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INVESTOR PRESENTATION2Q 2026NASDAQ: ALRS
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DISCLAIMERSForward-Looking StatementsThis presentation contains “forward-looking statements” within the meanings of the Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.The company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, withoutlimitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Alerus Financial Corporation. These statements are often, but notalways, 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 prospectsof 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, futureplans 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 known andunknown uncertainties, risks, changes in circumstances and other factors that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materiallyfrom 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 todiffer 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 (includingeffects of inflationary pressures and future monetary policies of the Federal Reserve and executive orders in response thereto); interest rate risk, including the effects of changes in interest rates; effects on theU.S. economy resulting from actions taken by the federal government, including the threat or implementation of tariffs, immigration enforcement, executive orders, and changes in foreign policy; disruptions tothe 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 levelof 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 andpossible recession; our ability to raise additional capital to implement our business plan; credit risks and risks from concentrations (including by type of borrower, geographic area, collateral, and industry) withinour 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 organic and acquisition growthstrategies; 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 pendingactions relating to the Company’s previous employee stock ownership program fiduciary services commenced by government and private parties; the impact of economic or market conditions on our fee-basedservices; 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 oras 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 changes implemented by us and other parties in the financial servicesindustry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including thedevelopment and implementation of tools incorporating artificial intelligence; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damageour reputation, or otherwise materially harm our business or customers; increased competition in the financial services industry, including from non-banks such as credit unions, Fintech companies and digitalasset 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 oflarge 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 HMN Financial, Inc. (“HMNF”); the extensive regulatoryframework that applies to us; the ability of Alerus Financial, National Association (the “Bank”) to pay dividends to us and our ability to pay dividends to our stockholders; new or revised accounting standards, asmay 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 thenegative impact it may have on our customers and their businesses; severe weather and natural disasters, and widespread disease or pandemics; acts of war, military conflicts, or terrorism, including the wars inIran and Ukraine, ongoing conflicts in the Middle East, and international military conflicts, or adverse external events and changes in foreign relations that can increase levels of political and economicunpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; the availability of future equityand debt issuances and other capital raising opportunities on favorable terms; any material weaknesses in our internal control over financial reporting; our success at managing and responding to the risksinvolved 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 publiclyupdate 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 MeasuresThis 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 financialperformance 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 andcondition of Alerus Financial Corporation. This presentation includes a reconciliation of each non-GAAP financial measure to the most comparable GAAP equivalent.MiscellaneousExcept 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 theaffairs 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 isaccurate 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 Revenue22.4%Wealth Advisory Revenue9.5%Banking Fees & Other Revenue8.9%Net Interest Income59.2%Adjusted Noninterest Income(1):$124.5 million40.8% of revenueCOMPANY PROFILEAlerus is a Leading Commercial Wealth Bank and a National Retirement Plan ProviderDiversified Revenue(1)Net Interest Income:$181.0 million59.2% of revenueBanking ServicesBusiness ServicesCommercial and small business offeringsTreasury management servicesCRE and SBA LendingConsumer ServicesPrivate bankingSavings, money markets, CDsMortgage servicesAssets:$ in billionsWealth Advisory ServicesRetirement and Benefit ServicesAUA / AUM(3):$ in billionsRetirement ServicesPlan administrationTrust and custodial offeringsRecord keepingBenefit ServicesHealth savings accountsFlexible spending accountsCOBRAFinancial Planning: Retirement | Tax | Estate planning Investment Management: Managed investments | BrokerageTrust and Fiduciary:Estate administration | Corporate trusteeshipAUA / AUM:$ in billions1. Excludes net losses on investment securities, net gains on sale of loans, and net losses on sale/disposal of fixed assets. See “Non-GAAP Disclosure Reconciliation.”2. Banking fees and other revenue consists of service charges on deposit accounts, mortgage income, interchange income and other noninterest income.3. Data is approximate based on the data available at the time of release. Last Twelve Months Ended June 30, 2026(1)/(2)$4.0 $3.6 $4.0 $4.6 $4.9 $5.2 202120222023202420252Q 20262$3.4 $3.8 $3.9 $5.3 $5.2 $5.3 2021 2022 2023 2024 2025 2Q 2026 $36.7 $32.1 $36.7 $40.7 $44.9 $45.2 2021 2022 2023 2024 2025 2Q 2026
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Market Distribution and Client Base(1)55,900Consumer clients(2)17,700Commercial clients(2)11,900Wealth clients5,600Employer-sponsored retirement plans329,400Employer-sponsored retirement participant accounts132,300Health and welfare benefit participant accounts26 Full-Service Banking OfficesGrand Forks, ND: 4 officesFargo, ND: 2 officesTwin Cities, MN: 6 officesRochester, MN: 3 officesSouthern MN, WI and IA: 9 officesPhoenix, AZ: 2 officesRetirement and Benefit ServicesRetirement plan service clients in all 50 states COMPANY FOOTPRINT AND SCALE 3 BankingWealth AdvisoryServicesRetirement and Benefit ServicesAUA / AUM(1): $45,164AUA / AUM: $5,196Loans: $4,034Deposits: $4,192 Legend:($ in millions)North Dakota Minnesota ArizonaNationalSynergistic(3)Wisconsin and Iowa1. Client base data is approximate based on the data available at the time of release and rounded to the nearest hundred.2. Includes applicable clients from our Banking, Wealth Advisory, and Retirement and Benefit segments.3. Synergistic deposits are sourced from the Retirement and Benefit Services and Wealth Advisory Services segments. Data as of 6/30/2026. 25.5%55.3%4.1%15.1%29.3%39.3%2.8%6.0%22.6%69.9%9.4%4.4%16.3%9.8%14.1%76.1%
