Minnesota holding companies to merge

Eden Prairie, Minn.-based Flagship Financial Group and Glencoe, Minn.-based Security Bancshares Co., will merge by the end of the year.

The companies are already under common control. Flagship Financial is the holding company of the $319 million Flagship Bank, while Security Bancshares is holding company of the $703 million Security Bank and Trust. The two banks will merge in the second quarter of next year. 

Separately, Security Bank and Trust will acquire $87.3 million, east central Minnesota-based Cambridge State Bank in the first quarter of 2024. Once the deals close, Security Bank & Trust will grow to an approximately $1.1 billion bank with 21 branches. 

Security Bank and Trust President and CEO Andy Schornack announced the pending mergers Oct. 24 on X, formerly known as Twitter. 

“We are excited by the opportunity to extend our financial services to the Cambridge community and welcome the dedicated employees of Cambridge State Bank to our team,” he said. “This partnership allows us to continue growing together with our communities and employees, building on our long history of serving the unique financial needs of Minnesota residents.”