June 30, 2023

Quoin Financial Bank, which has locations in Sioux Falls, Highmore and Miller, is selling to a Minnesota company.

Independent Bancshares Inc., which owns FM Bank, has formed a new subsidiary holding company, Quoin Bancshares Inc., to support the acquisition.

Quoin was formed under a different name in 1987 when the Peterka family, along with the directors, officers and employees in Miller and Highmore, purchased two agricultural banks from First Bank System and changed the name to First State Bank of Miller. The bank expanded to Sioux Falls in 2008 with a location at 5700 S. Remington Place and was rebranded as Quoin.

The new owners will retain the name Quoin Financial Bank as well as the employees and the Peterka family management team.

“After extensive discussions and careful consideration of our shareholders, employees and customers, we are excited to announce this transition,” Quoin CEO Tom Peterka said in a statement. “This sale to Independent Bancshares allows us to preserve our unique culture, ensuring the long-term success and stability of Quoin.”

FM Bank has six Minnesota banks, most of which are close to the border of the Dakotas. It focuses primarily on agricultural and small-business lending and is active in residential mortgage, consumer and retail lending.

“Our banks operate much the same as Quoin,” Independent Bancshares CEO Steve Lindholm said. “We are relationship-oriented and value-focused. Our goal is to continue the success of Quoin under its current management and culture. If we provide Quoin staff and customers a seamless transition under our ownership, we can be confident in the future growth and success of Quoin.”

The deal is expected to close by the end of the year.