10-Q 1 alrs-20230930x10q.htm 10-Q
http://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#AccruedLiabilitiesAndOtherLiabilities0000903419--12-312023Q3false001984770619991681http://alerus.com/20230930#ThreeMonthCmeSofrMemberhttp://alerus.com/20230930#ThreeMonthCmeSofrMemberhttp://alerus.com/20230930#ThreeMonthLiborMemberhttp://alerus.com/20230930#ThreeMonthLiborMemberhttp://fasb.org/us-gaap/2023#AccruedLiabilitiesAndOtherLiabilitieshttp://fasb.org/us-gaap/2023#OtherAssetshttp://fasb.org/us-gaap/2023#AccruedLiabilitiesAndOtherLiabilitieshttp://fasb.org/us-gaap/2023#ValuationTechniqueDiscountedCashFlowMemberhttp://fasb.org/us-gaap/2023#ValuationTechniqueDiscountedCashFlowMember0000903419us-gaap:StandbyLettersOfCreditMember2023-09-300000903419us-gaap:CommitmentsToExtendCreditMember2023-09-300000903419us-gaap:StandbyLettersOfCreditMember2022-12-310000903419us-gaap:CommitmentsToExtendCreditMember2022-12-3100009034192021-02-182021-02-1800009034192021-02-180000903419us-gaap:CommonStockMember2023-07-012023-09-300000903419us-gaap:CommonStockMember2022-07-012022-09-300000903419us-gaap:RetainedEarningsMember2023-09-300000903419us-gaap:CommonStockMember2023-09-300000903419us-gaap:AdditionalPaidInCapitalMember2023-09-300000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000903419us-gaap:RetainedEarningsMember2023-06-300000903419us-gaap:CommonStockMember2023-06-300000903419us-gaap:AdditionalPaidInCapitalMember2023-06-300000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:RetainedEarningsMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:CommonStockMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AdditionalPaidInCapitalMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000903419us-gaap:RetainedEarningsMember2022-12-310000903419us-gaap:CommonStockMember2022-12-310000903419us-gaap:AdditionalPaidInCapitalMember2022-12-310000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2022-12-310000903419us-gaap:RetainedEarningsMember2022-09-300000903419us-gaap:CommonStockMember2022-09-300000903419us-gaap:AdditionalPaidInCapitalMember2022-09-300000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000903419us-gaap:RetainedEarningsMember2022-06-300000903419us-gaap:CommonStockMember2022-06-300000903419us-gaap:AdditionalPaidInCapitalMember2022-06-300000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000903419us-gaap:RetainedEarningsMember2021-12-310000903419us-gaap:CommonStockMember2021-12-310000903419us-gaap:AdditionalPaidInCapitalMember2021-12-310000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000903419us-gaap:FederalHomeLoanBankAdvancesMember2022-12-310000903419us-gaap:FederalFundsPurchasedMember2022-12-310000903419alrs:EquityIncentivePlan2019Member2023-09-300000903419alrs:EquityIncentivePlan2019Member2019-05-060000903419alrs:RestrictedStockAwardsAndUnitsMember2022-12-310000903419alrs:RestrictedStockAwardsAndUnitsMember2022-09-300000903419alrs:RestrictedStockAwardsAndUnitsMember2021-12-310000903419alrs:RestrictedStockAwardsAndUnitsMember2023-01-012023-09-300000903419alrs:RestrictedStockAwardsAndUnitsMember2022-01-012022-09-300000903419us-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMember2023-09-300000903419us-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMember2022-12-310000903419srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2023-09-300000903419srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputDiscountRateMember2023-09-300000903419srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2023-09-300000903419srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2023-09-300000903419us-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputDiscountRateMember2023-09-300000903419srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2022-12-310000903419srt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputDiscountRateMember2022-12-310000903419srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2022-12-310000903419srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2022-12-310000903419us-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputDiscountRateMember2022-12-310000903419us-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2023-09-300000903419us-gaap:FairValueInputsLevel3Memberalrs:ServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2022-12-310000903419us-gaap:DepositAccountMember2023-07-012023-09-300000903419alrs:WealthManagementMember2023-07-012023-09-300000903419alrs:RetirementAndBenefitServicesMember2023-07-012023-09-300000903419us-gaap:DepositAccountMember2023-01-012023-09-300000903419alrs:WealthManagementMember2023-01-012023-09-300000903419alrs:RetirementAndBenefitServicesMember2023-01-012023-09-300000903419us-gaap:DepositAccountMember2022-07-012022-09-300000903419alrs:WealthManagementMember2022-07-012022-09-300000903419alrs:RetirementAndBenefitServicesMember2022-07-012022-09-300000903419us-gaap:DepositAccountMember2022-01-012022-09-300000903419alrs:WealthManagementMember2022-01-012022-09-300000903419alrs:RetirementAndBenefitServicesMember2022-01-012022-09-300000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000903419us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000903419us-gaap:UnfundedLoanCommitmentMember2023-01-012023-09-300000903419us-gaap:UnfundedLoanCommitmentMember2023-09-300000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:UnfundedLoanCommitmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:UnfundedLoanCommitmentMember2022-12-310000903419us-gaap:AccountingStandardsUpdate201613Memberus-gaap:UnfundedLoanCommitmentMember2022-12-310000903419us-gaap:UnfundedLoanCommitmentMember2022-12-310000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberalrs:LoansHeldForSaleMember2023-09-300000903419us-gaap:FairValueMeasurementsNonrecurringMemberalrs:LoansHeldForSaleMember2023-09-300000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMemberalrs:LoansHeldForSaleMember2022-12-310000903419us-gaap:FairValueMeasurementsNonrecurringMemberalrs:LoansHeldForSaleMember2022-12-310000903419alrs:LetterOfCreditWithFederalHomeLoanBankMember2023-09-300000903419alrs:LetterOfCreditWithFederalHomeLoanBankMember2022-12-310000903419us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-07-012023-09-300000903419us