Bismarck Tribune - North Dakota News - Reservation gets its first bank

Reservation gets its first bank

Jan 18, 2008 - 05:45:55 CST

By JAMES MacPHERSON/Associated Press Writer

BELCOURT - Annie Lassond opened her first-ever savings account this week.

"I never had any extra money, and there wasn't a bank," said Lassond, 45, a member of the Turtle Mountain Band of Chippewa.

Now she has money, and a bank.

Officials believe the Turtle Mountain State Bank on Turtle Mountain reservation in north central North Dakota is the first bank on a U.S. reservation to be privately owned by American Indians. Banks on other reservations are typically owned by tribes or non-Indian companies.

The Turtle Mountain State Bank is the brainchild of tribal member James Laducer, a Bismarck-area businessman and real estate developer who grew up on the reservation.

"A bank is the backbone to economic growth in any community," Laducer said. "But people wanting to do banking had to go at least 10 to 20 miles off the reservation to get to a bank."

Belcourt, the largest town on the reservation, has about 20 businesses, including a casino, grocery, a Chinese restaurant and bowling alley. It also has a community college and two weekly newspapers.

The bank is starting in a temporary prefabricated office building moved from Bismarck, with seven employees. Laducer said a new structure will be built within three years.

Dacotah Bank in Rolla, a few miles northeast of the reservation, has had a "paying and receiving" branch in Belcourt for nearly 20 years, said Val Edwards, a bank vice president.

She said the branch can cash checks and accept loan payments, but it cannot open accounts or loan money.

The new bank in Belcourt brings to four the number of banks in Rolette County, said Dan Vollmer, president of Dacotah Bank in Rolla.

"I think there is a very good chance they will do well," he said. "I think it will help the economy grow, and in the end, it will be very helpful for the whole county."

A full-service bank had been mulled for at least 30 years on the reservation, Laducer said. He joined with tribal members and business owners Phyllis Jollie and Ken L. Davis, and Bismarck banker Gerald Willer to get it started.

Laducer said he, Jollie and Davis are the bank's majority owners. He said Willer has a 2 percent stake in the business and provided guidance.

"They needed a banker in the group, obviously, to get things put together with regulators and to get things started in the right direction," said Willer, president of Kirkwood Band and Trust Co. in Bismarck.

"Most of the shopping and support has been going to towns around Belcourt because of the lack of commerce in town, including a bank," Willer said.

"There is a lot of pride up there in the fact they got a bank," he said. "With the bank, you'll probably see more businesses pop up on the reservation. "

Laducer said the bank was capitalized with $3.8 million in private money. It opened its doors Dec. 3.

Larry Mandigo, the bank's president, said the bank has had about 150 customers in its first month, and has made vehicle loans. Some home and business loans are in the works, he said.

"We're getting good, local participation," Mandigo said.

Shelby Keplin, one of the bank's tellers, said some customers have lugged in water jugs full of coins to deposit, and one man brought in a "suitcase full of money."

"One five-gallon pail of coins had $2,200," Keplin said. "Only 31 cents were pennies."

Jollie, who owns a grocery and other businesses in Belcourt, said millions of dollars is circulated on the reservation each month, but little of it stayed without a bank.

"We were lucky to have that money here for one day," Jollie said. "There was no time for it to circulate in our community."

The 2000 census put the reservation's population at about 8,300, a 17 percent increase in 10 years. Tribal members say the population has grown to more than 15,000 and has been undercounted because a number of families live in the same home.

Laducer said about 70 percent of the people who live on the reservation are unemployed.

The U.S. has about 210 minority-owned banks, including 21 that are American Indian-owned, according to the Federal Deposit Insurance Corp.

J.D. Colbert, president of the Denver-based Native American Bank, said banks owned by American Indians or tribes "is a concept within Indian Country that is very much embraced."

He said it has helped American Indians learning about finances, and has boosted home and business ownership.

Colbert's bank, which was founded in 2002, has branches in Montana and Alaska, and is owned by 26 Indian tribes, Alaska Native corporations and tribal organizations. He said the Belcourt bank likely is the only bank privately owned by American Indians.

"It's groundbreaking," he said.

Davis, one of the Belcourt bank's owners, said tribal members often had difficulty getting loans from banks off the reservation.

"The other banks all the way around us don't necessarily want to lend money over here," he said. "If a new home is built, or new business does start, they want it to be built or started in their town."

The bank's owners said financing courses are now being taught in classrooms on the reservation, beginning in elementary school. The bank will help young people on the reservation practice what they've learned, Laducer said.

"We may be the key to unlocking poverty on the reservation," he said. "I think we have all the ingredients."

Lassond gave up working as a farmer to take jobs as a bartender and store clerk on the reservation.

She gave a bank clerk a $100 bill Wednesday to start her new bank account.

"I got some extra money now - I might as well put some away and start a nest egg," she said.

Her paperwork was completed within minutes, and she beamed as she was handed her little yellow bank book.

"This is mine," she said, fighting back tears. "I'm proud of it."

