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Decisions on Bank Applications

Untitled Document

First Security Bank


RE: First Security Bank
Bozeman, Gallatin County, Montana
Application for Consent to Purchase Certain Assets and to Assume Certain Liabilities and to Relocate Branch


Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act ("FDI Act"), First Security Bank, Boseman, Gallatin County, Montana (Security), an insured state nonmember bank with total resources of $243,228,000 and total deposits of $202,977,000 as of March 31, 2001, has filed an application for the Corporation's consent to purchase certain assets and assume certain liabilities of the West Yellowstone branch of First Interstate Bank, Billings Montana, (Interstate) an insured state member bank and Bank Insurance Fund member with total assets of $1,807,234,000 and total deposits of $1,458,902,000 as of March 31, 2001. In addition, First Security Bank applies to relocate its First Security Bank - West Yellowstone office to the newly acquired First Interstate Bank, West Yellowstone location. 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 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 in the relevant geographic market, which consists of Gallatin County. The merger would result in a 14-point increase in the Herfindahl Hirschman Index for a post-merger level in the relevant geographic market of 1,595, based on deposit figures as of June 30, 2000. The post-merger deposit market share will increase nominally from 32 to 33 percent. The Corporation has considered the competitive effects; the financial and managerial resources and future prospects of the proponent banks 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 any reports on the competitive factors furnished by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, 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 10th day of October, 2001.

John M. Lane
Associate Director
Division of Supervision