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-07-012023-09-300000903419us-gaap:DesignatedAsHedgingInstrumentMember2023-07-012023-09-300000903419us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300000903419us-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300000903419us-gaap:CorporateNonSegmentMember2023-07-012023-09-300000903419alrs:RetirementAndBenefitServicesMember2023-09-300000903419alrs:BankingSegmentMember2023-09-300000903419alrs:RetirementAndBenefitServicesMember2022-12-310000903419alrs:BankingSegmentMember2022-12-310000903419us-gaap:CustomerRelatedIntangibleAssetsMember2023-09-300000903419us-gaap:CoreDepositsMember2023-09-300000903419us-gaap:CustomerRelatedIntangibleAssetsMember2022-12-310000903419us-gaap:CoreDepositsMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2023-07-012023-09-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2023-07-012023-09-300000903419us-gaap:UnallocatedFinancingReceivablesMember2023-07-012023-09-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2023-01-012023-09-300000903419us-gaap:UnallocatedFinancingReceivablesMember2023-01-012023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2022-07-012022-09-300000903419us-gaap:UnallocatedFinancingReceivablesMember2022-07-012022-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2022-01-012022-09-300000903419us-gaap:UnallocatedFinancingReceivablesMember2022-01-012022-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMemberus-gaap:SubstandardMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMemberus-gaap:PassMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMemberalrs:FinancingReceivables30To89DaysPastDueMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMemberus-gaap:SubstandardMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMemberus-gaap:PassMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMemberalrs:FinancingReceivables30To89DaysPastDueMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMemberus-gaap:PassMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMemberalrs:FinancingReceivables30To89DaysPastDueMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberalrs:FinancingReceivables30To89DaysPastDueMember2023-09-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMemberus-gaap:SpecialMentionMember2023-09-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMemberus-gaap:PassMember2023-09-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:FinancingReceivables30To89DaysPastDueMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:FinancialAssetNotPastDueMember2023-09-300000903419us-gaap:CommercialBorrowerMemberalrs:FinancingReceivables30To89DaysPastDueMember2023-09-300000903419us-gaap:SubstandardMember2023-09-300000903419us-gaap:SpecialMentionMember2023-09-300000903419us-gaap:PassMember2023-09-300000903419us-gaap:FinancialAssetNotPastDueMember2023-09-300000903419us-gaap:AssetPledgedAsCollateralMember2023-09-300000903419alrs:FinancingReceivables30To89DaysPastDueMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMemberus-gaap:SubstandardMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMemberus-gaap:PassMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMemberalrs:FinancingReceivables30To89DaysPastDueMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMemberus-gaap:SubstandardMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMemberus-gaap:SpecialMentionMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMemberus-gaap:PassMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMemberalrs:FinancingReceivables30To89DaysPastDueMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMemberus-gaap:SubstandardMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMemberus-gaap:PassMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMemberalrs:FinancingReceivables30To89DaysPastDueMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberalrs:FinancingReceivables30To89DaysPastDueMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SubstandardMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:SpecialMentionMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:PassMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMemberalrs:FinancingReceivables30To89DaysPastDueMember2022-12-310000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMemberus-gaap:SubstandardMember2022-12-310000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMemberus-gaap:PassMember2022-12-310000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:SubstandardMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:SpecialMentionMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:PassMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberalrs:FinancingReceivables30To89DaysPastDueMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:SubstandardMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:SpecialMentionMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:PassMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310000903419us-gaap:CommercialBorrowerMemberalrs:FinancingReceivables30To89DaysPastDueMember2022-12-310000903419us-gaap:SubstandardMember2022-12-310000903419us-gaap:SpecialMentionMember2022-12-310000903419us-gaap:PassMember2022-12-310000903419us-gaap:FinancialAssetNotPastDueMember2022-12-310000903419us-gaap:AssetPledgedAsCollateralMember2022-12-310000903419alrs:FinancingReceivables30To89DaysPastDueMember2022-12-310000903419us-gaap:UnallocatedFinancingReceivablesMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2023-06-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2023-06-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2023-06-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-06-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2023-06-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2023-06-300000903419us-gaap:UnallocatedFinancingReceivablesMember2023-06-300000903419us-gaap:ConsumerBorrowerMember2023-06-300000903419us-gaap:CommercialBorrowerMember2023-06-3000009034192023-06-300000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:UnallocatedFinancingReceivablesMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ConsumerBorrowerMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:CommercialBorrowerMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:UnallocatedFinancingReceivablesMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ConsumerBorrowerMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:CommercialBorrowerMember2022-12-310000903419us-gaap:UnallocatedFinancingReceivablesMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2022-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2022-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2022-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2022-09-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2022-09-300000903419us-gaap:UnallocatedFinancingReceivablesMember2022-09-300000903419us-gaap:ConsumerBorrowerMember2022-09-300000903419us-gaap:CommercialBorrowerMember2022-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2022-06-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2022-06-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2022-06-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-06-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2022-06-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2022-06-300000903419us-gaap:UnallocatedFinancingReceivablesMember2022-06-300000903419us-gaap:ConsumerBorrowerMember2022-06-300000903419us-gaap:CommercialBorrowerMember2022-06-3000009034192022-06-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2021-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2021-12-310000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2021-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2021-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2021-12-310000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2021-12-310000903419us-gaap:UnallocatedFinancingReceivablesMember2021-12-310000903419us-gaap:ConsumerBorrowerMember2021-12-310000903419us-gaap:CommercialBorrowerMember2021-12-310000903419alrs:RestrictedStockAwardsAndUnitsMember2023-09-300000903419us-gaap:RetainedEarningsMember2023-07-012023-09-300000903419us-gaap:RetainedEarningsMember2023-01-012023-09-300000903419us-gaap:RetainedEarningsMember2022-07-012022-09-300000903419us-gaap:RetainedEarningsMember2022-01-012022-09-300000903419us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000903419alrs:TbaMortgageBackedSecuritiesMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-12-310000903419us-gaap:InterestRateSwapMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-07-012023-09-300000903419us-gaap:InterestRateLockCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-07-012023-09-300000903419alrs:TbaMortgageBackedSecuritiesMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-07-012023-09-300000903419alrs:ForwardLoanSalesCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-07-012023-09-300000903419us-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-07-012023-09-300000903419us-gaap:InterestRateSwapMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-01-012023-09-300000903419us-gaap:InterestRateLockCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-01-012023-09-300000903419alrs:TbaMortgageBackedSecuritiesMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-01-012023-09-300000903419alrs:ForwardLoanSalesCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-01-012023-09-300000903419us-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-01-012023-09-300000903419us-gaap:InterestRateSwapMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-07-012022-09-300000903419us-gaap:InterestRateLockCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-07-012022-09-300000903419alrs:TbaMortgageBackedSecuritiesMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-07-012022-09-300000903419alrs:ForwardLoanSalesCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-07-012022-09-300000903419us-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-07-012022-09-300000903419us-gaap:InterestRateSwapMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-01-012022-09-300000903419us-gaap:InterestRateLockCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-01-012022-09-300000903419alrs:TbaMortgageBackedSecuritiesMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-01-012022-09-300000903419alrs:ForwardLoanSalesCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-01-012022-09-300000903419us-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-01-012022-09-300000903419alrs:TbaMortgageBackedSecuritiesMember2022-12-310000903419us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300000903419us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300000903419us-gaap:InterestRateSwapMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-09-300000903419us-gaap:InterestRateLockCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-09-300000903419alrs:TbaMortgageBackedSecuritiesMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-09-300000903419alrs:ForwardLoanSalesCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-09-300000903419us-gaap:NotDesignatedAsHedgingInstrumentTradingMember2023-09-300000903419us-gaap:InterestRateSwapMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-12-310000903419us-gaap:InterestRateLockCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-12-310000903419alrs:ForwardLoanSalesCommitmentsMemberus-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-12-310000903419us-gaap:NotDesignatedAsHedgingInstrumentTradingMember2022-12-310000903419alrs:TbaMortgageBackedSecuritiesMember2023-09-300000903419alrs:InterestRateSwapByCustomerMember2023-09-300000903419alrs:InterestRateSwapByCompanyMember2023-09-300000903419alrs:InterestRateSwapByCustomerMember2022-12-310000903419alrs:ObligationsOfStateAndPoliticalAgenciesMember2022-12-310000903419alrs:ObligationsOfStateAndPoliticalAgenciesMember2023-09-300000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Memberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2023-09-300000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2023-09-300000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2023-09-300000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2023-09-300000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2023-09-300000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2023-09-300000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2023-09-300000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2023