Alerus Financial Corporation (ALRS)
NASDAQ:ALRS
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Alerus Financial
(NASDAQ:ALRS)
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Rating:69Neutral
Price Target:
$31.00
▲(21.00% Upside)
Action:Downgraded
Date:05/23/26
ALRS scores strongest on valuation (low P/E and a ~3% dividend) and improving fundamentals (better TTM margins, cash flow, and leverage). The earnings outlook is supportive with clear guidance for revenue growth and ROA improvement, though credit/margin risks remain. Technically, the uptrend is intact but overbought indicators temper the near-term score.
Positive Factors
Improved Cash Generation
Material strengthening in free cash flow and operating cash flow sustains internal funding for loan growth, investments, dividends and buybacks. Higher cash conversion improves earnings quality and reduces reliance on external funding, supporting durable capital allocation over the next several quarters.
Negative Factors
Concentrated Remaining Nonaccrual
A single large unresolved nonaccrual creates outsized credit risk and valuation uncertainty; materially concentrated problem loans can produce episodic charge-offs or further reserve actions, disrupting earnings and capital planning until fully resolved or sold.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
Material strengthening in free cash flow and operating cash flow sustains internal funding for loan growth, investments, dividends and buybacks. Higher cash conversion improves earnings quality and reduces reliance on external funding, supporting durable capital allocation over the next several quarters.
Read all positive factors
Alerus Financial (ALRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$718.18M
Dividend Yield3.71%
Average Volume (3M)86.42K
Price to Earnings (P/E)26.8
Beta (1Y)0.98
Revenue Growth-6.85%
EPS Growth-13.03%
CountryUS
Employees846
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.07
Shares Outstanding25,128,647
10 Day Avg. Volume80,477
30 Day Avg. Volume86,419
Financial Highlights & Ratios
PEG Ratio-1.84
Price to Book (P/B)1.01
Price to Sales (P/S)1.74
P/FCF Ratio9.72
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue2.70
Enterprise Value/Gross Profit3.82
Enterprise Value/Ebitda18.28
Forecast
1Y Price Target
$27.75Price Target Upside8.31% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.91
Revenue Forecast (FY)$306.43M
Alerus Financial Business Overview & Revenue Model
Company Description
Alerus Financial Corporation, through its subsidiary, Alerus Financial, National Association, provides various financial services to businesses and consumers. The company operates in four segments: Banking, Retirement and Benefit Services, Wealth ...
How the Company Makes Money
Alerus primarily makes money through a mix of spread-based banking income and fee-based advisory/administration income. On the banking side, a major earnings driver is net interest income: the company earns interest and fees on loans and other int...
Alerus Financial Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call portrayed a predominantly positive trajectory: strong profitability, margin expansion, improving credit metrics, a strengthened funding profile, and disciplined capital returns. Management acknowledged a few near-term headwinds—most notably a single large charge-off, one remaining sizable nonaccrual still in resolution, softer linked-quarter fee/AUM trends, and potential margin sensitivity as purchase accounting accretion rolls off and deposit competition intensifies. However, the magnitude and number of positive developments (earnings, capital, fee diversification, liquidity, cost control and clear forward guidance) outweigh the discrete challenges, which management described as largely episodic or manageable.Positive Updates
Strong Quarterly Earnings and Profitability
Reported net income of $23.0 million and adjusted diluted EPS of $0.89. Return on average assets was 1.79% and adjusted return on average tangible common equity was ~21.96% (~22%), demonstrating strong profitability and earnings power.
Negative Updates
Elevated Net Charge-Offs Driven by Single Event
Net charge-offs were reported at 71 basis points (0.71%), primarily driven by a single $6.4 million charge-off on a previously identified C&I relationship that had been on nonaccrual. That charged-down relationship still retains remaining reserves (~78%).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Earnings and Profitability
Reported net income of $23.0 million and adjusted diluted EPS of $0.89. Return on average assets was 1.79% and adjusted return on average tangible common equity was ~21.96% (~22%), demonstrating strong profitability and earnings power.
