Great Northern Bank of St. Michael Announces Merger with First American Bank

Great Northern Bank of St. Michael announced Thursday that it has entered into an agreement to merge with First American Bank of Hudson, Wis.

The merger is anticipated to be completed in late September, according to Great Northern Bank release.

“Since we started Great Northern Bank (GNB) in 1999, the regulatory environment for community banks has changed,” said GNB Chairman Peter Alworth. “While GNB has been profitable for the past three years following the Great Recession, our opportunities have been limited by recent changes to regulations. This merger will allow us to better serve our customers in light of the changing regulatory landscape.”

The combined banks will be named First American Bank, according to a release, and “allow the new First American Bank to provide its customers with more than double Great Northern Bank’s previous lending limit.”

“GNB was internally focused during the recession and the years immediately following to ensure our portfolio was strong,” said GNB Chief Executive Officer Paul Ederer. “With this merger, we will again be externally focused and looking for growth.”

Employees and managers at each bank “will continue to serve their customers,” according to the release.

“From an operational standpoint, this merger combines two well run banks with complementary management teams and will result in growth that neither bank could accomplish independently,” Ederer said.

The new First American Bank will have continue to have offices in St. Michael and Hudson.

“This is a very positive transaction that combines two healthy banks in the Twin Cities area with no geographic overlap,” Alworth said.

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