Note 6 - Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	*December 31,*		*December 31,*
(dollars in thousands)	*2025*		*2024*
Commercial
Commercial and industrial	$	736,833	$	666,727
Commercial real estate
Construction, land and development		246,238		294,677
Multifamily		383,505		363,123
Non-owner occupied		875,862		967,025
Owner occupied		427,260		371,418
Total commercial real estate		1,932,865		1,996,243
Agricultural
Land		64,799		61,299
Production		62,500		63,008
Total agricultural		127,299		124,307
Total commercial		2,796,997		2,787,277
Consumer
Residential real estate
First lien		874,737		921,019
Construction		33,703		33,547
HELOC		260,883		162,509
Junior lien		36,844		44,060
Total residential real estate		1,206,167		1,161,135
Other consumer		44,858		44,122
Total consumer		1,251,025		1,205,257
Total loans	$	4,048,022	$	3,992,534

Financing Receivable, Allowance for Credit Loss [Table Text Block]

	*Year ended December 31, 2025*
	*Beginning*		*Provision for (Recovery*			*Loan*			*Loan*		*Ending*
(dollars in thousands)	*Balance*		of) Credit Losses⁽¹⁾			*Charge-offs*			*Recoveries*		*Balance*
Commercial
Commercial and industrial	$	8,170	$	6,054		$	(916	)	$	2,908	$	16,216
Commercial real estate
Construction, land and development		16,277		(3,067	)		—			—		13,210
Multifamily		4,716		(336	)		—			—		4,380
Non-owner occupied		16,513		(2,194	)		(3,401	)		88		11,006
Owner occupied		3,226		(168	)		(6	)		45		3,097
Total commercial real estate		40,732		(5,765	)		(3,407	)		133		31,693
Agricultural
Land		597		357			—			5		959
Production		631		310			(384	)		66		623
Total agricultural		1,228		667			(384	)		71		1,582
Total commercial		50,130		956			(4,707	)		3,112		49,491
Consumer
Residential real estate
First lien		6,921		2,492			(55	)		—		9,358
Construction		357		(83	)		—			—		274
HELOC		1,339		966			(548	)		30		1,787
Junior lien		742		(348	)		(300	)		301		395
Total residential real estate		9,359		3,027			(903	)		331		11,814
Other consumer		440		152			(138	)		156		610
Total consumer		9,799		3,179			(1,041	)		487		12,424
Total	$	59,929	$	4,135		$	(5,748	)	$	3,599	$	61,915

	*Year ended December 31, 2024*
	*Beginning*		*ACL on PCD*		*Provision for (Recovery*			*Loan*			*Loan*		*Ending*
(dollars in thousands)	*Balance*		*Acquired Loans*		of) Credit Losses⁽¹⁾			*Charge-offs*			*Recoveries*		*Balance*
Commercial
Commercial and industrial	$	9,705	$	92	$	1,598		$	(3,727	)	$	502	$	8,170
Commercial real estate
Construction, land and development		6,135		1,595		8,547			—			—		16,277
Multifamily		1,776		1,154		1,786			—			—		4,716
Non-owner occupied		7,726		5,682		3,105			—			—		16,513
Owner occupied		2,449		705		263			(237	)		46		3,226
Total commercial real estate		18,086		9,136		13,701			(237	)		46		40,732
Agricultural
Land		96		229		252			—			20		597
Production		84		386		180			(26	)		7		631
Total agricultural		180		615		432			(26	)		27		1,228
Total commercial		27,971		9,843		15,731			(3,990	)		575		50,130
Consumer
Residential real estate
First lien		6,087		219		615			—			—		6,921
Construction		485		34		(162	)		—			—		357
HELOC		835		23		500			(19	)		—		1,339
Junior lien		264		19		1,023			(638	)		74		742
Total residential real estate		7,671		295		1,976			(657	)		74		9,359
Other consumer		201		13		382			(186	)		30		440
Total consumer		7,872		308		2,358			(843	)		104		9,799
Total	$	35,843		10,151	$	18,089		$	(4,833	)	$	679	$	59,929