-09-300000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000903419us-gaap:FairValueMeasurementsRecurringMember2023-09-300000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2022-12-310000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2022-12-310000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2022-12-310000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMember2022-12-310000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateBondSecuritiesMember2022-12-310000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310000903419us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2022-12-310000903419us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000903419us-gaap:FairValueMeasurementsRecurringMember2022-12-310000903419us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2023-09-300000903419us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember2022-12-310000903419us-gaap:FederalHomeLoanBankAdvancesMember2023-09-300000903419us-gaap:FederalFundsPurchasedMember2023-09-300000903419us-gaap:FederalHomeLoanBankAdvancesMember2022-09-300000903419us-gaap:FederalFundsPurchasedMember2022-09-300000903419us-gaap:FederalHomeLoanBankAdvancesMember2023-07-012023-09-300000903419us-gaap:FederalFundsPurchasedMember2023-07-012023-09-300000903419us-gaap:FederalHomeLoanBankAdvancesMember2023-01-012023-09-300000903419us-gaap:FederalFundsPurchasedMember2023-01-012023-09-300000903419us-gaap:FederalHomeLoanBankAdvancesMember2022-07-012022-09-300000903419us-gaap:FederalFundsPurchasedMember2022-07-012022-09-300000903419us-gaap:FederalHomeLoanBankAdvancesMember2022-01-012022-09-300000903419us-gaap:FederalFundsPurchasedMember2022-01-012022-09-300000903419alrs:LetterOfCreditWithBankOfNorthDakotaMember2023-09-300000903419alrs:LetterOfCreditWithBankOfNorthDakotaMember2022-12-310000903419alrs:SubordinatedNotesPayableMember2023-09-300000903419alrs:JuniorSubordinatedDebentureTrustIMember2023-09-300000903419alrs:JuniorSubordinatedDebentureTrustIiMember2023-09-300000903419alrs:SubordinatedNotesPayableMember2022-12-310000903419alrs:JuniorSubordinatedDebentureTrustIMember2022-12-310000903419alrs:JuniorSubordinatedDebentureTrustIiMember2022-12-310000903419alrs:JuniorSubordinatedDebentureTrustIMember2022-01-012022-12-310000903419alrs:JuniorSubordinatedDebentureTrustIiMember2022-01-012022-12-310000903419us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-3000009034192022-09-3000009034192021-12-310000903419us-gaap:CorporateBondSecuritiesMember2023-09-300000903419us-gaap:CommercialMortgageBackedSecuritiesMember2023-09-300000903419us-gaap:CorporateBondSecuritiesMember2022-12-310000903419us-gaap:CommercialMortgageBackedSecuritiesMember2022-12-310000903419alrs:USTreasuryAndAgenciesMember2023-09-300000903419us-gaap:ResidentialMortgageBackedSecuritiesMember2022-12-310000903419alrs:USTreasuryAndAgenciesMember2022-12-310000903419alrs:HousingProjectsMemberalrs:InvestmentCreditsMember2023-07-012023-09-300000903419alrs:HousingProjectsMember2023-07-012023-09-300000903419alrs:HousingProjectsMemberalrs:InvestmentCreditsMember2023-01-012023-09-300000903419alrs:HousingProjectsMember2023-01-012023-09-300000903419alrs:HousingProjectsMemberalrs:InvestmentCreditsMember2022-07-012022-09-300000903419alrs:HousingProjectsMember2022-07-012022-09-300000903419alrs:HousingProjectsMemberalrs:InvestmentCreditsMember2022-01-012022-09-300000903419alrs:HousingProjectsMember2022-01-012022-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2023-07-012023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2023-07-012023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-07-012023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2023-07-012023-09-300000903419us-gaap:ConsumerBorrowerMember2023-07-012023-09-300000903419us-gaap:CommercialBorrowerMember2023-07-012023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2023-01-012023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2023-01-012023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-01-012023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2022-07-012022-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2022-07-012022-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-07-012022-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2022-07-012022-09-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2022-07-012022-09-300000903419us-gaap:ConsumerBorrowerMember2022-07-012022-09-300000903419us-gaap:CommercialBorrowerMember2022-07-012022-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2022-01-012022-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2022-01-012022-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-01-012022-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2022-01-012022-09-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2022-01-012022-09-300000903419us-gaap:ConsumerBorrowerMember2022-01-012022-09-300000903419us-gaap:CommercialBorrowerMember2022-01-012022-09-300000903419alrs:EquityIncentivePlan2019Member2023-07-012023-09-300000903419alrs:EquityIncentivePlan2019Member2023-01-012023-09-300000903419alrs:EquityIncentivePlan2019Member2022-07-012022-09-300000903419alrs:EquityIncentivePlan2019Member2022-01-012022-09-300000903419us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000903419us-gaap:CommonStockMember2023-01-012023-09-300000903419us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300000903419us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000903419us-gaap:CommonStockMember2022-01-012022-09-300000903419us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-3000009034192023-10-310000903419alrs:MetroPhoenixBankMember2023-09-300000903419us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300000903419us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000903419us-gaap:FairValueMeasurementsNonrecurringMemberalrs:ImpairedLoansMember2023-09-300000903419us-gaap:FairValueMeasurementsNonrecurringMemberalrs:ImpairedLoansMember2022-12-310000903419alrs:ProportionalAmortizationMember2023-09-300000903419alrs:ProportionalAmortizationMember2022-12-310000903419alrs:VisaMemberus-gaap:CommonClassAMember2023-09-300000903419alrs:VisaMemberus-gaap:CommonClassAMember2022-12-310000903419us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