Price Target Changed • May 04
Price target increased by 7.7% to US$28.00 Up from US$26.00, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of US$26.95. Stock is up 29% over the past year. The company is forecast to post earnings per share of US$2.91 for next year compared to US$0.69 last year. Announcement • May 02
Alerus Financial Corporation Reports Net Charge Offs for the First Quarter Ended March 31, 2026 Alerus Financial Corporation reported net charge offs for the first quarter ended March 31, 2026. For the period, the company reported net charge-offs of $7,027,000 compared to $407,000 a year ago. Reported Earnings • May 01
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: US$0.91 (up from US$0.52 in 1Q 2025). Revenue: US$80.6m (up 19% from 1Q 2025). Net income: US$23.0m (up 74% from 1Q 2025). Profit margin: 28% (up from 20% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.5%. Earnings per share (EPS) also surpassed analyst estimates by 53%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 25% per year, which means it is well ahead of earnings. New Risk • Apr 30
New major risk - Revenue and earnings growth Earnings have declined by 22% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 22% per year over the past 5 years. Minor Risk Dividend is not well covered by earnings (121% payout ratio). Buy Or Sell Opportunity • Apr 07
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 5.0% to US$24.36. The fair value is estimated to be US$20.23, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.2% over the last 3 years. Earnings per share has declined by 21%. Revenue is forecast to grow by 43% in 2 years. Earnings are forecast to grow by 305% in the next 2 years. Announcement • Apr 03
Alerus Financial Corporation to Report Q1, 2026 Results on Apr 29, 2026 Alerus Financial Corporation announced that they will report Q1, 2026 results at 4:00 PM, US Eastern Standard Time on Apr 29, 2026 Announcement • Apr 02
Alerus Financial Corporation, Annual General Meeting, May 14, 2026 Alerus Financial Corporation, Annual General Meeting, May 14, 2026. Upcoming Dividend • Mar 20
Upcoming dividend of US$0.21 per share Eligible shareholders must have bought the stock before 27 March 2026. Payment date: 10 April 2026. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.6%. Lower than top quartile of American dividend payers (4.4%). Higher than average of industry peers (1.2%). Reported Earnings • Mar 05
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: US$0.69 (down from US$0.84 in FY 2024). Revenue: US$223.8m (up 9.8% from FY 2024). Net income: US$17.4m (down 1.9% from FY 2024). Profit margin: 7.8% (down from 8.7% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 73%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Declared Dividend • Mar 04
Fourth quarter dividend of US$0.21 announced Shareholders will receive a dividend of US$0.21. Ex-date: 27th March 2026 Payment date: 10th April 2026 Dividend yield will be 3.4%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is not covered by earnings (121% earnings payout ratio). However, the dividend is expected to be well covered in 3 years' time (32% forecast payout ratio). The dividend has increased by an average of 7.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 34% to bring the payout ratio under control. EPS is expected to grow by 129% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Feb 27
Alerus Financial Corporation Declares Quarterly Cash Dividend on Common Shares, Payable on April 10, 2026 Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.21 per common share on February 25, 2026, a 5.00% increase over the dividend paid a year ago. The dividend is payable on April 10, 2026, to stockholders of record as of close of business on March 27, 2026. New Risk • Jan 29
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 121% Current dividend yield: 3.4% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Jan 29
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: US$0.69 (down from US$0.84 in FY 2024). Revenue: US$223.8m (up 9.8% from FY 2024). Net income: US$17.4m (down 1.7% from FY 2024). Profit margin: 7.8% (down from 8.7% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 73%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Jan 07
Alerus Financial Corporation to Report Q4, 2025 Results on Jan 28, 2026 Alerus Financial Corporation announced that they will report Q4, 2025 results at 4:00 PM, US Eastern Standard Time on Jan 28, 2026 Declared Dividend • Dec 10
Third quarter dividend of US$0.21 announced Shareholders will receive a dividend of US$0.21. Ex-date: 26th December 2025 Payment date: 9th January 2026 Dividend yield will be 3.6%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is well covered by earnings (41% payout ratio) and is expected to be well covered in 3 years' time (35% forecast payout ratio). The dividend has increased by an average of 7.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 16% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 06
