The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
N ovem ber5,1984 Des Moines, Iowa Vol. 13 No. 29 A Sober Look at Trade Deficits N TH EIR “ U.S. Economic Policy and Outlook” review prepared for National City Bank of Minneapolis, co-authors Walter W. Heller and George L. Perry report GNP for 1984 probably will approach 7% and the domestic expansion will stay alive in ’85. They add, “ Hard-headed analysis requires us to look not just at today’s evident economic gains but at tomorrow’s lurking dangers.” Dr. Heller is Regent’s Professor of Economics at the University of Minnesota and a director of Nation al City Bank of Minneapolis, for whom this economic report was pre pared. His co-author, George L. Per ry, is a senior fellow at Brookings Institute. Under the section in their report titled, “ The International Day of Reckoning,” they give a sobering view of the continually mounting foreign trade deficits of this nation. Their four-page report has been summarized here for our readers. The complete, interesting report may be obtained from National City Bank (Box E Mpls. 55480). The sum mary follows: The international dimension is where our budgetary deficit chickens will most dramatically come home to roost. Rising interest costs of the federal debt ($200 billion by 1989) will mortgage much of our future tax revenue...Imports flooding in... and the capital inflows serve to put I be pushed even higher to keep do mestic demand within bounds. That’s an open invitation to reces sion and a body-blow to investment. The best way to take out insur ance against such dangerous devel opments is to take the courageous tax and budget steps needed to bring the deficit under control. This would contain domestic demands, allow interest rates to fall, and pro mote an earlier and more manage able correction of both exchange rates and the trade imbalance. To avoid financial turmoil and ful fill the brightest economic promise of the 1980s, the President and the Congress will have to make the tough job of raising taxes and cut ting the budget their Number One priority in 1985. □ the savings of the rest of the world at the disposal of U.S. expansion. But there will be a day of reckoning. We are moving at breathtaking speed from being the world’s big gest creditor nation to becoming the biggest debtor the world has ever known. A t present rates, the richest country in the world will achieve that dubious distinction in the next year or two. A t some point in the not-too-distant future the worm will turn. For eign holders will lose their appetite for dollars. The exchange value of the dollar will drop, perhaps with a vengeance. With some lag, our mer chandise trade will move toward sur plus. To make room for the greater net demands on our output by for Iowa News eign creditors, our monetary-fiscal The Iowa Bankers Association policies will have to restrain domes tic demand. Or, to put it more blunt will be presenting an IR A Update on ly: to redeem the IOUs, we are now two dates in November. November piling up to raise our current stan 27 the seminar will be held at the dard of living, future generations Stouffer’s Five Seasons Hotel in Cedar Rapids, and November 30 the will have to curb theirs. To slow our slide into debtor sta seminar is set for the Best Western tus and to ease the eventual retreat Starlite Village in Ames. Registra of the dollar, we must bring our bud tion is at 9:00 a.m. with the seminar get deficits under control. If we do running from 10:00-4:00 p.m. with a not, if we pile up ever bigger domes one hour break for lunch. Registra tic and foreign debts, we will be sad tion fee is $35 in advance and $50 at dled with high interest rates, an the door, and includes materials and over-valued dollar, and growing lunch. The IB A will also be offering a debts to foreigners just that much longer. And when the day of reckon Standardized Master Plan Seminar ing comes, interest rates will have to to be held November 26 at Stouffer’s SPRENGER, ROWLAND AND MESSINA Getting it done for you. _ _ ^ Bill S prenger 234-2625 Fra m p to n R ow land 234-2485 Jo h n Messina 234-2486 Commerce Bank of Kansascity M E M B E R F D IC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Telephone (816) 234-2000 . 