Application of Southern Hills Bank of Edgemont

An analysis of this case must begin with words of SDCL 51-20-4: “No branch bank shall be established in a municipality of less than three thousand population where there is an existing national or state bank regularly transacting banking business The clear policy stated by the legislature is that while creation of branch banks is desirable in large towns, it is neither desirable nor justifiable in small communities (like Custer) where one or more banks are already located.

Because of this policy, the focus of this court’s inquiry should be on whether Southern Hills Bank intends to make a bona…