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Vol. 16 No. 24 Des Moines, Iowa A P ositive A pproach to W orkouts for loan of you have are acceptable. Ask your ficers, workout situations do attorney to perform this task. 4. Prepare a workout plan. Mr. arise and must be dealt with. In a copyrighted article in a recent issue Nostrand says it should include can of Robert Morris A ssociates' Jour- dor, frankness, and honesty. “ D on’t *nal o f Commercial Bank Lending, He and don’t bluff,” he warns. 5. Deal with the immediate prob Peter F. Nostrand provides a list of guidelines designed to help loan offi lems. “ If you do not eventually cers approach a workout positively acknowledge nonpayment of in and come out of it relatively un terest and principal, you set a prece scathed. Mr. Nostrand is an execu dent for not making ‘failure to pay’ tive vice president, United Virginia an event o f default,” he notes. 6. Play fairly. Courts are increas Bankshares, In c., W ashington, D.C., and an associate in R M A ’s ingly demanding that in workout situations banks act with a sense of Chesapeake Chapter. Entitled, “ A Positive Approach fair play. “ There’s no better guide to W orkouts,” Mr. Nostrand’s arti here than common sense — bounced cle contains nine guidelines which he o ff your workout team members,” hopes “ ... will assist in bringing Mr. Nostrand continues. 7. Accentuate ways to keep the about happy endings.” borrower cooperative, not com ba They are: 1. Recognize the signs. Realize tive. Liquidating accounts receiv when a situation is a workout. D on’t able with the borrower’s help pro wait until someone points a gun at bably will net about two-thirds of you or passes you a threatening book value, plus or minus, says Mr. note. A workout is like a cold. You Nostrand. W ithout the borrower, can have a mild case or a severe case. Hquidating will net one-third. You The important point is to know the can be tough but fair and coopera tive at the same time. signs of illness and treat them. 8. Remember to look at the work , 2. Gather a team. If you have more than a mild affliction, gather a out as the borrower sees it. “ This team, Mr. Nostrand emphasizes. In issue of self-esteem is terribly impor fact, he says, “ D o not, repeat, do not tant,” Mr. Nostrand notes. D o not enter into any sort of major workout escalate too quickly, forcing the other side into an irreversible posi , alone.” 3. Verify the adequacy and intetion. Leave the borrower — and grity o f the bank’ s documents. yourself — back doors whenever D on’t assume the documents that feasible. U n fortu nately https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 28,1987 9. A void bankruptcy — usually. The bankruptcy code exists to pro tect the borrower, not the bank. However, Mr. Nostrand says, bank ruptcy may be a desirable outcome when the borrower is unwilhng or in capable o f deaHng with his problem. “ D on’t let your sense o f pride inter fere with the value o f the dollar,” ad monishes Mr. Nostrand, adding that, even with a sense of fair play but toughness, our emotions can cloud our judgm ent. In conclusion, Mr. Nostrand re minds lenders in a workout situation to “ ... rely on your team, stay smart, don’t take the situation too per sonally, and don’t trip over a dollar to pick up a dim e.” □ Status of H.R. 3030 It appeared late last week that H.R. 3030, the Farm Credit System rescue bill whose Title III would authorize a secondary market for farm real estate m ortgages, is gain ing support and a broadening o f bi partisan interest. This follows two weeks of adverse reaction from the Secretary of the Treasury and the House Energy and Commerce com mittee chairman, both of whom op pose the secondary market feature. The House banking committee has scheduled a hearing September 30 and a House floor vote has been scheduled for October 7. In the Senate, the Agricultural Credit subcommittee is expected to 2 Norwest Bank Des Moines, N.A. NORWEST BANKS Call (515) 245-3131 or toll-free (800) 362-2514 Member FDIC T e a m w o rk : on e o f th e re a s o n s w e ’re f ir s t in Iow a. " Tom Quinlin Jay Nichols clear its similar bill favorably by the end o f