Merchants to buy three TCF branches

Northwestern Financial Review, Aug 21, 1999

The Merchants Holding Company of Winona has reached an agreement with TCF National-Minnesota to purchase its three branches in Rochester.

The sale of the Rochester locations, with deposits of $35 million, is expected to be complete by the end of the year.

Richard L. Mahoney, named executive vice president of Merchants one day prior to the acquisition announcement, said the purchase is consistent with a holding company plan to establish a presence in the Rochester market and to grow the company's franchise throughout southern Minnesota.

"This is a significant development for our company, and one that we have specifically planned for during the last several months," Mahoney said. "We have identified that there is need for our highly-personalized approach to relationship banking in that market. It is our objective to be recognized as a leading full-service financial institution in Rochester.

"We have built a strong reputation in the markets we serve because of the commitment we make to the community, the concern we demonstrate for our customers, and the full-service approach we take to the delivery of products and services," Mahoney continued.

The flagship bank of the Merchants Holding Company is the Merchants National Bank of Winona. The company also owns Merchants Capital Resources, an equipment lease financing subsidiary in Minneapolis; the La Crescent State Bank; and the Sprague National Bank in Caledonia. Acquisition of the Hampton Bank is pending. Total assets currently are $385 million.

Mahoney was named executive vice president on August 9. He has responsibility for overseeing the day-to-day operations of the company.