What Highland Bank does

Highland Bank is a privately held Minnesota community bank founded in 1943 and headquartered in St. Paul, operating eight branches across the Twin Cities metro and northeastern Minnesota (Bloomington, Ely, Maple Grove, Minnetonka, St. Michael, St. Paul, Woodbury). Following the December 2022 acquisition of Boundary Waters Bank through Highland Bancshares, the bank holds approximately $750M in assets and consolidated the combined entity under the Highland Bank brand by late 2023. The institution serves small businesses, lower middle-market companies with $5M-$100M in revenue, non-profits, and individual consumers with a horizontally segmented product suite spanning consumer and commercial checking/savings, SBA 7(a)/504/Express loans, commercial real estate and equipment financing, acquisition financing, HELOCs, mortgage products, and a treasury/cash management stack (ZBA, ICS/CDARS via IntraFi, ACH origination, wire, lockbox, merchant services through First Financial, and Elan-issued business credit cards). It also offers PACE financing for energy-efficient commercial property upgrades. Highland's technological backbone is a conventional digital-banking suite with iOS/Android mobile apps (mobile deposit, card controls, alerts, Apple/Google/Samsung Pay, Zelle), online banking, and e-statements, layered on top of integrations with Zelle, MoneyPass, IntraFi (ICS/CDARS), Elan Financial Services, First Financial Merchant Services, Autobooks, Formstack, and Quicken/QuickBooks. The bank is an SBA Preferred Lender and holds FDIC insurance, CRA compliance, Equal Housing Lender status, NMLS ID #478369, and ABA routing #091916378.

Highland generates revenue primarily through net interest income on its loan portfolio (commercial real estate, SBA, equipment, consumer) and interest-bearing deposits, supplemented by transaction and service fees on checking accounts, wires, ACH, overdrafts, and earnings credits on commercial balances. Non-interest income includes interchange from Elan-issued business credit cards, merchant services residuals via First Financial, and ancillary fees across cash management. Pricing follows subscription-style monthly service charges with minimum-balance waivers (e.g., Business Checking at $20/month, Small Business Checking at $5/month) combined with transaction-based per-item pricing for Commercial Checking (15-65 cents per item). It also charges standard SBA spread on government-guaranteed loans and interest on acquisition and senior cash flow loans. Distribution is omnichannel: physical branches drive relationship banking and deposit gathering, a commercial banking team leads middle-market SBA and acquisition financing, and a digital platform supports self-serve consumer and SMB banking across Minnesota.

Key risks include concentration of operations in a single state, dependence on net interest margin in a rate-sensitive environment, exposure to credit losses on SBA and commercial real estate loans, and competition for SMB and middle-market clients from both larger regional banks (U.S. Bancorp, Bremer) and fintech challengers. Independence as a privately held bank without a publicly disclosed parent limits access to capital markets relative to peers, making future M&A or recapitalization dependent on the existing shareholder base. The 2020 sub-debt/capital raise of $10M and the 2022 Boundary Waters Bank acquisition indicate a credible, if measured, growth path centered on Minnesota consolidation.

Name

Highland Bank

Legal name

Highland Bank

Website

https://highland.bank

Company type

Private

Founded year

1943

Operating status

Operating

Headcount range

101–250 employees

Short description

Highland Bank is a privately held Minnesota community bank offering SBA lending, commercial and consumer deposit products, treasury/cash management, and digital banking through eight branches across the Twin Cities and northeastern Minnesota. It serves small businesses, middle-market borrowers ($5M-$100M revenue), non-profits, and individual consumers.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Depository Credit Intermediation (5221), Savings Institutions and Other Depository Credit Intermediation (52218)

SIC

National Commercial Banks (6021)

akta.pro primary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

Keywords

• Community banking
• SBA lending
• Commercial banking
• Treasury management
• Mortgage lending

Headquarters

HQ city

Maple Grove

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Interest Income: Primary revenue from interest earned on loan portfolio including commercial real estate, SBA loans, equipment financing, and consumer lending. Interest-bearing deposits also generate income.
2. Transaction & Service Fees: Fees from checking accounts, wire transfers, ACH transactions, and business account services. Includes overdraft fees, monthly service charges, and transaction fees beyond free limits.
3. Commercial Checking Earnings Credit: Earnings credit based on positive available balance in commercial checking accounts, offsetting monthly fees
4. Credit Card Interchange: Revenue share from Elan Financial Services for business credit card issuance and processing

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels7 records

Core offering

Highland Bank is a privately-held Minnesota community bank that operates eight branches and a digital banking platform, providing commercial and consumer deposit accounts, SBA Preferred Lending, commercial real estate and acquisition financing, equipment financing, PACE energy loans, mortgage and home equity products, and treasury/cash management services to small businesses, lower-middle-market companies, non-profits, and individual consumers across Minnesota.

