Form 8-K

8-K — ALERUS FINANCIAL CORP

Accession: 0001437749-26-033799

Filed: 2026-10-28

Period: 2026-10-28

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 — alrs20260807_8k.htm (Primary)

EX-99.1 — EXHIBIT 99.1 (ex_1001094.htm)

EX-99.2 — EXHIBIT 99.2 (ex_1001095.htm)

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8-K — FORM 8-K

8-K (Primary)

Filename: alrs20260807_8k.htm · Sequence: 1

alrs20260807_8k.htm

false

0000903419

2026-10-28

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): October 28, 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

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 October 28, 2026, Alerus Financial Corporation (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 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 October 28, 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 October 28, 2026

99.2

Investor Presentation of Alerus Financial Corporation, dated October 28, 2026

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: October 28, 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_1001094.htm · Sequence: 2

ex_1001094.htm

Exhibit 99.1

Alan A. Villalon, Chief Financial Officer

952.417.3733 (Office)

FOR RELEASE (10.28.2026)

ALERUS FINANCIAL CORPORATION REPORTS

Third QUARTER 2026 NET INCOME OF $19.2 MILLION

MINNEAPOLIS, MN (October 28, 2026) – Alerus Financial Corporation (Nasdaq: ALRS), or the Company, reported net income of $19.2 million for the third quarter of 2026, or $0.76 per diluted common share, compared to net income of $20.9 million, or $0.81 per diluted common share, for the second quarter of 2026, and net income of $16.9 million, or $0.65 per diluted common share, for the third quarter of 2025.

CEO Comments

President and Chief Executive Officer Katie O'Neill Lorenson said, "Our third quarter results demonstrate the continued momentum of the Alerus franchise, with strong revenue growth across our diversified business model and strategic organic growth in our banking franchise. Net interest income increased 8.3% from the prior year, while noninterest income grew 16.7%, reflecting the complementary strength of our banking, retirement and benefit services, and wealth advisory businesses.

That growth was driven by the continued transformation of our banking franchise toward commercial and business banking. Commercial and business lending grew 36.5% from a year ago and now represents 37.1% of our loan portfolio, up from 27.7% a year ago. In the third quarter, total loans increased $150.5 million, or 3.7%, and deposits increased $111.2 million, or 2.7%, with noninterest income representing 42.4% of total revenue.

We also maintained favorable credit quality, with nonperforming assets and criticized loans continuing to improve and net recoveries during the quarter. Our strong capital position and 10.9% year-over-year growth in tangible book value per share give us the capacity to keep investing in organic growth while returning capital to shareholders, with $37.2 million returned through dividends and share repurchases in the first nine months of the year.

Most importantly, I want to thank our team members. Their talent, collaboration, and focus on helping clients achieve their goals turn our strategy into results, and we are confident in our continued ability to create sustainable value for clients, communities, team members, and shareholders."

Third Quarter Highlights

■

Earnings per diluted common share of $0.76.

■

Return on average total assets of 1.45%.

■

Return on average tangible common equity(1) of 17.35%.

■

Noninterest income was $34.4 million in the third quarter of 2026, an increase of 4.3% from the second quarter of 2026. Noninterest income represented 42.4% of total revenue in the third quarter of 2026.

■

Net interest margin (on a tax-equivalent basis)(1) was 3.84% and net interest income was $46.7 million in the third quarter of 2026.

■

Total loans were $4.2 billion as of September 30, 2026, an increase of $150.5 million, or 3.7%, from June 30, 2026.

■

Total deposits were $4.3 billion as of September 30, 2026, an increase of $111.2 million, or 2.7%, from June 30, 2026.

■

Nonperforming assets were $16.4 million as of September 30, 2026, a decrease of $0.7 million, or 4.3%, from $17.1 million as of June 30, 2026.

■

Net recoveries to average loans was 0.10%.

■

Repurchased $8.2 million of the Company's outstanding common stock at an average per share price of $32.75, reducing common shares outstanding by 250,000 shares at quarter-end.

■

In the first nine months of 2026, the Company returned $37.2 million to shareholders in the form of dividends and share repurchases.

■

In the first nine months of 2026, adjusted pre-provision net revenue(1) was $78.7 million, an 18.9% increase over the same time period in the prior year.

■

Total assets under management/administration in the combined retirement and benefit and wealth segments were $50.1 billion, a 2.7% increase from September 30, 2025.

