Alerus Financial Corporation Announces Fourth Quarter 2023 Results, Including Balance Sheet Repositioning
- Total deposits and loans increased, indicating growth in the company's core business operations.
- Net interest margin expanded to 2.37%, reflecting a positive trend in interest income growth.
- Total assets increased to $3.9 billion, indicating a healthy financial position for the company.
- Tangible book value per common share increased to $15.46, showing improved shareholder value.
- The company reported a net loss of $14.8 million for Q4 2023, compared to net income of $9.2 million in Q3 2023, indicating a decline in profitability.
- Noninterest income decreased due to a $24.6 million loss on the sale of investment securities, impacting the company's overall revenue.
- Total nonperforming assets increased to $8.8 million, indicating potential credit quality challenges.
Insights
The reported net loss of $14.8 million for the fourth quarter of 2023 by Alerus Financial Corporation represents a significant deviation from both the previous quarter and the same quarter of the previous year. This shift from profitability to a loss position is primarily attributed to a one-time pre-tax net loss of $24.6 million incurred from the sale of available-for-sale securities. While this action appears to be a strategic balance sheet repositioning, it has a pronounced short-term negative impact on the company's financial performance.
However, the reinvestment of proceeds into loans and the payment of borrowings could potentially enhance the company's financial position in the long term. The expansion of the net interest margin by 10 basis points, from 2.27% to 2.37% and the increase in net interest income by 5.7% are positive indicators of improving core earnings potential. The company's focus on expense management and credit quality, along with a tangible book value per share increase of 8.0%, suggests a strategic approach to strengthening financial fundamentals despite the quarterly loss.
The financial performance of Alerus Financial Corporation reveals several underlying market trends and strategic decisions. The loan to deposit ratio decrease from 90.7% to 89.0%, coupled with the significant increase in total loans and deposits, indicates successful client acquisition and retention strategies. Furthermore, the company's emphasis on fee income, contributing to 54% of total revenues, showcases a diversified revenue stream beyond traditional interest income, which is a competitive differentiator in the financial services sector.
Moreover, the company's stock repurchase program, including the recent board approval to repurchase up to a total of 1 million shares, signals confidence in the intrinsic value of the company. This action, along with the dividend increase, is likely to be perceived positively by investors, as it demonstrates a commitment to shareholder returns.
The economic implications of Alerus Financial Corporation's quarterly report are multifaceted. The company's decision to sell $172.3 million of AFS securities amidst a challenging interest rate environment may be a response to the Federal Reserve's monetary policy and its impact on bond prices. This balance sheet repositioning aims to mitigate interest rate risk and improve the company's interest income prospects.
Additionally, the increase in total assets under administration/management by 6.3% from the previous quarter underscores the importance of asset management services in generating stable fee income. The company's ability to navigate economic headwinds, such as heightened deposit competition and rising short-term interest rates, while still achieving deposit and loan growth, reflects resilience and adaptability in a volatile economic landscape.
During the fourth quarter of 2023, the Company sold
CEO Comments
President and Chief Executive Officer Katie Lorenson said, “2023 was an extraordinary year that brought both challenges and opportunities. During the year, we completed several restructurings and added over 120 new team members to our organization while reducing overall headcount. The resulting transformation of our commercial wealth bank is evident, with exceptional deposit growth supporting high quality loan growth during the quarter. In addition, the well-executed balance sheet repositioning in December has provided the Company with continued momentum to improve financial performance heading into 2024 and beyond.
The ongoing successful execution of our One Alerus strategy resulted in new and expanded client relationships in all our diversified business lines. Our net interest margin expanded during the quarter and fee income remained a differentiator in the industry with a robust contribution of
We are focused on continued value creation for our shareholders, our clients, and our communities. During the quarter, we grew tangible book value per share
Fourth Quarter Highlights
-
Total deposits were
$3.1 billion $223.4 million 7.8% , from September 30, 2023 -
Total loans were
$2.8 billion $149.7 million 5.7% , from September 30, 2023 -
The loan to deposit ratio as of December 31, 2023 was
89.0% , compared to90.7% as of September 30, 2023, brokered deposits remained at$0 -
Net interest margin expanded 10 basis points from
2.27% in the third quarter to2.37% in the fourth quarter of 2023 -
