Form 8-K

8-K — ALERUS FINANCIAL CORP

Accession: 0001437749-26-024891

Filed: 2026-07-29

Period: 2026-07-29

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 — alrs20260502_8k.htm (Primary)

EX-99.1 — EXHIBIT 99.1 (ex_955234.htm)

EX-99.2 — EXHIBIT 99.2 (ex_955235.htm)

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XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K — FORM 8-K

8-K (Primary)

Filename: alrs20260502_8k.htm · Sequence: 1

alrs20260502_8k.htm

false

0000903419

2026-07-29

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): July 29, 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

(Address of Principal Executive Offices) (Zip Code)

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 July 29, 2026, Alerus Financial Corporation (the “Company”) issued a press release announcing its financial results for the three and six months ended June 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 July 29, 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 April 29, 2026

99.2

Investor Presentation of Alerus Financial Corporation

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: July 29, 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_955234.htm · Sequence: 2

ex_955234.htm

Exhibit 99.1

Alan A. Villalon, Chief Financial Officer

952.417.3733 (Office)

FOR RELEASE (7.29.2026)

ALERUS FINANCIAL CORPORATION REPORTS

Second QUARTER 2026 NET INCOME OF $20.9 MILLION

MINNEAPOLIS, MN (July 29, 2026) – Alerus Financial Corporation (Nasdaq: ALRS), or the Company, reported net income of $20.9 million for the second quarter of 2026, or $0.81 per diluted common share, compared to net income of $23.0 million, or $0.89 per diluted common share, for the first quarter of 2026, and net income of $20.3 million, or $0.78 per diluted common share, for the second quarter of 2025.

CEO Comments

President and Chief Executive Officer Katie O'Neill Lorenson said, “Our second quarter results demonstrate the continued strength of Alerus' diversified business model and the strategic investments and transformation efforts we have made over the past several years. Earnings per diluted common share of $0.81 and return on average tangible common equity(1) of 19.33% reflect disciplined execution across the franchise, including expanding net interest margin, growing fee-based revenue, and continued improvement in credit quality.

The strength of our business model is evident in our ability to generate balanced growth across multiple revenue streams. Noninterest income again represented more than 40% of total revenue, while our banking franchise continued to benefit from disciplined balance sheet management and prudent risk oversight. These results reflect the resilience of our earnings profile and the advantages of a strategy designed to create long-term value.

Most importantly, these results are a testament to the talented team we have built at Alerus and their unwavering focus on serving our clients, communities, and one another. Their consistent execution, collaboration, and focus on doing the right thing continue to translate our strategy into results. As we look ahead, we remain focused on executing our long-term growth strategy, investing in our people and capabilities, and building on the momentum that positions Alerus to deliver sustainable value for our shareholders.”

Second Quarter Highlights

■

Earnings per diluted common share of $0.81.

■

Return on average total assets of 1.60%.

■

Return on average tangible common equity(1) of 19.33%.

■

Noninterest income was $32.9 million in the second quarter of 2026, an increase of 6.8% from the first quarter of 2026. Noninterest income represented 40.85% of total revenue in the second quarter of 2026.

■

Net interest margin (on a tax-equivalent basis)(1) was 3.97%, an increase of 20 basis points compared to 3.77% in the first quarter of 2026.

■

Net interest income was $47.7 million in the second quarter of 2026, an increase of 6.2% compared to $44.9 million in the first quarter of 2026, and an increase of 10.9% compared to $43.0 million in the second quarter of 2025.

■

Total assets under administration/management exceeded $50.4 billion, a 7.0% increase from the first quarter of 2026.

■

Nonperforming assets were $17.1 million as of June 30, 2026, a decrease of $36.9 million, or 68.3%, from $54.0 million as of March 31, 2026. Nonperforming assets to total assets declined to 0.32% in the second quarter of 2026 compared to 1.02% the first quarter of 2026.

■

Repurchased $6.8 million of the Company's outstanding common stock at an average per share price of $27.10, reducing common shares outstanding by 250,000 shares at quarter-end.

■

In the first six months of 2026, the Company returned $23.6 million to shareholders in the form of dividends and share repurchases.

■

Increased quarterly dividend by 4.76% over the first quarter of 2026 to $0.22 per share, continuing the Company's decades-long history of increasing its dividend.

■

Tangible book value per common share(1) was $18.73 as of June 30, 2026, an increase of 16.26% from $16.11 as of June 30, 2025.

