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• November 28,1983 Des Moines, Iowa Vol. 12 No. 32 1st Chicago Econom ist Assesses The Banking Environment in 1984 ing. That means, in turn, that our loan loss reserves may not have to B y DR. ROY be increased in 1984, although we E. MOOR may not be able to reduce them Sr. V.P. and much either. Chief Econom ist A grib u sin ess L ending—Perhaps surprisingly, we expect loans to far The First mers will increase by as much as National Bank 15% in 1984. The environment ap of Chicago, 111. pears favorable for such ah increase. . . .presented November 21 at 1st The facts, as contrasted with the Chicago’s 37th Annual Conference journalistic hipe, are that net cash receipts and net farm income have o f Bank Correspondents. risen quite well in 1983. Morever, E EXPECT business borrow the general financial condition o f ing from banks to rise in 1984 farmers is not as bad as the news about 4.7% above the average level paper stories would suggest. Total o f loans in 1983. That is an almost farm debt, both m ortgages and unprecedented low rate o f gain in others, currently constitute only business loans outstanding for a se about 20% o f total assets owned by cond year o f a recovery. The pick up farmers. Farmers should be able to should continue throughout all o f repay some o f these existing loans in next year and indeed accelerate in 1984. H owever, we also anticipate the latter part o f next year. Busi ness loan demands will tend to be substantial increases in acreage and concentrated among regional and in production, especially for crops local banks much more than within other than wheat. Demands for ferti lizers, pesticides, and farm machin money center banks. During 1983, we had business fail ery should all be up in 1984, because ures at a rate higher than at any o f the increased production an time since the Great Depression. In ticipated for next year. These 1984, we will be dealing with busi demands all fell this year. ness borrowers who are survivors. Real Estate Loans—Our overall For these survivors, their balance forecast is that real estate loans will sheets are im proving and their abili increase about 5Vi% in 1984 over ty to service their loans is increas- 1983 levels. A bout Vz o f our 51/2% W national increase in real estate loans comes from turnover o f existing homes. W e have seen some pick up in interest, both by lending institu tions and by prospective homeow ners, in variable rate m ortgages. Other them residential loans, we an ticipate virtually no changes in out standings for other types o f real estate. Household Borrowing—Aside from m ortgages, consumer-related loan demand should continue to grow and smartly, throughout 1984. The growth in household purchasing in the last six or seven months has been, in part, recoupment demands deferred from earlier periods. Nevertheless, we see consumer loans in the banking system risng about 9% year-over-year in 1984. B y the way, part o f this demand is to fi nance home remodeling and refur bishing. There is more good news here. De spite the expected rise in consumer borrowing, household balance sheets should continue to improve through out next year. Total family incomes will be rising at least as rapidly as debt, tax rates will remain stable, and personal assets o f all types will rise in value. D eposits—Our view is that general stability has finally arrived in depos it markets after the substantial ad justm ents brought about by deregu lation. Through 1984, therefore, depositors are likely to change their holdings in a more balanced way C A L L ON T H E “PER FO R M AN CE TE A M ” where com m on transactions are handled uncom m only well. FIRST NATIONAL LINCOLN 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 HkH Norwest Bank Des Moines , N.A. mmmmm NORWEST BANKS mmmmm mm'imm Call (515) 245-3131 or toll-free (800) 362-2514 Member FDIC T e a m w o rk : one of the reasons w e ’re first in Iowa. Dorothea Wolfe Iowa News Bernie Kersey under a better understood set o f con ditions. For demand deposits, the only growth is likely to be associated with increased transactions de mands, primarily by business. A l though busines activity will con tinue to grow, we expect an increase in demand deposits throughout the banking system o f only about eighttenths o f one percent year-over-year. Other checkable deposits that yield interest, by contrast, will grow rap idly— we expect over 18% — largely from an interest-sensitive popula tion that will be saving an increas ing proportion o f their income next