Don't live in a zero sum world. It's a lonely place.

SBA 7a loans are definitely a risk point at some banks right now. If you look at Live Oak Bank (mostly a pure play 7a shop), results show continued deterioration in the portfolio.

It never ceases to amaze me when I haven't even heard of a guy who's got $10 billion cash to bid on U.S. Steel... Always interesting to see how these individuals made their wealth

Isn’t that built for the grill add on

He's in a unique position to take this type of risk. He's effectively doing a real time net present value calculation. Unfortunately, access to capital is more limiting to 99.9% of the businesses out there so spending that much to speed up a day is not practical. He's definitely quite the individual to watch.

I could hire 5-10 people right now. I can't find them.

We’ve built a bank from $90 million to $1.3 billion this past 12 years. It’s a different business than SMB but the issues are much the same as we grow and build. This is why I enjoy listening, visiting, and talking with SMBs.

Building a bank publicly isn’t easy, but it definitely is rewarding. From $90 million to $1.1 billion, it’s been a ride and the best part is reflecting on support we’ve been asked to provide and watching the impact it makes.

“The intelligent investor is a realist who sells to optimists and buys from pessimists.” Benjamin Graham

1/ At the end of July 2013, we invested $1.8MM to buy 49% of Flagship Financial Group, Inc. This was the start of one fun journey that continues today.

Today is my 12th anniversary at Flagship->Security Bank Bank & Trust Company. From $90 million in assets to $1.2 billion. Never would have guessed. A great team and communities make it so much fun to be a part of!

I’ve learned a lot leading what started as a $90 million bank to what is now a $1.1 billion bank with another nearly $500 million in trust assets. What a ride and what a team!

If you or your business is looking for a simple bank to keep your cash in, your local community bank is a great spot. We don't run complicated models and don't run in venture debt circles. We build networks of people to support the individuals on both the personal and business front.

It's amazing how often I bring up @garyvee in both social circles and banking circles and nobody has an idea who he is. Opportunity to be #crushingit

What I’ve Learned About Running a Bank Over time, I’ve realized that running a bank isn’t just about balance sheets and regulations...it’s about people, discipline, and clarity of purpose. A few lessons that have stuck with me: Deposits are trust before they are dollars. Every account is a vote of confidence. When customers place their money with you, they’re trusting that you’ll steward it well and use it to strengthen the community. Growth is simple, but not easy. Banks don’t grow because of flashy products. They grow because of relentless execution, consistency, and finding ways to be indispensable in people’s financial lives. Culture outperforms strategy. A motivated team who believes in the mission will outperform a brilliant plan executed half-heartedly. Build the right culture, and strategy follows. Risk management is leadership. Anyone can lend money in good times. The test comes in shaping a portfolio that can withstand the cycles. That requires courage to say “no” when everyone else is saying “yes.” Community is the real moat. Technology is accessible to everyone now. What lasts is the bank’s place in the community. How we are showing up, listening, and being part of the local fabric. Running a bank is less about transactions and more about transformation. It’s about helping people build businesses, buy homes, and fund ambitions that change the course of their lives. That’s the part of banking that makes this job worthwhile and what I love about banking most.

Hometown of Perham, MN represents on @mnwild commercial tonight.

The @wsj makes the claim that community banks are pulling back. I take offense to that sentiment. I am doubling down on SMB financing and we are grabbing market share. To hell with these naysayers trying to tell us how to bank our communities.

Instead of making private investments easier to get into 401ks, did we ever consider maybe we need it to be easier again to be public?

Banking is a very transparent industry. Numbers are publicly reported in detail every quarter on every FDIC insured bank. Credit unions are not nearly as transparent. CU call reports are very limited, they don't file summary of deposit reports annually, nor have to comply with the Community Reinvestment Act.

We were just a smidge shy of $1.3 billion in assets at the bank at end of Q3, still all local deposit funded (no brokered, no FHLB, just local people funding local people.) Now we need to complete the fourth well.