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STRATEGIC GROWTHTo supplement our organic growth, we have executed 26 acquisitions throughout the history of our company including: 16in Banking and 10in Retirement and Benefit Services. 187920222019200920072000Began as the Bank of Grand ForksRebranded to AlerusExpanded to Minnesota MarketExpanded toArizona MarketCompleted Initial Public Offering (IPO)Acquired Metro Phoenix Bank2024Acquired HMN Financial, Inc.Deposit Balances(1)(% by Year Client Account Opened)1. Data as of 6/30/2026.2003: Acquired Pension Solutions, Inc.Transformed Alerus into a national competitor, increasing scale and growth potential2016: Acquired Alliance Benefit Group North Central States, Inc.Expanded service offerings with complementary health and welfare services and valuable HSA deposits2020: Acquired Retirement Planning Services, Inc. Expanded into the Colorado marketRetirement and Benefit Services Acquisition Highlights4 Pre-201740%2017-202126%2022-202634%
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$0.57 $0.60 $0.63 $0.70 $0.75 $0.79 $0.83 $0.22 2019 2020 2021 2022 2023 2024 2025 2Q 2026 18.89%15.09%11.95%7.14%19.50%19.33%14.52%17.00%2021 2022 2023 2024 2025 2Q 2026ALRSKRX Median (5-Yr Avg)KRX Top Quartile (5-Yr Avg)1.66%1.14%0.82%0.39%1.35%1.60%1.12%1.31%2021 2022 2023 2024 2025 2Q 2026ALRSKRX Median (5-Yr Avg)KRX Top Quartile (5-Yr Avg)COMPANY PERFORMANCE Tangible Book Value Per Common Share(3)Return on Average AssetsReturn on Average Tangible Common Equity(3) 1. Excludes net losses on investment securities (after-tax) of $19.5 million in 2023 and of $54.0 million in 2025. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.” 2. Source S&P Capital IQ.3. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.” $ per Share5 (2)(2)(2)(2)Dividends Declared Per Common Share$ per ShareIPO(1)(1)(1)(1)Alerus has a decades-long history of consistently paying quarterly dividends.$17.87 $14.37 $15.46 $14.44 $17.55 $18.73 2021 2022 2023 2024 2025 2Q 2026
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STRATEGIC INITIATIVESOur Purpose is to Help Our Clients Achieve Theirs. 6 Organic GrowthNew client acquisition, retention, and deepeningexisting relationshipsDiversified business model brings value to clients through advice and specialty solutionsLeveraging growth synergies unavailable to traditional banking organizationsStrategicAcquisitionsProven acquiror of choice: complementary business models, culture, and growth opportunities Targeting retirement and benefitservice providers, wealth management firms, and banks Employer of ChoiceRecruiting and retaining top talentwith deep industry expertiseFostering a purpose-driven culture that attracts high performersAccelerating growth in existing and new mid-market C&I banking markets and specialty niches with talent and team lift-outsProductivity and EfficiencySecure, reliable technology meeting evolving client expectationsIntegrating our full offerings through fast-followertechnology strategyStreamlining operations and automating workflows to drive scalable growth Organic GrowthStrategic AcquisitionsEmployer of ChoiceProductivity and EfficiencyOne AlerusOur Purpose Powers Our Culture.Our Core Values Put It into Action.Passion for Excellence: Act with accountability and sense of urgency to best serve clients and achieve exceptional resultsSuccess is Never Final: Embrace opportunities to adapt and grow with our industry and our clientsDo the Right Thing: Lead with integrity and provide valued adviceand guidanceOne Alerus: Work together to provide purpose-driven products and services for our clients
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OFFICERS AND DIRECTORS Dan Coughlin Since 2016Chairman, Alerus Financial Corp.Former MD & Co-Head – Fin’l Services Inv. Banking, Raymond James; Former Chairman & CEO, Howe Barnes Hoefer & ArnettJanet EstepSince 2021Former President and CEO, Nacha;Former EVP, US Bank Transaction Division;Former VP, Pace Analytical ServicesRandy NewmanSince 1988Former President and CEO, AlerusGalen VetterSince 2013Former Global CFO, Franklin Templeton Investments; Former Partner-in-Charge, Upper Midwest Region, RSMExecutive ManagementBoard of DirectorsKatie O’Neill LorensonDirector, President andChief Executive Officer9 years with AlerusAl VillalonExecutive Vice President andChief Financial Officer4 years with AlerusJim CollinsExecutive Vice President andChief Banking and Revenue Officer4 years with AlerusKarin TaylorExecutive Vice President andChief Operating Officer8 years with AlerusMissy KeneyExecutive Vice President andChief Engagement Officer21 years with Alerus Forrest WilsonExecutive Vice President andChief Retirement Services Officer2 years with Alerus Nikki SorumSince 2023Former Head of Sales and Distribution, Thrivent;Former SVP, Private Client Group, RBC Wealth Management Former Partner, McKinsey & CompanyFormer Partner, McKinsey & CompanyJohn UribeSince 2023Chief Financial OfficerBlue Cross and Blue Shield of Minnesota Jeffrey BoltonSince 2024Former Chief Administrative Officer and Chief Financial Officer, Mayo Clinic Mary ZimmerSince 2021Former 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. 7
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Second Quarter HighlightsOffice in Minnetonka, Minnesota
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2Q 2026 HIGHLIGHTSDiversified Second Quarter ReturnsAdjusted pre-provision net revenue(1)increased 7.1% compared to the first quarter of 2026.Net interest margin (on a tax-equivalent basis)(1)increased 20 bps compared to the first quarter of 2026.Adjusted noninterest Income as a percentage of adjusted revenue(1)was 40.4% in the second quarter of 2026.Strong Balance Sheet PositioningSynergistic deposits(2)made up 22.6% of total deposits at June 30, 2026 and increased 3.3% from June 30, 2025.Loan balances remained stable as new originations offset a reduction in non-performing loans.Robust Capital and Reserve LevelsTotal reserves to loans ratio of 1.20%, a decrease of 5 bps from March 31, 2026.Tangible common equity to tangible assets(1)improved to 9.05% from 8.85% at March 31, 2026.Value CreationRepurchased $6.8 million of the Company's outstanding common stock, reducing common shares outstanding by 250,000 shares at quarter-end.Increased quarterly dividends per share 4.8%, to $0.22, and returned $5.5 million to shareholders through dividends in the second quarter of 2026. Success is Never Final 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. Diluted EPS:$0.81$0.80 Adjusted(1) ROTCE(1):19.33%19.04% Adjusted(1)Loans:$4.0 billionNPLs to total loans-115 bps vs. 1Q 2026Deposits:$4.2 billionCost of total depositsStable vs. 1Q 2026CET1:10.8%Well above bankregulatory requirementsTBV Per Share(1):$18.73+$0.58 vs. 1Q 2026 ROAA:1.60%1.58% Adjusted(1)ACL to Total Loans:1.20%-5 bps vs. 1Q 20269
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$0.72 $0.66 $0.85 $0.89 $0.80 2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 202621.02%18.55%21.05%21.96%19.04%2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026 14.56%12.86%15.39%16.53%14.32%2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 20261.41%1.28%1.62%1.79%1.58%2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026KEY RETURN METRICS 1. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.” Adjusted Return on Average Assets(1)Adjusted Return on Average Equity(1)Adjusted Return on Average TCE(1)Adjusted Diluted EPS(1)1.60%1.79%(2.50)%1.27%1.53%Reported:14.56%16.44%(23.75)%12.80%15.82%Reported:19.33%21.85%(28.15)%18.48%22.65%Reported(1): $0.81$0.89$(1.27)$0.65$0.78Reported:10
