Magazine article American Banker

2 Big Thrifts Plan Merger in Minnesota

Magazine article American Banker

2 Big Thrifts Plan Merger in Minnesota

Article excerpt

ST. PAUL -- Officials of two large Twin Cities savings and loan associations, Minnesota Federal and First Federal, said last week the institutions have agreed to merge.

They said they hope to complete the merger by the end of the year. An application has been made to the Federal Home Loan Bank Board.

With more than $3.1 billion in assets, the merged institution would be the second largest thrift in Minnesota, surpassing Midwest Federal Savings and Loan Association, which ended last year with $2.2 billion in assets. Twin City Federal is the largest.

"We are both very conservatively operated and run, with strong net worths," said Wilfred E. Lindgren, chairman of First Federal. "We're both struggling with some of the same problems. I think the result will be a bigger and stronger institution."

First Federal lost $9.3 million last year, and Minnesota Federal lost $3.1 million. First Federal has assets of $1.8 billion and a net worth of $74.6 million. Minnesota Federal has $1.3 billion in assets and a net worth of $54.8 million.

Mr. Lindgren said officials will decide within the next few weeks on a name and headquarters location for the merged institution.

Although each association serves the entire Twin Cities market, Minneapolis-based First Federal's 38 offices are concentrated in Minneapolis and surrounding communities. St. Paul-based Minnesota Federal's 39 offices are concentrated in the St. Paul area and outside the Twin Cities.

There appear to be about a dozen locations with duplicate branch offices. …

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