Company Performance - Alerus reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and showing a significant increase from $0.31 per share a year ago, representing an earnings surprise of +28.57% [1] - The company achieved revenues of $75.39 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.85%, and up from $51.37 million year-over-year [2] - Over the last four quarters, Alerus has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - Alerus shares have increased approximately 12.9% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $70.7 million, and for the current fiscal year, it is $2.26 on revenues of $281 million [7] - The estimate revisions trend for Alerus was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - Alerus operates within the Zacks Financial - Miscellaneous Services industry, which is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - The performance of Alerus may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Alerus Financial Corporation reported strong Q2 2025 results, including **$20.3 million** net income, improved KPIs, and a dividend increase Q2 2025 Earnings Summary | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $20.3 million | $13.3 million | $6.2 million | | Diluted EPS | $0.78 | $0.52 | $0.31 | - CEO Katie Lorenson attributed the strong performance to the company's diversified business model and disciplined execution, highlighting progress towards achieving top-tier performance[3](index=3&type=chunk) - The company optimized its balance sheet through the strategic sale of **$62.5 million** of non-owner occupied commercial real estate loans, demonstrating proactive credit risk management[3](index=3&type=chunk) Q2 2025 Key Performance Metrics (Non-GAAP) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Adjusted Return on Average Total Assets | 1.41% | 1.10% | | Adjusted Return on Average Tangible Common Equity | 21.0% | 17.6% | | Adjusted Earnings per Diluted Common Share | $0.72 | $0.56 | - The quarterly dividend was increased by **5.0%** to **$0.21** per share, marking the 39th consecutive year of dividend increases[5](index=5&type=chunk) - Tangible book value per common share grew by over **20.0%** annualized compared to the prior quarter, reaching **$16.11**[3](index=3&type=chunk)[5](index=5&type=chunk) [Selected Financial Data](index=3&type=section&id=Selected%20Financial%20Data) Q2 2025 selected financial data demonstrates strong improvements in profitability ratios, per-share metrics, and increased assets under administration Key Performance Ratios Comparison | Performance Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Return on average total assets | 1.53% | 1.02% | 0.58% | | Return on average tangible common equity (1) | 22.65% | 16.50% | 9.40% | | Net interest margin (tax-equivalent) | 3.51% | 3.41% | 2.39% | | Efficiency ratio (1) | 60.66% | 68.76% | 72.50% | Per Common Share Data Comparison | Per Common Share Data | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Earnings per common share - diluted | $0.78 | $0.52 | $0.31 | | Dividends declared per common share | $0.21 | $0.20 | $0.20 | | Tangible book value per common share (1) | $16.11 | $15.27 | $15.77 | Assets Under Administration/Management (in thousands) | AUA/AUM | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Retirement and benefit services | $42,451,544 | $39,925,596 | $39,389,533 | | Wealth management | $4,613,102 | $4,500,852 | $4,172,290 | [Results of Operations](index=3&type=section&id=Results%20of%20Operations) Q2 2025 operating results show significant strength, with growth in net interest and noninterest income, and disciplined expense management, leading to improved profitability [Net Interest Income](index=3&type=section&id=Net%20Interest%20Income) Net interest income for Q2 2025 was **$43.0 million**, increasing **4.6%** from Q1 2025 and **79.3%** from Q2 2024, driven by higher loan yields and the HMNF acquisition, expanding NIM to **3.51%** - Net interest income increased by **$1.9 million** (**4.6%**) from Q1 2025, driven by higher yields on new and repriced loans and purchase accounting accretion[7](index=7&type=chunk) - Compared to Q2 2024, net interest income surged by **$19.0 million** (**79.3%**), largely due to earning assets acquired in the HMNF transaction and strong organic loan growth[8](index=8&type=chunk) Net Interest Margin (NIM) Trend | Period | Net Interest Margin (tax-equivalent) | | :--- | :--- | | Q2 2025 | 3.51% | | Q1 2025 | 3.41% | | Q2 2024 | 2.39% | [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Q2 2025 noninterest income reached **$31.8 million**, a **15.0%** increase quarter-over-quarter, primarily driven by a **139.1%** surge in mortgage banking revenue and a **$2.1 million** gain on a loan sale - The **$4.1 million** quarter-over-quarter increase was mainly due to a **$2.1 million** rise in mortgage banking revenue and a **$2.1 million** gain on the sale of a non-mortgage loan[11](index=11&type=chunk) - Year-over-year, noninterest income increased by **$4.4 million**, driven by the loan sale gain, a **15.8%** increase in wealth revenue, and a **43.0%** increase in mortgage banking revenue[12](index=12&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Q2 2025 noninterest expense