Frandsen Financial Corp., is purchasing the Bank of Zumbrota and Pine Island Bank.
The acquisition, pending the approval of the Federal Reserve Bank and Minnesota Department of Commerce, is expected to be finalized before the end of this year.
Frandsen Financial President and CEO Chuck Mausbach said commercial and ag customers at the Pine Island and Zumbrota banks “will benefit from larger lending capabilities, strong treasury management products and SBA lending expertise.” Retail customers will have additional mobile and online banking technology along with a full-service trust department and wealth management with than $430 million in assets under management. Based in Lonsdale, Minn., Frandsen Bank has $2.6 billion in assets. Bank of Zumbrota and Pine Island Bank have approximately $315 million in combined assets.
“Frandsen Financial Corp. and the Bank of Zumbrota and Pine Island Bank share very similar community-first philosophies and we look forward to serving their customers and supporting the communities of Zumbrota and Pine Island for years to come,” Mausbach said.
Zumbrota Agency Inc. President Jeff Perra said the move will help the combined organization serve customers.
“After 50 years at Bank of Zumbrota, and nearly 22 at Pine Island Bank, it was clear our family didn’t have another generation of bankers to make a third-generation business,” he said. “The banks should be part of a larger organization to grow in our services offered to our growing customer base. Through this change of ownership, our officers and staff can concentrate more on the relationships, with operational support coming from Frandsen Financial Corp.”
Perra is expected to continue overseeing the Bank of Zumbrota through the transition. Chris Nelson will continue as president/CEO of Pine Island Bank.
Oak Ridge Financial Service Group, Inc., provided financial advisory services to Zumbrota Agency, Inc., as part of this transaction.