GRAND FORKS — Alerus Financial Corporation ended 2021 on high note by posting a record level of income.
According to a Jan. 26 release, Alerus reported a net income of $52.7 million last year, topping the company’s previous record of $44.7 million in 2020. The company saw growth throughout its business sections, though mortgages fared particularly well due to an unanticipated surge in people wanting to refinance.
President and CEO Katie Lorenson, who assumed those positions on Jan. 1, attributed the performance to the bank’s team members, as well as the company’s advice-based approach and diversified business model. The company offers a full line of banking services, as well as retirement and benefits, wealth management and mortgage services.
“Alerus continues to be a purpose-driven company, focused on its business model, strategy and culture,” Lorenson said. “Our talented Alerus team members executed at exceptional levels, resulting in a strong finish to the fourth quarter and another record setting year for Alerus with annual net income of $52.7 million.”
Mortgage originations in the fourth quarter of 2021 came in at $356.8 million, a 14.2% decrease from the third quarter. Totals for the year, however, set a new milestone for the company at $1.8 billion.
The second rollout of the federal Paycheck Protection Program in early January 2021 also provided a boost to the company. Alerus strengthened its U.S. Small Business Administration lending experience, through the use of a five-person team based in the Twin Cities. The company helped clients secure nearly 2,500 PPP loans totaling $474 million. More than 90% of those loans have been forgiven by the SBA.
The company is also continuing to pursue its acquisition strategy and expand its footprint. In early December, Alerus announced its intent to acquire MPB BHC, Inc. and its wholly-owned banking subsidiary, Metro Phoenix Bank. Work on the acquisition is ongoing. In 2020, the company acquired Retirement Planning Services Inc., in Colorado.
“Assuming the consummation of the transactions, this will be our 25th acquisition since 2000,” Lorenson said.
With Lorenson having taken over as president and CEO, the company has also announced two promotions to its executive team. Alan “Al” Villalon has been named chief financial officer and executive vice president of the company. The positions were previously held by Lorenson. Also, Jerrod Hanson has been named chief accounting officer and senior vice president.
Villalon is a strategic finance executive with more than 25 years of experience in financial services. He most recently served as deputy director of investor relations and senior vice president at U.S. Bank. Prior to U.S. Bank, he spent most of his career in equity analyst research roles, including serving as a senior research analyst at Thrivent Asset Management.
Hanson previously served as controller at Alerus for the past two decades. In his new role, he will be responsible for the direction and oversight of all corporate accounting functions and staff, including corporate accounting, Securities and Exchange Commission and other financial reporting, corporate tax, share-based compensation and other financial reporting matters.
