For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Alerus (ALRS) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.Alerus is a member of our Finance group, which includes 851 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The ...

Core Viewpoint - Alerus (ALRS) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The trend in estimate revisions indicates growing analyst optimism regarding Alerus's earnings prospects, which is expected to positively impact its stock price [2]. - The current quarter's earnings estimate is projected at $0.58 per share, reflecting a year-over-year increase of +3.6%. The Zacks Consensus Estimate has risen by 7.03% in the last 30 days, with two estimates increasing and no negative revisions [6]. - For the full year, Alerus is expected to earn $2.59 per share, which is a decrease of -6.8% from the previous year. However, three estimates have been revised upward in the past month, with no negative revisions [7]. Zacks Rank and Performance - Alerus has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator for investors to make informed decisions [8]. - Historically, stocks with a Zacks Rank 1 have outperformed the S&P 500, with an average annual return of +25% since 2008 [3][8]. Stock Performance - Alerus's stock has increased by 7.3% over the past four weeks, indicating strong investor interest, and there may still be potential for further upside [9].

Company Performance - Alerus (ALRS) shares have increased by 7.3% over the past month, reaching a new 52-week high of $25.45 [1] - Year-to-date, Alerus has gained 11.3%, outperforming the Zacks Finance sector's 1.7% and the Zacks Financial - Miscellaneous Services industry's -3.5% [1] Earnings and Revenue - Alerus has consistently beaten earnings estimates, with the latest EPS reported at $0.85 against a consensus estimate of $0.57, although it missed revenue estimates by 10.9% [2] - For the current fiscal year, Alerus is projected to have earnings of $2.59 per share on revenues of $306.65 million, reflecting a -6.83% change in EPS and a 3.99% change in revenues [3] - The next fiscal year is expected to see earnings of $2.76 per share on revenues of $316.3 million, indicating a year-over-year change of 6.31% in EPS and 3.15% in revenues [3] Valuation Metrics - Alerus has a Value Score of B, with Growth and Momentum Scores both at C, resulting in a combined VGM Score of B [6] - The stock trades at 9.7X current fiscal year EPS estimates, below the peer industry average of 11.7X, and at 13.5X trailing cash flow compared to the peer group's average of 11X [6] Zacks Rank - Alerus holds a Zacks Rank of 1 (Strong Buy), supported by a positive earnings estimate revision trend [7] - The recommendation is for investors to consider stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, which Alerus meets [7] Industry Comparison - Community West Bancshares (CWBC) is a notable peer with a Zacks Rank of 1 (Strong Buy) and similar value and growth scores [8] - CWBC is expected to post earnings of $2.59 per share on revenues of $196.6 million, having beaten consensus estimates by 5.26% last quarter [9] - The Financial - Miscellaneous Services industry is performing well, ranking in the top 36% of all industries, providing favorable conditions for both Alerus and CWBC [10]

Company Overview - Alerus Financial Corporation (NASDAQ: ALRS) is a prominent financial services company offering banking, mortgage, wealth management, and retirement services [1] Price Target and Growth Potential - David Long from Raymond James has set a price target of $29 for ALRS, indicating a potential upside of 18.76% from its current trading price of $24.42 [2][6] Earnings Insights - The Q4 2025 earnings call is crucial for understanding ALRS's financial health and future plans, providing insights into earnings, revenue, and strategic direction [3][6] Stock Performance - ALRS is currently trading at $24.62, reflecting a 1.07% increase or $0.26 from its previous price, with a daily trading range between $24.06 and $24.65 [4][6] - Over the past year, ALRS has experienced a high of $25 and a low of $15.78, indicating significant price fluctuations [4][6] Market Metrics - ALRS has a market capitalization of approximately $625.3 million, positioning it as a mid-sized player in the financial services sector [5] - The trading volume of 183,830 shares indicates investor interest and activity in the stock, essential for evaluating liquidity and market presence [5]