was **$48.4 million**, a **3.8%** decrease quarter-over-quarter due to disciplined management, but a **25.0%** increase year-over-year driven by the HMNF acquisition and technology investments - Quarter-over-quarter expenses decreased by **$1.9 million** (**3.8%**), mainly due to seasonal drops in employee taxes and benefits, and lower professional fees and assessments[13](index=13&type=chunk) - Year-over-year expenses increased by **$9.7 million** (**25.0%**), driven by higher compensation, benefits, intangible amortization, and technology costs associated with the HMNF acquisition and platform upgrades[14](index=14&type=chunk) [Financial Condition](index=5&type=section&id=Financial%20Condition) Alerus's financial condition remained robust as of June 30, 2025, with total assets at **$5.3 billion**, an expanded loan portfolio, improved asset quality, and total deposits at **$4.3 billion** - Total assets were **$5.3 billion** as of June 30, 2025, an increase of **$62.1 million**, or **1.2%**, from December 31, 2024[15](index=15&type=chunk) [Loans Held for Investment](index=5&type=section&id=Loans%20Held%20for%20Investment) The loan portfolio held for investment reached **$4.0 billion** as of June 30, 2025, increasing **1.3%** since year-end 2024, driven by commercial and consumer loan growth, alongside a strategic reduction in commercial real estate loans - Total loans held for investment increased by **$52.1 million** (**1.3%**) from December 31, 2024, driven by growth in commercial and consumer loans[16](index=16&type=chunk) Loan Portfolio Composition (in thousands) | Loan Category | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total commercial | $2,824,087 | $2,787,277 | | Total consumer | $1,220,570 | $1,205,257 | | **Total Loans** | **$4,044,657** | **$3,992,534** | [Deposits](index=7&type=section&id=Deposits) Total deposits were **$4.3 billion** as of June 30, 2025, a **0.9%** decrease from year-end 2024 due to seasonal outflows and a shift from noninterest-bearing to interest-bearing accounts, with increased brokered deposits - Total deposits decreased by **$40.9 million** (**0.9%**) from December 31, 2024, due to seasonal outflows and tax-related client activity[19](index=19&type=chunk) Deposit Composition (in thousands) | Deposit Category | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Noninterest-bearing demand | $790,300 | $903,466 | | Total interest-bearing | $3,547,168 | $3,474,944 | | **Total deposits** | **$4,337,468** | **$4,378,410** | [Asset Quality](index=7&type=section&id=Asset%20Quality) Q2 2025 asset quality improved, with total nonperforming assets declining to **$52.2 million**, and net charge-offs of **$3.8 million** (adjusted **0.07%**), with no provision for credit losses recorded - Total nonperforming assets decreased by **$10.7 million** from December 31, 2024, to **$52.2 million**[21](index=21&type=chunk) Asset Quality Metrics | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Nonperforming loans to total loans | 1.27% | 1.58% | | Nonperforming assets to total assets | 0.98% | 1.20% | | Allowance for credit losses on loans to total loans | 1.47% | 1.50% | - Net charge-offs were **$3.8 million**, primarily driven by a **$3.4 million** charge-off related to a hospitality loan sale. Adjusted net charge-offs (non-GAAP) were **$0.7 million**, or **0.07%** of average loans[22](index=22&type=chunk) - No provision for credit losses was recorded in Q2 2025, compared to a provision of **$0.9 million** in Q1 2025[23](index=23&type=chunk) [Capital](index=9&type=section&id=Capital) The company's capital position strengthened significantly as of June 30, 2025, with total stockholders' equity rising to **$533.2 million**, improved regulatory capital ratios, and CET1 ratio increasing to **10.54%** - Total stockholders' equity increased by **$37.7 million** since December 31, 2024, primarily due to **$23.2 million** in retained earnings and a **$13.5 million** decrease in accumulated other comprehensive loss[24](index=24&type=chunk) Capital Ratios | Ratio | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Common equity tier 1 capital to risk weighted assets | 10.54% | 9.91% | 11.66% | | Total capital to risk weighted assets | 13.10% | 12.49% | 14.67% | | Tangible common equity / tangible assets (2) | 7.87% | 7.13% | 7.26% | [Financial Statements and Reconciliations](index=13&type=section&id=Financial%20Statements%20and%20Reconciliations) This section provides detailed unaudited financial statements, including Consolidated Balance Sheets and Statements of Income, with reconciliations of non-GAAP measures and analysis of average balances and yields - The Consolidated Balance Sheet as of June 30, 2025, shows total assets of **$5.32 billion** and total stockholders' equity of **$533.2 million**[36](index=36&type=chunk) - The Consolidated Statement of Income for the three months ended June 30, 2025, reports net interest income of **$43.0 million** and net income of **$20.3 million**[37](index=37&type=chunk) - Detailed tables provide reconciliations for non-GAAP measures such as Tangible Common Equity, Adjusted Net Income, and Adjusted EPS to their nearest GAAP counterparts[38](index=38&type=chunk)[40](index=40&type=chunk) - The analysis of