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Vol. 15 No. 3 Des Moines, Iowa “ B est Inflation News Y et to Come” ORLD oil consumption is un W likely to revive significantly in the near term in > v g . resp o n se to lower oil prices, according to Dr. Sung Won Sohn, senior vice presi dent and chief econom ist for Norwest Corpo ration. 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 prices. 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 levels.” 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, ASK DICK RETZ to make M N B w o rk for you. Toll free: 1-800-332-5991 Merchants National Bank https://fraser.stlouisfed.org 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. * * # 2 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 bidder. 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 H. PETER De ROSIER Vice President Valley National Bank $ Main Office-Sixth and Walnut A B A N K S O F IOW A BAN K D E S M O IN E S , IO W A 50304 I 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 https://fraser.stlouisfed.org 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 door. 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 tion. 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 _ ^ ^ 9 ^ 9 £ # # • £ f £ ® ^ ^ MIDWEST BANKING SERVICES, INC. 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 President SPECIALIZING IN AGRICULTURAL LOANS, LOAN PORTFOLIOS, AND CREDIT ADMINISTRATION 1. 2. 3. 4. 5. 6. 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 PHONE OR WRITE FOR INFORMATION: 5 1 5 -5 2 6 -3 4 4 1 Box 87 • 302 First St. • Kellogg, Iowa 50135 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Supplement to Northwestern Banker Newsletter 5-5-86 https://fraser.stlouisfed.org 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. A • 0 0 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 ing. 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 Logan, pres., First T&S, Moville, visits with Repr. Berkley Bedell. https://fraser.stlouisfed.org Supplement to Northwestern Banker Newsletter 5-5-86 Federal Reserve Bank of St. Louis mSm 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 ’’ Bl? 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 Digitized for of FRASER side the building when it was noted that someone had knocked the “ H” out of the FHLB' https://fraser.stlouisfed.org 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, Minneapolis. 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 for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ^FirsTierBank Lincoln 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 afternoon. 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 JEFFER SO N : Robert L. Martin re ings. 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 CALL: 1-800-772-2411 WRITE: 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, la. — 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 St., Suite 201 Des Moines, Iowa 50309 Phone 515/244-8163 ______ COMMERCIAL LENDERS 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. REAL ESTA TE LENDER Multi-bank group seeks qualified real estate lender. Ability to package for sale to secondary market a plus. Salary Open depending on experience. TR U ST OFFICERS 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. BANK AUD IT CHIEF Major bank holding company seeks CPA with bank audit experience. Salary to $30,000. Freeland Financial Service 1010 Equitable Bldg. Des Moines, IA 50309 515/282-6462 Employer pays fee. Please contact Malcolm Freeland concerning these quali ty applicants or for other types of banking officers. TH E TERRACES 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. (PA) 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. (PA) BURROUGHS L9000 POSTING M ACHINE AND A U TO READER, has been under maintenance. Contact Iowa State Bank, Box 306, Fort Madison, la 52627 (319) 372-1134. (FS) c^Toidex and, c/hioaLatzs, Estate Appraisals Purchase of Collections Bank Consultants POSITION AVAILABLE $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. POSITIONS AVAILABLE 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 $45K. 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 POSITIONS AVAILABLE L'sed by bankers throughout the midwest LOAN REVIEW MGR 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 Coins COMMERCIAL LENDER 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 515-243-8064 CEO 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 + . FOR FURTHER INFORMATION CONTACT: KURT ROSENCRANTS All fees are paid by our client employers. Richard L. Beam, CPC GUM BER T EXECUTIVE EXCHANGE, INC. 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 515-232-0814 P.O. Box 450 405 Main Ames, Iowa 50010 D onald E. Holder , Principal (III no no 317 6th Ave, Ste. 650 Des Moines, IA 50309 (515) 244-4414 WORLD'S LARGEST BANKING, ACCTG & EDP SPECIALISTS ALL FEES COM PANY PAID POSITIONS AVAILABLE LOAN REVIEW - lead bank of major midwestern holding company. Requires degree and minimum of two yrs. loan review experience in large bank'environment. $28K COMML. LOAN - $100M suburban affiliate of large multibank holding company. Strong technical skills and 3 yrs. or more experience. $30K INSTL. LOAN - manage consumer department for $80MM suburban bank. Ideal candidate will 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 BANK LOAN MANAGEMENT, INC. AGRI LOAN - primary responsibility for all Ag credits in $25MM community bank. Assist with commercial loans. $35K C O N S U LTA N T T O BANKERS Additional opportunities available. Resume requested. 773 SPRUCE STREET, P.O. BOX 159, OCHEYEDAN, IOWA 51354 PHONE 712/758-3660 • Loan Review and Credit Administration • Profit Planning TOM HAGAN & ASSOCIATES 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “ 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 FRASER Molnee, Iowa. Addreas all mail subscriptions, changes of address (Form 3579), manuscripts, mall Items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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