Our Story

How We BecameUnion Bank and Trust

Founded by 24 construction and trade Unions in 1976, Union Bank and Trust is one of the only organizations in the country that is owned and controlled by the same members that created almost 50 years ago. We are a state chartered, FDIC insured, union-owned bank and trust. With the same capabilities as the largest financial organizations, our experienced and highly credentialed staff offers the personalized service and feel of a local, community-oriented Bank & Trust organization.

See for yourself the Union Bank and Trust difference. Call our team today at 877-979-3222 to sign up for an account for yourself or your business.

We offer traditional banking services with a focus on Union organizations locally and nationally. In 1982, the Trust Division was formed to act as custodian for Taft-Hartley pension, vacation and health and welfare funds. We also act as Trustee for personal accounts. The Trust Department safeguards over $14.5 billion in assets with a strong emphasis on safety and security for union pension and health and welfare funds across the United States. Started by hard working trades men/women and serving long-term needs and economic well-being of those same individuals now and in the future.

Union Bank and Trust Through the Years

      

• 1950s - Early 1970s: A Labor Vision Takes Shape 
  For decades, leaders in Minnesota’s labor movement shared a common belief: Union members were building the city’s skyline, but had no role in the financial system behind it. The idea of a labor-owned bank, one aligned with working people, continued to grow. 
• 1973 - 1975: Built Union, By Union 
  The effort became real through the work of Dan Gustafson, a former plasterer and business manager of the Minneapolis Building and Construction Trades Council, and Jack McKenzie, a 35-year officer with the Council, who organized the construction of the bank.
  
  For nearly three years, they traveled meeting to meeting across the Twin Cities, asking unions to invest in building their own bank. Gustafson's response became part of the bank's story: "What we don't know, we'll hire". 
  
  Their effort raised approximately $1 million and made the vision possible. 
• 1976: Founding Governance 

  As its founding, Dan Gustafson began serving as Board Chair, guiding the bank through its early decades and establishing its labor-centered mission. 

  Labor leader David Roe later said: "Without [Gustafson's] persistence, we wouldn't have had the labor temple - and we wouldn't have this bank."

  A Bank Built Into the Labor Movement

  The bank was not just located in the United Labor Centre; it helped make it possible. By leasing a significant portion of the building, the bank supported its financial stability and helped create a central hub where unions could: 

  • operate their organizations
  • manage benefit funds
  • conduct banking
• March 27, 1976: Grand Opening 
  Union Bank and Trust originally launched as Union State Bank on March 27th, 1976, at the United Labor Centre in Minneapolis.
  
  At the opening ceremony, Hubert H. Humphrey cut the ribbon, a defining moment that highlighted the importance of a labor-owned bank serving working people and the businesses connected to them. 
• Late 1970s-1980s: Financing Union Work 
  In its early years, the bank focused on financing construction and development tied to union labor, creating a powerful cycle:  

  • union capital funded projects
  • projects creating union jobs
  • those jobs strengthened the labor movement

  
  As Gustafson put it,  "Our members are helping our members."
• Early 1980s: Trust Services Begin

  Union Bank and Trust launched its Trust Division to serve Taft-Hartley pension, vacation, and health welfare funds - a capability that would become central to its long-term growth. 
• 1991: 15 Years of Steady Growth

  By its 15th anniversary, the bank had grown to approximately $25 million in bank assets. 
• Early 2000s: Independence 

  Unlike many community banks that were absorbed by larger institutions, Union Bank and Trust remained independent, supported by a union ownership structure. 
• 2006: 30 Years Strong

  At its 30-year milestone, the bank had grown to:
  • Approximately $73 million in bank assets
  • Approximately $6 billion in trust assets
• 2010s: Continued Labor Leadership 

  A new chapter of governance began under Ray Waldron, former President of the Minnesota AFL-CIO. Waldron led the board during a period of growth, reinforcing the bank's strong connection to organized labor. 
• 2011: Growth and Expansion 

  A new phase of growth began under Jeff Schrempp, focused on expanding commercial banking, strengthening trust services, and growing beyond Minnesota. 
• 2015-2016: 40 Years and Continued Growth

  At its 40th anniversary, Union Bank and Trust had reached:
  • Approximately$121 million in bank assets
  • Approximately $7 billion in trust assets
  As union organizations expanded, Union Bank and Trust grew alongside them, extending its reach across the country. The bank was formally recognized by the Minnesota Senate for its contributions to labor and the broader community. 
• 2021: Continued Leadership: Stewardship for the Future 

  Following Schrempp's leadership, Terry Nelson became only the third Board Chair in the bank's history, continuing the tradition of labor-led governance and long-term stewardship. 
• 2024: A New Chapter Begins 

  Union Bank and Trust appointed Sean Cole as President and Chief Executive Officer, marking a new chapter focused on accelerated growth, modern capabilities, and continued expansion. 
• Today: Built on Labor, Focused on the Future 

  Union Bank and Trust remains:

  • 100% union owned
  • governed by labor leaders
  • and deeply rooted in the communities it serves

  From its original $1 million foundation, the bank now has a bank asset size of $239 million, returned more than $10 million to union owners in dividends, and safeguards approximately $14.5+ billion in trust assets.