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$29,732 $29,465 $31,899 $30,868 $32,292 40.9%40.6%41.4%40.7%40.4%2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026AdjustedNoninterestIncomeas aPercent ofAdjustedRevenue$24,314 $22,121 $25,292 $25,521 $27,343 1.84%1.66%1.91%1.98%2.10%2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026Adjusted PPNRas a % of Average Assets$48,450 $50,480 $51,781 $50,259 $52,661 62.4%65.2%63.6%63.2%62.8%2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026AdjustedNoninterestExpenseAdjustedEfficiencyRatio $43,032 $43,136 $45,174 $44,912 $47,712 3.51%3.50%3.69%3.77%3.97%2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026Net Interest IncomeNIMKEY INCOME STATEMENT ITEMS 1. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.”2. Tax-equivalent net interest margin. Adjusted Noninterest Income(1)& as a % of Adjusted Revenue(1)Adjusted Noninterest Expense(1) & Adjusted Efficiency Ratio(1)$32,945$30,847$(36,949)$29,430$31,763Reported Noninterest Income:$52,883$50,392$51,881$50,541$48,438Reported Noninterest Expense:62.5%63.4%557.5%65.3%60.7%Reported Efficiency Ratio(1): $ in thousands$ in thousands(1)(1) (1)(1)Net Interest Income & Net interest Margin(1)/(2)Adjusted PPNR(1)& as a % of Total Average Assets(1)$ in thousands$ in thousands(1)(1)11 (1)
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$806,671 $791,776 $770,424 $771,414 $777,323 2.69%2.64%2.45%3.84%3.86%6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026Total Investment SecuritiesQuarterly Average Investment Yield$918,850 $937,788 $978,196 $973,286 $949,094 21.2%21.3%23.3%22.4%22.6%6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026Synergistic Depositsas a % of Total Deposits$4,337,468 $4,412,653 $4,192,003 $4,347,882 $4,191,897 2.12%2.20%2.03%1.82% 1.82%6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026TotalDepositsQuarterlyAverageDepositCost $4,044,656 $4,102,076 $4,048,022 $4,034,744 $4,034,244 6.31% 6.31%6.35%5.94%6.24%6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026TotalLoansQuarterlyAverageLoanYieldKEY BALANCE SHEET ITEMSLoans & Quarterly Average YieldDeposits & Quarterly Average CostInvestment Securities & Quarterly Average YieldSynergistic Deposits(1)$ in thousands$ in thousands$ in thousands96.2%92.8%96.6%93.0%93.2%Loan to deposit ratio:$ in thousands121. Synergistic deposits are sourced from the Retirement and Benefit Services and Wealth Advisory Services segments.(1)
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Second Quarter DetailsOffice in Fargo, North Dakota
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2Q 2026 RESULTS 1. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.” Income Statement 14 ($ in thousands, except per share data)2Q 2025 1Q 2026 2Q 2026Income StatementNet Interest Income 43,032$ 44,912$ 47,712$ Provision for Credit Losses — (4,883) 495 Net Interest Income After Provision for Credit Losses 43,032 49,795 47,217 Noninterest Income 31,763 30,847 32,945 Noninterest Expense 48,438 50,392 52,883 Income Before Income Tax Expense 26,357 30,250 27,279 Income Tax Expense 6,104 7,279 6,414 Net Income20,253$ 22,971$ 20,865$ Adjusted Net Income(1)18,640 23,093 20,524 Pre-Provision Net Revenue(1)26,357$ 25,367$ 27,774$ Adjusted Pre-Provision Net Revenue(1)24,314 25,521 27,343 Per Common Share DataEarnings Per Common Share - Diluted 0.78$ 0.89$ 0.81$ Adjusted Earnings Per Common Share - Diluted(1)0.72 0.89 0.80 Diluted Average Common Shares Outstanding 25,714 25,679 25,395 Quarterly
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2Q 2026 RESULTS 1. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.”2. Data is approximate based on the data available at the time of release. Balance Sheet, Capital, Credit Quality & Other 15 ($ in thousands)2Q 2025 1Q 2026 2Q 2026Balance SheetTotal Assets5,323,822$ 5,287,971$ 5,288,718$ Total Loans4,044,656 4,034,744 4,034,244 Total Deposits4,337,468 4,347,882 4,191,897 Tangible Common Equity(1)409,059 457,662 468,087 Capital RatiosCommon Equity Tier 1 Captial Ratio (%)10.54 % 10.60 % 10.81 %Tang. Cmn. Equity/Tang. Assets (%)(1)7.87 %8.85 %9.05 %Loans/Deposits (%)93.25 %92.80 %96.24 %Credit Quality RatiosNPLs/Loans (%)1.27 %1.34 %0.19 %NPAs/Assets (%)0.98 % 1.02 % 0.32 %Criticized Loans/Loans (%)5.26 % 3.28 % 2.06 %Allowance/NPLs (%)115.15 % 93.73 % 641.31 %Allowance/Loans (%)1.47 %1.25 %1.20 %NCOs/Average Loans (%)(1)0.37 %0.71 %0.26 %Other DataRetirement and Benefit Services AUA/AUM(2)42,451,544$ 42,273,839$ 45,163,767$ Wealth Advisory Services AUA/AUM4,613,102 4,792,609 5,195,511 Mortgage Originations134,634 94,434 113,450 Quarterly
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$4,035 $247 $46 $4 $(1)$(3)$(62)$(232)$4,034 1Q26TotalOriginationsAdvancesPAARevolvingLOCs, (Net)NetCharge-offsAmortized Payments /OtherPayoffs2Q26Total0.2%1,686 0.2%1,758 0.1%501 32.7%263,833 32.1%247,555 31.2%242,631 67.1%541,152 67.7%522,101 68.7%534,191 $806,671 $771,414 $777,323 6/30/2025 3/31/2026 6/30/2026AFSHTMTrading Securities EARNING ASSETS Total loans decreased $0.5 million from March 31, 2026.The quarter-over-quarter decrease was driven by a $13.3 million decrease in consumer loans, partially offset by a $12.8 million increase in commercial loans.Total non-owner occupied and multifamily CRE loans to total Bank risk-based capital(3) was 239% as of June 30, 2026.The investment portfolio increased $5.9 million, or 0.8%, from March 31, 2026, as paydowns and maturities were replaced with the purchase of new investments.Quarterly Highlights2Q 2026 Loan Portfolio(1)ChangesInvestment PortfolioJune 30, 2026 Loan Portfolio(1) 3.86%3.84%2.69%Average Period Yield15.7%15.6%16.2%% of Earning Assets:$(4,979)$(4,237)$(59,847)AOCI:$ in thousands1. Additional loan portfolio breakdown available in the Appendix. 2. Purchase accounting accretion (“PAA”) from acquired loans.3. Bank total risk-based capital was $526 million as of June 30, 2026. $ in millions 16 (2)Commercial and industrial, 18.8%CRE - Owner occupied, 15.4%CRE -Construction, land and development, 2.0%CRE -Multifamily, 9.0%CRE - Non-owner occupied, 22.1%Agriculture, 2.7%Residential real estate, 28.9%Other consumer, 1.1%
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Synergistic22.6%Commercial 35.7%Consumer36.0%Public5.7%Noninterest-bearing, 18.1%Interest-bearingdemand, 28.9%Money marketand savings, 34.0%Time deposits, 13.8%HSA deposits, 5.2%DEPOSIT CHARACTERISTICS Total deposits decreased $156.0 million, or 3.6%, from March 31, 2026.The loan to deposits ratio was 96.2% as of June 30, 2026, an increase of 3.4% from March 31, 2026.The quarter-over-quarter decrease in total deposits was primarily driven by seasonal outflows of public depositor funds.Quarterly Highlights June 30, 2026 Deposit Portfolio (by Category) June 30, 2026 Deposit Portfolio (by Client Segment)Synergistic deposits(1)grew 3.3%from June 30, 20251. Synergistic deposits are sourced from the Retirement and Benefit Services and Wealth Advisory Services segments. 2Q 2026 Deposit Portfolio Changes$ in millions 17(1) $4,348 $5 $2 $(21)$(44)$(98)$4,192 1Q26TotalTimedepositsHSAdepositsInterest-bearingdemandMoney marketand savingsNoninterest-bearing2Q26Total
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$44,912$2,842$524$32$24$(622)$47,7121Q 2026Asset Rate& PAAAccrual DaysAsset Volume/MixLiability Volume/MixLiability Rate2Q 20263.51%3.77%3.97%2Q 2025 1Q 2026 2Q 2026Net Interest MarginNET INTEREST INCOME$ in thousands3.97%(0.05)%0.01%0.01%0.00%0.23%3.77%NIM:Quarterly HighlightsYields and Rates NII and NIM(1)Walk 1. Net Interest Margin (on a tax-equivalent basis). Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.”Yields and rates have been annualized.Net interest income for the second quarter of 2026 was $47.7 million, a $2.8 million, or 6.2%, increase from the first quarter of 2026.The increase was primarily due to a one-time $1.6 million interest income recovery on a nonaccrual loan resolution, higher purchase accounting accretion, and higher loan yields, partially offset by increased average rates paid on borrowings following a refinancing of subordinated debt in the first quarter and higher average short-term borrowing balances.Net interest margin (on a tax-equivalent basis)(1)increased 20 bps to 3.97%, from 3.77% for the first quarter of 2026.The increase was mainly attributable to a one-time $1.6 million interest income recovery on a nonaccrual loan resolution, higher purchase accounting accretion, and higher loan yields, partially offset by the impact of the first quarter subordinated debt refinancing and higher borrowing balances. Net interest margin (on a tax-equivalent basis)(1)was impacted by31 bps of purchase accounting accretion in the second quarter of 2026. (1)(1)2.69%3.84%3.86%6.31%5.94%6.24%5.71%5.59%5.85%2Q 2025 1Q 2026 2Q 2026Earning AssetsInvestmentSecurities YieldLoan YieldTotal Earning AssetYield2.12%1.82% 1.82%2.61%2.25%2.24%2.33%1.97%2.02%2Q 2025 1Q 2026 2Q 2026Cost of FundsCost ofTotal DepositsCost of InterestBearing DepositsTotal Costof Funds18
