Alerus Financial Corporation (Nasdaq: ALRS), or the Company,
reported net income of $3.2 million for the fourth quarter of 2024,
or $0.13 per diluted common share, compared to net income of $5.2
million, or $0.26 per diluted common share, for the third quarter
of 2024, and net loss of $14.8 million, or ($0.73) per diluted
common share, for the fourth quarter of 2023.
CEO Comments
President and Chief Executive Officer Katie Lorenson said, “We
are pleased to end 2024 with a solid quarter on across-the-board
improvements to our performance metrics. The fourth quarter of 2024
was highlighted by the closing and conversion of HMN Financial,
Inc. (“HMNF”), the largest acquisition in our Company history, and
we welcome HMNF’s employees to the Alerus team. The combination of
HMNF and meaningful organic growth in our underlying core business,
drove an increase in earnings per share by a robust 41.9% versus
the prior quarter. Notably, the net interest margin expanded 97
basis points, while our adjusted efficiency ratio improved
significantly with a decrease to 69.0% from 77.7% in the third
quarter.
For the full year 2024, we achieved market share gains and
strong client base growth across all our business lines with our
noninterest income, which represents nearly half of our total
revenues. Noninterest income grew 19.4% quarter-over-quarter.
We enter 2025 with positive momentum and plan to continue making
long term investments to support and grow our diversified revenue
streams while continuing to prudently manage our expenses. While
our capital ratios declined in the fourth quarter due to the HMNF
acquisition, we remain above all well-capitalized thresholds and
expect to build capital in 2025. We bolstered our reserves with the
allowance for credit losses on loans to total loans moving up to
1.50%, while we continue to proactively identify and manage credit
normalization.
Looking ahead, we remain committed to driving sustainable growth
and delivering value to our shareholders. Our strategic focus on
organic growth, diversification, valuable fee income, and
maintaining strong asset quality will continue to guide our efforts
in 2025 and beyond.
I want to thank all our team members - both the new team from
HMNF and the long tenured legacy team - for your hard work,
dedication and invaluable contributions supporting our company, our
clients and our communities in 2024. Together, we will continue to
build on our successes and return Alerus to top tier financial
results.”
Fourth Quarter Highlights
- Adjusted earnings per common share (non-GAAP) of $0.44 in the
fourth quarter of 2024, an increase of 41.9% from $0.31 in the
third quarter of 2024.
- Completed the acquisition of HMN Financial, Inc. and its
subsidiary, Home Federal Savings Bank (together, “HMNF”) in the
fourth quarter of 2024, the 26th and largest acquisition in the
Company’s history.
- Total loans were $4.0 billion as of December 31, 2024, an
increase of $1.0 billion, or 31.7%, from September 30, 2024.
- Total deposits were $4.4 billion as of December 31, 2024, an
increase of $1.1 billion, or 31.7%, from September 30, 2024.
- Non-interest bearing deposits were $903.5 million as of
December 31, 2024, an increase of $245.9 million, or 37.4%, from
September 30, 2024.
- The loan to deposit ratio remained stable at 91.2% as of both
December 31, 2024 and September 30, 2024.
- Net interest income was $38.3 million in the fourth quarter of
2024, an increase of 69.8% from $22.5 million in the third quarter
of 2024.
- Net interest margin was 3.20% in the fourth quarter of 2024, an
increase of 97 basis points from 2.23% in the third quarter of
2024.
- Noninterest income was $33.9 million in the fourth quarter of
2024, which represented 46.9% of total revenues, an increase of
19.4% from $28.4 million in the third quarter of 2024.
- Adjusted pre-provision net revenue was $18.2 million in the
fourth quarter of 2024, an increase of 88.6% from $9.7 million in
the third quarter of 2024.
- Adjusted efficiency ratio (non-GAAP) was 69.0% in the fourth
quarter of 2024, improved from 77.7% in the third quarter of
2024.
- Allowance for credit losses on loans to total loans was 1.50%
as of December 31, 2024, an increase of 21 basis points from 1.29%
as of September 30, 2024.
- Adjusted return on average tangible common equity (non-GAAP)
was 14.7% in the fourth quarter of 2024, an increase from 9.0% in
the third quarter of 2024.
- Book value per common share was $19.68 as of December 31, 2024,
a 0.8% increase from $19.53 as of September 30, 2024.
Full Year 2024 Highlights
- Adjusted earnings per common share (non-GAAP) of $1.44 for the
year ended December 31, 2024, a decrease of 0.7% from $1.45 for the
year ended December 31, 2023.
- Total loans were $4.0 billion as of December 31, 2024, an
increase of $1.2 billion, or 44.7%, from December 31, 2023.
- Total deposits were $4.4 billion as of December 31, 2024, an
increase of $1.3 billion, or 41.4%, from December 31, 2023.
- Non-interest bearing deposits were $903.5 million as of
December 31, 2024, an increase of $175.4 million, or 24.1%, from
December 31, 2023.
- Net interest income was $107.0 million for the year ended
December 31, 2024, an increase of 21.9% from $87.8 million for the
year ended December 31, 2023.
- Net interest margin was 2.56% for the year ended December 31,
2024, an increase of 10 basis points from 2.46% for the year ended
December 31, 2023.
- Noninterest income was $114.9 million for the year ended
December 31, 2024, which represented 51.8% of total revenues, an
increase of 43.3% from $80.2 million for the year ended December
31, 2023.
- Total assets under administration/management at December 31,
2024 were $45.3 billion, an 11.3% increase from December 31,
2023.
- Adjusted pre-provision net revenue was $50.2 for the year ended
December 31, 2024, an increase of 24.3% from $40.4 million for the
year ended December 31, 2023.
- Adjusted efficiency ratio (non-GAAP) was 73.4% for the year
ended December 31, 2024, improved from 75.5% for the year ended
December 31, 2023.
- Allowance for credit losses on loans to total loans was 1.50%
as of December 31, 2024, an increase of 20 basis points from 1.30%
as of December 31, 2023.
- Book value per common share was $19.68 as of December 31, 2024,
a 5.2% increase from $18.71 as of December 31, 2023.
- Dividends paid per common share totaled $0.79 for the year
ended December 31, 2024, an increase of 5.3% from $0.75 for the
year ended December 31, 2023.
