GRAND FORKS, N.D. & ROCHESTER, Minn. - Alerus Financial (NASDAQ:ALRS) Corporation (NASDAQ:ALRS) and its subsidiary Alerus Financial, National Association, announced the receipt of all necessary regulatory approvals to proceed with the acquisition of HMN Financial, Inc. (NASDAQ:HMNF) and its subsidiary, Home Federal Savings Bank. The merger, previously approved by the boards of both companies, also received the green light from stockholders on September 12, 2024.
Katie Lorenson, President and CEO of Alerus, expressed enthusiasm about the merger, emphasizing a smooth transition for Home Federal’s clients and employees. Brad Krehbiel, President and CEO of HMN Financial, highlighted shared values and commitment to client service as key reasons for selecting Alerus as a merger partner.
The acquisition is expected to close early in the fourth quarter of 2024, subject to standard closing conditions. This merger will result in Alerus growing to approximately $5.5 billion in total assets, $3.7 billion in loans, $4.3 billion in deposits, and roughly $43.1 billion in assets under administration and management. The addition of Home Federal’s 12 branches in Minnesota, one in Iowa, and one in Wisconsin will expand Alerus' footprint, bringing its total to 29 locations across the Midwest and Arizona.
Alerus Financial Corporation, headquartered in Grand Forks, North Dakota, with offices in the Minneapolis-St. Paul area and Arizona, offers a range of financial solutions including banking, wealth services, and retirement and benefits plans. HMN Financial, Inc. and Home Federal Savings Bank, based in Rochester, Minnesota, operate full-service offices across Minnesota, Iowa, and Wisconsin.
The press release also contains forward-looking statements regarding the anticipated performance post-merger and cautions that these statements are subject to risks, uncertainties, and assumptions. It notes that actual results may differ from expectations due to various factors. This news is based on a press release statement.
InvestingPro Insights
As Alerus Financial Corporation (NASDAQ:ALRS) moves forward with its acquisition of HMN Financial, Inc. (NASDAQ:HMNF), investors are taking a closer look at HMNF's financial metrics and performance. According to InvestingPro data, HMN Financial has a market capitalization of $115.66 million and a price-to-earnings (P/E) ratio of 22.14, which adjusts to a slightly lower P/E ratio of 20.04 for the last twelve months as of Q2 2024. Despite a revenue decline of 4.21% in the same period, the company has experienced a quarterly revenue growth of 5.95% in Q2 2024.
InvestingPro Tips highlight that HMN Financial has been trading near its 52-week high, with the price reaching 98.13% of this peak value. Additionally, the company has shown a strong return over the last three months, with a price total return of 24.07%, and an even more significant uptick over the last six months, at 25.31%. This performance suggests that investors have confidence in the company's future, especially in light of the upcoming merger.
The strategic merger is expected to enhance Alerus' presence in the Midwest and align with both companies' focus on client service and shared values. For investors seeking more insights, there are additional InvestingPro Tips available, providing a deeper analysis of HMNF's financial health and market performance.
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