Net interest income increased
5.7% , from$20.4 million $21.6 million -
Total assets under administration/management were
$40.7 billion 6.3% increase from the third quarter of 2023 -
Net recoveries to average loans of
0.04% , compared to net recoveries to average loans of0.09% for the third quarter of 2023 -
Repurchased
$2.1 million $17.65 -
Tangible book value per common share (non-GAAP) was
$15.46 8.0% increase from the third quarter of 2023 -
Common equity tier 1 capital to risk weighted assets as of December 31, 2023 was
11.82% , compared to13.01% as of September 30, 2023, and continues to be well above the minimum threshold to be well capitalized of6.50% -
Tangible common equity to tangible assets (non-GAAP) was
7.96% as of December 31, 2023, compared to7.47% as of September 30, 2023
Full Year 2023 Highlights
-
Noninterest expense of
$150.2 million $8.6 million 5.4% , compared to$158.8 million -
Average loans of
$2.5 billion $475.6 million 23.1% , from 2022 -
Average deposits of
$2.9 billion $48.6 million 1.69% , from 2022 -
Total deposits increased
$180.1 million $3.1 billion $2.9 billion -
Loan to deposit ratio as of December 31, 2023 was
89.0% , compared to83.8% as of December 31, 2022, brokered deposits remained at$0 -
Yield on interest earning assets increased 109 basis points from
3.52% for the year ended December 31, 2022 to4.61% for the year ended December 31, 2023 -
Total assets under administration/management were
$40.7 billion 14.0% increase from December 31, 2022 -
Net recoveries to average loans of
0.04% , compared to net charge-offs to average loans of0.03% for the year ended December 31, 2022 -
Dividends paid per common share increased from
$0.70 $0.75 -
Repurchased
$6.2 million $17.48 -
Tangible book value per common share (non-GAAP) was
$15.46 $14.37 -
Tangible common equity to tangible assets (non-GAAP) was
7.96% as of December 31, 2023, compared to7.74% as of December 31, 2022
Selected Financial Data (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the |
|
|||||||||||||
|
|
Three months ended |
|
Year ended |
|
|||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|||||
(dollars and shares in thousands, except per share data) |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|||||
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average total assets |
|
|
(1.51) |
% |
|
0.95 |
% |
|
1.17 |
% |
|
0.31 |
% |
|
1.14 |
% |
Return on average common equity |
|
|
(16.75) |
% |
|
10.05 |
% |
|
12.37 |
% |
|
3.26 |
% |
|
11.55 |
% |
Return on average tangible common equity (1) |
|
|
(18.85) |
% |
|
13.51 |
% |
|
16.63 |
% |
|
5.37 |
% |
|
15.09 |
% |
Noninterest income as a % of revenue |
|
|
3.54 |
% |
|
58.21 |
% |
|
48.62 |
% |
|
47.74 |
% |
|
52.72 |
% |
Net interest margin (tax-equivalent) |
|
|
2.37 |
% |
|
2.27 |
% |
|
3.09 |
% |
|
2.46 |
% |
|
3.04 |
% |
Efficiency ratio (1) |
|
|
165.40 |
% |
|
73.37 |
% |
|
69.62 |
% |
|
85.85 |
% |
|
72.86 |
% |
Adjusted efficiency ratio (1) |
|
|
79.07 |
% |
|
73.37 |
% |
|
69.62 |
% |
|
74.91 |
% |
|
72.86 |
% |
Net charge-offs/(recoveries) to average loans |
|
|
(0.04) |
% |
|
(0.09) |
% |
|
(0.03) |
% |
|
(0.04) |
% |
|
0.02 |
% |
Dividend payout ratio |
|
|
(26.03) |
% |
|
42.22 |
% |
|
33.96 |
% |
|
129.31 |
% |
|
33.33 |
% |
Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - basic |
|
$ |
(0.74) |
|
$ |
0.46 |
|
$ |
0.54 |
|
$ |
0.59 |
|
$ |
2.12 |
|
Earnings per common share - diluted |
|
$ |
(0.73) |
|
$ |
0.45 |
|
$ |
0.53 |
|
$ |
0.58 |
|
$ |
2.10 |
|
Dividends declared per common share |
|
$ |
0.19 |
|
$ |
0.19 |
|
$ |
0.18 |
|
$ |
0.75 |
|
$ |
0.70 |
|
Book value per common share |
|
$ |
18.71 |
|
$ |
17.60 |
|
$ |
17.85 |
|
|
|
|
|
|
|
Tangible book value per common share (1) |
|
$ |
15.46 |
|
$ |
14.32 |
|
$ |
14.37 |
|
|
|
|
|
|
|
Average common shares outstanding - basic |
|
|
19,761 |
|
|
19,872 |
|
|
19,988 |
|
|
19,922 |
|
|
18,640 |
|
Average common shares outstanding - diluted |
|
|
19,996 |
|
|
20,095 |
|
|
20,232 |
|
|
20,143 |
|
|
18,884 |
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retirement and benefit services assets under administration/management |
|
$ |
36,682,425 |
|
$ |
34,552,569 |
|
$ |
32,122,520 |
|
|
|
|
|
|
|
Wealth management assets under administration/management |
|
$ |
4,018,846 |
|
$ |
3,724,091 |
|
$ |
3,582,648 |
|
|
|
|
|
|
|
Mortgage originations |
|
$ |
65,488 |
|
$ |
109,637 |
|
$ |
126,254 |
|
$ |
364,114 |
|
$ |
812,314 |
|
____________________
| (1) | Represents a non-GAAP financial measure. See “Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures.” |
Results of Operations
Net Interest Income
Net interest income for the fourth quarter of 2023 was
Net interest margin (on a tax-equivalent basis), was
Noninterest Income
Noninterest income for the fourth quarter of 2023 was
Adjusted noninterest income (non-GAAP) for the fourth quarter of 2023 was
Noninterest Expense
Noninterest expense for the fourth quarter of 2023 was
Noninterest expense for the fourth quarter of 2023 increased
Financial Condition
Total assets were
Loans
Total loans were
The following table presents the composition of our loan portfolio as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|||||
(dollars in thousands) |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||||
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