Read all positive updates
Company Guidance
Alerus’s 2026 guidance calls for mid‑single‑digit loan growth (despite more than $400M of contractual maturities) and low‑single‑digit deposit growth, a full‑year net interest margin of approximately 3.55%–3.65% (reported, including purchase‑accounting accretion) with roughly 20 bps of accretion expected in Q2 and a March exit NIM of ~3.65%; adjusted noninterest income is expected to grow in the mid‑single‑digits (swap fee income excluded), total net revenue to grow in the mid‑single‑digits, noninterest expense to grow in the low‑single‑digits (with a modest seasonal uptick in Q2), full‑year return on assets to exceed 1.25%, and sensitivity of roughly +3–5 bps to NIM for each 25‑bp rate cut; the company notes ample liquidity (~$2.7B) to fund loan growth in excess of deposit growth.Alerus Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
56
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 330.40M | 327.86M | 338.29M | 243.26M | 224.58M | 235.79M |
| Gross Profit | 233.41M | 220.16M | 205.61M | 164.16M | 208.77M | 233.74M |
| EBITDA | 48.75M | 39.88M | 38.04M | 24.36M | 60.42M | 77.89M |
| Net Income | 27.10M | 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 | 128.83M | 68.95M | 652.60M | 616.63M | 775.57M | 1.10B |
| Total Debt | 301.80M | 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 | 574.69M | 564.93M | 495.41M | 369.13M | 356.87M | 359.40M |
Cash Flow | ||||||
| Free Cash Flow | 86.61M | 58.83M | 16.59M | 25.71M | 101.18M | 148.13M |
| Operating Cash Flow | 87.63M | 67.53M | 28.96M | 28.98M | 102.97M | 149.83M |
| Investing Cash Flow | 123.60M | 76.55M | -330.03M | -51.99M | -292.62M | -417.66M |
| Financing Cash Flow | -165.38M | -138.13M | 232.42M | 94.76M | 5.59M | 337.18M |
Alerus Financial Technical Analysis
Positive
25.62
Price Trends
25.84
Positive
25.00
Positive
23.29
Positive
Market Momentum
0.80
Negative
68.52
Neutral
89.36
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 25.62 is below the 20-day moving average (MA) of 27.45, below the 50-day MA of 25.84, and above the 200-day MA of 23.29, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 89.36 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $691.20M | 10.99 | 10.76% | 2.66% | 4.05% | 26.62% | |
69 Neutral | $718.18M | 26.79 | 4.87% | 3.71% | -6.85% | -13.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $620.97M | 11.77 | 9.79% | 7.17% | 25.15% | ― | |
57 Neutral | $630.94M | 12.58 | 10.76% | 0.84% | 5.79% | 76.61% |
* Financial Sector Average
ALRS
Alerus Financial
28.58
8.47
42.11%
HIFS
Hingham Institution For Savings
289.39
49.44
20.60%
SHBI
Shore Bancshares
20.66
6.53
46.21%
WASH
Washington Bancorp
32.57
7.17
28.25%
Alerus Financial Corporate Events
DividendsFinancial Disclosures
Alerus Financial Raises Quarterly Dividend, Signals Ongoing Confidence
Positive
May 22, 2026
On May 22, 2026, Alerus Financial Corp. reported that its board had declared a regular quarterly cash dividend of $0.22 per common share on May 21, 2026, representing a 4.76% increase from the dividend paid a year earlier. The dividend will be pai...
Business Operations and StrategyFinancial Disclosures
Alerus Financial Sells Largest Nonperforming Loan Portfolio
Positive
May 19, 2026
On May 19, 2026, Alerus Financial Corporation announced it had closed the sale of three nonperforming loans tied to a construction, land and development relationship with a net book balance of $33.6 million as of March 31, 2026, the largest nonper...
Executive/Board ChangesShareholder Meetings
Alerus Financial Shareholders Back Board, Pay and Auditor
Positive
May 15, 2026
At Alerus Financial Corporation’s 2026 Annual Meeting of Stockholders, held on May 14, 2026, shareholders representing about 80.81% of the company’s outstanding common stock participated, establishing a quorum and underscoring solid in...
Business Operations and StrategyStock BuybackFinancial Disclosures
Alerus Financial Posts Strong Turnaround in First-Quarter Results
Positive
Apr 29, 2026
On April 29, 2026, Alerus Financial reported first-quarter 2026 net income of $23.0 million, or $0.89 per diluted share, reversing a $33.1 million loss in the prior quarter and improving on $13.3 million of profit a year earlier. Management highli...
Business Operations and StrategyPrivate Placements and Financing
Alerus Financial Extends Subordinated Note, Updates Interest Terms
Positive
Mar 31, 2026
On March 30, 2021, Alerus Financial Corporation issued a $50 million subordinated note due 2031 to the Bank of North Dakota at par, using the proceeds for general corporate purposes, including bolstering regulatory capital ratios and investing in ...
Dividends
Alerus Financial Raises Quarterly Dividend, Signals Ongoing Confidence
Positive
Feb 26, 2026
On February 26, 2026, Alerus Financial Corporation announced that its board of directors had declared a regular quarterly cash dividend of $0.21 per common share, authorized on February 25, 2026. The payout represents a 5% increase over the divide...
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.