Bank looks to bring 'Security' to F-M

Security State Bank of North Dakota is the latest rural bank to take a run at the Fargo-Moorhead financial market.

Chartered in Hannaford, N.D., Security State Bank of North Dakota wants to establish a banking branch at 3000 25th St. S. in Fargo.

Tom Watson, president of Security State Bank of North Dakota, said his board of directors has asked he not comment on the move into Fargo until the bank wins regulatory approval.

Security State Bank of North Dakota needs state approval to establish a branch in Fargo. Its application is before the North Dakota State Banking Board Thursday in Bismarck, according to Timothy J. Karsky, commissioner of the North Dakota Department of Financial Institutions.

"They're really branching out," Karsky said of Security State Bank of North Dakota. "They are a bank on the move and they are trying to grow the franchise. They think they've done a good job with what they have and that they can continue to do that in Fargo."

According to filings with the state, the bank intends to operate under the name Vision Bank. Bank officials anticipate opening the branch later this month. Watson said they are assembling a staff to open the new location.

Officials at other local banks aren't surprised to see Security State Bank of North Dakota eyeing the Fargo-Moorhead market.

"Certainly it's the trend for rural banks to get into a major market for growth opportunities," said Mary Johnson, president of Union State Bank of Fargo. The local, investor-owned bank, with four Fargo locations and $27 million in deposits, entered the Fargo market 30 years ago with the opening of West Acres.

"It's interesting to watch all the coming and going in the market -- mostly coming. And we'll probably see that trend for a while as those banks need to use their capital somewhere."

Other banks founded outside Fargo-Moorhead but operating in this market include: Ramsey National Bank and Trust, out of Devils Lake, N.D.; State Bank of Hawley (Minn.); Western State Bank, also of Devils Lake; Choice Financial in West Fargo, allied with a group of rural North Dakota banks; and Northwestern State Bank in Moorhead, which has its home in Ulen, Minn. BNC Bank of North Dakota, out of Bismarck, recently closed its Fargo location after an attempt to establish itself here.

"There has been so many new banks entering the Fargo-Moorhead and West Fargo market the last six or seven years -- it's truly amazing," said Steve Worwa, president and chief executive officer of American Federal Bank of Fargo-Moorhead. "We have our own target market, so we don't spend a lot of time wondering what everybody else is going to do."

American Federal, with $45 million in deposits locally, focuses on long-term customer relationships, Worwa said. "If we do what we do well, we have a customer for life. But I guess if we don't do it well, somebody else is going to get that business. Fargo-Moorhead is an extraordinarily competitive banking market."

Security State Bank of North Dakota currently has operations in eight North Dakota communities: Valley City, Jamestown, Hannaford, Cooperstown, Carrington, New Rockford, Wimbledon and Bowdon. The bank has $192 million in assets.

Established in 1927 by A. C. Brown of Hannaford, the bank continues to be owned by the Brown family and employees.

Readers can reach Forum Business Editor Gerry Gilmour at (701) 241-5560