Blackfeet National to get boost from holding company

Blackfeet National Bank of Browning, Mont., will strengthen its financial foundation by becoming a part of the Native American Bancorporation (NAB). The holding company plans to recapitalize Blackfeet National Bank with $20 million and turn the community bank into a nationwide lender.

Blackfeet

NAB is a holding company formed in 1998 by a small group of Indian tribes and Alaska Native corporations. The holding company, which is in the process of gaining a charter from the Federal Reserve, was established to facilitate the proliferation of banking services in predominantly Indian areas. Its main office is being established in Denver. John H. Beirise is president and CEO.

Blackfeet National Bank, opened in 1987, was the first bank established by a Native American Tribe on a reservation. The bank was chartered four years after the only bank serving the Browning community closed.

After the acquisition is complete, which is expected this spring, the bank will change its name to Native American National Bank. The bank, which has capital of $1.1 million, currently has $10.6 million in net loans, and $16.7 million in deposits.

Beirise said the business plan calls for the bank to establish offices all over the country.

"This is a momentous event for all of Indian Country," said Tex Hall, chairman of NAB and chairman of the Three Affiliate Tribes (Mandan, Hidatsa and Arikara Nation) in Fort Berthold, N.D. "It is the largest financial opportunity ever presented to Tribal Nations. Our merger with Blackfeet National Bank will be a significant boost to our mission of creating economic power through the pooling of resources."

"The financial landscape is changing in Indian Country and we understand how leveraging a bank with a small amount of capital into a larger institution that will be a specialty lender in Indian Country will better meet the growing needs of our community," said Leo M. Kennerly, chairman of the Economic Development Committee of the Blackfeet Tribe. "Blackfeet National Bank has been an effective provider of banking services to the people of Browning. The merger with NAB will assure the future of banking in Browning aod provide expanded services to the community. NAB will also play a leadership role in improving econom development activities throughout Indian Country."

In 1999, Blackfeet National Bank reported return on assets of 0.29 percent and return on equity of 3.38 percent. Through the first three quarters of 2000, the bank reported ROA of -3.67 percent and ROE of -48.44 percent.