Frandsen Financial in Lonsdale, Minn., has agreed to buy Bank of Zumbrota and Pine Island Bank from Zumbrota Agency.
The $2.6 billion-asset Frandsen said in a press release that the deal for the $201 million-asset Bank of Zumbrota and the $115 million-asset Pine Island is expected to close by the end of this year. Frandsen did not disclose the price it will pay.
“We look forward to serving their customers and supporting the communities of Zumbrota and Pine Island for years to come,” Chuck Mausbach, Frandsen’s CEO, said in the release.
“Both banks’ commercial and agricultural customers will benefit from larger lending capabilities, strong treasury management products and SBA lending expertise,” Mausbach added. “Retail customers will have access to additional mobile and online banking technologies.”
“It was clear our family didn’t have another generation of bankers to make a third generation business,” Jeff Perra, Zumbrota Agency’s president, said in the release. “The banks should be part of a larger organization to grow in our services offered to our growing customer base.”
Perra will continue to oversee the Bank of Zumbrota through a transition period that is expected to end next year. Chris Nelson will remain president and CEO of Pine Island Bank.
Oak Ridge Financial Service Group advised Zumbrota Agency.