Form 8-K
8-K — ALERUS FINANCIAL CORP
Accession: 0001437749-26-033799
Filed: 2026-10-28
Period: 2026-10-28
CIK: 0000903419
SIC: 6021 (NATIONAL COMMERCIAL BANKS)
Item: Results of Operations and Financial Condition
Item: Regulation FD Disclosure
Item: Financial Statements and Exhibits
Documents
8-K — alrs20260807_8k.htm (Primary)
EX-99.1 — EXHIBIT 99.1 (ex_1001094.htm)
EX-99.2 — EXHIBIT 99.2 (ex_1001095.htm)
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8-K — FORM 8-K
8-K (Primary)
Filename: alrs20260807_8k.htm · Sequence: 1
alrs20260807_8k.htm
false
0000903419
0000903419
2026-10-28
2026-10-28
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 28, 2026
Alerus Financial Corporation
(Exact Name of Registrant as Specified in Charter)
Delaware
001-39036
45-0375407
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
401 Demers Avenue
Grand Forks, North Dakota 58201
Registrant's telephone number, including area code: (701) 795-3200
N/A
(Former Name or Former Address, if Changed Since Last Report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol
Name of each exchange on which registered
Common Stock, $1.00 par value per share
ALRS
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b–2 of the Securities Exchange Act of 1934 (§ 240.12b–2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On October 28, 2026, Alerus Financial Corporation (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K, and the related Exhibit 99.1, attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference to any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
On October 28, 2026, the Company posted a presentation to the Company’s investor relations website, located at investors.alerus.com. The presentation is also attached hereto as Exhibit 99.2.
The information in Item 7.01 of this Current Report on Form 8-K, and the related Exhibit 99.2, attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by the Company for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference to any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Description
99.1
Press Release of Alerus Financial Corporation, dated October 28, 2026
99.2
Investor Presentation of Alerus Financial Corporation, dated October 28, 2026
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 28, 2026
Alerus Financial Corporation
By:
/s/ Katie A. Lorenson
Name:
Katie A. Lorenson
Title:
President and Chief Executive Officer
EX-99.1 — EXHIBIT 99.1
EX-99.1
Filename: ex_1001094.htm · Sequence: 2
ex_1001094.htm
Exhibit 99.1
Alan A. Villalon, Chief Financial Officer
952.417.3733 (Office)
FOR RELEASE (10.28.2026)
ALERUS FINANCIAL CORPORATION REPORTS
Third QUARTER 2026 NET INCOME OF $19.2 MILLION
MINNEAPOLIS, MN (October 28, 2026) – Alerus Financial Corporation (Nasdaq: ALRS), or the Company, reported net income of $19.2 million for the third quarter of 2026, or $0.76 per diluted common share, compared to net income of $20.9 million, or $0.81 per diluted common share, for the second quarter of 2026, and net income of $16.9 million, or $0.65 per diluted common share, for the third quarter of 2025.
CEO Comments
President and Chief Executive Officer Katie O'Neill Lorenson said, "Our third quarter results demonstrate the continued momentum of the Alerus franchise, with strong revenue growth across our diversified business model and strategic organic growth in our banking franchise. Net interest income increased 8.3% from the prior year, while noninterest income grew 16.7%, reflecting the complementary strength of our banking, retirement and benefit services, and wealth advisory businesses.
That growth was driven by the continued transformation of our banking franchise toward commercial and business banking. Commercial and business lending grew 36.5% from a year ago and now represents 37.1% of our loan portfolio, up from 27.7% a year ago. In the third quarter, total loans increased $150.5 million, or 3.7%, and deposits increased $111.2 million, or 2.7%, with noninterest income representing 42.4% of total revenue.
We also maintained favorable credit quality, with nonperforming assets and criticized loans continuing to improve and net recoveries during the quarter. Our strong capital position and 10.9% year-over-year growth in tangible book value per share give us the capacity to keep investing in organic growth while returning capital to shareholders, with $37.2 million returned through dividends and share repurchases in the first nine months of the year.
Most importantly, I want to thank our team members. Their talent, collaboration, and focus on helping clients achieve their goals turn our strategy into results, and we are confident in our continued ability to create sustainable value for clients, communities, team members, and shareholders."
Third Quarter Highlights
■
Earnings per diluted common share of $0.76.
■
Return on average total assets of 1.45%.
■
Return on average tangible common equity(1) of 17.35%.
■
Noninterest income was $34.4 million in the third quarter of 2026, an increase of 4.3% from the second quarter of 2026. Noninterest income represented 42.4% of total revenue in the third quarter of 2026.
■
Net interest margin (on a tax-equivalent basis)(1) was 3.84% and net interest income was $46.7 million in the third quarter of 2026.
■
Total loans were $4.2 billion as of September 30, 2026, an increase of $150.5 million, or 3.7%, from June 30, 2026.
■
Total deposits were $4.3 billion as of September 30, 2026, an increase of $111.2 million, or 2.7%, from June 30, 2026.
■
Nonperforming assets were $16.4 million as of September 30, 2026, a decrease of $0.7 million, or 4.3%, from $17.1 million as of June 30, 2026.
■
Net recoveries to average loans was 0.10%.
■
Repurchased $8.2 million of the Company's outstanding common stock at an average per share price of $32.75, reducing common shares outstanding by 250,000 shares at quarter-end.
■
In the first nine months of 2026, the Company returned $37.2 million to shareholders in the form of dividends and share repurchases.
■
In the first nine months of 2026, adjusted pre-provision net revenue(1) was $78.7 million, an 18.9% increase over the same time period in the prior year.
■
Total assets under management/administration in the combined retirement and benefit and wealth segments were $50.1 billion, a 2.7% increase from September 30, 2025.
■
Tangible book value per common share(1) was $18.74 as of September 30, 2026, an increase of 10.9% from $16.90 as of September 30, 2025.
■
Tangible common equity to tangible assets ratio(1) was 8.77% as of September 30, 2026, an increase from 8.24% as of September 30, 2025.
(1) Represents a non-GAAP financial measure. See “Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures.”
