Alerus Financial Corp (ALRS) 2026 Q1 法說會逐字稿

Good morning, and welcome to the Alerus Financial Corporation earnings conference call. (Operator Instructions) Today's call will reference slides that can be found on Alerus' Investor Relations website. You can also view the presentation slides directly within the webcast platform. (Operator Instructions)

各位早安，歡迎參加 Alerus Financial Corporation 的財報電話會議。（接線員指示）今天的電話會議將引用投影片，投影片可於 Alerus 的投資人關係網站取得。您也可以在網路直播平台內直接查看簡報投影片。（接線員指示）

Please note this event is being recorded. This call may contain forward-looking statements, and the company's actual results may differ materially from those indicated in any forward-looking statements. Important factors that could cause actual results to differ materially from those indicated in the forward-looking statements are listed in the earnings release and company's SEC filings.

請注意，本活動將被錄音。本次電話會議可能包含前瞻性陳述，而公司實際結果可能與任何前瞻性陳述所示存在重大差異。可能導致實際結果與前瞻性陳述所示存在重大差異的重要因素，已列於新聞稿及公司向 SEC 提交的文件中。

I would now like to turn the conference over to Alerus Financial Corporation's President and CEO, Katie Lorenson. Please go ahead.

現在我想把電話會議交給 Alerus Financial Corporation 總裁兼執行長 Katie Lorenson。請開始。

Thank you, and good morning, everyone. Appreciate you joining us today. With me today are Alerus' CFO, Al Villalon; our Chief Operating Officer, Karin Taylor; our Chief Banking and Revenue Officer, Jim Collins; and Alerus' Chief Retirement Services Officer, Forrest Wilson.

謝謝，各位早安。感謝大家今天加入。我今天與會的同仁包括 Alerus 的財務長 Al Villalon；營運長 Karin Taylor；銀行與營收長 Jim Collins；以及 Alerus 的退休服務長 Forrest Wilson。

We delivered a strong first quarter to begin 2026 and, more importantly, one that demonstrates the progress we've made repositioning Alerus for higher quality, more durable performance.

我們在 2026 年第一季交出強勁的成績，更重要的是，這也展現了我們在重新定位 Alerus、以追求更高品質且更具韌性的績效方面所取得的進展。

For the quarter, we reported net income of $23 million, or $0.89 per diluted share. Return on average assets was 1.79%, and return on average tangible common equity was approximately 22%. These results were driven by margin expansion, resiliency income, disciplined expense management, and continued improvement in asset quality. We view this quarter as a clear validation that the strategic actions we've taken are translating into tangible financial outcomes.

本季我們公布淨利為 2,300 萬美元，稀釋後每股盈餘為 0.89 美元。平均資產報酬率為 1.79%，平均有形普通股權報酬率約為 22%。這些結果主要受惠於利差擴大、具韌性的收入、嚴謹的費用管理，以及資產品質持續改善。我們認為本季清楚驗證了我們採取的策略行動正轉化為具體的財務成果。

Our results reflect three structural strengths shaping the business. First, our balance sheet is fundamentally better positioned. Margin expansion in the quarter reflects disciplined funding management, the benefits of balance sheet actions taken last year, and a funding mix that continues to differentiate our franchise. Growth in highly valuable HSA balances sourced through our benefits services platform highlights the uniqueness of our funding model with nearly a quarter of the deposits sourced from our integrated and synergistic business lines.

我們的成果反映出三項塑造業務的結構性優勢。第一，我們的資產負債表在根本上已處於更佳定位。本季利差擴大反映了嚴謹的資金管理、去年採取之資產負債表行動的效益，以及持續使我們具差異化的資金來源結構。透過我們的福利服務平台所帶來的高價值 HSA 餘額成長，凸顯了我們資金模式的獨特性；近四分之一的存款來自我們整合且具協同效益的業務線。

Second, diversification continues to matter. More than 40% of our revenue are fee-based, capital-light, and recurring. Our retirement and benefits services and wealth advisory fee streams provide stability across interest rate and market cycles. Even as asset levels and market conditions fluctuate, underlying engagement, client activity, and long-term profitability across these businesses remain solid.

第二，多元化仍然至關重要。我們超過 40% 的營收來自手續費型、資本占用較低且可重複的收入。我們的退休與福利服務以及財富顧問的手續費收入，在利率與市場循環中提供穩定性。即使資產水位與市場狀況波動，這些業務的基本互動程度、客戶活動與長期獲利能力仍然穩健。

Third, we continued our success in recruiting high-quality talent, adding team members in key markets in Wisconsin and Arizona in addition to progressing towards our goal of doubling the number of wealth advisors across the franchise. Impressively, we've maintained discipline on expenses while continuing to make these selective investments in technology and growth initiatives. Our focus remains on scalability, ensuring that as revenue grows, returns improve in a sustainable way.

第三，我們持續在招募高品質人才方面取得成果，除在威斯康辛州與亞利桑那州等關鍵市場增聘團隊成員外，也持續朝著在整個體系內將財富顧問人數倍增的目標推進。令人印象深刻的是，我們在持續進行這些具選擇性的科技與成長計畫投資之際，仍維持費用紀律。我們的重點仍在可擴展性，確保營收成長時，報酬能以可持續的方式提升。

During the quarter, we remained focused on relationship-driven growth. Commercial and private banking continues to be an area of focus with year-over-year C&I growth exceeding 10%, supported by healthy pipelines and strong client engagement. At the same time, we've remained intentional in reducing disclosure to lower returns and higher volatility segments of the balance sheet. The mix shift is improving risk-adjusted returns and strengthening the overall profile of the loan portfolio.

本季我們持續聚焦以關係為導向的成長。商業與私人銀行仍是重點領域，年增 C&I（商業與工業）貸款成長超過 10%，並由健康的案源管線與強勁的客戶互動所支撐。同時，我們也有意識地降低對報酬較低且波動性較高之資產負債表區塊的曝險。此一結構轉變正在改善風險調整後報酬，並強化整體放款組合的輪廓。

On the funding side, deposit trends reflect the value of our diversified platform. Growth in core deposits, including commercial and private banking relationships, in addition to our synergistic deposits, reinforces the strategic advantage of our integrated business models. As a result, the loan deposit ratio improved to under 93%.

