Business First Bank history

Although the Bank’s charter did not expire until 1811, discussions about renewing it began much earlier.

In April of 1929, just one-half year before the great stock market crash, 85 banks located in the Ninth Federal Reserve district joined together in a loose confederation called First Bank Stock Investment Corporation.

As the depression grew worse during the first few months of Franklin Roosevelt's presidency, he decided in early 1933 to close all the nation's banks for 10 days.

The company's installment loan system was initially brought in during 1959 and was still in use.

Confederation management recognized the need for more centralized control, and in 1982 began to prepare a comprehensive strategy for this purpose.

Under the bank's own credit examination, its credit losses amounted to $424 million by 1986.

With decreasing capital levels resulting from the securities and bond losses, rising noninterest costs, an increasing amount of nonperforming assets, and weakening profitability, the company announced a comprehensive reorganization strategy in late 1989.

After a four month search, in January of 1990 the First Bank Board of Directors hired John F. (Jack) Grundhofer to act as chairman, president, and chief executive officer.

By 1992, a customer could walk into any of First Bank's affiliates in the Twin Cities area and get a cashier's check or automobile loan within 10 minutes.

In May of 1994, the company confirmed its acquisition of Metropolitan Financial Corporation for approximately $800 million.

Under Grundhofer's leadership, by the beginning of 1995 First Bank had grown into one of the largest and most successful of the regional banks.

Cowen, David J., Richard Sylla, and Robert E. Wright, “The United States Panic of 1792: Financial Crisis Management and the Lender of Last Resort,” mimeo (July 2006).

Ranked by its 3-year average return on average equity by American Banker, 2014