average balances shows a tax-equivalent net interest margin of **3.51%** for Q2 2025, up from **3.41%** in Q1 2025[42](index=42&type=chunk) [Other Information](index=9&type=section&id=Other%20Information) This section provides supplementary information, including investor conference call details, a corporate profile, and disclosures on non-GAAP financial measures and forward-looking statements - The company will host a conference call on Monday, July 28, 2025, at 10:00 a.m. Central Time to discuss the financial results[26](index=26&type=chunk) - Alerus is a commercial wealth bank and national retirement services provider with **29 offices** in states including North Dakota, Minnesota, Iowa, Wisconsin, and Arizona[27](index=27&type=chunk)[28](index=28&type=chunk) - The report includes non-GAAP financial measures to aid in performance analysis and contains forward-looking statements that are subject to various business and economic risks[29](index=29&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)

Alerus Financial (ALRS) Earnings Outlook - Wall Street anticipates a year-over-year increase in earnings for Alerus, with expectations of earnings per share (EPS) at $0.56, reflecting an increase of +80.7% compared to the previous year [3] - Revenues are projected to reach $69.9 million, which is a 36.1% increase from the same quarter last year [3] - The earnings report is scheduled for release on July 28, and actual results that exceed expectations could lead to a rise in stock price, while a miss could result in a decline [2] Estimate Revisions and Earnings ESP - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - Alerus has a positive Earnings ESP of +0.60%, suggesting recent bullish sentiment among analysts regarding the company's earnings prospects [11] - However, the stock currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [11] Historical Performance and Earnings Surprise - In the last reported quarter, Alerus exceeded the expected EPS of $0.43 by delivering $0.56, resulting in a surprise of +30.23% [12] - Over the past four quarters, Alerus has beaten consensus EPS estimates two times [13] Broader Industry Context - Blackstone Inc. (BX), another player in the financial services industry, is expected to report EPS of $1.09 for the same quarter, indicating a year-over-year change of +13.5% [17] - Blackstone's revenues are anticipated to be $2.77 billion, up 10.2% from the previous year [18] - The consensus EPS estimate for Blackstone has been revised 0.6% lower in the last 30 days, resulting in a negative Earnings ESP of -0.16% [18]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Alerus Financial (ALRS) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][4][7] Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market using various valuation metrics [2] - Zacks has developed a Style Scores system to categorize stocks, with a specific focus on the "Value" category for value investors [3] Group 2: Alerus Financial Metrics - Alerus Financial (ALRS) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [4] - The stock's P/E ratio is 8.97, significantly lower than the industry average of 18.52 [4] - ALRS has a P/S ratio of 1.5, compared to the industry's average P/S of 1.81, suggesting it is undervalued based on sales [5] - The P/CF ratio for ALRS is 12.70, well below the industry's average of 20.88, indicating a solid cash outlook [6] - ALRS's P/CF has fluctuated between 9.72 and 41.87 over the past year, with a median of 19.21 [6] Group 3: Overall Assessment - The combination of ALRS's strong valuation metrics and positive earnings outlook positions it as an impressive value stock currently [7]

Core Insights - The article emphasizes the importance of the Zacks Rank and various investment strategies, particularly focusing on value investing as a preferred method to identify strong stocks [1][2]. Value Investing - Value investing is highlighted as a favored approach for finding strong stocks across different market conditions, utilizing established valuation metrics [2]. - The Style Scores system is introduced, with a specific focus on the "Value" category, where stocks with "A" grades for Value and high Zacks Ranks are considered top value stocks [3]. Alerus Financial (ALRS) Analysis - Alerus Financial (ALRS) is identified as a stock to watch, currently holding a Zacks Rank of 1 (Strong Buy) and a Value grade of A [4]. - ALRS has a P/E ratio of 8.94, significantly lower than the industry average of 18.37, indicating potential undervaluation [4]. - The stock's Forward P/E has fluctuated between 19.71 and 7.50 over the past year, with a median of 10.38 [4]. Additional Valuation Metrics - The P/S ratio for ALRS is reported at 1.49, compared to the industry's average P/S of 1.81, suggesting a favorable valuation based on sales [5]. - ALRS has a P/CF ratio of 12.62, which is lower than the industry average of 20.22, indicating a solid cash flow outlook [6]. - Over the past 52 weeks, ALRS's P/CF has ranged from 41.87 to 9.72, with a median of 19.21 [6]. Conclusion on ALRS - The combination of these metrics suggests that Alerus Financial is likely undervalued, and with a strong earnings outlook, it is positioned as an impressive value stock at this time [7].

