First Community plans to buy Ashland Bank

Northwestern Financial Review, Sep 19, 1998

Glasgow-based First Community Bancorp. Inc., the parent company of First Community Bank, bought Cheyenne Western Bank of Ashland for an undisclosed amount of cash.

The acquisition, approved by Cheyenne Western Bank shareholders on June 24, was completed Sept. 1, said Lynn Grobel, president and chairman of First Community Bancorp. and its bank.

"We're enthused about picking up a branch, where a railroad will possibly be going through and increase the economic activity there," Grobel said.

Grobel was referring to the Tongue River Railroad, which hauls coal from mines in northern Wyoming and Decker to Miles City.

The Ashland acquisition adds a fourth branch to the $110 million-asset First Community Bank, which already has offices in Culbertson, Hinsdale and Wolf Point. Cheyenne Western Bank, which has $9 million in assets, will become First Community Bank of Ashland. Susan Moos will serve as branch manager. Ashland is located in the southeastern part of Montana just outside the Northern Cheyenne Reservation. The acquisition will allow First Community Bank to boost its agriculture loan portfolio in the Ashland area. Grobel said the bank may add an agricultural lending officer in Ashland, but no other significant changes are expected at the bank, where six people work. In other news:

Shareholders of Froid Bankshares Inc., a one-bank holding company in Froid, approved merging with First Community Bancorp, Grobel said. Froid Bankshares is the parent of First State Bank of Froid, a $13 million bank in northeastern Montana. Grobel said the deal should be finalized in November.