Frandsen Financial Corp. said it reached an agreement to buy Provincial Bank, pending approval of the Federal Reserve Bank and the Minnesota Department of Commerce.
The transaction is expected to close in first quarter 2016. Terms were not disclosed.
CEO Richard Hoban said Frandsen is buying the smaller community bank with three offices in Lakeville, Apple Valley and Hastings to enter a high-growth area in the southern end of the Twin Cities metropolitan area and that the companies have a similar “community-first” approach.
Provincial Bank, with $80 million-plus in assets, was founded in 1997 by CEO Mike Watters and Executive Vice President Patrick Arling. They and Provincial officer Michael Lebens will continue to oversee the three offices after the acquisition.
Frandsen Financial, founded in 1982 by Dennis Frandsen and based in Arden Hills, owns 30 full-service bank offices in Minnesota, North Dakota, and Wisconsin, totaling $1.6 billion in loans and other assets.
Dennis Frandsen, 81, grew up on a farm in western Wisconsin and became an entrepreneur and business owner over the years in timber, manufacturing and financial interests. He also was a one-time minority owner of the Minnesota Timberwolves.