Selected Financial Data (unaudited)
As of and for the
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
September 30,
(dollars and shares in thousands, except per share data)
2026
2026
2025
2026
2025
Performance Ratios
Return on average total assets
1.45
%
1.60
%
1.27
%
1.61
%
1.28
%
Adjusted return on average total assets (1)
1.37
%
1.58
%
1.28
%
1.58
%
1.27
%
Return on average common equity
13.07
%
14.56
%
12.80
%
14.66
%
13.17
%
Return on average tangible common equity (1)
17.35
%
19.33
%
18.48
%
19.46
%
19.25
%
Adjusted return on average tangible common equity (1)
16.43
%
19.04
%
18.55
%
19.08
%
19.08
%
Noninterest income as a % of revenue
42.37
%
40.85
%
40.56
%
41.32
%
41.09
%
Adjusted noninterest income as a % of revenue (1)
41.24
%
40.36
%
40.58
%
40.78
%
40.54
%
Net interest margin (on a tax-equivalent basis)(1)
3.84
%
3.97
%
3.50
%
3.86
%
3.47
%
Efficiency ratio (1)
63.41
%
62.53
%
65.34
%
63.10
%
64.81
%
Adjusted efficiency ratio (1)
64.44
%
62.76
%
65.22
%
63.47
%
64.78
%
Net charge-offs (recoveries) to average loans (1)
(0.10
)%
0.26
%
(0.17
)%
0.28
%
0.08
%
Dividend payout ratio
28.95
%
27.16
%
32.31
%
26.42
%
31.79
%
Per Common Share
Earnings per common share - basic
$
0.77
$
0.82
$
0.66
$
2.49
$
1.97
Earnings per common share - diluted
$
0.76
$
0.81
$
0.65
$
2.46
$
1.95
Adjusted earnings per common share - diluted (1)
$
0.71
$
0.80
$
0.66
$
2.41
$
1.93
Dividends declared per common share
$
0.22
$
0.22
$
0.21
$
0.65
$
0.62
Book value per common share
$
23.31
$
23.34
$
21.68
Tangible book value per common share (1)
$
18.74
$
18.73
$
16.90
Average common shares outstanding - basic
24,851
25,081
25,395
25,102
25,374
Average common shares outstanding - diluted
25,161
25,395
25,713
25,410
25,693
Other Data
Retirement and benefit services assets under administration/management
$
44,944,011
$
45,163,767
$
44,005,277
Wealth advisory services assets under administration/management
$
5,163,688
$
5,195,511
$
4,812,250
Mortgage originations
$
126,728
$
113,450
$
142,768
$
334,612
$
347,995
(1) Represents a non-GAAP financial measure. See “Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures.”
Results of Operations
Net Interest Income
Net interest income for the third quarter of 2026 was $46.7 million, a $1.0 million, or 2.1%, decrease from the second quarter of 2026. Interest income decreased $0.4 million, or 0.6%, primarily due to lower interest income on loans from a one-time $1.6 million interest income recovery on a nonaccrual loan resolution in the second quarter and less purchase accounting accretion, partially offset by higher loan and investment yields. Interest expense increased $0.6 million, or 2.4%, from the second quarter of 2026, as average rates paid on deposits and borrowings increased slightly, mainly driven by the recent increase by the Federal Reserve in the federal funds benchmark rate.
Net interest income increased $3.6 million, or 8.3%, from $43.1 million for the third quarter of 2025. Interest income decreased $0.5 million, or 0.6%, from the third quarter of 2025, primarily driven by less purchase accounting accretion and lower average interest-bearing cash balances, partially offset by higher interest income on investment securities following the strategic balance sheet repositioning in the fourth quarter of 2025. Interest expense decreased $4.0 million, or 14.7%, from the third quarter of 2025, as average rates paid on deposits and borrowings declined primarily driven by Federal Reserve rate cuts in the second half of 2025.
Net interest margin (on a tax-equivalent basis)(1) was 3.84% for the third quarter of 2026, a 13 basis point decrease from 3.97% for the second quarter of 2026, and a 34 basis point increase from 3.50% for the third quarter of 2025. The quarter over quarter decrease was mainly attributable to a one-time $1.6 million interest income recovery on a nonaccrual loan resolution in the second quarter and less purchase accounting accretion, partially offset by higher loan and investment yields. The increase from the third quarter of 2025 was primarily driven by lower cost of funds and higher yields on investment securities, offset by less purchase accounting accretion.
2
Noninterest Income
Noninterest income for the third quarter of 2026 was $34.4 million, a $1.4 million, or 4.3%, increase from the second quarter of 2026. This increase was driven by increases in other noninterest income, retirement and benefit services revenue, wealth advisory services revenue, and mortgage banking revenue. Other noninterest income increased $0.5 million, or 15.1%, from the second quarter of 2026, primarily driven by a gain on the sale of a property in the Fargo, North Dakota market, partially offset by a loss on a property transferred to held for sale in the Rochester, Minnesota market. Retirement and benefit services revenue increased $0.3 million, or 1.8%, compared to the second quarter of 2026, primarily driven by an increase in recurring annual revenue. Wealth advisory services revenue increased $0.3 million, or 3.8%, from the second quarter of 2026, primarily driven by an increase in transaction-based fees and a slight increase in asset-based revenues. Mortgage banking revenue increased $0.1 million, or 4.2%, from the second quarter of 2026, primarily driven by higher mortgage originations and gain on sale margins.
Noninterest income for the third quarter of 2026 increased by $4.9 million, or 16.7%, from the third quarter of 2025. This increase was driven by increases in other noninterest income, retirement and benefit services revenue, wealth advisory services revenue, and service charges on deposit accounts. Other noninterest income increased $1.9 million, or 85.3%, compared to the third quarter of 2025, primarily driven by a gain on the sale of a property in the Fargo, North Dakota market, partially offset by a loss on a property transferred to held for sale in the Rochester, Minnesota market. Retirement and benefit services revenue increased $1.2 million, or 7.1%, compared to the third quarter of 2025, primarily driven by recurring annual income. Wealth advisory services revenue increased $1.4 million, or 22.0%, from the third quarter of 2025, driven by an increase in both asset-based fees and transaction-based fees. Wealth advisory services assets under administration/management increased $351.4 million, or 7.3% during the same period. Service charges on deposit accounts increased $0.5 million, or 73.7%, compared to the third quarter of 2025, primarily due to a reclassification of fees from other noninterest income to service charges on deposit accounts revenue in the first quarter of 2026.