Financial Data and Key Metrics Changes - The company reported a core return on assets (ROA) of 1.62% for the quarter and an adjusted ROA of 1.35% with an adjusted efficiency ratio of 64.45% [3][4] - Net interest income increased by 4.7% over the prior quarter, while adjusted non-interest income rose by 8.3% [17] - The tangible common equity (TCE) ratio improved to 8.72%, up from 8.24% in the prior quarter [25] Business Line Data and Key Metrics Changes - The retirement division generated total revenue of $17.3 million, a 4.6% increase over the prior quarter, driven by growth in asset and transaction-based fees [22] - The wealth management business saw revenues increase by 13.4% to $7.4 million, with end-of-quarter assets under management rising by 0.8% [24] - Core revenues from fee income grew by 7% year-over-year, maintaining over 40% of total revenues [9] Market Data and Key Metrics Changes - The company experienced a decline in loans by 1.3% over the previous quarter due to strategic downsizing of the loan portfolio [19] - Deposits decreased by 5%, primarily due to the calling in of broker deposits and other wholesale funding [20] - The loan-to-deposit ratio stood at 96.6%, with a deposit retention rate close to 95% since the acquisition of Home Federal [21] Company Strategy and Development Direction - The company aims for sustainable organic growth and a return to top-tier profitability, focusing on enhancing its commercial bank and improving returns [5][6] - A strategic entry into the mid-market commercial and industrial (C&I) space is expected to drive growth, with strong pipelines entering 2026 [7] - The company plans to double the number of wealth management advisors and invest in technology and AI to enhance scalability and improve margins [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic position and momentum as it enters 2026, highlighting strong core financial performance and successful execution of strategic initiatives [3][4] - The company anticipates loan growth in the mid-single digits and deposit growth in the low single digits for 2026, with a projected net interest margin of around 3.5% to 3.6% [26][27] - Management noted that the competitive environment for deposits is expected to remain strong, impacting net interest margin [79] Other Important Information - The company successfully converted its entire wealth business onto a new system, achieving 100% client retention [11] - The allowance for loan losses remained robust at 1.53% of total loans, with net recoveries reported [9] - The company has close to $2.8 billion in liquidity to support loan growth and other liquidity events [25] Q&A Session Summary Question: Balancing dynamics for 2026 regarding loan and deposit growth - Management aims to maintain a loan-to-deposit ratio around 95% to 96%, acknowledging potential seasonal fluctuations [34] Question: Insights on expenses and technology investments - Guidance includes team additions and variable costs related to technology investments [36][37] Question: Loan growth expectations and credit trimming - A significant portion of loan runoff was intentional, focusing on reducing marginal credits and enhancing C&I relationships [42] Question: Non-performing loans and resolution expectations - An increase in non-performing loans was related to a multifamily loan, with expectations for resolution in the first half of the year [45] Question: Margin trajectory and expectations for 2026 - Management expects gradual improvement in net interest margin, influenced by deposit flows [46] Question: Update on capital and acquisition opportunities - The company continues to explore potential acquisitions in the retirement and HSA space while prioritizing organic growth [54] Question: Competition in deposit pricing - The deposit market remains competitive, with rational pricing generally observed [79]

Financial Data and Key Metrics Changes - The company reported a core return on assets (ROA) of 1.62% for the quarter and an adjusted ROA of 1.35% with an adjusted efficiency ratio of 64.45% [3][4] - Net interest income increased by 4.7% over the prior quarter, while adjusted non-interest income rose by 8.3% [17] - The tangible common equity (TCE) ratio improved to 8.72%, up from 8.24% in the prior quarter [25] Business Line Data and Key Metrics Changes - The retirement division generated total revenue of $17.3 million, a 4.6% increase over the prior quarter, driven by growth in asset and transaction-based fees [22] - The wealth management business saw revenues increase by 13.4% to $7.4 million, with end-of-quarter assets under management rising by 0.8% [24] - Core revenues from fee income grew by 7% year-over-year, maintaining over 40% of total revenues [9] Market Data and Key Metrics Changes - The company experienced a decline in loans by 1.3% over the previous quarter due to strategic downsizing of the loan portfolio [19] - Deposits declined by 5%, primarily due to the calling in of broker deposits and other wholesale funding [20] - The loan-to-deposit ratio was reported at 96.6%, with a deposit retention rate close to 95% since the acquisition of Home Federal [21] Company Strategy and Development Direction - The company aims for sustainable organic growth and a return to top-tier profitability, focusing on enhancing its commercial bank and improving returns [5][6] - A strategic entry into the mid-market commercial and industrial (C&I) space is expected to drive growth, with strong pipelines entering 2026 [7] - The company plans to double the number of wealth management advisors and invest in technology and AI to enhance scalability and improve margins [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic position and momentum as it enters 2026, highlighting strong core financial performance and successful execution of strategic initiatives [3][4] - The company anticipates loan growth in the mid-single digits and deposit growth in the low single digits for 2026, with a net interest margin projected around 3.5%-3.6% [26][27] - Management noted that the competitive environment for deposits remains strong, with expectations of continued pressure on margins [80] Other Important Information - The company successfully converted its entire wealth business onto a new system, achieving 100% client retention [11] - The allowance for loan losses remained robust at 1.53% of total loans, with net recoveries reported [9] - The company has close to $2.8 billion in liquidity to support loan growth and other liquidity events [25] Q&A Session Summary Question: Balancing dynamics for 2026 regarding loan and deposit growth - The company aims to manage a loan-to-deposit ratio around 95%-96%, acknowledging potential seasonal fluctuations [34] Question: Insights on expenses and technology investments - The guidance incorporates team additions and variable costs related to technology investments [36][37] Question: Loan growth expectations and credit trimming - A significant portion of loan runoff was intentional, focusing on reducing marginal credits and enhancing C&I relationships [42] Question: Non-performing loans and resolution expectations - The increase in non-performing loans was related to a multifamily loan, with expectations for resolution in the first half of the year [45] Question: Tax rate expectations for 2026 - The anticipated tax rate for 2026 is 24% [73]

