Form 4: Alerus Financial Corp Executive Jon Hendry Reports Stock Transactions

Jon Hendry, Chief Technology Officer & EVP of Alerus Financial Corp, reports acquisition and disposal of company stock and restricted stock units.

Summary

• On February 27, 2024, Jon Hendry acquired 2,298 shares of Alerus Financial Corp common stock upon vesting of restricted stock units.
• Also on February 27, 2024, 724 shares were disposed of to cover tax liabilities related to the vesting of the restricted stock units at a price of $21.84.
• Following these transactions, Hendry directly owns 52,468 shares of common stock.
• Hendry also indirectly owns 3,000 shares through his spouse and 21,663.35 shares through the Alerus Financial Corporation Employee Stock Ownership Plan.
• He was also granted 4,728 restricted stock units, some with time-based vesting and some with performance-based vesting, that vest no later than March 15, 2027.
• 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.

Sentiment

Score: 6

Explanation: The document reflects standard executive compensation practices and stock transactions, with no overtly positive or negative implications for the company's financial health.

Positives

• The vesting of performance-based restricted stock units suggests that Alerus Financial Corporation met certain cumulative net income goals.

Negatives

• 724 shares were disposed of to cover tax liabilities, which reduces Hendry's overall holdings.

Risks

• The vesting of the performance-based restricted stock units granted on February 27, 2024, is contingent on Alerus Financial Corporation meeting certain cumulative EPS and ROE goals by March 15, 2027.
• The payout for performance-based restricted stock units could be reduced to 0% based on achievement of the applicable metrics.

Future Outlook

The vesting of future restricted stock units is dependent on the company's performance, specifically cumulative EPS and ROE goals.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies.

Stakeholder Impact

• The vesting of restricted stock units aligns executive interests with shareholder value.

Key Dates