Wilmot, S.D.-based First State Bank and Summit, S.D.-based Peoples State Bank — both banking subsidiaries of Brandon, S.D.-based Northeast Bancorp Inc. — agreed to merge into Redwood Falls, Minn.-based Minnwest Bank, myKLGR.com reported June 13.
The deal is expected to close in the fourth quarter, subject to regulatory approval.
SNL valuations for bank and thrift targets in the Midwest region between June 13, 2017, and June 13, 2018, averaged 159.86% of book, 168.03% of tangible book and had a median of 20.42x last-12-months earnings, on an aggregate basis.
As of March 31, First State Bank and Peoples State Bank have combined assets of $121.2 million, and $103.7 million in deposits. On the other hand, Minnwest Bank, a subsidiary of Minnetonka, Minn.-based Minnwest Corp., operates 24 branches and has $1.6 billion in assets. Both Minnwest Bank and Northeast Bancorp are family-owned banking companies, according to the news source.
SNL data shows that in South Dakota, Minnwest will enter Codington County with two branches to be ranked eighth with a 1.23% share of about $1.06 billion in total market deposits. Minnwest will also enter Roberts County with two branches to be ranked second with a 26.15% share of roughly $299.6 million in total market deposits and Grant County with one branch to be ranked fourth with a 5.09% share of about $255.9 million in total market deposits.
As earlier reported, Minnwest Bank in May applied to acquire Security State Bank of Lewiston, a unit of Fischer Corp.