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Alerus Financial, National Association

Grand Forks, ND · Cert 3931 · Alerus Financial Corp.

National charter · OCC · 26 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks $1B-$10B in assets3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks $1B-$10B in assets (n=322 to 328). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

31

Q2 2024Q2 2026peer median (50)

Asset Quality

42

Q2 2024Q2 2026peer median (50)

Profitability

80

Q2 2024Q2 2026peer median (50)

Liquidity

42

Q2 2024Q2 2026peer median

Efficiency

36

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Alerus Financial, National Association

Grand Forks, ND · Cert 3931 · Alerus Financial Corp.

National charter · OCC · 26 branches

Q2 2026

$5.3BAssets
$4.1BLoans
$4.2BDeposits
$580.4MEquity
Loan mix
82%RE $3.2B17%C&I $0.7B1%Consumer $0.0BQ2 2025Q2 2026
Deposit mix
81%Interest-bearing $3.4B19%Noninterest $0.8BQ2 2025Q2 2026

NIM

4.85%Q2 ’245.30%Q2 ’255.26%Q2 ’26+46%+10%

Non-interest income vs. expense

3.59%Q2 ’243.69%Q2 ’253.86%Q2 ’26+31%+0%

Market Position · Minneapolis-St. Paul-Bloomington, MN-WI · 2026 SOD (annual) · 0.8% share · #12 of 125 inst. · $2.0B of $253.2B

1.3% Hennepin
5.4% Cass
20.3% Grand Forks
6.6% Olmsted

Executive Summary

  • Earnings: ROA of 1.78%, up 41 bps year over year; NIM at 3.68%.
  • Asset quality: problem loans at 0.26% of loans (-89 bps YoY), with net charge-offs at 0.47%.
  • Capital: tier 1 leverage ratio of 9.26%, down 8 bps from a year ago.
  • Funding: loans stand at 95.80% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.78%+41 bps YoY

Net Interest Margin (YTD, annualized)

3.68%+34 bps YoY

Efficiency Ratio (YTD, annualized)

61.42%-152 bps YoY

Tier 1 Leverage Ratio

9.26%-8 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.37%1.36%0.42%1.81%1.78%+41 bps
Return on Equity13.93%13.69%4.16%16.77%16.35%+242 bps
Net Interest Margin3.34%3.29%3.36%3.57%3.68%+34 bps
Efficiency Ratio62.93%63.33%63.18%62.77%61.42%-152 bps
Non-Interest Burden1.42%1.43%1.45%1.46%1.43%0 bps
Growth
Asset Growth (YoY)22.30%30.68%-0.78%-0.93%-0.68%-2,299 bps
Loan Growth (YoY)39.25%35.26%1.52%-1.01%-1.27%-4,052 bps
Deposit Growth (YoY)30.12%31.47%-4.21%-3.02%-3.24%-3,335 bps
Asset Quality
Nonperforming Loans / Loans1.16%1.45%1.63%1.32%0.26%-89 bps
Net Charge-Offs / Loans0.21%0.08%0.05%0.69%0.47%+27 bps
Allowance / Loans1.44%1.51%1.52%1.24%1.19%-25 bps
Allowance Coverage of NPLs1.2x1.0x0.9x0.9x4.5x+3.3x
Capital
Tier 1 Leverage Ratio9.34%9.31%8.62%9.11%9.26%-8 bps
Total Risk-Based Capital12.04%12.25%11.66%12.00%12.11%+7 bps
Equity / Assets10.12%10.36%10.77%10.86%11.00%+88 bps
Liquidity & Funding
Loans / Deposits93.89%92.41%95.96%92.35%95.80%+191 bps
Liquid Assets / Assets5.53%5.84%5.45%6.60%5.91%+38 bps
CRE / Total Capitaln/a422%438%429%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Alerus Financial, National Association

Grand Forks, ND · Cert 3931 · Peer group: banks $1B-$10B in assets (n=322-328) · Alerus Financial Corp.

National charter · OCC · 26 branches

Q2 2026

$5.3BAssets
$4.1BLoans
$4.2BDeposits
$580.4MEquity

Executive Summary

  • Strongest standing: return on assets outperforms 87% of banks $1B-$10B in assets (rank 42 of 328).
  • Widest gap: net charge-offs / loans trails 89% of banks $1B-$10B in assets (rank 289 of 322).
  • Overall: at or above the peer median on 5 of 9 directional measures.

Return on Assets

1.77%

Rank 42 of 328

Net Interest Margin

3.68%

Rank 107 of 328

Efficiency Ratio

63.92%

Rank 211 of 328

Equity / Assets

11.00%

Rank 128 of 328

Non-interest income vs. expense

$127.4M$201.9MINCOMEEXPENSE
Unfavorable gap of $74.6M · efficiency ratio beats 36% of banks $1B-$10B in assets
Bank 63.92%Peer median 59.6%Q2 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.77%0.91%1.22%1.52%Beats 87%42 / 328
Return on Equity16.10%8.43%11.45%14.43%Beats 86%47 / 328
Net Interest Margin3.68%3.03%3.45%3.83%Beats 67%107 / 328
Efficiency Ratio63.92%51.61%59.56%67.53%Beats 36%211 / 328
Asset Quality
Nonperforming Loans / Loans0.26%0.24%0.51%1.03%Beats 73%89 / 322
Net Charge-Offs / Loans0.27%0.01%0.03%0.10%Beats 11%289 / 322
Capital
Tier 1 Capital Ratio10.92%11.75%13.15%15.47%Beats 13%287 / 328
Total Risk-Based Capital Ratio12.11%12.63%14.15%16.46%Beats 20%264 / 328
Equity / Assets11.00%9.15%10.33%12.01%Beats 61%128 / 328
Liquidity & Funding
Loans / Deposits95.80%76.63%87.92%95.36%77th pctl75 / 323
Loans / Assets76.96%65.18%74.15%79.98%64th pctl118 / 328
Brokered Deposits / Depositsn/aNot reported for this institution