2 Call on FNB for assistance with all your investment and cash management needs. GARY STEVENSON/VICE PRESIDENT 712/ 277-0618 First National Bank m Member FDIC • RO. Box 3248, Sioux City, Iowa 51102 • A BANKS O F IOWA' BANK Five Seasons Hotel in Cedar Rapids and November 29 at Best Western Starlite Village, Ames. Registration will begin at 8:30 a.m. and the semi nar will run from 9:30-6:30 p.m. with one hour for lunch. Registration fee is $50 in advance and $65 at the door and includes materials and lunch. * * * The Northwest Iowa Group of the National Association o f Bank Wom en will hold its monthly meeting No vember 14 at the Iowa Country Club in Cherokee. Sharon Johnson, vice president o f the Holstein State Bank, will present the program en titled “ The Convincing Close.” Nan cy Lenz, assistant cashier and assis tant trust officer of the Central ASK JOHN MANGOLD to make M NB work for you. Trust & Savings Bank in Cherokee, is hostess. COON RAPIDS: Bill Hess, chair man o f the board of Iowa Savings Bank, has been elected the bank’s president. His promotion allows John Chrystal, former president of Iowa Savings Bank and new presi dent of the Bankers Trust Co. of Des Moines, to assume board chairman duties of the Coon Rapids bank. Mr. Hess, who has overseen the opera tions o f the six banks owned by the Garst families since 1976, currently serves as president of the Carroll County Bankers’ Association and is an officer of Group 1 of the Iowa Bankers Association. MOUNT PLEASANT: Dean Hicks has joined the staff o f Henry County Savings Bank on November 1 as ex ecutive vice president. His primary responsibility will be the lending function of the bank. Mr. Hicks most recently was president of Com munity National Bank & Trust Company in Knoxville. He also has served as senior vice president of Brenton State Bank of Jefferson. MUSCATINE: Thomas L. Heither has been promoted to assistant vice president and farm manager o f Cen tral State Bank. A graduate of Iowa State University, Mr. Heither joined the bank in July, 1983. W ALNUT: Herbert Mertz has re tired as president and a director of Walnut State Bank. His career with Serving bankers quietly and efficiently. CAPITAL PERSONNEL SERVICE 714 U.C.B. Building, 515-283-2545 Des Moines, Iowa 50309 the bank spans 53 years. Also retir ing from the bank at this time are Arthur Mertz, vice president and a director, and Ann Paasch, cashier and director. Controlling interest in the bank has been purchased by Royce Corp. with the following new officers elected: George E. Nordan, president, and D onald Bauerkemper, cashier. Nebraska News It appears at this date that atten dance at the N BA Leadership Con ference scheduled for November 16 at Kearney Holiday Inn will be ap proximately 150 CEOs of Nebraska member banks, according to Stan Matzke, executive vice president of the Nebraska Bankers Association. The 9 a.m. to 4 p.m. conference will hear two speakers for each side of the interstate banking issue. They will be: For: John Cochran, regional chair man, Norwest Corporation, Omaha, and Hal Smethills, vice presidentlegal affairs, United Banks of Colo rado, Denver. Against: Mark Buckley, presi dent, Nebraska Independent Bank ers Association and president, First National Bank, Wilcox, and Jack King, president, IB A A , and presi dent, Valley Bank, Kalispell, Mont. Dr. Donald Mullineaux, former chief economist for the Philadelphia Federal Reserve Bank, who current ly holds the DuPont Chair in Bank ing at the University of Kentucky, will present the overview on the in terstate banking issue, and will sum marize the arguments presented by spokesmen for the two sides just prior to the actual consensus-gather ing part of the conference. We’re Security for You Toll free 1- 800 - 332-5991 Merchants A National Bank 151 Member F.D.I.C. A ‘BANKS O F IOW A’ BANK A t Security National Bank, w e’re people you can count on to handle all o f your Correspondent Banking needs. So, start corresponding with us. W e’re Security for you! SECURITY N A TIO N A L BANK IN SIOUX CITY. IOWA. M EM BER F .D .I.C. Dennis Nahnsen Vice P resident an d M anager C orrespondent B anking S ervices 712-277-6768 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Supplement to Northwestern Banker Newsletter 11-5-84 Homestead Managern 2024 NW 92nd Court, Suite 1 Des Moines, Iowa 50322 (515) 225-0085 The agricultural software experts at Homestead are proud to announce a revolutionary new tool credit analysis and financial planning for the farm: # ^ # T H E H O M E S TE A D FARM FIN A N C IA L PLANNER Created in conjunction with ag-lenders and farm finance specialists, T H E