Alerus Financial Corp
NASDAQ:ALRS
Alerus Financial Corp
Alerus Financial Corp. engages in the provision of business and consumer financial products and services through its subsidiary, Alerus Financial NA. The company is headquartered in Grand Forks, North Dakota and currently employs 779 full-time employees. The company went IPO on 2001-07-27. Through its subsidiary, Alerus Financial, National Association the Company provides diversifies financial solutions to businesses and consumers. The firm operates through four segments: banking, retirement and benefit services, wealth management, and mortgage. The banking segment offers loans, deposits, cash management, and treasury services through approximately 14 offices in North Dakota, Minnesota, and Arizona. These products and services are supported through various digital applications. Retirement and benefit services segment provides various services, including recordkeeping and administration services to qualified retirement plans; ESOP trustee, recordkeeping and administration; investment fiduciary services to retirement plans; HSA, flex spending account, and government health insurance program recordkeeping and administration services to employers; payroll and human resource information system.
Alerus Financial Corp. engages in the provision of business and consumer financial products and services through its subsidiary, Alerus Financial NA. The company is headquartered in Grand Forks, North Dakota and currently employs 779 full-time employees. The company went IPO on 2001-07-27. Through its subsidiary, Alerus Financial, National Association the Company provides diversifies financial solutions to businesses and consumers. The firm operates through four segments: banking, retirement and benefit services, wealth management, and mortgage. The banking segment offers loans, deposits, cash management, and treasury services through approximately 14 offices in North Dakota, Minnesota, and Arizona. These products and services are supported through various digital applications. Retirement and benefit services segment provides various services, including recordkeeping and administration services to qualified retirement plans; ESOP trustee, recordkeeping and administration; investment fiduciary services to retirement plans; HSA, flex spending account, and government health insurance program recordkeeping and administration services to employers; payroll and human resource information system.
Record Earnings: Alerus reported record adjusted earnings for 2025, with an adjusted ROA of 1.35% and core ROA of 1.62%, surpassing targets after completing its largest acquisition.
Balance Sheet Repositioning: The company executed a major balance sheet shift, selling low-yield securities and deleveraging to improve earnings power and reduce risk.
Loan & Deposit Growth: For 2026, Alerus expects mid-single-digit loan growth and low-single-digit deposit growth, with a continued focus on building C&I relationships and disciplined credit trimming.
Net Interest Margin Guidance: Net interest margin for 2026 is projected at 3.5% to 3.6%, with gradual improvement expected throughout the year.
Fee Income Strength: Core fee revenues grew 7% year-over-year, staying over 40% of total revenues, driven by strong performance in retirement and wealth divisions.
Expense Control: Noninterest expenses are expected to grow at a low-single-digit rate in 2026, even as the company invests in technology and talent.
Credit Quality: Nonperforming assets increased slightly due to a specific multifamily loan, but reserves remain robust and resolution is expected in the first half of 2026.
Capital Position: Tangible common equity ratio improved to 8.72%. The company maintains ample liquidity and a strong capital base to support future growth.
