KleinBank, One Of MN’s Largest Banks, Plans Acquisition
KleinBank, Minnesota’s fourth-largest bank by asset size, is buying Prior Lake State Bank for an undisclosed sum.
The acquisition would add three branch locations in Prior Lake, bringing Chaska-based KleinBank’s total branch count to 22. KleinBank said the sale is still subject to regulatory approval but it expects the deal, along with the merging of both banks’ systems, to be completed by the end of 2014. After the merger, customers of Prior Lake State Bank will be able to use all of KleinBank’s other branches.
KleinBank has assets totaling about $1.6 billion and 400 employees. According to the Federal Deposit Insurance Corporation, Prior Lake State Bank had assets totaling about $205 million and 34 employees, as of December 31.
“We’re excited to make this investment in a high-performing bank, and to continue KleinBank’s 107-year commitment to grow a strong and stable network of community-focused banks,” KleinBank President and CEO Doug Hile said in a statement. “Prior Lake fits well into our brand footprint, and means our current and future customers will have access to additional convenient locations and services, and to customer focused employees.”
In 2013, KleinBank’s earnings totaled $12.1 million, up 2.5 percent from $11.8 million in 2012. Prior Lake State Bank earned $3.6 million in 2013, up 12.5 percent from $3.2 million in 2012.
“We feel fortunate to have been able to align with a bank that is family-owned like we are and that shares our commitment to community banking,” Prior Lake State Bank CEO Bob Barsness said in a statement.
KleinBank was founded in 1907 and is currently run by the family’s third and fourth generations. The company was awarded TCB’s Minnesota Family Business Award in 2012, read an in-depth profile on the company here.