■

Tangible common equity to tangible assets ratio(1) was 9.05% as of June 30, 2026, an increase from 7.87% as of June 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

Six months ended

June 30,

March 31,

June 30,

(dollars and shares in thousands, except per share data)

2026

2025

2026

2025

Performance Ratios

Return on average total assets

1.60

1.79

1.53

1.69

1.28

Adjusted return on average total assets (1)

1.58

1.79

1.41

1.68

1.26

Return on average common equity

14.56

16.44

15.82

15.49

13.37

Return on average tangible common equity (1)

19.33

21.85

22.65

20.57

19.66

Adjusted return on average tangible common equity (1)

19.04

21.96

21.02

20.48

19.36

Noninterest income as a % of revenue

40.85

40.72

42.47

40.78

41.37

Adjusted noninterest income as a % of revenue (1)

40.36

40.73

40.86

40.54

40.52

Net interest margin (on a tax-equivalent basis)(1)

3.97

3.77

3.51

3.87

3.46

Efficiency ratio (1)

62.53

63.39

60.66

62.95

64.54

Adjusted efficiency ratio (1)

62.76

63.20

62.35

62.97

64.55

Net charge-offs (recoveries) to average loans (1)

0.26

0.71

0.37

0.48

0.21

Dividend payout ratio

27.16

23.60

26.92

25.29

31.54

Per Common Share

Earnings per common share - basic

0.82

0.90

0.79

1.72

1.31

Earnings per common share - diluted

0.81

0.89

0.78

1.70

1.30

Adjusted earnings per common share - diluted (1)

0.80

0.89

0.72

1.69

1.27

Dividends declared per common share

0.22

0.21

0.43

0.41

Book value per common share

23.34

22.79

21.00

Tangible book value per common share (1)

18.73

18.15

16.11

Average common shares outstanding - basic

25,081

25,380

25,368

25,230

25,363

Average common shares outstanding - diluted

25,395

25,679

25,714

25,537

25,683

Other Data

Retirement and benefit services assets under administration/management

45,163,767

42,273,839

42,451,544

Wealth advisory services assets under administration/management

5,195,511

4,792,609

4,613,102

Mortgage originations

113,450

94,434

134,634

207,884

205,227

(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 second quarter of 2026 was $47.7 million, a $2.8 million, or 6.2%, increase from the first quarter of 2026. Interest income increased $3.6 million, or 5.4%, primarily due to higher interest income on loans from a one-time $1.6 million interest income recovery on a nonaccrual loan resolution, higher purchase accounting accretion, and higher loan yields. Interest expense increased $0.8 million, or 3.8%, from the first quarter of 2026, as average rates paid on borrowings increased following a refinancing of subordinated debt in the first quarter and higher average short-term borrowing balances.

Net interest income increased $4.7 million, or 10.9%, from $43.0 million for the second quarter of 2025. Interest income increased $0.2 million, or 0.3%, from the second quarter of 2025, primarily driven by higher interest income on investment securities following the strategic balance sheet repositioning in the fourth quarter of 2025, partially offset by less purchase accounting accretion. Interest expense decreased $4.5 million, or 16.3%, from the second 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 3.97% for the second quarter of 2026, a 20 basis point increase from 3.77% for the first quarter of 2026, and a 46 basis point increase from 3.51% for the second quarter of 2025. The quarter over quarter increase was mainly attributable to a one-time $1.6 million interest income recovery on a nonaccrual loan resolution, higher purchase accounting accretion, and higher loan yields, partially offset by the impact of the first quarter subordinated debt refinancing and higher borrowing balances. The increase from the second quarter of 2025 was primarily driven by lower cost of funds and higher yields on investment securities, partially offset by less purchase accounting accretion.

Noninterest Income

Noninterest income for the second quarter of 2026 was $32.9 million, a $2.1 million, or 6.8%, increase from the first quarter of 2026. This increase was driven by an increase in other noninterest income and wealth advisory services revenue, partially offset by a decrease in mortgage banking revenue. Other noninterest income increased $1.9 million, or 106.9%, from the first quarter of 2026, primarily driven by a gain on the sale of a property in the Rochester, Minnesota market, increased swap fee income, and mutual fund investment gains related to the underlying assets of the deferred compensation plans. Wealth advisory services revenue increased $0.5 million, or 6.5%, from the first quarter of 2026, primarily driven by an increase in both asset-based fees tied to equity markets and transaction-based fees. Mortgage banking revenue decreased $0.3 million, or 9.6%, from the first quarter of 2026, primarily driven by lower gain on sale margins from product mix and increased competition.

