Cattail Bancshares in Atwater, Minn., has finally landed a deal after several years on the prowl.
The $120 million-asset Cattail has agreed to buy the $61 million-asset Citizens State Bank of Waverly in Minnesota, the Minneapolis/St. Paul Business Journal reported in its online edition Friday.
Over the past few years Cattail has looked at potentially buying about six banks but has been selective. Citizens was a "clean bank" and the "right size" for Cattail to take on, Bob Meyerson, the owner and president of Cattail, said, according to the Business Journal.
"We're not looking for problems. We'd rather pay more up front," he said, according to the Business Journal.
Citizens had a core capital (leverage) ratio of 9.29% and a total risk-based capital ratio of 15.58% at June 30, according to the Federal Deposit Insurance Corp. Its noncurrent loans were 1.55% of total loans, according to the FDIC.
Citizens was looking to sell because of new regulations.
"The regulatory environment has been brutal the last several years," Catherine Jackson, chief executive of Citizens, said, according to the Business Journal. "Going forward, a small independent bank is not going to be the model of the future."
The financial terms of the deal, which should close by the end of the year, were not disclosed.
Citizens is expected to keep its name and employees after the deal closes.
Cattail is the holding company for Atwater State Bank and State Bank of Kimball.