Department of Justice, KleinBank settle suit over lending practices

CHASKA, Minn., May 8, 2018 /PRNewswire/ -- The U.S. Department of Justice (DOJ) has dismissed with stipulations the 2017 lawsuit filed against KleinBank, it was announced today. Both parties have agreed to resolve voluntarily the claims asserted by the United States regarding KleinBank's lending practices to avoid the burdens of further litigation.

"We are very pleased that the DOJ has dismissed this lawsuit, and we look forward to continuing to work with and serve the needs of all of our communities," said Doug Hile, CEO of the 21-branch bank.

Under terms of the agreement announced today, KleinBank will revise its main Community Reinvestment Act assessment area to include all of Hennepin County. KleinBank will open a new branch office in Hennepin County and will continue to expand on its community initiatives led by its community development officer.

These initiatives include:

• Developing community partnerships to further enhance KleinBank's ability to understand and serve the credit needs of all borrowers;
• Investing in loan programs and subsidies that serve low-moderate income and majority-minority census tracts; and
• Expanding KleinBank's brand and product awareness, as well as its consumer financial and fair lending educational programs.

"While we continue to disagree with the DOJ's claim and believe that it has no basis in fact, we have decided this compromise allows us to channel our resources into serving the community, specifically where the needs are great and where our special approach to engagement and commitment will have a profound impact," Hile noted.

"KleinBank has a 111-year history of serving customers and strengthening its communities," he said. "With this agreement, we believe we are making good on our pledge to seek to be part of the solution to the challenges facing our communities, and we will continue to work cooperatively with others who share this objective."

Hile expressed thanks for the support KleinBank received from its employees, customers and communities. He also said the bank was especially grateful for the support it received from the leadership, who represent more than 7,000 bank members, of the Minnesota Bankers Association, the Independent Community Bankers of Minnesota, the American Bankers Association and the Independent Community Bankers of America.

About KleinBank
When C.H. Klein entered banking in 1907, he began a lifetime commitment to grow a strong and stable network of community banks built on a foundation of financial and personal strength. Today, with 21 branches, more than 400 employees and assets of more than $1.8 billion, those strengths still guide KleinBank in its service to customers, employees and communities. Over the past few years, KleinBank has received recognition as a Star Tribune top workplace, for providing best in class for Business Banking and Mortgage Lending by the readers of Twin Cities Business, and as a recipient of the Better Business Bureau of Minnesota and North Dakota's Torch Award for Ethics, as well as the Better Business Bureau International's Torch Award for Ethics.

SOURCE KleinBank