KleinBank

Last updated

KleinBank
Company type Private company
Industry Financial services
PredecessorThe First National Bank of Chaska
Founded1907 (1907)
FounderGeorge Klein
Defunct2019 (2019)
FateAcquired
Successor Old National Bank
Headquarters
Chaska, Minnesota
,
United States
Area served
Minnesota
Products Banking services
Parent Old National Bank

KleinBank was an American bank based in Minnesota that operated from 1907 until it was acquired by Old National Bank in 2019. KleinBank was headquartered in Chaska, Minnesota and operated 21 bank branches. In 2019, KleinBank was the largest family-owned state bank in Minnesota with assets over $1.9 billion. [1] After being acquired the bank branches were rebranded as Old National Bank.

Contents

History

Founding

The sons of German immigrant and Minnesota farmer, George Klein, purchased controlling shares in The First National Bank of Chaska in 1907. Until that time, the two men, C.H. Klein and C.P. Klein, had been operating their father's brickyard. Klein had acquired the brickyard following a severe depression in 1893. It was the only remaining brickyard in Chaska which at one point had 11 individual brickyards in operation between 1857 and 1895. [2]

C.H. Klein [3] was elected to the Chaska School Board in 1900, to the Minnesota House of Representatives in 1902, and to the Minnesota Senate in 1910. [4]

Expansion

The bank expanded west along the railroad as the Kleins helped organize banks in Victoria, Waconia, Montevideo, and Madison. Banks were also acquired in nearby Cologne and Young America during C.H. Klein's time as Bank President.

Management changes - 1960s

C.P. Klein's son, George, took over controlling interest in the Klein-owned banks after the deaths of C.H. Klein in 1961 and C.P. Klein in 1962. Under George Klein's direction, the Klein Bancorporation, Inc., (KBI) was created in 1975 to manage and supervise the Klein-owned banks. [5]

George's son, Dan, became Chairman and President of KBI in 1979 after George's death in 1979. George's other two sons, Alan and Jim, became Senior Vice Presidents of KBI. [6]

Consolidation - 1990s

In 1997, KBI was renamed Klein Financial as the company began to take steps toward consolidating their nine chartered banks. In 2005, the nine charted banks were successfully merged into a single charter and the banks renamed, KleinBank. On November 1, 2018 KleinBank became a division of Old National Bank

Timeline

  • 1907 - C.H. Klein and C.P. Klein acquires controlling shares of The First National Bank in Chaska, MN
  • 1911 - C.H. Klein opens Victoria State Bank in Victoria, MN
  • 1919 - C.H. Klein helps form First National Bank of Waconia in Waconia, MN
  • 1926 - C.H. Klein acquires controlling share of The State Bank of Young America in Young America, MN and The State Bank of Cologne in Cologne, MN
  • 1927 - C.H. Klein opens Security National Bank in Montevideo, MN
  • 1931 - C.H. Klein and C.P. Klein opens Klein National Bank of Madison in Madison, MN
  • 1977 - The First National Bank of Waconia opens a new branch in St. Bonifacius, MN
  • 1988 - KBI acquires Oakley National Bank in Buffalo, MN
  • 1993 - KBI acquires The Chanhassen Bank in Chanhassen, MN
  • 1997 - The First National Bank of Chaska opens a second branch in Chaska, MN
  • 1998 - The First National Bank of Chaska opens a new branch in Shakopee, MN
  • 2000 - KBI acquires Preferred Bank in Big Lake, MN
  • 2002 - Preferred Bank opens a branch in Maple Grove, MN
  • 2004 - The First National Bank of Chaska opens a new branch in Carver, MN
  • 2006 - KleinBank opens a new branch in Lakeville, MN
  • 2007 - KleinBank acquires an Eagle Valley Bank branch in Burnsville, MN
  • 2008 - KleinBank acquires First Community Bank Savage in Savage, MN
  • 2009 - KleinBank opens a new branch in Otsego, MN
  • 2010 - KleinBank acquires Community Bank Plymouth in Plymouth, MN
  • 2014 - KleinBank acquires Prior Lake State bank in Prior Lake, MN
  • 2018- Old National Bank acquires 18 remaining branches of Klein Bank while Wings Financial buys three buildings of branches where Old National Bank already has banking centers
  • 2019- KleinBank merges with its owner Old National Bank and all KleinBank branches close and reopen as Old National Bank banking centers

Discriminatory lending practices

On January 13, 2017, the U.S. Department of Justice filed a lawsuit against KleinBank for alleged violations of the Fair Housing Act and Equal Credit Opportunity Act by structuring its home mortgage lending business to avoid serving neighborhoods where a majority of residents were racial and ethnic minorities. The lawsuit asserted that the bank's service area was in a horseshoe shape around the urban areas of Minneapolis and St. Paul (which had higher minority populations) and targeted its mortgage advertising solely toward white neighborhoods. The lawsuit also claimed that from 2010 to 2015, other comparable lenders generated 5.58% of their single-family residential loan applications related to residential property located in the majority-minority census tracks compared to KleinBank's 1.06%. The bank's website at the time indicated that it had 21 branches in suburbs west of Minneapolis and St. Paul and in western Minnesota—regions which, according to census data, were predominantly white. [7]

Accolades

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References

  1. 1 2 About kleinbank.com
  2. ↑ "KleinBank 100 Grand Years". Archived from the original on April 26, 2012. Retrieved December 2, 2011.
  3. ↑ "Klein, Charles Henry "Chas., Charley" - Legislator Record - Minnesota Legislators Past & Present". www.lrl.mn.gov. Retrieved January 3, 2024.
  4. ↑ "Klein, Charles Henry "Chas., Charley" - Legislator Record - Minnesota Legislators Past & Present".
  5. ↑ "From Bricks to Banking". Archived from the original on April 26, 2012. Retrieved December 2, 2011.
  6. ↑ "From Bricks to Banking". Archived from the original on April 26, 2012. Retrieved December 2, 2011.
  7. ↑ Forliti, Amy. "Feds Allege KleinBank Used Discriminatory Lending Practices". ABC News. Retrieved January 17, 2017.
  8. ↑ "usurped title". mnethicsaward.org. Archived from the original on May 22, 2009. Retrieved January 3, 2024.{{cite web}}: Cite uses generic title (help)CS1 maint: unfit URL (link)
  9. ↑ BBB Torch Awards for Ethics 2014 bbb.org [ dead link ]
  10. ↑ News release bbb.org [ dead link ]
  11. 1 2 Twin cities business pageturnpro.com
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