Noninterest Expense
Noninterest expense for the third quarter of 2026 was $53.9 million, a $1.0 million, or 1.9%, increase from the second quarter of 2026. The increase was primarily due to increases in employee taxes and benefits expense, along with marketing and business development expense, partially offset by a decrease in other noninterest expense. Employee taxes and benefits expense increased $0.6 million, or 9.2%, due to self-funded group insurance costs, and marketing and business development expense increased $0.4 million, or 41.2%, due to seasonal advertising campaigns. Other noninterest expense decreased $0.2 million, or 8.0%, from the second quarter of 2026, due to a decrease in holding costs related to other real estate owned balances, miscellaneous operational losses, as well as a decrease in corporate insurance costs.
Noninterest expense for the third quarter of 2026 increased $3.3 million, or 6.6%, from $50.5 million in the third quarter of 2025, primarily due to increases in employee taxes and benefits, compensation expense, and professional fees and assessments. Employee taxes and benefits increased $1.3 million, or 21.1%, due to self-funded group insurance costs. Compensation expense increased $1.1 million, or 4.5%, from the third quarter of 2025, primarily due to annual merit increases, as well as an increase in employees. Professional fees and assessments increased $1.1 million, or 41.9%, from the third quarter of 2025, primarily due to the reclassification of consulting services and other third-party vendor expenses from business services, software, and technology expense to professional fees and assessments.
(1) Represents a non-GAAP financial measure. See “Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures.”
3
Financial Condition
Total assets were $5.4 billion as of September 30, 2026, an increase of $173.0 million, or 3.3%, from December 31, 2025. The increase was primarily due to a $136.7 million increase in loans held for investment, a $35.5 million increase in available-for-sale investment securities, and an $18.0 million increase in other assets, partially offset by a $21.5 million decrease in held-to-maturity investment securities.
Loans Held for Investment
Total loans held for investment were $4.2 billion as of September 30, 2026, an increase of $136.7 million, or 3.4%, from December 31, 2025. The increase was primarily driven by a $188.8 million increase in commercial loans, partially offset by a $52.0 million decrease in consumer loans.
The following table presents the composition of our loans held for investment portfolio as of the dates indicated:
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
Commercial
Commercial and business lending
Commercial and industrial
$
861,135
$
759,959
$
747,447
$
736,833
$
702,135
Commercial real estate − Owner occupied
690,988
622,241
444,276
427,260
435,320
Total commercial and business lending
1,552,123
1,382,200
1,191,723
1,164,093
1,137,455
Investor commercial real estate
Construction, land and development
87,615
79,850
146,897
246,238
349,768
Multifamily
332,535
361,875
392,097
383,505
374,761
Non-owner occupied
905,170
893,367
976,339
875,862
865,785
Total investor commercial real estate
1,325,320
1,335,092
1,515,333
1,505,605
1,590,314
Agricultural
Land
53,725
54,202
54,028
64,799
65,900
Production
54,597
53,367
50,983
62,500
63,051
Total agricultural
108,322
107,569
105,011
127,299
128,951
Total commercial
2,985,765
2,824,861
2,812,067
2,796,997
2,856,720
Consumer
Residential real estate
First lien
809,835
828,936
851,551
874,737
894,402
Construction
32,620
31,202
32,872
33,703
34,124
HELOC
280,771
273,124
262,131
260,883
234,681
Junior lien
31,566
31,941
35,783
36,844
40,434
Total residential real estate
1,154,792
1,165,203
1,182,337
1,206,167
1,203,641
Other consumer
44,203
44,180
40,340
44,858
41,715
Total consumer
1,198,995
1,209,383
1,222,677
1,251,025
1,245,356
Total loans
$
4,184,760
$
4,034,244
$
4,034,744
$
4,048,022
$
4,102,076
4
Deposits
Total deposits were $4.3 billion as of September 30, 2026, an increase of $111.2 million, or 2.7%, from December 31, 2025. Noninterest-bearing deposits increased $5.6 million and interest-bearing deposits increased $105.6 million from December 31, 2025.
The following table presents the composition of the Company’s deposit portfolio as of the dates indicated:
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
Noninterest-bearing demand
$
813,493
$
759,640
$
857,625
$
807,896
$
776,791
Interest-bearing
Interest-bearing demand
1,430,016
1,429,951
1,449,156
1,296,315
1,256,687
Savings accounts
169,556
173,255
178,347
173,759
174,113
Money market savings
1,307,677
1,252,823
1,291,794
1,337,491
1,460,006
Time deposits
582,435
576,228
570,960
576,542
745,056
Total interest-bearing
3,489,684
3,432,257
3,490,257
3,384,107
3,635,862
Total deposits
$
4,303,177
$
4,191,897
$
4,347,882
$
4,192,003
$
4,412,653
Asset Quality
Total nonperforming assets were $16.4 million as of September 30, 2026, a decrease of $53.0 million, or 76.4%, from December 31, 2025. As of September 30, 2026, the allowance for credit losses on loans was $51.4 million, or 1.23% of total loans, compared to $61.9 million, or 1.53% of total loans, as of December 31, 2025.
