The Bank of Elk River

What The Bank of Elk River does

The Bank of Elk River is a privately held, family-owned community bank founded in 1885 by the Babcock family and headquartered in Elk River, Minnesota. It operates four branches across Sherburne, Wright, Anoka, and Hennepin counties (with a fifth branch in Andover scheduled to open September 2026), serves consumer, small-to-medium business, commercial real estate, nonprofit, and licensed cannabis business customers, and reports more than $680 million in assets. Its product portfolio spans tiered personal and business checking and savings, CDs/IRAs, mortgages, HELOCs, vehicle loans, SBA loans (with SBA Preferred Lender status), commercial term loans and lines of credit, plus a specialized cannabis banking vertical. Revenue is generated primarily through net interest income on its loan and deposit book, supplemented by subscription-style deposit account fees, treasury management and merchant services take-rates, credit card interchange via Elan Financial Services, and referral fees from Realize Financial Advisors and IntraFi CDARS/ICS. Digital channels run on Jack Henry's Banno platform with iOS/Android mobile apps, mobile deposit, Zelle, Apple/Google/Samsung/Fitbit Pay, and a 37,000+ ATM network via MoneyPass; newer product extensions include RapidPay (Moov-powered tap-to-pay), Autobooks (integrated SMB accounting), and a tiered Treasury Management suite with Positive Pay fraud detection. Go-to-market is relationship-led through a team of seven commercial lenders, four branch personal-banking teams, and heavy community engagement (102 events, 1,516 volunteer hours, $80,981 community investment annually), with leadership under Chairman/CEO John Babcock alongside President/COO Bill LaVigne (promoted 2025) and CFO LeRoy Lindenfelser.

Name

The Bank of Elk River

Legal name

The Bank of Elk River

Website

https://thebankofelkriver.com

Company type

Private

Founded year

1885

Operating status

Operating

Headcount range

101–250 employees

Short description

The Bank of Elk River is a privately held, family-owned Minnesota community bank founded in 1885, operating four branches (with a fifth opening in Andover in September 2026), $680M+ in assets, serving consumers, SMBs, CRE investors, nonprofits, and licensed cannabis businesses across Sherburne, Wright, Anoka, and Hennepin counties.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Commercial Banking (52211)

SIC

State Commercial Banks (6022)

akta.pro primary industry

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

akta.pro secondary industry

SBA/USDA Government-Backed Loan Intermediation (FSAEAEAI)

Keywords

• Community banking services
• Small business lending
• Commercial real estate loans
• SBA preferred lending
• Personal banking products

Headquarters

HQ city

Elk River

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

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

Revenue model

1. Net Interest Income: Interest earned on loans (commercial real estate, SBA, commercial term loans, personal mortgages, auto loans, home equity) minus interest paid on deposits. Core revenue driver for community bank.
2. Deposit Account Fees: Monthly service charges, overdraft/NSF fees, wire transfer fees, ATM fees, paper statement fees, and business checking account fees. Cannabis business checking $500/month.
3. Treasury Management Services: ACH origination, merchant services, wire transfers, and Remote Deposit Capture. Merchant services powered by Global Payments with competitive pricing.
4. Credit Card Interchange: Business and personal credit cards issued through Elan Financial Services. Bank earns interchange on card transactions.
5. Financial Planning/Insurance Referral Fees: Partnership with Realize Financial Advisors for retirement planning, insurance, and investment products. Referral arrangement for financial advisory services.
6. CDARS/ICS Service Fees: Fee income for placing large deposits through IntraFi network. Deposits exchanged dollar-for-dollar allowing local lending retention.

Pricing tiers

Go-to-market motion3 records

Distribution channels7 records

Marketing channels10 records

Core offering

The Bank of Elk River is a community bank providing deposit accounts (checking, savings, CDs, IRAs), consumer and commercial loans (mortgages, home equity, auto, SBA, commercial real estate, business lines of credit), digital banking, treasury management for businesses, and specialized cannabis banking. It operates four Minnesota branches plus a fifth in Andover opening September 2026, and earns revenue from net interest income plus service and interchange fees.

Product overview

The Bank of Elk River is a family-owned community bank (founded 1885, $680+ million in assets) offering a comprehensive suite of banking products organized as a platform-plus-modules architecture. The core banking platform encompasses personal and business checking and savings accounts, CDs/IRAs, home and vehicle loans, and digital banking. Module add-ons extend functionality including Treasury Management services (ACH, merchant services, wire transfers, Remote Deposits), integrated accounting (Autobooks), mobile payments (RapidPay), merchant processing, fraud protection, specialized cannabis banking, and financial planning through Realize Financial Advisors. Business banking products span multiple tiers from startup (Essential+) to enterprise (Enterprise+), while consumer products include tiered interest checking and savings with rewards programs. The bank leverages Banno (Jack Henry) for digital banking infrastructure and partners with Global Payments for merchant services, Autobooks for accounting, and Empyreal Logistics for cannabis cash management.