this week and send it along to the full Senate Banking Committee. Iowa News Clair J. Lensing, president, Farm ers State Bank, Marion, was in stalled as president o f the Iowa Bankers Association on Sept. 22 at the IB A Convention. Donald E. Snyder, president, Manufacturers Bank & Trust, Forest City, was in stalled as president-elect. Mr. Lens ing succeeds Russell Howard, chair man, Mahaska Investm ent Com pany, Oskaloosa. Installed as new IB A treasurer was Thomas B. Gronstal, president, Carroll County State Bank, Carroll. He succeeds Fred W. Hagemann, president, State Bank of W averly. * * * W illiam R. Bernau has subm itted to G ov. Terry Branstad his resigna tion as superintendent o f banking. Mr. Bernau said he feels he has ac com plished the principal goals he set for him self when he assumed the duty in January, 1986. Mr. Bernau stated he wishes to return to the management o f his banks. He lives in Crawfordsville, where he is presi dent and CEO o f Peoples Savings Bank. The Governor hopes to have a new superintendent named by midOctober. The names o f at least five presidents o f state-chartered banks have been subm itted at this time. State law requires that the superin tendent be from an Iowa banking in stitution to insure that a profes sional banker heads that division of state government. * * * The IB A will present a Fall A g Update on Oct. 26 at the University Park H oliday Inn. Registration/continental breakfast is at 8:00 a.m. with program s from 9:00 to 5:00. The Iowa Cattlemen’s A ssoc, will sponsor a reception from 5:30 to RYAN AUCTION CO., INC. MNB Correspondent Banker Together We Can Accom plish Great Things Call 319-398-4320 or toll free 1-800-332-5991 Strength of Eastern Merchants National Bank Member F D I C https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES M OINES: Thomas K. Grove has been appointed vice president of investm ents at Banks o f Iowa, Inc. He m ost recently was vice presi dent and manager o f the investm ent® division o f Bankers Trust Company, Des M oines. Nebraska News in A BANKS OF IOWA BANK • The Nebraska Bankers Associa tion will sponsor “ Becom ing a Bet ter Bank Spokesperson,’’ a confer ence at the Kearney H oliday Inn on Oct. 14. R egistration/continental# breakfast is at 8:30 and the program runs from 9:00 till 4:00. Featured speaker is Dr. Thomas W . Faranda. Advance registration is $65 and in cludes breakfast and lunch; after# Oct. 7 fee is $90. Register through the N BA office. 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. C all 1-800-362-1688 o r 515/245-2424. | ow a ^ Cedar Rapids. Iowa 52401 Decorah, Iowa 52101 Farm Equipment Specialist Appraisals & Auctions Call Dale Ryan 319-382-8648 6:30. On Oct. 27 the Cattlemen’s A ssoc, will present “ Creative Cattle Financing: The Com petitive E dge.’ f Registration/breakfast is at 9:00w a.m., the program begins at 9:30, and the last session is at 2:00. Fee for the ag update is $100 for mem bers, $125 for subscribers and $150^ for non-members; fee for the cattle financing program is $25, or $20 ad ditional if attending the update. Fees include breakfasts and lun cheons. Contact the IB A to register^ B ankers Trust Des Moines, IA M em ber FDIC Donald H. Jordahl Vice President Commentary: Concise, insightful information on the changing banking environment. New legis lation, changing reg ulations, economic conditions and current trends offer a fresh, analytical viewpoint. FINANCIAL REVIEW Financial Review: Detailed, timely data op the top bank holding cCJpanies in 17 states; provides a current prospective on their economic soundness. « Bank Pricing Data: Monthly analysis of banks and bank holding company sales. Com pares the actual month’s s: s (control sales) to the market of the larger BHCos (publicly traded^ stocks) ^ Closed Banks: Outlines the closing of banks across the country and provides detailed infor mation on the FDIC’s actions. ANNOUNCED Acquisitions, Mergers and Reorganizations: These columns proclaim deals that have recently been publicly acknowl-^, e ' 'ed. Pending and Action on applications: The Pend ing category outlines individual sale transactions. Its comparative index compares each