Alerus to acquire HMN Financial in ~$116.4M all-stock merger, exchange ratio 1.25x

ALERUS FINANCIAL CORP

HMNF holders receive 1.25 Alerus shares per HMNF share; implied value ~$25.86/share, aggregate ~$116.4M.
Pro forma combined company: ~$5.5B assets, $3.7B loans, $4.3B deposits, $43.1B assets under administration.
Transaction expected to be immediately accretive to Alerus EPS; tangible book value earnback ~2.2 years; IRR >25%.
HMNF had $1.2B assets, $872M loans, $1.03B deposits as of March 31, 2024; operated 14 branches in MN, IA, WI.
Expected to close in Q4 2024; approvals required from regulators and stockholders of both companies.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ALERUS FINANCIAL CORP entered into Agreement and Plan of Merger with HMN Financial, Inc. valued at approximately $116.4 million (effective 2024-05-14).

Action: entry
Agreement: merger
Counterparty: HMN Financial, Inc.
Value: approximately $116.4 million
Effective: 2024-05-14

Exact text from the filing

On May 14, 2024, Alerus Financial Corporation, a Delaware corporation (the “Company”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with HMN Financial, Inc., a Delaware corporation (“HMNF”), pursuant to which HMNF will merge into the Company, with the Company as the surviving corporation (the “Merger”).

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ALERUS FINANCIAL CORP filing history →

Source: SEC EDGAR

accession 0001104659-24-061633

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