Selected Financial Data (unaudited)
As of and for the
Three months ended
Year ended
December 31,
September 30,
December 31,
December 31,
December 31,
(dollars and shares in thousands, except
per share data)
2024
2024
2023
2024
2023
Performance Ratios
Return on average total assets
0.24
%
0.48
%
(1.51
)%
0.47
%
0.31
%
Adjusted return on average total
assets(1)
0.83
%
0.57
%
0.52
%
0.68
%
0.77
%
Return on average common equity
2.68
%
5.52
%
(16.75
)%
5.30
%
3.26
%
Return on average tangible common
equity(1)
6.01
%
7.83
%
(18.85
)%
8.16
%
5.37
%
Adjusted return on average tangible common
equity(1)
14.65
%
9.04
%
8.38
%
11.15
%
11.30
%
Noninterest income as a % of revenue
46.94
%
55.72
%
3.54
%
51.78
%
47.74
%
Net interest margin (tax-equivalent)
3.20
%
2.23
%
2.37
%
2.56
%
2.46
%
Adjusted net interest margin
(tax-equivalent)(1)
2.81
%
2.35
%
2.31
%
2.53
%
2.42
%
Efficiency ratio(1)
73.36
%
80.29
%
165.40
%
75.93
%
85.85
%
Adjusted efficiency ratio(1)
68.97
%
77.71
%
78.18
%
73.44
%
75.50
%
Net charge-offs/(recoveries) to average
loans
0.13
%
0.04
%
(0.04
)%
0.13
%
(0.04
)%
Dividend payout ratio
153.85
%
76.92
%
(26.03
)%
80.61
%
129.31
%
Per Common Share
Earnings per common share - basic
$
0.13
$
0.26
$
(0.73
)
$
1.00
$
0.59
Earnings per common share - diluted
$
0.13
$
0.26
$
(0.73
)
$
0.98
$
0.58
Adjusted earnings per common share -
diluted (1)
$
0.44
$
0.31
$
0.26
$
1.44
$
1.45
Dividends declared per common share
$
0.20
$
0.20
$
0.19
$
0.79
$
0.75
Book value per common share
$
19.68
$
19.53
$
18.71
Tangible book value per common share
(1)
$
14.49
$
16.50
$
15.46
Average common shares outstanding -
basic
24,857
19,788
19,761
21,047
19,922
Average common shares outstanding -
diluted
25,144
20,075
19,996
21,321
20,143
Other Data
Retirement and benefit services assets
under administration/management
$
40,728,699
$
41,249,280
$
36,682,425
Wealth management assets under
administration/management
$
4,579,189
$
4,397,505
$
4,018,846
Mortgage originations
$
88,576
$
82,388
$
65,488
$
334,318
$
364,114
____________________
(1) Represents a non-GAAP financial
measure. See “Non-GAAP to GAAP Reconciliations and Calculation of
Non-GAAP Financial Measures.”
Results of Operations
Net Interest Income
Net interest income for the fourth quarter of 2024 was $38.3
million, a $15.7 million, or 69.8%, increase from the third quarter
of 2024. The increase was primarily due to increased interest
income on higher earning assets acquired in the HMNF transaction,
organic loan growth, and lower average rates paid on deposit
balances.
Net interest income increased $16.7 million, or 77.6%, from
$21.6 million for the fourth quarter of 2023. Interest income
increased $22.6 million, or 50.6%, from the fourth quarter of 2023,
primarily driven by higher earning assets acquired in the HMNF
transaction, strong organic loan growth at higher yields, and
purchase accounting accretion. The increase in interest income was
partially offset by a $5.9 million, or 25.4%, increase in interest
expense, driven by an increase in interest-bearing deposits from
the acquisition of HMNF and organic deposit growth.
Net interest margin (on a tax-equivalent basis) was 3.20% for
the fourth quarter of 2024, a 97 basis point increase from 2.23%
for the third quarter of 2024, and an 83 basis point increase from
2.37% for the fourth quarter of 2023. The increase in net interest
margin (on a tax-equivalent basis) was mainly attributable to
purchase accounting accretion, lower rates paid on deposits in the
fourth quarter, the unwinding of the Bank Term Funding Program
(“BTFP”) arbitrage trade late in the third quarter of 2024, and
organic loan and deposit growth.
Noninterest Income
Noninterest income for the fourth quarter of 2024 was $33.9
million, a $5.5 million increase from the third quarter of 2024.
The quarter over quarter increase was primarily driven by
improvement across all fee-based businesses. Mortgage banking
revenue increased $1.1 million, from $2.6 million in the third
quarter of 2024, primarily driven by higher mortgage originations
and higher margins on sold mortgages. Wealth revenue increased $0.3
million during the fourth quarter of 2024, a 4.9% increase from the
third quarter of 2024, primarily driven by the acquisition of HMNF.
Retirement and benefit services revenue increased $0.3 million in
the fourth quarter of 2024, a 2.1% increase from the third quarter
of 2024, primarily driven by nonmarket-based fees. Combined assets
under administration/management in wealth and retirement and
benefit services decreased 0.7% from September 30, 2024. The slight
decrease in combined assets under administration/management was
primarily due to stable equity and bond markets. Additionally,
other noninterest income increased $3.6 million during the fourth
quarter of 2024, a 144.9% increase from the third quarter of 2024,
primarily due to a gain on the sale of fixed assets related to the
sale of a Fargo, North Dakota office and increased swap fee income
generated from commercial loan originations.
Noninterest income for the fourth quarter of 2024 increased by
$33.1 million from the fourth quarter of 2023. The year over year
increase was primarily driven by the strategic balance sheet
repositioning transaction completed in the fourth quarter of 2023,
which resulted in a $24.6 million loss on the sale of investment
securities. Year over year, the fee-based businesses each showed
improvement. Mortgage banking revenue increased $2.4 million, from
$1.3 million in the fourth quarter of 2023, primarily driven by
higher mortgage originations and higher margins on sold mortgages.
Retirement and benefit services revenue increased $1.2 million, or
7.6%, from $15.3 million in the fourth quarter of 2023, primarily
driven by an increase in assets under administration/management of
11.0% during that same period. Wealth revenue increased $1.1
million, or 18.0%, in the fourth quarter of 2024, primarily driven
by an increase in assets under administration/management of 13.9%
during that same period. Other noninterest income increased $3.5
million, or 137.0%, in the fourth quarter of 2024 compared to the
fourth quarter of 2023, primarily due to a gain on the sale of
fixed assets related to the sale of a Fargo, North Dakota office
and increased swap fee income generated from commercial loan
originations.
