Highland Bank buying Boundary Waters Bank

St. Paul, Minn.-based Highland Bank is buying northeast Minnesota-based Boundary Waters Bank.

The acquisition includes Boundary Waters Bank’s charter and three Minnesota locations, in Ely and the Twin Cities suburbs of Woodbury and Blaine. By buying the Ely-based Boundary Waters Bank, the currently $630 million Highland will grow to an approximately $750 million institution.  

The deal is expected to be finalized by the end of this year. 

“This merger presented an ideal opportunity to expand our organization, blending our individual strengths to provide even greater value to our communities and shareholders alike,” said Highland Bank CEO Rick Wall. 

Boundary Waters Bank President and CEO Sarah Kolek spoke highly of Highland Bank. “They have a long history of demonstrating a strong commitment to their customers and communities they serve,” she said. “Joining forces will extend our reach by providing customers access to a larger banking network and expanded services. Culturally, the union is a natural fit.”

For Highland Bank, Ballard Spahr served as legal adviser and Stephens Inc., provided investment advice. Olsen Palmer LLC served as adviser for Boundary Waters Bank, with Baird Holm LLP acting as legal adviser.