Minnwest Bank and Roundbank recently announced that the financial institutions (FIs) have signed an agreement to merge. The transaction is expected to complete by year’s end, pending regulatory approval. Financial details of the deal were not disclosed.
Roundbank, which was originally chartered in 1881, was acquired from First Bank System – now known as U.S. Bank – in 1987. Roundbank operates four branches throughout Minnesota, employing 70 people. The bank has $385 million in assets.
Family-owned Minnwest Bank, which was founded in 1987, operates 32 branches throughout Minnesota and South Dakota, with $2.27 billion in assets.
Merging the banks would serve to bolster Minnwest Bank’s mortgage and lending services, according to Douglas Karsky, Minnwest Bank president.
Minnwest is a Small Business Administration (SBA) lender and one of Minnesota’s largest agricultural lenders. The bank also participates in a variety of state and federal loan programs and provides a range of banking and lending services to consumers and businesses.
“We are excited about the merger with Minnwest Bank, as they share our values and commitment to the employees, customers and communities they serve,” Larry Thompson, Roundbank president, said in the announcement. “They have an extremely strong agricultural focus, and this together with their desire to expand mortgage and retail services will provide a significant opportunity to Roundbank employees.”
Bank mergers are becoming more commonplace. As PYMNTS recently reported recently, fellow Midwest FIs First Midwest Bank and Old National Bank signed a $6.5 billion merger agreement to fold First Midwest into Old National. Those banks have a reported $45 billion in combined assets.
Also recently, PYMNTS reported that United Community Banks and Reliant Bancorp would merge in an approximate $517 million all-stock transaction. Reliant posted $3.1 billion in assets with $2.4 billion in loans and $2.6 billion in deposits.