Alerus Financial Corp. has completed a private placement of $50 million in aggregate principal amount of 5.75% fixed-to-floating rate subordinated notes. The notes are non-callable for five years, except in certain limited circumstances, and have a stated maturity of December 30, 2025.

They will bear interest at a fixed rate of 5.75% until December 30, 2020, and thereafter will bear interest, until maturity or early redemption, at a variable rate that will reset quarterly to a level equal to the then current three-month London interbank offered rate (LIBOR) plus 412 basis points.