Park State Bank and Pioneer National Bank of Duluth are merging under an agreement that was disclosed by their respective parent companies, Minneapolis-based Park Financial Group Inc. and Duluth, Minn.-based Pioneer Bank Shares Inc.
The terms of the deal were not disclosed in the merger release.
SNL valuations for bank and thrift targets in the Midwest region between Dec. 7, 2016 and Dec. 7, 2017 averaged 159.78% of book, 165.45% of tangible book and had a median of 20.60x last-12-months earnings, on an aggregate basis.
The transaction is subject to regulatory and shareholder approval and is expected to close late in the first quarter of 2018.
Current management and employees will play key roles in the merged organization, according to the release.
SNL data shows that as of Sept. 30, Park State Bank had $52.8 million in assets, while Pioneer National Bank had assets of $82.8 million. Park Financial Group will expand in Saint Louis County, Minn., by three branches to be ranked eighth with a 3.04% share of approximately $3.45 billion in total market deposits.