Noninterest income for the second quarter of 2026 increased by $1.2 million, or 3.7%, from the second quarter of 2025. This increase was driven by an increase in other noninterest income, retirement and benefit services revenue, and service charges on deposit accounts, partially offset by a decrease in the gain on sale of non-mortgage loans. Other noninterest income increased $1.7 million, or 86.1%, compared to the second quarter of 2025, primarily driven by a gain on the sale of a property in the Rochester, Minnesota market, increased swap fee income, and mutual fund investment gains related to the underlying assets of the deferred compensation plans. Retirement and benefit services revenue increased $1.3 million, or 8.3%, compared to the second quarter of 2025, primarily driven by recurring annual income. Service charges on deposit accounts increased $0.4 million, or 62.6%, compared to the second 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. Gain on sale of non-mortgage loans decreased $2.1 million, or 100.0%, compared to the second quarter of 2025, due to a $2.1 million gain on the sale of a PCD hospitality loan during the second quarter of 2025.

(1) Represents a non-GAAP financial measure. See “Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures.”

Noninterest Expense

Noninterest expense for the second quarter of 2026 was $52.9 million, a $2.5 million, or 4.9%, increase from the first quarter of 2026, primarily due to increases in compensation expense and other noninterest expense, partially offset by a decrease in business services, software, and technology expense. Compensation expense increased $2.1 million, or 8.6%, from the first quarter of 2026, primarily due to annual merit increases, talent additions to the Arizona commercial banking team, and increases in deferred compensation plan liabilities driven by mutual fund investment gains related to the underlying assets of the plans. Other noninterest expense increased $0.8 million, or 39.3%, from the first quarter of 2026, due to an increase in other real estate owned balances and related holding costs, as well as increased corporate insurance costs. Business services, software, and technology expense decreased $0.4 million, or 6.8%, from the first quarter of 2026, primarily due to a decrease in core processing expenses, as well as a decrease in IT hardware expenses.

Noninterest expense for the second quarter of 2026 increased $4.4 million, or 9.2%, from $48.4 million in the second quarter of 2025, primarily due to increases in compensation expense, professional fees and assessments, and other noninterest expense. Compensation expense increased $1.8 million, or 7.4%, from the second quarter of 2025, primarily due to annual merit increases, as well as increases in deferred compensation plan liabilities driven by mutual fund investment gains related to the underlying assets of the plans. Other noninterest expense increased $1.5 million, or 104.3%, from the second quarter of 2025, due to an increase in other real estate owned balances and related holding costs, as well as increased corporate insurance costs. Professional fees and assessments increased $1.4 million, or 61.7%, from the second 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, as well as an increase in legal fees.

Financial Condition

Total assets were $5.3 billion as of June 30, 2026, an increase of $58.6 million, or 1.1%, from December 31, 2025. The increase was primarily due to a $41.8 million increase in cash and cash equivalents, a $20.1 million increase in available-for-sale investment securities, a $8.5 million increase in other assets, and a $4.8 million increase in loans held for sale, partially offset by a decrease of $13.8 million in loans held for investment.

Loans Held for Investment

Total loans held for investment were $4.0 billion as of June 30, 2026, a decrease of $13.8 million, or 0.3%, from December 31, 2025. The decrease was primarily driven by a $41.6 million decrease in consumer loans, partially offset by a $27.9 million increase in commercial loans.

The following table presents the composition of our loans held for investment portfolio as of the dates indicated:

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2026

2025

Commercial

Commercial and business lending

Commercial and industrial

759,959

747,447

736,833

702,135

675,892

Commercial real estate − Owner occupied

622,241

444,276

427,260

435,320

440,170

Total commercial and business lending

1,382,200

1,191,723

1,164,093

1,137,455

1,116,062

Investor commercial real estate

Construction, land and development

79,850

146,897

246,238

349,768

352,749

Multifamily

361,875

392,097

383,505

374,761

333,307

Non-owner occupied

893,367

976,339

875,862

865,785

887,643

Total investor commercial real estate

1,335,092

1,515,333

1,505,605

1,590,314

1,573,699

Agricultural

Land

54,202

54,028

64,799

65,900

66,395

Production

53,367

50,983

62,500

63,051

67,931

Total agricultural

107,569

105,011

127,299

128,951

134,326

Total commercial

2,824,861

2,812,067

2,796,997

2,856,720

2,824,087

Consumer

Residential real estate

First lien

828,936

851,551

874,737

894,402

901,738

Construction

31,202

32,872

33,703

34,124

35,754

HELOC

273,124

262,131

260,883

234,681

200,624

Junior lien

31,941

35,783

36,844

40,434

41,450

Total residential real estate

1,165,203

1,182,337

1,206,167

1,203,641

1,179,566

Other consumer

44,180

40,340

44,858

41,715

41,003

Total consumer

1,209,383

1,222,677

1,251,025

1,245,356

1,220,569

Total loans

4,034,244

4,034,744

4,048,022

4,102,076

4,044,656

Deposits

Total deposits were $4.2 billion as of June 30, 2026, a decrease of $0.1 million, or 0.0%, from December 31, 2025. Noninterest-bearing deposits decreased $48.3 million and interest-bearing deposits increased $48.2 million from December 31, 2025. The decrease in total deposits was due primarily to seasonal outflows from public funds depositors.

