The Founding of a Maverick Bank

Inside This Issue:

Learn how Bell Bank bucked trends and • blazed trails from the very beginning bell.bank 15 Broadway | Fargo, ND 58102 • Mary Locken explains crucial 3 Big Benefits considerations for business succession BUCKING TRENDS OF WORKING WITH planning & BLAZING TRAILS – • Find out 3 big benefits of working with PRIVATE BANKING private banking & wealth management WEALTH the Founding of a Market Performance MANAGEMENT& July People with significant wealth often have S&P 500 Index 8.548 % Maverick Bank more complex financial requirements, so S&P 1500 Composite Index ...... 8.135 % Bell has never been a typical bank – or Bell Bank’s private banking and wealth Russell 2000 Index ...... 4.292 % company. From its humble beginnings, management departments are designed Russell 3000 Index ...... 8.240 % 701.451.3000 | 800.709.5781 when Bell opened in 1966 as State to offer specialized services for high- Working with both private banking and 3. Increased efficiency MSCI Emerging Markets Index ...... 5.078 % Bank of Fargo in a corner office of the net-worth individuals and their families. wealth management at Bell can benefit If your banking, financial and estate Dow Jones Industrial Average ...... 5.076 % Deposit and loan products are offered through Bell Bank, Member FDIC. Products and services offered through Bell Bank Wealth Management are: Northport Shopping Center in Fargo, These services address both personal you in 3 major ways: planning, investments and trust services MSCI EAFE Index ...... 5.333 % and business financial needs and include Not FDIC insured | No Bank Guarantee | May lose value | Not a deposit | Not insured by any federal government agency. are all handled at Bell, we can set up joint NASDAQ Composite Index 9.679 % N.D., the bank did things its own way. access to a comprehensive array of 1. Comprehensive planning meetings, so we can make sure everyone Bloomberg Barclays US Agg Total ...... 1.830 % (Take, for example, the rabbit cages banking options and services tailored The biggest benefit to working with Bell is on the same page when it comes to This newsletter has been written for the general information of clients and friends of Bell Bank. It is not intended, nor may it be relied upon, as tax or legal Bloomberg Barclays US Corporate 2.743 % Source: Bloomberg borrowed from a neighboring business specifically to what you need. on every aspect of your banking is we can advice with respect to any matter. This newsletter also cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by the your finances, and you don’t have to worry Internal Revenue Service or other taxing authority. owner to use as a makeshift teller line, build the most comprehensive financial about scheduling multiple appointments. In a private banking relationship, plan possible for you, because we’re able because the teller line was still unfinished your banker works as your go-to to attain a deep understanding of your “Joint calls and meetings provide clients when the bank opened.) financial advisor: family, finances and financial goals. with the full force of the bank and all we have to offer,” notes Lloyd Nelson, senior Launched by a group of problem-solvers Assisting you with everything • “Bell’s private banking team is made up vice president and Twin Cities private and outside-the-box-thinkers (before that from deposit accounts and credit of a group of sophisticated, experienced banking manager. “Our bankers and was a trendy trait to have), Bell Bank’s cards to consumer, business and professionals,” notes Ben Allen III, senior advisors are continually learning to stay Wealth Management – Minneapolis most notable “maverick” moves were home loans vice president and private banking on top of the latest industry trends and Our wealth management teams are dedicated to a single mission – to help you navigate officer based in our Camelback, Ariz., best practices. For one person to know opening earlier – and staying open later Ensuring your day-to-day banking a complex financial world in pursuit of your goals, whether you’re looking for help: • offices. “When you work with private everything outside of their discipline is – than any other bank and forgoing fees goes smoothly banking and wealth management at the almost impossible. Working together