Posted on September 29, 2021
ARDEN HILLS, MN: Richard Hoban, Director of Corporate Development for Frandsen Financial Corporation (“FFC”) has announced that a purchase agreement has been signed with Zumbrota Agency, Inc. for FFC to purchase the Bank of Zumbrota and Pine Island Bank, pending approval of the Federal Reserve Bank and the Minnesota Department of Commerce. The transaction is expected to close before the end of 2021.
FFC’s CEO Chuck Mausbach states, “Frandsen Financial Corporation 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 added, “Both bank’s commercial and agricultural customers will benefit from larger lending capabilities, strong treasury management products, and SBA lending expertise. Retail customers will have access to additional mobile and online banking technologies. All customers will have access to a full-service wealth management and trust department that has over $430 million in assets under management.”
Jeff Perra, President of Zumbrota Agency, Inc. comments, “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. 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 Corporation.”
Perra states, “Bank of Zumbrota and Pine Island Bank customers won’t notice many differences, if any, once the ownership changes hands; they will continue to receive superior customer service from the bank staff they currently work with. We were very intentional about who we sold the banks to. FFC has exhibited a commitment to their communities by being awarded the Minnesota Bankers Association’s ‘Community Champion’ award each of the past six years. This commitment stems from their founder, Dennis Frandsen, whose foundation (Frandsen Family Foundation) provides college scholarships to graduating seniors in several communities in Minnesota and Wisconsin. Finally, FFC has a great track record as a quality employer as witnessed by their Star Tribune Top 175 Employer recognition each of the past four years.”
President Perra will continue to oversee the Bank of Zumbrota through a transition period into 2022. Chris Nelson will continue in his role as President and CEO of the Pine Island Bank. Nelson states, “I look forward to forming a long lasting relationship with Frandsen Financial Corporation, a community focused bank holding company. The outstanding team that served our customers at Pine Island Bank will continue to do so.”
Oak Ridge Financial Service Group, Inc. provided financial advisory services to Zumbrota Agency, Inc. as part of this transaction.
About Frandsen Financial Corporation
Founded in 1982, Frandsen Financial Corporation is an inter-state bank holding company with 35 full-service community bank offices (Frandsen Bank & Trust, https://www.frandsenbank.com) in Minnesota, North Dakota, and Wisconsin. Frandsen Bank & Trust currently has $2.6 billion in assets. Additionally, its Wealth Management & Trust division has over $432 million in assets under management. For more information, visit https://www.frandsenfinancial.com.
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