The following table presents the composition of the Company’s deposit portfolio as of the dates indicated:

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2026

2025

Noninterest-bearing demand

759,640

857,625

807,896

776,791

790,300

Interest-bearing

Interest-bearing demand

1,429,951

1,449,156

1,296,315

1,256,687

1,214,597

Savings accounts

173,255

178,347

173,759

174,113

175,586

Money market savings

1,252,823

1,291,794

1,337,491

1,460,006

1,358,516

Time deposits

576,228

570,960

576,542

745,056

798,469

Total interest-bearing

3,432,257

3,490,257

3,384,107

3,635,862

3,547,168

Total deposits

4,191,897

4,347,882

4,192,003

4,412,653

4,337,468

Asset Quality

Total nonperforming assets were $17.1 million as of June 30, 2026, a decrease of $52.3 million, or 75.3%, from December 31, 2025. As of June 30, 2026, the allowance for credit losses on loans was $48.4 million, or 1.20% 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

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2026

2025

Nonaccrual loans

7,105

53,881

69,065

59,644

51,276

Accruing loans 90+ days past due

436

—

202

Total nonperforming loans

7,541

53,881

69,065

59,644

51,478

OREO and repossessed assets

9,571

126

308

467

751

Total nonperforming assets

17,112

54,007

69,373

60,111

52,229

Criticized loans

83,090

132,459

149,162

191,331

212,592

Net charge-offs (recoveries)

2,575

7,027

(311

)

(1,715

)

3,767

Net charge-offs (recoveries) to average loans (1)

0.26

0.71

(0.03

(0.17

0.37

Nonperforming loans to total loans

0.19

1.34

1.71

1.45

1.27

Nonperforming assets to total assets

0.32

1.02

1.33

1.13

0.98

Criticized loans to total loans

2.06

3.28

3.68

4.66

5.26

Allowance for credit losses on loans to total loans

1.20

1.25

1.53

1.51

1.47

Allowance for credit losses on loans to nonperforming loans

641.31

93.73

89.65

104.16

115.15

For the second quarter of 2026, the Company had net charge-offs of $2.6 million, compared to net charge-offs of $7.0 million for the first quarter of 2026 and net charge-offs of $3.8 million for the second quarter of 2025. The quarter over quarter decrease in net charge-offs was primarily due to charge-offs of $6.4 million in the first quarter of 2026 related to one non-accruing long-term commercial and industrial client relationship. This relationship carried a specific reserve of $9.0 million as of December 31, 2025. Of the $2.6 million of net-charge offs recognized in the second quarter of 2026, $1.4 million was attributable to this same relationship. As of June 30, 2026, the relationship had a remaining reserve of $1.0 million, which represented approximately 63.3% 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 June 30, 2026 was primarily the result of problem loan resolution.

The Company recorded a provision for credit losses of $0.5 million for the second quarter of 2026, compared to a provision release of $4.9 million for the first quarter of 2026, and no provision for credit losses for the second quarter of 2025.

OREO and repossessed assets were $9.6 million at June 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 $36.9 million as of June 30, 2026, $43.8 million as of December 31, 2025, and $58.0 million as of June 30, 2025.

Capital

Total stockholders’ equity was $583.1 million as of June 30, 2026, an increase of $18.2 million from December 31, 2025. The increase was primarily driven by an increase in retained earnings of $33.0 million, partially offset by a decrease in additional paid-in capital of $11.5 million and a decrease in accumulated other comprehensive income of $2.8 million. Tangible book value per common share(1) increased to $18.73 as of June 30, 2026, from $17.55 as of December 31, 2025. Tangible common equity to tangible assets(1) increased to 9.05% as of June 30, 2026, from 8.72% as of December 31, 2025. Common equity tier 1 capital to risk weighted assets increased to 10.81% as of June 30, 2026, from 10.28% as of December 31, 2025.

During the second quarter of 2026, the Company repurchased approximately $6.8 million of its outstanding common stock at an average per share price of $27.10, which reduced common shares outstanding by 250,000 at quarter-end.

