分组1 - Alerus reported quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.37 per share, and down from $0.45 per share a year ago, representing an earnings surprise of -16.22% [1] - The company posted revenues of $51.37 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 4.42%, and up from $48.01 million year-over-year [1] - Over the last four quarters, Alerus has surpassed consensus revenue estimates four times [1] 分组2 - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $50.55 million, and for the current fiscal year, it is $1.37 on revenues of $209.35 million [4] - Alerus has a Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [4] - The Financial - Miscellaneous Services industry is currently in the top 42% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [5]

Exhibit 99.1 ◾ Alan A. Villalon, Chief Financial Officer 952.417.3733 (Office) FOR RELEASE (07.24.2024) ALERUS FINANCIAL CORPORATION REPORTS SECOND QUARTER 2024 NET INCOME OF $6.2 MILLION MINNEAPOLIS, MN (July 24, 2024) – Alerus Financial Corporation (Nasdaq: ALRS), or the Company, reported net income of $6.2 million for the second quarter of 2024, or $0.31 per diluted common share, compared to net income of $6.4 million, or $0.32 per diluted common share, for the first quarter of 2024, and net income of $9 ...

Second Quarter Summary Net income of $1.0 million, down $0.4 million, from $1.4 million for second quarter of 2023Diluted earnings per share of $0.22, down $0.10, from $0.32 for second quarter of 2023Net interest income of $7.5 million, down $0.2 million, from $7.7 million for second quarter of 2023Gain on sales of loans of $0.6 million, up $0.3 million, from $0.3 million for second quarter of 2023Net interest margin of 2.70%, down 20 basis points, from 2.90% for second quarter of 2023Goodwill impairment of ...

Core Insights - The article highlights upcoming dividend increases from ten companies, with an average increase of 7.7% and a median of 7.6% [1] - The investment strategy focuses on acquiring companies that consistently raise dividends and outperform benchmarks [1] Group 1: Dividend Increases - The list includes companies with a history of at least five years of consistent dividend growth [2] - The companies featured have a range of dividend increase percentages, with notable increases from Victory Capital Holdings, Inc. at 10.45% and Hawthorn Bancshares, Inc. at 11.76% [7][10] - The ex-dividend dates for these companies are primarily in June 2024, with Travelers Companies, Inc. and CNO Financial Group, Inc. both set for June 10, 2024 [7] Group 2: Company Metrics - The forward yield for the companies ranges from 1.38% for Chubb Limited to 4.15% for Alerus Financial Corporation [7][8] - Current prices for the companies vary, with Travelers Companies, Inc. priced at $208.41 and CNO Financial Group, Inc. at $28.20 [12] - The historical performance of SCHD shows a return of about 181% over the past decade, with NDAQ, CB, and CPK outperforming this benchmark [20] Group 3: Investment Strategy - The investment approach emphasizes identifying stocks that consistently outperform the market while increasing dividends [19] - The analysis includes a focus on companies that have shown strong dividend growth, with NASDAQ being highlighted for its performance [21] - The article suggests a cautious approach to investing in companies that may have had rapid price increases followed by declines, as seen with NASDAQ [21]

Core Viewpoint - Alerus Financial has agreed to acquire HMN Financial in an all-stock deal valued at $116.4 million, marking its 26th acquisition since 2000, with expectations for closure in Q4 2024 [1][2]. Group 1: Acquisition Details - The acquisition will see HMN Financial shareholders receive 1.25 shares of Alerus Financial for each share they own [2]. - HMN Financial, through its subsidiary Home Federal Savings Bank, operates 12 branches in Minnesota and additional branches in Iowa and Wisconsin, with total assets of $1.2 billion as of March 31, 2024 [2]. - Post-acquisition, the combined entity will have nearly $5.5 billion in total assets, $3.7 billion in loans, and $4.3 billion in deposits, operating through 29 locations across the Midwest and Arizona [2]. Group 2: Financial Impact - The transaction is expected to be immediately accretive to Alerus Financial's 2025 earnings by 45%, excluding one-time expenses [3]. - The deal will yield 30% cost savings on HMN Financial's non-interest expenses, with one-time pre-tax charges of $21.7 million anticipated [3]. Group 3: Strategic Implications - This acquisition aligns with Alerus Financial's strategy of combining organic growth with inorganic expansion, diversifying its loan portfolio and enhancing market share in Rochester and other Minnesota markets [4]. - Over the past year, Alerus Financial's shares have increased by 34.7%, outperforming the industry average of 24.4% [4].

