FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: First National Bank of Steamboat Springs (In Organization)
Steamboat Springs, Routt County, Colorado
Application for Federal Deposit Insurance (Bank 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 First National Bank of Steamboat Springs, a proposed new national bank to be located at 1120 South Lincoln, Suite B102, Steamboat Springs, Routt County, Colorado 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 First National Bank of Steamboat Springs 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 $3,337,520 be provided, of which not less than $1,668,760 shall be allocated to common stock and $1,668,760 to surplus;

(2) That Tier 1 Capital/Assets ratio shall not be less than 8.0 percent at the end of the third year of operation;

(3) 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;

(4) That Federal deposit insurance shall not become effective unless and until the applicant has been established as a National bank, that it has authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by appropriate Federal authorities;

(5) That the Bank shall operate within the parameters of the submitted business plan. That the Regional Director receive written notice 60 days prior to any proposed major deviations or changes from the submitted plan

(6) That until the conditional commitment herein ORDERED becomes effective, the Corporation shall have the right to alter, suspend, or withdraw the said commitment should any interim development be deemed to warrant such action; and,

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

Dated at Washington, D.C., this day of March, 2000.

By:________________________________
John M. Lane
Associate Director
Division of Supervision

FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: First National Bank of Steamboat Springs
Steamboat Springs, Colorado
Application for Federal Deposit Insurance (Bank 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 Bank Insurance Fund has been filed on behalf of First National Bank of Steamboat Springs, (Steamboat), a proposed new national bank to be located at 1120 South Lincoln, Suite B102, Steamboat Springs, Colorado.

Steamboat will be a Subchapter S Corporation. Operational focus will be as a full service community bank under a national bank charter.

For the purposes of this proposal, the investment in fixed assets is reasonable and capital is adequate. Future earnings prospects are attainable, and management is considered satisfactory. No formal objections to this application have been filed with the FDIC. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No undue risk to the Bank Insurance Fund is apparent.

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

ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION
FEDERAL DEPOSIT INSURANCE CORPORATION