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53.9%$16,02456.4%$17,40653.7%$17,34724.8%$7,36323.4%$7,23723.9%$7,70521.3%$6,34520.2%$6,22522.4%$7,240$29,732$30,868$32,2922Q 2025 1Q 2026 2Q 2026AdjustedBankingFees &OtherWealthAdvisoryServicesRetirement& BenefitServices NONINTEREST INCOME Adjusted banking fees & other income(1)increased 14.1% from the second quarter of 2025, primarily driven by an increase in swap fee income and mutual fund investment gains related to the underlying assets of the deferred compensation plans, and partially offset by a decrease in mortgage banking revenue driven by lower mortgage originations.Retirement and Benefit Services revenue increased 8.3% compared to the second quarter of 2025. The increase was primarily driven by recurring annual income.Wealth Advisory Services revenue increased 4.6% from the second quarter of 2025 driven by asset-based fees tied to equity markets. $ in thousandsYear-Over-Year HighlightsQuarterly HighlightsAdjusted banking fees & other income(1)increased 16.3% from the first quarter of 2026, primarily driven by an increase in swap fee income and mutual fund investment gains related to the underlying assets of the deferred compensation plans, and partially offset by a decrease in mortgage banking revenue driven by lower gain on sale margins from product mix and increased competition.Retirement and Benefit Services revenue was stable compared to the first quarter of 2026 as a decrease in recurring annual income was mostly offset by an increase in transactional income.Wealth Advisory Services revenue increased 6.5% from the first quarter of 2026, driven by an increase in both asset-based fees tied to equity markets and transaction-based fees.Adjusted Noninterest Income(1):+4.6% Linked quarter+8.6% Year-over-year1. Excludes net losses on investment securities, net gains on sale of loans, and net gains/losses on sale/disposal of fixed assets. See “Non-GAAP Disclosure Reconciliation.”$32,945$30,847$31,763Reported: Adjusted Noninterest Income(1)(1)Adjusted Noninterest Income(1)Represents over 40%of Adjusted Revenue(1) 19
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$111 $86 $103 $24 $8 $10 $135 $94 $113 2Q 2025 1Q 2026 2Q 2026 Portfolio Sale $3,651 $3,535 $3,195 $680 $933 $1,106 $941 $796 $806 $1,073 $961 $2,133 $2,031 $(21) $653 $8,376 $6,204 $7,893 2Q 2025 1Q 2026 2Q 2026 One-time Items Other Debit Card Interchange Service Charges Mortgage BANKING SERVICES Banking services noninterest income increased $1.7 million, or 27.2%, from the first quarter of 2026. Other income for the second quarter of 2026 increased $1.2 million, or 122.0%, from the first quarter of 2026, primarily driven by higher swap fee income and mutual fund investment gains related to the underlying assets of the deferred compensation plans. Mortgage revenue for the second quarter of 2026 decreased $0.3 million, or 9.6%, from the first quarter of 2026. The decrease was primarily driven by lower gain on sale margins from product mix and increased competition. Quarterly Highlights Divisional(1) Income Statement Noninterest Income(2)/(3) Breakdown Mortgage Origination Highlights $ in millions $ in thousands 86.3%65.3%91.4%Purchase: 13.7%34.7%8.6%Refinance: 1. Includes corporate administration income. 2. Banking noninterest income consists of service charges on deposit accounts, mortgage income, interchange income and other noninterest income. 3. Excludes non-personnel HMNF acquisition-related expenses. 4. One-time items include net gains/(losses) on the sale/disposal of premises and equipment of $653 in 2Q 2026 of $(21) in 1Q 2026 and of $(84) in 2Q 2025, and net gains on sale of loans of $2.1 million in 2Q 2025. (4) 20 ($ in thousands) 2Q 2025 1Q 2026 2Q 2026 Net interest income 43,032$ 44,912$ 47,712$ Provision for credit losses - (4,883) 495 Noninterest income (2) 8,376 6,204 7,893 Total revenue 51,408 55,999 55,110 Noninterest expense (3) 27,448 27,381 28,257 Net income before taxes: 23,960$ 28,618$ 26,853$ Quarterly
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$195,617$233,082$280,891$296,046$276,127$166,171$176,729$190,270$203,404$219,466$167,796$188,349$211,988$226,168$213,447$529,584$598,160$683,149$725,618$709,0402022 2023 2024 2025 2Q 2026Money MarketHSAOther $32,123$36,682$40,729$44,925$45,164384,800 397,000 411,600 406,700 329,400 133,000 134,700 144,700 145,900 132,300 2022 2023 2024 2025 2Q 2026AUA/AUMRetirementParticipantAccountsH&W BenefitParticipantAccountsRETIREMENT AND BENEFIT SERVICES Retirement and Benefit Services revenue was stable compared to the first quarter of 2026 as a decrease in recurring annual income was mostly offset by an increase in transactional income.AUA / AUM increased 6.8% from March 31, 2026, primarily driven by market gains in the second quarter of 2026.63% of Retirement and Benefit Services revenue is tied to plans, participants, and activity. 37% of revenue is market sensitive.54% of Retirement and Benefit Services synergistic deposits(4)are indexed.HSA synergistic deposits(4)increased 0.7% from March 31, 2026, and had an average cost of funds of 10 bps for the second quarter of 2026.Quarterly HighlightsDivisional(1)Income StatementAUA / AUM(2)and Participant Accounts(2)Synergistic Deposits(4)$ in millions$ in thousands1. Excludes funds transfer pricing credit on synergistic deposits.2. Data is approximate based on the data available at the time of release and rounded to the nearest hundred.3. Refers to health and welfare benefit participant accounts.4. Synergistic deposits include deposits sourced from the Retirement and Benefit Services segment.21 5,6008,8008,6008,3008,100Number ofRetirement Plans(2):(3)($ in thousands)2Q 2025 1Q 2026 2Q 2026Recurring annual income 13,990$ 15,560$ 15,135$ Transactional income 2,034 1,846 2,212 Total noninterest income 16,024 17,406 17,347 Noninterest expense 13,166 14,613 15,077 Net income before taxes: 2,858$ 2,793$ 2,270$ Quarterly
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$161,973$253,384$290,411$252,578$240,0542022 2023 2024 2025 2Q 2026 $3,583$4,019$4,579$4,851$5,1962022 2023 2024 2025 2Q 2026WEALTH ADVISORY SERVICES Wealth Advisory Services revenue increased 6.5% from the first quarter of 2026, driven by an increase in both asset-based fees tied to equity markets and transaction-based fees.AUA / AUM increased 8.4% from March 31, 2026, primarily driven by market gains in the second quarter of 2026.Wealth Advisory Services synergistic deposits(2)increased 4.0% in the second quarter of 2026 compared to March 31, 2026.98% of Wealth Advisory Services synergistic deposits(2)are indexed.Quarterly HighlightsDivisional(1)Income StatementAUA / AUMSynergistic Deposits(2)$ in millions$ in thousands1. Excludes funds transfer pricing credit on synergistic deposits.2. Synergistic deposits include deposits sourced from the Wealth Advisory Services segment.22 ($ in thousands)2Q 2025 1Q 2026 2Q 2026Asset management 6,314$ 6,454$ 6,831$ Brokerage 417 394 410 Insurance and other 632 389 464 Total noninterest income 7,363 7,237 7,705 Noninterest expense 5,132 5,733 6,374 Net income before taxes: 2,231$ 1,504$ 1,331$ Quarterly
