KodaBank hits big cities in ND

Bank to have 12 locations in Minnesota ND

By Kevin Fee

What is now called KodaBank began in what is now a ghost town in western North Dakota.

The original bank was in Niobe, just west of Kenmare.

In the 1930s, the bank with a different name moved to Drayton, N.D., and became Drayton State Bank. Fast forward more than 90 years, and Drayton State Bank is now known as KodaBank and will have 12 branches when Fargo is added to the mix in summer 2023.

Cole anderson

Grand Forks is the latest addition, coming on board in August 2021.

“Smaller towns and communities have been kind of our niche,” said Pete Anderson, KodaBank president and board chairman. “But as communities get smaller and smaller and smaller, pretty soon you have to invest in larger markets. If you’re going to survive long term, you have to get into a more populated area.

“We hang our hat on being a small-town community bank with customer service No. 1 on the list.”

While KodaBank might be a new name to Grand Forks, it has grown to be a regional leader in the banking industry after its start in small-town North Dakota and northwest Minnesota. Through mergers and acquisitions, KodaBank has branches in Minto, Hamilton, Drayton, Pembina, Neche, Walhalla, Cavalier and Grand Forks in North Dakota and Stephen, Kennedy and Bemidji in Minnesota.

The Fargo facility is under construction.

When Drayton State Bank merged with the State Bank of Minto in 2010, the name was changed to KodaBank. It didn’t feel right to have Drayton State Bank located in Minto.

How did bank leaders come up with the name change? Koda means “friend” in the Dakota Sioux language and Koda relates to the bank’s origin in North Dakota.

Anderson runs the office in Drayton, where he was born.

The dive into the larger markets of Grand Forks and Fargo was needed, Anderson said.

“There are a lot of good banks. But as they get larger and larger, their footprint pushes more probably towards bigger markets like the Twin Cities or Arizona.

“I think they lose some of the community bank vibe where everybody knows your name when you walk through the door, when you call the bank and there is actually an individual at the other end of the phone and not a machine.”

While KodaBank’s backbone has been agriculture, the bank looks forward to the diversity Grand Forks and Fargo will provide with more small-business loans.

Cole Anderson, market president for Grand Forks, said the bank has maintained its small-town feel while moving into the larger markets.

“Larger banks drive customers to bank online or with their smartphone,” he said. “While we offer those tools, our delivery model includes being able to come in and talk to us about a new CD or loan. Decisions are made by local people – not in another state or by a computer.”

He says the bank features people who serve hard-working customers.

“We try to be humble in serving our customers. We’ll grow by rolling up our sleeves, working hard and let customers tell others about why they enjoy banking with us,” Cole Anderson said. “The philosophy has also helped us be competitive with our products and also interest rates.”

Many customers grew up in rural communities and many have continued their banking with KodaBank in Grand Forks after relocating for college, jobs or to start a business.

From its humble beginnings in western North Dakota, the bank has gone through a lot of changes. Adding Grand Forks and Fargo to the operation elevated the company to a larger spot on the bank map.