The following table presents our capital ratios as of the dates indicated:

June 30,

December 31,

June 30,

2026

2025

Capital Ratios(1)

Alerus Financial Corporation Consolidated

Common equity tier 1 capital to risk weighted assets

10.81

10.28

10.54

Tier 1 capital to risk weighted assets

11.02

10.48

10.74

Total capital to risk weighted assets

13.34

12.87

13.10

Tier 1 capital to average assets

9.49

8.86

9.16

Tangible common equity / tangible assets (2)

9.05

8.72

7.87

Alerus Financial, N.A.

Common equity tier 1 capital to risk weighted assets

10.92

10.41

10.78

Tier 1 capital to risk weighted assets

10.92

10.41

10.78

Total capital to risk weighted assets

12.11

11.66

12.04

Tier 1 capital to average assets

9.26

8.62

9.34

(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, July 30, 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 26 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 Phoenix 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.

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; 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; 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.

Alerus Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(dollars in thousands, except share and per share data)

June 30,

December 31,

2026

2025

Assets

(Unaudited)

Cash and cash equivalents

109,012

67,192

Investment securities

Trading, at fair value

501

1,758

Available-for-sale, at fair value

534,191

514,095

Held-to-maturity, at amortized cost (with an allowance for credit losses on investments of $115 and $123, respectively)

242,516

254,448

Loans held for sale

26,713

21,934

Loans held for investment

4,034,244

4,048,022

Allowance for credit losses on loans

(48,361

)

(61,915

)

Net loans

3,985,883

3,986,107

Land, premises and equipment, net

43,941

43,253

Operating lease right-of-use assets

32,105

28,761

Accrued interest receivable

20,213

21,742

Bank-owned life insurance

41,894

39,307

Goodwill

85,634

Other intangible assets

29,422

33,371

Servicing rights

7,022

6,383

Deferred income taxes, net

18,114

23,080

Other assets

111,557

103,019

Total assets

5,288,718

5,230,084

Liabilities and Stockholders’ Equity

Deposits

Noninterest-bearing

759,640

807,896

Interest-bearing

3,432,257

3,384,107

Total deposits

4,191,897

4,192,003

Short-term borrowings

345,000

308,800

Long-term debt

59,239

59,182

Operating lease liabilities

42,752

36,282

Accrued expenses and other liabilities

66,687

68,883

Total liabilities

4,705,575

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: 24,985,815 and 25,406,278 issued and outstanding

24,986

25,406

Additional paid-in capital

260,066

271,609

Retained earnings

303,070

270,075

Accumulated other comprehensive loss

(4,979

)

(2,156

)

Total stockholders’ equity

583,143

564,934

Total liabilities and stockholders’ equity

5,288,718

5,230,084

Alerus Financial Corporation and Subsidiaries

Consolidated Statements of Income

(dollars and shares in thousands, except per share data)

Three months ended

Six months ended

June 30,

March 31,

June 30,

2026

2025

2026

2025

Interest Income

(Unaudited)

Loans, including fees

62,214

58,621

63,853

120,835

125,348

Investment securities

Taxable

7,258

7,104

5,310

14,363

11,017

Exempt from federal income taxes

155

158

160

312

320

Other

999

1,094

1,101

2,093

1,920

Total interest income

70,626

66,977

70,424

137,603

138,605

Interest Expense

Deposits

18,938

19,074

22,758

38,012

46,293

Short-term borrowings

2,935

2,357

3,982

5,292

6,821

Long-term debt

1,041

634

652

1,676

1,302

Total interest expense

22,914

22,065

27,392

44,980

54,416

Net interest income

47,712

44,912

43,032

92,623

84,189

Provision for (recovery of) credit losses

495

(4,883

)

—

(4,388

)