H O M E S TE A D FARM FIN AN CIAL PLANNER was specifically designed to meet the unique requirements of agricultural lending. T H E PLANNER generates a true cashflow-based analysis of your borrower’s ability to repay. Using T H E PLANNER your bank can * stream line the analysis of information in farm loan applications: A w financial * increase your share of profitable ag-loans; and * improve the managerial effectiveness of your farmer borrowers. REPORTS GENERATED: ADVANCED FEATURES OF TH E PLANNER * Easy to Use, Menu-Driven Format: This software, like all Homestead packages, is designed to be simply powerful. Our menu-driven format leads even the least experienced computer operator easily through the system. * B rin g s the F a rm e r and the Le n d e r Together: A major challenge of ag-lending is getting the needed information from the farmer to the ag-loan officer. As specialists in agricultural software, we understand. Th a t’s why T H E PLANNER projects working capital requirements and credit worthiness by simulating the actual operations of the farm. * Consolidated Cash Flow Including Operating Loan Requirements * a * Enterprise Cash Operation Flow for Each Type of * Pro Forma Income Statements (cash and accrual) * Pro Forma Balance Sheet * Statement of Changes in Financial Position a * Budget-to-Actual Comparison Many of the general commercial loan analyzers “adapted” for ag-credit expect the farmer to be his own financial expert. For example, he is expected to work out his cash flow for the next year all on his own. T H E PLANNER asks the farmer to answer questions in his area of expertise. The computer then does the laborious number-crunching, giving you more accurate and objective data to analyze and more time to make the key financial judgements. * Financial Ratios SEE TH E PLANNER FIRST-HAND A T TH E HOM ESTEAD B O O TH (#2) A T TH E 1984 ABA NATIONAL AG R ICULTUR AL BANKERS CONFERENCE, NOVEMBER 11-14. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (over) * B u ilt-in Data Ta b le s Com pensate For Incomplete or Poor Information: T H E PLANNER captures a comprehensive range of data about your farmer/borrower’s operation. But what if that information is missing or suspect? Or, what if you want to take just a quick look? No problem. Each PLANNER comes with built-in data tables containing industry-accepted values for each enterprise (crops, feedlot, cow/calf, hog, etc.). T H E PLANNER automatically defaults to these values, although they may be easily overridden for a • particular farm or changed by your own experts. At Homestead, We’ve Done Our Field Work. Since 1978, Homestead’s primary objective has been the development of microcomputer software for agriculture. By specializing in both a type of computer (micro) and an applications area (agriculture), we have succeeded in providing superior products and service to the agribusiness community. Our expertise in microcomputers is demonstrated by our work in developing information handling systems for the Winnipeg Commodity Exchange and London International Financial Futures Exchange. These are the only commodity exchanges with micro computer-driveti trading systems. Software developed by Homestead for use by farmers on their own microcomputers is being successfully marketed under private label by major agribusiness firms and associations serving farmers and ranchers throughout North America. Now, with the Homestead Farm Financial Planner, we are providing computer-assisted solutions to the information, planning and decision making needs of agrifinance professionals. DON’T BUY ANY O TH ER A G -C R E D IT PACKAGE UNTIL Y O U ’VE S E E N ... (Please Cut Here) TH E HOM ESTEAD FARM FINANCIAL PLANNER □ □ □ Please call to arrange a demonstration of THE PLANNER in my bank. Please send me more information on THE PLANNER. Please tell me more about Homestead’s other agricultural products. Name Title Bank/Company Address Phone • Hity Asset Size S ta te 7 in Branches Homestead Management System, Inc., 2024 N.W . 