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October 3,1983 Des Moines, Iowa Vol. 12 No. 24 Bank Administration Institute Survey: Banks Pay 52% E ffective Tax Rate OMMERCIAL banks, on aver age, have an effective federal C tax rate of 52%—a far higher rate than is generally perceived—accor ding to preliminary results of a survey of the nation’s banks con ducted by Bank Administration In stitute. The preliminary findings were released September 20 in San Francisco at B A I’s National Con vention. The 52% figure results from the inclusion of two indirect taxes on banks. These indirect, or implicit, taxes relate to funds banks m ust hold on deposit with the Federal Reserve System , and to banks’ in vestm ents in tax-exempt financial instruments. “ T h ese in d ire ct ta x e s are foregone income on tax-free state and municipal obligations, which yield lower rates of return in ex change for their tax-exempt status, and foregone interest on mandatory reserves held with the Federal Reserve System ,” said Robert J. Quinlan, chairman of the Institute’s Tax Commission, who is senior vice president and director of taxes for Mellon Bank in Pittsburgh. “Our survey, for purposes of calculating effective federal tax rates, adjusted bank earnings and income taxes to reflect these implicit taxes,” Mr. Quinlan added. The 52% average effective federal tax rate does not incorporate the im pact of other taxes paid by banks, said Mr. Quinlan. These additional taxes that are not incorporated within the 52% effective federal tax rate include: payroll taxes, real estate taxes, sales and use taxes, and other state and local taxes (such as income taxes, franchise taxes, taxes on shares of corporate stock, excise taxes, and business privilege taxes). Bank reserves held with the 60% - Federal Reserve System contribute to the System ’s substantial interest earnings which, after payment of ex penses, are turned over to the U.S. Treasury Department like other forms of federal tax. In 1982, the Fed turned over $15.205 billion in earnings to the U.S. Treasury. In determining its findings, the In stitute calculated a rate of return on bank reserves based on Fed earnings actually turned over to the Treasury Department, and prorated an in dividual bank’s share of these con tributions based on its average reserve holdings for that year. B A I’s survey, mailed to more U.S. EFFECTIVE INCOME TAX RATES FOR THE BANKING INDUSTRY A 7 o/ 44<y0 46% 47 /o 46% UNDER $50 MILLION $50 to $100 MILLION 1983, Bank Administration Institute $100 to $500 MILLION $.5 to $1 BILLION 57% 49% $1 to $5 BILLION ABOVE $5 BILLION ALL BANKS Bank Asset Size CALL ON THE “PERFORMANCE TEAM fj where com m on transactions are handled uncom m only well. FIRST NATIONAL LINCOLN 13th & M Street • Lincoln, N ebraska 68501 • M em b er, F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 Norwest Bank Des Moines, N.A. Call (515) 245-3131 or toll-free (800) 362-2514 N O R W EST BANKS Member FDIC T e a m w o rk : one of the reasons w e ’re first in Iowa. m Dennis Nahnsen Tom Quinlin than 14,000 banks across the coun try in August, was undertaken to determine the effective federal tax rates for the nation’s banks as a whole based on 1982 financial data. The survey quantifies results by asset size. Banks with assets of under $50 million averaged the lowest effective tax rate—44%. Con versely, the largest banks—those w ith a sse ts greater than $5 billion—averaged an effective tax rate of more than 57%. Although the maximum federal corporate tax rate by law is 46%, inclusion of the abovementioned implicit taxes, said Mr. Quinlan, can result in adjusted tax rates exceeding this level. Preliminary survey findings are based on responses from approx im ately 2,600 banks. Final results, which are not expected to vary significantly from preliminary find ings, are expected to be available within six weeks. □ building and $350,000 of capital to go into the bank. Depositors had $17 million with Exchange Bank, none of it insured. It is hoped that sale of remaining assets will yield a 50% return minimum for them. COLESBURG: Chuck Clayton has been promoted to executive vice president. In his new position he will be responsible for overall manage ment of the bank. Mr. Clayton join ed the bank in 1980 as a loan officer and was promoted to vice president in January of 1982. WEST DES MOINES: Ownership of W est Des Moines State Bank of ficially changed hands September 28 for $14.2 million to W.B. Investors, according to David L. Miller, presi dent and chairman, who heads the investm ent group making the pur chase. The sale was announced earlier by heirs of the Hal Chase estate, but awaited regulatory ap proval. Iowa News BLOOMFIELD: Iowa Bank and Trust opened here September 28 as a state chartered, FDIC-insured bank, succeeding the private Ex change Bank that was declared in solvent by State