在資金端，存款趨勢反映出我們多元化平台的價值。核心存款成長（包括商業與私人銀行關係）以及我們具協同效益的存款成長，強化了整合式商業模式的策略優勢。因此，存放比改善至 93% 以下。

Asset quality improved meaningfully during the quarter. Non-performing assets declined and criticized loan balances continued to trend lower. And we made significant progress resolving previously identified credit issues. During the quarter, we charged down a non-accrual and well-reserved D&I credit related to a long-standing client relationship negatively impacted by changes in government funding. This was a single event and not reflective of broader portfolio trends.

本季資產品質顯著改善。不良資產下降，且受關注（criticized）貸款餘額持續走低。我們也在處理先前辨識出的信用問題方面取得重大進展。本季我們對一筆停計息且已充分提列準備的 D&I 授信進行沖減，該授信與一段長期客戶關係相關，因政府資金變動而受到負面影響。這是單一事件，並不代表整體投資組合的趨勢。

We also made substantial progress in moving closer to resolution on our largest remaining non-accrual relationship, which represents approximately 65% of total non-accrual loans. As a result of portfolio improvement and credit resolution activity, we recorded a reserve release of $4.9 million during the quarter while maintaining an allowance for credit losses of 1.25% of total loans. Taken together, these actions underscore the strength of our credit discipline and our commitment to proactive risk management.

我們也在推進最大一筆尚未解決的停計息關係案之處理上取得實質進展，該案約占停計息貸款總額的 65%。由於投資組合改善與信用處置活動，本季我們認列 490 萬美元的備抵釋回，同時維持信用損失準備金占總放款 1.25%。綜合而言，這些行動凸顯了我們嚴謹的授信紀律，以及對主動風險管理的承諾。

Our capital position remains strong. Tangible book value per share increased to $18.15 and tangible common equity to tangible assets improved to nearly 9%. Capital ratios remain comfortably below regulatory requirements. During the quarter, we also repurchased $6 million of common stock while continuing to return capital through dividends. Our approach to capital allocation remains disciplined and balanced, supporting growth while returning excess capital to shareholders.

我們的資本水準仍然強健。每股有形帳面價值提升至 18.15 美元，有形普通股權占有形資產比率改善至接近 9%。資本比率仍明顯優於監理要求。本季我們亦回購 600 萬美元普通股，同時持續透過股利回饋資本。我們的資本配置方式仍維持紀律且兼顧平衡，在支持成長的同時，將多餘資本回饋股東。

Most importantly, the company's trajectory remains highly positive. The underlying fundamentals of the business, our talented team, balance sheet positioning, diversified revenue model, credit discipline, and operating focus are stronger than they did at any other time in our nearly 150 years as an institution. We remain focused on disciplined growth, continued execution, and delivering sustainable long-term value for our shareholders.

最重要的是，公司發展軌跡仍高度正向。就業務的基本面、我們優秀的團隊、資產負債表定位、多元化營收模式、授信紀律與營運聚焦而言，其強度勝過我們近 150 年機構歷史中的任何時期。我們將持續專注於有紀律的成長、持續落實執行，並為股東創造可持續的長期價值。

And with that, I will turn the call over to Al to walk through the financial results in more detail.

接下來，我把電話會議交給 Al，請他更詳細說明財務結果。

Thanks, Katie. Let's start on page 9 of our investor deck, which is posted on the Investor Relations section of our website.

謝謝，Katie。我們先從投資人簡報第 9 頁開始，該簡報已發布於我們網站的投資人關係專區。

In the first quarter, we delivered a strong start to 2026 and demonstrated the earnings power of the franchise following the balance sheet reposition completed late last year. We generated adjusted diluted EPS of $0.89, inclusive of $6 million of share repurchases during the quarter. Our results reflect continued core net interest margin improvement, disciplined expense management, and the benefit of our diversified business model, with non-interest income representing just over 40% of total revenue.

第一季我們為 2026 年開出強勁的起步，並在去年底完成資產負債表重新定位後，展現了本體系的獲利能力。我們產生調整後稀釋 EPS 0.89 美元，其中包含本季 600 萬美元的庫藏股回購。我們的結果反映核心淨利差持續改善、嚴謹的費用管理，以及多元化商業模式的效益；非利息收入占總營收比重略高於 40%。

Profitability remained strong, with an adjusted return on average tangible common equity of 21.96% and an adjusted return on average assets of 1.79%, improving 17 basis points from the prior quarter. Tangible book value per share increased 3.4% in the quarter to $18.15, and our tangible common equity ratio improved to 8.85%, underscoring continued capital generation.

獲利能力維持強勁，調整後平均有形普通股權報酬率為 21.96%，調整後平均資產報酬率為 1.79%，較前一季提升 17 個基點。每股有形帳面價值本季增加 3.4% 至 18.15 美元，我們的有形普通股權比率改善至 8.85%，凸顯資本持續生成。

Turning to the balance sheet, we remain well-positioned to support organic growth. Deposits increased 3.7% on a period-end basis, and our loan to deposit ratio improved to 92.8%. In addition, we continue to maintain robust liquidity at approximately $2.7 billion, providing flexibility to fund loan growth, manage due market volatility, and continue returning capital through dividends and share repurchases.

就資產負債表而言，我們仍處於良好位置以支持內生成長。存款以期末口徑增加 3.7%，存放比改善至 92.8%。此外，我們仍維持約 27 億美元的充裕流動性，提供彈性以支應放款成長、因應市場波動，並持續透過股利與庫藏股回購回饋資本。

Let's turn to page 16 to talk about our earning assets. At quarter end, loans were relatively stable versus the prior quarter. We continue to proactively reallocate capital to full relationships, primarily in C&I and private banking. Excluding discontinued rationalization, end-of-period loans would have grown modestly. Overall, our loan mix remains balanced at approximately 50% fixed and 50% floating.

接著請看第 16 頁，談談我們的生息資產。季末放款相較前一季大致持平。我們持續主動將資本重新配置至完整關係客戶，主要集中於 C&I 與私人銀行。若排除已停止之精簡（rationalization）項目，期末放款將呈現小幅成長。整體而言，我們的放款結構仍維持均衡，約 50% 為固定利率、50% 為浮動利率。

On investments, we continue to benefit from the strategic portfolio repositioning executed in the fourth quarter. During 4Q, we sold $360 million of available-for-sale securities, representing over two-thirds of total AFS securities at year-end 2025.