■

Tangible book value per common share(1) was $18.74 as of September 30, 2026, an increase of 10.9% from $16.90 as of September 30, 2025.

■

Tangible common equity to tangible assets ratio(1) was 8.77% as of September 30, 2026, an increase from 8.24% as of September 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

Nine months ended

September 30,

June 30,

September 30,

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

2026

2025

2026

2025

Performance Ratios

Return on average total assets

1.45

1.60

1.27

1.61

1.28

Adjusted return on average total assets (1)

1.37

1.58

1.28

1.58

1.27

Return on average common equity

13.07

14.56

12.80

14.66

13.17

Return on average tangible common equity (1)

17.35

19.33

18.48

19.46

19.25

Adjusted return on average tangible common equity (1)

16.43

19.04

18.55

19.08

Noninterest income as a % of revenue

42.37

40.85

40.56

41.32

41.09

Adjusted noninterest income as a % of revenue (1)

41.24

40.36

40.58

40.78

40.54

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

3.84

3.97

3.50

3.86

3.47

Efficiency ratio (1)

63.41

62.53

65.34

63.10

64.81

Adjusted efficiency ratio (1)

64.44

62.76

65.22

63.47

64.78

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

(0.10

0.26

(0.17

0.28

0.08

Dividend payout ratio

28.95

27.16

32.31

26.42

31.79

Per Common Share

Earnings per common share - basic

0.77

0.82

0.66

2.49

1.97

Earnings per common share - diluted

0.76

0.81

0.65

2.46

1.95

Adjusted earnings per common share - diluted (1)

0.71

0.80

0.66

2.41

1.93

Dividends declared per common share

0.22

0.21

0.65

0.62

Book value per common share

23.31

23.34

21.68

Tangible book value per common share (1)

18.74

18.73

16.90

Average common shares outstanding - basic

24,851

25,081

25,395

25,102

25,374

Average common shares outstanding - diluted

25,161

25,395

25,713

25,410

25,693

Other Data

Retirement and benefit services assets under administration/management

44,944,011

45,163,767

44,005,277

Wealth advisory services assets under administration/management

5,163,688

5,195,511

4,812,250

Mortgage originations

126,728

113,450

142,768

334,612

347,995

(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 third quarter of 2026 was $46.7 million, a $1.0 million, or 2.1%, decrease from the second quarter of 2026. Interest income decreased $0.4 million, or 0.6%, primarily due to lower interest income on loans from a one-time $1.6 million interest income recovery on a nonaccrual loan resolution in the second quarter and less purchase accounting accretion, partially offset by higher loan and investment yields. Interest expense increased $0.6 million, or 2.4%, from the second quarter of 2026, as average rates paid on deposits and borrowings increased slightly, mainly driven by the recent increase by the Federal Reserve in the federal funds benchmark rate.

Net interest income increased $3.6 million, or 8.3%, from $43.1 million for the third quarter of 2025. Interest income decreased $0.5 million, or 0.6%, from the third quarter of 2025, primarily driven by less purchase accounting accretion and lower average interest-bearing cash balances, partially offset by higher interest income on investment securities following the strategic balance sheet repositioning in the fourth quarter of 2025. Interest expense decreased $4.0 million, or 14.7%, from the third 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 3.84% for the third quarter of 2026, a 13 basis point decrease from 3.97% for the second quarter of 2026, and a 34 basis point increase from 3.50% for the third quarter of 2025. The quarter over quarter decrease was mainly attributable to a one-time $1.6 million interest income recovery on a nonaccrual loan resolution in the second quarter and less purchase accounting accretion, partially offset by higher loan and investment yields. The increase from the third quarter of 2025 was primarily driven by lower cost of funds and higher yields on investment securities, offset by less purchase accounting accretion.

Noninterest Income

Noninterest income for the third quarter of 2026 was $34.4 million, a $1.4 million, or 4.3%, increase from the second quarter of 2026. This increase was driven by increases in other noninterest income, retirement and benefit services revenue, wealth advisory services revenue, and mortgage banking revenue. Other noninterest income increased $0.5 million, or 15.1%, from the second quarter of 2026, primarily driven by a gain on the sale of a property in the Fargo, North Dakota market, partially offset by a loss on a property transferred to held for sale in the Rochester, Minnesota market. Retirement and benefit services revenue increased $0.3 million, or 1.8%, compared to the second quarter of 2026, primarily driven by an increase in recurring annual revenue. Wealth advisory services revenue increased $0.3 million, or 3.8%, from the second quarter of 2026, primarily driven by an increase in transaction-based fees and a slight increase in asset-based revenues. Mortgage banking revenue increased $0.1 million, or 4.2%, from the second quarter of 2026, primarily driven by higher mortgage originations and gain on sale margins.

