CDBA Members Announce Consolidation

Tuesday, March 12, 2013

CDBA member Sunrise Banks announced Monday that it will consolidate its three Twin Cities bank brands—Franklin Bank, Park Midway Bank, and University Bank—under the Sunrise brand, effective April 1. Sunrise has received regulatory clearance for the merger, and the combined bank will have more than $750 million in assets, eight Twin Cities branch locations, and an office in Sioux Falls, South Dakota. The consolidation comes shortly after Sunrise Chairman Bill Reiling transferred ownership of the business to David Reiling, his son and the company’s CEO.

David Reiling, who has served as CEO of Sunrise since 2004, told Twin Cities Business that the ownership succession and bank consolidation plans had been a long time in the making, and the fact that they occurred around the same time was mostly coincidental. Apart from the new name, Sunrise’s local branches will see little change. But the consolidation is meant to allow Sunrise to increase its focus on national products, which will in turn generate capital and allow it to invest further in the Twin Cities, where it may eventually acquire additional banks, Reiling said. The consolidation will also help Sunrise focus on its mission of social responsibility, according to Reiling. Sunrise focuses on what he describes as “under-banked” customers and primarily serves urban communities. Increasing revenue through national products will allow it to reinvest in its Twin Cities operation and the community, he said.

Twin Cities Business has the full story.