Alerus Financial Corporation · NASDAQ:ALRS
Alerus Financial — Q3 2026 Earnings Presentation
42 slides from Alerus Financial's earnings presentation, Oct 28, 2026
Slide 1: Investor Presentation 3Q 2026
INVESTOR PRESENTATION 3Q 2026 OCTOBER 28, 2026 NASDAQ: ALRS
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Statements This presentation contains “forward-looking statements” within the meanings of the 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
Slide 3: Company Profile
COMPANY PROFILE Alerus is a Leading Commercial Wealth Bank and a National Retirement Plan Provider Diversified Revenue(1) Retirement and Benefit Services Last Twelve Months Ended September 30, 2026 Retirement Services Benefit Services Net Interest Income: Plan administration Health savings accou
Slide 4: Company Footprint and Scale
COMPANY FOOTPRINT AND SCALE Market Distribution and Client Base(1) 55,200 Consumer clients(2) Banking 17,900 Commercial clients(2) Loans: $4,185 Deposits: $4,303 11,600 Wealth clients 5,500 Employer-sponsored retirement plans 330,500 Employer-sponsored retirement participant accounts 16.1%
Slide 5: Strategic Growth
STRATEGIC GROWTH To supplement our organic growth, we have executed 26 acquisitions throughout the history of our company including: 16 in Banking and 10 in Retirement and Benefit Services. Rebranded to Alerus Expanded to Acquired Metro Arizona Market Phoenix Bank 1879 2007 2019 2024 2000 2009 2022
Slide 6: Company Performance
COMPANY PERFORMANCE Return on Average Assets Return on Average Tangible Common Equity(3) 1.66% (1) 18.89% 19.50% (1) 1.45% 17.35% 1.35% 16.98% 1.32% 15.09% 1.14% 14.47% 1.13% 11.95% (1) 0.82% (1) 7.14% 0.39% 2021 2022 2023 2024 2025 3Q 2026 2021 2022 2023 2024 2025 3Q 2026 (2) (2) (2) (2) ALRS KRX M
Slide 7: Strategic Initiatives
STRATEGIC INITIATIVES Our Purpose is to Help Our Clients Achieve Theirs. Organic Organic Growth Employer of Choice Growth New client acquisition, Recruiting and retaining top retention, and deepening talent with deep industry existing relationships expertise Diversified business model Foster
Slide 8: Officers and Directors
OFFICERS AND DIRECTORS Al Villalon Executive Vice President and Chief Financial Officer 4 years with Alerus Forrest Wilson Executive Vice President and Chief Retirement Services Officer 2 years with Alerus Karin Taylor Executive Vice President and Chief Operating Officer Executive Management 8 years
Slide 9: Third Quarter Highlights
Third Quarter Highlights Office in Minnetonka, Minnesota
Slide 10: 3Q 2026 Highlights
3Q 2026 HIGHLIGHTS Success is Never Final Diversified Returns ROAA: ROTCE(1): Net interest income was $46.7 million, and net interest margin (on a tax- equivalent basis)(1) was 3.84% in the third quarter of 2026. 1.45% 17.35% Noninterest income was $34.4 million in the third quarter of 2026, an
Slide 11: Key Return Metrics
KEY RETURN METRICS Adjusted Return on Average Assets(1) Adjusted Return on Average Equity(1) 1.79% 1.62% 1.58% 16.53% 15.39% 1.37% 14.32% 1.28% 12.86% 12.32% 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 Reported: 1.27% (2.50)% 1.79% 1.60% 1.45% Reported: 12.80% (23
Slide 12: Key Income Statement Items
