CorTrust opens in Blaine State Bank’s location

CorTrust Bank has steadily grown since it was founded as an independent community bank in Artesian, S.D., in 1930. It opened in a new location in Blaine March 23, taking the place of another longtime community bank.

 CorTrust Bank recently purchased Blaine State Bank and opened March 23 at 10107 University Ave. N.E.Photo by Eric Hagen
CorTrust Bank recently purchased Blaine State Bank and opened March 23 at 10107 University Ave. N.E.Photo by Eric Hagen

CorTrust Bank of Blaine is located at 10107 University Ave. N.E. Its lobby hours are 8 a.m. to 5 p.m. Monday through Friday and 9 a.m. to 1 p.m. on Saturday. Its drive-through is open at 7:30 a.m. and closes at 6 p.m. on weekdays and is open the same time as the lobby on Saturdays.

CorTrust Bank purchased Blaine State Bank, which had been established in 1972. Jay Gikas, senior vice president and Twin Cities Market Manager, said CorTrust Bank was attracted to Blaine because it has ranked number one in housing starts. The other Minnesota community in which CorTrust Bank is located — Woodbury — is just behind Blaine in housing starts.

“It’s a good strong-growth community and this was a nice fit for us,” Gikas said.

A high number of housing starts obviously means more potential customers who may need a loan to purchase a home. Blaine’s current population of over 57,000 people also means a lot of prospective customers who may need overdraft protection, loans for a new car or boat, first mortgages and refinancing.

Gikas said CorTrust is a large mortgage servicing company and originates conventional first mortgages. Although it sells mortgages on the secondary market, it retains the service of the mortgages so CorTrust’s customers do not have to deal with another bank when they have questions.

More people leads to more businesses in the community. Gikas said CorTrust Bank’s commercial lending limit is $13 million and it really sticks to this so it does not extend itself too far.

“We are big enough that we bring some critical mass to the table and we’re able to service a full-range of customers and provide services that the big banks provide,” Gikas said. “At the same time, we’re a family-owned and operated small-town community bank, so we operate like that as well.”

Gikas pointed to CorTrust Bank’s statement of condition information on its website to show that the bank has been doing well. Federal regulations require a bank to have a tier one leverage ratio of at least 5 percent to be considered well capitalized. CorTrust Bank is at 10.76 percent. Its tier one risk based capital ratio of 15.64 percent and tier risk based capital ratio of 16.9 percent is also well above regulation standards.

CorTrust Bank was actually called Live Stock State Bank when its first location opened in 1930. The name change came July 1, 1993.

Today, CorTrust Bank has 24 locations with all but two in South Dakota and its assets are at $715 million.

Gikas said CorTrust Bank plans to be active in the community. It already is a member of the MetroNorth Chamber of Commerce and Gikas anticipates that the location’s two commercial lenders will be very active in the community.

Eric Hagen is at [email protected]