在投資方面，我們持續受惠於第四季執行的策略性投資組合重新定位。於 4Q 期間，我們出售 3.6 億美元的可供出售（AFS）證券，約占 2025 年底 AFS 證券總額的三分之二以上。

This restructuring improved the overall average investment portfolio yield by 139 basis points from 4Q '25 to 3.84% in the first quarter of '26 and has been a meaningful contributor to margin expansion. Currently, our balance sheet remains positioned slightly liability sensitive. On a rate cut, you'll see slight margin improvement and vice versa on a hike.

此次重整使整體投資組合平均殖利率自 25 年第四季提升 139 個基點，至 26 年第一季的 3.84%，並對利差擴大作出顯著貢獻。目前，我們的資產負債表仍略偏負債敏感。若降息，您將看到利差小幅改善；若升息則相反。

Turning to deposits on page 17, our funding profile continues to strengthen and remains a key contributor to margin expansion and balance sheet flexibility. On a period-end basis, total deposits increased 3.7% from the prior quarter, reflecting growth across both public funds and core client deposits.

談到第 17 頁的存款，我們的資金結構持續強化，並仍是推動利差擴張與資產負債表彈性的關鍵貢獻因素。以期末口徑計算，總存款較前一季增加 3.7%，反映公共資金與核心客戶存款皆有成長。

Importantly, we continued to see favorable mix improvement and operated during the quarter with only $8 million of broker deposits. Non-interest-bearing deposits increased 6.2% in-quarter and now represents approximately 19.7% of total deposits. This shift meaningfully supports our cost of funds and improves the durability of our funding base.

重要的是，我們持續看到有利的結構組合改善，且本季僅使用 800 萬美元的經紀存款。無息存款在本季內增加 6.2%，目前約占總存款的 19.7%。此一轉變顯著支持我們的資金成本，並提升資金來源基礎的穩健性。

The quarter-over-quarter increase in deposits was driven by seasonal public inflows, public fund inflows, as well as steady growth from commercial and private banking clients. We are particularly pleased by the continued stability of our core deposit franchise, which reflects core operating and treasury management relationships rather than rate-sensitive behavior.

本季存款的季增主要由季節性公共資金流入、公共資金流入，以及來自商業與私人銀行客戶的穩健成長所帶動。我們對核心存款業務的持續穩定性尤其感到滿意，這反映的是核心營運與財資管理關係，而非對利率敏感的行為。

As a result of deposit growth and selective loan originations, our loan-to-deposit ratio improved to 92.8%, providing additional on-balance sheet liquidity and positioning us well to continue to support organic loan growth going forward without relying on higher-cost wholesale funding. Overall, our deposit franchise remains a competitive advantage, supporting loan growth and providing flexibility as we navigate the evolving rate environment.

受惠於存款成長與選擇性放款承作，我們的存放比改善至 92.8%，提供更多表內流動性，並使我們在未來持續支持有機放款成長時，無須依賴成本較高的批發資金。整體而言，我們的存款業務仍是競爭優勢，在利率環境演變之際，既支持放款成長，也提供彈性。

Turning to page 18, net interest income remained stable at $44.9 million. Reported net interest margin expanded 8 basis points to 3.77%, a new post-IPO high. Purchase accounting accretion contributed approximately 25 basis points in the quarter. Excluding accretion, core margin was 3.52%, representing a 35-basis-point improvement from the core margin in the fourth quarter.

談到第 18 頁，淨利息收入維持穩定於 4,490 萬美元。揭露的淨利差擴大 8 個基點至 3.77%，創 IPO 後新高。購併會計攤銷（accretion）在本季貢獻約 25 個基點。排除攤銷後，核心利差為 3.52%，較第四季核心利差改善 35 個基點。

Drivers of the quarter margin improvement included a 21-basis-point decline in the total cost of funds to 1.97% and a higher portfolio yield of 3.84% following the fourth quarter balance sheet repositioning. In addition, strong new business margins across both loans and deposits supported continued margin momentum. New loans were originated at average rates in the low to mid-6% range, while new deposits were in the low to mid-2% range.

本季利差改善的驅動因素包括：總資金成本下降 21 個基點至 1.97%，以及在第四季資產負債表重新配置後，投資組合收益率提高至 3.84%。此外，放款與存款兩端的新業務利差表現強勁，支撐利差動能延續。新承作放款的平均利率約在 6% 初至中段，而新吸收存款約在 2% 初至中段。

Turning to page 19. Adjusted fee income, excluding the balance sheet repositioning and other one-time items, declined 3.2% from the prior quarter, primarily due to lower swap fee revenue. Importantly, fee income continues to represent over 40% of total revenue, demonstrating the value of our diversified model in a dynamic rate environment.

談到第 19 頁。調整後手續費收入（排除資產負債表重新配置及其他一次性項目）較前一季下降 3.2%，主要因交換（swap）手續費收入較低。重要的是，手續費收入仍占總收入的 40% 以上，展現我們多元化模式在動態利率環境中的價值。

Let's turn to page 20 for additional detail on fee income. Turning to banking services fee income, adjusted banking fees declined modestly from the prior quarter, primarily driven by lower swap revenues. We do not include swap revenues in guidance due to inherent variability and client-driven timing.

接著看第 20 頁，以取得手續費收入的更多細節。就銀行服務手續費收入而言，調整後銀行手續費較前一季小幅下降，主要由較低的 swap 收入所致。由於其本質上具變動性且取決於客戶時點，我們在財測指引中不納入 swap 收入。

Importantly, our core transaction-based fees remain stable, supported by continued activity across our commercial and consumer client base. Mortgage fee income increased over 130% from the prior year, driven by increased originations, improved gain on sale margins, and a higher valuation of mortgage servicing rights. While originations remained seasonally lower, economics per loan improved, demonstrating our ability to generate solid fee contribution even in a muted volume environment.

重要的是，我們以交易為基礎的核心手續費仍維持穩定，受惠於商業與消費客群的持續活動。房貸手續費收入較去年同期增加逾 130%，主要由承作量增加、出售利益（gain on sale）利差改善，以及房貸服務權（MSR）估值提高所帶動。雖然承作量仍呈季節性偏低，但單筆貸款的經濟效益改善，顯示即使在量能偏弱的環境下，我們仍能貢獻穩健的手續費收入。

On page 21, I'll provide highlights for retirement and benefits services. Total revenue increased to $17.4 million, up 0.8% linked quarter. Assets under administration and management declined 5.9%. It is important to note this change had and is expected to have minimal impact on revenues as the revenues were replaced with new partnership onboarded during the quarter.

