Central Bank was a six-branch community bank in the Twin Cities area until 2009 when the locally owned bank made several headlines after acquiring four failed banks. In a span of three months, the bank more than doubled in size with 11 new locations added to the six existing ones.

During 2009, Central acquired Mainstreet Bank (Forest Lake), Jennings State Bank, (Spring Grove), Riverview Community Bank (Otsego) and Commerce Bank, (Fort Myers, FL). In each of these transactions, Central acquired bank assets, including all loans and repossessed real estate, which are guaranteed by the FDIC through a loss-share agreement.  The bank expects to fully integrate each of the new banks acquired in 2009 by the third quarter of 2010.

With the acquisitions, Central can now offer greater convenience for customers, with 15 branches in the metro area.  Central has retained most of the staff at each acquired bank, and has promoted staff within the bank group to manage the acquired offices. Employees from the acquired banks have also filled key posts in operations and financial reporting.  

A long term consolidation challenge comes in trying to instill a disciplined credit culture into a staff of acquired lenders and other employees.  Strong leadership and discipline in credit practices, particularly with regard to portfolio concentration management, enabled Central Bank to remain in a position of strength through the economic downturn and ultimately take advantage of opportunities available through the FDIC.  Central Bank avoided large out of area loan participations and brokered loans, kept portfolios diversified, and kept lending limits below what regulators allowed.

Despite the tough economy, Central Bank reported net income of $20.6 million during the 2009 fiscal year.  Total assets at year end were $861 million and shareholder equity and reserves totaled $76 million.  Management expects growth to continue through the expansion of existing locations, reasonably priced acquisitions, and new branches where the capital investment required is modest and branch profitability can be achieved in a reasonable period of time.  Balance sheet growth will be secondary to maintaining a high level of credit quality and balance sheet strength.

Owner John Morrison, Chairman Kurt Weise and President/CEO Larry Albert are aware of the challenges ahead that can arise, but with the strength of Central’s original core and talented new employees, the transition from five banks into one will continue to move forward.

Bank failures will continue in 2010 and 2011, and Weise said his team will continue searching for more fill-in acquisitions that could strengthen the franchise in the Twin Cities and in southwest Florida.  Part of the reason they're ready to continue acquiring is that they've been through it before. The group had completed six FDIC-assisted acquisitions before last fall, dating back to the late 1980s and early 1990s. Besides the current banks Morrison owns in Florida, Minnesota and Wisconsin, he has also owned banking franchises in Arizona, Colorado and Montana.
Central Bank was chartered in April of 1988 when Oak Park State Bank failed and Morrison acquired the failed bank’s assets. In April 1991, the bank then called St. Croix Valley Bank officially merged with Cosmopolitan State Bank and became Central Bank. Cosmopolitan had served the community of Stillwater since June of 1919.

Central Bank has over 200 employees in 17 locations. The bank’s locations include original locations serving Coon Rapids, Eden Prairie, Golden Valley, St. Michael, Stillwater and White Bear Lake. New locations include: Center City, Centerville, Elk River, Forest Lake, Fort Myers (FL), Hudson (WI), Minneapolis, Newport, South St. Paul, Spring Grove and Woodbury.