Minneapolis, Minn.-based Park Financial Group Inc. has agreed to make an investment in Grand Rapids, Mich.-based Mesaba Bancshares Inc.
Park Financial will invest in Mesaba through a purchase of the founding shareholder's shares. The investment will be significant, but will not initially be a controlling interest.
Terms of the investment were not disclosed.
The transaction is subject to regulatory approval and is expected to close in the fourth quarter of 2018.
Park Financial Group will have representation on the boards for Mesaba Bancshares and units, Nashwauk, Minn.-based American Bank of the North and Two Harbors, Minn.-based Lake Bank. On a consolidated basis, the combined assets of both banks totaled $675 million as of May 31.
Park Financial Group is a holding company that operates primarily through unit Park State Bank, which had $57.6 million in assets as of March 31, according to S&P Global Market Intelligence.
Barack Ferrazzano Kirschbaum & Nagelberg LLP's Financial Institutions Group represented Park Financial Group in connection with the deal.