Karin M. Taylor - Feb 27, 2024 Form 4 Insider Report for ALERUS FINANCIAL CORP (ALRS)

Role: EVP and Chief Risk Officer
Signature: /s/ Nicholas Brenckman, by power of attorney
Stock symbol: ALRS
Transactions as of: Feb 27, 2024
Transactions value $: -$20,770
Form type: 4
Date filed: 2/29/2024, 04:09 PM
Previous filing: Feb 20, 2024

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	ALRS	Common Stock	Options Exercise	$0	+2.65K	+11.95%	$0.00	24.8K	Feb 27, 2024	Direct	F1, F2, F3
transaction	ALRS	Common Stock	Tax liability	-$20.8K	-951	-3.83%	$21.84	23.9K	Feb 27, 2024	Direct	F3, F4
holding	ALRS	Common Stock						1.25K	Feb 27, 2024	By the Alerus Financial Corporation Employee Stock Ownership Plan

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	ALRS	Restricted Stock Units	Options Exercise	$0	-2.65K	-100%	$0.00^*	0	Feb 27, 2024	Common Stock	2.65K		Direct	F1, F2
transaction	ALRS	Restricted Stock Units	Award	$0	+6.92K		$0.00	6.92K	Feb 27, 2024	Common Stock	6.92K		Direct	F2, F5, F6

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	On February 17, 2021, Ms. Taylor was granted 1,765 performance-based restricted stock units, vesting no later than March 15, 2024, so long as Alerus Financial Corporation meets certain cumulative net income goals.The payout could be increased to 150% and the performance-based restricted stock units vested of target or reduced to 0% based on achievement of the applicable metrics. The Alerus Financial Corporation Compensation Committee certified the payout at 150% on February 27, 2024.
F2	Restricted stock units convert into common stock on a one-for-one basis.
F3	Includes 6,024 shares of restricted stock.
F4	Shares withheld upon vesting of restricted stock units for payment of tax liability.
F5	Includes 2,769 restricted stock units that have time-based vesting components. Includes 4,154 restricted stock units that have performance-based vesting components.
F6	The time-based restricted stock units vest on February 27, 2027. The performance-based restricted stock units vest no later than March 15, 2027, so long as Alerus Financial Corporation meets certain cumulative EPS and ROE goals. The payout for performance-based restricted stock units could be increased to 150% of target or reduced to 0% based on achievement of the applicable metrics.