year. Savings deposits in the tradi tional forms should decline in total volume throughout the system by about 2%, again reflecting the in terest awareness o f the population as well as the continuing advertising campaigns by financial institutions. Bank Costs—That is one piece o f bad news concerning bank costs in 1984. W ith relative stable interest rates on deposits and the greatest growth com ing in deposits that car ry high interest costs, the overall costs o f funds to banks will be rising in 1984. Another bit o f bad news stems from our general interest rate out look. It, along with acute bank com petition for loans, implies that yield spreads are not likely to widen very much, if at all, throughout 1984. These cost pressures, in turn, mean that each o f us has to scruti nize our remaining costs and econo mize wherever possible, ju st as does ever other type o f business. One area is probably the purchase o f outside services, such as advertising and legal services. Our m ajor cost, o f course, is for labor. We forecasted last year that the increase in average hourly earn ings for bank employers dining 1983 would only be about 41/2%. On the basis o f data available through A ug ust, the figure looks to be about 5 Vi% —already the lowest rate o f gain in over a decade—and it con tinues to slow. Our estimates are for increases close to 4 Vi% for hourly earnings gains in banking in 1984. One change in costs that all o f us have been observing through the last several years has been a rapid movement in banking to labor-sav ing new technologies. W e expect at least as fast a pace o f conversion to new technology in 1984. This represents capital investment for all o f us, but the pay back in overall cost economies still seems justified. Federal Reserve P olicy—M y fore cast concerning Federal Reserve policy can be summarized quickly: more o f the same. W hat we have been seeing in the second half o f 1983 is what we expect to see, with no significant changes, throughout all o f next year. Specifically, we do not anticipate any changes in Fed policies associated with the fact that next year is an election year. Conclusion—A ll in all, 1984 appears to be another difficult year. Never theless, the worst is behind us. Per- Professional ... Responsive... Call Mark Christen for any correspondent service. Call toll free (800) 622-7262 Valley National Bank ¡3 DES M O INES, IOW A 50304 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a Member FD IC haps the best thing I can say about 1984 is that our earnings prospects will be more influenced by our own management capabilities and less determ ined b y external forces. That’s good news. □ BANKS OF IOWA BANK D AVEN PORT: It was reported last week that Davenport Bank and Trust Co. will assume ownership o f Security State Trust and Savings Bank o f B ettendorf sometime in mid December. The purchase price will be $3 million. Harold J. A bdo has resigned as president o f Security State. It was reported that a short age o f $581,000 from the bank is being investigated. Security State has deposits o f $24,850,000. Follow ing the com pletion o f the sale, Security State’s main Bettendorf of fice and its single branch office will be operated as offices o f Davenport Bank and Trust. M AN LY: Cortland D. Peterson has been named president o f First State Bank here. He succeeds Tom Masey, who recently resigned. Mr. Peter son, who has been serving as a direc tor o f the bank since August, pre viously was vice president for In dependent Financial Corp., Mason City, a position he will continue to serve in. Nebraska News Several savings and industrial companies have been merged with banks and are now covered by the FDIC up to $100,000. Lincoln Savings Co., which was taken over by the state Friday, No vember 18, reopened November 22 as a branch o f Union Bank and Trust Co., Lincoln. Prior to the Lin coln Savings merger, Northeast Savings and Investm ent Co. had also merged with Union Bank and Trust and opened as a full-service branch. A lso receiving FDIC approval last M onday were W estern Nebras ka Savings Co. o f Alliance and First o f Omaha Savings Co. The three m ost recent approvals bring to seven the number o f industrials ap proved either for merger with a bank or for FDIC coverage since the fail ure o f Commonwealth Savings and Loan Co. November 1. ASH LAN D : Steve Loogm an has joined the staff o f Farmers & Mer chants National Bank as vice presi- If you’ve been eyeing the lucrative leasing market you know what it w ould cost. Before you even book your first lease