300000903419us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000903419us-gaap:OperatingSegmentsMemberalrs:WealthManagementMember2023-07-012023-09-300000903419us-gaap:OperatingSegmentsMemberalrs:RetirementAndBenefitServicesMember2023-07-012023-09-300000903419us-gaap:OperatingSegmentsMemberalrs:MortgageMember2023-07-012023-09-300000903419us-gaap:OperatingSegmentsMemberalrs:BankingSegmentMember2023-07-012023-09-300000903419us-gaap:OperatingSegmentsMemberalrs:WealthManagementMember2023-01-012023-09-300000903419us-gaap:OperatingSegmentsMemberalrs:RetirementAndBenefitServicesMember2023-01-012023-09-300000903419us-gaap:OperatingSegmentsMemberalrs:MortgageMember2023-01-012023-09-300000903419us-gaap:OperatingSegmentsMemberalrs:BankingSegmentMember2023-01-012023-09-300000903419us-gaap:CorporateNonSegmentMember2023-01-012023-09-300000903419us-gaap:OperatingSegmentsMemberalrs:WealthManagementMember2022-07-012022-09-300000903419us-gaap:OperatingSegmentsMemberalrs:RetirementAndBenefitServicesMember2022-07-012022-09-300000903419us-gaap:OperatingSegmentsMemberalrs:MortgageMember2022-07-012022-09-300000903419us-gaap:OperatingSegmentsMemberalrs:BankingSegmentMember2022-07-012022-09-300000903419us-gaap:CorporateNonSegmentMember2022-07-012022-09-300000903419us-gaap:OperatingSegmentsMemberalrs:WealthManagementMember2022-01-012022-09-300000903419us-gaap:OperatingSegmentsMemberalrs:RetirementAndBenefitServicesMember2022-01-012022-09-300000903419us-gaap:OperatingSegmentsMemberalrs:MortgageMember2022-01-012022-09-300000903419us-gaap:OperatingSegmentsMemberalrs:BankingSegmentMember2022-01-012022-09-300000903419us-gaap:CorporateNonSegmentMember2022-01-012022-09-300000903419us-gaap:FairValueInputsLevel3Memberalrs:ImpairedLoansMemberus-gaap:MeasurementInputComparabilityAdjustmentMemberus-gaap:MarketApproachValuationTechniqueMember2023-09-300000903419us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2023-09-300000903419us-gaap:FairValueMeasurementsNonrecurringMember2023-09-300000903419us-gaap:FairValueInputsLevel3Memberalrs:ImpairedLoansMemberus-gaap:MeasurementInputComparabilityAdjustmentMemberus-gaap:MarketApproachValuationTechniqueMember2022-12-310000903419us-gaap:ResidentialMortgageBackedSecuritiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300000903419alrs:MortgageLoanPoolsMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-09-300000903419us-gaap:DesignatedAsHedgingInstrumentMember2023-09-300000903419us-gaap:FairValueInputsLevel3Memberalrs:ForeclosedAssetsMemberus-gaap:MeasurementInputComparabilityAdjustmentMemberus-gaap:MarketApproachValuationTechniqueMember2023-09-300000903419us-gaap:FairValueInputsLevel3Memberalrs:ForeclosedAssetsMemberus-gaap:MeasurementInputComparabilityAdjustmentMemberus-gaap:MarketApproachValuationTechniqueMember2022-12-310000903419us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2022-12-310000903419us-gaap:FairValueMeasurementsNonrecurringMember2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Member2022-12-310000903419srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AccountingStandardsUpdate201613Member2022-12-3100009034192022-01-012022-12-310000903419us-gaap:ConsumerBorrowerMemberalrs:RealEstateFirstMortgageMember2023-01-012023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:RealEstateJuniorLienMember2023-01-012023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2023-01-012023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2023-01-012023-09-300000903419us-gaap:ConsumerBorrowerMember2023-01-012023-09-300000903419us-gaap:CommercialBorrowerMember2023-01-012023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberalrs:RealEstateJuniorLienMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberalrs:RealEstateFirstMortgageMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherCollateralMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:RealEstateJuniorLienMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherCollateralMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMember2023-09-300000903419us-gaap:RealEstateMember2023-09-300000903419alrs:OtherCollateralMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2023-09-300000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2023-09-300000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateJuniorLienMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberus-gaap:ResidentialPortfolioSegmentMemberalrs:RealEstateFirstMortgageMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310000903419us-gaap:CommercialBorrowerMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310000903419us-gaap:CommercialBorrowerMemberalrs:RealEstateConstructionPortfolioSegmentMember2022-12-310000903419us-gaap:ConsumerBorrowerMember2022-12-310000903419us-gaap:CommercialBorrowerMember2022-12-310000903419us-gaap:ConsumerBorrowerMemberalrs:RealEstateFirstMortgageMember2023-09-300000903419us-gaap:ConsumerBorrowerMemberalrs:OtherRevolvingAndInstallmentPortfolioSegmentMember2023-09-300000903419us-gaap:ConsumerBorrowerMember2023-09-300000903419us-gaap:CommercialBorrowerMember2023-09-300000903419us-gaap:ResidentialMortgageBackedSecuritiesMember2023-09-300000903419alrs:JuniorSubordinatedDebentureTrustIMember2023-01-012023-09-300000903419alrs:JuniorSubordinatedDebentureTrustIiMember2023-01-012023-09-300000903419srt:SubsidiariesMember2023-09-300000903419srt:SubsidiariesMember2022-12-310000903419alrs:VisaMemberus-gaap:CommonClassBMember2023-01-012023-09-300000903419alrs:VisaMemberus-gaap:CommonClassBMember2023-09-300000903419alrs:VisaMemberus-gaap:CommonClassBMember2022-12-3100009034192023-07-012023-09-3000009034192022-07-012022-09-300000903419us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300000903419us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-09-300000903419us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-09-300000903419us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000903419us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000903419us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-3100009034192023-09-3000009034192022-12-3100009034192023-01-012023-09-3000009034192022-01-012022-09-30iso4217:USDxbrli:purealrs:loanxbrli:sharesalrs:itemiso4217:USDxbrli:sharesalrs:derivativealrs:segment