	*Year ended December 31, 2023*
	*Beginning*		*Adoption*			*Provision for (Recovery*			*Loan*			*Loan*		*Ending*
(dollars in thousands)	*Balance*		*of ASC 326*			*of) Credit Losses(1)*			*Charge-offs*			*Recoveries*		*Balance*
Commercial
Commercial and industrial	$	8,690	$	(535	)	$	827		$	(436	)	$	1,159	$	9,705
Commercial real estate
Construction, land and development		1,458		2,551			1,875			—			251		6,135
Multifamily		1,062		(162	)		876			—			—		1,776
Non-owner occupied		7,543		1,344			(1,161	)		—			—		7,726
Owner occupied		4,188		(1,324	)		(459	)		—			44		2,449
Total commercial real estate		14,251		2,409			1,131			—			295		18,086
Agricultural
Land		281		(86	)		(100	)		—			1		96
Production		250		(76	)		(90	)		—			—		84
Total agricultural		531		(162	)		(190	)		—			1		180
Total commercial		23,472		1,712			1,768			(436	)		1,455		27,971
Consumer
Residential real estate
First lien		5,495		1,800			(1,201	)		(9	)		2		6,087
Construction		345		468			(328	)		—			—		485
HELOC		951		59			(214	)		(40	)		79		835
Junior lien		352		(85	)		24			(77	)		50		264
Total residential real estate		7,143		2,242			(1,719	)		(126	)		131		7,671
Other consumer		531		(97	)		(274	)		(51	)		92		201
Total consumer		7,674		2,145			(1,993	)		(177	)		223		7,872
Total	$	31,146		3,857		$	(225	)	$	(613	)	$	1,678	$	35,843

Financing Receivable Credit Quality Indicators [Table Text Block]