594,827 |
|
$ |
582,387 |
|
$ |
551,860 |
|
$ |
553,578 |
|
$ |
583,876 |
Real estate construction |
|
|
124,034 |
|
|
97,742 |
|
|
78,428 |
|
|
108,776 |
|
|
97,810 |
Commercial real estate |
|
|
1,126,912 |
|
|
1,025,014 |
|
|
1,003,821 |
|
|
934,324 |
|
|
881,670 |
Total commercial |
|
|
1,845,773 |
|
|
1,705,143 |
|
|
1,634,109 |
|
|
1,596,678 |
|
|
1,563,356 |
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate first mortgage |
|
|
726,879 |
|
|
717,793 |
|
|
707,630 |
|
|
698,002 |
|
|
679,551 |
Residential real estate junior lien |
|
|
154,134 |
|
|
152,677 |
|
|
157,231 |
|
|
152,281 |
|
|
150,479 |
Other revolving and installment |
|
|
29,302 |
|
|
30,817 |
|
|
34,552 |
|
|
39,664 |
|
|
50,608 |
Total consumer |
|
|
910,315 |
|
|
901,287 |
|
|
899,413 |
|
|
889,947 |
|
|
880,638 |
Total loans |
|
$ |
2,756,088 |
|
$ |
2,606,430 |
|
$ |
2,533,522 |
|
$ |
2,486,625 |
|
$ |
2,443,994 |
Deposits
Total deposits were
The following table presents the composition of our deposit portfolio as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|||||
(dollars in thousands) |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||||
Noninterest-bearing demand |
|
$ |
728,082 |
|
$ |
717,990 |
|
$ |
715,534 |
|
$ |
792,977 |
|
$ |
860,987 |
Interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
|
|
840,711 |
|
|
759,812 |
|
|
753,194 |
|
|
817,675 |
|
|
706,275 |
Savings accounts |
|
|
82,485 |
|
|
88,341 |
|
|
93,557 |
|
|
99,742 |
|
|
99,882 |
Money market savings |
|
|
1,032,771 |
|
|
959,106 |
|
|
986,403 |
|
|
1,076,166 |
|
|
1,035,981 |
Time deposits |
|
|
411,562 |
|
|
346,935 |
|
|
304,167 |
|
|
245,418 |
|
|
212,359 |
Total interest-bearing |
|
|
2,367,529 |
|
|
2,154,194 |
|
|
2,137,321 |
|
|
2,239,001 |
|
|
2,054,497 |
Total deposits |
|
$ |
3,095,611 |
|
$ |
2,872,184 |
|
$ |
2,852,855 |
|
$ |
3,031,978 |
|
$ |
2,915,484 |
Asset Quality
Total nonperforming assets were
The following table presents selected asset quality data as of and for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the three months ended |
|
|||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|||||
(dollars in thousands) |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|||||
Nonaccrual loans |
|
$ |
8,596 |
|
$ |
9,007 |
|
$ |
2,233 |
|
$ |
2,118 |
|
$ |
3,794 |
|
Accruing loans 90+ days past due |
|
|
139 |
|
|
— |
|
|
347 |
|
|
— |
|
|
— |
|
Total nonperforming loans |
|
|
8,735 |
|
|
9,007 |
|
|
2,580 |
|
|
2,118 |
|
|
3,794 |
|
OREO and repossessed assets |
|
|
32 |
|
|
3 |
|
|
— |
|
|
— |
|
|
30 |
|
Total nonperforming assets |
|
$ |
8,767 |
|
$ |
9,010 |
|
$ |
2,580 |
|
$ |
2,118 |
|
$ |
3,824 |
|
Net charge-offs/(recoveries) |
|
|
(238) |
|
|
(594) |
|
|
(403) |
|
|
170 |
|
|
(178) |
|
Net charge-offs/(recoveries) to average loans |
|
|
(0.04) |
% |
|
(0.09) |
% |
|
(0.07) |
% |
|
0.03 |
% |
|
(0.03) |
% |
Nonperforming loans to total loans |
|
|
0.32 |
% |
|
0.35 |
% |
|
0.10 |
% |
|
0.09 |
% |
|
0.16 |
% |
Nonperforming assets to total assets |
|
|
0.22 |
% |
|
0.23 |
% |
|
0.07 |
% |
|
0.05 |
% |
|
0.10 |
% |
Allowance for credit losses on loans to total loans |
|
|
1.30 |
% |
|
1.39 |
% |
|
1.41 |
% |
|
1.41 |
% |
|
1.27 |
% |
Allowance for credit losses on loans to nonperforming loans |
|
|
410 |
% |
|
403 |
% |
|
1,384 |
% |
|
1,657 |
% |
|
821 |
% |
For the fourth quarter of 2023, the Company had net recoveries of
The Company recorded a provision for credit losses of
Capital
Total stockholders’ equity was
During the fourth quarter of 2023, the Company repurchased approximately
The following table presents our capital ratios as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|||
|
|
2023 |
|
2023 |
|
2022 |
|
|||
Capital Ratios(1) |
|
|
|
|
|
|
|
|
|
|
Alerus Financial Corporation Consolidated |
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk weighted assets |
|
|
11.82 |
% |
|
13.01 |
% |
|
13.39 |
% |
Tier 1 capital to risk weighted assets |
|
|
12.10 |
% |
|
13.30 |
% |
|
13.69 |
% |
Total capital to risk weighted assets |
|
|
14.76 |
% |
|
16.10 |
% |
|
16.48 |
% |
Tier 1 capital to average assets |
|
|
10.57 |
% |
|
11.14 |
% |
|
11.25 |
% |
Tangible common equity / tangible assets (2) |
|
|
7.96 |
% |
|
7.47 |
% |
|
7.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
Alerus Financial, N.A. |
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital to risk weighted assets |
|
|
11.40 |
% |
|
12.68 |
% |
|
12.76 |
% |
Tier 1 capital to risk weighted assets |
|
|
11.40 |
% |
|
12.68 |
% |
|
12.76 |
% |
Total capital to risk weighted assets |
|
|
12.51 |
% |
|
13.86 |
% |
|
13.83 |
% |
Tier 1 capital to average assets |
|
|
9.92 |
% |
|
10.72 |
% |
|
10.48 |
% |
____________________
(1) |
Capital ratios for the current quarter are to be considered preliminary until the Call Report for Alerus Financial, N.A. is filed. | |
(2) |
Represents a non-GAAP financial measure. See “Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures.” |
Conference Call
The Company will host a conference call at 11:00 a.m. Central Time on Thursday, January 25, 2024, to discuss its financial results. The call can be accessed via telephone at (844) 200-6205, using access code 454002. A recording of the call and transcript will be available on the Company’s investor relations website at investors.alerus.com following the call.
