Mille Lacs County Times, August 1, 2002 Edition

First National expands to Gilman
Posted 8/1/02

By DAWN SLADE
Mille Lacs County Times

First National Bank of Milaca is branching out. Plans are underway and bids are going out for contractors to build a new bank in Gilman.

A group of investors has also announced plans for a new bank in Foley, which will not be affiliated with First National Bank.

The new Gilman branch will be called First National Bank of Milaca and will be managed by Hilary Tadych.

B.P. "Pete" Allen, chairman of First National Bank, has known Tadych for over 30 years. Tadych once managed the Gilman State Bank. "Iím very pleased heíll be joining us," Allen said.

In August 2001, the Rural American Bank in Gilman closed and the townspeople formed a committee to encourage another bank to start up in Gilman. According to Allen, a petition was signed with over 700 signatures of people offering their support for a new bank.

So, in March, Allen began discussions with the city council and Gilman Mayor Judy Huset.

"The city council has been very supportive of this," Allen said.

The new building will be located on County Road 5, just east of Highway 25, next to the Gilman Community Park.

The depot-style bank will be a full-service bank, complete with a drive-up window and two tellers. Lending programs will also be available at the new branch.

"We look forward to having our lending personnel working in that area, particularly in ag loans," Allen said.

The goal is to have the bank operating by Nov. 1st; however, there are some pollution cleanup issues involved. An old garage building needed to be torn down and environmental testing led to pollution cleanup, which has caused some delays.

"Weíre really excited to have them in town. The people can hardly wait for them to get here," said Huset.

Gilmanís residential population is just over 200.

Allen is pleased to start a branch in Gilman saying, "Thereís a very strong, loyal community pride in Gilman."

Falcon National Bank

On June 18, an application was made to organize a national bank in Foley. A new bank.

Falcon National Bank would not be a branch of First National Bank of Milaca.

Allen will, however, be one of the owners of the new bank in Foley. He, along with Brian Bauerly of Milaca, Gerald Bauerly of Sauk Rapids, Dennis Tim of Clear Lake, Lee Hanson of Rice, and Dr. Michael Doty of Milaca are all investing in the new bank. Centra Ventures, Inc. of St. Cloud is the holding company.

Starting a new facility in Foley will be much harder than a new branch in Gilman, according to Allen.

The law says a branch cannot be started in Foley because of the townís size. If there is a bank headquartered in a town with less than 10,000 in population, another bank cannot open a branch there. Rural American Bank-Foley/Gilman has a main office and an auto bank in Foley.

Applications through the Federal Deposit Insurance Corporation (FDIC) and the Comptroller of the Currency take much longer to get approved.

It also takes more capital - about $3 million worth.

Once approved, the new bank will be built at the corner of Wren Street and Highway 25, two blocks south of Cobornís store on the west side of Foley. Depending on the approval process, Allen said he hopes the Falcon National Bank will be open in the spring of 2003.

"Foleyís made tremendous progress with its infrastructure in town - the school, the county buildings and the residences. Itís a neat growth area," Allen said of the community.

Though itís a different bank, Allen said there will be some common directors and opportunities for inter-bank relations.

Allen admits itís unusual to have two banks starting up at once, but says, "Both projects were seen as an opportunity to provide banking services, and services of independent, locally-owned and managed banks. We feel we bring a much closer community flavor."