First National Bank to Acquire First State Bank of Fountain and Root River State Bank

FULDA, MN, February 25, 2026 – First National Bank (FNB) is proud to announce that it has entered into definitive agreements to acquire First State Bank of Fountain and Root River State Bank of Chatfield.  The acquisition is subject to customary regulatory approvals [and is expected to close at the end of the second quarter of 2026].

With deep roots in agricultural and small-town banking, FNB currently serves 11 communities across Iowa, Illinois, Minnesota, and South Dakota.  The acquisition deepens FNB’s footprint in Southern Minnesota.  FNB will maintain the hometown service and local decision-making that customers of these banks know while enhancing their banking experience with an expanded suite of products and services including modern digital tools and expanded lending limits.  

“First State Bank of Fountain and Root River State Bank share our belief that great banking starts with service, relationships, and local decision‑making. We’ll preserve what their customers value most while adding First National Bank’s broader product set and digital capabilities so neighbors, farms, and small businesses across southern Minnesota have even more support close to home.

“From Fountain’s “all we have to sell is service” philosophy to Chatfield’s distinction as Minnesota’s oldest bank, these community banks set a high bar. Our job is to carry that spirit forward and give customers even more ways to succeed.” -Darwin Kruse, CEO, First National Bank

First State Bank of Fountain and Root River State Bank President and CEO Charles M. Johnson Jr. (Chuck), added: “After much thought, prayer, (and 48 years of service at the banks!) I determined that now was a good time for me to step back from the day-to-day management and ownership of the banks.  As I researched potential banks to acquire our firms, I was drawn to First National Bank and their strong commitment to the communities they serve, their local decision makers, their continued support of existing employees, and their ability to offer enhanced banking services to our customers. I am confident that I am leaving the banks in great hands and believe that Charles Sr. and Hiram would be pleased with my decision.”