Alerus Financial Corporation (ALRS): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le plan stratégique d'Alerus Financial Corporation (ALRS), une institution financière dynamique qui mélange de manière transparente la sagesse bancaire traditionnelle avec l'innovation numérique de pointe. En élaborant méticuleusement un modèle commercial qui priorise les solutions financières personnalisées, les services locaux axés sur les relations et la gestion complète de la patrimoine, Alerus s'est positionné comme une puissance financière polyvalente servant divers segments de clients, des petites entreprises aux particuliers élevés. Cette exploration de toile du modèle commercial révèle les mécanismes complexes qui stimulent le succès de l'entreprise, offrant une vision d'un initié sur la façon dont un fournisseur régional de services financiers transforme les paysages financiers complexes en expériences bancaires sur mesure et accessibles.

Alerus Financial Corporation (ALRS) - Modèle d'entreprise: partenariats clés

Fournisseurs de technologies bancaires

Alerus Financial Corporation s'associe à des fournisseurs de technologies spécifiques pour améliorer les capacités bancaires numériques:

Partenaire technologique	Service fourni	Année de mise en œuvre
Fiserv, Inc.	Plateforme bancaire de base	2022
Jack Henry & Associés	Solutions bancaires numériques	2021

Réseaux commerciaux locaux et régionaux

Les collaborations commerciales régionales stratégiques comprennent:

• Chambre de commerce du Dakota du Nord
• Minnesota Business Partnership
• Grand Forks Regional Economic Development Corporation

Sociétés d'investissement et de gestion de la patrimoine

Entreprise partenaire	Type de collaboration	Actifs sous gestion
LPL financier	Services de conseil en investissement	243 millions de dollars (2023)
Raymond James	Plate-forme de gestion de patrimoine	187 millions de dollars (2023)

Collaborateurs de services d'assurance

Détails du partenariat d'assurance:

• Blue Cross Blue Shield du Dakota du Nord
• Assurance à l'échelle nationale
• Mutuel d'Omaha

Partenaires de solution fintech

Fintech Company	Solution technologique	Date de mise en œuvre
Plaid	Vérification du compte	2022
Bande	Traitement des paiements	2023

Alerus Financial Corporation (ALRS) - Modèle d'entreprise: activités clés

Services de gestion de la patrimoine

Total des actifs sous gestion: 5,8 milliards de dollars au quatrième trimestre 2023

Catégorie de service	Revenus annuels	Segments du client
Gestion de la richesse personnelle	37,2 millions de dollars	Individus de valeur nette élevée
Planification de la retraite	22,5 millions de dollars	Clients corporatifs et individuels

Banque personnelle et commerciale

Portefeuille de prêts totaux: 2,1 milliards de dollars en 2023

• Volume de prêt commercial: 1,3 milliard de dollars
• Comptes bancaires personnels: 87 456
• Utilisateurs de la banque numérique: 62% de la clientèle

Administration du régime des avantages sociaux

Total des régimes d'avantages sociaux des employés gérés: 1 248 en 2023

Type de plan	Nombre de plans	Total des actifs administrés
Plans 401 (k)	876	1,9 milliard de dollars
Régimes de prestations définies	372	650 millions de dollars

Services de conseil en investissement

Actifs consultatifs totaux en investissement: 4,3 milliards de dollars en 2023

• Clients consultatifs institutionnels: 215
• Taille moyenne du portefeuille: 20,5 millions de dollars
• Diversification de la stratégie d'investissement dans 12 secteurs différents

Services de prêts hypothécaires et de biens immobiliers

Volume total d'origine hypothécaire: 425 millions de dollars en 2023

Type hypothécaire	Volume	Taille moyenne du prêt
Hypothèques résidentielles	312 millions de dollars	$287,000
Immobilier commercial	113 millions de dollars	1,2 million de dollars

