Filed by Alerus Financial
Corporation
(Commission File No.: 001-39036)
Pursuant to Rule 425
of the Securities Act of 1933
and deemed filed pursuant
to Rule 14a-12
of the Securities Exchange
Act of 1934
Subject Company: HMNF
(Commission File No.: 0-24100)
Date: August 5,
2024
The following material was posted to the
intranet site available to Alerus Financial Corporation employees on August 5, 2024.
Special Note Concerning Forward-Looking Statements
This message contains “forward-looking
statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking
statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to
the anticipated future performance of Alerus Financial Corporation (“Alerus”) and HMN Financial Corporation, Inc. (“HMNF”)
and certain plans, expectations, goals, projections and benefits relating to the merger of HMN with and into Alerus (the “Merger”),
all of which are subject to numerous assumptions, risks and uncertainties. These statements are often, but not always, identified by words
such as “may,” “might,” “should,” “could,” “predict,” “potential,”
“believe,” “expect,” “continue,” “will,” “anticipate,” “seek,”
“estimate,” “intend,” “plan,” “projection,” “would,” “annualized,”
“target” and “outlook,” or the negative version of those words or other comparable words of a future or forward-looking
nature. Examples of forward-looking statements include, among others, statements Alerus makes regarding the ability of Alerus and HMNF
to complete the transactions contemplated by the agreement and plan of merger (the “Merger Agreement”), including the parties’
ability to satisfy the conditions to the consummation of the Merger, statements about the expected timing for completing the Merger, the
potential effects of the proposed Merger on both Alerus and HMNF, and the possibility of any termination of the Merger Agreement, and
any potential downward adjustment in the exchange ratio.
Forward-looking statements
are not historical facts but instead express only management’s beliefs regarding future results or events, many of which, by their
nature, are inherently uncertain and outside of management’s control. It is possible that actual results and outcomes may differ,
possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. In addition to factors disclosed
in reports filed by Alerus and HMNF with the SEC, risks and uncertainties for Alerus, HMNF and the combined company that may cause actual
results or outcomes to differ materially from those anticipated include, but are not limited to: (1) the possibility that any of
the anticipated benefits of the proposed Merger will not be realized or will not be realized within the expected time period; (2) the
risk that integration of HMNF’s operations with those of Alerus will be materially delayed or will be more costly or difficult than
expected; (3) the parties’ inability to meet expectations regarding the timing of the proposed Merger; (4) changes to
tax legislation and their potential effects on the accounting for the Merger; (5) the inability to complete the proposed Merger due
to the failure of the Alerus’ or HMNF’s stockholders to adopt the Merger Agreement, or the failure of Alerus’ stockholders
to approve the issuance of Alerus’ common stock in connection with the Merger; (6) the failure to satisfy other conditions
to completion of the proposed Merger, including receipt of required regulatory and other approvals; (7) the failure of the proposed
Merger to close for any other reason; (8) diversion of management’s attention from ongoing business operations and opportunities
due to the proposed Merger; (9) the challenges of integrating and retaining key employees; (10) the effect of the announcement
of the proposed Merger on Alerus’, HMNF’s or the combined company’s respective customer and employee relationships and
operating results; (11) the possibility that the proposed Merger may be more expensive to complete than anticipated, including as a result
of unexpected factors or events; (12) the amount of HMNF’s stockholders’ equity as of the closing date of the merger and any
potential downward adjustment in the exchange ratio; (13) the dilution caused by Alerus’ issuance of additional shares of Alerus’
common stock in connection with the Merger; and (14) changes in the global economy and financial market conditions and the business, results
of operations and financial condition of Alerus, HMNF and the combined company. Please refer to each of Alerus’ and HMNF’s
Annual Report on Form 10-K for the year ended December 31, 2023, as well as both parties’ other filings with the SEC,
for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the
forward-looking statements.
Any forward-looking statement
included in this report is based only on information currently available to management and speaks only as of the date on which it is made.
Neither Alerus nor HMNF undertakes any obligation to publicly update any forward-looking statement, whether written or oral, that may
be made from time to time, whether as a result of new information, future developments or otherwise.
Additional Information and Where to Find It
Alerus has filed a Registration
Statement on Form S-4 (Registration Statement No. 333-280815) with the SEC on July 15, 2024, as amended on July 29,
2024, in connection with a proposed transaction between Alerus and HMNF. The registration statement includes a joint proxy statement of
Alerus and HMNF that also constitutes a prospectus of Alerus, which will be sent to the stockholders of Alerus and HMNF after the SEC
declares the registration statement effective. Before making any voting decision, the stockholders of Alerus and HMNF are advised to read
the joint proxy statement/prospectus, because it contains important information about Alerus, HMNF and the proposed transaction. This
document and other documents relating to the Merger filed by Alerus can be obtained free of charge from the SEC’s website at www.sec.gov.
These documents also can be obtained free of charge by accessing Alerus’ website at www.alerus.com under the link “Investors
Relations” and then under “SEC Filings” and HMNF’s website at www.justcallhome.com/HMNFinancial under “SEC
Filings.” Alternatively, these documents can be obtained free of charge from Alerus upon written request to Alerus Financial Corporation,
Corporate Secretary, 401 Demers Avenue, Grand Forks, North Dakota 58201 or by calling (701) 795-3200, or from HMNF upon written request
to HMN Financial, Inc., Corporate Secretary, 1016 Civic Center Drive NW, Rochester, Minnesota 55901 or by calling (507) 535-1200.
The contents of the websites referenced above are not deemed to be incorporated by reference into the registration statement or
the joint proxy statement/prospectus.
Participants in the Solicitation
This report does not constitute
a solicitation of proxy, an offer to purchase or a solicitation of an offer to sell any securities. Alerus, HMNF, and certain of their
directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies
from the stockholders of Alerus and HMNF in connection with the proposed Merger under SEC rules. Information about the directors and executive
officers of Alerus and HMNF is included in the joint proxy statement/prospectus for the proposed transaction filed with the SEC. These
documents may be obtained free of charge in the manner described above under “Additional Information and Where to Find It.”
Security
holders may obtain information regarding the names, affiliations and interests of Alerus’ directors and executive officers in the
definitive proxy statement of Alerus relating to its 2024 Annual Meeting of Stockholders filed with the SEC on March 25, 2024 and
on Alerus’ Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 8, 2024. Security
holders may also obtain information regarding the names, affiliations and interests of HMNF’s directors and executive officers in
the definitive proxy statement of HMNF relating to its 2024 Annual Meeting of Stockholders filed with the SEC on March 21, 2024 and
HMNF’s Annual Report on Form 10-K/A for the year ended December 31, 2023 filed with the SEC on March 19, 2024. To
the extent the holdings of Alerus’ securities by Alerus’ directors and executive officers or the holdings of HMNF securities
by HMNF’s directors and executive officers have changed since the amounts set forth in Alerus’ or HMNF’s respective
proxy statement for its 2024 Annual Meeting of Stockholders, such changes have been or will be reflected on Statements of Change in Ownership
on Form 4 filed with the SEC. These documents can be obtained free of charge in the manner described above under “Additional
Information and Where to Find It.”
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