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Merchants Bank to acquire Cottage Grove Mainstreet Bank

Merchants Financial Group, Inc., plans to purchase the deposits and building of the Mainstreet Bank at 7200 East Point Douglas Road in Cottage Grove, according to a press release.

The two banks announced they had reached an agreement on the sale of the bank for approximately $16 million Wednesday, but said the sale is subject to regulatory approval.

Bank customers with checking or savings accounts will remain at that location after the branch becomes a Merchants Bank, however loan customers at the bank will be moved to Mainstreet Bank's Newport location, said Karen Greisinger, Mainstreet Bank's chief marketing officer.

The bank will become Merchants' second branch in Cottage Grove.

Mainstreet Bank has locations at 8194 Tamarack Village in Woodbury and 2104 Hastings Avenue in Newport.