The Federal Reserve Board on Tuesday gave Iowa State Bank, Hull, permission to move its headquarters to Sheldon. The Fed also said the $33.8 million-asset bank can open a branch at the site of its former headquarters.
The Fed overrode an objection by neighboring banks, which said Sheldon cannot support another financial institution. The Fed said there was no evidence to support the charge. In fact, it said competition should benefit the community.
On Monday, the Fed approved Firstar Corp.'s bid for Jacob Schmidt Co. and its St. Paul-based American Bancorp. subsidiary. The merger gives Firstar control of more than $20 billion in deposits.
The Fed rejected Community Reinvestment Act protests, noting that Milwaukee-based Firstar's lead bank received an "outstanding" rating on its most recent CRA exam.
The central bank also permitted Korea Long Term Credit Bank of Seoul to open a state-chartered branch in New York and it said Flathead Holding Company of Bigfork, in Montana, could acquire 23.4% of the voting shares of BankWest, Kalispell.