Superintendent of Banking Tom Huston after the owners asked him to examine the bank. A.C. “Arnie” Benton, 53, and W.A. “B ill” Krause, 48, paid the Iowa department of banking $2.1 million for $1.6 million of the failed bank’s loans, $150,000 for the bank Nebraska News The Nebraska Bankers Associa tion will be conducting two addi tional teleconferences in October to continue as a series with the one be ing held October 6 at 10 locations throughout the state, (as listed in the September 26 Weekly Newslet ter.) The second in the series will be held October 13 and feature “New Account—A sset or Liability,” The third in the series will be held Oc Call Mark Christen for any correspondent service. Call toll free (800) 622-7262 Valley National Bank in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA BANK Member FDIC NORFOLK: Terry Jensen has been appointed senior vice president of the Bank of Norfolk, announced Raymond Tiedje, president. Having acquired six years of banking ex perience, Mr. Jensen m ost recently was vice president of the Norwest Agriculture Credit, Inc., in Sioux Falls. NORTH PLATTE: Dean Kugler has been named senior vice president of lending with American Security Bank, announced E. Dean Niedan, chairman. Mr. Kugler, former partowner of Springfield State Bank, has also been affiliated with a bank at Gothenberg. Minnesota News EDEN PRAIRIE: Suburban Na tional Bank has acquired through merger the Security State Bank ofSavage, with combined assets total ing $43 million. The combined banks will continue operation under the name of Suburban National Bank with the main office remaining in Eden Prairie and the Savage bank operating as the Savage Office. No personnel changes are expected. SLAYTON: Jerald Tiggelaar has been elected vice president ofNorwest Bank Slayton. Mr. Tig gelaar joins the bank from Norwest Bank W orthington where he started his banking career ten years ago, m ost recently serving as vice presi dent. Illinois News PEORIA: Robert T. Stevenson, Jr. recently was elected executive vice president of Commercial National Bank, effective December 31. Mr. Stevenson will succeed Warren M. Webber, who has been executive vice president since 1975 and is retiring at the end of the year after a 36-year career with the bank. North Dakota News Professional ... Responsive... DES M O INES, IOW A 50304 tober 20 and is entitled “Understan ding Endorsement.” James G. Walth, president of The Union Bank, Halliday, was elected president at the 1983 Convention of the Independent Community Banks of North Dakota, held September 13-16. A ssisting Mr. W alth is Vice Presi dent John Brown, executive vice president of Farmers & Merchants Bank, Wimbledon. FARGO: Paul F. Gentzkow has been appointed vice president in If you’ve been eyeing the lucrative leasing market you know what it would cost. Before you even book your first lease you could pay up to $50-150M for legal research, qualification requirements, data processing programs, promotional 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 with Collateral Financial Services. With Collateral Financial Services’ help you can add a lease program without adding to your staff. CFS takes care of the billing, collecting, taxes, marketing, documenting, and financial reports. We also provide the training you need to determine the lease contract and the amount of investment you would like to make in the lease. (You can make an investment of as little as 10% or as much as 75%.) With Participation Leasing you serve valued customers on a direct personal basis. You attract new customers. 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 own leasing program, send in the coupon below, or call CFS today TOLL FREE 1-800/328-4136. COLLATERAL F IN A N C IA L S E R V IC E S IN C . 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.” NWBN - 10/83 Name____ Institution. Address__ City--------Mail to: -Title- State. COLLATERAL FINANCIAL SERVICES INC. Supplement to Northwestern Banker Newsletter 10-3-83 Corporate Offices 444 Lafayette Road St. Paul, MN 55101 Toll free 1-800-328-4136 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Conference, Heritage Inn, Great Falls. S TA TE M E N T O F OW NERSHIP M AN AGEM ENT AND CIRCULATION (Required by 39 U.S.C. 3685) (also DMM 448.31) fiMW tOB- $Sr % S rS '» CCStltiSSgggyKfc C 0 Ü Î Ï Ï <***** 5 5 5 5 s ä 8 s£ ' I » MfW•»* « e # 1i0"* commercial loans and Keith Elliott has joined th bank’s staff as vice president and manager in real estate at Norwest Bank Fargo, N.A. Mr. Gentzkow started his banking career at Norwest Bank Fargo in 1975. Mr. Elliott previously served as statewide manager for the mort gage loan production department of Gate City Federal Savings and Loan Association in Fargo. served at banks in Fertile, Minn., and Grafton. MAND AN: David L. Egge has been appointed president of Mandan Security Bank, succeeding