92nd Court, Des Moines, IA 50322 (515) 225-0085. Send this coupon to: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • 3 Call on the “ Experienced Professionals” FIRST N A T IO N A L L IN C O L N 13th & M Streets, Lincoln, NE 68501 A FirsTier Company • Tw o join tly-ow ned Nebraska banks—Farmers State Bank o f Kil gore and The Bank of Cody—were closed October 24 by Roger M. Bev erage, Nebraska director of banking and finance and the FDIC was named receiver. Mr. Beverage said both banks were closed because of exten sive loan losses and inadequate capi talization. FDIC immediately arranged to sell both banks and they were re opened the following day, October 25, under the name o f the two ac quiring institutions. Deposits of the Farmers State Bank in Kilgore were assumed by The First National Bank of Valen tine, located 22 miles east on Hwy. 20 in extreme north central Nebras ka. The Valentine bank assumed about $5.3 million in 1,700 accounts and agreed to pay FDIC a premium of $51,000. The approximately $9.9 million deposits in 1,900 deposit accounts at The Bank of Cody were assumed by The Guardian State Bank of Alli ance. Cody is 15 miles further west of Kilgore on Hwy. 20 and Alliance is about 100 miles southwest. Guar dian State paid FDIC a premium of $303,000. In each case, the assuming bank will purchase the failed bank’s in stallment loans and certain other as sets. FDIC advanced cash of $4.2 million in the Farmers State closing and kept assets with a book value of about $4.8 million. A t Cody, FDIC advanced cash of $8.1 million and kept assets of approximately $9.2 million. NORFOLK: Bruce Lemon is resign ing as senior vice president of Norwest Bank Norfolk, N.A., to become president of the Farmers & Mer chants Bank in Colby, Kan., which has $75 million in assets. Mr. Lemon began his banking career with Norwest Bank in Sioux Falls nearly 16 years ago and has been in Norfolk the past three and one-half years. TRADE EQUIPMENT What do you need? What have you to trade? Call 308/384-5995 BANKERS ELECTRONIC EQUIP. INC. 380 No. Walnut Grand Island, Ne. 68801 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OM AHA: Lyle D. Knudson has joined the staff o f Norwest Bank Omaha as vice president and man ager of the agricultural banking de partment. He served six years with Norwest Bank Hastings and joined Bank of Doniphan in 1979. M ost re cently he was vice president and manager of the correspondent bank ing agricultural credit division of Norwest Bank Minneapolis, N.A., Minn. Minnesota News BOYD: The State Bank of Boyd was closed October 24 by Michael Hatch, Minnesota Commissioner of Com merce, and the FDIC was named re ceiver. FDIC announced the same date that deposit liabilities of State Bank had been assumed by State Bank of Madison, located about 18 miles further west in extreme west ern Minnesota. The bank reopened the following day October 25, as a branch of State Bank of Madison, which assumed about $5.9 million deposits in 2,200 deposit accounts, including $350,000 (six percent) in deposits placed by deposit brokers. A premium of $226,000 was paid by the Madison bank, which also will purchase the failed bank’s install ment loans and certain other assets. FDIC advanced cash of $4.5 million and retained assets with a book value of approximately $4.9 million. Mr. Hatch said, “ The bank failed because of a combination of many factors including poor lending prac tices, excessive overhead costs, and a weakened farm economy.” He noted that the condition is not repre sentative of other banks in the area. DODGE CENTER: John H. Rolf has been named president and chief operating officer of Norwest Bank Dodge Center. Previously vice presi dent of the bank, Mr. Rolf succeeds L. Kenneth Erickson who had been serving as president and CEO and who has accepted a position as client executive for western North Dakota in Norwest’s Financial Institutions Group. Edgar M. Morsman, Jr. has been named CEO of the Dodge Cen ter bank. He is president of Norwest Bank Rochester and will continue as president in that position. Member, F.D.I.C. South Dakota News HURON: Farmers & Merchants Bank has elected Craig W. Cobb as controller, according to Bruce L. Odson, president. Mr. Cobb previously was cashier of the Norwest Bank in Luvurne, Minn. North Dakota News BISM ARCK: L. Kenneth Erickson, previously president and CEO of Norwest Bank Dodge Center, Minn., has been named client executive for western North Dakota in Norwest’s Financial Institutions Group. Mr. Erickson, who will be headquartered in Bismarck, has served as president in Dodge Center since 1980. Com e to the quality investment specialists in Nebraska and Iowa. T a T ] e ’re your * * best authorities for bond portfolio m anagem ent recommendations. Our quality is your key to success. Jeff Goble kl Dave Dickens Investment Banking Division UN ITED