View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Vol. 15 No. 3

Des Moines, Iowa

“ B est Inflation News Y et to Come”
ORLD oil consumption is un­
likely to revive significantly in
the near term in > v g
resp o n se
lower oil prices,
according to Dr.
Sung Won Sohn,
senior vice presi­
dent and chief
econom ist for
Norwest Corpo­
W ritin g in DR. SUNG W ON SON
N o rw est's b i­
monthly publication, Economic In ­
dicators, Dr. Sohn pointed out that
much of the previous reduction in oil
consumption is permanent since it
resulted from investments in ener­
gy-efficient equipment, which will
remain in place. Consequently, he
added, the supply of oil largely de­
termines the future course of oil
Commenting on the effects of
lower oil prices, Dr. Sohn said: “The
best news on inflation is yet to come,
even if oil prices firm from current
He said the consumer price index
in the United States fell at a 4.6 per­
cent annual rate in February, “the
steepest monthly drop in more than
30 years, and the overall price level
should continue to fall during the
spring months of this year.”

Dr. Sohn cautioned that while the
overall impact of declining oil prices
on the U.S. and world economy is
clearly positive, sustained deflation
—the overall decline in the price level
—has some negative implications.
He explained: “Asset values, in­
cluding real estate commodities, and
other tangible assets, could fall. Not
everyone’s prices decline along with
the overall price index. Wages are
generally inflexible downward. For
companies whose costs are still ris­
ing, deflation makes price increases
for their products harder to stick,
squeezing profits.”
Additionally, he said, “deflation
could also cause government policy­
makers to loosen monetary and fis­
cal policies too much.”
Dr. Sohn noted that outside the
United States, the deflationary
trend is more pronounced. “The
combination of plummeting oil
prices and the depreciating dollar
are causing consumer prices to fall
in France, W est Germany and the
Netherlands. Across Europe, prices
are expected to fall or barely rise for
the rest of this year and well into
1987. Oil exporting nations, includ­
ing Canada, Britain and Norway,
will also benefit. Lower inflation and
increased non-oil exports outweigh
the negative effects of declining oil
revenues for these countries.”

May 5,1986

C.C. Hope to be Sworn in
As a New Director of FDIC
C.C. Hope, Jr., retired North
Carolina banker and president of the
American Bankers Association in
1979-80, will be sworn in as a direc­
tor of the Federal Deposit Insurance
Corporation during a May 8 recep­
tion in his honor at the FDIC build­
ing, hosted by FDIC Chairman
William Seidman.

Prime Drops After Fed
Reduces Discount Rate
Leading banks in the nation
dropped their prime rate from 9% to
8.5% on April 22, the lowest level for
the prime rate since June, 1978.
Their action followed a cut in the
discount rate by the Federal Re­
serve System from 7% down to 6.5%
following the close of business on
Friday, April 18. These were the lat­
est in an extended series of cuts that
are expected to help the economy
continue on the recovery course it
has pursued for the past four years.
Some economists believe prime will
drop to 8% without a further cut in
the discount rate, while others
foresee another cut in both the dis­
count rate and the prime rate.

Iowa News
The Senate Commerce Committee
on April 22 failed to act on SF 2290,

to make M N B w o rk for you.
Toll free: 1-800-332-5991

Merchants National Bank
Federal Reserve Bank of St. Louis

day Inn in Cedar Rapids. Thomas D.
Crandall, Esq. will present the semi­
nar. He is Professor of Law at the
University of Denver Law School.
Cost in advance is $105 for mem­
bers, $135 for subscribers, and $155
for nonmembers. A t the door, cost
will be $20 more.
* * #


a bill that would have enabled First sonal banking officer, Farmers and
Bank System, Inc., of Minneapolis Merchants Bank and Trust, P.O.
to complete its purchase of Banks of Box 928, Burlington, la. 52601.
Iowa, Inc., and that would have al­
# * *
lowed out-of-state purchase of a
failed Iowa bank or distressed Iowa
The Iowa Bankers Insurance &
multi-bank holding company, if Services, Inc. will sponsor its Credit
there was not a good faith, in-state Life & Disability Licensing School
on May 19 and 20, at Capital Plaza
Park Inn (formerly Holiday Inn) in
* * *
Des Moines. The fee is $45 for bank­
The National Association of ers and $55 for non-bankers, and in­
Banking Women’s state convention cludes a Licensing Information Bul­
will be held at the Holiday Inn in letin, study materials, two days of
Iowa City on May 14-16. This year’s instruction, lunch and refreshments
theme is Managing for Profit-The both days. To register, contact Jean­
Key to Power and will offer informa­ nette EUington, IBIS, 104 E . Locust
tive workshops, noted guest speak­ Street, Des Moines, IA 50308.
ers, a legislative panel, receptions,
and a banquet featuring as guest
* * *
speaker Ronald L. Willoughby,
The Iowa Bankers Association
author of “How to Laugh at Your
Neurosis.” The southeast Iowa will hold an Understanding Con­
chapter is hosting the convention. sumer Credit Regulation, seminar
Registration information can be ob­ May 13 at the Airport Hilton Inn in
tained through Lisa T. Walsh, per­ Des Moines, and May 14 at the Holi­

