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INVESTOR PRESENTATION 1Q 2025 NASDAQ: ALRS
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DISCLAIMERS Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Alerus Financial Corporation. These statements are often, but not always, identified by words such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized”, “target” and “outlook”, or the negative version of those words or other comparable words of a future or forward-looking nature. Examples of forward-looking statements include, among others, statements we make regarding our projected growth, anticipated future financial performance, financial condition, credit quality, management’s long-term performance goals and the future plans and prospects of Alerus Financial Corporation. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, the following: the strength of the local, state, national and international economies and financial markets (including effects of inflationary pressures and future monetary policies of the Federal Reserve in response thereto); interest rate risk, including the effects of changes in interest rates; effects on the U.S. economy resulting from the implementation of, or changes to, existing policies and executive orders, including tariffs, immigration policy, regulatory and other governmental agencies, foreign policy, and tax regulations; disruptions to the global supply chain, including as a result of domestic or foreign policies; our ability to successfully manage credit risk, including in the commercial real estate (“CRE”) portfolio, and maintain an adequate level of allowance for credit losses; business and economic conditions generally and in the financial services industry, nationally and within our market areas, including the level and impact of inflation rates and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in several bank failures; our ability to raise additional capital to implement our business plan; the overall health of the local and national real estate market; credit risks and risks from concentrations (by type of borrower, geographic area, collateral, and industry) within our loan portfolio; the concentration of large loans to certain borrowers (including CRE loans); the level of nonperforming assets on our balance sheet; our ability to implement our organic and acquisition growth strategies, including the integration of HMN Financial, Inc. (“HMNF”) which the Company acquired in the fourth quarter of 2024; the commencement, cost, and outcome of litigation and other legal proceedings and regulatory actions against us or to which the Company may become subject, including with respect to pending actions relating to the Company’s previous ESOP fiduciary services commenced by government or private parties; the impact of economic or market conditions on our fee-based services; our ability to continue to grow our retirement and benefit services business; our ability to continue to originate a sufficient volume of residential mortgages; the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; interruptions involving our information technology and telecommunications systems or third-party servicers; potential losses incurred in connection with mortgage loan repurchases; the composition of our executive management team and our ability to attract and retain key personnel; rapid and expensive technological change in the financial services industry; increased competition in the financial services industry, including from non-banks such as credit unions, Fintech companies and digital asset service providers; our ability to successfully manage liquidity risk, including our need to access higher cost sources of funds such as fed funds purchased and short-term borrowings; the concentration of large deposits from certain clients, including those who have balances above current Federal Deposit Insurance Corporation (“FDIC”) insurance limits; the effectiveness of our risk management framework; potential impairment to the goodwill the Company recorded in connection with our past acquisitions, including the acquisitions of Metro Phoenix Bank and HMNF; the extensive regulatory framework that applies to us; changes in local, state, and federal laws, regulations and government policies concerning the Company’s general business, including interpretation and prioritization of such laws, regulations and policies; new or revised accounting standards, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission (the “SEC”) or the Public Company Accounting Oversight Board; fluctuations in the values of the securities held in our securities portfolio, including as a result of changes in interest rates; governmental monetary, trade and fiscal policies; risks related to climate change and the negative impact it may have on our customers and their businesses; severe weather and natural disasters, and widespread disease or pandemics; acts of war or terrorism, including ongoing conflicts in the Middle East, the Russian invasion of Ukraine, or other adverse external events; any material weaknesses in our internal control over financial reporting; changes to U.S. or state tax laws, regulations and governmental policies concerning our general business, including changes in interpretation or prioritization and changes in response to prior bank failures; talent and labor shortages and employee turnover; our success at managing and responding to the risks involved in the foregoing items; and any other risks described in the “Risk Factors” sections of the reports filed by Alerus Financial Corporation with the SEC. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Non-GAAP Financial Measures This presentation includes certain ratios and amounts that do not conform to U.S. Generally Accepted Accounting Principles, or GAAP. Management uses certain non-GAAP financial measures to evaluate financial performance and business trends from period to period and believes that disclosure of these non-GAAP financial measures will help investors, rating agencies and analysts evaluate the financial performance and condition of Alerus Financial Corporation. This presentation includes a reconciliation of each non-GAAP financial measure to the most comparable GAAP equivalent. Miscellaneous Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of Alerus Financial Corporation after the date hereof. Certain of the information contained herein may be derived from information provided by industry sources. We believe that such information is accurate and that the sources from which it has been obtained are reliable. We cannot guarantee the accuracy of such information, however, and we have not independently verified such information. 1
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Retirement & Benefits Revenue 26.6% Wealth Advisory Revenue 11.1% Banking Fees & Other Revenue 10.5% Net Interest Income 51.8% $3.3 $4.0 $3.6 $4.0 $4.6 $4.5 2020 2021 2022 2023 2024 1Q 2025 $3.0 $3.4 $3.8 $3.9 $5.3 $5.3 2020 2021 2022 2023 2024 1Q 2025 COMPANY PROFILE Alerus is a commercial wealth bank and a national retirement plan provider DIVERSIFIED REVENUE Net Interest Income: $126.0 million 51.8% of revenue Noninterest Income: $117.2 million 48.2% of revenue BANKING Business Services Commercial and small business offerings Treasury Management services SBA & CRE Lending Consumer Services Private banking Savings, money markets, CDs Mortgage services Assets: $ in billions WEALTH ADVISORY RETIREMENT AND BENEFIT SERVICES AUA / AUM: $ in billions Retirement Plan administration Trust and custodial offerings Record keeping Benefits Health savings accounts Flexible spending accounts COBRA Financial Planning: Retirement | Tax | Estate planning Investment Management: Managed investments | Brokerage Trust and Fiduciary: Estate Administration | Corporate Trusteeship AUA / AUM: $ in billions 2 | 1. Banking fees and other revenue consists of service charges on deposit accounts, mortgage income, interchange income and other noninterest income. Last Twelve Months Ended March 31, 2025 (1) $34.2 $36.7 $32.1 $36.7 $40.7 $39.9 2020 2021 2022 2023 2024 1Q 2025
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Market Distribution and Client Base FRANCHISE FOOTPRINT BANKING LEGEND: North Dakota Minnesota Arizona National Synergistic WEALTH ADVISORY RETIREMENT AND BENEFITS | ($ in millions) 3 | 492,100 Employer-sponsored retirement and benefit plan participants and health savings account participants 33,400 Flexible spending account and health reimbursement arrangement participants 58,300 Consumer banking clients 20,100 Commercial banking clients 8,500 Employer-sponsored retirement plans 12,400 Wealth clients Data as of 3/31/2025. AUA / AUM: $39,926AUA / AUM: $4,501LOANS: $4,085 DEPOSITS: $4,485 29 FULL-SERVICE BANKING OFFICES Grand Forks, ND: 4 offices Fargo, ND: 3 offices Twin Cities, MN: 7 offices Rochester, MN: 4 offices Southern MN, WI and IA: 9 offices La Crosse, WI: 1 loan production office Phoenix, AZ: 2 offices RETIREMENT AND BENEFIT SERVICES Offices in Minnesota, North Dakota, Michigan, and Colorado Retirement plan service clients in all 50 states 70.3% 13.0% 3.7% 13.0% 19.7% 67.9% 0.3% 12.1% 32.0% 35.5%1.7% 7.5% 23.3% 9.4% 13.5% 77.1% Wisconsin & Iowa
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9.5% 11.0% 11.2% KBW Regional Bank Index (Median) KBW Regional Bank Index (Top Quartile) Alerus Financial ROE(1) (2019 - 2024) 1.11% 1.27% 1.16% KBW Regional Bank Index (Median) KBW Regional Bank Index (Top Quartile) Alerus Financial ROA(1) (2019- 2024) STRATEGIC GROWTH To supplement our organic growth, we have executed 26 acquisitions throughout the history of our company including: 16 in Banking and 10 in Retirement and Benefits. 4 | 1. Source S&P Capital IQ. 2. Excludes net losses on investment securities (after-tax) of $19.5 million in 4Q 2023. See “Non-GAAP Disclosure Reconciliation.” (2) (2) 1879 2022 2019 2009 2007 2000 Began as the Bank of Grand Forks Rebranded to Alerus Expanded to Minnesota Market Expanded to Arizona Market Completed Initial Public Offering (IPO) Acquired Metro Phoenix Bank 2024 Acquired HMN Financial, Inc.
