Alerus Financial in Grand Forks, N.D., has agreed to buy Beacon Bank in Shorewood, Minn.
The $1.6 billion-asset Alerus did not disclose the financial terms of its agreement with the $352 million-asset Beacon. They expect the deal to close in the first quarter.
The acquisition would be Alerus' first since it bought Private Bank Minnesota in Minneapolis in June 2014. The Beacon deal would boost Alerus' total assets in Minnesota to about $771 million.
Beacon, which was established in 1906, operates three branches in suburban Minneapolis and two branches in Duluth, Minn.