MISSOURI BANK Member FD.C Q f 1 ^ ^ Q t y 10th and Grand o P.O. Box 226 Kansas City, Missouri 64141 (816) 556-7200 4 BANK SALES AND PURCHASES EDDIE A. WOLF Eddie Wolf Bank Sales 7202 Maple Drive, Des Moines, la. 50322 Phone: 515/278-2271 POSITION AVAILABLE SENIOR VICE PRESIDENT— The individual will supervise all loan departments. Requires Bachelor’s degree plus minimum five years’ lending experience. Salary commen surate with experience plus excellent benefits. Excellent career opportunity. Contact: Steve Afdahl, President Hawkeye Bank and Trust, P.O. Box 4068, Spencer, Iowa, 51301. Member Hawkeye Bancorporatlon. Phone 712/262-1940._______________________________________ (PA) CEO W A N TED — $10 million rural bank in Marion county Il linois. Must be strong in ag lending and documentation. Good salary and benefits. Write file W CF, c/o North western Banker.___________________________________ (PA) AQ LOAN O FFICER — with three to four years banking ex perience. Must be familiar with microcomputers, cash flow, and documentation. Please send resume and salary requirements to: Clair Hatfield, EVP, Corn Belt State Bank, Box N, Correctionville, IA 51016. (PA) Positions Available CREDIT A N A LY S T— $15MM Minnesota bank seeking experienced credit analyst with agricultural loan ex perience. Commercial and real estate lending benefi cial. To $30,000 + . VP— $40MM Iowa bank is looking for a strong #2 per son with 5 or more years of well rounded ag banking experience with emphasis in ag loans, bank regula tions and operations. To $40,000 + . Your inquiries and resumes are completely confiden tial. Fees paid by employers. Call or write: Bankers Available CEO with 10 years commercial lending experience in $60 million bank. Graduate of A BA commercial lending school and working knowledge of current banking practices. CEO, 45, now serving as president of $60 million bank in metro area. Heads loan committee, and directs assetliability management. Twenty years banking experience. TO P references. COMMERCIAL LENDER, 38, a results-oriented profes sional with 17 years of diversified commercial lending and financial management experience. Extensive knowledge of credit analysis, loan administration, workout and loss control - and asset/liability management. COMMERCIAL LENDER, 40, now responsible for commer cial, agricultural and real estate lending in $80 million bank. College graduate with additional degrees from ABA commercial lending school and ISU ag lending school. OF FERS 14 years intensive banking experience. COMMERCIAL LENDER, 37, now with $300 million bank; five years' experience in large bank environment. Detailed knowledge of commercial and agricultural leasing. Good people skills, as well as both credit and operations. Linda 515/394-5827 Jean 515/263-9598 (T/W/F) New Hampton, la. 50659 712/7793567 (M/TH) I M assena, Iowa 50853 3 C J F IG4REERS, INC. INTERNATIONAL BANKER, 45, with 12 years’ experience in large bank environment. Extensive commercial loan operations background. College graduate with degree in banking and finance from NYU. INVESTM ENT O FFICER, 27, with MBA in finance. Now serving as investment services officer in major metro bank. Honor student. SECO ND OFFICER for north central Iowa bank. Experi enced in agricultural and commercial lending. Responsi bilities include loan workout, documentation and collec tions. Salary commensurate with experience. Send resume to file WCH, c/o Northwestern Banker. (PA) TR U ST O FFICER with college degree in accounting. Ex perienced in preparation of annual reports, court reports, fiduciary returns, monthly cash flows. Responsibility in cludes employee profit sharing plans, trusts, estates, and conservatorships. AO LENDER— Position available for individual with ag lending background in $65 million bank in Grafton, ND. Ap plicant should have minimum of three to five years ag len ding experience and strong business development skills. Send resume to: President, Norwest Bank Grafton, N.A., P.O. Box 580, Grafton, ND 58237._____________________(PA) NUMBER TW O , 38, with eleven years ag and business loan experience in banks of $50 million. Currently senior member of three man loan committee. BANK EXAMINER, 32, with ten years’ experience. College graduate with major in economics and marketing. TOP references. Independently owned $18 million bank inexcellent farm ing area has opening for person with 1-3 years AG-LENDING or related experience. Opportunity