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Exhibit 99.1 ALERUS FINANCIAL CORPORATION FOR RELEASE ( 10.27.2021 ) Katie A. Lorenson , Chief Financial Officer 952.417.3725 ( Office ) ALERUS FINANCIAL CORPORATION REPORTS THIRD QUARTER 2021 NET INCOME OF $ 13.1 MILLION GRAND FORKS , N.D. ( October 27 , 2021 ) - Alerus Financial Corporation ( Nasdaq : ALRS ) reported net income of $ 13.1 million for the third quarter of 2021 , or $ 0.74 per diluted common share , compared to net income of $ 11.7 million , or $ 0.66 per diluted common share , for the second quarter of 2021 , and net income of $ 17.7 million , or $ 0.99 per diluted common share , for the third quarter of 2020 . CEO Comments Chairman , President , and Chief Executive Officer Randy Newman said , “ Our diversified business model continues to drive strong financial performance , as we ended the third quarter with a return on tangible common equity of over 18.0 % . We generated $ 57.2 million of revenue through continued momentum in our retirement , wealth management and mortgage businesses , while net interest income and loan growth ( excluding Paycheck Protection Program , or PPP , loans ) showed incremental improvement with average total earning assets growing 10.6 % year - over - year . Credit quality was better than expected with another net recovery quarter driving a negative provision for the quarter . Tangible book value grew over 7.0 % from a year ago , which includes the intangibles recognized in the December 2020 acquisition of the Denver based , 24HourFlex / RPS . During the quarter , we converted 24HourFlex clients to Alerus and are pleased to see exceptional client retention and growth . We greatly appreciate all of our employees for their continued hard work , remarkable ongoing engagement and dedication to serving our clients , and their ability to help us produce strong returns for our shareholders . " Quarterly Highlights ▪ Return on average total assets of 1.62 % , compared to 1.50 % for the second quarter of 2021 ■ Return on average tangible common equity ( ¹ ) of 18.13 % , compared to 17.36 % for the second quarter of 2021 ■ Net interest margin ( tax - equivalent ) ( ¹ ) was 2.78 % , compared to 2.88 % for the second quarter of 2021 ■ Allowance for loan losses to total loans , excluding PPP loans was 1.89 % , compared to 2.00 % as of December 31 , 2020 ■ Efficiency ratio ( ¹ ) of 71.49 % , compared to 71.46 % for the second quarter of 2021 ■ Noninterest income for the second quarter of 2021 was 63.04 % of total revenue , compared to 63.48 % for the second quarter of 2021 ■ Mortgage originations totaled $ 415.8 million , a 23.8 % decrease from the second quarter of 2021 ■ Investment securities increased $ 425.5 million , or 71.8 % , since December 31 , 2020 ■ Loans held for sale decreased $ 61.5 million , or 50.3 % , since December 31 , 2020 ■ Loans held for investment decreased $ 179.0 million , or 9.0 % , since December 31 , 2020. Excluding PPP loans , loans held for investment decreased $ 14.1 million , or 0.8 % , since December 31 , 2020 ■ Deposits increased $ 141.1 million , or 5.5 % , since December 31 , 2020 ( 1 ) Represents a non - GAAP financial measure . See " Non - GAAP to GAAP Reconciliations and Calculation of Non - GAAP Financial Measures . "