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Second Quarter 2024 Presentation

INVESTOR PRESENTATION

2Q 2024

NASDAQ: ALRS

DISCLAIMERS (CONTINUED)

AlerusdditionalFinancialInformationCorporation (theand"Company")Where to filedFindaItRegistration Statement on Form S-4 (Registration Statement No. 333-280815) with the Securities and Exchange Commission (the "SEC") on July 15, 2024, in connection with a proposed transaction between the Company and HMN Financial, Inc. ("HMNF"). The registration statement includes a joint proxy statement of the Company and HMNF that also constitutes a prospectus of the Company, which will be sent to the stockholders of the Company and HMNF after the SEC declares the registration statement effective.

Before making any voting decision, the stockholders of the Company and HMNF are advised to read the joint proxy statement/prospectus, because it contains important information about the Company, HMNF and the proposed transaction.

This document and other documents relating to the proposed transaction filed by the Company can be obtained free of charge from the SEC's website at www.sec.gov. These documents also can be obtained free of charge by accessing the Company's website at www.alerus.com under the link "Investors Relations" and then under "SEC Filings" and HMNF's website at www.justcallhome.com/HMNFinancial under "SEC Filings." Alternatively, these documents can be obtained free of charge from the Company upon written request to Alerus Financial Corporation, Corporate Secretary, 401 Demers Avenue, Grand Forks, North Dakota 58201 or by calling (701) 795-3200, or from HMNF upon written request to HMN Financial, Inc., Corporate Secretary, 1016 Civic Center Drive NW, Rochester, Minnesota 55901 or by calling (507) 535-1200. The contents of the websites referenced above are not deemed to be incorporated by reference into the registration statement or the joint proxy statement/prospectus.

ThisParticipantspresentationindoesthe Snotlicitationconstitute a solicitation of proxy, an offer to purchase or a solicitation of an offer to sell any securities. The Company, HMNF, and certain of their directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the stockholders of the Company and HMNF in connection with the proposed transaction under SEC rules. Information about the directors and executive officers of the Company and HMNF is included in the joint proxy statement/prospectus for the proposed transaction filed with the SEC. This document may be obtained free of charge in the manner described above under "Additional Information and Where to Find It."

2

COMPANY PROFILE

Alerus is a commercial wealth bank and a national retirement plan provider

DIVERSIFIED REVENUE(1)

Last Twelve Months Ended June 30, 2024

Net Interest Income:

Retirement &

Benefits

$88.2 million

Net Interest

Revenue

45.3% of revenue

Income

33.7%

45.3%

Noninterest Income:

$106.5 million

Wealth Advisory

54.7% of revenue

Banking Fees &

Revenue

12.2%

Other Revenue(2)

8.8%

RETIREMENT AND BENEFITS

Retirement

Benefits

Plan administration

Health savings accounts

Trust and custodial offerings

Flexible spending accounts

Record keeping

COBRA

$36.7

$36.7

$39.4

$31.9

$34.2

$32.1

AUA / AUM:

$ in billions

2019

2020

2021

2022

2023

2Q 2024

BANKING

WEALTH ADVISORY

Business Services

Consumer Services

Financial Planning: Retirement | Tax | Estate planning

Commercial and small business

Private banking

Investment Management: Managed investments | Brokerage

offerings

Savings, money markets, CDs

Trust and Fiduciary: Estate Administration | Corporate Trusteeship

Treasury Management services

Mortgage services

SBA & CRE Lending

$3.4

$3.8

$3.9

$4.4

$4.0

$3.6

$4.0

$4.2

$3.0

$3.1

$3.3

$2.4

Assets:

AUA / AUM:

$ in billions

$ in billions

2019

2020

2021

2022

2023

2Q 2024

2019

2020

2021

2022

2023

2Q 2024

3 |

1. Excludes net losses on investment securities of $24.6 million in 4Q 2023. See "Non-GAAP Disclosure Reconciliation."

2. Banking and other revenue consists of service charges on deposit accounts, mortgage income, interchange income and other noninterest income.

Grand Forks, ND:

FRANCHISE FOOTPRINT

Fargo, ND:

4 offices

FULL-SERVICE BANKING

Twin

3 offices

Phoenix, AZ:

6 offices

2 offices

Cities, MN:

,

,

Offices in

RETIREMENT AND BENEFIT SERVICES

and

50 states

Minnesota North Dakota, Michigan

Retirement plan service clients in all

Colorado

Market Distribution and Client Base

16,700

Consumer banking clients

Employer-sponsored retirement and benefit

8,400

Commercial banking clients

plan participants and health savings account participants

37,300

485,000

Flexible spending account and health

10,900

Employer-sponsored retirement plans

reimbursement arrangement participants

Wealth clients

34,100

BANKING

LOANS: $2,916

DEPOSITS: $3,299

14.4%

28.2%26.5%

39.2%

57.4%9.9%

24.4%

WEALTH ADVISORY

AUA / AUM: $4,172

4.3% 11.6%

8.8%

75.3%

RETIREMENT AND BENEFITS

AUA / AUM: $39,390

9.3%

13.1%

77.6%

Data as of 6/30/2024.

LEGEND:

North Dakota

Minnesota

Arizona

National

Synergistic | ($ in millions)

4 |

STRATEGIC GROWTH

To supplement our organic growth, we have executed 25 acquisitions throughout the history of our company

including: 15 in Banking, 10 in Retirement and Benefits. HMN Financial, Inc. will be our 26th acquisition.

Rebranded to

Expanded to

1879

Alerus

2007

Arizona Market

2019

Acquired Metro

Phoenix Bank

2024

Began asthe Bank 2000

Expanded to

2009

of Grand Forks

Minnesota Market

Completed Initial Public Offering (IPO)

2022 Announced

acquisition of HMN

Financial, Inc.