在第 21 頁，我將提供退休與福利服務的重點。總收入增加至 1,740 萬美元，較前一季增加 0.8%。代管與管理資產（AUA/AUM）下降 5.9%。需要注意的是，這項變動對收入的影響很小，且預期仍將維持很小，因為相關收入已由本季新導入的合作夥伴所取代。

Synergistic deposits within the retirement segment increased 2.3% in the quarter. HSA deposits grew 7.1% to approximately $218 million and continue to be a particularly attractive funding source, carrying an average cost of roughly 10 basis points.

退休業務中的協同存款本季增加 2.3%。HSA 存款成長 7.1% 至約 2.18 億美元，且仍是特別具吸引力的資金來源，平均成本約為 10 個基點。

Turning to page 22. In wealth advisory services, revenue in the quarter was $7.2 million. On a linked-quarter basis, revenue declined a modest 2.7%, primarily driven by market-related pressure on asset values as client retention remained strong.

談到第 22 頁。在財富顧問服務方面，本季收入為 720 萬美元。以季比口徑，收入小幅下降 2.7%，主要因市場因素對資產價值造成壓力，但客戶留存仍維持強勁。

Assets under administration and management decreased 1.2% from the prior quarter, reflecting broader market performance during the period. From a fee mix standpoint, the decline was evenly split between asset-based and transaction-based revenue, consistent with lower market levels and typical first quarter seasonality.

代管與管理資產較前一季下降 1.2%，反映期間整體市場表現。就費用結構而言，下降幅度在資產基礎型與交易基礎型收入之間平均分布，與較低的市場水準及第一季典型季節性一致。

Turning to page 23, our expense discipline continued to translate into positive operating leverage during the quarter. Reported non-issuance expense declined 2.9% on a linked-quarter basis, reflecting lower incentive compensation as both mortgage activity and banking production were seasonally lower.

談到第 23 頁，我們的費用紀律在本季持續轉化為正向的營運槓桿。揭露的非發行相關費用較前一季下降 2.9%，反映獎酬性薪酬較低，因房貸活動與銀行端產能呈季節性走弱。

Importantly, this decline was achieved while we continue to invest in the franchise. The increase in professional fees during the quarter was driven by the reclassification of certain vendor services previously recorded within business services and technology, rather than incremental new spend.

重要的是，在我們持續投資於業務版圖的同時仍達成上述下降。本季專業服務費用的增加，主要是因將先前記錄於業務服務與科技項下的部分供應商服務重新分類所致，而非新增的額外支出。

Overall, expense trends remained well controlled, and we continue to demonstrate the scalability of our operating model as revenue growth outpaced expense growth in the first quarter. This discipline supports both near-term profitability and our ability to invest selectively in growth initiatives without compromising returns.

整體而言，費用趨勢仍受到良好控管，且我們持續展現營運模式的可擴展性，因第一季收入成長快於費用成長。此一紀律同時支持短期獲利能力，並使我們能在不犧牲報酬的前提下，有選擇地投資成長計畫。

Turning to page 24, asset quality improved meaningfully. While net charge-offs were 71 basis points, the increase was driven primarily by a single $6.4 million charge-off on one previously identified C&I relationship that had previously been placed on non-accrual. This charge-down relationship still has remaining reserves of 78%.

談到第 24 頁，資產品質顯著改善。雖然淨沖銷為 71 個基點，但增加主要由單一 640 萬美元的沖銷所致，該筆為先前已辨識的一筆企業與工業（C&I）往來，且先前已列為停計息。該筆沖減後的往來仍有 78% 的剩餘準備覆蓋。

Importantly, non-performing assets declined $15.4 million linked-quarter and criticized loans were down 43% year over year. We recorded a $4.9 million reserve release, primarily driven by lower loan balances and an improved mix. Despite the continued positive trends, we maintained reserve level above the industry at 1.25%.

重要的是，不良資產較前一季減少 1,540 萬美元，且受關注（criticized）放款年減 43%。我們回轉準備 490 萬美元，主要由放款餘額下降與組合改善所帶動。儘管趨勢持續正向，我們仍將準備水準維持在高於同業的 1.25%。

On page 25, capital and liquidity remained strong, tangible common equity to tangible assets improved to 8.85%, and tangible book value per share increased to $18.15. We continue to return capital to shareholders through both our quarterly dividend and $6 million of share repurchases at an average price of $23.90, while maintaining substantial liquidity to support organic growth.

在第 25 頁，資本與流動性維持強勁，有形普通股權益對有形資產比率提升至 8.85%，每股有形帳面價值增加至 18.15 美元。我們持續透過季度股利以及以平均 23.90 美元價格回購 600 萬美元股票來回饋股東，同時維持充足流動性以支持有機成長。

Turning to page 26, our 2026 guidance has improved and reflects continued discipline growth and positive operating leverage. We expect the following: loans to grow at a mid-single-digit rate for the full year despite more than $400 million of contractual maturities, deposits to grow in the low-single-digits. We have ample liquidity to support loan growth in excess of deposit growth.

談到第 26 頁，我們對 2026 年的指引有所上調，並反映持續的成長紀律與正向營運槓桿。我們預期如下：儘管全年有超過 4 億美元的合約到期，放款全年仍將以中個位數成長；存款將以低個位數成長。我們具備充足流動性，可支持放款成長超過存款成長。

A net interest margin of approximately 3.55% to 3.65% for 2026. In the second quarter, we expect about 20 basis points of contractual purchase accounting accretion. Also, for additional context, the exit rate of our net interest margin was approximately 3.65% for the month of March.

2026 年淨利差約為 3.55% 至 3.65%。在第二季，我們預期約有 20 個基點的合約性購併會計攤銷。此外，補充說明，我們 3 月份的淨利差退出水準（exit rate）約為 3.65%。

Adjusted non-interest income to grow in the mid-single-digits, driven by continued growth in the wealth and retirement businesses. Consistent with prior guidance, swapped income is not included given variability.