863

Net interest income after provision for (recovery of) credit losses

47,217

49,795

43,032

97,011

83,326

Noninterest Income

Retirement and benefit services

17,347

17,406

16,024

34,754

32,130

Wealth advisory services

7,705

7,237

7,363

14,942

14,267

Mortgage banking

3,195

3,535

3,651

6,730

5,177

Service charges on deposit accounts

1,106

933

680

2,039

1,330

Gain on sale of non-mortgage loans

—

2,115

—

2,115

Other

3,592

1,736

1,930

5,327

4,376

Total noninterest income

32,945

30,847

31,763

63,792

59,395

Noninterest Expense

Compensation

26,155

24,087

24,343

50,242

47,304

Employee taxes and benefits

6,755

6,640

6,633

13,395

14,396

Occupancy and equipment expense

3,493

3,427

2,559

6,919

5,466

Business services, software and technology expense

5,440

5,839

5,868

11,279

11,620

Intangible amortization expense

1,974

2,710

3,949

5,419

Professional fees and assessments

3,781

3,800

2,339

7,581

5,335

Marketing and business development

869

861

787

1,730

1,752

Supplies and postage

540

607

490

1,146

1,121

Travel

357

361

347

718

634

Mortgage and lending expenses

614

710

940

1,323

1,476

Other

2,905

2,086

1,422

4,992

4,282

Total noninterest expense

52,883

50,392

48,438

103,274

98,805

Income before income tax expense

27,279

30,250

26,357

57,529

43,916

Income tax expense

6,414

7,279

6,104

13,693

10,349

Net income

20,865

22,971

20,253

43,836

33,567

Per Common Share Data

Earnings per common share

0.82

0.90

0.79

1.72

1.31

Diluted earnings per common share

0.81

0.89

0.78

1.70

1.30

Dividends declared per common share

0.22

0.21

0.43

0.41

Average common shares outstanding

25,081

25,380

25,368

25,230

25,363

Diluted average common shares outstanding

25,395

25,679

25,714

25,537

25,683

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)

June 30,

March 31,

June 30,

2026

2025

Tangible Common Equity to Tangible Assets

Total common stockholders’ equity

583,143

574,693

533,155

Less: Goodwill

85,634

Less: Other intangible assets

29,422

31,397

38,462

Tangible common equity (a)

468,087

457,662

409,059

Total assets

5,288,718

5,287,971

5,323,822

Less: Goodwill

85,634

Less: Other intangible assets

29,422

31,397

38,462

Tangible assets (b)

5,173,662

5,170,940

5,199,726

Tangible common equity to tangible assets (a)/(b)

9.05

8.85

7.87

Tangible Book Value Per Common Share

Tangible common equity (a)

468,087

457,662

409,059

Total common shares issued and outstanding (c)

24,986

25,214

25,389

Tangible book value per common share (a)/(c)

18.73

18.15

16.11

Three months ended

Six months ended

June 30,

March 31,

June 30,

2026

2025

2026

2025

Return on Average Tangible Common Equity

Net income

20,865

22,971

20,253

43,836

33,567

Add: Intangible amortization expense (net of tax) (1)

1,559

2,141

3,120

4,281

Net income, excluding intangible amortization (d)

22,424

24,530

22,394

46,956

37,848

Average total equity

574,862

566,563

513,606

570,735

506,470

Less: Average goodwill

85,634

Less: Average other intangible assets (net of tax) (1)

24,003

25,664

31,436

24,829

32,571

Average tangible common equity (e)

465,225

455,265

396,536

460,272

388,265

Return on average tangible common equity (d)/(e)

19.33

21.85

22.65

20.57

19.66

Efficiency Ratio

Noninterest expense

52,883

50,392

48,438

103,274

98,805

Less: Intangible amortization expense

1,974

2,710

3,949

5,419

Noninterest expense excluding intangible amortization (f)

50,909

48,418

45,728

99,325

93,386

Net interest income (v)

47,712

44,912

43,032

92,623

84,189

Noninterest income

32,945

30,847

31,763

63,792

59,395

Tax equivalent adjustment for loans and securities

755

619

592

1,374

1,110

Total tax-equivalent revenue (g)

81,412

76,378

75,387

157,789

144,694

Efficiency ratio (f)/(g)

62.53

63.39

60.66

62.95

64.54

Pre-Provision Net Revenue

Net interest income (v)

47,712

44,912

43,032

92,623

84,189

Add: Noninterest income

32,945

30,847

31,763

63,792

59,395

Less: Noninterest expense

52,883

50,392

48,438

103,274

98,805

Pre-provision net revenue

27,774

25,367

26,357

53,141

44,779

Adjusted Noninterest Income

Noninterest income

32,945

30,847

31,763

63,792

59,395

Less: Adjusted noninterest income items

Net gain on sale of loans

—

2,115

—

2,115

Net gain (loss) on sale/disposal of premises and equipment

653

(21

)

(84

)

632

(84

)

Total adjusted noninterest income (loss) items (h)

653

(21

)

2,031

632

2,031

Adjusted noninterest income (i)

32,292

30,868

29,732

63,160

57,364

Adjusted Noninterest Income as a Percentage of Revenue

Adjusted noninterest income (i)

32,292

30,868

29,732

63,160

57,364

Net interest income (v)

47,712

44,912

43,032

92,623

84,189

Adjusted revenue (w)

80,004

75,780

72,764

155,783

141,553

Adjusted noninterest income as a percentage of revenue (i)/(w)

40.36

40.73

40.86

40.54

40.52

Adjusted Noninterest Expense

Noninterest expense

52,883

50,392

48,438

103,274

98,805

Less: Adjusted noninterest expense items

HMNF merger- and acquisition-related expenses

(34

)

(27

)

298

Severance and signing bonus expense

216

167

(23

)

383

1,004

Total adjusted noninterest expense items (j)

222

133

(12

)

356

1,302

Adjusted noninterest expense (k)

52,661

50,259

48,450

102,918

97,503

(1)

Items calculated after-tax utilizing a marginal income tax rate of 21.0%.

