Brendan Nosal's questions to ALERUS FINANCIAL (ALRS) leadership • Q2 2025
Question
Brendan Nosal from Hovde Group asked about the potential gain on a pending loan sale, capital deployment priorities, and the reasons for flat revenue in the retirement business despite AUA growth. He also followed up on the full-year fee income outlook, questioning the conservative guidance given strong year-to-date results.
Answer
EVP & CFO Al Villalon noted the upcoming loan sale would have a minimal loss. President & CEO Katie Lorenson reiterated capital priorities of organic growth, dividends, and retirement M&A. EVP & Chief Retirement Services Officer Forrest Wilson clarified that a one-time cleanup of zero-balance HSA accounts caused a participant decline without impacting revenue. Al Villalon attributed the fee income guidance to a seasonal downturn in mortgage and no assumed market improvements.