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$30,999$30,560$32,694$2,559$3,427$3,493$5,868$5,839$5,440$2,328$3,834$3,775$6,696$6,599$7,259$48,450$50,259$52,6612Q 2025 1Q 2026 2Q 2026 NONINTEREST EXPENSE Compensation and benefits expenses, increased from the second quarter of 2025 primarily due to annual merit increases, as well as increases in deferred compensation plan liabilities driven by mutual fund investment gains related to the underlying assets of the plans.Other expense increased from the second quarter of 2025 due to an increase in other real estate owned balances and related holding costs, as well as increased corporate insurance costs.Professional fees and assessments increased from the second quarter of 2025 primarily due to the reclassification of consulting services and other third-party vendor expenses from business services, software, and technology expense to professional fees and assessments, as well as an increase in legal fees.Year-Over-Year HighlightsQuarterly HighlightsCompensation and benefits expenses, increased from the first quarter of 2026 primarily due to annual merit increases, talent additions to the Arizona commercial banking team, and increases in deferred compensation plan liabilities driven by mutual fund investment gains related to the underlying assets of the plans.Other expense increased from the first quarter of 2026, due to an increase in other real estate owned balances and related holding costs, as well as increased corporate insurance costs.Business services, software and technology expense decreased from the first quarter of 2026, primarily due to a decrease in core processing expenses, as well as a decrease in IT hardware expenses.$ in thousandsCompensation and BenefitsProfessional Feesand AssessmentsOther(2)Occupancy andEquipmentBusiness Services,Software and TechnologyAdjusted Noninterest Expense(1):+4.8% Linked quarter+8.7% Year-over-year$52,883$50,392$48,438Reported: Adjusted Noninterest Expense(1) 1. Excludes HMNF acquisition-related expenses and severance and signing bonus expenses. See “Total adjusted noninterest expense items” in the “Non-GAAP Disclosure Reconciliation.”2. Consists of intangible amortization, marketing and business development, supplies and postage, travel, mortgage and lending, and other noninterest expense.23
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1.27%1.30%1.50%1.53%1.20%821%410%95%90%641%2022 2023 2024 2025 2Q 2026Reserves/LoansReserves/NPLsASSET QUALITY AND RESERVE LEVELS Net charge-offs of $2.6 million in the second quarter of 2026 resulted in net charge-offs to average loans(1)of 26 bps. The quarter-over-quarter decrease in net charge-offs was primarily due to charge-offs of $6.4 million in the first quarter of 2026 related to one non-accruing long-term commercial and industrial client relationship. Of the $2.6 million of net-charge offs recognized in the second quarter of 2026, $1.4 million was attributable to this same relationship.Reserves to total loans ratio was 1.20% on June 30, 2026, a decrease of 5 bps from March 31, 2026.Total nonperforming assets were $17.1 million as of June 30, 2026, a decrease of $36.9 million from March 31, 2026. Recorded a provision for credit losses of $0.5 million for the second quarter of 2026.Highlights0.26%0.05%0.13%(0.04)%0.02%NCO/Avg Loans(1)NPAs / Assets %Reserves / Loans & Reserves / NPLs (%)Criticized Loans$ in thousands$ in thousands241. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.” 0.10%0.22%1.20%1.33%0.32%2022 2023 2024 2025 2Q 2026$35,285$61,563$198,281$149,162$83,0901.44%2.23%4.97%3.68%2.06%2022 2023 2024 2025 2Q 2026Criticized LoansCriticized Loans to Total Loans Nonaccrual loans$3,794 $8,596 $54,433 $69,065 $7,105Accruing loans90+ days past due- 139 8,453 - 436 Total NPLs $3,794 $8,735 $62,886 $69,065 $7,541
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$14.37 $15.46 $14.44 $17.55 $18.73 $17.85 $18.71 $19.55 $22.24 $23.34 2022 2023 2024 2025 2Q 2026TBV per ShareBV per Share11.3%10.6%8.7%8.9%9.5%13.7%12.1%10.1%10.5%11.0%2022 2023 2024 2025 2Q 2026Tier 1 LeverageTier 1 Capital 16.5%14.8%12.5%12.9%13.3%2022 2023 2024 2025 2Q 202613.4%11.8%9.9%10.3%10.8%2022 2023 2024 2025 2Q 2026CAPITAL AND SOURCES OF LIQUIDITY LiquidityCapital Ratios Tier 1 Capital & Tier 1 LeverageTotal Risk Based Capital8%Regulatory Capital Minimum to be considered adequately capitalized.6%4%Tier 1CapitalLeverage1. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.”2. Excludes unencumbered HTM securities with a market value of $167.0 million.3. The Company had $8.4 million of brokered deposits as of June 30, 2026. Tangible Book Value(1)& Book ValueCET1$ per share4.5% 25 $ in thousandsTotal assets 5,288,718$ Cash and cash equivalents 109,012 Unencumbered securities AFS 255,865 Overcollateralized securities pledging positions - AFS 26,652 Total On Balance Sheet Liquidity(2)391,529 FHLB borrowing capacity 958,420 FRB Discount Window Capacity 54,655 Fed funds lines 125,000 Brokered CD capacity(3)1,049,342 Total Off Balance Sheet Liquidity 2,187,417 Total Liquidity as of June 30, 2026 2,578,946$ Total Liquidity (Ex-brokered CD Capacity) 1,529,604$
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LoansEnd of period$4.0bUp mid-single digitsDepositsEnd of periodNIM(2)/(3)Adjusted NoninterestIncome(3)$4.2bUp low-single digits3.53%3.70-3.80%Up mid-single digits $119m $291mAdjusted Revenue(3)Up mid-single digitsAdjustedNoninterest Expense(3)$200mUp low-to-mid single digits 12/31/202512/31/20252025202520252025Adjusted ROA(3)1.35%>1.25%2025 OUTLOOKComparisonFY 2026 Guidance(1) 1. The guidance, as shown, uses the assumption that the Federal funds rate remains static as of 6/30/2026 through 12/31/2026.2. Tax-equivalent net interest margin.3. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.” Full Year 26
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KEY TAKEAWAYSWe Continued to Deliver Top-Tier Returns in the Second QuarterEARNINGSBALANCESHEETASSET & CAPITALSTRENGTHVALUE CREATION Our robust business model continues to deliver diversified earnings.Our focus on relationship-driven growth continues to drive a strong core banking franchise.Credit discipline and our commitment to proactive risk management provides us with a healthy foundation to grow. We remain committed to continued execution to deliver top-tier performance.27
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AppendixOffice in Grand Forks, North Dakota
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DIVISIONAL INCOME STATEMENT 1. Banking noninterest income (loss) consists of service charges on deposit accounts, mortgage income, interchange income and other noninterest income.29 ($ dollars in thousands)Banking Services Retirement and Benefit Services WealthAdvisory Services CorporateAdministration ConsolidatedNet interest income 48,753$ -$ -$ (1,041)$ 47,712$ Provision for loan losses 495 - - - 495 Noninterest income (loss)(1)7,039 17,347 7,705 854 32,945 Noninterest expense 28,257 15,077 6,374 3,175 52,883 Net income (loss) before taxes 27,040$ 2,270$ 1,331$ (3,362)$ 27,279$ Banking Services Retirement and Benefit Services WealthAdvisory Services CorporateAdministration ConsolidatedNet interest income 45,545$ -$ -$ (633)$ 44,912$ Provision for loan losses (4,883) - - - (4,883) Noninterest income (loss)(1)6,348 17,406 7,237 (144) 30,847 Noninterest expense 27,381 14,613 5,733 2,665 50,392 Net income (loss) before taxes 29,395$ 2,793$ 1,504$ (3,442)$ 30,250$ Banking Services Retirement and Benefit Services WealthAdvisory Services CorporateAdministration ConsolidatedNet interest income 43,684$ -$ -$ (652)$ 43,032$ Provision for loan losses - - - - - Noninterest income (loss)(1)8,438 16,024 7,363 (62) 31,763 Noninterest expense 27,448 13,166 5,132 2,692 48,438 Net income (loss) before taxes 24,674$ 2,858$ 2,231$ (3,406)$ 26,357$ Quarter ended June 30, 2026 Quarter ended June 30, 2025Quarter ended March 31, 2026
