City from Grinnell, where he has been vice president of Poweshiek County National Bank. Mr. Marget has not yet announced his future plans. Nebraska News LB 376, the multi-bank holding company bill, is listed as item 11 on a priority list of 12 bills to be considered by the legislature before adjournment. The first level of debate "Opportunity Knocks..." Supplement to Northwestern Banker Newsletter 5-11-81 Carleton D. Beh Co. Investment Bankers/Financial Consultants NEW ISSUE SALE DATE: May 6,1981 $26,000,000 AMES, IOWA MOODY’S: MIG 2 Denomination: $25,000 Electric Revenue Pledge Orders, Series 1981 Dated: May 1,1981 Both principal and semiannual interest (June 1 and December 1, first coupon due on December 1,1981) payable at the office of the City Treasurer, Ames, Iowa. IN THE OPINION OF COUNSEL INTEREST ON THESE PLEDGE ORDERS IS EXEMPT FROM ALL PRESENT FEDERAL INCOME TAXATION AND ALL PROPERTY TAX ATI ON IN THE STATE OF IOWA. MATURITY $26,000,000 10.20% June 1,1983* to yield 9.50 *Optional in inverse order of their numbering beginning June 1, 1982 at 100.50%. LEGALITY TO BE APPROVED BY BELIN, HARRIS, HELMICK& HEARTNEY, ATTORNEYS, DES MOINES, IOWA The C ity of Ames is located in Central Iowa, approxim ately th irty-tw o miles north of the City of Des Moines, the State Capital. Incorporated in 1869, the City has experienced steady growth and has become the principal city in Story County. The C ity occupies an area of approxim ately 20 square m iles and has a population estimated by the City to be 45,820. W hile the City is adjacent to and is w ithin the econom ic influence o f the Des M oines/ Polk C ounty Standard M etropolitan Statistical Area, it m aintains a unique cultural and economic identity in the Central Iowa region. Iowa State University, w ith an anticipated Spring 1981 enrollm ent of 22,301 and a staff of over 7,000, is an integral and major part of the com m unity. M ajor industry provides a considerable proportion of local employment and contributes significantly to the economic vita lity of the C ity. Ames also serves as a retail center, w ith a regional shopping center com plem enting retail and service establishm ents. The Ames M unicipal Electric Light and Power Plant and System was established pursuant to an election in 1896. Since that tim e the system has been periodically updated w ithin the area of generating capacity and d istribution fa cilitie s. The System now serves the entire City, as well as certain installations of Iowa State University, either by direct service or by wheeling power generated by the Iowa State University generating facilitie s, which system is interconnected w ith that of the City. The present service boundary of the Ames Electric U tility covers an area of approxim ately 19 square m iles and includes approxim ately 12,300 residential custom ers, 1,400 comm ercial custom ers, and 170 industrial custom ers. These Pledge Orders are being issued pursuant to the provisions of Chapter 384, Code of Iowa, 1981, as amended, to refinance $26,000,000 Electric Revenue Pledge Orders, Series 1980, to provide a portion of the funds necessary to construct improvements to the Municipal Electric Light and Power Plant and System. In the opinion of counsel, these Pledge Orders are subject to the firs t lien of the follow ing bond issues: Electric Revenue Bonds, Series 1978,1971 and 1967, and together w ith said issues are payable solely and only from the future net revenues of the M unicipal Electric Light and Power Plant and System of the City. EARNINGS STATEMENT Year Ended December 31 Total revenues Total expenses Net Revenues 1978 $10,991,919 7,771,056 $ 3,220,863 1979 $13,002,184 8,604,525 $ 4,397,659 1980 $16,247,954 8,715,407 $ 7,532,547 We own and offer subject to prior sale and change in price and subject to our attorney’s approving opinion: The information contained herein is not guaranteed, but is derived from sources we deem reliableand is that on which our purchase of these bonds are based. Bonds of a particular maturity may or may not still be available or may now be available at a price or yield different from that indicated above. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des M o in e s B u ild in g • Des M oines, Iowa 50309 • 515-288-2152 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 CALL ON THE “PERFORM ANCE TEAM ” where com m on transactions are handled uncomm only well. FIRST N A TIO N A L LI NCOLN 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. on the bill was scheduled for today, May 11. The Independent Bankers Association of Nebraska and First National Bank of Omaha sponsored a full page advertisement opposing it. The Nebraska Bankers Association membership has voted to oppose MBHC legislation in any form at this time, but favors one section of LB 376 which would authorize two full service facilities for each bank. A committee amendment has increased that to three facilities. This puts the NBA in a position of opposing one section of the bill and supporting the other. County banks (Chicago) out of adjoining DuPage County. If adop ted, AM BI would have to accept the restriction or be against the bill. CHICAGO: W. Kent Velde, banking officer at Continental Bank who has been calling on Iowa banks the past several years, is moving to Continen tal’s loan production office in Los Angeles. North Dakota News MINNEW AUKAN: Mason A. Hei berg, president of Farmers State Bank, resigned recently. Mr. Heiberg joined the bank in 1950, became NORTH PLATTE: J.W . McDer- president in 1960 and board chairman mand has been named president and in 1980. His successor has not yet chief executive officer of McDonald been named. State Bank. Mr. McDermand joined Minnesota News the bank in 1954, and was most recently vice president and cashier. The Minnesota Bankers Associa Also promoted were Donald R. tion’s Operations Workshop will be Weber to vice president and cashier held May 13-14 at the RadiSson and Ken V. Haggard to vice Arrowwood in Alexandria. More than president. Elected chairman and vice 250 are expected to attend the chairman were Dale and Greg Stine, sessions on pricing bank services, who recently bought the bank’s data processing, internal audit, Fed stock. Retiring are J.Y. Castle, pricing, effective communications, former chairman, and George W. productivity through training and Taylor, former president. marketing. The Wednesday program concludes with a reception and Illinois News dinner. S.B. 375, the multi-bank holding BENSON: Dave Landgrebe has been company bill, was defeated 6-3 in the elected vice president of the First Senate Finance and Credit Regula State Bank, President Vern Smith tion Committee last week, with two has announced. Mr. Landgrebe abstaining, and is dead in the Senate joined First Bank System in 1974. since a motion to discharge was not filed. H.B. 666, a companion MBHC FARIBAU LT: Faribault National bill, was in its second reading in the Bank elected voluntary liquidation House last week. It has an and was sold to First National Bank amendment that would prohibit a of Hastings at 1:30 p.m. May 1, just holding company from expanding before the FDIC had planned to take into a contiguous region. This over the bank at 3 p.m. The apparently is aimed at keeping Cook assumption of Faribault National’s deposit liabilities and purchasing the assets was completed within 48 hours after Minnesota Gov. Albert Quie signed the new law April 29 permitting a state or national bank to purchase a problem bank in an emergency situation. First National of Hastings, 40 miles away, is owned by Frank Farrar and has $28 million deposits; Faribault National had deposits of about $3 million. Holder and Associates of Ames, la., assisted in the acquisition. Montana News MILES CITY: Daniel K. Sullivan has been elected vice presidentoperations at First Bank Miles City, according to R.L. Reiquam, presi dent and chairman. Mr. Sullivan was previously assistant vice president. Wyoming News CHUGWATER: Tracy Swanson, president of First National Bank, resigned recently to accept a position with a Cody firm. Replacing Mr. Swanson is Thomas Reed, previously with Fort Lupton State Bank in Colorado. LIVINGSTON: Donn J. Ross has