Alerus Financial Corp. Q3 Earnings Show Dip in Net Interest Income

TL;DR

Alerus Financial's Q3 net interest income down YoY, but assets remain strong at $2B.

AI Summary

Alerus Financial Corp. reported a net interest income of $549,122 for the quarter ending September 30, 2024, a decrease from $584,754 in the same period last year. The company's provision for credit losses was $249,862, down from $258,617 year-over-year. Total assets stood at $2,000,000,000, with total liabilities at $19,790,005.

Why It Matters

This filing indicates a slight decrease in Alerus Financial's core lending profitability, which could impact future revenue streams and investor confidence.

Risk Assessment

Risk Level: medium — The decrease in net interest income and provision for credit losses suggests potential headwinds in the banking sector or specific to Alerus's operations.

Key Numbers

• $549.1M — Net Interest Income (Q3 2024, down from $584.8M in Q3 2023)
• $249.9K — Provision for Credit Losses (Q3 2024, down from $258.6K in Q3 2023)
• $2.0B — Total Assets (As of September 30, 2024)
• $19.8M — Total Liabilities (As of September 30, 2024)

Key Players & Entities

• ALERUS FINANCIAL CORP (company) — Filer
• 20240930 (date) — Reporting Period End Date
• 20241031 (date) — Filing Date
• $549,122 (dollar_amount) — Net Interest Income Q3 2024
• $584,754 (dollar_amount) — Net Interest Income Q3 2023
• $249,862 (dollar_amount) — Provision for Credit Losses Q3 2024
• $258,617 (dollar_amount) — Provision for Credit Losses Q3 2023
• $2,000,000,000 (dollar_amount) — Total Assets
• $19,790,005 (dollar_amount) — Total Liabilities

FAQ

Key Financial Figures

• $1.00 — ch registered Common Stock, par value $1.00 per share ALRS The Nasdaq Stock Mar
• $1.235 billion — he fiscal year in which the Company has $1.235 billion or more in annual revenues; ( 3 ) the d
• $1.0 billion — issued publicly or privately, more than $1.0 billion in non-convertible debt securities. Man

Filing Documents

• alrs20240930_10q.htm (10-Q) — 8126KB
• ex_724854.htm (EX-31.1) — 12KB
• ex_724855.htm (EX-31.2) — 12KB
• ex_724856.htm (EX-32.1) — 5KB
• ex_724857.htm (EX-32.2) — 5KB
• 0001437749-24-032818.txt ( ) — 31325KB
• alrs-20240930.xsd (EX-101.SCH) — 106KB
• alrs-20240930_cal.xml (EX-101.CAL) — 90KB
• alrs-20240930_def.xml (EX-101.DEF) — 822KB
• alrs-20240930_lab.xml (EX-101.LAB) — 662KB
• alrs-20240930_pre.xml (EX-101.PRE) — 873KB
• alrs20240930_10q_htm.xml (XML) — 9447KB

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 63 Item 4.

Controls and Procedures

Controls and Procedures 64 Part 2 : OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 65 Item 1A.

Risk Factors

Risk Factors 65 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 66 Item 3. Defaults Upon Senior Securities 66 Item 4. Mine Safety Disclosures 66 Item 5. Other Information 66 Item 6. Exhibits 67

Signatures

Signatures 68 Table of Contents PART 1. FINANCIAL INFORMATION

- Consolidated Financial Statements

Item 1 - Consolidated Financial Statements Alerus Financial Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited) September 30, December 31, (dollars in thousands, except share and per share data) 2024 2023 Assets Cash and cash equivalents $ 65,975 $ 129,893 Investment securities Trading 2,708 — Available-for-sale, at fair value (amortized cost of $ 549,122 and $ 584,754 , respectively) 466,003 486,736 Held-to-maturity, at amortized cost (fair value of $ 249,862 and $ 258,617 , respectively, with an allowance for credit losses on investments of $ 137 and $ 213 , respectively) 281,913 299,515 Loans held for sale 13,487 11,497 Loans 3,032,343 2,759,583 Allowance for credit losses on loans ( 39,142 ) ( 35,843 ) Net loans 2,993,201 2,723,740 Land, premises and equipment, net 18,790 17,940 Operating lease right-of-use assets 9,268 5,436 Accrued interest receivable 16,469 15,700 Bank-owned life insurance 35,793 33,236 Goodwill 46,783 46,783 Other intangible assets, net 13,186 17,158 Servicing rights 1,874 2,052 Deferred income taxes, net 33,054 34,595 Other assets 86,136 83,432 Total assets $ 4,084,640 $ 3,907,713 Liabilities and Stockholders' Equity Liabilities Deposits Noninterest-bearing $ 657,547 $ 728,082 Interest-bearing 2,666,003 2,367,529 Total deposits 3,323,550 3,095,611 Short-term borrowings 244,700 314,170 Long-term debt 59,041 58,956 Operating lease liabilities 9,643 5,751 Accrued expenses and other liabilities 61,220 64,098 Total liabilities 3,698,154 3,538,586 Commitments and contingencies (Note 13) Stockholders' equity Preferred stock, $ 1 par value, 2,000,000 shares authorized: 0 issued and outstanding — — Common stock, $ 1 par value, 30,000,000 shares authorized: 19,790,005 and 19,734,077 issued and outstanding 19,790 19,734 Additional paid-in capital 151,257 150,343 Retained earnings 278,863 272,705 Accumulated other compr

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) NOTE 1 Basis of Presentation The accompanying unaudited consolidated interim financial statements and notes thereto of the Company have been prepared in accordance with instructions for Form 10 -Q and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America, or GAAP, for complete presentation of financial statements. In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the consolidated balance sheets of Alerus Financial Corporation, or the Company, as of September 30, 2024 and December 31, 2023 , the consolidated statements of income for the three and nine months ended September 30, 2024 and 2023 , consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2024 and 2023 , the consolidated statements of changes in stockholders' equity for the three and nine months ended September 30, 2024 and 2023 , and the consolidated statements of cash flows for the nine months ended September 30, 2024 and 2023 . The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company's principal operating subsidiary is Alerus Financial, National Association, or the Bank. Certain items previously reported have been reclassified to conform to the current period's reporting format. Such reclassifications did not affect net income or stockholders' equity. The results of operations for the interim periods are not necessarily indicative of the results for the full year or any other period. The Company has also evaluated all subsequent events for potential recognition and disclosure through the date of the filing of this Quarterly Report on Form 10 -Q. These interim unaudited financial statements should be read in conjunction with

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View this 10-Q filing on SEC EDGAR