About Alerus Financial Corporation
Alerus Financial Corporation is a diversified financial services company with corporate offices in
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized by
These non-GAAP financial measures should not be considered in isolation or as a substitute for total stockholders’ equity, total assets, book value per share, return on average assets, return on average equity, or any other measure calculated in accordance with GAAP. Moreover, the manner in which the Company calculates these non-GAAP financial measures may differ from that of other companies reporting measures with similar names.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, the following: interest rate risk, including the effects of recent and potential additional rate increases by the Federal Reserve; our ability to successfully manage credit risk and maintain an adequate level of allowance for credit losses; new or revised accounting standards; business and economic conditions generally and in the financial services industry, nationally and within our market areas, including continued rising rates of inflation and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short-period of time at Silicon Valley Bank, Signature Bank and First Republic Bank that resulted in the failure of those institutions; the overall health of the local and national real estate market; concentrations within our loan portfolio; the level of nonperforming assets on our balance sheet; our ability to implement our organic and acquisition growth strategies, including the integration of Metro Phoenix Bank which the Company acquired in 2022; the impact of economic or market conditions on our fee-based services; our ability to continue to grow our retirement and benefit services business; our ability to continue to originate a sufficient volume of residential mortgages; the occurrence of fraudulent activity, breaches or failures of our or our third party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; interruptions involving our information technology and telecommunications systems or fourth-party servicers; potential losses incurred in connection with mortgage loan repurchases; the composition of our executive management team and our ability to attract and retain key personnel; rapid technological change in the financial services industry; increased competition in the financial services industry from non-banks such as credit unions and Fintech companies, including digital asset service providers; our ability to successfully manage liquidity risk, including our need to access higher cost sources of funds such as fed funds purchased and short-term borrowings; the concentration of large deposits from certain clients, who have balances above current FDIC insurance limits; the effectiveness of our risk management framework; the commencement and outcome of litigation and other legal proceedings and regulatory actions against us or to which the Company may become subject; potential impairment to the goodwill the Company recorded in connection with our past acquisitions, including the acquisition of Metro Phoenix Bank; the extensive regulatory framework that applies to us; the impact of recent and future legislative and regulatory changes, including in response to the recent failures of Silicon Valley Bank, Signature Bank and First Republic Bank in 2023; fluctuations in the values of the securities held in our securities portfolio, including as a result of changes in interest rates; governmental monetary, trade and fiscal policies; risks related to climate change and the negative impact it may have on our customers and their businesses; severe weather, natural disasters, widespread disease or pandemics; acts of war or terrorism, including the Israeli-Palestinian conflict and the Russian invasion of
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Alerus Financial Corporation and Subsidiaries Consolidated Balance Sheets (dollars in thousands, except share and per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
December 31, |
|
December 31, |
||||
|
|
2023 |
|
2022 |
||||
Assets |
|
(Unaudited) |
|
(Audited) |
||||
Cash and cash equivalents |
|
$ |
122,485 |
|
|
$ |
58,242 |
|
Investment securities |
|
|
|
|
|
|
||
Available-for-sale, at fair value |
|
|
486,736 |
|
|
|
717,324 |
|
Held-to-maturity, at carrying value (allowance for credit losses of |
|
|
299,515 |
|
|
|
321,902 |
|
Loans held for sale |
|
|
11,497 |
|
|
|
9,488 |
|
Loans |
|
|
2,756,088 |
|
|
|
2,443,994 |
|
Allowance for credit losses on loans |
|
|
(35,843 |
) |
|
|
(31,146 |
) |
Net loans |
|
|
2,720,245 |
|
|
|
2,412,848 |
|