Product overview

Highland Bank is a community bank headquartered in Minnesota offering a comprehensive financial services portfolio organized around three core areas: consumer/personal banking, business/commercial banking, and digital banking services. The Digital Banking Suite serves as the primary digital access platform integrating mobile banking, bill pay, eStatements, Zelle P2P payments, and mobile deposit capabilities. Business banking products span checking accounts (Small Business, Business, Commercial, Community, Non-Profit tiers), savings accounts (Statement, Money Market, Premier Money Market), and specialized lending including SBA loans, equipment financing, commercial real estate, and PACE energy loans. Cash Management services provide business treasury solutions including sweep services (ZBA, ICS deposit protection), fraud prevention tools, ACH/wire transfers, and merchant services. Mortgage products include home equity loans and HELOCs. The bank operates eight branches across Minnesota and has grown through the 2022 acquisition of Boundary Waters Bank.

Differentiator

Problem solved

Functional benefit

Products and services

• Digital Banking Suite Digital banking platform offering mobile banking, eStatements, Bill Pay, Zelle P2P payments, and account alerts available 24/7 with transfer capabilities before 6:00 pm CT on business days; available to both personal and business customers.
• Kasasa Cash Checking Free consumer checking account with cash back rewards and higher interest rates for qualifying transactions.
• Kasasa Cash Back Checking Free consumer checking account offering cash back on debit card purchases with no monthly fees when qualifications are met.
• Small Business Checking Entry-level business checking with $50 minimum opening deposit, 150 free monthly transactions, and $500 minimum balance to avoid the $5 monthly service charge; designed for small businesses with low-to-moderate transaction volumes.
• Business Checking Mid-sized business checking with $100 minimum opening deposit, 500 free monthly transactions, and a $20 monthly service charge if the balance falls below the $100 minimum.
• Commercial Checking Large business checking with transaction-based pricing (15¢ per electronic credit/debit, 20¢ per check, 65¢ per deposit) and earnings credit based on positive available balances; intended for high-volume commercial customers.
• Community Checking Free checking for small non-profits with no minimum balance requirement, no monthly service charges, and 50 free transaction items per month.
• Non-Profit Checking Interest-bearing checking for non-profit organizations with $100 minimum opening deposit, $5,000 minimum balance requirement, 500 free monthly transactions, and monthly interest credited on the average daily balance.
• Commercial Statement Savings Basic business savings account with $200 minimum opening deposit, 0.10% APY, quarterly interest compounding, and a $200 minimum balance to avoid a $3 monthly service charge.
• Commercial Money Market Savings Business money market account with tiered interest rates (0.70% to 1.45% APY based on balance), $1,000 minimum opening deposit, and monthly interest crediting.
• Commercial Premier Money Market Savings Premium business money market with higher tiered rates (0.90% to 1.65% APY), $10,000 minimum opening deposit, and tiered balances up to $5,000,000+.
• Mobile Banking Full-service mobile banking app for iOS and Android enabling check deposits, transfers, bill pay, and account management with password protection and encryption.
• Business Bill Pay Digital business payment service for sending payments to individuals or businesses within the United States, with delegation controls and permission settings.
• Cash Management Business treasury services including funds management, fraud tools, sweep services, wire transfers, lockbox, and EDI for invoice processing; targeted at commercial customers with complex cash management needs.
• SBA Loans Small Business Administration loans including SBA 7(a), SBA 504, and SBA Express programs offered under Highland Bank's SBA Preferred Lender designation, with down payments as low as 10% and loan amounts up to $5-9 million in certain situations.
• Business Lines of Credit Revolving credit lines for working-capital needs with flexible draw and pay options, with interest charged only on funds borrowed.
• Equipment Financing Business loans for equipment acquisitions, vehicle purchases, and capital expenditures with flexible rate options and customized loan terms.
• Commercial Real Estate Loans Financing for commercial property purchases including conventional, SBA 7(a), and SBA 504 options, served by commercial real estate lenders.
• Acquisition Loans Business acquisition financing including Senior Cash Flow Loans for lower middle-market businesses ($5-100M revenue) and SBA Acquisition Financing up to $5-9 million; works with sponsors including private equity firms, family businesses, and search funds.
• PACE Loans Property Assessed Clean Energy commercial loans for energy-efficient upgrades (HVAC, insulation, LED lighting, solar panels) with repayment through property tax assessments; terms up to 20 years and up to 100% financing available.
• HELOC (Home Equity Line of Credit) Revolving credit line secured by home equity for flexible access to funds, with variable rates.
• Home Equity Loans Fixed-term loans secured by home equity with consistent monthly payments, competitive rates, and potentially tax-deductible interest.
• ATM/Debit Cards Visa debit cards accepted at over 7 million merchants worldwide with contactless, chip, and swipe payment options; card management through the mobile app includes card on/off controls, spending limits, and geographic restrictions.
• Business Credit Cards Business credit cards issued through Elan Financial Services under Visa license with cash back, rewards, zero fraud liability, mobile payment capability, and no fee for additional employee cards.
• Highland Reserve Line of Credit Personal reserve line of credit providing overdraft protection and flexible access to additional funds for consumer customers.

