People in the Spring Valley and Wykoff areas have probably noticed that Security State Bank is now MinnWest Bank. The merger official happened on September 21, 2018. Market President Dwayne Ostrem recently sat down for an interview to explain what this change means to customers.
Ostrem explained that the Security banks in Spring Valley and Wykoff were branches of Security State Bank of Lewiston, which had been owned and operated by the Fischer family for several generations. Security Bank opened in 1905, and the Fischer family became involved in 1931. Web Fischer became owner, and since then three generations of the Fischer family have been involved as owners and board members. Ostrem added that following the merger with MinnWest, the Fischer family is still active in the community, most notably through the Fischer Family Foundation, which has given grants for local trails and community services.
Regarding how the merger came about, Ostrem explained, “Security, after some diligent review and thoughtfulness, the ownership felt it was time to consider selling, and had been approached by MinnWest, which is a predominantly ag bank. It was founded in 1987 by Pete McVay. At that time there was an ag recession, and the McVay family love agriculture… One thing led to another, and it’s grown and expanded into a $1.7 billion bank.”
He added that although MinnWest is bigger, “When you look at our focus, we’re in small towns. We are in Minneapolis (St. Cloud) but our footprint is in the small local communities. I’m the market president of Spring Valley, Wykoff and Lewiston. As MinnWest, we can probably meet more of the needs that a younger demographic is looking for, online banking, telephone access, and things of that nature.” MinnWest stresses a commitment to relationships first. And with 28 locations throughout Minnesota, it has become the second largest ag lending bank in the state. Ostrem said another advantage for local customers is that MinnWest offers a larger lending limit than Security Bank could have offered.
Ostrem had served as the president of the bank for five years prior to the merger. When asked about his career in banking, he quipped, “I was young and had color in my hair when I started in banking, and it was 1983, right in the heat of the ag crisis…and here we are again.” He added that agriculture, like every other industry, goes through cycles, stating, “We did live through the ‘80s,… The sun will come up again.”
Ostrem pointed out that agriculture and ag-related industries continue to be the largest employer in Minnesota, and he added that one major change going on in farming is that, “The technology in ag is just incredible… We don’t ask much of our farmers, do we? They’ve got to be scientists, biologists, technicians, computer savvy, and experts at marketing and financial wizards.”
Regarding the employees at MinnWest, Ostrem shared that, “I have the greatest staff. They are loyal and dedicated to their customers and each other.” He added that following the merger, the employees “have a better benefit package…we didn’t have group health insurance, and now we do.” He said the 401K package for employees is better now, as well. He also shared that MinnWest has neither made, nor planned, any changes in the hours or locations of the local banks within Fillmore County.
Ostrem also shared that MinnWest strives to be creative and response, stating, “We hear the needs, too. Over the weekend, I was hearing the news that some of our federal employees are missing their first paycheck now, and I had an idea that I had penciled out, and I emailed that to our marketing director, and they put it to the president of the bank,… and by nightfall on Tuesday we had developed a new loan product… for those federal workers, and I believe it’s rolling out today. So we’re large, but also small enough to react to circumstances that arise.
Photo by Rich Wicks
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