Overview
The BFKN Financial Institutions Group served as legal counsel to Alerus Financial Corporation (“Alerus”) (NASDAQ: ALRS) in its definitive Agreement and Plan of Merger with HMN Financial, Inc. (“HMNF”) (NASDAQ: HMNF) pursuant to which Alerus will acquire, in an all-stock merger, HMNF, a savings and loan holding company headquartered in Rochester, Minnesota, and the parent company of Home Federal Savings Bank (“Home Federal”).
Under the terms of the Merger Agreement, HMNF will merge with and into Alerus, and Home Federal will merge with and into Alerus' wholly-owned bank subsidiary, Alerus Financial, National Association, in a deal worth about $116.4 million. This merger marks Alerus' twenty-sixth acquisition since 2000, aligning with its strategic goal of continuous expansion across various business segments, including banking, wealth services, and retirement and benefits plans. Following the merger, the combined entity will boast approximately $5.5 billion in total assets, $3.7 billion in total loans, and $4.3 billion in total deposits, along with assets under administration and management totaling approximately $43.1 billion.
“We are pleased with this partnership and the strategic expansion into the growing and vibrant Rochester, Minnesota, market and other communities Home Federal serves. Home Federal has built a valuable core deposit franchise based on long-standing client relationships, and we believe their culture, vision, and purpose align remarkably well with ours,” said Katie Lorenson, President and Chief Executive Officer of Alerus.
BFKN's legal team was led by Financial Institutions co-chair Joseph T. Ceithaml with assistance from associates Zoe Xiuha Uvin and Camryn C. Dreyer. Tax considerations of the transaction were handled by partner Megan E. Toal. Andrew K. Strimaitis, Corwin J. Carr, and Alex Freund advised on executive compensation and employment matters. Real estate matters were handled by Christine K. Nichols.
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