Montana interstate banking law permits N.D. merger

Northwestern Financial Review, Mar 15, 2002

A new Montana law authorizing interstate banking has made life easier for Fairview Bank, Fairview, Mont. The bank had been owned by First Security Bank-West in Beulah, N.D., since 1995 but until interstate banking, the two banks were legally restricted to operate under separate charters. Now, the two banks have merged. Fairview will change its name and become a branch of the North Dakota bank.

Ken Maule, president of the Fairview branch, said the change is a step in the right direction. "We were the third-smallest bank in Montana before we were allowed to merged," said Maule. "Of course, we still had to jump through all the hoops big banks do, and that drained resources."

Maine said the banks consolidated operations for the sake of efficiency and that by merging, the bank is able to consolidate its reporting and filing requirements with the lead bank, which will free up staff to focus more on day-to-day operations.

Customers wouldn't necessarily see the changes, since most involve internal operations, noted Maule. First Security is a $62 million bank. Fairview was an $11.5 million bank. Maule said the bank will offer more services than it's been able to in the past. The bank hopes to offer debit and cash cards in the next three to six months.

Also due to the merger, the Montana branch will be able to hold inhouse loans that in the past it had to sell. This, too, will add to employee efficiency, said Maule.