transaction to the last 90-day transactions, for an indepth analysis. The Action section focuses on the final Federal Reserve Board determination on the proposal. BANKING COMPANY REPORT published by PROFESSIONAL BANKING CONSULTANTS 2 BRUSH CREEK BOULEVARD SUITE 100 KANSAS CITY, MISSOURI 64112 https://fraser.stlouisfed.org For a free 3 month trial subscription call us now! Federal Reserve Bank of St. Louis (816)753-7440 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IOWA BANKERS PROBLEMS WITH YOUR BANK’S BOND? ARE YOUR UNDERWRITERS DEMANDS EXCESSIVE? HAVE YOUR PREMIUMS SKYROCKETED? We have been solving Bankers bonding problems for over 75 years . . . AND AT THE LOWEST POSSIBLE PREMIUM! CALL OR WRITE IOWA BANKERS INSURANCE AND SERVICES, INC. 104 EAST LOCUST STREET DES MOINES, IOWA 50308 1-800-532-1423 or (515) 286-4344 KANSAS BANKERS SURETY COMPANY P.O. BOX 1654 • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOPEKA, KANSAS 66601 (913) 234-2631 SOUTH DAKOTA BANKERS PROBLEMS WITH YOUR BANK’S BOND? AREYOUR UNDERWRITERS DEMANDS EXCESSIVE? HA VE YOUR PREMIUMS SKYROCKETED? Are you FORCED to write one type of insurance with a company at a higher premium, just so they w ill write another type of policy for you? IF SO... PLEASE CONSIDER THIS We have been solving Bankers bonding problems for over 75 years . . . AND AT THE LOWEST POSSIBLE PREMIUM CALL OR WRITE KANSAS BANKERS SURETY COMPANY P.O. BOX 1654 TOPEKA, KANSAS 66601 Î? (913) 234-2631 E R V I C https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OWNEP BY BANKERS - SERVING BANKERS 3 FirsTier Correspondent Services More of what it takes to serve you well. F irs T ie r B an ks Lincoln FirsTier Bank, N.A., Lincoln and FirsTier Bank, N.A., Omaha, Members FDIC OM AH A: Am ong recent appoint ments at FirsTier Bank Omaha was the naming o f Richard G. Martin and Judd F. W agner to vice presi• dents. Mr. M artin has been with the bank since 1979 and is a trust employee benefit adm inistrator III in the estate and trust division. Mr. W agner also holds this title and has • been with the bank since 1962. Minnesota News The Twin Cities Chapter o f the • B A I will hold its second regular din ner m eeting o f the 1987-88 season on Oct. 15 at the Normandy M otor Inn in Minneapolis. Social hour is at 5:30 and dinner at 6:30. A fter dinner •speaker is Fred Leung, executive director o f the Upper M idwest A uto mated Clearing House. Newly elected B A I officers eire: Thomas Freed, Nationed City Bank • o f Minneapolis, president; Kathy W elle, M arquette Bank University, vice president; Susan Scheerer, First Bank System, treasurer, and Chris topher Knips, Commercial State • Bank, secretary. BLOOM INGTON: George E. Ruth has been named senior vice presi dent o f M etro Bank Financial Ser0 vices, Inc. He will have responsibili ty for credit adm inistration o f all of the M etroBanks and affiliates. He previously spent four years as vice president in charge o f commercial ^ lending at Signal Bank. He is also a lead instructor for com m ercial lend ing schools in Minnesota, Iowa, Kansas and Nebraska. • Colorado News DEN VER: A celebration o f the 125th anniversary o f Colorado Na- • Omaha A Meeting O f The Minds. At Security National Bank, our minds are on meeting all your Correspondent Banking and Investment needs. We’re Security for you! 1 Ü W ilm a Weeks Richard Ktmz Correspondent Services Officer Investment Representative 712 - 2 7 7 -6 7 6 9 SECURITY N A TIO N A L BAN K IN SIOUX CITY, IOWA. MEMBER F.D.I.C. tional Banks will be held on Oct. 1 at The Colorado National Bank o f Den ver. DENVER: Rodney L. Brethower has been elected president o f Central Bank at Centennial, N .A. He has 24 years o f banking experience, and will retain his current position as president o f Central Bank o f Chatfield. Montana News The Montana Bankers A ssocia tion 1987 Legislative M eetings will be held at eight locations during Oc tober. The fee o f $30 covers recep tion and dinner. Reception is at 6:00 p.m ., dinner at 7:00 and program at 8:30, with adjournment at about BANKING 712 - 2 7 7-6 522 FOR SA LE RECONDITIONED BRANDT Coin Sorters-Counters BRANDT Currency Counters New Warranty 402-571-5577 9:00. Dates and locations are: Oct. 1—Heritage Inn, Great Falls (Area 1 & 9); O ct. 5—E lk's Club, W olf Point (Area 4); Oct. 6—M iles City Club, Miles City (Area 2); Oct. 7—North ern Hotel, Billings (Area 8 & 10); O ct. 8 —H oliday Inn, Bozem an (Area 7); Oct. 13—Outlaw Inn, Kalispell (Area 3); Oct. 14—Shera ton Hotel, M issoula (Area 5); Oct. 15—Copper King Inn, Butte (Area 6). Register through the M B A office. 