Midwest Bank has entered into an agreement to sell its Baxter bank to First National Bank of Deerwood.
Steve Lund, Midwest Bank president, confirmed the announcement last week. The sale must receive regulatory approval. First National Bank of Deerwood, has offices in Brainerd/Baxter and Deerwood, along with branches in Garrison, Bemidji, Blackduck, Littlefork and Northome.
John Ohlin, First National Bank of Deerwood president and CEO, said late Friday it is too early for details. Ohlin said the Baxter branch will be an additional location for the bank and the plans are to expand. First National Bank of Deerwood owns land near the Wal-Mart Supercenter.
If things go smoothly, Ohlin said regulatory approval may be finalized in the early third quarter. In a news release, Ohlin stated the "acquisition between like type institutions allows us to serve even more customers in this key marketplace."
First National Bank of Deerwood has been locally owned for more than 98 years and "remains committed to the Crow Wing County marketplace," the bank reported in a news release.
"During the first three years, we experienced rapid growth that paralleled our experiences in some of the other markets we had entered at the time," Steve Daggett, Midwest Bank president and CEO, said in a news release. "However, that trend leveled off in the last few years, mostly due to the impact of the national economy and the extremely competitive market in Baxter and Brainerd."
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