													*Revolving*
(dollars in thousands)	*Term Loans Amortized Cost Basis by Origination Year*												*Loans Amortized*
As of December 31, 2025	*2025*		*2024*		*2023*		*2022*		*2021*		*Prior*		*Cost Basis*		*Total*
Commercial and industrial
Pass	$	242,893	$	131,308	$	67,934	$	43,513	$	21,143	$	51,586	$	145,133	$	703,510
Special mention		316		10		560		—		—		28		—		914
Substandard		35		26		2,701		2,970		1,072		6,459		7,115		20,378
Doubtful		1,218		8,638		1,763		298		114		—		—		12,031
Subtotal	$	244,462	$	139,982	$	72,958	$	46,781	$	22,329	$	58,073	$	152,248	$	736,833
Gross charge-offs for the year ended	$	—	$	407	$	152	$	10	$	5	$	342	$	—	$	916
CRE − Construction, land and development
Pass	$	26,108	$	148,261	$	18,056	$	9,738	$	650	$	995	$	8,229	$	212,037
Special mention		—		—		—		178		—		—		—		178
Substandard		—		11,178		—		22,685		—		160		—		34,023
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	26,108	$	159,439	$	18,056	$	32,601	$	650	$	1,155	$	8,229	$	246,238
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Multifamily
Pass	$	6,338	$	26,236	$	115,983	$	115,403	$	30,191	$	60,813	$	—	$	354,964
Special mention		—		—		—		—		831		—		—		831
Substandard		—		5,751		3,972		—		—		17,987		—		27,710
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	6,338	$	31,987	$	119,955	$	115,403	$	31,022	$	78,800	$	—	$	383,505
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Non-owner occupied
Pass	$	102,426	$	196,932	$	134,443	$	169,100	$	86,273	$	168,082	$	1,015	$	858,271
Special mention		—		—		—		—		—		1,040		—		1,040
Substandard		—		—		5,344		7,489		2,729		989		—		16,551
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	102,426	$	196,932	$	139,787	$	176,589	$	89,002	$	170,111	$	1,015	$	875,862
Gross charge-offs for the year ended	$	—	$	—	$	—	$	632	$	775	$	1,994	$	—	$	3,401
CRE − Owner occupied
Pass	$	42,468	$	86,030	$	55,069	$	61,790	$	39,654	$	126,951	$	1,240	$	413,202
Special mention		—		449		—		—		—		1,465		769		2,683
Substandard		—		—		1,402		2,867		2,342		4,764		—		11,375
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	42,468	$	86,479	$	56,471	$	64,657	$	41,996	$	133,180	$	2,009	$	427,260
Gross charge-offs for the year ended	$	—	$	—	$	6	$	—	$	—	$	—	$	—	$	6
Agricultural − Land
Pass	$	8,201	$	8,285	$	8,410	$	12,363	$	5,202	$	12,221	$	2,464	$	57,146
Special mention		233		—		—		3,315		—		—		—		3,548
Substandard		—		—		303		3,583		—		219		—		4,105
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	8,434	$	8,285	$	8,713	$	19,261	$	5,202	$	12,440	$	2,464	$	64,799
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural − Production
Pass	$	4,778	$	6,219	$	4,652	$	3,154	$	370	$	720	$	38,945	$	58,838
Special mention		—		48		112		—		—		—		213		373
Substandard		—		21		553		1,237		29		342		1,107		3,289
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	4,778	$	6,288	$	5,317	$	4,391	$	399	$	1,062	$	40,265	$	62,500
Gross charge-offs for the year ended	$	—	$	—	$	—	$	384	$	—	$	—	$	—	$	384
Residential real estate − First lien
Performing	$	53,688	$	37,893	$	122,651	$	210,228	$	234,461	$	213,214	$	—	$	872,135
Nonperforming		—		—		499		—		642		1,461		—		2,602
Subtotal	$	53,688	$	37,893	$	123,150	$	210,228	$	235,103	$	214,675	$	—	$	874,737
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	7	$	48	$	—	$	55
Residential real estate − Construction
Performing	$	18,097	$	10,459	$	—	$	—	$	467	$	—	$	—	$	29,023
Nonperforming		—		—		—		4,680		—		—		—		4,680
Subtotal	$	18,097	$	10,459	$	—	$	4,680	$	467	$	—	$	—	$	33,703
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate − HELOC
Performing	$	757	$	2,121	$	3,716	$	5,252	$	975	$	5,649	$	242,285	$	260,755
Nonperforming		—		—		25		50		—		53		—		128
Subtotal	$	757	$	2,121	$	3,741	$	5,302	$	975	$	5,702	$	242,285	$	260,883
Gross charge-offs for the year ended	$	—	$	100	$	10	$	438	$	—	$	—	$	—	$	548
Residential real estate − Junior lien
Performing	$	4,753	$	4,995	$	8,609	$	7,090	$	3,977	$	4,995	$	50	$	34,469
Nonperforming		—		1,775		—		—		—		600		—		2,375
Subtotal	$	4,753	$	6,770	$	8,609	$	7,090	$	3,977	$	5,595	$	50	$	36,844
Gross charge-offs for the year ended	$	—	$	—	$	—	$	300	$	—	$	—	$	—	$	300
Other consumer
Performing	$	5,330	$	2,318	$	3,016	$	3,056	$	157	$	3,651	$	26,982	$	44,510
Nonperforming		—		319		—		—		—		29		—		348
Subtotal	$	5,330	$	2,637	$	3,016	$	3,056	$	157	$	3,680	$	26,982	$	44,858
Gross charge-offs for the year ended	$	—	$	16	$	31	$	22	$	—	$	69	$	—	$	138
Total loans	$	517,639	$	689,272	$	559,773	$	690,039	$	431,279	$	684,473	$	475,547	$	4,048,022
Gross charge-offs for the year ended	$	—	$	523	$	199	$	1,786	$	787	$	2,453	$	—	$	5,748

