Alerus Financial Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Alerus Financial Corp. has submitted its annual 10-K filing, detailing financial performance and position for the fiscal year ended December 31, 2023.</b>

AI Summary

ALERUS FINANCIAL CORP (ALRS) filed a Annual Report (10-K) with the SEC on March 8, 2024. Alerus Financial Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company is incorporated in Delaware and headquartered in Grand Forks, North Dakota. The filing includes financial data for the fiscal years 2023, 2022, 2021, and 2020. Key financial statement items such as retained earnings, common stock, and additional paid-in capital are detailed for multiple years. The report references financial instruments including debt securities held to maturity and available for sale, as well as standby letters of credit and commitments to extend credit.

Why It Matters

For investors and stakeholders tracking ALERUS FINANCIAL CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Alerus Financial Corp.'s financial health, operational activities, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess performance and future outlook. The detailed financial data, including balance sheets, income statements, and cash flow information across multiple years, allows for trend analysis and comparison, aiding in investment decisions and risk assessment.

Risk Assessment

Risk Level: medium — ALERUS FINANCIAL CORP shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not inherently signal immediate positive or negative developments beyond routine reporting, thus warranting a medium risk assessment for immediate actionable insight without further analysis of the content.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K filing to identify any significant trends, potential risks, or strategic shifts that may impact Alerus Financial Corp.'s future performance.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240308 — Filing Date (Filed as of date)
• 178 — Public Document Count (Total number of documents in the filing)
• 001-39036 — SEC File Number (SEC file number for the company)

Key Players & Entities

• ALERUS FINANCIAL CORP (company) — Filer name
• GRAND FORKS (location) — Business address city
• ND (location) — Business address state
• DE (location) — State of incorporation
• NATIONAL COMMERCIAL BANKS (industry) — Standard Industrial Classification
• FIRST NATIONAL CORP NORTH DAKOTA (company) — Former company name

FAQ

Industry Context

Alerus Financial Corp. operates within the National Commercial Banks industry (SIC 6021).

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the financial statements for trends in assets, liabilities, equity, revenue, and net income.
2. Review the notes to the financial statements for details on accounting policies, commitments, and contingencies.
3. Examine the risk factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K
• 2024-03-08: Filing Date — Date the 10-K was officially filed with the SEC

Year-Over-Year Comparison

This is the company's 10-K filing for the fiscal year 2023, following previous filings which would include prior annual reports and quarterly updates.

Key Financial Figures

• $1.00 — ch registered Common Stock, par value $1.00 per share ALRS The Nasdaq Stock Mar
• $17.98 — e Nasdaq Capital Market on that date of $17.98). The number of shares of the registran
• $3.9 billion — s of December 31, 2023, the Company had $3.9 billion of total assets, $2.8 billion of total
• $2.8 billion — mpany had $3.9 billion of total assets, $2.8 billion of total loans, $3.1 billion of total d
• $3.1 billion — al assets, $2.8 billion of total loans, $3.1 billion of total deposits, $369.1 million of st
• $369.1 million — loans, $3.1 billion of total deposits, $369.1 million of stockholders' equity, $36.7 billion
• $36.7 billion — $369.1 million of stockholders' equity, $36.7 billion of assets under administration/manageme
• $4.0 billion — ement and benefit services segment, and $4.0 billion of assets under administration/manageme
• $364.1 million — nded December 31, 2023, the Company had $364.1 million of mortgage originations. The Company'
• $2.0 million — y targets businesses with sales between $2.0 million and $100.0 million. The Company's comm
• $100.0 million — ses with sales between $2.0 million and $100.0 million. The Company's commitment to deliverin
• $64.0 million — tion for the merger, the Company issued $64.0 million of its common stock (valued at $23.81 p
• $23.81 — million of its common stock (valued at $23.81 per share as of July 1, 2022) in a stoc
• $270.4 million — f the acquisition, the Company acquired $270.4 million in loans and $353.7 million in deposits
• $353.7 million — ny acquired $270.4 million in loans and $353.7 million in deposits from Metro Phoenix Bank.

