Charter of Sec. Bank, Gillette, Matter of, No. 5292

CourtUnited States State Supreme Court of Wyoming
Writing for the CourtBefore RAPER; RAPER
Citation616 P.2d 1273
Docket NumberNo. 5292
Decision Date16 September 1980
PartiesIn the Matter of the Application for CHARTER OF SECURITY BANK, GILLETTE, Wyoming. STOCKMEN'S BANK AND TRUST COMPANY, First National Bank of Gillette, Wyoming, and First Wyoming Bank of Gillette, Wyoming, Appellants (Petitioners-Protestants), v. FINANCIAL INSTITUTIONS BOARD, State of Wyoming; Karl W. Bergner, Joseph R. Dunbar, Robert L. Ferril, Joe W. King, Homer A. Scott, Jr., Lee V. Stafford, and Joseph H. Watt, organizer-applicants for proposed "Security Bank of Gillette," Appellees(Respondents).

Page 1273

616 P.2d 1273
In the Matter of the Application for CHARTER OF SECURITY BANK, GILLETTE,
Wyoming. STOCKMEN'S BANK AND TRUST COMPANY, First National Bank of Gillette, Wyoming, and First Wyoming Bank of Gillette, Wyoming, Appellants (Petitioners-Protestants),
v.
FINANCIAL INSTITUTIONS BOARD, State of Wyoming; Karl W. Bergner, Joseph R. Dunbar, Robert L. Ferril, Joe W. King, Homer A. Scott, Jr., Lee V. Stafford, and Joseph H. Watt, organizer-applicants for proposed "Security Bank of Gillette," Appellees(Respondents).
No. 5292.
Supreme Court of Wyoming.
Sept. 16, 1980.

Page 1274

Thomas D. Roberts, Morgan & Brorby, Gillette, for appellants.

Henry A. Burgess (argued), Burgess & Davis, Sheridan; and John D. Troughton, Atty. Gen.; Peter J. Mulvaney, Deputy Atty. Gen., Civil Division; and Philip Nicholas, Asst. Atty. Gen. (argued), on briefs for appellees.

Before RAPER, C. J., and McCLINTOCK, THOMAS, ROSE and ROONEY, JJ.

RAPER, Chief Justice.

The Financial Institutions Board of the State of Wyoming (Board), after going through all the statutory procedures allowed the application of the organizers and granted, with some conditions attached, a state bank charter for the proposed Security Bank of Gillette, Gillette, Wyoming (Security). 1 The Stockmen's Bank and Trust Company, Gillette, the First National Bank of Gillette, the Wyoming National Bank of Gillette 2 and the First Wyoming Bank of Gillette (Protestants) filed a Petition for Review with the district court. The district court affirmed the Board. The issues raised by Protestants before that court, and now as appellants in this court, were and are:

"1. The Findings of Fact and Conclusions of Law as stated in the Order of the Financial Institutions Board conditionally granting a charter to the Security Bank of Gillette are not supported by substantial evidence.

"2. The Order of the Financial Institutions Board conditionally granting a charter to the Security Bank of Gillette is not in conformity with law."

We will affirm.

The findings and conclusions of the Board supply the background necessary to a disposition of this appeal:

"II.

"FINDINGS OF FACT

"1. That Gillette, Wyoming, is the county seat of Campbell County, Wyoming, and the retail and commercial service center for a large area of northeast Wyoming. Campbell County and Gillette, in particular, have experienced steady growth of population, businesses and industry as they relate to mineral and energy development, and in particular, coal, oil and uranium. Agricultural products including sheep and cattle are also important. Gillette has a present population of approximately 25,000.

"2. That the primary service area of the bank would be the area south of Interstate Highway 90 which highway constitutes a major barrier in the City of Gillette. The other existing banks are all north of Interstate Highway 90. The primary service area has experienced a general and steady growth of population and commercial businesses and this general steady growth should continue in the future.

Page 1275

"3. That the location of the bank and its primary service area south of Interstate Highway 90 would provide easy, ready, available access to the residences and commercial businesses in the primary service area. In general, the Gillette area has experienced a high demand for loans and credit. No banking institution presently exists south of Interstate Highway 90.

"4. That the Gillette economy is growing rapidly with prospects of continued growth.

"5. That the feasibility study submitted by Bickert, Browne, Coddington and Associates, Inc., indicates that Campbell County had experienced a population growth of 152.7% between the 1960 and 1970 censuses and that the population of Campbell County has doubled again since 1970. Employment has been increasing at a 21.7% rate annually and per capita income is approximately $9,096, making Campbell County the highest per capita income county in Wyoming. In addition, natural resources in the county, in particular, coal, oil, gas and uranium, are prevalent.

"6. That the evidence adduced at the hearing indicates that the Security Bank of Gillette, Gillette, Wyoming, is being formed for no other purpose than the legitimate objects contemplated by the laws of the State.

"7. That the proposed capital and surplus of the proposed Security Bank of Gillette, Gillette, Wyoming, is $1,020,000, and that a capital asset ratio of 9.9% would be projected after the third year of operations on such capital.