This year, I’ve been in banking for 20 years. This photo shows my first major commercial construction financing project: a medical office building in Farmington, Minnesota, circa 2007. I was so proud I took my wife out for a site photo. From day one I saw that lending is about more than numbers; it’s about vision, teamwork and serving a community’s needs. It has been rewarding to support borrowers who provide retail centers, housing and commercial space that meet local demand. Today, I’m proud to lead Security Bank & Trust Co., where over 150 colleagues work every day across Minnesota to fuel Minnesotans’ ambitions. The money you deposit here goes right back into our economy to help neighbors and friends achieve their dreams. I can’t think of a better job. Here’s to the next 20 years! Security Bank & Trust Company is a Member FDIC and Equal Housing Lender.

No bank wants to collect overdraft fees from their clients. Its a fee for service of covering a check the client wrote without the proper money in their account. i.e. an unsecured lending of money. Banks prefer clients keep money in their accounts in amounts sufficient to cover the checks written. Restrictions on the fee charged will only work to restrict access to these unsecured loans and likely restrict access to money going forward.

We have over $100 million in reserves at the federal reserve, and currently have no FHLB borrowings no brokered and no internet certificates of deposits at my banks. We have been monitoring AOCI for months at local and national banks. Just check my Twitter stream. We did so while still generating a good return for shareholders. Maybe some banks are playing defense, I am playing offense. Come bank with us.

I've been President of a bank for over 10 years and I am an older millennial. This misnomer among baby boomers and the silent generation that we are somehow not capable of leading needs to stop.

Minnesota is a great state. We have an excellent education system, good wages, good lifestyle between work and play (lakes, outdoors, health). I really wish we would promote this more and I wish we would reduce our tax rates from 5th highest in the country to 25th or less.

Your problem is that you are talking with a bankruptcy attorney

Am I the only geek that tracks their net worth growth year over year? My PFS is always updated first week of the new year. Results shared with the wife. Expectations for the new year established. I look at the return as a reflection of frugality combined with return on personal capital...

I can't help but hear this, see this concept regularly. Even my kid's hockey coach, "doing the small things right make the big things easier." Why Small Habits Make a Big Difference fs.blog/2018/12/habits-james… via @farnamstreet

50 year mortgages… we call that renting not owning…

Another boring day at the office. Mainstreet is very stable Twitter folks.

We’ve announced exciting news today on the organizations’ future. In an exciting time for our two banks, their parent-bank holding companies, Flagship Financial Group, Inc. and Security Bancshares Co., affiliates under common control, applied this past July to the Minnesota Department of Commerce and the Federal Reserve Bank of Minneapolis to merge. It is anticipated that the merger will be completed later in the fourth quarter of this year. We are also happy to announce that SECURITY BANK & TRUST CO. has entered into an Agreement and Plan of Merger with CAMBRIDGE STATE BANK located at 127 South Main St., Cambridge, MN 55008. The transaction is subject to regulatory approvals with a closing anticipated in the first quarter of 2024. “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,” said Andy Schornack. “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.” Kim Erickson, who has had the honor of being the 4th “President Erickson” of Cambridge State Bank since its founding 110 years ago, following in the footsteps of her father, George Erickson, her grandfather, Elmer Erickson, and her great-grandfather Erick Erickson, stated, "CAMBRIDGE STATE BANK has always been a community and family bank, and I am so pleased to be able to say that we are merging with SECURITY BANK & TRUST CO., which like us, is a family bank led by Gale Hoese. I have known Gale for over 50 years. His parents and my parents were friends. He has been my banker. Gale and his team, including our bank’s new President, Andy Schornack, know how to be local, community bankers, and they are looking forward to welcoming all of our staff into their team. I am looking forward to a smooth transition for all of our customers, our staff, and for me as I move to my retirement years." Shortly after the CAMBRIDGE STATE BANK merger is completed, FLAGSHIP BANK MINNESOTA will merge with SECURITY BANK & TRUST CO. under the SECURITY BANK & TRUST CO. banner. The transaction is subject to regulatory approval and expected to close by the end of the second quarter of 2024. The mergers will bring together the values, strengths, and expertise of three long-standing Minnesota financial institutions, poised to be the community bank of choice in the communities they serve. When the three mergers are consummated, Security Bank & Trust Co. will be the 17th largest state bank in Minnesota with approximately $1.1 billion in total assets and 21 physical locations.