Noninterest Expense
Noninterest expense for the fourth quarter of 2024 was $56.0
million, a $13.6 million, or 32.0%, increase from the third quarter
of 2024. The quarter over quarter increase was primarily driven by
the acquisition of HMNF and related expenses. Compensation expense
increased $5.6 million, or 26.6%, from the third quarter of 2024,
primarily driven by acquisition-related compensation expenses,
experienced talent acquisitions, and increased labor costs.
Professional fees and assessments increased $2.3 million, or 53.0%,
from the third quarter of 2024, primarily driven by increased
acquisition-related expenses of $1.6 million. Business services,
software and technology expense increased $2.1 million, or 42.1%,
from the third quarter of 2024, primarily driven by increased core
processing fees and equipment purchases in connection with the HMNF
acquisition. Intangible amortization expense was $2.8 million, a
$1.5 million increase from the third quarter of 2024, primarily
driven by amortization expense related to the $33.5 million core
deposit intangible recorded in connection with the HMNF
acquisition.
Noninterest expense for the fourth quarter of 2024 increased
$17.4 million, or 44.9%, from $38.7 million in the fourth quarter
of 2023. The increase was primarily driven by the acquisition of
HMNF and related expenses. Compensation expense increased $7.4
million, or 38.7%, in the fourth quarter of 2024, primarily due to
acquisition-related compensation expenses and increased labor
costs. Professional fees and assessments increased primarily due to
increased acquisition-related expenses of $3.3 million in
connection with the acquisition of HMNF and an increase in Federal
Deposit Insurance Corporation (“FDIC”) assessments. Employee taxes
and benefits expense increased $1.7 million, or 36.4%, primarily
due to increased expense related to the employee stock ownership
program (“ESOP”) and costs related to group insurance. Business
services, software and technology expense increased $1.2 million,
or 22.0%, in the fourth quarter of 2024, primarily driven by
increased core processing fees and equipment purchases in
connection with the HMNF acquisition. Intangible amortization
expense increased $1.5 million in the fourth quarter of 2024,
primarily driven by amortization expense related to the $33.5
million core deposit intangible recorded in connection with the
HMNF acquisition.
Financial Condition
Total assets were $5.3 billion as of December 31, 2024, an
increase of $1.4 billion, or 34.7%, from December 31, 2023. The
increase was primarily due to a $1.2 billion increase in loans, a
$101.3 million increase in available-for-sale investment
securities, a $40.8 million increase in goodwill, and a $26.7
million increase in other intangible assets, partially offset by a
decrease of $68.7 million in cash and cash equivalents and a
decrease of $23.9 million in held-to-maturity investment
securities. The increase in goodwill and other intangible assets
was related to the acquisition of HMNF.
Loans
Total loans were $4.0 billion as of December 31, 2024, an
increase of $1.2 billion, or 44.7%, from December 31, 2023. The
increase was primarily driven by a $938.0 million increase in
commercial loans and a $294.9 million increase in consumer
loans.
The following table presents the composition of our loan
portfolio as of the dates indicated:
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
Commercial
Commercial and industrial
$
666,727
$
606,245
$
591,779
$
575,259
$
562,180
Commercial real estate
Construction, land and development
294,677
173,629
161,751
125,966
124,034
Multifamily
363,123
275,377
242,041
260,609
245,103
Non-owner occupied
967,025
686,071
647,776
565,979
569,354
Owner occupied
371,418
296,366
283,356
285,211
271,623
Total commercial real estate
1,996,243
1,431,443
1,334,924
1,237,765
1,210,114
Agricultural
Land
61,299
45,821
41,410
41,149
40,832
Production
63,008
39,436
40,549
36,436
36,141
Total agricultural
124,307
85,257
81,959
77,585
76,973
Total commercial
2,787,277
2,122,945
2,008,662
1,890,609
1,849,267
Consumer
Residential real estate
First lien
921,019
690,451
686,286
703,726
697,900
Construction
33,547
11,808
22,573
18,425
28,979
HELOC
162,509
134,301
126,211
120,501
118,315
Junior lien
44,060
36,445
36,323
36,381
35,819
Total residential real estate
1,161,135
873,005
871,393
879,033
881,013
Other consumer
44,122
36,393
35,737
29,833
29,303
Total consumer
1,205,257
909,398
907,130
908,866
910,316
Total loans
$
3,992,534
$
3,032,343
$
2,915,792
$
2,799,475
$
2,759,583
Deposits
Total deposits were $4.4 billion as of December 31, 2024, an
increase of $1.3 billion, or 41.4%, from December 31, 2023.
Interest-bearing deposits increased $1.1 billion and
noninterest-bearing deposits increased $175.4 million, from
December 31, 2023. The increase in total deposits was due primarily
to the recent acquisition of HMNF, expanded and new commercial
deposit relationships, and synergistic deposit growth. Synergistic
deposits were $973.6 million as of December 31, 2024, an increase
of $122.0 million, or 14.3%, from December 31, 2023.
The following table presents the composition of the Company’s
deposit portfolio as of the dates indicated:
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
Noninterest-bearing demand
$
903,466
$
657,547
$
701,428
$
692,500
$
728,082
Interest-bearing
Interest-bearing demand
1,220,173
1,034,694
1,003,585
938,751
840,711
Savings accounts
165,882
75,675
79,747
82,727
82,485
Money market savings
1,381,924
1,067,187
1,022,470
1,114,262
1,032,771
Time deposits
706,965
488,447
491,345
456,729
411,562
Total interest-bearing
3,474,944
2,666,003
2,597,147
2,592,469
2,367,529
Total deposits
$
4,378,410
$
3,323,550
$
3,298,575
$
3,284,969
$
3,095,611
Asset Quality
Total nonperforming assets were $62.9 million as of December 31,
2024, an increase of $54.1 million from December 31, 2023. $25.0
million of the increase was due to one construction, land and
development loan moving to nonaccrual status in the second quarter
of 2024. During the third and fourth quarters of 2024, management
elected to make protective advances totaling $5.4 million in order
for construction to continue on the project. Management is actively
working with the borrower on strategies to complete construction,
preserve value, and support repayment of the loan. One large
residential real estate relationship and one CRE non-owner occupied
loan moving to nonaccrual status during the third quarter of 2024
also contributed $13.6 million to the increase. A further $1.5
million of the increase in the fourth quarter of 2024 was driven by
loans acquired from HMNF. Nonperforming assets included one loan
over 90 days past due and still on accrual. This loan was renewed
subsequent to year end.