Land, premises and equipment, net |
|
|
17,940 |
|
|
|
17,288 |
|
Operating lease right-of-use assets |
|
|
5,436 |
|
|
|
5,419 |
|
Accrued interest receivable |
|
|
15,700 |
|
|
|
12,869 |
|
Bank-owned life insurance |
|
|
33,236 |
|
|
|
33,991 |
|
Goodwill |
|
|
46,783 |
|
|
|
47,087 |
|
Other intangible assets |
|
|
17,158 |
|
|
|
22,455 |
|
Servicing rights |
|
|
2,052 |
|
|
|
2,643 |
|
Deferred income taxes, net |
|
|
34,595 |
|
|
|
42,369 |
|
Other assets |
|
|
83,433 |
|
|
|
75,712 |
|
Total assets |
|
$ |
3,896,811 |
|
|
$ |
3,779,637 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||
Deposits |
|
|
|
|
|
|
||
Noninterest-bearing |
|
$ |
728,082 |
|
|
$ |
860,987 |
|
Interest-bearing |
|
|
2,367,529 |
|
|
|
2,054,497 |
|
Total deposits |
|
|
3,095,611 |
|
|
|
2,915,484 |
|
Short-term borrowings |
|
|
314,170 |
|
|
|
378,080 |
|
Long-term debt |
|
|
58,956 |
|
|
|
58,843 |
|
Operating lease liabilities |
|
|
5,751 |
|
|
|
5,902 |
|
Accrued expenses and other liabilities |
|
|
53,196 |
|
|
|
64,456 |
|
Total liabilities |
|
|
3,527,684 |
|
|
|
3,422,765 |
|
Stockholders’ equity |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
19,734 |
|
|
|
19,992 |
|
Additional paid-in capital |
|
|
150,343 |
|
|
|
155,095 |
|
Retained earnings |
|
|
272,705 |
|
|
|
280,426 |
|
Accumulated other comprehensive loss |
|
|
(73,655 |
) |
|
|
(98,641 |
) |
Total stockholders’ equity |
|
|
369,127 |
|
|
|
356,872 |
|
Total liabilities and stockholders’ equity |
|
$ |
3,896,811 |
|
|
$ |
3,779,637 |
|
Alerus Financial Corporation and Subsidiaries Consolidated Statements of Income (dollars and shares in thousands, except per share data) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Three months ended |
|
Year ended |
|||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|||||||
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||
Interest Income |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|||||||
Loans, including fees |
|
$ |
37,731 |
|
|
$ |
34,986 |
|
$ |
29,248 |
|
$ |
136,918 |
|
|
$ |
89,907 |
Investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Taxable |
|
|
6,040 |
|
|
|
6,146 |
|
|
5,813 |
|
|
24,262 |
|
|
|
23,260 |
Exempt from federal income taxes |
|
|
182 |
|
|
|
182 |
|
|
210 |
|
|
740 |
|
|
|
848 |
Other |
|
|
742 |
|
|
|
724 |
|
|
541 |
|
|
2,963 |
|
|
|
1,562 |
Total interest income |
|
|
44,695 |
|
|
|
42,038 |
|
|
35,812 |
|
|
164,883 |
|
|
|
115,577 |
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Deposits |
|
|
17,169 |
|
|
|
14,436 |
|
|
5,675 |
|
|
53,387 |
|
|
|
9,169 |
Short-term borrowings |
|
|
5,292 |
|
|
|
6,528 |
|
|
2,545 |
|
|
20,976 |
|
|
|
4,339 |
Long-term debt |
|
|
682 |
|
|
|
679 |
|
|
628 |
|
|
2,681 |
|
|
|
2,340 |
Total interest expense |
|
|
23,143 |
|
|
|
21,643 |
|
|
8,848 |
|
|
77,044 |
|
|
|
15,848 |
Net interest income |
|
|
21,552 |
|
|
|
20,395 |
|
|
26,964 |
|
|
87,839 |
|
|
|
99,729 |
Provision for credit losses |
|
|
1,507 |
|
|
|
— |
|
|
— |
|
|
2,057 |
|
|
|
— |
Net interest income after provision for credit losses |
|
|
20,045 |
|
|
|
20,395 |
|
|
26,964 |
|
|
85,782 |
|
|
|
99,729 |
Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Retirement and benefit services |
|
|
15,317 |
|
|
|
18,605 |
|
|
16,599 |
|
|
65,294 |
|
|
|
67,135 |
Wealth management |
|
|
5,940 |
|
|
|
5,271 |
|
|
5,144 |
|
|
21,855 |
|
|
|
20,870 |
Mortgage banking |
|
|
1,279 |
|
|
|
2,510 |
|
|
2,170 |
|
|
8,411 |
|
|
|
16,921 |
Service charges on deposit accounts |
|
|
341 |
|
|
|
328 |
|
|
282 |
|
|
1,280 |
|
|
|
1,434 |
Net gains (losses) on investment securities |
|
|
(24,643 |
) |
|
|
— |
|
|
— |
|
|
(24,643 |
) |
|
|
— |
Other |
|
|
2,557 |
|
|
|
1,693 |
|
|
1,322 |
|
|
8,032 |
|
|
|
4,863 |
Total noninterest income |
|
|
791 |
|
|
|
28,407 |
|
|
25,517 |
|
|
80,229 |
|
|
|
111,223 |
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Compensation |
|
|
19,214 |
|
|
|
19,071 |
|
|
19,189 |
|
|
76,290 |
|
|
|
80,656 |
Employee taxes and benefits |
|
|
4,578 |
|
|
|
4,895 |
|
|
4,887 |
|
|
20,051 |
|
|
|
21,915 |
Occupancy and equipment expense |
|
|
1,858 |
|
|
|
1,883 |
|
|
1,892 |
|
|
7,477 |
|
|
|
7,605 |
Business services, software and technology expense |
|
|
5,686 |
|
|
|
4,774 |
|
|
4,405 |
|
|
21,053 |
|
|
|
19,487 |
Intangible amortization expense |
|
|
1,324 |
|
|
|
1,324 |
|
|
1,324 |
|
|
5,296 |
|
|
|
4,754 |
Professional fees and assessments |
|
|
2,345 |
|
|
|
1,716 |
|
|
1,454 |
|
|
6,743 |
|
|
|
8,367 |
Marketing and business development |
|
|
1,002 |
|
|
|
692 |
|
|
950 |
|
|
3,027 |
|
|
|
3,254 |
Supplies and postage |
|
|
521 |
|
|
|
410 |
|
|
634 |
|
|
1,796 |
|
|
|
2,440 |
Travel |
|
|
313 |
|
|
|
322 |
|
