United Farmers and Merchants acquired by Dacotah Bank
ABERDEEN – United Farmers and Merchants State Bank of Morris will be acquired by Dacotah Banks of Aberdeen, S.D.
Paul Ersted, president of United Farmers and Merchants State Bank and Rod Fouberg, chairman of the board of Dacotah Banks have entered into a Letter of Intent that will join both the Morris and Chokio branches to the South Dakota firm.
Dacotah Bank has 31 locations in North Dakota and and South Dakota. The Morris and Chokio locations will be the company’s first Minnesota locations.
“Minnesota has always been attractive to Dacotah Bank for a variety of reasons,” said Fouberg. “We are the nation’s 18th largest agricultural lender and west central Minnesota is home to great ag producers and agri-businesses.”
The two banks also have similar histories as family-owned banks, said Ersted.
“We celebrated our 100th anniversary last year as an independent community bank,” said Ersted. “Dacotah Bank, too, is an independent community banking organization with roots in the upper Midwest dating back to the late 1800s.”
Another similarity between the two banks is insurance services. United Farmers and Merchants provides insurance to policyholders in the community areas of Morris, Chokio and Donnelly, Minn. Since 1960 Dacotah Insurance has been serving families, business owners, and farmers and ranchers. Today there are 14 Trusted Choice independent Dacotah Insurance agencies located at Dacotah Banks throughout Dacotah Territory.
Management with both banks have agreed to general terms of the agreement, but have not yet executed a formal purchase agreement.
“Regulatory review and approval is a requirement of any such agreement and due diligence will be performed so our two organizations get to know each other better prior to any technology conversion or modifications to products and services for the benefit of our new customers,” said Fouberg.