As of December 31, 2024, the allowance for credit losses on
loans was $59.9 million, or 1.50% of total loans, compared to $35.8
million, or 1.30% of total loans, as of December 31, 2023.
The following table presents selected asset quality data as of
and for the periods indicated:
As of and for the three months
ended
December 31,
September 30,
June 30,
March 31,
December 31,
(dollars in thousands)
2024
2024
2024
2024
2023
Nonaccrual loans
$
54,433
$
48,026
$
27,618
$
7,345
$
8,596
Accruing loans 90+ days past due
8,453
—
—
—
139
Total nonperforming loans
62,886
48,026
27,618
7,345
8,735
OREO and repossessed assets
—
—
—
3
32
Total nonperforming assets
$
62,886
$
48,026
$
27,618
$
7,348
$
8,767
Net charge-offs/(recoveries)
1,258
316
2,522
58
(238
)
Net charge-offs/(recoveries) to average
loans
0.13
%
0.04
%
0.36
%
0.01
%
(0.04
)%
Nonperforming loans to total loans
1.58
%
1.58
%
0.95
%
0.26
%
0.32
%
Nonperforming assets to total assets
1.19
%
1.18
%
0.63
%
0.17
%
0.22
%
Allowance for credit losses on loans to
total loans
1.50
%
1.29
%
1.31
%
1.31
%
1.30
%
Allowance for credit losses on loans to
nonperforming loans
95
%
82
%
139
%
498
%
410
%
For the fourth quarter of 2024, the Company had net charge-offs
of $1.3 million, compared to net charge-offs of $0.3 million for
the third quarter of 2024 and net recoveries of $0.2 million for
the fourth quarter of 2023. The quarter-over-quarter increase in
net charge-offs was driven by a $0.6 million charge-off of one
residential real estate loan and a $0.4 million charge-off of one
commercial and industrial loan in the fourth quarter of 2024.
The Company recorded a provision for credit losses of $12.0
million for the fourth quarter of 2024, compared to a provision for
credit losses of $1.7 million for the third quarter of 2024 and a
provision for credit losses of $1.5 million for the fourth quarter
of 2023. The provision for credit losses for the fourth quarter of
2024 was primarily driven by a $7.8 million day one provision for
credit losses and unfunded commitment reserve related to the
acquisition of HMNF, as well as loan growth and an increase in
nonaccrual loans.
The unearned fair value adjustments on acquired loan portfolios
were $70.6 million and $5.2 million as of December 31, 2024 and
2023, respectively.
Capital
Total stockholders’ equity was $498.7 million as of December 31,
2024, an increase of $129.6 million from December 31, 2023. This
change was primarily driven by the issuance of stock in connection
with to the acquisition of HMNF. Tangible book value per common
share (non-GAAP) decreased to $14.49 as of December 31, 2024, from
$15.46 as of December 31, 2023. Tangible common equity to tangible
assets (non-GAAP) decreased to 7.15% as of December 31, 2024, from
7.94% as of December 31, 2023. Common equity tier 1 capital to risk
weighted assets decreased to 9.98% as of December 31, 2024, from
11.82% as of December 31, 2023.
The following table presents our capital ratios as of the dates
indicated:
December 31,
September 30,
December 31,
2024
2024
2023
Capital Ratios(1)
Alerus Financial Corporation
Consolidated
Common equity tier 1 capital to risk
weighted assets
9.98
%
11.12
%
11.82
%
Tier 1 capital to risk weighted assets
10.18
%
11.38
%
12.10
%
Total capital to risk weighted assets
12.55
%
14.04
%
14.76
%
Tier 1 capital to average assets
8.68
%
9.30
%
10.57
%
Tangible common equity / tangible assets
(2)
7.15
%
8.11
%
7.94
%
Alerus Financial, N.A.
Common equity tier 1 capital to risk
weighted assets
10.19
%
10.73
%
11.40
%
Tier 1 capital to risk weighted assets
10.19
%
10.73
%
11.40
%
Total capital to risk weighted assets
11.44
%
11.98
%
12.51
%
Tier 1 capital to average assets
8.66
%
8.90
%
9.92
%
____________________
(1)
Capital ratios for the current quarter are
to be considered preliminary until the Call Report for Alerus
Financial, N.A. is filed.
(2)
Represents a non-GAAP financial measure.
See “Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP
Financial Measures.”
Conference Call
The Company will host a conference call at 11:00 a.m. Central
Time on Wednesday, January 29, 2024, to discuss its financial
results. Attendees are encouraged to register ahead of time for the
call at investors.alerus.com. The call can also be accessed via
telephone at +1 (833) 470-1428, using access code 092113. A
recording of the call and transcript will be available on the
Company’s investor relations website at investors.alerus.com
following the call.
About Alerus Financial Corporation
Alerus Financial Corporation (Nasdaq: ALRS) is a commercial
wealth bank and national retirement services provider with
corporate offices in Grand Forks, North Dakota, and the
Minneapolis-St. Paul, Minnesota metropolitan area. Through its
subsidiary, Alerus Financial, National Association, Alerus provides
diversified and comprehensive financial solutions to business and
consumer clients, including banking, wealth services, and
retirement and benefit plans and services. Alerus provides clients
with a primary point of contact to help fully understand their
unique needs and delivery channel preferences. Clients are provided
with competitive products, valuable insight, and sound advice
supported by digital solutions designed to meet their needs.
Alerus operates 29 banking and commercial wealth offices, with
locations in Grand Forks and Fargo, North Dakota; the
Minneapolis-St. Paul, Minnesota metropolitan area; Rochester,
Minnesota; Southern Minnesota area; Marshalltown, Iowa; Pewaukee,
Wisconsin; and Phoenix and Scottsdale, Arizona. Alerus also
operates a commercial wealth office in La Crosse, Wisconsin. The
Alerus Retirement and Benefit business serves advisors, brokers,
employers, and plan participants across the United States.
Non-GAAP Financial Measures
Some of the financial measures included in this press release
are not measures of financial performance recognized by U.S.
Generally Accepted Accounting Principles, or GAAP. These non-GAAP
financial measures include the ratio of tangible common equity to
tangible assets, tangible book value per common share, return on
average tangible common equity, efficiency ratio, pre-provision net
revenue, adjusted noninterest income, adjusted noninterest expense,
adjusted pre-provision net revenue, adjusted efficiency ratio,
adjusted net income, adjusted return on average assets, adjusted
return on average tangible common equity, net interest margin
(tax-equivalent), adjusted net interest margin (tax-equivalent),
and adjusted earnings per common share - diluted. Management uses
these non-GAAP financial measures in its analysis of its
performance, and believes financial analysts and investors
frequently use these measures, and other similar measures, to
evaluate capital adequacy and financial performance.