Alerus Financial Corporation Declares Cash Dividend on Common Shares, Payable on January 9, 2026 Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.21 per common share on December 4, 2025, a 5.00% increase over the dividend paid a year ago. The dividend is payable on January 9, 2026, to stockholders of record as of close of business on December 26, 2025. Reported Earnings • Nov 02
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: US$0.66 (up from US$0.26 in 3Q 2024). Revenue: US$72.6m (up 47% from 3Q 2024). Net income: US$16.8m (up 224% from 3Q 2024). Profit margin: 23% (up from 11% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. New Risk • Oct 31
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.05% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Announcement • Oct 02
Alerus Financial Corporation to Report Q3, 2025 Results on Oct 30, 2025 Alerus Financial Corporation announced that they will report Q3, 2025 results on Oct 30, 2025 Upcoming Dividend • Sep 19
Upcoming dividend of US$0.21 per share Eligible shareholders must have bought the stock before 26 September 2025. Payment date: 10 October 2025. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of American dividend payers (4.4%). Higher than average of industry peers (0.9%). Declared Dividend • Sep 04
Second quarter dividend of US$0.21 announced Shareholders will receive a dividend of US$0.21. Ex-date: 26th September 2025 Payment date: 10th October 2025 Dividend yield will be 3.6%, which is higher than the industry average of 1.0%. Sustainability & Growth The dividend has increased by an average of 7.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 21% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Sep 03
Alerus Financial Corporation Declares Cash Dividend on Common Shares, Payable on October 10, 2025 Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.21 per common share on August 27, 2025, a 5.00% increase over the dividend paid a year ago. The dividend is payable on October 10, 2025, to stockholders of record as of close of business on September 26, 2025. Reported Earnings • Jul 29
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: US$0.80 (up from US$0.31 in 2Q 2024). Revenue: US$74.8m (up 60% from 2Q 2024). Net income: US$20.3m (up 228% from 2Q 2024). Profit margin: 27% (up from 13% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.7%. Earnings per share (EPS) also surpassed analyst estimates by 45%. Revenue is forecast to grow 8.8% p.a. on average during the next 2 years, compared to a 5.1% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Price Target Changed • Jul 29
Price target increased by 12% to US$25.40 Up from US$22.60, the current price target is an average from 5 analysts. New target price is 13% above last closing price of US$22.49. Stock is up 0.9% over the past year. The company is forecast to post earnings per share of US$2.46 for next year compared to US$0.84 last year. Announcement • Jul 29
Alerus Financial Corporation Reports Net Charge-Offs for the Second Quarter Ended June 30, 2025 Alerus Financial Corporation reported net charge-offs for the second quarter ended June 30, 2025. For the second quarter of 2025, the company had net charge-offs of $3.8 million, compared to net charge-offs of $0.4 million for the first quarter of 2025 and net charge-offs of $2.5 million for the second quarter of 2024. New Risk • Jul 28
New major risk - Revenue and earnings growth Earnings have declined by 24% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 24% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (28% increase in shares outstanding). Announcement • Jul 08
Alerus Financial Corporation to Report Q2, 2025 Results on Jul 28, 2025 Alerus Financial Corporation announced that they will report Q2, 2025 results on Jul 28, 2025 New Risk • Jun 25
New major risk - Revenue and earnings growth Earnings have declined by 20% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 20% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (28% increase in shares outstanding). Upcoming Dividend • Jun 20
Upcoming dividend of US$0.21 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 11 July 2025. Payout ratio is a comfortable 73% but the company is paying out more than the cash it is generating. Trailing yield: 4.0%. Lower than top quartile of American dividend payers (4.8%). Higher than average of industry peers (0.9%). Declared Dividend • May 29
First quarter dividend increased to US$0.21 Dividend of US$0.21 is 5.0% higher than last year. Ex-date: 27th June 2025 Payment date: 11th July 2025 Dividend yield will be 3.8%, which is higher than the industry average of 1.0%. Sustainability & Growth The dividend has increased by an average of 7.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 37% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • May 23