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Providing secure and reliable technology that meets evolving client expectations Integrating our full product and service offerings through our fast-follower technology strategy STRATEGIC INITIATIVES One Alerus = Working Better Together to Grow ORGANIC GROWTH EMPLOYER OF CHOICE STRATEGIC ACQUISITIONS PRODUCTIVITY AND EFFICIENCY Collaborative leadership team focused on new client acquisition, retention, and deepening relationships with existing clients Diversified business model focused on bringing value to clients through advice and specialty solutions to help clients grow Leveraging growth synergies unavailable to traditional banking organizations Recruiting and retaining top talent across the organization with deep expertise and industry experience Accelerating growth in existing or new mid-market C&I banking markets and specialty niches with talent and team lift-outs Proven history as acquiror of choice focused on complementary business models, cultural similarities, and growth opportunities Acquisition targets include nationwide retirement and benefit service providers, wealth management firms, and banks 5 Our Purpose Powers our Culture Do the Right Thing Lead with integrity and provide valued advice and guidance One Alerus Work together to provide purpose-driven products and services for our clients Passion for Excellence Act with accountability and sense of urgency to best serve clients and achieve exceptional results Success is Never Final Embrace opportunities to adapt and grow with our industry and our clients One Alerus Client Oriented Diversified Services Synergistic Growth Tailored Advice Technology Investment Reinvention of Processes
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OFFICERS AND DIRECTORS DAN COUGHLIN Since 2016 Chairman, Alerus Financial Corp. Former MD & Co-Head – Fin’l Services Inv. Banking, Raymond James; Former Chairman & CEO, Howe Barnes Hoefer & Arnett JANET ESTEP Since 2021 Former President and CEO, Nacha; Former EVP, US Bank Transaction Division; Former VP, Pace Analytical Services RANDY NEWMAN Since 1987 Former President and CEO, Alerus GALEN VETTER Since 2013 Former Global CFO, Franklin Templeton Investments; Former Partner-in-Charge, Upper Midwest Region, RSM EXECUTIVE MANAGEMENT BOARD OF DIRECTORS KATIE LORENSON Director, President and Chief Executive Officer 8 years with Alerus AL VILLALON Executive Vice President and Chief Financial Officer 3 years with Alerus JIM COLLINS Executive Vice President and Chief Banking and Revenue Officer 3 years with Alerus KARIN TAYLOR Executive Vice President and Chief Operating Officer 7 years with Alerus MISSY KENEY Executive Vice President and Chief Engagement Officer 20 years with Alerus 6 FORREST WILSON Executive Vice President and Chief Retirement Services Officer 1 year with Alerus NIKKI SORUM Since 2023 Former Head of Sales and Distribution, Thrivent; Former SVP, Private Client Group, RBC Wealth Management Former Partner, McKinsey & Company Former Partner, McKinsey & Company JOHN URIBE Since 2023 Chief Financial Officer Blue Cross and Blue Shield of Minnesota JEFFREY BOLTON Since 2024 Former Chief Administrative Officer and Chief Financial Officer, Mayo Clinic MARY ZIMMER Since 2021 Former Director of Diverse Client Segments and Former Northern Regional President, Wells Fargo Advisors; Former Head of Intl. Wealth USA, Royal Bank of Canada U.S. Wealth Mgmt.
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FIRST QUARTER HIGHLIGHTS Office in Minnetonka, Minnesota
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NII: $41.2 million 3.41% NIM 1Q 2025 HIGHLIGHTS Success is Never Final Adjusted EPS(1): $0.56 +$0.11 from 4Q24 1. Represents a non-GAAP Financial measure. See “Non-GAAP Disclosure Reconciliation.” 2. Synergistic deposits are sourced from the Retirement and Benefit Services and Wealth Advisory Services segments. EARNINGS BALANCE SHEET ASSET & CAPIT AL STRENGTH VALUE CREATION Synergistic Deposits(2): +7.5% vs. 4Q24 Loans: $4.1 billion +2.3% vs. 4Q24 Deposits: $4.5 billion +2.4% vs. 4Q24 L/D Ratio: 91% Stable vs. 4Q24 NCO Ratio: 0.04% -9 bps vs. 4Q24 CET1: 10.1% Well above bank regulatory requirements Expense Management Discipline Adjusted efficiency ratio(1) was 66.9% in 1Q25 decreasing 2.1% vs. 4Q24 Paid $0.20 Dividend Per Share $5.1 million to shareholders Strong Momentum Our first full quarter with HMNF integrated provides us with a strong tailwind 8 | Adjusted ROTCE(1): 17.6% +2.7% vs. 4Q24 TBV per Share(1): $15.27 +$0.83 vs. 4Q24 Adjusted ROAA(1): 1.10% +25 bps vs. 4Q24 ACL to total loans: 1.52% +2 bps vs. 4Q24
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1Q 2025 RESULTS 1. Represents a non-GAAP Financial measure. See “Non-GAAP Disclosure Reconciliation.” Income Statement 9 | (Unaudited) (Unaudited) (Unaudited) (dollars and shares in thousands, except per share data) Net Interest Income $ 41,157 $ 38,284 $ 22,219 Provision for Credit Losses 863 11,992 — Net Interest Income After Provision for Credit Losses 40,294 26,292 22,219 Noninterest Income 27,632 33,874 25,323 Noninterest Expense 50,365 60,457 39,019 Income Before Income Taxes 17,561 (291) 8,523 Income Tax Expense 4,246 (225) 2,091 Net Income $ 13,315 $ (66) $ 6,432 Adjusted Net Income (1) 14,352 11,245 6,671 Pre-Provision Net Revenue(1) $ 18,424 $ 11,701 $ 8,523 Adjusted Pre-Provision Net Revenue (1) 19,737 18,247 8,826 Per Common Share Data Earnings Per Common Share - Diluted $ 0.52 $ — $ 0.32 Adjusted Earnings Per Common Share - Diluted (1) 0.56 0.45 0.33 Diluted Average Common Shares Outstanding 25,653 25,144 19,986 Performance Ratios Return on Average Total Assets 1.02 % — % 0.63 % Adjusted Return on Average Total Assets 1.10 % 0.85 % 0.65 % Return on Average Tangible Common Equity (1) 16.50 % 2.38 % 9.78 % Adjusted Return on Average Tangible Common Equity(1) 17.61 % 14.89 % 10.10 % Noninterest Income as a % of Revenue 40.17 % 46.94 % 53.26 % Net Interest Margin (Tax-Equivalent) 3.41 % 3.20 % 2.30 % Efficiency Ratio(1) 68.76 % 79.47 % 78.88 % Adjusted Efficiency Ratio (1) 66.86 % 68.97 % 78.24 % Three months ended 2025 March 31, December 31, 2024 March 31, 2024