The following table presents selected asset quality data as of and for the periods indicated:
As of and for the three months ended
September 30,
June 30,
March 31,
December 31,
September 30,
(dollars in thousands)
2026
2026
2026
2025
2025
Nonaccrual loans
$
6,909
$
7,105
$
53,881
$
69,065
$
59,644
Accruing loans 90+ days past due
21
436
—
—
—
Total nonperforming loans
6,930
7,541
53,881
69,065
59,644
OREO and repossessed assets
9,449
9,571
126
308
467
Total nonperforming assets
$
16,379
$
17,112
$
54,007
$
69,373
$
60,111
Criticized loans
81,830
83,090
132,459
149,162
191,331
Net charge-offs (recoveries)
(1,018
)
2,575
7,027
(311
)
(1,715
)
Net charge-offs (recoveries) to average loans (1)
(0.10
)%
0.26
%
0.71
%
(0.03
)%
(0.17
)%
Nonperforming loans to total loans
0.17
%
0.19
%
1.34
%
1.71
%
1.45
%
Nonperforming assets to total assets
0.30
%
0.32
%
1.02
%
1.33
%
1.13
%
Criticized loans to total loans
1.96
%
2.06
%
3.28
%
3.68
%
4.66
%
Allowance for credit losses on loans to total loans
1.23
%
1.20
%
1.25
%
1.53
%
1.51
%
Allowance for credit losses on loans to nonperforming loans
742.40
%
641.31
%
93.73
%
89.65
%
104.16
%
For the third quarter of 2026, the Company had net recoveries of $1.0 million, compared to net charge-offs of $2.6 million for the second quarter of 2026 and net recoveries of $1.7 million for the third quarter of 2025. The quarter over quarter decrease in net charge-offs (recoveries) was primarily due to a $1.1 million recovery related to one long-term commercial and industrial client relationship on nonaccrual which was charged-off in the second quarter of 2026. As of September 30, 2026, the relationship had a remaining reserve of $0.9 million, which represented approximately 60.6% of the book balance as of that date. Management does not believe the charge-offs resulting from this relationship are indicative of a broader credit quality trend in the Company's loan portfolio.
The decrease in the allowance for credit losses on loans to total loans from December 31, 2025 to September 30, 2026 was primarily the result of problem loan resolution.
The Company recorded a provision for credit losses of $2.2 million for the third quarter of 2026, compared to a provision of $0.5 million for the second quarter of 2026, and no provision for credit losses for the third quarter of 2025.
OREO and repossessed assets were $9.4 million at September 30, 2026, compared to $0.3 million as of December 31, 2025. The increase was primarily driven by the transfer of one 1-4 family property and one apartment complex to OREO in the second quarter of 2026.
The unearned fair value adjustments on acquired loan portfolios were $33.4 million as of September 30, 2026, $43.8 million as of December 31, 2025, and $47.3 million as of September 30, 2025.
5
Capital
Total stockholders’ equity was $576.9 million as of September 30, 2026, an increase of $11.9 million from December 31, 2025. The increase was primarily driven by an increase in retained earnings of $46.8 million, partially offset by a decrease in additional paid-in capital of $18.9 million and an increase in accumulated other comprehensive loss of $15.3 million due to recent increases in interest rates. Tangible book value per common share(1) increased to $18.74 as of September 30, 2026, from $17.55 as of December 31, 2025. Tangible common equity to tangible assets(1) increased to 8.77% as of September 30, 2026, from 8.72% as of December 31, 2025. Common equity tier 1 capital to risk weighted assets increased to 10.52% as of September 30, 2026, from 10.28% as of December 31, 2025.
During the third quarter of 2026, the Company repurchased approximately $8.2 million of its outstanding common stock at an average per share price of $32.75, which reduced common shares outstanding by 250,000 at quarter-end.
The following table presents our capital ratios as of the dates indicated:
September 30,
December 31,
September 30,
2026
2025
2025
Capital Ratios(1)
Alerus Financial Corporation Consolidated
Common equity tier 1 capital to risk weighted assets
10.52
%
10.28
%
10.84
%
Tier 1 capital to risk weighted assets
10.72
%
10.48
%
11.05
%
Total capital to risk weighted assets
13.01
%
12.87
%
13.41
%
Tier 1 capital to average assets
9.58
%
8.86
%
9.49
%
Tangible common equity / tangible assets (2)
8.77
%
8.72
%
8.24
%
Alerus Financial, N.A.
Common equity tier 1 capital to risk weighted assets
10.57
%
10.41
%
11.00
%
Tier 1 capital to risk weighted assets
10.57
%
10.41
%
11.00
%
Total capital to risk weighted assets
11.78
%
11.66
%
12.25
%
Tier 1 capital to average assets
9.35
%
8.62
%
9.31
%
(1)
Capital ratios for the current quarter are to be considered preliminary until the Call Report for Alerus Financial, N.A. is filed.
(2)
Represents a non-GAAP financial measure. See “Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures.”
Conference Call
The Company will host a conference call at 11:00 a.m. Central Time on Thursday, October 29, 2026, to discuss its financial results. Attendees are encouraged to register ahead of time for the call at investors.alerus.com. A recording of the call and transcript will be available on the Company’s investor relations website at investors.alerus.com following the call.
About Alerus Financial Corporation
Alerus Financial Corporation (Nasdaq: ALRS) is a commercial wealth advisory services bank and national retirement and benefit services provider with corporate offices in Grand Forks, North Dakota, and the Minneapolis-St. Paul, Minnesota metropolitan area. Through its subsidiary, Alerus Financial, National Association (the “Bank”), Alerus provides diversified and comprehensive financial solutions to business and consumer clients, including banking, wealth advisory services, and retirement and benefit plans and services. Alerus provides clients with a primary point of contact to help fully understand their unique needs and delivery channel preferences. Clients are provided with competitive products, valuable insight, and sound advice supported by digital solutions designed to meet their needs.
Alerus operates 25 banking and commercial wealth offices, with locations in Grand Forks and Fargo, North Dakota; the Minneapolis-St. Paul, Minnesota metropolitan area; Rochester, Minnesota; Southern Minnesota; Marshalltown, Iowa; Pewaukee, Wisconsin; and Tempe and Scottsdale, Arizona. The Alerus Retirement and Benefit business serves advisors, brokers, employers, and plan participants across the United States.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized by U.S. Generally Accepted Accounting Principles, or GAAP. These non-GAAP financial measures include the ratio of tangible common equity to tangible assets, tangible book value per common share, return on average tangible common equity, efficiency ratio, pre-provision net revenue, adjusted noninterest (loss) income, adjusted noninterest expense, adjusted pre-provision net revenue, adjusted efficiency ratio, adjusted net income, adjusted return on average total assets, adjusted return on average tangible common equity, net interest margin (on a tax-equivalent basis), adjusted earnings per common share - diluted, and adjusted net charge-offs to average loans. Management uses these non-GAAP financial measures in its analysis of its performance, and believes financial analysts and investors frequently use these measures, and other similar measures, to evaluate capital adequacy and financial performance. Reconciliations of non-GAAP disclosures used in this press release to the comparable GAAP measures are provided in the accompanying tables. Management, banking regulators, many financial analysts and other investors use these measures in conjunction with more traditional bank capital ratios to compare the capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, which typically stem from the use of the purchase accounting method of accounting for mergers and acquisitions.
