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Alerus Financial Corporation Announces Sale of Three Nonperforming Loans
MINNEAPOLIS, May 19, 2026 (GLOBE NEWSWIRE) -- Alerus Financial Corporation (Nasdaq: ALRS), or the Company, closed on a sale of three non-performing loans
About this update from Alerus Financial Corporation
[{"type":"text","content":"MINNEAPOLIS, May 19, 2026 (GLOBE NEWSWIRE) -- Alerus Financial Corporation (Nasdaq: ALRS), or the Company, closed on a sale of three non-performing loans representing a construction, land and development relationship with a total net book balance of $33.6 million as of March 31, 2026. The loans were on nonaccrual as of March 31, 2026, and represented the largest non-performing relationship in the portfolio. As of March 31, 2026, this relationship represented 62.3% of total nonperforming loans and 62.1% of total nonperforming assets. Nonperforming assets to total loans as of March 31, 2026 were 1.34%. Adjusting nonperforming assets and total loans to remove this relationship, as if the transaction had occurred on March 31, 2026, would reduce nonperforming assets to total loans to 0.51% as of such date. As of March 31, 2026, the loans carried specific reserves totaling $3.1 million. There were no historical charge offs on this relationship and there were no charge offs recognized as a result of the transaction. Nonaccrual interest of $1.6 million was recorded in conjunction with the sale. President and Chief Executive Officer Katie O'Neill Lorenson said, “Strong credit outcomes start with strong credit culture. We emphasize early identification, transparent risk rating, and active portfolio management, so we can address emerging issues quickly and thoughtfully. The sale of this relationship, which represented the largest non-performing exposure at quarter-end, is a clear example of that discipline in action, and it was completed with no charge-offs and with significant nonaccrual interest recognized in connection with the transaction.” 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 pr...