Reconciliations of non-GAAP disclosures used in this press release
to the comparable GAAP measures are provided in the accompanying
tables. Management, banking regulators, many financial analysts and
other investors use these measures in conjunction with more
traditional bank capital ratios to compare the capital adequacy of
banking organizations with significant amounts of goodwill or other
intangible assets, which typically stem from the use of the
purchase accounting method of accounting for mergers and
acquisitions.
These non-GAAP financial measures should not be considered in
isolation or as a substitute for total stockholders’ equity, total
assets, book value per share, return on average assets, return on
average equity, or any other measure calculated in accordance with
GAAP. Moreover, the manner in which the Company calculates these
non-GAAP financial measures may differ from that of other companies
reporting measures with similar names.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include, without limitation, statements concerning
plans, estimates, calculations, forecasts and projections with
respect to the anticipated future performance of Alerus Financial
Corporation. These statements are often, but not always, identified
by words such as “may”, “might”, “should”, “could”, “predict”,
“potential”, “believe”, “expect”, “continue”, “will”, “anticipate”,
“seek”, “estimate”, “intend”, “plan”, “projection”, “would”,
“annualized”, “target” and “outlook”, or the negative version of
those words or other comparable words of a future or
forward-looking nature. Examples of forward-looking statements
include, among others, statements the Company makes regarding our
projected growth, anticipated future financial performance,
financial condition, credit quality, management’s long-term
performance goals, and the future plans and prospects of Alerus
Financial Corporation.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding our
business, future plans and strategies, projections, anticipated
events and trends, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks and changes in circumstances that
are difficult to predict and many of which are outside of our
control. Our actual results and financial condition may differ
materially from those indicated in forward-looking statements.
Therefore, you should not rely on any of these forward-looking
statements. Important factors that could cause our actual results
and financial condition to differ materially from those indicated
in forward-looking statements include, among others, the following:
interest rate risk, including the effects of changes in interest
rates; effects on the U.S. economy resulting from the
implementation of policies proposed by the new presidential
administration, including tariffs, mass deportations, and tax
regulations; our ability to successfully manage credit risk,
including in the CRE portfolio, and maintain an adequate level of
allowance for credit losses; business and economic conditions
generally and in the financial services industry, nationally and
within our market areas, including the level and impact of
inflation rates and possible recession; the effects of recent
developments and events in the financial services industry,
including the large-scale deposit withdrawals over a short period
of time that resulted in several bank failures; our ability to
raise additional capital to implement our business plan; the
overall health of the local and national real estate market; credit
risks and risks from concentrations (by type of borrower,
geographic area, collateral, and industry) within our loan
portfolio; the concentration of large loans to certain borrowers
(including CRE loans); the level of nonperforming assets on our
balance sheet; our ability to implement our organic and acquisition
growth strategies, including the integration of HMNF which the
Company acquired in the fourth quarter of 2024; the commencement,
cost, and outcome of litigation and other legal proceedings and
regulatory actions against us or to which the Company may become
subject, including with respect to pending actions relating to the
Company’s previous ESOP fiduciary services commenced by government
or private parties; the impact of economic or market conditions on
our fee-based services; our ability to continue to grow our
retirement and benefit services business; our ability to continue
to originate a sufficient volume of residential mortgages; the
occurrence of fraudulent activity, breaches or failures of our or
our third-party vendors’ information security controls or
cybersecurity-related incidents, including as a result of
sophisticated attacks using artificial intelligence and similar
tools or as a result of insider fraud; interruptions involving our
information technology and telecommunications systems or
third-party servicers; potential losses incurred in connection with
mortgage loan repurchases; the composition of our executive
management team and our ability to attract and retain key
personnel; rapid and expensive technological change in the
financial services industry; increased competition in the financial
services industry, including from non-banks such as credit unions,
Fintech companies and digital asset service providers; our ability
to successfully manage liquidity risk, including our need to access
higher cost sources of funds such as fed funds purchased and
short-term borrowings; the concentration of large deposits from
certain clients, including those who have balances above current
FDIC insurance limits; the effectiveness of our risk management
framework; potential impairment to the goodwill the Company
recorded in connection with our past acquisitions, including the
acquisitions of Metro Phoenix Bank and HMNF; the extensive
regulatory framework that applies to us; the impact of recent and
future legislative and regulatory changes, including in response to
prior bank failures; new or revised accounting standards, as may be
adopted by state and federal regulatory agencies, the Financial
Accounting Standards Board, the Securities and Exchange Commission
(the “SEC”) or the Public Company Accounting Oversight Board;
fluctuations in the values of the securities held in our securities
portfolio, including as a result of changes in interest rates;
governmental monetary, trade and fiscal policies; risks related to
climate change and the negative impact it may have on our customers
and their businesses; severe weather and natural disasters, and
widespread disease or pandemics; acts of war or terrorism,
including ongoing conflicts in the Middle East and Russian invasion
of Ukraine, or other adverse external events; any material
weaknesses in our internal control over financial reporting;
changes to U.S. or state tax laws, regulations and governmental
policies concerning our general business, including changes in
interpretation or prioritization and changes in response to prior
bank failures; talent and labor shortages and employee turnover;
our success at managing the risks involved in the foregoing items;
and any other risks described in the “Risk Factors” sections of the
reports filed by Alerus Financial Corporation with the SEC.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. The Company undertakes no
obligation to publicly update any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or
otherwise.