We have over $100,000,000 sitting at the Fed that I want to get lent out to growing MN small businesses. Please drop me a line if your MN business has a borrowing need. Security Bank & Trust Co. And Flagship Bank Minnesota are a Member FDIC and Equal Housing Lender.

Crazy to think it has been 10 years since I took the helm at Flagship Bank and 5 years since Security Bank & Trust co. One has grown from $90 million to $320 million and one from $510 million to $700 million. What a ride!

I am buying bank stocks. The dip in the treasury market rates actually provides support. Fundamentals still solid. You make real money investing in quality firms in times like these.

If you only remember one thing about banking, it’s that trust compounds faster than money. Lose it once, and no balance sheet can save you.

We are accepting deposits right now if you are looking to move from a bank you are not comfortable with. We are very liquid. Member FDIC and Equal Housing Lender.

Banks have not been out there running wild on asset quality and lending. Regulatory scrutiny over the past decade has been egregious. Why do you think nonbank lending firms have grown so much?

This why I don’t think MBS are a good fit for community and regional banks… agree or disagree? Most banks don’t have a funding structure, duration profile, or optionality tolerance that aligns well with MBS. MBS look attractive on paper because they offer higher nominal yields, but in practice they add volatility to both earnings and capital, especially when rate paths shift. Their negative convexity makes them behave like long-duration assets when rates rise and short-duration assets when rates fall, which is the opposite of what a bank typically wants for balance sheet stability. Furthermore, most of the MBS in these banks end in odd-lot positions which are less liquid and rarely move cleanly. They often carry a built-in loss on sale that is not factored into the original investment analysis, which makes the performance look better than it actually is once realized. Community and regional banks would be better off deploying capital into high-quality commercial, municipal loans, and laddered Treasuries, where they can control duration, reinvestment timing, and credit spread. The goal shouldn’t be to chase yield but to preserve flexibility and protect core funding value. MBS are greater fit for asset managers than deposit funded community and regional banks.

Nurturing the Intelligent Fanatic in our Children intelligentfanatics.com/2018… via @iddings_sean

A lot of people think you can achieve success overnight. I haven't seen it yet. It's always a grind before the shine.

Week one down post merger. Three banks into one in just over 60 days. A lot of work done, a lot yet to do. Still not used to looking at a balance sheet with over $1.1 billion in assets.

Another big bank, Bank of America this time, (Wells Fargo last time) settling with regulators over opening unauthorized accounts. Let me state that again, they opened accounts in their clients name without consent to do so. Flagship Bank Minnesota and Security Bank & Trust Co. have never done that and do not incentive our staff on number of new account openings. We focus on our client's needs and present options to meet them. This past week, the news media like Barron's, WSJ, and CNBC may be calling for small bank consolidation in support of their brethren but know that we continue to stand tall, focused on the hustle of providing great service coupled with the technology and funding to allow you to achieve your goals and dreams. We're growing and we ask you to join us and opt out of the big bank chaos and challenges. Feel free to drop me a note and I would be happy to see how we can help. We have a great team that is ready and willing to get to work for you. Flagship Bank Minnesota and Security Bank & Trust Co. are a Member FDIC and Equal Housing Lender.

Flagship Bank is now Security Bank & Trust Co. A lot of our team committed a lot of time to get us here and I am extremely grateful and proud.

Banking doesn’t need to be reinvented. It needs to be practiced with discipline. Every generation rediscovers the same truth... that trust takes years to build, seconds to lose, and decades to prove right again. Consistency is still the most underrated skill in finance.

1/ My first large investment, ~$120,000, I lost it all. It was a bank and it failed.

Leadership is earned through action and results. Take on the hard jobs. Take on the problems. Jump at the opportunities. As a generation, the millennials/younger gen X leaders need to stand up and build. Not only build but build together. We don't need approval to get at it.

Your and my definitions of elite are vastly different.

