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Alerus Financial
(NASDAQ:ALRS)
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Rating:66Neutral
Price Target:
$35.00
▲(5.84% Upside)
Action:Reiterated
Date:10/28/26
ALRS scores in the mid-range primarily because a strong, upbeat earnings call and improved guidance (profitability, margins, credit quality, and capital returns) are balanced by only moderate underlying financial statement strength and a still-subdued returns profile over the longer trend. Technicals are mixed/neutral and valuation is a headwind due to the high P/E, partially offset by the dividend yield.
Positive Factors
Diversified revenue model
A meaningful fee-income contribution alongside banking revenue reduces reliance on lending spreads alone. The combination of retirement, benefit and wealth services can broaden customer relationships, support recurring revenue, and make earnings more resilient across changing rate environments.
Negative Factors
Subdued shareholder returns
Although leverage has improved, the balance sheet is not yet producing historically strong returns for shareholders. Persistently low ROE would limit internal capital compounding and suggests that earnings efficiency and asset profitability still have meaningful ground to recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue model
A meaningful fee-income contribution alongside banking revenue reduces reliance on lending spreads alone. The combination of retirement, benefit and wealth services can broaden customer relationships, support recurring revenue, and make earnings more resilient across changing rate environments.
Read all positive factors
Alerus Financial (ALRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$803.41M
Dividend Yield2.67%
Average Volume (3M)174.99K
Price to Earnings (P/E)29.3
Beta (1Y)0.91
Revenue Growth-11.76%
EPS Growth-35.46%
CountryUS
Employees843
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.10
Shares Outstanding24,927,526
10 Day Avg. Volume125,353
30 Day Avg. Volume174,988
Financial Highlights & Ratios
PEG Ratio-1.83
Price to Book (P/B)1.01
Price to Sales (P/S)1.74
P/FCF Ratio9.72
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue3.39
Enterprise Value/Gross Profit4.70
Enterprise Value/Ebitda21.14
Forecast
1Y Price Target
$35.33Price Target Upside6.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.02
Revenue Forecast (FY)$311.08M
Alerus Financial Business Overview & Revenue Model
Company Description
Alerus Financial Corporation, operating primarily through its subsidiary Alerus Financial, National Association, delivers a broad spectrum of financial services to both commercial clients and individual consumers. The company organizes its operati...
How the Company Makes Money
Alerus Financial makes money primarily through a combination of (1) bank net interest income and (2) fee-based revenues from wealth management and retirement/benefit services. Net interest income is earned by taking deposits and other funding sour...
Alerus Financial Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call conveyed robust improvement across profitability, credit quality and capital metrics, with multiple signs of strategic progress (EPS growth, strong ROA/ROTCE, record retirement/wealth assets, significant reduction in nonperforming assets and continued shareholder returns). Offsetting items were manageable: a sequential deposit decline (seasonal), weaker mortgage originations, modest expense increases tied to strategic hiring and remediation, some OREO-related holding costs, and an anticipated reduction in purchase accounting accretion. Overall the positives (strong earnings, material credit improvement, diversified fee streams, capital returns and sizable commercial pipeline) substantially outweigh the limited near-term headwinds.Positive Updates
Strong Earnings and Returns
Reported EPS $0.81 (adjusted EPS $0.80); return on average assets (ROA) 1.6%; return on average tangible common equity ~19.33% (nearly 20%), demonstrating strong profitability and earnings power.
Negative Updates
Deposit Decline and Cost Pressure Risk
Total deposits decreased $156 million (3.6%) from March 31, 2026, primarily seasonal outflows of public depositor funds; management expects some upward pressure on deposit costs given potential rate hikes and recent sub-debt refinancing that modestly increased funding costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Earnings and Returns
Reported EPS $0.81 (adjusted EPS $0.80); return on average assets (ROA) 1.6%; return on average tangible common equity ~19.33% (nearly 20%), demonstrating strong profitability and earnings power.