Noninterest income for the third quarter of 2026 increased by $4.9 million, or 16.7%, from the third quarter of 2025. This increase was driven by increases in other noninterest income, retirement and benefit services revenue, wealth advisory services revenue, and service charges on deposit accounts. Other noninterest income increased $1.9 million, or 85.3%, compared to the third quarter of 2025, primarily driven by a gain on the sale of a property in the Fargo, North Dakota market, partially offset by a loss on a property transferred to held for sale in the Rochester, Minnesota market. Retirement and benefit services revenue increased $1.2 million, or 7.1%, compared to the third quarter of 2025, primarily driven by recurring annual income. Wealth advisory services revenue increased $1.4 million, or 22.0%, from the third quarter of 2025, driven by an increase in both asset-based fees and transaction-based fees. Wealth advisory services assets under administration/management increased $351.4 million, or 7.3% during the same period. Service charges on deposit accounts increased $0.5 million, or 73.7%, compared to the third 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.

Noninterest Expense

Noninterest expense for the third quarter of 2026 was $53.9 million, a $1.0 million, or 1.9%, increase from the second quarter of 2026. The increase was primarily due to increases in employee taxes and benefits expense, along with marketing and business development expense, partially offset by a decrease in other noninterest expense. Employee taxes and benefits expense increased $0.6 million, or 9.2%, due to self-funded group insurance costs, and marketing and business development expense increased $0.4 million, or 41.2%, due to seasonal advertising campaigns. Other noninterest expense decreased $0.2 million, or 8.0%, from the second quarter of 2026, due to a decrease in holding costs related to other real estate owned balances, miscellaneous operational losses, as well as a decrease in corporate insurance costs.

Noninterest expense for the third quarter of 2026 increased $3.3 million, or 6.6%, from $50.5 million in the third quarter of 2025, primarily due to increases in employee taxes and benefits, compensation expense, and professional fees and assessments. Employee taxes and benefits increased $1.3 million, or 21.1%, due to self-funded group insurance costs. Compensation expense increased $1.1 million, or 4.5%, from the third quarter of 2025, primarily due to annual merit increases, as well as an increase in employees. Professional fees and assessments increased $1.1 million, or 41.9%, from the third 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.

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

Financial Condition

Total assets were $5.4 billion as of September 30, 2026, an increase of $173.0 million, or 3.3%, from December 31, 2025. The increase was primarily due to a $136.7 million increase in loans held for investment, a $35.5 million increase in available-for-sale investment securities, and an $18.0 million increase in other assets, partially offset by a $21.5 million decrease in held-to-maturity investment securities.

Loans Held for Investment

Total loans held for investment were $4.2 billion as of September 30, 2026, an increase of $136.7 million, or 3.4%, from December 31, 2025. The increase was primarily driven by a $188.8 million increase in commercial loans, partially offset by a $52.0 million decrease in consumer loans.

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

September 30,

June 30,

March 31,

December 31,

September 30,

(dollars in thousands)