been named vice president of the Northeastern Wyoming Bank Cor poration. Mr. Ross was previously senior vice president of the First State Bank of Newcastle. I □ I would like to sell my majority bank stock. □ I would like to buy ma jority bank stock. ■ Please Contact: J. Mason Henry Charles E. Walters Co., Inc. 39GingerWoods Road, Valley, Nebraska68064 Phone: (402)553-6400 Call our Bond Department For up-to-the-m inute, accurate inform ation Tom Steffens V ice P re side n t 234-2462 John Henderson V ic e P re sid e n t 234-2463 Tony Paugoulatos Jim McLaughlin Rusty Reese A s s t.V ic e P re s id e n t A sst.V ice P re sid e n t B on d O ffic e r 234-2647 234-2673 234-2674 C o m m er c e BANK o f Kansas City https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M e m b e r FDIC 7 10th and Walnut Dave W ittenborn B o n d R e p re se n ta tive 234-2691 (816) 234-2000 PARTIAL LIST OF AVAILABLE POSITIONS AG LENDER - 5 years in rural banking environment. Has developed an active call program that has significantly increased loans and deposits. $23,000. CASHIER - Strong number 2 man. Has diverse experience in lending and operations fo r strongly agricultural bank. Also has experience with in house computer. $32,000. EXEC V.P. - Coordinates all commercial, ag, real estate and installment loans for medium sized bank. Prior experience included operations officer for major bank. $30,000. 'OPERATIONS - BS accounting, 2 years in operations of moderate bank. Experience includes data processing and accounting. $14,000. COMMERCIAL LENDER - V.P. with major Iowa bank. Has extensive background in commercial loans up to mid 6 figures. Excellent Image and communication skills. $27,000. LENDER-Has 1 year exposure to Ag, Installment and Real Estate loans. Also licensed in general and personal lines of insurance. $15,000. PERMANENT OR TEMPORARY - Sale or lease financial facilities. Available immediately: 12’x40’ w /2 DUW’s in Nebraska, 14’x60’ in Missouri, 24’x60’ in Illinois, and 12’x50’ in Minnesota. SON CORPORA TION, Box 684, Wichita, KS, 67201, (316) 942-8167, call collect.____________________________(FSorLS) FOR SALE Burroughs L6000 posting machine. Excellent. Grafton State Bank, Grafton, NE68365. Phone (402) 282-7212. _________________________________________ (FS) 13 Burroughs Model No. 1010361 teller machines, 2 Model No. 1010381 teller machines, and 13 narrow carriage Burroughs Adding Machines (serial numbers P3003905-P6063215). Contact Diane Hanna at First National Bank, Fort Dodge, Iowa 50501. Phone (515) 576-6811._________________________________ (FS) Ten Burroughs Series “P” teller machines. Phone Valley Nat’IB k., H illcrestBr., (605)334-1392. (FS) 2 Diebold Model No. 6600 rotary check files and trays. $375 each. Contact Diane Hanna at First National Bank, Fort Dodge, Iowa50501 (515) 576-6811. (FS) $11 million high perf. bank. 97% bank stock; 100% holding co. 100% Ins. Agcy. Priced at 1.85 book or 8.08 x earnings. S.E. MN. Principals only. Write File No. NBF, c /o Northwestern Banker.___________ (FS) SERVING PROFESSIONALLY Banking,Financial & Business Personnel Iowa and Nationwide CAPITAL PERSONNEL SERVICE 714 Central National Bldg. 515-283-2545 Des Moines, Iowa 50309 I Ag Rep with two or three years experience wanted by eastern Iowa b a n k ....................................... $20,000 up NumberTwo Person,strong in ag lending for Western Nebraska b a n k ................................................. $26,000 Marketing Person for major N.E. Iowa b a n k .. .$25,000 Ag Loan officer for Indiana bank. Fine opportunity .......................................................................$23,000 up Write or phone Malcolm Freeland, Freeland Financial Service, Inc., 306 - 15th Street, Des Moines, Iowa 50309. Phone (515) 244-8163. Employer pays fee. POSITION WANTED POSITIONS W ANTED • □ I want to purchase majority stock in a bank. Please contact Ellis Jones, Broker I ■ | JONES REALTY 205 South Eaton St. Lakewood, Colorado 80226 Phone: (303) 232-1189 UPDATE YOUR ALARMS Special on 35mm auto cameras. Office Manager with well rounded operations experience seeks new opportunity in Iowa___$23,000 SECURITY SYSTEMS, INC. Operations Officer with solid experience seeks new o p p o rtu n ity.......................................................