'Professional assistance in hiring and career advancement" quality service by experienced professionals 525 Merle Hay Tower Des Moines, Iowa 50310 515-276-1151 Jean Eden Sandi Gamer 515- 276-1151 515 - 832-1258 Tues / Wed / Fri Confidential. Fees Paid by Employer. COUNTONn Count on C om m erce for superior capabilities and personal attention to your correspondent banking needs. A com bination w eV e upheld for m ore than 120 years. Give us a call. 1-800-892-7100 1-800-821-2182 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (Outside Missouri) i« t Commerce Bank o f Kansas City POSITIONS AVAILABLE AG LOAN OFFICER—Well run Iowa bank looking for a n ^ exp. lender to manage department, degreed preferred....... .........................................................................To $30,000. INSTALLMENT LENDER—With excellent people skills plus several years banking exp. for well managed commu nity bank........................................................... To $25,000. EMPLOYEE BENEFIT TRUST OFFICER—Position requires both business development and technical skills with good V leadership ability. Requires 2-5 years hands on exp. JD or CPA preferred................................................... To $45,000 423-2457. (PA) EVP—$50MM Iowa bank in very nice town of 8,000 needs loan administrator to take charge of $20MM commercial loan portfolio. Require 7-10 yrs current bank exp., strong commercial and ag knowledge, documentation and mar keting skills. Salary plus bonus. Send resume to File No. WKL c/o Northwestern Banker. (PA) CREDIT ANALYST—Formal credit training & 2+ yrs. exp. Opportunity to manage the analysis function for an ag gressive bank in eastern Nebraska. Send resume to File No. WKM c/o Northwestern Banker. (PA) COL. GORDON E. TAYLOR Box 949 - Mason City, la. 50401 515/423-5242 Professional Auctioneer Real Estate Broker and Appraiser Financial Careers, Inc. B F r í JéM W & W m TRUST OFFICER EMPLOYEE BENEFIT/ CORPORATE TRUST Will be responsible for supervising and directing all aspects of the Employee Benefit/Corporate Trust section of $650M Trust Division. Requires strong technical and business development skills. We offer excellent benefits and a salary commen surate with experience. Send resume and salary re quirements in confidence to: Valley National Bank Lois Kriebs Vice President, Personnel P.O. Box 906 Des Moines, Iowa 50304 Equal Opportunity Employer EXPERIENCED COMMERCIAL LOAN OFFICER NCR 775 SINGLE POCKET PROOF MACHINE. Good sec ond unit. 308-254-5536, ext. 16. American National Bank, Sidney, NE. (FS) 1981 S 558 SINGLE POCKET PROOF ENCODER & a reworked S 558 Single Pocket Proof encoder. Good working order, under maintenance agreements. $1,250.00 your choice. Plainview National Bank 402-582-4941. (FS) USED NCR MODEL 1773 LOBBY ATM. 3 yrs. old. Contact David Woodcock, Farmers Trust & Savings Bank, Spencer, IA (712) 262-3340. (FS) Continued loan growth at Valley National Bank has created a need in the Lending Division for an experi enced Commercial Loan Officer. Valley Bank is a member of Banks of Iowa, Inc., Iowa’s largest homebased bank holding company. Our Bank’s approach to commercial banking is relationship oriented, pro fessional, and personal. We seek an individual who shares this philosophy. The ideal candidate will possess strong credit skills, management ability, and experience managing customer relationships. Valley is able to offer the right applicant a competi tive salary and benefit package, along with an op portunity for excellent career advancement. Please send current resume and salary history to: POSITIONS AVAILABLE Valley National Bank Lois Kriebs Vice President, Personnel P.O. Box 906 Des Moines, Iowa 50304 Equal Opportunity Employer SR. COMMERCIAL