2026

2025

Commercial

Commercial and business lending

Commercial and industrial

861,135

759,959

747,447

736,833

702,135

Commercial real estate − Owner occupied

690,988

622,241

444,276

427,260

435,320

Total commercial and business lending

1,552,123

1,382,200

1,191,723

1,164,093

1,137,455

Investor commercial real estate

Construction, land and development

87,615

79,850

146,897

246,238

349,768

Multifamily

332,535

361,875

392,097

383,505

374,761

Non-owner occupied

905,170

893,367

976,339

875,862

865,785

Total investor commercial real estate

1,325,320

1,335,092

1,515,333

1,505,605

1,590,314

Agricultural

Land

53,725

54,202

54,028

64,799

65,900

Production

54,597

53,367

50,983

62,500

63,051

Total agricultural

108,322

107,569

105,011

127,299

128,951

Total commercial

2,985,765

2,824,861

2,812,067

2,796,997

2,856,720

Consumer

Residential real estate

First lien

809,835

828,936

851,551

874,737

894,402

Construction

32,620

31,202

32,872

33,703

34,124

HELOC

280,771

273,124

262,131

260,883

234,681

Junior lien

31,566

31,941

35,783

36,844

40,434

Total residential real estate

1,154,792

1,165,203

1,182,337

1,206,167

1,203,641

Other consumer

44,203

44,180

40,340

44,858

41,715

Total consumer

1,198,995

1,209,383

1,222,677

1,251,025

1,245,356

Total loans

4,184,760

4,034,244

4,034,744

4,048,022

4,102,076

Deposits

Total deposits were $4.3 billion as of September 30, 2026, an increase of $111.2 million, or 2.7%, from December 31, 2025. Noninterest-bearing deposits increased $5.6 million and interest-bearing deposits increased $105.6 million from December 31, 2025.

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

September 30,

June 30,

March 31,

December 31,

September 30,

(dollars in thousands)

2026

2025

Noninterest-bearing demand

813,493

759,640

857,625

807,896

776,791

Interest-bearing

Interest-bearing demand

1,430,016

1,429,951

1,449,156

1,296,315

1,256,687

Savings accounts

169,556

173,255

178,347

173,759

174,113

Money market savings

1,307,677

1,252,823

1,291,794

1,337,491

1,460,006

Time deposits

582,435

576,228

570,960

576,542

745,056

Total interest-bearing

3,489,684

3,432,257

3,490,257

3,384,107

3,635,862

Total deposits

4,303,177

4,191,897

4,347,882

4,192,003

4,412,653

Asset Quality

Total nonperforming assets were $16.4 million as of September 30, 2026, a decrease of $53.0 million, or 76.4%, from December 31, 2025. As of September 30, 2026, the allowance for credit losses on loans was $51.4 million, or 1.23% 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

September 30,

June 30,

March 31,

December 31,

September 30,

(dollars in thousands)

2026

2025

Nonaccrual loans

6,909

7,105

53,881

69,065

59,644

Accruing loans 90+ days past due

436

—

Total nonperforming loans

6,930

7,541

53,881

69,065

59,644

OREO and repossessed assets

9,449

9,571

126

308

467

Total nonperforming assets

16,379

17,112

54,007

69,373

60,111

Criticized loans

81,830

83,090

132,459

149,162

191,331

Net charge-offs (recoveries)

(1,018

)

2,575

7,027

(311

)

(1,715

)

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

(0.10

0.26

0.71

(0.03

(0.17

Nonperforming loans to total loans

0.17

0.19

1.34

1.71

1.45

Nonperforming assets to total assets

0.30

0.32

1.02

1.33

1.13

Criticized loans to total loans

1.96

2.06

3.28

3.68

4.66

Allowance for credit losses on loans to total loans

1.23

1.20

1.25

1.53

1.51

Allowance for credit losses on loans to nonperforming loans

742.40

641.31

93.73

89.65

104.16

For the third quarter of 2026, the Company had net recoveries of $1.0 million, compared to net charge-offs of $2.6 million for the second quarter of 2026 and net recoveries of $1.7 million for the third quarter of 2025. The quarter over quarter decrease in net charge-offs (recoveries) was primarily due to a $1.1 million recovery related to one long-term commercial and industrial client relationship on nonaccrual which was charged-off in the second quarter of 2026. As of September 30, 2026, the relationship had a remaining reserve of $0.9 million, which represented approximately 60.6% 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 September 30, 2026 was primarily the result of problem loan resolution.

The Company recorded a provision for credit losses of $2.2 million for the third quarter of 2026, compared to a provision of $0.5 million for the second quarter of 2026, and no provision for credit losses for the third quarter of 2025.

OREO and repossessed assets were $9.4 million at September 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 $33.4 million as of September 30, 2026, $43.8 million as of December 31, 2025, and $47.3 million as of September 30, 2025.

Capital

Total stockholders’ equity was $576.9 million as of September 30, 2026, an increase of $11.9 million from December 31, 2025. The increase was primarily driven by an increase in retained earnings of $46.8 million, partially offset by a decrease in additional paid-in capital of $18.9 million and an increase in accumulated other comprehensive loss of $15.3 million due to recent increases in interest rates. Tangible book value per common share(1) increased to $18.74 as of September 30, 2026, from $17.55 as of December 31, 2025. Tangible common equity to tangible assets(1) increased to 8.77% as of September 30, 2026, from 8.72% as of December 31, 2025. Common equity tier 1 capital to risk weighted assets increased to 10.52% as of September 30, 2026, from 10.28% as of December 31, 2025.