$24,000 If your bank needs a qualified officer, we have many more applicants in a wide range of experience. Call: Malcolm Freeland, Freeland Financial Service, Inc., 306 - 15th Street, Des Moines, Iowa 50309. Phone (515) 244-8163. Employer pays fee.______________ Ag Banking Specialists5^ When it comet to agriculture, banking and personnel. . . go to the specialists — go to AGRIcareers, Inc. Thinking about selling your bank? Progressive bankers pay us to find the people they need. I AG LOAN O FFICER/INS. M G R ........ IA .$15-20,000 2ND MAN IN SMALL B A N K .................NE. $15-22,000 } ASST. V .P ./BR AN CH M G T .................IA .$16-22,500 INSURANCE M ANAG ER.....................NE. $16-19,000 SALES & MKTG. REP.-FINANCE___ >gY .$20-25,000 | COMMERCIAL LENDING O FFICER.. IA $15-16,000 Dick Buenneke Over 50 years’ banking experience No fee to seller 241 Insurance Exchange Bldg. Des Moines, Iowa50309 Phone: 515-243-7434 | □ My majority bank stock is for sale. Check w ith us firs t BEFORE making a purchase. Des Moines. Iowa 50312 or ALL FEES COMPANY PAID Commercial Loan Officers with 3 to 20 years experience seek new opportun ¡tie s ........... $20,000 up CEO of com munity bank wants greater challenge. W ill consider number one or tw o p o s itio n ............. $30,000 R. L. “DICK” SELLON Consult with of Iowa, Inc. 317 6th Ave. Des Moines, IA 50309 (515) 244-4414 POSITIONS AVAILABLE I LeasePlan.Inc. Homer Jensen Bank Division ROBERT HALF Commercial Loan officer for major Central Illinois b a n k ...................................................................$24,000 BANKERS PARTICIPATING 545 - 31st Street ALL FEES COMPANY PAID. FOR FURTHER INFORMATION RESPOND IN CONFIDENCETO: OFFICE MANAGER: Iowa City area. Three to five years operations and lending experience. Should be marketing oriented. All inquiries kept confidential. Send resume and salary requirements to John W. Brown, Exec. Vice Pres., unIBank & Trust, P.O. Box 5842, Coralvilie, IA52241. (PA) Ask our banking specialist, Linda, what's available without cost or obligation. (515) 394-3145 > NEW HAMPTON, IA 50659 Bqn CARERS, INC. I THE ORIGINAL AGRICULTURAL RECRUITER QQOn n A iflu is r p Des Moines, IA 50316 [515)265-1161 POSITIONS AVAILABLE AGRI-LOAN - addition to staff of $25MM rural Iowa bank. Prefer 2-4 yrs. experience. Additional lending duties involved................................................... $22,000 INSTALMENT LOAN - excellent opportunity for junior officer in $50MM Wyoming bank; 3-5 yrs. consumer loan experience desired..................................... $20,000 BRANCH MANAGER - must have lending experience. Facility is located in semi-suburban area close to a major midwestern c ity .......................................$17,000 SECOND OFFICER - small city bank desires a lending officer to handle instalment and real estate credits. Some commercial.............................................. $25,000 EXEC. VICE PRES. - solid commercial lending experience desired. Bank is located in growing suburban area. Degree preferred....................... $30,000 COMMERCIAL LOAN - experienced commercial lender with exceptional business development skills. $40MM affiliate of major midwest holding company. Room for advancement...................................... $30,000 AUDITOR - staff position with large midwestern holding company. Degree and 1-3 yrs. experience desired. 50% travel.............................................$20,000 Other fine opportunities available. To inquire forward resume’ and salary history to: TOM HAGAN & ASSOCIATES of Kansas City P.O. Box 12346, 2024 Swift North Kansas City, MO 64116 816/474-6874 SERVING THE BANKING INDUSTRY SINCE1970. Vol. 10 No. 3 Northwestern Banker Newsletter [USPS 873-300] is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. 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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