Alerus Financial Corporation Declares Regular Quarterly Cash Dividend on Common Shares, Payable on July 11, 2025 Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.21 per common share on May 21, 2025, a 5.00% increase over the dividend paid a year ago. The dividend is payable on July 11, 2025, to stockholders of record as of close of business on June 27, 2025. Recent Insider Transactions • May 08
Insider recently bought US$100k worth of stock On the 1st of May, Forrest Wilson bought around 5k shares on-market at roughly US$19.93 per share. This transaction amounted to 54% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$120k more in shares than they have sold in the last 12 months. Major Estimate Revision • May 05
Consensus EPS estimates increase by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from US$272.7m to US$280.8m. EPS estimate increased from US$1.98 to US$2.19 per share. Net income forecast to grow 133% next year vs 15% growth forecast for Diversified Financial industry in the US. Consensus price target up from US$21.20 to US$22.30. Share price rose 16% to US$20.64 over the past week. Valuation Update With 7 Day Price Move • May 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$20.64, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Diversified Financial industry in the US. Total loss to shareholders of 12% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$33.98 per share. Reported Earnings • Apr 29
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: US$0.53 (up from US$0.32 in 1Q 2024). Revenue: US$67.9m (up 43% from 1Q 2024). Net income: US$13.3m (up 108% from 1Q 2024). Profit margin: 20% (up from 13% in 1Q 2024). Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) also surpassed analyst estimates by 32%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 3.6% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • Apr 29
Alerus Financial Corporation Reports Net Charge-Offs for the First Quarter Ended March 31, 2025 Alerus Financial Corporation reported Net charge-offs for the first quarter ended March 31, 2025. For the first quarter of 2025, the Company had net charge-offs of $407,000 compared to net charge-offs of $58,000 for the first quarter of 2024. Announcement • Apr 01
Alerus Financial Corporation to Report Q1, 2025 Results on Apr 28, 2025 Alerus Financial Corporation announced that they will report Q1, 2025 results on Apr 28, 2025 Announcement • Mar 18
Alerus Financial Corporation, Annual General Meeting, May 08, 2025 Alerus Financial Corporation, Annual General Meeting, May 08, 2025. Reported Earnings • Mar 16
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: US$0.84 (up from US$0.59 in FY 2023). Revenue: US$203.8m (up 23% from FY 2023). Net income: US$17.7m (up 52% from FY 2023). Profit margin: 8.7% (up from 7.0% in FY 2023). Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 5.4% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Declared Dividend • Mar 02
Fourth quarter dividend of US$0.20 announced Shareholders will receive a dividend of US$0.20. Ex-date: 14th March 2025 Payment date: 11th April 2025 Dividend yield will be 3.9%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is covered by earnings (79% payout ratio) and is expected to be covered in 3 years' time (37% forecast payout ratio). The dividend has increased by an average of 7.9% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 88% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 27
Alerus Financial Corporation Declares Cash Dividend on Common Shares, Payable on April 11, 2025 Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.20 per common share on February 26, 2025, a 5.26% increase over the dividend paid a year ago. The dividend is payable on April 11, 2025, to stockholders of record as of close of business on March 14, 2025. Reported Earnings • Jan 29
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: US$1.00 (up from US$0.59 in FY 2023). Revenue: US$203.8m (up 23% from FY 2023). Net income: US$21.1m (up 80% from FY 2023). Profit margin: 10% (up from 7.0% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Jan 24
Alerus Financial Corporation to Report Q4, 2024 Results on Jan 28, 2025 Alerus Financial Corporation announced that they will report Q4, 2024 results on Jan 28, 2025 Price Target Changed • Jan 19
Price target decreased by 8.4% to US$21.75 Down from US$23.75, the current price target is an average from 4 analysts. New target price is 11% above last closing price of US$19.62. Stock is down 6.7% over the past year. The company is forecast to post earnings per share of US$1.18 for next year compared to US$0.59 last year. Declared Dividend • Dec 15
Third quarter dividend of US$0.20 announced Shareholders will receive a dividend of US$0.20. Ex-date: 27th December 2024 Payment date: 17th January 2025 Dividend yield will be 3.6%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is not covered by earnings (485% earnings payout ratio). However, the dividend is expected to be well covered in 3 years' time (36% forecast payout ratio). The dividend has increased by an average of 8.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 439% to bring the payout ratio under control. EPS is expected to grow by 177% over the next 2 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • Dec 12