L.F. “Bert” Gerhart who resigned after eight years as president. Mr. Egge has served the past five-and-a-half years as president of Farmers State Bank in Evansville. Prior to that he CASPER: Wyoming National Bank of Casper recently announced the election of Lee E. Berger to senior vice president and credit ad m in istra to r. P re v io u sly w ith Norwest Bank of Helena, Mont., Mr. Berger m ost recently served as vice president of commercial lending. In his new position he will be responsi ble for the supervision of the com mercial, real estate and consumer lending operations. MANDAN: James L. Drege has been prom oted to senior vice president/loan adm inistration of Norwest Bank Mandan, N.A. He has been with the bank since 1975 working in the agriculture and com mercial loan departments. Wyoming News LINGLE: Keith W hitney has joined the Lingle State Bank as executive vice president and cashier. He previously served 21 years as ex ecutive vice president and cashier at Citizens National Bank in Torrington. Montana News ASK D O U G K EIP ER to make MNB work for you. Toll free The Montana Bankers Associa tion recently anounced the following dates for upcoming events: October 14—Loan Documenta tion Seminar, Rainbow Inn, Great Falls. November 3-4—Bank Directors 1. Title of publication — Northwestern Banker Newsletter. 2. Date of filing — September 30,1983 3. Frequency of issue — Weekly. 4. Location of known office of publication (Not printers) — 306 - 15th Street, Des Moines, Iowa 50309. 5. Location of the headquarters or general business of fices of the publishers (Not printers) — 306 - 15th Street, Des Moines, Iowa 50309. 6. Names and complete addresses of publisher and editor and managing editor — Editor and Publisher — Ben Haller, Jr., 306 - 15th Street, Des Moines, Iowa 50309. 7. Owner (If owned by a corporation, Its name and ad dress must be stated and also immediately thereunder the names and addresses of stockholders owning or holding 1 percent or more of total amount of stock. If not owned by a corporation, the names and addresses of Individual owners must be given. If owned by a partnership or other unincorporated firm, its name and address, as well as that of each individual must be given). Ben Haller, Jr., Presi dent, 306 - 15th Street, Des Moines, Iowa 50309. North western Banker, 306 - 15th Street, Des Moines, Iowa 50309. 8. Known bondholders, mortgages, and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: Ben Haller, Jr., President, 306 - 15th Street, Des Moines, Iowa 50309. 10. Extent and nature of circulation: Average No. Actual No. copies each of copies of issue during single issue nearest to preceding filing date 12 months 4,444 4,340 A. Total No. copies printed (Net Press Run) B. Paid Circulation 1. Sales through dealers and carriers, street ven NONE NONE dors and counter sales 3,913 4,017 2. Mail Subscriptions 4,017 3,913 C. Total paid circulation D. Free distribution by mail, carrier or other means— sample, complimentary, 327 327 and other free copies E. Total distribution 4,344 4,240 (Sum of C and D) F. Copies not distributed 1. Office use, leftover, unaccounted, spoiled 100 100 after printing 2. Returns from news NONE NONE agents G. Total (Sum of E, F1 and 2— should equal net press 4,340 4,444 run shown in A) 11.1 certify that the statements made by me above are cor rect and complete. BEN HALLER, JR. Editor and Publisher 12. For completion by publishers mailing at the regular rates (Section 132.121, Postal Service Manual). 39 U.S.C. 3626 provides in pertinent part: “ No person who would have been entitled to mail matter under former section 4359 of this title shall mall such matter at the rates provid ed under this subsection unless he files annually with the Postal Service a written request for permission to mail matter at such rates.” In accordance with the provisions of this statute, I here by request permission to mail the publication named in Item 1 at the phased postage rates presently authorized by 39 U.S.C. 3626. Ben Haller, Jr., Editor and Publisher An important new profit center for your bank: 1-800-332-5991 Leroy Bell or ■ Merchants A National Bank 151 M e m b e r F.D.I.C. A BANKS OF IOW A BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Contact: a co m p uterized local b lllin ^ cred it service Milt Hennick 319 291-5412 - National Bank of Waterloo 315 East 5th St. • W aterloo, IA 5 0 7 0 4 Member Federal Reserve System FDIC Ag Banking Personnel Let us help you. Call the ag lending personnel specialists without cost or obligation. Confi dential. Employers pay us to hire the best. One and two bedroom condos on Main Street in Frisco, Colorado at pre-construction prices. Call: 1-800-922-2590 Dwayne Smith Paradise Properties Box S Dillon, Colorado 80435 POSITIONS AVAILABLE CEO for $100 million Upper Midwest bank. Requires pro ven ability In running a bank of$50 million or larger ................................................................................ Salary Open. Correspondent Manager for major midwest bank. Re quires goodcreditbackground andmanagement ability .................................................................................Salary Open. Correspondent officer for large Upper Midwest Bank. Re quires at least five years commercial lending experience. Some travel involved................................... Salary to $36,000 (FS) Senior Ag Lender for $100 million Upper Midwest Bank. Requires strong background in ag lending and degree ........................................................................Salary to $40,000 Ag Lender for eastern Iowa bank located near metro area. ................................................................... .... Salary to $35,000 Linda: 515/394-5827 Jeannie: 515/263-9598 if New Hampton, la. 50659 no answer, 712/779-3567 I Massena, Iowa 50853 aqn careers, inc. J THE ORIGINAL AGRICULTURAL RECRUITER EXECUTIVE BANK RECRUITING Why Not a Higher Paying Position? Call us and lets talk about your banking career. R.E.B. & Associates Executive Search Consultants 13625 C . St., Omaha, Nebraska 68144 Phone: 402/333-8248 or 333-6604 SERVING PROFESSIONALLY Banking, Financial & Business Personnel Iowa and Nationwide CAPITAL PERSONNEL SERVICE 714 U.C.B. Building, 515-283-2545 Des Moines, Iowa 50309 <zHoCdsx a n d ¿dhioaLatzs, Bank Consultants Specializing in Bank Acquisitions P.O. Box 450 D onald 515-232-0814 405 Main Ames, Iowa 50010 E. Holder, Principal BRANCH MANAGER Progressive mid west financial Institution is seek ing a results-oriented Individual to manage full service bank branch. Responsibilities Involve operations, business development and commer cial and personal lending. Successful candidate will be degreed, have three years related manage ment experience, and possess proven abilities in bank operations, lending, marketing and customer relations. Position offers development opportunity and excellent Compensation and benefit package. If qualified, submit resume and salary history to: file VBD, c/o Northwestern Banker. (PA) BANKING If you would like to evaluate your career, my clients across the country have a wide range of needs in operations, lending, and trust. Salaries are in the $20-80,000 range. Clients pay our service charge. Call or write: Walt Heyne, Dunhill of Fayetteville Box 1570, Rogers, Arkansas 72756 Phone: 501/636-8578 BANKING OPPORTUNITIES Ideal candidate will be degreed, promotable and have worked in a bank. Are you blocked, un challenged, want a new career path? Call me and I will tell you about my clients. Phyllis S. Lynch, (402) 330-3260 QUM BERT EXECUTIVE EXCH ANGE INC. 11246 Davenport Omaha, NE 68154 CEO for Illinois community batik, located in western part of state near metro area..................................Salary $35,000 Ag Lender for north central Iowa bank located In county seat town................................................................ Salary to $35,000 Operations position for southern Iowa bank located In nice community................................................ Salary $25,000 Ag Lender for southern Minnesota bank. Requires bank lending background......................................Salary to $35,000 Junior Ag Lender for central Iowa bank. Fine opportunity to work up in ag lending division..................... Salary to $23,000 POSITION AVAILABLE A S S IS T A N T C O N T R O L L E R — Four-year accounting degree, a CPA or working toward a CPA. Would like 1 to 2 years experience with a public accounting firm. Send resume to Diane Good, National Bank of Waterloo, 100 E. Park Ave., Waterloo, IA 50704._______________________ (PA) CEO for western Illinois community bank (Sherrard, Il linois). 15 miles South of the Quad Cities. $17 million In assets. PR and ag lending required with a minimum 5 years experience! Operations and Investments are secon dary requirements. Bank has previously enjoyed good ear nings and reasonable growth, and Is well staffed. Salary commensurate with experience. Excellent opportunity for the right Individual. Resumes will remain confidential. Send resume to: D. Churchill, 1610-5th Ave., Mollno, IL. 61265.