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Farm Bureau, Federal Savings Bank (Proposed)

IN RE: Farm Bureau, Federal Savings Bank (Proposed)
Sparks, Washoe County, Nevada
Application for Federal Deposit Insurance (Savings Association Insurance Fund)

ORDER

The undersigned, acting under delegated authority, has fully considered all facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act relating to the application for federal deposit insurance for Farm Bureau, Federal Savings Bank (the bank), a proposed new full-service federal savings bank to be located at 2165 Green Vista Drive, Sparks, Washoe County, Nevada, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted by the bank for federal deposit insurance be, and the same hereby is, approved subject to the following conditions:

1. That beginning paid-in capital funds of not less than $40,000,000 be provided, and that a ratio of Tier 1 Leverage Capital ratio of not less than eight percent shall be maintained throughout the first three years of operation;

2. That any changes in proposed management or proposed ownership (10 percent or more of stock), including new acquisitions of or subscriptions to 10 percent or more of stock, will render this commitment null and void unless such proposal is approved by the Regional Director of the FDIC's San Francisco Regional Office (Regional Director) prior to opening of the bank;

3. That federal deposit insurance shall not become effective unless and until the applicant has been established as a federal savings bank, that it has authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by the Office of Thrift Supervision;

4. That FB BanCorp, Sparks, Nevada, a newly formed unitary thrift holding company, obtain approval from the Office of Thrift Supervision to acquire voting stock control of the bank prior to its opening;

5. That any changes or additions to the institution's board of directors necessary to fulfill the requirements of the Order issued by the Office of Thrift Supervision on April 20, 1999, shall be subject to the prior written approval of the San Francisco Regional Director;

6. That, prior to the effective date of federal deposit insurance, the institution will obtain all necessary approvals from the Office of Thrift Supervision for the proposed purchase and assumption agreement between the institution and International Bank of Commerce, Laredo, Texas;

7. That until the conditional commitment herein granted becomes effective, the FDIC shall have the right to alter, suspend or withdraw said commitment should any interim development be deemed to warrant such action; and

8. That if federal deposit insurance has not become effective within twelve months from the date of this ORDER, or unless, in the meantime, a request for an extension of time has been approved by the FDIC, the consent granted herein shall expire at the end of the said twelve-month period.

Dated at Washington, D.C. this day of July, 1999.

FEDERAL DEPOSIT INSURANCE CORPORATION

By:________________________________
Mark S. Schmidt
Associate Director
Division of Supervision


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Farm Bureau, Federal Savings Bank
Sparks, Washoe County, Nevada
Application for Federal Deposit Insurance (Savings Association Insurance Fund)

STATEMENT

Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815), an application for federal deposit insurance with membership in the Savings Association Insurance Fund has been filed on behalf of Farm Bureau, Federal Savings Bank (the bank), a proposed new federal savings bank to be located at 2165 Green Vista Drive, Sparks, Washoe County, Nevada.

The bank's sole shareholder will be FB BanCorp, a newly formed unitary thrift holding company located in Sparks, Nevada. FB BanCorp, in turn, will be owned by 21 state farm bureau federations and 19 of their subsidiary insurance companies. There are 50 state farm bureau federations, which are collectively known as The American Farm Bureau Federation (Federation). The Federation is the nation's largest farming and ranching organization, comprising approximately 8,500 agents that are employed in 2,800 county farm bureau offices. Farm Bureau offers insurance, product rebates and discounts, legislative representation, financial services, and financial management services.

The bank will, by virtue of having a federal savings bank charter, be able to exercise full banking services in all 50 states and the District of Columbia. The bank's business plan is to provide traditional deposit and loan products; however, it will be primarily nontraditional in handling customer transactions. Nominal teller or lobby services will be provided. Transactions will be conducted via direct deposit, automated teller machines, internet, telephone, or U.S. mail. The bank will offer credit cards. In the future, Farm Bureau agents may advertise the availability of these banking services and assist potential customers in establishing relationships with the bank.

For the purposes of this proposal, the investment in fixed assets is reasonable, capital is adequate, future earnings prospects are favorable, and management is considered satisfactory. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No undue risk to the Savings Association Insurance Fund is apparent.

Accordingly, based upon a careful evaluation of all available facts and information, the Associate Director, pursuant to delegated authority, has concluded that approval of the application is warranted.

ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION
FEDERAL DEPOSIT INSURANCE CORPORATION



Last Updated 03/24/2011 Legal@fdic.gov