HMN Financial surges on buyout deal with Alerus Financial

HMN Financial

15/05/2024 14:46

** Shares of regional bank HMN Financial  HMNF.O  jump ~21%
to $23.65 in morning trading 
    ** Alerus Financial  ALRS.O  has agreed to buy HMNF in an
all-stock deal valued at $116.4 mln, the banks announce 
    ** HMNF, which had a market cap of about $87.07 mln, is a
savings and loan holding company headquartered in Rochester,
Minnesota, and the parent of Home Federal Savings Bank
    ** Founded in 1934, Home Federal operates 12 branches in
Minnesota and one branch in Iowa and Wisconsin each; as of March
31, it had consolidated assets of $1.2 bln 
    ** ALRS shares dipped 0.5% on the news in early trading  
    ** Companies expect the deal to close in Q3  
    ** Shares of HMNF are down ~15% YTD
    ** YTD, ALRS has declined 7.6% through previous close,
giving it a market value of roughly $409.2 mln

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))