Alerus Financial Q4 adjusted EPS beats analyst expectations

Overview

• U.S. commercial wealth bank's Q4 adjusted EPS beat analyst expectations

• Company reported Q4 net loss due to strategic balance sheet repositioning

• Company increased tangible common equity to tangible assets ratio to 8.72%

Outlook

• Alerus Financial expects higher profitability in 2026 from strategic balance sheet repositionin

Result Drivers

• BALANCE SHEET REPOSITIONING - Alerus sold $360.1 mln of securities, incurring a $68.4 mln loss, to reinvest in higher-yielding assets

• LOAN PORTFOLIO STRATEGY - Co reduced CRE concentrations and grew C&I loans, enhancing capital and risk profile

• FEE-BASED REVENUE GROWTH - Adjusted noninterest income rose 7% due to growth in retirement and wealth segments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Alerus Financial Corp is $25.00, about 4.3% above its January 27 closing price of $23.97

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX97tZJT

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