Interest Rate Environment: Changes in interest rates directly impact Alerus Financial's net interest margin (NIM), affecting profitability. Rising rates could increase loan yields but also deposit costs, while lower rates could have the opposite effect.

Economic Growth & Stability: The health of the U.S. economy, reflected in job growth and unemployment rates, influences loan demand, credit quality, and business expansion. Downturns or global growth downgrades due to geopolitical conflicts could increase loan defaults and reduce business activity for banks.

Geopolitical Risks and Market Volatility: Ongoing conflicts, such as in the Middle East, can drive oil prices higher and threaten global economic growth, leading to increased market volatility and investor uncertainty. This can impact consumer and business confidence, potentially affecting wealth management services and overall financial market activity for a diversified financial services company.