INVESTOR PRESENTATION 4Q 2024 NASDAQ: ALRS DISCLAIMERS Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Alerus Financial Corporation. These statements are often, but not always, ...

Core Insights - Alerus reported a revenue of $72.16 million for the quarter ended December 2024, marking a 53.6% increase year-over-year, with an EPS of $0.44 compared to $0.24 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $62.55 million by 15.36%, and the EPS also surpassed the consensus estimate of $0.39 by 12.82% [1] Financial Performance Metrics - Net charge-offs to average loans remained stable at 0.1%, matching the analysts' estimate [4] - The efficiency ratio was reported at 73.4%, better than the average estimate of 76.9% [4] - The net interest margin was 3.2%, exceeding the analysts' average estimate of 2.7% [4] - Total interest-earning assets averaged $4.81 billion, slightly below the analysts' estimate of $5 billion [4] - Tax-equivalent net interest income was $33.98 million, surpassing the estimate of $33.41 million [4] - Retirement and benefit services revenue was $16.49 million, above the estimate of $16.15 million [4] - Net interest income reached $38.28 million, compared to the average estimate of $31.36 million [4] - Wealth management revenue was $7.01 million, exceeding the estimate of $6.80 million [4] - Other income was reported at $6.06 million, significantly higher than the estimate of $2.93 million [4] - Service charges on deposit accounts were $0.64 million, below the estimate of $1.34 million [4] - Mortgage banking revenue was $3.67 million, above the average estimate of $2 million [4] - Total noninterest income was $33.87 million, exceeding the estimate of $29.31 million [4] Stock Performance - Alerus shares have returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

分组1 - Alerus reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and showing an increase from $0.24 per share a year ago, resulting in an earnings surprise of 12.82% [1] - The company achieved revenues of $72.16 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 15.36%, compared to $46.99 million in the same quarter last year [2] - Alerus shares have increased approximately 5.1% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $63.15 million, and for the current fiscal year, it is $1.96 on revenues of $264.1 million [7] - The Financial - Miscellaneous Services industry, to which Alerus belongs, is currently ranked in the bottom 49% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Alerus Financial Corporation reported a net income of $3.2 million for Q4 2024, a decrease of 38.5% from $5.2 million in Q3 2024, and a significant improvement from a net loss of $14.8 million in Q4 2023[2]. - Adjusted earnings per common share increased by 41.9% to $0.44 in Q4 2024 from $0.31 in Q3 2024[8]. - Net income for Q4 2024 was $3,222,000, down from $5,207,000 in Q3 2024 and a loss of $14,754,000 in Q4 2023, showing recovery from previous losses[44]. - Adjusted net income for the year ended December 31, 2024, was $30,769,000, compared to $29,235,000 for the year ended December 31, 2023, reflecting a growth of 5.3%[48]. - Adjusted earnings per common share (diluted) for the year ended December 31, 2024, was $1.44, compared to $1.45 for the year ended December 31, 2023[49]. Revenue and Income Sources - Net interest income surged to $38.3 million in Q4 2024, a 69.8% increase from $22.5 million in Q3 2024[12]. - Noninterest income for Q4 2024 was $33.9 million, representing 46.9% of total revenues, and increased by 19.4% from $28.4 million in Q3 2024[8]. - Noninterest income reached $33,874,000 in Q4 2024, up 19.4% from $28,363,000 in Q3 2024 and significantly higher than $791,000 in Q4 2023[44]. - Year-over-year, noninterest income increased by $33.1 million from Q4 2023, with mortgage banking revenue up $2.4 million, or 184.6%[18]. Loans and Deposits - Total loans reached $4.0 billion as of December 31, 2024, marking an increase of $1.0 billion, or 31.7%, from September 30, 2024[8]. - Total deposits also increased to $4.4 billion, up $1.1 billion, or 31.7%, from September 30, 2024[8]. - Total loans increased to $4.0 billion as of December 31, 2024, a $1.2 billion, or 44.7%, increase from December 31, 2023[22]. - Total deposits increased to $4.4 billion as of December 31, 2024, up $1.3 billion or 41.4% from December 31, 2023[25]. Efficiency and Expenses - The adjusted efficiency ratio improved to 69.0% in Q4 2024, down from 77.7% in Q3 2024[8]. - Noninterest expense for Q4 2024 was $56.0 million, a $13.6 million, or 32.0%, increase from Q3 2024, primarily due to the acquisition of HMNF[19]. - The efficiency ratio improved to 73.36% in Q4 2024 from 80.29% in Q3 2024, indicating better cost management[45]. - Adjusted noninterest expense for the year ended December 31, 2024, was $167,794,000, compared to $148,260,000 in 2023, indicating an increase of 13.2%[47]. Credit Quality and Allowance - The allowance for credit losses on loans increased to 1.50% of total loans as of December 31, 2024, up 21 basis points from 1.29% as of September 30, 2024[8]. - The provision for credit losses for Q4 2024 was $12.0 million, up from $1.7 million in Q3 2024 and $1.5 million in Q4 2023[30][31]. - Total nonperforming assets reached $62.9 million as of December 31, 2024, an increase of $54.1 million from December 31, 2023[27]. - Nonperforming loans to total loans ratio was 1.58% as of December 31, 2024, unchanged from the previous quarter[29]. Assets and Capital - Total assets as of December 31, 2024, were $5.3 billion, an increase of $1.4 billion, or 34.7%, from December 31, 2023[21]. - Total common stockholders' equity increased to $498,699,000 in Q4 2024 from $386,486,000 in Q3 2024, reflecting strong capital growth[45]. - Tangible book value per common share decreased to $14.49 as of December 31, 2024, from $15.46 as of December 31, 2023[32]. - Common equity tier 1 capital to risk-weighted assets decreased to 9.98% as of December 31, 2024, down from 11.82% as of December 31, 2023[33]. Strategic Developments - Alerus Financial Corporation completed the acquisition of HMN Financial, Inc., marking the largest acquisition in the company's history[3]. - The company emphasizes the importance of managing credit risk and maintaining an adequate level of allowance for credit losses[41]. - The company will host a conference call on January 29, 2024, to discuss its financial results[34].