There Is A Difference
In Banks...
For Professional
Correspondent Service
Call 1-800-622-7262
Vice President

Valley National Bank $
Main Office-Sixth and Walnut


D E S M O IN E S , IO W A 50304


t's easier to talk Iowa banking
with people who live it — people
like Donald H. Jordahl and the cor­
respondent staff at Bankers Trust.
Call 1-800-362-1688 or 515/245-2424.

Bankers Trust
Member FDIC
Federal Reserve Bank of St. Louis

Des Moines, IA

Donald H. Jordahl
Vice President

Member F D IC

“Meet the Regulators,” a Comp­
troller of the Currency seminar sponsored by the Iowa Bankers Association, will be held May 15 at the Air­
port Hilton Inn in Des Moines,
Peter C. Kraft, district administra­
tor and members of his staff will present the program and answer partidpant’s questions. Advanced regis­
tration fee is $45 for members, $55
for subscribers and $65 for nonmem­
bers. Cost will be $10 extra at the
DES MOINES: Peat, Marwick, Mit­
chell & Co. will sponsor its Ninth
Annual Bank Seminar May 14 at the
M arriott Hotel starting at 12:00
noon and concluding at 5:30 p.m.
There is no charge for attendance.
Richard Krumme, editor of Success­
fu l Farming, will be luncheon
speaker. Topics to be covered inelude Tax Reform—Individual Pro­
visions; Form 1099-A and Discharge
of Indebtedness; Bidding on a
Failed Bank; Market for D&O and
B lanket Bond; Proposed T ax
Changes—Bank Provisions, and
Problem Loans and Lending Prac­
tices. Contact Janette Brown (515
288-7465) for registration informa­
DES MOINES: Robert De Meulenaere has been appointed senior vice
president/metro bank division at
Brenton Banks, Inc. He succeeds
Dean Duben, who has resumed full
time duties as president of Brenton
First National Bank of Davenport.
Mr. De Meulenaere was president of
Brenton Bank and Trust Company
of Cedar Rapids since 1982. He is
succeeded in that position by Doug­
las R. Hill, who formerly was execu­
tive vice president and trust officer/assisting managing officer at the
Brenton National Bank-Powashiek
County, Grinnell.
DES MOINES: Robert G. Millen
has been elected executive vice
president of First Interstate of
Iowa, Inc., and has been assigned
additional corporate duties for coor­
dinating the human resources and
marketing functions for all affiliates. He also has been appointed
chairman of First Interstate Bank of













Consultant To Bankers

Twenty years credit and collection
experience working for Bank of Amer­
ica, California; Production Credit Asso­
ciation, Newton, Iowa; Farmers Savings
Bank, Grundy Center, Iowa; and Kellogg-Sully Bank & Trust, Kellogg, Iowa.
President and C.E.O. of high perfor­
mance bank for 10 years.
C.R. (Chuck) Fritz


FmHA “ Guarantees & Buydowns”
Problem Loan Workouts
Analyzing Credit Files for Future Problems
Assistance with Loan Documentation
Assistance with Cash Flows
Flexible approach, based on the needs of the individual
bank being served

5 1 5 -5 2 6 -3 4 4 1
Box 87 • 302 First St. • Kellogg, Iowa 50135
Federal Reserve Bank of St. Louis

Supplement to Northwestern Banker Newsletter 5-5-86
Federal Reserve Bank of St. Louis

Iowa Bankers Visit Congressmen, Regulators in Washington
TOTAL of 66 persons, including 31 spouses, took
part in the Iowa Bankers Association’s 1986 visi­
tation to Washington, D.C., for conferences April 14,
15 and 16 with the Iowa Congressional delegation, fed­
eral regulators and other government staffers, and
ABA officials. In addition, three college and high
school students went on the trip. Photos taken during
the trip appear below and on the back of this page.
The first order of business early Monday was a half­
day briefing and lunch at ABA headquarters on the
current status of pertinent banking legislation. That
afternoon, the group had an interesting, candid ques­
tion and answer period with Fed Governor Wayne
Angell in the impressive Federal Reserve board room.





