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177 posts categorized "Bank/credit union news"

September 08, 2016

Rochester 'Gold Rush' spurring bank, credit union branches

I'll have a full piece on this in the weekend paper. Here's a sample with some extra data.

At a time when many banks and credit union are seeing less people using branches, Rochester is in the midst of a mini-branch building boom.

In 2009, banks had U.S. 99,550 branches, according to the Federal Deposit Insurance Corp. By the end of 2015, that national number fell to 92,997.

09-01 2construction enRochester has 46 bank branches and five credit union branches. That's a bank or credit union branch for every 2,093 of Rochester's 106,769 residents.

Rochester is the bucking the national trend when it comes to branches. The easy answer to the question of why is the Med City's robust economic growth powered by Mayo Clinic makes it attractive for banks and credit unions.

However, each institution has their own ideas about branches.

• Altra Credit Union has purchased two parcels to build future branches.

• West Bank has a large branch under construction along West Circle Drive.

• Think Mutual Bank is building a new branch in northeast Rochester. 

• La Crosse, Wis.-based Coulee Bank is transforming the former Family Service Rochester building on Civic Center Drive into a branch.

Data from Minnesota Bankers Association

• For the record, Duluth has 35 bank branches. I don't know how many credit union branches. Duluth has a population of 86,277.

• Mankato has 28 bank branches. I don't know how many credit union branches. Mankato has a population of 39,396.

A national study found most bank chains in the U.S. reduced their number of branches in 2015.

• Wells Fargo - 6,272 branches down 39 from 2014

• US Bank - 3,209 branches down 35 from 2014

• Associated Bank - 224 branches down 13 from 2014.

 

 

August 30, 2016

Credit union pays $1.3M to join Rochester's 'Financial Row'

Rochester's West Circle Drive is rapidly becoming "Financial Row" as Altra Federal Credit Union plans to build a branch to join the ranks of the many banks on that stretch of road.

The La Crosse, Wis.-based credit union bought land on the open southwest corner at West Circle Drive and 19th Street Northwest for $1.35 million on Thursday. 

Cheryl Dutton, Altra's vice president of marketing, confirmed the credit union plans to build a full-service, 4,000- to 5,000-square-foot branch at the high-traffic intersection. It should employ an estimated eight to 10 employees.

Altra Credit Union"We're hopeful about breaking ground in early 2017. Then we hope to open the branch by fall of 2017," said Dutton.

This new spot will put Altra in the mix with Home Federal Savings Bank, Associated Bank, West Bank and US Bank. All of those banks have branches on or near that intersection. Think Mutual Bank and Olmsted National Bank also have major branches within a few miles of the intersection.

Altra opened its first Rochester branch in 2012 at 123 16th Ave. SW in the Shoppes on Second development. Then in later December 2015, the Wisconsin credit union spent $1.25 million to buy land in the Chateau Circle commercial development at 55th Street Northwest and Chateau Road.

Dutton says Altra still plans to build a branch there, though the West Circle Drive one will now be built first. The Chateau Circle branch probably will not break ground before 2019.

"We do plan to have multiple branches in Rochester," she said. "It's amazing how much faster than we expected that business in Rochester has grown."

Altra began in 1931 as the Trane Employees Credit Union. It has Minnesota branches in La Crescent and Winona as well as Rochester. Overall, it has 18 locations in eight states.

February 15, 2016

Altura State Bank to merge with Plainview bank

Altura State Bank has signed a deal to merge with the People State Bank of Plainview.

"We are pleased to announce the combination of these two quality banks," said Dick Zabel, board chairman of Peoples State Bank. "Our banks are both family owned and share a similar culture and approach for customers and employees."

LogoThe merger is expected to be completed in the third quarter of 2016.

Altura has one branch at 411 Main Street NW in Altura. The bank was founded by the Kramer family in 1910. It now has more than $50 million in assets. That branch will operate under the name of Peoples State Bank.

"The merger will provide our customers with more products and services, while maintaining the small community banking experience they have come to expect," said President and CEO Peter Kramer of Altura State Bank.

0logoPeoples State Bank of Plainview has approximately $200 million in assets and five branches, in Plainview, Elgin and Millville in Minnesota, as well as Boyceville and Menomonie in Wisconsin.

The combined bank, operating as Peoples State Bank of Plainview, expects to have assets of more than $250 million

"We welcome Altura State Bank employees and look forward to working with them as partners in serving the Altura customers," Plainview CEO and President Gary Timm.

Timm took over as president of the bank in January 2014. He took over from Zabel, who became the chairman or the board.

 

January 05, 2016

Credit union buys land for new branch

A Wisconsin credit union with plans to build a second Rochester branch recently bought a parcel of land for $1.25 million.

