Merchants and Manufacturers Bancorp Inc. of New Berlin, Wis., said it would sell its Fortress Bank of Cresco, Iowa, to Security Agency Inc. of Decorah.
The $1.5 billion-asset Merchants said the deal was part of strategic initiatives it has been working on since the second half of last year. It announced in May that it was entertaining offers for the Iowa bank.
Fortress Bank has $82 million of assets and one branch. The $229 million-asset Security Agency's Decorah Bank and Trust Co. has three branches, all in Decorah.
The deal, announced last week, is expected to close next quarter. The price was not disclosed.
The Fortress Bank deal is separate from Merchants' pending sale to Harris Bank Corp., the $40.3 billion-asset Chicago subsidiary of Bank of Montreal, for about $137.2 million. That deal, announced July 10, is expected to close this year.