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$15.63 $14.44 $15.27 1Q 2024 4Q 2024 1Q 2025 Tangible Book Value per Share(2) 0.65% 0.85% 1.10% 1Q 2024 4Q 2024 1Q 2025 Adjusted Return on Average Assets(1)/(2) PERFORMANCE RATIOS 1. Rates have been annualized. 2. Represents a non-GAAP Financial measure. See “Non-GAAP Disclosure Reconciliation.”10 | 10.10% 14.89% 17.61% 1Q 2024 4Q 2024 1Q 2025 Adjusted Return on Average Tangible Common Equity(1)/(2)
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$15,655 $16,488 $16,106 $6,118 $7,010 $6,905 $3,545 $6,917 $4,621 $5 $3,459 $25,323 $33,874 $27,632 1Q 2024 4Q 2024 1Q 2025 Noninterest Income Retirement & Benefit Services Wealth Advisory Banking Fees and Other One-time Items 20.4%$22,219 $38,284 $41,157 1Q 2024 4Q 2024 1Q 2025 Net Interest Income KEY REVENUE ITEMS 1. Banking fees and other consists of service charges on deposit accounts, mortgage income, interchange income and other noninterest income. 2. One-time items include the net gain on sale of premises and equipment of $3.5 million in 4Q 2024 and $5 thousand in 1Q 2024.11 | $ in thousands $ in thousands | % of noninterest income Net Interest Income: +7.5% Linked Quarter +85.2% Year-over-year Noninterest Income: -18.4% Linked Quarter +9.1% Year-over-year (1) 24.2% 20.4% 16.7% 25.0%20.7% 14.0% 58.3%48.7%61.8% 10.2% (2) 0.0%
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$38,284 $3,089 $2,379 $(699) $(915) $(981) $41,157 4Q 2024 Asset Volume/Mix Liability Rate Asset Rate & PAA Accrual Days Liability Volume/Mix 1Q 2025 NET INTEREST INCOME $ in Thousands NIM: 3.20% 0.15% 0.20% (0.06%) 0.00% (0.08%) 3.41% QUARTERLY HIGHLIGHTS YIELDS AND RATES NII AND NIM(1) WALK 12 | 1. Tax-equivalent net interest margin. Yields and rates have been annualized. Net interest income for the first quarter of 2025 was $41.2 million, a $2.9 million, or 7.5%, increase from the fourth quarter of 2024. The increase was primarily due to lower cost of funds, higher earning assets acquired in the HMNF transaction, and strong organic loan growth at higher yields. Net interest margin (on a tax-equivalent basis) increased 21 basis points to 3.41% from 3.20% for the fourth quarter of 2024. The increase was mainly attributable to lower average rates paid on deposit balances and organic loan growth at higher yields, partially offset by less purchase accounting accretion (PAA) from fewer pay-offs between the periods. 2.48% 2.68% 2.79% 5.72% 6.27% 6.23% 5.05% 5.60% 5.63% 1Q 2024 4Q 2024 1Q 2025 Earning Assets Investment Securities Yield Loan Yield Total Earning Asset Yield 2.56% 2.37% 2.18% 3.26% 2.96% 2.71%2.91% 2.53% 2.34% 1Q 2024 4Q 2024 1Q 2025 Cost of Funds Cost of Total Deposits Cost of Interest Bearing Deposits Total Cost of Funds 2.30% 3.20% 3.41% 1Q 2024 4Q 2024 1Q 2025 NIM NIM (1) (1)
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EARNING ASSETS QUARTERLY HIGHLIGHTS Total loans increased $93 million, or 2.3%, from December 31, 2024. Quarter over quarter growth was mainly attributed to an increase in commercial loans, partially offset by a decrease in consumer loans. Total non-owner occupied and multifamily CRE loans, to total Bank risk-based capital(3) was 253% as of March 31, 2025. The investment portfolio decreased $28 million compared to December 31, 2024, largely due to paydowns and maturities of U.S. Treasuries and Agency non-MBS. LOAN PORTFOLIO(1) CHANGES INVESTMENT PORTFOLIO MARCH 31, 2025 LOAN PORTFOLIO(1) Held-to-Maturity: 38.0% 31.8% 32.0% Available-for-Sale: 61.4% 67.8% 67.6% Trading Securities(2): 0.6% 0.4% 0.4% % of Earning Assets: 18.7% 17.6% 16.8% AOCI: $(74,256) $(73,366) $(63,254) 13 | $ in thousands $ in thousands 1. Additional loan portfolio breakdown available in appendix. 2. Other includes U.S. Treasury and Agencies, Agency Non-MBS, and trading securities which consist of mutual funds held for deferred compensation. 3. Alerus Financial, N.A. (Bank) total risk-based capital was $516 million as of March 31, 2025. 34.9% 31.4% 32.2% 0.6% 3.9% 1.7% 41.8% 44.9% 45.9% 6.4% 6.0% 6.4%16.3% 13.8% 13.8% $768,964 $867,078 $839,535 3/31/2024 12/31/2024 3/31/2025 Municipals Corporate Debt Corporate ABS & CMO Other Agency MBS (2) 16.1% 8.8% 8.6% 23.3%10.4% 3.3% 28.5% 1.0% Chart As of As of As of Change Change Legend Category 3/31/2024 12/31/2024 3/31/2025 QoQ YoY Commercial and industrial 575,259$ 666,727$ 658,446$ -1.2% 14.5% CRE - Construction, land and development 125,966 294,677 360,024 22.2% 185.8% CRE - Multifamily 260,609 363,123 353,060 -2.8% 35.5% CRE - Non-owner occupied 565,979 967,025 951,559 -1.6% 68.1% CRE - Owner occupied 285,211 371,418 424,880 14.4% 49.0% Agriculture 77,585 124,307 133,134 7.1% 71.6% Residential real estate 879,033 1,161,135 1,165,427 0.4% 32.6% Other consumer 29,833 44,122 38,953 -11.7% 30.6% Total 2,799,475$ 3,992,534$ 4,085,483$ 2.3% 45.9%
