Grand Forks, N.D.-based Alerus Financial Corp., has agreed to acquire Arizona’s Metro Phoenix Bank in a deal worth more than $85 million.
The transaction, expected to wrap up by early next year, is the 25th for Alerus as part of its long-term plan to continually expand its four business segments — banking, retirement and benefits services, wealth management and mortgage. Alerus has been in the Phoenix market since 2009. Founded in 2007, the one-branch Metro Phoenix Bank has approximately $411 million in total assets, $283 million in total loans, and $366 million in deposits.
Following the acquisition, the $3.1 billion Alerus will have the fifth-largest deposit market share in the Phoenix metropolitan area for community banks, with three branches in Phoenix, Scottsdale and Mesa. The combined company’s Arizona operation will have approximately $439 million in total loans and $483 million in total deposits.
“Alerus has a long history of successful strategic acquisitions that strengthen our ability to provide diversified financial services to clients across the country,” said President and CEO Randy Newman. “The addition of Metro Phoenix Bank will complement our business model and enhance our ability in Phoenix to offer commercial lending and banking services. We are honored to welcome our new team members and clients, and we look forward to continue providing them with excellent client service and growing these relationships with the diversified products that make Alerus unique among financial service providers.”
Alerus Chief Financial Officer Katie Lorenson, who will succeed Randy Newman as Alerus president and CEO Jan. 1, led the negotiations for the acquisition. “We believe this will allow us to continue delivering value to our shareholders while staying true to our commitment to pursue acquisitions that align with our culture and core values,” Lorenson said. “The Phoenix MSA is one of the largest and fastest growing metropolitan areas in the country. By combining our existing market presence and diverse product offerings with the commercial banking experience and talented professionals of Metro Phoenix Bank, we grow our commercial client base which provides an opportunity to expand those relationships by serving the business, the owners, and their employees holistically.”
Steve Haggard, president and CEO of Metro Phoenix Bank, will join Alerus as president of its Arizona market following the transition.
D.A. Davidson & Co. served as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP was legal counsel to Alerus during the transition. Raymond James & Associates, Inc., served as financial advisor, and Spierer, Woodward, Corbalis & Goldberg was legal counsel to MPHX.