Alerus Financial Corporation · NASDAQ:ALRS
Alerus Financial — Q3 2025 Earnings Presentation
36 slides from Alerus Financial's earnings presentation, Oct 30, 2025
Slide 1: Investor Presentation 3Q 2025
INVESTOR PRESENTATION 3Q 2025 NASDAQ; ALRS ALERUS
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Statements 1985 at nat eck’ “stmate’ Intend, pla’, "projection," would,annualzed hay, Mette by words such as “nay “nigh shoul’ “oul predic potential’ elie expect, “contin” Ww ante target and “outok” Forward nd state : : ‘anges in circumstances that are difical to predict
Slide 3: Company Profile
COMPANY PROFILE | wealth bank and a national retirement plan provider Alerus is a leading commer RETIREMENT AND BENEFIT SERVICES DIVERSIFIED REVENUE Lost Twelve Months Ended September 30, 2025 Retirement Services Benefit Services Net Interest Income * Plan administration * Health savings accounts, —
Slide 4: Full-Service Banking Offices
28 FULL-SERVICE BANKING OFFICES ill Grand Forks, ND: 4 offices x Fargo, ND: 2 offices * Twin Cities, MN: 7 offices 4 Rochester, MN: 4 offices Southern MN, Wland IA: 9 offices La Crosse, WI: 1 loan production office%* Phoenix, AZ: 2 offices RETIREMENT AND BENEFIT SERVICES ll Offices in Minnesota, Nor
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 Benefits. Rebranded to Expanded to Acquired Metro Alerus Arizona Market Phoenix Bank Began as the Bank Expanded to Acquired HMN
Slide 6: Reinvention
Reinvention of Processes ok Synergistic Growth Technology Investment Tailored \dvice Our Purpose Powers our Culture » » ORGANIC GROWTH ci tenti relationships Diversified business model focused on bringing value to clients L je failable to traditional banki organizations with deep expertise and indus
Slide 7: Officers and Directors
OFFICERS AND DIRECTORS EXECUTIVE MANAGEMENT a AL VILLALON tive Vice President and Chief Financial Officer with Alerus KARIN TAYLOR Executive Vice President and Chief Operating Officer 7 yeors with Alerus sim cons Executive Vice President and Chief Banking and Revenue Officer of FORREST Wits. Executi
Slide 8: Third Quarter Highlights
Slide 9: 3Q 2025 Highlights
3Q 2025 HIGHLIGHTS Success is Never Final Adjusted EPS; Fee Income: Adjusted ROAA®); $0.66 $43.1 million $29.4 million 1.28% $0.65 Reported 3.50% NIM 40.6% of revenue 1.27% Reported BALANEE Loans: Deposits: Synergistic L/D Ratio: beth $4.1 billion $4.4 billion Deposits®): 93.0% +1.4% vs. 2Q25 +1.7%
Slide 10: 3Q 2025 Results
3Q 2025 RESULTS Income Statement September30,_June30,__—-September30,September30, September 30, 205 2005 224 5 2028 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (dole endshresiathoutond except pe sare date et Interest in a ee eo panasnienen = = 1,661 6.150 Net Interest income After Pr
Slide 11: Performance Ratios
PERFORMANCE RATIOS Adjusted Return on Average Adjusted Return on Average Tangible Book Value per Share”) Assetstiv2) Tangible Common Equity2¥@) 1.41% $16.90 1.28% 21.02% $16.50 $16.11 18.55% 057% 9.08% 302024 20202532025 302024 20202532025 302024 202025302025 1. Rateshave been annualized. 10 | 2 Rep
Slide 12: Key Revenue Items
KEY REVENUE ITEMS Net Interest Income Noninterest income Sin thousands 1m Retirement & Benefit Services. Wealth Advisory ‘tm Banking Fees and Other’ Ine-time Items”? $a1,763 szmaca $2,031 s2s4so 2 43,136 eax $2303 $ sar 17%) ‘$6,345 200% $1674 ($35) 3Q 2024 2Q 2025 0.1% — 3Q.2025 30,2024 20.2025 30,
Slide 13: Net Interest Income
NET INTEREST INCOME YIELDS AND RATES NIL AND NIM“) WALK Earning Assets Sin Thousands seas SP eee < a aie £7 sn 630% 6 ay 631% 5 soy $43,032 32) alll alll all a a a tabaty past ate Lsbty 30.2024 202025 302025 Volumes PAR fate 2020 ecu past 202025 Investment slLoan Yield «mt Total Earning Asset Secure