Read all positive updates
Company Guidance
Alerus said its 2026 guidance has improved and now targets mid‑single‑digit loan growth, low‑single‑digit deposit growth, full‑year reported net interest margin of approximately 3.7%–3.8% (core margin expected to remain stable in the mid‑3% range), revenue growth of mid‑single digits, noninterest expense growth of low‑ to mid‑single digits, and a full‑year return on assets above 1.25%; management also noted lower mortgage originations given market‑priced rate‑hike risk, expects contractual purchase‑accounting accretion of roughly $1.9 million in 3Q (with accretion declining to only a few hundred thousand dollars per quarter thereafter), and affirmed continued capital returns alongside strong liquidity and capital ratios.Alerus Financial Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 332.73M | 327.86M | 338.29M | 243.26M | 224.58M | 235.79M |
| Gross Profit | 239.72M | 220.16M | 205.61M | 164.16M | 208.77M | 233.74M |
| EBITDA | 53.34M | 39.88M | 38.04M | 24.36M | 60.42M | 77.89M |
| Net Income | 27.71M | 17.44M | 17.78M | 11.70M | 40.01M | 52.68M |
Balance Sheet | ||||||
| Total Assets | 5.29B | 5.23B | 5.26B | 3.91B | 3.78B | 3.39B |
| Cash, Cash Equivalents and Short-Term Investments | 109.01M | 68.95M | 652.60M | 616.63M | 775.57M | 1.10B |
| Total Debt | 446.99M | 440.55M | 317.02M | 378.88M | 442.82M | 63.21M |
| Total Liabilities | 4.71B | 4.67B | 4.77B | 3.54B | 3.42B | 3.03B |
| Stockholders Equity | 583.14M | 564.93M | 495.41M | 369.13M | 356.87M | 359.40M |
Cash Flow | ||||||
| Free Cash Flow | 99.67M | 58.83M | 16.59M | 25.71M | 101.18M | 148.13M |
| Operating Cash Flow | 95.54M | 67.53M | 28.96M | 28.98M | 102.97M | 149.83M |
| Investing Cash Flow | 83.04M | 76.55M | -330.03M | -51.99M | -292.62M | -417.66M |
| Financing Cash Flow | -150.47M | -138.13M | 232.42M | 94.76M | 5.59M | 337.18M |
Alerus Financial Technical Analysis
Positive
33.07
Price Trends
32.25
Negative
31.83
Positive
28.34
Positive
Market Momentum
-0.04
Negative
54.68
Neutral
90.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALRS, the sentiment is Positive. The current price of 33.07 is above the 20-day moving average (MA) of 31.67, above the 50-day MA of 32.25, and above the 200-day MA of 28.34, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 90.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALRS.
Alerus Financial Risk Analysis
Alerus Financial disclosed 76 risk factors in its most recent earnings report. Alerus Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alerus Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $819.04M | 9.13 | 15.71% | 0.33% | ― | ― | |
74 Outperform | $813.89M | 13.38 | 3.42% | 0.44% | 10.63% | 59.91% | |
71 Outperform | $824.26M | 10.79 | 10.24% | 2.96% | 0.24% | 12.12% | |
70 Outperform | $745.58M | 11.67 | 11.25% | 1.19% | -2.89% | 10.50% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $803.41M | 29.30 | 4.88% | 2.67% | -11.76% | -35.46% | |
63 Neutral | $794.91M | 10.65 | 12.91% | 1.41% | 3.10% | 24.24% |
* Financial Sector Average
ALRS
Alerus Financial
32.23
11.93
58.75%
PGC
Peapack-Gladstone Financial
45.91
20.35
79.65%
SMBC
Southern Missouri Bancorp
72.30
20.25
38.91%
HTB
Hometrust Bancshares
47.14
7.77
19.72%
IBCP
Independent Bank
37.13
7.32
24.55%
RCBC
River City Bank
57.68
17.93
45.12%
Alerus Financial Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Alerus Financial Posts Strong Q3 2026 Earnings Performance
Positive
Oct 28, 2026
On October 28, 2026, Alerus Financial reported third-quarter 2026 net income of $19.2 million, or $0.76 per diluted share, down from $20.9 million in the second quarter but above the $16.9 million earned a year earlier. The quarter featured solid ...
Stock BuybackDividends
Alerus Financial Raises Dividend and Expands Buyback Program
Positive
Aug 27, 2026
On August 27, 2026, Alerus Financial Corporation announced that its board had declared a regular quarterly cash dividend of $0.22 per common share, approved on August 26, 2026 and representing a 4.76% increase over the dividend paid a year earlier...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Alerus Financial Posts Solid Second-Quarter 2026 Results
Positive
Jul 29, 2026
On July 29, 2026, Alerus Financial Corporation reported second-quarter 2026 net income of $20.9 million, or $0.81 per diluted common share, down from $23.0 million in the first quarter but slightly above the $20.3 million earned a year earlier. Ma...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.