|
356 |
|
|
1,189 |
|
|
|
1,182 |
Mortgage and lending expenses |
|
|
501 |
|
|
|
689 |
|
|
606 |
|
|
1,902 |
|
|
|
2,183 |
Other |
|
|
1,312 |
|
|
|
1,484 |
|
|
2,251 |
|
|
5,333 |
|
|
|
6,927 |
Total noninterest expense |
|
|
38,654 |
|
|
|
37,260 |
|
|
37,948 |
|
|
150,157 |
|
|
|
158,770 |
Income (loss) before income tax expense (benefit) |
|
|
(17,818 |
) |
|
|
11,542 |
|
|
14,533 |
|
|
15,854 |
|
|
|
52,182 |
Income tax expense (benefit) |
|
|
(3,064 |
) |
|
|
2,381 |
|
|
3,624 |
|
|
4,158 |
|
|
|
12,177 |
Net income (loss) |
|
$ |
(14,754 |
) |
|
$ |
9,161 |
|
$ |
10,909 |
|
$ |
11,696 |
|
|
$ |
40,005 |
Per Common Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Earnings (loss) per common share |
|
$ |
(0.74 |
) |
|
$ |
0.46 |
|
$ |
0.54 |
|
$ |
0.59 |
|
|
$ |
2.12 |
Diluted earnings (loss) per common share |
|
$ |
(0.73 |
) |
|
$ |
0.45 |
|
$ |
0.53 |
|
$ |
0.58 |
|
|
$ |
2.10 |
Dividends declared per common share |
|
$ |
0.19 |
|
|
$ |
0.19 |
|
$ |
0.18 |
|
$ |
0.75 |
|
|
$ |
0.70 |
Average common shares outstanding |
|
|
19,761 |
|
|
|
19,872 |
|
|
19,988 |
|
|
19,922 |
|
|
|
18,640 |
Diluted average common shares outstanding |
|
|
19,996 |
|
|
|
20,095 |
|
|
20,232 |
|
|
20,143 |
|
|
|
18,884 |
Alerus Financial Corporation and Subsidiaries Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures (unaudited) (dollars and shares in thousands, except per share data) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|||
|
|
2023 |
|
2023 |
|
2022 |
|
|||
Tangible Common Equity to Tangible Assets |
|
|
|
|
|
|
|
|
|
|
Total common stockholders’ equity |
|
$ |
369,127 |
|
$ |
349,402 |
|
$ |
356,872 |
|
Less: Goodwill |
|
|
46,783 |
|
|
46,783 |
|
|
47,087 |
|
Less: Other intangible assets |
|
|
17,158 |
|
|
18,482 |
|
|
22,455 |
|
Tangible common equity (a) |
|
|
305,186 |
|
|
284,137 |
|
|
287,330 |
|
Total assets |
|
|
3,896,811 |
|
|
3,869,138 |
|
|
3,779,637 |
|
Less: Goodwill |
|
|
46,783 |
|
|
46,783 |
|
|
47,087 |
|
Less: Other intangible assets |
|
|
17,158 |
|
|
18,482 |
|
|
22,455 |
|
Tangible assets (b) |
|
|
3,832,870 |
|
|
3,803,873 |
|
|
3,710,095 |
|
Tangible common equity to tangible assets (a)/(b) |
|
|
7.96 |
% |
|
7.47 |
% |
|
7.74 |
% |
Tangible Book Value Per Common Share |
|
|
|
|
|
|
|
|
|
|
Total common stockholders’ equity |
|
$ |
369,127 |
|
$ |
349,402 |
|
$ |
356,872 |
|
Less: Goodwill |
|
|
46,783 |
|
|
46,783 |
|
|
47,087 |
|
Less: Other intangible assets |
|
|
17,158 |
|
|
18,482 |
|
|
22,455 |
|
Tangible common equity (c) |
|
|
305,186 |
|
|
284,137 |
|
|
287,330 |
|
Total common shares issued and outstanding (d) |
|
|
19,734 |
|
|
19,848 |
|
|
19,992 |
|
Tangible book value per common share (c)/(d) |
|
$ |
15.46 |
|
$ |
14.32 |
|
$ |
14.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Three months ended |
|
Year ended |
|
|||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|||||||
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|||||||
Return on Average Tangible Common Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
(14,754 |
) |
|
$ |
9,161 |
|
$ |
10,909 |
|
$ |
11,696 |
|
|
$ |
40,005 |
|
Add: Intangible amortization expense (net of tax) |
|
|
1,046 |
|
|
|
1,046 |
|
|
1,046 |
|
|
4,184 |
|
|
|
3,756 |
|
Net income (loss), excluding intangible amortization (e) |
|
|
(13,708 |
) |
|
|
10,207 |
|
|
11,955 |
|
|
15,880 |
|
|
|
43,761 |
|
Average total equity |
|
|
349,382 |
|
|
|
361,735 |
|
|
349,812 |
|
|
358,267 |
|
|
|
346,355 |
|
Less: Average goodwill |
|
|
46,783 |
|
|
|
46,882 |
|
|
46,283 |
|
|
46,959 |
|
|
|
39,415 |
|
Less: Average other intangible assets (net of tax) |
|
|
14,067 |
|
|
|
15,109 |
|
|
18,243 |
|
|
15,624 |
|
|
|
17,018 |
|
Average tangible common equity (f) |
|
|
288,532 |
|
|
|
299,744 |
|
|
285,286 |
|
|
295,684 |
|
|
|
289,922 |
|
Return on average tangible common equity (e)/(f) |
|
|
(18.85 |
) |
% |
|
13.51 |
% |
|
16.63 |
% |
|
5.37 |
|
% |
|
15.09 |
% |
Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Noninterest expense |
|
$ |
38,654 |
|
|
$ |
37,260 |
|
$ |
37,948 |
|
$ |
150,157 |
|
|
$ |
158,770 |
|
Less: Intangible amortization expense |
|
|
1,324 |
|
|
|
1,324 |
|
|
1,324 |
|
|
5,296 |
|
|
|
4,754 |
|
Adjusted noninterest expense (g) |
|
|
37,330 |
|
|
|
35,936 |
|
|
36,624 |
|
|
144,861 |
|
|
|
154,016 |
|
Net interest income |
|
|
21,552 |
|
|
|
20,395 |
|
|
26,964 |
|
|
87,839 |
|
|
|
99,729 |
|
Noninterest income |
|
|
791 |
|
|
|
28,407 |
|
|
25,517 |
|
|
80,229 |
|
|
|
111,223 |
|
Tax-equivalent adjustment |
|
|
226 |
|
|
|
180 |
|
|
124 |
|
|
671 |
|
|
|
429 |
|
Total tax-equivalent revenue (h) |
|
|
22,569 |
|
|
|
48,982 |
|
|
52,605 |
|
|
168,739 |
|
|
|
211,381 |