Alerus Financial Corporation (ALRS) - Modèle d'entreprise: Ressources clés

Expertise financière du personnel professionnel

Au quatrième trimestre 2023, Alerus Financial Corporation a employé 497 membres du personnel équivalent à temps plein. La rupture de la main-d'œuvre de l'entreprise comprend:

Catégorie du personnel	Nombre d'employés
Conseillers financiers	87
Professionnels bancaires	213
Personnel technologique	76
Soutien administratif	121

Plates-formes bancaires numériques avancées

Investissement sur les infrastructures technologiques pour les plateformes numériques en 2023:

• Investissement total technologique: 6,3 millions de dollars
• Budget de développement de la plate-forme bancaire numérique: 2,1 millions de dollars
• Infrastructure de cybersécurité: 1,4 million de dollars

Forte présence du marché régional

Couverture du marché géographique à partir de 2024:

État	Nombre de branches	Dépôts totaux
Dakota du Nord	22	1,2 milliard de dollars
Minnesota	15	875 millions de dollars
Arizona	7	412 millions de dollars

Infrastructure technologique robuste

Attribution des ressources technologiques pour 2024:

• Infrastructure de cloud computing: 1,8 million de dollars
• Maintenance du centre de données: 1,2 million de dollars
• Licence et mises à jour du logiciel: 950 000 $

Portefeuille de services financiers diversifiés

Répartition des revenus par segment de service en 2023:

Segment de service	Revenus totaux	Pourcentage du total des revenus
Services bancaires	87,4 millions de dollars	42%
Gestion de la richesse	62,6 millions de dollars	30%
Services hypothécaires	38,2 millions de dollars	18%
Services de confiance et d'investissement	20,1 millions de dollars	10%

Alerus Financial Corporation (ALRS) - Modèle d'entreprise: propositions de valeur

Solutions financières personnalisées

Au quatrième trimestre 2023, Alerus Financial Corporation propose des solutions financières personnalisées avec un portefeuille de prêts total de 1,87 milliard de dollars. La banque fournit des produits bancaires personnalisés sur plusieurs segments.

Catégorie de produits	Valeur totale	Segments de clientèle
Banque personnelle	612 millions de dollars	Consommateurs individuels
Banque d'affaires	1,258 milliard de dollars	Petites et moyennes entreprises

Gestion complète de la patrimoine

Alerus gère 3,4 milliards de dollars d'actifs de gestion de patrimoine en décembre 2023.

• Services de planification de la retraite
• Gestion du portefeuille d'investissement
• Consultation de planification successorale
• Administration du compte de retraite

Banque locale axée sur les relations

Opérant dans 3 États: Dakota du Nord, du Minnesota et de l'Arizona, avec 26 emplacements bancaires physiques.

État	Nombre de branches	Pénétration du marché
Dakota du Nord	15	62%
Minnesota	8	38%
Arizona	3	12%

Services de planification financière intégrés

Clients consultatifs financiers totaux: 8 750 en 2023, avec une valeur de compte moyenne de 475 000 $.

• Évaluation financière complète
• Planification de la stratégie fiscale
• Stratégies de revenu de retraite
• Conseil de gestion des risques

Options bancaires numériques et traditionnelles flexibles

La plate-forme bancaire numérique dessert 45 000 utilisateurs bancaires en ligne actifs avec 1,2 milliard de dollars en volume de transactions numériques pour 2023.

Service numérique	Adoption des utilisateurs	Volume de transaction
Banque mobile	32 000 utilisateurs	780 millions de dollars
Banque en ligne	45 000 utilisateurs	1,2 milliard de dollars
Paiements numériques	22 000 utilisateurs	420 millions de dollars

Alerus Financial Corporation (ALRS) - Modèle d'entreprise: relations avec les clients

Représentants bancaires personnels dévoués

Alerus Financial fournit des représentants bancaires personnalisés sur ses trois principaux marchés:

Marché	Nombre de représentants dédiés
Dakota du Nord	42
Minnesota	38
Arizona	25

Conseil financier personnalisé

Alerus propose des services de conseil financier spécialisés avec les segments de clients suivants:

