Moorhead bank readies for move into expanded, homey atmosphere

Northwestern Financial Review, Feb 6, 1999 by Olmsted, Monte

A little more than two years old, the State Bank of Moorhead quickly surpassed the baby step-phase, going for the full stride as the $50-million Red River Valley bank prepares to build new headquarters nearly three times the size of its current digs.

One could say the young bank, chartered in November 1996, has outgrown its britches as it looks to build upon its personal, commercial and agriculture banking and expand its first mortgage residential real estate lending.

"When we started the bank in 1996 and did move in, the expectation was that the building was only temporary. We don't have a drive-up facility and are in fairly small quarters2,500 square feet. We always expected getting additional room," said Neil Qualey, bank president.

Groundbreaking for the new two-story headquarters is set for mid-April, with the bank and staff moving in by Dec. 1. The expanded facility, owned by the bank, will allow it to stretch out into 7,000 square feet of first-floor office space and include four drive-up lanes. The second floor will be leased, Qualey said. Estimated cost of the project is $2.5 million.

Moorhead architectural firm YHR Partners has given the bank a look that will make it stand out, yet not be obtrusive. Since the building will be on the edge of a residential area, the bank's directors believed it should fit in with the houses along Eighth Street, which is generally bustling with traffic. The first floor design consists of fieldstone. Wood also is a prominent component in the new bank building mix, making it look like a comfortable lodge complete with chimney.

"We wanted to have a building that felt like it fit in," said Qualey. "The roof-lines, design and feel looks more homey and has more appeal in a residential area. The fieldstone idea got started because we're putting a fireplace in it. Then we thought, 'Maybe we should do the exterior that way,' and that's how it evolved."

The bank's new location is on a high traffic street between Moorhead's downtown and south side, both of which are filled with business activity. Having a centrally located bank in the city was important to the bank's directors, who decided to construct a new building rather than add a branch, Qualey said.

In addition, the bank's proximity to the city's two higher education institutions-Concordia College and Moorhead State University-will make it attractive to new customers such as school faculty and students. The building itself will be adjacent to Concordia College and a medical clinic.

At least five more people will be added to the current staff of 16, said Qualey, the former president of Moorhead's American Bank, which was bought a few years ago by Norwest Corp.

State Bank of Moorhead has ties with Fargo, N.D.based State Bankshares Inc., a $501 million holding company for State Bank of Fargo and State Bank of West Fargo. The latter two banks are on the North Dakota side of the Red River. State Bank of Moorhead is a separately chartered bank, and owned by the principal stockholders of the State Bank of Fargo, said Richard Solberg, chairman of State Bankshares Inc. and president of the Fargo bank.

By 2001, the Minnesota bank likely will join the State Bankshares fold. Under Minnesota law, de novo banks must be in existence for five years before an out-of-state company can own them.