is an Investing toward larger goals that most other banks charged. same bank, we’re able to take a holistic effective and efficient way for us to bring • Coordinating all of your loans with JASON BROOKS • approach to solving your financial issues the whole portfolio to the client.” customized terms and preferred SCHULLER, JD, AIF® BOLLINGER Developing a custom financial plan in a harmonious way. When we all work SVP/Wealth & Fiduciary SVP/Twin Cities Wealth • interest rates Division Manager Management Director together, we make clients' lives easier and At Bell, we put your best interests first, 952.905.5057 952.905.5063 Administering trusts or estates • Connecting you with specialized gain additional insight into how we can so we’re not going to try selling you • services, such as investment best serve our clients. Bell does a great something you don’t need. Instead, we Identifying solutions and resources for employer- management, financial planning, job of knocking down department silos work with you to formulate a plan to help • and serving clients the best way we can.” sponsored retirement plans and IRAs. estate planning and personal trust you work toward your financial goals in the best ways possible. We have some of the best 2. Continuous service • Managing personal investments 2021 “financial planners and portfolio When you work with Bell’s private banking “Our process is a little different from and wealth management teams, we’re Working one-on-one with a private banking expert managers in the nation across our everybody else,” Lloyd explains. “A lot of KATE SEAN • JULY company,” remarks Paul Benson, able to help not only you, but also your other shops want to sell their product first. GEHRMAN DEICHERT, CFP® beneficiaries, so you can relax knowing that VP/Wealth VP/Client As one of the largest privately held money managers in the country, Bell Bank senior vice president and private We don’t do it that way. At Bell, we focus on & Fiduciary Advisor Portfolio Manager even after your death, we’ll do whatever Wealth Management works with individuals, family offices, employers and banking manager in our Fargo financial planning first, and then figure out 952.905.5496 952.905.5013 we can to assist your family and make sure institutions nationwide to provide a full range of services – with recommendations headquarters location. “We also how investment management fits into the your wishes are carried out. puzzle. Because of our experience level, offered in our clients’ best interest. We work directly with you, as well as with your have attorneys on staff who we can review your financial statement and accountants, legal counsel and other advisors as needed. We’re also cost-effective, offer estate planning guidance. “If you’re able to have a deeper banking spot opportunities.” with transparent, competitive fees for investments, custody, 401(k), IRA, fiduciary Our goal is to build long-term relationship with clients, when there is a and other services at an attractive, bundled price. banking relationships, and the death in the family, they know they have If you’re looking for first-class service and a main advantage when you work a whole team behind them,” affirms Chris comprehensive approach to managing your Ultimately, you set your financial goals based on what’s important to you, your with Bell is you have a team of Theis, vice president and private banking company or your institution. Bell provides professional guidance and planning finances, contact us at 800.709.5781 to JOE BREN This is an artistic rendering of the 12-story building Bell has agreed people who really get to know team lead in Bell’s Duluth, Minn., location. POPE, CPA IRAMINA, CTFA to help you begin, then resources and consistent management to give you find out how Bell’s wealth management and SVP/Client Wealth to purchase at 520 Main Ave. in Fargo, N.D., with plans to completely “The best thing private banking offers confidence along the path to your destination – and, always, service that reaches you and pay attention to your private banking teams can work together to Portfolio Manager & Fiduciary Associate remodel the building beginning in 2022 and reopen it in late 2023. banking relationship.” clients is a very strong banking relationship.” help you. 952.905.5053 952.905.5308 above and beyond.