													*Revolving*
(dollars in thousands)	*Term Loans Amortized Cost Basis by Origination Year*												*Loans Amortized*
As of December 31, 2024	*2024*		*2023*		*2022*		*2021*		*2020*		*Prior*		*Cost Basis*		*Total*
Commercial and industrial
Pass	$	209,001	$	141,028	$	61,254	$	34,645	$	38,342	$	36,136	$	111,194	$	631,600
Special mention		1,367		495		3,286		2,239		5,575		1		1,651		14,614
Substandard		—		12,663		220		780		3,154		2,447		1,198		20,462
Doubtful		—		—		—		—		—		51		—		51
Subtotal	$	210,368	$	154,186	$	64,760	$	37,664	$	47,071	$	38,635	$	114,043	$	666,727
Gross charge-offs for the year ended	$	—	$	218	$	2	$	397	$	2,768	$	342	$	—	$	3,727
CRE − Construction, land and development
Pass	$	97,244	$	112,845	$	40,890	$	1,560	$	517	$	1,187	$	2,801	$	257,044
Special mention		—		—		172		—		—		—		—		172
Substandard		5,406		—		31,585		—		—		170		300		37,461
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	102,650	$	112,845	$	72,647	$	1,560	$	517	$	1,357	$	3,101	$	294,677
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Multifamily
Pass	$	35,112	$	62,982	$	138,698	$	33,782	$	33,157	$	32,204	$	—	$	335,935
Special mention		—		—		7,644		272		1,241		—		—		9,157
Substandard		—		—		—		—		17,732		299		—		18,031
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	35,112	$	62,982	$	146,342	$	34,054	$	52,130	$	32,503	$	—	$	363,123
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Non-owner occupied
Pass	$	189,068	$	149,368	$	223,349	$	98,309	$	71,432	$	188,617	$	1,709	$	921,852
Special mention		—		—		1,694		8,603		—		4,148		4,195		18,640
Substandard		—		—		—		7,767		6,347		12,419		—		26,533
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	189,068	$	149,368	$	225,043	$	114,679	$	77,779	$	205,184	$	5,904	$	967,025
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
CRE − Owner occupied
Pass	$	63,721	$	41,918	$	60,788	$	44,957	$	38,941	$	91,804	$	1,652	$	343,781
Special mention		451		—		—		937		2,981		2,735		—		7,104
Substandard		—		311		3,023		2,694		—		13,538		967		20,533
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	64,172	$	42,229	$	63,811	$	48,588	$	41,922	$	108,077	$	2,619	$	371,418
Gross charge-offs for the year ended	$	—	$	12	$	97	$	—	$	—	$	128	$	—	$	237
Agricultural − Land
Pass	$	10,496	$	8,864	$	14,369	$	5,840	$	5,103	$	8,473	$	120	$	53,265
Special mention		69		1,612		3,275		—		—		—		—		4,956
Substandard		—		303		2,166		—		609		—		—		3,078
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	10,565	$	10,779	$	19,810	$	5,840	$	5,712	$	8,473	$	120	$	61,299
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Agricultural − Production
Pass	$	10,445	$	6,440	$	4,356	$	724	$	1,121	$	582	$	34,527	$	58,195
Special mention		130		704		—		—		420		—		1,518		2,772
Substandard		—		—		1,987		—		—		54		—		2,041
Doubtful		—		—		—		—		—		—		—		—
Subtotal	$	10,575	$	7,144	$	6,343	$	724	$	1,541	$	636	$	36,045	$	63,008
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	26	$	—	$	26
Residential real estate − First lien
Performing	$	49,414	$	144,460	$	226,993	$	251,006	$	127,200	$	118,958	$	—	$	918,031
Nonperforming		—		576		—		744		12		1,656		—		2,988
Subtotal	$	49,414	$	145,036	$	226,993	$	251,750	$	127,212	$	120,614	$	—	$	921,019
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate − Construction
Performing	$	19,229	$	6,449	$	1,900	$	1,289	$	—	$	—	$	—	$	28,867
Nonperforming		—		—		4,680		—		—		—		—		4,680
Subtotal	$	19,229	$	6,449	$	6,580	$	1,289	$	—	$	—	$	—	$	33,547
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate − HELOC
Performing	$	3,290	$	5,558	$	6,217	$	1,622	$	939	$	2,717	$	140,707	$	161,050
Nonperforming		—		35		—		—		—		74		1,350		1,459
Subtotal	$	3,290	$	5,593	$	6,217	$	1,622	$	939	$	2,791	$	142,057	$	162,509
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	19	$	—	$	19
Residential real estate − Junior lien
Performing	$	7,762	$	11,557	$	9,553	$	4,990	$	2,760	$	4,178	$	50	$	40,850
Nonperforming		1,775		—		300		108		—		1,027		—		3,210
Subtotal	$	9,537	$	11,557	$	9,853	$	5,098	$	2,760	$	5,205	$	50	$	44,060
Gross charge-offs for the year ended	$	—	$	—	$	—	$	—	$	—	$	638	$	—	$	638
Other consumer
Performing	$	9,618	$	4,695	$	4,853	$	502	$	2,541	$	4,069	$	17,505	$	43,783
Nonperforming		—		11		272		—		7		49		—		339
Subtotal	$	9,618	$	4,706	$	5,125	$	502	$	2,548	$	4,118	$	17,505	$	44,122
Gross charge-offs for the year ended	$	—	$	8	$	3	$	150	$	4	$	21	$	—	$	186
Total loans	$	713,598	$	712,874	$	853,524	$	503,370	$	360,131	$	527,593	$	321,444	$	3,992,534
Gross charge-offs for the year ended	$	—	$	238	$	102	$	547	$	2,772	$	1,174	$	—	$	4,833

