Alerus Financial Corporation has completed its acquisition of HMN Financial, Inc., and its subsidiary, Home Federal Savings Bank. The all-stock transaction was valued at approximately $128.8 million. Home Federal, founded in 1934, includes 12 branches in Minnesota, one branch in Iowa, and one branch in Wisconsin. As of June 30, 2024, HMN Financial, Inc. had $1.1 billion in total assets, which included approximately $876.6 million in loans and $983.2 million in total deposits.
With this acquisition, Alerus now has approximately $5.5 billion in total assets, $3.8 billion in total loans, and $4.3 billion in total deposits, with assets under administration and management of approximately $43.6 billion. Alerus operates 29 locations across the Midwest and in Arizona.
The acquisition expands Alerus' presence into Rochester, Minnesota, and is the largest bank acquisition in Alerus' history. Alerus has completed twenty-six acquisitions since 2000 as part of its long-term plan to continually expand its business segments, including banking, wealth services, and retirement and benefits plans and services.
Jeffrey Bolton, former Chief Administrative Officer at Mayo Clinic, has joined Alerus Financial Corporation’s board of directors in connection with the closing of the acquisition. Raymond James & Associates, Inc. served as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to Alerus on the transaction. D.A. Davidson & Co. served as financial advisor and Ballard Spahr LLP served as legal counsel to HMN Financial, Inc. Alerus expects to transition Home Federal client accounts to Alerus systems in the fourth quarter of 2024.
Alerus Financial Corporation (NASDAQ: ALRS) is a commercial wealth bank and national retirement services provider with corporate offices in Grand Forks, North Dakota, and the Minneapolis-St. Paul, Minnesota metropolitan area. Alerus operates 29 banking and wealth offices, with locations across the Midwest and in Arizona. The market has reacted to these announcements by moving the company's shares 3.0% to a price of $22.95. If you want to know more, read the company's complete 8-K report here.