調整後非利息收入將以中個位數成長，主要由財富與退休業務的持續成長所帶動。與先前指引一致，鑑於波動性，swap 收入不納入其中。

Total net revenue growth in the mid-single-digits with non-interest expense growth in the low-single-digits will continue to support positive operating leverage. We do expect second quarter non-interest expenses to be slightly higher due to a seasonal uptick in mortgage and banking production, along with proved equity markets on our wealth division, which will push incentives higher.

總淨收入以中個位數成長、非利息費用以低個位數成長，將持續支持正向營運槓桿。我們預期第二季非利息費用將略高，原因包括房貸與銀行端產能的季節性回升，以及財富事業部受益於股市改善，將推升獎酬。

Full-year return on assets will exceed 1.25%. Finally, for each additional 25 basis point cut in rates, we would expect net interest margins to improve roughly 3 to 5 basis points.

全年資產報酬率將超過 1.25%。最後，利率每額外下調 25 個基點，我們預期淨利差約可改善 3 至 5 個基點。

In summary, our first quarter performance demonstrates that the earnings power of the franchise is taking flight, and we believe Alerus is well-positioned for 2026 and beyond to reach new heights.

總結而言，我們第一季的表現顯示本行的獲利能力正在加速展現，我們相信 Alerus 已為 2026 年及更長遠的未來做好準備，邁向新的高峰。

With that, I'll now open it up for Q&A.

那麼，接下來我將開放問答。

(Operator Instructions) Brendan Nosal, Hovde Group.

（接線員指示）Brendan Nosal，Hovde Group。

Maybe just starting off here on the retirement business, can you just unpack the decline in plan participants in AUA this quarter and help us understand why is revenue neutral, as you pointed out in the release?

也許先從退休業務開始，能否請你拆解一下本季 AUA 中計畫參與者下滑的原因，並協助我們理解為何如你在新聞稿中指出，這對營收是中性的？

Yeah. Brendan, this is Forrest. Thanks for the question. I can say since I got here, we've been putting efforts on a much more disciplined and aggressive approach to a growth strategy, really scrutinizing the mix of business that we take on more closely than ever and specifically looking at profitability, operational leverage, and complexity.

是的。Brendan，我是 Forrest。謝謝你的問題。我可以說，自從我來到這裡以來，我們一直在更有紀律且更積極地推動成長策略，前所未有地更嚴格檢視我們承接的業務組合，並特別關注獲利能力、營運槓桿與複雜度。

In this past quarter, we were able to exit a large, low-margin client that -- it was a legacy relationship that had significant assets but generated limited revenue relative to size and added disproportionate operational complexity for sure for our business. Coincidentally, additional --

在上一季，我們得以退出一個大型、低毛利的客戶——那是一段歷史沿革的合作關係，雖然資產規模可觀，但相對於其規模所帶來的營收有限，並且確實為我們的業務增加了不成比例的營運複雜度。巧合的是，另外——

Hey, Forrest. Forrest, this is Al. Can you -- we're getting some feedback here. Can you start over? Because you're sounding a little muffled.

嘿，Forrest。Forrest，我是 Al。你能不能——我們這裡有些回音。你可以重講一次嗎？因為你聽起來有點悶。

Yeah, sorry about that. Is that okay?

好的，抱歉。這樣可以嗎？

Still muffled.

還是很悶。

That's okay. I can take it, Forrest.

沒關係。我可以來回答，Forrest。

All right.

好。

Thank you for the question. In regards to the drop in asset participants for the quarter, it was driven by the exit of a large, lower-margin legacy relationship and replaced with a new partnership that has much higher levels of profitability but lower levels of assets and participants.

謝謝你的問題。關於本季資產參與者下滑，主要是因為退出了一個大型、較低毛利的歷史沿革合作關係，並以一個新的合作夥伴關係取而代之；新合作的獲利水準高得多，但資產與參與者規模較低。

Yeah, exactly. Sorry.

對，正是如此。抱歉。

That's better.

這樣好多了。

All right. Sorry about that. Thanks, Katie.

好。抱歉。謝謝你，Katie。

Yeah, no problem.

不客氣。

Yeah. I mean, as Katie mentioned -- so coincidentally, we exited a large low-margin client that had significant assets. And we onboarded a very substantial new partnership that does have lower assets, but is much higher, more simplified business, which is in line with our strategy.

是的。我的意思是，如 Katie 所提——所以巧合的是，我們退出了一個資產規模很大的大型低毛利客戶。同時我們導入了一個相當重要的新合作關係，雖然資產較低，但業務更高品質、也更簡化，符合我們的策略。

So all in all, it was absolutely just an episodic event of this quarter, but does reflect a deliberate focus on us trying to achieve higher quality, more profitable business. But it happened in the same quarter and is largely a revenue-neutral event between the two.

總體而言，這絕對只是本季的一次性事件，但也反映出我們刻意聚焦於爭取更高品質、獲利更佳的業務。而且兩件事發生在同一季，兩者之間基本上對營收影響為中性。

Okay, all right. That's helpful color there. I appreciate it. Maybe moving on to loan growth demand. Can you spend a minute talking about what give you confidence you'll still hit the mid-single-digit growth guide for the year, just given the softer start to the year?

好的，了解。這些補充說明很有幫助，謝謝。接著談貸款成長需求。鑑於今年開局較疲弱，你能否花點時間談談是什麼讓你有信心仍能達成全年中個位數成長的指引？

Yeah, this is Jim Collins. We're staying the course, right? We started off a little slow on loan production, but we are moving out some investor CRE that doesn't fit our risk tolerance or is some risk-rated loans that we don't -- that we're pushing out now.

是的，我是 Jim Collins。我們會維持既定方向，對吧？我們的放款承作一開始確實有點慢，但我們正在把一些不符合我們風險承受度的投資人 CRE（商用不動產）部位移出，或是一些風險評等的貸款——我們現在正把它們推出去。

But our C&I pipelines are fairly robust in all markets, except for our ag. Our ag is relatively flat, which is fine with us. We will still plan to hit single-digit growth for the year, but we are still pushing out some credits in 2026 in the investor CRE buckets.

但我們的 C&I（商業與工業）案源在除農業以外的所有市場都相當強勁。農業相對持平，這對我們來說也可以。我們仍計畫全年達成中個位數成長，但我們也仍在把投資人 CRE 類別中的部分授信往 2026 年推遲。

Okay. Okay., that's helpful. I'm going to sneak one more in there just on the margin. Al, I think you said the exit margin in the month of March was 3.65% versus the quarter's reported 3.77%. Just help us understand the evolution from the full quarter's reported number to that exit margin. Like what were the puts and takes there?

