Decisions on Bank Applications
The German American Bank
FEDERAL DEPOSIT INSURANCE CORPORATION
Re: The German American Bank
Application for Consent to Merge and Establish Four Branches
ORDER AND BASIS FOR CORPORATION APPROVAL
Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance ("FDI") Act, The German American Bank, Jasper, Dubois County, Indiana, an insured state nonmember bank with total resources of $348,138,000 and total deposits of $269,151,000 as of June 30, 2000, has filed an application for the Corporation's consent to merge under its charter and title with The Holland National Bank, Holland, Dubois County, Indiana, an insured national bank with total resources of $61,804,000 and total deposits of $50,851,000 as of June 30, 2000, and to establish the four offices of The Holland National Bank as branches of the resultant bank. Notice of the proposed transaction, in a form approved by the Corporation, has been published pursuant to the FDI Act.
A review of available information, including the Community Reinvestment Act ("CRA") Statements of the proponents, discloses no inconsistencies with the purposes of the Community Reinvestment Act. The resultant bank is expected to continue to meet the credit needs of its entire community, consistent with the safe and sound operation of the institution.
In connection with the application, the Corporation has taken into consideration the competitive effects of the proposed transaction, which would result in a 264 point increase in the Herfindahl Hirschman Index for a post-merger level in the relevant geographic market of 2,079, based on deposit figures as of June 30, 1999. The relevant geographic market includes all of Dubois County, Indiana, and portions of the contiguous counties in Indiana of Spencer, Perry, Pike and Warrick. As of June 30, 1999, nine branch offices of a large regional bank controlled the largest portion of the relevant geographic market share of deposits with $269,210,000 or 27 percent. Applicant controls the second largest market share of deposits with $252,536,000 or 25% and this market-share will increase to 30 percent post-merger.
In addition to the competitive impact of the proposed transaction, the Corporation has considered the financial and managerial resources, future prospects of the Applicant and the resultant bank; and the convenience and needs of the community to be served. Having found favorably on all statutory factors and having considered other relevant information, including reports on the competitive factors furnished by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Director of the Office of Thrift Supervision and the Attorney General of the United States, it is the Corporation's judgment that the application should be and hereby is approved.
The transaction shall not be consummated before the fifteenth calendar day following the date of this Order or later than six months after the date of this Order, unless such period is extended for good cause by the Corporation. Until the proposed transaction becomes effective, the Corporation shall have the right to alter, suspend or withdraw its approval should any interim development be deemed to warrant such action.
By Order of the Associate Director of the Division of Supervision, acting pursuant to delegated authority for the Board of Directors of the Corporation.
Dated at Washington, D.C., this day of August, 2000.
John M. Lane
Division of Supervision