Alerus Financial Foreclosures and the 2026 Jump in Bank-Owned Homes
Alerus held $6.0 million in foreclosed homes on June 30, 2026, up from nothing three months earlier, which ranks the Grand Forks, North Dakota bank 33rd of 805 US banks. Alerus says the jump came mainly from one house and one apartment complex it took over, and it has no public list of property for sale.
All 805 banks are ranked in the bank REO directory. Alerus’s figures come from its Call Report data on FDIC BankFind, filed within 30 days of each quarter under the FDIC’s Call Report filing notice (FIL-10-2026).
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Key Facts
Alerus Financial is a $5.3 billion bank with 26 offices in 5 states, most of them in Minnesota and North Dakota, and it also runs large wealth and retirement businesses. The branch counts come from the FDIC’s list of Alerus offices by state, the headquarters from its FDIC institution record, and the merger dates from its FDIC merger history.
| Field | Alerus |
|---|---|
| Legal name | Alerus Financial, National Association |
| FDIC certificate | 3931 |
| Headquarters | Grand Forks, North Dakota |
| Residential ORE (foreclosed 1-4 family homes), June 30, 2026 | $6.0 million, up 1,555.6% from $360,000 a year earlier and up from $0 on March 31, 2026 |
| Total ORE and residential share | $9.5 million. Homes are 62.6% and nonresidential property is $3.6 million |
| Rank by residential ORE | #33 of 805 banks reporting foreclosed homes (Q2 2026) |
| Total assets | $5.3 billion (June 30, 2026) |
| Where its REO is marketed | No REO listing page on alerus.com (checked October 10, 2026). Homes are listed through local agents |
| REO asset manager | None named publicly |
| History note | Home Federal Savings Bank merged in on October 9, 2024, and Metro Phoenix Bank on September 16, 2022 |
| States with branches | 26 offices in 5 states: Minnesota (15), North Dakota (7), Arizona (2), Iowa (1), Wisconsin (1) |
| How to make an offer | Through your agent to the listing agent, the usual route for bank-owned homes |
| Agent or vendor sign-up | No public sign-up route |
Where Are Alerus’s Foreclosed Homes Sold?
Alerus sells its foreclosed property through regular listings, because its website has no properties-for-sale or other real estate owned (OREO) page.
The Alerus home page covers banking, wealth management, and retirement and benefits services, with home loans under its personal borrowing menu, but nothing on bank-owned property. A house a bank owns after foreclosure is called real estate owned (REO), and without an REO page it is normally listed by a local agent on the multiple listing service (MLS).
What makes Alerus different is how little it has. Its second-quarter 2026 earnings release says “OREO and repossessed assets were $9.6 million at June 30, 2026,” up from $0.3 million at the end of 2025, mainly because of “the transfer of one 1-4 family property and one apartment complex to OREO.” So the $6.0 million of homes is probably one expensive house, not a stream of ordinary foreclosures. If you are hunting for it, search Minnesota, North Dakota and Arizona listings, where Alerus has most of its offices, for a bank-owned home with Alerus Financial as the seller, and have your agent send the offer to the listing agent.
Who Handles Alerus’s Foreclosed Homes?
Alerus does not name an REO asset manager, the specialist company some lenders use to manage and resell repossessed property, or a broker sign-up route. The house in its June figures came onto Alerus’s own books, so Alerus is the seller there. For other Alerus-made mortgages, the seller after a foreclosure follows the loan:
- Mortgages Alerus kept are sold by Alerus through a listing agent.
- Mortgages sold to Fannie Mae or Freddie Mac are sold through Fannie Mae’s REO vendors or Freddie Mac HomeSteps.
- FHA mortgages lead to the HUD Home Store, and VA mortgages to Vendor Resource Management, the VA contractor in Circular 26-17-16.
How Have Alerus’s Foreclosed Homes Changed Over the Last Year?
Alerus held no foreclosed homes from September 2025 through March 2026, then reported $6.0 million of them in June 2026 after moving one house into OREO.
| Quarter End | Residential ORE | Total ORE | Homes as % of ORE | Total Assets |
|---|---|---|---|---|
| June 30, 2025 | $360,000 | $531,000 | 67.8% | $5.3 billion |
| September 30, 2025 | $0 | $171,000 | 0.0% | $5.3 billion |
| December 31, 2025 | $0 | $297,000 | 0.0% | $5.2 billion |
| March 31, 2026 | $0 | $126,000 | 0.0% | $5.3 billion |
| June 30, 2026 | $6.0 million | $9.5 million | 62.6% | $5.3 billion |
The figures are other real estate owned (ORE), the value of property the bank held after foreclosure on each date. From September 2025 to March 2026 Alerus held less than $300,000 of foreclosed property in total, so there was almost nothing to buy. The June quarter added $6.0 million of homes and $3.4 million of nonresidential property while assets stayed at $5.3 billion, so the jump did not come from buying another bank.
Foreclosed homes now equal 0.113% of Alerus’s assets, or a little over $1 for every $1,000. Because one property makes up most of that, the figure could fall back close to zero once it sells.
FAQ
How Many Foreclosed Homes Does Alerus Own?
Alerus has not published a count, and the FDIC reports dollars, not homes. Alerus held $6.0 million of foreclosed homes on June 30, 2026, and said the quarter’s increase came mainly from one 1-4 family property and one apartment complex.
Who Handles Alerus’s Foreclosed Homes?
Alerus does not name an REO asset manager or broker network. Homes from loans owned by Fannie Mae, Freddie Mac, FHA or VA are sold through those agencies’ programs instead of by the bank.
Does Alerus List Bank-Owned Homes for Sale?
No, Alerus has no REO listing page on its website. Its foreclosed property is sold through regular listings.
Is Home Federal Savings Bank Part of Alerus?
Yes, Home Federal Savings Bank merged into Alerus Financial, N.A. on October 9, 2024. Property Home Federal held passed to Alerus at that point.
Sources
- FDIC BankFind Suite, Call Report financial data, Cert 3931. FDIC. Data as of June 30, 2026. https://banks.data.fdic.gov/bankfind-suite/bankfind/details/3931
- FDIC BankFind API, office locations by state, Cert 3931. FDIC. Pulled October 10, 2026. https://api.fdic.gov/banks/locations?filters=CERT:3931&agg_by=STALP&agg_limit=60&limit=0
- FIL-10-2026, Consolidated Reports of Condition and Income for First Quarter 2026 (filing deadlines). FDIC. https://fdic.gov/news/financial-institution-letters/2026/consolidated-reports-condition-and-income-first-quarter
- FDIC BankFind API, institution record, Cert 3931. FDIC. https://api.fdic.gov/banks/institutions?filters=CERT:3931&fields=NAME,CITY,STALP,ESTYMD
- FDIC BankFind API, structure change history, Cert 3931. FDIC. https://api.fdic.gov/banks/history?filters=ACQ_CERT:3931&limit=20&sort_by=EFFDATE&sort_order=DESC
- Alerus Financial Corporation Reports Second Quarter 2026 Net Income of $20.9 Million. Alerus Financial Corporation. https://investors.alerus.com/news-releases/news-release-details/alerus-financial-corporation-reports-second-quarter-2026-net
- Alerus home page (site navigation and footer). Alerus. https://www.alerus.com/
- Circular 26-17-16, Real Estate Owned and Portfolio Services Contract. U.S. Department of Veterans Affairs. https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_17_16.pdf
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