Alerus Financial Corporation · NASDAQ:ALRS
Alerus Financial — Q4 2025 Earnings Presentation
36 slides from Alerus Financial's earnings presentation, Jan 29, 2026
Slide 1: Investor Presentation 4Q 2025
INVESTOR PRESENTATION 4Q 2025 NASDAQ: ALRS
Slide 2: Disclaimers
DISCLAIMERS Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of 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
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 December 31, 2025 Retirement & Retirement Services Benefit Services Benefits Net Interest Income: Revenue ▪ Plan administ
Slide 4: Franchise Footprint
FRANCHISE FOOTPRINT 27 FULL-SERVICE BANKING OFFICES ▪ Grand Forks, ND: 4 offices ▪ Fargo, ND: 2 offices ▪ Twin Cities, MN: 6 offices ▪ Rochester, MN: 4 offices ▪ Southern MN, WI and IA: 9 offices ▪ Phoenix, AZ: 2 offices RETIREMENT AND BENEFIT SERVICES ▪ Offices in Minnesota, North Dakota, and Color
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 1879 2007 2019 2024 2000 2009 2022 Began as
Slide 6: Strategic Initiatives
STRATEGIC INITIATIVES One Alerus = Working Better Together to Grow Client ORGANIC GROWTH Oriented ▪ Collaborative leadership team focused on new client acquisition, retention, and deepening relationships with existing clients Reinvention Diversified ▪ Diversified business model focused on bringing v
Slide 7: 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 8: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS Office in Minnetonka, Minnesota
Slide 9: 4Q 2025 Highlights
4Q 2025 HIGHLIGHTS Success is Never Final Adjusted EPS(1): NII: Adjusted ROTCE(1): Adjusted ROAA(1): EARNINGS $0.85 $45.2 million 21.05% 1.62% +$0.19 vs. 3Q25 3.69% NIM2 +2.50% vs. 3Q25 +34 bps vs. 3Q25 Loans: Deposits: Synergistic L/D Ratio: BALANCE $4.0 billion $4.2 billion Deposits(2): 96.6% SHEE
Slide 10: 4Q 2025 Results
4Q 2025 RESULTS Income Statement Three months ended Year ended December 31, September 30, December 31, December 31, December 31, 2025 2025 2024 2025 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (dollars and shares in thousands, except per share data) Net Interest Income $ 45,174
Slide 11: Performance Ratios
PERFORMANCE RATIOS Adjusted Return on Average Adjusted Return on Average Tangible Book Value per Share(2) Assets(1)/(2) Tangible Common Equity(1)/(2) $17.55 1.62% $16.90 21.05% 1.28% 18.55% 14.89% $14.44 0.85% 4Q 2024 3Q 2025 4Q 2025 4Q 2024 3Q 2025 4Q 2025 4Q 2024 3Q 2025 4Q 2025 10 | 1. Rates have
Slide 12: Key Revenue Items
KEY REVENUE ITEMS Net Interest Income Adjusted Noninterest Income (1) $ in thousands $ in thousands | % of noninterest income Retirement & Benefit Services Wealth Advisory Adjusted Banking Fees and Other(1)/(2) $31,899 $45,174 $30,415 $29,465 $7,201 $43,136 $6,917 22.6% $6,409 22.7% 21.8% $7,438 $7,
Slide 13: Net Interest Income
NET INTEREST INCOME YIELDS AND RATES NII AND NIM(1) WALK Earning Assets $ in Thousands $735 $0 $45,174 $1,560 ($73) ($184) 6.27% 6.31% 6.35% 5.60% 5.70% 5.72% $43,136 2.68% 2.64% 2.45% Liability Accrual Asset Rate 4Q 2024 3Q 2025 4Q 2025 Rate Days & PAA 3Q 2025 Liability Asset 4Q 2025 Investment Loa
Slide 14: Earning Assets
EARNING ASSETS DECEMBER 31, 2025 LOAN PORTFOLIO(1) LOAN PORTFOLIO(1) CHANGES $ in thousands 1.1% Chart As of As of As of Change Change Legend Category 12/31/2024 9/30/2025 12/31/2025 QoQ YoY Commercial and industrial $ 666,727 $ 702,135 $ 736,833 4.9% 10.5% CRE - Construction, land 294,677 349,768 2