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LOAN PORTFOLIO BREAKDOWN 30 ($ in thousands)BalancePercent of PortfolioBalancePercent of PortfolioBalancePercent of PortfolioCommercial and business lending: General business 290,008$ 7.2% 356,240$ 8.8% 376,716$ 9.3%Services 237,966 5.9% 215,487 5.3% 200,109 5.0%Retail trade 101,374 2.5% 66,439 1.6% 72,351 1.8%Manufacturing 107,485 2.7% 109,281 2.7% 110,783 2.7%CRE - Owner Occupied 427,260 10.6% 444,276 11.0% 622,241 15.4%Total commercial and busines lending 1,164,093 28.9% 1,191,723 29.4% 1,382,200 34.2%Investor commercial real estate: Construction, land and development 246,238 6.1% 146,897 3.6% 79,850 2.0%Multifamily 383,505 9.5% 392,097 9.7% 361,875 9.0%Non-owner occupiedOffice 142,095 3.5% 139,175 3.4% 127,943 3.2%Industrial 193,041 4.8% 199,122 4.9% 199,353 4.9%Retail 116,735 2.9% 127,003 3.1% 108,160 2.7%Hotel 110,022 2.7% 109,363 2.7% 83,440 2.1%Medical Office 174,891 4.3% 208,375 5.2% 193,737 4.8%Medical or nursing facility 85,918 2.1% 137,800 3.4% 105,371 2.6%Other commercial real estate 53,160 1.3% 55,501 1.5% 75,363 1.9%Total non-owner occupied 875,862 21.6% 976,339 24.2% 893,367 22.2%Total investor commercial real estate 1,505,605 37.2% 1,515,333 37.5% 1,335,092 33.2%Agricultural: Land 64,799 1.6% 54,028 1.3% 54,202 1.3%Production 62,500 1.5% 50,983 1.3% 53,367 1.3%Total agricultural 127,299 3.1% 105,011 2.6% 107,569 2.6%Consumer Residential real estate first lien 874,737 21.6% 851,551 21.1% 828,936 20.5%Residential real estate construction 33,703 0.8% 32,872 0.9% 31,202 0.8%Residential real estate HELOC 260,883 6.4% 262,131 6.5% 273,124 6.8%Residential real estate junior lien 36,844 0.9% 35,783 0.9% 31,941 0.8%Other Consumer 44,858 1.1% 40,340 1.1% 44,180 1.1%Total consumer 1,251,025 30.8% 1,222,677 30.5% 1,209,383 30.0%Total loans 4,048,022$ 100.0% 4,034,744$ 100.0% 4,034,244$ 100.0% June 30, 2026March 31, 2026December 31, 2025
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0%10%20%30%40%50%60%$0$100,000$200,000$300,000$400,000$500,000$600,000$700,0002022 2023 2024 2025 2Q20253Q20254Q20251Q20262Q2026Home Equity Lines of CreditFundedUnfundedFunded % 0%10%20%30%40%50%60%$0$100,000$200,000$300,000$400,000$500,000$600,0002022 2023 2024 2025 2Q20253Q20254Q20251Q20262Q2026C&IFundedUnfundedFunded %LINE OF CREDIT UTILIZATION Commercial and industrial loans includes revolving C&I loans and other loans. It excludes non-revolving C&I loans, and ag production. $ in thousands$ in thousands31
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ALLOWANCE FOR CREDIT LOSSES ON LOANS 32 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 $67 thousand related to off-balance sheet credit exposure and $(3) thousand related to held-to-maturity investment securities. Provision for(Recovery of)Credit Losses(1)($ in thousands)CommercialCommercial and business lendingCommercial and industrial$11,628 $162 $(2,188) $875 $10,477 CRE - Owner occupied 3,604 2,272 — 11 5,887 Total commercial and business lending 15,232 2,434 (2,188) 886 16,364 Investor commercial real estateConstruction, land and development 6,741 (3,763) — — 2,978 Multifamily 3,699 720 (500) — 3,919 Non-owner occupied 10,929 (349) — — 10,580 Total investor commercial real estate 21,369 (3,392) (500) — 17,477 AgriculturalLand 852 31 — — 883 Production 518 100 (50) — 568 Total Agriculture 1,370 131 (50) — 1,451 Total commercial 37,971 (827) (2,738) 886 35,292 ConsumerResidential real estateFirst lien 9,122 244 — — 9,366 Construction 297 69 — — 366 HELOC 2,130 202 — — 2,332 Junior lien 407 708 (719) 1 397 Total residential real estate 11,956 1,223 (719) 1 12,461 Other consumer 578 35 (33) 28 608 Total Consumer 12,534 1,258 (752) 29 13,069 Total$50,505 $431 $(3,490) $915 $48,361 BalanceThree months ended June 30, 2026Charge-offs RecoveriesBalanceBeginningLoanLoanEnding
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ALLOWANCE FOR CREDIT LOSSES ON LOANSAllocation by Loan Portfolio Segment 33 ($ in thousands)Commercial and industrial$16,216 2.20% $10,477 1.38% CRE - Owner occupied 3,097 0.72% 5,887 0.95% CRE - Construction, land and development 13,210 5.36% 2,978 3.73% CRE - Multifamily 4,380 1.14% 3,919 1.08% CRE - Non-owner occupied 11,006 1.26% 10,580 1.18% Agricultural - Land 959 1.48% 883 1.63% Agricultural - Production 623 1.00% 568 1.06% Residential real estate first lien 9,358 1.07% 9,366 1.13% Residential real estate construction 274 0.81% 366 1.17% Residential real estate HELOC 1,787 0.68% 2,332 0.85% Residential real estate junior lien 395 1.07% 397 1.24% Other Consumer 610 1.36% 608 1.38% Total loans$61,915 1.53% $48,361 1.20% Allowance to segment loansJune 30, 2026Allocatedsegment allowanceAllowance to segment loansPercentage ofDecember 31, 2025Percentage ofAllocatedsegment allowance
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FINANCIAL HIGHLIGHTS 1. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.”2. Data is approximate based on the data available at the time of release.34 ($ in thousands, except where otherwise noted)2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026Total Assets 5,323,822$ 5,330,572$ 5,230,084$ 5,287,971$ 5,288,718$ Total Loans 4,044,656 4,102,076 4,048,022 4,034,744 4,034,244 Total Deposits 4,337,468 4,412,653 4,192,003 4,347,882 4,191,897 Tangible Common Equity(1)409,059 429,300 445,929 457,662 468,087 Retirement and Benefit Services AUA/AUM(2)42,451,544$ 44,005,277$ 44,925,311$ 42,273,839$ 45,163,767$ Wealth Advisory Services AUA/AUM 4,613,102 4,812,250 4,850,600 4,792,609 5,195,511 Mortgage Originations 134,634 142,768 136,780 94,434 113,450 Net Income (Loss) 20,253$ 16,924$ (33,050)$ 22,971$ 20,865$ ROAA (%) 1.53 1.27 (2.50) 1.79 1.60 ROATCE(%)(1)22.65 18.48 (28.15) 21.85 19.33 Net Interest Margin (FTE) (%)(1)3.51 3.50 3.69 3.77 3.97 Efficiency Ratio (FTE) (%)(1)60.66 65.34 557.48 63.39 62.53 Non-Int. Income (Loss)/Op. Rev. (%) 42.47 40.56 (449.23) 40.72 40.85 Earnings (loss) per common share - diluted 0.78$ 0.65$ (1.27)$ 0.89$ 0.81$ Common Equity Tier 1 Captial Ratio (%) 10.54 10.84 10.28 10.60 10.81 Tang. Cmn. Equity/Tang. Assets (%)(1)7.87 8.24 8.72 8.85 9.05 Loans/Deposits (%) 93.25 92.96 96.57 92.80 96.24 NPLs/Loans (%) 1.27 1.45 1.71 1.34 0.19 NPAs/Assets (%) 0.98 1.13 1.33 1.02 0.32 Criticized Loans/Loans (%) 5.26 4.66 3.68 3.28 2.06 Allowance/NPLs (%) 115.15 104.16 89.65 93.73 641.31 Allowance/Loans (%) 1.47 1.51 1.53 1.25 1.20 NCOs/Average Loans (%)(1)0.37 (0.17) (0.03) 0.71 0.26 Quarterly
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21 - '25($ in thousands, except where otherwise noted)2021 2022 2023 2024 2025 CAGRTotal Assets 3,392,691$ 3,779,637$ 3,907,713$ 5,261,673$ 5,230,084$ 11.4%Total Loans 1,758,020 2,443,994 2,759,583 3,992,534 4,048,022 23.2%Total Deposits 2,920,551 2,915,484 3,095,611 4,378,410 4,192,003 9.5%Tangible Common Equity(1)307,663 287,330 305,186 365,894 445,929 9.7%Retirement and Benefit Services AUA/AUM(2)36,732,938$ 32,122,520$ 36,682,425$ 40,728,699$ 44,925,311$ 5.2%Wealth Advisory Services AUA/AUM 4,039,931 3,582,648 4,018,846 4,579,189 4,850,600 4.7%Mortgage Originations 1,836,064 812,314 364,114 334,318 484,775 Net Income (Loss) 52,681$ 40,005$ 11,696$ 17,780$ 17,439$ ROAA (%) 1.66 1.14 0.31 0.39 0.33 ROATCE(%)(1)18.89 15.09 5.37 7.14 6.29 Net Interest Margin (FTE) (%)(1)2.90 3.04 2.46 2.56 3.53 Efficiency Ratio (FTE) (%)(1)70.02 72.86 85.85 77.92 84.10 Non-Int. Income (Loss)/Op. Rev. (%) 62.86 52.72 47.74 51.78 23.12 Earnings (loss) per common share - diluted 2.97$ 2.10$ 0.58$ 0.83$ 0.68$ Common Equity Tier 1 Captial Ratio (%) 14.65 13.39 11.82 9.91 10.28 Tang. Cmn. Equity/Tang. Assets (%)(1)9.21 7.74 7.94 7.13 8.72 Loans/Deposits (%) 60.19 83.83 89.15 91.19 96.57 NPLs/Loans (%) 0.12 0.16 0.32 1.58 1.71 NPAs/Assets (%) 0.09 0.10 0.22 1.20 1.33 Criticized Loans/Loans (%) 1.21 1.44 2.23 4.97 3.68 Allowance/NPLs (%) 1,437.05 820.93 410.34 95.30 89.65 Allowance/Loans (%) 1.80 1.27 1.30 1.50 1.53 NCOs/Average Loans (%)(1)(0.04) 0.02 (0.04) 0.13 0.05 AnnualFINANCIAL HIGHLIGHTS 1. Represents a non-GAAP financial measure. See “Non-GAAP Disclosure Reconciliation.”2. Data is approximate based on the data available at the time of release.35