好的，好的，這很有幫助。我再追問一題關於利差。Al，我想你提到 3 月份的期末利差是 3.65%，而本季揭露的是 3.77%。請協助我們理解從整季揭露數字到期末利差之間的變化，也就是其中的增減因素是什麼？

Yeah. I mean, a lot of it had to be lower deposit mix. So we did see really good mix shift, especially on the deposit side because they had good inflows there.

是的。我的意思是，其中很大一部分是因為存款組合較低成本。確實看到非常好的組合轉移，尤其在存款端，因為那邊有不錯的資金流入。

We do expect lower purchase account increase on a go-forward basis, hence why I want to get the exit rate there. So we're only anticipating 20 basis points of purchasing account increase in the second quarter, and it's probably going to step down from there. Because as we continue to see accelerated payoffs, that's borrowing from the future into today.

我們確實預期未來購買帳戶（purchase account）的增幅會降低，因此我才想提供那個期末水準。我們只預期第二季購買帳戶增加 20 個基點，之後可能還會再往下。因為當我們持續看到加速清償，等於是把未來的量提前到現在。

So those are the main puts and takes. Our cost of funds did decline nicely too from the Fed cuts in the fourth quarter of last year, and that was one of the big drivers along with the BSR.

所以主要的增減因素就是這些。我們的資金成本也因為去年第四季聯準會降息而明顯下降，這也是主要驅動因素之一，另外還有 BSR。

Jeff Rulis, DA Davidson.

Jeff Rulis，DA Davidson。

Just circling back on that margin, Al. Just to be clear, the 3.55% to 3.65%, is that -- are you excluding accretion?

Al，回到利差那點。為了確認清楚，3.55% 到 3.65%——那是有排除增值攤銷（accretion）嗎？

No, that's the one -- that's full reported number. That's for the full year.

沒有，那個——那是完整揭露的數字，是全年口徑。

And you're including your expected accretion in that figure.

而且你把預期的增值攤銷也包含在那個數字裡。

Correct, with no accelerated payoffs for the remainder of the year. So we do expect personal accounting accretion to decrease as each quarter progresses.

正確，並假設今年剩餘期間不再有加速清償。因此我們確實預期收購會計的增值攤銷會隨著每一季推進而下降。

Okay. And I think you mentioned some adjustments in the March quarter, but that would imply flat to down. Is that -- maybe just sounds like kind of margin compression going forward. And what's, I guess, the cautiousness on that part? Is it just easing of deposit benefits? .

好的。我想你提到 3 月季度有一些調整，但那似乎意味著持平到下滑。也就是說，未來看起來有點像利差收窄。那麼在這部分你們保守的原因是什麼？是因為存款端的好處在減弱嗎？

Yeah. No problem, Jeff. So it is partially easing the deposit benefits. We did see a couple of rate cuts at the late last year, but also to -- in the second and third quarters, we typically see uploads of deposits, especially from our public funds. So that's going to put a little pressure on our deposit base because as we replace some of our lower-cost funding with higher-cost funding, that'll put a little bit of pressure on there as well.

好的，沒問題，Jeff。確實部分原因是存款端的效益在減弱。我們在去年年底確實看到幾次降息；另外，在第二季與第三季，我們通常會看到存款流出，尤其是公共資金（public funds）。因此這會對我們的存款基礎帶來一些壓力，因為當我們用較高成本資金去替換部分較低成本資金時，也會帶來一些壓力。

Okay. And, Al, in the first quarter, were there any interest recoveries in the margin that impacted the 3.77%? Is that anything in there?

了解。Al，第一季的利差裡是否有任何利息追回（interest recoveries）影響到 3.77%？裡面有這類項目嗎？

No, there were none.

沒有，完全沒有。

Okay. Got it. And then one other question is just to back into the loan growth side. Maybe, do you have production, gross production, in the first quarter versus Q4? It sounds like -- I heard the last commentary about pushing some credits out, but trying to get a sense for how that -- it sounds pretty good on a core basis. So anything on the production numbers that you can give us, quarter over quarter?

好的，明白。那再問一題，回到貸款成長。也許你們能否提供第一季相較第四季的承作量、總承作量？聽起來——我聽到你剛才提到把一些授信往後推，但我想掌握一下核心面向的狀況，聽起來其實不錯。所以在承作數字上，你們能否提供一些季對季的資訊？

From a C&I standpoint, we had really solid C&I growth. I don't have the numbers in front of me, per se, but we're driving mid-market C&I growth fairly well with the full relationships.

就 C&I 而言，我們的 C&I 成長非常扎實。我手邊沒有具體數字，但我們透過完整往來關係（full relationships）在推動中型市場的 C&I 成長方面做得相當不錯。

The CRE, some of the CRE that we put on the books two, three years ago, that's what we're moving off the books, first quarter, second quarter. That's what you'll see moving off the books.

至於 CRE，我們兩三年前放進帳上的部分 CRE，正是我們在第一季、第二季要移出帳上的部分。你會看到那些部位移出。

And you'll continue to see the percentages of C&I grow quarter over quarter like you did last year. When you saw year-over-year 10% C&I growth, you'll continue to see that through 2026 and '27, as that has been our core focus the last three years.

而且你會持續看到 C&I 的占比像去年一樣逐季上升。當你看到年對年 C&I 成長 10% 時，你會在 2026 年與 2027 年持續看到這樣的趨勢，因為這一直是我們過去三年的核心重點。

Would you say production in C&I was greater in the first quarter than it was in the fourth quarter?

你會說第一季 C&I 的承作量比第四季更高嗎？

No, I think it was a little bit lower than it was in the fourth quarter. But I think the pipelines building the second and third quarter look very healthy.

不，我認為比第四季略低一些。但我認為第二季與第三季正在建立的案源看起來非常健康。

Nathan Race, Piper Sandler.

Nathan Race，Piper Sandler。

Al, just going back to the margin discussion, you strip out the accretion that you mentioned in the quarter That implies core loan yields are [560] in 1Q. And to get to your margin guy, I think that would imply a decent step down in loan yields. But

Al，再回到利差討論，你把本季提到的增值攤銷剔除後，代表第一季核心貸款殖利率大約是 [560]。而要達到你們的利差指引，我想那會意味著貸款殖利率需要明顯下滑。但——

it doesn't sound like there's anything unique in kind of that core loan yield in terms of interest recoveries, in response to earlier questions. So I'm just trying to jive the trajectory of loan yields, particularly within the context of what you mentioned in terms of new loan production coming on the low to mid-6s.

