“In every state 75 years ago, millions of those who served in the armed forces returned home to find their lives, families, homes and businesses in disarray after years of war,” said Dr. Walter Warpeha, speaking at the October 11 celebration of Northeast Bank’s 75 years.
In Minneapolis, during the war, all the major banks had moved to downtown. Northeast had no banking facilities. “My father and his friends who ran businesses in Northeast feared the downtown banks would prioritize others over the needs of those who live and work in our humble neighborhoods,” Warpeha said. “They saw the need for a locally owned, community focused bank, at that time a fairly new concept.”
Two Rays and three Walters decided to take it on — Ray Mikolajczyk, Walter Larson, Walter Kostick, and Walter Warpeha, Sr. with Raymond J. Julkowski, a lawyer and state senator, advising on the process of chartering a bank. With a group of other community leaders and residents, they hired a bus and took their petition to the Minnesota State Capitol. The charter, the first new one in 25 years, was granted November 20, 1947.
Julkowski became the bank’s president. Raymond A. Mikolajczyk, a professional banker, became vice president and Walter Larson cashier. These three plus Warpeha Sr., a dentist, and Walter A. Kostick, who was president and general manager of the Aero-Flex Lift Co. – formed the bank’s board of directors. Walter Larson had owned Larson Meats on Johnson Street, and worked briefly as president of Clinic Equipment Company after leaving the meat business.
They sold stock and opened in the building now home of Dangerous Man Brewing. It had housed the Second Northwestern National Bank, which moved to the Midway District of Minneapolis/St. Paul. They held a celebration December 13, 1947, but the opening of the bank was rescheduled for January 3, 1948, because of a delay in getting fixtures, according to newspaper clippings Larson compiled.
Eventually they solicited the help of a prominent banker and later owner of the Minnesota Twins baseball team, Carl Pohlad, to find a buyer who would develop the bank further.
“In spite of Mr. Pohlad’s reputation as a wheeler-dealer, I do not know how he could have done better than finding the enthusiastic, sometimes brash young man originally from Pelican Rapids, Minn., Walter C. Rasmussen.” Larson’s archives note that Rasmussen had worked at a small bank early in his career and was always fascinated by banking, but had ventured into the commercial real estate market of Minneapolis.
Rasmussen asked the original five to be on his board of directors as the pulse of the community. He broke ground for a new building in 1962, renamed it Northeast State Bank and introduced “Shirtsleeve Saturdays.” The bank gained the reputation of being “the bank just around the corner for the personal needs of Northeast small businesses and homeowners. The dream of a locally owned community bank was finally fulfilled,” said the younger Warpeha, a prosthodontic dentist.
After her husband’s death, Belva Rasmussen distinguished herself in Minneapolis banking circles as the big-picture visionary. By the time she determined she needed an acting president for hands-on running of the bank, the junior Warpeha had taken his father’s place on the board and Belva asked advice from him and his wife Mary.
“Tom Beck’s name was discussed. He may have had obvious talents but lacked the experience of the others. Walter Rasmussen had thought highly of Tom and feared he could be lost to another bank. Mary could see in Tom the required selflessness and was squarely in his camp.”
Family members still have vital roles in the bank, which now also has branches in Coon Rapids and New Brighton. Belva and Walter’s son Ben, a partner in the Twin Ignition Startup Garage, is on the board of directors, and Ben’s wife Eva is chief strategy officer. The anniversary celebration married historical with new, with performances from both the Royal Hiptites and the Cheremosh Ukrainian Dance Ensemble. Ukrainian artist Sergey Babashov was commissioned to render the bank’s newest logo on a glass platter for each of the branches, Council Member Michael Rainville spoke and Mayor Jacob Frey read a proclamation.
Throughout its history, bank staff and family have held appreciation events and volunteered in support of local organizations, causes and fundraisers. Belva supported the Northeast Minneapolis Arts District’s creation in 2002. The landscaped parking lot at 77 NE Broadway has hosted many a Minnesota Orchestra concert, and even a regional arm wrestling tournament.
What will they think of next?
Below: The original 1922-built building at 13th Avenue and Second Street. Walter C. Rasmussen. Artist Sharra Frank’s 2017 mosaic of the flag created in 1974 by 10-year-old Anthony DiGiovanni in a contest the bank sponsored. Light blue stripes, slanting northeastward, represent the Mississippi River. White stars represent the numerous nationalities and ethnic groups, enclosed in a deep blue circle representing unity and continuity. An early gathering in the 77 NE Broadway parking lot. Belva Rasmussen and bank president Tom Beck serving donuts. (Photos courtesy of Northeast Bank)