Differentiator

Problem solved

Functional benefit

Products and services

• Personal Checking Tiered personal checking accounts including Interest Boost Checking (tiered interest with rate boost for eStatement enrollment and debit card purchases), Cashback Checking (reward points on debit purchases), and Everyday Checking (basic low-minimum account). Targets individuals and households managing everyday banking, debit card spending, and digital wallet usage.
• Personal Savings Personal savings accounts including Everyday Savings (basic tiered-interest account with $25 opening) and Momentum Money Market (higher-tier earnings with check-writing). Targets individuals and households seeking to grow savings with competitive yields.
• CDs & IRAs Certificate of Deposit (CD) accounts with terms from 91 days to 60 months at 2.02% to 3.29% APY (plus 5-month and 15-month specials), Traditional IRA, and Roth IRA products. Targets individuals and households seeking fixed-rate deposits and tax-advantaged retirement savings.
• Business Checking Tiered business checking accounts including Essential+ (no monthly fee for startups), Growth+ (higher transaction limits with treasury management perks), Enterprise+ (earnings credit for larger balances), Nonprofit+ (interest-bearing with unlimited transactions), and Cannabis Business Checking (flat-rate $500/month with 2.00% earnings credit). Targets small and mid-market businesses, nonprofits, and licensed cannabis businesses.
• Business Savings Business savings accounts including Ascend+ Business Savings (tiered interest) and Summit+ Business Money Market (higher-tier earnings on larger balances with check-writing capabilities). Targets businesses, nonprofits, and cannabis businesses seeking to earn interest on operating cash.
• Business Loans Commercial lending including Commercial Real Estate Loans (office, industrial, retail, mini-storage, hospitality), SBA Loans (7(a) up to $5M, 504 up to $5M, CAPLines, Express), Commercial Term Loans, Business Lines of Credit, Special Loan Programs, and Letters of Credit. Financing from $1,000 to $13 million. SBA Preferred Lender status. Targets local small and mid-market businesses.
• Digital Banking Jack Henry Banno-powered online and mobile banking platform with iOS and Android apps, mobile check deposit, bill pay, account alerts, Zelle P2P, digital wallets (Apple Pay, Google Pay, Samsung Pay, Fitbit Pay), and Money Manager budgeting tools. Targets consumer and business customers seeking self-service account access.
• Treasury Management Business cash management services including Conversations secure messaging, User Management, Reporting & Alerts, Positive Pay fraud detection, ACH Origination, Merchant Services, Wire Transfers, and Remote Deposits. Basic tools free; advanced tools for additional fee. Targets businesses needing cash management and fraud protection.
• Business Credit Cards Business credit cards offered through Elan Financial Services with options for low rate, cash back, or flexible rewards. Includes free online expense reporting, no-fee employee cards, mobile payment capability, and zero fraud liability. Issued under Visa/Mastercard licenses. Targets small and mid-market businesses.
• Home Loans Mortgage products including Fixed-Rate Conventional, In-House Fixed-Rate, In-House Adjustable-Rate (5/5 ARM, 10/1 ARM), New Construction, USDA Rural Development, FHA, and VA loans. Competitive rates with flexible terms and Heroes Program for first responders. Targets homeowners and prospective homeowners.
• Home Equity Loans & Lines Home equity financing including Home Equity Loans (lump-sum fixed-rate) and HELOCs (revolving credit lines) for home improvements, debt consolidation, and major purchases. Targets existing homeowners looking to leverage property equity.
• Vehicle & RV Loans Financing for automobiles, trucks, RVs, boats, ATVs, UTVs, and motorcycles with competitive rates and flexible terms for new or used purchases plus refinancing options. Targets individual consumers purchasing or refinancing recreational and personal vehicles.
• Cannabis Banking Specialized cannabis banking for licensed Minnesota cannabis businesses including Cannabis Checking (flat-rate $500/month, 2.00% earnings credit, smart-safe compatible), Cannabis Money Market (tiered interest), and armored transport integration through Empyreal Logistics. Targets cannabis cultivators, processors, transporters, and dispensaries operating under Minnesota's regulated cannabis market.
• Personal Credit Cards Consumer credit cards through Elan Financial Services with options for cash back, rewards, or balance transfer, accepted at millions of locations worldwide under Visa and Mastercard. Targets individual consumers for everyday spending and travel.
• Merchant Services Debit and credit card processing via Global Payments partnership with next-day funding, 24/7 US-based support, comprehensive reporting, and point-of-sale solutions including the Genius system. Targets small and mid-market businesses accepting card payments.
• Life Planning / Realize Financial Advisors Financial advisory services through partner Realize Financial Advisors including retirement planning (Traditional/Roth IRA, 403(b), 457, SEP, Solo 401k), estate planning, and insurance services. Targets individuals and business owners seeking holistic financial planning.

Quantifiable outcome

• Local decision-making for business loans
• +3 more outcomes

Named customers7 records

Segments6 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration10 records

Feature3 records

Partnerships

Twelve partnerships are on record, tiered core and minor.