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

Six months ended

June 30,

March 31,

June 30,

2026

2025

2026

2025

Adjusted Pre-Provision Net Revenue

Net interest income (v)

47,712

44,912

43,032

92,623

84,189

Add: Adjusted noninterest income (i)

32,292

30,868

29,732

63,160

57,364

Less: Adjusted noninterest expense (k)

52,661

50,259

48,450

102,918

97,503

Adjusted pre-provision net revenue

27,343

25,521

24,314

52,865

44,050

Adjusted Efficiency Ratio

Adjusted noninterest expense (k)

52,661

50,259

48,450

102,918

97,503

Less: Intangible amortization expense

1,974

2,710

3,949

5,419

Adjusted noninterest expense for efficiency ratio (l)

50,687

48,285

45,740

98,969

92,084

Tax-equivalent revenue

Net interest income (v)

47,712

44,912

43,032

92,623

84,189

Add: Adjusted noninterest income (i)

32,292

30,868

29,732

63,160

57,364

Add: Tax equivalent adjustment for loans and securities (1)

755

619

592

1,374

1,110

Total tax-equivalent revenue (m)

80,759

76,399

73,356

157,157

142,663

Adjusted efficiency ratio (l)/(m)

62.76

63.20

62.35

62.97

64.55

Adjusted Net Income

Net income

20,865

22,971

20,253

43,836

33,567

Less: Adjusted noninterest (loss) income items (net of tax) (1) (h)

516

(17

)

1,604

499

1,604

Add: Adjusted noninterest expense items (net of tax) (1) (j)

175

105

)

281

1,029

Adjusted net income (n)

20,524

23,093

18,640

43,618

32,992

Adjusted Return on Average Total Assets

Average total assets (o)

5,226,319

5,218,515

5,302,728

5,222,438

5,287,622

Adjusted return on average total assets (n)/(o)

1.58

1.79

1.41

1.68

1.26

Adjusted Return on Average Tangible Common Equity

Adjusted net income (n)

20,524

23,093

18,640

43,618

32,992

Add: Intangible amortization expense (net of tax) (1)

1,559

2,141

3,120

4,281

Adjusted net income, excluding intangible amortization (p)

22,083

24,652

20,781

46,738

37,273

Average total equity

574,862

566,563

513,606

570,735

506,470

Less: Average goodwill

85,634

Less: Average other intangible assets (net of tax)

24,003

25,664

31,436

24,829

32,571

Average tangible common equity (q)

465,225

455,265

396,536

460,272

388,265

Adjusted return on average tangible common equity (p)/(q)

19.04

21.96

21.02

20.48

19.36

Adjusted Earnings Per Common Share - Diluted

Adjusted net income (n)

20,524

23,093

18,640

43,618

32,992

Less: Dividends and undistributed earnings allocated to participating securities

192

206

205

400

297

Adjusted net income available to common stockholders (r)

20,332

22,887

18,435

43,218

32,695

Weighted-average common shares outstanding for diluted earnings per share (s)

25,395

25,679

25,714

25,537

25,683

Adjusted earnings per common share - diluted (r)/(s)

0.80

0.89

0.72

1.69

1.27

Net Charge-Offs (Recoveries) to Average Loans

Net charge-offs (recoveries) (t)

2,575

7,027

3,767

9,602

4,174

Average total loans (u)

4,032,142

4,029,719

4,079,084

4,030,939

4,051,129

Net charge-offs (recoveries) to average loans (t)/(u)

0.26

0.71

0.37

0.48

0.06

Net Interest Margin (on a Tax-Equivalent Basis)

Net interest income (v)

47,712

44,912

43,032

92,623

84,189

Add: Tax equivalent adjustment for loans and securities

755

619

592

1,374

1,110

Net interest income (on a tax-equivalent basis) (1) (y)

48,467

45,531

43,624

93,997

85,299

Average interest earning assets (x)

4,896,740

4,901,399

4,988,946

4,899,058

4,969,446

Net interest margin (on a tax-equivalent basis) (1) (y)/(x)

3.97

3.77

3.51

3.87

3.46

(1)

Items calculated after-tax utilizing a marginal income tax rate of 21.0%.