KEY INCOME STATEMENT ITEMS Net Interest Income & Net Interest Margin(1)/(2) Adjusted Noninterest Income(1) & as a % of Adjusted Revenue(1) $ in thousands $ in thousands $47,712 $32,796 $46,723 $31,899 $32,292 $45,174 $30,868 $44,912 Adjusted $29,465 $43,136 Noninterest 3.97% Income (1) 3.84% 3.77% 3
Slide 13: Key Balance Sheet Items
KEY BALANCE SHEET ITEMS Loans & Quarterly Average Yield Investment Securities & Quarterly Average Yield $ in thousands $ in thousands $4,184,760 $4,102,076 $791,776 $771,414 $777,323 $783,501 $4,048,022 $4,034,744 $4,034,244 $770,424 Total Loans 6.31% 6.35% 3.84% 3.86% 3.91% 6.24% 6.10% 5.94% Quarte
Slide 14: Third Quarter Details
Third Quarter Details Office in Fargo, North Dakota
Slide 15: 3Q 2026 Results: Income Statement
3Q 2026 RESULTS Income Statement Quarterly ($ in thousands, except per share data) 3Q 2025 2Q 2026 3Q 2026 Income Statement Net Interest Income $ 43,136 $ 47,712 $ 46,723 Provision for (Recovery of) Credit Losses — 495 2,199 Net Interest Income After Provision for Credit Losses 43,136 47,217 44,524
Slide 16: 3Q 2026 Results: Balance Sheet, Capital, Credit Quality
3Q 2026 RESULTS Balance Sheet, Capital, Credit Quality & Other Quarterly ($ in thousands) 3Q 2025 2Q 2026 3Q 2026 Balance Sheet Total Assets $ 5,330,573 $ 5,288,718 $ 5,403,103 Total Loans 4,102,076 4,034,244 4,184,760 Total Deposits 4,412,653 4,191,897 4,303,177 (1) Tangible Common Equity 429,301 4
Slide 17: Earning Assets
EARNING ASSETS September 30, 2026 Loan Portfolio(1) 3Q 2026 Loan Portfolio(1) Changes $ in millions Other consumer, $70 $3 $1 1.1% Commercial and $375 $(4) $(56) industrial, 20.6% $4,185 $(238) CRE - Owner $4,034 occupied, 16.4% CRE - Construction, Residential real land estate, 27.6% and development
Slide 18: Deposit Characteristics
DEPOSIT CHARACTERISTICS September 30, 2026 Deposit Portfolio (by Category) 3Q 2026 Deposit Portfolio Changes $ in millions HSA deposits, 5.2% Time $6 $2 $4,303 Noninterest- $51 deposits, $(2) 13.5% bearing, 18.9% $54 $4,192 Money market Interest-bearing and savings, demand, 28.1% 34.3% Noninterest-
Slide 19: Net Interest Income
NET INTEREST INCOME Yields and Rates NII and NIM(1) Walk Net Interest Margin(1) $ in thousands $281 $508 3.97% $(45) 3.84% $47,712 $(254) 3.50% $46,723 $(1,479) 3Q 2025 2Q 2026 3Q 2026 2Q 2026 Accrual Asset Liability Liability Asset Rate 3Q 2026 Days Volume/Mix Volume/Mix Rate & PAA Earning Assets (
Slide 20: Noninterest Income
NONINTEREST INCOME Adjusted Noninterest Income(1) Represents over 40% of Adjusted Revenue(1) Adjusted Noninterest Income(1) Quarterly Highlights $ in thousands Retirement and Benefit Services revenue increased $0.3 million, or 1.8%, from the second quarter of 2026, primarily driven by an increase
Slide 21: Banking Services
BANKING SERVICES Divisional(1) Income Statement Noninterest Income(2)/(3) Breakdown $ in thousands $8,685 Quarterly $7,893 One-time $1,554 ($ in thousands) 3Q 2025 2Q 2026 3Q 2026 $653 Items(4) $6,374 Net interest income $ 43,136 $ 47,712 $ 46,723 Other $2,133 $1,733 $1,354 Provision for (recovery o
Slide 22: Retirement and Benefit Services
RETIREMENT AND BENEFIT SERVICES Divisional(1) Income Statement AUA / AUM (2) and Participant Accounts (2) $ in millions Quarterly $44,925 $44,944 ($ in thousands) 3Q 2025 2Q 2026 3Q 2026 AUA/AUM Recurring annual income $ 14,683 $ 15,135 $ 15,566 384,800 397,000 $40,729 Transactional income 1,813 2,2