Financial Data and Key Metrics Changes - Alerus Financial reported a core return on assets (ROA) of 1.62% for Q4 2025, with an adjusted ROA of 1.35% and an adjusted efficiency ratio of 64.45% [3][4] - Net interest income increased by 4.7% over the prior quarter, reaching $45.2 million, while adjusted non-interest income grew by 8.3% [17][19] - The reported net interest margin (NIM) increased to 3.69%, with a core interest margin of 3.17%, reflecting a 12-basis point improvement from the previous quarter [18][19] Business Line Data and Key Metrics Changes - The retirement division generated total revenue of $17.3 million, a 4.6% increase over the prior quarter, driven by growth in asset and transaction-based fees [22] - The wealth management business saw revenues increase by 13.4% to $7.4 million, with end-of-quarter assets under management rising by 0.8% [23] - Core revenues from fee income businesses grew by 7% year-over-year, maintaining over 40% of total revenues [9][10] Market Data and Key Metrics Changes - Organic loan growth for 2025 would have been mid-single digits if not for strategic reductions in commercial real estate (CRE) and targeted loan sales [6] - The company experienced a 5% decline in deposits, primarily due to the calling in of broker deposits and other wholesale funding [20] - The deposit retention rate since the acquisition of Home Federal remains close to 95% [20] Company Strategy and Development Direction - Alerus aims to enhance its commercial banking operations and improve returns while focusing on long-term strategies, including a purposeful deleveraging plan [5][6] - The company is committed to organic growth and strategic hiring, particularly in the mid-market commercial and industrial (C&I) space [13] - Alerus plans to double the number of wealth management advisors and expand its national presence through partnerships and technology investments [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic position and momentum entering 2026, highlighting strong financial performance and integration capabilities [3][4] - The outlook for 2026 includes expectations for mid-single-digit loan growth and low single-digit deposit growth, with a projected net interest margin of 3.5%-3.6% [26][27] - Management noted that the economic environment appears favorable for businesses in 2026, with expectations of continued improvement in core businesses [68] Other Important Information - The tangible common equity ratio improved to 8.72%, providing a strong position for organic loan growth [25] - The company has approximately $2.8 billion in liquidity to support loan growth and other liquidity events [25] - Alerus is focused on maintaining a diversified revenue engine across banking, wealth, and retirement sectors [14] Q&A Session Summary Question: Balancing dynamics for 2026 regarding loan and deposit growth - Management aims for a loan-to-deposit ratio around 95%-96%, acknowledging potential increases during seasonal outflows [33] Question: Insights on expenses and technology investments - Guidance includes team additions and variable costs related to new technology platforms [35][36] Question: Loan growth expectations and credit trimming - A significant portion of loan runoff was intentional, focusing on improving the risk profile by reducing marginal credits [40] Question: Non-performing assets and resolution expectations - Management expects resolution of several non-performing assets in the first half of the year [72] Question: Tax rate expectations for 2026 - The anticipated tax rate for 2026 is 24% [73]

INVESTOR PRESENTATION 4Q 2025 NASDAQ: ALRS DISCLAIMERS Forward-Looking Statements This presentation 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, ...

Core Insights - Alerus reported a revenue of $63.35 million for the quarter ended December 2025, reflecting a 12.2% decrease year-over-year and falling short of the Zacks Consensus Estimate of $71.1 million by 10.9% [1] - The company's EPS was $0.85, significantly higher than the $0.44 reported in the same quarter last year, and exceeded the consensus EPS estimate of $0.57 by 48.26% [1] Financial Performance Metrics - Alerus's efficiency ratio was reported at 557.5%, which is substantially higher than the average estimate of 70.9% from two analysts [4] - The average balance of total interest-earning assets was $4.93 billion, slightly below the estimated $5.04 billion [4] - The net charge-offs to average loans stood at -0%, compared to the estimated 0.1% [4] - The net interest margin, tax-equivalent, was reported at 3.7%, exceeding the estimate of 3.3% [4] - Retirement and benefit services revenue was $17.26 million, above the estimated $16.77 million [4] - Wealth management revenue reached $7.44 million, surpassing the estimate of $6.95 million [4] - Mortgage banking revenue was $3.2 million, exceeding the average estimate of $2.8 million [4] - Tax-equivalent net interest income was reported at $45.83 million, higher than the estimated $42.26 million [4] - Total noninterest income was $31.45 million, compared to the average estimate of $28.85 million [4] - Service charges on deposit accounts were $0.73 million, slightly below the estimated $0.83 million [4] Stock Performance - Alerus shares have returned +7.4% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Alerus (ALRS) reported quarterly earnings of $0.85 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing a significant increase from $0.44 per share a year ago, resulting in an earnings surprise of +48.26% [1] Financial Performance - Alerus posted revenues of $63.35 million for the quarter ended December 2025, which was 10.9% below the Zacks Consensus Estimate and a decrease from $72.16 million in the same quarter last year [2] - Over the last four quarters, Alerus has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Alerus shares have increased by approximately 6.4% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.57 for the upcoming quarter and $2.52 for the current fiscal year [4][7] - The estimate revisions trend for Alerus was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Alerus belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]