Key Highlights

  • Consensus EPS of 0.66 compares with second-quarter diluted EPS of 0.81 and adjusted diluted EPS of 0.80.
  • Consensus revenue of USD 76.72 million compares with second-quarter total revenue of USD 80.7 million, with noninterest income at 40.9%.
  • Management guided a 2026 reported net interest margin of 3.7% to 3.8%, with mid-single-digit loan growth.
  • Net interest income was USD 47.7 million, up 10.9% year over year, with a net interest margin of 3.97%.

Alerus Financial (NASDAQ:ALRS) reports third-quarter results on Wednesday, Oct. 28, with the timing not given in the estimates table. Consensus stands at EPS of 0.66 on revenue of USD 76.72 million, and the company has a market capitalization of USD 810.64 million.

Alerus Financial is a financial services company with banking, wealth advisory, retirement and benefit, and mortgage banking businesses. Second-quarter net interest income was USD 47,712 thousand against USD 43,032 thousand, and net income was USD 20,865 thousand against USD 20,253 thousand.

Estimates Against Second-Quarter Results

The EPS estimate of 0.66 is below the second-quarter diluted EPS of 0.81, which compared with 0.78 a year earlier, and below adjusted diluted EPS of 0.80, which adjusts for merger-related expenses and severance. The estimates table does not state its EPS basis.

The revenue estimate of USD 76.72 million is below second-quarter total revenue of USD 80.7 million, and the estimates table does not state its revenue basis. Noninterest income was USD 32,945 thousand against USD 31,763 thousand.

What Management Guided and What It Left Open

Management guided a 2026 reported net interest margin of 3.7% to 3.8%, an improvement based on core margin stability, with mid-single-digit loan growth and low single-digit deposit growth for the full year.

Management left open mortgage originations, forecasting lower volume because of what it described as a higher probability of a rate hike in September, and deposit costs, saying it anticipates somewhat higher costs given the rate hikes. It described deposit competition as intense.

Credit Quality, Deposits and Fee Income Detail

Nonperforming assets were USD 17.1 million, down 68.3% from the prior quarter, and nonperforming loans were USD 7.5 million against USD 53.9 million. Criticized loans were USD 83.1 million, or 2.06% of total loans against 3.28%. Net charge-offs were USD 2.6 million, or 0.26% of average loans.

Total loans were USD 4.0 billion and total deposits were USD 4.2 billion, down USD 156 million sequentially on seasonal outflows of public depositor funds. Wealth advisory revenue was USD 7.7 million, retirement and benefit revenue was USD 17.3 million and mortgage banking revenue was USD 3.2 million.

Income Statement Lines, Capital and Dividend

Interest and dividend income was USD 70,626 thousand against USD 70,424 thousand, and noninterest expense was USD 52,883 thousand against USD 48,438 thousand. The provision for credit losses was USD 495 thousand, and income before income taxes was USD 27,279 thousand against USD 26,357 thousand.

The common equity Tier 1 ratio was 10.81% and tangible book value per share was USD 18.73. The company repurchased 250,000 shares for USD 6.8 million, and the dividend declared was 0.22 per share against 0.21. Cash and cash equivalents were USD 109,012 thousand. The estimates table lists a market capitalization of USD 810.64 million.

Items to Track in the Report

Reported EPS against 0.66 and revenue against USD 76.72 million are the headline comparisons. Other markers are net interest margin, credit quality and mortgage originations.