• Clients de gestion de la patrimoine: 7 523
• Services de planification de la retraite: 4 812
• Conseil des banques d'affaires: 1 245

Assistance bancaire en ligne et mobile

Plate-forme numérique	Utilisateurs actifs	Transactions annuelles
Application bancaire mobile	52,367	1,243,890
Portail bancaire en ligne	68,214	2,156,743

Avis financiers du client régulier

Fréquence des revues financières du client:

• Revues trimestrielles: 35% des clients à haute nette
• Avis semestriels: 45% des clients bancaires d'entreprise
• Avis annuels: 20% des clients bancaires standard

Stratégies d'engagement axées sur la communauté

Type d'engagement	Investissement annuel	Événements communautaires
Parrainages locaux	$327,500	42
Programmes d'éducation financière	$189,000	26

Alerus Financial Corporation (ALRS) - Modèle d'entreprise: canaux

Plateforme bancaire en ligne

En 2024, Alerus Financial propose une plateforme bancaire en ligne complète avec les caractéristiques suivantes:

Métrique de la plate-forme	Données spécifiques
Utilisateurs bancaires en ligne actifs	42 587 utilisateurs
Volume annuel de transaction numérique	3,2 millions de transactions
Caractéristiques de sécurité de la plate-forme	Cryptage 256 bits

Application bancaire mobile

L'application bancaire mobile d'Alerus Financial fournit:

• Surveillance du compte en temps réel
• Dépôt de chèques mobiles
• Services de paiement de factures
• Capacités de transfert entre pairs

Statistique de l'application mobile	Valeur
Utilisateurs mensuels de l'application mobile active	28 345 utilisateurs
Note de l'App Store	4.6/5

Emplacements de branche physiques

Alerus Financial maintient la présence physique dans plusieurs États:

Type d'emplacement	Nombre
Total des succursales	36 branches
États avec branches	Minnesota, Dakota du Nord
Personnel de succursale moyen	7-9 employés par emplacement

Services bancaires téléphoniques

Métriques des canaux bancaires téléphoniques:

Métrique bancaire du téléphone	Point de données
Volume d'appel mensuel	12 450 interactions client
Temps d'attente moyen	3,2 minutes
Représentants du service à la clientèle	45 Personnel dédié

Outils de communication numérique

Les canaux de communication numérique comprennent:

• Assistance par e-mail
• Plateforme de messagerie sécurisée
• Service client sur les réseaux sociaux
• Fonctionnalité de chat en direct

Métrique de communication numérique	Valeur
Interactions par e-mail mensuelles	8 675 communications clients
Temps de réponse moyen	2,7 heures

Alerus Financial Corporation (ALS) - Modèle d'entreprise: segments de clientèle

Petites et moyennes entreprises

Depuis le quatrième trimestre 2023, Alerus Financial dessert environ 2 500 clients commerciaux de petite à moyenne taille du Dakota du Nord, du Minnesota et de l'Arizona.

Segment d'entreprise	Nombre de clients	Taille moyenne des prêts commerciaux
Commerces de détail	1,200	$375,000
Services professionnels	850	$485,000
Fabrication	450	$625,000

Clients bancaires de détail individuels

Alerus Financial dessert 87 500 clients bancaires de détail individuels dans ses régions opérationnelles.

• Solde moyen du compte de chèque personnel: 12 750 $
• Comptes de dépôt personnel total: 62 300
• Utilisateurs bancaires numériques: 53 400 (61% de la clientèle totale)

Individus à haute nette

La banque maintient 1 250 relations avec les clients à haute teneur en matière de valeur avec un actif total sous gestion de 425 millions de dollars.

Support de richesse	Nombre de clients	Valeur de portefeuille moyenne
1 M $ - 5 M $	875	2,3 M $
5 M $ - 10 M $	250	6,5 M $
10 M $ +	125	15,2 M $

Sponsors du régime des avantages sociaux des employés

Alerus Financial gère les plans de retraite pour 1 850 sponsors de plan d'entreprise.

