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Alerus Financial Corporation (ALRS) is a diversified financial services company headquartered in Grand Forks, North Dakota. It provides innovative financial solutions to businesses and consumers through banking, retirement and benefit services, and wealth management. ALRS delivers its services through a relationship-oriented approach supported by responsive technology.
- Retirement and Benefit Services - Administers retirement plans, investment fiduciary services, health savings accounts, and COBRA recordkeeping across all 50 states.
- Banking - Offers loans, deposits, cash management, and treasury services, including commercial and residential mortgage loans.
- Wealth Management - Provides advisory and planning services, investment management, and trust and fiduciary services.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Daniel E. Coughlin ExecutiveBoard | Director and Executive Chairman | Daniel E. Coughlin serves as the Executive Chairman and Director at ALRS since 2016. He brings over 40 years of financial services experience from roles at the Federal Reserve Bank, Howe Barnes Hoefer & Arnett, and Raymond James & Associates. | ||
Katie A. Lorenson ExecutiveBoard | President and Chief Executive Officer | Katie A. Lorenson is the President and Chief Executive Officer of Alerus Financial Corporation, a role she has held since 2021. She joined the company as Executive Vice President and Chief Financial Officer in December 2017 and was appointed to the board as a Director in 2021. | View Report → | |
Alan A. Villalon Executive | Executive Vice President and Chief Financial Officer | Alan A. Villalon is the Executive Vice President and Chief Financial Officer at Alerus Financial Corporation since 2022. He brings over 25 years of industry experience and previously served as Deputy Director of Investor Relations and Senior Vice President at U.S. Bank from 2020 to 2022, and worked as a Senior Research Analyst at Nuveen Asset Management/First American Funds Advisors. | ||
Forrest R. Wilson Executive | Executive Vice President and Chief Retirement Services Officer | Forrest R. Wilson is the Executive Vice President and Chief Retirement Services Officer at Alerus Financial Corporation since February 26, 2024. He brings over 25 years of retirement industry experience, including a prior role as Senior Vice President of Retirement Plans Sales and Distribution at Ameritas Mutual Holding Company from December 2018 to February 2024. | ||
Jim R. Collins Executive | Executive Vice President and Chief Banking and Revenue Officer | Jim R. Collins is the Executive Vice President and Chief Banking and Revenue Officer at Alerus Financial Corporation. He has held this role since May 2022 and brings over 30 years of commercial banking experience to the company. | ||
Karin M. Taylor Executive | Executive Vice President and Chief Operating Officer | Karin M. Taylor is the Executive Vice President and Chief Operating Officer at Alerus since November 2018. She has over 30 years of industry experience, having previously served as Executive Vice President and Chief Risk Officer at Alerus. | ||
Missy S. Keney Executive | Executive Vice President and Chief Engagement Officer | Missy S. Keney is the Executive Vice President and Chief Engagement Officer at Alerus since July 2022, where she oversees the company’s employee and client engagement strategies. Previously, she served as Director of Marketing and Client Experience after joining Alerus in 2005, significantly contributing to the firm's marketing and client initiatives. | ||
Galen G. Vetter Board | director | Galen G. Vetter has been a director of ALRS since 2013 and currently serves as the Chair of the Audit Committee and a member of the Compensation Committee. He has extensive experience in financial leadership from his previous roles at Franklin Templeton Investments and RSM. | ||
Janet O. Estep Board | Director | Board member at ACI Worldwide; Member of Nominating and Governance Committee at ACI Worldwide; Member of Audit/Risk Committee at ACI Worldwide | Janet O. Estep has served as a Director at ALRS since October 2021, where she also serves as Chair of the Nominating and Corporate Governance Committee and as a member of the Risk Committee. She brings over 35 years of experience in financial services and previously held executive roles, including serving as CEO of Nacha. | |
John Uribe Board | Director | Chief Financial Officer at Blue Cross and Blue Shield of Minnesota | John Uribe is a Director at Alerus Financial Corporation, serving on the Audit and Risk Committees since December 2023. He is also the Chief Financial Officer at Blue Cross and Blue Shield of Minnesota since 2022. | |
Mary E. Zimmer Board | Director | Mary E. Zimmer has been a director at ALRS since October 2021 and currently chairs the Compensation Committee. With over 35 years of financial services experience, she has held leadership roles at Wells Fargo Advisors and Royal Bank of Canada U.S. Wealth Management. | ||
Nikki L. Sorum Board | director | Nikki L. Sorum has served as a director at Alerus Financial Corporation since December 2023, and she is a member of both the Compensation and Risk Committees, bringing 40 years of financial services industry experience including leadership roles at Thrivent Financial, RBC Wealth Management, and McKinsey & Co. | ||
Randy L. Newman Board | Director | Randy L. Newman served as President from 1987 and as CEO from 1995 until his retirement on January 1, 2022; he now serves as a Director and Chair of the Risk Committee at ALRS, leveraging his extensive background in banking and corporate governance. |
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In light of your multifamily construction project now with a current exposure of $28 million that could increase to $36–37 million, what specific steps are you taking to control further cost escalations and ensure the timeline stays on track despite exterior work extending into the second quarter?