Quantifiable outcome

• SBA Preferred Lender status with loan amounts up to $5-9 million available
• +1 more outcomes

Named customers3 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration9 records

Feature5 records

Partnerships

Six partnerships are on record, tiered core and minor.

• First Financial Merchant ServicescoreTechnology or IntegrationPartnership with First Financial Merchant Services for payment processing technology, enabling merchants to accept all major credit card and debit card payments via terminal, wireless, or internet connection.
• IntraFi Network (ICS/CDARS)coreTechnology or IntegrationProvides access to Insured Cash Sweep (ICS) and CDARS services, enabling multimillion-dollar FDIC protection on large deposits by exchanging funds through IntraFi network banks.
• Early Warning Services (Zelle)coreTechnology or IntegrationProvides Zelle payment network integration for convenient money transfers between customers using email addresses or mobile phone numbers.
• Elan Financial ServicescoreChannel Partner/ Reseller/ DistributorProvides business credit cards under Visa license with cash back, rewards, and low rates. Elan handles card processing, fraud protection, and customer service.
• MoneyPassminorChannel Partner/ Reseller/ DistributorSurcharge-free ATM network partner expanding ATM access for cardholders to thousands of ATMs nationwide.
• Small Business Administration (SBA)coreStrategic or Co-development PartnerSBA Preferred Lender partnership providing SBA 7(a), SBA 504, and SBA Express loan programs. Highland Bank is one of the top SBA lenders in Minnesota.

Scale indicators4 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• First Financial Bank: Ohio and Indiana-based community bank with commercial, SBA, and treasury management products; comparable community-banking orientation but larger scale and broader geographic footprint.
• MidWestOne Financial Group: Iowa-based regional community bank holding company offering commercial banking, treasury, and SBA lending across the Midwest; comparable in Midwest community-bank orientation but with larger scale.
• Park National Bank: Larger Ohio-based regional community bank holding company with broader branch network and similar SBA, commercial real estate, and treasury capabilities; represents a scaled version of Highland's community-bank playbook.

Direct peers

• Busey Bank: Illinois-headquartered community bank offering commercial, SBA, and consumer banking with similar deposit-gathering model; comparable asset size and relationship-banking approach.
• Lake City Bank: Indiana-based community bank known for relationship-driven commercial lending, SBA, and treasury services; matches Highland's profile as a privately held, commercial-bank-focused community institution serving middle-market businesses.
• Bell Bank: Headquartered in Fargo, ND with a strong Minnesota presence, Bell Bank is a similarly sized Midwest community bank offering SBA lending, commercial banking, treasury management, and digital banking — directly comparable in scale, geography, and product mix.
• Nicolet National Bank: Wisconsin-headquartered community bank of similar size with commercial banking, SBA lending, and treasury management; shares the Midwest community-bank DNA and competes for similar middle-market and SMB relationships.
• Tompkins Community Bank: New York-based community bank of comparable size offering commercial, SBA, and digital banking services; similar business mix and target customer segments.
• S&T Bank: Pennsylvania-based community bank of similar scale with commercial and SBA lending, treasury management, and digital banking; comparable in business mix and target middle-market segment.
• Merchants Bank, N.A. Minnesota-based community bank operating branches across southern MN and western WI with commercial lending, SBA, and treasury management offerings; comparable footprint, similar community banking model, and overlapping middle-market customer base.

Market position

Strengths4 records

Weaknesses3 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• YouTubeyoutube.com/@HighlandBank
• Facebookfacebook.com/highlandbank
• LinkedInlinkedin.com/company/highland-bank
• Instagraminstagram.com/highlandbank

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Highland Bank