31071 NEWSLETTER Bell Wealth July 2021.indd 1 7/14/21 12:36 PM WHAT’S NEW AT BELL ORIGINAL FOUNDERS Bell Bank opened its first full-service

State Bank of Fargo initially downtown Minneapolis location in City Center, and we’re excited to be part of the revitalization had 85 to 90 stockholders with and continued development in the heart of the principal stockholder being Minneapolis. Offering a full range of banking Thomas “Buck” Snortland, a and financial services and guidance, our team farmer and businessman from of experienced bankers is eager to welcome downtown customers who want to connect Sharon, N.D. He saw building with a bank they’ll love! a great place to work and do business as an opportunity to We also plan to host appreciation and meet- have a positive impact on people and-greet events on our Nicollet-view terrace and their families. and in our unique Champions Club – which spotlights Bell Champions including Ben Leber, Lindsay Whalen, Chris Hawkey, Gavin Kaysen “He wanted to provide a service and Marney Gellner. he didn’t feel other banks were delivering,” explains Laura We’re committed to building relationships Snortland Fairfield, Buck’s that make a difference for people who work daughter and a major Bell Bank or live in the Minneapolis financial district and MARY LOCKEN, JD SVP | WEALTH & FIDUCIARY DIVISION MANAGER shareholder. “My dad was an its surrounding neighborhoods – whether that means helping commuters on the go who are idea kind of person. He was This commemorative panel, located in Bell Bank’s Fargo headquarters branch, highlights important moments in the company’s history. looking for convenient banking (with a personal very entrepreneurial.” touch when you need it) … or a business owner, BANISHING 7 a.m. to 6 p.m. CT weekends. At the never the point,” explains Laura Snortland Even as Bell has grown to be one of the entrepreneur or someone who needs more expenses are paid. If there are no guidance tax laws, which have changed drastically ‘BANKERS’ HOURS’ same time, Bankrate points out that “a Fairfield, Buck’s daughter and a major Bell largest independently owned banks in the The original board of directors complex financial guidance in banking, lending, CRUCIAL directives in place for payment of taxes over the last two decades. substantial number of banks” still operate Bank shareholder. “As the bank continued nation with assets of more than $10 billion, were: Dr. G. Wilson Hunter (the mortgage, wealth management or insurance. and various expenses, business assets Back when “bankers’ hours” meant from 9 a.m. to 5 p.m., mainly because to grow and hire more people, he used to the bank continues to focus on happy We would love to connect with you to see what may have to be sold, or encumbered with bank’s first board president), CONSIDERATIONS FOR I have been in the estate-planning most banks didn’t open until 10 a.m. and “extending bank hours is expensive.” say, ‘That’s a lot of families being fed.’” employees and happy customers and has you need and what we can do, together. debt, to cover the taxes and post-death business for several years and have closed by 3 p.m., Bell was open 9 a.m. to won numerous customer service and best Eugene Rich, Charles Tighe, administration expenses. seen many people who have achieved 9 p.m. Monday through Friday and 9 a.m. In 1985, The Forum reported that workplace awards because of it. Thomas “Buck” Snortland, Gen. Bell has also entered into an agreement to great business success, but they didn’t to 1 p.m. Saturdays. FORGOING COMMON FEES State Bank of Fargo scored the largest Homer Goebel, William Corwin, purchase a 12-story building at 520 Main Business What’s so difficult in those situations is that take the time to create effective estate Convenient hours for customers aren’t percentage of deposit growth – and that In the 1994 article, Richard Solberg, Norman Tenneson, H. Rex Ave. in Fargo, N.D., situated at the south end substantial business assets may have to be and business succession plans that number continued to climb. In 2020, Bell Even the bank’s original jingle, “State Bank the only way Bell has repeatedly bucked Bell’s current board chairman (then bank Olson, Vernus Loberg and of Broadway and overlooking downtown Succession borrowed against or sold on a forced-timing would have carried out their wishes. of Fargo, the service you seek, 64 smiling banking trends. A 1980 Forum of Fargo- led the Fargo-Moorhead-West Fargo president) is quoted as saying, “We don’t Fargo and Island Park. Built in 1973, the basis, perhaps during undesirable market Dean Wegenast. banking hours a week,” touted the unique Moorhead newspaper article reported, market, where the bank is headquartered, try to operate any differently as we grow” – 105,000-square-foot property includes two conditions, so it might be impossible to Some business owners avoid making operating hours, and an early slogan “Free checking is tough to come by,” with a deposit market share of 43% an attitude Bell still works hard to maintain. levels of parking below the building, as well Planning obtain even fair market value for business an estate plan because of complicated referred to the company as a “bank and adding, “The exception is the State Bank out of 22 banks, according to annual as a drive-up banking structure. holdings and assets. Some tax laws permit family circumstances, including: a half,” because of the longer hours. of Fargo.” At a time when most local banks FDIC figures. The huge advantage for us of being privately owned is being certain qualified estates (comprised of Bell plans to completely remodel the building You’ve worked hard to build, develop closely held business interests) to pay • Addiction “able to think longer-term than our publicly traded competitors beginning in 2022 and reopen it in late 2023. and grow your family-owned business – estate taxes over a 10-year installment Buck saw banking as a service industry, and his attitude was always do the right thing, and if – who have a lot of pressure on them for each quarter’s As Bell’s new corporate headquarters, the but without a strategic plan in place for time period, but you certainly don’t want • Feuding how to pass your business operations to roll the dice and hope your business tower project will house approximately 300 Blended family trees “you make money along the way, great, but that was never the point,” Laura explains. “As the bank earnings,” explains Michael Solberg, Bell’s