Finished Bitcoin Billionaires and now reading this book from @CamiRusso . Very nicely written. Really smooth read!

Honored to be a part of a great group of individuals tonight that were recognized as #40Under40 by the @MSPBJnews. Thanks to all of you that have supported the bank and me over the years!

Post merger branch network at Security Bank & Trust Co.

Met a guy on this app a couple of years back for dinner and something seemed off, he has a good size following here and was name dropping. I decided it wasn’t a good fit, glad I did. Turns out the firm he was at was a big fraud. Sometimes instincts are worth leaning into.

Tariffs are value destroying, no trade deal can make up for the value lost, and it is not clear there is a strategy. No deals, supply shock incoming, and tariffs are not generating actual income at the ports. Lose, lose, lose. There's no winner here people.

One of the fun things of being a small business banker is seeing the variety of businesses that exist and exist very profitably in the shadows. Don't judge a book by its cover.

This Friday we close on my fourth whole bank deal. Our team has been preparing for months. We do manual conversions so we are focused and in control. It's going to be a banner of a week. I can feel it!

One thing I am proud we offer at Security Bank & Trust is No Cost Health Insurance Premiums to Employees. No employee has a cost unless they need a doctor's visit. We cover the premium, they cover the deductible. We also support the deductible with a HSA Contribution.

Tried to talk with @POTUS today but I guess he wasn’t taking meetings from local bankers.

Getting a little panicked here Steve and David. $SIVB was very poorly structured from a funding basis and asset liability structure. Many very good banks carry significant liquidity and are not selling their bond portfolios overnight. There is no line outside of $JPM OR $BAC. Stop scaring people with these comments. Is this an issue, most definitely! However, the @FDICgov is very experienced in bank failures and will coordinate a very sound and organized dissolution.

He's lying I get a message every week from someone selling this service. We use @KnowBe4

I used to think @DavidSacks had some good insights but he really doesn’t understand banking and really should stop trying to talk as the expert on the @theallinpod. We are still looking to put money to work at our bank and know many other banks are doing the same.

You may have noticed that I have been diving deep on historical business players in the local arena. In my 40's, I really want to make as much impact and connect as many people as I can to make Minnesota a great place to live, work, and play. I'm hoping to help find, fund, and build the next generation of businesses to drive our state.

We took a little vacation down to Mexico this last week. What a great way to recharge with friends!

I’ve made most my wealth in owning and investing in banks. It’s a great industry but there are many nuances and sink holes that the broader audience rarely appreciates until they experience one.

Enjoyed the @MinnBankers conversation with @SenAmyKlobuchar today. Appreciated the opportunity to bring the news of Mainstreet to the Capitol.

I can buy a bank at 80% of tangible book, earning 1%+ ROA and 10%+ ROE with a 3% annual dividend. Seems like a safe spot to park some money. Draw back is no liquidity and trades on OTC so not going to be an in and out position.

Age old lessons from 1920s banking...

My mom spent 45 years building trust behind a clothing counter. She didn’t chase volume, she was building relationships. She knew every customer’s name, story, and style. That’s the same lesson I carry into banking every day: care first, growth follows.

Always enjoy listening to @iancassel. The difference between the best golfer and average is 2 strokes. Investing and banking is definitely similar. open.spotify.com/episode/6cQ…

Board packet continues to grow. I sometimes wonder what my board members think when I send them a novel every month to read. It's an easy 300+ pages to read though 😅

Another great podcast. A lot of lessons in this one that are worth revisiting over time.

From my family to yours, have a wonderful thanksgiving and holiday season! I am thankful to have this community to help me with ideas, strategies and meet great people along the way. Cheers!

Tales of credit stress in the banking sector have been greatly exaggerated, some banks over 9% down on mostly solid credit performance by most banks? Headlines and bank hate are definitely real…

Life doesn't need to be complex to be good.

Wow another proud moment tonight as our bank was recognized as the gold winner in Business Bank at the @TCBmag Best of Business awards. We also received awards for Commercial Lender and Wealth Management.