These non-GAAP financial measures should not be considered in isolation or as a substitute for total stockholders’ equity, total assets, book value per share, return on average assets, return on average equity, or any other measure calculated in accordance with GAAP. Moreover, the manner in which the Company calculates these non-GAAP financial measures may differ from that of other companies reporting measures with similar names.
6
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Alerus Financial Corporation. These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of those words or other comparable words of a future or forward-looking nature. Examples of forward-looking statements include, among others, statements the Company makes regarding our projected growth, anticipated future financial performance, financial condition, credit quality, management’s long-term performance goals, and the future plans and prospects of Alerus Financial Corporation.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent known and unknown uncertainties, risks, changes in circumstances, and other factors that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, the following: the strength of the local, state, national and international economies and financial markets (including effects of inflationary pressures and future monetary policies of the Federal Reserve and executive orders in response thereto); interest rate risk, including the effects of changes in interest rates, such as the recent increase in the benchmark federal funds rate by the Federal Reserve; effects on the U.S. economy resulting from actions taken by the federal government, including the threat or implementation of tariffs, immigration enforcement, executive orders, and changes in foreign policy; disruptions to the global supply chain, including as a result of domestic or foreign policies; our ability to successfully manage credit risk, including in the commercial real estate portfolio, and maintain an adequate level of allowance for credit losses; business and economic conditions generally and in the financial services industry, nationally and within our market areas, including the level and impact of inflation rates and possible recession; our ability to raise additional capital to implement our business plan; credit risks and risks from concentrations (including by type of borrower, geographic area, collateral, and industry) within our loan portfolio; the concentration of large loans to certain borrowers (including commercial real estate loans); the level of nonperforming assets on our balance sheet; our ability to implement organic and acquisition growth strategies; the commencement, cost, and outcome of litigation and other legal proceedings and regulatory actions against us or to which the Company may become subject, including with respect to pending actions relating to the Company’s previous employee stock ownership program fiduciary services commenced by government and private parties; the impact of economic or market conditions on our fee-based services; our ability to continue to grow our retirement and benefit services business; our ability to continue to originate a sufficient volume of residential mortgages; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; interruptions involving our information technology and telecommunications systems or third-party servicers; potential losses incurred in connection with mortgage loan repurchases; the composition of our executive management team and our ability to attract and retain key personnel; rapid and expensive technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation, or otherwise materially harm our business or customers; increased competition in the financial services industry, including from non-banks such as credit unions, Fintech companies and digital asset service providers; our ability to successfully manage liquidity risk, including our need to access higher cost sources of funds such as fed funds purchased and short-term borrowings; the concentration of large deposits from certain clients, including those who have balances above current Federal Deposit Insurance Corporation insurance limits; the effectiveness of our risk management framework; potential impairment to the goodwill the Company recorded in connection with our past acquisitions, including the acquisitions of Metro Phoenix Bank and HMNF, Inc; the extensive regulatory framework that applies to us; the ability of the Bank to pay dividends to us and our ability to pay dividends to our stockholders; new or revised accounting standards, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission (the “SEC”) or the Public Company Accounting Oversight Board; fluctuations in the values of the securities held in our securities portfolio, including as a result of changes in interest rates; governmental monetary, trade and fiscal policies; risks related to climate change and the negative impact it may have on our customers and their businesses; severe weather and natural disasters, and widespread disease or pandemics; acts of war, military conflicts, or terrorism, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East, and other international military conflicts, or adverse external events and changes in foreign relations that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; any material weaknesses in our internal control over financial reporting; our success at managing and responding to the risks involved in the foregoing items; and any other risks described in the “Risk Factors” sections of the reports filed by Alerus Financial Corporation with the SEC.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
7
Alerus Financial Corporation and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
September 30,
December 31,
2026
2025
Assets
(Unaudited)
Cash and cash equivalents
$
65,756
$
67,192
Investment securities
Trading, at fair value
818
1,758
Available-for-sale, at fair value
549,584
514,095
Held-to-maturity, at amortized cost (with an allowance for credit losses on investments of $111 and $123, respectively)
232,988
254,448
Loans held for sale
19,829
21,934
Loans held for investment
4,184,760
4,048,022
Allowance for credit losses on loans
(51,448
)
(61,915
)
Net loans
4,133,312
3,986,107
Land, premises and equipment, net
39,530
43,253
Operating lease right-of-use assets
31,528
28,761
Accrued interest receivable
21,011
21,742
Bank-owned life insurance
42,147
39,307
Goodwill
85,634
85,634
Other intangible assets
27,448
33,371
Servicing rights
7,416
6,383
Deferred income taxes, net
25,063
23,080
Other assets
121,039
103,019
Total assets
$
5,403,103
$
5,230,084
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing
$
813,493
$
807,896
Interest-bearing
3,489,684
3,384,107
Total deposits
4,303,177
4,192,003
Short-term borrowings
318,400
308,800
Long-term debt
59,267
59,182
Operating lease liabilities
42,232
36,282
Accrued expenses and other liabilities
103,177
68,883
Total liabilities
4,826,253
4,665,150
Stockholders’ equity
