Regulator clarifies strength of Wyoming bank

Northwestern Financial Review, May 15-May 31, 2005

As an investigation by federal regulators and law enforcement agencies continues into a former official with the Bank of Jackson Hole, Wyoming, the state's top banking regulator issued a statement to reassure the public about the bank's strength.

"I have confidence with the present board of directors and senior management of the bank," State Banking Commissioner Jeff Vogel said in a statement his office issued in February. "Chairman and CEO Robert Biolchini, President Jeff Fuechsel and Chief Financial Officer Rachel Harshman along with the other professionals at the bank have been helpful over the last several months and have implemented all examiner recommendations ahead of schedule. The bank remains sound and has a good understanding of the financial needs and business fluctuations in the Jackson community. There are no supervisory concerns regarding the safe and sound operation of the bank at this time."

The division of banking in the Department of Audit for the state of Wyoming turned up irregularities during an examination of the bank last August. Edwin Fisher, who was chairman and CEO of the bank, left the employment of the bank following the exam. A local newspaper reported that a bank client filed a lawsuit in January over transactions involving Fisher when he was at the bank.

Vogel said that as a result of the media attention, his department has received inquiries about the condition of the bank. He issued the statement on February 4 in order to set the record straight from the perspective of the state regulator's office.

"The Wyoming Division of Banking has received several inquiries regarding the financial condition of the Bank of Jackson Hole," the press release explains. "The bank continues to be profitable, well capitalized, and well managed. The bank's present capital level remains strong and exceeds that of most banks operating in Wyoming."

The press released cited year-end figures for 2004 that show a capital to assets ratio of 9.89 percent. The Department said the bank's peer average as 9.35 percent and the state average was 9.30 percent. "The bank is operating in a safe and sound manner," the release said.

The $271 million bank, the fourth largest in the state, reported net income for 2004 of $781,000 compared to $3.2 million the year before. At June 30, 2004, the bank was reporting year-to-date net income of $1.5 million, but by Sept. 30, that year-to-date figure was reduced to $373,000. The bank added $42 million in assets during 2004.