That was followed by a one-hour visit to the Federal
Home Loan Bank Board.
The Iowa group entertained Congressman, their
spouses and other officials at a banquet Monday even­
On Tuesday the group breakfasted with FDIC offi­
cials, visited later with Comptroller of the Currency
representatives, had an afternoon briefing at the
White House executive building and wound up for an
hour discussion at the USDA, that resulted in FmHA
Administrator Vance Clark’s visit to Iowa.
The visit concluded Wednesday morning with break­
fast and extended visits with Iowa Congressmen on
the Hill.

LE F T— Shirley Meriwether; Bill Logan, immed. past pres. IBA and pres., The State Central Bank, Keokuk; J. Bruce Meriwether, pres. IBA
and pres., First Natl., Dubuque, with Sen. Tom Harkln. RIGHT— Repr. Neal Smith; Nancy Cooper, West Des Moines Valley High School
(granddaughter of Donhowes); Sen. Chuck Grassley, and Pat and Bob Donhowe, chmn., Norwalk-Cumming State.


L E F T— Repr. Jim Leach visits with Kay and Bill Bernau, la. supt. of banking and pres., Peoples Savings, Crawfordsville. RIGHT— Clair Lensing, pres., Farmers State, Marion, and Mary; Repr. Cooper Evans, and Mae and Bill Rlckert, sr. v.p., Natl. Bank of Waterloo.

L E F T— JoAnn and Jerry Lapke, pres., State Bank of Portsmouth, Panama; Repr. Jim Lightfoot, and Kay and Bill Bernau. RIGHT— Howard

pres., First T&S, Moville, visits with Repr. Berkley Bedell.
Supplement to Northwestern Banker Newsletter 5-5-86
Federal Reserve Bank of St. Louis

Jorgenson, pres., Central State, State Center; Repr. Tom Tauke; Bill Kruse, chmn., First Natl., Dubuque, and Barb Kruse.
RIGHT— Mary Lensing, Marion; Federal Reserve Governor Martha Seger, and Elaine Kout, Lone Tree.

L E F T— Russ Howard, pres.-elect IBA and chmn., Mahaska State, Oskaloosa; Repr. Jim Leach; Tom Figge, pres., Davenport B&T- Federal
Reserve Governor Emmet Rice, and Jennifer Figge. RIGHT— Federal Reserve Governor Wayne Angell and Betty: Mick Guttau Dres
Treynor State, and Judy Guttau.
’ K ’’

breakfast with IBA Pres- Bruce Meriwether (center), Pres.-Elect Russ Howard (right), and Bill
Logan (back to camera). RIGHT— Nell Milner, exec, v.p., and IBA Pres. Bruce Meriwether (right), visit with Don Ogilvie, exec. v.p. ABA dur
ing briefing session at ABA headquarters.
K n D nuui

L E F T— A. Arthur Davis, genl. counsel IBA, and Ginger, visit with Neil and Bea Smith. RIGHT— The gloomy picture on the financial cond
tion of the nation’s s&ls, given to Iowa bankers at a briefing inside Federal Home Loan Bank headquarters, was emphasized on the ou
for of
the building when it was noted that someone had knocked the “ H” out of the FHLB'
Federal Reserve Bank of St. Louis


Call on the “ Experienced Professionals”
Ready to meet your
correspondent needs.
Des Moines, which he will continue
to serve as president and CEO. In
addition, Shirley Poertner was
elected vice president of human re­
sources, planning and training at
First Interstate Des Moines.
MUSCATINE: Bernard J . Lattyak
will join First National Bank May
19 as senior vice president and se­
nior loan officer, according to
George A. Shepley, president and
CEO. Mr. Lattyak has resigned as
vice president-loans at Union Na­
tional Bank, W ichita, Kan., to ac­
cept the new appointment. Previous­
ly, he was with First National Bank,
Sioux City, and Marquette Bank,

