MINNEAPOLIS, MN (March 10, 2014) – Alerus Financial, N.A. (OTCQB: ALRS), a diversified financial services company based in Grand Forks, ND, announces the acquisition of Twin Cities-based Private Bank Minnesota. The acquisition, consisting of roughly $142 million in banking assets with one banking office in downtown Minneapolis, will increase Alerus’ Twin Cities banking assets to approximately $398 million. Alerus has total banking assets of $1.4 billion and total wealth management assets under management and administration of $14.7 billion as of December 31, 2013. The transaction is subject to customary approvals and is expected to be completed in the second quarter of 2014.
“We’ve identified the Twin Cities, and also Phoenix, AZ, as growth markets for our company,” said Alerus Financial President and CEO Randy Newman. “This transaction strategically aligns with our long-term strategy of expanding in the Twin Cities, and is extremely complementary to our business model and already strong organic growth in this market. Alerus and Private Bank both share a similar client-focused culture where we value much of the same philosophies.”
“We are impressed by how Alerus does business and excited about the opportunity this transaction provides to our clients,” stated Private Bank President, CEO, and Founder Vicki Turnquist. “We firmly believe our clients will benefit from working with the same local staff, in addition to offering a more diversified product suite. With Alerus, we can expand beyond personal and commercial banking to now provide investment advisory services, retirement planning, trust services, and enhanced residential mortgage products.”
Private Bank’s downtown Minneapolis office will become a branch of Alerus Financial. “While we already serve customers in the market, this purchase enhances our physical presence downtown and will increase our customer base. There will be no interruption of banking services and we are committed to making the transition to Alerus as seamless as possible for everyone,” said Alerus Financial Twin Cities Market President, David “Chip” Norris.
Alerus Financial is committed to serving the unique needs of private banking and professional service clients. Alerus’ existing relationship manager team offers high-touch personalized attention and exclusive services primarily to affluent individuals, medical practices, law firms, and organizations with intricate ownership structures. With sophisticated tools and a broad array of services (banking, brokerage, insurance, investment, mortgage, retirement services, trust and financial planning), Alerus provides clients with a 360° solution to banking and wealth management.
In the last decade, Alerus has completed 9 acquisitions in the Twin Cities. Alerus Financial first entered the Twin Cities in 2003 with the purchase of a retirement plan administration company, and in 2007 opened a business-banking branch in Minnetonka. Alerus currently employs 250 employees in the Twin Cities through three banking locations in Minnetonka, Oakdale, and Maplewood, MN; a retirement advisory services company operating as Alerus Retirement Solutions in Arden Hills, MN; a mortgage company operating as Alerus Mortgage in Minnetonka, Edina, and Arden Hills, MN; and an asset management and retirement plan consulting company operating as Alerus Investment Advisors in Minnetonka, MN.
About Alerus Financial Corporation
Alerus Financial Corporation is a diversified financial services company providing commercial and consumer banking, residential mortgage, insurance, trust, securities brokerage, investment advisory, and retirement plan administration, recordkeeping and advisory products and services. Alerus provides services through its wholly owned subsidiary bank, Alerus Financial, N.A., and its affiliates Alerus Investment Advisors Corporation and Alerus Securities Corporation. Alerus has banking offices in North Dakota’s Red River Valley; Minnesota’s Twin Cities; and Scottsdale, Arizona. Alerus also provides retirement services to clients across the nation.
The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements about Alerus Financial Corporation. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date made. These forward-looking statements may cover, among other things, anticipated future revenue and expenses and the future plans and prospects of Alerus Financial Corporation. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect Alerus Financial Corporation’s revenues and the values of its assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, Alerus Financial Corporation’s business and financial performance is likely to be negatively impacted by effects of recently enacted and future legislation and regulation. Alerus Financial Corporation’s results could also be adversely affected by deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, residual value risk, market risk, operational risk, interest rate risk, and liquidity risk.
Forward-looking statements speak only as of the date they are made, and Alerus Financial Corporation undertakes no obligation to update them in light of new information or future events.