When President/CEO Steve Daggett joined Midwest Bank in 1996, the institution held just $25 million in assets. The bank’s headquarters was in Waubun, Minnesota-a small town with big ambitions to expand into Detroit Lakes.

Steve saw an opportunity. He grew up in Frazee. His wife grew up in Lake Park. Midwest Bank offered a chance to come home. Nearly three decades later, Steve has led the bank to a staggering $815 million in assets and turned Midwest Bank into one of Minnesota’s 25 largest banks.

But what matters most to Steve isn’t the rankings. It’s the relationships.

“We’re not a corporate bank. I don’t have to answer to someone in the Cities,” he said. “That means we can actually help our community in meaningful ways.”

When Midwest Bank first moved into Detroit Lakes in 1998, they were overlooked, even laughed at.

“We were renting a building right by the railroad tracks. I had to sign a lease saying we wouldn’t sue if a train derailed—we were that close,” Steve said. “We had four employees. It was hard to hire.”

But they had a strategy: “more free, less fee.”

Other banks were charging up to $400/ month for business checking. Midwest Bank offered it for $10—a price that hasn’t changed in 25 years.

“We were mocked for it. People said, ‘They’re trying to buy business.’ Well, it worked.”

Word spread fast. Entrepreneurs and farmers looking for faster answers turned to Steve and his team.

“We focused on commercial and ag loans. We heard people say other banks were taking one to two months to get back to them. We’d get them an answer in one or two days. That changed everything.”

One customer with a million-dollar loan request came in frustrated after waiting weeks at another bank. Steve stayed late and had a full commitment letter to him by 10 a.m. the next day.

“Now that guy’s out there telling everyone. And that kind of word-of-mouth? You can’t buy it.”

Steve Restaurant Recommendations

Zorbaz

Famous for pizza—but Steve swears by the nachos and the Colorado green chili (a hidden gem even he missed for 20 years).

Long Bridge & Pit 611

“I’m a wings guy, and both places deliver.”

Parallel 46

“Their homemade ravioli is amazing, and they’ve got great craft drinks.”

Blackboard

“Every item is unique.”

Spanky’s Stone Hearth

“Always creative specials. You never know what you’re going to get—but it’s always good.”

Hotel Shoreham

Their walleye is fantastic.”

Sapphire Sushi

“Detroit Lakes used to be restaurant-challenged. Now we’ve got sushi— and it’s done right.”

Don't miss music on the mountain!"

What Makes Detroit Lakes Different

Steve is quick to credit the community itself for much of the area’s success.

“A lot of towns have people who’ve done well financially. What’s special about Detroit Lakes is how many of them feel obligated to give back.”

From the renovated Boys and Girls Club- once the first in Minnesota, now arguably the best-to the top-tier Detroit Mountain ski lodge and vibrant local nonprofits, Steve sees a pattern of people stepping up.

“Detroit Lakes has wow factors. It’s not just one thing-it’s a dozen. And they’re all powered by locals who care.”

Why He Chose To Come Back—and Why He’s Never Left

When Steve and his wife got engaged in 1996, she was living in the Twin Cities, and he was based in Grand Forks. They made a deliberate choice not to raise their kids in a large metro area.

“We wanted amenities, a good school system, and a great quality of life. Detroit Lakes had all that-and it felt like a perfect fit,” he said. “Compared to Frazee and Lake Park, it felt like a metropolis.”

For Steve, quality of life meant more than good schools. It meant a short commute. It meant being near the lakes. And it meant living in a community that felt vibrant year- round.

“I’d have college buddies with 10-mile commutes that took 45 minutes. Mine took six-seven if I hit a red light.”

Now, with three kids of his own, Steve beams with pride when they bring college friends home.

“They’re all like, ‘I can’t believe you grew up here.’ And all three of our kids say they’d love to live in DL long-term.”

Music, Mountains, And Memories

Steve is especially passionate about Music on the Mountain, a summer concert and fundraiser for Detroit Mountain, where he serves as chair.

Held annually near the Fourth of July (this year on June 28), the event has grown from local bands to national acts like Sawyer Brown, Big & Rich, and Chris Janson.

“We cap it at 3,800 people to keep that private concert feel. And we’ve raised as much as $170,000 in one night.”

All funds go toward wishlist items for the ski hill-like the beginner-friendly Magic Carpet lift, new snow guns, or paving the formerly rutted entrance.

“We don’t use it for operations. We want those funds to enhance the experience for everyone who comes.”

Steve’s Golf Course Recommendations

Detroit Country Club:
Steve’s regular spot.

Wildflower, Forest Hills, Lakeview:
All within 25 minutes and worth the drive.

Further out:
He also recommends Balmoral in Battle Lake, Thumper Pond in Ottertail,
Headwaters in Park Rapids, Perham Lakeside Golf Course, and Tianna
in Walk.

How Midwest Bank Does Things Differently

As the bank grew, Steve never forgot what made their early success possible was speed and service.

“When we opened, we had four employees. We had to be different. We knew it wouldn’t be car loans— those are automated. We leaned into commercial and ag loans, because that’s where responsiveness matters.”

At some banks, it takes weeks—or months—for a loan request to reach a decision. Not at Midwest.

“We streamlined everything. Our loan officers present directly. No passing it to a credit analyst who’s juggling three deals. If it needs a committee review, we give ourselves a 24-hour window. Sometimes it’s two hours.”

Midwest’s strategy wasn’t just fast—it was smart.

“When we started offering business checking for $10, people thought we were nuts. One guy said, ‘This has to be bait and switch.’ So we put it in writing and guaranteed it through January 2000.”

Twenty-five years later, those same fees still hold. Why? Because Steve saw where banking was headed.

“We knew technology would bring down the cost. And once people had their checking account here, they’d come to us for loans. The low fee was the door-opener.”

What’s Next For Dl? Big Projects, Big Support

Steve is excited about what’s still to come in Detroit Lakes—especially the complete rebuild of the historic Pavilion at the end of Washington Avenue.

“It’s over 100 years old. They tried to patch it, but now they’re starting fresh. It’ll be right on the beach. Weddings, concerts—it’s going to be a wow factor.”

He sees these projects succeed because enough people in DL believe in them. Not everyone agrees on every detail—but they show up and support them anyway.

“Tell us we can’t do something, and we’ll prove you wrong. That’s the spirit here.”

Rooted In Relationships

Steve’s view of community development is deeply personal. He doesn’t see success in spreadsheets—he sees it in nonprofit check presentations, in small business wins, in the pride of watching a ski lodge become the envy of the region.

“I feel lucky every day. I get to live here, help people build their businesses, and work with a team that actually cares. That’s rare.”

He credits people like Mark Fritz and organizations like Project 412 for pushing DL into a new era. From nationally buzzworthy troll art installations to Time magazine naming the town a top 100 place to visit in the world, the area’s momentum feels real—and earned.

“It takes vision. Not everyone agrees on every detail, but enough people believe in the mission. That’s how real change happens.”

If you’re headed to Detroit Lakes? Take Steve’s advice: try the nachos at Zorbaz, catch a show at the Holmes Theatre, play a round at Wildflower, and don’t miss Music on the Mountain. You’ll see what makes this lakeside town more than just a summer stop.