GlobeNewswire·May 19, 2026, 2:45 PM ET

Alerus Financial Corporation Announces Sale of Three Nonperforming Loans

Alerus Financial Corporation closed on the sale of three non-performing loans totaling $33.6 million net book balance as of March 31, 2026.
The sold relationship involved construction, land, & development loans & represented the largest non-performing asset in the portfolio.
As of March 31, 2026, the relationship accounted for 62.3% of total non-performing loans & 62.1% of total non-performing assets.
Nonperforming assets to total loans stood at 1.34% on March 31, 2026, but would have been 0.51% had the relationship been excluded.
The loans carried specific reserves of $3.1 million as of March 31, 2026.
No historical or transaction-related charge-offs were recorded for this relationship.
$1.6 million in nonaccrual interest was recorded in connection with the sale.
CEO Katie O'Neill Lorenson cited the transaction as evidence of the company's credit culture & early risk identification.
Alerus operates 26 banking & commercial wealth offices across North Dakota, Minnesota, Iowa, Wisconsin, & Arizona.
The press release includes standard forward-looking statements regarding future performance & potential risks.