Nebraska News
The Nebraska Bankers Associa­
tion will present five conferences to
enable member banks to gain fuller
understanding of Clear Title and
Forbearance regulations. Meetings
start with 9:30 a.m. registration and
conclude at 3:30 p.m. on the follow­
ing dates:
May 20—Scottsbluff Country Club
May21—North Platte Stockman Inn
May 22—Kearney Ramada Inn
June 3—Norfolk Villa Inn
June 4—Lincoln Hilton
Representatives of the Comptrol­
ler, FDIC and state banking depart­
ment will discuss effects of federal
and state forbearance regulations,
amortization of loan losses, and
FASB 15 interpretations. After
lunch, NBA General Counsel Bill
Brandt will discuss legislative high­
lights and their effect on banks, In­
itiative 300, Bank Tax, Clear Title
and its alternatives. The fee is $60
per person.
* *


The Nebraska Bankers Associa­
tion will host its 1986 Washington
Legislative Visit June 8-10. Head­
quarters will be at Loews L ’Enfant
Plaza hotel. An NBA briefing will
take place Sunday evening. Bankers
will meet with the ABA Monday
morning and for luncheon. In the
afternoon they will visit the Federal
Reserve and then have dinner with
the Nebraska Congressional delega­
tion. On Tuesday, after a continen­
breakfast and FDIC briefing,
Digitized tal
Federal Reserve Bank of St. Louis

13th & M StreGtS, Lincoln, Nebraska 68501

Firslier Bank, N.A., Lincoln, Member FDIC

they will have a Comptroller of the Weissenborn to vice president, total
Currency briefing, followed by lun­ compensation.
cheon and wrap-up reports before
departure for Nebraska Tuesday
Montana News
The Montana State Conference of
* * *
the National Association of Bank
Women will be held June 6 and 7 at
The Nebraska Bankers Associa­ Grouse Mountain Lodge, Whitefish.
tion has notified members that
The theme will be “Managing for
Banking Director Jam es Barbee re­
Profit.” Speakers and workshops
cently implemented a capital for­
will focus on helping attendees learn
bearance policy that is aligned with
how to enhance their contribution to
the FD IC’s announced forbearance profits at their banks.
program. Nebraska banks comply
with the state director's program by
Wisconsin News
filing duplicates of the FDIC fil­
SO N : Robert L. Martin re­
cently was elected president of the
$43 million asset Jefferson County
Bank. Previously, Mr. Martin was
Minnesota News
senior vice president and senior
BLOOMINGTON: Richard L. Par­ lending officer at First National
nell has been appointed president Bank in Muscatine, la., and also
and COO of MetroBank Blooming- worked in Illinois banks earlier in
ton/Minneapolis/Airport. He former­ his career.
ly was vice president of First Bank
Minneapolis and St. Paul, in charge
Illinois News
of correspondent h a n k in g .
CHICAGO: First Colonial BankMINNEAPOLIS: Marquette Bank shares Corp. has announced that it
Minneapolis has completed the mer­ has agreed to purchase controlling
ger of three former Fidelity Bank interest in the $170 million asset
Northeast facilities into the Mar­ Avenue Bank & Trust Company of
quette Bank system. The facilities Oak Park, the $35 million asset Ave­
will be known as Marquette Bank nue Bank Northwest, Niles, the $20
Northeast (Minneapolis), Marquette million asset The Northlake Bank,
Bank Eden Prairie and Marquette Northlake and the $18 million asset
Bank Burnsville.
Avenue Bank of Elk Grove. The ac­
MINNEAPOLIS: First Bank Sys­ quisitions will involve a cash trans­
tem, Inc. has announced several ex­ action of approximately $30 million.
ecutive appointments: Gerald A. They are subject to regulatory ap­
Kraut to executive vice president of proval and will bring First Colonial
capital markets; John R. Danielson Bankshares’ total assets to nearly
to senior vice president of corporate $1 billion.
development and strategic planning; MONMOUTH: David S. Burrell
M. Claire Canavan to vice president, joined Monmouth Trust & Savings
funds management, and Joseph O. Bank April 21 as president and

Inquire about FLEXOPAY®
■ a com puterized billing/credit system
■ g enerates additional incom e from
p resent staff and equipm ent
■ m eans of increasing your local
com m ercial business
■ plan developed by bankers for bankers


L eR oy B ell
T h e National Bank of W aterloo
R O . B ox 90,
W aterloo, IA 50704

4 CEO. He was formerly vice presi­
dent of Brenton National Bank—
Poweshiek County, Grinnell, la.,
where he served the past 10 years.
Mr. Burrell succeeds Mark Pingrey,
who is now president of Farmers &
Mechanics Bank in Galesburg, 111.
Mr. Pingrey also had been president
of First National Bank of Oelwein,

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 St., Suite 201
Des Moines, Iowa 50309
Phone 515/244-8163 ______

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.

