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Federal Deposit Insurance Corporation - FDIC-Insured - Backed by the full faith and credit of the U.S. Government
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Clara City, Minn. — January 9, 2026 — Citizens Alliance Bank (“CAB”) and First Security Bank – Sleepy Eye (“FSB”) have entered into a purchase and assumption agreement, dated December 12, 2025. Under this agreement, CAB will acquire the Benson and Renville, Minnesota branch locations from FSB, reinforcing Citizens Alliance Bank’s commitment to community banking and strengthening its presence and service to these two communities.
This transaction applies only to the Benson and Renville branches of FSB – Sleepy Eye and does not include other First Security Bank entities or locations.
Following the sale activity, new Citizens Alliance Bank customers will see a suite of products and services focused upon enhancing their banking experience in areas such as credit cards, digital banking technologies and an expanded lending limit.
“We look forward to serving the Benson and Renville communities and believe these locations will be a strong addition to our growing footprint in Minnesota,” said Chad Forkrud, President of Citizens Alliance Bank. “Customers can expect a full suite of deposit and loan products, exceptional customer service, and a modern digital banking experience, all delivered with local decision-making and the community-focused values that define our organization.”
First Security Bank’s President, David Thompson, stated “First Security Bank has enjoyed a great relationship with the communities and customers of Benson and Renville. We are grateful for their support, and we believe the transition of these branch locations to Citizens Alliance Bank will continue to provide them with supportive banking services well into the future.”
Transaction Timeline
The transaction is subject to regulatory approval by the FDIC, Minnesota regulators, and FSB shareholders. Approval is anticipated in the first quarter of 2026, with closing during the weekend of August 22, 2026.
About Citizens Alliance Bank
Citizens Alliance Bank, founded in 1902, is an independent community bank headquartered in Clara City, Minnesota, with total assets exceeding $1.45 billion. CAB operates ten offices serving rural communities in west-central Minnesota, including Clara City, Echo, Granite Falls, Howard Lake, Lake Lillian, Maynard, Montevideo, Murdock, Sacred Heart, and Watertown. In addition, CAB has seven offices across Western Montana.
Citizens Alliance Bank is a wholly owned subsidiary of Forstrom Bancorporation, Inc., a family-owned organization. Upon integration with the Benson and Renville branches of First Security Bank – Sleepy Eye, Forstrom Bancorporation will exceed $1.50 billion in consolidated assets.
About First Security Bank – Sleepy Eye
First Security Bank – Sleepy Eye was established in 1882 and has approximately $193 million in assets. The bank has proudly served and supported Benson and Renville for decades, working alongside local families, businesses, agriculture, and community projects. First Security Bank – Sleepy Eye will continue to operate in the communities of Sleepy Eye, Lamberton and Storden.
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The Forstrom Family Foundation, represented by brothers Phil, Perry, and John, is delighted to share an exciting collaboration with the bank and the City of Clara City. Today, we’re thrilled to announce the creation of the City Memorial Park at the corner of Center Avenue and Main Street, a project that holds special meaning for us and our community.
This park will feature perennial plantings, irrigated sod, comforting shade trees, and an inviting seating areas. Additionally, LED lighting will light the park, as well as featuring a community electronic billboard managed by the City of Clara City.
Construction is already underway, with metal sheeting recently added to the east side of the Sweep Hardware building. We’re humbled to share that we anticipate the park’s completion by October 1st, marking a significant milestone for Clara City.
Please take a moment to view the rendering of the park and join us in celebrating this meaningful addition to our community. Together, we look forward to creating a peaceful space that honors our town’s heritage and brings joy to all who visit.