# KleinBank

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

## 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](/source/Panic_of_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](/source/Charles_H._Klein)[3] was elected to the Chaska School Board in 1900, to the [Minnesota House of Representatives](/source/Minnesota_House_of_Representatives) in 1902, and to the [Minnesota Senate](/source/Minnesota_Senate) in 1910.[4]

### Expansion

The bank expanded west along the railroad as the Kleins helped organize banks in [Victoria](/source/Victoria,_Minnesota), [Waconia](/source/Waconia,_Minnesota), [Montevideo](/source/Montevideo,_Minnesota), and [Madison](/source/Madison,_Minnesota). Banks were also acquired in nearby [Cologne](/source/Cologne,_MN) and [Young America](/source/Norwood_Young_America,_MN) 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](/source/Old_National_Bank)

### Timeline

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

- Minnesota Business Ethics Award (2011)[8]
- Minnesota Family Business Award (2012)
- Star Tribune Top Workplace (2014)
- BBB Torch Awards for Ethics (2014)[9]
- BBB International Torch Award for Ethics (2015)[10]
- Star Tribune Top Workplace (2016)
- TCB Readers' Choice Best of Business | Best Business Bank (2016)[11]
- TCB Readers' Choice Best of Business | Best Mortgage Company (2016)[11]
- SBA Minnesota Lenders Awards | Large Lender (2016)[1]

## References

1. [About](https://kleinbank.com/banking/about/) [Archived](https://web.archive.org/web/20170808194742/https://kleinbank.com/banking/about/) August 8, 2017 at the Wayback Machine kleinbank.com

1. ["KleinBank 100 Grand Years"](https://web.archive.org/web/20120426012712/https://www.kleinbank.com/history/001/index.html). Archived from [the original](https://www.kleinbank.com/history/001/index.html) on 2012-04-26. Retrieved 2011-12-02.

1. ["Klein, Charles Henry "Chas., Charley" - Legislator Record - Minnesota Legislators Past & Present"](https://www.lrl.mn.gov/legdb/fulldetail?id=12177). *www.lrl.mn.gov*. Retrieved 3 January 2024.

1. ["Klein, Charles Henry "Chas., Charley" - Legislator Record - Minnesota Legislators Past & Present"](http://www.leg.state.mn.us/legdb/fulldetail.aspx?id=12177)

1. ["From Bricks to Banking"](https://web.archive.org/web/20120426012920/https://www.kleinbank.com/history/008/index.html). Archived from [the original](https://www.kleinbank.com/history/008/index.html) on 2012-04-26. Retrieved 2011-12-02.

1. ["From Bricks to Banking"](https://web.archive.org/web/20120426014914/https://www.kleinbank.com/history/009/index.html). Archived from [the original](https://www.kleinbank.com/history/009/index.html) on 2012-04-26. Retrieved 2011-12-02.

1. Forliti, Amy. ["Feds Allege KleinBank Used Discriminatory Lending Practices"](https://abcnews.go.com/US/wireStory/feds-allege-kleinbank-discriminatory-lending-practices-44808280). *ABC News*. Retrieved 17 January 2017.

1. ["MBEA"](https://web.archive.org/web/20090522001754/http://mnethicsaward.org/). *mnethicsaward.org*. Archived from [the original](https://mnethicsaward.org/) on May 22, 2009. Retrieved 3 January 2024.

1. [BBB Torch Awards for Ethics 2014](https://www.bbb.org/minnesota/programs-services/torch-awards-for-ethics/2014-torch-awards-for-ethics/)bbb.org [Archived](https://web.archive.org/web/20170808194509/https://www.bbb.org/minnesota/programs-services/torch-awards-for-ethics/2014-torch-awards-for-ethics/) August 8, 2017 at the Wayback Machine

1. [News release](https://www.bbb.org/council/news-events/news-releases/2015/09/better-business-bureau-honors-businesses-for-outstanding-ethical-practices-and-contributions-to-building-trust-in-the-marketplace/)bbb.org [Archived](https://web.archive.org/web/20170808233157/https://www.bbb.org/council/news-events/news-releases/2015/09/better-business-bureau-honors-businesses-for-outstanding-ethical-practices-and-contributions-to-building-trust-in-the-marketplace/) August 8, 2017 at the Wayback Machine

1. [Twin cities business](http://www.pageturnpro.com/Twin-Cities-Business/74449-TCBs-Best-of-Business-2016/index.html#12) pageturnpro.com

## External links

- [Official KleinBank website](https://www.kleinbank.com) [Archived](https://web.archive.org/web/20110129034700/https://www.kleinbank.com/) January 29, 2011 at the Wayback Machine
- [City of Chaska](http://www.chaskamn.com)
- [History of KleinBank](https://web.archive.org/web/20110713155531/https://www.kleinbank.com/history/)
- [In Memoriam: Senators Alfred Berglund, Colvin G. Butler, Sherman W. Child, Leonard W. Dernek, H.C. Hanson, John A. Johnson, Charles Klein, Martin M. Malone, Nels A. Pederson, Herbert Rogers, et al. State of Minnesota Senate Chamber, April 3, 1963.](http://archive.leg.state.mn.us/docs/2009/other/090735/1963.pdf) [Archived](https://web.archive.org/web/20120422063325/http://archive.leg.state.mn.us/docs/2009/other/090735/1963.pdf) April 22, 2012 at the Wayback Machine

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Adapted from the Wikipedia article [KleinBank](https://en.wikipedia.org/wiki/KleinBank) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/KleinBank?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.