"8. That total deposits project a capital asset ratio of 9.9% after the third year of operation and that the future earnings projection including gross income estimates and projected operating expenses shows that the proposed bank would experience a net loss at the end of the first year of operation of $60,732; a net loss on the second year of operation in the sum of $10,700; and a net profit at the end of the third year of operation of $75,253 for a cumulative profit of $3,821 at the end of the third year of operation. The projected total deposits of the proposed Security Bank of Gillette, Gillette, Wyoming, are as follows: $3,170,000 at the end of the first year; $6,053,000 at the end of the second year; and $9,230,000 at the end of the third year of operation.

"9. That Commerce Bank Shares, Inc., would be the majority shareholder holding approximately 29,650 shares of the 30,000 shares outstanding and subscribed and would pay $1,008,100 for the shares subscribed. Commerce Bank Shares, Inc., has a present net worth of $6.3 million as of June 30, 1979, and a consolidated earnings of $900,000 annually. The two Wyoming banks owned by Commerce Bank Shares, Inc., have $73 million worth of deposits.

"10. That the proposed Security Bank of Gillette, Gillette, Wyoming, would have a board of directors consisting of seven (7) members, all of whom would be incorporators of the bank; that is, Karl W. Bergner, Joseph R. Dunbar, Robert L. Ferril, Joe W. King, Homer A. Scott, Jr., Lee V. Stafford, and Joseph H. Watt. Each of the proposed directors and incorporators is possessed of a good reputation, ability, financial standing and responsibility in their respective communities and in the State.

"11. That Robert L. Ferril is the proposed chief executive officer and is an experienced banker familiar with the management of a commercial bank.

"12. Terry Sheehan will also be a full-time officer at the proposed Security Bank of Gillette, Gillette, Wyoming, and now is employed by and manages a bank in Colstrip, Montana.

"13. That there are presently four banks in Gillette, namely, the Stockman's Bank and Trust Company, the First National Bank of Gillette, the Wyoming National Bank of Gillette, and the First Wyoming Bank of Gillette. In addition two savings and loan operate in the County of Campbell, namely, First Guaranty Savings and Loan of Gillette and Provident Federal Savings and Loan of Casper.

Page 1276

"14. That the application for authority to organize the proposed Security Bank of Gillette, Gillette, Wyoming, F.I.B. 79-2, was properly completed and filed with the Financial Institutions Board in accordance with W.S. 13-2-201, et seq.

"15. That the proposed Security Bank of Gillette, Gillette, Wyoming, has complied with all other applicable provisions of the law regarding application for a bank charter.

"III.

"CONCLUSIONS OF LAW

"1. The public need and convenience of Campbell County and Gillette will be promoted by the establishment of the proposed financial institution.

"2. That conditions in Campbell County and Gillette, Wyoming, afford a reasonable promise of successful operation of the proposed bank.

"3. That the financial institution is being formed for no other purpose than the legitimate objects contemplated by the laws of the State.

"4. That although the proposed capital and surplus are not less than the required statutory minimum that the proposed capital structure of $1,020,000 would not be adequate in light of current and prospective conditions in Gillette, Wyoming, and Campbell County, Wyoming, as adduced by the evidence. However, the Financial Institutions Board concludes that a proposed capital surplus of $1,250,000 would be adequate in light of the current and prospective conditions in the city and county and would afford the proposed bank a reasonable promise of successful operation.

"5. That the proposed officers and directors have sufficient experience, ability and standing in their respective communities and in the State to afford the bank a reasonable promise of successful operation.

"6. That the name of the proposed bank, the Security Bank of Gillette, Gillette, Wyoming, does not so closely resemble the name of any other financial institution transacting business in Campbell County so as to cause confusion between the Security Bank and any other financial institution.

"7. That the applicant has complied with all applicable provisions of law.

"8. * * * (See fn. 1 for text of this conclusion.)"

With respect to the issues, appellants argue:

"1. a. Neither the Financial Institutions Board finding of fact concerning the proposed bank's primary service area nor its finding that Interstate Highway 90 constitutes a major barrier in the City of Gillette are supported by substantial evidence.

"b. Although styled by the Financial Institutions Board as a conclusion of law (conclusion one), the Boards decision that the public need and convenience will be promoted by establishment of the proposed financial institution is in actuality a finding of fact, and is as well unsupported by substantial evidence.

"2. The decision and order of the Financial Institutions Board is not in conformity with law as it was made without the benefit of the required investigation and conclusion on the part of the state examiner as to the effect the proposed bank would have upon existing financial institutions in the community."

The legislature in 1977 created a Financial...

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1 practice notes
  • Mortgage Guaranty Ins. Corp. v. Langdon, Nos. 5127
    • United States
    • United States State Supreme Court of Wyoming
    • 2 Octubre 1981
    ...this court when reviewing the state financial board's actions in Stockmen's Bank and Trust Company v. Financial Institutions Board, Wyo., 616 P.2d 1273, 1277 "* * * The agency's decision comes to this court wearing a presumption of legality and validity, and we may not substitute our judgme......
1 cases
  • Mortgage Guaranty Ins. Corp. v. Langdon, Nos. 5127
    • United States
    • United States State Supreme Court of Wyoming
    • 2 Octubre 1981
    ...this court when reviewing the state financial board's actions in Stockmen's Bank and Trust Company v. Financial Institutions Board, Wyo., 616 P.2d 1273, 1277 "* * * The agency's decision comes to this court wearing a presumption of legality and validity, and we may not substitute our judgme......

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