you could pay up to $50-150M for legal research, qualification requirem ents, data processing programs, prom otional materials, and an expanded staff. Yet hundreds of institutions just like yours are getting into leasing. W hat’s the key? The key is Participation Leasing w ith Collateral Financial Services. W ith Collateral Financial Services’ help you can add a lease program without adding to your staff. CFS takes care of the billing, collecting, taxes, marketing, docum enting, and financial reports. W e also provide the training you need to determ ine the lease contract and the amount of investment you w ould like to make in the lease. (You can make an investment of as little as 10% or as m uch as 75%.) W ith Participation Leasing you serve valued custom ers on a direct personal basis. You attract new custom ers. And you can do it without high start-up costs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Open the door to your ow n leasing program, send in the coupon below, or call CFS today TOLL FREE 1-800/328-4136. COLLATERAL FINANCIAL SERVICES INC. I want to find out how easy it is to enroll in your leasing program. Send me the brochure “How To Tap Into The $150 Billion Leasing Market.” N W BN 11/83 Name____________________________Title______ _____________ Institution______________________________________________ Address________________________________________________ City_______________________ State________ Zip____________ M ail to: CO LLATER AL F IN A N C IA L SERVICES IN C . Supplement to Northwestern Banker Newsletter 11-28-83 Corporate Offices 444 Lafayette Road St. Paul, M N 55101 Toll free 1-800-328-4136 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis dent and senior loan officer. In the last five years he has held positions at W ells Fargo banks at Red Bluffs, South Lake Tahoe, Gridley and San Bernardino. B A Y A R D : Dick Barnes has been named executive vice president and director o f the First National Bank o f Bayard. He previously was vice president o f First National Bank in North Platte. ■ a co m p uterized ^ local billlng/credlt service Toll free 1- 800- 332-5991 Merchants A National Bank IS I M em ber F.D.I.C. A ‘BANKS OF IOW A’ BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Milt Hennick 319- 291-5412 National Bank of Waterloo 315 East 5th St • Waterloo, IA 50704 to make MNB work for you. Contact: Leroy Bell or OM AH A: O fficials o f First National Lincoln Corp. and Omaha National mittee to be held November 30-DeCorporation jointly announced last cember 1 at the Holiday Inn Inter week that the merger o f the two into national, Bloom ington. Firstier, Inc., as previously an The workshop will be conducted nounced, has been unanimously ap by Thomas Farm, president of proved by the respective boards o f Aurora Systems, Inc., Madison, directors. W is. He has been a featured speaker OM AH A: Sylvia B. M yers has been at computer seminars around the a ppoin ted v ice presiden t and country and is nationally recognized manager o f the Central Park facility as one o f the leading experts in the o f Norwest Bank Omaha, N .A. She m icrocom puter industry, particular started with the bank in 1967 and ly in the specialized area o f bank ap has served as assistant manager of plications. the facility since 1982. E D IN A: John D. M cDonald has been named senior vice president o f the commercial banking division at Minnesota News The Minnesota Bankers Associa First Bank Southdale. Previously he tion will be presenting a two-day held the position o f senior vice presi M icrocom puter W orkshop spon dent o f credit administration at sored by the M B A operations com- First Bank Hopkins. He joined First Bank System in 1959. ASK JOHN MANGOLD 3 An important new profit center for your bank: M I N N E A P O L I S : F irs t B ank System, Inc. board o f directors has elected DeW alt H. Ankeny, Jr. pres ident and chief operating officer and Dennis E. Evans as vice chairman and a director. Mr. Ankeny, vice chairman since July o f 1982, suc ceeds George H. Dixon, who re mains First Bank System chairman and chief executive officer. In addi tion, Mr. Evans will serve as chair man and CEO o f First Bank Saint Paul, as well as his current position as chairman and CEO o f First Bank Minneapolis. Illinois News The Illinois Bankers Association’s officers for 1984 were form ally designated at the IB A ’s Annual M eeting held November 16 at H oli day Inn O’Hare-Kennedy. The of ficers, whose terms will run from January 1 to December 31, 1984, are: President—Charles C. W ilson, chairman and CEO, First