Alerus Financial Stock Earnings Reports

Alerus reported third-quarter 2025 results largely in line with expectations, highlighting continued execution of its multi-year transformation toward a diversified commercial-wealth-retirement franchise. Net interest income reached record levels (Q3 NII $43.1M) with reported NIM stable at 3.50%. Fee income remains a meaningful, annuitized revenue stream (over 40% of revenue), supporting resilience across cycles. Credit metrics showed a modest rise in nonperforming assets to 1.13%, driven by two large commercial relationships (a $60M equipment lessor exposure and a ~$32M multifamily loan that is 67% leased and listed for sale); management believes these two loans account for ~75% of nonperformers and is carrying strong reserves (company reserve level 1.51%, 50% reserve on the equipment lessor relationship, ~15% on the multifamily). Year-to-date charge-offs are low (8 bps) and tangible common equity improved to ~8.24% with tangible book value up ~5%. Management returned $5.3M in dividends this quarter. Outlook/guidance: year-end 2025 loans > $4.1B, deposits ~ $4.3B, full-year NIM expected ~3.35%–3.40% (2025), and 2026 NIM ~3.35%–3.45% (including ~18 bps purchase accounting accretion). Adjusted pre-provision net revenue (PPNR) forecast for 2025 is ~$85–86M with low-to-mid single-digit growth expected in 2026; adjusted ROA >1.15% for 2025 and >1.10% for 2026. Strategic priorities emphasize organic growth of full commercial relationships, expanding wealth advisor headcount (platform conversion complete), continued national growth in retirement/HSA, productivity gains through process improvement, automation and AI, disciplined capital allocation, and opportunistic M&A in retirement/HSA.