HMN Financial, Inc. Completes Merger with Alerus Financial Corporation - What Investors Need to Know
HMN Financial, Inc. (NASDAQ:HMNF) has successfully completed its merger with Alerus Financial Corporation, according to a recent SEC filing. The merger, which was finalized on Wednesday, marks the end of HMN Financial as a separate entity, with Alerus now the surviving corporation.
Under the terms of the merger agreement, each share of HMN Financial common stock has been converted into 1.25 shares of Alerus common stock, with cash compensation for any fractional shares. All restricted stock awards of HMN Financial vested prior to the merger, with restrictions and forfeiture risks lifted.
Following the merger, HMN Financial's common stock was delisted and deregistered from Nasdaq. The company plans to file a Form 15 with the SEC to formally deregister its common stock. Shareholders now hold the right to the merger consideration, with Alerus' directors and officers taking over.
Alerus Financial Corporation received all necessary regulatory approvals for the acquisition of HMN Financial, Inc. and its subsidiary, Home Federal Savings Bank. The merger is expected to close in the fourth quarter of 2024, expanding Alerus' assets and branch network.
InvestingPro Insights:
HMNF has shown strong market performance, with a 53.04% price total return over the past year. Its P/E ratio of 23.91 and Price to Book ratio of 1.1 indicate a moderate valuation compared to the banking sector. HMNF has been profitable, but weak gross profit margins may have influenced the merger decision.
For more in-depth analysis on HMNF's financial metrics and the implications of the merger with Alerus, check out InvestingPro's 6 additional tips.
In conclusion, the merger between HMN Financial and Alerus Financial Corporation signifies a significant development in the financial market. Investors should take note of the changing landscape and potential opportunities that may arise from this corporate event.