During the third quarter of 2026, the Company repurchased approximately $8.2 million of its outstanding common stock at an average per share price of $32.75, which reduced common shares outstanding by 250,000 at quarter-end.

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

September 30,

December 31,

September 30,

2026

2025

Capital Ratios(1)

Alerus Financial Corporation Consolidated

Common equity tier 1 capital to risk weighted assets

10.52

10.28

10.84

Tier 1 capital to risk weighted assets

10.72

10.48

11.05

Total capital to risk weighted assets

13.01

12.87

13.41

Tier 1 capital to average assets

9.58

8.86

9.49

Tangible common equity / tangible assets (2)

8.77

8.72

8.24

Alerus Financial, N.A.

Common equity tier 1 capital to risk weighted assets

10.57

10.41

11.00

Tier 1 capital to risk weighted assets

10.57

10.41

11.00

Total capital to risk weighted assets

11.78

11.66

12.25

Tier 1 capital to average assets

9.35

8.62

9.31

(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, October 29, 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 25 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 Tempe 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, such as the recent increase in the benchmark federal funds rate by the Federal Reserve; 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, Inc; 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)

September 30,

December 31,

2026

2025

Assets

(Unaudited)

Cash and cash equivalents

65,756

67,192

Investment securities

Trading, at fair value

818

1,758

Available-for-sale, at fair value

549,584

514,095

Held-to-maturity, at amortized cost (with an allowance for credit losses on investments of $111 and $123, respectively)

232,988

254,448

Loans held for sale

19,829

21,934

Loans held for investment

4,184,760

4,048,022

Allowance for credit losses on loans

(51,448

)

(61,915

)

Net loans

4,133,312

3,986,107

Land, premises and equipment, net

39,530

43,253

Operating lease right-of-use assets

31,528

28,761

Accrued interest receivable

21,011

21,742

Bank-owned life insurance

42,147

39,307

Goodwill

85,634

Other intangible assets

27,448

33,371

Servicing rights

7,416

6,383

Deferred income taxes, net

25,063

23,080

Other assets

121,039

103,019

Total assets

5,403,103

5,230,084

Liabilities and Stockholders’ Equity

Deposits

Noninterest-bearing

813,493

807,896

Interest-bearing

3,489,684

3,384,107

Total deposits

4,303,177

4,192,003

Short-term borrowings

318,400

308,800

Long-term debt

59,267

59,182

Operating lease liabilities

42,232

36,282

Accrued expenses and other liabilities

103,177

68,883

Total liabilities

4,826,253

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: 24,744,269 and 25,406,278 issued and outstanding

24,744

25,406

Additional paid-in capital

252,754

271,609

Retained earnings

316,826

270,075

Accumulated other comprehensive loss

(17,474

)

(2,156

)

Total stockholders’ equity

576,850

564,934

Total liabilities and stockholders’ equity

5,403,103

5,230,084

Alerus Financial Corporation and Subsidiaries

Consolidated Statements of Income

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

Three months ended

Nine months ended

September 30,

June 30,

September 30,

2026

2025

2026

2025

Interest Income

(Unaudited)

Loans, including fees

61,455

62,214

63,875

182,290

189,222

Investment securities

Taxable

7,525

7,258

5,091

21,888

16,108

Exempt from federal income taxes

156

155

160

468

480

Other

1,056

999

1,518

3,149

3,440

Total interest income

70,192

70,626

70,644

207,795

209,250

Interest Expense

Deposits

19,538

18,938

24,350

57,550

70,643

Short-term borrowings

2,886

2,935

2,506

8,178

9,327

Long-term debt

1,045

1,041

652

2,720

1,955

Total interest expense

23,469

22,914

27,508

68,448

81,925

Net interest income

46,723

47,712

43,136

139,347

127,325

Provision for (recovery of) credit losses

2,199

495

—

(2,188

)

863

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

44,524

47,217

43,136

141,535

126,462

Noninterest Income

Retirement and benefit services

17,664

17,347

16,496

52,418

48,625

Wealth advisory services

8,001

7,705

6,560

22,942

20,827

Mortgage banking

3,328

3,195

3,474

10,057

8,651

Service charges on deposit accounts

1,221

1,106

703

3,259

2,034

Gain on sale of non-mortgage loans

—

(35

)

