Merchants Financial Group, Inc. Completes Acquisition of First National Bank of Northfield

Greg Evans, President & CEO

Merchants Financial Group, Inc., the parent company for Merchants Bank, has taken ownership of the First National Bank of Northfield, according to Merchants Financial Group, Inc. President & CEO Gregory M. Evans.

Transfer of ownership took place as of close of business on Friday, August 30, according to Evans. At this time the First National Bank of Northfield will operate as an affiliate of Merchants Financial Group, Inc. until technology projects and system conversions are complete in the spring of 2020. At that time, when system conversions are complete, the bank name will change to Merchants Bank.

“First National customers should look forward to seeing the same friendly faces they’ve come to know at their local branches, including Tim Viere, who will continue to serve as President,” noted Evans. “With more than a decade of leadership at First National and 35 years in community banking, Tim truly understands the important responsibility we have as community bankers to help our communities thrive.

“It’s been a privilege to work with the First National Bank of Northfield through the change of ownership. The staff has been completely focused on taking care of customers throughout the process and that will not change as Merchants assumes ownership.”

Between First National Bank’s two locations in Northfield and loan production office in Bloomington, Merchants Financial Group, Inc. acquired $199 million in deposits, $166 million in loans and $224 million in total assets. Additionally, Merchants acquired all outstanding stock. Terms of the sale have not been disclosed.

Merchants Bank is a full service community bank. With the sale of the First National Bank of Northfield complete, Merchants now has 21 bank locations and one loan production office in southeastern Minnesota and two bank locations in west-central Wisconsin. Headquartered in Winona, MN, the Bank is the sixth-largest banking organization headquartered in the state of Minnesota with nearly $2 billion in assets.

Read more about the First National Bank of Northfield:

Merchants Bank Receives Regulatory Approval to Purchase First National Bank of Northfield

Greg Evans, President & CEO

The Federal Reserve Bank has approved Merchants Financial Group’s application to purchase the First National Bank of Northfield, according to Merchants President & Chief Executive Officer (CEO) Gregory M. Evans.

“We’ve been given a tremendous opportunity to continue to build upon First National Bank’s respected reputation in Northfield and the surrounding area, and demonstrate the same philosophy with regard to community banking and personalized service,” said Evans. “We have absolute confidence this partnership will be beneficial to all of our stakeholders, including the loyal First National customers we will have the privilege to serve in Northfield.”

The sale includes about $196 million in deposits, $165 million in loan relationships, $222 million in total assets, outstanding stock for First National Bank of Northfield, as well as the physical locations of the banks in Northfield and loan production office in Bloomington. The sale is scheduled to be completed in late August. Terms of the sale have not been disclosed.

Merchants Bank is a full service community bank with 21 branches in southeastern Minnesota and west-central Wisconsin. Headquartered in Winona, MN, the Bank is the fifth-largest banking organization headquartered in the state of Minnesota with more than $1.76 billion in assets.

Read the first announcement about the First National Bank of Northfield acquisition. 

Merchants Bank to Acquire The First National Bank of Northfield

Greg Evans, Merchants Bank President & CEO and David Shumway. First National Bank of Northfield CEO

Merchants Bank and The First National Bank of Northfield have reached a definitive agreement for Merchants to acquire the Northfield banking institution, according to Gregory M. Evans, President & CEO of Merchants Financial Group, Inc. and Merchants Bank, N.A. The agreement is subject to regulatory agency approval, but it is fully expected that the deal will close before year-end 2019.

Hear Greg Evans & Rick Etsenson of First National discuss the agreement on the KYMN Morning Show with Jeff Johnson.

“We are thrilled with the opportunity to be joining the Northfield community and continuing The First National Bank’s tradition of high quality customer service and community involvement,” said Evans. “We are also humbled by the stewardship responsibility that comes with ensuring First National’s legacy with its customers and in the community will continue to be nurtured and never forgotten.”

Both First National Bank and Merchants Bank have rich histories of service in their respective communities in southeastern Minnesota. First National was chartered in Northfield in 1873, and Merchants’ history began in Winona in 1875.

“There are tremendous challenges today for smaller community banks, so we made the strategic decision to find the right partner to provide broader financial services and technology tools that will be expected by our customers well into the future,” said David Shumway, CEO for The First National Bank of Northfield. “We know Merchants is the right partner, and our due diligence identified Merchants as an organization absolute in its commitment to shared values of community leadership and strong service culture.”

The First National Bank of Northfield has $207 million in assets, $157 million in loans (plus an additional $60 million in sold loan participations) and $183 million in deposits. Internationally recognized as the bank that defeated Jesse James in 1876, First National Bank operates out of two branches in Northfield and a loan production office in Minneapolis.

Under the terms of the agreement, Merchants Financial Group, Inc. will acquire all of the outstanding stock of The First National Bank of Northfield in an all cash transaction. The amount of the sale was not disclosed.

Merchants Bank is a full service community bank with 21 branches in southeastern Minnesota and west-central Wisconsin. Headquartered in Winona, MN, the Bank is the fifth-largest banking organization headquartered in the state of Minnesota with more than $1.76 billion in assets.

Merchants Bank Acquires New Locations

MahoneyDickMerchants Bank has reached an agreement to purchase the current Associated Bank branch locations in Rushford and Lanesboro, Minnesota.

The sale includes about $47 million in deposit and loan relationships, as well as the physical locations of the banks in Rushford and Lanesboro.

“Acquiring these locations aligns with our long-term vision to provide our banking services to customers across our region,” said Merchants Financial Group, Inc. President and CEO Richard L. Mahoney. “We recognize Rushford and Lanesboro as important communities in terms of our area’s economic development, and we look forward to serving all the financial needs of these important customers.”

Merchants Bank is also acquiring a small pool of agricultural loans and related deposits from the Associated branch in Red Wing. One of the focuses of the Merchants organization is Ag lending. Associated will continue to operate its Red Wing location. Affected customers will be notified individually at a later date.

The sale is pending regulatory approval. Barring complications, Mahoney said he expects the sale to be completed by late November.