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With your acquisition of Home Federal driving significant organic growth and margin improvements, how sustainable are these synergy-driven cost savings given that full savings are expected to materialize over a longer period, and what contingencies are in place if they fall short?
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You mentioned targeting a deposit beta increase from 30% to 45% in the first half of 2025; what precise measures will you employ to achieve this, and how would unforeseen market rate changes impact your margin improvement strategy?
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As you continue balance sheet optimization initiatives while integrating new markets and clients, how do you plan to mitigate potential disruptions to client relationships if such restructuring efforts further compress margins or affect service levels?
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With core noninterest expense growth expected in the low double digits, can you detail how you intend to balance rising personnel costs and production volatility against the backdrop of your anticipated efficiency ratio improvement below 70% for 2025?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
HMN Financial, Inc. | 2024 | The acquisition was an all-stock transaction valued at approximately $128.8 million, where each HMN share converted into 1.25 shares of Alerus common stock (with cash paid for fractional shares) and expanded Alerus's footprint in Rochester, Minnesota, raising its assets to about $5.5 billion. The deal received all regulatory approvals, included notable merger-related expenses, and resulted in board changes with increased strategic capabilities. |
Metro Phoenix Bank | 2022 | This all-stock acquisition, completed on July 1, 2022, converted each common share of Metro Phoenix Bank into 0.74 shares of Alerus common stock, expanding Alerus's presence in Arizona with Metro Phoenix Bank’s $399.0 million in total assets and leadership continuity provided by Steve Haggard. The acquisition also supported Alerus's long-term strategic expansion across its key business segments. |
Recent press releases and 8-K filings for ALRS.
- Strong earnings performance: Q1 net income reached $13.3M with adjusted net income of $14.35M and an adjusted return on average tangible common equity of 17.61%.
- Record net interest income of $41.2M and an improved net interest margin, with adjusted ROA up by 25 basis points.
- Robust interest income growth: Net interest income increased by 7.5%, driven by lower funding costs and higher yielding assets.
- Expanding balance sheet: Loans grew by 2.3% (up $93M) and deposits increased by 2.4% (up $107M), reinforcing financial strength.
- Strategic progress: Fully integrated HMNF acquisition and organic growth bolstered diversification across loans, deposits, and wealth management.
- Guidance for 2025 includes mid-single digit loan growth, low single digit deposit growth, and a net interest margin target of 3.2%-3.3% with an efficiency ratio below 68%.
- The Board of Directors declared a $0.20 per share cash dividend on February 26, 2025, marking a 5.26% increase over the previous year; the dividend is payable on April 11, 2025, with stockholders of record as of March 14, 2025.
- Investor relations can be reached through Al Villalon at 952.417.3733 for further details.
- Net interest income increased nearly 70% to $38.3 million with a margin improvement of 97 basis points to 3.2%, driven by the HMNF acquisition and organic growth.
- The successful closing of the largest acquisition in company history – the Home Federal (HMNF) deal – boosted total assets to over $5 billion and expanded the client base by nearly 50%.
- The balance sheet was strengthened with 31.7% loan growth, supported by robust capital ratios (CET1 at 10.0%) and a 91.2% loan-to-deposit ratio.
- Earnings were bolstered with an adjusted ROTCE of 14.7% and enhanced by improved cost management that dropped the efficiency ratio from 77.71% to 68.97%, paving the way for margin accretion.
- Guidance for 2025 includes modest growth in loans and deposits and a target net interest margin of greater than 3.00%, setting the stage for continued performance improvement.