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Synergistic 23.3% Commercial 34.9% Consumer 34.2% Public 7.6% 19.8% 28.6%32.3% 14.9% 4.4% DEPOSIT CHARACTERISTICS QUARTERLY HIGHLIGHTS Total deposits increased $107 million, or 2.4%, from December 31, 2024. The loans to deposits ratio was 91.1% as of March 31, 2025, a decrease of 10 basis point from December 31, 2024. The increase in total deposits was due to expanded and new commercial deposit relationships and synergistic deposit growth. Synergistic deposits increased 7.5% from December 31, 2024. DEPOSIT PORTFOLIO CHANGESMARCH 31, 2025 DEPOSIT PORTFOLIO (BY CATEGORY) MARCH 31, 2025 DEPOSIT PORTFOLIO (BY CLIENT SEGMENT) Synergistic deposits(1) grew +18.6% from March 31, 2024. 14 | $ in thousands 1. Synergistic deposits are sourced from the Retirement and Benefit Services and Wealth Advisory Services segments. (1) Noninterest- bearing: Chart As of As of As of Change Change Legend Category 3/31/2024 12/31/2024 3/31/2025 QoQ YoY Noninterest-bearing 692,500$ 903,466$ 889,270$ -1.6% 28.4% Interest-bearing demand 938,751 1,220,173 1,283,031 5.2% 36.7% Money market and savings 1,013,983 1,357,536 1,450,797 6.9% 43.1% Time deposits 456,729 706,965 663,522 -6.1% 45.3% HSA deposits 183,006 190,270 198,671 4.4% 8.6% Total 3,284,969$ 4,378,410$ 4,485,291$ 2.4% 36.5% Loan to deposits ratio 85.2% 91.2% 91.1%
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BANKING SERVICES BANKING SERVICES QUARTERLY HIGHLIGHTS Banking services noninterest income decreased 55.5% from the fourth quarter of 2024. The decrease was primarily due to a gain on the sale of fixed assets related to the sale of one of our three Fargo, North Dakota offices that occurred in the fourth quarter 2024. Mortgage revenue for the first quarter of 2025 decreased $1.8 million, or 53.4%, from the fourth quarter of 2024 due, in part, to a $734 thousand decrease in the fair value of mortgage servicing rights. DIVISIONAL (1) INCOME STATEMENT NONINTEREST INCOME(3) BREAKDOWN MORTGAGE HIGHLIGHTS $ in millions $ in thousands 15 | $ in thousands Purchase: 94.8% 86.1% 83.5% Refinance: 5.2% 13.9% 16.5% Fair Value Change: $306 ($170) $186 1. Includes Corporate Administration income. 2. Includes $7,772 thousand of HMNF day one provision for credit losses in 4Q 2024. 3. Banking noninterest income consists of service charges on deposit accounts, mortgage income, interchange income and other noninterest income. 4. Excludes HMNF acquisition-related expenses. 5. One-time items include the net gain on sale of premises and equipment of $3.5 million in 4Q 2024 and $5 thousand in 1Q 2024. $ in thousands (5) 1Q 2025 4Q 2024 1Q 2024 Net interest income 41,157$ 38,284$ 22,219$ Provision for credit losses (2) 863 11,992 - Noninterest income(3) 4,621 10,376 3,550 Total revenue 44,915 36,668 25,769 Noninterest expense (4) 29,211 30,667 18,671 Net income before taxes: 15,704$ 6,001$ 7,098$ $1,670 $3,277 $1,527 $389 $644 $651 $565 $722 $686 $921 $2,274 $1,757 $5 $3,459 $3,550 $10,376 $4,621 1Q 2024 4Q 2024 1Q 2025 Mortgage Service Charges Debit Card Interchange Other One-time Items $52 $77 $65 $2 $12 $6 $54 $89 $71 1Q 2024 4Q 2024 1Q 2025 Portfolio Sale
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$202,330 $195,617 $233,082 $280,891 $306,491 $153,224 $166,171 $176,729 $190,270 $198,671 $170,224 $167,796 $188,349 $211,988 $237,927 $525,778 $529,584 $598,160 $683,149 $743,089 2021 2022 2023 2024 1Q 2025 Money Market HSA Other RETIREMENT AND BENEFIT SERVICES QUARTERLY HIGHLIGHTS Retirement and Benefit Services revenue decreased 2.3% compared to the fourth quarter of 2024. The decrease was primarily driven by a decrease in asset-based and other fees. AUA / AUM decreased 2.0% from December 31, 2024, while outstanding plans on March 31, 2025 was 8,539. 61% of Retirement and Benefit Services revenue is tied to plans, participants, and activity while 39% of revenue is market sensitive. 52.5% of Retirement and Benefit Services synergistic deposits are indexed. HSA synergistic deposits had an average cost of funds of 10 bps for the first quarter of 2025. DIVISIONAL(1) INCOME STATEMENT AUA / AUM AND PARTICIPANTS SYNERGISTIC DEPOSITS 16 | $ in millions$ in thousands $ in thousands 1. Excludes funds transfer pricing credit on synergistic deposits. $36,733 $32,123 $36,682 $40,729 $39,926 447,564 453,757 473,692 500,164 492,092 2021 2022 2023 2024 1Q 2025 AUA/AUM Participants 1Q 2025 4Q 2024 1Q 2024 Recurring annual income 13,243$ 13,276$ 12,548$ Transactional income 2,863 3,212 3,107 Total noninterest income 16,106 16,488 15,655 Noninterest expense 13,617 14,790 14,189 Net income before taxes: 2,489$ 1,698$ 1,466$
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WEAL TH ADVISORY SERVICES QUARTERLY HIGHLIGHTS Wealth advisory services revenue decreased 1.5% from the fourth quarter of 2024. AUA / AUM decreased 1.7% from December 31, 2024. Synergistic Wealth deposits grew 4.7% in the first quarter 2025 compared to December 31, 2024. 93.6% of Wealth Advisory Services synergistic deposits are indexed. DIVISIONAL (1) INCOME STATEMENT AUA / AUM SYNERGISTIC DEPOSITS 17 | $ in millions$ in thousands $ in thousands 1. Excludes funds transfer pricing credit on synergistic deposits. $4,040 $3,583 $4,019 $4,579 $4,501 2021 2022 2023 2024 1Q 2025 $143,183 $161,973 $253,384 $290,411 $303,956 2021 2022 2023 2024 1Q 2025 1Q 2025 4Q 2024 1Q 2024 Asset management 5,761 5,974$ 5,256$ Brokerage 534 651 366 Insurance and advisory 610 385 496 Total noninterest income 6,905 7,010 6,118 Noninterest expense 4,837 4,144 3,750 Net income before taxes: 2,068$ 2,866$ 2,368$