Alerus Financial Corporation and
Subsidiaries
Consolidated Balance Sheets
(dollars in thousands, except share and
per share data)
December 31,
December 31,
2024
2023
Assets
(Unaudited)
Cash and cash equivalents
$
61,239
$
129,893
Investment securities
Trading, at fair value
3,309
—
Available-for-sale, at fair value
588,053
486,736
Held-to-maturity, at amortized cost (with
an allowance for credit losses on investments of $131 and $213,
respectively)
275,585
299,515
Loans held for sale
16,518
11,497
Loans
3,992,534
2,759,583
Allowance for credit losses on loans
(59,929
)
(35,843
)
Net loans
3,932,605
2,723,740
Land, premises and equipment, net
39,780
17,940
Operating lease right-of-use assets
13,438
5,436
Accrued interest receivable
20,075
15,700
Bank-owned life insurance
36,033
33,236
Goodwill
87,564
46,783
Other intangible assets
43,882
17,158
Servicing rights
7,918
2,052
Deferred income taxes, net
48,766
34,595
Other assets
90,543
83,432
Total assets
$
5,265,308
$
3,907,713
Liabilities and Stockholders’
Equity
Deposits
Noninterest-bearing
$
903,466
$
728,082
Interest-bearing
3,474,944
2,367,529
Total deposits
4,378,410
3,095,611
Short-term borrowings
238,960
314,170
Long-term debt
59,069
58,956
Operating lease liabilities
18,991
5,751
Accrued expenses and other liabilities
71,179
64,098
Total liabilities
4,766,609
3,538,586
Stockholders’ equity
Preferred stock, $1 par value, 2,000,000
shares authorized: 0 issued and outstanding
—
—
Common stock, $1 par value, 30,000,000
shares authorized: 25,344,803 and 19,734,077 issued and
outstanding
25,345
19,734
Additional paid-in capital
269,708
150,343
Retained earnings
277,012
272,705
Accumulated other comprehensive loss
(73,366
)
(73,655
)
Total stockholders’ equity
498,699
369,127
Total liabilities and stockholders’
equity
$
5,265,308
$
3,907,713
Alerus Financial Corporation and
Subsidiaries
Consolidated Statements of
Income
(dollars and shares in thousands, except
per share data)
Three months ended
Year ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Interest Income
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Loans, including fees
$
60,009
$
42,593
$
37,731
$
183,560
$
136,918
Investment securities
Taxable
5,737
4,596
6,040
19,745
24,262
Exempt from federal income taxes
166
169
182
679
740
Other
1,395
4,854
742
17,595
2,963
Total interest income
67,307
52,212
44,695
221,579
164,883
Interest Expense
Deposits
25,521
22,285
17,169
89,243
53,387
Short-term borrowings
2,837
6,706
5,292
22,584
20,976
Long-term debt
665
679
682
2,707
2,681
Total interest expense
29,023
29,670
23,143
114,534
77,044
Net interest income
38,284
22,542
21,552
107,045
87,839
Provision for credit losses
11,992
1,661
1,507
18,141
2,057
Net interest income after provision for
credit losses
26,292
20,881
20,045
88,904
85,782
Noninterest Income
Retirement and benefit services
16,488
16,144
15,317
64,365
65,294
Wealth management
7,010
6,684
5,940
26,171
21,855
Mortgage banking
3,673
2,573
1,279
10,469
8,411
Service charges on deposit accounts
644
488
341
1,976
1,280
Net gains (losses) on investment
securities
—
—
(24,643
)
—
(24,643
)
Other
6,059
2,474
2,557
11,950
8,032
Total noninterest income
33,874
28,363
791
114,931
80,229
Noninterest Expense
Compensation
26,657
21,058
19,214
87,311
76,290
Employee taxes and benefits
6,245
5,400
4,578
22,967
20,051
Occupancy and equipment expense
1,963
2,082
1,858
7,766
7,477
Business services, software and technology
expense
6,935
4,879
5,686
21,758
21,053
Intangible amortization expense
2,804
1,324
1,324
6,776
5,296
Professional fees and assessments
6,530
4,267
2,345
15,162
6,743
Marketing and business development
1,050
764
1,002
3,249
3,027
Supplies and postage
726
422
521
2,046
1,796
Travel
449
330
313
1,403
1,189
Mortgage and lending expenses
571
684
501
2,162
1,902
Other
2,093
1,237
1,312
5,641
5,333
Total noninterest expense
56,023
42,447
38,654
176,241
150,157
Income before income tax expense
4,143
6,797
(17,818
)
27,594
15,854
Income tax expense
921
1,590
(3,064
)
6,525
4,158
Net income
$
3,222
$
5,207
$
(14,754
)
$
21,069
$
11,696
Per Common Share Data
Earnings per common share
$
0.13
$
0.26
$
(0.73
)
$
1.00
$
0.59
Diluted earnings per common share
$
0.13
$
0.26
$
(0.73
)
$
0.98
$
0.58
Dividends declared per common share
$
0.20
$
0.20
$
0.19
$
0.79
$
0.75
Average common shares outstanding
24,857
19,788
19,761
21,047
19,922
Diluted average common shares
outstanding
25,144
20,075
19,996
21,321
20,143
Alerus Financial Corporation and
Subsidiaries
Non-GAAP to GAAP Reconciliations and
Calculation of Non-GAAP Financial Measures (unaudited)
(dollars and shares in thousands, except
per share data)
December 31,
September 30,
December 31,
2024
2024
2023
Tangible Common Equity to Tangible
Assets
Total common stockholders’ equity
$
498,699
$
386,486
$
369,127
Less: Goodwill
87,564
46,783
46,783
Less: Other intangible assets
43,882
13,186
17,158
Tangible common equity (a)
367,253
326,517
305,186
Total assets
5,265,308
4,084,640
3,907,713
Less: Goodwill
87,564
46,783
46,783
Less: Other intangible assets
43,882
13,186
17,158
Tangible assets (b)
5,133,862
4,024,671
3,843,772
Tangible common equity to tangible assets
(a)/(b)
7.15
%
8.11
%
7.94
%
Tangible Book Value Per Common
Share
Total common stockholders’ equity
$
498,699
$
386,486
$
369,127
Less: Goodwill
87,564
46,783
46,783
Less: Other intangible assets
43,882
13,186
17,158
Tangible common equity (c)
367,253
326,517
305,186
Total common shares issued and outstanding
(d)
25,345
19,790
19,734
Tangible book value per common share
(c)/(d)
$
14.49
$
16.50
$
15.46
Three months ended
Year ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Return on Average Tangible Common
Equity
Net income
$
3,222
$
5,207
$
(14,754
)
$
21,069
$
11,696
Add: Intangible amortization expense (net
of tax)(1)
2,215
1,046
1,046
5,353
4,184
Net income, excluding intangible
amortization (e)
5,437
6,253
(13,708
)
26,422
15,880
Average total equity
478,128
375,229
349,382
397,747
358,268
Less: Average goodwill
84,414
46,783
46,783
56,242
46,959
Less: Average other intangible assets (net
of tax)(1)
34,107
10,933
14,067
17,534
15,624
Average tangible common equity (f)
359,607
317,513
288,532
323,971
295,685
Return on average tangible common equity
(e)/(f)
6.01
%
7.83
%
(18.85
)%
8.16
%
5.37
%
Efficiency Ratio
Noninterest expense
$
56,023
$
42,447
$
38,654
$
176,241
$
150,157
Less: Intangible amortization expense
2,804
1,324
1,324
6,776
5,296
Adjusted noninterest expense (g)
53,219
41,123
37,330
169,465
144,861
Net interest income
38,284
22,542
21,552
107,045
87,839
Noninterest income
33,874
28,363
791
114,931
80,229
Tax-equivalent adjustment
385
314
226
1,202
671
Total tax-equivalent revenue (h)
72,543
51,219
22,569
223,178
168,739
Efficiency ratio (g)/(h)
73.36
%
80.29
%
165.40
%
75.93
%
85.85
%
____________________
(1)
Items calculated after-tax utilizing a
marginal income tax rate of 21.0%.