Preferred stock, $1 par value, 2,000,000 shares authorized: 0 issued and outstanding
—
—
Common stock, $1 par value, 60,000,000 and 30,000,000 shares authorized: 24,744,269 and 25,406,278 issued and outstanding
24,744
25,406
Additional paid-in capital
252,754
271,609
Retained earnings
316,826
270,075
Accumulated other comprehensive loss
(17,474
)
(2,156
)
Total stockholders’ equity
576,850
564,934
Total liabilities and stockholders’ equity
$
5,403,103
$
5,230,084
8
Alerus Financial Corporation and Subsidiaries
Consolidated Statements of Income
(dollars and shares in thousands, except per share data)
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
September 30,
2026
2026
2025
2026
2025
Interest Income
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Loans, including fees
$
61,455
$
62,214
$
63,875
$
182,290
$
189,222
Investment securities
Taxable
7,525
7,258
5,091
21,888
16,108
Exempt from federal income taxes
156
155
160
468
480
Other
1,056
999
1,518
3,149
3,440
Total interest income
70,192
70,626
70,644
207,795
209,250
Interest Expense
Deposits
19,538
18,938
24,350
57,550
70,643
Short-term borrowings
2,886
2,935
2,506
8,178
9,327
Long-term debt
1,045
1,041
652
2,720
1,955
Total interest expense
23,469
22,914
27,508
68,448
81,925
Net interest income
46,723
47,712
43,136
139,347
127,325
Provision for (recovery of) credit losses
2,199
495
—
(2,188
)
863
Net interest income after provision for (recovery of) credit losses
44,524
47,217
43,136
141,535
126,462
Noninterest Income
Retirement and benefit services
17,664
17,347
16,496
52,418
48,625
Wealth advisory services
8,001
7,705
6,560
22,942
20,827
Mortgage banking
3,328
3,195
3,474
10,057
8,651
Service charges on deposit accounts
1,221
1,106
703
3,259
2,034
Gain on sale of non-mortgage loans
—
—
(35
)
—
2,080
Other
4,136
3,592
2,232
9,464
6,607
Total noninterest income
34,350
32,945
29,430
98,140
88,824
Noninterest Expense
Compensation
26,096
26,155
24,984
76,338
72,288
Employee taxes and benefits
7,377
6,755
6,094
20,772
20,490
Occupancy and equipment expense
3,525
3,493
2,849
10,444
8,315
Business services, software and technology expense
5,457
5,440
6,285
16,736
17,905
Intangible amortization expense
1,974
1,974
2,710
5,923
8,129
Professional fees and assessments
3,796
3,781
2,676
11,377
8,010
Marketing and business development
1,227
869
1,069
2,957
2,821
Supplies and postage
573
540
569
1,719
1,690
Travel
464
357
385
1,181
1,019
Mortgage and lending expenses
707
614
1,025
2,030
2,501
Other
2,672
2,905
1,895
7,664
6,176
Total noninterest expense
53,868
52,883
50,541
157,141
149,344
Income before income tax expense
25,006
27,279
22,025
82,534
65,942
Income tax expense
5,806
6,414
5,101
19,499
15,451
Net income
$
19,200
$
20,865
$
16,924
$
63,035
$
50,491
Per Common Share Data
Earnings per common share
$
0.77
$
0.82
$
0.66
$
2.49
$
1.97
Diluted earnings per common share
$
0.76
$
0.81
$
0.65
$
2.46
$
1.95
Dividends declared per common share
$
0.22
$
0.22
$
0.21
$
0.65
$
0.62
Average common shares outstanding
24,851
25,081
25,395
25,102
25,374
Diluted average common shares outstanding
25,161
25,395
25,713
25,410
25,693
9
Alerus Financial Corporation and Subsidiaries
Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures (unaudited)
(dollars and shares in thousands, except per share data)
September 30,
June 30,
December 31,
September 30,
2026
2026
2025
2025
Tangible Common Equity to Tangible Assets
Total common stockholders’ equity
$
576,850
$
583,143
$
564,934
$
550,688
Less: Goodwill
85,634
85,634
85,634
85,634
Less: Other intangible assets
27,448
29,422
33,371
35,753
Tangible common equity (a)
463,768
468,087
445,929
429,301
Total assets
5,403,103
5,288,718
5,230,084
5,330,573
Less: Goodwill
85,634
85,634
85,634
85,634
Less: Other intangible assets
27,448
29,422
33,371
35,753
Tangible assets (b)
5,290,021
5,173,662
5,111,079
5,209,186
Tangible common equity to tangible assets (a)/(b)
8.77
%
9.05
%
8.72
%
8.24
%
Tangible Book Value Per Common Share
Tangible common equity (a)
463,768
468,087
445,929
429,301
Total common shares issued and outstanding (c)
24,744
24,986
25,406
25,397
Tangible book value per common share (a)/(c)
$
18.74
$
18.73
$
17.55
$
16.90
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
September 30,
2026
2026
2025
2026
2025
Return on Average Tangible Common Equity
Net income
$
19,200
$
20,865
$
16,924
$
63,035
$
50,491
Add: Intangible amortization expense (net of tax) (1)
1,559
1,559
2,141
4,679
6,421
Net income, excluding intangible amortization (d)
20,759
22,424
19,065
67,714
56,912
Average total equity
582,770
574,862
524,459
574,789
512,533
Less: Average goodwill
85,634
85,634
85,634
85,634
85,634
Less: Average other intangible assets (net of tax) (1)
22,447
24,003
29,540
24,026
31,549
Average tangible common equity (e)
474,689
465,225
409,285
465,129
395,350
Return on average tangible common equity (d)/(e)
17.35
%
19.33
%
18.48
%
19.46
%
19.25
%
Efficiency Ratio
Noninterest expense
$
53,868
$
52,883
$
50,541
$
157,141
$
149,344
Less: Intangible amortization expense
1,974
1,974
2,710
5,923
8,129
Noninterest expense excluding intangible amortization (f)
51,894
50,909
47,831
151,218
141,215
Net interest income (v)
46,723
47,712
43,136
139,347
127,325
Noninterest income
34,350
32,945
29,430
98,140
88,824
Tax equivalent adjustment for loans and securities
771
755
638
2,145
1,748
Total tax-equivalent revenue (g)
81,844
81,412
73,204
239,632
217,897
Efficiency ratio (f)/(g)
63.41
%
62.53
%
65.34
%
63.10
%
64.81
%
Pre-Provision Net Revenue
Net interest income (v)
$
46,723
$
47,712
$
43,136
$
139,347
$
127,325
Add: Noninterest income
34,350
32,945
29,430
98,140
88,824
Less: Noninterest expense
53,868
52,883
50,541
157,141
149,344
Pre-provision net revenue
$
27,205
$
27,774
$
22,025
$
80,346
$
66,805
Adjusted Noninterest Income
Noninterest income
$
34,350
$
32,945
$
29,430
$
98,140
$
88,824
Less: Adjusted noninterest income items
Net gain on sale of loans
—
—
(35
)
—
2,080
Net gain (loss) on sale/disposal of premises and equipment
1,554
653
—
2,186
(84
)
Total adjusted noninterest income (loss) items (h)
1,554
653
(35
)
2,186
1,996
Adjusted noninterest income (i)
$
32,796
$
32,292
$
29,465
$
95,954
$
86,828
Adjusted Noninterest Income as a Percentage of Revenue
Adjusted noninterest income (i)
$
32,796
$
32,292
$
29,465
$
95,954
$
86,828
Net interest income (v)
46,723
47,712
43,136
139,347
127,325
Adjusted revenue (w)
$
79,519
$
80,004
$
72,601
$
235,301
$
214,153
Adjusted noninterest income as a percentage of revenue (i)/(w)
41.24
%
40.36
%
40.58
%
40.78
%
40.54
%
Adjusted Noninterest Expense
Noninterest expense
$
53,868
$
52,883
$
50,541
$
157,141
$
149,344
Less: Adjusted noninterest expense items
HMNF merger- and acquisition-related expenses
15
6
(43
)
(13
)
255
Severance and signing bonus expense
144
216
104
526
1,108
Total adjusted noninterest expense items (j)
159
222
61
513
1,363
Adjusted noninterest expense (k)
$
53,709
$
52,661
$
50,480
$
156,628
$
147,981
(1)
Items calculated after-tax utilizing a marginal income tax rate of 21.0%.