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$25,240 $30,626 $29,697 $1,906 $1,963 $2,907 $5,345 $6,935 $5,752 $1,965 $3,235 $2,710 $4,255 $7,693 $7,986 $308 $10,005 $1,313 $39,019 $60,457 $50,365 1Q 2024 4Q 2024 1Q 2025 NONINTEREST EXPENSE $ in thousands YEAR-OVER-YEAR HIGHLIGHTS Noninterest expense increased $11.3 million, or 29.1%, compared to the first quarter of 2024. Expense increases were primarily driven by the increased size of the Company due to the HMNF acquisition that closed in the fourth quarter 2024. Increased labor costs, employee benefit costs, higher FDIC expenses, and intangible amortization expense also drove expenses higher. QUARTERLY HIGHLIGHTS Noninterest expense decreased $10.1 million, or 16.7%, compared to the fourth quarter of 2024. The quarter over quarter decrease was primarily driven by the acquisition of HMNF and related expenses in the fourth quarter of 2024. The quarter over quarter decrease in business services, software and technology expense was primarily related to core processing and computer supply expense synergies realized from the HMNF transaction. 18 | Compensation and Benefits Professional Fees and Assessments Other(1) Occupancy and Equipment Business Services, Software and Technology Noninterest Expense: -16.7% Linked Quarter +29.1% Year-over-year 1. Consists of intangible amortization, marketing and business development, supplies and postage, travel, mortgage and lending, and other noninterest expense. 2. Consists of HMNF acquisition-related expenses and severance and signing bonus expenses. See “Total adjusted noninterest expense items” in the “Non-GAAP Disclosure Reconciliation.” One-time items(2)
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0.09% 0.10% 0.22% 1.20% 0.96% 2021 2022 2023 2024 1Q 2025 1,437% 821% 410% 95% 123% 2021 2022 2023 2024 1Q 2025 ASSET QUALITY AND RESERVE LEVELS HIGHLIGHTS For the first quarter of 2025, the Company had net charge-offs of $0.4 million which resulted in net charge-offs to average loans of 4 bps in the quarter. The reserves to total loans ratio was 1.52% at March 31, 2025, an increase of 2 bps from December 31, 2024. Total nonperforming assets were $51.0 million as of March 31, 2025, a decrease of $11.9 million from December 31, 2024. Recorded a provision for credit losses of $0.9 million for the first quarter of 2025. The provision for credit losses was primarily driven by loan growth in CRE construction, land and development loans. NCO/ Avg Loans (0.04)% 0.02% (0.04)% 0.13% 0.04% NPA / ASSETS % RESERVES OVER NPL % RESERVES / LOANS % 19 1.80% 1.27% 1.30% 1.50% 1.52% 2021 2022 2023 2024 1Q 2025 $ in thousands Nonaccrual loans $2,076 $3,794 $8,596 $54,433 $50,517 Accruing loans 90+ days past due 121 - 139 8,453 - Total NPLs $2,197 $3,794 $8,735 $62,886 $50,517
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18.6% 16.5% 14.8% 12.5% 12.7% 2021 2022 2023 2024 1Q 2025 9.8% 11.3% 10.6% 8.7% 8.9% 15.1% 13.7% 12.1% 10.1% 10.3% 2021 2022 2023 2024 1Q 2025 Tier 1 Leverage Tier 1 Capital CAPITAL AND SOURCES OF LIQUIDITY LIQUIDITY COMMON EQUITY TIER 1 TIER 1 CAPITAL/TIER 1 LEVERAGE RATIOS TOTAL RISK BASED CAPITAL 20 | $ in thousands 8% Regulatory Capital Minimum to be considered adequately capitalized. 6% Regulatory Capital Minimum to be considered adequately capitalized. 4% Tier 1 Capital Leverage 1. Excludes unencumbered HTM securities with a market value of $40.4 million. 2. The Company had $25.6 million of brokered deposits as of March 31, 2025. 14.7% 13.4% 11.8% 9.9% 10.1% 2021 2022 2023 2024 1Q 2025 Total assets 5,339,620$ Cash and cash equivalents 82,979 Unencumbered securities AFS 280,880 Overcollateralized securities pledging positions - AFS 46,299 Total On Balance Sheet Liquidity(1) 410,158 FHLB borrowing capacity 1,255,473 FRB Discount Window Capacity 49,170 Fed funds lines 127,000 Brokered CD capacity(2) 1,042,295 Total Off Balance Sheet Liquidity 2,473,938 Total Liquidity as of March 31, 2025 2,884,096$ Total Liquidity (Ex-brokered CD Capacity) 1,841,801$
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OUTLOOK 21 | Loans End of period $4.0b Up mid single digits Deposits End of period NIM Noninterest Income Comparison 2025 Guidance $4.4b Up low single digits 2.56% 3.20 – 3.30% Stable 12/31/2024 12/31/2024 2024 $114.9m 2024 73.4% 2024 Full Year 1. Represents a non-GAAP Financial measure. See “Non-GAAP Disclosure Reconciliation.” < 68.0% Adjusted Efficiency Ratio (1)
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KEY TAKEAWAYS A strong start to 2025 with a full quarter of HMNF integrated EARNINGS BALANCE SHEET ASSET & CAPIT AL STRENGTH VALUE CREATION Increased earnings on the back of robust NII growth Net interest margin expansion of 21 bps compared to the fourth quarter of 2024 Adjusted ROA(1) of 1.10% in the first quarter of 2025 Adjusted EPS(1) increased $0.11 compared to the prior quarter Continued expansion of our balance sheet has bolstered our franchise $93 million, or 2.3%, growth in loans compared to December 31, 2024 $107 million, or 2.4%, increase in deposits compared to December 31, 2024 91.1% loan to deposit ratio Robust capital, reserve levels, asset quality, and diversification keep us well positioned Total reserves to loans of 1.52% CET1 of 10.1%; well above bank regulatory requirements Book value per share of $20.27, an increase of $0.72 from the prior quarter We remain focused on the long-term success of the Company Recognized a robust first quarter with HMNF fully integrated Returned $5.1 million to stockholders through dividends Continued momentum in returning the Company to top tier performance 22 | 1. Represents a non-GAAP Financial measure. See “Non-GAAP Disclosure Reconciliation.”