Alerus Financial Corporation and
Subsidiaries
Non-GAAP to GAAP Reconciliations and
Calculation of Non-GAAP Financial Measures (unaudited)
(dollars and shares in thousands, except
per share data)
Three months ended
Year ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Pre-Provision Net Revenue
Net interest income
$
38,284
$
22,542
$
21,552
$
107,045
$
87,839
Add: Noninterest income
33,874
28,363
791
114,931
80,229
Less: Noninterest expense
56,023
42,447
38,654
176,241
150,157
Pre-provision net revenue
$
16,135
$
8,458
$
(16,311
)
$
45,735
$
17,911
Adjusted Noninterest Income
Noninterest income
$
33,874
$
28,363
$
791
$
114,931
$
80,229
Less: Adjusted noninterest income
items
BOLI mortality proceeds (non-taxable)
—
—
—
—
1,196
Gain on sale of ESOP trustee business
—
—
—
—
2,775
Net gains (losses) on investment
securities
—
—
(24,643
)
—
(24,643
)
Net gain on sale of premises and
equipment
3,459
476
—
3,941
50
Total adjusted noninterest income items
(i)
3,459
476
(24,643
)
3,941
(20,622
)
Adjusted noninterest income (j)
$
30,415
$
27,887
$
25,434
$
110,990
$
100,851
Adjusted Noninterest Expense
Noninterest expense
$
56,023
$
42,447
$
38,654
$
176,241
$
150,157
Less: Adjusted noninterest expense
items
HMNF merger- and acquisition-related
expenses
3,295
1,661
—
5,546
—
Severance and signing bonus expense
2,276
31
422
2,901
1,897
Total adjusted noninterest expense items
(k)
5,571
1,692
422
8,447
1,897
Adjusted noninterest expense (l)
$
50,452
$
40,755
$
38,232
$
167,794
$
148,260
Adjusted Pre-Provision Net
Revenue
Net interest income
$
38,284
$
22,542
$
21,552
$
107,045
$
87,839
Add: Adjusted noninterest income (j)
30,415
27,887
25,434
110,990
100,851
Less: Adjusted noninterest expense (l)
50,452
40,755
38,232
167,794
148,260
Adjusted pre-provision net revenue
$
18,247
$
9,674
$
8,754
$
50,241
$
40,430
Adjusted Efficiency Ratio
Adjusted noninterest expense (l)
$
50,452
$
40,755
$
38,232
$
167,794
$
148,260
Less: Intangible amortization expense
2,804
1,324
1,324
6,776
5,296
Adjusted noninterest expense for
efficiency ratio (m)
47,648
39,431
36,908
161,018
142,964
Tax-equivalent revenue
Net interest income
38,284
22,542
21,552
107,045
87,839
Add: Adjusted noninterest income (j)
30,415
27,887
25,434
110,990
100,851
Add: Tax-equivalent adjustment
385
314
226
1,202
671
Total tax-equivalent revenue (n)
69,084
50,743
47,212
219,237
189,361
Adjusted efficiency ratio (m)/(n)
68.97
%
77.71
%
78.18
%
73.44
%
75.50
%
Adjusted Net Income
Net income
$
3,222
$
5,207
$
(14,754
)
$
21,069
$
11,696
Less: Adjusted noninterest income items
(net of tax)(1) (i)
2,733
376
(19,468
)
3,113
(16,040
)
Add: HMNF day one provision for credit
losses and unfunded commitments (net of tax)(1)
6,140
—
—
6,140
—
Add: Adjusted noninterest expense items
(net of tax)(1) (k)
4,401
1,337
333
6,673
1,499
Adjusted net income (o)
$
11,030
$
6,168
$
5,047
$
30,769
$
29,235
Adjusted Return on Average
Assets
Average total assets (p)
$
5,272,816
$
4,298,080
$
3,868,206
$
4,503,493
$
3,817,017
Adjusted return on average assets
(o)/(p)
0.83
%
0.57
%
0.52
%
0.68
%
0.77
%
Adjusted Return on Average Tangible
Common Equity
Adjusted net income (o)
$
11,030
$
6,168
$
5,047
$
30,769
$
29,235
Add: Intangible amortization expense (net
of tax)(1)
2,215
1,046
1,046
5,353
4,184
Adjusted net income, excluding intangible
amortization (q)
13,245
7,214
6,093
36,122
33,419
Average total equity
478,128
375,229
349,382
397,747
358,268
Less: Average goodwill
84,414
46,783
46,783
56,242
46,959
Less: Average other intangible assets (net
of tax)
34,107
10,933
14,067
17,534
15,624
Average tangible common equity (r)
359,607
317,513
288,532
323,971
295,685
Return on average tangible common equity
(q)/(r)
14.65
%
9.04
%
8.38
%
11.15
%
11.30
%
____________________
(1)
Items calculated after-tax utilizing a
marginal income tax rate of 21.0%.
