The James Brothers, the three Younger Brothers, two Quantrill veterans named Clell Miller and Charlie Pitts and a local outlaw named Bill Chadwell all traveled north, lured by Chadwell's tales of easy pickings in his home state. Right down Jesse's alley, he liked the idea of taking on a northern bank. Planning on making Mankato their first target, Jesse was recognized and they quickly left town.

Riding in pairs, they headed for Northfield, fifty miles to the northeast. Meeting on the outskirts of town on September 6, 1876, they cased the First National Bank, making plans to rob it first thing in the morning.

Two days before Jesse’s 29^th birthday, on September 7, 1876, the James-Younger Gang attempted to rob the First National Bank of Northfield, Minnesota. The attempted robbery was to be the demise of the infamous James-Younger Gang. When ordered to open the safe, bank cashier, Heyman, refused to do so and ducked down.

Angered, Jesse put a pistol to his head and shot him. The shot was heard beyond the bank and when the bank alarm began to go off the Northfield citizens opened fire upon the gang. Charley Pitts and Bill Chadwell were killed. Cole, Jim and Bob Younger were badly wounded but managed to escape. However, they were captured just one week later, just east of Mankato. The Younger Brothers were sentenced to life terms in prison. Frank and Jesse escaped back to Missouri, unharmed.

On February 6, 1878 Frank and Annie James give birth to Robert James and on June 17, 1879 Jesse and Zee gave birth to a daughter they named Mary Susan who was born in Nashville, Tennessee where Jesse and Zee stayed with Frank and Annie for a time.

With new gang members the robberies continued over the next several years including a stage hold-up near Mammoth Cave, Kentucky and a bank robbery in Muscle Shoals, Alabama, and a train robbery in Winston, Missouri.

Shortly after the gang’s last train robbery on September 7, 1881 at Glendale, Missouri, Jesse moved his family to St. Joseph, Missouri. Renting a house on 1318 Lafayette Street on December 24, 1881, the family settled in under Jesse's assumed name of Tom Howard. With a $10,000 reward over his head, Zee tried to get Jesse to take on a more normal life. And Jesse agreed, right after one last great bank robbery in Platte County, Missouri. Jesse had finally decided to retire, hopefully with enough money to become a gentleman farmer.

Planning the robbery with Bob and Charles Ford, whom Jesse had worked with in the past, the Ford brothers visited the James home in St. Joseph on the morning of April 3, 1882. Outlining his plans for the robbery with Bob and Charles in the parlor of his home, Jesse noticed that a framed needlepoint picture, done by his mother, was hanging crookedly on the wall. Standing on a chair to adjust the picture, Jesse turned slightly as he heard the sound of Bob Ford’s cocked pistol. Bob shot Jesse just below the right ear and Jesse toppled to the floor dead. Jesse was 34 years old.