A South Dakota bank with deep pockets is helping push the $130 million Sioux Falls Federal Credit Union out of a hospital branch it has occupied for nearly 25 years.
The $900 million First Premier Bank, the city's largest, will occupy the branch space in the Sanford Hospital following a $400 million donation to the hospital two years ago by T. Denny Sanford, the bank's majority shareholder. The transition is set to take place by September.
"We were a bit surprised by the hospital's decision and so now we have to deal with figuring how to handle the 1,700 employee members we have there," said Kevin Kavanaugh, the CU's vice president of marketing.
Recommended For You
The CU first learned of the hospital's decision to replace the leased branch with one run by First Premier through the rumor mill some weeks ago. Final word was given to the CU's CEO Fran Sommerfield by hospital administrators last week, with the CU calling it a blow to the hospital employees who have relied on CU services there since 1981.
Kavanaugh said arrangements are being made to serve Sanford employees out of its other facilities.
A spokesman for the bank said its new Sanford branch will be full-service and "very impressive."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