Slide 23: Wealth Advisory Services
WEALTH ADVISORY SERVICES Divisional(1) Income Statement AUA / AUM $ in millions Quarterly ($ in thousands) 3Q 2025 2Q 2026 3Q 2026 $5,164 $4,851 Asset management $ 5,698 $ 6,831 $ 6,885 $4,579 Brokerage 372 410 622 Insurance and other 490 464 494 $4,019 Total noninterest income 6,560 7,705 8,001 $3,
Slide 24: Noninterest Expense
NONINTEREST EXPENSE Adjusted Noninterest Expense(1) Quarterly Highlights $ in thousands Compensation and benefits expenses increased $0.6 million, or $52,661 $53,709 1.9%, from the second quarter of 2026, primarily due to an $50,480 increase in benefits expenses related to self-funded group Other(
Slide 25: Asset Quality and Reserve Levels
ASSET QUALITY AND RESERVE LEVELS NPAs / Assets % Reserves / Loans & Reserves / NPLs (%) 1.33% 1.20% 1.50% 1.53% 1.27% 1.30% 1.23% Reserves/Loans 821% 742% 0.30% Reserves/NPLs 0.22% 410% 0.10% 95% 90% 2022 2023 2024 2025 3Q 2026 $ in thousands 2022 2023 2024 2025 3Q 2026 NCO/ Nonaccrual loans $3,794
Slide 26: Capital and Sources of Liquidity
CAPITAL AND SOURCES OF LIQUIDITY Capital Ratios(1) Tangible Book Value(2) & Book Value CET1 $ per share 13.4% $23.31 11.8% $22.24 9.9% 10.3% 10.5% $19.55 $18.71 $18.74 $17.85 $17.55 4.5% $15.46 $14.37 $14.44 2022 2023 2024 2025 3Q 2026 Total Risk Based Capital 16.5% 14.8% 2022 2023 2024 2025 3Q 2026
Slide 27: Outlook
OUTLOOK Full Year Comparison FY 2026 Guidance(1) Loans $4.0b Up mid-single End of period 12/31/2025 digits Deposits $4.2b Up low-single End of period 12/31/2025 digits NIM(2)/(3) 3.53% 3.75 - 3.85% 2025 Adjusted $119m Up mid-single Noninterest Income(3) 2025 digits Adjusted $291m Up mid-single Reven
Slide 28: Key Takeaways
KEY TAKEAWAYS Another Quarter Demonstrating Top-Tier Returns EARNINGS Strong net interest income and noninterest income, as we continue to deliver balanced results. BALANCE Core loan and deposit relationship growth continues to bolster our SHEET diverse banking franchise. ASSET & Our disciplined foc
Slide 29: Appendix
Appendix Office in Grand Forks, North Dakota
Slide 30: Divisional Income Statement
DIVISIONAL INCOME STATEMENT ($ dollars in thousands) Quarter ended September 30, 2026 Retirement and Wealth Corporate Banking Services Benefit Services Advisory Services Administration Consolidated Net interest income $ 47,768 $ - $ - $ (1,045) $ 46,723 Provision for (recovery of) credit losses 2,19
Slide 31: Loan Portfolio Breakdown
LOAN PORTFOLIO BREAKDOWN December 31, 2025 June 30, 2026 September 30, 2026 Percent of Percent of Percent of ($ in thousands) Balance Portfolio Balance Portfolio Balance Portfolio Commercial and business lending: General business $ 290,008 7.2% $ 376,716 9.3% $ 420,873 10.1% Services 237,966 5.9% 20
Slide 32: Line of Credit Utilization
LINE OF CREDIT UTILIZATION $600,000 C&I 60% $500,000 50% $400,000 40% $300,000 30% $200,000 20% $100,000 10% $0 0% $ in thousands 2022 2023 2024 2025 3Q 4Q 1Q 2Q 3Q 2025 2025 2026 2026 2026 Funded Unfunded Funded % Home Equity Lines of Credit $700,000 60% $600,000 50% $500,000 40% $400,000 30% $300,
Slide 33: Allowance for Credit Losses on Loans
