ALERUS FINANCIAL CORP Debt Disclosure
NOTE 14 Long-Term Debt
Long-term debt at December 31, 2022 and 2021 consisted of the following:
December 31, 2022 | ||||||||||||||
Period End | ||||||||||||||
Face | Carrying | Interest | Maturity | |||||||||||
(dollars in thousands) |
| Value |
| Value |
| Interest Rate |
| Rate |
| Date |
| Call Date | ||
Subordinated notes payable | $ | 50,000 | $ | 50,000 | Fixed | 3.50 | % | 3/30/2031 | 3/31/2026 | |||||
Junior subordinated debenture (Trust I) | 4,124 | 3,537 |
| Three-month LIBOR + 3.10% | 7.82 | % | 6/26/2033 |
| 6/26/2008 | |||||
Junior subordinated debenture (Trust II) |
| 6,186 |
| 5,306 |
| Three-month LIBOR + 1.80% | 6.57 | % | 9/15/2036 |
| 9/15/2011 | |||
Total long-term debt | $ | 60,310 | $ | 58,843 |
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December 31, 2021 | ||||||||||||||
Period End | ||||||||||||||
Face | Carrying | Interest | Maturity | |||||||||||
(dollars in thousands) |
| Value |
| Value |
| Interest Rate |
| Rate |
| Date |
| Call Date | ||
Subordinated notes payable | $ | 50,000 | $ | 50,000 |
| Fixed |
| 3.50 | % | 3/30/2031 |
| 3/31/2026 | ||
Junior subordinated debenture (Trust I) |
| 4,124 |
| 3,492 |
| Three-month LIBOR + 3.10% | 3.32 | % | 6/26/2033 |
| 6/26/2008 | |||
Junior subordinated debenture (Trust II) |
| 6,186 |
| 5,238 |
| Three-month LIBOR + 1.80% | 2.00 | % | 9/15/2036 |
| 9/15/2011 | |||
Finance lease liability |
| 2,700 |
| 203 |
| Fixed |
| 7.81 | % | 10/31/2022 |
| N/A | ||
Total long-term debt | $ | 63,010 | $ | 58,933 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2022 | Mar 13, 2023 | Showing above |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 26, 2020 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.