聽起來在核心貸款殖利率方面並沒有任何特殊項目，例如你先前問題提到的利息追回。所以我只是想把貸款殖利率的走勢對起來，特別是在你提到新承作貸款利率落在 6% 初到 6% 中段的背景之下。

Thanks for that, Nate. I mean, basically, it was just a little conservatism there, especially as we still think our core margin will be in the mid-3s. But as we continue -- Jim probably could talk about this a little bit more, too, but we are seeing competition pick up, especially in the deposit front. So the benefit of those deposit cost of funds decreases is probably behind us right now unless we see another Fed cut in the future, because we are seeing more pressure on deposit costs in our footprint.

謝謝你，Nate。我的意思是，基本上，那裡只是稍微保守了一點，尤其是我們仍然認為我們的核心利差會在 3% 中段。不過，隨著我們持續——Jim 可能也可以再多談一點——我們看到競爭正在升溫，特別是在存款端。因此，那些存款資金成本下降所帶來的好處，現在可能已經在我們身後了，除非未來聯準會再度降息，因為我們在營運版圖內看到存款成本的壓力更大。

Yeah. I would say in all markets, obviously, all banks are focused on deposits just as we are. It's getting extremely competitive. It's been competitive the whole time. Everybody's sharpening their pencils, so that continues to tighten.

是的。我會說在所有市場，顯然所有銀行都像我們一樣把重點放在存款上。競爭變得極其激烈。其實一直都很競爭。大家都在精打細算，所以這種情況持續使得利差更趨緊縮。

Okay, that's really helpful. Thanks. Maybe a question for Katie, just in terms of maybe some updated thoughts on excess capital management. You guys are building capital at pretty strong clips that even with some balance sheet growth returning, I think you're still going to be accruing capital quite nicely going forward.

好的，這真的很有幫助。謝謝。也許問 Katie 一個問題，就超額資本管理方面是否有一些更新的想法。你們資本累積的速度相當強勁，即使資產負債表成長回來一些，我想你們未來仍會相當不錯地持續累積資本。

So just curious how you're thinking about maybe executing on buybacks as a more continuous capital management tool, particularly just -- I imagine the valuation probably isn't quite where it needs to be or should be considering where you trade on a price potential basis?

所以想請教你們如何看待把庫藏股回購作為更持續性的資本管理工具來執行，特別是——我想以估值來看，考量你們以潛在獲利能力（price-to-potential）基礎的交易水準，股價可能還沒到它應該到、或需要到的水準？

Yeah, great question. Thank you. So from a priority standpoint, pretty consistent with what we've discussed in the previous quarters, invest first and foremost in organic growth, but returning capital opportunistically, especially, as you mentioned, when valuations warranted continues to be a priority. We were active this quarter. We intend to remain active in our buyback going forward.

是的，這是個很好的問題，謝謝。就優先順序而言，與我們前幾季討論的相當一致：首先、也是最重要的是投資於內生成長；但也會在適當時機回饋資本，尤其如你所提到，當估值具吸引力時，這仍然是優先事項。本季我們有進行回購。我們也打算未來持續積極進行庫藏股回購。

Really helpful. If I could just sneak one more in on the wealth management front, I would just be curious to get an update in terms of the traction you're seeing from some of the production-related hires that you brought on over the last several quarters and just generally, how you're thinking about that revenue line growing this year, assuming we have some stability in equity market valuations over the balance of this year?

非常有幫助。如果我可以再多問一個關於財富管理的問題，我想了解一下你們在過去幾季所引進、與產能/業績相關的人才招募，目前看到的進展如何？以及更一般地，你們如何看待今年這條營收線的成長，假設今年剩餘時間股市估值能維持相對穩定？

Yeah, I would say we put on some hires end of last year, a couple more at the beginning of this year. We're seeing some traction on new revenue from them. And we have some additional hires that we're looking to hopefully hire on the balance half of this year.

是的，我會說我們在去年底增聘了一些人，今年年初又增加了幾位。我們正看到他們帶來的新營收有一些進展。而且我們也還有一些額外的人才招募，希望能在今年下半年完成聘用。

We've had solid retention of all clients as we put on that platform, if you recall, last year. We've had the first quarter was predominantly just issues with the markets. But we should see generally good performance out of additional revenue growth out of new clients as we're putting on new wealth advisors going forward.

當我們建立那個平台時——如果你還記得，是在去年——我們對所有客戶的留存都很穩健。第一季主要是市場因素帶來的一些影響。但隨著我們未來持續增聘新的財富顧問，我們應該會看到來自新客戶的新增營收成長，整體表現會不錯。

(Operator Instructions) Damon DelMonte, KBW.

（接線員指示）Damon DelMonte，KBW。

So first one, circle back on the loan growth. So it sounds like you still have some. targeted CRE loans to work off the balance sheet. So if you think about like the quarterly cadence going forward, should we expect kind of like flat-ish balances here in the second quarter and then a nice jump in the third and fourth quarter to kind of get you to that full year target?

第一個問題，回到貸款成長。聽起來你們仍有一些目標性的商用不動產（CRE）貸款要從資產負債表上逐步消化。所以如果看未來每季的節奏，是否可以預期第二季餘額大致持平，然後第三、第四季有不錯的跳升，從而達到全年目標？

I would look to that, yes.

是的，我會這樣看。

Okay. Okay, great. And then given the slower growth here expected in the second quarter, should wemodel in a very modest provision, especially given the sizable release of reserves this quarter? Like, seems like -- you feel like you right-sized your reserve given the credit profile you have, so should we expect kind of a minimal provision that would just cover whatever charge out that you have?

好的，好的，很好。那麼，鑑於第二季預期成長較慢，是否應該在模型中假設提列非常溫和的備抵，特別是考量本季有相當可觀的備抵回沖？看起來——你們覺得以目前的信用組合，你們的備抵已經調整到合適水準了，所以是否可以預期大致是最低限度的提列，只是用來覆蓋你們的核銷？

Yeah. Damon, I think that's right. I mean, going forward, our provision's going to be driven by loan growth and really the macroeconomic factors.

