ROCHESTER — Home Federal Savings Bank, a 90-year-old Rochester financial institution, announced Wednesday that it will merge with Aleras Financial Corporation of Grand Forks, North Dakota, in a deal valued at approximately $116.4 million.
Home Federal’s parent company, HMN Financial, Inc., signed an agreement for the bank to merge with Aleras. Founded in 1934, Home Federal operates four of his branches in Rochester and a total of 12 branches in Minnesota. It also has branches in Iowa and Wisconsin.
As of March 31, 2024, HMN/Home Federal reported total assets of $1.2 billion. This includes approximately $872.3 million in loans and $1.0 billion in total deposits. Upon completion of the merger, one HMN director will join the Aleras Board of Directors.
“We believe we have found a great partner in Aleras. They have a proven track record of diversification, profitable growth, and the ability to execute acquisitions. “We believe this will benefit all of our constituents, including our shareholders, customers, employees and communities,” Home Federal President and CEO Brad Krehbiel said in the merger announcement. Stated.
The merger agreement is expected to close in the fourth quarter.
The merger will expand Aleras’ footprint in the Twin Cities region, which has six branches in Minnesota. There are a total of 17 branches throughout the Midwest and Arizona. Upon completion of the transaction, Aleras will have approximately $5.5 billion in assets, $3.7 billion in loans and $4.3 billion in deposits.
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“We are pleased with this partnership and our strategic expansion into the growing and vibrant Rochester, Minnesota, market and other communities served by Home Federal. We have built a valuable core deposit franchise based on our relationships with our customers, and we believe their culture, vision and purpose aligns very well with ours,” said Aleras President and CEO. CEO Katie Lorenson said in the announcement. “We welcome our new team members and thank them for their continued efforts in providing superior customer service, developing new business, a larger balance sheet, robust financial management, and expanding relationships with a diverse range of financial services. I look forward to supporting you.”