______________________________________________ (PA) OPERATIONS A PERSONNEL O FFICER for bank In N.E. IA. Some experience helpful. Chance for advancement. Please send Resume. Write file VBC, c/o Northwestern Banker. (PA) COM M ERCIAL REAL E S TA TE LENDING O FFICER — New position for 5-8 year experienced professional with strong appraising, credit analysis, new business development, and Inter-personal communication skills. Send resume and salary requirements In confidence to: F.B. Bruner, United Federal Savings Bank of Iowa, Locust at Fourth, Des Moines, Iowa 50308._____________________ ._______ (PA) SENIOR RETAIL M O R TGAGE LENDING O FFICER — New position for 5-10 year experienced RE lending professional to direct the retail mortgage lending function of the bank. Must have strong analytical and Inter-personal com munication skills. Send resume and salary requirements In confidence to: F.B. Bruner, United Federal Savings Bank of Iowa, Locust at Fourth, Des Moines, Iowa 50308. ____________________________________________________ (PA) AG LENDING O FFICER — Need person with 2-4 years ex perience In ag lending with credit, appraisal and proven new business development ability to expedite ag lending for several branches in the State. Send resume and salary requirements in confidence to: F.B. Bruner, United Federal Savings Bank of Iowa, Locust at Fourth, Des Moines, Iowa 50308. (PA) BANKERS AVAILABLE CEO with proven high performance record in community bank seeks new opportunity..........................Salary $45,000 Asset & Liability Mgr. •Nebr. - Hedging, Futures & Investment To$50K C E O -Io w a $35 Mill. Ag Bank To$50K No. 2 Person - Central Nebraska To $35K Ag Loan Officers - Nebraska & Iowa To $33K Cashier - Iowa To $27K Commercial Loan Officer - Iowa To $33K Loan Dept. Head - Coml. & Ag - Iowa To $40K Commercial Lender for central Iowa bank. Must have bank loan experience............................................. Salary to $35,000 Commercial Lenders with experience ranging from three to 20 years.................................................... Salary to $50,000 Senior Ag Lenders with experience ranging from 5 to 20 years............................................................... Salary to $40,000 Junior Ag Lenders with one to five years experience. ................... ....................................................Salary to $25,000 Senior Ag Lender for Southern Minnesota bank. Requires three or more years bank lending experience......................... ..........................................................................Salary to $35,000 We have many other positions available. Write or call Malcolm Freeland, c/o Freeland Financial Service, Inc., 1032 Carriers Bldg., Des Moines, la. 50309. Phone 515/282-6462. Employer pays reasonable fee. LESLIE LOWE Banking Specialist I recruit and place coast to coast Let our network of 450 offices seres you. 2201 5th Ave., Moline IL (309) 797-1101 FOR SALE RENT, R ENT, Single pocket NCR 775 as low as $95.00 per month. Other bank equipment available. Call Bill, Bankers Elec. Equip. 308/384-5995.___________________________ (FS) A large quantity of NCR 279-300 teller machines, running on-line through 751 concentrators or 3250 controllers. Also available are the 751 concentrators and 3250 controller and passbook printers. We will sell Individually or large quantities. PRICE BREAKS. Machines are under maintenance. Call 512-250-0794. ___________________ (FS) Twenty-two NCR 2261 on-line teller terminals. Also (5) 3250 controllers. G R EAT PRICE. Like-new machines, under maintenance. Call 512-250-0794. (FS) Three (3) NCR 7750-2200 proof machines. maintenance. Call 512-250-0794._________________ Under (FS) POSITIONS AVAILABLE AGRI LO AN— handle all agrl and some commercial credits for $30MM community bank. Degree preferred. $30K C E O — $30MM community bank with majority of credits In consumer and small commercial. Requires superior len ding and administrative skills.. $50K IN STAL.LO AN— second position in dept, of $60MM bank. Opportunity to assume #1 position. $20K CASHIER— second man position for new suburban charter. Strong operations background desired. $26K COMM ERCIAL LO AN — $250MM wholesale bank. Degree and three yrs. or more commercial lending experience re quired. $35K Administrative Officers with major banking experience. ................. ........................................ ..........Salary to $50,000 JUNIOR O FFICER — $15MM rural bank seeks officer with operations and compliance background. Opportunity to advance. $18K Installment Lenders with over five years banking ex perience........................................................ Salary to $25,000 Forward resume’ or cotact us for Information. All Inquiries held In confidence. Operations people with over five years experience............. ....................................................................... Salary to $30,000 TOM HAGAN & ASSOCIATES of Kansas City If you are considering an additional officer, we have dozens of qualified applicants listed In most Job cate gories. Write or call Malcolm Freeland c/o Freeland Finan cial Services, Inc., 1032 Carriers Bldg., Des Moines, IA 50309. Phone 515/282-6462. Employer pays reasonable fee. 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “Serving the Banking Industry Since 1970” Vol 12 No. 24 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 mall 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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