10
Alerus Financial Corporation and Subsidiaries
Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures (unaudited)
(dollars and shares in thousands, except per share data)
Three months ended
Nine months ended
September 30,
June 30,
September 30,
September 30,
September 30,
2026
2026
2025
2026
2025
Adjusted Pre-Provision Net Revenue
Net interest income (v)
$
46,723
$
47,712
$
43,136
$
139,347
$
127,325
Add: Adjusted noninterest income (i)
32,796
32,292
29,465
95,954
86,828
Less: Adjusted noninterest expense (k)
53,709
52,661
50,480
156,628
147,981
Adjusted pre-provision net revenue
$
25,810
$
27,343
$
22,121
$
78,673
$
66,172
Adjusted Efficiency Ratio
Adjusted noninterest expense (k)
$
53,709
$
52,661
$
50,480
$
156,628
$
147,981
Less: Intangible amortization expense
1,974
1,974
2,710
5,923
8,129
Adjusted noninterest expense for efficiency ratio (l)
51,735
50,687
47,770
150,705
139,852
Tax-equivalent revenue
Net interest income (v)
46,723
47,712
43,136
139,347
127,325
Add: Adjusted noninterest income (i)
32,796
32,292
29,465
95,954
86,828
Add: Tax equivalent adjustment for loans and securities (1)
771
755
638
2,145
1,748
Total tax-equivalent revenue (m)
80,290
80,759
73,239
237,446
215,901
Adjusted efficiency ratio (l)/(m)
64.44
%
62.76
%
65.22
%
63.47
%
64.78
%
Adjusted Net Income
Net income
$
19,200
$
20,865
$
16,924
$
63,035
$
50,491
Less: Adjusted noninterest (loss) income items (net of tax) (1) (h)
1,228
516
(28
)
1,727
1,577
Add: Adjusted noninterest expense items (net of tax) (1) (j)
126
175
48
405
1,077
Adjusted net income (n)
$
18,098
$
20,524
$
17,000
$
61,713
$
49,991
Adjusted Return on Average Total Assets
Average total assets (o)
$
5,255,954
$
5,226,319
$
5,273,306
$
5,233,732
$
5,282,798
Adjusted return on average total assets (n)/(o)
1.37
%
1.58
%
1.28
%
1.58
%
1.27
%
Adjusted Return on Average Tangible Common Equity
Adjusted net income (n)
$
18,098
$
20,524
$
17,000
$
61,713
$
49,991
Add: Intangible amortization expense (net of tax) (1)
1,559
1,559
2,141
4,679
6,421
Adjusted net income, excluding intangible amortization (p)
19,657
22,083
19,141
66,392
56,412
Average total equity
582,770
574,862
524,459
574,789
512,533
Less: Average goodwill
85,634
85,634
85,634
85,634
85,634
Less: Average other intangible assets (net of tax)
22,447
24,003
29,540
24,026
31,549
Average tangible common equity (q)
474,689
465,225
409,285
465,129
395,350
Adjusted return on average tangible common equity (p)/(q)
16.43
%
19.04
%
18.55
%
19.08
%
19.08
%
Adjusted Earnings Per Common Share - Diluted
Adjusted net income (n)
$
18,098
$
20,524
$
17,000
$
61,713
$
49,991
Less: Dividends and undistributed earnings allocated to participating securities
171
192
148
571
444
Adjusted net income available to common stockholders (r)
17,927
20,332
16,852
61,142
49,547
Weighted-average common shares outstanding for diluted earnings per share (s)
25,161
25,395
25,713
25,410
25,693
Adjusted earnings per common share - diluted (r)/(s)
$
0.71
$
0.80
$
0.66
$
2.41
$
1.93
Net Charge-Offs (Recoveries) to Average Loans
Net charge-offs (recoveries) (t)
$
(1,018
)
$
2,575
$
(1,715
)
$
8,584
$
2,459
Average total loans (u)
$
4,026,351
$
4,032,142
$
4,036,936
$
4,029,390
$
4,046,347
Net charge-offs (recoveries) to average loans (t)/(u)
(0.10
)%
0.26
%
(0.17
)%
0.28
%
0.08
%
Net Interest Margin (on a Tax-Equivalent Basis)
Net interest income (v)
$
46,723
$
47,712
$
43,136
$
139,347
$
127,325
Add: Tax equivalent adjustment for loans and securities
771
755
638
2,145
1,748
Net interest income (on a tax-equivalent basis) (1) (y)
$
47,494
$
48,467
$
43,774
$
141,492
$
129,073
Average interest earning assets (x)
$
4,912,782
$
4,896,740
$
4,965,849
4,903,681
4,968,236
Net interest margin (on a tax-equivalent basis) (1) (y)/(x)
3.84
%
3.97
%
3.50
%
3.86
%
3.47
%
(1)
Items calculated after-tax utilizing a marginal income tax rate of 21.0%.