Filing Documents

• alrs-20231231x10k.htm (10-K) — 8509KB
• alrs-20231231xex10d7.htm (EX-10.7) — 39KB
• alrs-20231231xex10d12.htm (EX-10.12) — 18KB
• alrs-20231231xex10d13.htm (EX-10.13) — 30KB
• alrs-20231231xex10d32.htm (EX-10.32) — 75KB
• alrs-20231231xex21d1.htm (EX-21.1) — 10KB
• alrs-20231231xex23d1.htm (EX-23.1) — 6KB
• alrs-20231231xex23d2.htm (EX-23.2) — 2KB
• alrs-20231231xex31d1.htm (EX-31.1) — 10KB
• alrs-20231231xex31d2.htm (EX-31.2) — 11KB
• alrs-20231231xex32d1.htm (EX-32.1) — 6KB
• alrs-20231231xex32d2.htm (EX-32.2) — 6KB
• alrs-20231231xex97d1.htm (EX-97.1) — 46KB
• alrs-20231231x10k002.jpg (GRAPHIC) — 76KB
• alrs-20231231x10k011.jpg (GRAPHIC) — 4KB
• alrs-20231231x10k012.jpg (GRAPHIC) — 5KB
• alrs-20231231xex10d12001.jpg (GRAPHIC) — 4KB
• alrs-20231231xex23d1001.jpg (GRAPHIC) — 4KB
• 0001558370-24-002829.txt (&nbsp;) — 34899KB
• alrs-20231231.xsd (EX-101.SCH) — 127KB
• alrs-20231231_cal.xml (EX-101.CAL) — 225KB
• alrs-20231231_def.xml (EX-101.DEF) — 605KB
• alrs-20231231_lab.xml (EX-101.LAB) — 1163KB
• alrs-20231231_pre.xml (EX-101.PRE) — 1003KB
• alrs-20231231x10k_htm.xml (XML) — 9153KB

Business

Item 1. Business 5

Risk Factors

Item 1A. Risk Factors 21

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 58

Cybersecurity

Item 1C. Cybersecurity 58

Properties

Item 2. Properties 60

Legal Proceedings

Item 3. Legal Proceedings 60

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 60 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 60

[Reserved]

Item 6. [Reserved] 63

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 63

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 94

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 97

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 163

Controls and Procedures

Item 9A. Controls and Procedures 163

Other Information

Item 9B. Other Information 164

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 164 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 164

Executive Compensation

Item 11. Executive Compensation 164

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 164

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 165

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 165 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 166

Form 10-K Summary

Item 16. Form 10-K Summary 170

Signatures

Signatures 171 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Alerus Financial Corporation, or the Company. These statements are often, but not always, identified by words such as "may", "might", "should", "could", "predict", "potential", "believe", "expect", "continue", "will", "anticipate", "seek", "estimate", "intend", "plan", "projection", "would", "annualized", "target" and "outlook", or the negative version of those words or other comparable words of a future or forward-looking nature. Examples of forward-looking statements include, among others, statements the Company makes regarding projected growth, anticipated future financial performance, financial condition, credit quality and management's long-term performance goals and the future plans and prospects of Alerus Financial Corporation. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of the Company's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. The Company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important

BUSINESS

ITEM 1. BUSINESS Company Overview and History Alerus Financial Corporation, or the Company, is a diversified financial services company headquartered in Grand Forks, North Dakota. Through the Company's subsidiary, Alerus Financial, National Association, or the Bank, the Company provides innovative and comprehensive financial solutions to businesses and consumers through four distinct business segments—banking, retirement and benefit services, wealth management, and mortgage. These solutions are delivered through a relationship oriented primary point of contact along with responsive and client friendly technology. As of December 31, 2023, the Company had $3.9 billion of total assets, $2.8 billion of total loans, $3.1 billion of total deposits, $369.1 million of stockholders' equity, $36.7 billion of assets under administration/management in the Company's retirement and benefit services segment, and $4.0 billion of assets under administration/management in the Company's wealth management segment. For the year ended December 31, 2023, the Company had $364.1 million of mortgage originations. The Company's business model produces strong financial performance and a diversified revenue stream, which has helped the Company establish a brand and culture yielding both a loyal client base and passionate and dedicated employees. The Company believes its client first and advice-based philosophy, diversified business model and history of high performance and growth distinguishes the Company from other financial service providers. The Company generates its revenues from both net interest income and noninterest income. Net interest income is derived from offering the Company's traditional banking products and services. Noninterest income is driven primarily by the Company's retirement and benefit services, wealth management, and mortgage business segments. The remainder of revenue consists of net interest income, which derives from offering the Company's traditional banking p

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View this 10-K filing on SEC EDGAR