Outstanding position offers growth, challenge and leader ship role in large bank. This strong financial institution seeks 6-7 year lender who has supervised comm’l lenders and worked with average portfolio of $20M + . Will oversee 3 well-trained exp. lenders all of whom have new business development skills. $50K. METRO LENDER Do you want a chance at building a comm’l portfolio your way? Well-managed commercial dept, seeks proven lender who has 2+ yrs handling 150K+ loans. Will be given freedom to run and develop business in marketplace as they see fit. If you can get the quality commitments this dept, will back you 110% and give you the rewards you’re looking for. $36K. AG LENDER/FARM MGR. Looking for a bank that still has confidence in ag sector? Tremendous oppty for quality ag lender who has farm mgt knowledge and experience. Desire 3+ yr lender or farm manager who is looking to get ahead. $28K. FOR FURTHER INFORMATION CONTACT KURT ROSENCRANTS ROBERT HRLF (515) 244-4414 ALL FEES COMPANY PAID POSITIONS AVAILABLE * PRESIDENT Has the time come to broaden your career? This is a rare opty to manage a well performing $65mm bank, 1 hr. West of the Twin Cities. The beauty of this position is that the owner’s decentralized mgmt offers you the autonomy to manage this bank at your descretion. This enticing growth £ opty in a Sheshunoff “ B” rated bank requires 10+ yrs com’l banking exp, a degree and previous successful mgmt of a $30mm com’l bank. Great Relocation Package! Car! Club! Bonus! To$75K. Job#NW2277. COMMERCIAL LENDER Did your next career step just disappear? Get back on the _ ladder with this #2 commercial lending position, in this V “ hub” Northern MN city. This vibrant, profitable bank is looking for a sharp commercial lender with 2+ yrs exp.,, degree and the desire to expand your career. Step up to this exciting opportunity! To$37K. Job#NW2291. COMMERCIAL LENDER It’s time for your career to expand! This rare opportunity A requires 1 + yrs commercial lending exp., strong analyti- ^ cal and communication skills, a degree and desire to move ahead. This bank in a SE MN “ hub” city and part of a pres tigious banking group has the passing lane open for you Now! To$24K. Job #NW2292. FOR MORE INFORMATION CONTACT PAUL GENTZKOW OR JAN PETERS 3636 IDS Center Minneapolis, MN 55402 (612) 339-9001 £ ALL FEES COMPANY PAID POSITIONS AVAILABLE AG BANKING PERSONNEL • • • • • Specialists in ag-oriented bankers. Experts in personnel since 1968. Serving Iowa and the Midwest. Professional and confidential. Employer retained. aqri carers, inc. _J AG BANKING PERSONNEL SPECIALISTS O F IO W A .M C . 317 6th Ave, Ste. 650 Des Moines, IA 50309 Two Ruan Center/Sulte 1000, Des Moines, IA 50309 515/245-3786 Employer pays fee. ^ Please contact Lorraine Lear or Malcolm Freeland con cerning these and other Midwest banking opportunities. 515-394-5827 New Hampton, IA 50659 712-779-3567 Massena, IA 50853 COMML LOAN ■ $50MM suburban bank with excellent growth and earnings history. Handle majority of commer cial credits. Report directly to President. $38K CEO • suburban de novo bank. Experience as CEO or COO required. Strong commercial loan and business develop ment skills desired. Open LOAN REVIEW - large urban bank affiliated with major a midwestern holding company. Degree and 2-3 yrs. loan re- ^ vlew/workout experience desired. $30K TRUST OFFICER ■ medium size community bank with growing trust dept. JD preferred but not mandatory. $27K COMML LOAN -$100MM community bank. Supervise com mercial lending function. Future advancement possible. $45K Q Additional positions available in midwestern states for experienced bankers. TOM HAGAN & ASSOCIATES 2024 Swift - Box 12346 North Kansas City, MO 64116 816/474-6874 “ Serving the Banking Industry Since 1970” Vol. 16 No. 24 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $24.00 per year. Second class postage paid at Des Moines, Iowa. Address all mail subscriptions, changes of address (Form 3579), manuscripts to Northwestern Banker, 1535 Linden Digitized for St., FRASER #201, Des Moines, Iowa 50309. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0
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