11
Alerus Financial Corporation and Subsidiaries
Analysis of Average Balances, Yields, and Rates (unaudited)
(dollars in thousands)
Three months ended
Nine months ended
September 30, 2026
June 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
Average
Average
Average
Average
Average
Average
Yield/
Average
Yield/
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Rate
Balance
Rate
Balance
Rate
Balance
Rate
Balance
Rate
Interest Earning Assets
Interest-bearing deposits with banks
$
54,390
3.74
%
$
45,777
4.11
%
$
89,568
4.86
%
$
53,591
4.04
%
$
53,187
4.98
%
Investment securities (1)
783,165
3.91
773,692
3.86
796,759
2.64
776,289
3.87
826,409
2.70
Loans held for sale
23,245
5.39
18,885
4.50
20,188
4.93
19,277
4.91
17,979
4.80
Loans
Commercial and industrial
778,604
7.00
779,471
7.07
650,787
7.51
760,827
7.06
654,061
7.44
CRE − Owner occupied
649,436
5.98
502,476
6.19
435,469
7.73
528,217
6.09
419,608
6.77
CRE − Construction, land and development
89,571
7.48
103,618
13.08
363,466
5.77
134,534
7.72
348,093
5.85
CRE − Multifamily
341,997
5.97
394,683
6.05
340,709
6.46
376,509
5.94
350,658
6.50
CRE − Non-owner occupied (2)
858,263
5.95
922,958
6.08
887,935
6.26
898,414
6.00
934,143
6.48
Agricultural − Land
54,978
9.58
53,823
5.78
66,676
5.53
56,178
7.11
66,647
5.71
Agricultural − Production
52,005
6.99
53,351
6.95
64,685
6.80
54,704
6.97
64,357
7.13
RRE − First lien
818,187
5.01
838,819
4.93
898,011
4.83
840,523
4.96
898,910
4.84
RRE − Construction
33,030
7.31
34,981
6.63
33,834
6.61
33,639
6.74
36,798
7.57
RRE − HELOC
275,470
6.03
271,254
6.02
213,232
6.82
269,487
6.03
190,272
6.96
RRE − Junior lien
31,353
6.85
32,676
6.53
40,997
6.40
33,427
6.59
42,498
6.34
Other consumer
43,457
6.53
44,032
6.51
41,135
6.94
42,931
6.45
40,302
6.99
Total loans (1)
4,026,351
6.10
4,032,142
6.24
4,036,936
6.31
4,029,390
6.09
4,046,347
6.28
Federal Reserve/FHLB stock
25,631
8.41
26,244
8.10
22,398
7.46
25,134
8.13
24,314
8.01
Total interest earning assets
4,912,782
5.73
4,896,740
5.85
4,965,849
5.70
4,903,681
5.72
4,968,236
5.68
Noninterest earning assets
343,172
329,579
307,457
330,051
314,562
Total assets
$
5,255,954
$
5,226,319
$
5,273,306
$
5,233,732
$
5,282,798
Interest-Bearing Liabilities
Interest-bearing demand deposits
$
1,402,505
1.70
%
$
1,378,394
1.68
%
$
1,227,029
1.80
%
$
1,382,852
1.67
%
$
1,240,589
1.80
%
Money market and savings deposits
1,454,053
2.38
1,441,099
2.34
1,587,694
2.84
1,466,135
2.36
1,580,085
2.83
Time deposits
573,526
3.32
571,276
3.34
772,345
3.81
571,305
3.36
716,421
3.81
Fed funds purchased
24,167
4.05
74,104
3.85
16,636
4.94
44,591
3.93
71,717
4.67
FHLB short-term advances
262,228
3.99
226,703
3.93
200,000
4.56
231,337
3.97
200,000
4.56
Long-term debt
59,253
6.99
59,225
7.04
59,137
4.37
59,225
6.14
59,111
4.42
Total interest-bearing liabilities
3,775,732
2.47
3,750,801
2.45
3,862,841
2.83
3,755,445
2.44
3,867,923
2.83
Noninterest-Bearing Liabilities and Stockholders' Equity
Noninterest-bearing deposits
776,897
790,088
800,028
788,442
819,266
Other noninterest-bearing liabilities
120,555
110,568
85,978
115,056
83,076
Stockholders’ equity
582,770
574,862
524,459
574,789
512,533
Total liabilities and stockholders’ equity
$
5,255,954
$
5,226,319
$
5,273,306
$
5,233,732
$
5,282,798
Net interest rate spread
3.26
%
3.40
%
2.87
%
3.28
%
2.85
%
Net interest margin (on a tax-equivalent basis) (1)
3.84
%
3.97
%
3.50
%
3.86
%
3.47
%
(1)
Taxable-equivalent adjustment was calculated utilizing a marginal income tax rate of 21.0%.
12
EX-99.2 — EXHIBIT 99.2
EX-99.2
Filename: ex_1001095.htm · Sequence: 3
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Exhibit 99.2
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v3.26.3
Document And Entity Information
Oct. 28, 2026
Document Information [Line Items]
Entity, Registrant Name
Alerus Financial Corporation
Document, Type
8-K
Document, Period End Date
Oct. 28, 2026
Entity, Incorporation, State or Country Code
DE
Entity, File Number
001-39036
Entity, Tax Identification Number
45-0375407
Entity, Address, Address Line One
401 Demers Avenue
Entity, Address, City or Town
Grand Forks
Entity, Address, State or Province
ND
Entity, Address, Postal Zip Code
58201
City Area Code
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Local Phone Number
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- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
+ Details
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Data Type:
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Balance Type:
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Period Type:
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X
- Definition
Trading symbol of an instrument as listed on an exchange.
+ References
No definition available.
+ Details
Name:
dei_TradingSymbol
Namespace Prefix:
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Data Type:
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Balance Type:
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Period Type:
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X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
+ Details
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Namespace Prefix:
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