Slide 14: Earning Assets
EARNING ASSETS SEPTEMBER 30, 2025 LOAN PORTFOLIOM! LOAN PORTFOLIO") CHANGES Sin thousands Chart AsofAsof_—«Asof Change Change Legend category 9/30/2024 6/30/2025 _ 9/30/2025 _@0a_Yor WH Commercialandindusvial $ 606,245 $ 675892 $ 702135 39% 158% CRE Construction, fand 1.0% im oe ores rsa 352709 349,
Slide 15: Deposit Characteristics
DEPOSIT CHARACTERISTICS ‘SEPTEMBER 30, 2025 DEPOSIT PORTFOLIO (BY CATEGORY) DEPOSIT PORTFOLIO CHANGES Sin thousands 4.6% hart Asof-ASof_—«ASof_—_ChangeChange Legend Category 9/30/2024 6/30/2025 _ 9/30/2025 Yor WH Noninterest-bearing $657,547 $ 790,300 $ 776,791 -1:7% 18.1% interest-bearing " . 16.9%
Slide 16: Banking Services
BANKING SERVICES DIVISIONAL) INCOME STATEMENT INCOME! Sin thousands Sin thousands 3Q2025 202025 30.2024 — Net interest income $ 43,136 $ 43,032 $ 22,542 oo seam Provision for credit losses : : 1,661 $5,535 = Noninterest income” 6374 8376 5,535 sad os Total revenue 49,510 51408 26,416 $3,000, HO ce N
Slide 17: Retirement and Benefit Services
RETIREMENT AND BENEFIT SERVICES DIVISIONAL) INCOME STATEMENT AUA / AUM AND PARTICIPANT ACCOUNTS Sin thousands Sin milions 3Q2025 20.2025 30.2024 $44,005 $40,729 Recurring annual income $ 13391 $ 12,72 $ 12918 $36,733 $36,682 Transactional income 3,105 3,226 $32,123 Total noninterest income 16,496 4
Slide 18: Wealth Advisory Services
WEALTH ADVISORY SERVICES DIVISIONAL") INCOME STATEMENT AUA / AUM Sin towards Sin ailions sane 3Q2025 202025 3Q.2024 an ‘Asset management $ 5698 $ 6314 $ 5,972 Brokerage 372 417 365 Sasi bess Insurance and other 490 632 347 $3,583 Total noninterest income 6560 7,363 6,684 Noninterest expense 5,883 53
Slide 19: Noninterest Expense
NONINTEREST EXPENSE Sin thousands QUARTERLY HIGHLIGHTS SOSA g6 . 1d $2.1 million, or 4.34 d to the second quarter of 2025. $7,653 increas by an Theq was pi increase from higher payment received in the second quarter, and business services, software, and technology expense from platform upgrades. i p
Slide 20: Asset Quality and Reserve Levels
ASSET QUALITY AND RESERVE LEVELS NPA / ASSETS % RESERVES OVER NPL % Tinton 3.20% 113% asm x 109% oa a coo 040% a — not 2022 20232024 302025 2021 2022 2023 2024 3Q2025 iC $2,076 $3,794 $8,596 954,433, $59,648] Nor, (0ou% 002m au —oasx aan | (Aeration ma me asst RESERVES / LOANS % 02025, milion which
Slide 21: Capital and Sources of Liquidity
CAPITAL AND SOURCES OF LIQUIDITY COMMON EQUITY TIER 1 TIER 1 CAPITAL/TIER 1 LEVERAGE RATIOS 14.7% 15.1% 99% asi 10.6%! 10.1% | gy, a on | a TOTAL RISK BASED CAPITAL LIQUIDITY $4,742,548 1 Bxcues unencumbered HTM secures witha market ale of $1181 millon A 217 5 2025,
Slide 22: Outlook
OUTLO FY 2025 FY 2026 Preliminary Guidance Guidance or $4.1-4.2b > Up mid-single digits Deposits 7, Up low- single eae » digits 3.35-3.40% >> 3.35-3.45% Up mid-single ~$115m » digits Up low to mid- oUseeleia » single digits >1.15% » >1.10% 21 [1 Representsa nom GAAP Fnac measure. man
Slide 23: Key Takeaways
KEY TAKEAWAYS A solid quarter on our continued path to top tier performance Our diversified business model continues to drive earnings = Stable net interest income compared to the second quarter of 2025 = Noninterest income of $29.4 million representing 40.6% of revenue = Adjusted EPS“ of $0.66 and
Slide 24: Appendix
Slide 25: Divisional Income Statement