ALLOWANCE FOR CREDIT LOSSES ON LOANS Changes in the ACL for Loans by Portfolio Segment Three months ended September 30, 2026 Provision for Beginning (Recovery of) Loan Loan Ending Balance Credit Losses(1) Charge-offs Recoveries Balance ($ in thousands) Commercial Commercial and business lending Comm
Slide 34: Allowance for Credit Losses on Loans
ALLOWANCE FOR CREDIT LOSSES ON LOANS Allocation by Loan Portfolio Segment December 31, 2025 September 30, 2026 Percentage of Percentage of Allocated segment allowance Allocated segment allowance ($ in thousands) Allowance to segment loans Allowance to segment loans Commercial and industrial $ 16,216
Slide 35: Financial Highlights
FINANCIAL HIGHLIGHTS Quarterly ($ in thousands, except where otherwise noted) 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 Total Assets $ 5,330,573 $ 5,230,084 $ 5,287,971 $ 5,288,718 $ 5,403,103 Total Loans 4,102,076 4,048,022 4,034,744 4,034,244 4,184,760 Total Deposits 4,412,653 4,192,003 4,347,882 4,
Slide 36: Financial Highlights
FINANCIAL HIGHLIGHTS Annual 21 - '25 ($ in thousands, except where otherwise noted) 2021 2022 2023 2024 2025 CAGR Total Assets $ 3,392,691 $ 3,779,637 $ 3,907,713 $ 5,261,673 $ 5,230,084 11.4% Total Loans 1,758,020 2,443,994 2,759,583 3,992,534 4,048,022 23.2% Total Deposits 2,920,551 2,915,484 3,09
Slide 37: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION Quarterly ($ in thousands, except where otherwise noted) 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 Tangible common equity to tangible assets Total common stockholders' equity $ 550,688 $ 564,934 $ 574,693 $ 583,143 $ 576,850 Less: Goodwill 85,634 85,634 85,634 85,634
Slide 38: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION Quarterly Twelve Months Ended ($ in thousands, except for per share data and where otherwise noted) 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 September 30, 2026 Adjusted noninterest income Noninterest income (loss) $ 29,430 $ (36,949) $ 30,847 $ 32,945 $ 34,350 $ 61,
Slide 39: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION Lettered items are continued from the prior slide Quarterly ($ in thousands, except for per share data and where otherwise noted) 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 Adjusted net income Net income (loss) $ 16,924 $ (33,050) $ 22,971 $ 20,865 $ 19,200 (1) Less:
Slide 40: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION Annual ($ in thousands, except where otherwise noted) 2021 2022 2023 2024 2025 Tangible common equity to tangible assets Total common stockholders' equity $ 359,403 $ 356,872 $ 369,127 $ 495,410 $ 564,934 Less: Goodwill 31,490 47,087 46,783 85,634 85,634 Less: Othe
Slide 41: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION Annual ($ in thousands, except for per share data and where otherwise noted) 2021 2022 2023 2024 2025 Adjusted net income excluding net gains (losses) on investment securities Net income (loss) $ 52,681 $ 40,005 $ 11,696 $ 17,780 $ 17,439 Less: Net gains (losses) o
Slide 42: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION Annual ($ in thousands, except for per share data and where otherwise noted) 2025 Adjusted noninterest income Noninterest income (loss) 51,876 Less: Adjusted noninterest income (loss) items Net gains (losses) on investment securities (68,403) Net gains (losses) on