News > State

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Comments

amber wrote on Mar 1, 2008 5:48 PM:

" Well actually they already had a bank at the "mall" so really its not that big of a deal.............!!!!!!!!!!!! if you wanted toyou could bakn with them and where not that far behind. "

me wrote on Jan 19, 2008 7:41 PM:

" At least it is a step in the right direction!! All of our communites could use all the economic stimulous it can get. And when people ask what about home loans and repayment, look at the situation our economy overall is in today. Because of default loans that some banks "handed out" to people that obviously did not have the long term means to make good on. I hope this bank does good and grows to a 30 million dollar or more buisness. "

lw wrote on Jan 18, 2008 8:00 PM:

" To You're All Nuts - It doesn't matter what kind of story the Tribune puts in here - there are always those that can't end their day without spewing alittle negativity into whatever the article is about. And if it has anything to do with Native Americans, the cuts just get that much deeper from the know-it-alls that think they have something important to say. I think they comment on here because no one can stand to talk to them in person. Ignore 'em. "

Lost wrote on Jan 18, 2008 7:50 PM:

" Congrats to Mr. Laducer, and Mr. Davis. I hope that everything works out for all of you. And that the relationship between Kirkwood, and the SBA, and all of you goes smooth. I hope that you all are very careful with your home loans, on native trust lands. Again Best Wishes. "

I Agree wrote on Jan 18, 2008 7:36 PM:

" At least in this situation, children's money for books, school lunches and good teachers will not be plundered or stolen . . . only the money that never gets paid back to for a loan that went to an unemployed person! "

Dakota wrote on Jan 18, 2008 5:41 PM:

" This should be very intresting. Hope somebody will be help accountable for the money. "

Your all Nuts!!!! wrote on Jan 18, 2008 5:25 PM:

" Dear Lending- See you call my writing as spout off in a self-righteous manner - You see I wished them luck on a vision that they saw and WORKED to make happen- You came on here with negativity right from the get go. Maybe it is only obvious to me- That if they put effort, work, and time into this project it wasnt just for the fun of it. My guess is they have guidelines in place that will help their community in what ever they decided was best and most needed. Once again I ask why you assume they are going to loan to folks without proper employment and no means or even intentions to pay the loan back? DID YOU ASK THE SAME QUESTION TO DAKOTA COMMUNITY BANK, WELLS FARGO, and BANK OF ND WHEN THEY OPENED THEIR DOORS----and now I add a question of who is being self-righteous, me or you? "

Lending wrote on Jan 18, 2008 4:45 PM:

" Hello, Your all Nuts!! The question you ask "Why do you care?" Is an interesting one. Isn't the idea behind the Tribune Comments section to post comments and questions? Or is it only to spout off in a self-righteous manner about how proud you are of someone. To answer your question, I really don't care. Sink or swim, it makes no difference to me. And you're right, it really is none of my business. And neither is it any of YOURS to condemn what I post in the comments section. I will post what I feel needs to be said. And I will ask the questions I would like someone to answer. Obviously you don't have any answers do you? "

Your all Nuts!!!! wrote on Jan 18, 2008 4:19 PM:

" To Lending- Why do you care- Then they will have to figure out how to make their business work- just like EVERY other business that starts. Did you want to invest in them- If you dont then I believe that IF they fall down it will be none of your business....... "What happens when this bank starts lending money to folks without proper employment and no means or even intentions to pay the loan back? " Why is it that you think they will make bad decisions on who they lend to? Did you ask the same question of Bank of North Dakota, Dakota Community, Wells Fargo when they opened their doors? "

Lending wrote on Jan 18, 2008 2:14 PM:

" What happens when this bank starts lending money to folks without proper employment and no means or even intentions to pay the loan back? How long do you think that will last?

"

Ralph wrote on Jan 18, 2008 1:52 PM:

" Thank you Malph. you answered all of my questions. isn't Dakota Community Bank out of Hebron? Isnt Dakota Bank in Minot out of Aberdeen SD? Doesn't there seem to be an actual trend towards small town banks coming to larger markets? It was just a question. Didn't mean to strike such a nerve. But I do thank you for the answers. They have brought more attention to my first statement. "

Malph wrote on Jan 18, 2008 12:32 PM:

" Answers to Ralph's questions, sentence by sentence: 1. Whether you open with 3 million, 30 million, or 300 million, you still are a viable business; just with less assets. 2. Not if your share is only 2% and your main purpose is to provide guidance. 3. You need to be realistic. Highly unlikely, improbable, and unreasonable to think a new bank hundreds of miles away, opened for the intent of serving the reservation, will ever compete with a bank in Bismarck. And on the chance it does happen, so what......with only a 2% share, there is no conflict. "

I Agree wrote on Jan 18, 2008 12:25 PM:

" I think it is great that a small town is getting another business, I live in a small town and businesses are always a welcome sight.
But the lack of a bank is not the reason for poverty, 70% unemployment is. Why do you think other parts of our state are not suffering from poverty, becuse the unemployment rate in about 5%.
If you want to get away from poverty, get a job! "

Your all Nuts!!!! wrote on Jan 18, 2008 11:33 AM:

" Congratulations- If the people find this positive for themselves and are excited- Than they should get nothing but GREAT JOB, WHAT AN ACCOMPLISHMENT, BE PROUD and CONGRATULATIONS ON GETTING IT DONE! Laducer is an upstanding citizen - a great human being. He is out for the better of mankind. He gives and gives and gives! WAY TO MAKE YOUR VISION COME TRUE! BEST OF LUCK- "

JustMe wrote on Jan 18, 2008 8:43 AM:

" I don't think the lack of a bank for the time period was the reason for poverty, could it have been the 70% unemployment rate? "

Ralph wrote on Jan 18, 2008 8:15 AM:

" How can a bank open with only 3milion somthing in assets? Wouldnt being owner in a seperate bank in ND that competes with the bank that you work for be a conflict of interest? What if Turtle Mountain bank grows and moves into Kirkwood Banks market? Is this bank FDIC insured? "

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