Altra Federal Credit Union bought land on Dec. 14 in the Chateau Circle commercial development at 55th Street Northwest and Chateau Road. That means the new branch will be located near the Walgreens drug store planned for that area.

O"We've been looking for a new spot to build a new full-service branch for quite a while," said Cheryl Dutton, vice president of marketing of the La Crosse, Wis.-based credit union. "The Rochester market is a very important market to us."

While the land is acquired, Dutton said the project still is in the initial stages, so there's no timeline yet.

Altra opened its first Rochester branch in 2012 at 123 16th Ave. SW in the Shoppes on Second development. It now has five on staff.

"The growth has been exceptional. However, it's a very small office in a very busy strip mall. To service our members better, we'd like to build a larger branch, usually 4,000 to 5,000 square feet," she said.

The credit union is aware residents in the Chateau Circle area have voiced some concerns about the commercial development in their neighborhood.

"We plan to be very good neighbors," said Dutton. "We think it's going to be a great area for us."

Altra began in 1931 as the Trane Employees Credit Union with a history similar to that of the IBM Mid-America Credit Union, which became Think Federal Credit Union. It has Minnesota branches in La Crescent and Winona. Overall, it has 17 locations in eight states.

October 06, 2015

Rochester 'Who's Who' breaks ground for new bank

A "Who's Who" of Rochester used golden shovels to toss scoops of dirt Monday to officially launch the construction of a new $7 million bank complex.

While construction crews have already dug a huge hole for West Bank's new Rochester headquarters, the Iowa-based bank bought out its leadership team and its well-known local community board members for a groundbreaking ceremony.

05102015westbankgroundbreakingThe bank has operated a branch office in Rochester, since 2013. The new two-story, 15,000-square-foot complex is completed in late summer to early fall of 2016. It will stand on the hill overlooking West Circle Drive Northwest, next to Rooster's Bar & Grill and across from McDonald's. The bank expects to have a team of about 12 employees to staff the new location.

"This bank is different. We're not all things to all people. This is a community bank focused on business," West Bank CEO Dave Nelson.

Despite being a 122-year-old Iowa bank, West Bank has deep roots in Rochester. Nelson was the president of Wells-Fargo Rochester for many years, before he took the reins of West Bank in 2010. He has recruited many of his former co-workers to staff West Bank's Rochester location.

"We know Rochester. We have experienced bankers who know how to work with businesses," he said. "As a community bank, we make local decisions. We're what businesses are looking for - predictable, dependable and accessible."

In addition to the staff, Nelson has recruited what he calls "a Who's Who" list of Rochester's business leaders to serve on West Bank's local community board. The board includes Gus Chafoulias, Joe Powers, Pat Deutsch, Sandy Keith, Dave Pederson Jim McPeak Sr., Hal Henderson, Pete Schuller, Ed Stanley, Tim Weir, Greg Groves, Charlie Kuehn, Dick Kuehn and Norb Harrington.

"It really is an endorsement of West Bank to have them all on the board," said Nelson. 

It focus on business banking means the new building with not look like most bank branches. While it will have a drive-through, it will not have many teller lines for customers. The West Bank building will have a large roof-top plaza for events as well as a large conference center for meeting.

"It is unlike any other bank in Rochester," said local architect Hal Henderson of HGA. 

Builder Pete Schuller of AB Systems pointed out that the site allows for extensive landscaping.

"It will be like a new park here. It's a great addition to Rochester," he said.

Rochester has seen many new financial institutions - Bremer Bank, Alta Credit Union, Manufacturers Bank & Trust Co. and F&M Community Bank - come into the market in recent years. Driving much of that interest has been Mayo Clinic's Destination Medical Center initiative. However, Nelson says that's not the case with West Bank.

"DMC is not why we came to Rochester. We came because Rochester deserves a good community bank," he said.

August 18, 2015

Home Federal wraps up Kasson Bank buy

Rochester's Home Federal Savings Bank has officially wrapped up its purchase of Kasson State Bank.

6a00d83451cc8269e201b7c771ae58970b-250wiHome Federal announced the deal to acquire the bank and its two Kasson branches in April. HMN Financial, Home Federal's parent holding company, actually made the acquisition.

"We look forward to continuing on with the long established community banking tradition of Kasson State Bank in serving the individual and business banking needs of Kasson and surrounding communities in the years to come," stated HMN President Brad Krehbiel in the announcement of the closure of the deal.

Homefederal_logoThe Palmer family owned the Kasson State Bank. It has 19 employees on staff and assets of about $60 million. The two branches will now be operated under the Home Federal name.

Neither bank released financial details about the deal. Home Federal officials did say that the bank funded the acquisition with "internally available funds." 

Kasson State Bank has a 141-year history dating back to the 1874 founding of the First National Bank of Kasson. The bank has been owned by the Palmer family since 1924.