• Global PaymentscoreTechnology or IntegrationPartnership with Global Payments for merchant services including debit/credit card processing, point-of-sale solutions (Genius), inventory management, next-day funding, and 24/7 US-based support. Global Payments also provides data breach security with up to $100,000 coverage per location.
• AutobookscoreTechnology or IntegrationIntegrated accounting and bookkeeping solution within digital banking platform. Enables invoice creation, online payment acceptance, and financial reporting. 3.49% for card payments, 1% for ACH. Import from QuickBooks supported.
• IntraFi Network (ICS & CDARS)coreTechnology or IntegrationFDIC insurance coverage for deposits exceeding $250,000 through deposit network. Funds divided across network banks in $250,000 increments. Deposits exchanged dollar-for-dollar allowing bank to retain funds for local lending.
• Empyreal LogisticscoreImplementation/ SI/ Consulting PartnerArmored car service required for cannabis business banking accounts. Transports currency from smart safes. Smart safe compatible with provisional credit for same-business-day deposits.
• MoovcoreTechnology or IntegrationPayment processor for RapidPay mobile payment solution. 2.6% + $0.15 for tap-to-pay, 2.9% + $0.30 for online payments. Next-day funds availability. Dispute resolution support.
• Realize Financial AdvisorscoreStrategic or Co-development PartnerFinancial planning, retirement planning (IRAs, 403b, 457, SEP, Solo 401k), estate planning, and insurance services. Pete Reiner as dedicated advisor with 25+ years business experience. Referrals from bank branches.
• ZuntaFiminorChannel Partner/ Reseller/ DistributorPrivate student loan provider for undergraduate, graduate, and refinancing options. Fixed and variable rate options. Cosigner support for lower rates.
• Elan Financial ServicescoreTechnology or IntegrationCredit card issuer for business and personal credit cards. Provides zero fraud liability, mobile payment capability, 24/7 cardmember service. Cards issued under Visa and Mastercard licenses.
• Jack Henry (Banno)coreTechnology or IntegrationDigital banking platform provider. Banno Application handles personal information, app activity, device IDs, location data (with permission), and financial information. Analytics, fraud prevention, and security services.
• MoneyPass (Fiserv)coreChannel Partner/ Reseller/ DistributorSurcharge-free ATM network providing access to 37,000+ ATMs nationwide. Bank participates in MoneyPass network with no surcharges on transactions at MoneyPass ATMs.
• U.S. Small Business Administration (SBA)coreStrategic or Co-development PartnerSBA Preferred Lender status enables streamlined loan approval. Programs include 7(a) up to $5 million, 504 loans up to $5 million, CAPLines, and Express Loans. Preferred Lender status is highest honor from SBA.
• Iowa Bankers Mortgage CompanyminorStrategic or Co-development PartnerUSDA Rural Development loans funded and serviced through Iowa Bankers Mortgage Company. Provides government-backed mortgage options for rural home purchases.

Scale indicators8 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Deerwood Bank: East-central Minnesota community bank offering business lending, SBA loans, treasury management, and consumer banking to similar small and mid-sized business segments. Closest analog to The Bank of Elk River by geography and product mix.
• Bell Bank: Upper Midwest community bank headquartered in North Dakota with significant Minnesota presence. Offers commercial banking, treasury management, and is consistently recognized as a Top Workplace, providing a comparable employee-ownership community bank model.
• Stearns Bank: Minnesota-based community bank with national commercial lending reach, including SBA and equipment financing. Comparable business lending focus and mid-market customer profile within the same regulatory and competitive landscape.

Broad incumbents

• Bremer Bank: Large Minnesota-headquartered regional bank offering full commercial, wealth, and treasury management services across the Twin Cities and broader Minnesota. Direct overlap in commercial lending and SMB banking within the same geographic market.
• Old National Bank: Multi-state regional bank with Minnesota presence (formerly KleinBank). Competes for commercial lending and SMB deposits in the Twin Cities metro, providing a broader-incumbent alternative for the same customer base.

Regional players

• North Star Credit Union: Minnesota-based credit union serving similar Twin Cities suburban and exurban communities. Competes for personal and small-business banking relationships across overlapping customer segments in the regional market.
• Anoka Hennepin Credit Union: Member-owned credit union serving the same Anoka county region as The Bank of Elk River. Direct competition for consumer deposits and personal lending within the same geography, though operating under a cooperative rather than commercial banking charter.
• Affinity Plus Federal Credit Union: Minnesota-based member-owned credit union offering consumer and business banking services across the Twin Cities metro. Provides alternative cooperative banking option for the same consumer and small-business segments served by The Bank of Elk River.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/thebankofer
• YouTubeyoutube.com/user/thebankofelkriver
• Facebookfacebook.com/thebankofelkriver
• LinkedInlinkedin.com/company/the-bank-of-elk-river
• Instagraminstagram.com/thebankofelkriver

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds

Investors

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

M&A

Investments

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

Frequently asked questions about The Bank of Elk River