ROE(1) (5 Year History: 2019 - 2023)

ROA(1) (5 Year History: 2019 - 2023)

12.5%

1.28%

1.31%

11.2%

9.2%

1.08%

KBW Regional

KBW Regional

Alerus Financial(2)

KBW Regional

KBW Regional

Alerus Financial(2)

Bank Index

Bank Index

Bank Index

Bank Index

(Average)

(Top Quartile)

(Average)

(Top Quartile)

5 |

1. Source S&P Capital IQ.

2. Excludes net losses on investment securities (after-tax) of $19.2 million in 4Q 2023. See "Non-GAAP Disclosure Reconciliation."

HMN FINANCIAL, INC. ACQUISITION HIGHLIGHTS

Natural Expansion of the Alerus Franchise

Strategic Expansion

Complementary mission and values with a strong

corporate and credit culture

Franchise-enhancing strategic expansion into the

vibrant Rochester, Minnesota, MSA

Benefits of additional scale

Assets(1)Loans(1)Deposits(1)

Financially Attractive(2)

Deal Value Per Share / TBVPS

2.2 years

TBV Earnback

107%

TBV Earnback

(3)

Accretive

(Excl. int. rate markets & AOCI)

0.9%

Core Deposit Premium

45%+

'25 EPS Accretion

25%+

Internal Rate of Return

1.15%+

'25 ROAA

12.5%+

'25 ROAE

'25 Efficiency Ratio Improvement

615+ bps

Pro Forma Loans / Deposits

85%

(MRQ)

Low Risk

High-quality, granular and long tenured loans and core deposit base

Excellent credit discipline

and asset quality

Seamless integration of straight-forward business lines

Leverages management's

transaction and

integration expertise

$5.5

Strong pro forma capital ratios; creation of

$4.3

capacity for continued growth

$1.1

$3.8

$1.0

$4.4

$0.9

Proven ability to create revenue synergies

$3.3

$2.9

across Alerus' diverse business lines

$ in Billions

ALRS

HMNF

Pro-forma

(not modeled)

6 |

1. Data as of 6/30/2024.

2. Metrics disclosed with deal announcement on 5/15/2024. Metrics based on ALRS closing price of $20.69 on 5/14/2024.

3. No rate mark scenario assumes no loan interest rate mark, AOCI mark, MSR mark or time deposit mark

Extensive operational and

credit due diligence

STRATEGIC INITIATIVES

One Alerus = Working Better Together to Grow

Client

Oriented

Reinvention

Diversified

of Processes

Services

One

Alerus

Technology

Synergistic

Investment

Growth

Tailored

Advice

Our Purpose Powers

Culture

Passion for Excellence

Success is Never Final

Act with accountability and

Embrace opportunities to

sense of urgency to best serve

adapt and growth with our

clients and achieve

industry and our clients

exceptional results

One Alerus

Do the Right Thing

Lead with integrity and

Work together to provide

provide valued advice and

purpose-driven products

guidance

and services for our

clients

7

ORGANIC GROWTH

acquisition,

Collaborative leadership team focused on

retention, and

with existing clients

new client

focused on bringing value to clients

deepening relationships

through advice and specialty solutions to help clients grow

Diversified busi

ess model

unavailable to traditional banking

Leveraging

organizations

product synergies

TALENT ACQUISIT ONS

Recruiting top talent in mid-market C&I banking and specialty

niches to

in our existing markets

accelerate growth

into new markets with new talent

Proactively positioning ourselves as an

Jumpstarting our entrance

of choice

acquirer and employer

STRATEGIC ACQUISITION

Capitalizing on str tegic opportunities to grow in our existing

markets or new markets

banks

and nationwide

fee income

Acquisition targets include

with complementary business models, cultural

similarities, and synergy and growth opportunities

compan

PRODUCTIVITY AND EFFICIENCY

Providing secure and reliable technology that meets evolving

client expectations

Integrating our full product and service offerings through our

fast-follower

technology strategy

OFFICERS AND DIRECTORS

EXECUTIVE MANAGEMENT

KATIE LORENSON

Director, President and

Chief Executive Officer

7 years with Alerus

BOARD OF 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

8

AL VILLALON

Executive Vice President and Chief Financial Officer

2 years with Alerus

JIM COLLINS

Executive Vice President and Chief Banking and Revenue Officer 2 years with Alerus

FORREST WILSON

Executive Vice President and

Chief Retirement Services Officer

Joined Alerus in 2024

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

MARY ZIMMER

Since 2021

Former Director of Diverse Client Segments and Former NortheRegional President, Wells Fargo Advisors; Former Head of Intl. Wealth USA, Royal Bank of Canada U.S. Wealth Mgmt.

KARIN TAYLOR

Executive Vice President and

Chief Risk Officer and Operating Officer 6 years with Alerus

MISSY KENEY

Executive Vice President and Chief Engagement Officer 19 years with Alerus

JON HENDRY

Executive Vice President and Chief Technology Officer 40 years with Alerus

JANET ESTEP

Since 2021

Former President and CEO, Nacha; Former EVP, US Bank Transaction Division; Former VP, Pace Analytical Services

JOHN URIBE

Since 2023

Chief Financial Officer

Blue Cross and Blue Shield of Minnesota

NIKKI SORUM

Since 2023

Former Head of Sales and Distribution, Thrivent;

Former SVP, Private Client Group,

RBC Wealth Management

SECOND QUARTER

HIGHLIGHTS

Office in

Excelsior, Minnesota

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Disclaimer

Alerus Financial Corporation published this content on 24 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 July 2024 20:36:08 UTC.

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