09:07 AM EDT, 05/15/2024 (MT Newswires) -- Alerus Financial ( ALRS ) has agreed to acquire HMN Financial ( HMNF ) in an all-stock transaction valued at approximately $116.4 million, the companies said Wednesday.

The acquisition includes HMNF, a Minnesota savings and loan company, and its parent company Home Federal Savings Bank.

Under the terms of the deal, which has already been approved by the companies' boards, HMNF shareholders will receive 1.25 shares of Alerus stock for each of their shares. Upon the anticipated Q4 closing of the deal, one HMNF director will join Alerus' board.

The combined company will hold $5.5 billion in assets, $3.7 billion in loans, $4.3 billion in deposits, and assets under management of approximately $43.1 billion, with 29 locations across the Midwest and in Arizona.

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