—

2,080

Other

4,136

3,592

2,232

9,464

6,607

Total noninterest income

34,350

32,945

29,430

98,140

88,824

Noninterest Expense

Compensation

26,096

26,155

24,984

76,338

72,288

Employee taxes and benefits

7,377

6,755

6,094

20,772

20,490

Occupancy and equipment expense

3,525

3,493

2,849

10,444

8,315

Business services, software and technology expense

5,457

5,440

6,285

16,736

17,905

Intangible amortization expense

1,974

2,710

5,923

8,129

Professional fees and assessments

3,796

3,781

2,676

11,377

8,010

Marketing and business development

1,227

869

1,069

2,957

2,821

Supplies and postage

573

540

569

1,719

1,690

Travel

464

357

385

1,181

1,019

Mortgage and lending expenses

707

614

1,025

2,030

2,501

Other

2,672

2,905

1,895

7,664

6,176

Total noninterest expense

53,868

52,883

50,541

157,141

149,344

Income before income tax expense

25,006

27,279

22,025

82,534

65,942

Income tax expense

5,806

6,414

5,101

19,499

15,451

Net income

19,200

20,865

16,924

63,035

50,491

Per Common Share Data

Earnings per common share

0.77

0.82

0.66

2.49

1.97

Diluted earnings per common share

0.76

0.81

0.65

2.46

1.95

Dividends declared per common share

0.22

0.21

0.65

0.62

Average common shares outstanding

24,851

25,081

25,395

25,102

25,374

Diluted average common shares outstanding

25,161

25,395

25,713

25,410

25,693

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)

September 30,

June 30,

December 31,

September 30,

2026

2025

Tangible Common Equity to Tangible Assets

Total common stockholders’ equity

576,850

583,143

564,934

550,688

Less: Goodwill

85,634

Less: Other intangible assets

27,448

29,422

33,371

35,753

Tangible common equity (a)

463,768

468,087

445,929

429,301

Total assets

5,403,103

5,288,718

5,230,084

5,330,573

Less: Goodwill

85,634

Less: Other intangible assets

27,448

29,422

33,371

35,753

Tangible assets (b)

5,290,021

5,173,662

5,111,079

5,209,186

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

8.77

9.05

8.72

8.24

Tangible Book Value Per Common Share

Tangible common equity (a)

463,768

468,087

445,929

429,301

Total common shares issued and outstanding (c)

24,744

24,986

25,406

25,397

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

18.74

18.73

17.55

16.90

Three months ended

Nine months ended

September 30,

June 30,

September 30,

2026

2025

2026

2025

Return on Average Tangible Common Equity

Net income

19,200

20,865

16,924

63,035

50,491

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

1,559

2,141

4,679

6,421

Net income, excluding intangible amortization (d)

20,759

22,424

19,065

67,714

56,912

Average total equity

582,770

574,862

524,459

574,789

512,533

Less: Average goodwill

85,634

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

22,447

24,003

29,540

24,026

31,549

Average tangible common equity (e)

474,689

465,225

409,285

465,129

395,350

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

17.35

19.33

18.48

19.46

19.25

Efficiency Ratio

Noninterest expense

53,868

52,883

50,541

157,141

149,344

Less: Intangible amortization expense

1,974

2,710

5,923

8,129

Noninterest expense excluding intangible amortization (f)

51,894

50,909

47,831

151,218

141,215

Net interest income (v)

46,723

47,712

43,136

139,347

127,325

Noninterest income

34,350

32,945

29,430

98,140

88,824

Tax equivalent adjustment for loans and securities

771

755

638

2,145

1,748

Total tax-equivalent revenue (g)

81,844

81,412

73,204

239,632

217,897

Efficiency ratio (f)/(g)

63.41

62.53

65.34

63.10

64.81

Pre-Provision Net Revenue

Net interest income (v)

46,723

47,712

43,136

139,347

127,325

Add: Noninterest income

34,350

32,945

29,430

98,140

88,824

Less: Noninterest expense

53,868

52,883

50,541

157,141

149,344

Pre-provision net revenue

27,205

27,774

22,025

80,346

66,805

Adjusted Noninterest Income

Noninterest income

34,350

32,945

29,430

98,140

88,824

Less: Adjusted noninterest income items

Net gain on sale of loans

—

(35

)