Alerus Financial Corporation Declares Cash Dividend, Payable on January 17, 2025 Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.20 per common share on December 11, 2024, a 5.26% increase over the dividend paid a year ago. The dividend is payable on January 17, 2025, to stockholders of record as of close of business on December 27, 2024. Announcement • Dec 04
Alerus Financial Corporation Announces Executive Changes, Effective January 1, 2025 Alerus Financial Corporation announced Jon Hendry, Executive Vice President and Chief Technology Officer, will retire at year end. As part of his planned succession, he will transition his responsibilities to Karin Taylor, who will assume the role of Executive Vice President and Chief Operating Officer, effective January 1, 2025. In addition, Joe Birkholz has joined the company as Chief Risk Officer. Ms. Taylor joined the Company as Chief Risk Officer in 2018, bringing approximately 30 years of experience in the financial industry, specializing in risk management. As Chief Operating Officer, she will continue to oversee the areas of risk management, regulatory compliance, legal, internal audit, and operations, in addition to assuming oversight of information technology. Mr. Birkholz has nearly 20 years of industry experience and has specialized in risk management for a decade. Before joining Alerus in December 2024, he served as Chief Risk Officer at Bridgewater Bank. Prior to that, he served as Senior Director of Risk Operations at TCF Financial Corporation/National Bank. As Chief Risk Officer, he will work closely with the risk committee to further enhance the Company’s risk management practices with a focus on continued growth. Major Estimate Revision • Nov 07
Consensus EPS estimates fall by 19% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from US$1.39 to US$1.13 per share. Revenue forecast steady at US$213.1m. Net income forecast to grow 1,332% next year vs 20% growth forecast for Diversified Financial industry in the US. Consensus price target down from US$24.20 to US$22.80. Share price rose 9.5% to US$22.33 over the past week. New Risk • Nov 03
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 29% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (485% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Shareholders have been diluted in the past year (28% increase in shares outstanding). New Risk • Nov 01
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 28% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (498% payout ratio). Profit margins are more than 30% lower than last year (1.9% net profit margin). Shareholders have been diluted in the past year (28% increase in shares outstanding). Board Change • Nov 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. 3 highly experienced directors. Independent Director Mary Zimmer was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Oct 30
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: US$0.26 (down from US$0.46 in 3Q 2023). Revenue: US$49.2m (flat on 3Q 2023). Net income: US$5.21m (down 43% from 3Q 2023). Profit margin: 11% (down from 19% in 3Q 2023). Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) also missed analyst estimates by 41%. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Oct 30
Alerus Financial Corporation Reports Net Charge Off for the Third Quarter Ended September 30, 2024 Alerus Financial Corporation reported net charge off for the third quarter ended September 30, 2024. For the third quarter of 2024, the Company had net charge-offs of $0.3 million, compared to net charge-offs of $2.5 million for the second quarter of 2024 and net recoveries of $0.6 million for the third quarter of 2023. The quarter-over-quarter decrease in net charge-offs was driven by a $2.6 million charge-off of one commercial and industrial loan in the second quarter of 2024. Announcement • Oct 11
Alerus Financial Corporation completed the acquisition of HMN Financial, Inc. (NasdaqGM:HMNF) from a group of shareholders. Alerus Financial Corporation signed a non-binding indication of interest to acquire HMN Financial, Inc. (NasdaqGM:HMNF) from a group of shareholders on February 5, 2024. Alerus Financial Corporation entered into an agreement to acquire HMN Financial, Inc. from a group of shareholders for approximately $110 million on May 14, 2024. According to the terms of the agreement, stockholders of HMNF will receive 1.25 shares of Alerus common stock for each share of HMNF common stock they own. Under the terms of the agreement, HMNF will merge with and into Alerus. Upon completion of the Merger, one HMNF director will join the Alerus Board of Directors. HMNF has agreed to pay Alerus a termination fee of $4.6 million if the merger agreement is terminated. Alerus has agreed to pay HMNF a termination fee of $4.6 million if the merger agreement is terminated.