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NON-GAAP DISCLOSURE RECONCILIATION 361. Adjusted items are shown after-tax using a 21% tax rate. ($ in thousands, except where otherwise noted)2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026Tangible common equity to tangible assetsTotal common stockholders' equity 533,155$ 550,687$ 564,934$ 574,693$ 583,143$ Less: Goodwill 85,634 85,634 85,634 85,634 85,634 Less: Other intangible assets 38,462 35,753 33,371 31,397 29,422 Tangible common equity (a) 409,059 429,300 445,929 457,662 468,087 Total assets 5,323,822 5,330,572 5,230,084 5,287,971 5,288,718 Less: Goodwill 85,634 85,634 85,634 85,634 85,634 Less: Other intangible assets 38,462 35,753 33,371 31,397 29,422 Tangible assets (b) 5,199,726 5,209,185 5,111,079 5,170,940 5,173,662 Tangible common equity to tangible assets (a)/(b) 7.87% 8.24% 8.72% 8.85% 9.05% Tangible book value per common shareTangible common equity (a) 409,059 429,300 445,929 457,662 468,087 Common shares issued and outstanding (c) 25,389 25,397 25,406 25,214 24,986 Tangible book value per common share (a)/(c) 16.11$ 16.90$ 17.55$ 18.15$ 18.73$ Return on average tangible common equityNet income (loss) 20,253$ 16,924$ (33,050)$ 22,971$ 20,865$ Add: Intangible amortization expense (net of tax)(1)2,141 2,141 1,882 1,559 1,559 Net income (loss), excluding intangible amortization (d) 22,394 19,065 (31,168) 24,530 22,424 Average total equity 513,606 524,459 552,106 566,563 574,862 Less: Average goodwill 85,634 85,634 85,634 85,634 85,634 Less: Average other intangible assets (net of tax)(1)31,436 29,540 27,270 25,664 24,003 Average tangible common equity (e) 396,536 409,285 439,202 455,265 465,225 Return on average tangible common equity (d)/(e) 22.65% 18.48% (28.15)% 21.85% 19.33%Efficiency ratioNoninterest expense 48,438$ 50,541$ 51,881$ 50,392$ 52,883$ Less: Intangible amortization expense 2,710 2,710 2,382 1,974 1,974 Noninterest expense excluding intangible amortization (f) 45,728 47,831 49,499 48,418 50,909 Net interest income 43,032 43,136 45,174 44,912 47,712 Noninterest income (loss) 31,763 29,430 (36,949) 30,847 32,945 Tax-equivalent adjustment for loans and securities 592 638 654 619 755 Total tax-equivalent revenue (g) 75,387 73,204 8,879 76,378 81,412 Efficiency ratio (f)/(g) 60.66% 65.34% 557.48% 63.39% 62.53% Pre-provision net revenueNet interest income43,032$ 43,136$ 45,174$ 44,912$ 47,712$ Add: Noninterest income (loss)31,763 29,430 (36,949) 30,847 32,945 Less: Noninterest expense48,438 50,541 51,881 50,392 52,883 Pre-provision net revenue (loss) 26,357 22,025 (43,656) 25,367 27,774 Quarterly
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NON-GAAP DISCLOSURE RECONCILIATION 1. Banking fees and other revenue consists of service charges on deposit accounts, mortgage income, interchange income and other noninterest income.2. Includes HMNF acquisition-related personnel expenses.37 Twelve Months Ended($ in thousands, except for per share data and where otherwise noted)2Q 20253Q 20254Q 20251Q 20262Q 2026June 30, 2026Adjusted noninterest incomeNoninterest income (loss) 31,763$ 29,430$ (36,949)$ 30,847$ 32,945$ 56,273$ Less: Adjusted noninterest income (loss) itemsNet gains (losses) on investment securities — — (68,403) — — (68,403) Net gains (losses) on sale of loans 2,115 (35) — — — (35) Net gains (losses) on sale/disposal of premises and equipment (84) — (445) (21) 653 187 Total adjusted noninterest income (loss) items (a) 2,031 (35) (68,848) (21) 653 (68,251) Adjusted noninterest income (b) 29,732 29,465 31,899 30,868 32,292 124,524 Adjusted Noninterest income as a percentage of adjusted revenueAdjusted noninterest income (b)29,732$ 29,465$ 31,899$ 30,868$ 32,292$ 124,524$ Net interest income (c) 43,032 43,136 45,174 44,912 47,712 180,934 Adjusted revenue (b) + (c) = (d) 72,764 72,601 77,073 75,780 80,004 305,458 Adjusted noninterest income as a percentage of adjusted revenue (b)/(d) 40.86% 40.58% 41.39% 40.73% 40.36% 40.77%Adjusted banking fees and other income(1)Banking fees and other income (loss)(1)8,376$ 6,374$ (61,647)$ 6,204$ 7,893$ (41,176)$ Less: Net gains (losses) on investment securities — — (68,403) — — (68,403) Less: Net gains (losses) on sale of loans 2,115 (35) — — — (35) Less: Net gains (losses) on sale/disposal of premises and equipment (84) — (445) (21) 653 187 Adjusted banking fees and other income(1)(e) 6,345 6,409 7,201 6,225 7,240 27,075 Adjusted revenue (d) 72,764$ 72,601$ 77,073$ 75,780$ 80,004$ 305,458 Adjusted banking fees and other income as a percentage of adjusted revenue (e)/(d) 8.72% 8.83% 9.34% 8.21% 9.05% 8.86%Adjusted noninterest expenseNoninterest expense48,438$ 50,541$ 51,881$ 50,392$ 52,883$ Less: Adjusted noninterest expense itemsHMNF merger- and acquisition-related expenses 11 (43) (112) (34) 6 Severance and signing bonus expense(2)(23) 104 212 167 216 Total adjusted noninterest expense items (f) (12) 61 100 133 222 Adjusted noninterest expense (g) 48,450 50,480 51,781 50,259 52,661 Adjusted pre-provision net revenueNet interest income43,032$ 43,136$ 45,174$ 44,912$ 47,712$ Add: Adjusted noninterest income (b)29,732 29,465 31,899 30,868 32,292 Less: Adjusted noninterest expense (g)48,450 50,480 51,781 50,259 52,661 Adjusted pre-provision net revenue (h) 24,314 22,121 25,292 25,521 27,343 Adjusted Efficiency ratioAdjusted noninterest expense (g) 48,450$ 50,480$ 51,781$ 50,259$ 52,661$ Less: Intangible amortization expense 2,710 2,710 2,382 1,974 1,974 Adjusted noninterest expense for efficiency ratio (i) 45,740 47,770 49,399 48,285 50,687 Tax-equivalent revenueNet interest income 43,032 43,136 45,174 44,912 47,712 Add: Adjusted noninterest income (b) 29,732 29,465 31,899 30,868 32,292 Add: Tax-equivalent adjustment for loans and securities 592 638 654 619 755 Total tax-equivalent revenue (j) 73,356 73,239 77,727 76,399 80,759 Adjusted efficiency ratio (i)/(j) 62.35% 65.22% 63.55% 63.20% 62.76% Quarterly
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NON-GAAP DISCLOSURE RECONCILIATION 1. Adjusted items are shown after-tax using a 21% tax rate.38 Lettered items are continued from the prior slide($ in thousands, except for per share data and where otherwise noted)2Q 20253Q 20254Q 20251Q 20262Q 2026Adjusted net incomeNet income (loss) 20,253$ 16,924$ (33,050)$ 22,971$ 20,865$ Less: Adjusted noninterest income (loss) items (net of tax)(1) (a)1,604 (28) (54,390) (17) 516 Add: Adjusted noninterest expense items (net of tax)(1) (f)(9) 48 79 105 175 Adjusted net income (k) 18,640 17,000 21,419 23,093 20,524 Adjusted return on average assetsAverage total assets (l) 5,302,728 5,273,306 5,252,046 5,218,515 5,226,319 Adjusted return on average total assets (k)/(l) 1.41% 1.28% 1.62% 1.79% 1.58% Adjusted return on average total equityAverage total equity (m) 513,606 524,459 552,106 566,563 574,862 Adjusted return on average total equity (k)/(m) 14.56% 12.86% 15.39% 16.53% 14.32% Adjusted pre-provision net revenue as a percentage of average total assetsAdjusted pre-provision net revenue (h) 24,314$ 22,121$ 25,292$ 25,521$ 27,343$ Average total assets (l) 5,302,728 5,273,306 5,252,046 5,218,515 5,226,319 Adjusted pre-provision net revenue as a percentage of average total assets (h)/(l) 1.84% 1.66% 1.91% 1.98% 2.10% Adjusted return on average tangible common equityAdjusted net income (k) 18,640$ 17,000$ 21,419$ 23,093$ 20,524$ Add: Intangible amortization expense (net of