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-39036

ALERUS FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

45-0375407

(State or other jurisdiction of incorporation or

(I.R.S. Employer Identification No.)

organization)

401 Demers Avenue

Grand Forks, ND

58201

(Address of principal executive offices)

(Zip Code)

(701) 795-3200

(Registrant’s telephone number, including area code)

Securities registered pursuant to section 12(b) of the Act:

Title of each class

    

Trading symbol

    

Name of each exchange on which registered

Common Stock, par value $1.00 per share

ALRS

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes   No 

The number of shares of the registrant’s common stock outstanding at October 31, 2023 was 19,776,006.

Alerus Financial Corporation and Subsidiaries

Table of Contents

Page

Part 1:

FINANCIAL INFORMATION

Item 1.

Consolidated Financial Statements

1

Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022

1

Consolidated Statements of Income for the three and nine months ended September 30, 2023 and 2022

2

Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2023 and 2022

3

Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2023 and 2022

4

Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022

6

Notes to Consolidated Financial Statements

8

Item 2.

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

45

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

69

Item 4.

Controls and Procedures

71

Part 2:

OTHER INFORMATION

Item 1.

Legal Proceedings

71

Item 1A.

Risk Factors

71

Item 2.

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

71

Item 3.

Defaults Upon Senior Securities

72

Item 4.

Mine Safety Disclosures

72

Item 5.

Other Information

72

Item 6.

Exhibits

73

Signatures

74

PART 1. FINANCIAL INFORMATION

Item 1 - Consolidated Financial Statements

Alerus Financial Corporation and Subsidiaries

Consolidated Balance Sheets

    

September 30, 

    

December 31, 

(dollars in thousands, except share and per share data)

    

2023

    

2022

Assets

 

(Unaudited)

 

(Audited)

Cash and cash equivalents

$

64,724

$

58,242

Investment securities

 

  

 

  

Available-for-sale, at fair value

 

640,001

 

717,324

Held-to-maturity, at carrying value (allowance for credit losses on investments of $218 September 30, 2023)

 

303,268

 

321,902

Loans held for sale

 

16,346

 

9,488

Loans

 

2,606,430

 

2,443,994

Allowance for credit losses on loans

 

(36,290)

 

(31,146)

Net loans

 

2,570,140

 

2,412,848

Land, premises and equipment, net

 

17,182

 

17,288

Operating lease right-of-use assets

 

5,986

 

5,419

Accrued interest receivable

 

15,561

 

12,869

Bank-owned life insurance

 

33,012

 

33,991

Goodwill

 

46,783

 

47,087

Other intangible assets

 

18,482

 

22,455

Servicing rights

 

2,214

 

2,643

Deferred income taxes, net

 

47,978

 

42,369

Other assets

 

87,461

 

75,712

Total assets

$

3,869,138

$

3,779,637

Liabilities and Stockholders’ Equity

 

  

 

  

Deposits

 

  

 

  

Noninterest-bearing

$

717,990

$

860,987

Interest-bearing

 

2,154,194

 

2,054,497

Total deposits

 

2,872,184

 

2,915,484

Short-term borrowings

 

515,470

 

