Minnesota’s Highland Bank reopens branches after tech woes shut its doors

Highland Bank reopened its eight branch lobbies early Thursday after closing for two days due to ongoing technical problems that disabled its office phones, general website and employee email systems.

Customer bank accounts continue to work and can be accessed via the log-in page for individual accounts via the bank’s online and mobile banking. ATMs are working. The branches drive-thru windows remained open throughout the week.

“We will get through this,” Highland Bank CEO Rick Wall said in a Thursday interview. “We are working hard to get back to that state of normalcy.”

Wall did not give additional details as to what caused the issues, adding that the bank does not discuss anything to do with security. Wall said the bank has had disruptions before due to power outages and various IT problems, but noted that this week’s problems persisted longer than most.

The bank, which has locations in St. Paul, Woodbury, Bloomington, Blaine, Ely, Maple Grove and Minnetonka — as well as its headquarters in St. Michael — discovered the issues with its email, phones and main website after returning from Labor Day, said bank president Troy Rosenbrook.

“We are working 24/7 to fix the problem,” he said, adding that he could not say whether or not the bank had been hacked. Due to the technology issues, the bank could not send emails notifying customers about the data problem and could not clarify to customers “that it’s mostly business as usual. They can still make deposits” and withdrawals, Rosenbrook said.

Upon discovering that bank phone lines were down when employees returned from the Labor Day holiday early Tuesday morning, staff put “closed” notices on all the branch lobby doors and directed customers to the drive-thru window, Rosenbrook said.

That concerned Ann Marie Hanrahan, who showed up at the Highland Park branch in St. Paul on Wednesday to conduct business.

“An employee came to the door and told me they are having a data glitch,” said Hanrahan, who works at R.F. Moeller Jewelers across the street. “I was a little surprised that the sign didn’t say how long they would be closed or why.”

The jewelry company’s bank accounts appeared to be fine, Hanrahan added.

“So right now, it’s not a big concern,” she said.

Abdirahman Kahin, owner of Afro Deli, said “we were scared” when he learned about the bank’s data troubles because “payroll is today.” He was relieved when all processing went according to plan. He spoke to his personal banker Wednesday night and to Wall on Thursday. Both assured him that all customer accounts were working fine.

Highland Bank has $650 million in deposits and 115 employees in eight branches in the state. After acquiring Boundary Waters Bank in Ely, Woodbury and Blaine last year, it is the 25th-largest bank in Minnesota.