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APPENDIX Office in Downtown Minneapolis, Minnesota
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DIVISIONAL INCOME STATEMENT 24 | 1. Includes $7,772 thousand of HMNF day one provision for credit losses 2. Banking noninterest income consists of service charges on deposit accounts, mortgage income, interchange income and other noninterest income. ($ dollars in thousands) Banking Services Retirement and Benefit Services Wealth Advisory Services Corporate Administration Consolidated Net interest income 41,807$ -$ -$ (650)$ 41,157$ Provision for loan losses 863 - - - 863 Noninterest income(2) 4,648 16,106 6,905 (27) 27,632 Noninterest expense 29,211 13,617 4,837 2,700 50,365 Net income before taxes 16,381$ 2,489$ 2,068$ (3,377)$ 17,561$ Banking Services Retirement and Benefit Services Wealth Advisory Services Corporate Administration Consolidated Net interest income 38,949$ -$ -$ (665)$ 38,284$ Provision for loan losses (1) 11,992 - - - 11,992 Noninterest income(2) 6,907 16,488 7,010 3,469 33,874 Noninterest expense 30,667 14,790 4,144 10,856 60,457 Net income before taxes 3,197$ 1,698$ 2,866$ (8,052)$ (291)$ Banking Services Retirement and Benefit Services Wealth Advisory Services Corporate Administration Consolidated Net interest income 22,897$ -$ -$ (678)$ 22,219$ Provision for loan losses - - - - - Noninterest income(2) 3,489 15,655 6,118 61 25,323 Noninterest expense 18,671 14,189 3,750 2,409 39,019 Net income before taxes 7,715$ 1,466$ 2,368$ (3,026)$ 8,523$ Quarter ended March 31, 2025 Quarter ended March 31, 2024 Quarter ended December 31, 2024
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LOAN PORTFOLIO BREAKDOWN 25 ($ in thousands) Balance Percent of Portfolio Balance Percent of Portfolio Commercial and industrial: General business 329,879$ 8.1% 340,702$ 8.5% Services 177,036 4.3% 177,813 4.5% Retail trade 87,002 2.1% 88,105 2.2% Manufacturing 64,529 1.6% 60,107 1.5% Total commercial and industrial 658,446 16.1% 666,727 16.7% Commercial real estate: Construction, land and development 360,024 8.8% 294,677 7.4% Multifamily 353,060 8.6% 363,123 9.1% Non-owner occupied Office 165,914 4.1% 168,170 4.2% Industrial 171,259 4.2% 169,391 4.2% Retail 149,250 3.7% 154,325 3.9% Hotel 170,497 4.2% 170,982 4.3% Medical Office 166,912 4.1% 139,939 3.5% Medical or nursing facility 84,873 2.1% 110,164 2.8% Other commercial real estate 42,854 0.9% 54,054 1.3% Total non-owner occupied 951,559 23.3% 967,025 24.2% Owner Occupied 424,880 10.4% 371,418 9.3% Total commercial real estate 2,089,523 51.1% 1,996,243 50.0% Agricultural: Land 68,894 1.7% 61,299 1.5% Production 64,240 1.6% 63,008 1.6% Total agricultural 133,134 3.3% 124,307 3.1% Consumer Residential real estate first lien 907,534 22.2% 921,019 23.1% Residential real estate construction 38,553 0.9% 33,547 0.8% Residential real estate HELOC 175,600 4.3% 162,509 4.1% Residential real estate junior lien 43,740 1.1% 44,060 1.1% Other Consumer 38,953 1.0% 44,122 1.1% Total consumer 1,204,380 29.5% 1,205,257 30.2% Total loans 4,085,483$ 100.0% 3,992,534$ 100.0% March 31, 2025 December 31, 2024
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0% 10% 20% 30% 40% 50% 60% - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2021 2022 2023 2024 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Home Equity Lines of Credit Funded Unfunded Funded % 0% 10% 20% 30% 40% 50% 60% - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2021 2022 2023 2024 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 C&I Funded Unfunded Funded % LINE OF CREDIT UTILIZATION Commercial and industrial loans includes revolving C&I loans and other loans. It excludes non-revolving C&I loans, ag production, and loans to public entities.26 | $ in thousands $ in thousands
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ALLOWANCE FOR CREDIT LOSSES ON LOANS Changes in the ACL for Loans by Portfolio Segment 1. The difference in the credit loss expense reported herein compared to the consolidated statements of income is associated with the credit loss expense of ($1,542) thousand related to off-balance sheet credit exposure and ($2) thousand related to held-to-maturity investment securities. 27 | Provision for Credit Losses(1) ($ in thousands) Commercial: Commercial and industrial $ 8,170 $ (311) $ (169) $ 270 $ 7,960 Commercial real estate Construction, land and development 16,277 2,092 — — 18,369 Multifamily 4,716 33 — — 4,749 Non-owner occupied 16,513 (171) — — 16,342 Owner occupied 3,226 275 — 11 3,512 Total commercial real estate 40,732 2,229 — 11 42,972 Agricultural Land 597 6 — — 603 Production 631 270 — 12 913 Total Agriculture 1,228 276 — 12 1,516 Total commercial 50,130 2,194 (169) 293 52,448 Consumer: Residential real estate First lien 6,921 175 (54) — 7,042 Construction 357 110 — — 467 HELOC 1,339 91 (250) — 1,180 Junior lien 742 (3) (300) — 439 Total residential real estate 9,359 373 (604) — 9,128 Other consumer 440 (160) (39) 112 353 Total Consumer 9,799 213 (643) 112 9,481 Total $ 59,929 $ 2,407 $ (812) $ 405 $ 61,929 Ending Balance Three months ended March 31, 2025 Loan Charge-offs Loan Recoveries Beginning Balance
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ALLOWANCE FOR CREDIT LOSSES ON LOANS Allocation by Loan Portfolio Segment 28 ($ in thousands) Commercial and industrial $ 7,960 1.21% $ 8,170 1.23% CRE - Construction, land and development 18,369 5.10% 16,277 5.52% CRE - Multifamily 4,749 1.35% 4,716 1.30% CRE - Non-owner occupied 16,342 1.72% 16,513 1.71% CRE - Owner occupied 3,512 0.83% 3,226 0.87% Agricultural - Land 603 0.88% 597 0.97% Agricultural - Production 913 1.42% 631 1.00% Residential real estate first lien 7,042 0.78% 6,921 0.75% Residential real estate construction 467 1.21% 357 1.06% Residential real estate HELOC 1,180 0.67% 1,339 0.82% Residential real estate junior lien 439 1.00% 742 1.68% Other Consumer 353 0.91% 440 1.00% Total loans $ 61,929 1.52% $ 59,929 1.50% to segment loans March 31, 2025 December 31, 2024 Allocated segment allowance Allowance to segment loans Allocated Allowance segment allowance Percentage of Percentage of