378,080

Long-term debt

 

58,928

 

58,843

Operating lease liabilities

 

6,286

 

5,902

Accrued expenses and other liabilities

 

66,868

 

64,456

Total liabilities

 

3,519,736

 

3,422,765

Stockholders’ equity

 

  

 

  

Preferred stock, $1 par value, 2,000,000 shares authorized: 0 issued and outstanding

Common stock, $1 par value, 30,000,000 shares authorized: 19,847,706 and 19,991,681 issued and outstanding

 

19,848

 

19,992

Additional paid-in capital

 

151,875

 

155,095

Retained earnings

 

291,162

 

280,426

Accumulated other comprehensive income (loss)

 

(113,483)

 

(98,641)

Total stockholders’ equity

 

349,402

 

356,872

Total liabilities and stockholders’ equity

$

3,869,138

$

3,779,637

See accompanying notes to consolidated financial statements (unaudited)

1

Alerus Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

Three months ended

Nine months ended

September 30, 

September 30, 

(dollars and shares in thousands, except per share data)

    

2023

    

2022

    

2023

    

2022

Interest Income

Loans, including fees

$

34,986

$

25,379

$

99,187

$

60,659

Investment securities

 

  

 

  

 

  

 

  

Taxable

 

6,146

 

5,939

 

18,222

 

17,447

Exempt from federal income taxes

 

182

 

209

 

558

 

638

Other

 

724

 

748

 

2,221

 

1,021

Total interest income

 

42,038

 

32,275

120,188

 

79,765

Interest Expense

 

  

 

  

 

  

 

  

Deposits

 

14,436

 

1,852

 

36,218

 

3,494

Short-term borrowings

 

6,528

 

1,516

 

15,684

 

1,794

Long-term debt

 

679

 

591

 

1,999

 

1,712

Total interest expense

 

21,643

 

3,959

 

53,901

 

7,000

Net interest income

 

20,395

 

28,316

 

66,287

 

72,765

Provision for credit losses

 

 

 

550

 

Net interest income after provision for credit losses

 

20,395

 

28,316

 

65,737

 

72,765

Noninterest Income

 

  

 

  

 

  

 

  

Retirement and benefit services

 

18,605

 

16,597

 

49,977

 

50,536

Wealth management

 

5,271

 

4,852

 

15,915

 

15,726

Mortgage banking

 

2,510

 

3,782

 

7,132

 

14,751

Service charges on deposit accounts

 

328

 

377

 

940

 

1,152

Other

 

1,693

 

1,402

 

5,475

 

3,541

Total noninterest income

 

28,407

 

27,010

 

79,439

 

85,706

Noninterest Expense

 

  

 

  

 

  

 

  

Compensation

 

19,071

 

21,168

 

57,076

 

61,467

Employee taxes and benefits

 

4,895

 

5,079

 

15,472

 

17,028

Occupancy and equipment expense

 

1,883

 

1,925

 

5,619

 

5,713

Business services, software and technology expense

 

4,774

 

5,373

 

15,367

 

15,082

Intangible amortization expense

 

1,324

 

1,324

 

3,972

 

3,430

Professional fees and assessments

 

1,716

 

3,126

 

4,397

 

6,913

Marketing and business development

 

692

 

890

 

2,026

 

2,304

Supplies and postage

 

410

 

588

 

1,275

 

1,806

Travel

 

322

 

291

 

876

 

826

Mortgage and lending expenses

 

689

 

409

 

1,401

 

1,577

Other

 

1,484

 

2,594

 

4,022

 

4,676

Total noninterest expense

 

37,260

 

42,767

 

111,503

 

120,822

Income before income taxes

 

11,542

 

12,559

 

33,673

 

37,649

Income tax expense

 

2,381

 

2,940

 

7,222

 

8,553

Net income

$

9,161

$

9,619

$

26,451

$

29,096

Per Common Share Data

Basic earnings per common share

$

0.46

$

0.48

$

1.31

$

1.58

Diluted earnings per common share

$

0.45

$

0.47

$

1.30

$

1.56

Dividends declared per common share

$

0.19

$

0.18

$

0.56

$

0.52

Average common shares outstanding

 

19,872

 

19,987

 

19,977

 

18,186

Diluted average common shares outstanding

 

20,095

 

20,230

 

20,193

 

18,431

See accompanying notes to consolidated financial statements (unaudited)

2

Alerus Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

Three months ended

Nine months ended

September 30, 

September 30, 

(dollars in thousands)

    

2023

    

2022

    

2023

    

2022

Net Income

$

9,161

$

9,619

$

26,451

$

29,096

Other Comprehensive Income (Loss), Net of Tax

 

  

 

  

 

  

 

  

Net change in unrealized gains (losses) on available-for-sale securities

 

(19,074)

 

(43,305)

 

(23,782)

 

(131,424)

Accretion of losses on debt securities reclassified to held-to-maturity

(80)

(91)

(251)

(290)

