WINONA, Minn. - The Federal Reserve Bank has approved Merchants Financial Group's application to purchase the First National Bank of Northfield, according to Merchants President and Chief Executive Officer Gregory M. Evans.

"We've been given a tremendous opportunity to continue to build upon First National Bank's respected reputation in Northfield and the surrounding area, and demonstrate the same philosophy with regard to community banking and personalized service," said Evans in a press release. "We have absolute confidence this partnership will be beneficial to all of our stakeholders, including the loyal First National customers we will have the privilege to serve in Northfield."

The sale includes about $196 million in deposits, $165 million in loan relationships, $222 million in total assets, outstanding stock for First National Bank of Northfield, as well as the physical locations of the banks in Northfield and loan production office in Bloomington. The sale is scheduled to be completed in late August. Terms of the sale have not been disclosed.

Merchants Bank is a full service community bank with 21 branches in southeastern Minnesota and west-central Wisconsin, including Red Wing and Cannon Falls. Headquartered in Winona, Minn., it is the fifth-largest banking organization headquartered in the state of Minnesota with more than $1.76 billion in assets.