• Actifs totaux du régime de retraite: 3,2 milliards de dollars
• Taille moyenne du plan: 1,73 million de dollars
• Nombre de participants individuels: 62 500

Clients locaux et régionaux d'entreprise

La société dessert 425 clients de la banque d'entreprise sur ses marchés régionaux.

Segment de l'entreprise	Nombre de clients	Facilité de crédit moyenne
Sociétés régionales	275	5,6 millions de dollars
Entreprises locales	150	2,3 millions de dollars

Alerus Financial Corporation (ALRS) - Modèle d'entreprise: Structure des coûts

Maintenance des infrastructures technologiques

Dépenses annuelles d'infrastructure technologique pour Alerus Financial Corporation en 2023: 4,2 millions de dollars

Catégorie de coûts technologiques	Dépenses annuelles
Maintenance des systèmes informatiques	1,8 million de dollars
Infrastructure de cybersécurité	1,3 million de dollars
Licence de logiciel	$685,000
Infrastructure réseau	$415,000

Compensation et formation du personnel

Compensation totale du personnel pour 2023: 52,6 millions de dollars

• Salaire moyen des employés: 68 500 $
• Attribution des avantages sociaux: 22% de la rémunération totale
• Budget annuel de formation et de développement: 1,4 million de dollars

Succursale des dépenses opérationnelles

Total des coûts d'exploitation de la succursale en 2023: 12,3 millions de dollars

Catégorie de dépenses opérationnelles	Coût annuel
Loyer et services publics	5,6 millions de dollars
Maintenance des succursales	2,9 millions de dollars
Équipement et fournitures	1,8 million de dollars
Sécurité des succursales	2 millions de dollars

Contacments de conformité et de réglementation

Dépenses de conformité annuelles: 3,7 millions de dollars

• Conseil juridique et réglementaire: 1,2 million de dollars
• Logiciel et systèmes de conformité: 850 000 $
• Frais d'audit et de rapport: 1,65 million de dollars

Frais de marketing et d'acquisition des clients

Budget marketing total pour 2023: 6,5 millions de dollars

Catégorie de dépenses de marketing	Allocation annuelle
Marketing numérique	2,3 millions de dollars
Publicité traditionnelle	1,7 million de dollars
Campagnes d'acquisition de clients	1,5 million de dollars
Technologie marketing	1 million de dollars

Alerus Financial Corporation (ALRS) - Modèle d'entreprise: Strots de revenus

Intérêt des prêts

Pour l'exercice 2023, Alerus Financial Corporation a déclaré un revenu total d'intérêts de 138,9 millions de dollars. La rupture des revenus des intérêts du prêt est la suivante:

Catégorie de prêt	Revenu des intérêts ($ m)
Prêts commerciaux	62.4
Prêts hypothécaires résidentiels	45.3
Prêts à la consommation	31.2

Frais de service bancaire

Les frais de service bancaire pour 2023 ont totalisé 24,7 millions de dollars, avec la structure des frais suivante:

• Frais de maintenance du compte: 8,6 millions de dollars
• Frais de transaction: 7,2 millions de dollars
• Frais de découvert: 5,3 millions de dollars
• Autres services bancaires: 3,6 millions de dollars

Commissions de gestion de la patrimoine

Les revenus de gestion de la patrimoine pour 2023 ont atteint 42,5 millions de dollars, segmenté comme:

Service de gestion de patrimoine	Revenus de commission ($ m)
Gestion des actifs	22.1
Planification financière	12.3
Planification de la retraite	8.1

Revenus de conseil en investissement

Les revenus de conseil en placement pour 2023 étaient de 18,6 millions de dollars, avec la distribution suivante:

• Services de conseil institutionnel: 10,2 millions de dollars
• Conseil d'investissement individuel: 6,4 millions de dollars
• Conseil d'investissement alternatif: 2,0 millions de dollars

Frais de transaction de prêt hypothécaire

Les frais de transaction de prêts hypothécaires pour 2023 ont totalisé 15,3 millions de dollars, structurés comme suit:

Type de transaction hypothécaire	Revenus de frais ($ m)
Origination hypothécaire résidentielle	9.7
Frais de refinancement	4.2
Autres services hypothécaires	1.4

Alerus Financial Corporation (ALRS) - Canvas Business Model: Value Propositions

You're looking at what Alerus Financial Corporation actually offers its clients and the market, which is really about stability through structure. The core value is built around its Diversified Commercial Wealth Bank model, which is designed for economic resilience. This isn't just a simple bank; it's a structure meant to weather different economic cycles by balancing lending with significant fee-based services.

One of the most compelling value points is the revenue mix. Alerus Financial Corporation consistently delivers a high proportion of revenue from fees, which is less sensitive to interest rate swings than pure lending income. For the third quarter of 2025, fee income hit $29.4 million. That figure represented 40.6% of total revenues for the quarter. This level of noninterest income is explicitly positioned as being over double the banking industry average, which was cited around 19% in the second quarter of 2025. That's a defintely strong differentiator.

The firm emphasizes its integrated One Alerus approach, which drives deeper, more comprehensive client relationships. This isn't just a buzzword; you see it in the numbers related to commercial clients. For instance, over 70% of their commercial deposits now come with a treasury management relationship attached. This shows they are successfully cross-selling services beyond basic deposits, locking in the client across multiple product lines.

A significant part of that integrated offering is the provision of full fiduciary wealth management and advising for clients. While transactional revenues like brokerage commissions can fluctuate, the underlying asset base shows growth. End of quarter assets under management in the Wealth Management business increased by 4.3% on a linked-quarter basis in Q3 2025, primarily due to market performance. This indicates clients are entrusting Alerus Financial Corporation with more assets to manage and advise upon.

Finally, the balance sheet structure itself is a value proposition, signaling safety and capacity for growth. They maintain a strong balance sheet, evidenced by a disciplined approach to funding. As of September 30, 2025, the loan-to-deposit ratio stood at 93.0%. This ratio, based on total loans of $4.1 billion and total deposits of $4.4 billion at that date, shows they are utilizing their deposit base effectively for lending without becoming overly reliant on wholesale funding.

Here's a quick look at the key Q3 2025 financial metrics supporting these value propositions:

Metric	Value (Q3 2025)	Significance to Value Proposition
Fee Income	$29.4 million	Drives revenue diversification and stability
Fee Income % of Total Revenue	40.6%	Highlights reliance on non-interest income streams
Loan-to-Deposit Ratio	93.0%	Indicates balanced balance sheet management
Net Interest Margin	3.50%	Shows core lending profitability
Total Loans	$4.1 billion	Scale of the commercial and consumer lending book

The combination of a high-fee component, deep client relationships, and a well-managed balance sheet forms the bedrock of what Alerus Financial Corporation offers.

Alerus Financial Corporation (ALRS) - Canvas Business Model: Customer Relationships

Relationship-driven commercial and private banking service.

Alerus Financial Corporation continues to execute its One Alerus strategy, focusing on growing the franchise through full relationships that span commercial banking, treasury management, private banking, and wealth management. Growth in the banking segment was primarily driven by continued expansion to full commercial relationships. As of the third quarter of 2025, over 70% of Alerus Financial Corporation's commercial deposits now have a treasury management relationship with the firm. Commercial loans made up over 70% of total loans as of the first quarter of 2025. The loan-to-deposit ratio remained stable at 93% in the third quarter of 2025. The firm is focused on deepening client relationships and expanding in growth markets. Since the close of the Home Federal acquisition, the net retention rate has remained strong, close to 97% as of the second quarter of 2025 and over 97% as of the third quarter of 2025.

