National Bank of Commerce to acquire RiverWood Bank to expand its presence in Minnesota

NATCOM Bancshares, Inc. (NATCOM), the holding company for the National Bank of Commerce, and Great River Holding Company (Great River), the holding company for RiverWood Bank (RiverWood), announced today that they have entered into a definitive agreement for NATCOM to acquire Great River in an all-cash deal.

The sale of the transaction is expected to close in late 2024, with the conversion of accounts happening in early 2025, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of Great River’s shareholders.

The combined organization is expected to have approximately $2 billion in total assets with more than 250 employees across 12 counties in northern Wisconsin, central Minnesota, and northern Minnesota.

“We have been looking for strategic opportunities to further expand National Bank of Commerce into greater Minnesota, and we believe we have found the ideal partner in RiverWood Bank,” said Brad Roden, CEO of National Bank of Commerce. “By bringing together two high-performing and like-minded community banks who share a commitment to serving their local communities, we will continue to provide individuals and businesses with excellent service and a full range of financial products. This acquisition solidifies us as a well-established and highly respected institution, which we intend to grow with even more banking products, services, and technologies. As a larger, combined company, our commitment to RiverWood Bank’s communities is unwavering and will only increase over time.”

National Bank of Commerce, founded in 1934, has been a sound community bank with consistently excellent profitability. It has earned a pre-tax return on average assets that has exceeded 1.40% per calendar year for over ten years, including last year in 2023.

RiverWood Bank, formerly known as First Federal Bank, is a full-service community bank established in 1910. It has 11 branches dedicated to providing exceptional service to its loyal and longstanding customer base. As of March 31, 2024, RiverWood had approximately $625 million in total assets. It is a strong-performing bank, with a pre-tax return on average assets exceeding 1.00% in each of the past five calendar years, including last year in 2023.

Paul Means, CEO of RiverWood Bank, agrees this acquisition is an exciting opportunity for all stakeholders.

“The merging of these two established institutions allows us to provide a broader range of banking services to our customer base, and our larger combined legal lending limit will allow us to continue to grow and become a bigger player in our communities,” said Means. “In addition, this will allow us to leverage National Bank of Commerce’s infrastructure to meet the growing compliance and regulatory burdens of banking, so our team members will have more time to focus on our customers. Our banks share common values and a passion to exceed customer expectations. This acquisition will only solidify these values. Finally, we promise to uphold our commitment to the communities in our market areas by continuing to support our local charitable organizations and service groups.”

Means will continue his service, now at National Bank of Commerce, in a leadership capacity following the close of the sale. This will help to ensure continuity for customers and associates.

NATCOM was advised by the investment banking firm Performance Trust Capital Partners, LLC and the law firm Winthrop & Weinstine, P.A. Great River was advised by the investment banking firm Keefe, Bruyette & Woods, and the law firm Fredrickson & Byron P.A.

About National Bank of Commerce

National Bank of Commerce is headquartered in Superior, WI and has locations in Duluth, Esko, Hermantown, Hibbing, Poplar, Solon Springs, and Superior. Learn more at nbcbanking.com. Member FDIC and Equal Housing Lender.

About RiverWood Bank

Riverwood Bank has 11 locations in northern and central Minnesota. Its mission is to empower employee owners to exceed customer expectations and become the most trusted and respected bank in the communities it serves. Learn more at RiverWoodBank.com. Member FDIC and Equal Housing Lender. – NBC press release