Alerus Financial Corporation Announces Agreement to Sell Deposits and Assets in Duluth, MN to Frandsen Bank & Trust
(January 15, 2019) – Alerus Financial Corporation (“Alerus”) (OTCQX: ALRS) announced today that its subsidiary, Alerus Financial, N.A., has entered into an agreement for the sale of its deposits and assets in Duluth, Minn. to Frandsen Bank & Trust (“FB&T”). As part of the transaction, FB&T will assume Alerus’ existing downtown Duluth branch, located at 331 W. Superior St. Additionally, Alerus will close its Duluth Miller Hill branch, located at 1405 Miller Trunk Hwy. The transaction is subject to regulatory approval and the satisfaction of customary closing conditions and is expected to be completed in late April. The terms of the transaction were not disclosed.
Alerus is exiting the Duluth, Minn. market so it can dedicate all resources to its core markets, including the Minneapolis-St. Paul, Minn. metropolitan area, Phoenix, Ariz. metropolitan area, Grand Forks, N.D., Fargo, N.D., and growing national market – where Alerus serves clients in all fifty states, primarily through its Retirement and Benefits division.
“The decision to exit a market is never made lightly,” stated Randy Newman, Alerus Chairman, President, and Chief Executive Officer. “As we dedicate our resources to growth in other existing markets, it was important to us to find a buyer committed to the long-term success of Duluth and our existing team. We firmly believe we have found this in Frandsen Bank & Trust.”
Alerus and FB&T will work closely together to ensure a smooth transition for clients. Existing Alerus clients should continue to contact their Alerus team and will receive further information regarding this transaction.
Alerus (Alerus Financial, N.A.) offers business and consumer banking products and services, residential mortgage financing, employer-sponsored retirement plan and benefit administration, and wealth management including trust, brokerage, insurance, and asset management. Alerus Financial banking and wealth management offices are located in Grand Forks and Fargo, N.D., the Minneapolis-St. Paul, Minn. metropolitan area, and Scottsdale and Mesa, Ariz. Alerus Retirement and Benefits plan administration offices are located in St. Paul and Albert Lea, Minn., East Lansing and Troy, Mich., and Bedford, N.H.