to work and live within one hour drive of Minneapolis. Write or call “T y ” Knoff, First National Bank, Cokato, MN.55321.Phone: 612/286-2161._______________________________________ (PA) IN STALLM ENT MANAGER, 28, with 3 years’ college and five years managing $4 million portfolio of consumer, stu dent and floor plan loans in community bank. AG LENDER, 34, with over 10 years’ experience and col lege degree In economics. Currently in charge of $11 million ag loan portfolio. Experienced in ag, commercial, real estate, consumer and student loans. Graduate of ABA Advanced Ag Credit School. NEW POSITION in $33 million bank. Senior Vice President responsible for $23 million portfolio. Town of 10,000 in south central Colorado. Send resume to file WCI, c/o Northwestern Banker. (PA) We have many other applicants. Call or write Malcolm Freeland or Cy Kirk at Freeland Financial Service, Inc., 1010 Equitable Building, Des Moines, Iowa 50309. Phone 515/282-6462. Employer pays reasonable fee. D O N -^ C H O O L E R In AND i ASSOCIATES WANT TO BUY "Successful Banking is Quality Personnel" If you would like to be informed of positions as they become available and if you are interested in chang ing your present position, send your resume or phone Don Schooler, 417-882-2265, 2506 Eaat Meadow, Springfield, Missouri 65804. Information on you will be kept confidential until you are inter ested in a specific position. READER-SORTER with diskette capture capabilities com patible with an IBM System 34. Contact Joseph R. Lyman, President, Sheridan National Bank. Wyo. Phone: 307/672-0705. (WTB) FOR SALE Eighteen years of banking serving as President of rural and metropolitan banks enables me to match you, technically and personally, with the right bank ing environment. POSITIONS CURRENTLY AVAILABLE Missouri, Iowa Oklahoma, Kansas, Arkansas, Illinois, and Nebraska IBM 5120 COMPUTER AND PRINTER. Contact: The Home Bank, Elwood, NE. Phone: 308/785-2530. (FS) Estate Appraisals POSITIONS AVAILABLE CASHIER for a $50mm bank in nice town close to city ............................................................. to $25,000 Purchase of Collections SENIOR LENDER •$25MM rural bank affiliated with major holding company. Overall management experience with emphasis on Agrilending. Will become #2 within one year. ..............................................................................................$35K VICE PRESIDENT O F OPERATIONS, $320mm metro b a n k ...................................... $50,000-$60,000 Sale of Rare Coins EXECUTIVE VICE PRESIDENT, $10mm bank in country setting............................. $35,000 Reliable and respeeted service for over 20 years CEO - Southern Missouri bank of $25MM. Requires strong agriloan and administrative experience. Small community. ..............................................................................................$38 K PRESIDENT, for a $30mm bank in town 45 minutes from c it y .....................................................to$45,000 EXECUTIVE VICE PRESIDENT, $40mm country ba nk ................................................................. $40,000 EXECUTIVE VICE PRESIDENT, $45mm bank, ex cellent location .............................. $40,000-$50,000 #2 MAN for $10mm bank, 2,500 population.......... .......................................................... $25,000-$30,000 SENIOR LOAN OFFICER, $60mm bank, 12,000 population ...................................... $35,000-$40,000 AG LENDER, $95mm bank, 30,000 population . . . . ..................................................................... to $35,000 AGRILOAN - handle majority of Ag and some Instai. credits for $20MM community bank. Prefer degree. . .$24K l sed by bankers throughout the midwest COMMERCIAL LENDER - suburban bank of $60MM located in large metro area. Position demands ability to generate new business and good analytical skills... ,$30K Ben E. Marlenee Coins SECOND OFFICER - medium size community bank. Prefer Agriloan and Operations background. Excellent recrea tional facilities nearby...................................................... $36K 913 Locust Des Moines, Iowa 50309 515-243-8064 Additional opportunities available in midwestern states. TOM HAGAN & ASSOCIATES 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970” Vol. 13 No. 29 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306 Fif teenth 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
@FedFRASER