Alerus Financial (ALRS) investor relations material

Executive summary

• Net income for Q2 2026 was $20.9 million ($0.81 per diluted share), up 3% year-over-year, with strong execution, diversified revenue streams, and improved credit quality.

• Adjusted pre-provision net revenue rose 7.1% sequentially, with net interest margin up to 3.97% and noninterest income over 40% of total revenue.

• Commercial relationships grew over 20%, core deposit franchise expanded, and retirement and wealth assets exceeded $50 billion.

• Continued investments in leadership, technology, and talent to drive operational efficiency and scalability.

• The company operates through banking, retirement and benefit services, and wealth advisory segments.

Financial highlights

• Net interest income for Q2 2026 was $47.7 million, up 6.2% sequentially and 10.9% year-over-year, with net interest margin at 3.97%.

• Noninterest income for Q2 2026 was $32.9 million, up 6.8% sequentially and 3.7% year-over-year, driven by property sale gains and higher wealth advisory fees.

• Adjusted diluted EPS was $0.80; reported EPS was $0.81.

• Tangible book value per share increased 3.2% from prior quarter and 16.26% year-over-year to $18.73.

• Efficiency ratio for Q2 2026 was 62.53%.

Outlook and guidance

• Full-year reported net interest margin expected at 3.7%-3.8%, with mid-single-digit loan growth and low single-digit deposit growth anticipated.

• Revenues projected to rise mid-single digits; non-interest expenses to increase low to mid-single digits.

• Full-year ROA expected above 1.25%.

• Management remains focused on executing long-term growth strategy, investing in talent and capabilities, and sustaining value creation.

• Lower mortgage originations expected due to potential rate hikes.