A Minnesota start-up is buying a 70-year-old thrift in an $11.1 million deal.
Northern Star Financial Inc., a 10-month-old bank holding company based in Mankato, said it is buy First Federal Holding Co. of Morris (Minn.) Inc. The deal is worth 2.29 times First Federal's book value and 19.75 times earnings.
First Federal has $58 million of assets and three branches.
For Northern Star, which has $12 million of assets and one location, the deal was a chance to get big quickly, its chief executive said. "First Federal is a soundly managed and profitable institution in markets that adjoin our marketplace," said Thomas P. Stienessen. "Minnesota has been enjoying strong economic growth, and this bank adds to our prospects for growth in the future."
The deal is expected to close in June.