Alerus Financial Corporation and Subsidiaries

Analysis of Average Balances, Yields, and Rates (unaudited)

(dollars in thousands)

Three months ended

Six months ended

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

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

45,777

4.11

60,675

4.26

35,951

5.51

53,185

4.20

34,695

5.14

Investment securities (1)

773,692

3.86

771,885

3.84

823,463

2.69

772,793

3.85

841,479

2.74

Loans held for sale

18,885

4.50

15,617

4.70

22,302

4.44

17,260

4.58

16,856

4.74

Loans

Commercial and industrial

779,471

7.07

723,803

7.10

653,635

7.51

751,791

7.09

655,725

7.41

CRE − Owner occupied

502,476

6.19

430,332

6.14

442,796

6.29

466,603

6.17

411,546

6.25

CRE − Construction, land and development

103,618

13.08

211,754

5.17

337,867

5.97

157,388

7.79

340,279

5.90

CRE − Multifamily

394,683

6.05

393,412

5.80

347,277

6.72

394,051

5.93

355,715

6.53

CRE − Non-owner occupied (2)

922,958

6.08

914,642

5.97

955,134

6.52

918,823

6.03

957,629

6.59

Agricultural − Land

53,823

5.78

59,787

6.00

66,044

5.76

56,789

5.89

66,633

5.80

Agricultural − Production

53,351

6.95

58,833

6.98

67,412

7.32

56,077

6.96

64,190

7.31

RRE − First lien

838,819

4.93

865,077

4.93

898,903

4.92

851,876

4.93

899,367

4.85

RRE − Construction

34,981

6.63

32,906

6.29

39,682

7.62

33,949

6.46

38,305

8.00

RRE − HELOC

271,254

6.02

261,586

6.03

188,494

6.99

266,447

6.02

178,601

7.05

RRE − Junior lien

32,676

6.53

36,306

6.42

42,435

6.37

34,481

6.47

43,261

6.31

Other consumer

44,032

6.51

41,281

6.31

39,405

7.01

42,664

6.41

39,878

7.01

Total loans (1)

4,032,142

6.24

4,029,719

5.94

4,079,084

6.31

4,030,939

6.09

4,051,129

6.27

Federal Reserve/FHLB stock

26,244

8.10

23,503

7.87

28,146

8.65

24,881

7.99

25,287

8.26

Total interest earning assets

4,896,740

5.85

4,901,399

5.59

4,988,946

5.71

4,899,058

5.72

4,969,446

5.67

Noninterest earning assets

329,579

317,116

313,782

323,380

318,176

Total assets

5,226,319

5,218,515

5,302,728

5,222,438

5,287,622

Interest-Bearing Liabilities

Interest-bearing demand deposits

1,378,394

1.68

1,367,270

1.64

1,247,241

1.80

1,372,863

1.66

1,247,482

1.80

Money market and savings deposits

1,441,099

2.34

1,503,798

2.37

1,561,977

2.77

1,472,276

2.36

1,576,218

2.83

Time deposits

571,276

3.34

569,065

3.40

687,428

3.72

570,176

3.37

687,995

3.82

Fed funds purchased

74,104

3.85

35,628

4.01

149,046

4.63

54,972

3.90

99,714

4.64

FHLB short-term advances

226,703

3.93

204,444

3.98

200,000

4.54

215,635

3.95

200,000

4.56

Long-term debt

59,225

7.04

59,195

4.34

59,112

4.42

59,210

5.70

59,098

4.44

Total interest-bearing liabilities

3,750,801

2.45

3,739,400

2.39

3,904,804

2.81

3,745,132

2.42

3,870,507

2.84

Noninterest-Bearing Liabilities and Stockholders' Equity

Noninterest-bearing deposits

790,088

798,579

808,629

794,310

829,044

Other noninterest-bearing liabilities

110,568

113,973

75,689

112,261

81,601

Stockholders’ equity

574,862

566,563

513,606

570,735

506,470

Total liabilities and stockholders’ equity

5,226,319

5,218,515

5,302,728

5,222,438

5,287,622

Net interest rate spread

3.40

3.20

2.90

3.30

2.83

Net interest margin (on a tax-equivalent basis) (1)

3.97

3.77

3.51

3.87

3.46

(1)

Taxable-equivalent adjustment was calculated utilizing a marginal income tax rate of 21.0%.

(2)

Average balances and average yield/rate includes non-mortgage loans sold and held for sale for the three months ended December 31, 2025.

EX-99.2 — EXHIBIT 99.2

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Jul. 29, 2026

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8-K

Document, Period End Date

Jul. 29, 2026

Entity, Incorporation, State or Country Code

Entity, File Number

001-39036

Entity, Tax Identification Number

45-0375407

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401 Demers Avenue

Entity, Address, City or Town

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City Area Code

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Local Phone Number

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