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FINANCIAL HIGHLIGHTS 1. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.”29 | ($ in thousands, except where otherwise noted) 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Total Assets 4,338,093$ 4,358,623$ 4,084,640$ 5,261,673$ 5,339,620$ Total Loans 2,799,475 2,915,792 3,032,343 3,992,534 4,085,483 Total Deposits 3,284,969 3,298,575 3,323,550 4,378,410 4,485,291 Tangible Common Equity 1 309,018 311,933 326,517 365,894 387,426 Net Income 6,432$ 6,208$ 5,207$ (66)$ 13,315$ ROAA (%) 0.63 0.58 0.48 — 1.02 ROATCE(%)1 9.78 9.40 7.83 2.38 16.50 Net Interest Margin (FTE) (%) 2.30 2.39 2.23 3.20 3.41 Efficiency Ratio (FTE) (%) 1 78.88 72.50 80.29 79.47 68.76 Non-Int. Income/Op. Rev. (%) 53.26 53.28 55.72 46.94 40.17 Earnings per common share - diluted 0.32$ 0.31$ 0.26$ -$ 0.52$ Total Equity/Total Assets (%) 8.57 8.56 9.46 9.42 9.63 Tang. Cmn. Equity/Tang. Assets (%) 1 7.23 7.26 8.11 7.13 7.43 Loans/Deposits (%) 85.22 88.40 91.24 91.19 91.09 NPLs/Loans (%) 0.26 0.95 1.58 1.58 1.24 NPAs/Assets (%) 0.17 0.63 1.18 1.20 0.96 Allowance/NPLs (%) 498.08 138.79 81.50 95.30 122.59 Allowance/Loans (%) 1.31 1.31 1.29 1.50 1.52 NCOs/Average Loans (%) 0.01 0.36 0.04 0.13 0.04 Quarterly
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FINANCIAL HIGHLIGHTS 30 | 1. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.” ($ in thousands, 20 - '24 except where otherwise noted) 2020 2021 2022 2023 2024 CAGR Total Assets 3,013,771$ 3,392,691$ 3,779,637$ 3,907,713$ 5,261,673$ 14.9% Total Loans 1,979,375 1,758,020 2,443,994 2,759,583 3,992,534 19.2% Total Deposits 2,571,993 2,920,551 2,915,484 3,095,611 4,378,410 14.2% Tangible Common Equity 1 274,043 307,663 287,330 305,186 365,894 7.5% Net Income 44,675$ 52,681$ 40,005$ 11,696$ 17,780$ ROAA (%) 1.61 1.66 1.14 0.31 0.39 ROATCE(%)1 17.74 18.89 15.09 5.37 7.12 Net Interest Margin (FTE) (%) 3.22 2.90 3.04 2.46 2.56 Efficiency Ratio (FTE) (%) 1 68.40 70.02 72.86 85.85 77.92 Non-Int. Income/Op. Rev. (%) 64.05 62.86 52.72 47.74 51.78 Earnings per common share - diluted 2.52 2.97 2.10 0.58 0.83 Total Equity/Total Assets (%) 10.96 10.59 9.44 9.45 9.42 Tang. Cmn. Equity/Tang. Assets (%) 1 9.27 9.21 7.74 7.94 7.13 Loans/Deposits (%) 76.96 60.19 83.83 89.15 91.19 NPLs/Loans (%) 0.26 0.12 0.16 0.32 1.58 NPAs/Assets (%) 0.17 0.09 0.10 0.22 1.20 Allowance/NPLs (%) 674.13 1,437.05 820.93 410.34 95.30 Allowance/Loans (%) 1.73 1.80 1.27 1.30 1.50 NCOs/Average Loans (%) 0.03 (0.04) 0.02 (0.04) 0.13 Annual
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NON-GAAP DISCLOSURE RECONCILIATION 31 ($ in thousands, except where otherwise noted) 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Tangible common equity to tangible assets Total common stockholders' equity 371,635$ 373,226$ 386,486$ 495,410$ 514,232$ Less: Goodwill 46,783 46,783 46,783 85,634 85,634 Less: Other intangible assets 15,834 14,510 13,186 43,882 41,172 Tangible common equity (a) 309,018 311,933 326,517 365,894 387,426 Total assets 4,338,093 4,358,623 4,084,640 5,261,673 5,339,620 Less: Goodwill 46,783 46,783 46,783 85,634 85,634 Less: Other intangible assets 15,834 14,510 13,186 43,882 41,172 Tangible assets (b) 4,275,476 4,297,330 4,024,671 5,132,157 5,212,814 Tangible common equity to tangible assets (a)/(b) 7.23% 7.26% 8.11% 7.13% 7.43% Tangible common equity per common share Total stockholders' equity 371,635$ 373,226$ 386,486$ 495,410$ 514,232$ Less: Goodwill 46,783 46,783 46,783 85,634 85,634 Less: Other intangible assets 15,834 14,510 13,186 43,882 41,172 Tangible common equity (c) 309,018 311,933 326,517 365,894 387,426 Common shares outstanding (d) 19,777 19,778 19,790 25,345 25,366 Tangible common equity per common share (c)/(d) 15.63$ 15.77$ 16.50$ 14.44$ 15.27$ Return on average tangible common equity Net income 6,432$ 6,208$ 5,207$ (66)$ 13,315$ Add: Intangible amortization expense (net of tax) 1,046 1,046 1,046 2,215 2,141 Net income, excluding intangible amortization (e) 7,478 7,254 6,253 2,149 15,456 Average total equity 367,248 369,217 375,229 478,092 499,224 Less: Average goodwill 46,783 46,783 46,783 84,393 85,634 Less: Average other intangible assets (net of tax) 13,018 11,969 10,933 34,107 33,718 Average tangible common equity (f) 307,447 310,465 317,513 359,592 379,872 Return on average tangible common equity (e)/(f) 9.78% 9.40% 7.83% 2.38% 16.50% Efficiency ratio Noninterest expense 39,019$ 38,752$ 42,447$ 60,457$ 50,365$ Less: Intangible amortization expense 1,324 1,324 1,324 2,804 2,710 Adjusted noninterest expense for efficiency ratio (g) 37,695 37,428 41,123 57,653 47,655 Net interest income 22,219 24,001 22,542 38,284 41,157 Noninterest income 25,323 27,371 28,363 33,874 27,632 Tax-equivalent adjustment 246 255 314 385 520 Total tax-equivalent revenue (h) 47,788 51,627 51,219 72,543 69,309 Efficiency ratio (g)/(h) 78.88% 72.50% 80.29% 79.47% 68.76% Quarterly
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NON-GAAP DISCLOSURE RECONCILIATION 32 ($ in thousands, except where otherwise noted) 2020 2021 2022 2023 2024 Tangible common equity to tangible assets Total common stockholders' equity 330,163$ 359,403$ 356,872$ 369,127$ 495,410$ Less: Goodwi l l 30,201 31,490 47,087 46,783 85,634 Less: Other i ntangi bl e assets 25,919 20,250 22,455 17,158 43,882 Tangible common equity (a) 274,043 307,663 287,330 305,186 365,894 Total assets 3,013,771 3,392,691 3,779,637 3,907,713 5,261,673 Less: Goodwi l l 30,201 31,490 47,087 46,783 85,634 Less: Other i ntangi bl e assets 25,919 20,250 22,455 17,158 43,882 Tangible assets (b) 2,957,651 3,340,951 3,710,095 3,843,772 5,132,157 Tangible common equity to tangible assets (a)/(b) 9.27% 9.21% 7.74% 7.94% 7.13% Tangible common equity per common share Total stockholders' equity 330,163$ 359,403$ 356,872$ 369,127$ 