Financing Receivable, Past Due [Table Text Block]

	*December 31, 2025*
							*90 Days*
	*Accruing*		*30 - 59 Days*		*60 - 89 Days*		*or More*				*Total*
(dollars in thousands)	*Current*		*Past Due*		*Past Due*		*Past Due*		*Nonaccrual*		*Loans*
Commercial
Commercial and industrial	$	723,436	$	689	$	—	$	—	$	12,708	$	736,833
Commercial real estate
Construction, land and development		212,515		—		—		—		33,723		246,238
Multifamily		373,308		—		—		—		10,197		383,505
Non-owner occupied		874,042		163		—		—		1,657		875,862
Owner occupied		426,803		—		314		—		143		427,260
Total commercial real estate		1,886,668		163		314		—		45,720		1,932,865
Agricultural
Land		63,961		674		—		—		164		64,799
Production		62,105		53		—		—		342		62,500
Total agricultural		126,066		727		—		—		506		127,299
Total commercial		2,736,170		1,579		314		—		58,934		2,796,997
Consumer
Residential real estate
First lien		869,291		2,051		794		—		2,601		874,737
Construction		29,023		—		—		—		4,680		33,703
HELOC		260,467		287		—		—		129		260,883
Junior lien		34,362		107		—		—		2,375		36,844
Total residential real estate		1,193,143		2,445		794		—		9,785		1,206,167
Other consumer		44,471		37		4		—		346		44,858
Total consumer		1,237,614		2,482		798		—		10,131		1,251,025
Total	$	3,973,784	$	4,061	$	1,112	$	—	$	69,065	$	4,048,022