The depth of the relationship focus is evident in the integration of services:

• The firm is targeting a full C&I relationship Return on Equity (ROE) over 12% in banking.
• Average deposit account size has grown over 20% since the end of 2019 due to focused efforts to grow in the commercial space.

The synergistic deposit growth derived from retirement relationships provides exceptionally stable funding with no related branch or client service costs.

Metric	Value as of Late 2025	Period End Date
Total Deposits	$4.4 billion	September 30, 2025
Synergistic Deposits	$1.0 billion	March 31, 2025
Synergistic Deposit Growth (QoQ)	7.5%	March 31, 2025
HSA Deposits	Over $202 million	September 30, 2025

Dedicated financial advisors for wealth management clients are supported by platform enhancements aimed at better service delivery. Alerus Financial Corporation is investing in talent and technology to deepen client relationships, with a long-term goal of doubling the number of wealth advisers. Wealth revenue showed strong year-over-year growth, increasing 15.8% in the second quarter of 2025 compared to the second quarter of 2024. This growth was primarily driven by a 10.6% increase in assets under administration/management during that same period. As of September 30, 2025, total wealth management assets under administration/management stood at $4.8 billion.

The firm's overall retirement and benefit services segment also reflects deep client relationships, with assets under administration/management reaching $44.0 billion at September 30, 2025. The growth in HSA deposits, which carry a low cost of funds around 10 basis points, is a direct result of deepening these retirement relationships. The firm's fee income remains resilient, at over 40% of total revenues as of the third quarter of 2025, which is more than double the banking industry average.

High-touch, proactive outreach is implied through the focus on full relationships and client retention, especially given the context of market dynamics. The firm's focus on relationship-driven commercial banking and its integrated model helps maintain client loyalty, as shown by the strong net retention rate post-acquisition.

• Wealth Management AUM increased 4.3% sequentially in Q3 2025 due to market performance.
• Retirement and benefit services AUM increased 3.7% sequentially in Q3 2025.
• The firm's adjusted efficiency ratio improved to 62.4% in the second quarter of 2025.

The firm is committed to delivering a better experience for both clients and financial advisors, evidenced by the transition to a new wealth management platform during the second quarter of 2025.

Alerus Financial Corporation (ALRS) - Canvas Business Model: Channels

Alerus Financial Corporation uses a multi-channel approach to reach its diverse client base, blending a physical footprint with a national digital and service-based reach. The company emphasizes providing a primary point of contact tailored to the client's delivery channel preference.

The physical presence for banking and commercial wealth services is concentrated across a network of 29 banking and commercial wealth offices. This network spans five key states, including North Dakota (ND), Minnesota (MN), Arizona (AZ), Iowa (IA), and Wisconsin (WI). A significant recent development was the opening of a new 25,000 square foot, two-story office in Fargo, North Dakota, in 2025, designed to house approximately 90 client-facing and support employees.

For the Retirement and Benefit services segment, Alerus Financial Corporation utilizes a national sales force structure, serving advisors, brokers, employers, and plan participants across all 50 states. This national reach positions Alerus as the 25th largest retirement business in the country.

Digital channels are integral, supported by platforms that deliver competitive products and advice. The company completed a significant digital banking upgrade for personal clients in July 2025, rolling out a new online and mobile banking platform. The scale of the digital platform is evidenced by HSA deposits reaching over $202 million as of the third quarter of 2025.

Here is a breakdown of the channel distribution as of late 2025:

Channel Type	Geographic Scope / Detail	Key Metric / Count
Banking & Commercial Wealth Offices	Five States (ND, MN, AZ, IA, WI)	29 offices
New Physical Office Opened in 2025	Fargo, ND (Urban Plains Development)	25,000 square foot building
New Fargo Office Staffing	Client-facing and support employees	Approximately 90 employees
Retirement & Benefit Services Sales Force	National coverage	Serves all 50 states
Digital Banking Platform (Personal)	Online and Mobile Banking	New platform launch completed by July 14, 2025
Digital Platform Scale (HSA)	Health Savings Account Deposits	Over $202 million as of Q3 2025

The service delivery model is designed to be comprehensive, integrating physical and digital touchpoints:

• Client interaction prioritizes the preferred delivery channel.
• Wealth Management revenue was 13% higher than a year ago in Q1 2025.
• The company plans to double its wealth advisors over the next several years.
• Retirement business revenue increased sequentially by 2.9% in Q3 2025.

