Merchants Bank and the First National Bank of Northfield have reached an agreement for Merchants to acquire the Northfield banking institution, according to Gregory M. Evans, president and CEO of Merchants Financial Group.

The First National Bank of Northfield has $207 million in assets, $157 million in loans (plus an additional $60 million in sold loan participations) and $183 million in deposits.

First National was chartered in Northfield in 1873 and Merchants' history began in Winona in 1875.

Internationally recognized as the bank that defeated Jesse James in 1876, First National Bank operates out of two branches in Northfield and a loan production office in Minneapolis.

Under the terms of the agreement, Merchants Financial Group, Inc. will acquire all of the outstanding stock of The First National Bank of Northfield in an all cash transaction.

The amount of the sale was not disclosed.

Merchants has several local branches including those in Cannon Falls and Red Wing.