The transaction has been unanimously approved by the Boards of Directors of both companies. Completion of the Merger is subject to customary closing conditions, including receipt of required regulatory approvals and approval by the stockholders of both Alerus and HMNF. As of September 16, 2024, HMNF and Alerus have received all regulatory approvals and approvals by Stockholders of each company. The transaction is expected to close in the fourth quarter of 2024. The transaction is expected to be immediately accretive to Alerus’ estimated earnings before one-time costs, with a tangible book value earn back of approximately 2.2 years (inclusive of interest rate marks), and an internal rate of return in excess of 25%.
Sanjay Patel of Raymond James & Associates, Inc. acted as financial advisor and fairness opinion provider and Joseph T. Ceithaml, Megan E. Toal, Christine K. Nichols and Andrew K. Strimaitis of Barack Ferrazzano Kirschbaum & Nagelberg LLP acted as legal counsels to Alerus on the transaction. D.A. Davidson & Co. acted as financial advisor and fairness opinion provider and Ballard Spahr LLP acted as legal counsel to HMNF. Ballard Spahr and D.A. Davidson also acted as due diligence providers to HMNF. Equiniti Trust Company, LLC acted as transfer agent to Alerus and HMNF. Alerus has engaged D.F. King & Co., Inc. to solicit proxies for the Alerus special meeting. D.F. King will be paid a fixed fee of approximately $11,875, and be reimbursed out-of-pocket expenses for its services. HMNF has engaged D.F. King, a proxy solicitation firm, to solicit proxies for the HMNF special meeting. D.F. King will be paid a fixed fee of approximately $11,875, and be reimbursed out-of-pocket expenses for its services. For its services as financial advisor to Alerus in connection with the merger, Raymond James will receive a transaction fee of $1.45 million, of which $200,000 was due and payable when Raymond James rendered its opinion and the remainder of which is contingent upon successful consummation of the merger. HMNF agreed to pay D.A. Davidson a cash fee of $185,000 concurrently with the rendering of its opinion. HMNF will pay to D.A. Davidson at the time of closing of the merger a contingent cash fee equal to 1.00% of the aggregate consideration.
Alerus Financial Corporation completed the acquisition of HMN Financial, Inc. (NasdaqGM:HMNF) from a group of shareholders on October 9, 2024. The all-stock transaction is valued at approximately $128.8 million as of closing. HMN Financial, Inc. board member Jeffrey Bolton has joined Alerus Financial Corporation’s board of directors in connection with closing. Announcement • Oct 10
Alerus Financial Corporation Appoints Jeffrey Bolton to Board of Directors Alerus Financial Corporation announced HMN Financial Inc. board member Jeffrey Bolton has joined Alerus Financial Corporation’s board of directors in connection with closing. Mr. Bolton brings extensive expertise in healthcare administration, business, and finance to the board of directors. He is the former chief administrative officer at Mayo Clinic, a position he held from 2013 until his retirement in 2021. Prior to his role as chief administrative officer, he served as Mayo Clinic’s chief financial officer from 2002 until 2013. He was also a member of Mayo Clinic’s board of trustees from 2011 until his retirement. Prior to his time at Mayo Clinic, Mr. Bolton served in various business and finance-related positions at Carnegie Mellon University, including chief financial officer and vice president for business and planning. Major Estimate Revision • Oct 03
Consensus EPS estimates increase by 14% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from US$1.22 to US$1.39. Revenue forecast steady at US$211.8m. Net income forecast to grow 517% next year vs 17% growth forecast for Diversified Financial industry in the US. Consensus price target broadly unchanged at US$24.00. Share price was steady at US$22.10 over the past week. Announcement • Oct 02
Alerus Financial Corporation to Report Q3, 2024 Results on Oct 29, 2024 Alerus Financial Corporation announced that they will report Q3, 2024 results on Oct 29, 2024 Upcoming Dividend • Sep 08
Upcoming dividend of US$0.20 per share Eligible shareholders must have bought the stock before 13 September 2024. Payment date: 11 October 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.8%. Lower than top quartile of American dividend payers (4.4%). Higher than average of industry peers (1.0%). Declared Dividend • Aug 25
Second quarter dividend of US$0.20 announced Shareholders will receive a dividend of US$0.20. Ex-date: 13th September 2024 Payment date: 11th October 2024 Dividend yield will be 3.5%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is not covered by earnings (215% earnings payout ratio). However, the dividend is expected to be well covered in 3 years' time (32% forecast payout ratio). The dividend has increased by an average of 8.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 139% to bring the payout ratio under control. EPS is expected to grow by 325% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Aug 22
