Frandsen Financial Corp. said it is buying Peoples Bank Midwest of Hayward, Wis., in a transaction expected to close by the end of the year, pending regulatory approval.

Peoples Bank has assets of more than $360 million and equity capital of about $75 million. The bank also operates offices in Eau Claire, Wis., and Vadnais Heights.

The deal would push Arden Hills-based Frandsen Financial, parent of Frandsen Bank & Trust, over $2 billion in assets, making it Minnesota's second-largest privately held banking company behind St. Paul-based Bremer Financial.

Chairman Michael O'Meara of Peoples Bank, who bought the bank in 1991, said: "Peoples Bank customers won't notice many differences, if any, once the ownership changes hands. We were very intentional about who we sold the bank to."

Read more in the Star Tribune and the American Banker.