Alerus Financial Corporation sold $360 million of available-for-sale securities, reinvesting the cash into new investment securities with higher yields.
The sale resulted in a one-time pre-tax net loss of $68.5 million.
Restructuring the securities portfolio positions the company for higher earnings and improved financial returns in 2026 and beyond.
Securities Sale
$360 million of AFS securities sold, leading to a one-time pre-tax net loss of $68.5 million.
Reinvestment Strategy
Cash proceeds reinvested in new securities with higher yields, aiming for a net interest margin increase in 2026.
Long-term Strategy
Focused on lowering risk, improving returns, and strengthening the balance sheet without compromising the long-term vision.
- The securities sale and reinvestment strategy are expected to enhance the company's financial performance.
- Alerus Financial Corporation anticipates a higher net interest margin for the upcoming year due to the strategic changes made in the securities portfolio.
Alerus Financial Corporation's deliberate steps in portfolio restructuring demonstrate its commitment to creating sustainable value for clients, communities, and shareholders in 2026.