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 Security Bank Minnesota is now employee owned
By Joseph Marks - Staff Writer - Albert Lea Tribune, article dated
May 14, 2006.
Security Bank in Albert Lea entered a new phase of its 100-year history last Monday when majority ownwership of its parent company Lake Bank Shares passed to its employees.
Ownership passed from the Herbert A.Lund Trust to the Lake Bank Shares Employee Stock Ownership Plan.
"Herb had a deep passion for keeping this a community bank," said Phyllis Monson, chief executive
officer. "He sold his first 30 percent to the employees in 1998 with the idea that it would hopefully eventually become 100 percent employee owned."
The employees now own 65 percent of the company, Monson said, and outside investors were brought in to take the other 35 percent.
Monson said she only knows of one other employee-owned bank in Minnesota and two others in the
nation. She said part of that is due to the decreasing number of community banks in the nation.
Monson said the biggest hindrance to the change in majority ownership was the necessary regulatory approvals from the state of Minnesota and the Federal Reserve. She said it took from January until now to get the paperwork in place.
She said no changes are planned at the bank except adding new products and services for the community.
Employees and other share-holders in the company vote to elect the Lake Bank Shares Board which in turn elects the Employee Stock Ownership Plan Board and the Security Bank Board.
Monson will remain as CEO of the bank and president of the Lake Bank Shares Board and serves on the
other two boards.
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