Alerus Financial Corporation and
Subsidiaries
Non-GAAP to GAAP Reconciliations and
Calculation of Non-GAAP Financial Measures (unaudited)
(dollars and shares in thousands, except
per share data)
Three months ended
Year ended
December 31,
September 30,
December 31,
December 31,
December 31,
2024
2024
2023
2024
2023
Adjusted Net Interest Margin
(Tax-Equivalent)
Net interest income
$
38,284
$
22,542
$
21,552
$
107,045
$
87,839
Less: BTFP cash interest income
—
4,113
—
12,494
—
Add: BTFP interest expense
—
3,717
—
11,291
—
Less: Purchase accounting net
accretion
4,692
152
521
6,121
1,490
Net interest income excluding BTFP
impact
33,592
21,994
21,031
99,721
86,349
Add: Tax equivalent adjustment for loans
and securities
385
314
226
1,202
671
Adjusted net interest income (s)
$
33,977
$
22,308
$
21,257
$
100,923
$
87,020
Interest earning assets
4,808,230
4,077,716
3,645,184
4,221,832
3,592,476
Less: Average cash proceeds balance from
BTFP
—
303,043
—
231,366
—
Add: Change in unearned purchase
accounting discount
4,692
152
521
6,121
1,490
Adjusted interest earning assets (t)
$
4,812,922
$
3,774,825
$
3,645,705
$
3,996,587
$
3,593,966
Adjusted net interest margin
(tax-equivalent) (s)/(t)
2.81
%
2.35
%
2.31
%
2.53
%
2.42
%
Adjusted Earnings Per Common Share -
Diluted
Adjusted net income (o)
$
11,030
$
6,168
$
5,047
$
30,769
$
29,235
Less: Dividends and undistributed earnings
allocated to participating securities
(16
)
24
(247
)
79
(5
)
Net income available to common
stockholders (u)
11,046
6,144
5,294
30,690
29,240
Weighted-average common shares outstanding
for diluted earnings per share (v)
25,144
20,075
19,996
21,321
20,143
Adjusted earnings per common share -
diluted (u)/(v)
$
0.44
$
0.31
$
0.26
$
1.44
$
1.45
____________________
(1)
Items calculated after-tax utilizing a
marginal income tax rate of 21.0%.
Alerus Financial Corporation and
Subsidiaries
Analysis of Average Balances, Yields,
and Rates (unaudited)
(dollars in thousands)
Three months ended
Year ended
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Average
Average
Average
Average
Average
Average
Yield/
Average
Yield/
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Rate
Balance
Rate
Balance
Rate
Balance
Rate
Balance
Rate
Interest Earning Assets
Interest-bearing deposits with banks
$
74,054
5.35
%
$
326,350
5.47
%
$
33,920
3.23
%
$
299,625
5.39
%
$
35,395
3.40
%
Investment securities(1)
883,116
2.68
749,062
2.55
921,555
2.70
791,111
2.60
983,545
2.56
Loans held for sale
15,409
5.60
15,795
3.20
11,421
6.01
14,180
5.90
13,217
5.46
Loans
Commercial and industrial
616,356
7.28
593,685
7.26
538,694
6.90
588,269
7.23
527,795
6.63
CRE − Construction, land and
development
250,869
6.33
184,611
5.68
117,765
8.12
172,700
6.77
99,315
7.66
CRE − Multifamily
351,804
6.50
242,558
5.62
227,453
5.48
272,125
5.87
185,262
5.25
CRE − Non-owner occupied
1,002,857
6.68
663,539
5.88
519,021
5.67
712,734
6.14
498,884
5.28
CRE − Owner occupied
293,169
6.56
289,963
5.41
266,274
5.18
286,540
5.71
256,690
5.07
Agricultural − Land
59,400
5.73
42,162
4.93
41,064
4.82
45,729
5.10
39,832
4.78
Agricultural − Production
58,999
7.36
40,964
6.84
34,480
6.64
43,361
6.89
30,663
6.48
RRE − First lien
904,414
4.50
689,382
3.98
691,152
3.95
747,874
4.17
673,118
3.80
RRE − Construction
31,722
9.74
16,792
3.86
32,958
4.97
22,832
6.58
33,508
4.98
RRE − HELOC
153,344
7.60
130,705
8.00
118,722
8.37
131,617
8.02
118,653
8.07
RRE − Junior lien
47,041
6.25
36,818
5.74
36,415
6.21
38,982
6.24
35,382
5.83
Other consumer
44,959
7.19
37,768
6.76
29,510
6.33
36,252
6.81
35,971
6.06
Total loans(1)
3,814,934
6.27
2,968,947
5.73
2,653,508
5.64
3,099,015
5.93
2,535,073
5.39
Federal Reserve/FHLB stock
20,717
7.66
17,562
8.25
24,780
7.48
17,901
8.12
25,246
6.98
Total interest earning assets
4,808,230
5.60
4,077,716
5.12
3,645,184
4.89
4,221,832
5.28
3,592,476
4.61
Noninterest earning assets
464,586
220,364
223,022
281,661
224,541
Total assets
$
5,272,816
$
4,298,080
$
3,868,206
$
4,503,493
$
3,817,017
Interest-Bearing Liabilities
Interest-bearing demand deposits
$
1,209,674
1.98
%
$
1,003,595
2.31
%
$
798,634
1.65
%
$
1,010,888
2.12
%
$
768,238
1.29
%
Money market and savings deposits
1,520,616
3.15
1,146,896
3.82
1,092,656
3.53
1,250,939
3.60
1,118,815
2.92
Time deposits
698,358
4.24
485,533
4.46
383,715
4.27
518,826
4.39
303,746
3.58
Fed funds purchased and BTFP
22,012
4.93
327,543
4.97
189,568
5.71
249,180
4.95
287,768
5.31
FHLB short-term advances
200,000
5.10
200,000
5.20
200,000
5.09
200,000
5.12
113,973
5.00
Long-term debt
59,055
4.48
59,027
4.58
58,943
4.59
59,013
4.59
58,900
4.55
Total interest-bearing liabilities
3,709,715
3.11
3,222,594
3.66
2,723,516
3.37
3,288,846
3.48
2,651,440
2.91
Noninterest-Bearing Liabilities and
Stockholders' Equity
Noninterest-bearing deposits
847,153
628,114
719,895
704,463
737,365
Other noninterest-bearing liabilities
237,820
72,143
75,413
112,437
69,944
Stockholders’ equity
478,128
375,229
349,382
397,747
358,268
Total liabilities and stockholders’
equity
$
5,272,816
$
4,298,080
$
3,868,206
$
4,503,493
$
3,817,017
Net interest rate spread
2.49
%
1.46
%
1.52
%
1.80
%
1.70
%
Net interest margin, tax-equivalent
(1)
3.20
%
2.23
%
2.37
%
2.56
%
2.46
%
____________________
(1)
Taxable-equivalent adjustment was
calculated utilizing a marginal income tax rate of 21.0%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250128310319/en/
Alan A. Villalon, Chief Financial Officer 952.417.3733
(Office)
Alerus Financial (NASDAQ:ALRS)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
Alerus Financial (NASDAQ:ALRS)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