495,410$ Less: Goodwi l l 30,201 31,490 47,087 46,783 85,634 Less: Other i ntangi bl e assets 25,919 20,250 22,455 17,158 43,882 Tangible common equity (c) 274,043 307,663 287,330 305,186 365,894 Common shares outstanding (d) 17,125 17,213 19,992 19,734 25,345 Tangible common equity per common share (c)/(d) 16.00$ 17.87$ 14.37$ 15.46$ 14.44$ Return on average tangible common equity Net i ncome 44,675$ 52,681$ 40,005$ 11,696$ 17,780$ Add: Intangible amortization expense (net of tax) 3,129 3,460 3,756 4,184 5,353 Net income, excluding intangible amortization (e) 47,804 56,141 43,761 15,880 23,133 Average total equi ty 310,208 346,059 346,355 358,268 397,738 Less: Average goodwi l l 27,439 30,385 39,415 46,959 56,237 Less: Average other i ntangi bl e assets (net of tax) 13,309 18,548 17,018 15,624 17,534 Average tangible common equity (f) 269,460 297,126 289,922 295,685 323,967 Return on average tangible common equity (e)/(f) 17.74% 18.89% 15.09% 5.37% 7.12% Efficiency Ratio Noni nterest expense 163,799$ 168,909$ 158,770$ 150,157$ 180,675$ Less: Intangible amortization expense 3,961 4,380 4,754 5,296 6,776 Adjusted noninterest expense (i) 159,838 164,529 154,016 144,861 173,899 Net i nterest i ncome 83,846 87,099 99,729 87,839 107,045 Noninterest income 149,371 147,387 111,223 80,229 114,930 Tax-equivalent adjustment 455 492 429 671 1,202 Total tax-equi val ent revenue(j) 233,672 234,978 211,381 168,739 223,177 Efficie ncy ratio (i)/(j) 68.40% 70.02% 72.86% 85.85% 77.92% Annual
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NON-GAAP DISCLOSURE RECONCILIATION 1. Adjusted items are shown after-tax using a 21% tax rate.33 | ($ in thousands, except for per share data and where otherwise noted) 2019 2020 2021 2022 2023 2024 Average Adjusted net income excluding net gains (losses) on investment securities Net Income 29,540$ 44,675$ 52,681$ 40,005$ 11,696$ 17,780$ Less: Net gains (losses) on investment securities - - - - (19,468) - Adjusted net income excluding net gains (losses) on investment securities(1) (a) 29,540 44,675 52,681 40,005 31,164 17,780 Adjusted return on average equity Average total equity (b) 231,084 310,208 346,059 346,355 358,268 397,738 Adjusted return on average equity (a)/(b) 12.78% 14.40% 15.22% 11.55% 8.70% 4.47% 11.19% Adjusted return on average assets Average total assets (c) 2,211,993 2,775,140 3,178,820 3,500,655 3,817,017 4,503,483 Adjusted return on average assets (a)/(c) 1.34% 1.61% 1.66% 1.14% 0.82% 0.39% 1.16% Annual
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NON-GAAP DISCLOSURE RECONCILIATION 34 | 1. Includes HMNF acquisition-related personnel expenses. 1Q 2024 4Q 2024 1Q 2025 Pre-provision net revenue Add: Net interest income 22,219$ 38,284$ 41,157$ Add: Noninterest income 25,323 33,874 27,632 Less: Noninterest expense 39,019 60,457 50,365 Pre-provision net revenue 8,523 11,701 18,424 Adjusted noninterest income Noninterest income 25,323$ 33,874$ 27,632$ Less: Adjusted noninterest income items Net gain on sale of premises and equipment 5 3,459 — Total adjusted noninterest income items (a) 5 3,459 — Adjusted noninterest income (b) 25,318 30,415 27,632 Adjusted noninterest expense Noninterest expense 39,019$ 60,457$ 50,365$ Less: Adjusted noninterest expense items HMNF acquisition-related expenses 28 7,729 286 Severance and signing bonus expense (1) 280 2,276 1,027 Total adjusted noninterest expense items (c) 308 10,005 1,313 Adjusted noninterest expense (d) 38,711 50,452 49,052 Adjusted pre-provision net revenue Add: Net interest income 22,219$ 38,284$ 41,157$ Add: Adjusted noninterest income (b) 25,318 30,415 27,632 Less: Adjusted noninterest expense (d) 38,711 50,452 49,052 Adjusted pre-provision net revenue 8,826 18,247 19,737 Adjusted Efficiency ratio Adjusted noninterest expense (d) 38,711$ 50,452$ 49,052$ Less: Intangible amortization expense 1,324 2,804 2,710 Adjusted noninterest expense for efficiency ratio (e) 37,387 47,648 46,342 Total tax-equivalent revenue Add: Net interest income 22,219 38,284 41,157 Add: Adjusted noninterest income (b) 25,318 30,415 27,632 Add: Tax-equivalent adjustment 246 385 520 Total tax-equivalent revenue (f) 47,783 69,084 69,309 Adjusted efficiency ratio (e)/(f) 78.24% 68.97% 66.86% ($ in thousands, except for per share data and where otherwise noted) Quarterly
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NON-GAAP DISCLOSURE RECONCILIATION 35 | 1. Adjusted items are shown after-tax using a 21% tax rate. ($ in thousands, except for per share data and where otherwise noted) Lettered items are continued from the prior slide 1Q 2024 4Q 2024 1Q 2025 Adjusted net income Net Income 6,432$ (66)$ 13,315$ Less: Adjusted noninterest income items (net of tax) (1) (a) 4 2,733 - Add: HMNF Day One Provision for Credit Losses (net of tax) (1) - 6,140 - Add: Adjusted noninterest expense items (net of tax) (1) (c) 243 7,904 1,037 Adjusted net income (g) 6,671 11,245 14,352 Adjusted earnings per share Adjusted net income (g) 6,671$ 11,245$ 14,352$ Less: Dividends and undistributed earnings allocated to participating securities 40 (54) 99 Adjusted net income available to common (h) 6,631 11,299 14,253 Diluted average common shares outstanding (i) 19,986 25,144 25,653 Adjusted earnings per share (h) / (i) 0.33 0.45 0.56 Adjusted return on average assets Average total assets (j) 4,139,053 5,272,777 5,272,319 Adjusted return on average assets (g)/(j) 0.65% 0.85% 1.10% Adjusted return on average tangible common equity Adjusted net income (g) 6,671$ 11,245$ 14,352$ Add: Intangible amortization expense (net of tax) (1) 1,046 2,215 2,141 Adjusted net income, excluding intangible amortization (k) 7,717 13,460 16,493 Average total equity 367,248 478,092 499,224 Less: Average goodwill 46,783 84,393 85,634 Less: Average other intangible assets (net of tax) (1) 13,018 34,107 33,718 Average tangible common equity (l) 307,447 359,592 379,872 Adjusted return on average tangible common equity (k)/(l) 10.10% 14.89% 17.61% Quarterly