Katie A. Lorenson

President and Chief Executive Officer at ALERUS FINANCIAL

Board

Since 2021

Age

44 years

Tenure

Joined ALRS in December 2017 as Executive Vice President and Chief Financial Officer, and was promoted to President and Chief Executive Officer in 2021.

Also at ALERUS FINANCIAL

DEC

Daniel E. Coughlin

Director and Executive Chairman

AAV

Alan A. Villalon

Executive Vice President and Chief Financial Officer

FRW

Forrest R. Wilson

Executive Vice President and Chief Retirement Services Officer

About

Katie A. Lorenson is a seasoned financial executive with a robust professional background in financial services and strategic leadership.

She has held key roles earlier in her career, including positions at RSM, serving as Manager on the Financial Institutions Team, and as Chief Financial Officer at both Central Bancshares, Inc. and MidWest One Financial Group, Inc..

At ALRS, she joined in December 2017 as Executive Vice President and Chief Financial Officer and was subsequently promoted to President and Chief Executive Officer in 2021, where she now oversees multiple financial service areas including retirement, wealth management, mortgage, and banking products.

$ALRS Performance Under Katie A. Lorenson

Past Roles

Organization	Role	Date Range	Details
ALRS	Executive Vice President and Chief Financial Officer	Dec 2017 - 2021	Held role before promotion to President & CEO
ALRS	Leader of Retirement, Wealth Management, Mortgage & Banking Product Areas	2020	Assumed leadership over key product areas preceding CEO appointment
MidWestOne Financial Group, Inc.	Chief Financial Officer	N/A	Served as CFO following acquisition of Central Bancshares in 2015
Central Bancshares, Inc.	Chief Financial Officer	N/A	Held the CFO role prior to its acquisition by MidWestOne Financial Group
RSM (formerly McGladrey & Pullen)	Manager on the Financial Institutions Team	N/A	Worked on the Financial Institutions Team

Fixed Compensation

Data from FY 2024

Component Name	Amount	Payment Schedule	Additional Details
Base Salary	$600,000	Annual	Reflects a 9% increase from 2023; annual base salary for 2024
Stock Awards - Time-Based	$144,000	3-year vesting	6,594 RSUs granted on February 27, 2024; vesting on February 27, 2027; grant date fair value of $21.84 per share under the 2019 Equity Incentive Plan
All Other Compensation	$36,340	Regular Payment	Includes perquisites of $10,465, Company 401(k) Match of $15,525, and ESOP contributions of $10,350

Performance Compensation

Data from FY 2024

Bonus Component

Metric	Threshold	Target	Maximum	Weight	Actual Results
Adjusted Net Income (ANI)	$23.733 million	$27.921 million	$32.109 million	50%	$27.955 million
Adjusted Total Revenue	$169.304 million	$199.181 million	$229.058 million	25%	$218.035 million
Return on Equity (ROE)	6.10%	7.18%	8.62%	25%	7.03%

Evaluation Period: Calendar year 2024
Bonus Achievement: 106.0% of target, adjusted to 104.0%
Target Bonus Amount: $330,000
Bonus Paid: $343,200

Performance-Based RSUs

Detail	Value
Grant Date	February 27, 2024
Grant Date Fair Value	$216,000
Grant Date Stock Price	$21.84 per share
Threshold Shares	4,945
Target Shares	9,890
Maximum Shares	14,835
Vesting Schedule	Vesting based on performance over a 3-year period (January 1, 2024 – December 31, 2026) with vesting on February 27, 2027; subject to meeting performance targets

Summary

The performance compensation for 2024 includes a Bonus Component based on key financial metrics (Adjusted Net Income, Adjusted Total Revenue, and ROE) with specific thresholds, targets, maximums, and weightings, resulting in a bonus payout of $343,200. Additionally, the Performance-Based RSUs are granted with defined share thresholds and vesting conditions over a three-year performance period, supporting alignment with long-term company performance and shareholder interests.