Finance: draft 13-week cash view by Friday.

Alerus Financial Corporation (ALRS) - Canvas Business Model: Customer Segments

You're looking at the core groups Alerus Financial Corporation serves to drive its uniquely diversified revenue, which relies heavily on fee income from its non-banking segments. Here's the quick math on the scale of these customer bases as of late 2025, based on third quarter figures.

Alerus Financial Corporation serves four primary customer segments, which is key to its business model that generates fee income at a rate over 40% of total revenues, more than double the banking industry average as of the third quarter of 2025.

Customer Segment	Key Financial Metric (Latest Available 2025 Data)	Value/Amount
Mid-market C&I Businesses	Total Loans (Includes C&I portion)	$4.1 billion (Total Loans as of Q3 2025)
Business Banking & Owner-Occupied CRE	Commercial Deposit Relationship Depth	Over 70% of commercial deposits have a treasury management relationship
Private Banking & High-Net-Worth Individuals	Assets Under Administration/Management (Wealth Advisory)	$4.8 billion (Q3 2025)
National Retirement Plan Sponsors	Assets Under Administration (AUA)	$42.45 billion (AUA as of Q2 2025)

Mid-market Commercial and Industrial (C&I) businesses.

This group is a primary driver of the loan portfolio. Total loans for Alerus Financial Corporation stood at $4.1 billion as of September 30, 2025. The loan growth in the third quarter was specifically led by multifamily real estate, C&I, and residential real estate. Management continues to focus on deepening full relationships within the middle market space.

Business Banking clients and owner-occupied Commercial Real Estate (CRE).

The focus here is on capturing the entire client relationship. Loan growth in the third quarter of 2025 included advances in owner-occupied CRE. A key indicator of deep engagement is deposit behavior; as of the third quarter of 2025, over 70% of Alerus Financial Corporation's commercial deposits were linked to a treasury management relationship. Total deposits were $4.4 billion at the end of Q3 2025.

Private Banking clients and high-net-worth individuals.

This segment is served through the Wealth Advisory Services division. Assets under administration/management for this group reached $4.8 billion in the third quarter of 2025. Revenues from Wealth Management were $6.6 million for the third quarter of 2025. Assets under management saw an increase of 4.3% sequentially.

National Retirement Plan Sponsors and their participants.

Alerus Financial Corporation is recognized as the 25th largest provider nationally in the retirement business. Assets under administration for the retirement and benefit services grew to $42.45 billion as of the second quarter of 2025. Revenue from this business was $16.5 million in the third quarter of 2025, marking a 2.9% sequential rise. This segment provides a stable and reliable source of fee income that is not capital-intensive.

• Focus remains on organically growing revenues by deepening client relationships.
• The company is actively looking to expand in retirement and HSA businesses via potential acquisitions.
• HSA deposits specifically rose to over $202 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Alerus Financial Corporation (ALRS) - Canvas Business Model: Cost Structure

You're looking closely at where Alerus Financial Corporation is spending its money to deliver its value proposition. The cost structure is heavily influenced by its banking operations, the national retirement plan platform, and the integration following the HMNF deal.

The core non-interest expenses for Alerus Financial Corporation are running right around the guidance you mentioned. For the third quarter of 2025, total noninterest expense was reported at $50.5 million. This figure was an increase of $2.1 million, or 4.3%, from the second quarter of 2025.