DIVISIONAL INCOME S , 2025 Retirement and Wealth Corporate Banking Services Administration __ Consolidated Net interest income $ 43,788 $ Sas = 9 (652) -$ 43,136 Provision for loan losses . 3 . Noninterest income" 6216 16,496 6560 158 29,430 28,697 13,304 5,883 2567 50541 come beforetaxes _$ 21,307
Slide 26: Loan Portfolio Breakdown
LOAN PORTFOLIO BREAKDOWN ‘September 30, 2025 une 30, 2025. December 31,2024 Percent of Percent of Percent of (Snrowanas) Balance Portfolio Balance Portfolio Balance Portfolio Commercial and industri: General busi $ 65% $28, 74% $340,702 85% Seni 53% 191,709 am 7313 45% fetal ade 27% 105,220 2.6% 88,
Slide 27: Line of Credit Utilization
LINE OF CREDIT UTILIZATION 600,000 500,000 400,000 300,000 200,000 100,000 | | | | Sinthousands 2021 2022 2023 2024 .__§ 3a onal mt Unfunded om Home Equity Lines of Credit me rundes 620,000 500,000 400,000 300,000 Ss 200,000 - poal Sinthousands 2021 2022 2023-2024 mmm Funded 3a 2024 Unfunded 2005205
Slide 28: Allowance for Credit Losses on Loans
ALLOWANCE FOR CREDIT LOSSES ON LOANS Changes in the ACL for Loans by Portfolio Segment , 2005 Beginning Provision for loan loan Balance cr Charge-offs Recoveries (Sin thousands) Commercial: Commercial and industrial $8326 $ 320 $ (606) $ 2a $13,405, Comercio reo estate Construction, land and develop
Slide 29: Allowance for Credit Losses on Loans
ALLOWANCE FOR CREDIT LOSSES ON LOANS Allocation by Loan Portfolio Segment September 30, 2025 December 31, 2024 Percentage of Percentage of Allocated segment allowance Allocated segment allowance ($ in thousands) Allowance Allowance Commercial and industrial $ 13,405 1.91% $ 8,170 1.23% CRE - Constru
Slide 30: Financial Highlights
FINANCIAL HIGHLIGHTS 307005 202075 1 42024 302028 Total Assets 3 $ 5,330,573 § 4,084,640 Total Loans 4102075 4044657 4,085,483 3002.53 3,032,243 4,102,075 3,032,343 Total Deposits 4,412,653 4,337,468 4,485,291 4,378,410 3,323,550 4,412,653 3,323,550 Tangible Common Equity’ 429,301 409,059 «387426 «3
Slide 31: Financial Highlights
FINANCIAL HIGHLIGHTS Annual 2023 2022 2020 Total Assets $ 5,261,673 $ 3,907,713 $ 3,779,637 $ 3,392,691 $ 3,013,771 14.9% Total Loans 3,992,534 2,759,583 2,443,994 1,758,020 1,979,375 19.2% Total Deposits 4,378,410 3,095,611 2,915,484 2,920,551 2,571,993 14.2% Tangible Common Equity* 365,894 305,186
Slide 32: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION Tanghl common equity tangle ast ommonstockolders' equity rangble common equity to tangible assets (2/6) ‘Tangible common equity per common share 5 oma ne(8) Tangible common eat per commen share (es) Return on average tangible common equity Netincome 'Add Intangible
Slide 33: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION Tange corman aay one ts Total common stockholders’ equ $ 495410 § 369,127 § 356872 $350,403 $330,263 tes: Goodwill 634 46,783, 7 60 30201, Les: Other intangible assets 43862 17158 ___22455___—20.250 25919, Tangible common equity (a) e558 305.186 287380 ~—~307,663 2
Slide 34: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION
Slide 35: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION "Quarter 2025 ptember 30,2025 September 30,2024 $413 $ oR $ 25H $ BI S$ 68,761 29430 31,768 28363, 88.824 81057 tess: Noni soséi 43,438, aaa Pre-provision net revenue 22005 28,357 8458 ‘Adjusted noninterest income Miners acme $ 29430 $ 31763 $ 28363 $ agam$ 81957 ‘
Slide 36: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION Lerered i ‘September 30,2028 ‘Adjusted net income Net income S$ 15928 $ 20253 $5207 § soa $ 17886 Les: Adjusted noninterest income items (net of tax){a) (28) 1,608 376 1377 380 ‘Add: Adjusted noninterest expense items (net of tx)" (e) 48 © 1337 1977, 22 Adjusted ne