Slide 15: Deposit Characteristics
DEPOSIT CHARACTERISTICS DECEMBER 31, 2025 DEPOSIT PORTFOLIO (BY CATEGORY) DEPOSIT PORTFOLIO CHANGES $ in thousands 4.9% Chart As of As of As of Change Change Legend Category 12/31/2024 9/30/2025 12/31/2025 QoQ YoY Noninterest-bearing $ 903,466 $ 776,791 $ 807,896 4.0% -10.6% Noninterest- 13.7% Inter
Slide 16: Banking Services
BANKING SERVICES DIVISIONAL(1) INCOME STATEMENT NONINTEREST INCOME(2)/(3) BREAKDOWN $ in thousands $ in thousands 4Q 2025 3Q 2025 4Q 2024 $10,376 Net interest income $ 45,174 $ 43,136 $ 38,284 $3,459 $6,756 Provision for credit losses (308) - 11,992 $6,374 $2,404 Noninterest income(2)/(3) 6,756 6,37
Slide 17: Retirement and Benefit Services
RETIREMENT AND BENEFIT SERVICES DIVISIONAL(1) INCOME STATEMENT AUA / AUM AND PARTICIPANT ACCOUNTS $ in thousands $ in millions $44,925 4Q 2025 3Q 2025 4Q 2024 $40,729 Recurring annual income $ 13,839 $ 13,391 $ 13,276 $36,733 $36,682 Transactional income 3,421 3,105 3,212 $32,123 500,164 495,039 Tot
Slide 18: Wealth Advisory Services
WEALTH ADVISORY SERVICES DIVISIONAL(1) INCOME STATEMENT AUA / AUM $ in thousands $ in millions $4,851 4Q 2025 3Q 2025 4Q 2024 $4,579 Asset management $ 6,553 $ 5,698 $ 5,974 $4,040 $4,019 Brokerage 459 372 651 Insurance and other 426 490 385 $3,583 Total noninterest income 7,438 6,560 7,010 Noninter
Slide 19: Noninterest Expense
NONINTEREST EXPENSE $ in thousands QUARTERLY HIGHLIGHTS $60,457 ▪ Noninterest expense increased $1.3 million, or 2.7%, compared to the third quarter of 2025. $10,005 $50,541 $51,881 $100 ▪ The quarter-over-quarter increase was primarily driven by occupancy $61 $6,846 and equipment expense, due to th
Slide 20: Asset Quality and Reserve Levels
ASSET QUALITY AND RESERVE LEVELS NPA / ASSETS % RESERVES OVER NPL % $ in thousands 1.27% 1.20% 1,437% 821% 410% 95% 94% 0.22% 0.09% 0.10% 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Nonaccrual loans $2,076 $3,794 $8,596 $54,433 $66,148 NCO/ Accruing loans (0.04)% 0.02% (0.04)% 0.13% 0.05% 121
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% 13.4% 13.7% 11.8% 12.1% 11.3% 9.9% 10.3% 10.6% 10.5% 9.8% 10.1% 8.7% 8.9% Tier 1 Capital 6% 4% Leverage 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Tier 1 Leverage Tier 1 Capital Regulatory
Slide 22: Outlook
OUTLOOK Full Year Comparison FY 2026 Guidance3 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 NIM1 3.53% 3.50-3.60% 2025 Adjusted $119m Up mid-single Noninterest Income2 2025 digits Adjusted $291m Up mid-single Revenue2 2025 dig
Slide 23: Key Takeaways
KEY TAKEAWAYS Alerus is in a great position for 2026 after a strong fourth quarter NII and diversified noninterest income drove strong returns in the quarter EARNINGS ▪ Adjusted noninterest income(1) increased 8.3% compared to the third quarter of 2025 ▪ Adjusted efficiency ratio(1) decreased 1.7% c
Slide 24: Appendix
APPENDIX Office in Excelsior, Minnesota
Slide 25: Divisional Income Statement
DIVISIONAL INCOME STATEMENT ($ dollars in thousands) Quarter ended December 31, 2025 Retirement and Wealth Corporate Banking Services Benefit Services Advisory Services Administration Consolidated Net interest income $ 45,819 $ - $ - $ (645) $ 45,174 Provision for loan losses (308) - - - (308) (1) N
Slide 26: Loan Portfolio Breakdown
