Alerus Financial Acquires SMB-Focused Metro Phoenix Bank

Alerus Financial announced Friday (July 1) that it has completed its acquisition of MPB BHC, the bank holding company of Metro Phoenix Bank.

Metro Phoenix Bank was founded in 2007 and is the largest Phoenix-based full-service bank, according to the joint press release. The community bank has had a particular focus on small- to medium-sized businesses (SMBs) and real estate professionals, and Alerus will continue to focus on SMB lending moving forward.

According to the release, Metro Phoenix had roughly $453 million in total assets, $280 million in total loans and $402 million in total deposits as of March 31, 2022.

The Phoenix Bank deal represents Alerus’s largest acquisition since 2000, according to the company. Alerus began trading on the Nasdaq in 2019, and the Phoenix purchase is the company’s first all-stock deal.

Alerus said in the announcement that it has been operating in Arizona since 2009 and “added Metro Phoenix Bank as part of its long-term plan to continually expand its four business segments — banking, retirement and benefits services, wealth management, and mortgage.”

Metro Phoenix Bank accounts will be transited to Alerus during the third quarter of 2022, and Metro Phoenix CEO Steve Haggard will join Alerus as president of the Arizona market, according to the release.

Haggard said that the two banking companies share similar philosophies and “Alerus stood out as an acquirer of choice for the benefit of our clients, our employees, and our shareholders.”

“Alerus provides the broader product offerings and resources our clients desire, along with an existing market presence and a long-term commitment to the area,” Haggard added.

Organizations have changed how they lend to SMBs, with the pandemic-driven digital shift accelerating the need for faster funding. In a recent interview with PYMNTS, Anthony Ferraro, vice president and head of platform solutions at Amount Small Business, said a digital delivery model “is essential at this point for folks who are serving small businesses.”

Read more: For SMB Lenders, Tech Advances Make ‘Going Digital’ Faster, Less Risky