Update: Merchants Bank to create contiguous territory
Merchants Bank is expected to have its purchase of Central Bank in Rosemount completed this fall. File photo
Pending Central Bank of Rosemount purchase will fill in gap of Dakota County presence
by Tad Johnson
Thisweek Newspapers
With four locations in Dakota County, many Rosemount residents are familiar with Merchants Bank.
The leaders of the Winona-based bank plan to make that connection stronger after it completes its expected purchase of Central Bank in Rosemount later this year.
With a track record of supporting local sports teams and the Christian Elder Memorial Bike Ride to raise money for Apple Valley-based Kids ’n Kinship, Merchants hopes to weave its presence into the fabric of the local community.
“We are a community bank just like Central Bank,” said Mark Metzler, Merchants’ media and communications officer. “Our strength is building relationships in the community.”
Merchants Financial Group Inc. announced last Friday it would purchase the former Rosemount National Bank location that the FDIC closed in April and was then acquired by Central Bank.
Located at the southwest corner of County Road 42 and Chippendale Avenue, the site has prime visibility and means Merchants now has a contiguous territory in Lakeville, Apple Valley, Rosemount, Hampton and Hastings.
“Acquiring the bank strengthens our presence in the southern metro and provides greater convenience to our current and future customers,” Merchants President and CEO Richard L. Mahoney said in a press release. “We look forward to serving the needs of the customers in Rosemount.”
Despite the prevalence of a host of functions people can execute with online banking, the bricks and mortar offices are still important, according to Metzler.
“We see a lot of interest still in a safe deposit relationship especially with the volatility in the market,” Metzler said.
He said people still want to make that one-on-one connection with a teller or a loan officer. Merchants Bank is customer centered and excels in building relationships, according to Metzler.
“People will consistently tell you that we are the best bank you can do business with,” Metzler said.
Terms of the sale were not disclosed, but it will include more than $19 million in deposit relationships and the bank building in Rosemount. While the sale is pending regulatory approval, it is expected to close by late fall.
Central Bank is maintaining the majority of the loan portfolio, according to the Merchants release.
“Like us, Merchants has a commitment to community banking, and we are confident they will be a good fit for the bank customers, employees and the community of Rosemount,” Central Bank President and COO Mitch Cook said.
In addition to its four Dakota County locations, Merchants has 13 other offices in Minnesota and west-central Wisconsin.
The Apple Valley location opened in 2000 when Merchants Bank purchased Hampton Banks. That purchase also included the locations in Hampton and Cottage Grove.
Merchants purchased the land for a new branch in Lakeville in 2003. The building was completed in March 2005.
Other notable locations are Cottage Grove, Cannon Falls, Red Wing and its first in Winona, which was established in 1875.
Merchants Financial Group Inc. has about $1.15 billion in assets and is the holding company that owns Merchants Bank.
The company also owns Merchants Capital, an Edina-based leasing company. Merchants manages a large correspondent mortgage banking operation and has a loan servicing portfolio of approximately $2.2 billion, according to its release.
The ownership of Merchants Financial Group is made up of its employees and approximately 450 shareholders.
Tad Johnson is at editor.thisweek@ecm-inc.com.