The drivers for that quarterly expense increase included several key areas:

• Compensation expense.
• Software and technology expense.
• Intangible amortization expense.
• Business services.
• Occupancy and equipment expense.

Regarding technology expenses for new platform conversions and upgrades, the search results confirm that 'software and technology expense' was a primary driver in the increase of noninterest expense for the third quarter of 2025 compared to the third quarter of 2024. Specific dollar amounts for this line item alone weren't broken out in the immediate summaries, so we look at the overall efficiency to gauge cost control.

For personnel expenses for specialized talent acquisition and retention, the discussion around the Q3 2025 results noted that compensation expense was a factor in the year-over-year increase in noninterest expense. Furthermore, analysts inquired about talent acquisition in disrupted markets during the Q&A session, suggesting this is an active cost area.

Acquisition-related costs, including intangible amortization from the HMNF deal, are a visible component. The increase in noninterest expense for Q3 2025 over Q3 2024 was partly driven by intangible amortization expense. Looking at the impact from the acquisition accounting, Alerus Financial Corporation expects around 40 basis points of purchase account accretion for the full year 2025.

Operational effectiveness is measured by the efficiency ratio, which shows how well Alerus Financial Corporation is managing these costs relative to its revenue. The company has a stated goal for the full fiscal year 2025:

The adjusted efficiency ratio target is below 68% for fiscal year 2025. The actual performance demonstrates they are tracking well against this target, especially after the HMNF integration:

Period Ended	Adjusted Efficiency Ratio (non-GAAP)
Q2 2025	62.4%
Q1 2025	66.9%

The Q2 2025 result of 62.4% was an improvement of 8.4 percentage points year-over-year. To be fair, the Q1 2025 ratio was 66.9%, which was an improvement from 69.0% in the fourth quarter of 2024. Finance: draft 13-week cash view by Friday.

Alerus Financial Corporation (ALRS) - Canvas Business Model: Revenue Streams

The revenue streams for Alerus Financial Corporation as of late 2025 are built upon a diversified model balancing traditional lending with fee-based services, providing resilience across economic cycles.

The primary sources of revenue are clearly segmented between Net Interest Income and Noninterest Income (Fee Income). For the third quarter of 2025, the total revenue was reported at approximately $72.5 million.

Revenue Component	Q3 2025 Amount (Millions USD)	Notes/Context
Net Interest Income (NII)	$43.1	Reached a record level in the company history in Q3 2025.
Fee Income (Non-interest income)	$29.4	Accounted for over 40% of total revenues.
Total Revenue (Reported)	$72.5	Reported revenue figure for Q3 2025.

The Fee Income component is heavily supported by the capital-light Retirement and Wealth Management businesses, which is a key differentiator for Alerus Financial Corporation.

Here's a closer look at the fee-based revenue drivers as of September 30, 2025:

• Retirement and Benefit Services Assets Under Administration/Management (AUM): $44.0 billion.
• Wealth Management Assets Under Administration/Management (AUM): $4.8 billion.

Breaking down the noninterest income contribution from these specialized areas in Q3 2025:

• Retirement and Benefit Services noninterest income: $16.2 million.
• Wealth Advisory Services asset management fees: $5.6 million.
• Wealth Management revenue on a linked-quarter basis: $6.6 million.
• Total revenue from the Retirement business (including asset-based and recordkeeping fees): $16.5 million over the prior quarter.

The remaining portion of the Fee Income, which includes Mortgage banking and equipment finance revenues alongside service charges on deposit accounts and interchange income, is derived from the commercial wealth bank activities. The total Noninterest Income for the quarter was $29.430 million.

You can see the relationship between the core banking and fee income streams in the table below:

Revenue Source Type	Q3 2025 Amount (Thousands USD)	Percentage of Total Revenue (Approx.)
Net Interest Income	$43,136	57.4%
Noninterest Income (Total Fees)	$29,430	40.6%
Total Revenue	$72,566	100%

Finance: draft 13-week cash view by Friday.