No banker/bond investor would pay a premium for an underwater bond. That theory is not practical. The deposits purchased will be gone as soon as it opens on Monday. I don't see the franchise worth much. The big banks will already gain. The loss to the FDIC fund is being quantified over the weekend before a deal can be done. Not sure many banks would buy these loans.

Getting my 9 year old hooked on golf

$12 million in bonds maturing on 9/30... yield is 0.484%... ready to get that money back in.

I am pretty sure the US postal service has a mole in their system emboldening and enabling check fraud. If you are a business, sign up for positive pay and use ACH and wires.

If you are paying over 9.25% on your business loan, you need to talk with a community banker. There I said it. Security Bank & Trust Co. and Flagship Bank Minnesota are a Member FDIC and Equal Housing Lender.

Have to enjoy these hottakes...in @barronsonline this time. Another individual who has not worked in a community bank or traditional bank providing insight on small banks. It's no secret that community banks provide roughly 60% of all small business loans. Consolidation is not going to improve access and lack of consolidation is not because there are no buyers or the process is slow. It's because community bankers don't want to sell. They are proud to work in their communities and are happy with their stable returns over many years. Consolidation is occurring and likely to continue, that I agree. We plan to continue to be an acquirerer but more so because of seller succession challenges in the near term than seller financial challenges. AOCI marks will need to subside more before more potential mergers appear.

I am hyper focused on this idea that SMB ownership among millennials and gen z is going to be a bull market the next decade.

Okay early look on call reports and earnings at banks is that banks are doing very well. The market doesn't know what to do. You can see why HoldCo is pushing share buybacks so much. Nearly everything is on sale.

I am really excited about also taking a leadership position at Security Bank & Trust Co. bankbeat.biz/flagships-schor…

The last few years have provided a lot of free money safety to protect against poor execution and operational performance. The next few years the best operators will rise to the top. Forget financial engineering because the name of the game is operational improvement.

I still don’t understand why community bankers would be investing in mortgage backed securities in the current market or much of any market these days.

Going to be talking a lot about running and acquiring banks in my presentation at the @MainStSummit. Any particular questions that interest people?

I believe all my studies of the industrial revolution and banking history is going to be critical in the coming couple of decades. I mean we are literally encouraging banks to create their own stablecoins not much difference to banks making their own currency in the mid-1800s...

SBA loan is no question. Conventional Bank loans is 99% of the time. It is best to get used to knowing if you’re the principal, you are on the line.

Might be the only banker in shorts at the acquire or be acquired banking conference.

We had a nice long weekend in the Rockies, I can see why Denver area is hopping.

Not a surprising headline if you are a banker...

Largest demographics aren't in the home game yet, driving multifamily. I am not much a believer since age in place is a new theme.

It's hard to argue that University of St. Thomas isn't winning in Minnesota right now. New facilities, a lot of momentum. Rankings nearly higher than University of Minnesota on WSJ study this past month. startribune.com/st-thomas-re…

One month or so into doing 100 push-ups a day. Feel a lot better and starting to look better too.

Jaimie Dimon on How Warren Buffett Influenced his Communication Style intelligentfanatics.com/foru… via @iddings_sean

I am having some great experiences on this app lately. Great DM discussions and ideas. People doing great things everywhere. Keeps me going. Thanks everyone

"My counter bet is I don't care" 🤣 he's a character and one to follow.

We are holding health insurance premiums steady for our employees in 2026 at $0. Spouse/Family rates are also held at a flat rate. This is an important way we support our team.

Super excited!

Hit over a $1 billion in assets at my banks this week. Don’t expect it to hold, PPP loans increasing the size, but quite the year. Between the three, we were at just shy of $800 million March 2019. Reflection of my team, local market dynamics, growth, and people conserving cash.

Good actions tonight by the banking regulators. The banking system will pay the cost of the FDIC insurance losses on Silicon Valley Bank and Signature Bank. The system continues to work and will get stronger as a result.

I muted a lot of names this weekend and my feed has improved 10 fold. A lot of squawkers out there and quieting them has improved my ability to see more thoughtful and interesting posts.