—

2,080

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

1,554

653

—

2,186

(84

)

Total adjusted noninterest income (loss) items (h)

1,554

653

(35

)

2,186

1,996

Adjusted noninterest income (i)

32,796

32,292

29,465

95,954

86,828

Adjusted Noninterest Income as a Percentage of Revenue

Adjusted noninterest income (i)

32,796

32,292

29,465

95,954

86,828

Net interest income (v)

46,723

47,712

43,136

139,347

127,325

Adjusted revenue (w)

79,519

80,004

72,601

235,301

214,153

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

41.24

40.36

40.58

40.78

40.54

Adjusted Noninterest Expense

Noninterest expense

53,868

52,883

50,541

157,141

149,344

Less: Adjusted noninterest expense items

HMNF merger- and acquisition-related expenses

(43

)

(13

)

255

Severance and signing bonus expense

144

216

104

526

1,108

Total adjusted noninterest expense items (j)

159

222

513

1,363

Adjusted noninterest expense (k)

53,709

52,661

50,480

156,628

147,981

(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

Nine months ended

September 30,

June 30,

September 30,

2026

2025

2026

2025

Adjusted Pre-Provision Net Revenue

Net interest income (v)

46,723

47,712

43,136

139,347

127,325

Add: Adjusted noninterest income (i)

32,796

32,292

29,465

95,954

86,828

Less: Adjusted noninterest expense (k)

53,709

52,661

50,480

156,628

147,981

Adjusted pre-provision net revenue

25,810

27,343

22,121

78,673

66,172

Adjusted Efficiency Ratio

Adjusted noninterest expense (k)

53,709

52,661

50,480

156,628

147,981

Less: Intangible amortization expense

1,974

2,710

5,923

8,129

Adjusted noninterest expense for efficiency ratio (l)

51,735

50,687

47,770

150,705

139,852

Tax-equivalent revenue

Net interest income (v)

46,723

47,712

43,136

139,347

127,325

Add: Adjusted noninterest income (i)

32,796

32,292

29,465

95,954

86,828

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

771

755

638

2,145

1,748

Total tax-equivalent revenue (m)

80,290

80,759

73,239

237,446

215,901

Adjusted efficiency ratio (l)/(m)

64.44

62.76

65.22

63.47

64.78

Adjusted Net Income

Net income

19,200

20,865

16,924

63,035

50,491

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

1,228

516

(28

)

1,727

1,577

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

126

175

405

1,077

Adjusted net income (n)

18,098

20,524

17,000

61,713

49,991

Adjusted Return on Average Total Assets

Average total assets (o)

5,255,954

5,226,319

5,273,306

5,233,732

5,282,798

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

1.37

1.58

1.28

1.58

1.27

Adjusted Return on Average Tangible Common Equity

Adjusted net income (n)

18,098

20,524

17,000

61,713

49,991

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

1,559

2,141

4,679

6,421

Adjusted net income, excluding intangible amortization (p)

19,657

22,083

19,141

66,392

56,412

Average total equity

582,770

574,862

524,459

574,789

512,533

Less: Average goodwill

85,634

Less: Average other intangible assets (net of tax)

22,447

24,003

29,540

24,026

31,549

Average tangible common equity (q)

474,689

465,225

409,285

465,129

395,350

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

16.43

19.04

18.55

19.08

Adjusted Earnings Per Common Share - Diluted

Adjusted net income (n)

18,098

20,524

17,000

61,713

49,991

Less: Dividends and undistributed earnings allocated to participating securities

171

192

148

571

444

Adjusted net income available to common stockholders (r)

17,927

20,332

16,852

61,142

49,547

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

25,161

25,395

25,713

25,410

25,693

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

0.71

0.80

0.66

2.41

1.93

Net Charge-Offs (Recoveries) to Average Loans

Net charge-offs (recoveries) (t)

(1,018

)

2,575

(1,715

)

8,584

2,459

Average total loans (u)

4,026,351

4,032,142

4,036,936

4,029,390

4,046,347

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

(0.10

0.26

(0.17

0.28

0.08

Net Interest Margin (on a Tax-Equivalent Basis)

Net interest income (v)

46,723

47,712

43,136

139,347

127,325

Add: Tax equivalent adjustment for loans and securities

771

755

638

2,145

1,748

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

47,494

48,467

43,774

141,492

129,073

Average interest earning assets (x)

