Merchants Financial Group, Inc. (MGFI), has reached an agreement to purchase the deposits and location of the Mainstreet Bank branch office in Cottage Grove, President and Chief Executive Officer Richard L. Mahoney announced Wednesday.
The sale includes the physical location and approximately $16 million in deposit relationships. The sale is subject to regulatory approval. Barring complications, Mahoney said he expected the ownership transfer would occur sometime during the late second quarter of this year. Upon completion of the transaction, the office will become a branch of Merchants’ “flagship” bank, Merchants Bank – Winona, and will become Merchants’ second branch in Cottage Grove.
“This is an excellent opportunity to increase Merchants’ convenience and service to our customers in the southern part of the Twin Cities, as well as provide Mainstreet Bank’s current customers with the special service that Merchants can provide,” Mahoney said.
Mainstreet Bank President and Chief Executive Officer, Joe Tapp, says, “We sought out Merchants as we were reviewing our realignment of locations because we knew our customers would continue to receive the best community banking experience possible.
“Merchants has an excellent reputation and I’m pleased to know that our deposit customers will be well-served. I expect that the transition will be smooth and focused on customer service and convenience, just as it as has always been for both Mainstreet Bank and Merchants.”