LOAN PORTFOLIO BREAKDOWN December 31, 2025 September 30, 2025 December 31, 2024 Percent of Percent of Percent of ($ in thousands) Balance Portfolio Balance Portfolio Balance Portfolio Commercial and industrial: General business $ 290,008 7.2% $ 269,555 6.6% $ 340,702 8.5% Services 237,966 5.9% 217,2
Slide 27: Line of Credit Utilization
LINE OF CREDIT UTILIZATION C&I 600,000 60% 500,000 50% 400,000 40% 300,000 30% 200,000 20% 100,000 10% - 0% $ in thousands 2022 2023 2024 2025 4Q 1Q 2Q 3Q 4Q 2024 2025 2025 2025 2025 Funded Unfunded Funded % Home Equity Lines of Credit 700,000 60% 600,000 50% 500,000 40% 400,000 30% 300,000 20% 200,
Slide 28: Allowance for Credit Losses on Loans
ALLOWANCE FOR CREDIT LOSSES ON LOANS Changes in the ACL for Loans by Portfolio Segment Three months ended December 31, 2025 Beginning Provision for Loan Loan Ending Balance Credit Losses(1) Charge-offs Recoveries Balance ($ in thousands) Commercial: Commercial and industrial $ 13,405 $ 2,778 $ (62)
Slide 29: Allowance for Credit Losses on Loans
ALLOWANCE FOR CREDIT LOSSES ON LOANS Allocation by Loan Portfolio Segment December 31, 2025 December 31, 2024 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 30: Financial Highlights
FINANCIAL HIGHLIGHTS ($ in thousands, Quarterly Year ended except where otherwise noted) 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 December 31, 2025 December 31, 2024 Total Assets $ 5,230,084 $ 5,330,573 $ 5,323,822 $ 5,339,620 $ 5,261,673 $ 5,230,084 $ 5,261,673 Total Loans 4,048,022 4,102,075 4,044,
Slide 31: Financial Highlights
FINANCIAL HIGHLIGHTS ($ in thousands, Annual 21 - '25 except where otherwise noted) 2025 2024 2023 2022 2021 CAGR Total Assets $ 5,230,084 $ 5,261,673 $ 3,907,713 $ 3,779,637 $ 3,392,691 11.4% Total Loans 4,048,022 3,992,534 2,759,583 2,443,994 1,758,020 23.2% Total Deposits 4,192,003 4,378,410 3,09
Slide 32: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION ($ in thousands, except where otherwise noted) Quarterly Year ended 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 December 31, 2025 December 31, 2024 Tangible common equity to tangible assets Total common stockholders' equity $ 564,934 $ 550,687 $ 533,155 $ 514,232 $ 495
Slide 33: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION ($ in thousands, except where otherwise noted) Annual 2025 2024 2023 2022 2021 Tangible common equity to tangible assets Total common stockholders' equity $ 564,934 $ 495,410 $ 369,127 $ 356,872 $ 359,403 Less: Goodwill 85,634 85,634 46,783 47,087 31,490 Less: Othe
Slide 34: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION ($ in thousands, except for where otherwise noted) Quarterly Twelve Months Ended Twelve Months Ended 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 December 31, 2025 December 31, 2024 Adjusted Noninterest income as a percentage of adjusted revenue Noninterest income (loss
Slide 35: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION ($ in thousands, except for per share data and where otherwise noted) Quarterly Year ended 4Q 2025 3Q 2025 4Q 2024 December 31, 2025 December 31, 2024 Pre-provision net revenue Add: Net interest income $ 45,174 $ 43,136 $ 38,284 $ 172,499 $ 107,045 Add: Noninterest
Slide 36: Non-GAAP Disclosure Reconciliation
NON-GAAP DISCLOSURE RECONCILIATION ($ in thousands, except for per share data and where otherwise noted) Quarterly Year ended Lettered items are continued from the prior slide 4Q 2025 3Q 2025 4Q 2024 December 31, 2025 December 31, 2024 Adjusted net income Net income (loss) $ (33,050) $ 16,924 $ (66)