Alerus Financial acquires Prosperan Bank deposits and loans

Alerus Financial has acquired the deposits and loans of Prosperan Bank

headquartered in Oakdale, MN.

It is because of our home base in the Red

River Valley market that we are able to continue to remain a sound

institution and pursue long-term growth opportunities like this. It is

Alerus' second acquisition of a failed bank this year in the Twin Cities;

additionally, Alerus has also acquired two other institutions this year.

This acquisition is significant to Alerus' balance sheet because it will

now bring total banking assets to over $1 billion.

See the full press release below. Information regarding FDIC press release

is available by clicking here.

If you'd like to visit our CEO-Randy Newman, or myself about any questions,

please feel free to contact me by cell phone at 218-791-6818. I will

assist with any questions and coordinate an interview with Randy.

Thanks,

Missy Keney

ALERUS FINANCIAL, N.A. ANNOUNCES

ACQUISITION OF PROSPERAN BANK

Minneapolis, MN (November 6, 2009) – Alerus Financial, N.A., a diversified

financial services company based in Grand Forks, ND, announces the

acquisition of the Twin Cities-based loans and deposits of Prosperan Bank,

headquartered in Oakdale, MN. Alerus successfully bid a whole bank with

loss share transaction for Prosperan, which had been placed under the

control of the Federal Deposit Insurance Corporation (FDIC). Alerus was

approved to bid for the whole bank by its principal regulator, the U.S.

Office of Comptroller of the Currency. The loans and other real estate

owned by Prosperan Bank and purchased by Alerus Financial are covered by a

loss share agreement between the FDIC and Alerus Financial, which provides

protection against losses to Alerus Financial. Alerus will operate

Prosperan’s three former branches in Oakdale, Maplewood, and Minnetonka.

Prosperan was closed today by the Minnesota Department of Commerce,

which appointed the FDIC as Receiver. All three branches will re-open

under normal business hours as Alerus Financial, N.A. under the leadership

of David Latta, Executive Vice President, and David ‘Chip’ Norris, Twin

Cities Market President. The Oakdale and Maplewood branches will re-open

on Saturday, November 7, 2009 while the Minnetonka branch will re-open on

Monday, November 9, 2009.

Depositors of Prosperan will automatically become depositors of

Alerus Financial and their deposits will continue to be insured by the FDIC

without interruption up to $250,000 until December 31, 2013. There is no

need for customers to change their banking relationship to retain their

deposit insurance coverage. All Prosperan lending and deposit customers

can continue to bank as usual while Alerus Financial fully integrates

Prosperan’s operations. Customers should continue using the branch

locations on Helena Street North in Oakdale, White Bear Avenue in

Maplewood, and Carlson Parkway in Minnetonka; customers should also know

that their existing ATM or debit card and checks will continue to work and

process as normal. Loan customers should continue to make their payments

as usual.

“We welcome the customers of Prosperan,” said David Latta. “Since

1933, we’ve been working in the best interest of individuals, families, and

businesses. Alerus offers a broad array of banking and wealth management

products, cutting edge technology, knowledgeable staff, and a

customer-focused philosophy. There will be no interruption of banking

services and Prosperan customers can be confident their deposits are secure

and accessible.”

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. Today, Alerus employs more than 150

people in the Twin Cities marketplace. Alerus most recently acquired the

deposits from the failed BankFirst in Minneapolis, MN this past July.

This acquisition aligns with Alerus’ franchise growth strategy to

build out a full-service community bank and wealth management company in

the Twin Cities market. Alerus is also pursuing this strategy in Arizona.

Alerus Financial recently entered the Phoenix, AZ market by acquiring a

branch of Meridian Bank and establishing a loan production office in early

June.

Alerus Financial is an independent, multibillion-dollar financial

services company now listing total bank assets of $1.09 billion, with

another $7 billion in customer assets under management and $350 million in

brokerage assets. It is one of the largest and oldest independent

financial services organizations in the upper Midwest. Alerus celebrated

75 years of service in 2008. For more information, visit

www.alerusfinancial.com.

Customers who have questions about the transaction can call the

FDIC toll-free at 1-800-405-6318. The phone number will be operational

from 8:00 a.m. to 8:00 p.m., CST. Additional information

including the FDIC press release is also available at the FDIC’s web site

at http://www.fdic.gov/bank/individual/failed/prosperan.html.

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