Posted 7/01/14 (Tue)
By Neal A. Shipman
Lakeside Bank Holding Company of New Town, N.D., which owns Lakeside State Bank in New Town and McKenzie County Bank in Watford City, N.D., have announced the intent to merge the two local banks with Cornerstone Holding Company of Fargo, N.D.
According to Scott Swenson, chairman and CEO of McKenzie County Bank, the merger, which will take effect in late 2014 or early 2015 is subject to regulatory approval. The merged entity will operate under the name Cornerstone Bank and will deliver expanded financial services to customers across North Dakota with a combined $753.8 million in assets.
“This merger brings together the assets and expertise of two community-based financial institutions, allowing the new organization to provide a more expansive product offering to their customers while staying true to their mission of providing accessible financial know-how,” states Swenson.
Lakeside Bank Holding Company was established in 1952. Lakeside operates as Lakeside State Bank with four North Dakota locations including New Town, Parshall, Makoti, and Plaza. The Petersen family of New Town purchased controlling interest in Lakeside State Bank in 1968. The Petersen family also owns McKenzie County Bank in Watford City, established in 1982. As of March 31, 2014, Lakeside State Bank had $374.2 million in assets and McKenzie County Bank had $141.4 million in assets.
Cornerstone Holding Company was established in 2006 following the purchase of Citizen State Bank of Enderlin. Cornerstone Bank is headquartered in Fargo and offers six North Dakota locations including two in Fargo, two in Bismarck, and mortgage loan production offices in Minot and Grand Forks. As of March 31, 2014, Cornerstone Bank had $238.2 million in assets.
“We are excited about the merger of our two organizations,” states Swenson. “This coming together of two established community banks will enable us to continue to deliver the personal attention our customers want as well as the expanded product and service offerings that they need.”
Going forward, Swenson will continue his involvement as a board member of Cornerstone Bank. Gary Petersen, chairman and CEO of Lakeside Holding Company and Lakeside State Bank, will be chairman of the new organization.
This merger will make Cornerstone Bank one of North Dakota’s 10 largest financial institutions with 11 locations and $753.8 million in assets.
Customers can continue to do business as usual and also enjoy the convenience of any of the expanded Cornerstone Bank locations.