|
Efficiency ratio (g)/(h) |
|
|
165.40 |
|
% |
|
73.37 |
% |
|
69.62 |
% |
|
85.85 |
|
% |
|
72.86 |
% |
Adjusted Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Noninterest expense |
|
$ |
38,654 |
|
|
$ |
37,260 |
|
$ |
37,948 |
|
$ |
150,157 |
|
|
$ |
158,770 |
|
Less: Intangible amortization expense |
|
|
1,324 |
|
|
|
1,324 |
|
|
1,324 |
|
|
5,296 |
|
|
|
4,754 |
|
Adjusted noninterest expense (i) |
|
|
37,330 |
|
|
|
35,936 |
|
|
36,624 |
|
|
144,861 |
|
|
|
154,016 |
|
Net interest income |
|
|
21,552 |
|
|
|
20,395 |
|
|
26,964 |
|
|
87,839 |
|
|
|
99,729 |
|
Noninterest income |
|
|
791 |
|
|
|
28,407 |
|
|
25,517 |
|
|
80,229 |
|
|
|
111,223 |
|
Tax-equivalent adjustment |
|
|
226 |
|
|
|
180 |
|
|
124 |
|
|
671 |
|
|
|
429 |
|
Less: Net gains (losses) on investment securities |
|
|
(24,643 |
) |
|
|
— |
|
|
— |
|
|
(24,643 |
) |
|
|
— |
|
Total tax-equivalent revenue (j) |
|
|
47,212 |
|
|
|
48,982 |
|
|
52,605 |
|
|
193,382 |
|
|
|
211,381 |
|
Adjusted efficiency ratio (i)/(j) |
|
|
79.07 |
|
% |
|
73.37 |
% |
|
69.62 |
% |
|
74.91 |
|
% |
|
72.86 |
% |
Alerus Financial Corporation and Subsidiaries Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures (unaudited) (dollars and shares in thousands, except per share data) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Three months ended |
|
Year ended |
|||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|||||||
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||
Pre-Provision Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Income (loss) before taxes |
|
$ |
(17,818 |
) |
|
$ |
11,542 |
|
$ |
14,533 |
|
$ |
15,854 |
|
|
$ |
52,182 |
Add: Provision for credit losses |
|
|
1,507 |
|
|
|
— |
|
|
— |
|
|
2,057 |
|
|
|
— |
Pre-provision net revenue |
|
$ |
(16,311 |
) |
|
$ |
11,542 |
|
$ |
14,533 |
|
$ |
17,911 |
|
|
$ |
52,182 |
Adjusted Pre-Provision Net Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Pre-provision net revenue |
|
$ |
(16,311 |
) |
|
$ |
11,542 |
|
$ |
14,533 |
|
$ |
17,911 |
|
|
$ |
52,182 |
Add: Net gains (losses) on investment securities |
|
|
(24,643 |
) |
|
|
— |
|
|
— |
|
|
(24,643 |
) |
|
|
— |
Add: Minnesota Housing donation |
|
|
250 |
|
|
|
— |
|
|
— |
|
|
250 |
|
|
|
— |
Less: Severance and signing bonus expense |
|
|
416 |
|
|
|
147 |
|
|
669 |
|
|
2,337 |
|
|
|
1,942 |
Less: Gain on sale of ESOP business |
|
|
— |
|
|
|
2,775 |
|
|
— |
|
|
2,775 |
|
|
|
— |
Less: BOLI mortality proceeds |
|
|
— |
|
|
|
— |
|
|
— |
|
|
1,196 |
|
|
|
— |
Adjusted pre-provision net revenue |
|
$ |
8,998 |
|
|
$ |
8,914 |
|
$ |
15,202 |
|
$ |
41,170 |
|
|
$ |
54,124 |
Adjusted Noninterest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Noninterest income |
|
$ |
791 |
|
|
$ |
28,407 |
|
$ |
25,517 |
|
$ |
80,229 |
|
|
$ |
111,223 |
Add: Net gains (losses) on investment securities |
|
|
(24,643 |
) |
|
|
— |
|
|
— |
|
|
(24,643 |
) |
|
|
— |
Less: Gain on sale of ESOP business |
|
|
— |
|
|
|
2,775 |
|
|
— |
|
|
2,775 |
|
|
|
— |
Less: BOLI mortality proceeds |
|
|
— |
|
|
|
— |
|
|
— |
|
|
1,196 |
|
|
|
— |
Adjusted noninterest income |
|
$ |
25,434 |
|
|
$ |
25,632 |
|
$ |
25,517 |
|
$ |
100,901 |
|
|
$ |
111,223 |
Alerus Financial Corporation and Subsidiaries Analysis of Average Balances, Yields, and Rates (unaudited) (dollars in thousands) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
||||||||||||||||||||||||||
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
||||||||||||||||||||
|
|
|
|
|
Average |
|
|
|
|
Average |
|
|
|
|
Average |
|
|
|
|
Average |
|
|
|
|
Average |
|||||
|
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
||||||||||
|
|
Balance |
|
Rate |
|
Balance |
|
Rate |
|
Balance |
|
Rate |
|
Balance |
|
Rate |
|
Balance |
|
Rate |
||||||||||
Interest Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
|
$ |
33,920 |
|
3.22 |
% |
|
$ |
29,450 |
|
3.09 |
% |
|
$ |
26,510 |
|
2.16 |
% |
|
$ |
35,395 |
|
3.40 |
% |
|
$ |
58,149 |
|
1.01 |
% |
Investment securities (1) |
|
|
921,555 |
|
2.70 |
% |
|
|
971,913 |
|
2.60 |
% |
|
|
1,046,441 |
|
2.30 |
% |
|
|
983,545 |
|
2.56 |
% |
|
|
1,135,426 |
|
2.14 |
% |
Fed funds sold |
|
|
— |
|
— |
% |
|
|
— |
|
— |
% |
|
|
7,119 |
|
3.40 |
% |
|
|
— |
|
— |
% |
|
|
7,313 |
|
2.63 |
% |
Loans held for sale |
|
|
11,421 |
|
6.01 |
% |
|
|
16,518 |
|
5.55 |
% |
|
|
14,505 |
|
4.54 |
% |
|
|
13,217 |
|
5.46 |
% |
|
|
24,497 |
|
3.49 |
% |
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
573,174 |
|
6.89 |
% |
|
|
555,649 |
|
6.61 |
% |
|
|
561,252 |
|
5.80 |
% |
|
|
558,429 |
|
6.62 |
% |
|
|
507,040 |
|
5.13 |
% |
Real estate construction |
|
|
117,765 |
|
8.12 |
% |
|
|
88,450 |
|
8.52 |
% |
|
|
96,189 |
|
6.02 |