Multi-bank group seeks qualified real estate lender. Ability
to package for sale to secondary market a plus. Salary
Open depending on experience.

Positions now available in three major banks in Nebraska,
Iowa, and South Dakota. Law Degree preferred. Experi­
ence in personal trust and/or employee benefits a plus.
Salary range to $35,000.

Major bank holding company seeks CPA with bank audit
experience. Salary to $30,000.

Freeland Financial Service
1010 Equitable Bldg. Des Moines, IA 50309
Employer pays fee.
Please contact Malcolm Freeland concerning these quali­
ty applicants or for other types of banking officers.

A Bed and Breakfast
Brochure Available
1281 High Drive
Estes Park, Co 80517
(303) 586-9411

tory to File No. W FD c/o Northwestern Banker.


LENDING O FFICER. Immediate opening for experienced
Ag Loan Officer. $24M bank in southern lake region of Min­
nesota. Excellent career opportunity for individual experi­
enced in overall bank operations. Send resume and salary
requirements to Arnie Leen, Citizens State Bank, Waterville, MN 56096.

READER, has been under maintenance. Contact Iowa
State Bank, Box 306, Fort Madison, la 52627 (319) 372-1134.

c^Toidex and, c/hioaLatzs,

Estate Appraisals
Purchase of

Bank Consultants
$30M north Iowa bank needs SR AG LENDER.
Responsibilities would include implementation of
lending policies, compliance, supervision of staff,
work out loans and developing customer relation­
ships. Salary negotiable. Send resume to File No.
W FE c/o Northwestern Banker.

EVP • For East Central Iowa, $40M bank. Needs
7-10 years of bank operations exp. Highly promotable. To $45K.
SENIOR LENDERS • For two E. Nebraska banks.
Need exp. in comm, and some ag lending. To
CEO - for small E. Nebraska bank. Ag exp. is
essential. To $40K.
LOAN REVIEW O FFICER • For Omaha banks.
Need 3-5 years loan exp., either comm, or ag.
Some travel involved. To $35K.

Reliable and respected service
for over 20 years


L'sed by bankers
throughout the midwest

1 of lA’s fastest growing organizations needs an indiv
w/coml loan review & 3 + yrs cr anal exp in 100m + bank.
Will be given oppty to run show and build support team.
Upper $30’s.

Ben E . Marlenee

IL bk near Chg offers best of both worlds. Mgt potential
within 3 yrs, 15% bonus & great relo pkg. 5 + yrs exp in ur­
ban coml environment & bus development talents. $40K + .

913 Locust
Des Moines, Iowa 50309

Top-notch hold co seeks indiv to run healthy, clean
$40m + bk. Must desire to succeed, CEO exp in $3Î0m + bk
& strong past earnings. Position offers rewards in fini &
career areas.
$50K + .

All fees are paid by our client employers.
Richard L. Beam, CPC
11246 Davenport Street
Omaha, NE 68154
Phone: 402/330-3260
Member National Personnel Associates
We’re Nationwide

Sale o f Rare Coins

Specializing in Bank Acquisitions
P.O. Box 450 405 Main Ames, Iowa 50010
D onald E. Holder , Principal



317 6th Ave, Ste. 650
Des Moines, IA 50309

(515) 244-4414

LOAN REVIEW - lead bank of major midwestern holding
company. Requires degree and minimum of two yrs. loan
review experience in large bank'environment.
COMML. LOAN - $100M suburban affiliate of large multibank holding company. Strong technical skills and 3 yrs.
or more experience.
INSTL. LOAN - manage consumer department for $80MM
suburban bank. Ideal candidate will have five yrs. instal.
lending background including dealer paper.
CEO - small rural bank located close to recreational area.
Work out situation. Ag credits not the problem.


AGRI LOAN - primary responsibility for all Ag credits in
$25MM community bank. Assist with commercial loans.


Additional opportunities available. Resume requested.


PHONE 712/758-3660
• Loan Review and Credit Administration • Profit Planning

2024 Swift - Box 12346
North Kansas City, MO 64116
“ Serving the Banking Industry Since 1970”

Vol. 15 No. 3 Northwestern Banker Newsletter (USPS 873-300) Is published weekly by the Northwestern Banker Company, 1535 Linden
Street, Suite 201, Dee Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $18.00 per year. Second class postage paid at
Digitized forDee
Molnee, Iowa. Addreas all mail subscriptions, changes of address (Form 3579), manuscripts, mall Items to above address.
Federal Reserve Bank of St. Louis