First National Bank of Northfield to be Acquired by Merchants Bank

April 23, 2019

The First National Bank of Northfield has entered a definitive agreement to be acquired by Winona-based Merchants Bank, according to Dave Shumway, President of Heywood Bancshares, Inc. and Gregory M. Evans, President & CEO of Merchants Financial Group, Inc. The agreement is subject to Heywood Bancshares shareholder and regulatory agency approval, but it is fully expected that the deal will become final before year-end 2019.

Dave Shumway, the CEO of First National Bank of Northfield said, “We are looking forward to expanding our ability to serve our customers and this community with the additional resources of a larger banking organization.”

He added, “The challenges for community banks are significant and we believe that Merchants is the right partner to provide broader financial services and technology tools that will be expected by our customers well into the future. We know that Merchants is the right partner. Our due diligence identified Merchants as an organization absolute in its commitment to shared values of community leadership and strong service culture.”

Shared Legacies of Community Banking

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

“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 which will continue to be nurtured and never forgotten.

“Merchants’ success has come from our commitment to community banking, centered on the fundamental understanding that when our communities and customers thrive, Merchants will prosper as well. The partnership with First National aligns perfectly in terms of culture, and our strategic plan for the expansion of the Bank’s strong community bank brand throughout the region.”

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 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. The Bank operates out of two branches in Northfield and a loan production office in Minneapolis.

Internationally recognized as the bank that defeated Jesse James in 1876, First National Bank has been inextricably tied to Northfield throughout its history. The bank provides a full range of banking products and services to individuals and business customers in the greater Northfield area as well as commercial loan services in southern and central Minnesota including the Twin Cities market.

Hear From Us

On April 23, Tim Viere, First National Bank of Northfield President, and Rick Estenson, First National Bank of Northfield Vice President, spoke on KYMN Radio about the acquisition news and the future of First National.

Listen Here

On May 1, Greg Evans, President and CEO of Merchants Bank, and First National Bank Vice President Rick Estenson discussed changes to the banking industry and the sale of First National Bank to Merchants Bank. Evans explained the integration process to take ownership of the bank and maintain personalized services.

Listen Here

About Merchants Bank

Merchants Bank, member FDIC, is a full service community bank with 21 branches in southeastern Minnesota and west-central Wisconsin, including locations in close proximity to Northfield in the communities of Apple Valley, Cannon Falls, Cottage Grove, Hampton, Hastings, Lakeville, Red Wing, Rochester, and Rosemount. Merchants Bank Equipment Finance, a commercial lease financing division, is located in the Twin Cities and services clients throughout the United States. In 2018, in keeping with the Bank’s commitment of community leadership, Merchants employees volunteered 14,953 hours to 286 organizations throughout the service footprint. Headquartered in Winona, MN, the Bank is the fifth-largest banking organization headquartered in the state of Minnesota, with more than $1.75 billion in assets.

Contact Information

If you have any questions, please contact us.

Tim Viere
First National Bank of Northfield
(507) 664-3297

Rick Estenson
Vice President
First National Bank of Northfield
(507) 664-3275

Greg Evans
President & Chief Financial Officer
Merchants Bank
(507) 457-1146

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