Core Viewpoint - Alerus (ALRS) shows a significantly improving earnings outlook, making it a solid choice for investors as analysts continue to raise earnings estimates for the company [1][3]. Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism about Alerus's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, Alerus is projected to earn $0.56 per share, representing an increase of +80.65% from the previous year, with a 10.46% rise in consensus estimates over the last 30 days [6]. - For the full year, the earnings estimate stands at $2.27 per share, indicating a +57.64% change from the year-ago figure, with a 10.53% increase in consensus estimates due to three upward revisions [7][8]. Zacks Rank - Alerus currently holds a Zacks Rank 1 (Strong Buy), supported by favorable estimate revisions, which historically correlate with significant outperformance compared to the S&P 500 [9]. - The Zacks Rank system has shown that stocks rated 1 have generated an average annual return of +25% since 2008, indicating strong potential for Alerus [3][9]. Investment Outlook - Alerus's stock has increased by 5.5% over the past four weeks due to strong estimate revisions, suggesting further upside potential, making it a candidate for portfolio addition [10].

Group 1: Urban Outfitters (URBN) - Urban Outfitters is a lifestyle specialty retailer offering fashion apparel, accessories, footwear, home décor, and gifts, with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Urban Outfitters' current year earnings increased by 5.6% over the last 60 days [1] - Urban Outfitters' shares gained 61.5% over the last three months, significantly outperforming the S&P 500's gain of 1.2% [2] Group 2: Flex LNG (FLNG) - Flex LNG is a shipping company focused on the transportation of liquefied natural gas, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Flex LNG's current year earnings increased by 12.1% over the last 60 days [2] - Flex LNG's shares gained 12.1% over the last three months, again outperforming the S&P 500's gain of 1.2% [3] Group 3: Alerus Financial (ALRS) - Alerus Financial is a financial services company providing banking, retirement and benefit services, wealth management, and mortgage services, with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Alerus Financial's current year earnings increased by 10.2% over the last 60 days [3] - Alerus Financial's shares gained 4.3% over the last three months, also outperforming the S&P 500's gain of 1.2% [4]

Financial Data and Key Metrics Changes - The meeting reported that over 21,765,000 common shares were represented, constituting approximately 85 percent of the outstanding shares entitled to vote [7] - The proposal to approve the compensation paid to the company's named executive officers in 2024 received majority approval from the shares present [20] - The appointment of RSM US LLP as the independent public accounting firm for the fiscal year ending 12/31/2025 was ratified by a majority vote [21] Business Line Data and Key Metrics Changes - No specific data on business lines or key metrics was provided during the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The company plans to increase the number of authorized shares of common stock, which was approved by a majority vote [21] Management's Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided during the meeting Other Important Information - The meeting included the election of nine members to the Board of Directors for a one-year term [10][12] - The meeting was conducted virtually, and stockholders were reminded to submit their votes and questions through the provided interface [3][4] Q&A Session Summary Question: Were there any questions from stockholders? - No questions were received from stockholders during the meeting [17][19]

Financial Data and Key Metrics Changes - The adjusted return on assets (ROA) improved to 1.1%, a 25 basis point increase from the previous quarter [4] - Net interest income increased by 7.5% over the prior quarter, reaching a record level of $41.2 million, while fee income decreased by 18.4% [13][15] - The net interest margin rose by 21 basis points to 3.41% [15] - Non-performing loans decreased during the quarter, contributing to a stable loan-to-deposit ratio of 91.1% [6][19] Business Line Data and Key Metrics Changes - The wealth management group generated revenues 13% higher than a year ago, indicating strong performance amid market volatility [8] - Organic loan growth was 2.3% over the prior quarter, with commercial loans now comprising over 70% of total loans [17] - Non-interest income from banking was $4.6 million for the first quarter, with a decline in mortgage revenues due to a seasonal downturn [21] Market Data and Key Metrics Changes - The company experienced a 2.4% organic growth in deposits from the prior quarter, despite pressure on non-interest bearing deposits [19] - Synergistic deposits in the retirement business grew by 8.8% over the prior quarter, indicating strong performance in that segment [24] Company Strategy and Development Direction - The company remains focused on its "One Aleris" strategy, which emphasizes a unified approach to grow its diversified business model [4] - The integration of Home Federal is on track, with cost savings and expense management being top priorities [10] - The company