Alerus Financial Corporation Declares Regular Quarterly Cash Dividend, Payable on October 11, 2024 Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.20 per common share on August 20, 2024, a 5.26% increase over the dividend paid a year ago. The dividend is payable on October 11, 2024, to stockholders of record as of close of business on September 13, 2024. Price Target Changed • Aug 01
Price target increased by 8.6% to US$23.75 Up from US$21.88, the current price target is an average from 4 analysts. New target price is 10% above last closing price of US$21.50. Stock is up 9.6% over the past year. The company is forecast to post earnings per share of US$1.39 for next year compared to US$0.59 last year. Major Estimate Revision • Aug 01
Consensus EPS estimates increase by 20% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from US$206.5m to US$212.5m. EPS estimate increased from US$1.15 to US$1.37 per share. Net income forecast to grow 524% next year vs 19% growth forecast for Diversified Financial industry in the US. Consensus price target up from US$21.88 to US$23.00. Share price rose 2.0% to US$22.45 over the past week. Reported Earnings • Jul 26
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: US$0.31 (down from US$0.45 in 2Q 2023). Revenue: US$46.9m (down 2.4% from 2Q 2023). Net income: US$6.21m (down 31% from 2Q 2023). Profit margin: 13% (down from 19% in 2Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue exceeded analyst estimates by 5.2%. Earnings per share (EPS) missed analyst estimates by 15%. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • Jul 25
Alerus Financial Corporation Reports Net Charge-Offs for the Second Quarter Ended June 30, 2024 Alerus Financial Corporation reported net charge-offs for the second quarter ended June 30, 2024. For the second quarter of 2024, the Company had net charge-offs of $2.5 million, compared to net charge-offs of $58,000 for the first quarter of 2024 and net recoveries of $403,000 for the second quarter of 2023. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$21.86, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 11x in the Diversified Financial industry in the US. Total loss to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$32.84 per share. Announcement • Jul 09
Alerus Financial Corporation to Report Q2, 2024 Results on Jul 24, 2024 Alerus Financial Corporation announced that they will report Q2, 2024 results on Jul 24, 2024 Announcement • Jun 13
Alerus Financial Corporation Hires Equipment Finance Team Alerus Financial Corporation has said that it is expanding its specialty lending capabilities with the appointment of an experienced team focused on providing equipment financing to commercial banking clients throughout the company's geographic footprint. Brian Scott joins Alerus as managing director of the equipment finance team. In his new role, he will oversee the team's activities and guide lending activities for clients across a range of industries. Scott, who has over 25 years of financial industry experience, most recently served as managing director of equipment finance at Western Alliance in Phoenix. In addition, Daniel Littlefield joins Alerus as a senior credit officer specialising in equipment finance and will be responsible for the underwriting and portfolio management of Alerus' equipment finance division. With over 20 years of experience in the financial industry, Littlefield has extensive expertise in portfolio management and credit underwriting. Furthermore, Michael Ryan joins Alerus as operations manager for the equipment finance team. In this role, he will develop and implement processes and procedures, and oversee operations for the team. Ryan, who has over 20 years of financial industry experience, has expertise in equipment finance. Based in Phoenix, the team will serve clients directly and also support Alerus commercial bankers throughout the company's footprint. A commercial wealth bank and national retirement services provider, Alerus Financial Corporation has corporate offices in Grand Forks, North Dakota, and the Minneapolis-St. Paul, Minnesota metropolitan area. Through its subsidiary, Alerus Financial, N.A., Alerus provides diversified and comprehensive financial solutions to businesses and consumer clients, including banking, wealth services, and retirement and benefits plans and services. Alerus has banking and wealth offices in Grand Forks and Fargo, North Dakota, the Minneapolis-St. Paul, Minnesota metropolitan area, and Phoenix and Scottsdale, Arizona. Declared Dividend • May 30