是的，Damon，我想你說得對。我的意思是，往後我們的提列將由貸款成長以及宏觀經濟因素來驅動。

Okay. And so do you feel like the mid-120s is probably a good run rate for you guys over time after any type of, obviously, macro deterioration?

好的。那麼你覺得在沒有任何明顯的宏觀惡化之後，中段 120（約 1.2 億）左右可能是你們長期的合理常態水準嗎？

Yeah. I mean, I -- when I look at our pulled reserve, we're north of [110 to 120], I think is a fair range, of course, depending on what happens in the economy.

是的。我的意思是——當我看我們的整體備抵時，我們高於[110 到 120]，我認為那是一個合理區間，當然也取決於經濟會發生什麼。

Okay, great. And then, I guess, lastly, on expenses. I think, Al, did you say two to three, or sorry, low single-digit growth for the full year off of last year? Is that correct?

好的，很好。最後一個，關於費用。我想，Al，你是說全年相較去年是 2% 到 3%——或抱歉，是低個位數成長？是這樣嗎？

Yeah.

是的。

Brendan Nosal, Hovde Group.

Brendan Nosal，Hovde Group。

Just looking at the mortgage banking segment, like if I look at originations and sales, like those are both seasonally down quite a bit. But the revenue was actually up sequentially. And I think you mentioned MSR fair value benefits. Can you just size up how much of a benefit the MSR was this quarter?

看房貸銀行業務部門，如果我看承作量和出售量，兩者季節性下滑都相當明顯。但營收卻是較上季增加。我想你提到 MSR 公允價值帶來的好處。你能否量化一下本季 MSR 帶來多少助益？

Let me get that number for you. The other benefit too was that in our pipelines in the fourth quarter, we did have the rate cuts affecting our pipeline. So we actually had some mortgages in there that came in at higher rates that allowed us to get bigger gain on sales. So I'd say that was a bigger driver for mortgage that quarter, less impact from the MSR part.

我來幫你找那個數字。另一個助益是，我們在第四季的管線中，確實有降息影響到我們的管線。因此我們其實有一些房貸是以較高利率進來的，讓我們在出售時能取得更高的出售收益（gain on sales）。所以我會說，那一季房貸的更大驅動因素是這個，MSR 的影響相對較小。

Okay. And then one final one for me. I think you folks said in the prep remarks that you continue to make progress on that one large non-accrual loan that is still kind of working through resolution. Can you offer a little bit more color on kind of where you are on that credit, how you reserved, and where ultimate loss content on that loan might end up?

好的。那我最後一個問題。我想你們在事先準備的講稿中提到，你們在那筆仍在處理、等待解決的一筆大型不計息（non-accrual）貸款上持續取得進展。你能否再多提供一些細節，說明目前該筆授信的進度、你們如何提列備抵，以及該筆貸款最終可能的損失幅度會落在哪裡？

Sure, Brandon. This is Karen. We do continue to make progress currently negotiating a sale on that deal. We are getting more clarity around value as we go through that process, and so we actually decreased our reserve from about 17% in Q1 to about 8% in Q2.

當然可以，Brandon。我是 Karen。這筆案子我們確實持續取得進展，目前正在就該案協商出售。我們在推進過程中對價值有更清楚的掌握，因此我們實際上把備抵比率從第一季約 17% 降到第二季約 8%。

And, Brandon, just to close the loop on the fair value mark, we're just looking at right now a couple hundred thousand for fair value on the MSR mark.

另外，Brandon，補充你剛剛問的公允價值評價（fair value mark），我們現在看 MSR 評價的公允價值影響大約是幾十萬美元。

Thank you. I will now be turning the call back over to Katie for closing remarks. This will conclude our Q&A session.

謝謝。接下來我將把電話交回給 Katie 作結語。這將結束我們的問答環節。

All right. Well, thank you, everyone. Appreciate you all joining today.

好的。謝謝各位。感謝大家今天加入。

I just want to take this opportunity to thank our team first and foremost. The results that we discussed today and that you heard about today reflect our culture, our talent, and our discipline across Alerus. And we have built a stronger organization in a relatively short period of time. Very proud of how our teams continue to execute towards our long-term objectives.

我也想藉此機會首先感謝我們的團隊。今天我們討論、各位也聽到的成果，反映了我們在 Alerus 的文化、人才，以及貫徹全公司的紀律。我們在相對短的時間內打造出更強健的組織。對於各團隊持續朝向我們的長期目標執行，我感到非常自豪。

Over the past few years, I think the consistency of our fundamentals is evident. This quarter represents another pearl on the string, disciplined execution of our strategy that we've been articulating, continued progress across earnings power, margin, funding, capital, and credit quality.

過去幾年，我認為我們基本面的穩定性是顯而易見的。本季代表串起珍珠項鍊上的又一顆珍珠：我們對所闡述策略的紀律性執行，並在獲利能力、利差、資金來源、資本與信用品質等方面持續取得進展。

I do want to mention that our overall credit quality has improved meaningfully. Trends in asset quality, criticized loans, and non-performing assets continues to move in the right direction. And we do remain confident that the net charge-offs will normalize towards our long-term historical averages, which compare favorably to industry.

我也想提到，我們整體信用品質已有顯著改善。資產品質、受關注貸款（criticized loans）以及不良資產（non-performing assets）的趨勢持續朝正向發展。我們也仍然有信心，淨核銷將會回歸到我們長期的歷史平均水準，而該水準與同業相比具競爭力。

From a balance sheet and capital allocation standpoint, we are growing where we want to grow with solid momentum in the verticals that we've invested in. We remain focused on consistent execution, and we feel great about the foundation we are continuing to build from the momentum of the company. And we are grateful for all of the collaboration and hard work of our talented team members.

從資產負債表與資本配置的角度來看，我們正把成長放在我們希望成長的領域，且在我們已投入的垂直領域（verticals）中展現穩健動能。我們仍專注於一致且持續的執行，也對公司動能所支撐、我們持續打造的基礎感到非常振奮。同時，我們也感謝所有才華洋溢的團隊成員所展現的協作與辛勤付出。

Thank you again for your time today and for your continued interest in Alerus.

再次感謝各位今天撥冗，以及持續關注 Alerus。

Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now all disconnect.

謝謝。本次電話會議到此結束。感謝各位參加今天的簡報。各位現在可以掛線。