tax)(1)2,141 2,141 1,882 1,559 1,559 Adjusted net income, excluding intangible amortization (n) 20,781 19,141 23,301 24,652 22,083 Average total equity (m) 513,606 524,459 552,106 566,563 574,862 Less: Average goodwill 85,634 85,634 85,634 85,634 85,634 Less: Average other intangible assets (net of tax)(1)31,436 29,540 27,270 25,664 24,003 Average tangible common equity (o) 396,536 409,285 439,202 455,265 465,225 Adjusted return on average tangible common equity (n)/(o) 21.02% 18.55% 21.05% 21.96% 19.04% Adjusted earnings per common share - dilutedAdjusted net income (k) 18,640$ 17,000$ 21,419$ 23,093$ 20,524$ Less: Dividends and undistributed earnings allocated to participating securities 205 148 (462) 206 192 Adjusted net income available to common stockholders (p) 18,435 16,852 21,881 22,887 20,332 Weighted-average common shares outstanding for diluted earnings per share (q) 25,714 25,713 25,710 25,679 25,395 Adjusted earnings per common share - diluted (p)/(q) 0.72 0.66 0.85 0.89 0.80 Net charge-offs (recoveries) to average loansNet charge-offs (recoveries)(r) 3,767$ (1,715)$ (311)$ 7,027$ 2,575$ Average total loans (s) 4,079,084 4,036,936 4,049,082 4,029,719 4,032,142 Net charge-offs (recoveries) to average loans (r)/(s) 0.37% (0.17)% (0.03)% 0.71% 0.26%Net interest margin (on a tax-equivalent basis)Net interest income 43,032 43,136 45,174 44,912 47,712 Add: Tax equivalent adjustment for loans and securities 592 638 654 619 755 Net interest income (on a tax-equivalent basis)(1) (t) 43,624 43,774 45,828 45,531 48,467 Average interest-earning assets (u) 4,988,946 4,965,849 4,926,530 4,901,399 4,896,740 Net interest margin (on a tax-equivalent basis)(1) (t)/(u)3.51% 3.50% 3.69% 3.77% 3.97% Quarterly
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NON-GAAP DISCLOSURE RECONCILIATION 391. Adjusted items are shown after-tax using a 21% tax rate. ($ in thousands, except where otherwise noted)2021 2022 2023 2024 2025Tangible common equity to tangible assetsTotal common stockholders' equity 359,403$ 356,872$ 369,127$ 495,410$ 564,934$ Less: Goodwill 31,490 47,087 46,783 85,634 85,634 Less: Other intangible assets 20,250 22,455 17,158 43,882 33,371 Tangible common equity (a) 307,663 287,330 305,186 365,894 445,929 Total assets 3,392,691 3,779,637 3,907,713 5,261,673 5,230,084 Less: Goodwill 31,490 47,087 46,783 85,634 85,634 Less: Other intangible assets 20,250 22,455 17,158 43,882 33,371 Tangible assets (b) 3,340,951 3,710,095 3,843,772 5,132,157 5,111,079 Tangible common equity to tangible assets (a)/(b) 9.21% 7.74% 7.94% 7.13% 8.72% Tangible book value per common shareTangible common equity (a) 307,663 287,330 305,186 365,894 445,929 Common shares issued and outstanding (c) 17,213 19,992 19,734 25,345 25,406 Tangible book value per common share (a)/(c) 17.87$ 14.37$ 15.46$ 14.44$ 17.55$ Return on average tangible common equityNet income (loss) 52,681$ 40,005$ 11,696$ 17,780$ 17,439$ Add: Intangible amortization expense (net of tax)(1)3,460 3,756 4,184 5,353 8,304 Net income (loss), excluding intangible amortization (d) 56,141 43,761 15,880 23,133 25,743 Average total equity 346,059 346,355 358,268 397,738 525,323 Less: Average goodwill 30,385 39,415 46,959 56,237 85,634 Less: Average other intangible assets (net of tax)(1)18,548 17,018 15,624 17,534 30,470 Average tangible common equity (e) 297,126 289,922 295,685 323,967 409,219 Return on average tangible common equity (d)/(e) 18.89% 15.09% 5.37% 7.14% 6.29% Efficiency RatioNoninterest expense 168,909$ 158,770$ 150,157$ 180,675$ 201,227$ Less: Intangible amortization expense 4,380 4,754 5,296 6,776 10,511 Noninterest expense excluding intagible amortization (f) 164,529 154,016 144,861 173,899 190,716 Net interest income 87,099 99,729 87,839 107,045 172,499 Noninterest income (loss) 147,387 111,223 80,229 114,930 51,876 Tax equivalent adjustment for loans and securities 492 429 671 1,202 2,402 Total tax-equivalent revenue (g) 234,978 211,381 168,739 223,177 226,777 Efficiency ratio (f)/(g) 70.02% 72.86% 85.85% 77.92% 84.10% Annual
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NON-GAAP DISCLOSURE RECONCILIATION 1. Adjusted items are shown after-tax using a 21% tax rate.40 ($ in thousands, except for per share data and where otherwise noted)20212022202320242025Adjusted net income excluding net gains (losses) on investment securitiesNet income (loss) 52,681$ 40,005$ 11,696$ 17,780$ 17,439$ Less: Net gains (losses) on investment securities (net of tax)(1)- - (19,468) - (54,038) Adjusted net income excluding net gains (losses) on investment securities (a) 52,681 40,005 31,164 17,780 71,477 Adjusted return on average tangible common equity excluding net gains (losses) on investment securitiesAdjusted net income excluding net gains (losses) on investment securities (a) 52,681 40,005 31,164 17,780 71,477 Add: Intangible amortization expense (net of tax)(1)3,460 3,756 4,184 5,353 8,304 Adjusted net income excluding net gains (losses) on investment securities and intangible amortization (b)56,141 43,761 35,348 23,133 79,781 Average total equity 346,059$ 346,355$ 358,268$ 397,738$ 525,323$ Less: Average goodwill 30,385 39,415 46,959 56,237 85,634 Less: Average other intangible assets (net of tax)(1)18,548 17,018 15,624 17,534 30,470 Average tangible common equity (c) 297,126 289,922 295,685 323,967 409,219 Adjusted return on average tangible common equity excluding net gains (losses) on investment securities (b)/(c)18.89% 15.09% 11.95% 7.14% 19.50% Adjusted return on average assets excluding net gains (losses) on investment securitiesAverage total assets (d) 3,178,820 3,500,655 3,817,017 4,503,483 5,277,867 Adjusted return on average assets excluding net gains (losses) on investment securities (a)/(d)1.66% 1.14% 0.82% 0.39% 1.35% Net charge-offs (recoveries) to average loansNet charge-offs (recoveries)(e) (826)$ 426$ (1,065)$ 4,154$ 2,148$ Average total loans (f) 1,858,686 2,059,435 2,535,073 3,099,015 4,047,034 Net charge-offs (recoveries) to average loans (e)/(f) (0.04)% 0.02% (0.04)% 0.13% 0.05%Net interest margin (on a tax-equivalent basis)Net interest income 87,099 99,729 87,839 107,045 172,499 Add: Tax equivalent adjustment for loans and securities 492 429 671 1,202 2,402 Net interest income (on a tax-equivalent basis)(1) (g) 87,591 100,158 88,510 108,247 174,901 Average interest-earning assets (h) 3,018,172 3,298,644 3,592,476 4,221,873 4,957,720 Net interest margin (on a tax-equivalent basis)(1) (g)/(h)2.90% 3.04% 2.46% 2.56% 3.53% Annual
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NON-GAAP DISCLOSURE RECONCILIATION 1. Includes HMNF acquisition-related personnel expenses.2. Adjusted items are shown after-tax using a 21% tax rate.41 Annual($ in thousands, except for per share data and where otherwise noted)2025Adjusted noninterest incomeNoninterest income (loss)51,876 Less: Adjusted noninterest income (loss) itemsNet gains (losses) on investment securities(68,403) Net gains (losses) on sale of loans2,080 Net gains (losses) on sale/disposal of premises and equipment(530) Total adjusted noninterest income (loss) items (a)(66,853) Adjusted noninterest income (b) 118,729 Adjusted RevenueNet interest income172,499 Adjusted noninterest income (b) 118,729 Adjusted revenue291,228 Adjusted noninterest expenseNoninterest expense201,227 Less: Adjusted noninterest expense itemsHMNF acquisition-related expenses142 Severance and signing bonus expense(1)1,319 Total adjusted noninterest expense items (c) 1,461 Adjusted noninterest expense199,766 Adjusted return on average assetsNet income (loss)17,439 Less: Adjusted noninterest income (loss) items (net of tax)(2) (a)(52,814) Add: Adjusted noninterest expense items (net of tax)(2) (c)1,154 Adjusted net income (d)71,407 Average total assets (e)5,277,867 Adjusted return on average assets (d)/(e)1.35%