First quarter dividend increased to US$0.20 Dividend of US$0.20 is 5.3% higher than last year. Ex-date: 14th June 2024 Payment date: 15th July 2024 Dividend yield will be 4.0%, which is higher than the industry average of 1.0%. Sustainability & Growth The dividend has increased by an average of 8.2% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 68% to bring the payout ratio under control. EPS is expected to grow by 72% over the next year, which is sufficient to bring the dividend into a sustainable range. Announcement • May 24
Alerus Financial Corporation Declares Cash Dividend on Common Shares, Payable on July 15, 2024 Alerus Financial Corporation announced that its board of directors declared a regular quarterly cash dividend of $0.20 per common share on May 21, 2024, a 5.26% increase over the dividend paid a year ago. The dividend is payable on July 15, 2024, to stockholders of record as of close of business on June 14, 2024. Major Estimate Revision • May 17
Consensus EPS estimates fall by 19%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from US$198.4m to US$205.1m. EPS estimate fell from US$1.50 to US$1.22 per share. Net income forecast to grow 209% next year vs 15% growth forecast for Diversified Financial industry in the US. Consensus price target broadly unchanged at US$22.38. Share price fell 3.4% to US$19.74 over the past week. Announcement • May 16
Alerus Financial Corporation (NasdaqCM:ALRS) entered into an agreement to acquire HMN Financial, Inc. (NasdaqGM:HMNF) for approximately $120 million Alerus Financial Corporation (NasdaqCM:ALRS) entered into an agreement to acquire HMN Financial, Inc. (NasdaqGM:HMNF) for approximately $120 million on May 15, 2024. According to the terms of the agreement, stockholders of HMNF will receive 1.25 shares of Alerus common stock for each share of HMNF common stock they own. Under the terms of the agreement, HMNF will merge with and into Alerus. Upon completion of the Merger, one HMNF director will join the Alerus Board of Directors. The transaction has been unanimously approved by the Boards of Directors of both companies. Completion of the Merger is subject to customary closing conditions, including receipt of required regulatory approvals and approval by the stockholders of both Alerus and HMNF. The transaction is expected to close in the fourth quarter of 2024. The transaction is expected to be immediately accretive to Alerus’ estimated earnings before one-time costs, with a tangible book value earn back of approximately 2.2 years (inclusive of interest rate marks), and an internal rate of return in excess of 25%.
Raymond James & Associates, Inc. acted as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP acted as legal counsel to Alerus on the transaction. D.A. Davidson & Co. acted as financial advisor and Ballard Spahr LLP acted as legal counsel to HMNF. Reported Earnings • Apr 25
First quarter 2024 earnings: Revenues and EPS in line with analyst expectations First quarter 2024 results: EPS: US$0.33 (down from US$0.41 in 1Q 2023). Revenue: US$47.5m (down 1.7% from 1Q 2023). Net income: US$6.43m (down 21% from 1Q 2023). Profit margin: 14% (down from 17% in 1Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Apr 02
Alerus Financial Corporation to Report Q1, 2024 Results on Apr 24, 2024 Alerus Financial Corporation announced that they will report Q1, 2024 results on Apr 24, 2024 Buy Or Sell Opportunity • Apr 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.2% to US$21.39. The fair value is estimated to be US$26.96, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.9% over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 29% in 2 years. Earnings are forecast to grow by 211% in the next 2 years. Announcement • Mar 26
Alerus Financial Corporation, Annual General Meeting, May 07, 2024 Alerus Financial Corporation, Annual General Meeting, May 07, 2024, at 13:30 Central Standard Time. Agenda: To consider election of director's; to consider ratification of the appointment of RSM US LLP as the independent public accounting firm for the corporation for the fiscal year ending December 31, 2024. Buy Or Sell Opportunity • Mar 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.0% to US$21.42. The fair value is estimated to be US$27.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.9% over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 28% in 2 years. Earnings are forecast to grow by 210% in the next 2 years. Reported Earnings • Mar 10
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: US$0.59 (down from US$2.12 in FY 2022). Revenue: US$166.0m (down 21% from FY 2022). Net income: US$11.7m (down 70% from FY 2022). Profit margin: 7.0% (down from 19% in FY 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 6.1%. Earnings per share (EPS) missed analyst estimates by 48%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 07
Upcoming dividend of US$0.19 per share Eligible shareholders must have bought the stock before 14 March 2024. Payment date: 12 April 2024. Trailing yield: 3.5%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (0.9%). Declared Dividend • Mar 03