Home Federal now has nine Minnesota branches. It has offices in Albert Lea, Austin, Eagan, La Crescent, two in Rochester, Spring Valley and Winona; one full-service office in Marshalltown, Iowa; one loan-origination office in Sartell; and two private-banking offices in Rochester.

April 10, 2015

Bank is gearing up to open 2nd Rochester branch

Manufacturers Bank & Trust Co. expects to open its second Rochester branch soon.

Construction crew are busy working on revamping the former America's Mattress building at 4408 U.S. 52 N.W.

"We hope to be in there at least by the end of May, if not before," said Tom Heepke, the bank's community president.

MBTbranchMBT will lease the 2,800-square-foot building from Rochester developer Jeff Brown. Mike Haley of Braasch Commercial Real Estate handled the deal.

The Forest City, Iowa-based bank opened its first Rochester branch at 2020 Second St. S.W. in 2012. That branch will remain open. Heepke said MBT's Rochester business has just grown beyond the one branch.

"This new one will also be a full branch, but it will also have a drive-up window. We're pretty excited about that," he said.

Heepke estimates that the new branch could potentially have five on staff. It will be managed by Andy Mai.

America's Mattress moved out of the building earlier this year to join the Furniture Superstore Factory Outlet in the former Menards store building at 5150 U.S. 52 North.

April 03, 2015

Home Federal to purchase Kasson State Bank

Kasson State Bank has agreed to sell its business to Rochester's Home Federal Savings Bank.

Home Federal announced the deal to bank and its two Kasson branches late Thursday night. HMN Financial,Home Federal's parent holding company, is actually making the acquisition.

Kasson-state-bankThe purchase is subject to regulatory approval. The Palmer family currently owns the Kasson State Bank. It has 19 employees on staff. It lists assets of about $60 million.

"It was an opportunity that was in our backyard. It's a natural expansion of our existing franchise footprint," said Home Federal President Brad Krehbiel.

Neither bank elected to release financial details about deal. Home Federal officials did say that the bank is funding the acquisition with "internally available funds." The bank expects to complete the transaction late in the third quarter of 2015.

 "We look forward to the opportunity to continue on with the long established community banking tradition of Kasson State Bank, while at the same time expanding the banking products and services offered through these locations," stated Krehbiel in the announcement of purchase.

Kasson State Bank has a 141 year history dating back to the 1874 founding of the First National Bank of Kasson. The bank has been owned by the Palmer family, since 1924.

If approved, this deal will bring Home Federal's number of Minnesota branches to nine. It has offices in Albert Lea, Austin, Eagan, La Crescent, two in Rochester, Spring Valley and Winona; one full-service office in Marshalltown, Iowa; one loan-origination office in Sartell; and two private-banking offices in Rochester.

December 22, 2014

Iowa bank to open 2nd Rochester branch

Manufacturers Bank & Trust Co. is hoping to open a second branch in Rochester in early 2015.

The Forest City, Iowa-based bank first opened a location here at 2020 Second St. S.W. in 2012. Now MBT has outgrown that 2,000-square-foot space.

927db1376e1345f697086bcd204afe4d-1MBT is a full-service bank with particular expertise in agriculture and business loans.

Pending regulatory approval, MBT has lined up the former America's Mattress building at 4408 U.S. 52 N.W. to serve as a second branch, said Tom Heepke, the bank's community president. He says it is time to expand in this market.

"We've grown the business enough now to warrant a second location," he said.

Plus the Second Street location is becoming crowded with five on staff. If the second branch is approved as expected, MBT plans to add more staff and transfer current staffer Andy Mai to manage it, according to Heepke.

Bank regulators expect to rule on the branch by the end of January. If everything goes as planned, MBT could open in the new location by early February.

MBT will lease the 2,800-square-foot building at 4408 U.S. 52 N.W. from Rochester developer Jeff Brown. Mike Haley of Braasch Commercial Real Estate handled the deal.

America's Mattress moved out of the building earlier this year to join Furniture Superstore Factory Outlet in the former Menards store at 5150 U.S. 52 North. – Jeff Kiger

December 16, 2014

Mannino leaving Home Federal

After 14 years as the face of Rochester's Home Federal Savings Bank, Al Mannino is leaving to try something new.

Mannino, the well-known vice president of communications for the bank, is stepping down at the end of December to try his hand at business consulting.
Get_photo-1
"I've decided to leave the bank while I've still got enough energy to do something else," he said. "The bank and I are on great terms. I'm just looking for something more fun and challenging for the next segment of my career."

The 65-year-old Mannino joined Home Federal in 2000. He originally moved to the area to help with the launch of Stewartville-based Rochester Medical, which makes catheters. Prior to that, he had been working with a medical company in the Twin Cities.

"I was an executive in the health-care industry for many years with companies that made implantable medical devices and medical supplies," said Mannino. "Now it's time to try something new."