Net change in unrealized gain (losses) on cash flow hedging derivatives

1,216

1,216

Reclassification adjustment for losses (gains) realized in income

 

(205)

 

 

(205)

 

Net change in unrealized gain (losses) on other derivatives

1,132

3,206

Total other comprehensive income (loss), before tax

 

(17,011)

 

(43,396)

 

(19,816)

 

(131,714)

Income tax expense (benefit) related to items of other comprehensive income (loss)

 

(4,270)

 

(10,892)

 

(4,974)

 

(33,060)

Other comprehensive income (loss), net of tax

 

(12,741)

 

(32,504)

 

(14,842)

 

(98,654)

Total comprehensive income (loss)

$

(3,580)

$

(22,885)

$

11,609

$

(69,558)

See accompanying notes to consolidated financial statements (unaudited)

3

Alerus Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

Three months ended September 30, 2023

Accumulated

Additional

Other

Common

Paid-in

Retained

Comprehensive

(dollars and shares in thousands)

    

Stock

    

Capital

    

Earnings

    

Income (Loss)

    

Total

Balance as of June 30, 2023

$

19,915

$

152,673

$

285,839

$

(100,742)

$

357,685

Net income

 

 

 

9,161

 

 

9,161

Other comprehensive income (loss)

 

 

 

 

(12,741)

 

(12,741)

Common stock repurchased

 

(70)

 

(1,172)

 

 

 

(1,242)

Common stock dividends

 

 

 

(3,838)

 

 

(3,838)

Share‑based compensation expense

 

 

377

 

 

 

377

Vesting of restricted stock

 

3

(3)

 

 

 

Balance as of September 30, 2023

$

19,848

$

151,875

$

291,162

$

(113,483)

$

349,402

Nine months ended September 30, 2023

Accumulated

Additional

Other

Common

Paid-in

Retained

Comprehensive

(dollars in thousands)

    

Stock

    

Capital

    

Earnings

    

Income (Loss)

    

Total

Balance as of December 31, 2022

$

19,992

$

155,095

$

280,426

$

(98,641)

$

356,872

Cumulative effect of change in accounting principles, net of tax

(4,452)

(4,452)

Balance as of January 1, 2023

19,992

155,095

275,974

(98,641)

352,420

Net income

 

 

 

26,451

 

 

26,451

Other comprehensive income (loss)

 

 

 

 

(14,842)

 

(14,842)

Common stock repurchased

 

(257)

 

(4,299)

 

 

 

(4,556)

Common stock dividends

 

 

 

(11,263)

 

 

(11,263)

Share‑based compensation expense

 

18

 

1,174

 

 

 

1,192

Vesting of restricted stock

 

95

 

(95)

 

 

 

Balance as of September 30, 2023

$

19,848

$

151,875

$

291,162

$

(113,483)

$

349,402

Three months ended September 30, 2022

Accumulated

Additional

Other

Common

Paid-in

Retained

Comprehensive

(dollars in thousands)

    

Stock

    

Capital

    

Earnings

    

Income (Loss)

    

Total

Balance as of June 30, 2022

$

17,306

$

93,129

$

267,128

$

(70,405)

$

307,158

Net income

 

 

 

9,619

 

 

9,619

Other comprehensive income (loss)

 

 

 

 

(32,504)

 

(32,504)

Common stock repurchased

 

 

 

 

 

Common stock dividends

 

 

 

(3,615)

 

 

(3,615)

Stock issuance from the acquisition of Metro Phoenix Bank

2,681

61,149

63,830

Share‑based compensation expense

 

 

351

 

 

 

351

Vesting of restricted stock

 

 

 

 

 

Balance as of September 30, 2022

$

19,987

$

154,629

$

273,132

$

(102,909)

$

344,839

4

Nine months ended September 30, 2022

Accumulated

Additional

Other

Common

Paid-in

Retained

Comprehensive

(dollars in thousands)

    

Stock

    

Capital

    

Earnings

    

Income (Loss)

    

Total

Balance as of December 31, 2021

$

17,213

$

92,878

$

253,567

$

(4,255)

$

359,403

Net income

 

 

 

29,096

 

 

29,096

Other comprehensive income (loss)

 

 

 

 

(98,654)

 

(98,654)

Common stock repurchased

 

(24)

 

(673)

 

 

 

(697)

Common stock dividends

 

 

 

(9,531)

 

 

(9,531)

Stock issuance from the acquisition of Metro Phoenix Bank

2,681

61,149

63,830

Share‑based compensation expense

 

10

 

1,382

 

 

 

1,392

Vesting of restricted stock

 

107

 

(107)

 

 

 

Balance as of September 30, 2022

$

19,987

$

154,629

$

273,132

$

(102,909)

$

344,839

See accompanying notes to consolidated financial statements (unaudited)

5

Alerus Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

Nine months ended

September 30, 

(dollars in thousands)

    

2023

    

2022

Operating Activities

 

  

 

  

Net income

$

26,451