Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2023

Parent Company Only Financial Statements

Parent Company Only Financial Statements

NOTE 30 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)	2023		2022
Assets
Cash and cash equivalents	$	70,853	$	84,017
Investment in subsidiaries		354,303		338,595
Deferred income taxes, net		757		904
Other assets		9,968		487
Total assets	$	435,881	$	424,003
Liabilities and Stockholders’ Equity
Long‑term debt	$	58,956	$	58,843
Accrued expenses and other liabilities		7,798		8,288
Total liabilities		66,754		67,131
Stockholders’ equity		369,127		356,872
Total stockholders’ equity		369,127		356,872
Total liabilities and stockholders’ equity	$	435,881	$	424,003

Alerus Financial Corporation

Parent Company Condensed Statements of Income

	Year ended December 31,
(dollars in thousands)	2023		2022		2021
Income
Dividends from subsidiaries	$	21,000	$	18,500	$	16,000
Other income		24		16		4
Total operating income		21,024		18,516		16,004
Expenses		6,043		6,583		5,293
Income before equity in undistributed income		14,981		11,933		10,711
Equity in undistributed income of subsidiaries		(4,826)		26,424		40,642
Income before income taxes		10,155		38,357		51,353
Income tax benefit		1,541		1,648		1,328
Net income	$	11,696	$	40,005	$	52,681

Alerus Financial Corporation

Parent Company Condensed Statements of Cash Flows

	Year ended December 31,
(dollars in thousands)	2023		2022		2021
Operating activities
Net income	$	11,696	$	40,005	$	52,681
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed income of subsidiaries		4,826		(26,424)		(40,642)
Depreciation and amortization		—		87		115
Stock‑based compensation cost		1,628		1,904		3,095
Other, net		(9,854)		419		1,266
Net cash provided by operating activities		8,296		15,991		16,515
Investing activities
Net cash (paid) for business combinations		—		(189)		—
Net cash provided by investing activities		—		(189)		—
Financing activities
Cash dividends paid on common stock		(14,822)		(12,800)		(10,751)
Repurchase of common stock		(6,638)		(738)		(712)
Net cash provided by financing activities		(21,460)		(13,538)		(11,463)
Change in cash and cash equivalents		(13,164)		2,264		5,052
Cash and cash equivalents at beginning of period		84,017		81,753		76,701
Cash and cash equivalents at end of period	$	70,853	$	84,017	$	81,753