Alerus Financial (ALRS) in Grand Forks, N.D., has acquired Private Bancorp. in Minneapolis for $15.9 million in cash and other considerations.

The $128 million-asset Private Bancorp. used the proceeds to repurchase $10.3 million in Troubled Asset Relief Program preferred shares from the U.S. Treasury Department, and to retire $2.3 million in debt. Private Bancorp. received its Tarp investment on Feb. 27, 2009, meaning the company had passed the five-year mark when its Tarp dividend payment rose to 9% from 5%.

The $1.5 billion-asset Alerus agreed to make additional cash payments to Private Bancorp., contingent on the "performance of certain specifically identified assets," the companies said in a joint release. The acquisition closed on June 25 when the companies received approval from the Minnesota Department of Commerce.

Private Bancorp. maintained one branch of its Private Bank Minnesota unit in downtown Minneapolis, giving Alerus a total of four offices in the Minneapolis-St. Paul market.

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