Core Viewpoint - Alerus Financial Corporation has signed a definitive Agreement and Plan of Merger to acquire HMN Financial, Inc. in an all-stock transaction valued at approximately $116.4 million, aiming to enhance its business segments and expand its market presence [1][2][4]. Company Overview - Alerus Financial Corporation is a commercial wealth bank and national retirement services provider with corporate offices in Grand Forks, North Dakota, and the Minneapolis-St. Paul, Minnesota metropolitan area [6][7]. - HMN Financial, Inc. is a savings and loan holding company headquartered in Rochester, Minnesota, operating Home Federal Savings Bank with 12 branches in Minnesota and additional locations in Iowa and Wisconsin [8]. Merger Details - The merger will result in HMNF merging with Alerus, and Home Federal merging with Alerus' wholly-owned bank subsidiary, Alerus Financial, National Association [1][2]. - Upon completion, the combined company will have approximately $5.5 billion in total assets, $3.7 billion in total loans, and $4.3 billion in total deposits, with assets under administration and management of approximately $43.1 billion [2]. - Stockholders of HMNF will receive 1.25 shares of Alerus common stock for each share of HMNF common stock they own, with the transaction expected to be immediately accretive to Alerus' estimated earnings [3][4]. Strategic Rationale - The merger is part of Alerus' long-term plan to expand its business segments, including banking, wealth services, and retirement and benefits plans [2]. - Alerus aims to leverage Home Federal's core deposit franchise and client relationships to enhance service offerings and community engagement [3]. Financial Advisors - Raymond James & Associates, Inc. served as financial advisor to Alerus, while D.A. Davidson & Co. served as financial advisor to HMNF [4].

Financial Performance - For the three months ended March 31, 2024, the return on average total assets was 0.63%, a decrease from 1.51% in the previous quarter[202]. - The return on average common equity was 7.04%, down from 16.75% in the previous quarter[202]. - Earnings per common share (basic) for the quarter was $0.32, compared to a loss of $0.74 in the previous quarter[202]. - Net income for the three months ended March 31, 2024, was $6,432 thousand, a recovery from a net loss of $14,754 thousand in the previous quarter[205]. - Net income for Q1 2024 was $6.4 million, a decrease of $1.8 million or 21.4% compared to $8.2 million in Q1 2023[211]. Income and Revenue - Noninterest income as a percentage of revenue increased to 53.26% from 51.63% in the previous quarter[202]. - Noninterest income rose to $25,323 thousand for the same period, compared to $25,253 thousand in the previous quarter, indicating a growth of 0.3%[205]. - Total interest income for the three months ended March 31, 2024, was $11.352 million, a decrease of $1.316 million compared to $12.668 million for the same period in 2023[221]. - Total noninterest income for the three months ended March 31, 2024, was $25.323 million, reflecting a slight increase of $70 thousand or 0.3% compared to $25.253 million in the same period of 2023[225]. Loans and Assets - Total loans increased to $2,768,514 thousand as of March 31, 2024, up from $2,653,622 thousand in the previous quarter, representing a growth of 4.3%[205]. - Total assets reached $4,338,093 thousand as of March 31, 2024, up from $3,907,713 thousand in the previous quarter, marking an increase of 11.0%[205]. - Total loans as of March 31, 2024, amounted to $2.768 billion, with a net interest income of $39.368 million[219]. - The total commercial loans as of March 31, 2024, were $1.861 billion, with a net interest income of $28.602 million[219]. Interest and Margins - The net interest margin (taxable-equivalent basis) decreased to 2.30% from 2.37% in the previous quarter[202]. - Net interest income for the three months ended March 31, 2024, was $22,219 thousand, compared to $21,552 thousand in the previous quarter, reflecting an increase of 3.1%[205]. - Net interest margin (tax-equivalent) for Q1 2024 was 2.30%, compared to 2.70% in Q1 2023[215]. - Adjusted net interest margin (tax-equivalent) for Q1 2024 was 2.44%, a decrease of 26 basis points from 2.70% in Q1 2023[215]. Deposits and Funding - Total deposits increased to $3,284,969 thousand as of March 31, 2024, compared to $3,095,611 thousand in the previous quarter, a rise of 6.1%[205]. - Interest-bearing deposits rose by $224.9 million, while noninterest-bearing deposits decreased by $35.6 million, leading to a shift in the deposit composition[272]. - The Company reported total uninsured deposits of approximately $1.2 billion as of March 31, 2024[276]. Credit Losses and Risk Management - The provision for credit losses was $1,507 thousand for the three months ended March 31, 2024, compared to $550 thousand in the previous quarter, indicating a significant increase[205]. - The allowance for credit losses (ACL) increased to $36,584 thousand as of March 31, 2024, from $35,102 thousand as of March 31, 2023, reflecting a growth of 4.2%[265]. - The net charge-offs for the three months ended March 31, 2024, were $58 thousand, a decrease of 65.9% compared to $170 thousand for the same period in 2023[267]. - The company’s strategy for credit risk management includes centralized credit policies and ongoing risk monitoring to maintain asset quality[255]. Equity and Capital - Stockholders' equity rose to $371,635 thousand as of March 31, 2024, up from $369,127 thousand in the previous quarter, reflecting a growth of 0.4%[208]. - Common equity tier 1 capital to risk-weighted assets increased to 11.86% as of March 31, 2024, up from 11.82% as of December 31, 2023[283]. - The Company maintained all regulatory capital ratios above the well-capitalized standards as of March 31, 2024[282]. Economic and Interest Rate Sensitivity - The company anticipates recovery in net interest income and margin as interest-earning assets remix at higher rates[216]. - As of March 31, 2024, a +400 basis points shift in interest rates is estimated to decrease net interest income by 10.9%[300]. - The economic value of equity is projected to decline by 8.5% with a +400 basis points increase in interest rates as of March 31, 2024[302]. - Management employs economic value of equity sensitivity analysis to assess the impact of interest rate changes on long-term cash flows and capital[301]. Operational and Compliance Risks - Operational risk management focuses on strengthening internal controls and enterprise risk management to mitigate potential losses[303]. - Compliance risk includes potential regulatory sanctions and reputational impacts due to non-compliance with banking regulations[304]. - Strategic risk management initiatives aim to enhance understanding and reporting of various risks associated with new products and business opportunities[305].