4,912,782

4,896,740

4,965,849

4,903,681

4,968,236

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

3.84

3.97

3.50

3.86

3.47

(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

Nine months ended

September 30, 2026

June 30, 2026

September 30, 2025

September 30, 2026

September 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

54,390

3.74

45,777

4.11

89,568

4.86

53,591

4.04

53,187

4.98

Investment securities (1)

783,165

3.91

773,692

3.86

796,759

2.64

776,289

3.87

826,409

2.70

Loans held for sale

23,245

5.39

18,885

4.50

20,188

4.93

19,277

4.91

17,979

4.80

Loans

Commercial and industrial

778,604

7.00

779,471

7.07

650,787

7.51

760,827

7.06

654,061

7.44

CRE − Owner occupied

649,436

5.98

502,476

6.19

435,469

7.73

528,217

6.09

419,608

6.77

CRE − Construction, land and development

89,571

7.48

103,618

13.08

363,466

5.77

134,534

7.72

348,093

5.85

CRE − Multifamily

341,997

5.97

394,683

6.05

340,709

6.46

376,509

5.94

350,658

6.50

CRE − Non-owner occupied (2)

858,263

5.95

922,958

6.08

887,935

6.26

898,414

6.00

934,143

6.48

Agricultural − Land

54,978

9.58

53,823

5.78

66,676

5.53

56,178

7.11

66,647

5.71

Agricultural − Production

52,005

6.99

53,351

6.95

64,685

6.80

54,704

6.97

64,357

7.13

RRE − First lien

818,187

5.01

838,819

4.93

898,011

4.83

840,523

4.96

898,910

4.84

RRE − Construction

33,030

7.31

34,981

6.63

33,834

6.61

33,639

6.74

36,798

7.57

RRE − HELOC

275,470

6.03

271,254

6.02

213,232

6.82

269,487

6.03

190,272

6.96

RRE − Junior lien

31,353

6.85

32,676

6.53

40,997

6.40

33,427

6.59

42,498

6.34

Other consumer

43,457

6.53

44,032

6.51

41,135

6.94

42,931

6.45

40,302

6.99

Total loans (1)

4,026,351

6.10

4,032,142

6.24

4,036,936

6.31

4,029,390

6.09

4,046,347

6.28

Federal Reserve/FHLB stock

25,631

8.41

26,244

8.10

22,398

7.46

25,134

8.13

24,314

8.01

Total interest earning assets

4,912,782

5.73

4,896,740

5.85

4,965,849

5.70

4,903,681

5.72

4,968,236

5.68

Noninterest earning assets

343,172

329,579

307,457

330,051

314,562

Total assets

5,255,954

5,226,319

5,273,306

5,233,732

5,282,798

Interest-Bearing Liabilities

Interest-bearing demand deposits

1,402,505

1.70

1,378,394

1.68

1,227,029

1.80

1,382,852

1.67

1,240,589

1.80

Money market and savings deposits

1,454,053

2.38

1,441,099

2.34

1,587,694

2.84

1,466,135

2.36

1,580,085

2.83

Time deposits

573,526

3.32

571,276

3.34

772,345

3.81

571,305

3.36

716,421

3.81

Fed funds purchased

24,167

4.05

74,104

3.85

16,636

4.94

44,591

3.93

71,717

4.67

FHLB short-term advances

262,228

3.99

226,703

3.93

200,000

4.56

231,337

3.97

200,000

4.56

Long-term debt

59,253

6.99

59,225

7.04

59,137

4.37

59,225

6.14

59,111

4.42

Total interest-bearing liabilities

3,775,732

2.47

3,750,801

2.45

3,862,841

2.83

3,755,445

2.44

3,867,923

2.83

Noninterest-Bearing Liabilities and Stockholders' Equity

Noninterest-bearing deposits

776,897

790,088

800,028

788,442

819,266

Other noninterest-bearing liabilities

120,555

110,568

85,978

115,056

83,076

Stockholders’ equity

582,770

574,862

524,459

574,789

512,533

Total liabilities and stockholders’ equity

5,255,954

5,226,319

5,273,306

5,233,732

5,282,798

Net interest rate spread

3.26

3.40

2.87

3.28

2.85

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

3.84

3.97

3.50

3.86

3.47

(1)

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

EX-99.2 — EXHIBIT 99.2

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Oct. 28, 2026

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