	*December 31, 2024*
							*90 Days*
	*Accruing*		*30 - 59 Days*		*60 - 89 Days*		*or More*				*Total*
(dollars in thousands)	*Current*		*Past Due*		*Past Due*		*Past Due*		*Nonaccrual*		*Loans*
Commercial
Commercial and industrial	$	654,073	$	903	$	133	$	8,400	$	3,218	$	666,727
Commercial real estate
Construction, land and development		264,633		—		—		—		30,044		294,677
Multifamily		363,123		—		—		—		—		363,123
Non-owner occupied		961,808		—		—		—		5,217		967,025
Owner occupied		369,176		225		—		—		2,017		371,418
Total commercial real estate		1,958,740		225		—		—		37,278		1,996,243
Agricultural
Land		60,690		—		—		—		609		61,299
Production		62,269		87		—		—		652		63,008
Total agricultural		122,959		87		—		—		1,261		124,307
Total commercial		2,735,772		1,215		133		8,400		41,757		2,787,277
Consumer
Residential real estate
First lien		915,167		2,104		707		53		2,988		921,019
Construction		28,867		—		—		—		4,680		33,547
HELOC		160,430		169		450		—		1,460		162,509
Junior lien		40,454		396		—		—		3,210		44,060
Total residential real estate		1,144,918		2,669		1,157		53		12,338		1,161,135
Other consumer		43,651		103		30		—		338		44,122
Total consumer		1,188,569		2,772		1,187		53		12,676		1,205,257
Total	$	3,924,341	$	3,987	$	1,320	$	8,453	$	54,433	$	3,992,534

Financing Receivable, Nonaccrual [Table Text Block]

	*As of December 31, 2025*
					*90 Days*
	*Nonaccrual*				*or More*
	*with no Allowance*				*Past Due*
(dollars in thousands)	*for Credit Losses*		*Nonaccrual*		*and Accruing*
Commercial
Commercial and industrial	$	—	$	12,708	$	—
Commercial real estate
Construction, land and development		26,475		33,723		—
Multifamily		4,733		10,197		—
Non-owner occupied		1,657		1,657		—
Owner occupied		89		143		—
Total commercial real estate		32,954		45,720		—
Agricultural
Land		164		164		—
Production		—		342		—
Total agricultural		164		506		—
Total commercial		33,118		58,934		—
Consumer
Residential real estate
First lien		2,298		2,601		—
Construction		4,680		4,680		—
HELOC		—		129		—
Junior lien		2,305		2,375		—
Total residential real estate		9,283		9,785		—
Other consumer		—		346		—
Total consumer		9,283		10,131		—
Total	$	42,401	$	69,065	$	—

	*December 31, 2024*
					*90 Days*
	*Nonaccrual*				*or More*
	*with no Allowance*				*Past Due*
(dollars in thousands)	*for Credit Losses*		*Nonaccrual*		*and Accruing*
Commercial
Commercial and industrial	$	2,952	$	3,218	$	8,400
Commercial real estate
Construction, land and development		24,638		30,044		—
Multifamily		—		—		—
Non-owner occupied		5,217		5,217		—
Owner occupied		1,706		2,017		—
Total commercial real estate		31,561		37,278		—
Agricultural
Land		609		609		—
Production		652		652		—
Total agricultural		1,261		1,261		—
Total commercial		35,774		41,757		8,400
Consumer
Residential real estate
First lien		2,614		2,988		53
Construction		4,680		4,680		—
HELOC		—		1,460		—
Junior lien		2,696		3,210		—
Total residential real estate		9,990		12,338		53
Other consumer		—		338		—
Total consumer		9,990		12,676		53
Total	$	45,764	$	54,433	$	8,453

Financing Receivable, Collateral Dependant [Table Text Block]

	*As of December 31, 2025*
	*Primary Type of Collateral*
									*Allowance for*
(dollars in thousands)	*Real estate*		*Equipment*		*Other*		*Total*		*Credit Losses*
Commercial
Commercial and industrial	$	651	$	—	$	—	$	651	$	43
Commercial real estate

ALERUS FINANCIAL CORP 10-K