president and CEO. employees, including many customer-facing and holdings on to the next generation, holdings and estate qualify for favorable • you might be leaving the future of your professionals, plus Bell’s executive team and tax treatment options. Poor money management continued to grow and hire more people, he used to say, ‘That’s a lot of families being fed.’” enterprise to the default provisions of • PRIVATE OWNERSHIP KEY our shareholders over a three-, five- and some administrative functions. Bell’s president 10-year period.” and CEO, Michael Solberg, says he and Bell’s state law. Planning ahead is key, and succession TO BELL BANK SUCCESS However, complicated family dynamics Most banks kept shorter hours because required a minimum balance of anywhere That phenomenal growth doesn’t leadership team envision a growing Bell Bank planning can be a streamlined process. make it even more important to have Creating a strategic plan for transitioning of the time it took to process and clear from $100 to $300 to qualify for a fee- happen by accident. It happens because One of the decisions that has allowed Bell Bell recognizes its employees have been footprint in Fargo’s revitalized downtown a strategic business succession and your business is key to ensuring your Bell’s wealth and fiduciary team will work checks, deposits and transfers. In the days free account, Bell (then called State Bank Bell continues to embrace a rather to do things differently is the bank has a huge part of the company’s success, area. He also expects Bell’s support teams to estate plan with provisions in place to business, financial, family and personal with you as a fiduciary liaison before automatic deposits, mobile and of Fargo) offered free checking with no unconventional bottom line mission remained privately owned since it was which is one of the reasons the bank continue to fill locations including the bank’s help minimize difficult and potential affairs are navigated in tandem with your online banking, typical “bankers’ hours” minimum balance. Most banks, according statement of happy employees, happy chartered – something rather rare for a started an employee stock ownership current headquarters at 3100 13th Ave. S. with your legal and tax advisors to heightened conflict situations. overall goals. made it difficult for workers to deposit to the article, wanted to get away from customers. That’s a big reason why a bank of its size. plan (ESOP) giving Bell employees in Fargo. build an optimum plan for effective their paychecks or resolve other financial small accounts where the bank’s profits 1994 Forum article reported, “Year in and ownership in the holding company. transition and succession of your Always look to the future – the future issues without making a special trip during didn’t cover the cost of service. year out, through good times and bad, “The huge advantage for us of being Because of the bank’s unique bottom line, What you want to avoid is a forced sale (Bell would We remain committed to keeping our business enterprise, paying taxes and management and ownership of your the workday. also later be the first Fargo-area bank State Bank of Fargo has grown.” The privately owned is being able to think employees are able to focus on making “headquarters here in Fargo, and our of your business holdings after your successful family-owned business, as and one of the first in the nation to start article discussed what Bell was doing longer-term than our publicly traded sure customers are happy instead of purchase of this major downtown space death due to cost-prohibitive estate and/ post-death administration expenses. well as flexibility for addressing tax competitors – who have a lot of pressure pushing sales. To this day, Bell offers better banking hours offering refunds on ATM fees.) right – and put how the bank treated reflects that,” Michael comments. “As or income tax expenses, illiquidity, post- consequences. A current business employees and customers high on that list. on them for each quarter’s earnings,” than most banks. Many of Bell’s full-service we open new bank branches and It is also important to review your succession plan with guidance from bank locations are open 7:30 a.m. to 6 Thomas “Buck” Snortland was one of It went on to say how Bell maintained its explains Michael Solberg, Bell’s president “We’ve always said our goal was to have death disposition fees, family disharmony documents periodically and update with mortgage offices in regions across the your legal and tax advisors will p.m., with the drive-up open until 7 p.m. Bell’s original founders and a principal “personal touch between employees and and CEO. “What we can do is make sure happy employees and customers, and if we or other potential challenges. revisions as changes inevitably unfold over significantly serve to help ensure a country, we are hiring people to support Additionally, the customer service phone stockholder. “Buck saw banking as a customers – something that’s seemingly we’re making smart investments, maybe get that part right, we’ll make a little money the course of time. Problems could arise smooth business transition consistent line has friendly bankers (not machines!) service industry, and his attitude was much harder to do for a bank with assets at the expense of this quarter’s or this along the way,” affirms Richard. “That all of our teams and customers. This The estate-planning process should from estate planning documents that are with your wishes and objectives. answering the phone seven days a week always do the right thing, and if you make of $200 million than one with assets of year’s earnings, knowing it’s the best culture and those values continue to local expansion helps sustain our include a business succession plan to woefully inconsistent with your current from 7 a.m. to 10 p.m. CT weekdays and money along the way, great, but that was $20 million.” Harder, but not impossible. thing for our employees, customers and this day.” continued growth.” direct how estate taxes and post-death circumstances, desires, concerns or estate

31071 NEWSLETTER Bell Wealth July 2021.indd 2 7/14/21 12:36 PM WHAT’S NEW AT BELL ORIGINAL FOUNDERS Bell Bank opened its first full-service

31071 NEWSLETTER Bell Wealth July 2021.indd 2 7/14/21 12:36 PM Inside This Issue:

31071 NEWSLETTER Bell Wealth July 2021.indd 1 7/14/21 12:36 PM Inside This Issue:

31071 NEWSLETTER Bell Wealth July 2021.indd 1 7/14/21 12:36 PM