Bank mergers and acquisitions in Minnesota are reshaping the financial landscape for institutions and employees alike.
Minnesota has been an over-banked state for the better part of two decades, both from an empirical standpoint (number of banks) and an anecdotal standpoint (number of billboards, branches and of course, bankers). Due to the competitive nature of the industry – combined with a volatile rate environment and shifting regulatory landscape over the last handful of years – banks, credit unions, and other financial institutions (non-bank lenders, equipment finance shops, private credit firms, etc.) have had to carve-out market niches by focusing on various differentiation factors, both in Minnesota and beyond. These factors include specialty lending/niche products and services, subject matter expertise within certain industries or services, and deep-rooted relationships and history in specific geographies/communities. Due to this increased differentiation and specialization, banks, credit unions, and other FIs can make a name for themselves to not only survive but thrive in a crowded industry.
This also can make Minnesota banks an attractive M&A target, as we’ve seen over the years. Larger national banks have committed to a Minneapolis/St. Paul presence (JPMorganChase, Bank of America, BMO and PNC to name a few), while others have done it via acquisition; Huntington Bank with TCF in 2021, UMB with HTLF earlier in 2025, and Old National back in 2018 with Anchor + KleinBank and now acquiring Bremer. We’ve seen “mergers of equals” combining like-sized organizations into larger, more capable institutions (the United Financials Capital CUSO formed in 2022, Spire and Hiway becoming Blaze CU in 2024, and most recently Wings + Ent Credit Union announced April 2025). Specifically at the community bank level, we’ve also seen strategic acquisitions to bolster deposits, add a specialty vertical/group, or expand into a new geography.
Most recently, Bremer and Old National have made headlines after that acquisition was announced in late 2024; not since Huntington/TCF in 2018 have we seen such an established and sizable Minnesota bank – Bremer was founded in 1943 and had $16B+ in Assets when the transaction was announced – get bought. And just this week we saw the news that Wings Financial and Ent Credit Union (based out of Colorado) will be joining forces to become a $20B behemoth, easily making the combined organization the largest credit union in Minnesota and one of the largest nationally as well. So, with this fresh on our minds and still in the news cycle, the question becomes: what does this mean for employers (banks) and employees (bankers)?
As with any merger, there will be natural run-off of employees from the acquiree – and this can happen for a few reasons. When we meet with candidates undergoing a transition in ownership, we consistently hear various things: there may be a lack of confidence in the acquirer, trepidation that the culture will shift, concerns about what type of “spot” they will have (if any) in the combined org, and other similar sentiments. However, that’s not a blanket case; tenured employees with “golden handcuffs” or other long-term incentives will be motivated to wait and see things through, and others simply might be excited to be changing the bank name on their business card (especially if it’s one with more brand equity/name recognition).
On the bank side, the name of the game is retention. Not only retention of current employees (especially key leaders, top producers, and other A+ players), but of long-term clients and customers. Rocky branding rollouts, disruptive system conversions, and of course employee turnover can lead to potential frustration and confusion for their client base. This is where honest and transparent communication is paramount, both internally and externally.
Mergers and acquisitions are often exciting and make a big splash but also create opportunity for banks and bankers alike. If you’re interested in connecting regarding a possible key addition to your team or making a potential career change, please reach out to Willie Pudvah or Mai Xiong on Versique’s Banking & Financial Services team.