is engaging a consultant to optimize processes and improve efficiency as it integrates new talent [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future success, citing strong leadership and a commitment to organic growth [10] - The economic landscape remains fluid, with expectations for mid-single-digit loan growth and low-single-digit deposit growth for 2025 [29] - Management anticipates potential pressure on fee income due to market conditions but remains optimistic about mortgage originations [31] Other Important Information - The adjusted efficiency ratio improved to 66.9%, reflecting ongoing cost management efforts [10] - The company is committed to maintaining robust reserves, which increased to 1.52% of total loans [7] Q&A Session Summary Question: Margin expectations and core margin trends - Management expects core margin to improve from the current level, driven by strong loan growth and favorable spreads [36][37] Question: Update on non-accrual construction loan - The project is progressing well, with a temporary certificate of occupancy expected soon, and good interest in the property [39][40] Question: Fee income timing for wealth and retirement - Approximately 40% of retirement assets are market sensitive, assessed on an average daily balance, while wealth fees are built at quarter-end [41] Question: Opportunities in specific geographies - The company is focusing on commercial C&I growth, particularly in Arizona, Minnesota, and North Dakota, while being cautious about investor CRE [43][44] Question: Capital deployment and M&A appetite - The company is selectively pursuing organic growth and potential acquisitions in the retirement space while maintaining a strong dividend history [47] Question: Credit quality and portfolio management - Credit quality is normalized, with no significant risk of loss, and proactive measures are in place to identify risks early [55] Question: Expense growth outlook - Core expenses are expected to remain stable around the current run rate, with a focus on managing costs effectively [46][58]

Financial Data and Key Metrics Changes - The adjusted return on assets (ROA) improved to 1.1%, a 25 basis point increase from the previous quarter [4] - Net interest income increased by 7.5% over the prior quarter, reaching a record level of $41.2 million, while fee income decreased by 18.4% [12][14] - The net interest margin rose by 21 basis points to 3.41% [14] Business Line Data and Key Metrics Changes - Organic loan growth was 2.3% over the prior quarter, with commercial loans now comprising over 70% of total loans [17] - Non-interest income from banking was $4.6 million for the first quarter, with a decline in mortgage revenues due to a 20% decrease in overall mortgage originations [20] - The wealth management group generated revenues 13% higher than a year ago, despite a 1.5% decrease in revenues on a linked quarter basis [7][23] Market Data and Key Metrics Changes - The company experienced a 2.4% organic growth in deposits from the prior quarter, with a loan-to-deposit ratio remaining steady at 91.1% [18] - Synergistic deposits in the retirement business grew 8.8% over the prior quarter [23] Company Strategy and Development Direction - The company is focused on enhancing its commercial bank by targeting mid-market and business banking clients, aiming for organic growth and maintaining a diversified balance sheet [5] - The "One Aleris" strategy emphasizes a unified approach to leverage a diversified business model for growth [4] - The company is engaging a consultant to optimize processes and improve efficiency as part of its ongoing integration efforts [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future success, highlighting the importance of proactive risk management and maintaining robust reserves [7][10] - The guidance for 2025 includes expectations for mid-single-digit loan growth and low-single-digit deposit growth, with a net interest margin forecast of 3.2% to 3.3% [28][30] Other Important Information - The adjusted efficiency ratio improved to 66.9%, reflecting ongoing expense management efforts [9] - The company remains well-capitalized, with a common equity Tier 1 capital ratio of 10% [27] Q&A Session Summary Question: Margin expectations - Management expects core margin to improve from the current level of 2.94%, driven by strong loan growth and favorable spreads [35][36] Question: Update on non-accrual loans - Progress on a non-accrual construction loan is positive, with the borrower ahead of benchmarks and expected to list the project for sale soon [38][39] Question: Fee income timing - Approximately 40% of retirement assets are market-sensitive, assessed on an average daily balance, while wealth fees are built at quarter-end [40] Question: Opportunities in growth areas - The company is focusing on commercial C&I growth, particularly in Arizona, Minnesota, and North Dakota, while being cautious about investor CRE [43][44] Question: Capital deployment and M&A appetite - The company is prioritizing organic growth and selective acquisitions in the retirement space, alongside maintaining dividends [46] Question: Credit quality and provision levels - Credit quality is normalized with no significant risk of loss, and provision levels are expected to be in the $1 million to $2 million range [62]