National Bank o f the Quad Cities, Rock Island; Vice President—Kenneth Skopec, president, The M id-City National Bank o f Chicago; Member Federal Reserve System FDIC Secretary—James Lund, chair man and president, Matteson-Richton Bank, Matteson, and Treasurer—D onald R. L ovett, chairman and president, Dixon Na tional Bank. The chief staff officer o f the IB A is Executive Vice President William J. Hocter. * * * The Independent Com m unity Banks in Illinois will be holding four IR A seminars to be held on con secutive dates in December. December 6 at Red Lion Inn, Marion; December 7 at Ramada Inn, Peoria; December 8 at Ramada Inn, Rockford, and December 9 at Ramada Inn, Rock Falls. North Dakota News North Dakota Bankers Associa tion President Darold Petersen has announced the resignation o f Bob W estbee as N D BA president-elect. Mr. W estbee recently accepted a position as president and chief ex ecutive officer at United Central Bank in Mason City, Iowa. Under the N D BA By-Laws, Les N esvig o f the First State Bank, LaMoure, autom atically assumes the office o f president-elect, leaving his previou s p osition as vice president/treasurer vacant. A special m eeting has been called for December 20 in Bismarck, by John M cGinley, nominating com m ittee chairman, at which time a candidate will be selected and ap proved by the executive council to com plete the term. Anyone wishing to recommend a banker for nomina tion or who is personally interested in serving in this capacity should contact any member o f the nomina ting committee. The individual chosen will be the official candidate for the 1984-85 N D BA president-elect. Montana News PO SITION S A V A IL A B L E CEO for $20 million Minnesota Bank. Requires proven ability in community bank............................................ Salaryopen BILLIN G S: Rick McCann has joined Pioneer Bank as vice presi dent. He previously was serving as assistant vice president, real estate department, for Security Bank, N.A. Ag Lender for Iowa Great Lakes Area multi-bank holding company. Requires three or more years ag lending plus degree................................................................................Salaryopen Ag Lender for bank in Greater Des Moines area. Excellent opportunity for lender with three or more years ex perience, farm background and ag degree------ Salary open Commercial Lender for large central Iowa independent bank. Requires degree and five or more years commercial lending experience........................................................... Salaryopen BILLINGS: Norwest Bank Billings, N.A., recently announced the addi tion of Robert D. Anderson as vice president, manager commercial lend ing. Mr. Anderson started in bank ing in 1977 and m ost recently served as vice president/manager commer cial lending division o f First Na tional Bank in Rochester, Minn. Experienced Lender for Eastern South Dakota community bank. Requires both commercial and ag loan background.. ..................................................................................Salary open Ag Lender for Southern Minnesota Multi-bank holding com pany. Requires five or more years experience. Applicant will supervise $9 million Ag portfolio and two ag reps................. ..........................................................................Salary to $32,000 Sr. Lender for Southern Minnesota multi-bank holding com pany bank must be experienced in commercial, ag, and retail lending.................................................. Salary to $36,000 Commercial Lender for $60 million thrift institution in Eastern Missouri. Excellent opportunity and bonus ar rangement ...............................................................Salary open Ag Lender for Northern Iowa community bank. Requires two or more years experience plus degree. Excellent opportunity in county seat town...................................... Salary to $29,000 Wyoming News GILLETTE: Joe Jackson has been named president and chief executive officer of First W yom ing Bank. He previously was vice president o f the Hastings State Bank, Hastings, Neb. He succeeds Gary Turner, who resigned in October. Mr. Turner has served as president since February, 1982. Ag Lender for N.W. Iowa bank. Salary range is open, depen ding on experience. Nice small community and working con ditions. Ag Lender for S.W. Iowa community bank. Must have three or more years experience plus degree. Bonus arrangement. .......................................................................... Salary to $30,000 Operations/Customer Contact for larger Iowa bank. Re quires banker who is customer-oriented. Excellent oppor tunity................................................................Salary to $32,000 Correspondent Officer for major midwest bank. Ag lending background a plus. Must have five or more years banking ex perience...................................................................Salary open Operations Officer to take charge of cashier duties in Southern Minnesota bank............................ Salary to $30,000 W A N TA D S Rates are $5.00 per line per insertion. Add $3.00 for file letters per insertion. Identity of file letter advertisers cannot be revealed. NORTHW ESTERN BANKER 306 -1 5th Street Des Moines, Iowa 50309 Phone 515/244-8163 ROTARY CH ECK FILE— LEKTRIEVER SERIES 80. Like new. NCR 778 PROOF M ACHINE W ITH 12 POCKETS. Con tact Wayne Mastin, First Farmers National Bank, Knoxvllle, IL Phone 309/289-2346._________________________ (FS) NCR 499 POSTING M ACHINE. Presently under mainten ance. Phone 319/728-2226. (FS) Auditor/Comptroller for commercial bank in Dallas/Ft. Worth area. Requires CPA degree and experience with “BIG EIGHT” firm............................................................ Salary open We have many other positions available. Write or call Malcolm Freeland in confidence c/o Freeland Financial Ser vice, Inc., 1032 Carriers Bldg., Des Moines, la. 50309. Phone (515) 282-6462. Employer Pays Fee. IBM SYSTEM S 34 W ITH 5211 (300LPM) PRINTER. Under maintenance. Phone 402/474-3211. (FS) SKI TH E SUMMIT One, two and three bedroom units for sale or rent. Most with hot tubs. Phone 1-800/922-2590. Dwayne Smith PARADISE PROPERTIES Box S Dillon, Colorado 80435 POSITIONS AVAILABLE OPERATIONS— $40MM community bank seeks junior of ficer with “day to day” operations experience to understudy cashier. $22K LOAN OFFICER— Excellent opportunity for aggressive person with minimum of 2 years banking experience. Future for management. Send resume to Don Collins, First State Bank, Murdock, MN 56271. Phone (612) 875-2431.(PA) AGRI LO AN — $30MM agri bank located within 30 minutes of major metro area. Handle all ag credits and some com mercial. $28K Sac City State Bank has an opening for an EXPERIENCED LENDER. Four years minimum with emphasis on ag lend ing. Contact George H. Pingrey, president, Sac City State Bank, Sac City, IA. Phone 712/662-4721. (PA) Independent bank in lake area seeking INSURANCE AGENCY MANAGER. Must be experienced and well qualified, able to manage people. Part ownership may be available. Agency premium $1 million. Write file VBP, c/o Northwestern Banker. (PA) CONTROLLER— Knowledge in bank reporting, assetliability management. Accounting degree with 3 plus years banking experience. Send resume to J.M. Euard, Ex ecutive Vice President, The State Bank of Woodstock, P.O. Box 729, Woodstock, Illinois 60098. (PA) BRANCH MANAGER for west bank city center location. Career opportunity for individual interested in branch operations in metro area. Individual must have back ground in operations and credit and enjoy working with people. Send resume and salary requirement to file VBQ, c/o Northwestern Banker. All replies strictly confidential. __________ ___________________ (PA) REAL E S TA TE LO AN— manage and develop R.E. dept for $100MM suburban bank. Requires working knowledge of secondary market. $35K PRESIDENT— $30MM community bank with excellent per formance record. Strong commercial and agri lending skills desired. $Open B A N K IN G PLACEM EN TS “ Successful Banking is Quality Personnel” OPERATIONS— $75MM suburban bank seeks manager of internal operations. Prefer degree and 2-3 yrs. large bank experience. $22K Eighteen years banking experience serving as president of rural and metropolitan banks enables me to find the “ right” banking position for you as a banker or the "right” officer for your bank. TR U S T O FFICER — manage growing dept, for affiliate of small holding company; 2-3 yrs. trust administration ex perience required. $25K EX)N ® C H O O L E R Ir AND i f t l W ASSOCIATES 2508 East Meadow • Springfield, Missouri 65804 417/882-2265 C O M P L E TE L Y C O N F ID E N T IA L _______________ “ Employment Service"______________ Forward resume and salary information. All inquiries con fidential. TOM HAGAN 8. ASSOCIATES 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “Serving the Banking Industry Since 1970” Vol. 12 No. 32 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $18.00 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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