Alerus Financial Corporation (NASDAQ:ALRS) Q1 2024 Results Conference Call April 25, 2024 12:00 PM ET Company Participants Katie Lorenson - President and CEO Al Villalon - Chief Financial Officer Karin Taylor - Chief Risk Management Officer Jim Collins - Chief Banking and Revenue Officer Conference Call Participants Brendan Nosal - Hovde Group Jeff Rulis - D.A Davidson David Feaster - Raymond James Nathan Race - Piper Sandler Damon DelMonte - KBW Operator Good afternoon, and welcome to the Alerus Financial ...

1Q 2024 INVESTOR PRESENTATION NASDAQ: ALRS Forward-LookingStatements DISCLAIMERS Thispresentationcontains“forward-lookingstatements”withinthemeaningofthesafeharborprovisionsoftheU.S.PrivateSecuritiesLitigationReformActof1995.Forward-lookingstatements include,withoutlimitation,statementsconcerningplans,estimates,calculations,forecastsandprojectionswithrespecttotheanticipatedfutureperformanceofAlerusFinancialCorporation.These statementsareoften,butnotalways,identifiedbywordssuchas“may”,“might”,“should”,“could ...

Core Insights - Alerus reported revenue of $47.54 million for Q1 2024, a year-over-year decline of 2.8%, with EPS of $0.32 compared to $0.40 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate by 0.30%, while the EPS surprised by 3.23% [1] Financial Performance Metrics - Net charge-offs/(recoveries) to average loans was 0%, better than the estimated 0.1% [2] - Efficiency ratio stood at 78.9%, compared to the estimated 79.6% [2] - Net interest margin (tax-equivalent) was 2.4%, slightly below the estimated 2.5% [2] - Average balance of total interest-earning assets was $3.92 billion, exceeding the estimated $3.74 billion [2] - Tax-equivalent net interest income was $22.12 million, lower than the estimated $22.63 million [2] - Total noninterest income reached $25.32 million, surpassing the estimated $24.95 million [2] - Net interest income was $22.22 million, compared to the estimated $22.42 million [2] Stock Performance - Alerus shares returned -0.7% over the past month, while the Zacks S&P 500 composite declined by -3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]