Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2021

Parent Company Only Financial Statements

Parent Company Only Financial Statements

NOTE 29 Parent Company Only Financial Statements

The condensed financial statements of Alerus Financial Corporation (parent company only) are presented below. These statements should be read in conjunction with the Notes to the Consolidated Financial Statements

Alerus Financial Corporation

Parent Company Condensed Balance Sheets

	December 31,		December 31,
(dollars in thousands)	2021		2020
Assets
Cash and cash equivalents	$	81,753	$	76,701
Land, premises and equipment, net		87		202
Investment in subsidiaries		342,538		316,789
Deferred income taxes, net		1,000		1,007
Other assets		655		589
Total assets	$	426,033	$	395,288
Liabilities and Stockholders’ Equity
Long‑term debt	$	58,933	$	58,735
Accrued expenses and other liabilities		7,697		6,390
Total liabilities		66,630		65,125
Stockholders’ equity		359,403		330,163
Total stockholders’ equity		359,403		330,163
Total liabilities and stockholders’ equity	$	426,033	$	395,288

Alerus Financial Corporation

Parent Company Condensed Statements of Income

	Year ended December 31,
(dollars in thousands)	2021		2020		2019
Income
Dividends from subsidiaries	$	16,000	$	16,000	$	15,000
Other income		4		10		15
Total operating income		16,004		16,010		15,015
Expenses		5,293		6,057		5,999
Income before equity in undistributed income		10,711		9,953		9,016
Equity in undistributed income of subsidiaries		40,642		33,208		19,089
Income before income taxes		51,353		43,161		28,105
Income tax benefit		1,328		1,514		1,435
Net income	$	52,681	$	44,675	$	29,540

Alerus Financial Corporation

Parent Company Condensed Statements of Cash Flows

	Year ended December 31,
(dollars in thousands)	2021		2020		2019
Operating activities
Net income	$	52,681	$	44,675	$	29,540
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed income of subsidiaries		(40,642)		(33,208)		(19,089)
Depreciation and amortization		115		116		115
Stock‑based compensation cost		3,095		1,927		251
Other, net		1,266		413		2,676
Net cash provided by operating activities		16,515		13,923		13,493
Investing activities
Investment in bank subsidiary		—		—		—
Acquisitions, net cash acquired		—		—		—
Net cash provided by investing activities		—		—		—
Financing activities
Cash dividends paid on common stock		(10,751)		(10,387)		(8,909)
Repurchase of common stock		(712)		(482)		(1,948)
Proceeds from the issuance of common stock in initial public offering net of issuance costs		—		—		62,804
Net cash provided by financing activities		(11,463)		(10,869)		51,947
Change in cash and cash equivalents		5,052		3,054		65,440
Cash and cash equivalents at beginning of period		76,701		73,647		8,207
Cash and cash equivalents at end of period	$	81,753	$	76,701	$	73,647