Core Insights - Alerus (ALRS) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, with the consensus outlook indicating a significant impact on the stock price based on actual results compared to estimates [1][3] Earnings Expectations - The consensus estimate for Alerus's quarterly earnings is projected at $0.01 per share, reflecting a year-over-year decrease of 95.8%, while revenues are expected to reach $61.8 million, marking a 31.5% increase from the previous year [3] Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 9.33%, indicating a collective reassessment by analysts regarding the company's earnings prospects [4] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Alerus is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -200%, which indicates a bearish outlook from analysts [10][11] Historical Performance - In the last reported quarter, Alerus was expected to post earnings of $0.44 per share but only achieved $0.26, resulting in a surprise of -40.91%. Over the last four quarters, the company has only beaten consensus EPS estimates once [12][13] Investment Considerations - Alerus does not appear to be a strong candidate for an earnings beat, and investors are advised to consider other factors when making investment decisions regarding this stock ahead of its earnings release [16]

Stocks Added to Zacks Rank 5 (Strong Sell) List - Anglo American (NGLOY), a mining company operating globally, has seen a 20 2% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Advanced Drainage Systems (WMS), a manufacturer of thermoplastic corrugated pipe and water management products, has experienced a 5 9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Alerus Financial (ALRS), a financial services company, has had its Zacks Consensus Estimate for current year earnings revised downward by almost 5 2% over the last 60 days [3]

ALERUS INVESTOR PRESENTATION 3Q 2024 NASDAQ: ALRS DISCLAIMERS Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Alerus Financial Corporation. These statements are often, but not ...

Alerus Financial Corporation (NASDAQ:ALRS) Q3 2024 Earnings Conference Call October 30, 2024 12:00 PM ET Company Participants Katie Lorenson - President and CEO Al Villalon - Chief Financial Officer Karin Taylor - Chief Operating and Risk Officer Jim Collins - Chief Revenue Officer and Head, Commercial Wealth Bank Forrest Wilson - Chief Retirement Services Officer Conference Call Participants Jeff Rulis - D.A. Davidson & Co. David Feaster - Raymond James Brendan Nosal - Hovde Nathan Race - Piper Sandler Dam ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39036 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------|--- ...

Alerus (ALRS) reported $50.91 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 4.3%. EPS of $0.26 for the same period compares to $0.45 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $52.3 million, representing a surprise of -2.67%. The company delivered an EPS surprise of -40.91%, with the consensus EPS estimate being $0.44.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...