Fourth quarter dividend of US$0.19 announced Shareholders will receive a dividend of US$0.19. Ex-date: 14th March 2024 Payment date: 12th April 2024 Dividend yield will be 3.5%, which is higher than the industry average of 1.0%. Sustainability & Growth Dividend is not covered by earnings (128% earnings payout ratio). However, the dividend is expected to be well covered in 3 years' time (45% forecast payout ratio). The dividend has increased by an average of 8.6% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 42% to bring the payout ratio under control. EPS is expected to grow by 114% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Feb 29
Alerus Financial Corporation Declares Regular Quarterly Cash Dividend, Payable on April 12, 2024 Alerus Financial Corporation announced that its Board of Directors declared a cash dividend of $0.19 per share of its common stock. The dividend is payable on April 12, 2024, to stockholders of record on March 15, 2024. Announcement • Feb 23
Alerus Financial Corporation Appoints Forrest Wilson as Executive Vice President and Chief Retirement Services Officer, Effective February 26, 2024 Alerus Financial Corporation announced that Forrest Wilson will join Alerus as Executive Vice President and Chief Retirement Services Officer, effective February 26, 2024. A well-rounded retirement industry veteran, Mr. Wilson brings over 25 years of experience on both the platform/recordkeeping and investment sides of the retirement business. He has extensive knowledge in sales and distribution growth, product oversight and strategy, acquisitions, digital engagement, implementation, and service delivery, and has a proven track record in leading teams of all sizes to reach and exceed significant goals. Before joining Alerus, he spent six years at Ameritas Mutual Holding Company and served most recently as Senior Vice President of Retirement Plans Sales and Distribution, where he was accountable for all aspects of the business strategy, including several successful acquisitions, while consistently delivering strong results. Prior to that, he served in various management and sales leadership roles with firms including Allianz Global Investors, Aspire Financial Services, Empower, and Voya. As Chief Retirement Services Officer, Mr. Wilson will be responsible for the overall leadership and direction of Alerus’ retirement and benefits division, which serves thousands of third-party advisors, over 8,000 employer-sponsored retirement plans, and approximately 474,000 plan participants nationwide. He will work to ensure that all client-related areas are aligned with Alerus’ client-centric, holistic, and collaborative approach to client service, focusing on the needs of Alerus’ third-party advisors, plan sponsors, and participants. Mr. Wilson holds a bachelor’s degree in marketing from Central Connecticut State University and an MBA in finance and marketing from New York University Stern School of Business. Board Change • Feb 19
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Mary Zimmer was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Feb 17
Alerus Financial Corporation Announces Resignation of Michael Mathews as Member of Board of Directors On February 14, 2024, Michael Mathews notified Alerus Financial Corporation (Company) of his decision to resign as a member of the company’s board of directors, effective immediately. Mr. Mathews informed the Company that his decision to resign was to avoid any appearance of a conflict of interest as a result of him accepting a position at an investment banking organization owned by a regional banking organization. Buy Or Sell Opportunity • Jan 29
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 39% to US$24.00. The fair value is estimated to be US$19.81, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 8.9% over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 27% in 2 years. Earnings are forecast to grow by 206% in the next 2 years. Price Target Changed • Jan 26
Price target increased by 7.9% to US$22.67 Up from US$21.00, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of US$23.42. Stock is up 17% over the past year. The company is forecast to post earnings per share of US$1.46 for next year compared to US$0.59 last year. Reported Earnings • Jan 26
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: US$0.59 (down from US$2.12 in FY 2022). Revenue: US$166.0m (down 21% from FY 2022). Net income: US$11.7m (down 71% from FY 2022). Profit margin: 7.0% (down from 19% in FY 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 6.1%. Earnings per share (EPS) missed analyst estimates by 48%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 5.0% growth forecast for the Diversified Financial industry in the US. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. 
