Alerus(US:ALRS) Newsfilterยท2024-05-15 12:30Core Viewpoint - Alerus Financial Corporation has signed a definitive Agreement and Plan of Merger to acquire HMN Financial, Inc. in an all-stock transaction valued at approximately $116.4 million, aiming to enhance its business segments and expand its market presence [1][2][4]. Company Overview - Alerus Financial Corporation 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 [6][7]. - HMN Financial, Inc. is a savings and loan holding company headquartered in Rochester, Minnesota, operating Home Federal Savings Bank with 12 branches in Minnesota and additional locations in Iowa and Wisconsin [8]. Merger Details - The merger will result in HMNF merging with Alerus, and Home Federal merging with Alerus' wholly-owned bank subsidiary, Alerus Financial, National Association [1][2]. - Upon completion, the combined company will have approximately $5.5 billion in total assets, $3.7 billion in total loans, and $4.3 billion in total deposits, with assets under administration and management of approximately $43.1 billion [2]. - Stockholders of HMNF will receive 1.25 shares of Alerus common stock for each share of HMNF common stock they own, with the transaction expected to be immediately accretive to Alerus' estimated earnings [3][4]. Strategic Rationale - The merger is part of Alerus' long-term plan to expand its business segments, including banking, wealth services, and retirement and benefits plans [2]. - Alerus aims to leverage Home Federal's core deposit franchise and client relationships to enhance service offerings and community engagement [3]. Financial Advisors - Raymond James & Associates, Inc. served as financial advisor to Alerus, while D.A. Davidson & Co. served as financial advisor to HMNF [4].