% |
|
|
99,315 |
|
7.66 |
% |
|
|
63,296 |
|
5.21 |
% |
Commercial real estate |
|
|
1,053,812 |
|
5.47 |
% |
|
|
998,636 |
|
5.25 |
% |
|
|
838,466 |
|
4.85 |
% |
|
|
980,667 |
|
5.20 |
% |
|
|
713,102 |
|
4.16 |
% |
Total commercial |
|
|
1,744,751 |
|
6.12 |
% |
|
|
1,642,735 |
|
5.89 |
% |
|
|
1,495,907 |
|
5.28 |
% |
|
|
1,638,411 |
|
5.84 |
% |
|
|
1,283,438 |
|
4.59 |
% |
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate first mortgage |
|
|
724,110 |
|
4.00 |
% |
|
|
714,874 |
|
3.89 |
% |
|
|
665,135 |
|
3.64 |
% |
|
|
706,626 |
|
3.85 |
% |
|
|
587,443 |
|
3.50 |
% |
Residential real estate junior lien |
|
|
155,137 |
|
7.86 |
% |
|
|
154,939 |
|
7.69 |
% |
|
|
146,912 |
|
6.46 |
% |
|
|
154,036 |
|
7.56 |
% |
|
|
136,483 |
|
5.29 |
% |
Other revolving and installment |
|
|
29,510 |
|
6.33 |
% |
|
|
32,288 |
|
6.11 |
% |
|
|
51,836 |
|
5.62 |
% |
|
|
35,971 |
|
6.06 |
% |
|
|
52,071 |
|
4.85 |
% |
Total consumer |
|
|
908,757 |
|
4.73 |
% |
|
|
902,101 |
|
4.62 |
% |
|
|
863,883 |
|
4.24 |
% |
|
|
896,633 |
|
4.58 |
% |
|
|
775,997 |
|
3.91 |
% |
Total loans (1) |
|
|
2,653,508 |
|
5.64 |
% |
|
|
2,544,836 |
|
5.44 |
% |
|
|
2,359,790 |
|
4.90 |
% |
|
|
2,535,044 |
|
5.39 |
% |
|
|
2,059,435 |
|
4.33 |
% |
Federal Reserve/FHLB stock |
|
|
24,780 |
|
7.48 |
% |
|
|
28,761 |
|
6.83 |
% |
|
|
19,603 |
|
6.80 |
% |
|
|
25,246 |
|
6.98 |
% |
|
|
13,824 |
|
5.67 |
% |
Total interest earning assets |
|
|
3,645,184 |
|
4.89 |
% |
|
|
3,591,478 |
|
4.66 |
% |
|
|
3,473,968 |
|
4.10 |
% |
|
|
3,592,447 |
|
4.61 |
% |
|
|
3,298,644 |
|
3.52 |
% |
Noninterest earning assets |
|
|
223,022 |
|
|
|
|
|
230,123 |
|
|
|
|
|
232,754 |
|
|
|
|
|
224,480 |
|
|
|
|
|
202,011 |
|
|
|
Total assets |
|
$ |
3,868,206 |
|
|
|
|
$ |
3,821,601 |
|
|
|
|
$ |
3,706,722 |
|
|
|
|
$ |
3,816,927 |
|
|
|
|
$ |
3,500,655 |
|
|
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
798,634 |
|
1.65 |
% |
|
$ |
751,455 |
|
1.34 |
% |
|
$ |
692,217 |
|
0.50 |
% |
|
$ |
768,238 |
|
1.29 |
% |
|
$ |
692,287 |
|
0.22 |
% |
Money market and savings deposits |
|
|
1,092,656 |
|
3.53 |
% |
|
|
1,073,297 |
|
3.20 |
% |
|
|
1,185,502 |
|
1.39 |
% |
|
|
1,118,815 |
|
2.92 |
% |
|
|
1,113,426 |
|
0.55 |
% |
Time deposits |
|
|
383,715 |
|
4.27 |
% |
|
|
327,264 |
|
3.94 |
% |
|
|
214,264 |
|
1.20 |
% |
|
|
303,746 |
|
3.58 |
% |
|
|
221,997 |
|
0.70 |
% |
Fed funds purchased |
|
|
189,568 |
|
5.71 |
% |
|
|
312,121 |
|
5.50 |
% |
|
|
86,350 |
|
3.78 |
% |
|
|
287,768 |
|
5.31 |
% |
|
|
63,296 |
|
2.46 |
% |
Short-term borrowings |
|
|
200,000 |
|
5.09 |
% |
|
|
173,913 |
|
5.02 |
% |
|
|
178,533 |
|
3.82 |
% |
|
|
113,973 |
|
5.00 |
% |
|
|
89,932 |
|
3.10 |
% |
Long-term debt |
|
|
58,943 |
|
4.59 |
% |
|
|
58,914 |
|
4.57 |
% |
|
|
58,830 |
|
4.24 |
% |
|
|
58,900 |
|
4.55 |
% |
|
|
58,864 |
|
3.98 |
% |
Total interest-bearing liabilities |
|
|
2,723,516 |
|
3.37 |
% |
|
|
2,696,964 |
|
3.18 |
% |
|
|
2,415,696 |
|
1.45 |
% |
|
|
2,651,440 |
|
2.91 |
% |
|
|
2,239,802 |
|
0.71 |
% |
Noninterest-Bearing Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
719,895 |
|
|
|
|
|
692,742 |
|
|
|
|
|
870,948 |
|
|
|
|
|
737,365 |
|
|
|
|
|
851,821 |
|
|
|
Other noninterest-bearing liabilities |
|
|
75,413 |
|
|
|
|
|
70,160 |
|
|
|
|
|
70,266 |
|
|
|
|
|
69,855 |
|
|
|
|
|
62,677 |
|
|
|
Stockholders’ equity |
|
|
349,382 |
|
|
|
|
|
361,735 |
|
|
|
|
|
349,812 |
|
|
|
|
|
358,267 |
|
|
|
|
|
346,355 |
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
3,868,206 |
|
|
|
|
$ |
3,821,601 |
|
|
|
|
$ |
3,706,722 |
|
|
|
|
$ |
3,816,927 |
|
|
|
|
$ |
3,500,655 |
|
|
|
Net interest rate spread |
|
|
|
|
1.52 |
% |
|
|
|
|
1.48 |
% |
|
|
|
|
2.65 |
% |
|
|
|
|
1.70 |
% |
|
|
|
|
2.81 |
% |
Net interest margin, tax-equivalent (1) |
|
|
|
|
2.37 |
% |
|
|
|
|
2.27 |
% |
|
|
|
|
3.09 |
% |
|
|
|
|
2.46 |
% |
|
|
|
|
3.04 |
% |
____________________
| (1) |
Taxable-equivalent adjustment was calculated utilizing a marginal income tax rate of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240124065715/en/
Alan A. Villalon, Chief Financial Officer
952.417.3733 (Office)
Source: Alerus Financial Corporation
FAQ
What was Alerus Financial Corporation's (ALRS) net loss for Q4 2023?
What was the one-time pre-tax net loss related to?
What was the adjusted pre-provision net revenue for Q4 2023?
What was the total amount of deposits as of December 31, 2023?
What was the net interest margin for the fourth quarter of 2023?
What was the total amount of loans as of December 31, 2023?
What was the total amount of nonperforming assets as of December 31, 2023?
What was the tangible book value per common share as of December 31, 2023?
