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Exhibit 99.1 ALERUS FINANCIAL CORPORATION FOR RELEASE ( 7.28.2021 ) Katie A. Lorenson , Chief Financial Officer 952.417.3725 ( Office ) ALERUS FINANCIAL CORPORATION REPORTS SECOND QUARTER 2021 NET INCOME OF $ 11.7 MILLION GRAND FORKS , N.D. ( July 28 , 2021 ) - Alerus Financial Corporation ( Nasdaq : ALRS ) reported net income of $ 11.7 million for the second quarter of 2021 , or $ 0.66 per diluted common share , compared to net income of $ 15.2 million , or $ 0.86 per diluted common share , for the first quarter of 2021 , and net income of $ 11.5 million , or $ 0.65 per diluted common share , for the second quarter of 2020 . CEO Comments Chairman , President , and Chief Executive Officer Randy Newman said , " Alerus continues to deliver top tier financial performance , driven by our long - term strategies and focus on offering valued advice to clients , resulting in extraordinary revenue diversification and growth opportunities . Alerus continues to establish itself as a premier provider of holistic solutions to our consumer and business clients . Our client base of more than 540,000 consumer clients and 18,300 business clients is a significant differentiator in our ability to continue to grow and provide superior returns to our shareholders . Our diversified business is rooted by our long standing culture , focused on advice and working in the best interests of our clients , a foundation which has been built over decades of meeting our clients on their financial journey and guiding them to their path for financial success . This relationship focused model is a key differentiator both in working with clients and attracting talented professionals to our organization . During the quarter we strengthened our U.S. Small Business Administration , or SBA , lending capabilities with the addition of an experienced SBA team . Led by industry veteran John Kimball , who most recently served as SBA lending manager at a large , regional community bank , the five - person team collectively has more than 100 years of business banking and small business lending experience at community and regional banks . These team members are aligned with our culture of providing expertise and value to our business clients so they can continue to grow and expand . " Quarterly Highlights ■ Return on average total assets of 1.50 % , compared to 2.02 % for the first quarter of 2021 ■ Return on average tangible common equity ( ¹ ) of 17.36 % , compared to 23.03 % for the first quarter of 2021 ■ Net interest margin ( tax - equivalent ) ( ¹ ) was 2.88 % , compared to 3.12 % for the first quarter of 2021 ■ Allowance for loan losses to total loans , excluding Paycheck Protection Program , or PPP , loans , was 2.02 % , compared to 2.00 % as of December 31 , 2020 ■ Efficiency ratio ( ¹ ) of 71.46 % , compared to 66.43 % for the first quarter of 2021 ■ Noninterest income decreased $ 4.1 million from the first quarter of 2021 and was 63.48 % of total revenue , compared to 64.97 % for the first quarter of 2021 ■ Mortgage originations totaled $ 545.4 million , a 5.3 % increase from the first quarter of 2021 ■ Investment securities increased $ 205.5 million , or 34.7 % , from the fourth quarter of 2020 ■ Loans held for sale decreased $ 55.6 million , or 45.4 % , from the fourth quarter of 2020 ■ Loans held for investment decreased $ 144.1 million , or 7.3 % , from the fourth quarter of 2020 ■ ( 1 ) Deposits increased $ 138.9 million , or 5.4 % , from the fourth quarter of 2020 Represents a non - GAAP financial measure . See " Non - GAAP to GAAP Reconciliations and Calculation of Non - GAAP Financial Measures . "