Alerus to acquire HMN Financial

The Alerus Financial Corporation will acquire the Rochester-headquartered HMN Financial Inc., according to a joint press release Wednesday from the two companies.

Alerus, a bank with offices in both the Twin Cities and Grand Forks, North Dakota, will purchase HMN and its prominent subsidiary, Home Federal Saving Bank, for $116.4 million in an all-stock merger, the release said, for a price-per-share of $25.86.

Home Federal is a 90-year-old company and has locations throughout Minnesota, including four offices in Rochester and offices in Owatonna and Eagan. It also operates one location in both Iowa and Wisconsin.

This merger will be the 26th time Alerus has acquired another company. Upon completion of the merger, it will have 29 locations throughout the Midwest.

“Alerus has a proven history of successful strategic acquisitions that strengthen our ability to serve the growing needs of our clients and communities,” Alerus CEO Katie Lorenson said in the press release. “We look forward to welcoming our new team members and supporting their ongoing efforts in providing excellent client service, developing new business, and expanding relationships with a larger balance sheet, robust treasury management and diversified financial services.

HMN Financial CEO Brad Krehbiel said the merger will serve all stakeholders in the company stockholders, clients and employees alike.

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